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TABLE OF CONTENTS ABBREVIATIONS/CONCEPTS AND MEANING: .............................................................................................................. 4
CHAPTER 1 – INTRODUCTION................................................................................................................................... 6 1.1 MAYOR’S FOREWORD............................................................................................................................ 6 1.2 EXECUTIVE SUMMARY BY THE MUNICIPAL MANAGER ............................................................................... 8 1.3 MUNICIPAL PROGRAM 2015/16 ................................................................................................................ 9 1.4 MUNICIPAL GRAND STRATEGY .............................................................................................................10 1.5 INTRODUCTION TO MUNICIPAL BACKGROUND .......................................................................................11 1.6 SERVICE DELIVERY OVERVIEW.............................................................................................................15
CHAPTER TWO: GOVERNANCE...............................................................................................................................16 2.1 POLITICAL AND ADMINISTRATIVE GOVERNANCE ....................................................................................16 2.2 ADMINISTRATIVE GOVERNANCE ...........................................................................................................22 2.3 INTERGOVERNMENTAL RELATIONS.......................................................................................................22 2.4 PUBLIC ACCOUNTABILITY AND PARTICIPATION ......................................................................................23 2.5 CORPORATE GOVERNANCE .................................................................................................................29
CHAPTER THREE – SERVICE DELIVERY PERFORMANCE ...........................................................................................34 3.1. WATER PROVISION .........................................................................................................................34 3.2 SANITATION........................................................................................................................................35 3.3 ROAD MAINTENANCE...........................................................................................................................35 3.4 PROJECT MANAGEMENT ......................................................................................................................36 3.5 ELECTRICITY ......................................................................................................................................37 3.6 HOUSING............................................................................................................................................38 3.7 WASTE MANAGEMENT .........................................................................................................................44 3.8 PLANNING AND DEVELOPMENT .....................................................................................................44
3.8.1 PLANNING ...........................................................................................................................................45
3.8.2 LAND AND HOUSING.............................................................................................................................45
3.8.3 LAND TENURE AVAILABILITY AND REDISTRIBUTION.................................................................................46
3.8.4 SPATIAL DEVELOPMENT .......................................................................................................................48
3.8.5 LOCAL ECONOMIC AND TOURISM DEVELOPMENT ...................................................................................48
3.9 COMMUNITY & SOCIAL SERVICES .........................................................................................................52 3.9.1 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; PARKS &OTHER (THEATRES, ZOOS, ETC) 52
3.10 ENVIRONMENTAL PROTECTION ............................................................................................................53 3.11 SAFETY AND SECURITY .......................................................................................................................54 3.12 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES .......................................................56
CHAPTER FOUR: INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL PERFORMANCE............................................57 4.1 MUNICIPAL WORKFORCE MANAGEMENT ...............................................................................................57 4.2 MANAGING WORKFORCE EXPENDITURE................................................................................................60 4.3 ORGANIZATIONAL PERFROMANCE REPORT ...........................................................................................64
CHAPTER FIVE: FINANCIAL PERFORMANCE .............................................................................................................65 5.1 STATEMENTS OF FINANCIAL PERFROMANCE .........................................................................................65
5.1.1 Financial Performance.............................................................................................................................65
5.2 GRANTS .............................................................................................................................................67 5.2.1 Grant Performance ................................................................................................................................. 67
5.2.2 Performance of Service Providers ..............................................................................................................67
5.3 ASSET MANAGEMENT ..........................................................................................................................74 5.4 REPAIRS AND MAINTENANCE ...............................................................................................................74 5.5 Financial Ratios Based on Key Performance Indicators ..................................................................................75
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5.5.1 Liquidity Ratio ....................................................................................................................................................... 75
5.5.2 Creditors Management........................................................................................................................................... 76
5.5.3 Borrowing Management ......................................................................................................................................... 77
5.5.4 Employee costs ....................................................................................................................................................... 78
Component B: Spending Against Capital Budget .........................................................................................................................79 5.6 Capital Expenditure............................................................................................................................................... 79 5.7 Sources of Finance ............................................................................................................................................... 79
5.7.1 Capital Expenditure by Funding Source ................................................................................................................... 79
Component C: Cash Flow Management and Investments ............................................................................................................81 5.8 Cash Flow............................................................................................................................................................ 81
CHAPTER SIX: auditor general AUDIT FINDINGS......................................................................................................................82 Component A: Auditor-General Opinion ................................................................................................................................. 82
ANNEXUTERS:...................................................................................................................................................................83
2015/16 Annual Financial Statements ............................................................................................................................84 Report of the Auditor-General.........................................................................................................................................149 2015/16 Audit Action Plan...............................................................................................................................................157 2015/16 SDBIP Performance Report............................................................................................................................187 2015/16 MPAC Oversight Report ..................................................................................................................................223 2015/16 Audit Committee Report to CouncIL..............................................................................................................229
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ABBREVIATIONS/CONCEPTS AND MEANING:
ABBREVIATIONS/CONCEPTS MEANING Accountability documents Documents used by executive authorities to give “full and regular” reports on the matters under
their control to Parliament and provincial legislatures as prescribed by the Constitution. This includes plans, budgets, in-year and Annual Reports.
Activities The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, activities describe "what we do".
Adequacy indicators The quantity of input or output relative to the need or demand. ADM Amathole District Municipalities. AG Office of the Auditor General. Annual Report A report to be prepared and submitted annually based on the regulations set out in Section 121 of
the Municipal Finance Management Act. Such a report must include annual financial statements as submitted to and approved by the Auditor-General.
Approved Budget The annual financial statements of a municipality as audited by the Auditor General and approved by council or a provincial or national executive.
Baseline Current level of performance that a municipality aims to improve when setting performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period.
Basic municipal service A municipal service that is necessary to ensure an acceptable and reasonable quality of life to citizens within that particular area. If not provided it may endanger the public health and safety or the environment.
BTO Budget and Treasury Office. Budget year The financial year for which an annual budget is to be approved – means a year ending on 30
June. CBOs Community Based Organizations. CDWs Community Development Workers. Cost indicators The overall cost or expenditure of producing a specified quantity of outputs. DBSA Development Bank of Southern Africa. DEDEA Department of Economic Development and Environmental Affairs. DM District Municipality. Distribution indicators The distribution of capacity to deliver services. ECDC Eastern Cape Development Corporation. EPWP Expanded Public Works Programmes. Financial Statements Includes at least a statement of financial position, statement of financial performance, cash-flow
statement, notes to these statements and any other statements that may be prescribed. FY Financial Year General Key performance indicators
After consultation with MECs for local government, the Minister may prescribe general key performance indicators that are appropriate and applicable to local government generally.
GDP Gross Domestic Product. HDI Human Development Index. HH Households. HOD Head of Department. HR Human Resource. IDP Integrated Development Plan. Impact The results of achieving specific outcomes, such as reducing poverty and creating jobs. Inputs All the resources that contribute to the production and delivery of outputs. Inputs are "what we use
to do the work". They include finances, personnel, equipment and buildings. IT Information Technology. LED Local Economic Development. LM Local Municipality. MFMA Municipal Finance Management Act. MIG Municipal Infrastructure Grant. MOU Memorandum of Understanding.
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ABBREVIATIONS/CONCEPTS MEANING MPAC Municipal Public Accounts Committee. MSA Municipal Systems Act (Act No. 32 of 2000). National Key performance areas
Service delivery & infrastructure Economic development Municipal transformation and institutional development Financial viability and management Good governance and community participation
NGOs Non-Governmental Organisations. NLM Ngqushwa Local Municipality. NYDA National Youth Development Agency. Outcomes The medium-term results for specific beneficiaries that are the consequence of achieving specific
outputs. Outcomes should relate clearly to an institution's strategic goals and objectives set out in its plans. Outcomes are "what we wish to achieve".
Outputs The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver". An output is a concrete achievement (i.e. a product such as a passport, an action such as a presentation or immunization, or a service such as processing an application) that contributes to the achievement of a Key Result Area.
PDOHS Provincial Department of Human Settlements Performance Indicator Indicators should be specified to measure performance in relation to input, activities, outputs,
outcomes and impacts. An indicator is a type of information used to gauge the extent to which an output has been achieved (policy developed, presentation delivered, service rendered)
Performance Information Generic term for non-financial information about municipal services and activities. Can also be used interchangeably with performance measure.
Performance Standards: The minimum acceptable level of performance or the level of performance that is generally accepted. Standards are informed by legislative requirements and service-level agreements. Performance standards are mutually agreed criteria to describe how well work must be done in terms of quantity and/or quality and timeliness, to clarify the outputs and related activities of a job by describing what the required result should be. In this EPMDS performance standards are divided into indicators and the time factor.
Performance Targets: The level of performance that municipalities and its employees strive to achieve. Performance Targets relate to current baselines and express a specific level of performance that a municipality aims to achieve within a given time period.
PGDP Provincial Growth and Development Plan. PMS Performance Management System. PMU Project Management Unit. Service Delivery Budget Implementation Plan (SDBIP)
Detailed plan approved by the mayor for implementing the municipality’s delivery of services; including projections of the revenue collected and operational and capital expenditure by vote for each month. Service delivery targets and performance indicators must also be included.
SDF Spatial Development Framework. SMME Small Micro and Medium Enterprise. Vote: One of the main segments into which a budget of a municipality is divided for appropriation of
money for the different departments or functional areas of the municipality. The Vote specifies the total amount that is appropriated for the purpose of a specific department or functional area.
WSA Water Service Authority. WSDP Water Service Development Plan. WSP Water Service Provider. WTW Water Treatment Works.
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CHAPTER 1 – INTRODUCTION
1.1 MAYOR’S FOREWORD This Annual Report is a culmination of the implementation of 2015/16 revised Integrated Development Plan (IDP) and 2015/16 Service Delivery and Budget Implementation Plan (SDBIP) for the financial year. The highlights and the successes detailed in the chapters of the Annual Report are in line with the Strategic Objectives of the municipality as enacted in the municipality’s 2012/2017 Integrated Development Plan. It is important to note that the municipality adopted 2015/16 IDP and Strategic Score Card .The strategic score card is in line with the five (05) Key Performance Areas of the Local Government and has been developed to respond to the following pieces of legislation:
Constitution of the Republic of South Africa, 1996. Province of the Eastern Cape Provincial Growth and Development Plan 2004-2014(PDG). Municipal Systems Act (MSA) No 32 of 2000.
In line with the call of the PDGP ,South Africa’s Constitution and the general Key Performance Indicators outlined in the Municipal Systems Act ,the municipality has succeeded in implementing the following programmes as outlined in the 2015/16 SDBIP. Basic Service Delivery
The municipality implemented electricity maintenance plan which include maintenance of street lights, high mast lights. Municipal buildings. Km of Roads were re-gravelled. Municipal Public Amenities, Sport fields and Community main road.
Local Economic Development
Local Economic Development has participated in some fields of human activities such as SMME’s/Co-operatives, supporting co-operatives with inputs towards sustainability Tourism and Heritage are the key pillars of Local Economic Development ,hence the prioritisation of maintenance of Heritage sites in partnership with Amathole District
Municipal Transformation and Organisational Development
Work Skills Plan and Annual Training Plans have been implemented to capacitate workforce Organizational structure have been provided to respond to the IDP Objectives and SDBIP Targets
Financial Viability and Management
The 2015/2017 Medium Term Revenue Expenditure is aligned to the IDP Objectives was adopted by the Council For sustainability if the Municipality ,Revenue Collection remains the core function for this Key Performance Area
Good Governance and Public Participation
It thus important to note the progress made such as adoption of the 2015/16 IDP & SDBIP Community participation programmes are implemented as planned
We continue to commit ourselves in improving Service Delivery to our community in collaboration with stakeholders focusing on five (05) Indicators such as:
Accountability. Participatory governance. Government education. Investment in infrastructural development and. Social Responsibility.
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I would like to express my gratitude to all Councillors, Municipal Manager: Mr T.T Mnyimba and all officials, the communities of Ngqushwa Local Municipality and stakeholders for their dedication, support and co-operation. ____________________ S.E.NDWAYANA Mayor
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1.2 EXECUTIVE SUMMARY BY THE MUNICIPAL MANAGER This Annual Report for 2015/16 financial year is a communication tool that reflects an overview of the municipal activities, performance in service delivery and financial position aimed at improving the lives of Ngqushwa communities. The municipality realises that community participation is a major implication on democratising service delivery. Therefore, we continue to utilize space for public participation programmes where we communicate regularly with communities and disseminate relevant information through structures that are in place. We are considerate of indigent people to receive goods and services such as housing, water and sanitation, refuse removal and electricity. We committed ourselves to support the indigent and poor households where 5006 people have access to free basic electricity and 1993 people benefitted to free basic refuse removal per month. Again, with the municipality’s allocation of R21.854 million on Municipal Infrastructure Grant (MIG), the management committed to 100% expenditure to ensure quality service delivery. Indeed that was spent. By so doing, we follow IDP implementation and pride ourselves by ensuring that our people get the best service according to their priority needs. The Municipal Council adopted thirteen policies during the year under review. For the 2015/16 financial year institutional annual performance has improved by 15% compared to previous financial year. All senior managers are appointed except the position of Director: Community Services which will be operational in the next financial year. Through our Local Economic Development we managed to capacitate our Local SMME’s and corporative with workshops, trainings and projects that assisted them to work together in achieving sustainable economic growth and development. Our community also benefitted through Extended Public Works Programme in the Hamburg Aquaculture Project which has an impact on skills development and transfer of technology to communities. Moreover, Community Works Programme employed 1048 people of working age in all wards. We are proud to announce that Hamburg Beach meet a standard of excellence and is awarded Blue Flag status for its safety, cleanliness, environmental information and management. Good governance remains crucial to the success of the organisation and the value of a well-functioning Council with its Committee structure, as well as Ward Committees cannot be overstated. The developments and improvements in our financial management led the municipality to receive a better audit outcome in the year under review to a Qualified Audit Opinion from a Disclaimer. In support for improved audit results, the municipality is in a process of developing a three year Financial Recovery Plan to control both government debt and non – payment by households and businesses which is still a huge challenge. In conclusion, I would like to thank The Mayor Cllr S. Ndwayana, Executive Committee, Councillors, Senior Managers and staff who dedicated themselves and worked hard in ensuring that the people of Ngqushwa benefit from improved quality of life in a sustainably functional municipal area. _____________________ T.T.MNYIMBA Municipal Manager
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1.3 MUNICIPAL PROGRAM 2015/16
Key Communication Activity per KPA
Programme Messenger/Dept. responsible
Time Frame STATUS
Celebration of Isikhumbuzo saseMqwashini (Milkwood Tree)
Celebration of Isikhumbuzo saseMqwashini (Milkwood Tree)
Tourism Unit, Communications Unit, NGO’s
May 2016 Done
Service Delivery Day Delivering services to the people
All Departments May 2016 Done
Child Protection week
Awareness on Children’s Rights
Office of the Municipal Manager: SPU, Communications
June 2016 Done
Youth Month Celebrations
Youth Seminar SPU, Communications, LED
June 2016 Done
Women’s Month Celebrations
1.Handover of Wheelchairs to Physically Disabled Women (Ward 10 ,12 and 6)
Women’s Caucus, SPU, Manager Mayor and Speakers Office, and Communications
August 2015
Done
Heritage and Tourism Month
Women’s Caucus Legacy Programme: Handover of laptops to the blind society, kit to soccer clubs, Bursary handover and food parcels to 5 destitute families
SPU, Manager Mayor and Speakers Office, and Communications
September 2015 Done
Horse Racing Event at Ngqwele
SPU, Manager Mayor and Speakers Office, and Communications
September 2015 Done
Tunyiswa Memorial Day
SPU, Manager Mayor and Speakers Office, and Communications
September 2015 Done
Miss Ward 1 SPU, Manager Mayor and Speakers Office, and Communications
October 2015/16 Done
IDP Steering Committee
IDP Processes IDP/PMS, Budget Manager, Communications, Mayor and Speakers Mayor
Quarterly 2015/16 Done
Rep Forum Meeting IDP Processes IDP/PMS, Budget Manager, Communications, Mayor and Speakers Mayor
Quarterly 2015/16 Done
Crisis Management Intensify Rapid Response to service delivery protests.
Service delivery protests Ongoing Done
Beginning of IDP Consultations for next year. IDP situational needs analysis.
Ward needs verification and profiles.
IDP/PMS Manager, Manger: Office of the Mayor, Communications
November 2015
Done
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Key Communication Activity per KPA
Programme Messenger/Dept. responsible
Time Frame STATUS
Annual Report Roadshows (MPAC)
Public Hearing in all wards(Giving report on the performance of the previous financial year)
Office of the MM and Communications
November 2015
Done
16 Days of Activism Awareness Programme against Women and Children Abuse
SPU, Mayor and Speakers Office and Communications
November 2015
Done
Mayors Christmas party for elderly people and orphans/children
SPU, Communications, DoH, Love Life, Peddie Women Support Centre
December 2015
Done
Christmas Lights Switch on of Christmas lights for festive season.
Tourism Unit, Communications
December 2015 Done
Back to school campaign
Mayoral Visit to best performing school and least performing school ( Mayors Gift to Top Students)
Communications, SPU and Office of the Mayor
January 2016 Done
Electronic Media Talk to your Mayor/ Councillor (interviews
Service delivery slots/dialogues
Ongoing Forte FM Interview, (Fort Hare Fm - Mayor and MM)
Service delivery Day Service Delivering to the people
All Departments January 2016 Done ( Ndwayana Location- Handover of water to Ndwayana Community on the 18th January 2016)
1.4 MUNICIPAL GRAND STRATEGY VISION To be the preferred, vibrant, socio-economically developed municipal area that embraces a culture of human dignity, good governance and characterized by good quality of service for all. MISSION STATEMENT Ngqushwa Local Municipality will strive to become a benchmark institution in the country in respect of good quality and affordable services, through effective resource mobilization and management, stimulation of economic growth, and good governance practices. MUNICIPAL CORE VALUES/STANDARDS Linked to the mission, the municipality identified the following CORE VALUES to be adhered to by the Councillors, management and the officials of the Municipality for all the interactions with customers:
Competency- We commit to attract and retain a competent workforce to service our customers. Honesty and Integrity-We will demonstrate complete honesty and integrity in everything we do. Diligence-We will demonstrate caution, commitment and due diligence in discharging our duties. Transparency-We will be transparent and fair in all our dealings for utmost accountability. Accountability-We will create an environment to be held to account by our stakeholders and customers. Professionalism-We will always uphold and maintain a professional behaviour in executing our mandate and individual responsibilities for the furtherance of service delivery. Value for Money-We commit derive value for money as return on investment in all business engagements with service providers.
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1.5 INTRODUCTION TO MUNICIPAL BACKGROUND GEOGRAPHIC PROFILE Municipal Geographic Information Ngqushwa Local Municipality falls within the jurisdiction of the Amathole District Municipality which is situated in the Eastern Cape Province, Amathole District Municipality and covers an area of 23 573km² and the Ngqushwa municipal area covers 2245 square kilometres which accounts for 10% of the district. The administrative seat of the Municipality finds itself in Peddie and the municipal area is divided into 13 wards. Ngqushwa is located in the west of the Amathole district and consists of two towns Peddie and Hamburg, a portion of King Williams Town villages. It is one of the eight municipalities that fall within the Amathole District Municipality. Ngqushwa Municipality consists of 118 villages. Ngqushwa is bordered by the Great Fish River to the west and the Keiskamma River to the East. The southern boundary comprises a part of the coastline of the Indian Ocean Figure 1: Ngqushwa location Wards and villages
Ward Villages 1 Zalara, Mtati, Tyeni, Ngqwele, Bhele, Nonibe, Gobozana, Nxopho 2 Qaga, Masele, Thamara, Dubu, Tsolo & Jubisa 3 Upper & Lower Mthombe, Thyatha, Mtyholo, Qugqwala, Dlova, Nquthu, Tildin, Tapushe, Rode, Zimbaba & Mavathulana 4 Qawukeni, Mabongo, Khalana, Shushu, Ntsinekana, Mqwashu, Bongweni A, Gcinisa North, Hlosini, Bongweni B,
Maqosha, Nqwenerhana, Crossman/ Mgwangqa, Nomonti & Torr 5 Machibi, Moni, Twecu, Upper & Lower Dube, Cwecweni, Madliki, Phole, Moni, Nxwashu/Tyip-Tyip, Ngxakaxha &
Mdolomba 6 Tyityaba/Ferndale, Bodium, Bell, Lover’s Twist, Crossroads, Tuku A, B & C, Wooldridge, Hoyi, Leqeni, Begha, 7 Cisira, Feni, Dam-dam, Makhahlane, Celetyuma,Mahlubini/Nyaniso 8 Ndlambe, Ndwayana, Glenmore, Qamnyana, Gwabeni, Mankone, Horton, Luxolo & Rura 9 Runletts, Woodlands, Pikoli, Nobumba, Ntloko, Mgwalana, Lewis & Paradise 10 Peddie Town, Peddie Extension, Power, Luxolweni, German village, Durban Location 11 Hamburg, Benton, Gcinisa-South, Wesley, Bhingqala/Soweto, Mqheleni, Tarfield/Nier, Qobo-qobo/Nuloets,Daninge 12 Mpheko, Mgababa, Prudhoe, Mkhanyeni 13 Mtati, Ngqowa, Upper Gwalana, Mabaleni, Ntshamanzi, Newtondale, Maxhegweni, Upper Qeto, Lower Qeto, Lower
Mgwalana, eSigingqini
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Below is the map of Ngqushwa Local Municipality
Demographic Profile: Ngqushwa Local Municipality has an estimated population of 72 190 people according to the 2011 census figures. Compared to the previous census figures the number of Ngqushwa population has decreased by 8.1%. The following table shows a summary of key statistics by gender from statics (2011):
WARD
POPULATION BY WARD MALE FEMALE TOTAL
21206001 2 593 2 962 5 555 21206002 2 864 3 100 5 963 21206003 2 789 3 041 5 830 21206004 2 658 2 902 5 559 21206005 2 899 3 166 6 065 21206006 2 531 2 812 5 343 21206007 2 827 3 224 6 051 21206008 2 543 2 847 5 390 21206009 2 322 2 574 4 897 212060010 2 323 2 688 5 011 212060011 2 798 3 167 5 964 212060012 2 180 2 603 4 783 212060013 2 658 3 120 5 777
GRAND TOTAL 33 984 38 206 72 190
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Figure 2: Below shows sex and age in completed years
The above reflects a high dependency rate with numbers of children aged between 0 and 19 years, school going age estimated at 28 800 with approximately 14 899 being males and 13 901 females. On the other hand, the numbers of those who fall above the economically active population (above 60 years) are estimated at 11 675. Of those, approximately 7 260 are women and about 4 415 are men. This means that the total number of children, youth and elderly is 40 475 which accounts for about 56% of the total population. This is very high and means that the municipality has to focus more efforts and funding towards children and youth development as well as caring for the aged. There is a high rate of school drop outs as well as high unemployment rate. This further promotes the need to develop social and youth development programs, provision of basic services and vigorous job creation programs.
HOUSEHOLDS The table below gives an overview of common statistics of Ngqushwa Local Municipality according to the official census done by Stats SA.
Ngqushwa Local Municipality 2011 2015 Demography
Number of Households 21384 Refuse Removal
% of households without weekly refuse removal 7% 4% (Urban and resort areas) No. of households without weekly refuse removals 200 No backlogs excluding rural areas
Toilet Facilities % of households with flush toilets 5,8 % of households with Pit toilets 84,6 % of households with chemical toilets 2,6 % of households with bucket toilets 0,1 % of households without toilets
Electricity Supply % of households with Electricity 91,4 91,4
Water % of households with access to piped water 96,9
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Economic indicators: Figure 4: Employment rate vs. poverty
Source: Stats SA : 2011 Figure 4 above reflects decreasing poverty levels between 2001, being about 70% to 66% in 2011. Unemployment on the other hand also shows a decrease from 64% in 2011 to about 40% in 2011.The employment rate is on the increase from 36% in 2001 to 60% in 2011. Ward meetings cited poverty and unemployment as one of the major challenges. These meetings also suggested that government should provide more support to orphans and child-headed households.
Source: Stats SA (Census 2011) Figure 5 reflects the majority of households earning very low incomes. Statistics SA information shows the number of the employed households being 11 538 earning between R9 601 and R38 200 per annum. Ward meetings revealed that the majority of the population relies on social grants. They raised that there is a need for projects to provide the community with food security. Proposals for skills development and provision of institutions of higher learning that will ensure improvement of the labour force also came up strongly from the wards.
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1.6 SERVICE DELIVERY OVERVIEW
NATURAL RESOURCES MAJOR NATURAL RESOURCES RELEVANCE TO COMMUNITY
Mining: sand and lime Construction Vegetation: aloe Harvesting, processing and production Ocean and dams Water accessibility
During the period under review, Ngqushwa Local Municipality, under Technical Services Directorate has done a commendable work. Due to the fact that Technical Services is service delivery related, the following was achieved per section: Roads and Storm-water: The municipality is responsible for the repairing of potholes on the existing surfaced road, and unblocking and cleaning of drainage ketch pit to maintain free flow stormwater. Rehabilitation of existing roads, and re-gravelling and blading of gravel roads in rural and peri-urban on regular basis. A total of 108 km gravel roads were maintained through dry blading; re-gravelling also a total of 378m² of potholes were patched (tar roads) in the year under review. Project Management Unit: This section ensures that everybody has an access and better roads as enshrined in the Constitution. All the roads that were identified for 14/15 financial year were budgeted for. Only one road that is under construction and it is 95% complete. Public amenities such as community halls were constructed. A total of six community halls were constructed and only one community hall that is 75% complete. The completed community halls are as follows: Mkhanyeni Community Hall, Feni Community Hall, Tsolo Community Hall, Nxopo Community Hall, Gwabeni Community Hall, under construction is the Runlets Community Hall. Land and Estate: A total of 710 houses were constructed during 15/16. Challenges faced include vandalism as some of the beneficiaries are yet to claim their houses. Peddie 500 is also yet to be finished. Access to Electricity: The Millennium Development Goal states that all households must have universal access to electricity by 2025. Access to electricity will alleviate poverty as the use of electricity supports lighting and cooking facilities. The electricity supply at Ngqushwa Local Municipal area is provided and maintained by Eskom in accordance with their Rural Electrification Program or Integrated National Electrification Programme. There were 125 households that were electrified in 2015/16 financial year, then the number has increased from 94.07% to 94.65% Access to Water: There is an increase in the number of household having access to water provision (by ADM). The percentage has increased from 94.3% to 96.9% which is a 2.6% increase during the financial year 15/16. Access to Sanitation: Sanitation has a slight increase from 63.6% to 69%. This increase is caused by the VIP toilets built/ provided and sanitation projects constructed. Amathole District Municipality has embarked in a front loading program to assist with the provision of sanitation to the communities. Waste Collection: Waste collection is done in urban areas and coastal resort areas excluding 118 villages. Refuse collection is 98% in urban and coastal resort areas as the municipality renders effective waste collection service within Ngqushwa Jurisdiction. Shortfalls: There is lack of appropriate machinery for waste collection which result to delays in waste collection and landfill management.
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CHAPTER TWO: GOVERNANCE 2.1 POLITICAL AND ADMINISTRATIVE GOVERNANCE
INTRODUCTION TO GOVERNANCE: Ngqushwa Local Municipality is a Category B which forms part of the seven (7) local municipalities under the Amathole District Municipality (ADM). A local municipality is a type of municipality that serves as the third, and most local, tier of local government. POLITICAL GOVERNANCE STRUCTURE Ngqushwa Local Municipality has a total number of 13 Ward Councillors and 12 Proportional Representatives including the Mayor and the Representative of the opposition party. Refer to Appendix A for a full list of Councillors, committee allocations and attendance at council meetings. Also included are committees and committee purposes. The Council performs both legislative and executive functions. It focuses on legislative, oversight and participatory roles, and has delegated its executive function to the Executive Committee. Its primary role is to debate issues publicly and to facilitate political debate and discussion. Apart from their functions as policy makers, Councillors are also actively involved in community work and the various special programmes in the municipal area.
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POLITICAL STRUCTURE FUNCTION MAYOR: Cllr. S. E .Ndwayana
FUNCTION: The Mayor of a municipality:
Presides at meetings of the executive committee; and Performs the duties, including any ceremonial functions, and exercises the powers delegated to the mayor by municipal council or the executive committee.
SPEAKER: Cllr. Z. Jowela
Function: The Speaker of a municipal council:
Presides at meetings of the council; Performs the duties and exercises the powers delegated to the speaker in terms of section 59 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000); Must ensure that the council meets at least quarterly; Must maintain order during the meetings; Must ensure compliance in the council and council committees with the Code of conduct set out in schedule 1 to the Local Government: Municipal Systems Act, 2000 (Act No.32 of 2000); and Must ensure that the council meetings are conducted in accordance with the rules and orders of the council.
CHIEF WHIP: Cllr. N.Gxasheka EXECUTIVE COMMITTEE: Cllr. T. M. Siwisa (BTO) Cllr. M. Faltein (Infrastructure) Cllr. N. Tele (Planning & Development) Cllr. L. Cuka (Corporate Services) MPAC CHAIRPERSON: Cllr. S.A Jali
COUNCILLORS: Below is a table that categorise the Councillors within their specific political parties and wards:
WARD NO COUNCILLOR IDENTITY NUMBER POLITICAL PARTY
PORTFOLIO
1 Z. Jowela 841126 5409 08 7 ANC Ward Councilor/ Municipal Speaker 2 N. Coto 640205 0652 082 ANC Ward Councilor/Infrastructure
Standing Committee 3 P. Sitole 741115 0505 08 1 ANC Ward Councilor/ Community Services
Standing Committee 4 N.N.C. Maphekula 591225 0661 08 0 ANC Ward Councilor/ Corporate Services
Standing Committee 5 M.G. Yolelo 530827 5535 08 8 ANC Ward Councilor/ Infrastructure
Standing Committee 6 M C Mapuma 460509 5492 08 0 ANC Ward Councilor/Infrastructure
Standing Committee/ MPAC 7 T. Magazi 580221 5757 08 3 ANC Ward Councilor/ Infrastructure
Development Standing Committee 8 A Mtshakazi 670701 5868 08 0 ANC Ward Councilor/ Infrastructure
Standing Committee 9 N.Y. Ndabazonke 641124 0901 08 5 ANC Ward Councillor/ Community Services
Standing Committee/ MPAC 10 N A Seysman 680101 3388 08 2 ANC
Ward Councillor/ Community Services
11 A Ndanda 830214 5585 08 1 ANC Ward Councillor/ Corporate Services Standing Committee/ MPAC
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WARD NO COUNCILLOR IDENTITY NUMBER POLITICAL PARTY
PORTFOLIO
12 T. G. Dyibishe 770929 5890 08 0 ANC Ward Councillor/ Infrastructure Standing Committee/MPAC
13 N. Mntanga 871231 0363 08 2 ANC Ward Councillor/Budget and Treasury Standing Committee
Below is a table of PR Councillors :
TRADITIONAL LEADERS
NO TRADITIONAL LEADER IDENTITY NUMBER TRADITIONAL COUNCIL PORTFOLIO 1 N. Mhlauli 801028 5428 083 AMAHLUBI T/C PRINCE 2 Gladness Luvuyo Zitshu 510903 5628 08 4 MSUTU T/C PRINCE 3 Bonisile Matomela 630804 0709 08 7 AMARHELEDWANE T/C PRINCE 4 Ntombizandile V
Njokweni 721205 0524 08 9 DABI T/C PRINCESS
5 Prince Stofile PRINCE
NO COUNCILLOR IDENTITY NUMBER POLITICAL PARTY
PORTFOLIO
1 Mnikelo Tempile Siwisa 730922 5529 08 8 ANC EXCO Member/Portfolio Head: BTO 2 Solomzi Eswell
Ndwayana 521217 5701 08 1 ANC Mayor
3
Mveleleli Faltein 760522 5652 08 9 ANC EXCO Member/Portfolio Head: Infrastructure Standing Committee
4 Mzolisa Bernard Sethuntsa
600505 6320 08 1 ANC PR Councillor/Corporate Services Standing Committee
5 Thuliswa Moreen Dyani
731116 0555 08 6 ANC PR Councillor/ MPAC/ Budget and Treasury Standing Committee
6 Sindile Austin Jali
690909 2440 08 8 ANC PR Councillor/ MPAC Chairperson/Community Services Standing Committee
7 Nolusindiso Caroline Gxasheka
840514 0557 08 6 ANC PR Councillor/MPAC/ Budget and Treasury Standing Committee(Chief Whip)
8 Lindiwe Cuka
640401 0938 08 0 ANC EXCO Member/Portfolio Head: Corporate Services
9 Nozuko Whinette Tele
721118 0657 08 8 ANC EXCO Member/ Portfolio Head: Community Services
10 Thamsanqa Tusani
571223 5885 08 9 ANC PR Councillor/MPAC Corporate Services Standing Committee
11 Mlungisi Boqwana
720812 5955 08 0 ANC PR Councillor/Budget and Treasury Standing Committee
12 Gladwell Mzivumile Ntonjane
580106 6160 08 2 DA PR Councillor/Budget and Treasury Standing Committee/ MPAC
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COUNCILLORS ATTENDANCE AT COUNCIL MEETINGS
Name of Councillor
Ordinary Council Special Council
No. of Meetings Present
Absent With
Apology
Absent Without Apology
No. of Meetings Present
Absent With
Apology
Absent Without Apology
Councillor M Boqwana 3 3 Nil Nil 7 5 Nil 2
Councillor NF Coto 3 2 1 0 7 5 Nil 2
Councillor L Cuka 3 2 1 1 7 5 Nil 2
Councilor TM Dyani 3 2 1 Nil 7 3 1 3
Councillor T.G Dyibishe 3 3 Nil Nil 7 1 Nil 6
Councillor M Faltein 3 3 Nil Nil 7 3 Nil 4
Councillor NC Gxasheka 3 3 Nil Nil 7 5 Nil 2
Councilor SA Jali 3 3 Nil Nil 7 6 Nil 1
Councillor Jowela 3 3 Nil Nil 7 6 Nil 1
Councillor T Magazi 3 2 1 Nil 7 6 Nil 1
Councillor NNC Maphekula 3 3 Nil Nil 7 4 1 2
Councillor MC Mapuma 3 3 Nil Nil 7 4 1 2
Councillor N Mntanga 3 3 Nil Nil 7 4 Nil 3
Councillor A Mtshakazi 3 2 Nil 1 7 4 Nil 3
Councillor NY Ndabazonke 3 3 Nil Nil 7 3 1 3
Councillor A Ndanda 3 3 Nil Nil 7 3 1 3
Councillor SE Ndwayana 3 2 1 Nil 7 7 Nil Nil
Councillor GM Ntonjane 3 3 Nil Nil 7 5 Nil 2
Councilor MB Sethuntsa 3 1 2 Nil 7 2 5 Nil
Councillor NA Seysman 3 3 Nil Nil 7 5 Nil 2
Councillor P Sitole 3 3 Nil Nil 7 4 1 2
Councillor MT Siwisa 3 3 Nil Nil 7 6 Nil 1
Councillor NW Tele 3 1 1 1 7 4 Nil 3
Councillor T Tusani 3 3 Nil Nil 7 4 Nil 3
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Name of Councillor
Ordinary Council Special Council
No. of Meetings Present
Absent With
Apology
Absent Without Apology
No. of Meetings Present
Absent With
Apology
Absent Without Apology
Councillor MG Yolelo 3 3 Nil Nil 7 6 Nil 1
Name of Traditional
Leader
Ordinary Council Special Council
No. of Meetings Present
Absent With
Apology
Absent Without Apology
No. of Meetings Present
Absent With
Apology
Absent Without Apology
Prince N. Mhlauli 3 3 Nil Nil 7 6 Nil 1
Prince B Matomela Passed On In March 2016
Princess NV Njokweni 3 Nil Nil 3 7 Nil Nil 7
Prince GL Zitshu 3 3 Nil Nil 7 6 Nil 1
Prince S. Sitofile 3 1 Sworn In in April 2016 7 2 Sworn In in April 2016 COUNCILLORS ATTENDANCE AT EXECUTIVE COMMITTEE MEETINGS EXECUTIVE COMMITTEE MEETINGS – 01 July 2015 to 30 June 2016
Name of Councillor
Ordinary Executive Committee Meetings Special Executive Committee Meetings
No. of Mtngs Present
Absent With Apology
Absent Without Apology
No. of Mtngs Present
Absent With Apology
Absent Without Apology
Councillor L Cuka 3 2 Nil 1 6 3 Nil 3 Councillor M Faltein 3 Nil 2 1 6 2 1 3
Councilor MT Siwisa
3 3 Nil Nil 6 5 Nil 1
Councillor N Tele 3 Nil 1 2 6 4 1 1 Councillor SE Ndwayana 3 3 Nil Nil 6 6 Nil Nil
COUNCILLORS ATTENDANCE AT CORPORATE SERVICES STANDING COMMITTEE MEETINGS Corporate Services Standing Committee Meetings – 01 July 2015 to 30 June 2016
Name of Councillor Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Councillor L Cuka 3 3 Nil Nil Councillor NNC Maphekula 3 2 1 Nil Councillor A Ndanda 3 3 Nil Nil Councillor MB Sethuntsa 3 Nil 3 Nil Councilor T Tusani 3 3 Nil Nil
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Name of Traditional Leader Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
N. Njokweni 3 Nil Nil 3 COUNCILLORS ATTENDANCE AT PLANNING & DEVELOPMENT STANDING COMMITTEE MEETINGS Council Meetings – 01 July 2015 to 30 June 2016
Name of Councillor Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Councilor SA Jali 3 3 Nil Nil Councillor M Mapuma 3 2 1 Nil Councillor N Seysman 3 1 2 Nil Councilor P Sitole 3 1 1 1 Councilor N Tele 3 2 1 Nil Councillor N Ndabazonke 3 3 Nil Nil
Name of Traditional Leader Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Prince B. Matomela 3 0 Nil 3 COUNCILLORS ATTENDANCE AT BUDGET AND TREASURY STANDING COMMITTEE MEETINGS Council Meetings – 01 July 2015 to 30 June 2016
Name of Councillor Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Councillor M Boqwana 3 1 1 1 Councillor T Dyani 3 1 Nil 2 Councillor N Gxasheka 3 1 Nil 2 Councillor N Mntanga 3 1 Nil 2 Councillor G Ntonjane 3 1 Nil 2 Councillor MT Siwisa 3 3 Nil Nil
Name of Traditional Leader Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Prince N. Mhlauli 3 Nil Nil 3 COUNCILLORS ATTENDANCE AT INFRASTRUCTURE DEVELOPMENT STANDING COMMITTEE MEETINGS Council Meetings – 01 July 2015 to 30 June 2016
Name of Councillor Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Councillor T Magazi 3 2 1 Nil Councillor T Dyibishe 3 3 Nil Nil Councilor M Faltein 3 3 Nil Nil
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Name of Councillor Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Councillor A Mtshakazi 3 1 Nil 2 Councilor M Yolelo 3 3 Nil Nil Councillor N. Coto 3 3 Nil Nil
Name of Traditional Leader Ordinary Standing Committees
No. of Meetings Present Absent With Apology Absent Without Apology
Prince GL Zitshu 3 3 Nil Nil POLITICAL DECISION MAKING STRUCTURES: Decisions are taken through the council and the Executive Committee oversees that all resolutions are implemented. The audit committee ensures that the Performance is monitored regularly and all departments submit Quarterly Performance Reports which result in a score card. MPAC plays an oversight role. 2.2 ADMINISTRATIVE GOVERNANCE INTRODUCTION TO ADMINISTRATIVE GOVERNANCE: MFMA section 60 (b): The Municipal Manager of a municipality is the accounting officer of the municipality for the purposes of this Act and must provide guidance on compliance with this Act to political structures; political office bearers, and officials of the municipality and any entity under the sole or shared control of the municipality. ADMINISTRATIVE GOVERNANCE STRUCTURE The Municipal Manager is the Accounting Officer of the Municipality.S/He is the head of the administration, and primarily has to serve as chief custodian of service delivery and implementation of political priorities. S/He is assisted by his/her directors which constitutes the Management Team, whose structure is outlined in the table below:
Top Administrative Structure
Position Duration Qualifications
Mr.T.T.Mnyimba Municipal Manager 15 June 2015 Bcom Hons : Business Management
Ms. N Mazwayi HOD at Corporate Services and Acting Municipal Manager
Appointed as HOD Corporate Services on the 1st May 2014. Acted as MM from 13June 2014 till March 2015
BAdmin Hons:Industrial Psychology
Mr V.C Makedama Chief Financial Officer Appointed 1ST November 2014 Bcompt Mr. L. Govu HOD: Technical Services Appointed 1st March 2015 BTech : Civil Engineering Mr. S.S Mnweba Acting HOD: Community
Services Appointed as Acting HOD: Community Services from July 2013 to date
Masters :Urban and Regional Planning
2.3 INTERGOVERNMENTAL RELATIONS INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS MSA section 3 requires that municipalities exercise their executive and legislative authority within the constitutional system of co-operative governance envisage in the Constitution section 41.
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As outlined in Chapter 3 of the Intergovernmental Relations Framework (2005), the Implementation Protocols (IP) better known as Memorandum of Understanding (MOU) is a useful tool to operationalize the management of a Joint Programme to realize government developmental outcomes. The Inter-governmental Relations Framework Act, (Act No 13 of 2005), requires all spheres of government to work jointly, coordinate, communicate, align and integrate service delivery effectively, to ensure access to services. In this regard the Municipality complies with the provisions of the Act. Intergovernmental Relations (IGR) meetings were held in the 1st and 4th quarter of the financial and the 2nd and 3rd quarter were not convened due to poor attendance by government departments and stakeholders. With the intervention of the District IGR and Provincial IGR efforts were made to strengthen the forum and terms of reference were developed to assist in strengthening the forum and as a result 4th quarter IGR forum was convened and well attended. The following departments attended:
Department of Human Settlements, Amathole District Municipality Municipal Support Unit and Engineering Department, Department of Roads and Public Works Department of Health Department of Home Affairs Department of Agriculture and Agrarian Reform Department of Sport Recreation Arts and Culture Aspire Independent Electoral Commission Department of Social Development and Special Programmes Eskom Department of Cooperative Governance & Traditional Affairs Department of Education Department of Safety and Liason South African Local Government Association Department of Agriculture ,Forestry and Fisheries Department of Sports , Recreation and Culture Community Development Workers Non- Government Organisations South Africa Social Security Services
PROVINCIAL INTERGOVERNMENTAL STRUCTURE Ngqushwa Local Municipality attends the Provincial MUNIMEC and Provincial Municipal Infrastructure Forum, Local Government Communications Forum, EPWP Provincial Steering Committee, Chief Audit Executive Forum, HRD & Collective bargaining Working Group, Provincial Skills Development Facilitators Forum to consult on matters of mutual interest and where the state and progress of municipalities are addressed. DISTRICT INTERGOVERNMENTAL STRUCTURES For district and local municipalities Ngqushwa Municipality attends the district IGR and District Mayors Forum (DIMAFO), Speakers Forum, District Engineering Forum, District Communicators Forum (SDF), Agricultural Forum, Corporate Services District Forum (CSDF), District Skills Development Facilitators Forum, Tourism Forum, District Finance Forum and District Representative Forum. We were involved in the following programmes:
the zoning scheme, SPU Programmes, Moral Regeneration Movement
2.4 PUBLIC ACCOUNTABILITY AND PARTICIPATION OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION MSA section 17 (2): requires a municipality to establish and organise its administration to facilitate a culture of accountability amongst its staff. Section 16 (1): states that a municipality must develop a system of municipal governance that compliments formal representative governance with a system of participatory governance. Section 18 (a) - (d): requires a municipality to supply its community with information concerning municipal governance, management and development.
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PUBLIC MEETINGS: COMMUNICATION, PARTICIPATION AND FORUMS: As guided and inspired by the Legal framework that includes the Constitution of the Republic of South Africa, The Municipal Systems Act 32 of 2000, as well as The Municipal Structures Act No.117 0f 1998, Ngqushwa Local municipality has ensured regular and effective communication with the community. The Municipality has to manage strategically Information flow with relevant target groups, and also to ensure that communication in all spheres of government is driven by a clear message to improve the lives of the people. It is widely recognized and understood that an organization's success rests on how well it understands the needs of its customers, and how it responds to those needs by delivering what is required. Good Customer Care clearly implies delivering a professional service, providing access to quality information, providing services that are timely, cost effective, and useful, for Government’s core objectives. The Presidential Hotline is an electronic tool we are utilizing to manage queries, complaints. Below is a communication checklist of the compliance to the communication requirements:
Communication Activities Yes/No Communication Unit Yes (only one person permanently employed) Communication strategy Yes Communication policy No Customer satisfaction survey No Functional Complaint management system Yes Newsletter distributed quarterly Yes
The municipality has ensured during the year that there is full participation of the public through;
IDP/Budget and PMS Representative Forums. IDP Road shows. MPAC Road shows. Local Communicator’s Forum. Service Delivery Days. National Information Days
Each Ward is afforded the opportunity to host the Rep forum, IDP road shows and Service delivery days. These Service Delivery Days are convened throughout the year.In these gatherings, people who attend are mostly; unemployed youth, adults and elderly citizens.Announcements are done through written communication. WARD COMMITTEES Refer to Appendix E which contains further details on ward committee governance and to Appendix F that contains performance data on a ward by ward basis.
Public meetings Nature and
purpose of the meeting
Date of events
Number of Participating
Municipal Councilors
Number of Participating
Municipal Administrators
Number of Community members attending
Issues Addressed (Yes/No)
Date and Manner of
feedback given to community
MPAC Roadshows
10-13 February
2015
25 22 727 Yes Feedback was tabled during IDP and Budget Roads
IDP and Budget Roadshows
21-23 April 2015
25 23 495 Yes
IGR Forum 9 Yes Next IGR meeting and
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Public meetings Nature and
purpose of the meeting
Date of events
Number of Participating
Municipal Councilors
Number of Participating
Municipal Administrators
Number of Community members attending
Issues Addressed (Yes/No)
Date and Manner of
feedback given to community
through bilateral between departments
Ward: 1
Name of representative Capacity representation Date of meetings held during the year
Z Jowela Ward Councillor 12 October 2015 02 February 2016
A. Zothe Secretary P.A Duma Ward Committee Member B.D Qhomfe Ward Committee Member N. Ntshayi Ward Committee Member T.C Njajula Ward Committee Member S.M Tshefu Ward Committee Member M. Ntlabathi Ward Committee Member N. Mateta Ward Committee Member N. Xozwa Ward Committee Member N. Muyiso Ward Committee Member
Ward: 2
Name of representative Capacity representation Date of meetings held during the year
N.F Coto Ward Councillor 03 August 2015 02 February 2016
T. Maseti Secretary Z.M.M Makapela Ward Committee Member N Masina Ward Committee Member M. Tyhuthulana Ward Committee Member N.T Ngojo Ward Committee Member N. Mbaxa Ward Committee Member N.E Guga Ward Committee Member N. Sinuka Ward Committee Member N. Ngqokwe Ward Committee Member N. Xatisa Ward Committee Member
Ward: 3 Name of representative Capacity representation Date of meetings held during the
year P Sitole Ward Councillor
15 September 2015
F Bangani Secretary N. Mpofu Ward Committee Member S. Dlova Ward Committee Member T. Ntsundwana Ward Committee Member M. Makeleni Ward Committee Member M. Laiti Ward Committee Member M. Kazi Ward Committee Member N.J Sese Ward Committee Member V. Mgxwadi Ward Committee Member
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Name of representative Capacity representation Date of meetings held during the year
N.A Madwaba Ward Committee Member Ward: 4
Name of representative Capacity representation Date of meetings held during the year
N.N.C Maphekula Ward Councillor 02 September 2015
V Bedesho Secretary Mpoli Ward Committee N. Khunjuzwa Ward Committee Member L.L Shiyane Ward Committee Member N.E Thantatha Ward Committee Member B. Koshe Ward Committee Member T.G Peter Ward Committee Member Y. Zono Ward Committee Member T.S Tshemese Ward Committee Member N. Mbovane Ward Committee Member
Ward: 5
Name of representative Capacity representation Date of meetings held during the year
G Yolelo Ward Councillor 05 August 2015 12 April 2016
K.K Thunyiswa Secretary N. Ngwendu Ward Committee Member S. Noqoko Ward Committee Member S.D Polweni Ward Committee Member M. Nqaqhela Ward Committee Member K.W Kene Ward Committee Member N. Jack Ward Committee Member B.B Rhoyi Ward Committee Member C.M Thili Ward Committee Member C.G Phethela Ward Committee Member
Ward: 6
Name of representative Capacity representation Date of meetings held during the year
M Mapuma Ward Councillor 07 October 2015 P Mkhatshwa Secretary
N.L Swapi Ward Committee Member N. Nyengule Ward Committee Member Z.L Ngwekazi Ward Committee Member N. Majola Ward Committee Member T.V Mpofu Ward Committee Member L. Makhubalo Ward Committee Member N. Lawu Ward Committee Member N. Booi Ward Committee Member P.V Luvuno Ward Committee Member
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Ward: 7 Name of representative Capacity representation Date of meetings held during the
year T Magazi Ward Councillor
06 August 2015 19 April 2016
N Cikido Secretary S. Sam-Sam Ward Committee Member D. Maxengana Ward Committee Member L. Manona Ward Committee Member K.F Dyinana Ward Committee Member N. Mquqo Ward Committee Member M. Dyibhishe Ward Committee Member D. Ndleleni Ward Committee Member X. Sicwebu Ward Committee Member L. Macwili Ward Committee Member
Ward: 8
Name of representative Capacity representation Date of meetings held during the year A.Mtshakanzi Ward Councillor
06 August 2015 17 February 2016 26 April 2016
N Jakavula Secretary N. Hlasela Ward Committee Member N. Madlingozi Ward Committee Member N. Mnqwazi Ward Committee Member M. Dlengezele Ward Committee Member M.C Maki Ward Committee Member M. Ndwayana Ward Committee Member M. Mfundisi Ward Committee Member N.G Mvabaza Ward Committee Member N. Manona Ward Committee Member
Ward: 9
Name of representative Capacity representation Date of meetings held during the year
N.Y Ndabazonke Ward Councillor 26 November 2015 16 February 2016
M Malinga Secretary N. Maswana Ward Committee Member B.V Mangi Ward Committee Member N. Mtati Ward Committee Member N.T Maswana Ward Committee Member N.V Mapekula Ward Committee Member C. Zazini Ward Committee Member M. Booi Ward Committee Member Z. Soganga Ward Committee Member M. Tana Ward Committee Member
Ward: 10
Name of representative Capacity representation Date of meetings held during the year
N Seysman Ward Councillor 26 November 2015 16 February 2016
M Dlamini Secretary N. Doto Ward Committee Member M. Mpolweni Ward Committee Member D.L Matinise Ward Committee Member K.T Matitibala Ward Committee Member N. Vellem Ward Committee Member
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Name of representative Capacity representation Date of meetings held during the year
Vacant Ward Committee Member M. Mpehlo Ward Committee Member M. Faltein Ward Committee Member X. Lento Ward Committee Member
Ward: 11
Name of representative Capacity representation Date of meetings held during the year
A Ndanda Ward Councillor 07 October 2015 04 February 2016
N Gxaka/Gusha Secretary Ward Committee Member N. Bacela Ward Committee Member V.W Poni Ward Committee Member X. Mamana Ward Committee Member Ward Committee Member N.V Toto Ward Committee Member T. Dlova Ward Committee Member B. Nzuzo Ward Committee Member L. Qwabe Ward Committee Member N.V Toto Ward Committee Member
Ward: 12
Name of representative Capacity representation Date of meetings held during the year
T. Dyibishe Ward Councillor 16 September2015 N Tima Secretary
T. Mvuyiswa Ward Committee Member M.E Deyi Ward Committee Member J. Speelman Ward Committee Member V. Seti Ward Committee Member S. Halana Ward Committee Member E. Daymani Ward Committee Member T. Landu Ward Committee Member T. Mtikitiki Ward Committee Member T. Mvuyiswa Ward Committee Member
Ward: 13
Name of representative Capacity representation Date of meetings held during the year
N. Mntanga Ward Councillor 18 August 2015 14 March 2016
N. Siyolo Secretary N. Mbanzi Ward Committee Member W. Bhungu Ward Committee Member A.Mfeketho Ward Committee Member A.Magwaxaza Ward Committee Member M. Malahla Ward Committee Member Z. Ntobolo Ward Committee Member N. Hlangane Ward Committee Member N. Manya Ward Committee Member N. Maswana Ward Committee Member
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IDP PARTICIPATION AND ALIGNMENT
IDP Participation and Alignment Criteria* Yes/No Does the municipality have impact, outcome, input, output indicators? Yes Does the IDP have priorities, objectives, KPIs, development strategies? Yes Does the IDP have multi-year targets? Yes Are the above aligned and can they calculate into a score? Yes Does the budget align directly to the KPIs in the strategic plan? Yes Do the IDP KPIs align to the Section 57 Managers Yes Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes Yes Were the indicators communicated to the public? Yes Were the four quarter aligned reports submitted within stipulated time frames? No * Section 26 Municipal Systems Act 2000 T 2.5.1
2.5 CORPORATE GOVERNANCE OVERVIEW OF CORPORATE GOVERNANCE Corporate governance is the set of processes, practices, policies, laws and stakeholders affecting the way an institution is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the institution is governed. RISK MANAGEMENT
Ngqushwa Municipality’s council monitors risk through the Audit Committee. The Committee plays an oversight role to ensure that there is an effective risk management process and system within the organisation. This approach provides technical assistance to the Council to exercise its role in ensuring that an adequate and effective risk management system and process is in place. The Council is expected to exercise the duty of care, skill, and diligence in identifying, assessing and monitoring risks as presented by Audit Committee. The Audit Committee recommends to the Council risk strategies and policies that need to be set, implemented and monitored. With the technical support from both internal audit and audit committee Ngqushwa Local Municipality identifies risk areas that are managed systematically and continuously. The municipality has a risk register in place which is treated as a working risk management document of which the identified risks are constantly recorded and properly managed. The municipality’s senior management monitors and evaluates the implementation and efficiency of management’s controls and such actions identified to improve current controls in the risk register. The municipality submits its risk management register to Internal Audit and Audit Committee on a quarterly basis for review. During the period under review, the municipality updated the Strategic and Operational Risk Register in line with the mitigation plans undertaken by management to improve the Risk Management System.
ANTI CORRUPTION AND ANTI FRAUD Section 83© of the MSA refers to the implementation of effective bidding structures to minimise the possibility of fraud and corruption and the Municipal Finance Management Act(MFMA)section 112(1)(m)(i) identify supply chain measures to be enforced to combat fraud and corruption, favouritism and unfair and irregular practices. Section 115(1) of the MFMA states that the accounting officer must take steps to ensure mechanisms and separation of duties in a supply chain management to minimise the likelihood of corruption and fraud.
Name of Strategy Developed : Yes/No Date Adopted /Reviewed Anti-fraud & Anti-Corruption Policy Yes Adopted in May 2012/13
The Anti-fraud and corruption committee has not been established to oversee the approach of the Municipality to fraud prevention, fraud detection strategies and responses to fraud and corruption incidents reported by employees or other external parties.
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The Municipality Audit Committee, appointed in terms of Section 166 of the MFMA has also been appointed as the Performance Audit Committee The Audit Committee assessment report for 2015/2016 financial year in accordance with Section 121(3) (j) of the Municipal Finance Management Act (MFMA) No. 56 of 2003 and King III on corporate governance. The audit committee (the committee) was established in 2009/2010 financial year. The committee is on a second term of services to the municipality that expires in 28 February 2017.left with few months to complete our second term of service to the municipality. The Audit Committee (the Committee) is a sub-committee of Council. The responsibilities of the Committee are detailed in the Audit Committee Charter. This charter was developed by the committee, presented to management and was approved by the council and it is reviewed on a yearly basis. The purpose of the committee is to provide:
Independent assurance on the adequacy of the risk management framework, performance management, governance and the control environment; Independent scrutiny of the municipality’s financial and non-financial performance; and To oversee the financial reporting and compliance processes.
The key benefits of the audit committee are as follows:
Increasing public confidence in the objectivity and fairness of both financial and non-financial reporting; Reinforcing the importance and independence of internal and external audit and similar review processes; Providing additional assurance through a process of independent review. Raising awareness of the need for internal control and the implementation of audit recommendations.
The audit committee is required to report that it has regulated its affairs in compliance with the audit committee charter, and has discharged its responsibilities set out therein. Summary of committee responsibilities: The responsibilities of the Committee, as laid down in the Charter, include providing oversight on financial reporting and other matters such as the monitoring of governance processes, controls and risk management in the municipality. The Committee also ensures effective communication between the internal auditors, external auditors, the Council and management. During this period the Committee conducted the following business and made recommendations for improvement in the relevant areas:
Approval of the internal audit coverage plan; Reviewed the Annual Financial Statement for 2014/2015 financial year; Reviewed the municipalities financial and performance reports; Reviewed the risk management framework of the municipality; Considered litigation matters facing the municipality Reviewed Internal Audit quarterly reports. Reviewed External and Internal Audit recommendations, monitoring and tracking thereof. Concluded on issues that were raised on the previous years.
MEMBERSHIP OF THE AUDIT COMMITTEE The Committee comprises of three independent executive members. Representatives from the office of the Auditor General, Internal Audit and senior management of the municipality attend committee meetings on an ex officio status. In terms of our Charter at least four (04) meetings should be held during a financial year. We are pleased to announce that all four meetings were held in the 2015/2016 financial year. Details of the Committee members are as follows:
Member Expertise Number of meetings attended Dr. W Plaatjes (Chairperson) Finance, auditing, risk management and
performance management 5
Mr. G Bana (Internal Audit specialist) Finance, auditing, and risk management 5 Ms N Hlongwane Finance and risk management 5
The permanent invitees to the Committee meetings include: the Municipal Manager, Chief Finance Officer, senior managers, MPAC Chair and representatives from Internal Audit.
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The Audit Committee recommended the following during the 2015/16 financial year:
Date of Meetings Reports Considered by the Committee
19 August 2015
Merging of ICT and Risk Committee Draft Annual Financial Statements 2014/15 Progress Report AGSA Draft Annual Performance Report 2014/15
03 September 2015
Internal Audit Status Report Strategic Risk Report & Operational Risk Report Audit Action Plan Report Quarterly Financial Report Internal Audit Plan Internal Audit Charter
26 November 2015
Quarterly Financial Report Report on unauthorised, irregular, fruitless and wasteful expenditure Budget Implementation Report Draft Audit Action Plan PMS Q1 Report Internal Audit quarterly Report Draft Annual Report Strategic Risk Report & Operational Risk Report
21 January 2016
Sec 72 Report – Mid-year Report (PMS) Sec 72 Report – Mid-year Report (Finance) Sec 52(d) Report - Quarterly Budget Monitoring Report Budget Adjustment 2015/16 Final Audit Report 2014/15 Audit Action Plan 2015/2016 Implementation Status of the Internal Audit Plan Strategic Risk Report & Operational Risk Report
18 May 2016
Q3 Institutional Overview Report 2015/16 3rd Quarterly Performance Report Draft SDBIP 2016/17 Performance Management Framework Review Bi-annual Financial Statements 2015/16 3rd Quarterly Budget Monitoring Report Draft Budget 2016/17 ICT Reports Implementation Status of the Internal Audit Plan 2015/16 Internal Audit reports Q3 Risk Committee close-out Reports Strategic & Operational Risk Report AC and IA Evaluation Tool 2015/16. Progress Update on the status of the 2015/16 regulatory audit
INTERNAL AUDITING
Each municipality and each municipal entity must have an internal audit unit, subject to MFMA section 165 (1) (2). (2) The internal audit unit of a municipality or municipal entity must—
(a) prepare a risk-based audit plan and an internal audit program for each financial year; (b) advise the accounting officer and report to the audit committee on the implementation of the internal audit plan and matters relating to—
(i) internal audit; (ii) internal controls; (iii) accounting procedures and practices; (iv) risk and risk management;
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(v) performance management; (vi) loss control; and (vii) compliance with this Act, the annual Division of Revenue Act and any other applicable legislation; and
(c) Perform such other duties as may be assigned to it by the accounting officer.
The following Internal Audit Reports were issued
Internal Audit Reports Issued Quarterly PMS Reviews Audit Action Plan Quarterly Dashboard Reports Risk Management Reviews Records Management Review Leave Management Review ICT General Review SCM: Supplier Database Review Bi Annual Financial Statements Review Expenditure Review SCM: Contracts Management Review Q3 Financial Statements Review Internal Projects Review SCM: Irregular Fruitless Review Risk Assessment Workshop Report Draft APR Review 201516 Draft AFS Review 201516 Occupational Health and Safety Review Revenue Management Review Payroll Management Review ICT Application Controls Review
WEBSITES:
Documents published on the Municipality’s/Entity Yes/No Current annual and adjustment budgets and all budget related documents Yes All current budget related policies Yes The annual report for 2013/14 Yes The annual report for 2014/15 to be published All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act for 2013/14 and resulting scorecards Yes
Mid - year performance report 2013/14 Yes IDP and Budget 2012-2017 Yes IDP 2015/16 Yes Annual SDBIP 2015/16 Yes All service delivery agreements for 2015/16 No All supply chain management contracts above a prescribed value (give value) for 2015/16 Yes An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during 2015/16 Yes
Contracts agreed in Year 1 to which subsection (1) of section 33 apply, subject to subsection (3) of that section Yes All quarterly reports tabled in the council in terms of section 52 (d) during 2015/16 Yes Public private partnership agreements referred to in section 120 made in year 0 Yes All supply chain management contracts above a prescribed value (give value) for 2015/16 Yes An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during 2015/16 Yes
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Documents published on the Municipality’s/Entity Yes/No Contracts agreed in Year 1 to which subsection (1) of section 33 apply, subject to subsection (3) of that section Yes All quarterly reports tabled in the council in terms of section 52 (d) during 2015/16 Yes Public private partnership agreements referred to in section 120 made in year 0 No
MUNICIPAL WEBSITE CONTENT AND ACCESS: The municipal website is updated as per section 21 (b) of the Municipal Systems Act and section 75 of the Municipal Finance Management Act. The website was later in the financial year upgraded with a new look and feel to be user friendly, documents according to Municipal Systems Act and Municipal Finance Management Act have been updated. e.g. Tenders, vacancies, notices and monthly budget
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CHAPTER THREE – SERVICE DELIVERY PERFORMANCE 3.1. WATER PROVISION Amathole District Municipality (ADM) is currently mandated to be a Water Services Authority and a Provider in this Municipality and is currently in a process of updating its water services development plan (WSDP) as the current one is outdated. This plan provides an overview of the coverage and gives a strategic direction to the ADM and identifies the most crucial projects in order of priority. Bulk water infrastructure is provided by a number of dams and water purification works within the municipal area which is operated by the Amatola Water Board. Table 14 gives an indication of these
DAM DAM’S CAPACITY FIRM YIELD (Mm3/pa)
Dabi Dam 0.23 0.50 Mankazana Dam 1.85 1.38 Ndlambe Dam 0.06 0.06 Rura Dam 0.05 0.05 Sandile Dam 7.4 4.14 Laing Dam 5.55 2.76 TOTAL 2.84 2.14
The Amatola Water Board also manages and operates six water treatment plants which collectively supply 2.84 million liters of portable water. These water treatment plants are as follows:
Dabi water treatment works. Peddie Regional water treatment works. Glenmore (Enxuba) water treatment works. Sandile Dam water treatment works. Laing dam water treatment works.
In Ngqushwa there is only one pump station which is located at the Water Works in Nqwenerana also known as Kingslyn. The water treatment works at Tyefu has been closed down and all the areas it used to serve are now being served by Glenmore Water Treatment works. In Peddie, adequate water is supplied from the King’s Lynn scheme which is also operated by the Amatola Water Board. In Hamburg, water is supplied by Amatola Water Board from Birha scheme which is also considered adequate for the present purposes. This source is however supplemented by three boreholes which constituted the town’s original supply and which are capable of supplying 25% of the town’s average requirement
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Table: Source of water by ward and source
Ward
Regional/local water scheme (operated by municipality
or other water services provider)
Bore
hole
Sprin
g
Rain
wat
er ta
nk
Dam/pool/stagnant water
River/ stream
Water vendor
Water tanker Other Grand
Total
21206001 1341 1 2 154 97 5 57 27 16 1701 21206002 1110 6 1 191 34 56 18 35 235 1686 21206003 1547 2 3 93 32 1 8 88 17 1792 21206004 1208 14 4 138 73 37 4 70 10 1558 21206005 667 5 3 129 4 102 - 3 2 914 21206006 944 7 4 441 55 6 2 182 25 1667 21206007 1063 44 15 373 79 59 38 250 23 1943 21206008 1246 9 2 277 110 112 18 57 39 1871 21206009 686 4 19 400 152 40 25 90 81 1497 21206010 1505 5 - 85 - 2 2 15 15 1630 21206011 1366 95 10 274 25 - 3 21 45 1839 21206012 854 - 2 407 65 3 - 60 27 1418 21206013 693 7 9 635 312 29 1 60 125 1870 Grand Total 14229 199 74 3595 1039 453 176 957 662 21384
Source: Stats SA (2011) 3.2 SANITATION There is only one sanitation treatment facility in the municipal area and this is at Peddie. The existing Waste Water Treatment Plant in Peddie is operating at its full capacity and is now overloaded. Amathole District Municipality is awaiting for an approval of EIA to construct a new Waste Water Treatment Works in Peddie town. There are no treatment facilities in Hamburg nor does the municipality render a service for the emptying of septic tanks. In rural areas use is primarily made of pit latrines, which are simply moved when the old ones are full. 3.3 ROAD MAINTENANCE INTRODUCTION TO ROAD MAINTENANCE The roads section is primarily responsible for the maintenance and rehabilitation of the Municipal paved; unpaved roads and stormwater within the Ngqushwa Municipal area.The municipality is responsible for 100% access to local roads within its jurisdiction, which include all streets within peri-urban and rural areas. It ensures the maintenance of a number of municipal roads which serve all communities and are regularly maintained, with the objective of addressing specific needs. The majority of municipal roads are gravel, with tar roads comprising 3% (12 km) of all municipal roads. The condition of tar roads 12 km is very bad, with a proportion of gravel roads 121km in good condition and ±357km of gravel roads in very bad condition. A road and stormwater master plans are being developed to address some of the identified future needs and challenges. The municipality is responsible for the repairing of potholes on the existing surfaced road, and unblocking and cleaning of drainage ketch pit to maintain free flow stormwater. Rehabilitation of existing roads, and re-gravelling and blading of gravel roads in rural and peri-urban on regular basis. There are approximately 1271.38km of roads in the municipal area. According to the Department of Roads and Public Works only 153.9km of these roads are tarred which translates to (12.11%) of the roads in the municipal area. A total of 108 km gravel roads were maintained through dry blading; re-gravelling also a total of 378m² of potholes were patched (tar roads) in the year under review.
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The district comprises national, trunk, main, district, minor and access roads. The Major towns are linked by an adequate network of roads and there is also a good network of proclaimed gravel roads traversing the municipal area. The roads linking the various rural settlements are in a poor state of repair and are not adequately maintained. Municipality is only focusing on maintaining and constructing internal and access roads and in its jurisdiction, ±490km’s is gravel roads and 8.3km’s is surface roads. Roads and Storm-Water Section Staff
Task grade
Year – 14/15 Year 15/16
Employees No.
Posts No.
Employees No.
Vacancies (Fulltime
equivalents) No.
Vacancies (as a % of total posts)
0 - 3 8 8 7 1 87.5 4 – 6 5 5 5 0 100 7 – 9 0 0 0 0 0
10 – 12 3 3 3 0 100 Road Section Staff
Job level/ Task
Grade
Year -14/15 Year 15/16
Employees No.
Posts No.
Employees No.
Vacancies (Fulltime equivalents)
No.
Vacancies (as a % of total posts)
% 0 – 3 1 1 1 100 4 – 6 0 0 0 0 0 7 – 9 1 1 1 1 100 10 – 12 0 0 0 0 0
3.4 PROJECT MANAGEMENT Project Management Unit section ensures that everybody has access and better services as enshrined in the Constitution of the Republic. All the projects that were prioritised by the municipal council for 15/16 financial year and budgeted for, at the end of the financial year were at retention stage i.e. 95% on expenditure. The provision of sports and recreation facilities, parks, community halls are managed and provided by the PMU section. In 2015/16 financial year a total of two community halls at Ndlambe and Nier were constructed, also two sport facilities were constructed at Glenmore and Hamburg successfully. The need for the provision of all these community facilities in both the peri-urban and rural areas is still great, as indicated at most IDP meetings Project Management Unit is the section that is specifically dealing with the project implementation of the municipal capital projects. Responsible for the administration and financial management of MIG and any other Capital funds within the department and national accounting systems for infrastructure projects of the department. Management of the MIG and the preparation of all necessary reports to the Provincial MIG Management Unit and the National MIG Unit the relevant provincial and national departments. Ngqushwa Municipality in terms of Division of Revenue Act (Act No 29 of 2013) forms part of the municipalities that receive grants from national treasury. The municipality is required to submit projects to be implemented under MIG to Provincial and National treasury and report to Treasury about expenditure on the grant.
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PMU Section Staff
Job level
Year -14/15 Year 15/16
Employees No.
Posts No.
Employees No.
Vacancies (Fulltime equivalents)
No.
Vacancies (as a % of total posts)
% 0 – 3 0 0 0 0 100 4 – 6 0 0 0 0 0 7 – 9 1 1 1 1 100
10 – 12 1 1 1 1 100 13 - 16 1 1 1 1 100
PMU PROJECTS IN 2015/2016 FY
PROJECT NAME WARD NAME STATUS Ndlambe Community Hall 8 Completed Nier Community Hall 11 Completed Hamburg Sport field 11 95% Retention Glenmore Sport field 8 95% Retention Ngxakaxha Scheme Access Road 3 60% Construction Mgwalana Internal Roads 9 95% Retention Tuku A Internal Roads 6 95% Retention Dube Access Road 5 95% Retention
During 2015/2016 FY Ngqushwa Local Municipality employed 182 people through EPWP. The following are the projects implemented through EPWP:
Ngqushwa Road rangers, Pothole patching, Maintenance of Heritage sites, Refuse removal, Ngqushwa EPWP Interns, and Ngqushwa Local Workers
EPWP EMPLOYMENT AND EXPENDITURE The expenditure on EPWP as at the end of June 2016 is 100% MIG EXPENDITURE The expenditure on MIG as at the end of June 2016 is 100% 3.5 ELECTRICITY The Millennium Development Goal states that all households must have universal access to electricity by 2025. Access to electricity will alleviate poverty as the use of electricity supports lighting and cooking facilities. Eskom supplies electricity in the jurisdiction of Ngqushwa Local Municipality. The 2011 census figures depicts that there are 21384 households in the municipal area of which 94.65%households have access to electricity. This backlog is made up of in-fills and new extensions, rural and farm dweller homes. Eskom supplies electricity to the rural and farm dweller homes. The municipality only maintains the street lights and electricity in its own municipal buildings. The electricity supply to the areas of Ngqushwa is provided and maintained by Eskom in accordance with their Rural Electrification Programme. According to Eskom records there is no electricity backlog in Ngqushwa electrification, the only areas that are not electrified are the in-fills and new extensions of the villages. Ngqushwa local municipality is only maintaining street lights and its own buildings.
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Electricity Services Policy Currently there is no electricity services policy in the municipality, the municipality has only the electricity maintenance plan which deals with. Electrical Section Staff
Task grade
Year – 14/15 Year 15/16
Employees No.
Posts No.
Employees No.
Vacancies (Fulltime equivalents)
No.
Vacancies (as a % of total posts)
% 0 - 3 0 0 0 0 0 4 – 6 2 3 2 3 100 7 – 9 0 0 0 0 0 10 – 12 0 0 0 0 0 13 – 16 1 1 1 1 100
Service Objective
Provision for housing for all households
Additional houses provided during the year (Houses required at year end)
additional houses (houses required)
additional houses (houses required)
additional houses (houses required)
additional houses
( houses required)
additional houses
additional houses (houses required)
additional houses
( houses required)
additional houses ( houses required)
815 105 105 815 105 N/A 1500 1500
3.6 HOUSING Housing development in the Ngqushwa Municipality is the function performed by the Department of Human Settlement. The Municipality’s role is to liaise with the department and allocate land for Housing Development. Two projects have been implemented though with successes and challenges. These projects are Peddie 500 (known as Peddie extension) and Peddie 1420 (known as new creation). Peddie Housing projects:
1. Peddie 1420
Peddie 1420, due to its size, the project was divided into two phases of which phase 1 was completed without problems. Phase two was blocked due to mismanagement of funds and shoddy workmanship on the side of the contractor. The project was unblocked and the contractor was on site in January 2012 and the project was completed within the projected time frames. The condition of houses in this project enabled the municipality obtain awards in the province and has been nominated for the National Awards.
2. Peddie 500
This is one of the projects that the Department of Human Settlements is finding hard to finish Construction of Peddie 500 started and upon construction of 394 houses the project was blocked due to financial constraints and inexperienced emerging contractors. The Provincial Department of Human Settlements managed to secure funding for the unblocking and rectification of that project. The contractor is on site, as of now ten (10) houses are finished.
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HOUSING DEMAND PROFILE OF THE MUNICIPALITY The department of Human Settlements has reviewed the Ngqushwa Housing Sector Plan which will determine the housing demand based on the 2011 Census. The municipality is in the process of developing National Housing Needs Register which will determine the actual backlog as well as the subsidy quantum. The potential Housing Subsidy Qualifiers based on information from the 2014 Reviewed Housing Chapter, can be summarised as follows:
RURAL HOUSING
SOCIAL AND RENTAL
INFORMAL SETTLEMENT STRUCTURES
CHILD HEADED HOUSEHOLDS
4227 267 1314 129 The table above does provide an accurate estimation of informal settlement structures. This shows a sharp reduction in informal housing with the Ngqushwa Municipality. Access to housing
Source: Census 2011 HOUSING SUBSIDY PROJECTS There are 2 approved housing projects comprising 2177 units. Of these, 1420 is for green field’s development and 500 are in-situ development. Both these projects fall within the past projects. PAST AND CURRENT HOUSING PROJECT The housing projects recently completed by the Municipality are in Peddie (Peddie 710 and Peddie 500 though still under construction). A pilot housing project, consisting of 30 low cost houses has been completed in Hamburg and in Peddie, as 28 low cost housing units of the pilot housing project has also been completed. In addition, 395 out of 500 housing units of the Masakhane housing project in Peddie Extension have also been completed. The need for a housing project has been identified for the Glenmore area. Consumer education and beneficiary lists has been compiled and the feasibility study is underway to determine the feasibility of the project. Other projects have also been identified for Ndlovini and German village and feasibility studies are underway. Layouts for both projects have been developed, but the Ndlovini layout has been reviewed due to the constant demarcation of new sites.
Type of dwelling EC 126:Ngqushwa House or brick/concrete block structure on a separate stand 14823 Traditional Dwelling/hut/structure made of traditional material 4575 Flat or apartment in a block of flats 345 Cluster house in a complex 18 Town house (Semi detached house in a complex) 12 Semi detached house 21 House/flat/room in backyard 156 Informal Dwelling (Shack in backyard) 573 Informal dwelling (shack not in backyard;egin an informal/squatter settlement or on a farm) 741 Room /flatlet on a property or larger dwelling/servant’s quarters/granny flat 33 Caravan/tent 27 Other 60
TOTAL 21384
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Project Title Ward Area Sites
Project Value (R’000)
Houses Completed
No of units not started/under construction
Project Type
Project Status Comments
Peddie Masakhane 10 500 7 500 395 105
Green Fields- PLS
The project is in progress
Contractor has been appointed and is on site
Peddie Ph 2R/L 2 10 1420 38 802 710 Complete
Green Fields PHP
Complete Complete
Hamburg (Low cost Pilot Project)
30 - - - - Completed -
Peddie Low cost pilot project
10 28 - - - - Completed -
Prudhoe 12 In-situ ADM Project
Gcinisa South 11 500 - - - - Planning stage
Adjudication stage
Hamburg 11 500 - - - - Planning stage
Adjudication stage
Mpekweni 12 500 - - - - Planning stage
Adjudication stage
Peddie Alf Dlamini heights- middle income
10 150 - - - - Planning stage
Developer to be appointed
Tuku A 5 500 80 286 500 - - Communal land rights program
Planning Planning
Madliki 4 451 72 418 423 -- - - Planning Planning Lovers Twist 5 300 48 171 900 - - -- - - Cisirha 6 626 100 518 698 - - - - - Pikoli 9 499 80 125 927 - - - - - Lewis Village 9 500 80 286 500 - - - - Mankone 7 290 46 566 170 - - - - - German Vill 8 343 55 076 539 - - - - - Glenmore 7 1000 160 573 000 - - - - - Qaga Housing will always be an ongoing need in municipalities which will be hampered by affordability levels. HOUSING PROJECTS Incomplete Project Peddie 500 was unfinished with 105 units outstanding. The contractor has been appointed and is on site. Mpekweni, Gcinisa, and Hamburg Housing projects are at adjudication phase. HOUSING INFRASTRUCTURE Water and Sanitation is the function of Amathole District Municipality. Bulk services for Ngqushwa Municipality, therefore, becomes their responsibility.
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Bulk water supply is available to accommodate for existing and additional housing projects identified. This however does not apply to sewerage infrastructure. Water borne sewerage is only available in Peddie Town where the bucket system has just been upgraded in 2007. The size of the Waste Water Works stifles housing development in Peddie. Areas such as Alf Dlamini could not be implemented due to its size. It is because of the above that ADM started the process of expanding it. Ngqushwa LM has disposed a portion of Erf 93 for this project. During 2014/15 financial year, ADM has manage to get the Record of Decision (RoD) from the Department of Environmental Affairs. Finances are the only stumbling block. Hamburg town uses septic tanks at the present moment. For the rest of the municipality, VIP toilets are the main form of sanitation. The sanitation backlog in Ngqushwa is very high. 93.4% of households are below the RDP standard and approximately R97 480 950 is required to eliminate the backlog and this in particular in the rural areas. A major challenge facing the municipality is the difficulty in extending bulk infrastructural services to the outlying areas due to the scattered nature of the settlements. Efforts have been made to provide water up to the IDP standard (public stand pipes) but it has not been possible to connect pipes to individual households. This problem equally affects electricity supply because the cost of providing new connections for new extensions will further stretch the resources of the Municipality. Another challenge facing housing delivery was the difficulties experienced in transporting building materials due to the poor state of rural road networks. Suppliers of materials are also not able to supply the required quantities at the given times. Local contractors are also not able to obtain contracts because they are not registered with the NHBRC. These challenges will be addressed and explored in terms of Local Economic Development opportunities. Prudhoe Housing Project. ADM secured funding for the construction of 300 houses in Prudhoe. On construction of those houses extensions within the village lack of capacity at ADM cause some problems that led to the blocking of such project. The Department of Human Settlements is still awaiting Council Resolution from ADM surrendering their developer status. Destitute: The Department of Human Settlements developed a Directorate that deals mainly with destitute. Firstly the task was assigned to the Special Programmes unit within the municipality but has since been referred to the Housing section. To date 112 applications have been submitted to the Department of Human Settlements but not approved yet. Emergency Housing Assistant: 116 applications for emergency houses were submitted to the Department of Human Settlements. 80 applications were approved and the temporary structures erected in various areas of the municipality. DISASTER BACKLOGS WITHIN THE MUNICIPALITY There is quite a number of temporary shelters erected within the municipal area from the year 2010 to date through ADM as the function lies with them. We still have seven incidents where we did the assessments and reported to ADM. The challenge with these temporary structures is their condition. There is no clear direction as to how long is the life span of these structures and when they will be replaced by permanent structures. 26 applications for permanent structures in Ntloko village were approved for the municipality but not yet constructed. There are also 1070 applications from ADM to the Department of Human Settlements for the removal of temporary structures that still needs to be clarified. (Ngqushwa has 430) Requests have been extended to Ward Councillors to report on location of these temporary structures in their wards for assessment Information Sharing: On the 21 of May there was an information sharing day with the Department of Human Settlements and Ward Councillors. The Sections presenting touched on Housing Code, Development of Housing Needs Register for the Municipality, and Housing Consumer Education Development of Register for Indigenous Building Skills CHALLENGES: The main challenge we are facing is the Rural Housing development that needs strong political intervention. Because the land in the rural areas is either communal or state owned, therefore, before any development takes place consent from the National Minster of Rural Development and Land Reform has to be obtained. That poses a great challenge as there is no cooperation from the provincial and regional office.
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HOUSING IMPLEMENTATION PLAN AND PROJECT SCHEDULES Ngqushwa Municipality has, since 2012- till to date, been submitting business to Department of Human Settlement for housing provision. Table 1Below is a list of submitted business plans for rural housing: Table 1
Year of Submission Business Plan Number of units February 2012 Tuku A Housing Project 500 February 2012 Madliki Housing 451 February 2012 Lovers Twist 300 February 2012 Cisirha 626 February 2012 Ndlovini 500 February 2012 Pikoli 499 February 2012 German Village 343 August 2013 Lewis Village 500 June 2016 Mankone 290 March 2016 Glenmore 1000 Total Total 5009
The estimated amount of housing to address the backlog and the cost of implementing the needs is indicated below, quantum as per the 2014 National Norms and Standards:
House Cost: R110 947 Services Cost: R43 626 Raw land cost : R6 000 Total: R160 573
Based on the above business plans, the estimated subsidy is as follows: Table.
Total number of proposed dwellings Quantum per dwelling Total budget 5009 R110 947,00 R555 733 523.00
The table above shows that the budget has increased over years
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FE
ASIB
ILIT
Y PH
ASE
PL
ANNE
D AC
TIVI
TIES
& C
OST
ESTI
MATE
S Project Name
Target Size
Planned Instrument
Land Identification
Right to Develop
Beneficiary Identification
Pre-screening
Bulk Availability
Adequacy of Capacity
EIA Requirements (Basic/Full)
STATUS / COMMENT
11/12 TARGETS
ESTIMATED BUDGET
12/13 TARGETS
ESTIMATED BUDGET
13/14 TARGETS
ESTIMATED BUDGET
14/15 TARGETS
ESTIMATED BUDGET
15/16 TARGETS
ESTIMATED BUDGET
Pedd
ie Ph
ase 2
14
20
PHP
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Proje
ct Co
mplet
ed
Pedd
ie 50
0 50
0 PH
P Ye
s Ye
s Ye
s Ye
s Ye
s Ye
s Ye
s Co
nstru
ction
unde
rway
7 5
00 00
0 Gc
inisa
500
500
Rura
l Ye
s No
Ye
s Ye
s No
No
N
o
At a
tende
r stag
e Ha
mbu
rg 50
0 50
0 IR
DP
Yes
No
Yes
Yes
No
No
No
At
a ten
der s
tage
Mpek
weni
500
500
Rura
l Ye
s No
Ye
s Ye
s No
No
No
A Co
nsult
ant h
as be
en ap
point
ed an
d fea
sibilit
y stud
y is u
nder
way
Qaga
500
500
Rura
l Ye
s No
Ye
s Ye
s No
No
No
At a
tende
r stag
e
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3.7 WASTE MANAGEMENT The refuse collection is done on all our areas except villages. Refuse is collected twice per week in households and every day on the CBD. The street cleaning is also done weekly in the CBD; and once a week in the suburbs areas. Number of drop of zones were erected on the CBD as part of the programme of keeping town clean. Awareness campaigns are conducted in communities. Generally the refuse collection is done very well in our areas, we just have some challenges, like our vehicles are broken. Since the municipality has low volume there is not much in capital projects. Capital Expenditure Since the municipality has low volume there are no much in capital projects. COMMENT ON WASTE MANGEMENT SERVICE PERFORMANCE OVERALL: Our volume as the Municipality is low, therefore we don’t have much to budget on capital project. The municipality has introduced recycling as part of managing landfill site. The main focus on our capital project is on appropriate equipment for refuse collection and management of landfill site machinery. The municipality has installed refused collection cages in strategic positions in Hamburg and Peddie Town . 3.8 PLANNING AND DEVELOPMENT INTRODUCTION TO PLANNING AND DEVELOPMENT Planning and Development deals with, among other things, Municipal positioning in terms of Economic Development. This Planned Economic Development does not only focus on SMMEs and Co-operatives development, but also in Municipal Economic Development at large where investors will be invited to come and invest, developmental nodes are identified and there is proper planning of the town so as to boost investor confidence. Opportunities i. Agriculture- Ngqushwa Municipality has several irrigation schemes, eg, Tyhefu, Mthombe, just to mention but a few. Pineapple
farms are found within the Ngqushwa Municipality jurisdiction. Availability of quality livestock where the Municipality educate and give farmers quality bulls so as to improve livestock
ii. Tourism Attraction- Ngqushwa Municipality has annual commemoration for Tourism attractions such as Mqwashini, Uhambo Loxolo.
iii. Developmental Nodes. Ngqushwa Local Municipality has several nodes that can be developed so as to achieve economic development.
iv. Personnel- the Municipality has hired knowledgeable staff in various sections such as Agriculture, Housing, Spatial Planning and Land Use. The main aim is to get the maximum gain from the potentials that the Municipality has.
Challenges i. Lack of funds ii. Rural nature of the area iii. Size of the Municipality iv. Lack of knowledge from Community v. Even though the directorate has sections and staff but it yet to be a stand-alone directorate due to lack of funds for appointing
both Port-folio head and Head of Department. It is still amalgamated wit vi. h community services.
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3.8.1 PLANNING Ngqushwa Local Municipality had over the years not having the planning section. Only the building inspector that was employed. The town planning section is bringing a new dimension to the Municipality. Town planning Section brings the following to the Municipality: 1. Compliance with National Building Standard Act and Regulations for every housing development taking place within the
municipality so as to ensure sustainability. 2. To have a synchronised development so as to avoid urban sprawl 3. To develop zoning scheme maps and regulations so as to avoid haphazard planning. 4. Ensure compliance to Spatial Planning and Land Use Management Act (16 of 2013) The above will boost investor confidence, which in the long run lead to sustainable economic development. This will be achieved through identification of areas with potential for economic development within the Municipality. These areas will be of great benefit to both local community and investors. 3.8.2 LAND AND HOUSING SETTLEMENT PATTERNS Ngqushwa is predominantly rural with only 5% of the population living in the urban areas, as opposed to 95% of the population who reside in the rural areas. The settlement patterns of Ngqushwa can be divided into the following categories
Urban Areas Peddie and Hamburg are the only two proclaimed towns within the municipality. There are peri-urban settlements establishes outside of both of these nodes which in the case of Peddie almost encircle it. Peddie can be regarded as a regional hub for service rendering to the entire municipal area. The majority of the region’s services and facilities are located here and economic and social functions are performed from here. It also plays an important administrative role as the seat of the municipality is also in Peddie. Not all areas of the town are serviced, particularly the lower income areas which are found in the main part of the town. Hamburg is primarily a holiday destination. Development in this area has become stagnant over the past 3 decades and facilities are in a poor condition. The area is also not actively promoted as a holiday destination. Rural Areas The majority of the population that is 95% resides in the rural area which means that access to essential services and facilities by the majority of the population is also limited. This also compromises the municipality’s ability to raise revenue on the basis of services. These limitations have been recognized by the municipality and are in the process of being addressed. There are 118 rural villages which are scattered throughout the municipal area. These villages are surrounded by commonage land that is used for a mix of agricultural purposes including crops and livestock which are farmed primarily on a subsistence basis.
Rural villages can be classified as follows: Traditional rural villages such as Bell, Bodium, Crossroad, Lover’s Twist, etc. which owe their establishment to their proximity to an agricultural resource base. Rural villages established in response to commercial agricultural needs in terms of labour on commercial farms. These villages are primarily in ward 6, 7 and 11 and include Benton, Tharfield, Jamesdale, Stourpoort and Lewis. Holiday resorts such as Birha, Mgwalana, and Mpekweni resorts which are newly developed in response to the localized resort potential of the coastal area. Minor and isolated farm communities scattered throughout the municipal area.
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Conservation Areas There are a number of environmentally sensitive areas which are categorized as conservation areas and which are primarily situated along the coast.
3.8.3 LAND TENURE AVAILABILITY AND REDISTRIBUTION There is sufficient rural and urban land available in Ngqushwa municipal area to accommodate the short, medium and long term demand for land. Land release is however problematic and numerous tenure and distribution issues needs to be addressed. In the Ngqushwa municipal area, most urban land is owned by the Municipality. Rural land is however primarily state owned and interspersed with a number of informal land rights. A need was identified to convert the tenure of the large tracts of state owned land to communal ownership. Land release for housing projects has either been very slow, or has not been responded to in spite of the submission of applications to that effect. Ngqushwa is also characterized by a diversity of land uses and land tenure which is primarily attributable to the previous dispensation as evidenced by historical forms of land rights, such as African freehold, quitrent and permission to occupy (PTO) which are still prevalent in the area. The land tenure arrangements prevalent in Ngqushwa are summarized in the table below:
Land tenure arrangements within Ngqushwa There are a number of surveyed farms which were acquired from former white owners, some of which are in the process of being transferred to black commercial farmers and holders of IPILRA rights. There are also farms which have been transferred to former lessees who had Deeds of Sale under the Ciskei regime. Delays are however being experienced with the transfers of the above properties due to a number of reasons including unregistered subdivisions. Land redistribution of land is also a complex issue and is a major issue within this municipality. The Amathole District Land Reform and Settlement Plan identified the following crucial issues in respect of the current state land disposal process.
There is a lack of consultation between the local municipality and DLA/.DoA over decisions regarding the disposal of state farms. There is insufficient information about the extent and availability of land earmarked for disposal available to the local authority and communities. Legitimate land owners do not have their title deeds. The process whereby the legal occupant of land is identified needs to be done faster. Communities need to be given information on how to access land for farming and the relevant policy provisions. There is a need for greater support and communication from DLA
Bell/Bodiam Freehold/Quitrent Tyefu Irrigation Scheme communities of Glenmore, Ndwayana, Pikoli-Kalekeni and Ndlambe Glenmore established late 70’s early 80’s, Ndwayana
PTO’s in dense settlement Others old nineteenth century settlements PTO’s under TA New tenure arrangements introduced by Ulimocor/irrigation scheme, with foot plots, etc., but never with full community sanction.
All other rural settlements PTO’s Surveyed farms, formerly white owned, purchased by SANT to consolidate former Ciskei
Currently black owned or “leased” pending transfer to black farmers (conveyancing problems) or to be transferred to groups of occupiers with IPILRA rights-CPA.
Former Ulimocor Pineapple farms, same as above. Three separate blocks of land in the south east.
Tenure still under the state, Company (Pineco) running pineapple production, workers organized under Peddie Pineapple Development Trust-intention to investigate transfer of land to Trust over time.
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The restructuring agreements and subsequent land rights and transfers between the former parastatal, Ulimocor and the Peddie Community Development Trust need to be finalized as there are economic benefits to this. There are unresolved land claims that still needs to be resolved. PLANNED AND SURVEYED SITES The following settlements within the Municipality have recently been planned and surveyed as pilot projects in order to facilitate service and infrastructural provision as advanced by the Rapid Land Development and People’s Housing Process. Table: Planned and surveyed sites
Additional areas have been identified and a business plan submitted to the Department of Housing, Local Government and Traditional affairs for their survey and planning. The surveying and planning of Mavathulana was in progress at the time of compilation of this report. (See table below) Table: Areas identified for survey and planning
Area Approximate number of sites Mavathulana 600 Dlova 300 Lewis 250 Mankone 500 Total 1650
Area Approximate number of sites 1. Hamburg 600 2. Mpekweni 1000 3. Gcinisa 500 4. Ntilini 350 5. Glenmore 600 6. Prudhoe 350 7. Feni 1000 8. Pikoli 820 9. Cisira 500 10. Runlets 450 11. Tuku A 527 12. Durban 500 13. Madliki 500 14. Crossroads 440 15. Upper Gwalana 598 16. Nonibe 623 17. Ntilini 121 18. Mgababa 780 Total 10 709
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3.8.4 SPATIAL DEVELOPMENT This section deals with the spatial land use applications. These application ensure a synchronised planning and reduce unplanned. However there are challenges that include non-submission of application due lack of knowledge and culture. The Municipality has held some workshops so as to sensitise the community about the legislation in the form of National Acts, Policies and by-laws.
Application for Land Use Development Detail Formalisation of
Townships Rezoning Built Environment
2014/15 2015/16 2014/15 2015/16 2014/15 2015/16 Planning application received 0 0 0 3 4 12 Determination made in year of receipt 0 0 0 0 0 0 Determination made in following year 0 0 0 0 0 0 Application withdrawn 0 0 0 0 0 0 Applications outstanding at year end 0 0 0 0 0 0
3.8.5 LOCAL ECONOMIC AND TOURISM DEVELOPMENT INTRODUCTION TO ECONOMIC AND TOURISM DEVELOPMENT In line with Ngqushwa Local Municipality’s vision we seek to create an enabling environment. Agriculture, SMME’s and Tourism is a competitive advantage of Ngqushwa Local Municipality. The achievement of sustained economic growth and development and the creation of competitive advantage for the municipality relies absolutely on the prioritization of interventions which will have the greatest impact both socially and economically. Agriculture will most potential to contribute to job creation, promoting of livelihoods opportunities and contributing to sustained social and economic growth and development. THE LOCAL MUNICIPALITY IS ENVISAGING TO INCREASE AGRICULTURAL INCOME THROUGH: • Supporting local food systems that keep wealth in rural communities • Investing in capacity building to improve the quality and resilience of crops and livestock • Facilitating investments in local agro-processing to increase product demand and improve prices. • Growing local market for agricultural output TOURISM INCOME THROUGH: • Maintenance of heritages sites and hiking spots. • Establishment of strategic relations with neighbouring municipalities • Provision of support to the existing hospitality industry in Ngqushwa (Home Stays Accommodation Business) through trainings
grading • Promotion and support of craft product development and marketing
PROGRESS TOWARDS ACHIEVING THE LED KEY OBJECTIVES LOCAL ECONOMIC DEVELOPMENT INTIATIVES Community Works Programme Community Works Programme is an initiative designed to provide an employment safety net, by providing participants with predictable number of days of work per month – thus supplementing their live hood strategies and affording them a basics level of income security through work. The program me is targeted at unemployed people of working age, including those whose livelihood activities are
48
insufficient to lift them out of poverty. The programme is designed to employ a minimum of 1,000 people per site for two a week, or eight days per month. Peddie CWP site currently employs 1048 beneficiaries. COMMUNITY BENEFICIATION
Site has 1048 beneficiaries Programme implemented in all wards
Hamburg Aquaculture Project It is an initiative by the Department of Agriculture, Forestry and Fisheries where the department invested an amount of R9, 5m to the project through the EPWP programme. Ngqushwa Local Municipality made land available for the project. COMMUNITY BENEFICIATION
Employed 58 local people Youth (47%) and women (48%) Received training (occupational health and safety, life skills, HIV/AIDS and First Aid course) Registered as Siyazama Aquaculture co-operative member. Programme implemented at Ward 11
The project impact:
Skills development Transfer of technology to communities Food security Job creation
SUMMARY OF FUNDED PROJECTS UNDER LED DURING 2015/16 FINANCIAL YEAR
PROJECT NAME WARD AND VILLAGE ENTERPRISE QUANTITY
Amasirayeli 2 Poultry production 10 starter 10 Finisher
Thembizithonga 9 Poultry production 10 start 10 Finisher
Malilela Co-op 3 Poultry production 10 start 10 Finisher
Pole poultry co-op 5 Poultry production 10 starter 10 Finisher
Khanyisa poultry co-op 7 Poultry production 10 starter 10 Finisher
Makulime Bodium co-op 6 Poultry production 12 layers
Radie Multi purpose 13 Poultry production 10 starter 10 Finisher
Sdubini Agric Co-op 9 Poultry production 10 starter 10 Finisher
Sakhisizwe piggery project 12 Piggery production 15 Growth 15 Germ meal
Tyityaba piggery project 6 Piggery production 15 Growth
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PROJECT NAME WARD AND VILLAGE ENTERPRISE QUANTITY 15 Germ meal
Ngqushwa Livestock Farmers All ward Livestock production 2 livestock loading ramps Ngqushwa mechanization program All wards Crop production Insecticides
SMME’S AND COOPERATIVES DEVELOPMENT A Cooperative Development Centre was established with the assistance of SEDA as phase one. The aim of the centre is:
To facilitate registration of coops with Companies and Intellectual Properties Commission CIPC. provide business development advice and services, A one stop shop to access all government services and programmes related to cooperative development, To create a meaningful and high impact market linkages for cooperatives, and A centre where an organized and sectored database is updated and readily made available. Through the centres, 68 coops were registered with CIPC within the 15/16 financial year and captured in municipal data base. Trainings: 40 SMME members were trained in financial management, Basics business skills and business management as part of SMME Development.
Programme Beneficiary Ward
Ploughing Programe50 kg Fertilizer
Masele 2 Abambo Maize Production(Qhugqwala) 3 Zusigcine Maize Production(Tarfield ) 11 Gwebindlala (Gwalana) 13 Bodium 6
Agro processing (Apiculture) Masibulele Bee keeping 6 Agro processing machinery Ntsinekane Bee keeping 4
Protective Clothing
Thembalethu Bee keeping 8 Dam- Dam Bee keeping 7 Ngqwenerana Bee keeping 4
Apiculture Equipment Wesley Bee keeping 11 Bee Boxes Tyityaba Bee keeping 6 Poverty Alleviation Projects Masande piggery project (Nobumba) 9 Piggery Feed Shearing Outreach Ministry Agric Co-op 3 Production inputs Upper Gwalana Piggery project 13 Irrigation schemes Dube Irrigation scheme 5
Diesel for mechanization Ngxakaxha 5 Gcinisa north 4
ZIMBABA POULTRY VALUE CHAIN The project is an initiative of Department of Rural Development and Land Reform (DRDLR) identified rural poverty nodes for strategic investment in economic and social infrastructure resulted in Zimbaba Village and Dlova identified for the project concept of an ‘Establishment of Integrated Community Based and Owned Poultry Value Chain for Rural Households’. The department funded with an amount to R9.2 million. The Poultry Value Chain project concept proposes the establishment of five business units divided as follows in terms of business component ownership: Component 1: Hatchery. Build a hatchery house and fit it with hatcheries. Get into contract with Breeder to supply 3600 eggs a week. Hatch and sell to Broiler Farmers.
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Component 2. Help individual households build 6 houses that can accommodate at least200 broilers. To reduce costs teach them to build their own houses with the help of a quality controller. Give them feeders and founts to run full cycles of broilers. Either sell all to the abattoir operator or get them slaughtered for a fee to sell to specific market. Component 3. Establish a feed mill that produces up to 35 tons of feeds per months. Provide equipment and raw material to produce broiler and layer feeds. Get a truck to deliver and collect feed ingredients. Component 4. Help an individual household build two houses that can accommodate 200 layers each. Provide 200 layers at the point of lay six months apart. Provide egg cooling facilities and marketing facilitate sales of the eggs. Component 5. Establish small scale chicken abattoir that can slaughter at least 200 chickens per day. Equip it with slaughtering equipment, chiller, freezer and display fridge. The abattoir to serve as sales shop for bulks and individuals buyers. COMMUNITY BENEFICIATION
Project beneficiaries are 104 community members. Women 72% Ward 3 (Dlova)
The project impact:
Skills development Food security Job creation Women empowerment
Hamburg Town Centre Upgrade The Municipal has identified 3 Erven and donated them to Department of Public Works for construction of a multi-million clinic in Hamburg. Construction will start in the new financial year. Agricultural Development Programmes
Agriculture Indaba was coordinated, to identify area-specific requirements or opportunities for the municipality’s agricultural enterprises The municipality has partnered with DRDAR for the continuation of cropping programme at Qhugwala, Bodium, Benton,Tarfield and Gwebindlana. Efforts by the Ngqushwa Local Municipality in collaboration with Amatole District Municipality, DRDAR and ECRDA for livestock improvement scheme has been rolled out in 3 wards. Bulls and medication provided to the livestock farmers. Ngqushwa Local Municipality has purchased building material for Qugqwala Wool Growers Association to improve the quality of wool production and accelerate agriculture development through livestock production. The revitalisation of Irrigation Schemes has been continued with Dube and Gcinisa South irrigation scheme. Processing and value addition to agricultural commodities are practised, where the buying power and market demand for value added products exists.Ngqushwa municipality realised the potential that the beekeeping farming has and provided support of agro processing equipment, bee boxes and protective clothing to 7 cooperatives. The skills base of the farmers is a key driver of both economic progress and poverty reduction. The municipality commits to a concerted approach to improve the skill profiles of the emerging farmers. Key areas of action includes a) Successful marketing of livestock training and Honey processing training.
TOURISIM ACTIVITIES
Mqwashini Heritage Commemoration Crafts Product Development Maintenance of Heritage Sites
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Uhambo Loxolo Hiking Trail Commemoration Fish Festival Durban Toursim Indaba Macufe Festival
3.9 COMMUNITY & SOCIAL SERVICES This component includes: libraries and archives; museums arts and galleries; community halls; parks,cemeteries and crematoria; child care; aged care; social programmes, theatres. INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES Currently the municipality has Technical Services to assist 45 community halls, the municipality provide maintenance of the Community halls. 3.9.1 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; PARKS
&OTHER (THEATRES, ZOOS, ETC) INTRODUCTION TO LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES Currently the Municipality has 45 community halls, each ward has its own halls from ward 1 to ward 13, and 6 of them are still under construction. Ward 1 consist of 4 halls in Gobozana, Mtati, Tyeni, Ngqwele and Nxopo. Ward 2 has 3 halls in Dubu, Masele, Jubisa, Tsolo and one in Qaga is still under construction. Ward 3 has 2 halls in Dlova and Qugqwala, Zondeka and Tyatha are in tender process. Ward 4 has 4 halls in Qawukeni, Mgwangqa, Bhongweni, Khalana, Rode and Baltein are still under construction.Ward 5 has 3 halls in Machibi, Madliki and Phole. In ward 6 theres 3 halls in Tuku A, Crossroads, Leqeni and Bell is in Tender process. Ward 7 has 3 halls, in Cisira, Nyaniso, Cheletyuma and Feni Ward 8 has 5 halls in Qamnyana, Glenmore, Mankone, Rura, Ndwayana and Gwabeni. Ward 9 has 3 halls in Pikoli ,Woodland and Runlet is still underconstruction. Ward 10 has 4 halls in Ncumisa Kondlo, Durban, Peddie extension and Luxolweni. Wars 11 has 2 halls in Hamburg and Benton. Ward 12 has 4 halls in Mpekweni, Mgababa, Prudhoe and Mkhanyeni. Ward 13 has 2 halls in Upper Gwalana, Qeto and Lower Gwalana is under construction. COMMENT ON THE PERFORMANCE OF LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC) OVERALL: The Municipality has two Libraries one is situated inside municipal building and one mobile library at Hamburg. Both libraries have not officially been handed over to the Municipality by Department of Sport, arts, recreation and culture. INTRODUCTION TO CEMETORIES & CREMATORIUMS We have two sites which we maintain, Ngqushwa Local Municipality is in the process of identifying a new site. Crematorium is the responsibility of ADM and it is not common in our jurisdiction.The municipality has to identify cemetery sites for both Hamburg and Birha. COMMENT ON THE PERFORMANCE OF CEMETERIES & CREMATORIUMS OVERALL: Municipality has two (2) cemeteries and both are in Peddie Town.. There is a general complaint about the distance the community from Ethembeni location have to travel to the cemetery, hence there is a need to open a new cemetery that will be easily accessed. The budget for cemeteries was R200 000 for this financial year for introducing a new cemetery management system. The municipality is responsible for grass cutting and maintenance of cemeteries.
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INTRODUCTION TO PEDDIE GARDEN Peddie Town seeks to benefit from the programmes due to socio-economic and environmental challenges that make the town to become unattractive and repulsive to public and private sector investments. The Peddie Central Park – commonly known as Ngqushwa Leisure Gardens is a unique asset to the town is well used by locals for social events and gatherings. The park offers further potential to become a great public place, which can be used to build confidence and showcase Peddie to broader users groups and tourists. Other recreation facilities such as sports fields and pocket parks are few within the primary study area. 3.10 ENVIRONMENTAL PROTECTION INTRODUCTION TO ENVIRONMENTAL PROTECTION This component includes: pollution control, biodiversity, landscape and costal protection. Environmental protection deals with the safeguarding of the environment through implementation and complying with legislation such as a constitution, NEMA, and other relevant legislation. Non- compliance with the Environmental legislation will fasten the depletion of Ozone Layer and fasten Climate change. In an attempt to promote compliance, Ngqushwa Local Municipality in conjunction with other government departments such as DEA, DEDEAT, Department of Roads Public Works and Amathole District Municipality came up with several projects that were aligned to Environmental Protection. These include; Working for the Waste, Coastal Management projects. Through tireless efforts of the Municipality and close relations with other stakeholders, the Hamburg beach, which is within the Municipality’s jurisdiction, achieved a Blue Flag Status and Birha beach is still on pilot status during this financial year. During May 2015, the municipality was part of the stakeholders that convened the Environmental week at Great Fish River Nature Reserve, where capacitation of schools and local community was done . POLLUTION CONTROL INTRODUCTION TO POLLUTION CONTROL Nowadays, the world is reeling in climate change, which is a result of pollution, be it water pollution, land or air pollution. Due to the size of Ngqushwa Local Municipality, the responsibility for pollution control lies with the district Municipality (Amathole District Municipality). Be that as it may, the Ngqushwa Local Municipality conducted awareness programs for pollution control in schools, communities as well as clean up campaigns were conducted on schools. Department of Environmental Affairs (DEA) came on board with the programme of litter picking where a total of 120 persons were employed for 18months. This project deals specifically with land pollution as workers are doing litter picking. There are bins that were offered to the Municipality by DEA in support if recycling projects. Department of Environmental Affairs provided a sorting Shed at the Landfill site in an attempt to strengthen recycling projects. Due to financial constraints, the Municipality was unable to hold workshops and awareness campaigns, and had to rely on other stakeholders such as Amathole District Municipality. Even though the Municipality has two (2) licensed landfill sites, it is difficult to comply with the regulations as in most cases the waste is burned, thereby polluting the environment. In future, there is a need of closing and relocating the landfill site away from the residential areas. The other main challenge is the vandalism on our ‘no litter’ signs, most of them are uprooted
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BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL PROTECTION) INTRODUCTION BIO-DIVERSITY AND LANDSCAPE Eradification of alien plants in Peddie Town was done as part of biodiversity management. The municipality conducted a workshop on Indigenous plants and eradification of alien plants. Environmental awareness was conducted on coastal communities concerning management of coastal indigenous forest. We are boarded by Great fish river Nature reserve and on a continuous basis we meet them to check on areas of common on biodiversity and general. There are DEA projects that are focussing on coastal management. These projects assisted the Municipality towards the achieving Blue Flag status. 3.11 SAFETY AND SECURITY NGQUSHWA MUNICIPAL TRAFFIC SERVICES The Traffic Services was established in 2005 by a political mandate to address the safety needs of the community of Ngqushwa. The section delivers traffic policing services through a partnership-approach with the communities it serves. It aims to create a safe and secure environment for all residents, citizens and visitors within Ngqushwa Municipal Area through effective traffic policing, by-law enforcement and other integrated crime prevention initiatives. Key Performance Areas Traffic Law Enforcement 1. Visible policing 2. Road Blocks 3. Speed Law 4. Drunken Driving Campaigns 5. Road Safety Campaigns Register Authority 1. Vehicle Registration and Licensing of Motor Vehicles. 2. Renewal of Motor Vehicle Licences. 3. Duplicate Registration Papers. 4. Scrapping of Vehicles Driver’s Licence Technical Centre 1. Renewal of Driver’s Licences 2. Learners licence Tests 3. Drivers Licence Tests 4. Duplicate Driver’s Licences 5. Public Driver’s Licence Permits Road Safety 1. Learner / Driver Education program by simulator and vehicle for youth between 18 – 35 years 2. Road Safety Education at all schools and villages.
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OVERALL PERFORMANCE OF NGQUSHWA MUNICIPAL TRAFFIC SERVICES: There was a considerable decrease in the number of moving violations and accidents since the establishment of the traffic services. Since 2012/ 2013 financial year a concerted effort was launched to address Road Safety with various Road Safety initiatives that include: Scholar educational projects (Coega Simulators- for both learners licence and Drivers Licences training) by the visiting of schools in the municipal area. Furthermore our continued commitment towards the National Arrive Alive, Parking, Speeding and Un- Roadworthy Vehicles are common phenomenon throughout Ngqushwa Municipal Area which invariably infringes upon the rights of law abiding citizens and visitors and in some cases endangers lives. The Traffic Section is committed to intensify law enforcement against motorists who blatantly disregard the rules of the road. It is an accepted phenomenon that as municipality grows; its public transportation system has to keep pace with such development to ensure that sufficient capacity is provided to meet the growing demand for transportation. To this extent, the traffic section is working earnestly on regulating the minibus and private transport industry to ensure smooth transport of residents of Ngqushwa Municipality. With the establishment of a driver’s licence testing centre and other functions the residents of Ngqushwa Municipality do not have to drive to other towns for services. However there are challenges such outstanding payments of infringement notices (traffic fines), condition of road services in Peddie town and lack of relevant personnel. STATISTICS FOR NGQUSHWA MUNICIPAL TRAFFIC SERVICES 2015 / 2016
Money Collected for DOT / DLTC R 2 257 917.52 STAFF AT NGQUSHWA MUNICIPAL TRAFFIC SECTION
TRAFFIC/ SECURITY MANAGER
MANAGEMENT REP
TRAFFIC OFFICERS
TRAFFIC/ EXAMINERS
SECURITY OFFICERS
ADMIN STAFF
EXAMINER: LEARNER’S
INTERN
1 1 6 3 13 3 1 1
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3.12 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ICT section provides appropriate Information and Communication Technologies that enables our users to access the information and services necessary to do their jobs. During 2015/2016 financial year, there were three projects planned: Network wireless link upgrade and labelling of network points; Installation of network monitoring tool and inventory system and desktop support. All three projects were implemented.
Capital Expenditure 2015/2016: ICT Services R' 000
Capital Projects 2015/2016 Budget Adjustment
Budget Actual
Expenditure Variance from original budget
Total Project Value
Computer Costs R 224 400 R 222 700 R 220 000 R 2 700 R 220 000 IT infrastructure and security R 550 000 R 544 960 R 357 542.62 R 187 41738 R 357 542.62 Software R 490 000 R 492 560 R 204 268.25 R 288 294.75 R 204 268.25
Capital Expenditure 2015/2016: ICT Services
R' 000
Capital Projects
2015/2016
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Computer Costs R104 800 N/A N/A N/A R104 800 IT infrastructure and security R298 000 N/A N/A N/A R298 000 Software R300 000 N/A N/A N/A R300 000
Employees: ICT Services
Job Grades
2014/2015 2015/2016
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of total posts)
No. No. No. No. % 0 - 3 N/A N/A N/A N/A N/A 4 – 7 N/A N/A N/A N/A N/A 8 – 13 1 2 1 1 50 % 14 - 18 1 1 1 0 100% Sect 56 5 5 5 5 0%
Total 2 3 2 0 75 %
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CHAPTER FOUR: INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL PERFORMANCE
4.1 MUNICIPAL WORKFORCE MANAGEMENT
Ngqushwa Municipality has a responsibility to manage its workforce by implementing interventions and programmes that will keep employees motivated and enhance performance. This section emphasis on management and administration of employee matters/issues like management of leave, overtime, and training development. The municipality continues to develop workforce management policies in order to maintain productive employees. WORKFORCE POLICY DEVELOPMENT: The Municipality has developed 13 policies during the year under review. These policies are developed and reviewed annually and when required. The following seven policies have been sent to SALGA for comments and input: Attraction & Retention policy, Recruitment policy and Remuneration policy
HR Policies and Plans
Name of Policy Completed %
Reviewed %
Date adopted by council or comment on failure to adopt
1 Acting and acting allowance policy 100% 30 July 2015 2 Employee study assistance policy 100% 30 July 2015 3 Disciplinary Code and Procedures 100% SALGBC Collective Agreement 4 Essential Services 100% SALGBC Collective Agreement 5 Retention policy 100% 30 July 2015 6 Bereavement policy 100% 30 July 2015 7 Recruitment, selection and appointment policy 100% 30 July 2015
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HR Policies and Plans
Name of Policy Completed %
Reviewed %
Date adopted by council or comment on failure to adopt
8 Relocation policy 100% 30 July 2015 9 Termination policy 100% 30 July 2015 10 Grievance Procedures 100% SALGBC Collective Agreement 11 Organisational Rights 100% SALGBC Collective Agreement 12 Payroll Deductions 100% SALGBC Collective Agreement
Number of days and Cost of Sick Leave (excluding injuries on duty)
Salary band Total sick
leave
Proportion of sick leave
without medical
certification
Employees using sick
leave
Total employees in
post*
*Average sick leave per
Employees
Estimated cost
Days % No. No. Days R' 000 Task Grade 0 - 2 N/A 0% Task Grade 2 - 3 680 0 % 55 77 71 % Task Grade 4 - 7 676 0 % 29 38 76 % Task Grade 8 – 13 510 0 % 43 45 95 %
Task Grade 14 - 18 128 0 % 17 17 100 %
MM and S56 3 0 % 1 4 25 % Total 1997 0 % 145 181 80 %
T4.3.2 NUMBER OF EMPLOYES ON INJURY ON DUTY
Number and Cost of Injuries on Duty
Type of injury
Injury Leave Taken
Employees using injury
leave
Average injury leave taken per employee
Average Injury Leave per employee
Total Estimated Cost
Days No. % Days R'000 Required basic medical attention only 5 2 0.03% 2 R4 466.65
Temporary total disablement 76 2 0.4% 38 R100 129.00
Permanent disablement 0 0 0 0 0 Fatal Total 81 4 0.43% 40 R104 595.65 T4.3.1
NUMBER OF EMPLOYEES SUSPENDED
Number and Period of Suspensions
Position Nature of Alleged Misconduct Date of Suspen
sion
Details of Disciplinary Action taken or Status of Case and Reasons why not Finalised
Date Finalised
SUPPLY CHAIN MANAGER General Misconduct 18/07/2015
Suspension on hold due to - Temporal Incapacity- -
EXPENDITURE MANAGER General Misconduct 18/07/2015 Deceased December
2015
58
Number and Period of Suspensions
Position Nature of Alleged Misconduct Date of Suspen
sion
Details of Disciplinary Action taken or Status of Case and Reasons why not Finalised
Date Finalised
MANAGER- SPEAKER & MAYOR’s OFFICE
General Misconduct and Financial Misconduct
08/01/2016 Hearing in progress -
BUDGET MANAGER General Misconduct 13/06/2016 Hearing in progress -
VACANCIES AND TURNOVER On termination of employees, affected department reviews the need for the post. Where there is a need, the affected department informs Corporate Services to facilitate. Corporate Services engages on recruitment processes. Senior Management positions are advertised on both national and regional newspapers. There is no succession planning in place. One of the reasons why employees resign is because there are no prospects to move beyond middle management level. The municipality is in the process of developing attraction and retention policy which will assist in attracting and retaining employees. EMPLOYEE TOTALS, TURNOVER AND VACANCIES
Employees
Description 2014/2015 2015/2016
Employees Approved Posts Employees Variance Variance
No. No. No. No. % Water 0 0 0 0 Waste Water (Sanitation) 0 0 0 0 Electricity 2 4 4 0 0% Waste Management 2 4 4 0 0% Housing 2 4 4 0 0% Roads and Waste Water (Stormwater Drainage) 15 20 18 2 10% Transport 0 0 0 0 Planning 0 0 0 0 0% Local Economic Development 1 1 0 0 100% Planning (Strategic &Regulatory) 3 12 6 6 50% Community & Social Services 62 63 56 7 11% Environmental Protection 0 0 0 0 Health 0 0 0 0 Traffic, Security and Safety 24 45 27 18 40% Sport and Recreation 0 0 0 0 0% Corporate Services 30 35 28 7 20% Budget and Treasury Office 15 29 18 11 37% Municipal Manager’s Office 10 18 14 4 22% Technical Services 25 14 8 6 22% Totals 193 249 187 61 24.5% Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in the Chapter 3 employee schedules. Employee and Approved Posts numbers are as at 30 June.
T4.1.1
59
Vacancy Rate 2015/2016
Designations *Total
Approved Posts
*Variances (Total time that vacancies exist using fulltime equivalents)
*Variances (as a
proportion of total posts in
each category) No. No. %
Municipal Manager 1 0 100% CFO 1 0 100% Other S56 Managers (excluding Finance Posts) 4 2 50% Other S56 Managers (Finance posts) 0 0 Traffic Officers 5 0 100% Middle Management: Levels 13-16 (excluding Finance Posts) 18 3 38% Middle management: Levels 13-16 (Finance posts) 5 0 100% Other employees (excluding the above) 224 61 27% Total 256 66 26% Note: *For posts which are established and funded in the approved budget or adjustments budget (where changes in employee provision have been made). Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days.
T4.1.2
Turn-over Rate
Details
Total Appointments as of
beginning of Financial Year
Terminations during the Financial Year Turn-over Rate*
No. No. 2012/13 167 14 8% 2013/14 182 9 8% 2014/15 175 9 5% 2015/16 34 11 3% * Divide the number of employees who have left the organization within a year, by total number of employees who occupied posts at the beginning of the year T4.1.3
SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND THE FINANCIAL COMPETENCY REGULATIONS There are challenges in conducting skills audit in order to determine the gaps and planning through Workplace Skills Plan. This is due to lack of participation from other departments; this is now improving as the training committee has reviewed its terms of reference. The expenditure on training exceeds the budget because of the increase in number of training needs. In line with MFMA regulations it is required that all finance employees and HOD's must possess minimum competency. Attempts have been made by the municipality as a result there employees were enrolled for CPMD. There were three employees that did not qualify to be enrolled by the institution offering the course because of the minimum entry requirements; however these employees were enrolled in other training programs. 4.2 MANAGING WORKFORCE EXPENDITURE The Municipality spends on what has been approved in both organogram and budget to avoid overspending of Workforce expenditure. The expenditure is monitored monthly and reported to Council on quarterly basis. The spending on salaries were increased in this financial year because the municipality implemented job evaluation and grading results 60% of employees were ‘underpaid’. This means therefore those payments of salaries were higher than previous years.
60
Number Of Employees Whose Salaries Were Increased Due To Their Positions Being Graded Beneficiaries Gender Total
Unskilled and defined decision making (Task grade 0- 3) Female N/A
Male N/A
Semi-skilled and discretionary decision making (Task Grade 7 – 9) Female N/A Male N/A
Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents (Task Grade 8 – 13)
Female N/A
Male N/A
Professionally qualified and experienced specialists and mid-management (Task Grade 14 – 18)
Female N/A Male N/A
MM and S 56 Female N/A
Male N/A Total 0 Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as well as in the numbers at the right hand side of the column.
T4.6.2
Occupation level Number of
employees Job evaluation
level Comment
Unskilled and defined decision making 77 (Task grade 0-3) General Assistants, Office Cleaners Semi-skilled and discretionary decision making 38 (Task Grade 4 –
7) Supervisors, Clerks, Operators, Secretaries, Drivers
Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents
45 (Task Grade 8 – 13)
Officers, Technicians and Middle Managers
Professionally qualified and experienced specialists and mid-management
17 (Task Grade 14 – 18)
Middle Managers
MM and S 56 4 Section 56 & 57 Grading system not applicable
T4.6.3
Employees not appointed to posts not approved
Department Level Date of appointment No. appointed Reason for appointment when no established post exist
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
T4.6.4
61
T4.6.
5
Fi
nanc
ial C
ompe
tenc
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Pro
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s Rep
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Desc
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To
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umbe
r of
offic
ials e
mpl
oyed
by
mun
icipa
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(Reg
ulat
ion
14(4
)(a)
and
(c))
B.
Tota
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f offi
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empl
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by m
unici
pal
entit
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(c)
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: Tot
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Cons
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ts
com
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(Reg
ulat
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and
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: Tot
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ose
perfo
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Reg
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Orig
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Ac
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Orig
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Budg
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Actu
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igin
al Bu
dget
Ac
tual
MM an
d S56
Fe
male
1 R0
.00
R0.00
R1
4 999
.00
R14 9
99.00
R6
910.0
0 R6
910.0
0 R2
1909
.00
R219
09.00
Ma
le 3
R30 5
00.00
R3
0 500
.00
R0.00
R0
.00
R0.00
R0
.00
R305
00.00
R3
0500
.00
Legis
lator
s, se
nior
offici
als
and
mana
gers
Fema
le 20
R1
5250
0.00
R152
500.0
0 R0
.00
R0.00
R2
7225
.00
R272
25.00
R1
7972
5.00
R179
725.0
0
Male
27
R122
000.0
0 R1
2200
0.00
R0.00
R0
.00
R272
25.00
R2
7225
.00
R147
225.0
0 R1
4722
5.00
Profe
ssion
als
Fema
le 18
R0
.00
R0.00
R3
6746
.56
R367
46.56
R0
.00
R0.00
R3
6746
.56
R367
46.56
Ma
le 9
R0.00
R0
.00
R216
63.30
R2
1663
.30
R0.00
R0
.00
R216
63.30
R2
1663
.30
Tech
nician
an
d as
socia
te pr
ofess
ionals
Fema
le 2
R0.00
R0
.00
R3 49
5.00
R349
5.00
R0.00
R0
.00
R349
5.00
R349
5.00
Male
3 R0
.00
R0.00
R1
3047
.30
R130
47.30
R0
.00
R0.00
R1
3047
.30
R130
47.30
Cler
ks
Fema
le 16
R2
5707
.00
R257
07.00
R4
0974
.01
R409
74.01
R0
.00
R0.00
R6
6681
.01
R666
81.01
Ma
le 2
R0.00
R0
.00
R0.00
R0
.00
R0.00
R0
.00
R0.00
R0
.00
Elem
entar
y oc
cupa
tions
Fe
male
37
R0.00
R0
.00
R531
79.06
R5
3179
.06
R0.00
R0
.00
R531
79.06
R5
3179
.06
Male
32
R0.00
R0
.00
R141
66.00
R1
4166
.00
R0.00
R0
.00
R141
66.00
R1
4166
.00
Total
170
R330
707.0
0 R3
3070
7.00
R198
269.9
3 R1
9826
9.93
R613
60.00
R6
1360
.00
R588
337.2
3 R5
8833
7.23
63
4.3 ORGANIZATIONAL PERFROMANCE REPORT Summary of Organizational performance results Overall Organizational Performance Ngqushwa Municipality Annual Performance for 2015/16 financial year is 68%, which has improved from by 15% as compared to 53% of 2014/15 financial year .All gaps identified will be addressed in 2016/17 Financial Year. 2015/2016 OVERALL PERFORMANCE
KEY PERFORMANCE AREA Q1 Q2 Q3 Q4 TOTAL AP
Institutional and Organisational Performance 61 52 68 58 60 Basic Service Delivery and Infrastructure 71 68 82 76 74 Financial Viability and Management 78 76 94 86 83 Local Economic Development 69 52 60 75 64 Good Governance and Public Participation 61 51 68 58 60 Total Overall Performance 68 60 74 71 68
0
10
20
30
40
50
60
70
80
90
100
InstitutionalDevelopment and
OrganisationalPerformance
Basic Service Deliveryand Infrastructure
Financial Viability andManagement
Local EconomicDevelopmet
Good Governanceand Public
Participation
2015-2016 NLM ANNUAL PERFORMANCE REPORT
Q1 Q2 Q3 Q4
64
CHAPTER FIVE: FINANCIAL PERFORMANCE CHAPTER 5 Component A: Statements of Financial Performance The Statement of financial performance provides an overview of the financial performance of the municipality and focuses on the financial health of the municipality. 5.1 STATEMENTS OF FINANCIAL PERFROMANCE
5.1.1 FINANCIAL PERFORMANCE
The table below indicates the summary of the financial performance for the 2015/16 financial year.
Financial Summary R’000
Description 2014/15 Current Year 2015/2016 2015/2016
Variance to Actual
Actual Original Budget
Adjusted Budget Actual Original
Budget Adjusted Budget
Financial Performance Property Rates 10 721 838 16 840 000 16 840 000 17 137 076 101.76% 101.76% Service Charges 535 518 496 001 645 001 571 929 115.31% 88.67% Investment Revenue 820 414 1 000 000 2 000 000 1 255 184 125.52% 62.76% Transfer recognized – operational 78 900 006 86 892 563 86 659 169 86 659 000 99.73% 100% Other own revenue 5 672 334 33 788 209 22 098 870.44 8 577 480 25.38% 38.81% Total Revenue (excluding capital transfer and contribution) 96 650 110 139 016 882 128 243 040.44 114 200 597 82.15% 89.05%
Employee Costs 43 430 249 50 308 701.07 48 991 053 47 796 803 95.00% 97.56% Remuneration & Councillors 7 223 883 7 309 859.70 7 638 669 7 758 337 106.14% 101.57% Depreciation & asset impairment 20 187 718 29 914 342.16 9 432 297 13 334 238 44.57% 141.37% Finance Charges 1 682 326 - 10 800 000 3 675 138 - 34.03%- Debt Impairment 1 887 912 - 9 000 000 1 963 245 - 21.81%- Repairs and Maintenance 1 325 290 - 9 025 181 3 811 007- - 42.23%- Other expenditures 30 351 742 68 793 580.32 33 356 052 41 846 126 60.83% 125.45% Total Expenditure 106 089 120 156 326 483.25 128 243 252 120 502 939 77.08% 93.96% Surplus/(Deficit) -9 439 010 -17 309 600.76 -212 -6 302 342 -36.41% - -Transfers recognized – Capital 27 454 055 23 310 000 30 649 590 23 484 000 100.76% 76.63% Loss on sale of assets - - - -224 833 - - Surplus/(Deficit) after capital transfers & contributions 18 015 045
Share of surplus / (deficit) of associate 191 000 - - - - - Surplus / (Deficit) for the year 18 206 044 6 000 000 30 649 378 16 956 825 282.61% 55.33% Capital expenditure & Funds Sources Capital Expenditure Capital Transfers recognized 26 316 305 23 309 801 22 309 801 22 309 801 95.71% 100% Public contributions & donations - - - - - - Borrowing - - - - - - Internally generated funds 350 861 8 651 160.20 8 339 787.20 9 841 898 113.76% 118.01% Total Sourced of Capital Funds 26 667 166 31 960 961.20 30 649 588.20 32 151 699 100.60% 104.90% Financial Position
65
Financial Summary R’000
Description 2014/15 Current Year 2015/2016 2015/2016
Variance to Actual
Actual Original Budget
Adjusted Budget Actual Original
Budget Adjusted Budget
Total Current Assets 21 218 581 19 621 022.75 33 454.448.07 34 392 767 175.29% 102.80% Total non-current assets 185 587 628 280 690 147 228 213 382 201 933 007 71.94% 88.48% Total current liabilities -27 077 061 -7 589 789.93 -40 765 146.93 -32 812 768 432.33% 80.49% Total non-current liabilities -5 666 168 - - -9 868 492 - - Community wealth / Equity 174 062 980 211 006 986.80 175 881 292 193 644 514 79.03% 94.81% Cash Flow Net Cash from (used) operation 19 587 508 43 045 740.64 30 968 405.27 28 769 614 66.83% 92.90% Net cash from (used) investing -26 691 478 -31 660 961 -30 376 588 -26 922 619 -85.03% -88.63% Net cash from (used) financing -1 350 747 - - -809 8019 - - Cash/Cash equivalents at the year end 163 631 6 884 779.64 755 4887.07 1 200 807 17.44% 158.95% Cash backing /surplus reconciliation Cash and investments available - -4 500 000 755 448.07 - Application of cash and investments - 980 000 25 840 492 - Balance – Surplus (Shortfall) - -5 480 000 -25 085 043.93 - Asset Management Asset register summary (WDV) 205 416 458 239 679 337 238 453 504 215 585 287 89.95% 90.41% Depreciation & Asset impairment 19 975 737 15 914 342.16 9 432 297.16 13 652 283 85.79% 144.74% Renewal of Existing Assets - - - - - - Repairs and Maintenance 1 325 290 9 004 831.73 9 025 181.73 3 811 007 42.32% 42.23% Free Services Cost of Free Basic Services provided 1 654 551.13 1 527 000 2 661 172 1 887 522 70.93% 70.93% Revenue Cost of Free Services provided 1 654 551.13 1 572 000 2 661 172 1 887 522 70.93% 70.93% Households below Minimum Service Level Water: - - - - - - Sanitation / Sewerage: - - - - - - Energy: 3 788 3 787 3 787 3 787 100% 100% Refuse: 1 993 1 993 1 933 1 993 100% 100%
66
5.2 GRANTS 5.2.1 GRANT PERFORMANCE The Municipality had a total amount of R97 833 200 for Operational Expenditure available that was received in the form of grants from the National and Provincial Governments during the 2015/16 financial year. The performance in the spending of these grants is summarized as follows: The table below indicates the Grant performance for the 2015/16 financial year:
Grant Performance R’000
Description 2014/15 Current Year 2015/2016 2015/2016 Variance to Actual
Actual Original Budget
Adjusted Budget Actual Original
Budget Adjusted Budget
Operating transfers and grants National Government Equitable Share 71 805 000 82 854 000 82 854 000 82 854 000 100% 100% FMG 1 800 000 1 875 000 1 875 000 1 875 000 100% 100% MIG (PMU – Operating Expenses_ 1 137 750 11 174 200 11 174 200 11 174 200 100% 100% MSIG 934 000 930 000 930 000 930 000 100% 100% EPWP 1 000 000 1 000 000 1 000 000 1 000 000 100% 100% 76 676 750 97 833 200 97 833 200 97 833 200 100% 100% Provincial Government Health subsidy - - - - - - Ambulance subsidy - - - - - - Sports and Recreation - - - - - - Roads maintenance - - - - District Municipality Total operation transfers and grants revenue 76 676 750 97 833 200 97 833 200 97 833 200 100% 100%
5.2.2 PERFORMANCE OF SERVICE PROVIDERS Annual Cumulative Report on the Performance of the Service Providers in the 2015/16 Financial Year The legislated report on the performance of service providers (awarded bids) in terms of section 46(1) (a) of the Municipal systems Act (No.32 of 2000) is encapsulated in the table below. Detailed project monitoring reports in relation to each project are available for inspection.
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures information and communication technology (I.C.T)
First Technology (Pty) Ltd.
Ms B Nodada
Office of the Municipal Manager
R 198,360
30/06/2015
15 Months
Ongoing
N/A
67
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures support and maintenance Insurance for Assets and Liabilities cover for NLM for the period of 3 years
Lateral Unison Insurance Brokers
Mr V Makedama
Budget & Treasury Office
R 238,240
30/6/2015
36 Months
Ongoing
N/A
VAT Services
Maximum Profit Recovery
Ms B Matu
Budget & Treasury Office
R1,220,957.46
5/7/2015
24 Months
Ongoing
N/A
Supply and delivery of Cleaning material
Kabawo Initiatives CC
Ms E Maytham
Corporate Services
R 55,000
3/8/2015
Once off
Complete
N/A
Supply and delivery of Stationery
Tiaglo (Pty) Ltd
Ms E Maytham
Corporate Services
R 121,000
3/8/2015
Once off
Complete
N/A
Financial &Performance Strategy plan and Implementation to improve audit outcometo achieve clean administration
Camelsa Consulting Group
Mr V Makedama
Budget & Treasury Office
R2,200,000
11/8/2015
24 Months
Ongoing
N/A
Supply & Delivery of Material to repair Peddie Extention Stadium and Hamburg Beach front
Gamalinye Trading
Mr R Mkontwana
Community Services
R 68,400
18/8/2015
Once off
Complete
N/A
68
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures Supply & Delivery of portable equipment for Electrical Section
Tiaglo (Pty) Ltd
Mr B Mangesi
Technical Services
R 42,591.28
18/8/2015
Once off
Complete
N/A
Repairs & Maintenance of 3 Highmast Lights
Ndlambe Investment
Mr B Mangesi
Technical Services
R 198,075
18/8/2015
2 Months
Complete
N/A
Repairs and maintenance of 1 Glen more high mast light
Ndlambe Investment
Mr B Mangesi
Technical Services
R 145,787
18/8/2015
2 Months
Ongoing
N/A
Supply and repairs of material for repairs of high mast lights
Zitime Trading
Mr B Mangesi
Technical Services
R 172,950
18/8/2015
Once off
Complete
N/A
Construction of Nier community hall
Tyume Blocks
Mr T Malingatshoni
Technical Services
R 1,320,426.42
4/9/2015
5 Months
Complete
N/A
Construction of Ndlambe community hall
Mgunculu Trading
Mr T Malingatshoni
Technical Services
R 1,278,195.93
4/9/2015
4 Months
Complete
N/A
Supply and Delivery of 19 Laptops
Lymmyl Technologies
Ms B Nodada
Office of the Municipal Manager
R192,970
7/9/2015
Once off
Complete
N/A
Professional services (design & supervision) for regravelling of Mgwalana Internal roads
THM Engineers
Ms N Mbekela
Technical Services
R 225,460.08
22/9/2015
10 Months
Complete
N/A
69
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures Supply and Delivery of Furniture for Community Halls
Budget Office Furniture
Mr T Malingatshoni
Technical Services
R 173,735.43
16/10/2015
Once off
Complete
N/A
Professional services (design & supervision) for regravelling of Ngxakaxha access roads
Saigent Consulting Engineers
Ms N Mbekela
Technical Services
R 374,460
11/9/2015
10 Months
Complete
N/A
Professional services (design & supervision) for regravelling of Dube access roads
Gilgal Development Consulting Engineering & Project Managers
Ms N Mbekela
Technical Services
R 219,968.70
11/9/2015
10 Months
Complete
N/A
Professional services (design & supervision) for regravelling of Tuku access roads
Beacon Consulting Engineers
Ms N Mbekela Technical Services
Technical Services
R 320,372.58
11/9/2015
13 Months
Ongoing
N/A
Professional services (design & supervision) for regravelling of Glenmore Sports field
Mbesi Consulting
Ms N Mbekela
Technical Services
R 211,293.30
11/9/2015
12 Months
Ongoing
N/A
Supply and Delivery of
Compucare
Ms B Nodada
Office of the
R 23,410.21
8/11/2015
2 Months
Complete
N/A
70
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures Toners and Catridges
Municipal Manager
Proposal for the review of Annual Financial Statements
OHS Business Advisors
Mr V Makedama
Budget & Treasury Office
R 48,108
8/11/2015
Once off
Ongoing
N/A
Conducting PMS Training
Unakho Training Consultants
Mr M Cekiso
Office of the Municipal Manager
R195,250
13/11/2015
Once off
Complete
N/A
Services for Fencing of Peddie Cemetery
Ariyoki IT Business Solutions and Trading CC
Mr T Malingatshoni
Technical Services
R 180,370
18/11/2015
4 Months
Complete
N/A
Supply & Delivery of Poultry and Piggery Feed
Tiaglo (Pty)Ltd
Ms E Maytham
Corporate Services
R 68,840
30/11/2015
Once off
Complete
N/A
Supply & Delivery of Cattle Loading Ramp TLR (Hi) speed x 2
Ariyoki IT Business Solutions and Trading CC
Mr T Malingatshoni
Technical Services
R 98,500
30/11/2015
4 Months
Complete
N/A
Conducting MPAC Training
Unakho Training Consultants
Ms N Ncapayi
Office of the Municipal Manager
R 198,580
2/12/2015
Once off
Complete
N/A
Conducting SCM Training for Bid Committees
Unakho Training Consultants
Ms B Matu
Budget & Treasury Office
R 198,100
2/12/12015
Once off
Complete
N/A
Supply & Delivery of Luggage Trailer x1
Good Aims Trading
Ms E Maytham
Corporate Services
R 90,854.01
14/12/2015
Once off
Complete
N/A
71
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures Construction of Dube Scheme Access Road
CLP Trade T/A Envirotech
Ms N Mbekela
Technical Services
R 1,492,939.6
2
15/1/2016
4 Months
Complete
N/A
Constraction & Rehabilitation of Glemore Sportsfield
Mgunculu Trading
Mr T Malingatshoni
Technical Services
R 2,437,131.6
15/1/2016
5 Months
Complete
N/A
Fleet Management Monitoring & Vehicle Recovery System
Digicore Management Services T/A CTRAC Mzansi
Ms E Maytham
Corporate Services
R 301,126
27/1/2016
Once off
Complete
N/A
ICT Network Monitoring & Inventory Software
Sybaweb Eastern Cape(Pty) Ltd
Ms B Nodada
Office of the Municipal Manager
R 177,500
27/1/2016
12 Months
Ongoing
N/A
Supply and Installation of 14 Speedhumps
Konrad De Waal- Dura Bump
Mr T Malingatshoni
Technical Services
R 198,560
29/1/2016
Once off
Complete
N/A
Construction of Hamburg Sportsfield
MVI Construction
Mr T Malingatshoni
Technical Services
R 2,280,031.3
0
1/3/2016 6 Months Ongoing
N/A
Supply and Delivery of Double Drum Vibratory Roller
Ndlambe Investment
Mr T Malingatshoni
Technical Services
R176,375
2/4/2016
Once off
Complete
N/A
Supply and Delivery of 10 Laptops PCs
Ndaselele General Trading
Ms B Nodada
Office of the Municipal Manager
R 175,000
26/5/2016
Once off
Complete
N/A
Supply and Delivery of 14 Seater Bus, 2 x
Bange Trading Enterpreneurs CC
Ms E Maytham
Corporate Services
R 1 ,306 ,000
17/6/2016 1 Month Ongoing
N/A
72
NGQUSHWA LOCAL MUNICIPALITY REGISTER OF TENDERS AWARDED DURING 2015/16
Project name
Service provider
Project manager
Dept. / contact person
Amount R
Award/ Appointme
nt date
Targeted Completion date
Status (In-progress/Completed
/Not completed
Comments/Reasons & Corrective
Measures New Marked Diesel Double Cab with Secure lid (4 x 2)
Asset Register Review and Completioon for 2015/16, 100% Compliance with GRAPS Standards
Arms Audit & Risk Management Solutions (Pty) Ltd
Mr V Makedama
Budget & Treasury Office
R 765,601
30/6/2016 6 Months Ongoing
N/A
73
5.3 ASSET MANAGEMENT Asset management is practiced within the organization based on a comprehensive asset management policy. The Asset Management Policy provides direction for the management, accounting and control of Property, Plant & Equipment (Assets) owned or controlled by the municipality to ensure the following:
Implementation of the approved Asset Management Policy as required in terms of section 63 of the Municipal Finance Management Act (MFMA). Verify assets in possession of the Council annually, during the course of the financial year. Keep a complete and balanced record of all assets in possession of the Council. Report in writing all asset losses, where applicable, to Council. Those assets are valued and accounted for in accordance with a statement of GRAP. Those assets are properly maintained and safeguarded. The roles of the following are clearly defined within the asset management policy:
Municipal Manager Chief Finance Officer Asset control section Manager budget section Manager Expenditure section Procurement section All other departments
Asset Management is performed in line with the Asset Management Policy as described above. The control and safeguarding of assets remain the responsibility of each department. Each department budgets for the necessary maintenance of the assets under their control in order for the assets to achieve their economic life spans. 5.4 REPAIRS AND MAINTENANCE
Repair and Maintenance Expenditure 2015/16 R' 000
Original Budget
Adjustment Budget Actual Budget
variance Repairs and Maintenance Expenditure 9 004 832 9 025 181 3 811 007 5 214 174 T5.3.4
74
5.5 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS 5.5.1 LIQUIDITY RATIO
RATIO BASIS OF CALCULATIONS
2013/14 2014/15 2015/16 CURRENT YEAR AUDITED
Liquidity Ratio Current Assets/current liabilities
0.0 0.8 1.0
2013/2014 2014/2015Current Year2015/2016
Audited
Liquidity Current Ratio
Liquidity Current Ratio 0.0% 0.8% 1.0%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
Perc
enta
ges
Liquidity Current Ratio
75
5.5.2 CREDITORS MANAGEMENT
Ratio Basis of calculation 12/13 13/14 14/15 current year audited 2015/16
Creditors System Efficiency
% of Creditors Paid Within Terms (within MFMA' s 65(e))
0.0% 0.0% 0.0% 93%
2012/2013 2013/2014 2014/2015
CurrentYear
2015/2016Audited
Creditors System Efficiency
Creditors System Efficiency 0.0% 0.0% 0.0% 93%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
100.0%
Perc
enta
ges
Creditors System Efficiency
76
5.5.3 BORROWING MANAGEMENT
Ratio Basis of calculation 12/13 13/14 14/15 2015/16 current year audited
Capital Charges to Operating Expenditure
Interest & Principal Paid /Operating Expenditure
0.0% 7.4% 1.6% 3.0%
2012/2013 2013/2014 2014/2015Current Year2015/2016
Audited
Capital Charges to Operating Expenditure
Capital Charges to OperatingExpenditure
0.0% 7.4% 1.6% 3.0%
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%
Perc
enta
ges
Capital Charges to Operating Expenditure
77
5.5.4 EMPLOYEE COSTS
Ratio Basis of calculation 12/13 13/14 14/15 2015/16 current year audited
Employee costs
Employee costs/(Total Revenue - capital revenue)
40.3% 56.3% 44.9% 41.9%
2013/2014 2014/2015Current Year
2015/2016 Audited
Employee Costs
Employee Costs 56.3% 44.9% 41.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Perc
enta
ges
Employee Costs
78
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET 5.6 CAPITAL EXPENDITURE
% of Expenditure Budget Original Budget Adjustment
Budget Audited Full Year
Total Capital Expenditure 122.14% 31 960 961 30 649 588 37 436 695 Operating Expenditure 93.93% 124 365 522 128 243 253 120 502 939 Total expenditure 99 156 326 483 158 892 841 157 939 634
5.7 SOURCES OF FINANCE
5.7.1 CAPITAL EXPENDITURE BY FUNDING SOURCE
The table below indicates the capital expenditure by funding source for the 2015/16 financial year:
Capital Expenditure – Funding Sources 2014/2015 – 2015/2016 R’000
Description 2014/15 Current Year 2015/2016 2015/2016 Variance to Actual
Actual Original Budget
Adjusted Budget
Actual Original Budget
Adjustments Budget
Source of Financed Grants & subsidies 26 316 305 23 309 801 22 309 801 22 309 801 95.71% 100% Other 350 861 8 651 160.20 8 339 787.20 15 126 894 174.85% 181.38% Total 26 667 166 31 960 961.20 30 649 588.20 37 436 695 117.13% 122.14% Percentage of Finance External Loans - - - - - - Public Contr & Donations - - - - - - Grants & Subsidies 98.68% 72.93% 72.79% 59.59% 81.71% 81.87% Other 1.32% 27.07% 27.21% 40.41% 149.28% 148.50%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
Capital Expenditure Operating Expenditure
Capital Expenditure 2015/16
% of Expenditure Budget
79
Capital Expenditure – Funding Sources 2014/2015 – 2015/2016 R’000
Description 2014/15 Current Year 2015/2016 2015/2016 Variance to Actual
Actual Original Budget
Adjusted Budget
Actual Original Budget
Adjustments Budget
Capital Expenditure Environment Waste - 1 991 200 1 792 080 - - - Electricity - 500 000 800 000 279 968 55.99% 35% Planning - 1 580 886.88 450 599.88 90 032 5.70% 19.98% Roads & Storm Water 26 041 138 22 309 801 22 309 801 34 595 018 14.18% 155.07% Community and Social Services 24 687 1 410 040.80 273 278.80 200 000 64.86% 73.19% Corporate Services 601 341 4 017 072.52 5 023 828.52 2 270 677 56.3% 45.20% Other - 151 960 - Total 26 667 166 31 960 931.20 30 649 588.20 37 436 695 117.13% 122.14% Percentage of expenditure Environmental Waste - 6..23% 5.85% - - - Electricity - 1.56% 2.61% 0.75% 47.80% 28.67% Planning - 4.95% 1.47% 0.24% 4.87% 16.37% Roads & Storm Water 97.65% 69.80% 72.79% 92.41% 12.11% 126.96% Community and Social Services 0.09% 4.41% 0.89% 0.53% 55.37% 59.92% Corporate Services 2.25% 12.57% 16.39% 6.07% 48.07% 37.01% Other - 0.48% - - - -
80
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
5.8 CASH FLOW
Cash Flow Outcomes Description 2014/2015 2015/2016
Actual Original Budget
Adjusted Budget
Actual
CASH FLOW FROM OPERATION ACTIVITIES Receipts 112 634 587 137 496 921.09 140 779 360.88 123 066 940 Ratepayers and other 11 031 167 17 294 358.09 24 566 797.88 11 468 756 Government – Operation 73 328 951 86 892 563 86 902 563 86 859 000 Government – Capital 27 454 055 23 310 000 23 310 000 23 484 000 Interest 820 414 10 000 000 6 000 000 1 255 184 Dividends - - - - Payments -93 050 425 -94 451 180.45 -109 810 955.61 -96 953 366 Suppliers and employees -91 549 099 -94 451 180.45 -109 810 955.61 -93 278 228 Finance charges -1 501 326 - - -3 675 138 Transfers and Grants NET CASH FROM / (USED) OPERATING ACTIVITIES 19 584 162 43 045 740.64 30 968 405.27 26 113 574 CASH FLOW FROM INVESTING ACTIVITIES Receipts Proceeds on disposal of PPE Proceeds from Insurance claim for loss of PPE
- 43 779
300 000 -
273000 -
316 425 30 396
Decrease (increase) in non-current debtors - - - - Decrease (increase) other non-current receivables - - - - Decrease (increase) in non-current investments - - - - Payments - - - - Capital Assets Purchase of Intangible Assets
-26 667 166 -64 745
-31 960 961 -
-30 649 588.20 -
-24 528 277 -
NET CASH FROM/(USED) INVESTING ACTIVITIES -26 688 132 -31 660 961 -30 376 588.20 -24 181 456 CASH FLOW FROM FINANCING ACTIVITIES Receipts - - - - Short term loans - - - - Borrowing long term/refinancing - - - - Increase (decrease) in consumer deposits - - - - Payments - - - - Repayment of borrowing -1 350 747 - - -894 942 NET CASH FROM / (USED) FINANCING ACTIVITIES -1 350 747 - - -894 942 NET INCREASE / (DECREASE) IN CASH FIELD -8 454 717 1 037 176 Cash/Cash equivalents at the year begin 8 618 348 11 384 779.64 591 817.07 163 631 Cash/Cash equivalents at the year end 163 631 6 884 779.64 755 448.07 1 200 807
81
CHAPTER SIX: AUDITOR GENERAL AUDIT FINDINGS COMPONENT A: AUDITOR-GENERAL OPINION
Auditor General Report on Financial Performance 2015/16 Audit Report status Qualification
82
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 GENERAL INFORMATION
LEGAL FORM OF ENTITY
Local Municipality
NATURE OF BUSINESS AND PRINCIPAL ACTIVITIES
Ngqushwa is a Local Municipality rendering basic services such as Refuse Collection, Infrastructure Development, Economic Development Community Services, etc.
EXECUTIVE COMMITTEE Mr S.E. Ndwayana (Mayor) Mr Z. Jowela (Speaker) Ms N.C. Gxasheka (Acting Chief Whip) Ms L Cuka (Member of Executive Committee) Mr M. Faltein (Member of Executive Committee) Mr T. Siwisa (Member of Executive Committee) Ms N. Tele (Member of Executive Committee)
COUNCILLORS Mr M. Boqwana Ms N. Coto Ms T.N. Dyani Ms T.G. Dyibhishe Mr S. Jali Mr T. Magazi Ms N.N.C. Maphekula Mr M.C. Mapuma Ms N. Mntanga Mr A. Mtshakazi Ms N. Ndabazonke Mr A. Ndanda Mr M.G. Ntonjane Mr M.B. Sethuntsa Ms N.A. Seysman Ms P. Sithole Mr T. Tusani Mr Y.G. Yolelo
TRADITIONAL LEADERS Mr B Matomela (Chief) Mr N. Mhlauli (Prince) Ms N.V. Njokweni (Princess) Mr G.L Zitshu (Prince)
GRADING OF LOCAL AUTHORITY 3 CHIEF FINANCE OFFICER (CFO) Mr V.C. Makedama
ACCOUNTING OFFICER Mr T.T. Mnyimba REGISTERED OFFICE Corner of N2 and R345 Road
Peddie 5640
BUSINESS ADDRESS Corner of N2 and R345 Road Peddie 5640
85
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 GENERAL INFORMATION
POSTAL ADDRESS P.O Box 539 Pedd.2. 5640
BANKERS First National Bank AUDITORS Auditor•General South Africa CONTACT DETAILS Email [email protected]
Telephone 040 673 3095 www ngqushwamun.gov.za
86
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 INDEX
ABBREVIATIONS ....................................................................................................................................................................................... 88
ACCOUNTING OFFICER’S RESPONSIBILITIES AND APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS ............................. 89
STATEMENT OF FINANCIAL POSITON AS AT 30 JUNE 2016 ............................................................................................................... 90
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016 .................................................................... 91
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2016 ....................................................................... 92
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 ..................................................................................................... 93
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ............................................................................................. 94
ACCOUNTING POLICIES .......................................................................................................................................................................... 98
NOTES TO THE ANNUAL FINANCIAL STATEMENTS .......................................................................................................................... 113
ABBREVIATIONS ANC African National Congress ASS Accounting Standards Board BTO Budget and Treasury Office CETA Construction Education and Training Authority CRAP Standards of Generally Recognised Accounting Practice IEC Independent Electoral Commission MPAC Municipal Public Accounts Committee PAYE Pay As You Earn PR Public Relations RDP Reconstruction and Development Programme SALGA South African Local Government Association SARS South African Revenue Services SDL Skills Development Levy SPU Special Programs Unit UIF Unemployment Insurance Fund VAT Value Added Tax
87
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING OFFICER’S RESPONSIBILITIES AND APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS The accounting officer is required by the Municipal Finance Management Act No. 56 of 2003 to maintain adequate accounting records and is responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is the responsibility of the accounting officer to ensure that the annual financial statements fairly present the state of affairs of the municipality as at the financial year ended 30 June 2016 and the results of its operations and cash flows for the period then ended The external auditors are engaged to express an independent opinion on the annual financial statements and were given unrestricted access to all financial records and related data, The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board (ASB). The annual financial statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates The accounting officer acknowledges that he is ultimately responsible for the system of internal financial control established by the municipality and places considerable importance on maintaining a strong control environment. To enable the accounting officer to meet these responsibilities, the accounting officer sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the municipality and all employees are required to maintain the highest ethical standards in ensuring the municipality's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the municipality is on identifying, assessing, communicating, managing and monitoring all known forms of risk across the municipality. While operating risk cannot be fully eliminated, the municipality endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The accounting officer is of the opinion, that based on the information and explanations given by management, the system of internal control provides reasonable assurance that the financial records may be relied upon for the preparation of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatements or deficiencies. The accounting officer has reviewed the municipality's cash flow forecast for the 12 months to 30 June 2017 and in light of this review and the current financial position, he is satisfied that the municipality has or has access to adequate resources to continue in operational existence for the foreseeable future. The external auditors are responsible for independently auditing and reporting on the municipality’s annual financial statements. The annual financial statements set out on pages 5 to 62 which have been prepared on the going concern basis, were agreed to by the Council on 13 December 2016 and were signed on its behalf by: ________________________________ T.T. Mnyimba Accounting Officer ________________________________ Date
annual financial statements setCouncilllllllll oooooonoooooo 13 Decembbbbbbererrrrrrrrr 222222222222222220101010101010101010101010010116 a
________________ _______________________ ___________
T.T. MMMMMMMMMMMMMMMMMMnynnnnnnnnn imba AcAcAcAcAcAcAcAcAcAcAcAcAcAAAA counting Officer
88
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF FINANCIAL POSITON AS AT 30 JUNE 2016
Notes
2016 R
2015Restated"
RASSETS CURRENT ASSETS
Inventories 3 268,800 268,800Operating Lease Asset 4 67,602 93,650VAT Receivable 5 3,966,173 4,458,535Receivables from Exchange Transactions 6 7.827,999 2,711,917Receivables from Non-Exchange Transactions 7 21,061,386 13,522,048Cash and Cash Equivalents 8 1.200,807 163,631 34,392,767 21,218,581NON-CURRENT ASSETS Intangible Assets 9 565,871 965,517Investment Property 10 37,951,900 37,951,900Property, Plant and Equipment 11 163,415,233 146 670,208Heritage Assets 12 3 3 201,933,007 185,587,628TOTAL ASSETS 236,325,774 206,806,209LIABILITIES CURRENT LIABILITIES Finance Lease Obligation 13 4,761,551 4,121,498Payables from Exchange Transactions 14 26,200,505 20,720,188Payables from Non-Exchange Transactions 16 1,850,712 2,235,375 32,812,768 27,077,061NON-CURRENT LIABILITIES Finance Lease Obligation 13 7,020,261 3,175,357Provisions 17 2,848,231 2,490,811 9,868,492 5,666,168TOTAL LIABILITIES 42,681,260 32,743,229NET ASSETS 193,644,514 174,062,980Accumulated Surplus 18 193,644,514 174,062,980
89
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2016
Notes
2016 R
2015Restated*
RREVENUE Revenue from Exchange Transactions
Service Charges 19 571,929 535,518Licences and Permits 20 1,638,850 1,675,561Rental of Facilities and Equipment 21 192,928 225,074Agency Services 315,731 334,015Other Revenue 22 269,155 208,518Interest Earned - Outstanding Debtors 23 3,277,506 2,436,854Interest Revenue 24 1,255,184 820,414Total Revenue from Exchange Transactions 7,521,283 6,235,954 Revenue from Non-Exchange Transactions
Property Rates 25 17,137,076 10,721,837Government Grants 26 110,343,000 106,354,061Fines and Penalties 623,092 732,949Other Transfer Revenue 27 2,060,146 59,363Total Revenue from Non-Exchange Transactions 130,163,314 117,868,210Total Revenue 137,684,597 124,104,164 EXPENDITURE
Employee Related Costs 28 47,796,803 43,430,249Remuneration of Councillors 29 7,758,337 7,223,883Depreciation and Amortisation 30 13,334,238 19,975,737Impairment of Assets 31 318,045 211,981Finance Costs 32 3,675,138 1,682,326Debt Impairment 33 1,963,245 1,887,912Repairs and Maintenance 34 3,811,007 1,325,290Other Expenditure 35 41,846,126 30,351,742Total Expenditure 120,502,939 106,089,120Operating Surplus 17,181,658 18,015,044Loss on Disposal of Assets (224,833) -Remeasurement of Long Service Bonus - 191,000 (224,833) 191,000Surplus for the year 16,956,825 18,206,044
90
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2016
Accumulated
Surplus R
Total net assets
R Balance as at 30 June 2014 157,513,974 157,513,974 Prior Year Adjustments (1,657,038) (1,657,038) Restated Balance at 01 July 2014 155,856,936 155,856,936 Restated Surplus For The Year 18,206,044 18,206,044 Total changes 16,206,044 18,206,044 Restated Balance at 01 July 2015 174,062,980 174,062,980 Changes in Net Assets Prior Year Adjustment Recognised Directly in Equity 2,624,709 2,624,709 Other Adjustments - - Surplus For The Year 16,956,825 16,956,825 16,956,825 16,956,825 Total Changes for the Year 19,581,534 19,581,534 Balance at 30 June 2016 193,644,514 193,644,514 Refer to Note 39 (Prior Period Errors)
91
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2016
Notes
2016 R
2015 Restated*
R CASH FLOWS FROM OPERATING ACTIVITIES RECEIPTS
Billed Services 6,592,178 8,064,540 Government Grants 110,343,000 100,783,006 Interest Revenue 1,255,184 820,414 Other Services 4,876,578 2,966,627 123,066,940 112,634,587 PAYMENTS Payments to Employees (57,863,119) (51,795,267) Payments to Suppliers (35,415,109) (39,753,832) Finance Costs 32 (3,675,138) (1,501,326) (96,953,366) (93,050,425) Net cash flows from operating activities 36 26,113,574 19,584,162 CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property, Plant and Equipment 11 (24,528,277) (26,667,166)
Proceeds from Sale of Property, Plant and Equipment 11 316,425 - Proceeds from insurance Claim for Loss of Property, Plant and Equipment 22 30,396 43,779 Purchase of Intangible Assets 9 (64,745) Net cash flows from investing activities (24,151,456) (26,688,132) CASH FLOWS FROM FINANCING ACTIVITIES
Finance Lease Repayments 13 (894,942) (1,350,747)
Net increase/(decrease) in Cash and Cash Equivalents
1,037,176 (8,454,717)
Cash and Cash Equivalents at the beginning of the year 163,631 8,618,348 Cash and Cash Equivalents at the end of the year 8 1,200,807 163,631
92
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS Budget on Accrual Basis Approved
Budget
R
Adjustments
R
Final Budget
R
Actual amounts on comparable
basis R
Difference between final budget and
actual R
Percentage Variance and
Comment
Statement of Financial Performance for the Year Ended 30 June 2016 REVENUE REVENUE FROM EXCHANGE TRANSACTIONS
Service Charges 419.000 226,000 645,000 571,929 (73,071) -11% See Note 1
Licences and Permits 1,708.000 - 1,708,000 1.638,850 (69,150) -4%
Rental of Facilities and 20.000 230,000 250,000 192,928 (57,072) -23% See Note 2
Equipment
Agency Services 252,000 - 252,000 315,731 63,731 +25% See Note 3
Other Revenue 11,700,000 (2,819,000} 8,881,000 269,155 (8,611,845) -97% See Note 4
Interest Earned - Outstanding 18,000,000 (8.000,000) 10,000,000 3,277,506 (6,722,494) -67% See Note 5
Debtors
Interest Revenue 1,000,000 1,000,000 2,000,000 1,255,184 (744,816) -37% See Note 6
Total revenue from exchange transactions
33,099,000 (9,363,000) 23,736,000 7,521,283 (16,214,717)
REVENUE FROM NON- EXCHANGE TRANSACTIONS
Property Rates 16,840,000 - 16,840,000 17,137,076 297,076 +2%
Government Grants 110203,000 7,107.000 117,310,000 1 1 0 .34 3 ,0 00 (6,967,000) -6%
Fines and Penalties 1,509,000 (1,100,000) 409,000 623,092 214,092 +52% See Note 7
Other Transfer Revenue - - - 2,060,146 2,060,146 +100% See Note 4
Total Revenue from Non- 128,552,000 6,007,000 134,559,000 130,163,314 (4,395,686)
Exchange Transactions
Total Revenue 161,651,000 (3,356,000) 158,295,000 137,684,597 (20,610,403)
EXPENDITURE
Employee Related Costs (50,309,000) 1,318,000 (48,991,000) (47.796,803) 1,194,197 +2%
Remuneration of Councillors (7,310,000) (329,000) (7,639,000) (7 758,337) (119,337) -2%
Depreciation and Amortisation (15.914.000) 6,482,000 (9,432,000) (13.334,238) (3,902,238) -41% See Note 8
Impairment of Assets - - - (318,045) (318,045) -100% See Note 9
Finance Costs - - - (3,675,138) (3,675,138) -100% See Note 9
Debt Impairment (14,000,000) 5,000,000 (9,000,000) (1,963,245) 7,036,755 +78% See Note 10
Repa.rs and Maintenance (9,005,000) (20,000) (9,025,000) (3,811,007) 5,213,993 +58% See Nate 11
Other Expenditure (59,789,000) 15,633,000 (44,156,000) (41,846,126) 2,309,874 +5%
Total expenditure (156,327,000) 28,084,000 (128,243,000) (120,502,939) 7,740,061
Operating Surplus 5,324,000 24,728,000 30,052,000 17,181,658 (12,870,342)
Loss on Disposal of Assets 600,000 - 600,000 (224,833) (824,833) -137% See Note 12
Surplus for the year 5,924,000 24,728,000 30,652,000 16,956,825 (13,695,175)
93
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
Budget on Accrual Basis Approved
Budget
R
Adjustments
R
Final Budget
R
Actual amounts on comparable
basis R
Difference between final budget and
actual R
Percentage Variance and
Comment
ASSETS CURRENT ASSETS
Inventories - - - 268,800 268,800+100% See Note 9
Operating Lease Asset - - - 67,602 57,602 +100% See Note 9
VAT Receivable - - - 3 966,173 3,966,173 +100% See Note 9
Receivables from Non-Exchange - - - 7.827,999 7,827,999 +100% See Note 13
Transactions - - - Receivables from Non-Exchange 24,121.000 8 578.000 32,699,000 21.061,386 (11,637,614) -36% See Note 13
Transactions Cash and Cash Equivalents (4,500,000) 5,255,000 755,000 1,200,807 445,807-59% See Note 14
19,621,000 13,833,000 33,454,000 34,392,767 9313,767 NON-CURRENT ASSETS
Intangible Assets 1,969.000 (161.000) 1,808,000 555,871 (1,242,129) -69% See Note 15
Investment Property 39,042,000 (1.065.000) 37,977,000 37 951,900 (25,100) 0%
Property, Plant and Equipment 239,679.000 (51 251.000) 188,428,000 163,415,233 (25,012,767) -13% See Note 16
Heritage Assets - - - 3 3 -100% See Note 9
280,690,000 (52,477,000) 228,213,000 201,933,007 (26,279,993) TOTAL ASSETS 300,311,000 (38,644,000) 261,667,000 236,325,774 (25,341,226) LIABILITIES
CURRENT LIABILITIES
Finance Lease Obligation - - - 4,761,551 4,761,551 -100% See Note 9
Payables from Exchange 5 000.000 30,000,000 35,000,000 26.200,505 (8,799,495) +23% See Note 17
Transactions Payables from Non-Exchange - - - 1.850,712 1,850,712 -100% See Note 9
Transactions 5,000,000 30,000,000 35,000,000 32,812,768 (2,187,232) NON-CURRENT LIABILITIES Finance Lease Obligation - - - 7.020,261 7,020,261 -100% See Note 9
Provisions 2,590.000 3,175,000 5,765,000 2,848,231 (2,916,769) -51% See Note 18
2,590,000 3,175,000 5,765,000 9,868,492 4,103,492 TOTAL LIABILITIES 7,590,000 33,175,000 40,765,000 42,681,260 1,916,260 NET ASSETS 292,721,000 (71,819,000) 220,902,000 193,644,514 (27,257,486) NET ASSETS Accumulated Surplus 292,721,000 71.819 000) 220,902,000 193 644,514 (27,257,486) -12%
94
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
Budget on Accrual Basis Approved
Budget
R
Adjustments
R
Final Budget
R
Actual amounts on comparable
basis R
Difference between final budget and
actual R
Percentage Variance and
Comment
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 CASH FLOWS FROM OPERATING ACTIVITIES RECEIPTS Billed Services 8,711,000 2,409,000
11,120,000 6.592,178
(4,527,822) -
41% See Note 18
Government Grants 110,203,000 10,000
110,213,000 110,343,000 130,000 0%
Interest Revenue 10,000,000 (4,000,000)
6,000,000 1255,184 (4,744,816) -79% See Note 18
Other Services 8,584,000 4,863,000 13,447,000 4 876,578 (8,570,422) -64% See Note 18
137,498,000 3,282,000 140,780,000 123,066,940 (17,713,060) PAYMENTS Employee Costs and Suppliers (94,451,000) (15,360,000) (109,811,000) (93.278,228) 16,532,772 +15% See Note 18
Finance Costs - - - (3,675,138) (3,675,138) -100% See Note 18
(94,451,000) (15,360,000) (109,811,000) (96,953,366) 12,857,634 Net Cash Flows from Operating Activities
43,047,000 (12,078,000) 30,969,000 26,113,574 (4,855,426)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Property, Plant and Equipment
(31,961,000) 1,311,000 (30,650,000) (24,528,277) 6,121,723 + 20% See Note 18
Proceeds from Sale of Property, Plant and Equipment
300,000 (27,000) 273,000 316,425 43,425 +16% See Note 18
Proceeds from Insurance Claim for Loss of Property, Plant and Equipment
30,396 30,396 +100% See Note 18
Net Cash Flows from Investing Activities
(31,661,000) 1,284,000 (30,377,000) (24,181,456) 6,195,544
CASH FLOWS FROM FINANCING ACTIVITIES Finance Lease Repayments - - - (894,942) (894,942) -100% See Note 18
Net increase/(decrease) in cash and cash equivalents
11,386,000 (10,794,000) 592,000 1,037,176 445,176 + 75% See Note 18
Cash and Cash Equivalents at the beginning of the year
(4,500,000) 4,664,000 164,000 163,631 (369) 0% See Note 18
Cash and Cash Equivalents at the end of the year
6,886,000 (6,130,000) 756,000 1,200,807 444,807
95
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
Budget on Accrual Basis Approved
Budget
R
Adjustments
R
Final Budget
R
Actual amounts on comparable
basis R
Difference between final budget and
actual R
Percentage Variance and
Comment
Material differences between budget and actual amounts (above 10%) The detailed reasons for the differences between budget variances are as follows 1. Service charges raised were less than budgeted for due to places of worship that were included in the budget. 2. Rental of facilities and equipment hall rental was less than anticipated as there were fewer functions being held at the
community halls that are revenue generating. 3. The variance is due to an increase in the number of licence. 4. The budget amount includes the budget for "Other Transfer Revenue" which is shown separately under Revenue from Non-
Exchange Transactions. 5. The budgeted amount was excessive, and was further reduced by the debtor write offs. 6. Interest earned was lower than anticipated. 7. More traffic fines were issued due to increased traffic control measures put in place. 8. During the budgeting phase, internal projects were not anticipated to be completed in the current year resulting in depreciation
for the year being higher than anticipated. 9. The budget for finance costs was included in the repairs and maintenance budget. This overspending must be considered
inline with the underspending on repairs and maintenance. 10. The list of debt write off sent to council was less than the budget and the debt impairment calculation. 11. The budget for finance costs was included in the repairs and maintenance budget. This overspending must be considered
inline with the underspending on repairs and maintenance. 12. The budget did not take into account the current condition of the assets that were earmarked for sale as they were sold at less
than market value due to their current condition. 13. The budget amount included the Receivables from Exchange portion, this is due to correction of double billing that was done in
previous years end has since been corrected in the current year. 14. This is due to larger balances that are included in cash and cash equivalents received from investments. 15. The variance was due to the municipality not purchasing any intangible assets in the current year. 16. The variance is due projects that could not be completed and are still under work-in-progress. 17. The variance is due to the correction of prior year errors on salary suspense accounts. 18. The variance is as a result of the differences in other statements as the cashflow is a reconciliation of all your statements to
the cash balances.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES 1. Presentation of Annual Financial Statements The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 122(3) of the Municipal Finance Management Act No. 56 of 2003. These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with the historical cost convention as the basis of measurement, unless specified otherwise. A summary of the significant accounting policies, which have been consistently applied in the preparation of these annual financial statements are disclosed below These accounting policies are consistent with the previous period but the wording has since been amended and inclusion of required paragraphs has since been included. 1.1 Presentation Currency
These annual financial statements are presented in South African Rands, which is the functional currency of the municipality. All amounts are rounded off to the nearest Rand. 1.2 Going Concern Assumption These annual financial statements have been prepared based on the expectation that the municipality will continue to operate as a going concern for at least the next 12 months. 1.3 Significant Judgements and Sources of Estimation Uncertainty In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include: Receivables The municipality assesses its receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the municipality makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. The impairment for trade receivables is calculated based on the grading of category of debtors according to their payment history. An accumulation of arrear balances is an indicator of debtor delinquency. Such debtors are provided for as they are considered to be impaired due to uncertainty surrounding the recoverability of the outstanding amounts. Provisions Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in Note 17 "Provisions" of these financial statements. Allowance for Doubtful Debts Impairment loss is recognised in surplus or deficit when there is objective evidence that the debtor is impaired. The impairment is measured using the debtor's balances and the policy for debt impairment considering the probability of not receiving the monies owed to the municipality.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
1.4 Investment Property Investment property is property held to earn rentals or for capital appreciation or both rather than for:
use in the production or supply of goods or services, or administrative purposes, or sale in the ordinary course of operations.
Investment property is recognised as an asset when it is probable that the future economic benefits or service potential that are associated with the investment property will flow to the municipality, and the cost or fair value of the investment property can be measured reliably. Investment property is initially recognised at cost. Transaction costs are included in the initial recognition. Where investment property is acquired through a non-exchange transaction, its cost is its fair value as at the date of acquisition. Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a cost of, or service the property. If a replacement cost is recognised in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised. Subsequent Measurement - Fair value method Subsequent to initial recognition investment property is measured at fair value. The fair value of investment property reflects market conditions at the reporting date. A gain or loss arising from a change in fair value is included in net municipality's or deficit for the period in which it arises. 1.5 Property, Plant and Equipment Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, or for administrative purposes, and are expected to be used during more than one period. The cost of an item of property, plant and equipment is recognised as an asset when
it is probable that future economic benefits or service potential associated with the item will flow to the municipality; and the cost of the item can be measured reliably.
Property, plant and equipment is initially measured at cost. The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost. Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at the date of acquisition. Where an item of property plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item's fair value was not determinable, it's deemed cost is the carrying amount of the asset(s) given up. When significant components of an item of property, plant and equipment have different useful lives they are accounted for as separate items (major components) of property plant and equipment. Costs include all costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Recognition of costs in the carrying amount of an item of property plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management Major spare parts and stand-by equipment which are expected to be used for more than one period are included in property, plant and equipment. In addition, spare parts and stand by equipment which can only be used in connection with an item of property plant and equ pment are accounted for as property, plant and equipment. Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaining inspection costs from the previous inspection are derecognised Property, plant and equipment is depreciated on a straight line basis over their expected useful lives to their estimated residual value, The residual value estimated for motor vehicles is 20% of the cost at acquisition. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses except land which is carried at cost. The useful lives of items of property, plant and equipment have been assessed as follows Item Average useful life Land Indefinite Buildings 9 - 30 years Plant and Machinery 10 -15 years Furniture and Fixtures 5 - 7 years Motor Vehicles 7 years Office Equipment 5 - 7 years Computer Equipment 5 years Infrastructure
Roads - Paved 30 years Roads - Graded 7 - 25 years Electricity (Street Lights and High Masts) 11 - 20 years Speed humps 15 years
Security Equipment 5 years Work in Progress Not depreciated Other Equipment 5 years Minor Assets Immediately Park Facilities 5 - 76 years Maintenance Equipment 10 years Landfill Sites 69-98 years The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting date If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. The depreciation charge for each period is recognised in municipality's or deficit unless it is included in the carrying amount of another asset. Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset The gain or lass arising from the derecognition of an item of property, plant and equipment is included in municipality's or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
1.6 Intangible Assets An intangible asset is an identifiable non-monetary asset without physical existence. An asset is identifiable if it either
is capable of being separated or divided from a municipality and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract identifiable assets or liability, regardless of whether the entity intends to do so or arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the municipality or from other rights and obligations.
An intangible asset is recognised when
it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the municipality; and the cost or fair value of the asset can be measured reliably.
Intangible assets are initially recognised at cost. The municipality assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management's best estimate of the set of economic conditions that will exist over the useful life of the asset. Intangible assets are carried at cost less any accumulated amortisation and any impairment loss. The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. The municipality has assumed that the residual value of intangible assets is zero. Amortisation is provided to write down the intangible assets, on a straight line basis to their residual values as follows Item Computer Software
Useful life 5 years
Intangible assets are derecognised
on disposal, or when no future economic benefits or service potential are expected from its use or disposal.
The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount. It is recognised in municipality's or deficit when the asset is derecognised. 1.7 Heritage Assets Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations. The municipality recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the municipality, and the cost or fair value of the asset can be measured reliably. Initial Measurement Heritage assets are measured at cost. Where a heritage asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of acquisition.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Subsequent Measurement After recognition as an asset, a class of heritage assets is carried at its cost less any accumulated impairment losses. If a heritage asset's carrying amount is increased as a result of a revaluation, the increase is credited directly to a revaluation municipality's. However, the increase is recognised in municipality's or deficit to the extent that it reverses a revaluation decrease of the same heritage asset previously recognised in municipality's or deficit. If a heritage asset's carrying amount is decreased as a result of a revaluation, the decrease is recognised in municipality's or deficit. However, the decrease is debited directly to a revaluation surplus to the extent of any credit balance existing in the revaluation municipality's in respect of that heritage asset. Impairment The municipality assesses at each reporting date whether there is an indication that it may be impaired. If any such indication exists, the municipality estimates the recoverable amount or the recoverable service amount of the heritage asset. Derecognition Transfers from heritage assets are only made when the particular asset no longer meets the definition of a heritage asset. Transfers to heritage assets are only made when the asset meets the definition of a heritage asset. The municipality derecognises heritage assets on disposal, or when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from the derecognition of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in municipality's or deficit when the heritage asset is derecognised. 18.8 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity. Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Derecognition is the removal of a previously recognised financial asset or financial liability from a municipality's statement of financial position. A financial asset is:
cash; a contractual right to: - receive cash or another financial asset from another municipality or any other entity; or - exchange financial assets or financial liabilities with another municipality, or any other entity under conditions that are potentially
favourable to the municipality. A financial liability is any liability that is a contractual obligation to
deliver cash or another financial asset to another municipality or any other entity; or exchange financial assets or financial liabilities with another municipality, or any other entity under conditions that are potentially unfavourable to the municipality.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Liquidity risk is the risk encountered by a municipality in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
A financial asset is past due when a counterparty has failed to make a payment when contractually due. Classification The municipality has the following types of financial assets (classes and categories) as reflected on the face of the statement of financial position or in the notes thereto.
Class Category Receivables from Exchange Transactions Financial asset measured at amortised cost Receivables from Non-Exchange Transactions Financial asset measured at amortised cost VAT Receivable Financial asset measured at amortised cost Operating Lease Asset Financial asset measured at amortised cost Cash and Cash Equivalents Financial asset measured at fair value
The municipality has the following types of financial liabilities (classes and categories) as reflected on the face of the statement of financial position or in the notes thereto
Class Category Payables from Exchange Transactions Financial liability measured at amortised cost Payables from Non-Exchange Transactions Financial liability measured at amortised cost Finance Lease Obligation Financial liability measured at amortised cost
Initial Recognition The municipality recognises a financial asset or a financial liability in its statement of financial position when the municipality becomes a party to the contractual provisions of the instrument. The municipality classifies financial instruments, or their component parts, on initial recognition as a financial asset or a financial liability in accordance with the substance of the contractual arrangement. Financial instruments are measured initially at fair value. Initial Measurement of Financial Assets and Financial Liabilities The municipality measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Subsequent Measurement of Financial Assets and Financial Liabilities The municipality measures its financial assets and financial liabilities after initial recognition at amortised cost except for cash and cash equivalents. The financial assets that are measured at amortised cost are subject to an annual impairment review. Receivables from Exchange and Non-Exchange Transactions Receivables from Exchange and Non-Exchange Transactions are initially measured at fair value. Payables from Exchange and Non-Exchange Transactions Payables from Exchange and Non-Exchange Transactions are initially measured at fair value. Cash and Cash Equivalents Cash and Cash Equivalents comprise cash on hand and call accounts, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are subsequently measured at fair value. Gains and Losses A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in municipality's Statement of Financial Performance
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Impairment and Uncollectibility of Financial Assets The municipality assesses for impairment at the end of each reporting period when there is any objective evidence that a financial asset is impaired. When the allowance is recognised, it is measured as the asset's carrying amount at the date of recognition. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the deficit is recognised in surplus or deficit within operating expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in surplus or deficit Derecognition Financial Assets The municipality derecognises a financial asset only when
the contractual rights to the cash flows from the financial asset expire, are settled or waived or the municipality transfers to another party substantially all of the risks and rewards of ownership of the financial asset.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit. Financial Liabilities The municipality removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived. Presentation Interest relating to a financial instrument or a financial liability is recognised as revenue or expense in municipality's or deficit. Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in municipality's or deficit. A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the municipality currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. 1.9 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. When a lease includes both land and buildings elements, the municipality assesses the classification of each element separately. Finance Leases – Lessee Leases of property, plant and equipment where the municipality substantially assumes the risks and rewards of ownership are classified as finance leases. Finance lease assets and liabilities are recognised at the inception of the lease at the lower of the fair value of the leased asset and the present value of the future minimum lease payments. The present value of the future minimum lease payments are determined using the rate implicit in the lease. In the event that the lease does not specify the rate implicit in the lease, the incremental borrowing rate is used. If the borrowing rate cannot be determined the prime interest rate at inception of the lease is used. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The interest element of the finance cost is charged to the statement of financial performance over the lease period so as to produce a constant periodic rate of interest on the remaining balances of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term when there is uncertainty that the ownership of the leased assets will transfer to the lessee otherwise the useful life is used in any other event.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Operating Leases - Lessor Operating lease revenue is recognised as revenue on a straight-line basis over the lease term. Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease revenue. The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight-line basis. The aggregate benefit of incentives is recognised as a reduction of rental expense over the lease term on a straight-line basis. When assets are leased out under an operating lease, the asset is included in the statement of financial position on the nature of the asset. 1.10 Inventories Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition. Subsequently inventories are measured at the lower of cost and net realisable value Inventories are measured at the lower of cost and current replacement cost where they are held for
distribution at no charge or for a nominal charge, or consumption in the production process of goods to be distributed at no charge or for a nominal charge.
Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completion and the estimated costs necessary to make the sale exchange or distribution. Current replacement cost is the cost the municipality incurs to acquire the asset on the reporting date. The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs. The cost of inventories is assigned using the first-in, first-out (FIFO) formula. The same cost formula is used for all inventories having a similar nature and use to the municipality. When inventories are transferred to beneficiaries, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or related services are rendered. The amount of any write-down of inventories to net realisable value or current replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs, The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. 1.11 Impairment of Cash-Generating Assets Cash-generating assets are those assets held by the municipality with the primary objective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return. Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset s future economic benefits or service potential through depreciation (amortisation). Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
A cash-generating unit is the smallest identifiable group of assets held with the primary objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets. Costs of disposal are incremental costs directly attributable to the disposal of an asset excluding finance costs and income tax expense. Depreciation (amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life. Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal. Recoverable amount of an asset or a cash-generating unit is the higher of its falr value less costs to sell and its value in use. Useful life is either. (a) the period of time over which an asset is expected to be used by the municipality; or (b) the number of production or similar units expected to be obtained from the asset by the municipality. Criteria developed by the municipality to distinguish cash-generating assets from non-cash-generating assets are as follows: Cash-Generating Units If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset If it is not possible to estimate the recoverable amount of the individual asset. the municipality determines the recoverable amount of the cash-generating unit to which the asset belongs (the asset's cash-generating unit). If an active market exists for the output produced by an asset or group of assets. that asset or group of assets is identified as a cash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash-generating unit are affected by internal transfer pricing, the municipality uses management's best estimate of future price(s) that could be achieved in arm's length transactions in estimating
the future cash inflows used to determine the asset's or cash-generating unit's value in use; and the future cash outflows used to determine the value in use of any other assets or cash-generating units that are affected by the internal transfer pricing.
Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is justified. The carrying amount of a cash-generating unit is determined on a basis consistent with the way the recoverable amount of the cash-generating unit is determined. An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as impairment losses on individual assets. In allocating an impairment loss, the entity does not reduce the carrying amount of an asset below the highest of:
its fair value less costs to sell (if determinable); its value in use (if determinable); and zero.
The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other cash-generating assets of the unit. Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that noncash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable amount of the cash-generating unit. 1.12 Employee Benefits Employee benefits are all forms of consideration given by a municipality in exchange for services rendered by employees.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Termination benefits are employee benefits payable as a result of either. a municipality's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept voluntary redundancy in exchange for those benefits.
Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the reporting period in which the employees render the related service. Short-Term Employee Benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the reporting period in which the employees render the related service. Short-term employee benefits include items such as:
wages, salaries and social security contributions; short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months alter the end of the reporting period in which the employees render the related employee service; bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service, and non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.
When an employee has rendered a service to the municipality during a reporting period, the municipality recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service
as a liability (accrued expense), after deducting any amount already paid. if the amount already paid exceeds the undiscounted amount of the benefits, the municipality recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund, and as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.
The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The municipality measures the expected cost of accumulating compensated absences as the additional amount that the municipality expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The municipality recognises the expected cost of bonus, incentive and performance related payments when the municipality has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the municipality has no realistic alternative but to make the payments. 1.13 Provisions and Contingencies Provisions are recognised when
the municipality has a present obligation as a result of a past event it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and a reliable estimate can be made of the obligation.
The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date. Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation. The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when it is virtually certain that reimbursement will be received if the municipality settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision,
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate Provisions are reversed 4 it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense. A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised for future operating deficits. Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 38 1.14 Revenue from Exchange Transactions Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners An exchange transaction is one in which the municipality receives assets or services or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Measurement Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and volume rebates. Sale of Goods Revenue from the sale of goods is recognised when all the following conditions have been satisfied
the municipality has transferred to the purchaser the significant risks and rewards of ownership of the goods. the municipality retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the economic benefits or service potential associated with the transaction will flow to the municipality; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of Services When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:
the amount of revenue can be measured reliably; it is probable that the economic benefits or service potential associated with the transaction will flow to the municipality; the stage of completion of the transaction at the reporting date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on a straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the significant act is executed. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is determined by services performed to date as a percentage of total services to be performed.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Interest Revenue arising from the use by others of municipality assets yielding interest is recognised when
It is probable that the economic benefits or service potential associated with the transaction will flow to the municipality, and The amount of the revenue can be measured reliably.
Interest is recognised, in municipality's or deficit, using the effective interest rate method 1.15 Revenue from Non-Exchange Transactions Revenue comprises gross inflows of economic benefits or service potential received and receivable by the municipality, which represents an increase in net assets. Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor. Control of an asset arises when the municipality can use or otherwise benefit from the asset in pursuit of its objectives and can exclude or otherwise regulate the access of others to that benefit. Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to another entity in exchange. Fines are economic benefits or service potential received or receivable by the municipality, as determined by a court or other law enforcement body, as a consequence of the breach of laws or regulations. Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction. the municipality either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange. Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes. Recognition An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow. As the municipality satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction. Measurement Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the municipality. When, as a result of a non-exchange transaction, the municipality recognises an asset it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
Fines Fines are recognised as revenue when the receivable meets the definition of an asset and satisfies the critena for recognition as an asset. Assets arising from fines are measured at the best estimate of the inflow of resources to the municipality:
in full at the transaction date even if there is an uncertainty about the entity's ability to collect such revenue based on past history, as the entity has an obligation to collect all revenue due to it.
The municipality has two types of fines spot fines and summonses. There is uncertainty regarding the probability of the flow of economic benefits or service potential in respect of spot fines as these fines are usually not given directly to an offender. Further legal processes have to be undertaken before the spot fine is enforceable. In respect of summonses the public prosecutor can decide whether to waive the fine, reduce it or prosecute for non-payment by the offender. Subsequent Measurement The municipality assesses the collectability of the revenue and recognises impairment loss where appropriate. The municipality uses estimates to determine the amount of revenue that it is entitled to collect. The impairment is recognised as an expense in the statement of financial performance 1.16 Investment Income Investment income is recognised on a time-proportion basis using the effective interest rate method. 1.17 Borrowing Costs It is inappropriate to capitalise borrowing costs when, and only when there is clear evidence that it is difficult to link the borrowing requirements of an entity directly to the nature of the expenditure to be funded i.e. capital or current. Borrowing costs are recognised as an expense in the period in which they are incurred. 1.18 Comparative Figures Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year. 1.19 Unauthorised Expenditure Unauthorised expenditure means:
overspending of a vote or a main division within a vote; and expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with the purpose of the main division.
All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance in the period that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance. 1.20 Fruitless and Wasteful Expenditure Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised. All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the period that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance. 1.21 Irregular Expenditure Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act No. 56 of 2003, the Municipal Systems Act No. 32 of 2000, and the Remuneration of Public Office Bearers Act No. 20 of 1998 or is in contravention of the municipality's supply chain management policy. Irregular expenditure excludes unauthorised expenditure. Irregular expenditure is accounted for as expenditure in the statement of financial performance and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
1.22 Use of Estimates The preparation of annual financial statements in conformity with the Standards of GRAP requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the municipality's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the annual financial statements are disclosed in the relevant sections of the annual financial statements. Although these estimates are based on management's best knowledge of current events and actions they may undertake in the future, actual results ultimately may differ from those estimates. 1.23 Conditional Grants Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the municipality has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met, a liability is recognised. 1.24 Related Parties The municipality operates in an economic sector currently dominated by entities directly or indirectly owned by the South African Government. As a consequence of the constitutional independence of the three spheres of government in South Africa, only entities within the national sphere of government are considered to be related parties. Management are those persons responsible for planning, directing and controlling the activities of the municipality including those charged with the governance of the municipality in accordance with legislation, in instances where they are required to perform such functions. Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, management in their dealings with the municipality. Only transactions with related parties not at arm's length or not in the ordinary course of business are disclosed. 1.25 Valued Added Tax The municipality accounts for value added tax on accrual basis but pays over to /claims from SARS on a payment basis. 1.26 Expenditure Expenses are decreases in economic benefits or service potential during the reporting period in the form of outflows or consumption of assets or incurrences of liabilities that result in decreases in net assets. An expense is recognised in the municipality's statement of financial performance when, and only when the goods .are received and or services consumed. Where an item possesses the essential characteristics of an expense but fails to meet the criteria for recognition it is disclosed in the note. Where an outflow of economic benefits does not result in future benefits, it is disclosed as fruitless and wasteful expenditure. The point at which an expense is recognised is dependent on the nature of the transaction or other event that gives rise to the expense. Where future economic benefits are consumed immediately or soon after acquisition, for example, repairs and maintenance expenditure, bulk purchases and general expenses, the expense is recognised in the reporting period in which the acquisition of the future economic benefit occurs. Where future economic benefits are expected to be consumed over several reporting periods e.g. non-current assets, expenses (depreciation) are allocated systematically to the reporting period during which the future economic benefits are expected to be consumed; where expenditure produces no future economic benefits e.g. fines paid, an expense is recognised immediately; and where a liability is incurred without the recognition of an asset an expense is recognised simultaneously with the recognition of the liability. Generally, expenses are accounted for on an accrual basis at fair value. Under the accrual basis of accounting expenses are recognised when incurred usually when goods are received or services are consumed. This may not be when the goods or services are actually paid for. Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arm's length transaction. Major expenses include: - Repairs and Maintenance - inclusive of repairs and maintenance to buildings, infrastructure assets, motor vehicles and sports and
recreational facilities; - Other Expenditure which constitute several expense items which are not individually significant and
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 ACCOUNTING POLICIES
- Losses on the disposal of assets are reported separately from expenses on the Statement of Financial Performance. 1.27 Budget Information Municipalities are typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent). which is given effect through authorising legislation, appropriation or similar. General purpose financial reporting by the municipality shall provide information on whether resources were obtained and used in accordance with the legally adopted budget. The approved budget is prepared on an accrual basis and presented by economic classification linked to performance outcome objectives. The approved budget covers the fiscal period from 2015/07/01 to 2016/06/30. The annual financial statements and the budget are on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the statement of comparison of budget and actual amounts. The statement of comparison of budget and actual amounts has been included in the annual financial statements as the recommended disclosure when the annual financial statements and the budget are on the same basis of accounting as determined by National Treasury
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R 2. NEW STANDARDS AND INTERPRETATIONS 2.1 Standards and interpretations issued, but not yet effective The municipality has not applied the following standards and interpretations, which have been published and are mandatory for the municipality's accounting periods beginning on or after 01 July 2016 or later periods: GRAP 18: Segment Reporting Segments are identified by the way in which information is reported to management, both for purposes of assessing performance and making decisions about how future resources will be allocated to the various activities undertaken by the municipality. The major classifications of activities identified in budget documentation will usually reflect the segments for which an entity reports information to management. Segment information is either presented based on service or geographical segments. Service segments relate to a distinguishable component of an entity that provides specific outputs or achieves particular operating objectives that are in line with the municipality's overall mission. Geographical segments relate to specific outputs generated, or particular objectives achieved, by an entity within a particular region. This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance. Directive 2 - Transitional provisions for public entities, municipal entities and constitutional institutions states that no comparative segment information need to be presented on initial adoption of this Standard, Directive 3 - Transitional provisions for high capacity municipalities states that no comparative segment information need to be presented on initial adoption of the Standard. Where items have not been recognised as a result of transitional provisions under GRAP on Property, Plant and Equipment, recognition requirements of this Standard would not apply to such items until the transitional provision in that Standard expires. Directive 4 - Transitional provisions for medium and low capacity municipalities states that no comparative segment information need to be presented on initial adoption of the Standard. Where items have not been recognised as a result of transitional provisions on the GRAP on Property, Plant and Equipment and GRAP on Agriculture, the recognition requirements of the Standard would not apply to such items until the transitional provision in that standard expires. The effective date of the standard is not yet set by the Minister of Finance. The municipality expects to adopt the standard for the first time when the Minister sets the effective date for the standard. it is unlikely that the standard will have a material impact on the municipality's annual financial statements. GRAP 20: Related parties The objective of this standard is to ensure that a reporting entity's annual financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and surplus or deficit may have been affected by the existence of related parties and by transactions and outstanding balances with such parties. An entity that prepares and presents financial statements under the accrual basis of accounting (in this standard referred to as the reporting entity) shall apply this standard in:
identifying related party relationships and transactions; identifying outstanding balances, including commitments, between an entity and its related parties. identifying the circumstances in which disclosure of the items in (a) and (b) is required, and determining the disclosures to be made about those items.
This standard requires disclosure of related party relationships, transactions and outstanding balances, including commitments, in the consolidated and separate financial statements of the reporting entity in accordance with the standard.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 2. NEW STANDARDS AND INTERPRETATIONS (continued) Disclosure of related party transactions, outstanding balances, including commitments, and relationships with related parties may affect users' assessments of the financial position and performance of the reporting entity and its ability to deliver agreed services, including assessments of the risks and opportunities facing the entity. This disclosure also ensures that the reporting entity is transparent about its dealings with related parties. The standard states that a related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control. As a minimum, the following are regarded as related parties of the reporting entity:
A person or a close member of that person's family is related to the reporting entity if that person: - has control or joint control over the reporting entity; - has significant influence over the reporting entity; - is a member of the management of the entity or its controlling entity. An entity is related to the reporting entity if any of the following conditions apply: - the entity is a member of the same economic entity (which means that each controlling entity, controlled entity and fellow controlled
entity is related to the others); - one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of an economic entity of
which the other entity is a member); both entities are joint ventures of the same third party;
- one entity is a joint venture of a third entity and the other entity is an associate of the third entity; - the entity is a post-employment benefit plan for the benefit of employees of either the entity or an entity related to the entity, if the
reporting entity is itself such a plan, the sponsoring employers are related to the entity; - the entity is controlled or jointly controlled by a person identified in (a); and - a person identified in (a)(1) has significant influence over that entity or is a member of the management of that entity (or its
controlling entity). The standard furthermore states that a related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged. The standard elaborates on the definitions and identification of:
Close member of the family of a person, Management; Related parties; Remuneration; and Significant influence.
The standard sets out the requirements, inter alia, for the disclosure of:
Control; Related party transactions; and Remuneration of management.
The effective date of the standard is not yet set by the Minister of Finance. The municipality expects to adopt the standard for the first time when the Minister sets the effective date for the standard. The adoption of this standard is not expected to impact on the results of the municipality, but may result in more disclosure than is currently provided in the annual financial statements. GRAP 32: Service Concession Arrangements: Grantor The objective of this Standard is to prescribe the accounting for service concession arrangements by the grantor, a public sector entity. It furthermore covers definitions, recognition and measurement of a service concession asset, recognition and measurement of liabilities, other liabilities, contingent liabilities, and contingent assets, other revenues, presentation and disclosure, transitional provisions, as well as the effective date. The effective date of the standard is not yet set by the Minister of Finance. The municipality expects to adopt the standard for the first time when the Minister set the effective date for the standard
113
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 2. NEW STANDARDS AND INTERPRETATIONS (continued) It is unlikely that the standard will have a material impact on the municipality's annual financial statements. GRAP 108: Statutory Receivables The objective of this Standard is to prescribe accounting requirements for the recognition, measurement, presentation and disclosure of statutory receivables. It furthermore covers definitions, recognition, derecognition, measurement, presentation and disclosure, transitional provisions, as well as the effective date. The effective date of the standard is not yet sets by the Minister of Finance. The municipality expects to adopt the standard for the first time when the Minister sets the effective date for the standard. It is unlikely that the standard will have a material impact on the municipality's annual financial statements. IGRAP 17: Service Concession Arrangements where a Grantor Controls a Significant Residual Interest in an Asset This Interpretation of the standard provides guidance to the grantor where it has entered into a service concession arrangement, but only controls, through ownership, beneficial entitlement or otherwise, a significant residual interest in a service concession asset at the end of the arrangement, where the arrangement does not constitute a lease. This Interpretation of the standards shall not be applied by analogy to other types of transactions or arrangements A service concession arrangement is a contractual arrangement between a grantor and an operator in which the operator uses the service concession asset to provide a mandated function on behalf of the grantor for a specified period of time. The operator is compensated for its services over the period of the service concession arrangement, either through payments, or through receiving a right to earn revenue from third party users of the service concession asset, or the operator is given access to another revenue-generating asset of the grantor for its use. Before the grantor can recognise a service concession asset in accordance with the standards on service concession Arrangements: Grantor, both the criteria as noted in paragraph 01 of this Interpretation of the Standards of GRAP need to be met. In some service concession arrangements, the grantor only controls the residual interest in the service concession asset at the end of the arrangement, and can therefore not recognise the service concession asset in terms of the Standard of GRAP on Service Concession Arrangements: Grantor. A consensus is reached, in this Interpretation of the Standards of GRAP, on the recognition of the performance obligation and the right to receive a significant interest in a service concession asset. The effective date of the standard is not yet set by the Minister of Finance. The municipality expects to adopt the standard for the first time when the Minister set the effective date for the standard. It is unlikely that the standard wig have a material impact on the municipality's annual financial statements. GRAP 16 (as amended 2015): Investment Property Based on the feedback received as part of the post-implementation review, the Board agreed to reconsider certain principles in GRAP 16 and GRAP 17. In particular, the Board agreed to
Review the principles and explanations related to the distinction between investment property and property, plant and equipment. Consider whether an indicator-based assessment of useful lives of assets could be introduced. Clarify the wording related to the use of external valuers. Introduce more specific presentation and disclosure requirements for capital work-in-progress. Review the encouraged disclosures and assess whether any should be made mandatory or deleted. Require separate presentation of expenditure incurred on repairs and maintenance in the financial statements.
Various amendments were made to the Standard, affecting Definitions, Identification, Disclosure, Effective date and Transitional provisions.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 2. NEW STANDARDS AND INTERPRETATIONS (continued) The effective date of the standard is for years beginning on or after 01 April 2016. The municipality expects to adopt the standard for the first time in the 2017 annual financial statements. It is unlikely that the standard will have a material impact on the municipality's annual financial statements. GRAP 17 (as amended 2015): Property, Plant and Equipment Based on the feedback received as part of the post-implementation review, the Board agreed to reconsider certain principles in GRAP 16 and GRAP 17. In particular, the Board agreed to:
Review the principles and explanations related to the distinction between investment property and property, plant and equipment. Consider whether an indicator-based assessment of useful lives of assets could be introduced. Clarify the warding related to the use of external valuers. Introduce more specific presentation and disclosure requirements for capital work-in-progress. Review the encouraged disclosures and assess whether any should be made mandatory or deleted Require separate presentation of expenditure incurred on repairs and maintenance in the financial statements
Amendments identified as part of the post-implementation review, affected the following areas
Indicator-based assessment of the useful lives of assets Use of external valuers Encouraged disclosures Capital work-in-progress Expenditure incurred on repairs and maintenance
The effective date of the standard is for years beginning on or after 01 April 2016. The municipality expects to adopt the standard for the first time in the 2017 annual financial statements. It is unlikely that the standard will have a material impact on the municipality's annual financial statements. GRAP 109: Accounting by Principals and Agents The objective of this Standard is to outline principles to be used by an entity to assess whether it is party to a principal-agent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement. The Standard does not introduce new recognition or measurement requirements for revenue, expenses, assets and/or liabilities that result from principal-agent arrangements. The Standard does however provide guidance on whether revenue, expenses, assets and/or liabilities should be recognised by an agent or a principal as well as prescribe what information should be disclosed when an entity is a principal or an agent. It furthermore covers definitions, identifying whether an entity is a principal or agent, accounting by a principal or agent, presentation, disclosure, transitional provisions and effective date. The effective date of the standard is not yet set by the minister of finance. The municipality expects to adopt the standard for the first time when the Minister sets the effective date for the standard. It is unlikely that the standard will have a material impact on the municipality's annual financial statements. GRAP 21 (as amended 2015): Impairment of Non-Cash-Generating Assets The Board agreed to include a research project on its work programme to review GRAP 21 and GRAP 26 to assess whether the principles in these Standards could be simplified and streamlined. As part of its research project, the Board considered the following aspects which led to the proposed amendments included in this Exposure Draft
simplifying the approach to Impairment to make it clearer when an asset is cash generating or non-cash-generating; assessing the feasibility of one measurement approach for non-cash-generating assets; and assessing the feasibility of combining the two Standards.
115
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 2. NEW STANDARDS AND INTERPRETATIONS (continued) Summary of changes: The changes to the standard on impairment of non-cash-generating assets are outlined below. General definitions: The definition of cash-generating assets has been amended to be consistent with the amendments made to clarify the objective of cash-generating assets and non-cash-generating assets. Cash generating assets and non-cash-generating assets: Additional commentary has been added to clarify the objective of cash-generating assets and non-cash-generating assets. Identifying an asset that may be impaired: Additional commentary has been added to clarify that physical damage triggers impairment of an asset when it results in a permanent or a significant decline in the potential of an asset. Reversing an impairment loss: An indicator has been added that the restoration of an asset's service potential following physical damage to the asset could indicate a reversal in an impairment loss. Additional commentary has been added to clarify that restoration of an asset's service potential as a result of physical damage is an indication that an impairment loss recognised in prior periods may no longer exist or may have decreased. Disclosures: The requirement to disclose the criteria developed to distinguish non-cash-generating assets from cash-generating assets has been amended to be consistent with the amendments made to clarify the objective of non-cash-generating assets and cash-generating assets. The effective date of the standard is for years beginning on or after 01 April 2017. The municipality expects to adopt the standard for the first time in the 2018 annual financial statements. It Is unlikely that the standard will have a material impact on the municipality's annual financial statements. GRAP 26 (as amended 2015): Impairment of Cash-Generating Assets The Board agreed to include a research project on its work programme to review GRAP 21 and GRAP 26 to assess whether the principles in these Standards could be simplified and streamlined. As part of its research project, the Board considered the following aspects which led to the proposed amendments included in this Exposure Draft:
simplifying the approach to impairment to make it clearer when an asset is cash generating or non-cash-generating. assessing the feasibility of one measurement approach for non-cash-generating assets; and assessing the feasibility of combining the two Standards.
Summary of changes The changes to the Standard of GRAP on impairment of Cash-generating Assets are outlined below General definitions The definitions of cash-generating assets and cash-generating unit have been amended to be consistent with the amendments made to clarify the objective of cash-generating assets and non-cash-generating assets below.
116
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 2. NEW STANDARDS AND INTERPRETATIONS (continued) Cash generating assets and non-cash-generating assets: Additional commentary has been added to clarify the objective of cash-generating assets and non-cash-generating assets. Disclosures: The requirement to disclose the criteria developed to distinguish cash-generating assets from non-cash-generating assets has been amended to be consistent with the amendments made to clarify the objective of non-cash-generating assets and cash-generating assets. The effective date of the standard is for years beginning on or after 01 April 2017. The municipality expects to adopt the standard for the first time in the 2018 annual financial statements. It is unlikely that the standard will have a material impact on the municipality's annual financial statements. Directive 12: The Selection of an Appropriate Reporting Framework by Public Entities Historically, public entities have prepared financial statements in accordance with generally recognised accounting practice, unless the Accounting Standards Board (the Board) approved the application of generally accepted accounting practice for that entity. "Generally accepted accounting practice" has been taken to mean Statements of Generally Accepted Accounting Practice (Statements of GAAP), or for certain entities, International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board. Since Statements of GAAP have been withdrawn from 1 December 2012, public entities will be required to apply another reporting framework in the future. The purpose of this Directive is to prescribe the criteria to be applied by public entities in selecting and applying an appropriate reporting framework. The effective date of the standard is for years beginning on or after 01 April 2018. The municipality expects to adopt the standard for the first time in the 2019 annual financial statements. It is unlikely that the standard will have a material impact on the municipality's annual financial statements.
117
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
INVENTORIES Land to be transferred to beneficiaries 268,800 268,800 Inventories comprise of land on which RDP houses are constructed and are awaiting transfer to the beneficiaries. A register of these properties is maintained by the municipality. OPERATING LEASE ASSET Leases for Land 67.602 93 650 The municipality lets land to tenants under leases covering periods ranging from 3 - 30 years. The leases are subject to escalation clauses as per the lease agreement resulting in straight lining of the rentals received and receivable. The amount included above represents the difference between the actual rentals received and the calculated straight line lease. The amount of the commitment arising from the operating leases is covered under note 37 of these annual financial statements. 5, VAT RECEIVABLE VAT Input Provision 1,885,080 3,265,649 VAT Output Provision (157,157) (165,061) VAT Receivable from SARS 2,238,250 1,357,947 3,966,173 4,458,535 6. RECEIVABLES FROM EXCHANGE TRANSACTIONS Gross Balances Refuse 1,011,622 1,223,875 Rent 202,075 30,178 Interest on Overdue Accounts 9,861,451 4.171,412 11,075,148 5,425,465 Less: Allowance for impairment Refuse (296,600) (625,059) Rent (59,247) (14,882) Interest on Overdue Accounts (2,891,302) (2,073,607) (3,247,149) (2,713,548) Net Balance Refuse 715,022 598,816 Rent 142,828 15,296 Interest on Overdue Accounts 6,970,149 2,097,805 7,827,999 2,711,917 Refuse 0 - 30 days 45.714 6,559 31 - 60 days 41,399 38,344 61 - 90 days 43,074 23,713 91 -120 days 23.940 33,455 121 - 150 days 21,888 28,233 Over 151 days 535,607 1,093,571 1 ,011,622 1,223,875
118
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
Rent 0 - 30 days 133.156 5,285 31 - 60 days 9.993 5,285 61 - 90 days 8,737 900 91 - 120 days 4 890 900 121 -150 days 795 900 Over 151 days 44,504 16,908 202,075 30,178 Interest on Overdue Accounts
0 - 30 days 540,659 - 31 - 60 days 565,686 - 61 - 90 days 541,622 (4,280) 91 -120 days 539,328 - 121 -150 days 523,696 291,133 Over 151 days 7,150,460 3,884,559 9,861,451 4,171,412 7. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS
Property Rates 21,831,100 19.494,034 Less: Impairment on Property Rates (6,400,710) (9,688,409) Other Receivables 5,630,996 3,716,423 21,061,386 13,522,048 Property Rates 0 - 30 days 2,752,979 658,667 31 - 60 days 114,936 603.948 61 - 90 days 1,028,560 1 043.633 91 -120 days 121,442 28,763 121 -150 days 1,810,703 123,433 Over 151 days 16,002,480 17,035,590 21,831,100 19,494,034 Summary of Total Debtors (Exchange and Non-Exchange) by Customer Classification
Residential
0 - 30 days 1,289,888 134,819 31 - 60 days 182,391 70,922 61 -90 days 224,789 93,162 91 - 120 days 166,690 72,425 121 -150 days 163,025 98,441 Over 151 days 4,424,084 3,770,434 6,450,867 4,240,203 Less. Allowance for Impairment (4,211,741) (3,566,108) 2,239,126 674,095
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
Business 0 - 30 days 162,005 79,804 31 - 60 days 155,215 49,756 61 - 90 days 112,204 43,838 91 -120 days 117,509 53,370 121 -150 days 85,860 53,803 Over 151 days 2,526,364 1,724,527 3,159,157 2,005,098 Less Allowance for Impairment (1,619,951) (1,093,026) 1,539,206 912,072 Government
0 - 30 days 1,155,462 111,524 31 - 60 days 294,007 114,673 61 -90 days 1,181,192 84,728 91 -120 days 307,906 44,128 121 - 150 days 2,020,072 102,648 Over 151 days 12,984,707 8,985,954 17,943,346 9,443,655 Other
0 - 30 days 865,154 191,576 31 - 60 days 100,400 124,476 61 - 90 days 103,807 (13,334) 91 -120 days 97,495 92,671 121 -150 days 88,125 179,747 Over 151 days 4,097,896 8,655,407 5,352,877 9,230,543 Less. Allowance for Impairment (3,816,166) (7,742,824) 1,536,711 1,487,719
0 - 30 days 1,155,462 111,524 31 - 60 days 294,007 114,673 61 -90 days 1,181,192 84,728 91 - 120 days 307,906 44,128 121 -150 days 2,020,072 102,648 Over 151 days 12,984,707 8,985,953 17,943,346 9,443,654 Reconciliation of Provision for Impairment Opening Provision for Impairment 12,401,958 10,514,046 Movement of Provision for Impairment Current Year (2,754,099) 1,887,912 Debtors written off by Council 4,717,344 - Contribution to Impairment (4,717,344) - 9,647,859 12,401,958 TOTAL DEBTORS (EXCHANGE AND NON-EXCHANGE) Balance Net of Credit Balances 22,407,777 11,282,267 Gross Up of Credit Balances 850,612 1,235,275 Other Receivables 5,630,996 3,716,423
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
28,889,385 16,233,965 8. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of: Cash on Hand 823 823 Bank Balances 662,254 125,834 Investments 537,730 36,974 1,200,807 163,631 The Municipality had the Following Bank Accounts:
Account number/ description Bank Statement Balances Cash Book Balances 30 June 2016 30 June 2015 30 June 2014 30 June 2016 30 June 2015 30 June 2014 FNB Main Account - 62022000898 662,254 125,834 232, 773 662,254 125, 834 229,373 FNB Call Account : Planning - 61684000098 - - 99,771 - - 99.771 FNB Call Account Reserve Fund - 62035920596 1,767 1,749 66,373 1,767 1.749 66,373 FNB Equitable Share - 62270666616 - - 29,784 - - 29,784 FNB MIG Account - 622770667531 12,260 1,000 6,962 123 12,260 1,000 6,962,123 FNB Small Town Call Account - 62352053301 - - 1 092 - - 1,092 FNB MSIG Account - 62414340894 - - 1,295 - - 1,295 FNB Rates Account - 62414349763 504,656 31,503 111,113 504,656 31,503 111,113
FNB FMG - 62414356594 - - 272,091 - - 272,091 FNB EPWP Call Account - 62414353293 - - (196) - - (196) FNB EPWP - 62414353441 963 1,005 1.048 963 1 005 9.625 FNB Salary Account - 62434762945 - - 477,937 - - 477 936 FNB MIG Operating Account 62437745857 - - 56,279 - - 56 279 FNB MSIG Operating Account - 62437829213 - - 766 - - 766 FNB FMG Operating Account - 62414358912 1,734 1,717 55,003 1,734 1,717 55,003
FNB MIG - 82270667531 - - - - - Cash on Hand - - - 823 823 201 FNB Call Account PHP - 62048047494 - - 245,719 - - 245,719 FNB Call Account (Short-Term Investment) - 62606330463 16,350 16,350
Total 1,199,984 162,808 8,612,971 1,200,807 163,631 8,618,348
9. INTANGIBLE ASSETS 2016 2015
Cost
Accumulated amortisation
and impairment
Carrying value Cost
Accumulated amortisation
and impairment
Carrying value
121
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
Computer Software 1,569,514 (1,003,643) 565,871 1,569,514 (603,997) 965,517 Reconciliation of Intangible Assets - 30 June 2016
Opening balance Amortisation Impairment
loss Total
Computer Software 965,517 (284 903) (114,743) 565,871
Reconciliation of Intangible Assets - 30 June 2015 Opening
balance Additions Amortisation Total
Computer Software 1,206,634 64,745 (305,862) 965,517 The municipality amortises all its intangible assets and none of these are regarded as having indefinite useful lives. The useful lives of the intangible assets remain unchanged from the previous year. Impairment loss amounting to R 114 743 have been recognised on the intangible assets of the municipality at the reporting date. 10. INVESTMENT PROPERTY 2016 2015
Cost / Valuation Carrying value Cost / Valuation Carrying value
Investment Property 37,951,900 37,951,900 37,951,900 37,951,900 Reconciliation of Investment Property - 30 June 2016
Opening balance
Closing Balance
Investment Property 37 951,900 37,951 900 Reconciliation of Investment Property - 30 June 2015
Opening Balance
Prior year adjustment
Closing Balance
Investment Property 37,976 900 (25,000) 37,951.900
122
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
10. INVESTMENT PROPERTY (continued) Details of Property Erf 2220 Peddie - Land Extent 4340 square meter Land is leased to Engen Petroleum - Cost at acquisition 2,888,000 2,888,000 Erf 447 Hamburg - Land Extent 2824hq Portion of the Caravan Park Leased to Mrs Dorego. - Cost at acquisition 2,050,000 2,050,000 Ed 314 - Land extent 989 square meters Land Leased to ANC Constituency - Cost at acquisition 91,400 91,400 Ed 1836 - Land extent 488 square meters Land Leased to IEC - Cost at acquisition 556,700 556,700 All the municipality's properties are held under freehold interest and no investment property has been pledged as security for any liabilities of the municipality. There are no restrictions on the realisation of Investment Property or the remittance of revenue and the proceeds of disposal. Valuation of investment property was done by Penny Lindstrom Valuations in 2013, an independent valuer. The valuation, which conforms to international standards, was arrived at by reference to market evidence of transaction prices for similar properties. Valuation is performed every four years and the 4 years have not yet elapsed, therefore the properties have not been revalued. At the end of the period, these properties were generating an average monthly income of R 17 989 (2015 - R 15 266). 11. PROPERTY, PLANT AND EQUIPMENT 2016 2015
Cost Accumulated
depreciation and
impairment Carrying value
Cost Accumulated depreciation
and impairment
Carrying value
Land 7,743,600 - 7,743,600 7,743,600 - 7,743,600 Buildings 69,982,102 (12,024,277) 57,957,825 65,372,404 (9.708,791) 55,663,613 Park Facilities 10,859,516 (1,322,342) 9,537,174 9,215,477 (2,018,862) 7,196,615 Infrastructure 114,141,924 (75,747,561) 38,394,363 104,092,434 (67.527,626) 36,564,808 Other Equipment 168,469 (131,583) 36,886 163,435 (121,373) 42,062 Work in Progress 28,320,369 28,320,369 21,716,413 - 21,716,413 Plant and Machinery 19,529,194 (4,944,888) 14,584,306 15,678,121 (4,254,264) 11,423,857 Maintenance Equipment 346,256 (181,403) 164,853 354,848 (228,848) 126,000 Security Equipment 549,785 (380,675) 169,110 549,785 (320,943) 228,842 Motor Vehicles 8,473,771 (3,244,388) 5,229,383 7,411,800 (2,753,057) 4,658,743 Office Equipment 1,255,526 (702,845) 552,681 1,129,161 (598,284) 530,877 Computer Equipment 1,969,351 (1,409,841) 559,510 1,826,124 (1,336,543) 489,581 Furniture and Fixtures 1,499,589 (1,334,416) 165,173 1,476,289 (1,191,092) 285,197 Minor Assets 1,622,352 (1,622,352) - 1,486,391 (1,486,391) - Total 266,461,804 (103,046,571) 163,415,233 238,216,282 (91,546,074) 146,670,208
123
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
(R
egist
ratio
n num
ber E
C126
) An
nual
Finan
cial S
tatem
ents
for th
e Yea
r End
ed 30
June
2016
NO
TES
TO T
HE A
NNUA
L FI
NANC
IAL
STAT
EMEN
TS
20
16
R
2015
Re
stat
ed R
11.
PROP
ERTY
, LAN
D AN
D EQ
UIPM
ENT
(con
tinue
d)
Reco
ncilia
tion
of P
rope
rty, P
lant a
nd E
quip
men
t – 30
June
2016
Oper
atio
n ba
lance
Ad
ditio
n Fi
nanc
e Le
ase
Addi
tions
Di
spos
als
Tran
sfer
s Re
turn
to
Less
or
Depr
eciat
ion
Capi
talis
ed
to P
rojec
ts
Depr
eciat
ion
Impa
irmen
t To
tal
Land
7,7
43,60
0 -
- -
- -
- -
- 7,7
43,60
0 Bu
ilding
s 55
,663,6
13
- -
- 4,6
09,69
8 -
- (2
,315,4
86)
- 57
,957,8
25
Park
Facil
ities
7,196
,615
- -
(154
,042_
2,9
15,63
0 -
- (4
21,02
9)
- 9,5
37,17
4 Inf
rastr
uctur
e 36
,564,8
08
- -
- 10
,049,4
90
- -
(8,21
9,935
) -
38,39
4,363
Ot
her E
quipm
ent
42,06
2 17
,034
- (1
1,600
) -
- -
(10,6
10)
- 36
,886
Wor
k in P
rogr
ess
21,71
6,413
24
,286,0
00
- -
(17,5
74,81
8)
- -
- (1
07,22
6)
28,32
0,369
Pl
ant a
nd M
achin
ery
11,42
3,857
27
2,998
10
,170,6
75
(55,1
46)
- (5
,284,9
96)
(1,61
1,788
) (3
31,29
4)
- 14
,584,3
06
Maint
enan
ce E
quipm
ent
126,0
00
81,40
8 -
(7,55
5)
- -
- (3
5,000
) -
164,8
53
Secu
rity E
quipm
ent
228,8
42
- -
- -
- -
(59,7
32)
- 16
9,110
Mo
tor V
ehicl
es
4,658
,743
1,730
,199
- (3
09,99
3)
- -
(911
) (7
66,71
5)
(81,8
60)
5,229
,383
Offic
e Equ
ipmen
t 53
0,877
19
6,339
-
- -
- -
(173
,001)
(1
,534)
55
2,681
Co
mpute
r Equ
ipmen
t 48
9,581
44
9,738
-
(2,69
4)
- -
- (3
64,43
3)
(12,6
82)
559,5
10
Furn
iture
and F
ixtur
es
285,1
97
25,70
0 -
(228
) -
- -
(145
,496)
-
165,1
73
Mino
r Ass
ets
- 20
6,604
-
- -
- -
(206
,604)
-
- TO
TAL
146,6
70,20
8 27
,266,0
20
10,17
0,675
(5
41,25
8)
- -
(1,61
2,779
) (1
3,049
,335
(203
,302)
16
3,415
,233
11.
PROP
ERTY
, LAN
D AN
D EQ
UIPM
ENT
(con
tinue
d)
Reco
ncilia
tion
of P
rope
rty, P
lant a
nd E
quip
men
t – 30
June
2015
124
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
(R
egist
ratio
n num
ber E
C126
) An
nual
Finan
cial S
tatem
ents
for th
e Yea
r End
ed 30
June
2016
NO
TES
TO T
HE A
NNUA
L FI
NANC
IAL
STAT
EMEN
TS
20
16
R
2015
Re
stat
ed R
Op
enin
g ba
lance
Ad
ditio
n Ot
her C
hang
es
and
Move
men
ts
Tran
sfer
s De
prec
iatio
n Im
pairm
ent
Prio
r Yea
r Ad
just
men
t To
tal
Land
7,7
43,60
0
-
-
-
-
-
- 7,7
43,60
0 Bu
ilding
s 50
,644,6
50
- -
5,963
,253
(2,05
8,028
) (7
,740)
1,1
21,47
8 55
,663,6
13
Park
Facil
ities
4,304
,967
- -
3,330
,948
(439
,300)
-
- 7,1
96,61
5 Inf
rastr
uctur
e 42
,473,9
48
- -
7,493
,487
(13,9
73,39
3)
- 57
0,766
36
,564,8
08
Othe
r Equ
ipmen
t 47
,286
24,68
7 -
(1
2,028
)
-
(17,8
83)
42,06
2 W
ork i
n Pro
gres
s 13
,799,0
76
26,04
1,138
-
(16,7
87,68
8)
-
-
(1,33
6,113
) 21
,716,4
13
Plan
t and
Mac
hiner
y 13
,050,5
76
- -
- (1
,491,3
81)
(152
,757)
17
,419
11,42
3,857
Ma
inten
ance
Equ
ipmen
t 15
9,522
-
(1,84
1)
- (3
1,681
)
-
- 12
6,000
Se
curity
Equ
ipmen
t 31
0,980
-
-
-
(67,9
00)
- (1
4,238
) 22
8,842
Mo
tor V
ehicl
es
5,446
,652
- -
- (7
46,61
0)
(42,4
46)
1,147
4,6
58,74
3 Of
fice E
quipm
ent
485,5
43
192,7
32
1,974
-
(149
,368)
-
(4)
830,8
77
Comp
uter E
quipm
ent
640,7
80
312,8
14
22,25
4
-
(379
,869)
-
(106
,398)
48
9,581
Fu
rnitu
re an
d Fixt
ures
41
8,431
11
,087
-
-
(144
,341)
-
20
285,1
97
Mino
r Ass
ets
- 84
,708
(22,3
87)
- (6
2,321
)
-
-
-
TOTA
L 13
9,526
,011
26,66
7,166
-
- (1
9,556
,220)
(2
02,94
3)
236,1
94
146,6
70,20
8 Pl
edge
d as
Sec
urity
Inc
luded
in pl
ant a
nd m
achin
ery a
re le
ased
asse
ts wi
th the
carry
ing am
ount
of R1
4 217
732 (
2015
– R1
1 230
589)
Th
e lea
sed a
ssets
are h
eld as
a se
curity
by th
e fina
ncier
. Inc
luded
in th
e Infr
astru
cture
is an
amou
nt for
Land
fill S
ite w
ith a
carry
ing va
lue of
R16
0 870
(201
5 – R
162 6
54)
125
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
12. HERITAGE ASSETS 2016 2015
Cost
Accumulated Impairment
losses
Carrying value
Cost
Accumulated Impairment
losses
Carrying value
Historical Monuments 3 - 3 3 - 3 Reconciliation of Heritage Assets - 30 June 2016 Opening balance Total Historical Monuments 3 3
Opening balance
Prior Year Adjustment Total
Historical Monuments 2 1 3 All the municipality's heritage assets are held under a freehold interest and no heritage asset have been pledged as security for any liabilities of the municipality. The heritage assets comprise of the Dick King Memorial Site, a Fingo Milkwood Tree and Fort Peddie Tower Complex. These are not income generating assets and shown on the face of the statement of financial position at a nominal value of R1 each. No impairment losses have been recognised on the heritage assets of the municipality at the reporting date. These heritage assets have not been revalued due to them not generating any economic benefit for the municipality as a result valuing the assets will not yield any economic benefit for the municipality as the costs of valuing are higher than the benefit derived from these assets.
126
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
13. FINANCE LEASE OBLIGATION Minimum lease payments due
- within one year 8.609,460 5,082,222 - in second to fifth year inclusive 8,609,460 3,388,150 17,218,920 8,470,372 Less: Future Finance Charges (5,437,108) (1,173.517) 11,781,812 7,296,855 Present Value of Minimum Lease Payments Due - within one year 4,761,551 4,121,498 - in second to fifth year inclusive 7,020,261 3,175,357 11,781,812 7,296,855 Non-Current Liablities 7,020,261 3,175,357 Current Liabilities 4.761,551 4,121,498 11,781,812 7,296,855 It is the municipality's policy to lease certain plant under a finance lease
The municipality's obligations under finance leases are secured by the lessor's charge over the leased assets with a carrying value of R 14 217 732 (2015 - R 11 230 589). The lease term is 3 years at a fixed borrowing rate of 9.25% linked to prime rate prevalent at the inception of the lease on 01 July 2015. Leases have fixed repayment terms. No arrangements have been entered into for contingent rent. 14. PAYABLES FROM EXCHANGE TRANSACTIONS
Trade Payables 19,781,207 16,614,932Accrued Bonus 2,474,905 1,050,097Accrued Leave Pay 3,012,453 2,483,282Retentions 931,940 571,877 26,200,505 20,720,188 Included in trade and other payables is a balance for Amathole District Municipality amounting to R 15 020 192 (2015 – R 20 712 806). 15. UNSPENT CONDITIONAL GRANTS There are no unspent conditional grants in the current and prior year.
16. PAYABLES FROM NON-EXCHANGE TRANSACTIONS
Unallocated Deposit 1,000,100 1,000.100
Receivables with Credit Balances 850,612 1.235.275 1,850,712 2,235,375 Unallocated deposit refers to funds which the Municipality received in the 2012/13 financial period but could not allocate as the source of the funds nor their purpose could not be established. To date, the purpose of the funds has not been ascertained although the source was found to be the Department of Roads.
127
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
(R
egist
ratio
n num
ber E
C126
) An
nual
Finan
cial S
tatem
ents
for th
e Yea
r End
ed 30
June
2016
NO
TES
TO T
HE A
NNUA
L FI
NANC
IAL
STAT
EMEN
TS
20
16
R
2015
Re
stat
ed R
17. P
ROVI
SION
S
Reco
ncilia
tion
of P
rovis
ions
– 30
June
2016
Op
enin
g Ba
lance
Ad
ditio
ns
Utilis
ed d
urin
g th
e yea
r Ch
ange
in
disc
ount
fact
or
Tota
l
Prov
ision
for R
ehab
ilitati
on of
Land
fill S
ites
118,8
11
- -
3,420
18
5,231
Pr
ovisi
on fo
r Lon
g Ser
vice A
ward
s
2,3
09,00
0 62
6,000
(2
72,00
0)
- 2,6
63,00
0
2,490
,811
626,0
00
(272
,000)
3,4
20
2,848
,231
Reco
ncilia
tion
of P
rovis
ions
– 30
June
2016
Op
enin
g Ba
lance
Ad
ditio
ns d
urin
g th
e yea
r Ut
ilised
dur
ing
the y
ear
Actu
al Ga
ins
Chan
ge in
di
scou
nt fa
ctor
Ad
just
men
t to
open
ing
liabi
lity
Tota
l
Prov
ision
for R
ehab
ilitati
on of
Land
fill S
ites
178,4
66
- -
- 3,3
45
- 18
1,811
Pr
ovisi
on fo
r Lon
g Ser
vice A
ward
s 1,8
46,72
4 45
8,000
(2
78,00
0)
(191
,000)
-
473,2
76
2,309
,000
2,0
25,19
0 45
8,000
(2
78,00
0)
(191
,000)
3,3
45
473,2
76
2,490
,811
Reha
bilit
atio
n of
Lan
dfill
Site
s Pro
visio
n Th
e Pro
vision
for R
ehab
ilitati
on of
Land
fill S
ites r
elates
to th
e leg
al ob
ligati
on to
reha
bilita
te lan
dfill s
ites u
sed f
or w
aste
disp
osal.
It is
calcu
lated
as th
e pre
sent
value
of th
e futu
re ob
ligati
on. T
he am
ount
for th
e pr
ovisi
on w
as ad
justed
in ac
cord
ance
with
the r
epor
t pro
duce
d by q
ualifi
ed en
ginee
rs fro
m the
Dep
artm
ent o
f Loc
al Go
vern
ment.
128
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
17. PROVISIONS (continued) Long Service Award Provision The Long Service Award is payable after every 5, 10, 15, 20 25 years of continuous service. The provision is an estimate of the amounts likely to be paid based on an actuarial valuation performed at the reporting date. The actuarial valuation of the long service awards accrued liability was carried out by ZAQ Consultants and Actuaries. The assumptions used in the valuation are outlined below: Key Assumptions 1. Salary increase rate of 6%. 2. The mortality rate of SA 85 - 90. 3. Normal retirement age of 65 years. 4. The discount rate used was yield curve as at 30 June 2016 as supplied by the Johannesburg Stock Exchange 18. ACCUMULATED SURPLUS Included in the accumulated suprlus is an amount of R 2 624 709 which relates to transactions that were posted against the Accumulated Surplus account in the current year of assessment. These include amounts that should have been transacted in the prior years into their respective income and expense accounts. These include and are not limited to the following: - Billings not raised in prior years, - Correction of errors on invoices. 19. SERVICE CHARGES Refuse Removal 571,929 535,518 20. LICENCES AND PERMITS
Drivers Licence 1,501,622 1,528.213 Learners Licence 137,228 147,348 1,638,850 1,675,561 21. RENTAL OF FACILITIES AND EQUIPMENT
Land and Halls
Various Rentals 185,495 221,196 Facilities and Equipment
Billboards 7,433 3,878 192,928 225,074 At the end of the financial year, the properties were generating monthly income of R 17 989 (2015 - R 15 266).
129
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
22. OTHER REVENUE Tender Fees 108,828 119,954 Sundry Income 67,421 19,346 Photocopies 650 - Building Plan Fees 61,860 25,439 Insurance Claim for Loss of Property, Plant and Equipment 30,396 43,779 269,155 208,518 Sundry Income includes income from Cemetery Fees and Commission Collection. 23. INTEREST EARNED - OUTSTANDING DEBTORS
Interest Earned - Outstanding Debtors 3,277,506 2,436.854 24. INTEREST REVENUE
Interest on Investments 1,255,184 820,414 25. PROPERTY RATES
Gross Property Rates 18,946,302 12,932,176 Less Rebates (1,809,226) (2,210,339) 17,137,076 10,721,837 Valuations
Residential 320,508,301 320,508,301 Commercial 84,489,000 84,489,000 State 228,507,387 228,507,387 Municipal 84,174,808 84,174,808 Small Holdings and Farms 46,010,000 46,010,000 Place Of Worship 2,396,000 2,396,000 Farms Non-Agricultural 13,711,801 13,711,801 Vacant Land 7,817,718 7,817,718 Game Hunting 6,300,000 6,300,000 793,915,015 793,915,015 Valuations on land and buildings are performed every 4 years. The last general valuation came into effect on 1 July 2013. Interim valuations are processed on an annual basis to take into account changes in individual property values due to alterations and subdivisions. Rates applied to property valuations to determine assessment rates were established by the Council on various usage categories as per the municipality's rates policy. These rate tariffs were published and can be inspected at the municipality's registered address. Rebates of 43% (2015 43%) are granted to residential and state property owners. The new general valuation will be implemented on 01 July 2017.
130
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
26. GOVERNMENT GRANTS Equitable Share 82,854,000 71,805,000 Expanded Public Works Programme 1,000,000 1,000,000 Municipal Infrastructure Grant 23,484,000 27,454,055 Financial Management Grant 1,875,000 1,800,000 Municipal Systems Improvement Grant 930.000 934,000 National Sport and Recreation Grant - 3,161,006 Library Grant 200,000 200,000 110,343,000 106,354,061 Conditional and Unconditional Grants
Included in the above are the following grants and subsidies received - - Conditional Grants Received 27,289,000 34,349,061 Unconditional Grants Received 83,054,000 72,005,000 110,343,000 106,354,061 Equitable Share
In terms of Section 227 of the Constitution, this grant is used la enable the municipality to provide basic services and perform functions allocated to it The Equitable Share Grant also provides funding for the municipality to deliver free basic services to poor households and to subsidise the cost of administration and other core services for the municipality. Expanded Public Works Programme Current period receipts 1,000,000 1,000,000 Conditions met - transferred to revenue (1,000,000) (1,000,000) The grant was received from National Roads and Public Works.
- -
The grant was used for stipends for unemployed youths. Municipal Infrastructure Grant Balance unspent at beginning of period - 5,571,055 Current period receipts 23,484,000 22,755,000 Conditions met- transferred to revenue (23,484,000) (27,454,055) Prior year adjustment - (872,000) - - The grant was received from National Treasury. The grant was used for construction of community halls and extension of access roads.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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26. GOVERNMENT GRANTS (continued)
Financial Management Grant
Current period receipts 1,875,000 1,800,000 Conditions met - transferred to revenue (1,875,000) (1,800,000) - -
The grant was received from National Treasury. This grant was used to pay stipends for Financial Management Interns and Budget and Treasury Office related expenditure. Municipal Systems Improvement Grant
Current period receipts 930,000 934,000 Conditions met - transferred to revenue (930,000) (934,000) - - The grant was received from Provincial Co-operative Governance and Traditional Affairs.
The grant was used to pay for public participation activities and for the maintenance of systems.
Library Grant
Receipts 200,000 200,000 Conditions met - transferred to revenue (200,000) (200,000) - - The grant was received from the Department of Sport, Recreation, Arts and Culture,
This grant was used to support the maintenance of the library.
National Sport and Recreation Grant
Current period receipts - 3,161,006 Conditions met - transferred to revenue - (3,161,006) - - The grant was received from National Sports and Recreation for the building of sportsfields for communities
Integrated National Electrification Programme
Current-year receipts 4,364,000 2,697,000 Contribution made to households (4,364,000) (2,697,000) - - This is a grant n-kind received from National Treasury for Electrification of Household by Eskom Eskom does the work on behalf of the municipality and transfers directly to the beneficiary, no payments are made by the municipality nor receipts of cash are directed to the municipality. 27. OTHER TRANSFER REVENUE
CETA 2,060,146 59,363
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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28. EMPLOYEE RELATED COSTS
Acting Allowances 500.093 1,494.364 Annual Bonus 3,547 476 2,237,015 Cellphone Allowance 346,587 247,507 UIF 258,106 236,454 Basic Salaries 31,511,768 30,105,993 Housing Allowances 110,457 40,152 Gratuity 4,605 - Medical Aid Contributions 1,891,968 1,577,826 Pension Fund Contributions 4,666,807 4.170,670 Long Service Bonus 462,225 326,247 Subsistence and Travel 3,023,747 1,525,938 SALGA Levies 15,457 15,584 Overtime 296,462 232,274 Redemption of Leave 749,950 838,295 Shift Allowance 19,173 - SDL 391,922 381,930 47,796,803 43,430,249 The amounts below have been included in the above note
Remuneration of Municipal Manager
Basic Salary 1,105,380 589,357 Backpay 37,380 - SDL 11,473 7,722 UIF 1,785 1,041 Travel Expenses 15,917 182,836 1,171,935 780,956 Remuneration of Chief Finance Officer
Basic Salary 552,691 358,000 Travel Expenses 227,710 246,012 SDL 9,153 5,745 UIF 1,785 1,190 Cellphone Allowance 26,285 19,200 Backpay 31,150 - Non-Pensionable Allowance 156,948 - 1,005,722 630,147 Remuneration of Executive Manager: Corporate Services
Basic Salary 772,236 954,190 Backpay 48,063 Travel Expenses 154,758 SDL 9,130 2,871 UIF 1,785 1,785 Medical Aid - 15,702 985,972 974,548 28. EMPLOYEE RELATED COSTS (continued) Remuneration of Executive Manager: Technical Services
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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2015 Restated
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Basic Salary 639,150 178,000Back Pay 31,150 -Travel Expenses 332,683 48 000SDL 8,604 2 871UIF 1,785 595Cellphone Allowance 63,000 24,000Pension and Gratuity - 46,694 1,076,372 300,160 Remuneration of Executive Acting Manager: Community Services
Basic Salary
394,009 385,868
Travel Expenses 66,889 62,291SDL 6,299 2,914UIF 1,785 1,223Pension 68,937 31,495Acting Allowance 143,671 345,922Housing and Cellphone Allowance 19,207 106,637 700,797 936,350 29. REMUNERATION OF COUNCILLORS
Mayor
791 263
743,363
Speaker 647.136 601,266Chief Whip 255,514 334,940MPAC 320,710 315,892Public Relations 1,369,897 1,286,717Other Councillors 4,373.817 3,941,705 7,758,337 7,223,883 The Remuneration of Councillors is based on the upper limit as per the Government Gazette. The Mayor and Speaker each have the use of a separate Council owned vehicle, with a designated driver for the Mayor for official duties, and are provided with an office and secretarial support at the cost of the Council. There were no in-kind benefits declared nor received by other Councillors. 30. DEPRECIATION AND AMORTISATION
Property, Plant and Equipment
13,049,335
19,556,220
Property, Plant and Equipment Adjustment - 113,655 Intangible Assets 284,903 305,862 13,334,238 19,975,737 The depreciation for 2015 was adjusted with an increase of R 113 655 resulting to the restated amount of R 19 975 737. This adjustment is included in the Prior Period Error note disclosure on note 39.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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31. IMPAIRMENT OF ASSETS Property, Plant and Equipment
203,302
202,943
During the year, items of property, plant and equipment were impaired due to loss and damage of assets. The recoverable amount of the assets impaired is zero together with the fair value less cost to sell which was found to be zero.
Property, Plant and Equipment Adjustment
-
9,038
During the previous year, items of property, plant and equipment were impaired due to loss and damage of assets. The recoverable amount of the assets impaired is zero together with the fair value less cost to sell which was found to be zero.
Intangible Assets
114,743
-
During the year, items of intangible assets were impaired as no future economic benefits that could be derived from the assets. The value in use of the assets impaired is zero together with the fair value less cost to sell which was found to be zero.
318,045 211,981 The main classes of assets affected by impairment losses are. Motor Vehicles, Office Equipment, Computer Equipment and Computer Software.
32. FINANCE COSTS
Finance Lease
3,652,463
1,497,383
Interest on Long Service Bonus - 181,000 Late Payment of Suppliers 22,675 3,943 3,675,138 1,682,326 33. DEBT IMPAIRMENT
Debt Impairment 1,963,245 1,887,912 Debt impairment is an assessment of the amounts that will not be recovered from the debtors, based on the municipal ty's policy. 34. REPAIRS AND MAINTENANCE Repairs and Maintenance -Infrastructure 732,441 49,847 Repairs and Maintenance -Motor Vehicles 553,436 552,627 Repairs and Maintenance -Buildings 273,527 91,675 Repairs and Maintenance - Park Facilities 11,096 12,887 Repairs and Maintenance -Office Equipment 689,128 2,992 Repairs and Maintenance - Other Equipment 1,551,379 615,262 3,811,007 1,325,290
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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35. OTHER EXPENDITURE Accommodation Expenses
2,150,413
1,589,780
Advertising 540,623 578,955 Agriculture 339,407 624,737 Audit Committee Expenses 227,842 340,958 Audit Fees 4,133,775 2,205,149 Auditors Remuneration - 9,650 Bank Charges 84,292 77,047 Books and Publications 52,794 89,822 Catering 264,729 308,392 Computer Expenses 67,287 117,096 Conferences and Seminars 124,102 95,255 Consultation and Professional Fees 6,947,308 4,444,606 Consumables 163,085 186,103 Electricity 2,896,161 2,717,387 Employee Assistance Programme 145,920 125,454 Entertainment 83,729 98,497 Fuel and Oil 876,992 1,258,085 Health and Safety Equipment 291,039 694,668 Hire of Equipment 3,691,460 12,828 1DP Reviewal 315,780 204,906 Legal Expenses 2,795,988 1,202,113 Life Savour Hire 179,458 260,302 Motor Vehicle Expenses 88,136 162,465 Miscellaneous Expenses 2,352,662 856,844 Printing and Stationery 361,575 360,993 Programmes 2,545,379 2,054,237 Public Participation 272,418 375,095 Refuse 146,144 142,920 Royalties and License Fees - 200,570 SPU 607,176 710,165 Subscriptions and Membership Fees 18,864 396,500 Telephone 705,029 692,835 Tourism Development 312,229 297,785 Training 934,007 693,894 Travel Local 34,751 444,704 Uniforms 251,870 304,203 Valuation Costs 11,520 - Water Municipal Use 5,124,182 5,285,159 Ward Committee Expenses 1,708,000 131,583 41,846,126 30,351,742
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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36. CASH FLOWS FROM OPERATING ACTIVITIES
Surplus for the year 16,956,825 18,206,044 Adjustments for: - - Depreciation and Amortisation 13,334,238 19,975,737 Impairment of Assets 318,045 211,981 Re-measurement of Long Service Bonus - (191,000) Debt Impairment 1,963,245 1,887,192 Loss on Disposal of Assets 224,883 - Movement in Accrued Bonus 1,424,808 211,647 Movement in Long-Service Bonus 354,000 444,276 Movement on Accrued Leave Pay 529,171 485,212 Interest on Long-Service Bonus - 181,000 Movements in Operating Lease Asset 26,048 (88,280) Movements in Provision for Rehabilitation of Landfill Sites 3,420 3,345 Current Service Costs - 458,000 Changes in working capital: - - VAT Receivable 492,636 (323,879) Receivables from Exchange Transactions (5,116,082) (709,667) Receivables from Non-ExchangeTransactions (7,539,338) (3,163,499) Payables from Exchange Transactions 3,166,275 (11,071,819) Retentions 360,063 (1,076,258) Payables from Nan-Exchange Transactions (384,663) (284,816) Unspent Conditional Grants - (5,571,054) 26,113,574 19,584,162 37. COMMITMENTS
Authorised Capital Expenditure
Already contracted for but not provided for: Property. Plant and Equipment 31,346,162 8,096,930 Intangible Assets 259,136 - 31,605,298 8,096,930 This committed expenditure relates to Property, Plant and Equipment and Intangible Assets and will be financed by Municipal Grants. Operating Lease Asset Minimum lease payments receivable: - within one year 119,124 159,608 - in second to fifth year inclusive 621,269 622,401 - later than five years 1,160,750 1,278,742 1,901,143 2,060,751 Certain of the municipality's equipment is held to generate rental income. Rental of land is subject to various escalation rates as per the lease agreements on an ongoing basis. Lease agreements are cancellable and have terms from 3 to 30 years. There are no contingent rents receivable.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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38. CONTINGENCIES Contingencies arise from pending litigation on contractual disputes and damage claims. As the conclusion of the process is dependent on the setting of the dates by the respective courts, the timing of the economic outflow is therefore uncertain. Dlelanga Trading CC vs Ngqushwa Local Municipality - A claim by Dlelanga Trading CC based on a dispute for services rendered. Nosizwe Madlingozi obo Sesona Manyathi vs Ngqushwa Local Municipality - A claim by Nosizwe Madlingozi obo Sesona Manyathi for damages sustained by a minor on the municipal owned sports field. In this matter, the municipal insurers have been notified. Masincedisane vs Ngqushwa Local Municipality - A claim by Masincedisane 9999 CC based on alleged breach of contract. Contingent Liabilities
The table below summarises the potential financial impact of the law suits:
R Dlelanga Trading CC vs Ngqushwa Local Municipality (Dispute for services rendered) 770 970 Nosizwe Madlingozi obo Sesona Manyathi vs Ngqushwa Local Municipality (Damages sustained) 1,502,180 Masincedisane vs Ngqushwa Local Municipality (Alleged breach of contract) 61.582 2,334,732 39. PRIOR PERIOD ERRORS During the year the following errors were discovered in both the annual financial statements submitted in the prior year and the financial accounting system. These errors have been corrected retrospectively through restatements of prior year through journals in the financial accounting system and through correcting the misrepresented prior year column on the annual financial statements. OPERATING LEASE ASSET (LIABILITY) AND RENTAL OF FACILITIES AND EQUIPMENT. The straight lining of the lease in the prior year was done incorrectly. Therefore the error was corrected in the current year. VAT RECEIVABLE: The amount reflected in the annual financial statements did not agree with the statement from SARS and the correction was done to agree the annual financial statements with SARS. RECEIVABLES FROM EXCHANGE TRANSACTIONS: The error was a result of a non-allocation of receipts to the customers account but were incorrectly allocated to payables from exchange transactions. This error was corrected by allocating the receipts to the customers account RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS: There was incorrect mapping of receivables with credit balances which were mapped under receivables and also payables with debit balances which were mapped in payables. These were corrected through mapping of accounts to the correct line item. Furthermore incorrect billing was done in the prior year and this has since been corrected. INVESTMENT PROPERTY: There were properties that were incorrectly included in the investment property and should have been derecognised in the prior year. The error was corrected through restating the comparative.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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39. PRIOR PERIOD ERRORS (continued) PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION The allocation of deprecation was overstated and the figures did not agree with the asset register. Furthermore the general ledger did not agree to the amounts reflected on the financial statements. There were completed projects which were not capitalised from Work - in - Progress to Infrastructure or Buildings. This error was corrected by agreeing the asset register to the annual financial statements and capitalising completed projects. HERITAGE ASSETS: A heritage asset was erroneously classified under property, plant and equipment and was since reclassified to heritage assets and a reversal of the depreciation charge on the property plant and equipment had occurred. PAYABLES FROM EXCHANGE TRANSACTIONS and REPAIRS AND MAINTENANCE: Expenses relating to repairs and maintenance were incurred but were only paid after year end, these were not accrued for therefore this correction was to accrue for these expenses. The water accrual was incorrectly stated in the prior year and was since corrected through restatement of the prior year. UNSPENT GRANTS AND INCOME FROM GOVERNMENT GRANTS. The library grant was incorrectly accounted for as an unspent conditional grant and not receipted directly to income, an adjustment of the amount not spent as at year-end was then transferred to income. FINES AND PENALTIES: The fines were understated in the prior year and this error was corrected through restatement of prior year balances. EMPLOYEE RELATED COSTS: The cost of acting allowances was overstated in the prior year due to incorrect application of the acting allowance policy. The error has since been corrected through restatement of the prior year. Furthermore there was incorrect mapping that had occurred, these amounts were since correctly mapped to the correct line item on the financial statements. REMUNERATION OF COUNCILLORS: The amount per the annual financial statements did not agree to the VIP Payroll report resulting in an overstatement. This has since been corrected through restatement of the prior year. Furthermore, there was incorrect mapping that had occurred and these amounts have since been correctly mapped to the correct line item on the financial statements. IMPAIRMENT OF ASSETS: The impairment of assets was included in the depreciation and amortisation and not separately disclosed in the prior year, DEBT IMPAIRMENT: The total impairment was provided for, instead of the movement between prior year and current year. This correction was made in the financial accounting system to correctly reflect the movement of the total impairment. OTHER EXPENDITURE. The error occurred in the annual financial statements due to the mapping of the accounts under incorrect line items and were incorrectly processed in the general ledger. This correction was done through correct mapping on the annual financial statements and an adjustments of the amount not included. ADJUSTMENT INCORRECTLY STATED: An amount of R 396 909 was incorrectly included in the statement of changes in net assets and this amount has since been removed from the statement. CASHFLOW STATEMENT: The cashflow statement could not be recomputed due to not being able to trace the numbers. Therefore the prior year cashflow statement was re-done completely. The correction of the error(s) resulted in adjustments as follows:
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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39. PRIOR PERIOD ERRORS (continued) Previously
stated Reclassification
of Accounts Correction of
error Restated STATEMENT OF FINANCIAL POSITION CURRENT ASSETS
Operating Lease Asset 4 27,047 - 66,603 93,650 VAT Receivable 5 8,514,817 - (4,056,282) 4,458,535 Receivables from Exchange Transactions 6 2,688,444 - 23.473 2,711,917 Receivables from Non-Exchange Transactions 7 11,847,192 - 1,674 856 13,522,048 23,077,500 - (2,291,350) 20,786,150 NON-CURRENT ASSETS Investment Property 10 37,976,900 - (25,000) 37,951,900 Property, Plant and Equipment 11 146,434,014 - 236.194 146,670,208 Heritage Assets 12 2 - 1 3 184,410,916 - 211,195 184,622,111 CURRENT LIABILITIES
Payables from Exchange Transactions 14 35,289,551 - (14,569,363) 20,720,188 Unspent Conditional Grants 15 53,285 (53,285) 35,342,836 - (14,622,648) 20,720,188
NET ASSETS
Accumulated Surplus 161,520,487 - 12,542,493 174.062.980 161,520,487 - 12,542,493 174,062,980 STATEMENT OF FINANCIAL PERFORMANCE
REVENUE REVENUE FROM EXCHANGE TRANSACTIONS Rental of Facilities and Equipment 21 131,424 - 93,650 225,074 Government Grants 26 106,300,775 53,286 106,354,061 Fines and Penalties 146,941 586,008 732,949 Total Revenue 106,579,140 732,944 107,312.084 Expenditure
Employee Related Costs 28 44,968 112 (526,182) (1,011,681) 43..130,249 Remuneration of Councillors 29 8,169 214 530,959 (1,476,290) 7,223,883 Depreciation and Amortisation 30 20,065.022 (202,943) 113,658 19,975 737 Impairment of Assets 31 202,943 9,038 211.981 Finance Costs 32 1,501 .326 - 181,000 1.682 326 Debt Impairment 33 12,668,222 - (10,780,310) 1,887,912 Repairs and Maintenance 34 957,132 37,557 330,601 1,325.290 Other Expenditure 35 30,638,770 (42,334) (244,694) 30,351,742 Total Expenditure 118.967,798 - 112.878.6781 106,089,120 Remeasurement of Long-Service Bonus - - (191,000) (191,000) Adjustments incorrectly stated in 201312014 - - (396,909) (396,909) TOTAL ADJUSTMENTS - - (1,650,738) (1,650,738)
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
39. PRIOR PERIOD ERRORS (continued) CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 CASH FLOW FROM OPERATING ACTIVITIES
Billed Services 11,861,655 - (3,797,115) 8,064,540 Other Services 59.363 - 2,907,264 2,966,627 Payments - Payments to Employees (45,330,885) - (6,464,382) (51,795,267) Payments to Suppliers (40.949.262) - 1,195,430 (39,753,832) Impairment of Assets (10,515,064) - 10,515,064 CASH FLOW FROM INVESTING ACTIVITIES Purchase of Property, Plant and Equipment 11 (22,315,174) - (4,351,992) (26,667,166) Proceeds from Insurance Claim for Loss of Property. Plant and Equipment
22 - - 43,779 43,779
40. RISK MANAGEMENT
Liquidity risk
Liquidity risk is the risk that the municipality will not be able to meet its obligations as they fall due. The municipality's approach to managing the liquidity risk is to ensure that sufficient liquidity is available to meet its liabilities when they fall due. without incurring unacceptable losses or risking damage to the municipality's reputation. The municipality manages liquidity risk through an ongoing review of future commitments and grant receipts. Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored. Interest rate risk Balances with banks, deposits and all call and current accounts attract interest at rates that vary with South African prime rate. The municipality's policy is to manage interest rate risk so that fluctuations in variable rates do not have a material impact on the surplus / deficit. The municipality's income and operating cash flows are substantially independent of changes in market interest rates due to the short term nature of interest bearing assets. Surplus funds are invested with banks for fixed terms on fixed interest rates not exceeding one year. For details refer to note 8. Any change in interest rates will not have any impact on the accumulated surplus of the municipality. At period end financial assets exposed to interest rate risk were as follows Cash and Cash Equivalents - R 1 200 807 (2015 - R 163 631)
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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40. RISK MANAGEMENT (continued) Credit risk Credit risk is the risk of financial loss to the municipality if customers or counterparties to financial instruments fail to meet their contractual obligations and arises principally from the municipality's receivables, and cash and cash equivalents. The municipality only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. Receivables are amounts owing by consumers and are presented net of impairment losses. Receivables comprise a widespread customer base. Management evaluated credit risk relating to these customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the group of customers, taking into account their financial position, past experience and other factors Financial instruments exposed to credit risk at current period end were as follows. Financial instrument
Receivables from Exchange Transactions 7,827,999 2,711,917Receivables from Non-Exchange Transactions 21,095,865 13,067,673Cash and Cash Equivalents 1,200,807 163,631Finance Lease Obligation 11,781,812 7,296,855Provisions 2,848,231 2,490,811Payables from Exchange Transactions 26,200,505 20,720,188Payables from Non-Exchange transactions 1,850,712 2,235,375 41. GOING CONCERN
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that the municipality will continue to receive grants from National and Provincial Governments as well as continue to levy rates and charge for refuse collection. The proceeds are presumed to be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
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42. EVENTS AFTER THE REPORTING DATE Due to the municipal elections that occurred on 03 August 2016. a new council has been appointed to the municipality. The names of the members of the recently appointed executive council are as follows Fulani, N.B. (Ward Councillor) Gwavu, S. (PR Councillor) Gxasheka, N.V. (PR Councillor) Gxasheka, N.C. (PR Councillor) Jako, N.M. (PR Councillor) Kolisi, L. (Ward Councillor) Lawu, N. (Ward Councillor) Madlingozi, N.C. (Ward Councillor) Magingxa, N.E. (PR Councillor) Maneli, S.S. (PR Councillor) Moyeni, L.H. (Ward Councillor) Mpoli, N.P. (Ward Councillor) Mquqo, N. (Ward Councillor) Mtati, N. (Ward Councillor) Ncanywa, D. (Ward Councillor) Nduneni, Z.R. (PR Councillor) Phumaphi, F. (PR Councillor) Sikweyiya, T.T. (Ward Councillor) Sitole, P. (Ward Councillor) Siwisa, M.T. (PR Councillor) Taylor, R.C. (PR Councillor) The new traditional leaders are as follows: Goni, A. (Prince) Ngqondi, N. (Princess) Njokweni, Z.P. (Chief) Zitshu, G.L. (Prince) As prescribed in circular 2/2013 on Redetermination of Municipal Boundaries and Circular 2/2014 on Delimitation of Municipal Boundaries for the 2016 Local Government Elections, public consultation sessions were held both by the municipality and the Demarcation board, the outcome of which resulted in the villages of Jubisa, Oaga, Masele, Tamara, Dubu Tsolo, Cwecweni, Mani and Twecu demarcated out of the jurisdiction of Ngqushwa and was deemed to be under the jurisdiction of Buffalo City Metropolitan Municipality as at 3rd August 2016.
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
R
43. UNAUTHORISED EXPENDITURE Details of Unauthorised Expenditure
Remuneration for Councillors 119,337 101,779Depreciation and Amortisation 3,902,238 11,411,547Loss on Disposal of Assets 824,833 Finance Costs 3,675,138 1,682,326Employee Related Costs - 3,401,197Debt Impairment - 6,034,575lmpairment of Assets 318,045 8,839,591 22,631,424
2016 2015Opening balance as previously reported 50,669,691 28,887,536Written off by Council for previous years (22,450,424) Restated Balance 28,219,267 28,887,536Unauthorised expenditure for the year 8,839,591 22,631,424Written off by Council (2,341,029) (849,269) 34,717,829 50,669,691 44. FRUITLESS AND WASTEFUL EXPENDITURE
Fruitless and wasteful expenditure for current year
112,265 34,831
Certified as irrecoverable by Council (97,397) (34,831) 14,868 - Details of Fruitless and Wasteful Expenditure
Interest charged by Auditor General of South Africa 19,751 22,765Interest charged by Telkom 2,366 359Interest charged by Prodiba - 92Interest charged by Eskom 11,083 11.615SARS penalties 79,065 - 112,265 34,831 The above incidents have been taken to Council for consideration.
45. IRREGULAR EXPENDITURE
2016 2015Opening balance as previously reported 59,499,000 -Identified through the audit in the prior year - 28,148,415 59,499,000 28,148,415Add: Irregular Expenditure - current year 23,089,635 8,128.310Amount written off by Council -Audit (40,415,928) (8,128,310)Amount written off by Council - Incurred in current year (1,060,920) Additional irregular identified in the current year relating to prior year - 31,350,585 41,111,787 59,499,000
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NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
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2015 Restated
R
45. IRREGULAR EXPENDITURE (continued) Details of irregular expenditure – current year Proper Supply Chain Management processes not followed 21,090,867 Awards to person in state institutions 29,735 Awards to employee with interest 8,500 Sole service provider in the area 1,471,209 Contract amount exceeded 489,324 23,089,635 Details of irregular expenditure identified in the current year relating to prior year Proper Supply Chain Management processes not followed 31,350,585
46 DEVIATIONS FROM SUPPLY CHAIN MANAGEMENT REGULATIONS Paragraph 12(1)(d)(i) of Government gazette No. 27636 issued o 30 May 2005 states that a supply chain management policy must provide for the procurement of goods and services by way of a competitive bidding process. Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement process in certain circumstances, provided that he records the reasons for any deviations and reports them to the next meeting of the and includes a note to the annual financial statements. The incident below were procured during the financial year under review and the process followed deviation from the provisions of 12(1)(d)(i) as stated above. The reasons for these deviations were documented and reported to Council who considered them and the accounting officer subsequently approved the deviations from the normal supply chain management regulations:
Incidents Co-sourcing unit for internal audit 3,302,000 Hire, repair and servicing of vehicles 319,009 LED consultant 200,000 Legal services 1,546,536 Municipal Finance Management Programme 305,000 Procurement of fuel and oil 1,201,048 Security services 1,405,000 Deviations below R200 000 871,231 9,149,824
47. ADDITIONAL DISCLOSURE IN TERMS OF THE MUNICIPAL FINANCE MANAGEMENT ACT NO. 56 OF 2003
Contributions to SALGA Current year subscription / fee 15,457 15,584 Amount paid – current year (15,457) (15,584) - -
145
NGQUSHWA LOCAL MUNICIPALITY (Registration number EC126) Annual Financial Statements for the Year Ended 30 June 2016 NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2016
R
2015 Restated
R
47. ADDITIONAL DISCLOSURE IN TERMS OF THE MUNICIPAL FINANCE MANAGEMENT ACT NO 56 OF 2003
AUDIT FEES Opening balance 888,896 695,082 Current year subscription 4,133,775 2,205,149 Amount paid - current year (5,022,671) (2,011,335) - 888,896 PAYE, SDL AND UIF
Opening balance (260,623) 3,489,271 Current year subscriptions 8,780,552 8,598,685 Amount paid - current year (7,488,935) (11,397,993) Correction of misallocations (1,657,602) (950,586) (626,608) (260,623) PENSION AND MEDICAL AID DEDUCTIONS
Opening balance 768,295 5,887,958 Raising for current year 11,438,446 - Amount paid - current year (10,894,990) - Amount paid - previous year (903,142) - Correction of misallocations (336,259) (5,119,663) 72,350 768,295 COUNCILLOR'S ARREAR CONSUMER ACCOUNTS
No councillors had balances in excess of 90 days in the year under review.
146
Report of the auditor-general to the Eastern Cape Provincial legislature and the council on the Ngqushwa local Municipality
Report on the financial statements
Introduction
1. I have audited the financial statements of the Ngqushwa Local Municipality set out on pages ... to ... ,
which comprise the statement of financial position as at 30 June 2016, the statement of financial
performance, statement of changes in net assets and cash flow statement and the statement of
comparison of budget and actual amounts for the year then ended, as well as the notes, comprising a
summary of significant accounting policies and other explanatory information.
Accounting officer's responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of these financial
statements in accordance with South African Standards of Generally Recognised Accounting Practice
(SA Standards of GRAP) and the requirements of the Municipal Finance Management Act of South
Africa, 2003 (Act No. 56 of 2003) (MFMA) and Division of Revenue Act of South Africa, 2015 (Act No. 1
of 2015) (DoRA), and for such internal control as the accounting officer determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor-general's responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted
my audit in accordance with International Standards on Auditing. Those standards require that I comply
with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
148
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
qualified audit opinion.
Basis for qualified opinion
Corresponding figures
6. During 2014-15 the municipality did not have adequate systems to maintain accurate records of trade
payable for goods and services received but not yet paid. Therefore not all trade payables were accounted
for. As a result trade payables as disclosed in note 14 and expenditure as disclosed in the statement of
financial performance are understated by R2,5 million. It was impracticable for me to determine the full
extent of the understatement in these accounts.
7. My audit opinion on the financial statements for the period ended 30 June 2015 was modified accordingly.
My opinion on the current period's financial statements is also modified because of possible effects of
these matters on the comparability of the current period's figures.
Aggregation of immaterial uncorrected misstatements in corresponding figures
8. The financial statements as a whole were materially misstated due to the cumulative effect of numerous
individually immaterial uncorrected misstatements in the corresponding figures for the following elements
making up the statement of financial position:
• Receivables from non-exchange transactions were overstated by R942 866
9. In addition, I was unable to obtain sufficient, appropriate audit evidence regarding amounts disclosed
for:
• Value Added Tax (VAT) Receivable of R1,2 million
10. My audit opinion on the financial statements for the period ended 30 June 2015 was modified accordingly.
My opinion on the current period's financial statements is also modified because of possible effects of
these matters on the comparability of the current period's figures.
149
Qualified opinion
11. In my opinion, except for the possible effects of the matters described in the basis for qualified opinion
paragraphs, the financial statements present fairly, in all material respects, the financial position of the
Ngqushwa Local Municipality as at 30 June 2016 and its financial performance and cash flows for the
year then ended, in accordance with SA Standards of GRAP and the requirements of the MFMA and
DoRA.
Emphasis of matters
12. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Irregular expenditure
13. As disclosed in note 45 to the financial statements, irregular expenditure amounting to R23,1 million
(2015: R59,5 million) has been incurred in the current year due to the supply chain management (SCM)
processes not being followed.
Unauthorised expenditure
14. As disclosed in note 43 to the financial statements, unauthorised expenditure amounting to R8,8 million
(2015: R22,6 million) has been incurred in the current year due to overspending on the budget.
Restatement of corresponding figures
15. As disclosed in note 39 to the financial statements, the corresponding figures for 30 June 2015 have been
restated as a result of errors discovered during 30 June 2016 in the financial statements of the municipality
at, and for the year ended, 30 June 2015.
Material impairments
16. As disclosed in note 33 to the financial statements, material impairments to the amount of R2 million were
incurred as a result of a write-off of irrecoverable trade debtors.
Additional matter
Unaudited disclosure notes
17. In terms of section 125(2)(e) of the MFMA the municipality is required to disclose particulars of non-
compliance with the MFMA. This disclosure requirement did not form part of the audit of the financial
statements and accordingly I do not express an opinion thereon.
150
Report on other legal and regulatory requirements
18. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general notice
issued in terms thereof, I have a responsibility to report findings on the reported performance information
against predetermined objectives of selected development priorities presented in the annual performance
report, compliance with legislation and internal control. The objective of my tests was to identify reportable
findings as described under each subheading but not to gather evidence to express assurance on these
matters. Accordingly, I do not express an opinion or conclusion on these matters.
Predetermined objectives
19. I performed procedures to obtain evidence about the usefulness and reliability of the reported
performance information of the following selected development priorities presented in the annual
performance report of the municipality for the year ended 30 June 2016:
• Development priority 1: Service Delivery and Infrastructure Development on pages x to x
• Development priority 2: Local Economic Development on pages x to x
20. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
21. I evaluated the usefulness of the reported performance information to determine whether it was presented
in accordance with the National Treasury's annual reporting principles and whether the reported
performance was consistent with the planned development priorities. I further performed tests to
determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound
and relevant, as required by the National Treasury's Framework for managing programme performance
information (FMPPI).
22. I assessed the reliability of the reported performance information to determine whether it was valid,
accurate and complete.
23. The material findings in respect of the selected development priorities are as follows:
Service delivery and infrastructure development and Local economic development
Usefulness of reported performance information
24. I did not identify any material findings on the usefulness of the reported performance information for the
following development priorities:
• Development priority 1: Service Delivery and Infrastructure Development on pages x to x
151
• Development priority 2: Local Economic Development on pages x to x
Reliability of reported performance information
25. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance
information to ensure reliable reporting of actual achievements against planned objectives, indicators and
targets. I was unable to obtain the information and explanations I considered necessary to satisfy myself
as to the reliability of the reported performance information for both selected development priorities. This
was as result of limitations placed on the scope of my work due to the fact that the municipality could not
provide sufficient appropriate evidence in support of the reported performance information and the
auditee's records not permitting the application of alternative audit procedures.
Additional matters
26. I draw attention to the following matters:
Achievement of planned targets
27. Refer to the annual performance report on pages x to x; x to x for information on the achievement of planned
targets for the year. This information should be considered in the context of the material findings
expressed on the reliability of the reported performance information in paragraph 26 of this report.
Compliance with legislation
28. I performed procedures to obtain evidence that the municipality had complied with applicable legislation
regarding financial matters, financial management and other related matters. My material findings on
compliance with specific matters in key legislation, as set out in the general notice issued in terms of the
PAA, are as follows:
Annual report and annual financial statements
29. The financial statements submitted for auditing were not prepared in all material respects in accordance
with the requirements of section 122 of the MFMA. Material misstatements of non-current assets, current
assets, liabilities, revenue, expenditure and disclosure items identified by the auditors in the submitted
financial statements were subsequently corrected, but the uncorrected material misstatements resulted
in the financial statements receiving a qualified audit opinion.
Expenditure management
30. Money owed by the municipality was not always paid within 30 days, as required by section 65(2)(e) of
the MFMA.
152
31. Reasonable steps were not taken to prevent unauthorised, irregular and fruitless and wasteful
expenditure, as required by section 62(1)(d) of the MFMA.
Asset management
32. An effective system of internal control for assets was not in place, as required by section 63(2)(c) of the
MFMA.
Procurement and contract management
33. Goods and services with a transaction value of below R200 000 were procured without obtaining the
required price quotations, in contravention of by SCM regulation 17(a) and (c).
34. The performance of contractors or providers was not monitored on a monthly basis, as required by
section 116(2)(b) of the MFMA.
Human resources management
35. The competencies of the chief financial officer and head of supply chain were not assessed in a timely
manner in order to identify and address gaps in competency levels as required by Municipal Regulations
on Minimum Competency Levels 13.
36. The municipality did not submit a report on compliance with prescribed competency levels to the National
Treasury and relevant provincial treasury as required by the Municipal Regulations on Minimum
Competency Levels 14(2)(a).
37. The annual report of the municipality did not reflect information on compliance with prescribed minimum
competencies as required by the Municipal Regulations on Minimum Competency Levels 14(2)(b).
Internal control
38. I considered internal control relevant to my audit of the financial statements, annual performance report
and compliance with legislation. The matters reported below are limited to the significant internal control
deficiencies that resulted in the basis for qualified opinion, the findings on the annual performance report
and the findings on compliance with legislation included in this report.
Leadership
39. Although leadership has set the correct tone in the municipality it has not been fully effective due to the
number of historical issues that are being addressed in financial reporting, predetermined objectives and
compliance with laws and regulations.
153
Financial and performance management
40. Management has not effectively implemented daily and monthly controls as designed for the
municipality's business processes, resulting in:
• significant misstatements not being detected or corrected in the financial statements
• a lack of supporting evidence being available to support predetermined objectives
• non-compliance with laws and regulations
Governance
41. The municipality has a functional internal audit and audit committee, however, the internal control
weaknesses identified by external and internal auditors have not been adequately addressed by
management.
East London
21 December 2016
154
2015
/16
AU
DIT
AC
TIO
N P
LAN
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
02
1 Re
cord
s Rev
iew
(Qua
rter 4
): Su
ppor
ting d
ocum
ents
not s
ubmi
tted f
or au
dit
purp
oses
(RFI
29 of
20
16)
Infor
matio
n req
ueste
d fro
m RF
I 29
issu
ed on
the 2
9th of
Aug
ust
2016
was
not s
ubmi
tted f
or
audit
purp
oses
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
imple
ment
prop
er re
cord
keep
ing sy
stems
in a
timely
man
ner t
o ens
ure t
hat
comp
lete,
relev
ant a
nd ac
cura
te inf
orma
tion i
s acc
essib
le an
d av
ailab
le to
supp
ort fi
nanc
ial an
d pe
rform
ance
repo
rting.
Corp
orate
Se
rvice
s N
Mazw
ayi
Mana
ger A
dmin:
30
-Jun-
17
03
2 Re
ceiva
bles:
Gros
s re
ceiva
bles f
rom
exch
ange
tran
sacti
ons
in the
AFS
do no
t ag
ree t
o the
amou
nt pe
r age
analy
sis.
The g
ross
rece
ivable
s fro
m ex
chan
ge tr
ansa
ction
s dis
close
d in t
he A
FS do
not
agre
e to t
he am
ount
per a
ge
analy
sis (R
1 10
3 521
.40)
Finan
cial
Debto
rs Mo
nthly
reco
ncilia
tions
sh
ould
be pe
rform
ed an
d rev
iewd
by se
nior o
fficial
to en
sure
ther
e ar
e no e
rrors
or m
istak
es th
at ha
ve
been
proc
esse
d thr
ough
the
acco
untin
g sys
tem. A
dequ
ate
revie
ws sh
ould
be pe
rform
ed on
the
finan
cial s
tatem
ents
to en
sure
tha
t figu
res d
isclos
ed ar
e su
ppor
ted w
ith ac
cura
te inf
orma
tion.
prefa
rable
by
some
one i
ndep
ende
nt of
the
prep
arati
on pr
oces
s.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Rev
enue
1)
Rec
on G
L vs
Age
An
alysis
31
July
2016
to
date.
2) R
econ
GV
vs M
onthl
y Ra
ising
Mo
nthly
31
July
2016
to
date.
04
3 SC
M: T
ende
r do
cume
nts no
t su
bmitte
d for
audit
pu
rpos
es (R
FI’s
10 of
20
16)
Infor
matio
n rela
ting t
o poin
t b) o
f RF
I 33 w
as no
t sub
mitte
d by t
he
due d
ate of
the R
FI.
Inter
nal
Contr
ols
Comm
unica
tion t
o the
Aud
itor
Gene
ral (A
G) fo
r req
ueste
d inf
orma
tion s
hould
alwa
ys go
thr
ough
the d
esign
ated A
udit
Contr
oller
to en
sure
that
all
comm
unica
tion t
o the
AG
is ev
idenc
ed.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: N
Mba
du
Posit
ion: I
ntern
al Au
dit
Mana
ger
Ongo
ing
05
4 Pr
ocur
emen
t and
Co
ntrac
t Ma
nage
ment:
Bidd
er
that s
core
d the
hig
hest
point
s was
not
appo
inted
(Exc
.22)
Whe
n rec
alcula
ting t
he po
ints
for th
e pro
cure
ment
of cle
aning
ma
terial
, we n
oted t
hat th
e Ndo
li Tr
ading
scor
ed th
e high
est
point
s and
was
not a
ppoin
ted
for th
e con
tract.
(R 55
000.
)
Inter
nal
Contr
ols
Devia
tions
to no
rmal
proc
urem
ent
proc
esse
s as d
ocum
ented
in th
e mu
nicipa
lity's
Supp
ly Ch
ain
Mana
geme
nt po
licy,
shou
ld be
ap
prov
ed by
the d
esign
ated l
evel
of au
thority
and c
aptur
ed tim
ely in
a d
eviat
ions r
egist
er. F
urthe
rmor
e, su
ch de
viatio
ns ar
e to b
e su
ppor
ted by
relev
ant
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
156
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
docu
menta
tion t
o sub
stanti
ate th
e pr
opos
ed co
urse
of ac
tion.
05
5
Proc
urem
ent a
nd
Contr
act
Mana
geme
nt: T
hree
Qu
otatio
n not
obtai
ned
(Exc
.20)A
udit f
inding
Thre
e quo
tation
s wer
e not
obtai
ned f
or th
e pro
cure
ment
of the
good
s and
servi
ce an
d the
re
ason
s for
thes
e dev
iation
s we
re no
t rec
orde
d and
ap
prov
ed by
the C
FO or
an
offici
al de
signa
ted by
the C
FO.
Comp
lianc
e De
viatio
ns to
norm
al pr
ocur
emen
t pr
oces
ses a
s doc
umen
ted in
the
munic
ipality
's Su
pply
Chain
Ma
nage
ment
polic
y, sh
ould
be
appr
oved
by th
e des
ignate
d lev
el of
autho
rity an
d cap
tured
timely
in
a dev
iation
s reg
ister
. The
SCM
Po
licy n
eeds
to be
upda
ted to
suit
the op
erati
onal
envir
onme
nt of
the
munic
ipality
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
05
6 Pr
ocur
emen
t and
Co
ntrac
t Ma
nage
ment:
Cov
er
Quoti
ng (E
xc.24
)
Thes
e ind
icate
manip
ulatio
n of
the “t
hree
quote
syste
m”
wher
eby m
ultipl
e quo
tation
s are
su
bmitte
d by t
he sa
me su
pplie
r or
by re
lated
supp
lier a
s if th
ere
were
inde
pend
ent q
uotes
Inter
nal
Contr
ols
The S
CM P
olicy
need
s to b
e up
dated
to su
it the
oper
ation
al en
viron
ment
of the
mun
icipa
lity
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
31
-Mar
-17
05
7 6.
Proc
urem
ent a
nd
Contr
act
Mana
geme
nt:
Supp
lier w
ith th
e low
est q
uote
not
Selec
ted (E
xc.26
)
The s
uppli
er w
ith th
e low
est
price
quote
was
not s
electe
d for
the
proc
urem
ent o
f ac
comm
odati
on. (
RR 15
000.)
Comp
lianc
e De
viatio
ns to
norm
al pr
ocur
emen
t pr
oces
ses a
s doc
umen
ted in
the
munic
ipality
's Su
pply
Chain
Ma
nage
ment
polic
y, sh
ould
be
appr
oved
by th
e des
ignate
d lev
el of
autho
rity an
d cap
tured
timely
in
a dev
iation
s reg
ister
. Fur
therm
ore,
such
devia
tions
are t
o be
supp
orted
by re
levan
t do
cume
ntatio
n to s
ubsta
ntiate
the
prop
osed
cour
se of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
05
8 7.
Proc
urem
ent a
nd
Contr
act
Mana
geme
nt: A
ward
s to
Supp
lier in
whic
h sp
ouse
has i
ntere
st (E
xc.29
)
awar
ds w
ere m
ade t
o Kyo
way
PTY
LTD
in wh
ich sp
ouse
of
emplo
yee (
Noluv
uko V
uba)
has
an in
teres
t. Eve
n tho
ugh t
he
emplo
yee d
eclar
ed th
e inte
rest,
the
decla
ratio
n for
m su
bmitte
d by
the s
uppli
er st
ated t
hat th
ere
is no
conn
ectio
n with
the
emplo
yee.
( R
82 62
0.00 )
Inter
nal
Contr
ols
SCM
Secti
on sh
ould
manta
in a
Datab
ase o
f all m
unici
pal o
fficial
s tha
t hav
e bus
iness
inter
est. T
he
said
datab
ase s
hould
be co
nsult
ed
ever
y tim
e an a
ward
is m
ade t
o a
supp
lier t
o ens
ure t
hat th
ere i
s no
confl
ict of
inter
est.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Jan-
17
05
9 Pr
ocur
emen
t and
Co
ntrac
t Th
e foll
owing
awar
ds w
ere
made
to su
pplie
rs in
which
Int
erna
l Co
ntrols
Ma
intain
a da
tabas
e of S
uppli
ers
who h
ave i
n the
past
subm
itted
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
31
-Jan-
17
157
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
mana
geme
nt: :
Awar
ds to
Sup
plier
in
which
partn
ers h
as
inter
est (
Exc.3
0)
partn
ers o
r ass
ociat
es of
em
ploye
es ha
ve an
inter
est a
nd
no de
clara
tions
wer
e sub
mitte
d by
thes
e emp
loyee
s.
(R
485 7
47 )
false
decla
ratio
ns an
d flag
such
su
pplie
rs on
the s
uppli
er da
tabas
e so
as to
ensu
re th
at qu
otatio
ns ar
e no
t acc
epted
from
thes
e ser
vice
prov
iders.
05
10
9.
Proc
urem
ent a
nd
Contr
act
Mana
geme
nt:
Supp
liers
in the
se
rvice
of ot
her s
tate
institu
tions
(Exc
.31)
The f
ollow
ing aw
ards
wer
e ma
de to
supp
liers
who a
re in
the
servi
ce of
othe
r stat
e ins
titutio
ns. (
R 5 2
92 32
2 )
Inter
nal
Contr
ols
Maint
ain a
datab
ase o
f Sup
plier
s wh
o hav
e in t
he pa
st su
bmitte
d fal
se de
clara
tions
and f
lag su
ch
supp
liers
on th
e sup
plier
datab
ase
so as
to en
sure
that
quota
tions
are
not a
ccep
ted fr
om th
ese s
ervic
e pr
ovide
rs.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
31
-Jan-
17
06
11
1. Au
dit C
ommi
ttee :
No
revie
w of
contr
ols
to en
sure
asse
ts ar
e sa
fegua
rded
(Exc
.1)
The a
udit c
ommi
ttee d
id no
t re
view
contr
ols to
ensu
re th
at as
sets
are s
afegu
arde
d. Ne
ither
is
there
evide
nce t
hat in
terna
l au
dit un
it rev
iewed
inter
nal
contr
ols ar
ound
safeg
uard
ing of
as
sets.
Inter
nal
Contr
ols
Revis
e the
Inter
nal A
udit a
nd A
udit
Comm
ittee's
repo
rt tem
plate
to inc
lude o
r allo
w for
repo
rting o
n the
eff
ectiv
enes
s of m
anag
emnt
contr
ols ar
ound
safeg
uard
ing of
as
sets.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Int
erna
l Aud
it Man
ager
31-
Mar-1
7
06
12
Audit
Com
mitte
e - N
o re
view
of fra
ud
prev
entio
n plan
(E
xc.2)
The a
udit c
ommi
ttee d
id no
t re
view
fraud
prev
entio
n plan
(2
015/1
6).
Inter
nal
Contr
ols
Audit
comm
ittee s
hould
proa
ctive
ly pe
rform
a re
view
of fra
ud
prev
entio
n plan
on a
n ann
ual
basis
to ad
dres
s any
frau
d risk
s tha
t may
arise
. Re
viewa
l of th
e Fra
ud P
reve
ntion
Pl
an sh
ould
be a
Stan
ding I
tem in
the
Age
nda o
f the 1
st Au
dit
Comm
ittee M
eetin
g ann
ually
.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: N
Mba
du
Posit
ion: I
ntern
al Au
dit
Mana
ger
30-Ju
n-17
06
13
Inter
nal C
ontro
l : W
eak C
ontro
l En
viron
ment
(Exc
.3)
Durin
g the
audit
of th
e eff
ectiv
enes
s of th
e inte
rnal
contr
ols, w
eakn
esse
s in t
he
contr
ol en
viron
ment
were
noted
.
Inter
nal
Contr
ols
Deve
lop, im
pleme
nt an
d mon
itor
an A
ction
Plan
to ad
dres
s all
inter
nal c
ontro
l wea
knes
s tha
t hav
e be
en id
ernti
fied t
hrou
gh th
e aud
it pr
oces
(Inte
rnal
and E
xtern
al).
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: N
Mba
du
Posit
ion: I
ntern
al Au
dit
Mana
ger
31-Ja
n-17
06
14
Plan
ning:
No
proc
edur
es to
iden
tify
subs
eque
nt ev
ents
(Exc
.4)
Munic
ipality
does
not h
ave
docu
mente
d pro
cess
es or
pr
oced
ures
in pl
ace t
o ide
ntify
subs
eque
nt ev
ents.
Inter
nal
Contr
ols
Mana
geme
nt to
deve
lop a
proc
edur
e man
ual fo
r the
ide
ntific
ation
and r
ecor
ding o
f su
bseq
uent
even
ts, re
lated
party
tra
nsac
tion a
nd ot
her M
ateria
l AFS
Di
sclos
ure N
otes
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
30-M
ar-1
7
158
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
06
15
Plan
ning :
Wea
k co
ntrol
envir
onme
nt (S
CM) (
Exc.8
)
Vario
us co
ntrol
weak
ness
wer
e no
ted in
SCM
durin
g the
pla
nning
phas
e of th
e Aud
it
Inter
nal
Contr
ols
Deve
lop, im
pleme
nt an
d mon
itor
an A
ction
Plan
to ad
dres
s all
inter
nal c
ontro
l wea
knes
s tha
t hav
e be
en id
ernti
fied t
hrou
gh th
e aud
it pr
oces
(Inte
rnal
and E
xtern
al) .
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: N
Mba
du
Posit
ion: I
ntern
al Au
dit
Mana
ger
31-Ja
n-17
06
16
Plan
ning -
Disc
losur
e :
Lack
of ef
fectiv
e int
erna
l con
trols
(Exc
.9)
The m
unici
pality
does
not h
ave
prop
er do
cume
nted,
appr
oved
an
d imp
lemen
ted pr
oced
ure
manu
al for
the f
ollow
ing
disclo
sure
items
: Co
nting
ent L
iabilit
ies, R
elated
pa
rties,
Fruit
less w
astef
ul,
irreg
ular a
nd un
autho
rised
ex
pend
iture
and C
ommi
tmen
ts
Inter
nal
Contr
ols
Mana
geme
nt to
deve
lop a
proc
edur
e man
ual fo
r the
ide
ntific
ation
and r
ecor
ding o
f su
bseq
uent
even
ts, re
lated
party
tra
nsac
tion a
nd ot
her M
ateria
l AFS
Di
sclos
ure N
otes
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
30-M
ar-1
7
06
17
Emplo
yee C
ost :
No
payro
ll rec
oncil
iation
be
twee
n VIP
and
Paste
l (Exc
.11)
Durin
g the
plan
ning s
tage i
t was
no
ted th
at no
reco
ncilia
tion
betw
een t
he (f
inanc
e) sy
stem
and V
IP (p
ayro
ll) sy
stem
done
for
the m
onth
of Fe
brua
ry 20
16.
Inter
nal
Contr
ols
Pay
roll s
ectio
n sho
uld pe
rform
mo
nthly
reco
ncilia
tions
betw
een
VIP
and P
astel
and t
hese
shou
ld be
revie
wed b
y the
Chie
f ac
coun
tant. B
oth th
e pre
pare
r and
re
viewe
r sho
uld si
gn th
e re
conc
iliatio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
31-M
ar-1
7
06
18
Jour
nals
: Lac
k of
effec
tive i
ntern
al co
ntrols
whe
n jou
rnals
ar
e pro
cess
ed
(Exc
.13)
Whil
st pe
rform
ing th
e un
derst
andin
g of th
e bus
iness
pr
oces
ses a
nd ris
k ass
essm
ent
proc
edur
es th
e foll
owing
contr
ol we
akne
sses
wer
e note
d.
1. No
revie
w of
journ
als
proc
esse
d in t
he sy
stem
is pe
rform
ed by
a se
nior o
fficial
. 2.
Jour
nals
are n
ot se
quen
tially
nu
mber
ed.
3. Th
ere i
s no d
ocum
ented
and
appr
oved
proc
edur
e man
ual
that g
over
ns jo
urna
ls
Inter
nal
Contr
ols
Jour
nals
shou
ld be
prep
ared
and
revie
wed b
y sen
ior of
ficial
s. Th
e jou
rnals
shou
ld ha
ve de
fined
fields
wh
ere t
he pr
epar
er, r
eview
er an
d au
thoris
er ar
e req
uired
to si
gn an
d da
te. A
proc
edur
e man
ual o
utlini
ng
the jo
urna
l pro
cess
shou
l be
deve
loped
and
comm
unica
ted to
all
relea
vant
staff i
n the
Fina
nce
depa
rtmen
t.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
30-M
ar-1
7
06
19
Bank
and c
ash:
Lette
r no
t sen
t to P
rovin
cial
treas
ury a
nd th
e Au
ditor
Gen
eral
South
Af
rica f
or ne
wly
The m
unici
pality
has n
ot su
bmitte
d a le
tter t
o the
Pr
ovinc
ial T
reas
ury a
nd th
e Au
ditor
Gen
eral
South
Afric
a to
Comp
lianc
e Ma
nage
ment
to su
bmit a
nnua
lly
befor
e the
star
t of a
finan
cial y
ear,
the na
me of
each
bank
whe
re th
e mu
nicipa
lity ho
lds a
bank
acco
unt,
and t
he ty
pe an
d num
ber o
f eac
h
Budg
et an
d Tr
easu
ry V
Make
dama
Bu
dget
& Re
portin
g Ma
nage
r Ju
n-17
159
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
open
ed ba
nk
acco
unts
(Exc
.14)
confi
rm ne
w ba
nk ac
coun
ts op
ened
in th
e cur
rent
year
. ac
coun
t as r
equir
ed by
MFM
A.
Lette
r to b
e sen
t dur
ing th
e mon
th of
June
each
year
to th
e Pr
ovinc
ial
Trea
sury
and t
he A
udito
r Gen
eral
South
Afric
a.
06
20
Plan
ning -
Pay
ables
: Re
tentio
n liab
ilities
not
corre
ctly a
ccou
nted
(Exc
.17)
Durin
g the
audit
of pa
yable
s it
was i
denti
fied t
hat r
etenti
ons
withh
eld ar
e not
in ac
cord
ance
wi
th the
appli
cable
requ
ireme
nts Fin
ancia
l Re
tentio
ns sh
ould
be ac
crued
wh
en in
voice
s are
supp
lied b
y su
pplie
rs an
d not
when
the p
rojec
t is
comp
leted
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
31-M
ar-1
7
07
21
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
) Irr
egula
r Exp
endit
ure
(Exc
.32)
The w
inning
prov
ider s
ubmi
tted
an or
igina
l/vali
d cer
tified
-copy
of
Tax C
leara
nce C
ertifi
cate
certif
ying t
he ta
x affa
irs of
that
perso
n to b
e in o
rder
or th
at su
itable
arra
ngem
ents
have
be
en m
ade w
ith S
ARS.
Al
terna
tively
the m
unici
pality
ob
taine
d the
tax c
leara
nce f
rom
SARS
. (PP
R 14
SCM
reg 1
3(b)
; SC
M re
g 43)
Inter
nal
Contr
ols
To st
rutin
ise al
l Ten
der f
iles f
rom
the 20
14/15
finan
cial y
ear t
o date
, to
ensu
re th
at all
nece
ssar
y aud
it tria
l doc
umen
ts ar
e file
d ac
cord
ingly
(i.e. T
ax C
leara
nces
, De
clara
tions
, BEE
Cer
tifica
tes,
etc).
A ch
eckli
st sh
ould
be
deve
loped
and i
mplem
ented
going
for
ward
to en
sure
that
these
are
maint
ained
and f
illed a
ccor
dingly
fro
m inc
eptio
n. An
y Dev
iation
s to
norm
al pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
07
22
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
) Irr
egula
r Exp
endit
ure
(Exc
.32)
Appli
cable
if fun
ction
ality
was
used
as an
evalu
ation
crite
rion:
On
ly ten
ders
which
achie
ved
the m
inimu
m qu
alifyi
ng sc
ore f
or
functi
onali
ty as
indic
ated i
n the
ten
der in
vitati
on w
ere r
egar
ded
as ac
cepta
ble te
nder
s and
ev
aluate
d fur
ther in
term
s of th
e pr
efere
nce p
oints.
(PPR
4(4)
)
Inter
nal
Contr
ols
To st
rutin
ise al
l Ten
der f
iles f
rom
the 20
14/15
finan
cial y
ear t
o date
, to
ensu
re th
at all
nece
ssar
y aud
it tria
l doc
umen
ts ar
e file
d ac
cord
ingly
(i.e. T
ax C
leara
nces
, De
clara
tions
, BEE
Cer
tifica
tes,
etc).
A ch
eckli
st sh
ould
be
deve
loped
and i
mplem
ented
going
for
ward
to en
sure
that
these
are
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
160
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
maint
ained
and f
illed a
ccor
dingly
fro
m inc
eptio
n. An
y Dev
iation
s to
norm
al pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
07
23
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
) Irr
egula
r Exp
endit
ure
(Exc
.32)
All te
nder
s whic
h ach
ieved
the
minim
um qu
alifyi
ng sc
ore f
or
functi
onali
ty we
re re
gard
ed as
ac
cepta
ble te
nder
s and
wer
e ev
aluate
d fur
ther in
term
s of th
e pr
efere
nce p
oints.
(PPR
4(5)
)
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
07
24
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
) Irr
egula
r Exp
endit
ure
(Exc
.32)
The c
ontra
ct wa
s awa
rded
to
the bi
dder
that
scor
ed th
e hig
hest
total
numb
er of
point
s. (P
PR 6(
5) &
11(5
))
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
07
25
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
)
If two
or m
ore t
ende
rs we
re
equa
l in to
tal po
ints,
the co
ntrac
t wa
s awa
rded
to th
e ten
der
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
161
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
Irreg
ular E
xpen
ditur
e (E
xc.32
) sc
oring
the h
ighes
t poin
ts for
B-
BBEE
. (PP
R 6(
5) &
11(5
)) Su
pply
Chain
Man
agem
ent p
olicy
, sh
ould
be ap
prov
ed by
the
desig
nated
leve
l of a
uthor
ity an
d ca
pture
d tim
ely in
a de
viatio
ns
regis
ter. F
urthe
rmor
e, su
ch
devia
tions
are t
o be s
uppo
rted b
y re
levan
t doc
umen
tation
to
subs
tantia
te the
prop
osed
cour
se
of ac
tion.
07
26
Pr
ocur
emen
t &
Contr
acts
Mana
geme
nt (B
ids)
Irreg
ular E
xpen
ditur
e (E
xc.32
)
Howe
ver,
when
func
tiona
lity is
pa
rt of
the ev
aluati
on pr
oces
s an
d two
or m
ore t
ende
rs ha
ve
scor
ed eq
ual p
oints
includ
ing
equa
l pre
feren
ce po
ints f
or B
-BB
EE, th
e con
tract
was
awar
ded t
o the
tend
er sc
oring
the
high
est s
core
for
functi
onali
ty.(P
PR 6(
5) &
11(5
))
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
07
27
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
) Irr
egula
r Exp
endit
ure
(Exc
.32)
Evalu
ation
and a
djudic
ation
cri
teria
appli
ed in
evalu
ating
and
adjud
icatin
g the
bids
are t
he
same
as th
ose i
ndica
ted in
the
origi
nal b
id do
cume
ntatio
ns.
(SCM
reg.
28(1
)(a)(i
))
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
07
28
Proc
urem
ent &
Co
ntrac
ts Ma
nage
ment
(Bids
) Irr
egula
r Exp
endit
ure
(Exc
.32)
If the
invit
ation
for b
ids
stipu
lated
90/10
prefe
renc
e po
int sy
stem
will b
e use
d and
all
bids r
eceiv
ed w
ere e
qual
or
below
R1 m
illion
the t
ende
r was
ca
ncell
ed an
d re-
adve
rtised
as
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
162
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
a 80/2
0 pre
feren
ce po
ints.(
PPR
8)
regis
ter. F
urthe
rmor
e, su
ch
devia
tions
are t
o be s
uppo
rted b
y re
levan
t doc
umen
tation
to
subs
tantia
te the
prop
osed
cour
se
of ac
tion.
07
29
Pr
ocur
emen
t &
Contr
act M
anag
emen
t (B
ids) U
neco
nomi
cal
(Exc
.33)
The p
rocu
reme
nt wa
s not
econ
omica
l - the
good
s/ se
rvice
s wer
e not
obtai
ned a
t a
reas
onab
le pr
ice. (
MFMA
sec
62(1
)(a) a
nd M
FMA
sec 9
5(a)
)
Inter
nal
Contr
ols
Any
Dev
iation
s to n
orma
l pr
ocur
emen
t pro
cess
es as
do
cume
nted i
n the
mun
icipa
lity's
Supp
ly Ch
ain M
anag
emen
t poli
cy,
shou
ld be
appr
oved
by th
e de
signa
ted le
vel o
f auth
ority
and
captu
red t
imely
in a
devia
tions
re
gister
. Fur
therm
ore,
such
de
viatio
ns ar
e to b
e sup
porte
d by
relev
ant d
ocum
entat
ion to
su
bstan
tiate
the pr
opos
ed co
urse
of
actio
n.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
08
30
Valua
tion R
oll:
Valua
tion r
oll is
not
displa
yed o
n the
mu
nicipa
lity's
webs
ite
(Exc
.41)
Per in
spec
tion o
f the N
gqus
hwa
Munic
ipality
's we
bsite
, co
nfirm
ed th
at the
mun
icipa
lity's
valua
tion r
oll is
not d
isplay
ed on
the
web
site.
Comp
lianc
e Ma
nage
ment
to en
sure
that
the
valua
tion r
oll is
uploa
ded a
nd
displa
yed o
n the
mun
icipa
lity's
webs
ite.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Esta
te NO
T FO
R BT
O
08
31
Rev
enue
from
ex
chan
ge
trans
actio
ns: D
irect
incom
e reg
ister
is no
t re
conc
iled t
o the
re
levan
t dire
ct inc
ome
vote
on a
month
ly ba
sis (E
xc.45
)
The r
egist
ers f
or ha
ll ren
tals a
nd
incom
e fro
m pu
blic t
oilets
are
not r
econ
ciled
to th
e dire
ct inc
ome v
ote on
a mo
nthly
basis
.
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
ensu
re th
at re
gister
s for
hall r
ental
s and
inc
ome f
rom
publi
c toil
ets ar
e re
conc
iled t
o the
dire
ct inc
ome
vote
on a
month
ly ba
sis.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Rev
enue
Mo
nthly
Reco
ns 31
Ju
ly 20
16 to
da
te
08
32
Reve
nue f
rom
exch
ange
tra
nsac
tions
: Bala
nce
of ha
ll hire
depo
sits
per r
egist
er is
not
reco
ncile
d mon
thly t
o the
gene
ral le
dger
(E
xc.46
)
The b
alanc
e of d
epos
its fo
r hall
hi r
e held
acco
rding
to th
e re
gister
of de
posit
s is n
ot re
conc
iled t
o the
gene
ral le
dger
on
a mo
nthly
basis
.
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
ensu
re th
at the
balan
ce of
depo
sits f
or ha
ll hire
he
ld ac
cord
ing to
the r
egist
er of
de
posit
s is r
econ
ciled
to th
e ge
nera
l ledg
er on
a mo
nthly
basis
.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Rev
enue
Mo
nthly
Reco
ns 31
Ju
ly 20
16 to
da
te
08
33
Rece
ivable
s fro
m ex
chan
ge tr
ansa
ction
: Du
ring t
he te
sting
of in
teres
t ea
rned
from
outst
andin
g Int
erna
l Co
ntrols
Ma
nage
ment
to ha
ve an
inter
est
reca
lculat
ion m
odule
embe
dded
in
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Rev
enue
W
ill inv
estig
ate
163
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
Inter
est o
n ou
tstan
ding
rece
ivable
s is
incom
plete
(Exc
.52)
debto
rs, no
ted th
at no
inter
est
was c
harg
ed on
Tra
nsne
t's
custo
mer a
ccou
nt (A
ccou
nt Nu
mber
: 100
0070
4). A
t the e
nd
of Ju
ne 20
16 ha
d the
follo
wing
ag
eing:
Paste
l evo
lution
to re
calcu
late
inter
est a
nd en
sure
accu
racy
and
comp
leten
ess t
here
of
09
34
Gove
rnme
nt gr
ants
and s
ubsid
ies: In
voice
no
t VAT
comp
liant
(Exc
.56)
Durin
g the
audit
, the f
ollow
ing
issue
s wer
e ide
ntifie
d in t
he
invoic
es pa
id by
the
munic
ipality
:
Inter
nal
Contr
ols
An in
voice
comp
liant
chec
klist
shou
ld be
deve
loped
and
imple
mente
d by E
xpen
ditur
e and
att
ache
d to e
ach p
ayme
nt vo
uche
r. Th
e che
cklis
t sho
uld be
comp
leted
by
a Ju
nior o
fficial
and s
igned
off
by a
Senio
r Offic
ial.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Exp
endit
ure
31-M
ar-1
7
12
35
Expe
nditu
re: G
oods
re
ceive
d note
not
attac
hed
Whil
st au
diting
repa
irs an
d ma
inten
ance
it wa
s note
d tha
t go
ods r
eceiv
ed no
te/
confi
rmati
on of
good
s and
se
rvice
s ren
dere
d for
the
follow
ing pa
ymen
ts wa
s not
subm
itted f
or au
dit pu
rpos
es
Finan
cial
Mana
geme
nt to
stamp
''Goo
ds an
d Se
rvice
s'' ha
ve be
en re
ceive
d on
the pa
ymen
t vou
cher
and /
invo
ice.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: N
Mhlo
ngo
Posit
ion:E
xpen
ditur
e Ma
nage
r
01-D
ec-1
6
12
36
Repa
irs an
d Ma
inten
ance
: Amo
unt
reco
gnise
d in t
he G
L do
es no
t agr
ee w
ith
the in
voice
amou
nt (E
xc.63
)
Whil
st au
diting
repa
irs an
d ma
inten
ance
it wa
s note
d tha
t the
follo
wing
paym
ents
were
ina
ccur
ately
reco
rded
in th
e ge
nera
l ledg
er.
Finan
cial
Mana
geme
nt sh
ould
ensu
re th
at the
re is
a re
view
of tra
nsac
tions
pr
oces
sed i
n the
gene
ral le
dger
to
ensu
re th
at the
y are
corre
ctly
class
ified.
The C
hief A
ccou
ntant
shou
ld re
gular
ly sc
an th
e Gen
eral
ledge
r to i
denti
fy po
ssibl
e om
ission
s or e
rrors.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Exp
endit
ure
01-D
ec-1
6
12
37
Repa
irs an
d Ma
inten
ance
: Ex
pend
iture
inc
orre
ctly c
lassif
ied
as
Repa
irs/m
ainten
ance
(E
xc.64
)
Whil
st au
diting
repa
irs an
d ma
inten
ance
it wa
s note
d tha
t the
follo
wing
paym
ents
were
inc
orre
ctly c
lassif
ied as
repa
irs
and m
ainten
ance
. [refe
r to
CoAF
12 of
2016
for d
etaile
d ex
cepti
ons]
Finan
cial
Mana
geme
nt sh
ould
ensu
re th
at the
re is
a re
view
of tra
nsac
tions
pr
oces
sed i
n the
gene
ral le
dger
to
ensu
re th
at the
y are
corre
ctly
class
ified.
The C
hief A
ccou
ntant
shou
ld re
gular
y sca
n the
Gen
eral
ledge
r to i
denti
fy ins
tance
s of
misc
lassif
icatio
ns.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
01-D
ec-1
6
15
38
Emplo
yee C
ost: N
o em
ploym
ent c
ontra
ct on
file (
Exc.3
8)
No em
ploym
ent c
ontra
cts on
file
for th
e foll
owing
emplo
yees
, the
refor
e was
unab
le to
confi
rm
wheth
er th
e noti
ce pe
riod
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
ensu
re a
prop
er do
cume
nt ma
nage
ment
and
filing
syste
m in
place
. Any
do
cume
ntatio
n req
ueste
d sho
uld
Corp
orate
Se
rvice
s N
Mazw
ayi
Name
: Mkh
useli
Mx
ekez
o Po
sition
: Hum
an
Reso
urce
s Man
ager
31-M
ar-1
7
164
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
stipu
lated
by th
e emp
loyer
on
the co
ntrac
t is in
acco
rdan
ce
with
pres
cripts
.
be si
gned
off o
n a se
para
te do
cume
nt re
gister
. A ch
eckli
st ou
tlining
the m
inimu
m do
cume
nts
to be
stor
ed in
a pe
rsonn
el file
sh
ould
be de
velop
ed an
d im
pleme
nted.
The c
heck
list is
to be
sig
ned o
ff by b
oth th
e pre
pare
r and
re
viewe
r 15
39
Em
ploye
e Cos
ts: S
taff
debt
not r
ecov
ered
(E
xc.39
)
Staff
debt
not r
ecov
ered
from
the
emplo
yee (
T Ms
i) Int
erna
l Co
ntrols
Ma
nage
ment
to ins
tigate
debt
reco
very
proc
edur
es an
d ens
ure
debts
are r
ecov
erab
le fro
m em
ploye
es. C
ost b
enefi
t exe
rcise
sh
ould
howe
ver b
e con
sider
ed. A
let
ter of
Dem
and s
hould
be is
sued
to
the em
ploye
e con
cern
ed.
Corp
orate
Se
rvice
s N
Mazw
ayi
Name
: Mkh
useli
Mx
ekez
o Po
sition
: Hum
an
Reso
urce
s Man
ager
31-M
ar-1
7
16
40
Proc
urem
ent a
nd
Contr
act
Mana
geme
nt:
Appli
catio
n of S
CM
Regu
lation
32
(Exc
.42)
The m
unici
pality
proc
ured
the
follow
ing co
ntacts
thro
ugh
appli
catio
n of s
ectio
n 32 o
f SCM
re
gulat
ion; h
owev
er th
ese
contr
acts
were
not v
alidly
pr
ocur
ed by
othe
r org
ans o
f the
state
as th
ey ha
ve re
sulte
d in
irreg
ulariti
es. (
R 8 7
94 28
2.00)
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
ensu
re th
at all
co
ntrac
ts pr
ocur
ed th
roug
h SCM
re
gulat
ion 32
are v
alidly
proc
ured
by
the o
ther o
rgan
s of th
e stat
e. A
confi
rmati
on Le
tter t
o tha
t effe
ct sh
ould
be so
ught.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Jan-
17
17
41
Asse
ts: S
tands
at
spor
ts fie
ld no
t Ca
pitali
sed
Durin
g Phy
sical
verifi
catio
n of
park
facilit
ies, w
e note
d tha
t sta
nds a
t the f
ollow
ing sp
orts
field
were
not a
ccou
nted f
or an
d de
prec
iated
sepa
ratel
y in f
ixed
asse
ts re
gister
.• Gl
enmo
re
spor
ts fie
ld • P
eddie
Spo
rt fie
ld.Ot
her s
ports
fields
may
als
o be i
mpac
ted an
d it w
ould
be ne
cess
ary t
o ree
xami
ne th
e wh
ole po
pulat
ion of
spor
ts fie
lds. L
ack o
f pro
per
asse
ssme
nt for
unbu
ndlin
g of
spor
ts fie
ld as
sets.
Depr
eciat
ion
for al
l spo
rts fie
ld mi
ght b
e ma
terial
ly mi
sstat
ed.
Finan
cial
Mana
geme
nt sh
ould
ensu
re th
at
an as
set c
ount
is pe
rform
ed
annu
ally a
nd th
e ass
ets re
gister
on
the sy
stem
is up
dated
. Ass
et re
gister
shou
ld be
sign
ed an
d da
ted as
evide
nce o
f wor
k don
e
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
2/28/2
017.
Half y
early
AF
S to
refle
ct co
rrect
asse
t inf
orma
tion
165
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
17
42
Asse
ts: B
uildin
gs no
t in
good
phys
ical
cond
ition
Durin
g phy
sical
verifi
catio
n of
asse
ts we
noted
that
the
follow
ing bu
ilding
s are
not in
go
od w
orkin
g con
dition
s and
we
re no
t teste
d for
impa
irmen
t ind
icator
s at th
e end
of th
e re
portin
g per
iod.
Finan
cial
Mana
geme
nt sh
ould
ensu
res t
hat
the as
sets
of the
mun
icipa
lity ar
e we
ll main
taine
d. Re
pairs
and
maint
enan
ce of
the a
ssets
shou
ld oc
cur a
t reg
ular in
terva
ls to
ensu
re
that th
e ass
ets ar
e fun
ction
ing
optim
ally t
hrou
ghou
t their
usefu
l liv
es. W
here
ther
e are
sign
s of
impa
irmen
t, man
agem
ent s
hould
re
vise t
he us
eful li
ves a
nd/ o
r re
sidua
l valu
es of
the a
ssets
to
ensu
re th
at as
sets
are c
arrie
d at
the co
rrect
carry
ing va
lues.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
2/28/2
017.
Half y
early
AF
S to
refle
ct co
rrect
asse
t inf
orma
tion
17
43
Ass
ets: U
nbun
dling
of
Asse
t Reg
ister
W
e rev
iewed
the v
aluati
on
repo
rt for
unbu
ndlin
g of a
ssets
re
gister
and n
oted t
hat th
e mu
nicipa
lity un
bund
led ro
ad
asse
ts ba
sed o
n the
ratio
of
30:70
for r
oad s
urfac
e and
road
str
uctur
e res
pecti
vely,
howe
ver
we co
uld no
t asc
ertai
n the
me
thodo
logy a
nd as
sump
tions
us
ed to
unbu
ndle
cost
for
Glen
more
spor
ts fie
ld in
to dif
feren
t com
pone
nts.
Finan
cial
Mana
geme
nt sh
ould
ensu
re th
at an
asse
t cou
nt is
perfo
rmed
an
nuall
y and
the a
ssets
regis
ter on
the
syste
m is
upda
ted. A
sset
regis
ter sh
ould
be si
gned
and
dated
as ev
idenc
e of w
ork d
one
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
2/28/2
017.
Half y
early
AF
S to
refle
ct co
rrect
asse
t inf
orma
tion
17
44
Ass
ets: A
ssets
re
cord
ed at
Zer
o Th
e mun
icipa
lity di
d not
revie
w an
d rev
ise th
e use
ful lif
e of th
e fol
lowing
acce
ss ro
ad an
d as
resu
lts th
ey w
ere f
ully
depr
eciat
ed an
d rec
orde
d at
zero
. This
is no
t con
sisten
t with
GR
AP st
anda
rd as
ther
e are
ec
onom
ic be
nefits
and s
ervic
e po
tentia
l der
iving
from
the u
se
of the
se ro
ads b
y the
co
mmun
ity m
embe
rs.
Finan
cial
Mana
geme
nt sh
ould
ensu
re th
at an
asse
t cou
nt is
perfo
rmed
an
nuall
y and
the a
ssets
regis
ter on
the
syste
m is
upda
ted. A
sset
regis
ter sh
ould
be si
gned
and
dated
as ev
idenc
e of w
ork d
one
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
28-F
eb-1
7
19
45
Gov
ernm
ent g
rants
an
d sub
sidies
: Am
ount
per t
he
expe
nditu
re ge
nera
l
The g
ener
al led
ger a
ccou
nt do
no
t agr
ee to
the r
ecalc
ulated
am
ount
and t
here
fore
Gove
rnme
nt gr
ant r
even
ue an
d
Finan
cial
Gran
ts re
conc
iliatio
ns sh
ould
be
perfo
rmed
on a
month
ly ba
sis to
en
sure
accu
racy
of th
e rec
orde
d inf
orma
tion
Budg
et an
d Tr
easu
ry V
Make
dama
Bu
dget
& Re
portin
g Ma
nage
r Mo
nthly
Reco
ns
166
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
ledge
r acc
ount
does
no
t agr
ee to
the
invoic
e amo
unt
(Exc
.90)
expe
nditu
re ha
s bee
n un
derst
ated b
y an e
xtrap
olated
am
ount
of (R
29 66
2.39)
20
46
VAT
rece
ivable
: Su
ppor
ting s
ched
ule
could
not b
e pro
vided
(E
xc.11
3)
sche
dule
could
not b
e pro
vided
to
supp
ort th
e VAT
rece
ivable
am
ounti
ng to
R46
2 295
.13
Inter
nal
Contr
ols
The A
ccou
ntant
(who
is in
contr
ol of
VAT
reco
ns),
Lulam
ile
Gway
iman
i, is r
espo
nsibl
e for
the
safek
eepin
g of a
ll VAT
supp
ortin
g do
cume
ntatio
n (Re
cons
, VAT
20
1's, S
ched
ules o
f Outs
tandin
g inv
oices
, ect)
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
01-Ju
l-16
20
47
VAT
Rece
ivable
: VAT
on
prior
year
invo
ices
not r
ecov
erab
le fro
m SA
RS (E
xc.10
8)
Invoic
es w
ith a
VAT
portio
n am
ounti
ng to
R1 0
36 90
0 (pr
ior
and c
urre
nt ye
ar in
voice
s) we
re
rejec
ted by
SAR
S as
a re
sult o
f no
t bein
g VAT
comp
liant
and
the m
unici
pality
can n
o lon
ger
claim
this
amou
nt fro
m SA
RS
(VAT
rece
ivable
not
reco
vera
ble)
Inter
nal
Contr
ols
mana
geme
nt to
perfo
rms o
ngoin
g ex
pend
iture
testi
ng to
iden
tify no
n-va
t com
plian
t invo
ices.
Chec
klist
for V
at Co
mplia
nt Inv
oices
be
imple
mente
d and
attac
hed t
o eve
ry pa
ymen
t vou
cher
. Che
cklis
t to be
sig
ned o
f by b
oth th
e pre
pare
r and
re
viwer
.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Exp
endit
ure
31-M
ar-1
7
21
48
Use o
f Con
sulta
nt -
Inter
nal C
ontro
l De
ficien
cies (
Exc.1
27) At
the t
ime o
f emp
loyme
nt of
the
cons
ultan
t the I
ntern
al Au
dit
Mana
ger a
nd in
terns
wer
e em
ploye
d. Th
ey ha
d the
skills
ne
cess
ary t
o per
form
inter
nal
audit
dutie
s. [O
HS]
Inter
nal
Contr
ols
Prior
to th
e app
ointm
ent o
f a
servi
ce pr
ovide
r to p
rovid
e co-
sour
cing s
ervic
es, a
thor
ough
skils
ga
p ana
lysis
shou
ld be
cond
ucted
an
d doc
umen
ted to
infor
m the
so
urcin
g of a
servi
ce pr
ovide
r and
a s
kills
trans
fere p
lan be
de
velop
ed, im
pleme
nted a
nd
monit
ored
.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: N
Mba
du
Posit
ion: I
ntern
al Au
dit
Mana
ger
31-M
ar-1
7
21
49
Use o
f Con
sulta
nt -
Inter
nal C
ontro
l De
ficien
cies (
Exc.1
27) Pe
r insp
ectio
n of th
e ter
ms of
re
feren
ce it
was n
oted t
hat th
e tra
nsfer
of sk
ill wa
s not
includ
ed. In
the c
urre
nt ye
ar, n
o ev
idenc
e of tr
ansfe
r of s
kills
and
less r
elian
ce on
the c
onsu
ltant
was n
oted.
[Arm
s Aud
it an
d Ri
sk S
olut
ion,
Cam
elsa]
Inter
nal
Contr
ols
Prior
to th
e app
ointm
ent o
f a
servi
ce pr
ovide
r to p
rovid
e co-
sour
cing s
ervic
es, a
thor
ough
skils
ga
p ana
lysis
shou
ld be
cond
ucted
an
d doc
umen
ted to
infor
m the
so
urcin
g of a
servi
ce pr
ovide
r and
a s
kills
trans
fere p
lan be
de
velop
ed, im
pleme
nted a
nd
monit
ored
.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
Outst
andin
g
167
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
21
50
Use o
f Con
sulta
nt -
Inter
nal C
ontro
l De
ficien
cies (
Exc.1
27) Pe
r insp
ectio
n of th
e con
tract
the re
spec
tive r
espo
nsibi
lities
of
the m
unici
pality
and t
he
cons
ultan
t wer
e not
clear
ly de
fined
. [Ar
ms A
udit
and
Risk
So
lutio
n, C
amels
a]
Inter
nal
Contr
ols
The m
inimu
m re
quire
ments
of
contr
act s
hould
be ad
here
d to
durin
g the
prep
arati
on of
ou
tsour
cing o
r co-
sour
cing
contr
acts
betw
een s
ervic
e pr
ovide
rs an
d the
mun
icipa
lity.
The r
oles a
nd re
spon
sibilit
ies of
bo
th pa
rties s
hould
be cl
early
de
fined
on th
e con
tract
as a
basis
of
meas
urme
nt of
perfo
rman
ce by
the
servi
ce pr
ovide
r. Up
on pr
epar
ation
of th
e con
tract
by
the de
signa
ted of
ficial
or U
nit, it
sh
ould
be ve
tted b
y a s
uitab
ly qu
alifie
d offic
ial (i.
e. Le
gal/c
orpo
rate
servi
ces).
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
Outst
andin
g
21
51
Use o
f Con
sulta
nts:
Inter
nal C
ontro
l De
ficien
cy (E
xc.12
6)
Thro
ugh e
nquir
y, it h
as be
en
deter
mine
d tha
t the m
unici
pality
do
es no
t hav
e a po
licy/s
trateg
y in
place
that
defin
es th
e main
pu
rpos
es fo
r app
ointin
g co
nsult
ants.
Inter
nal
Contr
ols
The m
unici
pality
shou
ld de
velop
a po
licy/s
trateg
y tha
t defi
nes t
he
main
purp
oses
for a
ppoin
ting
cons
ultan
ts.
The r
esult
ant p
olicy
/ stra
tegy
shou
ld be
revie
wed a
nd ap
prov
ed
by E
XCO
and e
ndor
sed f
or
adop
tion b
y Cou
ncil.
Corp
orate
Se
rvice
s/Bud
get
and T
reas
ury
V Ma
keda
ma/N
Ma
zway
i Na
me: M
khus
eli
Mxek
ezo
Posit
ion: H
uman
Re
sour
ces M
anag
er
31-M
ar-1
7
21
52
Use o
f Con
sulta
nts:
Inter
nal C
ontro
l De
ficien
cy (E
xc.12
6)
Per in
spec
tion o
f the p
rior y
ear
mana
geme
nt re
port,
the
follow
ing w
eakn
esse
s wer
e ide
ntifie
d:1.D
eficie
ncies
noted
in
the ap
point
ment
of co
nsult
ants
as th
e agr
eeme
nt did
not m
ake
prov
ision
for t
he su
fficien
t tra
nsfer
of sk
ills to
perm
anen
t fin
ance
staff
.
Inter
nal
Contr
ols
Prior
to th
e app
ointm
ent o
f a
servi
ce pr
ovide
r to p
rovid
e co-
sour
cing s
ervic
es, a
thor
ough
skils
ga
p ana
lysis
shou
ld be
cond
ucted
an
d doc
umen
ted to
infor
m the
so
urcin
g of a
servi
ce pr
ovide
r.The
ide
ntifie
d skil
ls ga
p sho
uld th
en be
tra
nslat
ed in
to a S
kills
Tran
sfer
Plan
to be
inco
rpor
ated i
n the
Se
rvice
Leve
l Agr
eeme
nt be
twee
n the
servi
ce pr
ovide
r and
the
munic
ipality
.
All D
epar
tmen
ts Al
l HOD
s Al
l Dep
artm
ents
Ongo
ing
168
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
21
53
Use o
f Con
sulta
nts:
Inter
nal C
ontro
l De
ficien
cy (E
xc.12
6)
2. Th
ere w
as a
lack o
f skil
ls tra
nsfer
and o
ver-r
elian
ce on
the
wor
k of c
onsu
ltants
. Ma
nage
ment
did no
t take
actio
n to
addr
ess t
he w
eakn
esse
s on
the us
e and
man
agem
ent o
f co
nsult
ants
For e
xamp
le, th
e pr
epar
ation
and m
ainten
ance
of
the fix
ed as
set r
egist
er th
e mu
nicipa
lity st
ill us
e the
co
nsult
ants,
the f
uncti
ons
relat
ing to
the p
repa
ratio
n of th
e fin
ancia
l stat
emen
ts all
sc
hedu
les ar
e still
done
by th
e co
nsult
ants,
the r
eview
of th
e AF
S ar
e still
done
by
cons
ultan
ts an
d add
itiona
l co
nsult
ants
has b
een a
ppoin
ted
for in
terna
l aud
it fun
ction
.
Inter
nal
Contr
ols
Prior
to th
e app
ointm
ent o
f a
servi
ce pr
ovide
r to p
rovid
e co-
sour
cing s
ervic
es, a
thor
ough
skils
ga
p ana
lysis
shou
ld be
cond
ucted
an
d doc
umen
ted to
infor
m the
so
urcin
g of a
servi
ce pr
ovide
r. Th
e ide
ntifie
d skil
ls ga
p sho
uld
then b
e tra
nslat
ed in
to a S
kills
Tran
sfer P
lan to
be in
corp
orate
d in
the S
ervic
e Lev
el Ag
reem
ent
betw
een t
he se
rvice
prov
ider a
nd
the m
unici
pality
.
All D
epar
tmen
ts Al
l HOD
s Al
l Dep
artm
ents
Ongo
ing
21
54
Use o
f Con
sulta
nts:
Inter
nal C
ontro
l De
ficien
cy (E
xc.12
6)
Thro
ugh d
iscus
sion i
t has
been
de
termi
ned,
mana
geme
nt do
es
not p
repa
re fo
rmal
repo
rts on
the
exten
t of w
ork p
erfor
med b
y co
nsult
ants,
also
ther
e is n
o ev
idenc
e tha
t this
has b
een
cons
idere
d as m
anag
emen
t has
no
t take
n acti
on to
redu
ce th
e ex
tent o
f wor
k per
forme
d by
cons
ultan
ts.
Inter
nal
Contr
ols
A St
anda
rdise
d rep
ort te
mplat
e sh
ould
be de
velop
ed an
d im
pleme
nted f
or re
portin
g on t
he
perfo
rman
ce of
Con
sulta
nts
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
31
-Jan-
16
21
55
Use o
f Con
sulta
nts:
Irreg
ular a
nd N
on
Comp
lianc
e (Ex
c.128
)
Per in
spec
tion o
f the t
erms
and
cond
itions
of th
e con
tract
enter
ed in
to by
partie
s, it h
as
been
noted
that
such
a cla
use
had n
ot be
en in
clude
d. [C
AMEL
SA an
d Ar
ms A
udit
and
RIsk
Sol
utio
n]SC
M re
quire
men
t not
com
plied
wi
th :-
The c
ontra
ct sti
pulat
es
the te
rms a
nd co
nditio
ns fo
r the
Inter
nal
Contr
ols
The m
inimu
m re
quire
ments
of
contr
act s
hould
be ad
here
d to
durin
g the
prep
arati
on of
ou
tsour
cing o
r co-
sour
cing
contr
acts
betw
een s
ervic
e pr
ovide
rs an
d the
mun
icipa
lity.
Upon
prep
arati
on of
the c
ontra
ct by
the
desig
nated
offic
ial or
Unit
, it
shou
ld be
vette
d by
a suit
ably
quali
fied o
fficial
.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Le
gal S
ervic
es
Ongo
ing
169
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
termi
natio
n of th
e con
tract
in the
ca
se of
non-
or
unde
rper
forma
nceM
FMA
sec
116(
1)(b
)(i)
21
56
Use o
f Con
sulta
nts:
Irreg
ular a
nd N
on
Comp
lianc
e (Ex
c.128
)
Per in
spec
tion o
f the t
erms
and
cond
itions
, the c
ontra
ct do
es no
t inc
lude a
pena
lty cl
ause
. [C
AMEL
SA an
d Ar
ms A
udit
and
RIsk
Sol
utio
n]
Note
: Nor
mall
y pen
alty
claus
es ar
e inc
lude
d in
the
Gene
ral C
ondi
tions
of
Cont
ract
(GCC
)
Inter
nal
Contr
ols
The m
inimu
m re
quire
ments
of
contr
act s
hould
be ad
here
d to
durin
g the
prep
arati
on of
ou
tsour
cing o
r co-
sour
cing
contr
acts
betw
een s
ervic
e pr
ovide
rs an
d the
mun
icipa
lity.
Upon
prep
arati
on of
the c
ontra
ct by
the
desig
nated
offic
ial or
Unit
, it
shou
ld be
vette
d by
a suit
ably
quali
fied o
fficial
.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Le
gal S
ervic
es
Ongo
ing
21
57
Use o
f Con
sulta
nts:
Irreg
ular a
nd N
on
Comp
lianc
e (Ex
c.128
)
The t
otal e
xpen
ditur
e as a
t 31
Octob
er 20
16 of
R3 1
37 81
3 ex
ceed
s the
contr
act v
alue o
f R2
200 0
00 by
R93
7 813
.00.
[CAM
ELSA
] SC
M re
quire
men
t not
co
mpl
ied w
ith :-
Th
e tota
l pay
ments
/expe
nditu
re
made
unde
r the
contr
act u
p to
date
does
not e
xcee
d the
or
igina
l con
tract
price
plus
any
furthe
r app
rove
d exte
nsion
s to
the co
ntrac
t. SC
M re
gulat
ion. 5
Inter
nal
Contr
ols
The c
ontra
ct va
lue an
d the
total
co
ntrac
t exp
endit
ure m
ust b
e re
cord
ed an
d reg
ularly
upda
ted on
the
contr
acts
regis
ter. R
egist
er to
be
sign
ed as
evide
nce o
f Rev
iew
by a
senio
r offic
ial.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
31
-Mar
-17
22
58
Trad
e Pay
able:
Re
tentio
ns no
t re
cord
ed in
the
reten
tions
gene
ral
ledge
r acc
ount
(Exc
.117)
Durin
g the
audit
of re
tentio
ns it
was n
oted t
hat th
e foll
owing
re
tentio
ns (r
efer t
o CoA
F 22
of
2016
for s
ched
ule) s
electe
d fro
m the
invo
ices i
ssue
d to t
he
munic
ipality
by th
e sup
plier
s wa
s not
reco
rded
in th
e re
tentio
ns ge
nera
l ledg
er
Finan
cial
Mana
geme
nt sh
ould
ensu
re th
at the
y rev
iew an
d rec
oncil
e the
re
tentio
n list
ing at
the e
nd of
the
finan
cial p
eriod
to en
sure
that
all
reten
tions
with
held
are r
ecor
ded.
Reten
tions
shou
ld be
accru
ed fo
r ev
ery i
nvoic
e rec
eived
from
the
contr
actor
and n
ot at
the E
nd of
the
contr
act.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
31-M
ar-1
7
170
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
acco
unt a
nd th
e rete
ntion
s lis
ting.
22
59
Trad
e Pay
ables
: Tr
ade p
ayab
les
balan
ces c
ould
not b
e ve
rified
(Exc
.119)
Durin
g the
audit
of tr
ade
paya
bles,
the fo
llowi
ng tr
ade
paya
bles b
alanc
es co
uld no
t be
verifi
ed:
Prov
ident:
Pen
sion C
ontro
l R
2 269
562.0
0 Me
dical
Aid C
ontro
l
R
2 922
451.0
0 SA
MWU
Strik
e Fun
d
R
635 1
68.00
Ot
her D
educ
tions
Con
trol
R
945 7
64.00
Th
e non
-subm
ission
of th
e thir
d pa
rty st
ateme
nts ha
s res
ulted
to
factua
l limi
tation
miss
tatem
ent
of R6
772 9
45.00
Inter
nal
Contr
ols
The E
xpen
ditur
e cler
k and
Chie
f Ac
coun
t sho
uld m
aintai
n a
docu
ment
regis
ter w
hich s
hould
be
cons
tantly
upda
ted an
d rec
oncil
ed
to the
mov
emen
t of d
ocum
ents.
Al
so, d
ocum
ents
requ
ests
shou
ld be
logg
ed w
ith a
sign o
ff fro
m bo
th pa
rties a
nd do
cume
nts sh
ould
be
store
d in s
oft co
py an
d ph
otoco
pies
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
31-M
ar-1
7
22
60
Trad
e Pay
ables
: Ac
crued
bonu
s pr
ovisi
on ha
s bee
n inc
orre
ctly c
alcula
ted
(Exc
.120)
Durin
g the
audit
of ac
crued
bo
nus p
rovis
ions i
t was
noted
tha
t the a
ccru
ed bo
nus
prov
ision
has b
een i
ncor
rectl
y ca
lculat
ed. [r
efer t
o CoA
F 22
of
2016
for s
ample
sche
dule]
Th
e acc
rued
leav
e pro
vision
has
been
miss
tated
by an
ex
trapo
lated
disa
gree
ment
miss
tatem
ent o
f R1 3
01 99
6.90.
Finan
cial
leav
e rec
oncil
iation
s sho
uld be
do
ne on
a mo
nthly/
week
ly ba
sis
and s
hould
be re
viewe
d and
sig
ned o
ff by t
he H
R Ma
nage
r or
senio
r offic
ial.
Budg
et an
d Tr
easu
ry V
Make
dama
Ch
ief A
ccou
ntant
30-Ju
n-17
24
61
Comm
itmen
ts:
Comm
itmen
ts sc
hedu
le do
es no
t ag
ree t
o the
amou
nt pe
r AFS
(Exc
.105)
Durin
g the
audit
of co
mmitm
ents
the fo
llowi
ng di
ffere
nces
wer
e ide
ntifie
d: -T
he am
ount
disclo
sed i
n the
AFS
does
not
agre
e to t
he C
ommi
tmen
t re
gister
subm
itted f
or
audit
:Amo
unt p
er A
FS
R 31
02
6 339
.00Am
ount
per
Comm
itmen
ts Sc
hedu
le R
Finan
cial
An in
hous
e or I
ntern
al AF
S
Revie
w pr
oces
s sho
uld be
im
pleme
nted w
here
in the
CFO
and
Chief
Acc
ontan
t to re
view
and s
ign
finan
cial re
ports
befor
e sub
miss
ion
to au
ditor
s. su
bjecti
ng th
e AFS
thr
ough
a str
ingen
t rev
iew pr
oces
s wi
ll ass
ist in
elim
inatin
g cer
tain
obvio
us om
misio
ns an
d erro
rs.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
31-M
ar-1
7
171
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
3052
0338
.63Fa
ctual
differ
ence
of
R 50
6 000
.37
Audit
files
to be
prep
ared
in
dupli
cates
to sa
ve fa
cilita
lete a
n eff
ectiv
e rev
iew pr
oces
s. 24
62
Co
mmitm
ents:
Co
mmitm
ents
sche
dule
does
not
agre
e to t
he am
ount
per A
FS (E
xc.10
5)
The t
otal p
ayme
nts co
lumn
(refer
to C
oAF
24 of
2016
for
table)
indic
ates t
hat p
ayme
nts
made
wer
e mor
e tha
n the
co
ntrac
t amo
unts
howe
ver,
these
over
paym
ents
are
includ
ed in
the c
ommi
tmen
ts re
gister
as co
mmitm
ents
by th
e mu
nicipa
lity as
per t
able.
Finan
cial
Enus
re pr
oper
contr
act
mana
geme
nt sy
stem
in pla
ce fo
r the
iden
tifica
tion a
nd re
cogn
ition o
f ca
pital
comm
itmen
ts A
senio
r offic
ial sh
ould
frequ
ently
up
date
the co
ntrac
t reg
ister
and
revie
ws sh
ould
be pe
rform
ed by
the
chief
acco
untan
t and
shou
ld sig
n off a
s evid
ence
of ha
ving
perfo
rmed
such
revie
ws.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
31-M
ar-1
7
26
63
Reve
nue f
rom
exch
ange
tra
nsac
tions
: Rev
enue
fro
m CE
TA G
rant
Fund
ing in
corre
ctly
class
ified a
s rev
enue
fro
m ex
chan
ge
trans
actio
ns (E
xc.65
)
The m
unici
pality
invo
iced C
ETA
for an
amou
nt of
R881
778.2
2 re
lating
to a
refun
d of c
osts
that
were
paid
by th
e mun
icipa
lity in
ter
ms of
the s
hort
skills
de
velop
ment
prog
ramm
e, a
CETA
Disc
retio
nary
Gran
t Fu
nding
proje
ct. T
his re
venu
e tra
nsac
tion i
s a no
n-ex
chan
ge
trans
actio
n bec
ause
the
munic
ipality
rece
ived v
alue f
rom
CETA
with
out d
irectl
y givi
ng
appr
oxim
ately
equa
l valu
e in
exch
ange
.
Finan
cial
Chief
Fina
ncial
Offic
er an
d Chie
f ac
coun
tant to
revie
w int
erim
fin
ancia
l stat
emen
ts an
d isg
n as
evide
nce o
f rev
iew be
fore
subm
ission
to In
terna
l Aud
it and
the
audit
comm
ittee.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
Ongo
ing
28
64
Prior
Per
iod E
rrors:
Su
ppor
ting d
ocum
ents
not s
ubmi
tted f
or au
dit
purp
oses
Durin
g the
audit
of pr
ior pe
riod
erro
r, su
fficien
t app
ropr
iate a
udit
evide
nce c
ould
not b
e obta
ined
for th
e res
tatem
ent in
the
corre
spon
ding f
igure
s. Th
e inf
orma
tion s
ubmi
tted b
y ma
nage
ment
in re
spon
se to
RFI
69
dated
27 O
ctobe
r 201
6 cou
ld no
t sup
port
the ad
justm
ents
as
desc
ribed
in no
te 37
to th
e fin
ancia
l stat
emen
ts. W
e wer
e un
able
to co
nfirm
the
Finan
cial
Munic
ipality
achie
ved c
lean
admi
nistra
tion i
n the
2015
/16
balan
ces.
Thes
e will
intur
n be t
he
corre
spon
ding b
alanc
es in
the
2016
/17 fin
ancia
l yea
r. Th
e prio
r pe
riod i
ssue
thus
autom
atica
lly
falls
away
. As p
er th
e Aud
it rep
ort
the pr
ior ye
ar er
rors
have
no
impc
at on
the 2
015/1
6 bala
nces
.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Ma
tthys
enPo
sition
: Ch
ief A
ccou
ntant
31-M
ar-1
7
172
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
resta
temen
t by a
ltern
ative
me
ans a
nd co
nseq
uentl
y we
were
unab
le to
deter
mine
wh
ether
any a
djustm
ents
to the
co
rresp
ondin
g figu
re w
ere
nece
ssar
y.Fur
therm
ore,
the
unco
rrecte
d miss
tatem
ents
noted
in th
e prio
r yea
r aud
it we
re no
t acc
ounte
d for
whe
n ad
justin
g prio
r per
iod er
rors.
Pr
ior ye
ar
unco
rrecte
d iss
ues
affec
ting
opini
on
para
grap
h
Pa
yable
s: Th
e pa
yable
s in t
he
credit
ors l
isting
wer
e inc
omple
te (R
isk of
Un
derst
ateme
nt)
Mana
geme
nt co
uld no
t pro
vide
furthe
r evid
ence
of th
e co
mplet
enes
s of th
e pay
ables
ba
lance
in th
e 201
4/15 f
inanc
ial
year
. Of th
e two
invo
ices
samp
led, o
nly P
rodib
a inv
oices
we
re su
bmitte
d and
Arn
o St
rydom
invo
ices w
ere n
ot su
bmitte
d thu
s the
proje
cted
amou
nt mo
ved f
rom
R3 80
7 52
0.10 t
o R2 4
94 54
8.
Finan
cial
Mana
geme
nt sh
ould
imple
ment
prop
er re
cord
keep
ing sy
stems
in a
timely
man
ner t
o ens
ure t
hat
comp
lete,
relev
ant a
nd ac
cura
te inf
orma
tion i
s acc
essib
le an
d av
ailab
le to
supp
ort fi
nanc
ial an
d pe
rform
ance
repo
rting.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: N
Mhlo
ngo
Posit
ion: E
xpen
ditur
e ma
nage
r
01-D
ec-1
6
Prior
year
un
corre
cted
issue
s aff
ectin
g op
inion
pa
ragr
aph
VA
T on
insta
llmen
ts pa
id for
the K
wane
Ca
pital
amou
nting
to
R 80
6, 12
0 inv
oices
we
re no
t sub
mitte
d wh
en re
ques
ted
throu
gh R
FI 10
1 of
2015
resu
lting i
n a
scop
e lim
itatio
n.
Mana
geme
nt fai
led to
prov
ide
proo
f of s
ubmi
ssion
of th
e inv
oice t
o SAR
S to
have
the
amou
nt as
sess
ed as
that
will
give e
viden
ce to
the a
vaila
bility
an
d vali
dity o
f the s
uppo
rting
docu
menta
tion.
Finan
cial
Mana
geme
nt, th
roug
h Tax
co
nsult
ant (
MaxP
rof),
perfo
rm an
d inv
oice t
est a
nd ve
rify if
these
inv
oices
wer
e ind
eed s
ubmi
tted.
Also
man
agem
ent to
test
if all
invoic
es ar
e VAT
comp
liant
acco
rding
to th
e app
licab
le leg
islati
on.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: N
Mhlo
ngo
Posit
ion: E
xpen
ditur
e ma
nage
r
01-Ja
n-17
Prior
year
un
corre
cted
issue
s aff
ectin
g op
inion
pa
ragr
aph
Th
e aud
itee c
ould
not
prov
ide th
e sta
temen
ts an
d inv
oices
to su
ppor
t the
follow
ing cr
edit
balan
ces a
moun
ting
to R
486,
089 a
s it
was r
eque
sted
throu
gh R
FI 85
of
2015
.
Only
the su
ppor
ting d
ocum
ents
for th
e pay
ment
of R9
000 t
o W
onca
Glad
man c
ould
be
verifi
ed of
the i
nform
ation
su
bmitte
d. Th
is thu
s res
ulted
in
the pr
ojecte
d miss
tatem
ent
move
ment
from
R1 33
4 598
to
R 1 2
26 24
4.74.
Finan
cial
Mana
geme
nt sh
ould
imple
ment
prop
er re
cord
keep
ing sy
stems
in a
timely
man
ner t
o ens
ure t
hat
comp
lete,
relev
ant a
nd ac
cura
te inf
orma
tion i
s acc
essib
le an
d av
ailab
le to
supp
ort fi
nanc
ial an
d pe
rform
ance
repo
rting.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: N
Mh
longo
Posit
ion:
Expe
nditu
re m
anag
er
01-D
ec-1
6
173
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
32
65
Non-
routi
ne Jo
urna
ls:
No su
ppor
ting
docu
menta
tion (
Ex.
130)
Durin
g the
audit
of N
on ro
utine
jou
rnal
entrie
s the
supp
ortin
g do
cume
ntatio
n for
certa
in jou
rnals
(refe
r to C
oAF
32 of
20
16 fo
r jour
nals)
wer
e not
attac
hed f
or th
e aud
itors
to co
nfirm
the v
alidit
y of th
e jou
rnal:
Inter
nal
Contr
ols
Chief
Acc
ount
shou
ld ma
intain
a do
cume
nt re
gister
whic
h sho
uld be
co
nstan
tly up
dated
and r
econ
ciled
to
the m
ovem
ent o
f doc
umen
ts.
Also
, doc
umen
ts re
ques
ts sh
ould
be lo
gged
with
a sig
n off f
rom
both
partie
s and
docu
ments
shou
ld be
sto
red i
n soft
copy
and
photo
copie
s
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
01-Ju
l-17
36
66
AOPO
- No
evide
nce
to su
ppor
t vali
dity a
nd
accu
racy
of re
porte
d tar
gets
Inspe
cted t
he po
rtfoli
o of
evide
nce s
ubmi
tted f
or K
PA
and c
onfirm
ed th
at the
re is
ins
uffici
ent o
r no e
viden
ce w
hich
supp
orts
the va
lidity
and
accu
racy
of th
e foll
owing
ind
icator
s and
targ
ets. [r
efer t
o Co
AF 36
of 20
16 fo
r sch
edule
of
findin
gs]
Inter
nal
Contr
ols
To de
velop
evid
ence
chec
klist
for
each
indic
ator t
o fas
t trac
k the
su
fficien
t evid
ence
requ
ired
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
i Po
sition
: PMS
Ma
nage
r (Ac
ting)
31-M
ar-1
7
36
67
AOPO
- Re
porte
d tar
gets
not a
ccur
ate,
valid
and o
r com
plete
Whil
e tes
ting t
he fo
llowi
ng
indica
tor, id
entifi
ed th
e foll
owing
dis
agre
emen
ts:
1. Th
ere w
ere 3
busin
ess p
lans
subm
itted i
nstea
d of 4
as
repo
rted i
n the
Ann
ual
Perfo
rman
ce R
epor
t. 2.
The b
usine
ss pl
an su
bmitte
d for
Lewi
s Hou
sing P
rojec
t was
no
t sign
ed as
evide
nce o
f va
lidity
.
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
deve
lop,
appr
ove,
imple
ment
and
comm
unica
te a d
etaile
d sys
tem
desc
riptio
n or s
tanda
rd op
erati
ng
proc
edur
es fo
r eac
h ind
icator
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
i Po
sition
: PMS
Ma
nage
r (Ac
ting)
31-M
ar-1
7
37
68
AoPO
: Mid-
year
pe
rform
ance
as
sess
ment
repo
rts
not s
ubmi
tted w
ithin
the sp
ecifie
d tim
efram
es A
udit
findin
g
AoPO
: Mid-
year
perfo
rman
ce
asse
ssme
nt re
ports
not
subm
itted w
ithin
the sp
ecifie
d tim
efram
es A
udit
findin
gSub
miss
ion da
te to
coun
cil:28
-Jan-
16Le
gislat
ed
date:
25-Ja
n-16
The a
udit f
inding
wa
s rais
ed in
the p
rior y
ear a
nd
mana
geme
nt ag
reed
with
the
Inter
nal
Contr
ols
Durin
g plan
ning,
Mana
geme
nt sh
ould
ensu
re st
rateg
ic ali
gnme
nt of
the M
unici
pal c
alend
ar w
ith
legisl
ative
dead
line d
ates,
to en
sure
that
legisl
ative
dead
lines
for
subm
ission
are m
et.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-May
-17
174
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
findin
g, ho
weve
r the
re w
as no
co
rrecti
ve ac
tion t
aken
to
addr
ess t
he au
dit fin
ding i
n the
cu
rrent
year
. 37
69
Ao
PO: L
ack o
f ad
equa
tely d
esign
ed
and i
mplem
ented
pr
oces
ses a
nd
proc
edur
es to
mon
itor
and r
eview
pe
rform
ance
inf
orma
tion A
udit
findin
g
Munic
ipality
's pe
rform
ance
inf
orma
tion s
ystem
s, pr
oces
ses
and p
roce
dure
s, su
bmitte
d for
au
dit pu
rpos
e for
each
indic
ator
relev
ant to
the s
electe
d de
velop
ment
prior
ity/ob
jectiv
e ar
e not
adeq
uatel
y de
signe
d to
ensu
re ac
cura
cy, c
omple
tenes
s an
d vali
dity o
f per
forma
nce
infor
matio
n:-
[refer
to C
oAF
37
of 20
16 fo
r sch
edule
of fin
dings
] Th
e aud
it find
ing w
as re
porte
d in
the pr
ior ye
ar, h
owev
er th
ere
was n
o res
pons
e fro
m ma
nage
ment
which
agre
es or
dis
agre
es w
ith th
e aud
it find
ing.
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
deve
lop,
appr
ove,
imple
ment
and
comm
unica
te a d
etaile
d sys
tem
desc
riptio
n or s
tanda
rd op
erati
ng
proc
edur
es fo
r eac
h ind
icator
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
i Po
sition
: PMS
Ma
nage
r (Ac
ting)
31-M
ar-1
7
37
70
AoPO
: Loc
al Ec
onom
ic De
velop
ment:
Pe
rform
ance
ind
icator
s not
verifi
able
and w
ell
defin
ed
The f
ollow
ing pe
rform
ance
ind
icator
s for
the s
electe
d de
velop
ment
prior
ity ar
e not
verifi
able:
- The
follo
wing
pe
rform
ance
indic
ators
for th
e se
lected
deve
lopme
nt pr
iority
ar
e not
verifi
able:
-Indic
ator 1
. An
nual
Chris
tmas
light
even
ts 2.
Tour
ism S
trateg
y3. N
o of
comm
unity
halls
to be
ma
intain
ed. T
he fo
llowi
ng
perfo
rman
ce in
dicato
rs for
the
selec
ted de
velop
ment
prior
ity
are n
ot we
ll defi
ned:
-Indic
ator 1
. An
nual
Chris
tmas
light
even
ts 2.
Tour
ism S
trateg
y3. A
ppoin
tmen
t of
a ser
vice p
rovid
er4.
Ensu
re
comp
lianc
e with
SPL
UMA1
6 of
2013
5. Int
erna
l aud
it plan
6.
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
deve
lop an
d ad
opt c
heck
lists
for ea
ch in
dicato
r to
expe
dite t
he co
llecti
on of
re
levan
t, reli
able
and u
seful
inf
orma
tion.T
hese
chec
klists
are t
o be
appr
oved
by th
e unit
head
prior
to
subm
ission
of pe
rform
ance
ev
idenc
e for
revie
w pu
rpos
es.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Mar
-17
175
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
Deve
lop an
d sub
mit a
pplic
ation
for
Birh
a Bea
ch.
37
71
AoPO
: Per
forma
nce
targe
ts no
t me
asur
able,
spec
ific
and t
ime-
boun
d
A us
eful s
et of
criter
ia for
se
lectin
g per
forma
nce t
arge
ts is
the "S
MART
" crite
ria. C
ertai
n pe
rform
ance
targ
ets in
clude
d in
the S
DBIP
did n
ot ad
here
to
some
of th
ese S
MART
pr
incipa
ls. [r
efer t
o CoA
F 37
of
2016
for d
etaile
d sch
edule
of
findin
gs]T
he fo
llowi
ng
perfo
rman
ce ta
rgets
inclu
ded i
n the
SDB
IP w
ere n
ot sp
ecific
:Dev
elopm
ent p
riority
20
15/16
Ann
ual ta
rget
1. Se
rvice
De
liver
y and
Infra
struc
ture
Deve
lopme
nt1.
7 mun
icipa
l bu
ilding
s main
taine
d ann
ually
in
terms
of qu
arter
s2.10
co
mmun
ity ha
lls m
aintai
ned p
er
annu
m 3.
2 Qua
rterly
ma
nage
ment
repo
rts to
be
subm
itted.4
. Cas
h flow
re
ports
.5. E
PWP
expe
nditu
re
repo
rts.2.
Loca
l Eco
nomi
c De
velop
ment
1.Ann
ual to
urism
str
ategy
2.Ag
ricult
ural
deve
lopme
nt pr
ogra
mmes
3.
No. o
f bus
iness
plan
s de
velop
ed. 4
. Bus
iness
plan
s su
bmitte
d to r
eleva
nt de
partm
ents.
5. T
wo w
orks
hops
to
be co
nduc
ted. 6
. Qua
rterly
re
port
Inter
nal
Contr
ols
Durin
g the
plan
ning p
hase
of P
MS,
the de
velop
ment
of ind
icator
s sh
ould
be do
ne in
cons
ultati
on
with
Inter
nal A
udit a
nd P
MS
secti
on to
ensu
re in
dicato
rs an
d tag
ets ad
here
to th
e 'S
MART
' pr
incipl
es as
advo
cated
by th
e Au
ditor
Gen
eral.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Jan-
17
37
72
AoPO
: Per
forma
nce
targe
ts no
t me
asur
able,
spec
ific
and t
ime-
boun
d
The f
ollow
ing pe
rform
ance
tar
gets
includ
ed in
the S
DBIP
we
re no
t mea
sura
ble:-
Deve
lopme
nt pr
iority
2015
/16
Annu
al tar
get1.
Ser
vice D
elive
ry an
d Infr
astru
cture
Dev
elopm
ent
Inter
nal
Contr
ols
Durin
g the
plan
ning p
hase
of P
MS,
the de
velop
ment
of ind
icator
s sh
ould
be do
ne in
cons
ultati
on
with
Inter
nal A
udit a
nd P
MS
secti
on to
ensu
re in
dicato
rs an
d tag
ets ad
here
to th
e 'S
MART
'
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Jan-
17
176
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
1. No
of C
ounc
il and
MAN
CO
reso
lution
s2. Q
uarte
rly
mana
geme
nt re
ports
to be
su
bmitte
d.3. C
ash f
low
repo
rts.4.
EPW
P ex
pend
iture
re
ports
.
princ
iples
as ad
voca
ted by
the
Audit
or G
ener
al.
37
73
AoPO
: Per
forma
nce
targe
ts no
t me
asur
able,
spec
ific
and t
ime-
boun
d
The f
ollow
ing pe
rform
ance
tar
gets
includ
ed in
the S
DBIP
we
re no
t time
-bou
nd:-
Deve
lopme
nt pr
iority
2015
/16
Annu
al tar
get
1. Se
rvice
Deli
very
and
Infra
struc
ture D
evelo
pmen
t 1.
June
2015
a pr
oject
list
subm
itted t
o Esk
om
Inter
nal
Contr
ols
Durin
g the
plan
ning p
hase
of P
MS,
the de
velop
ment
of ind
icator
s sh
ould
be do
ne in
cons
ultati
on
with
Inter
nal A
udit a
nd P
MS
secti
on to
ensu
re in
dicato
rs an
d tag
ets ad
here
to th
e 'S
MART
' pr
incipl
es as
advo
cated
by th
e Au
ditor
Gen
eral.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
i Po
sition
: PMS
Ma
nage
r (Ac
ting)
31-Ja
n-17
38
74
Road
s Infr
astru
cture
: No
appr
oved
polic
y for
the
plan
ning,
mana
geme
nt an
d re
portin
g of r
oads
inf
rastr
uctur
e
1. Th
e mun
icipa
lity di
d not
have
the
follo
wing
polic
ies an
d pr
oced
ures
in pl
ace p
ertai
ning
to ro
ads i
nfras
tructu
re:--
An
appr
oved
polic
y in p
lace f
or th
e pla
nning
, man
agem
ent a
nd
repo
rting o
f roa
ds
infra
struc
ture.2
. The
mu
nicipa
lity do
es no
t hav
e an
appr
oved
RMP
/prior
ity lis
t in
place
for t
he re
newa
l and
ro
utine
main
tenan
ce of
road
s inf
rastr
uctur
e.3. T
he
munic
ipality
did n
ot pe
rform
co
nditio
n ass
essm
ents
for al
l ro
ads i
nfras
tructu
re un
der t
heir
contr
ol to
infor
m the
RM
P/Pr
iority
list. 2
. In ad
dition
the
mun
icipa
lity un
dersp
ent o
n the
rene
wal p
rojec
ts for
the
year
, due
to a
delay
in
proc
urem
ent p
roce
sses
for t
he
proje
cts.
Inter
nal
Contr
ols
To de
velop
and i
mplem
ent a
po
licy f
or th
e plan
ning,
mana
geme
nt an
d rep
ortin
g of
road
s infr
astru
cture
.Man
agem
ent
shou
ld de
velop
and i
mplem
ent a
Ro
ads M
aster
Plan
(RMP
)/prio
rity
List fo
r the
rene
wal a
nd ro
utine
ma
inten
ance
of ro
ads
infra
struc
ture
Tech
nical
Servi
ces
L Gov
u
31-M
ar-1
7
177
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
38
75
AoPO
: Lac
k of
adeq
uatel
y des
igned
an
d imp
lemen
ted
proc
esse
s and
pr
oced
ures
to m
onito
r an
d rev
iew
perfo
rman
ce
infor
matio
n Aud
it fin
ding
Munic
ipality
's pe
rform
ance
inf
orma
tion s
ystem
s, pr
oces
ses
and p
roce
dure
s, su
bmitte
d for
au
dit pu
rpos
e for
each
indic
ator
relev
ant to
the s
electe
d de
velop
ment
prior
ity/ob
jectiv
e ar
e not
adeq
uatel
y de
signe
d to
ensu
re ac
cura
cy, c
omple
tenes
s an
d vali
dity o
f per
forma
nce
infor
matio
n:- 1
. Dev
elopm
ent
prior
ity:S
ervic
e Deli
very
and
Infra
struc
ture D
evelo
pmen
t Ob
jectiv
e: Er
adica
te ba
cklog
s in
orde
r to i
mpro
ve ac
cess
to
servi
ce an
d ens
ure p
rope
r op
erati
ons a
nd m
ainten
ance
.2.
Deve
lopme
nt pr
iority
: Loc
al Ec
onom
ic De
velop
mentO
bjecti
ve:C
reati
ng
an en
ablin
g env
ironm
ent th
at pr
omote
s the
deve
lopme
nt of
the lo
cal e
cono
my an
d fac
ilitate
job
. The
audit
findin
g was
re
porte
d in t
he pr
ior ye
ar,
howe
ver t
here
was
no re
spon
se
from
mana
geme
nt wh
ich ag
rees
or
disa
gree
s with
the a
udit
findin
g.
Inter
nal
Contr
ols
Mana
geme
nt sh
ould
deve
lop,
appr
ove,
imple
ment
and
comm
unica
te de
tailed
polic
y and
pr
oced
ures
to re
gulat
e the
PMS
.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Mar
-17
38
76
AoPO
: Loc
al Ec
onom
ic De
velop
ment:
Pe
rform
ance
ind
icator
s not
verifi
able
and w
ell
defin
ed
The f
ollow
ing pe
rform
ance
ind
icator
s for
the s
electe
d de
velop
ment
prior
ity ar
e not
well
defin
ed:-I
ndica
tor 1
. Ann
ual
Chris
tmas
light
even
ts 2.
Tour
ism S
trateg
y3. A
ppoin
tmen
t of
a ser
vice p
rovid
er4.
Ensu
re
comp
lianc
e with
SPL
UMA1
6 of
2013
5. Int
erna
l aud
it plan
6. De
velop
and s
ubmi
t app
licati
on
for B
irha B
each
.
Inter
nal
Contr
ols
Durin
g the
plan
ning p
hase
of P
MS,
the de
velop
ment
of ind
icato
rs sh
ould
be do
ne in
cons
ultati
on
with
Inter
nal A
udit a
nd P
MS
secti
on to
ensu
re in
dicato
rs an
d tag
ets ad
here
to th
e 'S
MART
' pr
incipl
es as
advo
cated
by th
e Au
ditor
Gen
eral.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Jan-
17
178
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
38
77
AoPO
: Per
forma
nce
targe
ts no
t me
asur
able,
spec
ific
and t
ime-
boun
d
The f
ollow
ing pe
rform
ance
tar
gets
includ
ed in
the S
DBIP
we
re no
t spe
cific:
1. Se
rvice
De
liver
y and
Infra
struc
ture
Deve
lopme
nt:-1
. 7 m
unici
pal
build
ings m
aintai
ned a
nnua
lly in
ter
ms of
quar
ters 2
.10
comm
unity
halls
main
taine
d per
an
num
3. 2
Quar
terly
mana
geme
nt re
ports
to be
su
bmitte
d. 4.
Cash
flow
repo
rts.
5. EP
WP
expe
nditu
re re
ports
.2.
Loca
l Eco
nomi
c Dev
elopm
ent:-
1.A
nnua
l tour
ism st
rateg
y 2.A
gricu
ltura
l dev
elopm
ent
prog
ramm
es 3
. No.
of bu
sines
s pla
ns de
velop
ed. 4
. Bus
iness
pla
ns su
bmitte
d to r
eleva
nt de
partm
ents
5. Tw
o wor
ksho
ps
to be
cond
ucted
6. Q
uarte
rly
repo
rt
Du
ring t
he pl
annin
g pha
se of
PMS
, the
deve
lopme
nt of
indica
tors
shou
ld be
done
in co
nsult
ation
wi
th Int
erna
l Aud
it and
PMS
se
ction
to en
sure
indic
ators
and
tagets
adhe
re to
the
'SMA
RT'
princ
iples
as ad
voca
ted by
the
Audit
or G
ener
al.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Jan-
17
38
78
AoPO
: Per
forma
nce
targe
ts no
t me
asur
able,
spec
ific
and t
ime-
boun
d
The f
ollow
ing pe
rform
ance
tar
gets
includ
ed in
the S
DBIP
we
re no
t mea
sura
ble:-1
. Ser
vice
Deliv
ery a
nd In
frastr
uctur
e De
velop
ment
1. No
of C
ounc
il an
d MAN
CO re
solut
ions2
. Qu
arter
ly ma
nage
ment
repo
rts
to be
subm
itted.3
. Cas
h flow
re
ports
.4. E
PWP
expe
nditu
re
repo
rts.
Inter
nal
Contr
ols
Durin
g the
plan
ning p
hase
of P
MS,
the de
velop
ment
of ind
icator
s sh
ould
be do
ne in
cons
ultati
on
with
Inter
nal A
udit a
nd P
MS
secti
on to
ensu
re in
dicato
rs an
d tag
ets ad
here
to th
e 'S
MART
' pr
incipl
es as
advo
cated
by th
e Au
ditor
Gen
eral.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
iPos
ition:
PMS
Mana
ger (
Actin
g) 31
-Jan-
17
MGT
Repo
rt 79
Ao
PO: P
erfor
manc
e tar
gets
not
meas
urab
le, sp
ecific
an
d tim
e-bo
und
The f
ollow
ing pe
rform
ance
tar
gets
includ
ed in
the S
DBIP
we
re no
t time
-bou
nd:-
1. Se
rvice
Deli
very
and
Infra
struc
ture D
evelo
pmen
t:-
1. Ju
ne 20
15 a
proje
ct lis
t su
bmitte
d to E
skom
Inter
nal
Contr
ols
Durin
g the
plan
ning p
hase
of P
MS,
the de
velop
ment
of ind
icato
rs sh
ould
be do
ne in
cons
ultati
on
with
Inter
nal A
udit a
nd P
MS
secti
on to
ensu
re in
dicato
rs an
d tag
ets ad
here
to th
e 'S
MART
' pr
incipl
es as
advo
cated
by th
e Au
ditor
Gen
eral.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: S
Sak
i Po
sition
: PMS
Ma
nage
r (Ac
ting)
31-Ja
n-17
179
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
MGT
Repo
rt 80
An
nual
Repo
rt an
d An
nual
Finan
cial
State
ments
The f
inanc
ial st
ateme
nts
subm
itted f
or au
diting
wer
e not
prep
ared
in al
l mate
rial re
spec
ts in
acco
rdan
ce w
ith th
e re
quire
ments
of se
ction
122 o
f the
MFM
A. M
ateria
l mi
sstat
emen
ts of
non-
curre
nt as
sets,
curre
nt as
sets,
liabil
ities,
reve
nue,
expe
nditu
re an
d dis
closu
re ite
ms id
entifi
ed by
the
audit
ors i
n the
subm
itted
finan
cial s
tatem
ents
were
su
bseq
uentl
y cor
recte
d, bu
t the
unco
rrecte
d mate
rial
miss
tatem
nts re
sulte
d in t
he
finan
cial s
tatem
ents
rece
iving
a qu
alifie
d aud
it opin
ion.
Comp
lianc
e 1.
Chief
Acc
ounta
nt an
d Ac
coun
tants
to pr
epar
e inte
rim
Finan
cial S
tatem
ents,
to en
sure
mi
sstat
emen
t are
detec
ted an
d co
rrecte
d on t
ime.
2. Int
erna
l Aud
itors
to re
view
Inter
im an
d Ann
ual F
inanc
ial
State
ments
prior
being
subm
itted
to Au
dit C
ommi
tte fo
r fur
ther
revie
w.
Budg
et an
d Tr
easu
ry V
Make
dama
Na
me: T
Matt
hyse
n Po
sition
: Chie
f Ac
coun
tant
Mar-1
7
MGT
Repo
rt 81
Ex
pend
iture
ma
nage
ment
Mo
ney o
wed b
y the
mun
icipa
lity
was n
ot alw
ays p
aid w
ithin
30
days
, as r
equir
ed by
secti
on
65(2
)€ of
the M
FMA.
Comp
lianc
e A
reco
rd bo
ok sh
ould
be
maint
ained
detai
ling t
he m
ovem
ent
of the
invo
ices a
s the
y arri
ve an
d dis
tribute
d to t
he re
spon
sible
offici
als an
d a tim
e fra
me be
de
termi
ned o
n how
long
a ba
tch of
inv
oices
stay
s to e
ach o
fficial
, but
shou
ld be
with
in 30
days
until
paym
ent.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r Exp
endit
ure
31-M
ar-1
7
MGT
Repo
rt 82
Ex
pend
iture
ma
nage
ment
Re
ason
able
steps
wer
e not
taken
to pr
even
t una
uthor
ised,
irreg
ular a
nd fr
uitles
s and
wa
steful
expe
nditu
re, a
s re
quire
d by s
ectio
n 62(
1)(d
) of
the M
FMA.
Comp
lianc
e 1,
Mana
geme
nt sh
ould
includ
e the
ir defi
nition
as pe
r the
guida
nce
abou
t wha
t con
stitut
es an
all
owab
le de
viatio
n with
in the
SCM
po
licy d
ocum
ent.
2, Ma
nage
ment
shou
ld en
sure
that
all in
stanc
es of
irreg
ular
expe
nditu
re ar
e rec
orde
d in t
he
Irreg
ular,
Fruit
less a
nd W
astef
ul an
d Una
uthor
ised E
xpen
ditur
e Re
gister
with
detai
led de
scrip
tions
of
the pr
ohibi
ted ex
pend
iture
inc
urre
d.
3, Ma
nage
ment
shou
ld en
sure
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
31
-Mar
-16
180
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
that a
Pay
ment
Chec
klist
is co
mplet
ed co
mplet
ely an
d ac
cura
tely a
s inte
nded
for a
ll ex
pend
iture
incu
rred a
nd at
tache
d to
the pa
ymen
t vou
cher
prior
to
paym
ent b
eing m
ade.
4,
Mana
geme
nt sh
ould
ensu
re th
at the
Pay
ment
Chec
klist
is ad
equa
tely s
igned
by th
e rev
iewer
an
d rev
iewer
prior
to pa
ymen
t be
ing m
ade.
MG
T Re
port
83
Proc
urem
ent a
nd
contr
act m
anag
emen
t Go
ods a
nd se
rvice
s with
a tra
nsac
tion v
alue o
f belo
w R2
00
000 w
ere p
rocu
red w
ithou
t ob
tainin
g the
requ
ired p
rice
quota
tions
, in co
ntrav
entio
n of
SCM
regu
lation
17(a
) and
(c)
Comp
lianc
e 1,
Mana
geme
nt sh
ould
ensu
re th
at a d
eviat
ion pr
oces
s is f
ollow
ed fo
r all
insta
nces
whe
re th
e mini
mum
numb
er of
quota
tions
as pe
r the
SC
M Po
licy i
s not
adhe
red t
o. W
here
the m
inimu
m nu
mber
of
quota
tions
has n
ot be
en ob
taine
d, ma
nage
ment
shou
ld pr
epar
e a
memo
rand
um fo
r app
rova
l by t
he
Acco
untin
g Offic
er w
hich d
etails
the
reas
ons f
or no
t obta
ining
the
requ
ired n
umbe
r of q
uotat
ions.
The
reas
ons d
ocum
ented
for a
ppro
val
shou
ld be
spec
ific in
term
s of th
e all
owab
le de
viatio
n cate
gorie
s as
per t
he S
CM P
olicy
.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Dec
-16
MGT
Repo
rt 84
Pr
ocur
emen
t and
co
ntrac
t man
agem
ent
The p
erfor
manc
e of c
ontra
ctors
or pr
ovide
r was
not m
onito
red
on a
month
ly ba
sis, a
s req
uired
by
secti
on 11
6(2)
(b) o
f the
MFMA
.
Comp
lianc
e A
Stan
dard
ised r
epor
t temp
late
shou
ld be
deve
loped
and
imple
mente
d for
repo
rting o
n the
pe
rform
ance
of se
rvice
prov
iders.
Th
e rep
ort s
hould
be pr
epar
ed on
a Q
urter
ly ba
sis an
d sho
ld se
rve
befor
e cou
ncil.
Budg
et an
d Tr
easu
ry V
Make
dama
Ma
nage
r SCM
01
-Jan-
17
MGT
Repo
rt 85
Hu
man r
esou
rces
mana
geme
nt
The c
ompe
tencie
s of th
e chie
f fin
ancia
l offic
er an
d hea
d of
supp
ly ch
ain w
ere n
ot as
sess
ed
in a t
imely
man
ner in
orde
r to
identi
fy an
d add
ress
gaps
in
comp
etenc
y lev
els as
requ
ired
Comp
lianc
e HR
dep
artm
ent to
facil
itate
the
asse
ssme
nt of
the co
mpete
ncies
of
the ch
ief fin
ancia
l offic
er an
d hea
d of
supp
ly ch
ain w
ere i
n ord
er to
ide
ntify
and a
ddre
ss an
y gap
s in
comp
etenc
y lev
els. M
anag
emen
t
Corp
orate
Se
rvice
s N
Mazw
ayi
Name
: Mkh
useli
Mx
ekez
o Po
sition
: Hum
an
Reso
urce
s Man
ager
31-M
ar-1
7
181
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
by M
unici
pal R
egula
tions
on
Minim
um C
ompe
tency
Leve
ls 13
.
to es
calat
e the
prog
ress
and
chall
enge
s at M
ANCO
MGT
Repo
rt 86
Hu
man r
esou
rces
mana
geme
nt
The m
unici
pality
did n
ot su
bmit
a rep
ort o
n com
plian
ce w
ith
pres
cribe
d com
peten
cy le
vels
to the
Nati
onal
Trea
sury
and
relev
ant p
rovin
cial tr
easu
ry as
re
quire
d by t
he M
unici
pal
Regu
lation
s on M
inimu
m Co
mpete
ncy L
evels
14(2
)(a).
Comp
lianc
e HR
dep
artm
ent to
subm
it a re
port
on co
mplia
nce w
ith pr
escri
bed
comp
etenc
y lev
els to
the N
ation
al Tr
easu
ry an
d rele
vant
prov
incial
tre
asur
y as r
equir
ed by
the
Munic
ipal R
egula
tions
on M
inimu
m Co
mpete
ncy L
evels
14(2
)(a).
Corp
orate
Se
rvice
s N
Mazw
ayi
Name
: Mkh
useli
Mx
ekez
o Po
sition
: Hum
an
Reso
urce
s Man
ager
30-Ju
n-17
MGT
Repo
rt 87
Hu
man r
esou
rces
mana
geme
nt
The a
nnua
l repo
rt of
the
munic
ipality
did n
ot re
flect
infor
matio
n on c
ompli
ance
with
pr
escri
bed m
inimu
m co
mpete
ncies
as re
quire
d by
the M
unici
pal R
egula
tions
on
Minim
um C
ompe
tency
Leve
ls 14
(2)(b
).
Comp
lianc
e Th
e 201
5/16 A
nnua
l Rep
ort is
to
be up
dated
to in
clude
or re
flect
infor
matio
n on c
ompli
ance
with
pr
escri
bed m
inimu
m co
mpete
ncies
as
requ
ired b
y the
Mun
icipa
l Re
gulat
ions o
n Mini
mum
Comp
etenc
y Lev
els 14
(2)(b
).
Corp
orate
Se
rvice
s N
Mazw
ayi
Name
: Mkh
useli
Mx
ekez
o Po
sition
: Hum
an
Reso
urce
s Man
ager
25-Ja
n-17
MGT
Repo
rt 88
IT
Gov
erna
nce
The I
nform
ation
and
Comm
unica
tion T
echn
ology
(IC
T) go
vern
ance
fram
ewor
k do
cume
nt wa
s not
comp
rehe
nsive
and s
till in
draft
. As
a re
sult s
uffiei
cent
contr
ols
for th
e effe
ctive
man
agem
ent
and i
mplem
entat
ion of
IT
Gove
rnan
ce w
ere n
ot pu
t in
place
. Som
e of th
e key
polic
ies
to go
vern
the e
nviro
nmen
t wer
e als
o not
yet d
ocum
ented
. In
addit
ion, th
e mun
icipa
lity fa
ces
the ch
allen
ge of
limite
d ICT
staff
to
assis
t with
fully
imple
menti
ng
relev
ant IC
T co
ntrols
. This
was
du
e to t
hat IT
man
agem
ent w
as
not a
ware
of ho
w the
IT
gove
rnan
ce F
rame
work
docu
ment
and s
ome p
olicie
s sh
ould
entai
l.
Infor
matio
n Te
chno
logy
The I
nform
ation
and
Comm
unica
tion T
echn
ology
(ICT
) go
vern
ance
fram
ewor
k doc
umen
t sh
ould
be d
rafte
d and
be
nchm
arke
d aga
inst th
ose o
f sim
ilar o
rgan
isatio
ns to
ensu
re th
at it i
s com
preh
ensiv
e. Th
e dra
ft ICT
go
vern
ance
fram
ewor
k sho
uld th
en
be fo
rwar
ded t
o the
relev
ant
struc
tures
for r
eview
, app
rova
l and
ad
optio
n.Man
agem
ent s
houl
comm
ence
with
Imple
menta
tion o
f Ph
ase 1
ofthe
gove
rnan
ce
frame
work
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: B
ongis
a No
dada
Posit
ion: IC
T Ma
nage
r
30-Ju
n-17
182
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
MGT
Repo
rt 89
Se
curity
Man
agem
ent
Inter
venti
on is
requ
ires a
roun
d the
secu
rity m
anag
emen
t co
ntrols
as co
ntrols
wer
e ina
dqua
tely d
esign
ed an
d im
pleme
nted f
or th
e ma
nage
ment
of fire
walls
,. The
wa
s no f
orma
lly do
cume
nted
and a
ppro
ved f
irewa
ll ma
nage
ment
polic
y to g
uide t
he
secu
rity te
am on
how
to co
nfigu
re th
e fire
wall a
ccor
ding
to re
quire
ments
and t
he be
st int
eres
ts of
the m
unici
pality
. The
fire
wall l
ogs w
ere n
ot re
gular
ly re
viewe
d and
the c
hang
es
made
on th
e fire
wall b
y the
ad
minis
trator
wer
e not
reco
rded
. Th
is wa
s due
to th
e fac
t that
the
ICT
depa
rtmen
t was
not fu
lly
capa
citate
d and
as su
ch st
affs
have
been
assig
ned m
ultipl
e re
spon
sibilit
ies an
d a lo
w pr
iority
wa
s plac
ed on
firew
all
mana
geme
nt. In
addit
ion to
this,
the
curre
nt IC
T tec
hnica
l staf
f did
not h
ave t
he ex
perie
nce t
o mo
nitor
and m
anag
e the
fire
walls
.
Infor
matio
n Te
chno
logy
1. Re
view
of IC
T pr
oced
ure
manu
al to
incor
pora
te fire
wall
mana
geme
nt.2.
Appr
oval
of IC
T pr
oced
ure m
anua
l3.
Imple
menta
tion o
f fire
wall
mana
geme
nt pr
oced
ure.
4.Con
duct
a fire
wall t
raini
ng an
d sk
ills tr
ansfe
r on I
CT st
aff.
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: B
ongis
a No
dada
Posit
ion: IC
T Ma
nage
r
28 F
ebru
ary
2017
30 A
pril
2017
31 M
ay
2017
, on
going
28
Febr
uary
2017
MGT
Repo
rt 90
IT
Ser
vice C
ontin
uity
Inter
venti
on is
requ
ires a
roun
d the
secu
rity co
ntrols
; wer
e not
adeq
uatel
y des
igned
and
imple
mente
d. Th
e Di
saste
r Re
cove
ry Pl
an (D
RC) w
as no
t ye
t doc
umen
ted. F
ull sy
stem
back
up re
store
s wer
e not
perfo
rmed
regu
larly
as th
e ba
ckup
resto
res w
ere d
one
base
d on u
ser r
eque
sts. T
his
can b
e attr
ibuted
to th
at a l
ow
prior
ity w
as pl
aced
on
Infor
matio
n Te
chno
logy
1. Re
view
of the
Dra
ft Data
Re
cove
ry Pl
an by
Inter
nal A
udit
2. Ap
prov
al an
d imp
lemen
tation
of
the D
RP
3. Re
view
the cu
rrent
data
back
up
and r
ecov
ery p
olicie
s and
pr
oced
ures
4.
Appr
oval
of da
ta da
ta ba
ckup
an
d rec
over
y poli
cies a
nd
proc
edur
es
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: B
ongis
a No
dada
Po
sition
: ICT
Mana
ger
28 F
ebru
ary
2017
30
June
2017
30
Mar
ch
2017
30
June
2017
183
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
imple
menti
ng an
d tes
ting t
he
DRP
due t
o bud
get c
onstr
aints.
MG
T Re
port
91
Prog
ram
Chan
ge
Mana
geme
nt
Prog
ram
chan
ge m
anag
emen
t co
ntrols
wer
e con
cern
ing, d
ue
to tha
t alth
ough
the c
hang
e ma
nage
ment
proc
edur
es w
ere
docu
mente
d, the
y wer
e not
comp
rehe
nsive
. In ad
dition
, the
acce
ss of
the v
endo
rs/
prog
ramm
ers t
o the
prod
uctio
n en
viron
ment
was n
ot mo
nitor
ed.
This
was d
ue to
over
sight
by
mana
geme
nt to
ensu
re th
at the
co
ntrols
are a
dequ
ately
docu
mente
d. Al
so th
ere w
ere
limite
d ICT
reso
urce
s to e
nsur
e eff
ectiv
e mon
itorin
g of th
e se
rvice
prov
iders.
Infor
matio
n Te
chno
logy
1. Be
nchm
ark
chan
ge
mana
geme
nt pr
oced
ures
and
proc
esse
s with
othe
r insti
tution
s 2.
Revie
w cu
rrent
contr
ols to
ensu
re
effec
tive c
hang
e man
agem
ent.
3. Ap
prov
al of
revie
wed c
hang
e ma
nage
ment
proc
edur
es4.
Imple
menta
tion o
f cha
nge
mana
geme
nt pr
oced
ures
Offic
e of th
e Mu
nicipa
l Ma
nage
r
T Mn
yimba
Na
me: B
ongis
a No
dada
Posit
ion: IC
T Ma
nage
r
28 F
ebru
ary
2017
31
March
20
1730
Apr
il 20
1730
May
20
17
MGT
Repo
rt 92
EF
T Pr
oces
s Rev
iew
EFT
proc
ess c
ontro
ls wh
ich
would
prov
ide as
sura
nce t
hat
the pa
ymen
t sys
tem is
wor
king
effec
tively
as it
is de
signe
d, se
greg
ation
of du
ties i
s ma
intain
ed an
d acc
ess i
s re
strict
ed, w
ere a
lso in
trodu
ced
to the
mun
icipa
lity as
a ne
w foc
us ar
ea au
dited
. It w
as th
e esta
blish
ed th
at co
ntrols
wer
e not
desig
ned a
nd
infor
mal c
ontro
ls we
re
inade
quate
ly im
pleme
nted.
This
was d
ue to
over
sight
by
mana
geme
nt to
deve
lop th
e EF
T St
anda
rd O
pera
ting
Proc
edur
es (S
OP) a
nd
imple
ment
the re
quire
d con
trols.
In
addit
ion, IT
staff
cons
traint
s we
re an
ongo
ing ch
allen
ge.
Finan
cial
mana
geme
nt to
deve
lop th
e EFT
St
anda
rd O
pera
ting P
roce
dure
s (S
OP) a
nd im
pleme
nt the
requ
ired
contr
ols.
Budg
et an
d Tr
easu
ry V
Make
dama
Ch
ief A
ccou
ntant
31-M
ar-1
7
184
COAF
# EX
C #
Exce
ptio
n He
adin
g Su
mm
ary o
f Fin
ding
Na
ture
Su
gges
ted
Cont
rol
Impr
ovem
ents
Di
rect
orat
e HO
D Re
spon
sible
Offic
ial
Tim
e Lin
e
PY A
AP
93
Prolo
nged
vaca
ncies
in
key s
enior
ma
nage
ment
posit
ions
Delay
s in R
ecru
itmen
t of S
taff.
Inter
nal
Contr
ol To
prior
itise t
he fil
ling o
f all c
ritica
l va
cant
and f
unde
d Pos
ts Co
rpor
ate
Servi
ces
N Ma
zway
i Na
me: M
khus
eli
Mxek
ezo
Posit
ion: H
uman
Re
sour
ces M
anag
er
30-A
pr-1
7
PY A
AP
94
Munic
ipality
did n
ot ha
ve a
prop
er re
cord
ma
nage
ment
syste
m in
place
This
is as
resu
lt of li
mited
offic
e sp
ace
Inter
nal
Contr
ol Ma
nage
ment
to Fin
alise
the
reco
rds m
anag
emen
t exe
rcise
to
ensu
re pr
oper
fillin
g and
ease
of
retrie
val o
f doc
umen
ts.
Corp
orate
Se
rvice
s N
Mazw
ayi
Mana
ger A
dmin
30-Ju
n-17
Prep
ared
:
Revie
wed:
Endo
rsed:
Ap
prov
ed:
__
____
____
____
____
__
____
____
____
____
____
____
____
____
____
____
__
____
____
____
____
__
V.
Mak
heda
ma
T
Mnyim
ba
Cl
lr MT
Siwi
sa
Cllr N
E Ma
gingx
a
Chief
Fina
ncial
Offic
er
Munic
ipal M
anag
er
Ma
yor
Spea
ker
Da
te:
Date:
Date:
Da
te:
185
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
KPA
1: IN
STIT
UTIO
NAL
DEVE
LOPM
ENT
AND
ORGA
NISA
TION
AL P
ERFO
RMAN
CE
KPA
Weig
ht 2
0%
To en
sure
timeo
us an
d co
mplia
nt fill
ing of
va
cant
and b
udge
ted
posit
ions b
y 201
7 and
be
yond
Fillin
g of a
ll vac
ant a
nd
budg
eted p
osts
withi
n 90
days
from
the d
ay of
re
ceivi
ng re
ques
t for f
illing
of
post
form.
Fillin
g of a
ll bu
dget
posit
ions
C01
R2 72
8 319
11
Pos
itions
ha
ve be
en
filled
1. Q3
Adv
erts.
2.
Appo
intme
nt let
ters s
igned
by
the
Acco
untin
g Of
ficer
. 1.
Q4 A
dver
ts.
2. Ap
point
ment
letter
s sign
ed
by th
e Ac
coun
ting
Offic
er.
10 P
ositio
ns
to be
filled
. Ac
hieve
d N/
A N/
A Ex
ecuti
ve
Mana
ger:
Corp
orate
Se
rvice
s
To en
sure
conti
nuou
s co
mplia
nce t
he
Emplo
ymen
t Equ
ity
Plan
by 20
17 an
d be
yond
Enfor
ce an
d mon
itor
imple
menta
tion o
f the E
EP
in lin
e with
the E
E ac
t
Numb
er
emplo
yees
from
de
signa
ted gr
oups
C02
Em
ploym
ent e
quity
plan
in
place
.
1. Q3
Co
mplet
ed
EEP.
2.
Proo
f of
subm
ission
. 1.Q
4 2
inter
venti
ons
16
Inter
venti
ons
made
as pe
r the
EEP
.
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
To co
ntinu
ously
build
ca
pacit
y and
impr
ove
perfo
rman
ce at
all
levels
of th
e mu
nicipa
lity by
2017
an
d bey
ond
Enfor
ce im
pleme
ntatio
n an
d adh
eren
ce to
the
WSP
Numb
er of
tra
ining
s im
pleme
nted p
er
WSP
C03
W
SP w
as
deve
loped
1. Q1
&Q2.R
epor
t sig
ned.
2. At
tenda
nce
regis
ter an
d ag
enda
. 3.
Inter
venti
ons
made
and
identi
fied
Train
ing
need
s. 1.
Q3&Q
4 Re
port
signe
d. 2.
Inter
venti
ons
made
3.
Adop
ted
WSP
and
25
inter
venti
ons
to be
mad
e
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
187
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
coun
cil
reso
lution
. To
conti
nuou
sly
impr
ove p
erfor
manc
e to
midd
le ma
nage
ment
levels
and O
fficer
s of
the m
unici
pality
by
2017
and b
eyon
d
Imple
menta
tion o
f the
PMS
frame
work
(casc
ading
of P
MS)
Numb
er of
em
ploye
es w
ith
signe
d Ser
vice
Deliv
ery
Agre
emen
ts
C04
Al
l midd
le ma
nage
rs do
not h
ave
servi
ce
deliv
ery
agre
emen
t
1. Q3
W
orks
hop
repo
rt.
2. At
tenda
nce
regis
ter an
d Pr
ogra
mme.
1.Q4 L
ist of
all
midd
le ma
nage
rs ha
ving s
igned
PA
, list
to be
sig
ned b
y Di
recto
r’s
All m
iddle
mana
gers
to su
bmit s
ervic
e de
liver
y ag
reem
ents
templa
tes
Not A
chiev
ed
Delay
s in
deve
loping
pr
oces
s plan
for
prop
er
imple
menta
tion o
f this
targe
t.
To be
im
pleme
nted
in the
first
quar
ter of
20
16/17
fin
ancia
l yea
r.
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
To en
sure
conti
nuou
s im
pleme
ntatio
n of
Munic
ipal v
ision
and
miss
ion th
roug
h Hu
man R
esou
rces
Mana
geme
nt pla
n by
2017
and b
eyon
d.
Imple
menta
tion o
f the H
R pla
n Nu
mber
of
inter
venti
ons
imple
mente
d per
HR
plan
C05
Oper
ation
al
4 qua
rterly
re
ports
ha
ve be
en
made
1. Si
gned
qu
arter
ly re
ports
.
4 qua
rterly
re
ports
. Ac
hieve
d N/
A N/
A Ex
ecuti
ve
Mana
ger:
Corp
orate
Se
rvice
s
Conti
nuou
sly m
aintai
n a c
ondu
cive w
orkin
g re
lation
ship
betw
een
the em
ploye
r and
em
ploye
es of
NLM
for
the fu
rther
ance
of
servi
ce de
liver
y by
2017
and b
eyon
d
Coor
dinate
foru
m
meeti
ngs i
n line
with
as
per a
pplic
able
legisl
ation
s an
d agr
eeme
nts
Numb
er of
me
eting
s held
C0
6 4
quar
terly
LLF
Meeti
ngs
have
been
co
nven
ed
1. Qu
arter
ly LL
F re
ports
sig
ned.
2. At
tenda
nce
Regis
ter an
d Pr
ogra
mme.
4 qua
rterly
LL
F Me
eting
s. Ac
hieve
d N/
A N/
A Ex
ecuti
ve
Mana
ger:
Corp
orate
Se
rvice
s
Effec
tive
imple
menta
tion o
f we
llnes
s pro
gram
mes
by 20
17 an
d bey
ond
Cond
uct e
mploy
ee
welln
ess a
ware
ness
wo
rksho
ps to
ma
nage
ment,
coun
cillor
s an
d staf
f
No. o
f emp
loyee
we
llnes
s aw
aren
ess
works
hops
co
nduc
ted
C07
4 qu
arter
ly W
ellne
ss
works
hops
ha
ve be
en
cond
ucted
.
1. Si
gned
wo
rksho
p re
port.
2.
Atten
danc
e re
gister
and
Prog
ramm
e
4 qua
rterly
we
llnes
s wo
rksho
ps to
be
cond
ucted
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
188
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To co
ntinu
ously
ensu
re
the pr
ovisi
on of
eff
ectiv
e and
effic
ient
coun
cil su
ppor
t se
rvice
s to t
he co
uncil
an
d its
struc
tures
by
Ensu
ring t
he av
ailab
ility
and a
dher
ence
to th
e Mu
nicipa
l Insti
tution
al Ca
lenda
r alig
ned t
o all
appli
cable
legis
lation
s by
2017
and b
eyon
d.
Deve
lopme
nt of
Institu
tiona
l Cale
ndar
by
June
2015
Repo
rt on
numb
er
of co
uncil
and
coun
cil st
ructu
res
meeti
ngs h
eld
C08
R1 77
2 327
Co
uncil
ca
lenda
r is
in pla
ce.
1. Ad
opted
co
uncil
ca
lenda
r. 2.C
ounc
il re
solut
ion
Adop
ted
coun
cil
calen
dar
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
Di
stribu
tion o
f cou
ncil
notic
es an
d age
nda t
o co
uncil
and c
ounc
il str
uctur
es se
ven d
ays
befor
e the
mee
ting o
r as
per t
he ad
opted
Stan
ding
Rules
for s
pecia
l mee
tings
Numb
er of
coun
cil
notic
es di
stribu
ted
to co
uncil
and
coun
cil st
ructu
re.
C09
4 O
rdina
ry co
uncil
me
eting
s we
re he
ld.
1. Ne
wspa
per
adve
rts.
2. At
tenda
nce
regis
ter
4 Qua
rterly
Co
uncil
me
eting
s
Partia
lly
Achie
ved
no fo
ur
quar
terly
ordin
ary
coun
cil
meeti
ngs w
ere
conv
ened
The t
arge
t has
be
en co
rrecte
d for
2016
/17
finan
cial y
ear,
so as
to
acco
mmod
ate
spec
ial co
uncil
me
eting
s as
well.
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
Si
gned
Cou
ncil
and C
ounc
il St
ructu
res
Minu
tes an
d re
solut
ions
C10
4 S
tandin
g co
mmitte
es
and E
xco
Meeti
ngs
were
held.
. Exc
o ag
enda
.2.
Exco
At
tenda
nce
regis
ter.1.
St
andin
g co
mmitte
e ag
enda
.2.
Atten
danc
e re
gister
.
4 Ord
inary
stand
ing
Comm
ittee
and E
xco
Meeti
ngs
Partia
lly
Achie
ved
Exco
mee
tings
we
re
conv
ened
but
stand
ing
comm
ittees
we
re no
t co
nven
ed as
pe
r the
SDB
IP. M
onito
ring
tool is
in pl
ace
for 20
16/17
fin
ancia
l yea
r. Ex
ecuti
ve
Mana
ger:
Corp
orate
Se
rvice
s
Exter
nal
Publi
catio
n of
coun
cil m
eetin
gs
C11
4 A
dver
ts for
coun
cil
meeti
ngs
To
have
ex
terna
l ad
verts
for a
ll co
uncil
me
eting
s.
Par
tially
Ac
hieve
d On
ly thr
ee
adve
rts fo
r co
uncil
me
eting
s, the
re
st of
the
coun
cil
meeti
ngs w
ere
the t
arge
t has
be
en co
rrecte
d in
2016
/17
SDBI
P
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
189
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
48 ho
ur
notic
es.
Prom
ote A
ccou
ntable
&
Effic
ient A
dmini
strati
on
by 20
17 an
d bey
ond
% of
emplo
yees
that
have
sig
ned C
ode o
f con
duct.
Ef
ficien
t ad
minis
tratio
n C1
2 E
mploy
ee
code
s of
cond
uct in
ex
isten
ce
1.Rep
ort
signe
d by H
OD
and a
ppro
ved
by th
e MM.
100%
em
ploye
es to
sig
n cod
es of
co
nduc
t.
Ach
ieved
N/
A N
/A
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
Coor
dinate
insti
tution
al tea
m Bu
ilding
Exe
rcise
. Ins
titutio
nal te
am
build
ing ex
ercis
e to
be he
ld .
C13
R 49
,120
Team
bu
ilding
ini
tiativ
es
not in
ex
isten
ce.
1. Te
am
build
ing re
port.
2.
Atten
danc
e re
gister
.
1 Tea
m Bu
ilding
A
chiev
ed
N/A
N/A
Ex
ecuti
ve
Mana
ger:
Corp
orate
Se
rvice
s
Coor
dinate
orga
nisati
onal
deve
lopme
nt an
d des
ign
Appo
int su
itable
se
rvice
prov
ider
and a
dver
tise o
n pa
per.
R
300,0
00
Orga
nisati
ona
l de
velop
men
t and
desig
n is
not in
pla
ce.
1. Q3
Adv
ert
2. Ap
point
ment
letter
. 1.
Q4 ad
opted
re
port
and
coun
cil
reso
lution
.
Orga
nisati
ona
l dev
elopm
ent
and d
esign
.
Par
tially
Ac
hieve
d Th
e ser
vice
prov
ider w
as
evalu
ated b
ut ad
judica
tion
and
appo
intme
nt de
layed
due t
o fin
ancia
l co
nstra
ints
The
servi
ce
prov
ider t
o be
appo
inted
at
the be
ginnin
g of
2016
/17
finan
cial y
ear.
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
To co
ntinu
ously
ma
intain
a ful
ly fun
ction
al re
cord
s ma
nage
ment
syste
m by
adhe
ring t
o the
pr
incipl
es of
the
Natio
nal A
rchive
s Act
by 20
17 an
d bey
ond.
Revie
wal o
f Rec
ords
Ma
nage
ment
Polic
y and
Re
cord
s Man
agem
ent
Proc
edur
es by
Sep
tembe
r 20
15
Repo
rts on
Re
cord
s Ma
nage
ment
Polic
y rev
iew &
Re
cord
s Ma
nage
ment
Pr
oced
ures
C14
R 38
,122
Reco
rds
mana
geme
nt po
licy
and
proc
edur
e ha
s not
been
re
viewe
d.
.Q1P
roce
dure
ma
nual
and
proo
f of
appr
oval.
1. Q3
Wor
ksho
p re
port
signe
d. 2.
Atten
danc
e re
gister
.1.Q4
im
pleme
ntatio
n re
port
signe
d by
HOD
.
Reco
rds
Mana
geme
nt po
licy
revie
wed a
nd
mana
geme
nt pr
oced
ure.
Partia
lly
Achie
ved
Prior
ity w
as
given
to B
TO
polic
ies
To be
done
in
the se
cond
qu
arter
of
2016
/17
finan
cial y
ear.
Exec
utive
Ma
nage
r: Co
rpor
ate
Servi
ces
KPA2
: BAS
IC S
ERVI
CE D
ELIV
ERY
AND
INFR
ASTR
UCTU
RE
KPA
Weig
ht 20
%
To en
sure
effec
tive,
effici
ent a
nd
econ
omica
l pro
vision
of
electr
ical s
ervic
es an
d str
eet li
ghtin
g to t
he
Maint
enan
ce of
ligh
ts in
rura
l are
as
No of
lights
ma
intain
ed in
a vil
lage
I01
R1,50
0,000
40
0 Stre
et lig
hts ha
ve
been
ma
intain
ed
1. Q1
to Q
4 qu
arter
ly re
ports
sign
ed
by th
e HOD
.
750 S
treet
lights
to be
ma
intain
ed
Partia
lly
Achie
ved
The s
ervic
e pr
ovide
r was
ap
point
ed la
te du
e to f
inanc
ial
cons
traint
s
The s
ervic
e pr
ovide
r has
be
en
appo
inted
and
the pr
oject
will
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
190
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
comm
unity
of
Ngqu
shwa
by
2015
/2016
start
at the
be
ginnin
g of
2015
/16
finan
cial y
ear.
Ma
inten
ance
of m
unici
pal
build
ings
No of
build
ings t
o be
main
taine
d I02
R1
,621,7
14
No
munic
ipal
build
ing ha
s be
en
maint
ained
.
1. Q1
to Q
4 qu
arter
ly re
ports
sign
ed
by H
OD.
7 mun
icipa
l bu
ilding
s ma
intain
ed
annu
al in
terms
of
quar
ters
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Ma
inten
ance
of M
unici
pal
Comm
unity
halls
No
of co
mmun
ity
halls
to be
ma
intain
ed
I03
R600
,000
4 mun
icipa
l co
mmun
ity
halls
have
be
en
maint
ained
1. Q1
to Q
4 Re
ports
sign
ed
by H
OD.
10 co
mmun
ity
halls
ma
intain
ed
per a
nnum
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Ma
inten
ance
of st
reet
lights
and h
igh m
ast li
ghts
in ur
ban a
reas
.
No of
stre
et lig
hts
and h
igh m
asts
lights
main
taine
d in
urba
n are
as.
I04
R1,00
0,794
50
% of
mu
nicipa
l hi
mast
lights
an
d stre
et lig
hts ha
ve
been
ma
intain
ed
1. Q1
to Q
4 Re
port
signe
d by
the H
OD
High
mas
t lig
hts
maint
ained
10
0% an
d 10
0 Stre
et lig
hts
maint
ained
.
Partia
lly
Achie
ved
80%
of th
e hig
h mas
t lig
hts
maint
ained
an
d stre
et lig
hts w
ere n
ot ma
intain
ed
100%
, this
was
due t
o fina
ncial
co
nstra
ints.
This
proje
ct is
ongo
ing as
ma
intain
ed is
cu
rrentl
y tak
ing pl
ace,
and t
o be
finali
zed a
t the
end o
f the f
irst
quar
ter of
20
16/17
fin
ancia
l yea
r.
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Fa
cilita
tion o
f Insta
llatio
n of
electr
icity
in vil
lage
exten
sions
No of
mee
tings
an
d list
of vi
llage
ex
tensio
ns
I05
Pr
oject
list
was
subm
itted t
o Es
kom.
1. Q1
Rep
ort
signe
d by
HOD.
1.
Q2&Q
3 At
tenda
nce
regis
ter.
2. A
gend
a of
the m
eetin
g. 3.
Sign
ed
minu
tes.
June
2015
a pr
oject
list
subm
itted t
o Es
kom
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
191
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To en
sure
a pr
oper
co
mmun
icatio
n be
twee
n Ngq
ushw
a LM
and A
DM in
issu
es of
wa
ter an
d san
itatio
n by
2015
/16 an
d bey
ond.
Arra
nging
and a
ttend
ing of
me
eting
s for
wate
r and
sa
nitati
on.
No of
mee
tings
att
ende
d I06
Op
erati
onal
3 Qua
rterly
me
eting
s we
re
atten
ded.
1. Q1
to Q
4 At
tenda
nce
regis
ter.
2. A
gend
a of
the m
eetin
g. 3.
Sign
ed
minu
tes.
4 Qua
rterly
me
eting
s att
ende
d
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
To en
sure
Con
struc
tion
of ex
isting
acce
ss
road
s and
inter
nal
stree
ts by
2015
/16 an
d be
yond
.
Cons
tructi
on of
Mgw
alana
int
erna
l road
s No
of km
’s of
grav
el ro
ad
cons
tructe
d
I07
R277
,280
No
Kilom
eters
w ere
co
nstru
cted
at Mgwa
lana.
1. Q1
Des
ign
repo
rt.
1. Q2
Ne
wspa
per
adve
rt for
co
nstru
ction
. 1.
Q3
Appo
intme
nt let
ter.
1. Q4
Pro
ject
comp
letion
ce
rtifica
te.
14 km
of
inter
nal ro
ads
to be
grav
eled
at Mg
walan
a
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
r vice
s
Co
nstru
ction
of D
ube
Sche
me ac
cess
road
No
of km
’s of
grav
el ro
ad
cons
tructe
d
I08
R4 00
0 000
No
Ki
lomete
rs we
re
cons
tructe
d at
Dube
.
1. Q1
Des
ign
repo
rt.
1. Q2
Ne
wspa
per
adve
rt for
co
nstru
ction
. 1.
Q3
Appo
intme
nt let
ter.
1. Q4
Pro
ject
comp
letion
ce
rtifica
te.
3,5 km
acce
ss
road
in D
ue
cons
tructe
d
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Co
nstru
ction
of
Ngxa
kaxh
a Sch
eme
acce
ss ro
ads.
No of
km’s
of gr
avel
road
co
nstru
cted
I09
R2,00
0,000
No
Ki
lomete
rs we
re
cons
tructe
d at Ng
xaka
xha
1. Q1
Des
ign
repo
rt.
1. Q2
Ne
wspa
per
adve
rt for
co
nstru
ction
1.
Q3
3,8 km
of
grav
el ro
ads
cons
tructe
d in
Ngxa
kaxh
a
Partia
lly
Achie
ved
Shor
tage o
f pla
nt op
erato
rs re
sulte
d in t
he
delay
of
cons
tructi
on of
Tu
ku A
, int
erna
l road
s
Appo
intme
nt of
plant
oper
ators
first
quar
ter of
20
16/17
fin
ancia
l yea
r.
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
192
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Appo
intme
nt let
ter.
1. Q4
Pro
ject
comp
letion
ce
rtifica
te.
which
is al
so
being
done
int
erna
lly.
Co
nstru
ction
of T
uku A
n ac
cess
road
No
of km
’s of
grav
el ro
ad
cons
tructe
d
I10
R4,00
0,000
No
Ki
lomete
rs we
re
cons
tructe
d
1. Q1
Des
ign
repo
rt.
1. Q2
Ne
wspa
per
adve
rt for
co
nstru
ction
1.
Q3
Appo
intme
nt let
ter.
1. Q4
Pro
ject
comp
letion
ce
rtifica
te
8,7 km
of
grav
el ro
ad
cons
tructe
d in
Tuku
A
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
To en
sure
main
tenan
ce
of ex
isting
acce
ss
road
s and
relat
ed
storm
wate
r by 2
015/1
6 an
d bey
ond.
Blad
ing of
exist
ing gr
avel
road
s in r
ural
area
s. No
of km
’s of
exist
ing gr
avel
road
s blad
ed
(Dry
bladin
g
I11
R4,00
0,000
25
% of
Ex
isting
gr
avel
road
s wer
e bla
ded.
1. Q1
to Q
4 Re
port
signe
d by
HOD
120k
m Gr
avel
road
s blad
ed
in ru
ral a
reas
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Potho
le pa
tching
in ur
ban
area
s Sq
uare
mete
rs of
potho
le pa
tched
in
urba
n ar
eas.(
Surfa
ced
Road
s)
I12
R4,10
0,240
50
% of
Sq
uare
Po
thole
patch
ing in
ur
ban a
reas
wa
s don
e.
1. Q1
to Q
4 Re
port
signe
d by
HOD
.
Patch
ing of
po
tholes
in
urba
n are
as
800 S
quar
e me
ter
Partia
lly
Achie
ved
Due t
o the
we
ather
and
finan
cial
cons
traint
s not
all po
tholes
we
re do
ne as
pe
r the
targ
et.
This
targe
t is
ongo
ing.
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Gr
avell
ing an
d clea
ning o
f sto
rm w
ater d
rains
in
urba
n are
as.
Squa
re m
eters
of gr
avel
road
s pa
tched
and n
o of
storm
wate
r dra
ins
clean
ed.
I13
R4,10
0,240
30
% of
sto
rm w
ater
drain
s and
re
-gra
vellin
g wa
s don
e.
1. Q1
to Q
4 Re
port
signe
d by
HOD
.
Re-g
rave
lling
of 5 k
m in
a fin
ancia
l yea
r an
d clea
ning
100m
open
v-dr
ains o
f sto
rm-w
ater in
ur
ban a
reas
.
Partia
lly
Achie
ved
The r
e-gr
avell
ing pa
rt of
this t
arge
t ha
s not
been
do
ne du
e to
the fa
ct the
co
uncil
took
a re
solut
ion to
co
nstru
ct
Appo
intme
nt of
plant
oper
ators
first
quar
ter of
20
16/17
fin
ancia
l yea
r.
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
193
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
proje
cts
inter
nally
. This
led
to th
e ma
inten
ance
off
ice no
t ha
ving
capa
city t
o do
re-g
rave
lling.
To
facil
itate
the
maint
enan
ce of
pr
ovinc
ial ro
ads a
nd
relat
ed st
orm
water
by
2015
/16 an
d bey
ond.
Facil
itate
the m
ainten
ance
of
prov
incial
road
s by
depa
rtmen
t of r
oads
and
trans
port
No of
mee
tings
ar
rang
ed an
d att
ende
d betw
een
NLM
and D
RPW
.
I14
Oper
ation
al 3 Q
uarte
rly
Meeti
ngs
were
att
ende
d
Atten
danc
e re
gister
. 2.
Age
nda o
f the
mee
ting.
3. S
igned
mi
nutes
.
4 mee
tings
to
be at
tende
d.
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
To en
sure
cons
tructi
on
of Co
mmun
ity H
alls b
y 20
15/16
and b
eyon
d
Cons
tructi
on of
Mqw
ashu
C o
mmun
ity H
all
% C
omple
tion o
f Mq
wash
u Co
mmun
ity H
all
I15
R1,25
6,717
No
co
mmun
ity
hall w
as
cons
tructe
d at
Mqwa
shu
1. Q1
Ap
point
ment
letter
. 1.
Q2
Cons
tructi
on
stage
and 5
0%
work
done
. 1.
Q3
Comp
letion
ce
rtifica
te.
100%
Co
mplet
ion of
Mq
wash
u co
mmun
ity
hall
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Co
nstru
ction
of N
ier
Comm
unity
Hall
%
Com
pletio
n of
Nier
Com
munit
y ha
ll
I16
R1,25
6,717
No
co
mmun
ity
Hall w
as
cons
tructe
d at
Nier
.
1. Q1
Ap
point
ment
letter
. 1.
Q2
Cons
tructi
on
stage
and 5
0%
work
done
1.
Q3
Comp
letion
ce
rtifica
te.
100%
co
mplet
ion of
Ni
er
Comm
unity
Ha
ll
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Co
nstru
ction
of N
dlamb
e Co
mmun
ity H
all
% C
omple
tion o
f Nd
lambe
Co
mmun
ity H
all
l17
Ndlam
be no
co
mmun
ity
Hall
1. Q1
Ap
point
ment
letter
. 1.
Q2
100%
Co
mplet
ion of
Nd
lambe
Achie
ved
194
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Cons
tructi
on
stage
and 5
0%
work
done
1.
Q3
Comp
letion
ce
rtifica
te.
Comm
unity
Ha
ll.
Co
ordin
ate co
nnec
tion o
f all
comm
unity
halls
10
0% co
nnec
tion
of all
unco
nnec
ted
comm
unity
halls
l18
R2,50
0,000
60
% of
co
mmun
ity
halls
are
conn
ected
.
1. Q3
& Q
4 Si
gned
Rep
ort
by H
OD on
co
nnec
tions
100%
co
nnec
tion f
or
all
unco
nnec
ted
comm
unity
ha
lls.
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
To en
sure
cons
tructi
on
of Sp
orts
field
by
2015
/16
Cons
tructi
on of
Ham
burg
Sp
orts
field
% C
omple
tion o
f Ha
mbur
g spo
rts
field
l19
R2,03
9,650
0%
spor
t fie
ld wa
s co
nstru
cted
at Hamb
urg.
1. Q1
Ap
point
ment
letter
. 1.
Q2 R
epor
t ind
icatin
g 25%
. 1.
Q3
Appo
intme
nt let
ter.
1. Q4
Co
mplet
ion
certif
icate.
100%
Co
mplet
ion of
Ha
mbur
g Sp
orts
Field
Partia
lly
Achie
ved
This
proje
ct sta
rted l
ate
due t
o ins
tabilit
y in
the
comm
unity
.
The p
rojec
t to
be fin
alize
d in
the fir
st qu
arter
of
2016
/17
finan
cial y
ear.
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Co
nstru
ction
of G
lenmo
re
Spor
ts fie
ld %
Com
pletio
n of
Glen
more
spor
ts fie
ld
l20
R25 2
64 11
6 0%
spor
t fie
ld wa
s co
nstru
cted
at Glen
more
.
1. Q2
Adv
ert
for
cons
tructi
on.
1. Q3
Ap
point
ment
letter
. 1.
Q4
Comp
letion
ce
rtifica
te.
100%
Co
mplet
ion of
Gl
enmo
re
Spor
ts Fie
ld
Achie
ved
N/A
N/A
Exec
utive
Ma
n age
r: Te
chnic
al Se
rvice
s
To en
sure
comm
itmen
t of
MIG
expe
nditu
re fo
r the
2015
/16 fin
ancia
l ye
ar
100 %
Spe
nding
of M
IG
funds
for 2
015/2
016 F
Y %
Com
pletio
n of
MIG
funds
for
2015
/2016
FY
l21
Oper
ation
al No
MIG
qu
arter
ly ex
pend
iture
re
port
was
prep
ared
.
1. Q1
to Q
4 Si
gned
ex
pend
iture
re
ports
.
100%
MIG
ex
pend
iture
re
port.
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
195
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To en
sure
comp
lianc
e an
d acc
ounta
bility
by
2015
/16.
Coor
dinate
im
pleme
ntatio
n of M
anco
re
solut
ions t
hat ta
lks to
Te
chnic
al Se
rvice
s.
Imple
menta
tion o
f Co
uncil
and
MANC
O re
solut
ions
l22
Oper
ation
al Co
uncil
re
solut
ion
regis
ter an
d MA
NCO
reso
lution
re
gister
we
re
prep
ared
.
1. Q1
to Q
4 Co
uncil
and
MANC
O re
solut
ion
regis
ter
No of
Cou
ncil
and M
ANCO
re
solut
ions
Achie
ved
N/A
N/A
Exec
utive
Ma
nag e
r: Te
chnic
al Se
rvice
s
Atten
d to
corre
ctive
s me
asur
es as
ide
ntifie
d in
inter
nal a
udit
repo
rts to
redu
ce
risk a
reas
with
in the
depa
rtmen
t
l23
3 C
orre
ctive
me
asur
es
identi
fied b
y IA
to re
duce
ris
k wer
e att
ende
d.
1. Up
dated
risk
regis
ter fo
r tec
hnica
l se
rvice
s with
25
% re
ducti
on
to ris
ks.
2 Qua
rterly
ma
nage
ment
repo
rts to
be
subm
itted.
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Atten
d to
corre
ctive
s me
asur
es as
ide
ntifie
d by A
G tal
king t
o the
de
partm
ent.
l24
4 %
of
issue
s ra
ised b
y A G
wer
e att
ende
d.
1. Q3
Upd
ated
audit
plan
sh
owing
40%
re
solve
d iss
ues.
1.Q4 U
pdate
d au
dit ac
tion
plan s
howi
ng
100%
reso
lved
100%
att
enda
nce o
n iss
ues r
aised
by
AG
affec
ting
Tech
nical
servi
ce.
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
To en
sure
prop
er
plann
ing on
road
s and
sto
rm w
ater b
y 201
5/16
and b
eyon
d
Coor
dinate
deve
lopme
nt of
road
and s
torm
water
ma
nage
ment
plan.
Deve
lop R
oad
and S
torm -
water
ma
nage
ment
Plan
l25
Oper
ation
al
Draft
Ma
inten
anc
e plan
not in
ex
isten
ce.
1. Q3
Adv
ert
for
cons
tructi
on.
2.
Appo
intme
nt let
ter.
1.Q4 D
raft
Maste
r Plan
Appr
oved
St
orm -
water
Ma
nage
ment
Maste
r Plan
.
Partia
lly
Achie
ved
Await
ing
appo
intme
nt by
the M
M
Appo
intme
nt by
the 3
0 of
Sep 2
016
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Deve
lop m
unici
pal
road
datab
ase i
n 20
15/16
.
l26
Ro
ad
datab
ase i
s no
t in
exist
ence
.
1. Q3
Dra
ft de
sktop
repo
rt sig
ned.
1. Q4
Dra
ft re
port
signe
d.
Data
base
for
all M
unici
pal
road
s and
Bu
sines
s
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
196
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
2. Bu
sines
s pla
ns fo
r all 1
3 wa
rds.
Plan
s for
each
wa
rd
Monit
oring
of fu
nds i
n MI
G pr
ojects
Mo
nthly
cash
flow
monit
oring
in 20
15/16
FY
proje
cts.
% fu
nds s
pent
in ea
ch pr
oject
l27
12
MIG
ca
sh flo
w re
ports
we
re
prod
uced
.
1. Mo
nthly
signe
d rep
orts
12 M
onthl
y ca
sh flo
w MI
G re
ports
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
Comm
itmen
t of E
PWP
expe
nditu
re fo
r the
20
15/16
finan
cial y
ear
100 %
Spe
nding
of E
PWP
funds
for 2
015/2
016 F
Y %
Com
pletio
n of
EPW
P fun
ds fo
r 20
15/20
16 F
Y
l28
12
EPW
P sp
endin
g re
ports
we
re
prod
uced
.
1.12 m
onths
sig
ned E
PWP
expe
nditu
re
repo
rts.
12 E
PWP
expe
nditu
re
repo
rts.
Achie
ved
N/A
N/A
Exec
utive
Ma
nage
r: Te
chnic
al Se
rvice
s
KPA
3 : F
INAN
CIAL
VIA
BILI
TY
K
PA W
eight
20%
To
have
and m
aintai
n an
effic
ient a
nd
effec
tive s
ystem
of
expe
nditu
re
mana
geme
nt by
20
15/16
and b
eyon
d.
Revie
wal o
f exis
ting
polic
ies an
d the
proc
edur
e ma
nuals
and i
ts im
pleme
ntatio
n and
mo
nitor
ing.
Appr
oved
re
viewe
d poli
cies
and p
roce
dure
ma
nuals
by
Coun
cil fo
r con
trol
envir
onme
nt
F01
R 44
2 808
Ex
pend
iture
ma
nage
ment
polic
y in
place
.
1.Poli
cy
2.Cou
ncil
reso
lution
Appr
oved
ex
pend
iture
ma
nage
ment
polic
y.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Ensu
re al
l com
plian
ce
reco
ncilia
tions
and
expe
nditu
re re
lated
re
ports
are d
one
timeo
usly.
Timeo
usly
reco
ncilia
tion a
nd
expe
nditu
re
repo
rts pr
epar
ed
base
d on t
he ag
e an
alysis
from
the
finan
cial s
ystem
F02
12 ba
lance
sh
eets
items
re
conc
iliatio
n rep
orts
and o
ther
expe
nditu
re
repo
rts
were
pr
epar
ed
1. Q1
to Q
4 re
cons
and
expe
nditu
re
repo
rts si
gned
by
CFO
.
12 A
ccur
ate
reco
ncilia
tion
and o
ther
expe
nditu
re
repo
rts
prep
ared
and
revie
wed.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Ef
fectiv
e man
agem
ent o
f pa
yroll s
ystem
Pa
ymen
t of a
ll Of
ficial
s, Co
uncil
ors a
nd
third
partie
s with
in the
requ
ired
perio
d.
F03
12 P
ayro
ll re
ports
and
third
party
pa
ymen
t re
port
were
pr
epar
ed.
1. Q1
to Q
4 Re
ports
sign
ed
by C
FO.
12 P
ayro
ll re
ports
and
third
party
pa
ymen
t re
port.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
To co
ntinu
ously
ensu
re
an ef
ficien
t, effe
ctive
De
velop
ment,
Rev
iew an
d Mo
nitor
ing of
Rev
enue
Ap
prov
ed
revie
wed p
olicie
s F0
4 R
3,199
,707.0
0 Re
vue
enha
ncem
e1. En
hanc
emen
t Ap
prov
ed
Reve
nue
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
197
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
syste
m of
reve
nue
mana
geme
nt by
20
15/16
and b
eyon
d .
Mana
geme
nt Po
licies
, pr
oced
ure m
anua
ls an
d the
deve
lopme
nt of
reve
nue e
nhan
ceme
nt str
ategy
.
and p
roce
dure
ma
nuals
by
Coun
cil fo
r /co
ntrol
envir
onme
nt.
nt str
ategy
is
in pla
ce.
strate
gy.
2.Cou
ncil
reso
lution
enha
ncem
ent
strate
gy
Monit
or th
e im
pleme
ntatio
n of th
e Re
venu
e enh
ance
ment
Stra
tegy t
o inc
reas
e the
ov
erall
reve
nue c
ollec
tion
by 60
%
Month
ly re
venu
e co
llecti
on re
ports
. F0
5 12
mon
thly
reve
nue
colle
ction
s re
ports
we
re
prep
ared
.
1.Rep
orts
signe
d by C
FO
with
colle
ction
ra
te of
15%
x4
12 m
onthl
y re
venu
e co
llecti
ons
repo
rts.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Deve
lop th
ree y
ear
finan
cial re
cove
ry pla
n. Ap
prov
ed
Finan
cial re
cove
ry pla
n.
F06
Fin
ancia
l re
cove
ry pla
n is n
ot in
place
.
1. Q3
Dra
ft pla
n. 2.
Coun
cil
reso
lution
. 1.
Q4 fin
al pla
n. 2.C
ounc
il re
solut
ion
Appr
oved
thr
ee ye
ar
finan
cial
reco
very
plan
Not A
chiev
ed
Prov
incial
Tr
easu
ry co
uld
not a
ssist
as
requ
ested
The t
arge
t will
be
imple
mente
d in
the se
cond
qu
arter
of
2016
/17
Finan
cial y
ear.
Chief
Fina
ncial
Of
ficer
Ensu
re in
digen
t ho
useh
olds w
ithin
Ngqu
shwa
Loca
l Mu
nicipa
lity ju
risdic
tion
are r
egist
ered
for F
r ee
Basic
Ser
vices
Deve
loped
cre
dible
indige
nt re
gister
.
F07
Ind
igent
regis
ter is
in
place
.
1. Ind
igent
regis
ter
upda
ted.
2.Cou
ncil
reso
lution
Upda
ted
Indige
nt re
gister
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Data
Clea
nsing
(sou
nd
billin
g sys
tem fo
r su
staina
bility
)
Accu
rate
and
relia
ble of
mon
thly
billin
g info
rmati
on
syste
m tha
t will
be
reco
ncile
d with
va
luatio
n roll
on a
month
ly ba
ses.(
Month
ly bil
ling r
epor
t
F08
12
Mon
thly
accu
rate
billin
g inf
orma
tion
repo
rts
were
pr
epar
ed.
1. Q1
to Q
4 bil
ling r
epor
ts sig
ned b
y CF
O.
repo
rts fo
r 12
Month
s on
billin
g
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
To en
sure
and m
aintai
n an
effec
tive,
effici
ent,
fair,t
rans
pare
nt,co
mpati
Revie
w of
the ex
isting
scm
polic
ies an
d pro
cedu
re
manu
als an
d
Appr
oved
re
viewe
d poli
cies
and p
roce
dure
F09
R 34
,140
Revie
wed
SCM
polic
y 1.
Q3 D
raft
polic
y. 2.
Coun
cil
Appr
oved
and
revie
wed
SCM
polic
y.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
198
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
tive,
econ
omica
l and
co
st eff
ectiv
e sys
tem of
su
pply
chain
ma
nage
ment
by
2015
/16 an
d be y
ond
imple
menta
tion,
monit
oring
and r
epor
ting
manu
als by
Co
uncil
for c
ontro
l en
viron
ment.
is no
t in
place
. re
solut
ion.
1. Q4
Fina
l po
licy.
2.Cou
ncil
reso
lution
Ensu
re th
at the
re is
da
tabas
e man
agem
ent
syste
m, an
d ens
ure
comp
lianc
e with
SCM
re
gulat
ion in
ensu
ring
strict
ly us
e of s
uppli
ers
regis
tered
in th
e Mun
icipa
l su
pplie
r data
base
Imple
menta
ble
datab
ase i
n the
fin
ancia
l sys
tem.
F10
4 q
uarte
rly
Revie
wed
repo
rt on
us
e of
supp
liers
re
gister
ed
on
datab
ase
were
pr
epar
ed
1. Q1
to Q
4 re
viewe
d da
tabas
e sig
ned b
y CFO
4 qua
rterly
re
viewe
d da
tabas
e
Partia
lly
Achie
ved
Prov
incial
Tr
easu
ry ha
s int
rodu
ced
a ne
w ce
ntra
lised
Pr
ovinc
ial d
ata
base
To ut
ilised
da
tabas
e by
Prov
incial
Tr
easu
ry
Chief
Fina
ncial
Of
ficer
To en
sure
and m
aintai
n an
effec
tive,
effici
ent,
fair,
econ
omica
l and
eff
ectiv
e sys
tem of
su
pply
chain
ma
nage
ment
by
2015
/16 an
d bey
ond.
Imple
menta
tion o
f con
tract
mana
geme
nt sy
stem
as
per s
ec 11
6 of th
e MFM
A
Timeo
usly
repo
rting o
n pe
rform
ance
of al
l mu
nicipa
l ser
vices
pr
ovide
rs to
ensu
re th
at the
re
is va
lue fo
r mon
ey
for se
rvice
s re
nder
ed.
F11
3 qua
rterly
re
ports
for
servi
ce
prov
iders
perfo
rman
ce w
ere
prep
ared
1.Q1 t
o Q4
perfo
rman
ce
repo
rts of
se
rvice
pr
ovide
rs,
signe
d by C
FO
and S
CM
Mana
ger
Quar
terly
repo
rts fo
r se
rvice
pr
ovide
rs pe
rform
ance
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Imple
menta
tion o
f the
appr
oved
proc
urem
ent
plans
in lin
e with
20
15/20
16 S
DBIP
.
No. r
epor
ts pr
epar
ed on
im
pleme
ntatio
n of
the ap
prov
ed
proc
urem
ent p
lan.
F12
2 q
uarte
rly
repo
rts on
im
pleme
ntat
ion of
pr
ocur
emen
ts pla
ns
were
done
.
1. Q1
to Q
4 qu
arter
ly re
ports
sign
ed
by C
FO.
4 Qua
rterly
pr
ocur
emen
t pla
ns re
ports
to
coun
cil
struc
tures
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Effec
tive b
udge
t ma
nage
ment
syste
ms
by 20
15/16
and
beyo
nd.
Revie
w of
exist
ing po
licies
an
d the
proc
edur
e ma
nuals
and i
ts im
pleme
ntatio
n and
mo
nitor
ing
Appr
oved
re
viewe
d poli
cies
and p
roce
dure
ma
nuals
by
Coun
cil fo
r con
trol
envir
onme
nt
F13
R 38
,681
Polic
ies an
d pr
ocur
e ma
nuals
to
be re
viewe
d
1. Q1
.2 po
licies
2.
Coun
cil
reso
lution
. 1.Q
2.Fina
l po
licies
2 Rev
iewed
Bu
dget
polic
ies an
d 1
proc
edur
e Ma
nual
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
199
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
2.Cou
ncil
reso
lution
To
conti
nuou
sly
ensu
re ef
fectiv
e, ec
onom
ical a
nd
comp
liant
munic
ipal
busin
ess o
pera
tions
in
line w
ith ap
prov
ed
plans
by 20
15/16
and
beyo
nd
Prep
arati
on of
a bu
dget
proc
ess p
lan in
line w
ith
MFMA
and M
SA.
Adop
ted bu
dget
proc
ess p
lan by
co
uncil
befor
e 31
Augu
st an
d mo
nitor
its
imple
menta
tion.
F14
Budg
et pr
oces
s pla
n in
place
1. Pr
oces
s pla
n. 2.
Coun
cil
reso
lution
.
Appr
oved
bu
dget
proc
ess p
lan.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Pr
epar
ation
of a
reali
stic
and c
redib
le bu
dget
for
soun
d fina
ncial
ad
minis
tratio
n and
mo
nitor
ing its
im
pleme
ntatio
n.
Appr
oved
cred
ible
annu
al bu
dget
by
coun
cil an
d en
sure
its
imple
menta
tion
and m
onito
ring.
F15
Appr
oved
20
16/20
17
Budg
et in
place
1. Q1
to Q
2 Re
port
signe
d by
CFO
. 1.
Q3 D
raft
budg
et.
2. Co
uncil
re
solut
ion.
1. Q4
final
budg
et.
2. Co
uncil
re
solut
ion.
2016
/2017
bu
dget
appr
oved
by
coun
cil
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Month
ly pr
epar
ation
and
subm
ission
s of b
udge
t re
turns
and m
onthl
y re
quire
d rep
orts,
quar
terly
and h
alf ye
ar in
line w
ith
the M
FMA.
Proo
f of p
repa
red
revie
wed a
nd
subm
itted
month
ly, qu
arter
ly an
d half
year
re
ports
in lin
e with
the
MFM
A.
F16
Numb
er of
Se
ction
52,
S71 r
epor
ts su
bmitte
d to
Acco
untin
g Of
ficer
, Ma
yor a
nd
other
au
thoriti
es
were
pr
epar
ed.
1. Q3
to Q
4 re
ports
and
proo
f of
subm
ission
4 Qua
rterly
re
ports
. Ac
hieve
d N/
A N/
A Ch
ief F
inanc
ial
Offic
er
Mid-
year
budg
et an
d per
forma
nce
asse
ssme
nt re
port.
F17
Mid-
year
bu
dget
and
perfo
rman
ce
1. Mi
d-ye
ar
repo
rt.
2. Co
uncil
re
solut
ion.
Appr
oved
Mi
d-ye
ar
budg
et an
d pe
rform
ance
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
200
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
asse
ssme
nt re
port.
as
sess
ment
repo
rt.
Ad
justm
ent
Budg
et of
2015
/2016
ap
prov
ed by
co
uncil
F18
1 Ad
justm
ent
budg
et ap
prov
ed
by co
uncil
. Gr
ant
expe
nditu
re
repo
rts
subm
itted t
o the
relev
ant
struc
ture
were
pr
epar
ed.
1. Q2
Bud
get
analy
sis re
port
signe
d. 1.
Q3.A
djuste
d bu
dget.
2.C
ounc
il re
solut
ion
2015
/2016
ap
prov
ed
adjus
tmen
t bu
dget.
12
gran
t ex
pend
iture
re
ports
su
bmitte
d to
the re
levan
t str
uctur
e.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
Monit
or &
ensu
re th
e im
pleme
ntatio
n of A
udit
and R
isk A
ction
Plan
s by
2015
/16 an
d bey
ond
to ac
hieve
bette
r aud
it op
inion
.
Deve
lopme
nt an
d im
pleme
ntatio
n of a
udit
and r
isk ac
tion p
lans t
o ac
hieve
bette
r aud
it op
inion
for 2
015/2
016.
Deve
loped
risk
plan a
nd au
dit
actio
n plan
Re
ducti
on fo
r bes
t co
ntrol
envir
onme
nt in
orde
r to a
chiev
e cle
an
admi
nistra
tion.
F19
R26 0
88 95
8 4 A
udit
Actio
n plan
pr
ogre
ss
repo
rts an
d ris
k acti
on
plan.
1. Q1
to Q
4 up
dated
audit
ac
tion p
lan.
2. Pe
rcenta
ges
Audit
actio
n pla
n pro
gres
s re
port
and r
isk
actio
n plan
pr
ogre
ss
repo
rt
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
To de
velop
soun
d fin
ancia
l man
agem
ent
withi
n the
insti
tution
for
finan
cial v
iabilit
y to
achie
ve cl
ean
admi
nistra
tion b
y 20
15/16
and b
eyon
d.
Prep
arati
on an
d su
bmiss
ion of
cred
ible
finan
cial s
tatem
ents
quar
terly
for hi
gh le
vel o
f ac
coun
tabilit
y.
Deve
loped
and
revie
wed q
uarte
rly
credib
le re
ports
an
d fina
ncial
sta
temen
ts thr
ough
mon
thly
upda
tes an
d mo
nitor
ing of
G.L.
F20
20
14/20
15
Annu
al Fin
ancia
l St
ateme
nts
in pla
ce
1. Q1
Pro
of of
subm
ission
. 1.
Q2 pr
oof o
f su
bmiss
ion to
CF
O.
1. Q3
Bi-
annu
al fin
ancia
l sta
temen
ts sig
ned.
2014
/2015
An
nual
Finan
cial
State
ments
Su
bmitte
d to
the O
ffice o
f AG
(SA)
by
the 31
st Au
gust
2015
.Sub
miss
ion of
2015
/16
Bi- A
nnua
l
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
201
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Finan
cial
State
ment
to Ac
coun
ting
Offic
er
Ensu
re co
mplia
nce w
ith
GRAP
17 st
anda
rds a
nd
secti
on 63
of M
FMA
throu
gh re
view
and
imple
menta
tion o
f Ass
et Ma
nage
ment
polic
y.
Perfo
rm Q
uarte
rly
Phys
ical a
sset
verifi
catio
n and
up
date
asse
t re
gister
on a
quar
terly
basis
to
ensu
re it
meets
the
relev
ant
acco
untin
g sta
ndar
ds.
F21
R2 30
00 00
0 3 r
epor
ts on
up
date
of as
set
regis
ter an
d Ph
ysica
l As
set
verifi
catio
n we
re m
ade
1. Q1
to Q
4 re
ports
sign
ed
by C
FO.
Asse
t GRA
P 17
comp
liant
Regis
ter
Upda
ted an
d sa
fegua
rding
of
asse
ts re
ports
.
Achie
ved
N/A
N/A
Chief
Fina
ncial
Of
ficer
KPA
4 : L
ocal
Econ
omic
Deve
lopm
ent
KPA
Weig
ht 2
0%
To pr
omote
tour
ism in
or
der t
o pos
iti on
Ngqu
shwa
mun
icipa
lity
as th
e Tou
rist
desti
natio
n by 2
017
Sour
ce an
d mon
itorin
g fun
ding f
rom
DEDE
A,
ADM,
IDC
and N
ation
al He
ritage
Cou
ncil
No. o
f bus
iness
pla
ns su
bmitte
d to
poten
tial fu
nder
s
C01
R 36
0,000
4 B
usine
ss
Plan
s wer
e su
bmitte
d
1. Q1
to Q
4 Bu
sines
s plan
. 2.
Proo
f of
subm
ission
.
4 Bus
iness
pla
ns to
be
subm
itted t
o DE
DEA,
IDC,
AD
M an
d Na
tiona
l He
ritage
co
uncil
.
Partia
lly
Achie
ved
Busin
ess w
ere
subm
itted b
ut no
t inten
ded
recip
ients
busin
ess p
lans
are b
eing
subm
itted i
n dif
feren
t do
nors
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To
prom
ote an
nual
Chris
tmas
lights
even
t in
line w
ith se
ason
open
ing
even
ts
Annu
al Ch
ristm
as
light
even
ts
C02
Annu
al /
Prev
ious
even
t co
nduc
ted.
1. Re
port
signe
d by
HOD.
Annu
al Ch
ristm
as
lights
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To pr
omote
Tou
rism
withi
n NLM
area
in
orde
r to p
ositio
n the
mu
nicipa
lity as
a tou
rism
desti
natio
n in
2017
Partic
ipate
in Sp
orts
touris
m No
. of T
ouris
m sp
ort p
erfor
med
C03
To
urism
sp
orts
were
no
t pe
rform
ed
1. Re
port
signe
d. 2.
Atten
danc
e re
gister
. 3.
Finan
cial
comm
itmen
ts
Two T
ouris
m sp
orts
to be
pe
rform
ed.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
202
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To
have
tour
ism st
rateg
y in
place
To
urism
stra
tegy
C04
To
urism
str
ategy
is
not in
plac
e
1. Q3
Dra
ft str
ategy
. 2.
Coun
cil
reso
lution
. 1.
Q4Fin
al str
ategy
. 2.
Coun
cil
reso
lution
.
Annu
al tou
rism
strate
gy
Not A
chiev
ed
The s
trateg
y is
unde
r de
velop
ment
To be
av
ailab
le in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To pr
omote
Tou
rism
withi
n NLM
area
in
orde
r to p
ositio
n the
mu
nicipa
lity as
a tou
rism
desti
natio
n in
2017
Revit
aliza
tion a
nd
comm
emor
ation
of
herita
ge si
te
No. o
f her
itage
sit
es m
aintai
ned
C05
No
Her
itage
sit
es w
ere
maint
ained
1. Q1
& Q
4 Re
ports
sign
ed
by H
OD.
Annu
al tou
rism
strate
gy
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Fa
cilita
te cra
ft pro
duct
deve
lopme
nt an
d ma
rketin
g
Numb
er of
repo
rts
prep
ared
on
marke
ting
supp
ort,
gene
rated
tur
nove
r and
job
create
d
C06
R322
,780
2 qua
rterly
re
ports
ma
rketin
g su
ppor
t, ge
nera
ted
turno
ver
and j
ob
create
d we
re
prep
ared
1. Q1
to Q
4 Qu
arter
ly re
ports
sign
ed
by H
OD.
4 qua
rterly
re
ports
on
marke
ting
supp
ort,
gene
rated
tur
nove
r and
job
crea
ted
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To pr
omote
Tou
rism
withi
n NLM
area
in
orde
r to p
ositio
n the
mu
nicipa
lity as
a tou
rism
desti
natio
n in
2017
To co
nven
e Tou
rism
Indab
a LE
D str
ategy
C0
7
LED
Stra
tegy i
n pla
ce
1. To
urism
se
ctor p
lan
appr
oved
. 2.
Coun
cil
reso
lution
.
Tour
ism
secto
r plan
de
velop
ed
Not A
chiev
ed
The t
ouris
m pla
n is u
nder
de
velop
ment
To be
av
ailab
le in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To m
axim
ize ec
onom
ic gr
owth,
and
Ag
ricult
ure
deve
lopme
nt t ak
ing
place
in a
cond
ucive
en
viron
ment
withi
n Ng
qush
wa by
2017
To en
sure
partic
ipatio
n of
stake
holde
rs in
agric
ultur
al for
um lo
cal
and d
istric
t wise
.
No of
agric
ultur
al for
ums a
ttend
ed
quar
terly.
C08
R100
,000
4 dist
rict
agric
ultur
al for
ums
atten
ded
and 4
qu
arter
ly loc
al for
ums
1. Q1
to Q
4 Re
ports
sign
ed
by H
OD.
4 dist
rict
forum
s att
ende
d and
4 l
ocal
forum
s att
ende
d.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
203
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To m
axim
ise ec
onom
ic gr
owth,
and A
gricu
lture
de
velop
ment
taking
pla
ce in
a co
n duc
ive
envir
onme
nt wi
thin
Ngqu
shwa
by 20
17
Prom
ote an
d Sup
port
agric
ultur
e dev
elopm
ent
Numb
er of
agric
de
velop
ment
prog
ramm
es
identi
fied a
nd
supp
orted
C09
4 Agric
ultur
al de
velop
men
tal
prog
ramm
es w
ere
perfo
rmed
.
1. Q1
to Q
4 re
ports
sign
ed
by H
OD.
Agric
ultur
al de
velop
ment
prog
ramm
es
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To
facil
itate
value
chain
an
d men
toring
of co
ops
and S
MME.
No. o
f co
ops/S
MMEs
su
ppor
ted fo
r ag
ro-p
roce
ssing
. Nu
mber
of re
ports
pr
epar
ed
C10
R 24
,800
2 coo
ps
were
su
ppor
ted
and 2
qu
arter
ly re
ports
to
be pr
epar
ed 1.
Q1 to
Q4
repo
rt sig
ned
by H
OD.
8 coo
ps to
be
supp
orted
and
4 qua
rterly
re
ports
to be
pr
epar
ed
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Fa
cilita
tion o
f reg
istra
tion
of co
oper
ative
s and
tra
ining
Upda
ted
coop
erati
ves
datab
ase a
nd
traini
ng re
ports
C11
2 coo
ps
were
su
ppor
ted
and 2
qu
arter
ly re
ports
to
be pr
epar
ed 1.
Q1 to
Q4
repo
rt
2. At
tenda
nce
regis
ter.
8 coo
ps to
be
supp
orted
and
4 qua
rterly
re
ports
to be
pr
epar
ed
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Re
view
of LE
D St
rateg
y Ap
point
ment
of Se
rvice
prov
ider
C12
R 31
4,480
LE
D St
rateg
y in
place
.
1. Q3
ap
point
ment
letter
. 1.Q
4 Fina
l str
ategy
2.C
ounc
il re
solut
ion
1 LED
St
rateg
y de
velop
ed
Partia
lly
Achie
ved
The s
ervic
e pr
ovide
r was
ap
point
ed la
te du
e to f
inanc
ial
cons
traint
s
To be
av
ailab
le in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To co
ntinu
ously
redu
ce
road
accid
ent
Road
Safe
ty ca
mpaig
ns/aw
aren
ess
Colle
ction
of
outst
andin
g inf
ringe
ment
notic
es, L
aw
enfor
ceme
nt an
d aw
aren
ess
camp
aigns
.
C13
RR29
950
2 roa
d aw
aren
ess
camp
aigns
we
re
cond
ucted
1. Re
ports
sig
ned b
y HO
D.
2.Pict
ures
(d
ated)
3 roa
d aw
aren
ess
camp
aigns
to
be co
nduc
ted Ac
hieve
d N/
A N/
A Ac
ting E
xecu
tive
Mana
ger:
Comm
unity
Se
rvice
s
To en
sure
acce
ss to
lan
d pro
pertie
s for
de
velop
ment
and
Monit
oring
the p
rogr
ess o
f the
se bu
sines
s plan
s No
. of b
usine
ss
plans
subm
itted
C14
R 20
0,000
2 b
usine
ss
plans
wer
e su
bmitte
d.
1. Q1
to Q
4 pr
oof o
f su
bmiss
ion
4 Bus
iness
pla
ns to
be
subm
itted
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r:
204
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
integ
rated
huma
n se
ttleme
nt pa
ttern
by
2017
.
and p
lans
subm
itted.
Comm
unity
Se
rvice
s
To co
ntinu
ously
ma
intain
an up
dated
mu
nicipa
l ass
ets
Regis
ter m
unici
pal
prop
ertie
s No
. of p
rope
rties
regis
tered
C1
5 Op
erati
onal
2 m
unici
pal
prop
ertie
s we
re
regis
tered
on
a ne
w da
tabas
e.
1. Q2
to Q
4 pr
oof o
f re
gistra
tion
signe
d by
HOD.
2 Reg
ister
ed
munic
ipal
prop
ertie
s on
a new
da
tabas
e.
Not A
chiev
ed
Due t
o fin
ancia
l co
nstra
ints t
his
was n
ot ac
hiev e
d
To be
av
ailab
le in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To co
ntinu
ously
ensu
re
effici
ent a
nd
econ
omica
l ma
inten
ance
of
munic
ipal b
uildin
gs by
20
17 an
d bey
ond
Maint
enan
ce of
mun
icipa
l bu
ilding
No
. of m
unici
pal
build
ings
maint
ained
C16
1 m
unici
pal
build
ing
was
maint
ained
.
1. Q1
to Q
4 Re
ports
sign
ed
by H
OD.
4 mun
icipa
l bu
ilding
s to
be
maint
ained
.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To co
ntinu
ously
ensu
re
effec
tive r
egula
tion o
f the
envir
onme
nt
Effec
tive e
nforce
ment
of by
-laws
Nu
mber
of re
ports
su
bmitte
d C1
7
1 qua
rterly
re
ports
for
enfor
ceme
nt o
f en
viron
men
tal by
-laws
1. Q1
to Q
4 re
ports
sign
ed
by H
OD.
4 Qua
rterly
re
ports
on
enfor
ceme
nt of en
viron
menta
l by
-laws
.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To co
ntinu
ously
ma
intain
an up
dated
ge
nera
l valu
ation
roll
for th
e mun
icipa
lity by
20
17 an
d bey
ond
Cond
uct s
upple
menta
ry va
luatio
n Up
dated
Gen
eral
Valua
tion R
oll
C18
An
nual
supp
lemen
tar
y va
luatio
n co
nduc
ted.
1. Supp
lemen
tary
valua
tion
signe
d. 2.C
ounc
il re
solut
ion
Supp
lemen
tary v
aluati
ons
cond
ucted
.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
prov
ision
of
adeq
uate
and
susta
inable
huma
n se
ttleme
nts by
2017
an
d bey
ond
Deve
lopme
nt of
a nee
ds
regis
ter
Need
s reg
ister
de
velop
ed
C19
Oper
ation
al
Need
s re
gister
in
place
1. Q1
to
Q2.D
ata.
1.Q3to
Q4
Data
captu
red
To ha
ve a
need
s reg
ister
an
d sub
mitte
d to
Huma
n se
ttleme
nt.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To co
ntinu
ously
ensu
re
that p
rope
rty
deve
lopme
nt in
Ngqu
shwa
is in
line
with
build
ing la
ws an
d
Imple
menta
tion,
monit
oring
and r
eview
of
polic
ies an
d byla
ws
No. o
f sub
mitte
d an
d adju
dicate
d Bu
ilding
plan
s. Tu
rnar
ound
time
for ad
judica
tion o
f ap
plica
tions
C20
5 B
uildin
g pla
ns w
ere
adjud
icated
. 1. Q1
to Q
4 Re
port
signe
d by
HOD
and
plans
.
12 B
usine
ss
plans
ad
judica
ted.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
205
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
regu
lation
s by 2
017
and b
eyon
d To
ensu
re ac
cess
to
land a
nd pr
oper
ties f
or
deve
lopme
nt an
d co
ntinu
ous o
f an
effici
ent a
nd in
tegra
ted
settle
ment
patte
rn by
20
17
Imple
menta
tion S
patia
l Pl
annin
g and
Land
Use
Ma
nage
ment
Act 1
6 of
2013
Ensu
re
comp
lianc
e with
Sp
luma 1
6 of
2013
C21
DRDA
LR
Splum
a 16
of 20
13.
1.Q3 B
y-law
po
wers
and
functi
on
1.4 P
roof
of su
bmiss
ion
Adop
ted an
d Ga
zette
d Cu
stomi
sed
Splum
a By -
laws,
Adop
ted
Splum
a Po
wers
and
functi
ons.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
hanc
e Mun
icipa
l re
venu
e thr
ough
bu
ilding
plan
s and
tra
ffic fin
es.
Adjud
icatin
g buil
ding
plans
. Nu
mber
of
build
ing pl
ans
appr
oved
.
C22
La
nd
identi
fied f
or
retai
l co
mplex
.
Am
ount
of re
venu
e ra
ised.
N/A
The d
etails
of
this t
arge
t are
in
the bu
dget
and t
reas
ury
depa
rtmen
t
The w
hole
targe
t is be
ing
repo
rted a
t in
Budg
et an
d Tr
easu
ry De
partm
ent
unde
r rev
enue
se
ction
.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Issuin
g o tr
affic
fines
to tr
affic
offen
ders
C23
30
0 Tra
ffic
fines
wer
e iss
ued
1. Q1
to Q
4 re
port
signe
d by
HOD
.
400 T
raffic
fin
es to
be
issue
d
Partia
lly
Achie
ved
To m
oder
nise a
nd
beau
tify th
e ima
ge of
Pe
ddie/
Hamb
urg i
n or
der t
o attr
act
inves
tors b
y 201
7
Subm
ission
of bu
sines
s pla
ns to
Dep
t. of P
ublic
wo
rks, A
spire
Cog
ta an
d AD
M de
partm
ents.
No. o
f bus
iness
pla
ns de
velop
ed.
C24
R250
,000
1.P
roof
of su
bmiss
ion
and b
usine
ss
plan
Busin
ess
plans
su
bmitte
d to
relev
ant
depa
rtmen
ts
N/A
Cons
tructi
on of
sign
age
for bo
th tow
ns
No of
sign
age
cons
tructe
d C2
5 2 s
ignag
e co
nstru
cted
2 w
elcom
e sig
nage
to be
co
nstru
cted
Not A
chiev
ed
Due t
o fin
ancia
l co
nstra
ints t
his
was n
ot ac
hieve
d
To be
im
pleme
nted
in the
seco
nd
quar
ter of
20
16/17
fin
ancia
l yea
r
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
effec
tive,
effici
ent a
nd ec
onom
ic ma
nage
ment
of the
en
viron
ment
by 20
17
and b
eyon
d.
Imple
menta
tion a
nd
monit
oring
Ad
opted
ma
nage
ment
plan%
im
pleme
ntatio
n of
the E
MP
C26
Mana
geme
nt pla
n not
in pla
ce.
1 Q1 D
raft
Plan
. 2.
Coun
cil
Reso
lution
. 1.Q
2 Fina
l
Adop
ted
mana
geme
nt pla
n.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
206
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Plan
and
reso
lution
Co
ntinu
ously
ensu
re
effec
tive s
afegu
ard o
f mu
nicipa
l buil
dings
and
asse
ts inc
luding
em
ploye
es an
d co
uncil
ors o
f the N
LM
throu
gh ad
equa
te se
curity
syste
ms an
d pr
oces
ses b
y 201
7 and
be
yond
To en
sure
the
deve
lopme
nt of
a Safe
ty an
d Sec
urity
Plan
Safet
y and
Se
curity
p lan
de
velop
ed
C27
Oper
ation
al Mu
nicipa
l Se
curity
pla
n not
in pla
ce
1. Q3
Ter
ms of
re
feren
ce.
1. Q4
.Qua
rterly
re
port
signe
d by
HOD
.
1 safe
ty an
d se
curity
plan
de
velop
ed
and
imple
mente
d
Partia
lly
Achie
ved
Servi
ce
prov
ider w
as
appo
inted
late
due t
o fina
ncial
co
nstra
ints.
This
plan w
ill be
avail
able
in the
third
qu
arter
of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
effec
tive,
effici
ent a
nd ec
onom
ic ma
nage
ment
of the
en
viron
ment
by 20
17
and b
eyon
d
Cond
uct c
apac
ity bu
ilding
. Nu
mber
of
works
hops
co
nduc
ted
C28
R100
00
1 wor
ksho
p wa
s co
nduc
ted.
1. Q1
to Q
3 re
port.
2.
Atten
danc
e re
gister
.
Two
works
hops
to
be co
nduc
ted No
t Ach
ieved
Du
e to
finan
cial
cons
traint
s this
wa
s not
done
.
This
will b
e co
nside
red i
n the
2016
/17
finan
cial y
ear
upon
av
ailab
ility o
f fun
ds.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Im
pleme
ntatio
n and
mo
nitor
ing of
air q
uality
ma
nage
ment
Imple
menta
tion o
f po
licy
C29
Ai
r qua
lity
polic
y not
in pla
ce.
1. Q1
to Q
4 re
port
signe
d by
HOD
.
100%
im
pleme
ntatio
n of th
e poli
cy Ac
hieve
d N/
A N/
A Ac
ting E
xecu
tive
Mana
ger:
Comm
unity
Se
rvice
s
To en
sure
safet
y of
emplo
yees
wor
king a
t the
landfi
ll site
Inter
nal A
udit p
lan
C30
Re
port
from
Inter
nal
Audit
plan
in
place
1. Q3
.Pro
of of
supp
lied
servi
ce.
1. Q4
.Rep
ort
signe
d by
HOD.
Imple
menta
tion o
f inter
nal
Audit
plan
10
0%
affec
ting
Depa
rtmen
t
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To pr
otect
and
pres
erve
the
envir
onme
nt of
Ngqu
shwa
thro
ugh
effec
tive ,
effici
ent, a
nd
econ
omica
l meth
ods o
f wa
ste m
anag
emen
t by
2017
To co
nduc
t cap
acity
bu
ilding
No
. of c
apac
ity
build
ing
works
hops
co
nduc
ted
Adop
ted w
aste
by-la
w Pr
ocur
emen
t of
C31
No
was
te by
-law
and
capa
city
build
ing
works
hop
were
done
1.Q1 C
ounc
il re
solut
ion.
1. Q2
.Rep
ort
3.Atte
ndan
ce
regis
ter.
Was
te by
- law
adop
ted an
d ca
pacit
y bu
ilding
wo
rksho
p co
nduc
ted
Partia
lly
Achie
ved
The b
y law
is
in pla
ce
await
ing
adop
tion.
To be
adop
ted
in the
seco
nd
quar
ter of
20
16/17
fin
ancia
l yea
r
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
207
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
appr
opria
te ma
chine
ry for
re
fuse c
ollec
tion
To pr
otect
and
pres
erve
the
envir
onme
nt of
Ngqu
shwa
thro
ugh
effec
tive ,
effici
ent, a
nd
econ
omica
l meth
ods o
f wa
ste m
anag
emen
t by
2017
Deve
lopme
nt of
Integ
rated
Inf
orma
tion W
aste
Infor
matio
n Sys
tem
Adop
ted
Integ
rated
Was
te Inf
orma
tion
Syste
m
C32
W
aste
integ
rated
inf
orma
tion
syste
m no
t in
place
1. Q1
Dra
ft and
co
uncil
re
solut
ion.
1. Q2
.Cou
ncil
reso
lution
and
final
syste
m.
Was
te int
egra
ted
infor
matio
n sy
stem
in pla
ce.
To pr
otect
and
pres
erve
the
envir
onme
nt of
Ngqu
shwa
thro
ugh
effec
tive ,
effici
ent, a
nd
econ
omica
l meth
ods o
f wa
ste m
anag
emen
t by
2017
Site
Identi
ficati
on,
appli
catio
n for
licen
sing
Cons
tructi
on of
ne
w La
ndfill
site
C33
1 l
and f
ill sit
es is
in
exist
ence
1. Q3
Adv
ert
and
appo
intme
nt let
ter.
1. Q4
feas
ibility
stu
dy.
1 lan
d fill
sites
co
nstru
ction
stu
dy
Partia
lly
Achie
ved
The s
ervic
e pr
ovide
r was
ap
point
ed la
te du
e to f
inanc
ial
cons
traint
s
The s
tudy
repo
rt to
be
avail
able
at the
end o
f qu
arter
4 of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Site
identi
ficati
on fo
r a
new
ceme
tery a
t Pow
er
Loca
tion
Estab
lishm
ent o
f ne
w ce
meter
y C3
4
2 ceme
teries
in
exist
ence
1. Ap
point
ment
letter
. 2.
Feas
ibility
stu
dy re
port.
1 cem
etery
cons
tructi
on
study
Partia
lly
Achie
ved
The s
ervic
e pr
ovide
r was
ap
point
ed la
te du
e to f
inanc
ial
cons
traint
s
The s
tudy
repo
rt to
be
avail
able
at the
end o
f qu
arter
4 of
2016
/17
finan
cial y
ear.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
effec
tive,
effici
ent a
nd
econ
omica
l ma
nage
ment
of ce
meter
ies by
2017
an
d bey
ond
Deve
lopme
nt,
Imple
menta
tion a
nd
monit
oring
bylaw
and
polic
y
Deve
lopme
nt of
ceme
tery p
olicy
an
d byla
ws
C35
Ce
meter
y an
d poli
cy
by-la
w to
be
in pla
ce.
1. Q1
.By-l
aw
Q2.C
ounc
il re
solut
ion.
Q3 D
raft p
olicy
an
d cou
ncil
reso
lution
. Q4
.Cou
ncil
reso
lution
and
appr
oval
Ceme
tery a
nd
polic
y by-l
aw
deve
loped
Not A
chiev
ed
The p
olicy
ne
eds t
o be
revie
wed a
nd
align
ed
To be
av
ailab
le in
the
third
quar
ter of
20
16/17
fin
ancia
l yea
r.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
effec
tive,
effici
ent, a
nd
econ
omica
l coa
stal
area
to st
imula
te loc
al
• Rev
iew, Im
pleme
ntatio
n an
d mon
itorin
g of C
oasta
l Ma
nage
ment
Plan
.
Adop
ted C
oasta
l Ma
nage
ment
Plan
.
C36
Co
astal
ma
nage
ment
plan i
n pla
ce
Q1 D
raft p
lan
Q2Fin
al pla
n an
d cou
ncil
reso
lution
.
Revie
wed
coas
tal
mana
geme
nt pla
n.
Not A
chiev
ed
The c
oasta
l ma
nage
ment
plan w
ill be
re
viewe
d and
To be
table
d in
2016
/17
finan
cial y
ear
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
208
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
and i
ntern
ation
al tou
rists
inflow
and
acce
ss in
to the
Ng
qush
wa M
unici
pal
area
by 20
15 an
d be
yond
• Ope
ning o
f the f
estiv
e se
ason
tab
led in
the
coun
cil in
20
16/20
17
finan
cial y
ear.
durin
g the
third
qu
arter
.
Deplo
ymen
t of li
fe gu
ards
in al
l be
ache
s
C37
Co
ntrac
t wi
th se
rvice
pr
ovide
r is
in pla
ce
1qua
rterly
re
port.
Qu
arter
ly re
port
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
Apply
for B
lue F
lag B
each
sta
tus fo
r one
beac
h per
ye
ar.
Deve
lop an
d su
bmit a
pplic
ation
for
Birh
a Bea
ch.
C38
Oper
ation
al
Appr
oved
Bl
ue F
lag
Beac
h at
Hamb
urg
Busin
ess p
lan
Appr
oved
bu
sines
s plan
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
effec
tive a
nd
effici
ent L
ocal
Econ
omic
Deve
lopme
nt
• Ens
ure t
hat L
ED S
ummi
t is
conv
ened
. • R
eview
of th
e LED
St
rateg
y • D
evelo
pmen
t of P
over
ty all
eviat
ion st
rateg
y • D
evelo
pmen
t of S
MME
Stra
tegy
Revie
w an
d De
velop
ment
of LE
D str
ategie
s
C39
LE
D St
rateg
y 1.
Appo
intme
nt let
ter
2.stra
tegy a
nd
coun
cil
reso
lution
.
Appr
oved
LE
D St
rateg
y Pa
rtially
Ac
hieve
d Th
e ten
der
was a
dver
tised
bu
t due
to
finan
cial
cons
traint
s, no
aw
ard w
as
given
.
The d
raft
revie
wed L
ED
strate
gy w
ill be
av
ailab
le in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To en
sure
effec
tive,
effici
ent, a
nd
econ
omica
l coa
stal
area
to st
imula
te loc
al an
d inte
rnati
onal
touris
ts inf
low an
d ac
cess
into
the
Ngqu
shwa
Mun
icipa
l ar
ea by
2015
and
beyo
nd
Imple
menta
tion o
f Coa
stal
maint
enan
ce pl
an.
Appr
oved
ma
inten
ance
plan
. C4
0
Appr
oved
co
astal
ma
inten
anc
e plan
not in
pla
ce.
1. Dr
aft pl
an.
2. Ap
prov
ed
and c
ounc
il re
solut
ion.
Coas
tal
maint
enan
ce
plan t
o be
appr
oved
.
Not A
chiev
ed
The c
oasta
l ma
inten
ance
pla
n has
not
been
appr
oved
by
coun
cil.
It will
also b
e de
velop
ed in
20
16/17
fin
ancia
l yea
r.
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
To co
ntinu
ously
pr
ovide
adeq
uate
and
effec
tive s
uppo
rt to
local
SMME
s for
inc
reas
ed lo
cal
econ
omy b
y 201
7 and
be
yond
Prov
ide bu
sines
s de
velop
ment
supp
ort
throu
gh ca
pacit
y buil
ding
and t
echn
ical s
uppo
rt to
exist
ing m
icro-
busin
ess
initia
tives
Numb
er of
micr
o-
busin
ess
initia
tives
su
ppor
ted
C41
4 b
usine
ss
initia
tives
su
ppor
ted
1. Re
ports
sig
ned b
y HO
D.
4 Bus
iness
ini
tiativ
es to
be
supp
orted
.
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
209
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To co
ntinu
ously
pr
ovide
adeq
uate
and
effec
tive s
uppo
rt to
local
SMME
s for
inc
reas
ed lo
cal
econ
omy b
y 201
7 and
be
yond
To en
sure
that
local
sub-
contr
actor
s ar
e sub
-co
ntrac
ted
Prov
ide te
chnic
al an
d bu
sines
s sup
port
to loc
al su
b-co
ntrac
tors
Numb
er of
co
ntrac
tors
capa
citate
d Va
lue of
busin
ess
CIDB
grad
ing
C42
3 co
ntrac
tors
were
su
ppor
ted
on ca
pacit
y bu
ilding
.
1 Rep
ort
signe
d by
HOD.
4 Con
tracto
rs su
ppor
ted on
ca
pacit
y bu
ilding
Achie
ved
N/A
N/A
Actin
g Exe
cutiv
e Ma
nage
r: Co
mmun
ity
Servi
ces
KPA
5 : G
ood
Gove
rnan
ce an
d Pu
blic
Parti
cipat
ion
KPA
Weig
ht 2
0%
To co
ntinu
ously
ensu
re
an ef
fectiv
e and
co
mplia
nt sy
stem
of mu
nicipa
l gov
erna
nce
by 20
17 an
d bey
ond
Quar
terly
Sitti
ngs o
f MP
AC
No of
MPA
C sit
tings
G0
1 R3
018,
046
MPAC
set 4
qu
arter
ly.
1. Mi
nutes
sig
ned.
2. At
tenda
nce
regis
ter.
4 qua
rterly
MP
AC
seati
ng’s
2015
/2016
.
Partia
lly
Achie
ved
Only
three
qu
arter
ly MP
AC
meeti
ngs h
ave
mater
ialise
d, du
e to n
on
atten
danc
e by
other
mem
bers
To be
stro
ngly
monit
ored
in
2016
/17
finan
cial y
ear,
failur
e for
MP
AC to
seat
that w
ill be
es
calat
ed to
re
levan
t str
uctur
es fo
r as
sistan
ce.
Munic
ipal
Mana
ger
MPAC
mee
tings
to fo
rm
part
of an
nual
calen
dar
Coun
cil ca
lenda
r tha
t refl
ects
MPAC
pr
ogra
mmer
s.
G02
Coun
cil
calen
dar
conta
ining
MP
AC
prog
ramm
es i
s in
place
.
1. Co
uncil
Ca
lenda
r with
MP
AC
prog
ramm
es.
Coun
cil
calen
dar
cons
ists o
f MP
AC
prog
ramm
es
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Imple
menta
tion o
f the
Prog
ramm
e of a
ction
No
of M
PAC
repo
rts to
coun
cil
G03
3 MPA
C re
ports
that
were
table
d to
coun
cil.
1.Qua
rterly
MP
AC re
port
2.cou
ncil
reso
lution
4 Qua
rterly
MP
AC
repo
rts.
Partia
lly
Achie
ved
Only
two
MPAC
repo
rts
that w
ent to
the
coun
cil du
e to
non-
seati
ng
of the
MPA
C
To be
stro
ngly
monit
ored
in
2016
/17
finan
cial y
ear,
failur
e for
MP
AC to
seat
that w
ill be
es
calat
ed to
re
levan
t str
uctur
es fo
r as
sistan
ce.
Munic
ipal
Mana
ger
210
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Stre
am lin
e stra
tegic
plans
thr
ough
annu
al ac
tion f
or
shor
ter le
ad tim
es
Imple
menta
tion o
f co
uncil
reso
lution
s G0
4 Co
uncil
re
solut
ion
regis
ter
deve
loped
.
1. Co
uncil
re
gister
2.
Coun
cil
reso
lution
4 Qua
rterly
co
uncil
re
solut
ion
regis
ter to
co
uncil
.
Partia
lly
Achie
ved
Not a
ll 4
quar
terly
coun
cil
reso
lution
re
gister
s wer
e tak
en to
co
uncil
.
this t
arge
t will
be ta
ken t
o co
rpor
ate
servi
ces
Munic
ipal
Mana
ger
Reso
urcin
g of C
ommi
ttee
(App
ointm
ent o
f MPA
C Re
sear
cher
)
Appo
intme
nt of
MPAC
rese
arch
er.
G05
MP
AC
rese
arch
er
is no
t in
place
.
1. Ap
point
ment
letter
sign
ed by
the
Acc
ounti
ng
Offic
er.
Appo
intme
nt of
MPAC
re
sear
cher
.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
To en
sure
effec
tive,
effici
ent, e
cono
mica
l an
d com
plian
t pub
lic
partic
ipatio
n sys
tems
by 20
17 an
d bey
ond
Imple
menta
tion o
f the
War
d Com
mitte
e Pr
ogra
mme o
f acti
on
(stre
amlin
ed P
rogr
amme
for
repo
rting o
f war
d Co
mmitte
es on
mon
thly
basis
)
% im
pleme
ntatio
n of
the w
ard
comm
ittee
Prog
ramm
e
G06
Oper
ation
al 50
%
Imple
menta
tion o
f war
d co
mmitte
es
Prog
ramm
e of
actio
n.
1.Qua
rterly
Re
ports
2.C
ounc
il re
solut
ion
Prog
ramm
e of
actio
n for
wa
rd al
l war
d co
mmitte
es
from
ward
1 to
ward
13
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Capa
citati
on of
War
d Co
mmitte
es on
effec
tive
imple
menta
tion o
f War
d Op
erati
onal
Plan
s.
% im
pleme
ntatio
n of
the P
ublic
Pa
rticipa
tion P
lan
G07
Oper
ation
al Pu
blic
partic
ipatio
n wo
rk pla
n in
place
.
1. Qu
arter
ly re
ports
sign
ed
by M
anag
er in
the
Offic
e of
the S
peak
er.
4 Qua
rterly
re
ports
on
publi
c pa
rticipa
tion
plan
imple
menta
tion.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Quar
terly
War
d mee
ting
repo
rts to
Spe
aker
s Offic
e to
infor
m qu
arter
ly Sp
eake
rs re
port
to co
uncil
Quar
terly
ward
me
eting
s rep
ort to
sp
eake
rs’ of
fice.
G08
Oper
ation
al 4 q
uarte
rly
ward
me
eting
s re
port
to Sp
eake
rs’
Offic
e.
1. Cons
olida
ted
ward
mee
tings
re
ports
and
signe
d by
Mana
ger in
the
Offic
e of th
e Sp
eake
r. 2.
Atten
danc
e re
gister
s of th
e wa
rd m
eetin
gs. 4 Q
uarte
rly
War
d me
eting
s re
port.
Not A
chiev
ed
The w
ard
meeti
ngs c
ould
not s
eat a
s pla
nned
, the
ward
ch
airpe
rsons
did
n’t co
nven
e wa
rd
meeti
ngs.
The p
lan fo
r the
seati
ng of
wa
rd m
eetin
gs
will b
e im
pleme
nted
in 20
1 6/17
aft
er th
e new
co
uncil
has
been
es
tablis
hed.
Munic
ipal
Mana
ger
211
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
To co
ntinu
ously
ensu
re
effec
tive,
effici
ent a
nd
comp
liant
custo
mer
mana
geme
nt by
2017
an
d bey
ond
Effec
tive i
mplem
entat
ion
of the
petiti
ons p
olicy
. Pe
tition
s qua
rterly
re
ports
. G0
9 Op
erati
onal
Petiti
ons
polic
y is i
n ex
isten
ce.
1. Qu
arter
ly pe
tition
s re
ports
sign
ed
by th
e ch
airpe
rson.
Petiti
ons
repo
rts 4
per
quar
ter.
Not A
chiev
ed
The p
etitio
ns
repo
rts co
uld
not b
e pr
epar
ed du
e to
non -
seati
ng
of the
petiti
ons
comm
ittee.
this w
ill be
att
ende
d to
after
the n
ew
coun
cil ha
s es
tablis
hed i
ts su
b -co
mmitte
es
like t
he
petiti
ons
comm
ittee
Munic
ipal
Mana
ger
Qu
arter
ly m
eetin
gs of
the
petiti
ons c
ommi
ttee
Petiti
ons
comm
ittee
meeti
ng
G10
Oper
ation
al Pe
tition
s co
mmitte
e me
t 4
quar
terly.
1. Qu
arter
ly Pe
ti tion
s co
mmitte
e re
ports
sign
ed
by th
e ch
airpe
rson.
Atten
danc
e re
gister
.
4 qua
rterly
pe
tition
s co
mmitte
e re
ports
.
Not A
chiev
ed
To en
sure
effec
tive a
nd
comp
liant
syste
ms of
as
sura
nce o
n inte
rnal
contr
ols, s
ervic
e de
liver
y and
finan
cial
repo
rting i
n line
with
leg
islati
on by
2017
and
beyo
nd.
Subm
ission
of ad
visor
y Au
dit C
ommi
ttee r
epor
ts to
Coun
cil an
d Ma
nage
ment
Quar
terly
advis
ory
repo
rts to
coun
cil
from
Audit
co
mmitte
e
G11
Oper
ation
al Au
dit
comm
ittee
had 4
qu
arter
ly ad
visor
y re
ports
to
coun
cil.
1. Qu
arter
ly ad
visor
y re
ports
to
coun
cil
2. Co
uncil
re
solut
ion.
4 qua
rterly
Ad
visor
y re
ports
to
coun
cil fr
om
the au
dit
comm
ittee.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Coor
dinate
and s
ubmi
t W
oman
’s ca
ucus
quar
terly
repo
rts.
Wom
an’s
cauc
us
quar
terly
repo
rts
to co
uncil
.
G12
Oper
ation
al W
oman
’s ca
ucus
had
two
quar
terly
repo
rts to
co
uncil
1.Qua
rterly
re
ports
2.C
ounc
il re
solut
ion
4 qua
rterly
re
ports
of th
e wo
man’s
ca
ucus
to
coun
cil
Not A
chiev
ed
The w
oman
's ca
ucus
could
no
t sea
t for
many
times
, tha
t mad
e it
diffic
ul t to
pr
oduc
e re
ports
.
Wom
an’s
cauc
us re
ports
to
be pr
epar
ed
after
the n
ew
coun
cil ha
s es
tablis
hed a
ll its
stru
cture
s.
Munic
ipal
Mana
ger
Over
sight
on C
ompli
ance
wi
th re
gulat
ions/C
ircula
rs. Au
dit co
mmitte
e co
mplia
nce
repo
rts
G13
Oper
ation
al Au
dit
comm
ittee
had o
ne
1. Qu
arter
ly re
ports
2.C
ounc
il re
solut
ions.
4 Qua
rterly
au
dit
comm
ittee
comp
lianc
e
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
212
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
comp
lianc
e re
port.
re
ports
on
regu
lation
s an
d circ
ulars.
Co
ordin
ate co
-sour
cing o
f the
inter
nal a
udit f
uncti
on.
Appo
intme
nt of
the qu
alifie
d aud
it co
mpan
y.
G14
R 35
0,000
Co
-sour
cing
of the
int
erna
l au
dit
functi
on is
no
t in pl
ace.
1. Ap
point
ment
Lette
r sign
ed
by th
e Ac
coun
ting
Offic
er.
Appo
intme
nt of
the
quali
fied a
udit
comp
any.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
To en
sure
effec
tive a
nd
comp
liant
syste
ms of
as
sura
nce o
n inte
rnal
contr
ols, s
ervic
e de
liver
y and
finan
cial
repo
rting i
n line
with
leg
islati
on by
2017
and
beyo
nd
Co-o
rdina
tion a
nd
facilit
ation
of A
G’s A
ction
Pl
ans o
n qua
rterly
basis
% im
pleme
ntatio
n of
the A
G im
prov
emen
t pla
ns
G15
R 22
9,358
Co
mmun
icatio
n acti
on
plan t
o be i
n pla
ce
Dece
mber
20
15.
1. Q1
Dra
ft Co
mmun
icatio
n Plan
. 2.
Coun
cil
Reso
lution
. 1.
Q2 A
dopte
d Pl
an
2. Co
uncil
Re
solut
ion.
1.Q3&
4 qu
arter
ly im
pleme
ntatio
n re
ports
sign
ed
by C
/Man
ager
Adop
ted
Comm
unica
tion p
lan an
d tw
o qua
rterly
im
pleme
ntatio
n rep
orts.
Partia
lly
Achie
ved
The
comm
unica
tion
plan i
s in p
lace
but n
ot ad
opted
by
coun
cil an
d ho
weve
r im
pleme
ntatio
n rep
orts
were
pr
epar
ed
altho
ugh t
he
plan i
s not
appr
oved
by
coun
cil.
The p
lan to
be
taken
to
coun
cil in
the
seco
nd qu
arter
of
2016
/2017
fin
ancia
l yea
r.
Munic
ipal
Mana
ger
Deve
lop Im
pleme
ntatio
n an
d mon
itore
d the
Risk
Ba
sed A
sses
smen
t
Numb
er of
audit
s im
pleme
nted
G16
Oper
ation
al 4 q
uarte
rly
upda
ted ris
k re
gister
and
audit
s.
1. Up
dated
risk
regis
t er an
d au
dit co
nfirm
ed
by IA
M.
Annu
al ris
k re
gister
up
dated
and
audit
s
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
To en
sure
effec
tive,
effici
ent, e
cono
mica
l an
d com
plian
t pub
lic
partic
ipatio
n sys
tems
by 20
17 an
d bey
ond
Effec
tive i
mplem
entat
ion
of the
comm
unica
ti on
actio
n plan
.
Comm
unica
tion
actio
n plan
ad
opted
by
coun
cil
G17
R 22
9,358
Co
mmun
icatio
n acti
on
plan t
o be i
n pla
ce
Dece
mber
20
15.
1. Q1
Dra
ft Co
mmun
icatio
n Plan
. 2.
Coun
cil
Reso
lution
. 1.
Q2 A
dopte
d Pl
an
2. Co
uncil
Adop
ted
Comm
unica
tion p
lan an
d tw
o qua
rterly
im
pleme
ntatio
n rep
orts.
Partia
lly
Achie
ved
The
comm
unica
tion
plan w
ill be
ad
opted
in
2016
/17
finan
cial y
ear,
howe
ver
quar
terly
imple
menta
tio
The
comm
unica
tion p
lan w
ill be
ad
opted
in th
e se
cond
quar
ter
of 20
16/17
fin
ancia
l yea
r.
Munic
ipal
Mana
ger
213
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Reso
lution
. 1.Q
3&4
quar
terly
imple
menta
tion
repo
rts si
gned
by
C/M
anag
er
n rep
orts
were
be
ing
prep
ared
.
Stre
ngthe
n the
Loca
l Co
mmun
icator
’s Fo
rum
throu
gh qu
arter
ly sit
tings
.
No of
quar
terly
meeti
ngs
cond
ucted
.
G18
R 22
9,358
LC
F 3
quar
terly
meeti
ngs
cond
ucted
.
1. Qu
arter
ly re
ports
sign
ed
by th
e ch
airpe
rson.
2. At
tenda
nce
regis
ter.
3.Age
nda
LCF
2 qu
arter
ly me
eting
s to
be co
nduc
ted.
Not A
chiev
ed
The L
CF co
uld
not s
eat fo
r 20
15/16
due t
o no
n -att
enda
nce b
y tho
se w
ho
cons
titute
it.
It will
be
prop
erly
plann
ed fo
r 20
16/17
fin
ancia
l yea
r, ne
cess
ary
actio
ns to
re
vive i
t will
be
emba
rked o
n.
Munic
ipal
Mana
ger
Effec
tive c
ontrib
ution
to
institu
tiona
l cor
pora
te ide
ntity,
imag
e and
br
andin
g of N
LM
No of
news
letter
s pr
epar
ed an
d dis
tribute
d.
G19
Munic
ipal 4
qu
arter
ly ne
ws le
tters
were
pr
oduc
ed.
1. Qu
arter
ly ne
wslet
ters.
News
letter
s pr
oduc
ed fo
r the
3rd a
nd
4th qu
arter
of
2015
/16.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
1. Ind
ividu
al ph
oto of
NLM
vis
ion m
ission
2.B
atho p
ele
princ
iples
. 3 r
epor
t sign
ed
by C
/Man
ager
.
Ac
hieve
d N/
A N/
A Mu
nicipa
l Ma
nage
r
To en
sure
an ef
fectiv
e an
d effic
ient IG
R fun
ction
by 20
17 an
d be
yond
Facil
itate
the
imple
menta
tion o
f sign
ed
MOU
MOU
signe
d by
munic
ipality
and
depa
rtmen
t
G20
Oper
ation
al
2 MOU
’s ha
ve be
en
signe
d be
twee
n Ng
qush
wa
and o
ther
secto
r de
partm
ent
s
Q1 (3
) MOU
’s sig
ned.
Q2 (1
) MOU
sig
ned.
Q4 (1
) MOU
sig
ned
betw
een N
LM
& AD
M
5 MOU
’s sig
ned
betw
een N
LM
and 5
secto
r de
partm
ents.
Not A
chiev
ed
The M
OU's
signin
g pr
oces
s will
be
dealt
with
in
2016
/17 as
it co
uld no
t ma
teri al
ised
due t
o othe
r pr
ogra
mmes
to be
eff
ectiv
ely
imple
mente
d in
2016
/17
finan
acial
ye
ar.
Munic
ipal
Mana
ger
214
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
Coor
dinate
plan
ning a
nd
repo
rting b
y sec
tor
depa
rtmen
ts in
line w
ith
2015
/2016
IDP
throu
gh
IGR
Monit
or se
ating
s of
IGR
meeti
ngs.
G21
Oper
ation
al
IGR
4 qu
arter
ly me
eting
s ha
ve be
en
cond
ucted
.
1. Qu
arter
ly re
ports
. 2.
Agen
da of
the
mee
ting.
3. At
tenda
nce
regis
ter.
4 qua
rterly
IG
R me
eting
s. Ac
hieve
d N/
A N/
A Mu
nicipa
l Ma
nage
r
Ad
here
nce t
o gov
ernm
ent
comm
unica
tion c
ycle
with
rega
rds t
o ann
ual o
pen
coun
cil da
y.
No of
coun
cil
open
days
G2
2 R
39,60
0 1 c
ounc
il op
en da
y ha
s bee
n ma
de.
1.Rep
ort
2.Atte
ndan
ce
regis
ter
1 Cou
ncil
open
day a
nd
proo
f ther
eof.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
To en
sure
effec
tive
mana
geme
nt of
risk
withi
n Ngq
ushw
a Mu
nicipa
li ty in
20
15/20
16 an
d bey
ond.
Coor
dinate
the
Imple
menta
tion o
f Risk
Ac
tion P
lans o
n a
quar
terly
basis
Cond
uct R
isk
Asse
ssme
nt wo
rksho
ps
G23
Oper
ation
al
Annu
al ris
k as
sess
ment
works
hop
has b
een
cond
ucted
.
1. Mi
nutes
sig
ned.
2. At
tenda
nce
regis
ter.
One q
uarte
r ris
k as
sess
ment
works
hops
co
nduc
ted pe
r an
num.
N/A
The r
isk
asse
ssme
nt wa
s con
ducte
d an
nuall
y not
quar
terly.
going
forw
ard
the ta
rget
has
been
chan
ged
to an
nuall
y ins
tead o
f qu
arter
ly
Munic
ipal
Mana
ger
Coor
dinate
the
Imple
menta
tion o
f Ri
sk A
ction
Plan
s
G24
Oper
ation
al
4 qua
rterly
ris
k acti
on
plans
have
be
en
upda
ted.
1. Up
dated
Ri
sk ac
tion
plans
co
nfirm
ed by
IA
M.
4 qua
rterly
ris
k acti
on
plans
up
dated
.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
W
orks
hop t
he R
isk an
d an
ti -fra
ud p
olicie
s an
nuall
y
Imple
menta
tion o
f Ri
sk an
d anti
-Fr
aud P
olicie
s
G25
Oper
ation
al
Risk
and
anti-
fraud
wo
rksho
p ha
s not
been
co
nduc
ted.
1. Q1
repo
rt,
Prog
ramm
e.
2. At
tenda
nce
regis
ter.
1. Q4
repo
rt Pr
ogra
mme.
2. At
tenda
nce
regis
ter.
2 Anti
-frau
d se
meste
r wo
rksho
ps.
Not a
chiev
ed
Due t
o fin
ancia
l co
nstra
ints t
his
was n
ot ac
hieve
d as
the pl
an w
as to
ha
ve so
meon
e fro
m ou
tside
.
To be
im
pleme
nted
in the
seco
nd
quar
ter of
20
16/17
fin
ancia
l yea
r.
Munic
ipal
Mana
ger
Ca
pacit
ate/R
esou
rce R
isk
Unit
Imple
menta
tion R
isk
mana
geme
nt S
trateg
y
Revie
w Ri
sk
Mana
geme
nt St
rateg
y
G26
Oper
ation
al
Risk
ma
nage
ment
strate
gy
has n
ot be
en
revie
wed.
1. Q3
Dra
ft re
viewe
d risk
ma
nage
ment
strate
gy
2. Co
uncil
re
solut
ion.
1. Q4
Ado
pted
Annu
al re
viewe
d risk
ma
nage
ment
strate
gy.
Partia
lly
Achie
ved
The s
trateg
y is
in pla
ce bu
t no
t app
rove
d by
coun
cil.
To be
take
n to
coun
cil in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Munic
ipal
Mana
ger
215
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
strate
gy an
d 2.c
ounc
il re
solut
ion.
To co
ntinu
ously
ensu
re
Integ
rated
De
velop
ment
plann
ing
and P
erfor
manc
e Ma
nage
ment
that h
as a
syste
m de
scrip
tion
by
2015
/2016
and b
eyon
d
Effec
tive i
mplem
entat
ion
of PM
S Fr
amew
ork
No of
pe
rform
ance
re
ports
subm
itted
to int
erna
l aud
it.
G27
Oper
ation
al
4 qu
arter
ly pe
rform
anc
e rep
orts
have
been
su
bmitte
d to
inter
nal
audit
.
1. Pr
oof o
f su
bmiss
ion.
4 qua
rterly
pe
rform
ance
re
ports
su
bmitte
d to
inter
nal a
udit.
.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
De
velop
insti
tution
al sy
stem
desc
riptio
n alig
ned
to 20
15/16
SDB
IP.
Institu
tiona
l sy
stem
desc
riptio
n de
velop
ed an
d ap
prov
ed by
co
uncil
.
G28
Oper
ation
al
Institu
tiona
l sy
stem
desc
riptio
n is
not in
pla
ce.
1. Q3
Dra
ft sy
stem
desc
riptio
n 2.C
ounc
il re
solut
ion.
1. Q4
Ado
pted
syste
m de
scrip
tion.
2.
Coun
cil
reso
lution
.
Appr
oved
ins
titutio
nal
syste
m de
scrip
tion b
y co
uncil
that
is ali
gned
to
2015
/2016
SD
BIP.
N/A
The v
ariat
ion
has b
een
prep
ared
and
appr
oved
by
the M
M, as
thi
s sys
tem
does
n’t ha
ve
to be
take
n to
coun
cil.
It doe
sn’t h
ave
to be
su
bmitte
d to
coun
cil fo
r ap
prov
al be
caus
e the
SD
BIP
has
been
appr
oved
by
coun
cil
alrea
dy.
Munic
ipal
Mana
ger
Secti
on 46
repo
rt su
bmitte
d to c
ounc
il and
dis
tribute
d to A
G, N
T, P
T,
and C
OGTA
.
2014
/2015
Ann
ual
perfo
rman
ce
repo
rt su
bmitte
d to
coun
cil in
Au
gust
as pe
r C6
3 MFM
A an
d va
rious
au
thoriti
es.
G29
Oper
ation
al
Annu
al re
port
has
been
su
bmitte
d to
coun
cil.
1. Q1
Dra
ft A/
repo
rt an
d co
uncil
re
solut
ion.
2.Q2 F
inal
Adop
ted
A/re
port
and
coun
cil
reso
lution
2014
/2015
An
nual
repo
rt su
bmitte
d to
coun
cil 20
15.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Numb
er of
train
ing
works
hops
on P
MS.
1 Ann
ual P
MS
works
hop
G30
Oper
ation
al
PMS
annu
al wo
rksho
p ha
s not
been
co
nduc
ted.
1. Re
port
signe
d. 2.
Prog
ramm
e 3.
Atten
danc
e re
gister
Annu
al PM
S wo
rksho
p. Ac
hieve
d N/
A N/
A Mu
nicipa
l Ma
nage
r
To
have
insti
tution
al tur
n-ar
ound
stra
tegy i
n plac
e by
2016
/17
1insti
tution
al tur
n-ar
ound
stra
tegy
frame
work
and
G31
Oper
ation
al
Turn
-ar
ound
str
ategy
is
1. Q3
Dra
ft tur
n -ar
ound
str
ategy
Institu
tiona
l tur
n -ar
ound
str
ategy
N/A
The v
ariat
ion
has b
een
prep
ared
and
To be
im
pleme
nted
Munic
ipal
Mana
ger
216
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
draft
stra
tegy
tabled
to co
uncil
. no
t in
exist
ence
. Fr
amew
ork.
2. Co
uncil
re
solut
ion.
1. Q4
draft
tur
n - ar
ound
str
ategy
. 2.C
ounc
il re
solut
ion
frame
work
and d
raft
strate
gy
tabled
to
coun
cil.
appr
oved
by
MM,
in 20
16/17
fin
ancia
l yea
r.
Table
2014
/2015
Ann
ual
Repo
rt Pr
oces
s Plan
to
coun
cil.
Annu
al re
port
proc
ess p
lan to
be
tabled
to co
uncil
.
G32
Oper
ation
al
Annu
al re
port
proc
ess
plan n
ot in
exist
ence
.
1. Q1
Ann
ual
repo
rt pr
oces
s pla
n. 2.
Coun
cil
Reso
lution
. 1.
Q2 R
oad
show
s rep
ort
signe
d. 2.a
ttend
ance
re
gister
Appr
oved
20
14/15
An
nual
repo
rt pr
oces
s plan
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
To ha
ve ID
P/PM
S an
d Bu
dget
Proc
ess P
lan in
pla
ce
2015
/2016
ID
P/PM
S an
d Bu
dget
Proc
ess
Plan
.
G33
R 35
0,000
ID
P/PM
S an
d Bud
get
proc
ess
plan i
s in
exist
ence
.
1. Pr
oces
s pla
n. 2.
Coun
cil
reso
lution
.
Appr
oved
20
15/20
16
IDP/
PMS
and
Budg
et pr
oces
s plan
.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Numb
er of
IDP/
PMS
and
Budg
et Re
pres
entat
ive
Foru
m he
ld.
To ha
ve ID
P/PM
S an
d Bud
get
Repr
esen
tative
Fo
rums
G34
IDP/
PMS
and B
udge
t Re
pres
entat
ive F
orum
s ha
ve be
en
conv
ened
.
Q1, 2
, 3 an
d 4
1. Ne
wspa
per
Adve
rts
2. Re
ports
sig
ned.
3. Pr
ogra
mmes
an
d att
enda
nce
regis
ter.
4 qua
rterly
ID
P/PM
S an
d Bu
dget
Repr
esen
tativ
e For
um.
N/A
The P
urpo
se
of the
ID
P/Bu
dget
and P
MS
repr
esen
tative
for
um w
as
cove
red u
nder
Ma
yora
l Im
bizo,
so
there
was
no
need
for t
he
dupli
catio
n of
activ
ities t
o the
The v
ariat
ion
memo
has
been
sign
ed
and a
ppro
ved
by th
e Mu
nicipa
l Ma
nage
r.
Munic
ipal
Mana
ger
217
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
same
sta
keho
lders.
Numb
er of
IDP/
PMS
and
Budg
et Ro
ad S
hows
To
have
IDP/
PMS
and B
udge
t Ro
adsh
ows.
G35
IDP/
PMS
and B
udge
t ro
ad sh
ows
have
been
co
nduc
ted.
Q2 &
3 1.
News
pape
r ad
verts
. 2.
Repo
rt sig
ned.
2. Pr
ogra
mmes
an
d att
enda
nce
regis
ters.
2 IDP
/PMS
an
d Bud
get
Road
show
s
N/A
The P
urpo
se
of the
ro
adsh
ows
was c
over
ed
unde
r May
oral
Imbiz
o, so
the
re w
as no
ne
ed fo
r the
du
plica
tion o
f ac
tivitie
s to t
he
same
sta
keho
lders.
The v
ariat
ion
memo
has
been
sign
ed
and a
ppro
ved
by th
e Mu
nicipa
l Ma
nage
r.
Munic
ipal
Mana
ger
Co
ordin
ate M
ayor
al Im
bizo i
n Apr
il 201
6. To
have
May
oral
Imbiz
o. G3
6 Ma
yora
l Im
bizo h
as
not b
een
coor
dinate
d.
1. Ne
wspa
per
adve
rt.
2. Pr
ogra
mme
and
atten
danc
e re
gister
.
Mayo
ral
Imbiz
o co
ordin
ated i
n Ap
ril 20
16.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
Dr
aft 20
16/20
17 ID
P Re
viewe
d and
Ado
pted.
2016
/2017
IDP.
G3
7
IDP
has
been
re
viewe
d an
d ad
opted
.
1. Q2
sit
uatio
nal
analy
sis
pres
entat
ion.
1. Q3
Draft
IDP.
2.
Coun
cil
Reso
lution
. 1.
Q4 A
dopte
d ID
P.
2. Co
uncil
re
solut
ion.
Appr
oved
20
16/17
IDP.
Ac
hieve
d N/
A N/
A Mu
nicipa
l Ma
nage
r
Ap
prov
ed S
ervic
e Deli
very
and B
udge
t Im
pleme
ntatio
n Plan
20
16/20
17.
2016
/2017
SDB
IP
G38
SD
BIP
has
been
de
velop
ed.
1. Q3
Dra
ft SD
BIP.
2.
Coun
cil
reso
lution
. 1.
Q4 F
inal
Appr
oved
20
16/17
SD
BIP.
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
218
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
SDBI
P.
2. Co
uncil
re
solut
ion.
De
velop
ment
of wa
rd
profi
les fo
r all 1
3 Ng
qush
wa M
unici
pal
ward
s.
Proc
ure s
ervic
e pr
ovide
r tha
t will
deve
lop w
ard
profi
les.
G39
R 35
0,000
W
ard
profi
les ar
e no
t in
exist
ence
.
1. Q3
Sp
ecific
ation
. 2.
News
pape
r ad
vert.
3.
Appo
intme
nt let
ter.
4. Dr
aft w
ard
profi
les.
5. Co
uncil
re
solut
ion.
1. Q4
Fina
l wa
rd pr
ofiles
. 2.
Coun
cil
reso
lution
.
Profi
les fo
r ea
ch of
13
Ngqu
shwa
Mu
nicipa
l wa
rds.
N/A
The v
ariat
ion
has b
een
prep
ared
and
appr
oved
by
the M
M, du
e to
finan
cial
cons
traint
s this
tar
get c
ould
not b
e im
pleme
nted.
to be
im
pleme
nted
in 20
16/17
fin
ancia
l yea
r (e
nd of
the
seco
nd
quar
ter)
Munic
ipal
Mana
ger
Co
ordin
ate re
view
of wa
rd
base
d plan
s. To
have
a dr
aft of
re
viewe
d war
d ba
sed p
lans.
G40
War
d bas
ed
plann
ing
has b
een
cond
ucted
.
1. Dr
aft w
ard
base
d plan
. 2.
Coun
cil
reso
lution
.
Draft
re
viewe
d wa
rd ba
sed
plans
table
d to
coun
cil.
N/A
The v
ariat
ion
has b
een
prep
ared
and
appr
oved
by
the M
M, as
thi
s sys
tem
does
n’t ha
ve
to be
take
n to
coun
cil.
To en
sure
effec
tive a
nd
comp
liant
mains
tream
ing of
sp
ecial
prog
ramm
es
into m
unici
pal p
lans
and s
trateg
ies by
2017
an
d bey
ond.
Revie
w of
the S
PU
Stra
tegy
% im
pleme
ntatio
n of
the S
PU ac
tion
plan
G41
R 80
9,000
SP
U str
ategy
an
d acti
on
plan h
as no
t be
en
revie
wed.
. Q3 D
raft
Revie
wed S
PU
strate
gy.
2. Co
uncil
re
solut
ion.
1. Q4
Ado
pted
strate
gy.
2.Cou
ncil
reso
lution
Adop
ted S
PU
strate
gy an
d Ac
tion p
lan.
Partia
lly
Achie
ved
The S
PU
strate
gy an
d pla
n is i
n plac
e bu
t not
adop
ted.
To be
take
n to
coun
cil in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Munic
ipal
Mana
ger
219
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
La
unch
of in
tegra
ted
prog
ramm
es in
co
mplia
nce w
ith th
e mu
nicipa
l com
munic
ation
pla
n.
Integ
rated
plan
of
SPU
with
Comm
unica
tions
pla
n.
G42
Int
egra
ted
plan n
ot in
exist
ence
.
1. Int
egra
ted
plan a
nd
signe
d.
2015
/2016
int
egra
ted
plan b
etwee
n SP
U an
d Co
mmun
icatio
ns
Achie
ved
N/A
N/A
Munic
ipal
Mana
ger
To co
ntinu
ously
pr
omote
the u
near
thing
an
d nur
turing
of ta
lent
in va
rious
spor
ting
code
s with
in NL
M by
20
17 an
d bey
ond
Imple
menta
tion a
nd
revie
w of
Spor
t De
velop
ment
Stra
tegy
actio
n plan
% im
pleme
ntatio
n of
the S
ports
de
velop
ment
actio
n plan
G43
30
% of
the
Spor
t de
velop
men
t stra
tegy
actio
n plan
ha
s bee
n im
pleme
nted a
nd
strate
gy
actio
n plan
ha
s not
been
re
viewe
d.
1. Q3
Dra
ft re
viewe
d spo
rt de
velop
ment
plan
2. Co
uncil
re
solut
ion.
1. Q4
Ap
prov
ed pl
an.
2.Cou
ncil
reso
lution
Spor
t de
velop
ment
actio
n plan
im
pleme
nted
quar
terly
Partia
lly
Achie
ved
The a
ction
pla
n is i
n plac
e bu
t not
appr
oved
by
coun
cil.
To be
take
n to
the co
uncil
in
the se
cond
qu
arter
of
2016
/17
finan
cial y
ear.
Munic
ipal
Mana
ger
To en
sure
an
integ
rated
, res
pons
ive
and e
fficien
t ICT
functi
on fo
r NLM
by
2017
and b
eyon
d.
Deve
lopme
nt of
the IC
T str
ategy
(inclu
ding
busin
ess c
ontin
uity.
Adop
tion o
f the
ICT
Stra
tegy b
y co
uncil
G44
R1 45
1 101
IC
T str
ategy
is
not in
ex
isten
ce.
1. Q1
Dra
ft ICT
str
ategy
. 1.
Adop
ted
strate
gy.
2. Co
uncil
Re
solut
ion.
1. Q3
&4
Imple
menta
tion
repo
rts si
gned
.
Appr
oval
of the
ICT
strate
gy by
co
uncil
and
imple
menta
tion q
uarte
rly
repo
rts.
Partia
lly
Achie
ved
The I
CT
strate
gy is
in
place
but n
ot ap
prov
ed by
co
uncil
, only
BT
O bu
dget
relat
ed po
licies
we
re
prior
itised
.
To be
take
n to
coun
cil in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Munic
ipal
Mana
ger
De
velop
ment
of IC
T go
vern
ance
stra
tegy.
Adop
tion o
f the
ICT
gove
rnan
ce
strate
gy by
co
uncil
G45
IC
T go
vern
ance
str
ategy
is
not in
ex
isten
ce.
1. Q3
Dra
ft ICT
go
vern
ance
fra
mewo
rk.
2. Co
uncil
Re
solut
ion an
d au
dit
comm
ittee
agen
da si
gned
.
Appr
oved
ICT
gove
rnan
ce
frame
work
by
coun
cil.
Partia
lly
Achie
ved
The I
CT
gove
rnan
ce
frame
work
is in
place
but n
ot ap
prov
ed by
co
uncil
, only
BT
O bu
dget
relat
ed po
licies
To be
take
n to
coun
cil in
the
seco
nd qu
arter
of
2016
/17
finan
cial y
ear.
Munic
ipal
Mana
ger
220
NGQU
SHW
A LO
CAL
MUNI
CIPA
LITY
IN
STIT
UTIO
NAL
SCOR
ECAR
D 20
15-1
6 Ann
ual P
erfo
rman
ce R
epor
t as a
t 30 J
une 2
016
Stra
tegi
c Ob
jectiv
e St
rate
gy
Indi
cato
r In
dica
tor
Code
Bu
dget
Ba
selin
e Ev
iden
ce
Requ
ired
Annu
al Ta
rget
20
15/16
Achi
eved
/Not
Ac
hiev
ed
Reas
ons f
or
Varia
tion
Corre
ctive
Ac
tion
Cust
odian
1. Q4
Ap
prov
ed IC
T go
vern
ance
fra
mewo
rk.
2. Co
uncil
re
solut
ion.
were
pr
ioritis
ed.
221
TABLE OF CONTENTS
INTRODUCTION / BACKGROUND ......................................................................................................................................................... 225
MEMBERS OF THE MUNICIPAL PUBLIC ACCOUNTS COMMITTEE AND ATTENDANCE OF MEETINGS ...................................... 225
MPAC MEETINGS ON THE ANNUAL REPORT ..................................................................................................................................... 226
RECOMMENDATIONS PERTAINING TO THE ANNUAL REPORT ....................................................................................................... 227
8. RECOMMENTATIONS PERTAINING TO THE OVERSIGHT REPORT ................................................................................. 227
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INTRODUCTION / BACKGROUND MPAC has an obligation to exercise an oversight role over the executive obligations of Council, therefore a resolution was taken in Council on the 30 August 2016 for MPAC to consider the 2015/2016 Draft Annual Report.
The functions of the Oversight Committee on the Annual report are to:
Undertake a review and analysis of the Annual Report Invite, receive and consider inputs on the Annual Report Consider written comments received on the Annual Report from the members of the public Receive and consider Councils’ Audit Committee views and comments on the annual financial statements and the performance report Prepare the Oversight Report to be tabled before Council for consideration
In terms of MUNICIPAL FINANCE MANAGEMENT ACTCircular No. 63 Mayor was supposed to table the audited annual report 2015/16 and financial statements to council by December 2016, however, that was not achieved as the Regulatory Audit process was delayed and only concluded on the 23rd December 2016. The municipality’s Annual Report could thus not be tabled to council within the required period. The Audited Annual report 2015/16 should be made public in order for MPAC to get public comments. The non-compliance of the municipality for not tabling the Audited Annual Report 2015/16 to council before going to recess made it impossible for MPAC to conclude with the 2015/16 oversight report before the 31st December and will then be tabled in the Council Meeting to be held on the 26th of January 2016.
The process for the finalisation and approval of the 2015/2016 Annual Report is set out in the table below:
ACTIVITY DESCRIPTION PROVISION
Preparation of annual financial statements of the municipality and submission to the Auditor-General MUNICIPAL FINANCE MANAGEMENT ACTSection 122(1)(2)
Receipt of final audit report from Auditor-General MUNICIPAL FINANCE MANAGEMENT ACTSection 126(3)(b)
Tabling of Final Draft Annual Report in Council by Mayor MUNICIPAL FINANCE MANAGEMENT ACTSection 127(2)
Allowing for comment by community and relevant state organs
MUNICIPAL FINANCE MANAGEMENT ACTSection 127(5)(a) & (b)
Corrective actions to AG’s opinion formulated and tabled in Council MUNICIPAL FINANCE MANAGEMENT ACTSection 121(3)(g)
Submission of Annual Report and Oversight Report to AG, Provincial Treasury and MEC: Local Government MUNICIPAL FINANCE MANAGEMENT ACTSection 129(2)(b)
Communication of final Annual Report / Oversight Report (Website, hard copies and other mediums) MUNICIPAL FINANCE MANAGEMENT ACTSection 129(3)
Submit Annual Report / Oversight Report to the provincial legislature
MUNICIPAL FINANCE MANAGEMENT ACTSection 132 (1) (2)
MEMBERS OF THE MUNICIPAL PUBLIC ACCOUNTS COMMITTEE AND ATTENDANCE OF MEETINGS
COUNCILLOR NAME PORTFOLIO DATES OF MEETINGS 27 September 2016 18 October 2016 17 January 2017
Cllr. N. Mquqo Chairperson Yes Yes Yes Cllr. L. Moyeni Member Yes Yes Yes Cllr. N. Mtati Member Yes Yes Yes Cllr. R. Taylor Member Yes Yes Yes
224
COUNCILLOR NAME PORTFOLIO DATES OF MEETINGS 27 September 2016 18 October 2016 17 January 2017
Cllr. N. V. Gxasheka Member Yes Yes Yes Prince N. Mhlauli Member Yes Yes Yes
This Oversight Report is prepared in line with Section 129 of the Municipal Finance Management Act read in conjunction with Municipal Finance Management Act, Circular No.63.
The following table displays the nature of the accountability framework for local government:
Council Structures/Directorate Responsible for Oversight over Accountable to
Council Approving policy and budget Executive Committee Community
Mayor or Executive Committee
Policy, budgets, outcomes Municipal Manager Council
Municipal Manager Outputs and implementation The Administration Mayor or Executive
Committee
Chief Financial Officer and Senior Managers
Outputs and implementation
Financial Management and Operational Functions Municipal Manager
The Oversight Report is the final major step in the annual reporting process of a municipality. The oversight report must consider any input from the public and council.
The Oversight Report on the Annual Report is a product of comprehensive consideration and consultation on the Annual Report and is considered to be a report of the municipal council to the community disclosing the extent to which the priority needs have been met as contained in the IDP.
MPAC MEETINGS ON THE ANNUAL REPORT
WARD DATE ACTIVITY VENUE TIME 3 06/10/2016 Tabling of Annual Report 2015/2016 Crossman Community Hall 10H00 12 07/10/2016 Tabling of Annual Report 2015/2016 Wesley Community Hall 10H00 5 10/10/2016 Tabling of Annual Report 2015/2016W Crossroads Community Hall 10H00 6 12/10/2016 Tabling of Annual Report 2015/2016 Feni Community Hall 10H00 7 14/10/2016 Tabling of Annual Report 2015/2016 Rura Community Hall 10H00 10 17/10/2016 Tabling of Annual Report 2015/2016 Lower Gwalana Community Hall 10H00 9 20/10/2016 Tabling of Annual Report 2015/2016 Nobumba Community Hall 10H00 8 21/10/2016 Tabling of Annual Report 2015/2016 Peddie Extension Community Hall 10H00 2 08/11/2016 Tabling of Annual Report 2015/2016 Qugqwala Community Hall 10H00 1 09/11/2016 Tabling of Annual Report 2015/2016 Ngqwele Community Hall 10H00 4 10/11/2016 Tabling of Annual Report 2015/2016 Phole Community Hall 10H00 11 11/11/2016 Tabling of Annual Report 2015/2016 Mgababa Community Hall 10H00
Subsequent to the conclusion of the Annual Roadshows (as per table above), The Municipal Public Accounts Committee convened on the 17th January 2017, to consider the public inputs received on the Draft Annual Report 2015/16
225
RECOMMENDATIONS PERTAINING TO THE ANNUAL REPORT
That Council approves 2015/2016 Annual Report of the Ngqushwa Local Municipality with no reservations and representations thereof in terms of section 129 of the Municipal Finance Management Act.
That Council approves the 2015/2016 Annual Report without reservations; in terms of section 129 (1) (a) of the Municipal Finance Management Act.
That management follows Circular 63 in terms of reporting timelines of the Annual Report.
8. RECOMMENTATIONS PERTAINING TO THE OVERSIGHT REPORT
Accordingly the Municipal Public Accounts Committee (MPAC) of Ngqushwa Local Municipality recommends to Council that:
That Council adopts 2015/2016 Oversight Report of the Ngqushwa Local Municipality and representations thereof in terms of section 129 of the Municipal Finance Management Act;
The MPAC Oversight Report be made public in accordance with the prescripts of the Municipal Finance Management Act.
Cllr. N. Mquqo Chairperson
Signature:……..……………………………. Date: ………………………
………………………………………..……………………………………………………………………………………………………………………. ……………………………………………………
226
NGQUSHWA MUNICIPALITY 2015/16 AUDIT COMMITTEE REPORT TO COUNCIL
Report of the Audit Committee We present our report for the financial year ended 30 June 2016. ROLE AND RESPONSIBILITY OF THE AUDIT COMMITTEE The function of the Audit Committee (hereinafter referred to as the Committee) is primarily to assist the Ngqushwa Municipality (hereinafter referred to as the Council) in discharging its duties relating to the safeguarding of assets, the operation of adequate systems, control processes and the preparation of financial reports and statements. The Committee operates in terms of section 166 of the Municipal Finance Management Act (MFMA), Act No. 56 of 2003 and has endeavoured to comply with its responsibilities arising from those requirements. The Committee has performed its duties according to its terms of reference in the form of an approved Audit Committee Charter which stipulates amongst other issues the primary purpose of the Committee, which is:
To monitor the integrity of the Council’s financial statements and announcements relating to its financial performance, reviewing significant reporting financial reporting judgements; To review the effectiveness of the Council’s internal controls and risk management systems; To monitor the effectiveness of the internal audit function and review its material findings; and, To oversee the relationship with the internal and external auditors, including agreeing to the latter’s audit fees and terms of engagement, monitoring their independence, objectivity and effectiveness.
The Committee has no executive function and its primary objective is to review and challenge rather than assume responsibility for any matters within its remit. Audit Committee Members and Attendance The audit committee consists of the members listed hereunder and should meet at least 4 times per annum as per its approved terms of reference. In terms of the Audit Committee Charter, the committee should consist of a minimum of 3 members. The current audit committee held 5 meetings during the year under review (including the review of financial statements): Name of Member Number of Meetings Attended WA Plaatjes 5 G Bana 5 N Hlongwane 5 The committee meetings are also attended by the Mayor, the Chair of MPAC, the Municipal Manager, Chief Financial Officer, National Treasury, Internal and External Auditors. The Effectiveness of Internal Control The system of internal control was not entirely effective for the period under review. During the period under review, several deficiencies in the system of internal control and/or deviations were identified by the audit committee and the internal auditors. Information and Communications Technology (ICT) National Treasury mSCOA Circular No. 2 requires the Municipality to conduct ICT infrastructure, network and archiving policy and procedures. The ICT infrastructure was conducted in May 2016 to implement the requirements as outlined in the circular. The assessment was done in the following ICT infrastructure:
Servers Bandwidth and internet Network Security Microsoft products, and Server room environment and any other ICT infrastructure.
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The Audit Committee awaits a holistic implementation plan, rather than the ad hoc pattern of implementation. Risk Management In August 2015 the risk management office facilitated a risk assessment and assisted various departments within the municipality to updating their risk registers and developing an action plan to address risks. The action plans is derived from the risk registers and is constituted mainly by suggested control improvements to address risks that may negatively affect the institution’s ability to achieve its objectives. Performance Management Performance related matters remain a concern as the SDBIP targets were not Specific, Measurable, Attainable, Reliable, and Time Specific (SMART); this affected the reliability and validity of findings. The Performance Management (PMS) Framework was reviewed by the Committee. Challenges relating to timeframes are improving, but this should be closely monitored. The cascading of PMS remains a challenge in all local municipalities. Compliance with the MFMA, the Annual Division of Revenue Act and any other applicable legislation The Audit Committee reports that it is not aware of any material occurrence or omission resulting or potentially resulting in non-compliance with the Municipal Finance Management Act; the Annual Division of Revenue Act and any other key legislation applicable to the Local Municipality. Evaluation of the Financial Statements The Audit Committee has:
Reviewed and discussed the unaudited annual financial statements to be included in the annual report; Reviewed changes in accounting policies and practices; Reviewed the municipality’s compliance with legal and regulatory provisions; Reviewed the information on pre-determined objectives to be included in the annual report, and Reviewed significant adjustments used in the compilation of the annual financial statements.
Internal Audit The Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the municipality during the year under review. Auditor General South Africa The Audit Committee have met with the Auditor General during the year to ensure that there are no outstanding issues relating to the Municipality. ____________________________ Dr. W Plaatjes Chairperson of the Audit Committee Date: 12 January 2017
_________________________________________________________________________Dr. . . . . W WWWWWWWWWWWWWWWWW Plaatjes Ch i f th A dit C it
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