uMshwathi Owethu - ANNUAL REPORT · 2020-06-03 · TABLE 1.1 ECONOMIC PROFILE ..... 24 Chapter 2 – good governance and public participation ... iNkosi Ngubane: Faye iNkosi Ndunankulu

ANNUAL REPORT

2018/2019 FINANCIAL YEAR

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Contents VOLUME 1 ............................................................................................................................................... 9

chapter ONE: mayor forward and executive summary ........................................................................ 14

TABLE 1.1 ECONOMIC PROFILE .............................................................................................. 24

Chapter 2 – good governance and public participation........................................................................ 39

INTRODUCTION TO POLITICAL GOVERNANCE .................................................................................. 40

2.3.2. JOINT FUNCTION AND PROJECTS WITH SECTOR DEPARTMENTS ........................................... 52

2.5.3 APPROVED RISK POLICIES AND STRATEGIES ............................................................................ 60

2.13.1 COMMUNICATION ACTIVITIES ............................................................................................... 69

2.13.2 COMMUNICATION UNIT .................................................................................................. 69

chapter 3: Service delivery perfomance PERFORMANCE REPORT ....................................................... 70

PART ONE .............................................................................................................................................. 70

3.1.3 THE WAY FORWARD ..................................................................................................... 72

3.2 THE IDP AND THE BUDGET ................................................................................................ 72

3.5 MUNICIPAL FUNCTIONS .................................................................................................... 73

Table 3.9 Employees: Water Services (this service is provided for by uMgungundlovu District

Municipality) ................................................................................................................................. 81

3.8.2 EMPLOYEES: SANITATION SERVICES (THIS SERVICE IS PROVIDED FOR BY

UMGUNGUNDLOVU DISTRICT MUNICIPALITY) ............................................................................. 83

3.10 WASTE MANAGEMENT (REFUSE COLLECTIONS, WASTE DISPOSAL, STREET CLEANING

AND RECYCLING) ........................................................................................................................... 88

3.10.2 REFUSE REMOVAL SERVICE DELIVERY LEVELS .............................................................. 89

3.11 HOUSING ........................................................................................................................... 91

3.13.2 GRAVEL ROADS ............................................................................................................. 95

3.13.5 EMPLOYEES – ROADS .................................................................................................... 96

3.13.6 CAPITAL EXPENDITURE – ROADS .................................................................................. 96

3.14 STORM WATER .................................................................................................................. 97

3.14.1 STORM WATER INFRASTRUCTURE ................................................................................ 97

3.14.2 COST OF CONSTRUCTION/MAINTENANCE ................................................................... 98

3.14.3 EMPLOYEES: STORM WATER ........................................................................................ 98

3.15 PLANNING ......................................................................................................................... 99

3.15.1 CHALLENGES: PLANNING ............................................................................................ 100

3.15.2 SERVICE DELIVERY STATISTICS FOR PLANNING ........................................................... 100

3.15.3 EMPLOYEES: PLANNING .............................................................................................. 102

3.16 LOCAL ECONOMIC DEVELOPMENT ................................................................................. 102

3.16.1 SERVICE DELIVERY INDICATORS: LED .......................................................................... 103

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- Establish 3 Industrial Sewing Hubs. ....................................................................................... 103

3.16.2 HIGHLIGHTS: LED......................................................................................................... 103

3.16.3 CHALLENGES: LED ....................................................................................................... 104

Table 3.38 Employees: LED ......................................................................................................... 105

COMPONENT D: COMMUNITY AND SOCIAL SERVICES ............................................................... 106

3.17.2 CHALLENGES: LIBRARIES ............................................................................................. 107

3.17.3 SERVICE STATISTICS - LIBRARIES ................................................................................. 108

Table 3.41 Service statistics –Libraries ........................................................................................ 108

3.17.4 SERVICE DELIVERY INDICATORS .................................................................................. 109

3.17.5 EMPLOYEES: LIBRARIES ............................................................................................... 109

Table 3.42 Employees: Libraries .................................................................................................. 109

3.18 CEMETERIES .................................................................................................................... 109

CHALLENGES ............................................................................................................................... 109

Current Cemetry in New Hanover Ward 2 is full and no land has been identified. Other

challenges includes waterlogging in Coolair cemetery and cemeteries with no fencing leading

to vandalism. All our cemeteries are still to be provided with toilets for public use during

burials. ......................................................................................................................................... 109

3.18.2 EMPLOYEES: CEMETERIES ........................................................................................... 110

Table 3.43 Employees: Cemeteries ............................................................................................ 110

3.19 SOCIAL PROGRAMMES .................................................................................................... 110

3.19.1 EMPLOYEES: SOCIAL PROGRAMMES .......................................................................... 112

Table 3.45 Employees: Social programmes ................................................................................. 112

3.20 POLLUTION CONTROL ..................................................................................................... 113

3.21 BIO-DIVERSITY, LANDSCAPE AND OPEN SPACES ............................................................ 113

3.22.1 SERVICE STATISTICS – TRAFFIC, SECURITY AND LICENSING ........................................ 115

Table 3.46 Service data for Traffic, security and licensing .......................................................... 115

3.22.2 EMPLOYEES: TRAFFIC, SECURITY AND LICENSING ...................................................... 116

Table 3.47 Employees: Traffic, security and licensing ................................................................. 116

3.24 COMMUNITY HALLS ........................................................................................................ 117

3.24.1 HIGHLIGHTS: COMMUNITY HALLS .............................................................................. 117

3.24.2 CHALLENGES: COMMUNITY HALLS ............................................................................. 117

3.24.3 EMPLOYEES: COMMUNITY HALLS ............................................................................... 117

Table 3.51 Employees: Community halls ..................................................................................... 117

3.28 SPORT GROUNDS ............................................................................................................ 118

3.28.1 CHALLENGES: SPORT GROUNDS ................................................................................. 118

3.28.2 EMPLOYEES: SPOR

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T GROUNDS ................................................................................................................................. 118

COMPONENT H: UMSHWATHI MUNICIPALITY: CORPORATE POLICY, OFFICES AND OTHER

SERVICES ..................................................................................................................................... 119

3.29 EXECUTIVE AND COUNCIL ............................................................................................... 119

3.29.2 CHALLENGES: EXECUTIVE AND COUNCIL .................................................................... 120

3.29.3 SERVICE DELIVERY INDICATORS: EXECUTIVE AND COUNCIL ...................................... 121

3.29.4 EMPLOYEES: EXECUTIVE AND COUNCIL ...................................................................... 121

Table 3.61 Employees: Executive and Council ............................................................................. 121

3.30 FINANCIAL SERVICES ....................................................................................................... 121

3.30.1 HIGHLIGHTS: FINANCIAL SERVICES ............................................................................. 123

3.30.2 CHALLENGES: FINANCIAL SERVICES ............................................................................ 123

3.30.3 SERVICE DELIVERY INDICATORS: FINANCIAL SERVICES ............................................... 123

3.30.4 EMPLOYEES: FINANCIAL SERVICES .............................................................................. 124

Table 3.65 Employees: Financial Services ................................................................................... 124

3.31 HUMAN RESOURCES ....................................................................................................... 124

3.31.1 HIGHLIGHTS: HUMAN RESOURCES ............................................................................. 125

3.31.2 CHALLENGES: HUMAN RESOURCES ............................................................................ 125

3.31.3 SERVICE DELIVERY INDICATORS: HUMAN RESOURCES ............................................... 126

3.31.4 EMPLOYEES: HUMAN RESOURCE ................................................................................ 126

Table 3.68 Employees: Human Resources ................................................................................... 126

3.32 CORPORATE SERVICES..................................................................................................... 126

3.32.1 HIGHLIGHTS: CORPORATE SERVICES ........................................................................... 127

3.32.2 CHALLENGES: CORPORATE SERVICES ......................................................................... 127

3.32.3 SERVICE DELIVERY INDICATORS: CORPORATE SERVICES ............................................ 127

3.32.4 EMPLOYEES: CORPORATE SERVICES ........................................................................... 128

Table 3.71 Employees: Corporate Services ................................................................................ 128

3.32.5 CAPITAL EXPENDITURE – CORPORATE SERVICES ........................................................ 128

Table 3.72 Capital expenditure - corporate services ................................................................... 128

COMPONENT I: ORGANISATIONAL PERFORMANCE SCORECARD............................................... 130

3.33 DEVELOPMENT AND SERVICE DELIVERY PRIORITIES FOR 2018/19 ................................ 130

CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE (PERFORMANCE REPORT PART

ONE) .................................................................................................................................................... 165

A. NATIONAL KEY PERFORMANCE INDICATORS - MUNICIPAL TRANSFORMATION AND

ORGANISATIONAL ........................................................................................................................... 165

B. HIGHLIGHTS – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT ..... 165

C. CHALLENGES – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT .... 166

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4.1 COMPONENT A: INTRODUCTION TO THE MUNICIPAL WORKFORCE ....................................... 167

4.1.1 EMPLOYMENT EQUITY .................................................................................................... 169

EMPLOYMENT EQUITY VS. POPULATION ........................................................................................ 170

4.1.2 VACANCY RATE ................................................................................................................ 170

4.1.3 STAFF TURNOVER RATE .................................................................................................. 173

4.2 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ................................................... 174

4.2.1 INJURIES .......................................................................................................................... 174

4.2.2 SICK LEAVE ...................................................................................................................... 176

4.2.3 SUSPENSIONS ......................................................................................................................... 177

4.2.4 HR POLICIES AND PLANS ................................................................................................. 177

4.3 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE .............................................. 179

4.3.1 SKILLS DEVELOPMENT AND TRAINING ........................................................................... 179

INTERNAL TRAINING PROGRAMS DURING THE 2018/19 FINANCIAL YEARS .................................. 179

4.3.2 THE FOLLOWING DIAGRAM ILLUSTRATES THE LEARNERSHIPS WHICH WERE FUNDED BY THE

LGSETA AND WERE ONGOING DURING THE 2018/19 FINANCIAL YEAR ......................................... 180

4.3.3 THE FOLLOWING TABLE ILLUSTRATES THE INTERNAL TRAINING INTERVENTIONS DURING

THE 2018/19 FINANCIAL YEAR IN VARIOUS OCCUPATIONAL CATEGORIES .................................... 181

4.3.3 SKILLS DEVELOPMENT - BUDGET ALLOCATION .............................................................. 181

4.4 COMPONENT D: MANAGING THE MUNICIPAL WORKFORCE EXPENDITURE ............................ 182

4.4.1 PERSONNEL EXPENDITURE .............................................................................................. 182

Chapter 5: Financial Performance ...................................................................................................... 183

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VISION, MISSION AND VALUES

MISSION:

To promote social-economic development through sustainable effective and efficient

use of resources and dependable delivery of basic services in line with the

Constitutional mandate and to continually strive to remain a green municipality.

VISION:

To be a healthy, secure and self-sustainable community by 2030

This Annual Report is divided into two volumes and has six chapters as outlined:

VOLUME 1

Chapter 1: Mayor’s Foreword and Executive Summary;

Chapter 2: Governance;

Chapter 3: Service Delivery Performance;

Chapter4: Organizational Development Performance;

Chapter 5: Financial Performance;

Chapter 6: Auditor General’s Findings; and audit Opinion

APPENDIX

VOLUME 2

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Annual Financial Statements

CHANGES IN COUNCIL

Resignation: Cllr M.M De Vries from the DA resigned in April 2018.

New appointment: Cllr V.M Mncwabe from the DA was appointed sworn in June

2018.

Naidoo replaced by Cllr Ndlovu and Cllr Shezi replaced by Mncube

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Table 1: Alignment of the key challenges, interventions with KPA's

Key Performance Area Key Challenges Interventions

STATUS

Municipal

Transformation&

Institutional Development

Poor work ethic and

organisational

culture

Review organisational structure and placement of

staff; Restructure the organisation; Implement

code of conduct and disciplinary policy and

collective agreement; Roll out PMS Policy to all

staff; Review Recruitment Policy.

Addressed

Basic Service Delivery

Aging

Infrastructure and

backlogs

Sourcing funding from sector departments;

Develop a policy self-sustaining infrastructure;

Develop Private-Public Partnership for

infrastructure development and maintenance;

Develop a maintenance plan for infrastructure;

develop master plans for infrastructure and review

annually; develop clear prioritisation plan; develop

a capital project investment framework as part of

part of SDF.

Being reviewed

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Key Performance Area Key Challenges Interventions

STATUS

Local Economic

Development

High

unemployment,

poverty & inequality

Develop a Grant-in-Aid Policy & Programmes;

Implement capacity building programs for women,

youth; SMME’s and Cooperatives; Improve

access to EPWP and CWP job opportunities to the

most needy; Promoting greater procurement from

local cooperatives and SMME’s; Providing

incentives to local businesses for the use of local

labour; Develop a programme to roll out agrarian

projects; Forming partnerships with business;

Reskilling of retrenched workers (citizens);

Providing support to local SMME’s, cooperatives;

Setting minimum targets for the use of labour

intensive methods in infrastructure projects &

develop a clear program for small contractor

development.

Municipal Financial

Viability & Management

Lack of funding/

revenue collection

Review the Revenue Enhancement Strategy;

Identify additional sources of income; Investigate

driver’s testing ground; Negotiate with DOT to

have weigh bridge; Review lease agreements for

all municipal properties, Implement/ review, Credit

control and debt collection policy, Appoint

dedicated Panel of Attorney’s to pursue debt

collection beyond the final demand process, Take

legal action against government departments

owing money to the Municipality, Capacitate

finance staff on revenue collection, Carry out Land

audit.

Good Governance &

Public Participation

Undue political

interface

Review and workshop delegations; develop

communication protocol. Addressed

Cross Cutting Issues Unknown land use

and ownership

Conduct land rights and land use audit; review

bylaws; Appoint or capacitate property valuer;

review and update the enforcement structure.

Develop local area plans.

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POLITICAL LEADERSHIP

Mayor: His Worship Cllr. G.M Zondi

Deputy Mayor: Cllr. M.P.Dlamini

Speaker: Cllr. N. P Mdunge

TRADITIONAL LEADERSHIP AMAKHOSI

iNkosi B Ntanzi: Mhlangandlovu iNkosi

B.G Gwamanda: New Hanover

iNkosi M.Z Mthuli: Mathulini

iNkosi M.S Ndlovu: Masihambisane

iNkosi Gcumisa: Swayimane

iNkosi Ngubane: Faye

iNkosi Ndunankulu M. Zondi: Nadi iNkosi Madlala

SENIOR MANAGEMENT

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Municipal Manager: Mr. N.M Mabaso

Chief Financial Officer: Mr. R. Mani

General Manager: Community Services: Mr. B.T Zondi

General Manager: Corporate Services: Mrs. T.T Mathenjwa

General Manager: Technical Services: Mrs. N. Mncube

CHAPTER ONE: MAYOR FORWARD AND EXECUTIVE SUMMARY

MAYOR’S FORWARD

Fellow citizens, It is humbling and an honour to present to you uMshwathi’ s annual

report for the year ending 2018/19. As encapsulated in our vision our long term long

to be a healthy secured municipality through agribusiness and sound environmental

management by 2030.

Secured means all races within our community live harmoniously, in peace and

prosperity without economic or political or religious exclusion.

To arrive in that desired uMshwathi state, it is paramount that we promote a healthy,

self-sustainable community through infrastructure and socio-economic development.

Self-sustainability resonates with the wisdom of the former American President J.F

Kennedy words in 1961 that “ask not what Country will do for you, but what you will

do for government.

KEY POLICY DEVELOPMENTS IN 2018/19

Our Spatial Development Framework (SDF) was finalized and approved by Council

in the past year. This will assist the municipality to control and drive development in

a structured and visionary way. The Land Use Management System (LUMS) was

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also finalized and approved to minimize the intentions of the SDF and establish a

healthy secured municipality that we all desire to see.

New Electrification projects achieved for the last year was for 942 households.

These were installed at Efaye, Dalton, Windy Hills and to several African farm

dwellers. Since our challenge has been deteriorating infrastructure we have

mitigated the challenge by investing R5.5 million to maintain it. This was achieved by

doing renovations in six community halls, in areas like Thokozani and Mpolweni.

Seven crèches were also renovated in Nyaninga. Four sports fields including a

netball court were constructed in Swayimane.

One Agrihub (farmer support unit) was also completed during the past year. The

municipality also undertook community capacity building, which is currently in

progress. An ICT office was also completed successfully in Bamshela. Our PMU unit

has successfully implemented nine projects as per planned schedules.

CHALLENGES

A few projects were delayed mostly due to the inexperience of emerging contractors,

however it is encouraging to report that the delayed projects did not result in scope

creep and further costs to our municipality. Underperforming contractors were forced

to bear the escalated costs of prolonged projects.

PUBLIC PARTICIPATION

uMshwathi has been blessed by the Traditional Council “Amakhosi” that sit and

deliberate the future of our municipality in portfolio committees and other municipal

public undertakings. The said leaders always make a point to bring their

communities. This naturally motivates all stakeholders including ward committee

members and the greater public to participate in all municipal public undertakings

such as IDP/Budget Izimbizo that are always well attended. The Council has a very

good working relationship with the traditional leaders and this has been the key to

massive public attendance.

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Council employs a number of mediums to also boost public attendances such as

radio announcements, public hauling, school announcements and newspaper

advertisement. The public also benefits in these Izimbizo as Council identifies and

gives feedback to the communities on progress made on their IDP needs which also

creates a sense of belonging and transparency leading to project ownership.

FUTURE ACTIONS

Going forward, I am interested to see and experience the uMshwathi that you desire

and that you will build. As local government we have and always will give you the

means to start a great and prosperous future by creating sports fields, community

halls, agribusiness hubs that you requested. Any business idea that you have,

training that you need there are people ready to help you.

We shall obviously continue to maintain and usher in more, more high mast lights

and more agribusiness hubs like chicken-processing factories etc. let’s all come

together and utilize this infrastructure to create employment for ourselves. Work hard

and create a market here and abroad. It can only start here with you. Most

importantly if YOU pay for what you use, pay for your electricity and water so Eskom

can have the means to stop load shedding, pay for your rates so we can take move

our municipality forward.

CONCLUSION

I, conclude by wishing you all a happy and prosperous 2020, filled with love, laughter

and happiness. Let’s all get out there and do our bit to make our UMshwathi GREAT.

Let’s heed the call “Thuma Mina” and bring change and prosperity to our families. It

can only start with you. God Bless You and God Bless South Africa.

Cllr. GM Zondi

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His Worship Mayor

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MM FOREWORD IN 2018/2019 ANNUAL REPORT

It is my privilege to present to you the Annual Report for the 2018/2019 Financial Year.

2019 was a hectic but good year for the Municipality. We engaged in the larger and most

future-oriented infrastructure projects, ranging from road construction, the completion of

spatial development framework (SDF), and Land Use Management System and community

facilities.

We welcomed the new Mayor and Councilors who joined us during the year. We also wish

to record our deep sadness in the loss of the former Mayor, Cllr. S.S. Zondi-Mbhele, who

served the municipality with diligence.

PUBLIC PARTICIPATION

Our community comes first. During the year, we continued to embark on the community

consultation and engagement process to ensure that all our plans are guided, citizen

aspiration for the future, and that the needs of the community are addressed as defined by

them. We are ready to create even more value for our community by finalizing the current

consultation process of changing the municipal logo and color scheme to the one that

resonates with our community aspirations for a brighter future.

FINANCES

Our pursuit of an audit opinion without any findings remains unchanged and despite the

setbacks as reported in respect of the 2018/2019 financial year, the target remains in sight.

The municipal financial health is solid, cash flow management and focus are all within the

acceptable norms.

We have continued to achieve good scores on back-to-basic over the last three financial

years and our future plan is to ensure the longevity of this achievement. The payment of

municipal accounts debt remains low. However, we are encouraged to see that government

departments have started to settle their long outstanding accounts.

PLANNING PROCESS

Planning remains our top strategy. The Municipal IDP document has managed to be

ranked amongst the top ten in the category, within the province over a number of financial

years. This tool is supported by constant and continuous reports and feedback to

communities through the newsletter and is firmly encored at the Wards through Operation

Sukuma Sakhe and Ward Community activities. To avoid duplications, these activities are

consolidated in all wards through functional war rooms.

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RISK MANAGEMENT

Municipal risk exposure is diligently considered on all angles. We are committed to

proactive risk management in the pursuit of the municipality's strategic objectives with a

view to ensure sustainable service delivery and to safe guard the municipal assets and

interests. We acknowledge that proactive risk management is both a key element of good

corporate governance and an enabler for plans to be realized.

The municipality would like to bid farewell to all outgoing members of the Audit and Risk

Committee for their diligent performance and commitment whilst in office.

PERFORMANCE

We have significantly strengthened our performance throughout the municipality by

improving the number of performance targets achieved has improved from 86.1% to 93.3%.

MIG EXPENDITURE

In enhancing development, during the year we engaged in capital projects that resulted in

the municipal infrastructure grant allocation being spent in full. Our performance in this

regard opens up new opportunities to secure additional allocations from The Treasury. In

total, R29.6 million was spent on capital projects.

LOCAL ECONOMIC DEVELOPMENT

Municipal economic development plans are aligned to provincial and district development

plans. Our focus is on small and emerging businesses led by youth and community- based

organizations such as cooperatives, practical and intensive training that enables the youth

to start their businesses. This includes training on furniture making, sewing and providing

support to farmers. In the following financial year, a Farmer’s hub will be created in New

Hanover to enable local businesses to participate in the provincial government RASSET

program.

RELATIONS

Our relationship management is based on trust and open communication. We have

succeeded in maintaining a good working relationship with all our stakeholders, including

ratepayers associations, farmers associations, business interest groups, and employee’s

representative groups. Naturally our interest will at times differ and our relationship is

always a work-in-progress, however we have so far managed to achieve results that

received favor from all interested parties.

INSTITUTION ARRANGEMENT

OUR DESIRE TO CREATE A SOLID MUNICIPAL CULTURE IS ALIVE. OUR MUNICIPAL

VALUES WHICH INCLUDE ETHICAL BEHAVIOR AND FAIRNESS ARE BASED ON THIS

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QUEST AND ARE IN LINE WITH THE BATHO PELE PRINCIPLES AND PRACTICES AS

IMPLEMENTED BY THE MUNICIPALITY MORE THAN TWO YEARS AGO.

ENVIRONMENT

Environmental protection is key to our healthy. We have a clear ambition to protect our

environment and retain our status of being amongst the greenest municipality in the

province. Our by-laws, building regulations and planning framework helps us to pursue

these goals. Municipal investment on digital solution is part of the plan to reduce waste.

CHALLENGES

Our employee employment cost ratio is higher than the acceptable norm and this is due to

work being done in-house as opposed to outsourcing. The cost of the digitalization

activities is continuing to increase and this is due to the fast paced information technology

environment. On the other hand, through this investment the municipality is able to

collaborate more effectively and to reduce costs such as printing and duplication of

activities. Also through the oversight structure such as the Municipal Public Accounts

Committee and Audit Committee slack in performance against plans and standards are

identified and steps to correct the situation are then taken. Information Communication and

technology (ICT) extension to communities and training of communities on ICT.

PLANS FOR THE FUTURE

Our plans for the future are contained in the Municipal IDP Document for 2019/2020 and all

our stakeholders are encouraged to read this document. A brief summary of our future

plans is highlighted at the beginning of each chapter of this document.

Thank you for your meaningful and positive contribution over the years. Let us look forward

to meeting new challenges together over the coming years.

NM Mabaso

Municipal Manager

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MUNICIPAL FUCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

1.1. UMSHWATHI LM OVERVIEW

The uMshwathi Local Municipality (LM), (KZN221), is strategically located within the

uMgungundlovu District Municipal area, to the north of Msunduzi Municipality

(Pietermaritzburg/ Capital City of KwaZulu Natal). UMshwathi is sharing a common

boundary with Msunduzi, uMngeni, Mpofana, uMvoti, Ndwedwe, eThekwini and

Mkhambathini Local Municipalities. Covering a land area of approximately 1867.9km², the

uMshwathi Municipality has 111 645 people living in approximately 29 083 households

according to Community Survey 2016.

The Municipality covers an area of approximately 1811 square kilometers in extent. The

provincial positioning of uMshwathi accommodates secondary movement systems, which

aim at providing efficient and effective access e.g. the R33 (Old Greytown Road) serves as

the major/main movement corridor between the N3 and the capital Msunduzi Municipality,

to some of the surrounding local Municipalities towards the north such as uMvoti, Msinga,

and Ndumeni. Hence, due to these as well as many other characteristics, there is a clear

reflection of the R33 being a primary development and access corridor offering a range of

opportunities for investment in relation to the province.

The advantage of uMshwathi Municipality’s close proximity to Pietermaritzburg (Msunduzi

Municipality), opportunity exists for positive spin-offs for Local Economic Development

(LED). The local economy can also be diversified through, the development of tourism

infrastructure and middle to high-income residential and commercial developments that

may be limited in Msunduzi

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MAP 1: LOCALITY MAP

1.2. SPATIAL ANALYSIS

uMshwathi LM sits in the KwaZulu-Natal province as a local municipality of

uMgungundlovu District Municipality. The uMshwathi Municipality features

transportation networks such as the R33 (Old Greytown Road) and the R614

(Wartburg Road) to N2, which provide linkages from main centers such as

Durban and Pietermaritzburg, to the interior of the province such as Greytown

and Dundee. At a local level, both the R33 and the R614 have been identified

as primary corridors that have the potential to become key development routes

within the Municipality and Province by linking markets, places and people.

The land within the Municipality is dominated by agricultural landscapes

(timber and sugar-cane) and rural-residential settlements. The four main urban

centers within the Municipality are New Hanover, Wartburg, Dalton and Cool

Air. While each of these centers vary in terms of the services they offer, the

Primary Centre/ Node is New Hanover that serves as the Administrative Hub of

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the Municipality. Wartburg serves as the main Commercial Centre while Dalton

is the main Service Industrial Hub within the Municipality. Outside of these

main urban areas, are various other nodes which boast thriving economic

activities, high concentrations of people, mixtures of land use and the

availability of goods and services essential for the communities living around

these nodes e.g. Bhamshela, Swayimane, Appelsbosch, Crammond, etc.

Throughout the Municipality, there is a broad spectrum of services, facilities,

amenities and other opportunities, which aim to improve the Municipality‘s

economic, social, political and environmental status.

1.3. ECONOMIC PROFILE

The land is mostly agricultural, although urban development is to be found in

the main towns. The communities living in the underdeveloped areas have

extremely limited access to basic physical, social requirements and very few

economic opportunities. The present authority structures are, as yet, unable to

provide fully for the improvement of basic living conditions urgently required by

the rural inhabitants. The main towns are Cool Air, Dalton, New Hanover,

Wartburg. The main economic sectors are agriculture, manufacturing and

tourism.

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TABLE 1.1 ECONOMIC PROFILE

Employment Status 2011 Census

Employed 32%

Unemployed 11%

Not Economically

Active

50%

Discouraged Work

Seekers

7%

Sector of Employment 2011 Census

Formal Sector 63%

Informal Sector 23%

Private Households 10%

Do not know 5%

Annual Income 2011 Census

No Income 9%

Under R4800 4%

R4800 to R10 000 9%

R10 000 to R20 000 41%

R20 000 to R40 000 18%

R40 000 to R75000 7%

R75000 to R150 000 5%

R150 000 to R300 000 3%

R300 000+ 1%

Unspecified 3%

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Education Profile 2016 Community Survey

None 10%

Other 1%

Some Primary Education 14%

Primary Education 5%

High School Education 35%

Grade 12 (Matric) 29%

Higher Education 4%

N/A 2%

1.4. DEMOGRAPHIC PROFILE

Covering a land area of approximately 1867.9 square kilometers, the

uMshwathi Municipality has 111645 People living in approximately 29083

households according to Community Survey 2016. This indicates 4.96%

increase in the population count of 106,374 as per the 2011 Stats SA data.

Table 1.2: Population Information

2016 Community Survey

Total Population 111 645

Source: Community Survey 2016

1.4.1. POPULATION BY AGE CATEGORY

Table 1.3: Population by Age Range

Age Percentage

Under 18 46%

18-6 50%

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65 and over 4%


1.4.2. POPULATION GROUP

Table 1.4: Population Group

Group Percentage

Black African 94%

Coloured 0%

Indian/Asian 3%

White 2%


1.4.3. GENDER PROFILE

TABLE 1.5 GENDER PROFILE


1.4.4. HEAD OF HOUSEHOLD BY GENDER

Table 1.6: Head of Household by Gender


Male Female

48% 52%

Male Female

51% 49%

27

1.4.5. HOUSEHOLDS BY DWELLING TYPE

Table1.7: Household by dwelling type

Dwelling Type Percentage

House 52%

Traditional 37%

Shack 6%

Flat in Backyard 3%

Other 2%

Unspecified 3%

N/A 2%


1.4.6. WATER SUPPLY

Table 1.8: Sources of water

Water Source Percentage

Umgungundlovu DM 59%

Natural Source 23%

Own Service 12%

Vendor 3%

Other 2%


28

1.4.7. ELECTRICITY SUPPLY

Table .1.9: Sources of electricity

Electricity Supply Percentage

In-house prepaid meter 70%

No Access to Electricity 14%

In-house Conventional Meter 13%

Other 1%


1.4.8. ACCESS TO TOILET FACILITIES

Table 1.10: Access to toilet facilities

Toilet Facility Percentage

Pit Toilet 42%

Chemical Toilet 24%

Flush Toilet 15%

No Access to Any Toilets 1.6%


1.4.9. REFUSE DISPOSAL

Table 1.11: Refuse disposal

Refuse Disposal Percentage

Own Dump 80%

Service Provider 8%

Communal Dump 5%

Service Provider Not Regularly 3%

Other 4%


29

1.4.10. SOCIO-ECONOMIC STATUS

Table 1.12: Socio-Economic Status

Socio-Economic Status

Year Housing Backlog as

proportion of current demand

Unemployment Rate Proportion of households with no

Income

2011 6.1% 24.9% 9.9%

2016 6.4% 25.6% 9.0%

2018

Source: Statistics SA Census 2011, 2016 CS

1.4.11. NATURAL RESOURCES

TABLE 1.13. NATURAL RESOURCES

Source: Statistics SA Community survey 2016ALI

1.5. TOURISM

Albert Falls Dam is a tourism node that was designated in 1975 as a nature

reserve. The dam is located approximately 20km north of Pietermaritzburg and

is one of the area’s likeable tourist destinations. The area around the dam is

filled with secluded nature trails and picnic spots. The dam boasts an

Natural Resources

Major Natural Resource Relevance to Community

Land Opportunities for agriculture and alternative energy

sources

Water dams Tourism opportunities and farming

Labour force Opportunity for local economic development through

active workforce and educational opportunity through

establishment of institutions of further education

30

abundance of bird life as well as wild life and is counted amongst the best bass

fishing dams in the country. The site offers camping area, water skiing, fishing,

scenic views, and cultural attraction.

Apart from the dam, the route that extends from Albert Falls, Wartburg, New

Hanover, and Dalton is known as Albert Falls Amble. This route offers a

selection of arts and craft, and it runs along a number of private game reserves.

1.6. PLANNING AND DEVELOPMENT PRINCIPLES

Planning and development are key economic capacity building activities within

the Municipality. The government’s transformation process, on legislation that

deals with land-use management, has also led to a radical transformation of

municipal planning. The overall objectives of these reforms are to develop a

more appropriate, integrated, developmental, strategic and sustainable

development planning founded on the principles of our Constitution.

During the apartheid era (1948-94), land-use planning was used to enforce

racial segregation. The dawn of democracy has necessitated new thinking and

the development of new tools to strengthen the municipalities and other

stakeholder’s ability to successfully implement the new direction. This new

thinking is based on the understanding that Land is an asset. Land is scarce.

Land is fragile. “The broad objective is to facilitate allocation of land to the uses

that provide the greatest sustainable benefits and to promote the transition to a

sustainable and integrated management of land resources.”

This resulted in the government development of Spatial Development

Framework and land use system that seeks to redress past injustice and to put

proper land use management plans at the center stage of development.

However, shortage of skilled professionals in the field of planning and

development remains one of the major challenges.

31

1.7. INTERNET ACCESS

Table 1.14 Internet Access

Source: 2016 Community Services

Access to Internet presents unprecedented economic growth opportunity.

Smartphone plays an import link to Internet for the 48% of the population that

has Internet. Also 40% of the population seems not to have access to the

Internet.

Provision of basic services is essential for sustained community livelihood,

public health, development and safety. These services include water,

electricity, sewerage & sanitation, and solid waste management. In uMshwathi

municipality context, most of these services are provided through the District

Municipality and other State Owned Companies such as Eskom for the

distribution of electricity but uMshwathi is responsible for waste management.

32

TABLE 1.15 SWOT ANALYSIS

STRENGTHS WEAKNESSES

Recent acquisitions of plant and

equipment to improve

service delivery and infrastructure

development

Competent and highly-skilled

team of individuals within the

Technical Services Department

(municipality)

New infrastructure built in the last

year

Critical post filled

Housing Unit established

(facilitation)

Support from DoHS (funding)

Support from DRDLR (land

acquisition)

Support from ITB (rural areas in

relation to DRA)

Vast rural area of the municipality

imposes a burden on the cost-

effectiveness of delivering services to

these areas

Insufficient compliance officers to

ensure bylaws are implemented.

33

OPPORTUNITIES THREATS

Increased sources of funding for

infrastructure development

through LOTTO and other

donors(MIG) (INEP)

Completed development of the

Thusong Centre improves service

delivery and interaction with

community members

Farmers are supportive in making

land available for housing sites.

Project Steering Committees

(Public Participation).

Site Meetings (Public

Participation)

EPWP Programme, CWP

Programme

Housing Consumer Education

Programme (Education for

beneficiaries)

Vandalism to Municipal property by

local communities

Illegal dumping occurs from time to

time

EIA‘s take too long before approvals

Mushrooming of slums/informal

settlements.

Land invasion by illegal occupants

Illegal/Informal tenants (resistance in

paying rents)

Shortage of housing sites at wards 1,

2, 7 and 9.

Land ownership issue at ward 3.

Poor quality of emerging contractors

The social and economic value of education in the development of a society

and a country cannot be overstated. The Municipality is tasked with a

developmental mandate and investment in education is one of the key drivers

of individual and society success.

The Municipality’s no-schooling rate for those above 20 years is 15.7%.

Research indicates that there is a converse relationship between the society

level of education and poverty rate and participation in the economic activities.

We are, however, encouraged to see an increase in the level and number

of high quality schools being built in our area. To assist, the Municipality

Councilors participate in annual back- to-school and matriculates support

campaigns.

34

1.8. FINANCIAL HEALTH OVERVIEW

The municipality continues to maintain a good financial health despite

escalating salary bill and other operating costs. Total income for the year was

R189.3 million which is 98.15% of the budget. The high debt level is still a

challenge, at the end of the financial year municipal debt was just above

R124.9 million inclusive of R37.9 million provision for doubtful debts.

However, concrete steps are taken to recover the amount due and a common

understanding has been reached with a government department, which

accounts for more than 50% of the total debt. (Department of water and

sanitation)

Most of our income still comes from government grants and the balance is

derived from rates and tariffs for municipal services.

TABLE 1.16 FINANCIL OVERVIEW

Financial Overview: year 2018/2019

R’000

Details Original Budget Adjustment Budget Actual

Income:

Rates 36,200 42,250 45,5050

Services 2,070 2,250 2,402

Operational Grants 97,972 97,972 97,972

INEP Grant 10,000 10,000 10,000

Capital Grants 27,098 27,098 27,098

Other 12,800 13,325 16,340

Total 186,140 192,895 199,317

Less Operating Expenditure

35

Salaries 74,477 77,238 76,521

General expenditure 55,591 58,625 53,459

Repairs and Maintenance 12,730 12,520 12,120

Contribution to reserves/Provisions 500 500 2,285

INEP Expenditure 10,000 10,000 10,000

Contribution to Capital 0 0 0

Total Expenditure 153,298 158,883 154,385

Surplus/(Deficit) 32,842 34,012 44,932

TABLE 1.17 OPERATING RATIO

TABLE 1.18 TOTAL CAPITAL EXPENDITURE

Total Capital Expenditure

Details 2016-2017 2017-2018 2018-2019

R R R

Original budget 28,629 40,516 32,842

Adjustment budget 40,729 43,016 34,012

Actual 38,704 37,021 29,642

Operating Ratios

Details Restated

2017 2018 2019

Employee Cost 51% 53% 54%

Repairs and Maintenance 7% 10% 8%

Finance charges and Impairment 0.1% 0.3% 1.58%

36

COMMENT ON OPERATING RATIOS

Explanation of variances from expected norms:

Employee cost expected to be 30% to total operating costs 40% for

rural municipalities

Employee costs are high because there is a need for critical positions to

ensure effective service delivery. Furthermore the municipality is grant

dependent thus operational expenditure is at its minimum. However

steps are in place to reduce the ratio to an acceptable level.

Repairs and maintenance 8%

Repairs and maintenance is within the required 8%. The municipality

ensures that there is adequate budget allocated for the maintenance of

its assets (Roads and buildings).

Finance charges and Impairment 10%: Finance charges are low

because there is only one loan that is being serviced. Furthermore there

are only 3 installments remaining and the loan will be repaid in February

2020.

1.9. ORGANISATIONAL DEVELOPMENT OVERVIEW

uMshwathi organizational arrangements for personnel management and

development is currently dispersed over five departments which are community

services; corporate service; finance; municipal managers office and technical

services. Corporate services department is responsible for the formulation and

maintenance of policies for recruitment and manages council employees.

Staff development unit has been established under human resources for the

identification of training needs amongst the council personnel and

administration of bursaries. This unit assists in ensuring municipal compliance

with skills development framework and achievement of organizational

development policy priorities.

37

Local Labour Forum Committee handles all organizational development and

other labour related matters. Two municipal recognized unions represent

employees at this committee. These labour unions are IMATU and the

majority SAMWU

During the reporting year, the committee monitored the functioning of

placement committee, which was specially established to deal with job

description challenges and job grading of certain positions. The committee has

finalized most of the work assigned including placements. Results of job grading

are submitted from region two, which was assigned in terms of the collective

agreements with the unions to our district.

1.10. AUDITOR GENERAL REPORT

For over five years the municipality received an unqualified audit opinion.

However in the current report two issues were cited by Auditor General which

led to a qualified audit opinion. These two issues are non-compliance with

GRAP17 relating to assets management and statement of cash flow. More

details can be found in chapter 6

TABLE 1.19 STATUTORY ANNUAL REPORT PROCESS

N0. Activity Timeframe

10. period Consideration of next financial year’s Budget and IDP process plan.

Except for the legislative content, the process plan should confirm in-year reporting formats to ensure that reporting and monitoring feeds seamlessly into the Annual Report process at the end of the Budget/IDP implementation

August

11. Implementation and monitoring of approved Budget and IDP commences (In-

year financial reporting). July

1

2. Finalise the 4th quarter Report for previous financial year

1

3. Audit/Performance committee considers draft Annual Report of municipality August

38

1

4. Mayor tables the draft unaudited Annual Report

15. Municipality submits draft Annual Report including annual financial statements

and performance report to Auditor General

16. Annual Performance Report as submitted to Auditor General to be provided as

input to the IDP Analysis Phase.

17.

Submit the draft year 2017-2018 Annual Report to Internal Audit and Auditor-General

Auditor General audits drafts Annual Report including Annual Financial Statements and Performance data

September – October

Municipalities receive and start to address the Auditor General’s comments November

Mayor tables Annual Report and Audited Financial Statements to Council complete with the Auditor- General’s Report

January

Audited Annual Report is made public and representation is invited

Oversight Committee assesses Annual Report

Council adopts Oversight report January to March

Oversight report is made public

Oversight report is submitted to relevant provincial councils

Commencement of draft Budget/ IDP finalization for next financial year. Annual

Report and Oversight Reports being used as input

January

The deadlines indicated above are part of the Municipality’s sound governance

and proper planning indicators. These timelines assist in the alignment of staff

activities with overall Municipality goals and objectives, legal prescripts and

other municipal operating guidelines. They also help to coordinate the process

that leads to the timely compilation of the IDP, Budget, and Performance

Management System, financial statements as well as the annual report.

39

CHAPTER 2 – GOOD GOVERNANCE AND PUBLIC PARTICIPATION

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

Good governance comprises 8 major characteristics: it is participatory,

consensus oriented, accountable, transparent, responsive, effective and

efficient, equitable and inclusive and follows the rule of law. At uMshwathi

Municipality, these characteristics have been pursued viciously to ensure that

all forms of corruption are eradicated, the views of minorities vindicated, and

that the voices of the most vulnerable in society are incorporated in decision-

making.

HIGHLIGHTS – GOOD GOVERNANCE AND PUBLIC PARTICIPATION

The Municipality with regards to good governance and public participation has

achieved the following highlights:

Table 2.1: Achievements

Highlight Description

Implementation of Council resolutions 95% of all Council resolutions implemented

Inclusivity Ward committee functional and ward base

plan in operation

Inter-governmental co-operation Operation Sukuma Sakhe remain

functional in all fourteen wards

Oversight Fully functional Independent oversight

committees (Audit, Risk and MPAC)

CHALLENGES – GOOD GOVERNANCE AND PUBLIC PARTICIPATION

In terms of good governance and public participation the municipality

experiences the following general challenges:

40

Table 2.2: Challenges

Description Actions to address

Council committee meetings Compilation of a time schedule for meetings

By-laws Lag in review of by-laws

Inter-governmental co-operation

Lack of attendance by Auditor General and

COGTA representatives in Audit Committee

meetings

Oversight

MPAC members need more training and

capacity building to enable the committee to

discharge its work effectively

WAY FORWARD

The general outlook going forward

Table 2.3: Way forward – municipality future plans

Description Actions to address

Council committee meetings Compilation of a time schedule for meetings

Inter-governmental co-operation Improve functioning of intergovernmental

structures

Inter-governmental co-operation Independent Review of irregular and wasteful

expenditure

Oversight

Training programs to boost MPAC members

effectiveness

Appointment of audit committee

Table 3: Good governance and public participation challenges

2.1. POLITICAL GOVERNANCE STRUCTURE

INTRODUCTION TO POLITICAL GOVERNANCE

Section 151(3) of the Constitution states that the Council of a municipality has

the right to govern, on its own initiative, the local government affairs of the local

41

community. Council as political governance performs both legislative and

executive functions. Council focuses on decision-making to formulate policy

and to play an oversight and participatory role.

The legislative function of the Council is vested within the full Council with the

Speaker as its Chairperson. Council also established Section 79 and 80

committees within specific functional areas of the municipality.

The Audit/Performance Audit committee is an independent advisory body that

advises the municipal Council, political office-bearers, Accounting Officer and

Management Staff of the municipality on financial control, risk management,

accounting policies, performance management and effective governance.

The Municipal Public Account Committee (MPAC) fulfils the duty of and

Oversight Committee, and comprises non-executive Councillors, with the

specific purpose of providing Council with comments and recommendations on

the Annual Report. The Oversight Committee’s report is published separately

in accordance with MFMA guidelines. The MPAC Committee also investigates

fruitless, wasteful and unauthorized expenditure and make recommendations

to Council.

Apart from their functions as policy makers, councillors are also actively

involved in community work and the various social programmes in the

municipal area.

2.1.1 COUNCIL

The Political segment of the municipality comprises of a Municipal Council,

Executive Committee and Section 79/80 Committees. The Chairperson of the

Council is the Speaker and the Mayor chairs the Executive Committee. The

responsibility for the management of Council and Councillors adherence to the

42

Code of Conduct of Councillors rests with the Speaker. The Mayor on the other

hand manages the Executive Committee and the day-to-day affairs of Council.

This ensures harmonious relationships within Council and a clear line of

segregation of duties.

The Councillors are the custodians of the community needs and have a

number of legislative obligations that are assigned to them in terms of the

various pieces of legislation Acts that govern the existence and functioning of

the municipality. The following legislative obligations are imposed on municipal

councils:

Approval of the Integrated Development Plan (IDP) and the annual

budget of the Municipality, imposing of rates, taxes and other service

charges.

Oversight tabling of the annual budget, approval of service delivery and

budget implementation plans or the signing of annual performance

agreements and employees contracts of S54/56 managers.

Adoption and annual review of the policies of the municipality.

Approval of raising of loans Passing of by-laws.

uMshwathi Municipality had a total of twenty-seven (27) seats, allocated to 27

Councillors. Fourteen (14) of these seats were allocated to ward Councillors

who were elected through the wards they represented and thirteen (13) of

these seats were allocated to political parties in proportion to the number of

votes casted for the respective parties at the previous local government

elections in 2016.

43

Table 2.4 Political Parties Representation in Council

Below is a table that indicates council meetings attendance for the 2018/19

financial years:

Table 2.5 Council Meetings

Meeting dates Number of

resolutions passed

Aggregate Average

Percentage Councilor’s

attendance %

Average Percentage

apologies for non-

attendance

29/08/18 20 75 25

26/10/18 43 75 25

12/12/18 23 75 25

24/01/19 12 75 25

19/02/19 1 75 25

27/02/19 29 75 25

27/03/19 33 75 25

30/05/19 40 75 25

0

5

10

15

20

25

ANC IFP DA EFF

Council Representation

ANC IFP DA EFF

44

Meeting dates Number of

resolutions passed

Aggregate Average

Percentage Councilor’s

attendance %

Average Percentage

apologies for non-

attendance

26/06/19 32 75 25

2.1.2. COUNCIL COMMITTEES

uMshwathi Municipal Council has established the following Section 79/80

portfolio committees to assist the Executive Committee in ensuring decisions

are taken and actioned effectively:

Table 2.5: Council Committee

Committees Councillors No of Meetings

held

Meetings

Attended

Financial Committee

Cllr G.M. Zondi (Chairperson) 4 4

Cllr M. P. Dlamini (Acting

Chairperson) 1 1

Cllr N.A. Thusi 7 4

Cllr. N. Gasa 7 4

Cllr M.Z. Mbewana 7 5

Cllr A.T.Ndlovu 7 6

Cllr M.V. Mncwabe 7 5

Mr. R Mani (CFO)


held

Meetings

Attended

Corporate Services

Committee

Cllr M.P. Dlamini – (Chairperson) 11 11

Cllr G. Ngcobo 11 7

Cllr N. Ngubane 11 11

45

Cllr S.J. Luthuli 11 9

Cllr. B.K Mkhize 11 6

Mrs. T.T. Mathenjwa (GM

Corporate Services)


held

Meetings

Attended

Infrastructure and

Planning Services

Committee

Cllr N.E. Cebekhulu (Chairperson) 7 7

Cllr M. Mngadi 7 5

Cllr S. Jila 7 7

Cllr N.R. Khanyile 7 7

Cllr. M. Dumakude 7 5

Mrs K Mncube

Community Services

Committee

Cllr S.M. Mbatha – Ntuli

(Chairperson) 9 9

Cllr C.S. Dube 9 3

Cllr L. P. Zondi 9 8

Cllr M.P. Majozi 9 5

Mrs N Mncube 9 0

Mr. B.T. Zondi (GM Community

Services) 9 9

Municipal Standing

Committee On Public

Accounts (MPAC)

Cllr. E.B. Mbongwe (Chairperson) 9 9

Cllr T. Dlame 9 6

Cllr N. Nzama 9 7

Cllr R. Govender 9 9

Cllr. P.M Dladla 9 9

46

2.1.3. POLITICAL DECISION-TAKING

Section 53 of the Municipal Systems Act (Act 32 of 2000) stipulates inter alia

that the respective roles and areas of responsibility of each political structure

and political office bearer of the municipality and of the municipal manager

must be defined. The section below is based on the Section 53 role

clarification that was approved at the Council.

MUNICIPAL COUNCIL

Governs by making and administrating laws, raising taxes and taking

decisions that affect people’s rights;

Is a tax authority that may raise property taxes and service levies;

Is the primary decision maker and takes all the decisions of the

Municipality except those that are delegated to political structures,

political once bearers, individual Councillors or officials;

Can delegate responsibilities and duties for the purposes of fast and

effective decision making;

Must strive towards the constitutional objects of local government;

Must consult the community with respect to local government matters;

and

Is the only decision maker on non-delegated matters such as the

approval of the IDP and budget.

HONOURABLE MAYOR

Is the executive and political leader of the municipality and is in this

capacity supported by the Executive committee;

Is the social and ceremonial head of the municipality;

must identify the needs of the Municipality and must evaluate progress

against key performance indicators;

Is the defender of the public’s right to be heard;

Mr. N.M Mabaso 9 5

47

Has many responsibilities with respect to the annual budget, the budget

process, budget control and various other financial matters; and

Performs the duties and exercise the responsibilities that were

delegated to him by the Council.

EXECUTIVE COMMITTEE

In terms of section 43 (2) of the Municipal Structures Act No. 117 of

1998, an executive committee must be composed in such a way that

parties and interests represented in the municipal council are

represented in the executive committee substantially the same

proportion as they are represented in the Council;

In terms of section 44 of the Local Government: Municipal Structures

Act No. 117 of 1998, the Executive Committee established, is the

principal committee of the Municipal Council which guides the Council in

performing its role of political oversight of the municipality’s functions,

programmes and the management of the administration;

The executive committee received reports from other committees of the

Council and forwarded these reports together with its recommendations

to the Council for Resolutions; and

The Executive Committee comprised of four ANC Councillors and one

IFP Councillor.

The table below shows the Executive Committee Councillors within their

specific political parties and wards.

TABLE 2.6 EXCUTIVE COMMITTEE COUNCILLORS

Ward Councillor Party Responsibility Male/Female

PR Councillor Cllr G.M. Zondi ANC Mayor Male

Ward 1 Cllr M.P. Dlamini ANC Deputy Mayor Male

Ward 4 Cllr N.E. Cebekhulu ANC Ward Councillor Male

Ward 7 Cllr Mbatha – Ntuli ANC Ward Councillor Female

PR Councillor Cllr M.P. Majozi IFP PR Councillor Male

48

The table below provides an analysis of the Council Resolutions taken and

implemented during the year:

Table 2.7 Council Resolutions

Number of Council Resolutions

taken during the year

Number of Council Resolutions

implemented during the year

Number of Council

Resolutions not implemented

during the year

0 0 0

Total of resolutions

implemented 0%

The following Councillor were elected by the Municipality to represent

uMshwathi at the uMgungundlovu District Municipality (UMDM).

Table 2.9 District representatives Councilors

Representative Local Municipality District Municipality

Cllr S.J. Luthuli uMshwathi uMgungundlovu

Cllr G. Ngcobo uMshwathi uMgungundlovu

Cllr B.K. Mkhize uMshwathi uMgungundlovu

49

REPORTING STRUCTURE (POLITICAL)

The Terms of Reference for Council

UMSHWATHI MUNICIPAL

COUNCIL

EXECUTIVE

COMMITTEE

Community Services

Portfolio Committee

Audit Committee

MPAC

Infrastructure & Planning

Services Portfolio

Committee

Financial Services

Portfolio

Committee

Corporate Services

Portfolio Committee

50

2.2 ADMINISTRATIVE GOVERNANCE STRUCTURE

The Municipal Manager is the head of uMshwathi Municipality administration,

as well as its Accounting Officer. He has extensive statutory and delegated

powers and responsibilities.

The Municipal Manager is, amongst others, responsible:

For the formation and development of an economical, effective, efficient

and accountable administration;

To ensure that the municipal “machine” operates efficiently, that the

organizational structure is able to perform the various tasks and

exercise the necessary controls;

The Municipal Manager works closely with the corporate services

manager to fulfill a leadership role in the administration; this is of utmost

importance to influence the actions of staff and to inspire and persuade

them to work together to realize the municipality’s goals; He is also ably

assisted by the Technical Services manager on the implementation of

the municipality’s integrated development plan, and the monitoring of

progress on MIG infrastructure projects; and

For the financial responsibilities the Chief Financial Officer aids him

through the control of budget and expenditure as determined by the

MFMA.

The Municipal Manager is the chief adviser of the municipality and must

advise the political structures and political office-bearers of the

municipality. The Municipal Manager must see to the execution of the

decisions of the political structures and political office-bearers of the

municipality.

51

His executive management team, whose structure is outlined in the table

below, assists him:

Table 2.10: Administrative governance structure

Name of Official Department

Performance agreement signed

(Yes/No)

Mr. N. M Mabaso Municipal Manager Yes

Mr. R Mani GM Finance Yes

Mr. B.T. Zondi GM Community Services Yes

Mrs. T.T. Mathenjwa GM Corporate Services Yes

Mrs. N. Mncube GM Technical Services Yes

COMPONENT B: INTER-GOVERNMENTAL RELATIONS

It is the intention of uMshwathi Municipal Administration and Council to ensure

that its communities derive maximum benefits from its participation in inter-

governmental forums and meetings.

2.3 INTER-GOVERNMENTAL RELATIONS (IGR)

In terms of the Constitution of South Africa, all spheres of government and all

organs of state within each sphere must co-operate with one another in mutual

trust and good faith fostering friendly relations. They must assist and support

one another, inform and consult one another on matters of common interest,

coordinate their actions, adhering to agreed procedures and avoid legal

proceedings against one another. This notion is largely captured through the

co-operative way that inter government agencies work together in the war

rooms at ward level. UMshwathi municipality plays a pivotal role of co-

ordination and referrals to assist its communities with day to day necessities

52

like grants and pension pay-out information, identity documents applications

and proof of address.

Table 2.11 Inter-governmental structures

Name of Structure Members

Focus Area

Outcomes of

Engagements/To

pics Discussed

Operation Sukuma

Sakhe

Dept. of Health;

Dept. of Home

Affairs; Dept. of

transport and other

sector departments

Most vulnerable groups

Support Broad

government

based initiatives

EPWP

SALGA; LED/IDP

officials, Dept. of

Works

Youth Unemployment

Provincial and

district based

initiatives

2.3.2. JOINT FUNCTION AND PROJECTS WITH SECTOR DEPARTMENTS

All the functions of government are divided between the different spheres

namely National, Provincial and Local. The municipality therefore share their

area and community with other spheres of government and their various sector

departments and has to work closely with national and provincial departments

to ensure the effective implementation of various projects and functions.

The table below provides detail of such projects and functions:

Table 2.12: Joint projects and functions with sector departments

Name of Project/

Function

Expected Outcome/s

of the Project

Sector Department/s

involved

Contribution of Sector

Department

War on Poverty

Reduce poverty in

identified poorest

wards in municipal

Local Department of

Rural Development

Established steering

committee with

municipality and other

53

Name of Project/

Function

Expected Outcome/s

of the Project

Sector Department/s

involved

Contribution of Sector

Department

area local departments

Police Forum Community Safety SAPS Different local department

meetings

Aids Council Addressing Aids

Social Services and

different local

departments

Meetings and

programmes

COMPONENT C: PUBLIC ACCOUNTABILITY

MSA S15 (b): requires a municipality to establish and organise its

Administration to facilitate a culture of accountability amongst its staff. S16 (i):

states that a municipality must develop a system of municipal governance that

compliments formal representative governance with a system of participatory

governance. S18 (i) (d): requires a municipality to supply its community with

information concerning municipal governance, management and development.

Such participation is required in terms of:

The preparation, implementation and review of the IDP;

Implementation and review of the performance management system;

Monitoring and review of the performance, including the outcomes and

impact of such performance; and preparation of the municipal budget.

2.4. PUBLIC MEETINGS

Accountability and community participation were enhanced by engagements

through the following media:

School announcements for students to tell parents to attend Council

meetings;

54

Community radio: advertising during popular shows in both English and

isiZulu languages;

Local Newspaper, and own municipal newsletter;

Pamphlets at houses;

Posters on strategic places in towns.

The table below shows the different public meetings for the 2018/19 financial

year.

Table 2.13 Public Meetings

The purpose of a ward committee is:

To solicit participation from the community to inform council decisions;

To make Councillors accountable to the people that elected them

To ensure effective communication between the council and the

community; and

To assist the ward councillor with consultation and report-backs to the

community.

2.4.1. WARD COMMITTEES

Ward committees should be elected by the community they serve. A ward

committee may not have more than 10 members and women should be well

represented. The ward councillor serves on the ward committee and act as the

Nature and

purpose of

meeting

Number

of

meetings

Number of

participating

municipal

councillors

Number of

participating

municipal

administrators

Est

Number of

community

members

attending

IDP Imbizo 15 1 10 200

Budget Imbizo 15 1 10 300

55

chairperson. Although ward committees have no formal powers, they advise

the ward councillor who makes specific submissions directly to the council.

These committees play a very important role in the development and annual

revision of the integrated development plan of the area.

The ward committees support the ward councillor who receives reports on

development, participates in development planning processes, and facilitates

wider community participation. To this end, the municipality constantly strives

to ensure that all ward committees function optimally with community

information provision, convening of meetings, ward planning, service delivery,

IDP formulation and performance feedback to communities.

The table below provides information of the ward committee meetings held

during the 2018/19 financial year:

Table 2.14 Ward committee meetings

Ward Town No. of

meetings

Dates of

meetings

No. of

Councillors

Attended

No. of

Municipal

Administrator

s Attended

No. of

Community

Members

Attended

1 4 1 0 10

2 2 1 0 10

3 2 1 0 10

4 2 9 June 2019 1 0 10

5 2 1 0 10

6

2.4.2 FUNCTIONALITY OF WARD COMMITTEES

The table below provides information on the composition and functionality of

ward committees as follows:

Ward committee meetings held during the year include scheduled

meetings between ward councillor and committee members, including

56

IDP/Ward Committee engagements as part of the IDP process for the

2018/19 planning year.

Number of reports does not include IDP/Ward committee engagements

for which specific reports.

Functionality of ward committees is determined by the active

engagements of ward committees with communities on public platforms

and direct interactive sessions to improve or create better communities

are reflected in the IDP minutes.

Table 2:15 Functioning of ward committees

Ward number Committee established:

Yes / No

Number of reports submitted to the speaker’s/

IDP office

1 Yes 104

2 Yes 104

3 Yes 104

4 Yes 104

5 Yes 104

6 Yes 104

7 Yes 104

8 Yes 104

9 Yes 104

10 Yes 104

11 Yes 104

12 Yes 104

13 Yes 104

14 Yes 104

2.4.3 IDP PARTICIPATION AND ALIGNMENT CRITERIA

The MSA requires that local government structures prepare IDP’s. The IDP

serves as a tool for the facilitation and management of development within the

municipal area. The function for the preparation of the IDP is under the Office

of the Municipal Manager and the authority for the preparation of the IDP is

delegated to an official.

57

Table 2:16 IDP participation and alignment criteria

IDP Participation and Alignment Criteria Yes/No

Does the municipality have impact, outcome, input, output indicators? Yes

Does the IDP have priorities, objectives, KPIs, development strategies? Yes

Does the IDP have multi-year targets? Yes

Are the above aligned and can they calculate into a score? Yes

Does the budget align directly to the KPIs in the strategic plan? Yes

Do the IDP KPIs align to the Section 57 Managers? Yes

Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes

Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes? Yes

Were the indicators communicated to the public? Yes

Were the four quarter aligned reports submitted within stipulated time frames? Yes

COMPONENT D: CORPORATIVE 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 relationships among many

stakeholders involved and the goals by which the institution is governed as

institutional arrangements for corporate governance within the Municipality, are

provided hereunder:

Adhered to legislative compliance requirements;

Code of Conduct for Councillors and Officials distributed to all;

Committees of Council are fully functional;

Conducted Human Resource Audit and qualification verification to

ensure that council achieves;

Outcome 9 deliverable;

Conducted internal financial procedures training;

58

Engage in capacity building programmes for officials to meet minimum

competency requirements;

Established Local Labour Forum to ensure harmonious working

relationships amongst organised labour;

IGR Framework is implemented, and the coordination is functional and

effective;

Institutionalised internal Financial Controls; and

Oversight Committees, which are Audit and MPAC, are all functional.

2.5 RISK MANAGEMENT

Risk management is a systematic and formalised process instituted by the

municipality to identify, assess, manage, monitor and report risks to ensure the

achievement of objectives.

In terms of Section 62(1)(c)(i) and Section 95(c)(i) of the Municipal

Finance Management Act (MFMA), No. 56 of 2003, it requires the

accounting officer to ensure that the municipality and municipal entities,

if any, have and maintain effective, efficient and transparent systems of

risk management.

The main reason for risk management is that the service delivery

environment and the public sector’s interface with stakeholders have

become far more demanding and volatile than before.

The objective of the Risk Management Policy is to assist management and

Council to make informed decisions which will:

Improve the municipality’s performance on decision making and

planning;

Provide a sound basis for integrated risk management and internal

control as components of good corporate governance;

Assist management in ensuring more effective reporting and

compliance with applicable laws, regulations and other corporate

governance requirements.

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Enhance a culture of good governance, ethical conduct; discourage

inefficiencies and counter fraud and corruption. This includes:

Sustainable and reliable services delivery

Informed decisions supported by proper due intelligence;

Innovation

Reduced waste

Prevent fraud and corruption

Value for money through efficient use of resources

Sound and programme management leading to designed outputs

and outcomes

2.5.2 TOP FIVE RISKS

High level debtors that may have to be written off as bad debt or settled

at a costly discount

Occurrence of irregular and fruitless expenditure

Disasters that can be triggered by climate changes and expose local

response capacity

ITC infrastructure

SCM compliance and political interferences

2.5.2.1 ACTION TO ADDRESS THETOP FIVE RISKS

The table below provides the actions implemented/that will be implemented to

address the top five risks:

Table 2.17 Action Plan to address the top five risks

Risk Actions implemented or that will be

implemented

Outstanding debtors Credit Control Policy implementation and installation of prepaid meters

Liquidity Credit Control Policy implementation and cost containment

Scarce water resources

Occurrence of irregular and fruitless expenditure Update supplier database and training of officials and councillors

60

2.5.3 APPROVED RISK POLICIES AND STRATEGIES

Table 2.18 Approved risk policies and strategies

Name of strategy / policy Developed

Yes/No Date adopted/reviewed

Risk Management Policy

Yes Not yet reviewed

2.5.3 APPROVED RISK POLICIES AND STRATEGIES

Table 2.18 Approved risk policies and strategies

Name of strategy / policy Developed


Risk Management Policy

Yes Not yet reviewed

2.6 ANTI-CORRUPTION AND ANTI-FRAUD

Section 83(c) of the MSA refers to the implementation of effective bidding

structures to minimize the possibility of fraud and corruption and the Municipal

Finance Management Act (MFMA), section 112(1) (m)(i) identifies supply chain

measures to be enforced to combat fraud and corruption, favoritism 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 system to minimize the likelihood of corruption and

fraud.

2.6.1 DEVELOPED STRATEGIES

Table 2.19 Strategies

Name of strategy / Policy Developed


Combating the Abuse of Supply Chain

Management Regulations Yes July 2019

61

Name of strategy / Policy Developed


Audit Charter Yes 5 December 2019

2.7 AUDIT COMMITTEE/S

Section 166(2) of the MFMA states that an audit committee is an independent

advisory body, which must:

Advise the Municipal Council, the political office-bearers, the accounting

officer and the management staff of the municipality, on matters relating

to:

Internal financial control;

Risk management;

Performance management; and

Effective governance

2.7.1 FUNCTIONS OF THE AUDIT COMMITTEE

The audit committee has the following main functions as prescribed in

section 166 (2) (a-e) of the Municipal Finance Management Act, 2003

and the Local Government Municipal and Performance Management

Regulation:

To advise the council on all matters related to compliance and effective

governance;

Respond to the council on any issues raised by the auditor-general in

the audit report;

To review the quarterly reports submitted to it by the internal audit;

To evaluate audit reports pertaining to financial, administrative and

technical systems;

To review the performance management system and make

recommendations in this regard to council;

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To identify major risks to which council is exposed and determine the

extent to which risks have been minimized;

Review the plans of the internal audit function and in so doing, ensure

that the plan addresses the high-risk areas and ensure that adequate

resources are available;

To review the annual financial statements to provide council with an

authoritative and credible view of the financial position of the

municipality, its efficiency and its overall level of compliance with the

MFMA, the annual Division of Revenue Act (DoRA) and other applicable

legislation.

2.7.2 MEMBERS OF THE AUDIT COMMITTEE

Table 2.20 Members of the Audit Committee

Name of representative

Capacity Meeting Attended

Professor B. Stobie Chairperson 4/5

Ms. P Sithole Member 5/5

Ms. K Narshai Member 4/5

Mr. Lunga Senior Manager Office of the MM 4/5

2.8 PERFORMANCE AUDIT COMMITTEE

The Regulations require that the performance audit committee is comprised of

a minimum of three members, the majority of whom are external (neither a

councilor nor an employee) of the municipality. Section 14(2) (b) of the

Regulations further stipulates that the performance audit committee must

include at least one person who has expertise in performance management. It

is also a requirement of the Regulations in Section 14(2)(d) that the Council of

a municipality designate neither a member of the performance audit committee

who is neither a councilor nor an employee of the municipality as the

chairperson of the committee.

63

In terms of Section 166(4) (a) of the MFMA, an audit committee must consist of

at least three persons with appropriate experience. The majority may not be in

the employ of the municipality.

Section 166(5) of the MFMA, requires that the members of an audit committee

must be appointed by the council of the municipality. One of the members, not

in the employ of the municipality, must be appointed as the chairperson of the

committee. No councilor may be a member of an audit committee.

Both the Regulations and the MFMA, indicate that three is the minimum

number of members needed to comprise a performance audit committee.

While the regulations preclude the appointment of a councilor as chairperson

of the performance audit committee, the MFMA excludes the involvement of a

councillor in the composition of an audit committee entirely.

Section 14(3) (a) of the Regulations requires that the performance audit

committee of a municipality must meet at least twice during each financial

year. However, any member of the committee may call for additional special

meetings of the performance audit committee, where sufficient justification

exists in terms of Section 14(3) (b) of the Regulations.

In terms of Section 14(4) (a) of the Regulations the performance audit

committee has the responsibility to:

i. Review the quarterly reports produced and submitted by the internal

audit process;

ii. Review the municipality’s performance management system and make

recommendations in this regard to the council of the municipality; and

iii. At least twice during each financial year submit a performance audit

report to the council of the municipality.

FUNCTIONS OF THE PERFORMANCE AUDIT COMMITTEE

2.8.2 MEMBERS OF THE PERFORMANCE AUDIT COMMITTEE

The Audit Committee fulfils the functions of the Performance Audit Committee.

64

2.9 INTERNAL AUDITING

2.9.1 RISK REGISTER AND THREE-YEAR STRATEGIC PLAN

Section 165 (2) (a), (b) and (c) of the MFMA requires that the internal audit unit

of a municipality must:

a) Prepare a risk based audit plan and an internal audit program for each

financial year; and

b) Advise the accounting officer and report to the audit committee on the

implementation of the internal audit plan and matters relating to:

Internal audit;

Internal controls;

Accounting procedures and practices;

Risk and risk management;

Performance management;

Loss control; and

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.

A risk assessment was performed during 2019 and all relevant risks were

populated into a new risk register for. This risk assessment formed the basis of

the 3-year Strategic Audit Plan.

2.9.2 ANNUAL AUDIT PLAN

The risk based audit plan for 2018/19 was executed based on the above

approach and methodology.

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2.10 SUPPLY CHAIN MANAGEMENT

Section 110-119 of the Supply Chain Management Regulations 2005 and

relevant MFMA circulars, stipulate the required processes and guidance to

help ensure that SCM arrangements provide appropriate goods and services,

offer best value for money and minimize opportunities for fraud and corruption.

uMshwathi municipality SCM Policy was approved by Council on 30 July 201.

Reports on the implementation of the SCM Policy are submitted monthly to the

Accounting Officer. These reports are also tabled in special council meetings.

The procurement processes consists of the following components:

Contract Management – is usually completed by the respective

department, depending on the type of service that is requested.

Advertising – Formal quotations (R30 001 to R 199 999), are

advertised on the notice boards and website of the municipality for

seven (7) days, and formal tenders are advertised for three (3) weeks

on the website and in the local newspapers as contemplated in the SCM

Regulations.

Specification – never uses the Specification Committee, due to the

shortage of sufficient personnel to fulfill this function.

Evaluation – The evaluation of formal quotations and tenders are done

on the respective principles of 80/20 and 90/10 (as prescribed in the

SCM Regulations), depending on the type of services that was

requested. The report of such evaluation, is forwarded to the

Adjudication Committee.

Adjudication – This committee usually accept the proposal of above

standing committee or refer the proposal and report back to the

Evaluation Committee, if additional information is needed regarding the

proposed contractor.

66

2.11 BY-LAWS AND POLICIES

Section 11 of the MSA gives municipal councils the executive and legislative

authority to pass and implement by-laws and policies.

Below is a list of all the policies developed and reviewed during the financial

year:

Table 2.21 Policies

Policies developed/revised Date adopted

Public participation

conducted prior to adoption

of policy(Yes/No)

Resolution Number

Tariff Policy 31 May 2019 No SR8/05-19

Cash and Investment Management

Policy 31 May 2019 No SR8/05-19

Credit Control Policy 31 May 2019 No SR8/05-19

Tax Policy 31 May 2019 No SR8/05-19

Below is a list of all the by-laws developed and reviewed during the financial year Table 2.22 By-laws

By-laws developed/revised

Date adopted Public participation

conducted prior to adoption of policy (Yes/No)

Date of publication

No by-laws developed or revised during 2018/19

N/A N/A N/A

2.12 WEBSITE

Municipalities are required to develop and maintain a functional website that

displays relevant information as per the requirements of S75 of the MFMA and

S21A and B of the Municipal Systems Act (“MSA”) as amended.

The website should serve as a mechanism to promote accountability and

transparency to communities and therefore information posted should be

accurate and timeously updated. The municipal website is a key

67

communication mechanism in terms of service offering, information sharing

and public participation. It is a communication tool that should allow easy and

convenient access to relevant information. The municipal website should serve

as an integral part of the municipality’s communication strategy.

The table below gives an indication about document that are published on our

website.

Table 2.23 Website checklist

Description of information and/or document Yes/No and/or Date

Published

Municipal contact details (Section 14 of the Promotion of Access to Information Act)

Full Council details Yes

Contact details of the Municipal Manager Yes

Contact details of the CFO Yes

Physical address of the Municipality Yes

Postal address of the Municipality Yes

Financial Information (Sections 53, 75, 79 and 81(1) of the Municipal Finance Management Act)

Draft Budget 2018/19 Yes

Adjusted Budget 2018/19 Yes

Asset Management Policy Yes

Customer Care, Credit control & Debt collection Policy Yes

Indigent Policy Yes

Funds and Reserves Policy Yes

Investment & Cash Management Policy Yes

Rates Policy Yes

Supply Chain Management Policy Yes

Tariff Policy Yes

Petty Cash Policy Yes

Travel and Subsistence Policy Yes

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Description of information and/or document Yes/No and/or Date

Published

SDBIP 2018/19

Yes

Integrated Development Plan and Public Participation (Section 25(4)(b) of the Municipal Systems Act

and Section 21(1)(b) of the Municipal Finance Management Act)

Reviewed IDP for 2018/19 Yes

IDP Process Plan for 2018/19 Yes

Supply Chain Management (Sections 14(2), 33, 37 &75(1)(e)&(f) and

120(6)(b)of the Municipal Finance Management Act and Section 18(a) of

the National SCM Regulation)

SCM contracts above R30 000 Yes

Service delivery agreements Yes

Public invitations for formal price quotations Yes

Reports (Sections 52(d), 71, 72 &75(1)(c) and 129(3) of the Municipal

Finance Management Act)

Annual Report of 2018/19 Yes

Oversight reports Yes

Quarterly Reports

Yes

Local Economic Development (Section 26(c) of the Municipal Systems

Act)

Local Economic Development Strategy Yes

LED Policy Framework Yes

Economic Profile Yes

LED Projects Yes

Performance Management (Section 75(1)(d) of the Municipal Finance

Management Act)

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2.13 COMMUNICATIONS

2.13.1 COMMUNICATION ACTIVITIES

Table 2.24 Communication activities

Communication activities Yes/No Date

Approved/Completed

Communication strategy No N/A

Communication Policy No N/A

Functional complaint management systems Yes Continuous monthly

Customer satisfaction surveys Yes June 2019

2.13.2 COMMUNICATION UNIT

Table 2:25 Communications

Communication Unit

Yes/No Number of people in

the Unit Job titles

Yes 1 1

2.14 PUBLIC SATISFACTION WITH MUNICIPAL SERVICES

During the year, the municipality commissioned an independent company to

conduct a community satisfaction survey and the findings appear on the table

below. The survey covered all fourteen wards using local youth and focused

mainly on the level of community satisfaction with the municipality service

delivery. A survey consisted of 5 320 households, 4 300 households

responded and that is equivalent to 81% response rate. Aggregated results

appear below.

Table 2:26 Satisfaction surveys

Satisfaction Surveys Undertaken during: Year -1 and Year 0

70

Subject matter of survey Survey

method

Survey date No. of

people

included in

survey

Survey results

indicating

satisfaction or better

(%)*

Overall satisfaction with: 00 Missing

(a) Municipality 00 Missing

(b) Municipal Service Delivery 00 Missing

(c) Mayor 00 Missing

Satisfaction with: 00 Missing

(a) Refuse Collection 00 Missing

(b) Road Maintenance 00 Missing

(c) Electricity Supply 00 Missing

(d) Water Supply 00 Missing

(e) Information supplied by municipality to

the public

0 Missing

(f) Opportunities for consultation on

municipal affairs

00 Missing

CHAPTER 3: SERVICE DELIVERY PERFOMANCE PERFORMANCE

REPORT

PART ONE

COMPONENT A: SERVICE DELIVERY PERFOMANCE

71

3.1 PERFORMANCE MANAGEMENT

Chapter 6 of the Municipal Systems Act, Act 32 of 2000 and the Municipal

Planning and Performance Management Regulations, 796 of August 2001,

prescribes uMshwathi municipality’s performance management system.

Section 7(1) of the above-mentioned regulation states that “A municipality’s

performance management system entails a framework that describes and

represents how the municipality’s cycle and processes of performance

planning, monitoring, measurement, review, reporting and improvement will be

conducted, organised and managed, including determining the responsibilities

of the different role players.” This framework, inter alia, reflects the linkage

between the IDP, budget, SDBIP and individual and service provider

performance. The financial year under review witnessed an improvement in the

rate of the service delivery. Provision of basic services is essential for

sustained community livelihood, public health, development and safety. These

services include water, electricity, sewerage, sanitation, and solid waste

management. In our context, most of these services are the responsibility of

the District Municipality and other State Owed Companies such as Eskom for

the distribution of electricity.

3.1.1 ORGANISATIONAL PERFORMANCE ACHIEVE

The organisational performance management system monitored and evaluated

using the SDBIP and the performance process can be summarised as follows:

Completion of grounds work for uMshwathi Ridge project

The top layer SDBIP was approved by the Mayor on 28 August 2018

The municipality utilizes a manual based performance management

system updated on a quarterly basis.

The first quarterly report submitted to Council on 12 December 2018

and the second quarterly report formed part of the section 72 report in

terms of the Municipal Finance Management Act, submitted to Council

on 24 January 2019.

Internal Audit audits the performance measurements of the municipality

on a continuous basis as prescribed by the relevant legislation, which

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includes submission of reports on a quarterly basis to the Municipal

Manager and Performance Audit Committee.

Monitoring of the SDBIP was done through quarterly reporting to the

Department of Corporate Services and audited by the internal auditors

on a quarterly basis

The performance agreements for the 2018/19 financial year for the

managers of Community Services, Finance, Technical Services and

Corporate Services were signed as prescribed.

3.1.2 PERFORMANCE CHALLENGES

High cost of construction materials in rural areas

Huge infrastructure backlog

High repairs and maintenance cost and aging infrastructure

5 568 households which have no access to piped water

3.1.3 THE WAY FORWARD

3.2 THE IDP AND THE BUDGET

The graph above presents a summary of project priority list as it appears in

2018/2019 IDP document. The graph shows that there is a high demand for

the construction and upgrading of existing roads. Demand for the construction

of crèches and children centres follows in second place.

3.3 STRATEGIC SERVICE DELIVERY BUDGET IMPLEMENTATION

PLAN

The purpose of strategic performance reporting is to report specifically on the

implementation and achievement of IDP outcomes. The SDBIP is the

municipality’s strategic plan and shows the strategic alignment between the

different documents (IDP, budget and performance agreements).

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3.4 SERVICE PROVIDERS STRATEGIC PERFORMANCE

Section 76(b) of the MSA states that KPIs should inform the indicators set for

every municipal entity and service provider with whom the municipality has

entered into a service delivery agreement. A service provider:

means a person or institution or any combination of persons and

institutions which provide to or for the benefit of the local community

External service provider means an external mechanism referred to in

section 76(b) which provides a municipal service for a municipality

Service delivery agreement means an agreement between a

municipality and an institution or person mentioned in section 76(b) in

terms of which a municipal service is provided by that institution or

person, either for its own account or on behalf of the municipality

During the year under review the municipality did appoint service providers

who provided municipal services to or for the benefit of the local community on

behalf of the municipality. The achievement of service providers in terms of

contract completion is at 89%. All contract appointments are regularly

monitored to ensure timeous completion and required service level targets.

3.5 MUNICIPAL FUNCTIONS

3.5.1 ANALYSIS OF FUNCTIONS

The powers and functions performed by local authorities in South Africa are

defined primarily in Section 156 and 229 of the Constitution (Act 108 of 1996).

The Local Government Municipal Structures Act (117 of 1998), read together

with the Local Government Municipal Structures Amendment Act (33 of 2000),

divides the powers and functions, as set out in the Constitution between district

and local municipalities (Section 84). The Act together with the Amendment

Act, Section 85(1), allows the MEC for COGTA to further adjust the division of

certain of these functions between district and local municipalities, whilst

Section 84(3) (a) allows only the Minister for Provincial and Local Government

to authorize a category B municipality to perform the following functions.

74

The municipal functional areas are as indicated below:

Table 3.2 Municipal Functional area’s

Municipal Function

Municipal Function

Yes / No

Constitution Schedule 4, Part B functions:

Air pollution No

Building regulations Yes

Child care facilities Yes

Electricity installations Yes

Firefighting services No

Local tourism Yes

Municipal airports No

Municipal planning Yes

Municipal health services Yes

Municipal public transport No

Municipal public works only in respect of the needs of municipalities in

the discharge of their responsibilities to administer functions

specifically assigned to them under this Constitution or any other law

No

Pontoons, ferries, jetties, piers and harbours, excluding the regulation

of international and national shipping and matters related thereto No

Storm water management systems in built-up areas Yes

Trading regulations Yes

Sanitation services domestic waste collection and disposal systems Yes

Constitution Schedule 5, Part B functions:

Beaches and amusement facilities No

Billboards and the display of advertisements in public places No

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Cemeteries, funeral parlours and crematoria Yes

Cleansing Yes

Control of public nuisances No

Control of undertakings that sell liquor to the public No

Facilities for the accommodation, care and burial of animals No

Fencing and fences Yes

Licensing of dogs Yes

Licensing and control of undertakings that sell food to the public Yes

Local amenities No

Local sport facilities Yes

Markets No

Municipal abattoirs No

Municipal parks and recreation Yes

Municipal roads Yes

Noise pollution No

Pounds No

Public places Yes

Refuse removal, refuse dumps and solid waste disposal Yes

Street trading Yes

Street lighting Yes

Traffic and parking Yes

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3.6 OVERVIEW OF PERFORMANCE PER WARD

3.6.1 LARGEST CAPITAL PROJECTS

Table 3.3 Capital projects of all Wards

Capital Projects

No. Project Name and detail Start Date End Date

Total Value

R

1

2

3

4

5

The above analysis includes only the 5 largest capital projects of the ward

Table 3.4 Basic service provision for all Wards

Basic Service Provision

Detail Water Sanitation Electricity Refuse Housing

Formal households 0 2 496 2 496 2 496

Informal

households 187 187 187 187

Total Households* 2 683 2 683 2 683 2 683

Houses completed in year 0

Shortfall in Housing units 1 179

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COMPONENT B: BASIC SERVICES

Performance targets for basic services were set, taking into account the

financial position of the municipality and the availability of resources. The focus

was on delivering the basic services to the community to the best of its ability

with limited resources and finance.

The municipality delivers the following basic services to its residents:

Sanitation provision

Waste management

Housing

Free basic services and indigent support

Table 3.5 Household Services

Flush toilet

connected to

sewerage and septic

tanks %

Weekly refuse

removal %

Piped water inside

dwelling %

Electricity for

lighting %

2001 2011 2001 2011 2001 2011 2001 2011

41.9 53.7 60.2 72.5 41.6 59.8 72 76.9

3.7 WATER PROVISION

UMgungundlovu District Municipality (UMDM) is the water service authority

(WSA) and water service provider (WSP) to six of its seven local municipalities

that include uMshwathi municipality.

uMshwathi Municipality plays a consultative and an oversight role. Almost half

of the district population get water from uMngeni Water and the rest gets water

through the District water tankers and from natural sources. In numbers, 6 344

households of the 23 732 have access to water inside their dwellings and a

further 11 453 have access to water inside their yards. The information from

census 2011 also indicates that there are 4 759 standpipes which provide

78

communities with access to water. The concern for the Municipality, however,

is the 5 568 households which have no access to piped water. The Blue drop

risk rating is at 15.12%. The Blue drop score is at 84% which shows an

increase.

The water sources in the municipal area are as follows:

Table 3.6 Sources of Water (Census 2011)

Sources of Water

Regional/Local water scheme (operated by

municipality or other water services provider) 72%

Borehole 23%

Spring 1%

Rain water tank 0.7%

Dam/Pool/Stagnant water 1.9%

River/Stream 0%

Water vendor 0.2%

Water tanker 0.9%

Other 0.5%

3.7.1 KEY PERFORMANCE INDICATORS: WATER SERVICES

Water service is provided by uMgungundlovu District Municipality

3.7.2 WATER SERVICE DELIVERY LEVELS

Water is probably the most fundamental and indispensable of natural

resources. Fundamental to life, the environment, food production, hygiene and

power generation. Poverty reduction and improved water management are

inextricably linked. Section 4B of the Constitution lists water and sanitation

services limited to potable water supply systems and domestic waste water

79

and sewerage disposal systems as a local government function. Basic water is

defined as 25 litres of potable water per day supplied within 200 meters of a

household.

According to Census 2011, the number of households with access to piped

water inside the dwelling was estimated at 6 064 (Statistics SA, 2011), whilst

64 households had no access to piped (tap water) in 2011.

Table 3.7 Distribution of households by access to piped water and municipality (Community Survey 2016)

Access

2001

Number of

households

2011

Number of

households

2016 CS

Number of

households

%

Piped (tap) water inside

dwelling/house

3 205 11.02

Piped (tap) water inside yard 500 212 10 368 35.6

Piped water on community

stand

3 357 11.54

Rain-water tank in yard 778 2.67

Borehole in the yard -

Borehole outside the yard

650 2.1

Neighbours tap 1 464 4.9

Public/communal tap 658 2.26

Water-carrier/tanker 2 209 7.59

Flowing water/stream/river 5 404 18.58

Other source 989 3.4

80

3.7.3 HOUSEHOLDS - WATER SERVICE DELIVERY LEVELS BELOW THE

MINIMUM

The table below indicates the water service delivery levels for 2018/19

Table 3.8 Water service delivery levels for 2018/19

Description

2014/15 2018/19

Actual Original

Budget

Adjusted

Budget Actual

Number of households

Total households

Households below minimum

service level 0

Proportion of households

receiving 6kl free water

Below is a table that specifies the number of formal and informal households

with water service delivery levels below the minimum standards for the financial

years 2017/18 and 2018/19:

Table 3.9 Water service delivery levels below the minimum: Households

Description

2017/18 2018/19

Actual Actual

Formal settlements

Total households 0 0


service level 0 0

Proportion of households below

minimum service level 0 0

Informal settlements

Total households 0


service level 0

81

Description

2017/18 2018/19

Actual Actual

Proportion of households below

minimum service level 0

*In terms of the Back to Basics requirements the municipality is required to calculate the

number of erven to which a service is provided regardless of the number of households per

erf

3.7.4 EMPLOYEES: WATER SERVICES

Table 3.9 Employees: Water Services (this service is provided for by uMgungundlovu District Municipality)

Job levels

2018/19

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 0 0 0 0 0

13 - 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 0 0 0 0 0

3.7.5 CAPITAL EXPENDITURE – WATER SERVICES (THIS SERVICE IS

PROVIDED FOR BY UMGUNGUNDLOVU MUNICIPALITY)

The table below indicates the amount that was spent on water services projects

for the 2018/19 financial year:

82

Table 3.10 Capital expenditure 2018/19: Water services

Capital projects

2018/19

Budget Adjustment

budget

Actual

expenditure

Variance from

adjustment

budget

Total project

value

(R)

N/A

Total project value represents the estimated cost of the project on approval by council

(including past and future expenditure as appropriate).

3.8 SANITATION SERVICES

Sanitation is currently the legislated function of uMgungundlovu District

Municipality. About one-third of the population have access to flush or

chemical toilets. The most concerning figure is 6.3% of the population reported

to have no access to any toilets. This figure is same as the rate in KwaZulu-

Natal province, which is sitting at 6.23%.

3.8.1 SANITATION SERVICE DELIVERY LEVELS

Below is a table that specifies the distribution of households by type of toilet

facility as per Statistics SA 2011 and Community Survey 2016:

83

Table 3.11 Distribution of households by type of toilet facility and municipality (Census 2011, Community

Survey 2016)

Facility

2001

Number of

households

2011

Number of

households

CS 2016

Flush or chemical toilets 3 505 4 879 6 812

Pit latrines 553 722

Flush toilets connected to a public sewerage

system

3 478

Flush toilets connected to a septic tank or

conservancy tank

1 306

Pit latrines with ventilated pipe 7 689

Pit latrines without ventilated pipe 4 520

Bucket toilets 837 185 227

None 724 382 654

Other 4 393

3.8.2 EMPLOYEES: SANITATION SERVICES (THIS SERVICE IS PROVIDED

FOR BY UMGUNGUNDLOVU DISTRICT MUNICIPALITY)

Table 3.12 Employees: Sanitation Services

Job levels

2014/15

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies (as a

% of total posts)

Number

0 – 3 6 5 1 17

4 – 6 1 1 1 0 0

7 – 9 5 5 5 0 0

10 – 12 0 0 0 0 0

84

Job levels

2014/15

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies (as a

% of total posts)

Number

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 12 12 11 1 8

3.8.3 CAPITAL EXPENDITURE – SANITATION SERVICES

The table below indicates the amount that was actually spent on sanitation

services projects for the 2018/19 financial year:

Table 3.13 Capital Expenditure 2018/19: Sanitation services

Capital projects

2018/19

Budget Adjustment

budget

Actual

expenditure

Variance

from

adjustment

budget

Total project

value

(R)

Waste Water

Treatment



85

3.9 ELECTRICITY

Electricity and street lighting are provided to all formal settlements and

electricity and street or high-mast lights are provided to most informal areas in

the uMshwathi municipality.

The table below shows the distribution of households with or without access to

electricity in uMshwathi, CS 2016

Table 3.14 Access to Electricity

Facility

2001

Number of

households

2011

Number of

households

CS 2016

Number of

households

%

In-house conventional meter 4 128 14.19

In-house prepaid meter 18 811 64.7

Connected to other source which

household pays for (e.g. con

391 1.34

Connected to other source which

household is not paying for

79 0.27

Generator 182 0.62

Solar home system 517 1.77

Battery - -

Other 248 0.85

No access to electricity 4 727 16.25

3.9.1 Service Delivery Indicators: Electricity Services

N/A

Service Delivery Indicators: Electricity Services

86

3.9.2 ELECTRICITY SERVICE DELIVERY LEVELS

The table below indicates the different service delivery level standards for

electricity within the urban edge area of the municipality:

Table 3.15 Electricity service delivery levels

Electricity Service Delivery Levels

Description

2018/19 2018/19


Energy (above minimum level)

Electricity (at least min. service level)

Electricity (prepaid (min service level) 0

Sub Total

Percentage

Energy (below minimum level)

Electricity (min service level)

Electricity (prepaid (min service level) 0

Other energy sources 0

Sub-total

Percentage

Total number of households

3.9.3 EMPLOYEES: ELECTRICITY SERVICES

87

Table 3.16 Employees: Electricity Services

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 0 0 0 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 8 8 8 0 0

3.9.4 CAPITAL EXPENDITURE – ELECTRICITY SERVICES

The table below indicates the amount that was actually spent on electricity

service projects for the 2018/19 financial year:

88

Table 3.17 Capital expenditure 2018/19: Electricity services

Capital projects

2018/19

Budget Adjustment

budget

Actual

expenditure

Variance

from

adjustment

budget

Total

project

value

(R)

BobosheTrading 449,940.03

TCN Investments 456,591.39

Shanti's Electrical 967,788.26

TCN Investments 560,997.49

Sizundawo

Engineering 593,031.33



3.10 WASTE MANAGEMENT (REFUSE COLLECTIONS, WASTE

DISPOSAL, STREET CLEANING AND RECYCLING)

The municipality delivers solid waste services to the residents of UMshwathi

Municipality. All residents receive the service once a week and a black bag

system is applied for the removal of all solid waste.

Challenges are as follows:

Illegal dumping issues

Landfill site availability

Waste refuse truck is no longer in a good condition.

89

3.10.1 SERVICE DELIVERY INDICATORS: WASTE MANAGEMENT

(REFUSE COLLECTIONS, WASTE DISPOSAL, STREET CLEANING AND

RECYCLING)

Service delivery indicators: Waste management (Refuse collections, waste

disposal, street cleaning and recycling)

3.10.2 REFUSE REMOVAL SERVICE DELIVERY LEVELS

The table below indicates the different refuse removal service delivery level

standards within the urban edge area of the municipality:

Table 3.18 Refuse removal service delivery levels

Description

2018/19 CS 2016 %

Outcome Actual

Household

Refuse removal: (Minimum level)

Removed at least once a week - 2 391

Minimum service level and above

sub-total -

Minimum service level and above

percentage

Refuse removal: (Below minimum level)

Removed less frequently than once a

week 8 299 926

Using communal refuse dump 11,616 1 628

Using communal container/central

collection point 11,616 107

90

Description

2018/19 CS 2016 %

Outcome Actual

Household

Using own refuse dump 10,945 22 561

Other rubbish disposal 827 632

No rubbish disposal 0 837

Below minimum service level sub-

total

Below minimum service level

percentage

Total number of households

*In terms of the Back to Basics requirements the municipality is

required to calculate the number of erven to which a service is

provided regardless of the number of households per erf

3.10.3 EMPLOYEES: WASTE MANAGEMENT (REFUSE COLLECTIONS,

WASTE DISPOSAL, STREET CLEANING AND RECYCLING)

Table 3.19 Employees: Waste management (Refuse collections, waste disposal, street cleaning

and recycling)

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

0 – 3 22 26 22 4 0

4 – 6 3 3 3 0 0

91

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

7 – 9 6 6 6 0 0

10 – 12 0 0 0 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 31 35 31 4 11

3.11 HOUSING

The municipality has appointed XXX as a turnkey developer to build all RDP

houses. uMshwathi municipality has a current housing backlog of xxxx RDP

houses in xxxx.

Table 3.20 Housing demand list

WARD 1 WARD 2 WARD 3 WARD 4 WARD 5

2017/18 0 64 151 31 0

2018/19

%

increase/(decrease)

WARD 6 WARD 7 WARD 8 WARD 9 WARD

10

2017/18 0 64 151 31 0

92

WARD 6 WARD 7 WARD 8 WARD 9 WARD

10

2018/19

%

increase/(decrease)

WARD

11

WARD

12

WARD

13

WARD

14

WARD

2017/18 0 64 151 31 0

2018/19

%

increase/(decrease)

3.11.1 EMPLOYEES: HOUSING MISSING INFOR TECH

Table 3.21 Employees: Housing

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

93

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

7 – 9 0 0 0 0 0

10 – 12 1 1 1 1 1

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 1 1 1 1 1

3.12 Free Basic Services And Indigent Support

In accordance with the approved indigent policy of the municipality, all

households earning less than R3 190 per month will receive the free basic

services as prescribed by national policy. Indigent support includes water,

electricity, rates, refuse, sewerage and rental.

3.12.1 ACCESS TO FREE BASIC SERVICES

The access to free basic services is summarised into the different services as

specified in the following table:

94

Table 3.22 Access to free basic services

Free basic services to low income households

Year


Tot

al

Households earning less than R 3 500 per month

Free basic

water

Free basic

sanitation

Free basic

electricity

Free basic

refuse

Acce

ss (%)

Acces

s (%)

Acces

s (%)

Acces

s (%)

2017/

18

2018/

19

21

52 1782 82.8

The cost of free basic services amounted to R 1,183,158 for the financial year.

COMPONENT B: ROAD TRANSPORT

This component includes: roads, transport and storm water drainage.

The vision for South African transport given with the White Paper on National

Transport Policy (1996) is to: “provide safe, reliable, effective, efficient and fully

integrated transport operations and infrastructure which will best meet the

needs of freight and passenger customers at improving levels of service and

cost in a fashion which supports government strategies for economic and

social development whilst being environmentally and economically

sustainable.”

95

3.13 ROADS

uMshwathi municipality focus on normal maintenance, re-gravel and reseal of

roads. The district municipality with Transport Department is responsible to

maintain, repair, protect and manage the proclaimed provincial roads in our

area. Challenges facing the municipality are the maintenance of potholes due

to insufficient funds.

3.13.1 ASPHALT ROADS

Table 3.23 Asphalt roads

Financial year Total km asphalt

roads

Km of new

asphalt roads

Km existing

asphalt roads

re-sheeted

Km asphalt

roads

maintained

2017/18 14 0 0 34

2018/19 34 0 0 34

3.13.2 GRAVEL ROADS

Table 3.24 Gravel roads

Financial year Total km gravel

roads

Km new gravel

roads

constructed

Km gravel

roads upgraded

to asphalt

Km gravel roads

graded/maintained

2017/18 88 0 0 Unknown

2018/19 88 0 0 88

96

3.13.3 COST OF CONSTRUCTION/MAINTENANCE

The budget for paved constructed roads was R0000 whilst R1 was spent. The

total cost of maintenance for gravel and paved/asphalt roads was R00000

3.13.4 SERVICE DELIVERY INDICATORS: ROADS

Service Delivery Indicators: Roads

3.13.5 EMPLOYEES – ROADS

Table 3.25 Employees: Roads

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 3 3 3 0 0

10 – 12 0 0 0 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 17 18 17 1 56

3.13.6 CAPITAL EXPENDITURE – ROADS

The table below indicates the amount that was spent on road service projects


97

Table 3.26 Capital expenditure 2018/19: Road services

Capital projects

2018/19

Budget Adjustment

budget

Actual

expenditure

Variance

from

adjustment

budget

Total

project

value

(R)

Upgrade and

construction of

various roads

18,200,000.00 13,270,000.00 15,136,713.00 1,866,713



3.14 STORM WATER

uMshwathi municipality’s waste water (storm water) systems consist of

channels, pipelines and open trenches with piped road crossings.

3.14.1 STORM WATER INFRASTRUCTURE

The table below shows the total kilometres of storm water maintained and

upgraded as well as the kilometres of new storm water pipes installed:

98

Table 3.27 Stormwater infrastructure

Financial year

Total km storm

water

measures

Km new storm

water

measures

Km stormwater

measures

upgraded

Km stormwater

measures

maintained

2017/18 0 0 37

2018/19 0 37

3.14.2 COST OF CONSTRUCTION/MAINTENANCE

The table below indicates the amount of money spent on storm water

projects:

Table 3.28 Cost of construction/maintenance of storm water systems

Financial year

Storm water measures

Capital

R’000

Maintained

R’000

2017/18 500 90

2018/19 0 0

3.14.3 EMPLOYEES: STORM WATER

Table 3.29 Employees: Storm water

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

0 – 3 9 9 9 0 0

4 – 6 0 0 0 0 0

99

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

7 – 9 0 0 0 0 0

10 – 12 1 1 1 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 10 10 10 0 0

COMPONENT C: PLANNING AND DEVELOPMENT

This component includes two service delivery priorities namely :

Planning; and

Development.

Planning consists of land use and building control.

Development consists of Local Economic Development (LED). LED is built

around a commitment to develop a climate in which economic development

and growth can prosper.

3.15 PLANNING

National imperatives such as the Municipal Systems Act of 2000 prescribes

that municipalities must develop a spatial plan that seeks to address the past

skewed planning models and in an integrated way explore how planning for all

people and communities will be addressed. The spatial plan thus informs how

100

space and resources will be used to create a more coherent and systematic

approach to planning and service delivery.

The SDF emanates from the directives of the Municipal Systems Act (Act 32 of

2000) (Chapter 5: Integrated Development Planning, Part 2: Contents of

Integrated Development Plans – Section 26(e)) and must be a core component

of the IDP of the municipality. The relevance of the legislative context of the

UMshwathi SDF is that it needs to be aligned with the following:

National SDF

Provincial SDF

The focus of planning is on the:

Approval and issuing of rezoning applications, sub-divisions and

consolidation

Application of the regulations in terms of building control and the approval

of building plans

3.15.1 CHALLENGES: PLANNING

The tables below give a brief description of all the challenges regards to the

planning department during the 2018/19 financial year:

Table 3.30 Planning challenges

Challenge Corrective action

Land audit not conducted Conduct land audit

3.15.2 SERVICE DELIVERY STATISTICS FOR PLANNING

The table below displays the applications for land use development :

101

Table 3.31 Applications for land use development

Detail

Formalisation of

townships Rezoning

Built

environment

2017/1

8

2018/1

9

2017/1

8

2018/1

9

2017/1

8

2018/1

9

Planning application

received 0 0 9 8 0 0

Determination made in

year of receipt 0 0 9 8 0 0

Determination made in

following year 0 0 0 0 0 0

Applications withdrawn 0 0 0 0 0 0

Applications outstanding at

year end 0 0 0 0 0 0

The table below indicates the building plans received and processed during

the financial year

Table 3.32 Town planning and building control service delivery statistics

Type of service 2017/18 2018/19

Building control

Building plan applications

processed

MISSING INFOR

PLANNING

Approximate value

New residential dwellings

Residential extensions

New Business buildings

Business extensions

102

3.15.3 EMPLOYEES: PLANNING

Table 3.33 Employees: Planning

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 1 1 1 0 0

13 – 15 1 1 1 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 2 2 2 2 2

3.16 LOCAL ECONOMIC DEVELOPMENT

The LED strategy along with the LED process plan is reviewed and implemented

annually. The LED strategy is built around commitment to develop a climate in

which economic development and growth can prosper and growth is shared.

The municipality aimed to create a conducive business environment. The

municipality ensures implementation and support of programmes that focus on

economic development.

103

3.16.1 SERVICE DELIVERY INDICATORS: LED

2 Capacity-building projects (Furniture, Clothing Design & Garment

Making)

Support & promote 3 agrarian reform programs

Support 1 poverty alleviation project

Support 6 enterprises with inputs/equipment.

Coordinate emerging farmers summit by 30 Dec 2018

- Establish 3 Industrial Sewing Hubs.

3.16.2 HIGHLIGHTS: LED

The table below gives a brief description of all the highlights for LED during the

2018/19 financial year:

Table 3.34 LED Highlights

Achievement/Highlight Description

Hosted Emerging Farmer’s Summit Platform for information sharing &

relationship building

Sewing hubs established in Mbava, Thuthuka

Centre and Cool Air & New Hanover.

Facilities for the empowerment of SMMEs

and Cooperatives

Participating in the Traditional Foods

Competition

Event aimed at educating communities about

the health benefits of indigenous foods

Completion of Furniture Learnership,

Garment Design, Hydroponics and

Indigenous Chickens Skills Programs

Programs aimed at empowering local youth

and women. Seventy people participated in

the programs.

15 Informal Traders received inputs &

equipment

Department of Small Business initiative in

which each beneficiary received equipment

such as stoves & sewing machines worth

about R18 000.00

104

3.16.3 CHALLENGES: LED

The table below gives a brief description of all the challenges for LED during the


Table 3.34 LED challenges


Budget/funding Source additional funding from SETAs

Human Resources Source interns, form partnerships and

appoint service providers

Shortage of training venues & furniture Resuscitate and / or establish more training

venues

3.16.4 LED INITIATIVES

The table below shows the number of jobs created through grant projects for the


Table 3.35 Job creation through grant projects

Jobs created through grant projects

Project Detail Total wages paid

R

Furniture Learnership NQF2 1 Facilitator for 10 months

R100 000.00

Furniture Learnership NQF2 Each of the 20 students received

stipends of R1200 per month over

a period of 10 months

R240 000.00

Garment Design,

Hydroponics &Indigenous

chickens Skills Programs

Three facilitators R114 000.00

105

Table 3.36 Job creation through EPWP projects

Jobs created through EPWP projects

Project details Number of EPWP appointments

IG/Cleaning and repairing of Streets 70 plus

Capital Projects

3.16.5 TOURISM AWARENESS/EVENTS

Annual events in the uMshwathi region:

Table 3.37 Tourism awareness/events

Annual event Date

Traditional Foods Competition in Mpolweni Hall 18 October 2018

uMshwathi Emerging Farmer’s Summit at Cool Air Hal 25 March 2019

Bass Fishing Competition at Torwoodlea Lodge 09 March 2019

Canoeing Competition at Albert Falls Dam

Note: Tourism of the Municipality is driven by the District Municipality

3.16.6 EMPLOYEES: LED

Table 3.38 Employees: LED

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies (as a

% of total

posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 1 2 1 1 0.5

106

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies (as a

% of total

posts)

Number

13 – 15 1 1 1 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 2 3 2 1 0,33

COMPONENT D: COMMUNITY AND SOCIAL SERVICES

This component includes:

Libraries

Cemeteries

Social programmes

Health programmes

3.17 LIBRARIES

The library service ensures the provision of library and information services to

communities in a sustainable manner.

Libraries and community library projects maintain and develop information

resources and other skills programs.

Libraries also develop organised systems with other relevant government

departments to enhance service delivery to our communities. They also

escalate social mobilization, and social cohesion. This is achieved through

various community outreach engagements.

107

3.17.1 HIGHLIGHTS: LIBRARIES

The table below gives a brief description of all the highlights for libraries during

the 2018/19 financial year:

Table 3.39 Libraries highlights


Spelling BEE Local and Regional BEE

Career outreach Implemented in April targeting Grade 12

Setting up mobile Libraries Trustfeed

Grant Increase

At 60 % increase of Grant allocation was

obtained previous year and retained with

inflation percentage

Loss of Books Effective Library security Control system

3.17.2 CHALLENGES: LIBRARIES

The table below gives a brief description of the libraries challenges during the 2018/19 financial

year:

Table 3.40 Libraries challenges


Loss of books / Load Shedding Effective library Scan

Internet Effective functioning of the internet system

and availability of WI-FI on Saturdays

Insufficient Computers , Printers and Toner Effective model for computers and printers

108

3.17.3 SERVICE STATISTICS - LIBRARIES

Table 3.41 Service statistics –Libraries

Type of service 2017/18 2018/19

Libraries

Number of libraries 3 Situated at Wartburg , Dalton

and New Hanover

Library members 17, 021 Total libraries

Books circulated 14295

Books lost 201

Exhibitions held 04 Career outreach , Exhibitions by tertiary

institution, Spelling Competition

Internet users 5769 For all libraries

New library service points or Wheelie

Wagons 3 Three school libraries

Children programmes 657 Story Telling / Story writing

Visits by school groups and crèches 336 Story Telling

Book group meetings for adults N/A N/A

Primary and secondary book education

sessions 4 Career Outreach / and story telling

109

3.17.4 SERVICE DELIVERY INDICATORS

3.17.5 EMPLOYEES: LIBRARIES

Table 3.42 Employees: Libraries

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 4 4 4 4 0

10 – 12 2 2 2 2 0

13 – 15 1 0 0 0 1

16 – 18 1 0 0 0 1

19 – 20 0 0 0 0 0

Total 10 0 2

3.18 CEMETERIES

There are 5 cemeteries in the uMshwathi area that resort under the jurisdiction

of the municipality and 2 additional cemeteries that belong to churches.

ACHIEVEMENTS

New cite at Mpolweni service provider appointed for geodetic analysis and

environmental impact assessments ward 10 for cemetery.

CHALLENGES

Current Cemetry in New Hanover Ward 2 is full and no land has been identified.

Other challenges includes waterlogging in Coolair cemetery and cemeteries

110

with no fencing leading to vandalism. All our cemeteries are still to be provided

with toilets for public use during burials.

3.18.1 Service delivery indicators: Cemeteries

Service delivery indicators: Cemeteries

3.18.2 EMPLOYEES: CEMETERIES

Table 3.43 Employees: Cemeteries

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies (as a

% of total

posts)

Number

0 – 3 8 8 6 2 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 0 1 1 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 1 1 1 0 0

3.19 SOCIAL PROGRAMMES

The aim of social programmes is to:

Address problems and poverty identified in the community

Commemorate special public days

Enhance good communication

111

The following special programmes were executed during the 2018/19 financial

year:

Table 3.44 Special programmes executed during 2018/19

Description of

programmes Date of program Target Group

Expenditure

R

Reed Dance 9 -12 September Maidens R200,000,00

Participation in Salga

Games 13- 15 December Athletes R450,000,00

Golden Games March to September Senior Citizens R85 ,000,00

Special programme

for Vulnerable

groups during

December

December Children and Senior

Citizens R103,000,00

HIV/AIDS

Awareness Days

Continuous – 1 every

quarter General Public R40,000,00

Commemoration of

World Aids Day 01 December General Public R85,000,00

Participation on

Disability Sport

September –

October

People with

Disabilities

Participation on 67

minutes(Mandela

Day)

Municipal employees Identified / Profiled

areas N/A

Health Innovation

Unjani Clinic 2017/ 2018 ongoing

General Public and

Farm dwellers N/A

Sectoral Social

Cohesion

Programmes

29 July Men

Women

R57,000,00

R57,000,00

Anti-Violence

Campaign December

Women and

Children R57,000,00

112

3.19.1 EMPLOYEES: SOCIAL PROGRAMMES

Table 3.45 Employees: Social programmes

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 0 0 0 0 0

13 - 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 2 0 2 0 0

Total 2 1 2 0 0

The staff compliment for psycho social support reside within the department of

social development. The social services vulnerable groups are implemented in

collaboration with departments. The municipality employee component consists

of two warm bodies that are responsible for coordination and facilitation.

COMPONENT E: ENVIRONMENTAL PROTECTION

This component includes: pollution control, biodiversity and landscape

According to section156(2) of the Constitution, a municipality may make and

administer by-laws for the effective administration of matters that it has the

right to administer. Air pollution is listed as a matter in which local government

113

has authority and national and provincial government may not compromise or

impede a municipality’s right to exercise its powers or perform its functions.

3.20 POLLUTION CONTROL

Air pollution control is not a function of the municipality, but a function

performed by the district municipality.

3.21 BIO-DIVERSITY, LANDSCAPE AND OPEN SPACES

We use biodiversity in various ways. Some examples of direct use are: for

food, medicine, firewood (cooking and heating), industry (building materials or

veld products such as baskets), recreational harvesting (gardening of hunting)

and ecotourism (spring flowers for example). Indirectly, biodiversity provides

services that are important to human well-being, for example, nutrient cycling,

photosynthesis, climate regulation, and so on. Biodiversity conservation also

means that organisms should exist in their own right and not just to be used by

humans.

COMPONENT F: SECURITY AND SAFETY


Traffic, law enforcement and licensing

Disaster management

The function of security and safety is to provide a safe environment for the

residents of the UMshwathi and to ensure the safety of the personnel of the

municipality through effective and efficient operationalization of all relevant

plans in conjunction with public safety.

114

The UMSHWATHI MUNICIPALITY delivers security services where contract

workers are deployed at all municipal buildings.

UMSHWATHI MUNICIPALITY does not have a full time dedicated fire service.

It does, however, offer fire-fighting services through cooperation with district

municipality.

Disaster management is a district function.

The aim of law enforcement in a municipality is to create an environment that

will further the social and economic development of the community. Through

law enforcement services the municipality ensures that individuals and their

families are safe. Law Enforcement Officers are deployed in the municipal area

to ensure that by-laws are enforced in the municipal area. An officer of Traffic

is currently fulfilling the duties of law enforcement.

The aim and function of the Traffic Department is to educate and create a

culture of voluntary compliance with road traffic rules and regulations and to

enhance courteous and tolerant road user behaviour. UMSHWATHI

MUNICIPALITY has an operational traffic department comprising driver

licensing, traffic law enforcement, vehicle testing and motor vehicle

registrations.

3.22 TRAFFIC, SECURITY AND LICENSING

The aim and function of the Traffic Department is to educate and create a

culture of voluntary compliance with road traffic rules and regulations and to

enhance courteous and tolerant road user behaviour. UMSHWATHI

MUNICIPALITY has an operational traffic department comprising driver

licensing, traffic law enforcement, vehicle testing and motor vehicle

registrations.

The main priorities are:

The testing of applicants for learner’s licenses and the application and

renewal of professional driving licenses.

The registration and licensing of motor vehicles.

115

The promotion of road safety and law enforcement.

3.22.1 SERVICE STATISTICS – TRAFFIC, SECURITY AND LICENSING

Table 3.46 Service data for Traffic, security and licensing

Details

2017/18 2018/19

Actual no. Actual no.

Number of road traffic accidents during the

year

Number of infringements attended

Number of traffic officers in the field on an

average day

Number of traffic officers on duty on an

average day

Number of driver’s licenses issued

Number of learner’s licenses processed and

issued

Number of motor vehicle license transactions

Number of road signage erected

Number of fines issued for traffic offences

R-value of fines collected

Number of roadblocks held

Special escorts

Awareness initiatives on public safety

116

3.22.2 EMPLOYEES: TRAFFIC, SECURITY AND LICENSING

Table 3.47 Employees: Traffic, security and licensing

Job levels 2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 1 1 1 0 0

10 – 12 6 6 6 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 7 7 7 0 0

COMPONENT G: SPORT AND RECREATION


Community halls

Swimming pools

Caravan park

Nature reserve

Sport grounds

117

3.24 COMMUNITY HALLS

Community halls 24 in all wards are maintained

3.24.1 HIGHLIGHTS: COMMUNITY HALLS

The table below gives a brief description of all the highlights for Community halls


Table 3.49 Community halls highlights


All communities who requested hall usage

were accommodated Weddings, funerals etc

3.24.2 CHALLENGES: COMMUNITY HALLS

The table below gives a brief description of the Community halls challenges


Table 3.50 Community halls challenges


Cost of daily maintenance and upgrade of

halls Source additional funding

Vandalism Security personnel through EPWP

3.24.3 EMPLOYEES: COMMUNITY HALLS

Table 3.51 Employees: Community halls

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 8 9 8 1 11

118

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 0 0 0 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 8 9 8 1 11

3.28 SPORT GROUNDS

12 out of 14 have Sport fields available UMshwathi Municipal Area. Due to the

scarcity of water resources most of the soccer/rugby pitches cannot be grassed.

3.28.1 CHALLENGES: SPORT GROUNDS

The table below gives a brief description of the Sport grounds challenges during

the 2018/19 financial year:

Table 3.57 Sport grounds challenges


Daily maintenance for sport grounds Source additional funding

Vandalism

3.28.2 EMPLOYEES: SPORT GROUNDS

119

Table 3.58 Employees: Sport grounds

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 3 3 3 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 0 0 0 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 3 3 3 0 0

COMPONENT H: UMSHWATHI MUNICIPALITY: CORPORATE POLICY,

OFFICES AND OTHER SERVICES


Executive and Council

Human Resources

3.29 EXECUTIVE AND COUNCIL

Executive and Council includes the:

Mayor

Councillors

Office of the Municipal Manager

120

3.29.1 HIGHLIGHTS: EXECUTIVE AND COUNCIL

The table below gives a brief description of all the highlights for Executive and

Council during the 2018/19 financial year:

Table 3.59 Executive and Council highlights


The establishment of the Disciplinary Board

and Protected Disclosure Procedure was

approved on 26 October 2018

Resolution number C939

The following Human Resources Policies

were reviewed and approved by Council on

27 February 2019:

Acting in a Higher/Same Level

Position Policy

External Bursary Policy

Internal Bursary Policy Leave Policy

Scarce Skills Retention Policy

Skills Development Policy

Human Resources Policy


The Draft IDP 2019/2020 was approved and

adopted on 27 March 2019 Resolution number C1049

The reviewed Audit Charter was approved

and adopted on 30 May 2019 Resolution number C1089

The Draft Operating Budget for the

2019/2020 Financial Year and Two Outer

Years was approved on 30 May 2019


3.29.2 CHALLENGES: EXECUTIVE AND COUNCIL

The table below gives a brief description of Executive and Council challenges


121

Table 3.60 Executive and Council challenges


None N/A

3.29.3 SERVICE DELIVERY INDICATORS: EXECUTIVE AND COUNCIL

Service delivery indicators: Executive and Council

3.29.4 EMPLOYEES: EXECUTIVE AND COUNCIL

Table 3.61 Employees: Executive and Council

Job levels

2014/15

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 2 2 2 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 10 10 10 0 0

Total 12 12 12 0 0

3.30 FINANCIAL SERVICES

Financial services include:

Budget and treasury control

Expenditure management

122

Income management

Supply Chain Management

Sound financial management practices are essential to the long term

sustainability of the municipality. It underpins the process of democratic

accountability. The key objectives of the Municipal Finance Management Act

(2003) is to modernise municipal financial management in South Africa so as

to lay a sound financial base for the sustainable delivery of services. The

management of key financial and governance areas is achieved by focussing

on reducing the levels of outstanding debt owed to the municipality, to assist

with service delivery spending and maintaining a healthy cash flow and also

maintaining an unqualified audit for the municipality by resolving audit findings

and improving financial governance.

Table 3.62 Service Standards for Financial Services

Debt recovery

Details of

the types of

account

raised and

recovered

2017/18 2018/19

Billed in

year

Actual for

accounts

billed in

year

Proportio

n of

accounts

value

billed that

were

collected

%

Billed in

year

Actual for

accounts

billed in

year

Proportio

n of

accounts

value

billed that

were

collected

%

R % R %

Property

rates

36,009,40

7

32,336,44

7 89.8%

45,504,99

2

36,449,49

9 80.1%

Electricity Eskom Eskom

Water District District

Sanitation District District

Refuse 2,151,310 1,931,876 89.8% 2.402,453 1,924,365 80.1%

123

3.30.1 HIGHLIGHTS: FINANCIAL SERVICES

The table below gives a brief description of all the highlights for Financial

Services during the 2018/19 financial year:

Table 3.63 Financial Services highlights


Achieved Unqualified Audit Opinion for 2018

An unqualified audit opinion was maintained

2019/20 budget approved

The budget was approved within the

legislative timeframes

Implemented Credit Control Policy Handed over 300 arrear accounts to

attorneys

3.30.2 CHALLENGES: FINANCIAL SERVICES

The table below gives a brief description of the Financial Services challenges


Table 3.64 Financial Services challenges


Non-payment of municipal debt Hand over arrear accounts for collection

Delay by Bid Evaluation Committee in

finalising bids

Set strict timeframes for bid committee to

finalise bids. Include in CFO’s scorecard

3.30.3 SERVICE DELIVERY INDICATORS: FINANCIAL SERVICES

Service Delivery indicators: Financial Services

124

3.30.4 EMPLOYEES: FINANCIAL SERVICES

Table 3.65 Employees: Financial Services

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 0 0 0 0 0

4 – 6 7 8 7 1 13

7 – 9 6 7 6 1 14

10 – 12 9 9 9 0 0

13 – 15 2 2 1 1 50%

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 24 26 24 2 8

3.31 HUMAN RESOURCES

The Human Resource unit resort under the Department of Corporate Services

and is responsible for the following functions:

Human Resource Administration

Recruitment and selection

Labour Relations

Employment Equity

Organisational Structure and Job Evaluation

Occupational Health and Safety

Training and development

Employee Assistance Programme

The aim is to provide management with effective and efficient strategic advice

and support with reference to new and amended legislation, interpretation of

125

policies, organizational change, sound labour relation practices and a healthy

and safe environment.

3.31.1 HIGHLIGHTS: HUMAN RESOURCES

The table below gives a brief description of all the highlights for Human

Resources during the 2018/19 financial year:

Table 3.66 Human Resources highlights


See Chapter 4

3.31.2 CHALLENGES: HUMAN RESOURCES

The table below gives a brief description of the Human Resources challenges

during the 2018/19 financial year

Table 3.67 Human Resources challenges


See Chapter 4

126

3.31.3 SERVICE DELIVERY INDICATORS: HUMAN RESOURCES

3.31.4 EMPLOYEES: HUMAN RESOURCE

Table 3.68 Employees: Human Resources

Job levels 2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total

posts) Number

0 – 3 0 0 0 0 0

4 – 6 0 0 0 0 0

7 – 9 0 0 0 0 0

10 – 12 2 2 2 0 0

13 – 15 0 0 0 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 2 2 2 0 0

3.32 CORPORATE SERVICES

The Corporate Services unit resort under the Department of Corporate Services

and is responsible for the following functions:

Human Resources

Administration Services

IT Services

Record Management

Labour Relations

Town Planning

Cleaning Services

127

Switchboard and Customer Care

The aim is to ensure effective and efficient administrative systems to enhance

the municipality’s objectives.

3.32.1 HIGHLIGHTS: CORPORATE SERVICES

The table below gives a brief description of all the highlights for corporate

services during the 2018/19 financial year:

Table 3.69 Corporate Services highlights


MISSING INFOR CS MISSING INFOR CS

3.32.2 CHALLENGES: CORPORATE SERVICES

The table below gives a brief description of the corporate services challenges


Table 3.70 Corporate Services challenges


3.32.3 SERVICE DELIVERY INDICATORS: CORPORATE SERVICES

Service delivery indicators: Corporate Services

128

3.32.4 EMPLOYEES: CORPORATE SERVICES

Table 3.71 Employees: Corporate Services

Job levels

2017/18

2018/19

Posts Employees

Vacancies

(fulltime

equivalents)

Vacancies

(as a % of

total posts)

Number

0 – 3 5 5 5 0 0

4 – 6 2 2 2 0 0

7 – 9

10 – 12 4 4 4 0 0

13 – 15 1 1 1 0 0

16 – 18 0 0 0 0 0

19 – 20 0 0 0 0 0

Total 12 12 12 0 0

3.32.5 CAPITAL EXPENDITURE – CORPORATE SERVICES

The table below indicates the amount that was actually spent on corporate

services projects for the 2018/19 financial year:

Table 3.72 Capital expenditure - corporate services

Capital projects

2018/19

Budget Adjustment

budget

Actual

expenditure

Variance from

adjustment

budget

Total project

value

(R)

129

Capital projects

2018/19

Budget Adjustment

budget

Actual

expenditure

Variance from

adjustment

budget

Total project

value

(R)



130

COMPONENT I: ORGANISATIONAL PERFORMANCE SCORECARD

3.33 DEVELOPMENT AND SERVICE DELIVERY PRIORITIES FOR 2018/19

The performance report for the year 2018/19 is summarised below.

Strategic Objectives: There are 44 strategies contained within all 6 National KPAs and

135 performance indicators in the Organisational Scorecard/ SDBIP.

Annual performance achievement, 121 indicators were fully achieved = 90%; 5 not

achieved = 4%; 8 partially achieved = 6%; 1 discontinued = 0.7%. The overall

achievement is 96.3%.

KPA No. of

Strategies

No. of

Indicators

Achieved Not Achieved Partially Achieved Discontinued during

mid-year

Basic Service

Delivery 16 42 39 2 1 0

Municipal

Institutional

Development

&

Transformation

8 35 35 0 0 0

Local

Economic

Development

6 12 10 1 1 0

Municipal

Financial

Viability &

Management

4 19 14 2 2 1

Good

Governance &

Public

Participation

4 18 15 0 3 0

Cross Cutting

Issues 6 9 8 0 1 0

131

Below are the annual performance figures for the reporting year 2018/19.

Annual performance achievement, 106 indicators were fully achieved = 78.5%; 5 not

achieved = 3.7%; 20 partially achieved = 14.8%; 3 discontinued = 2.2% the overall

achievement is 93.3%

TOTAL 44 135 121 5 8 1

%

Achievement

89.6% 3.7% 6% 0.7%

132

The main development and service delivery priorities for 2018/19 forms part of the

municipality’s top layer SDBIP for 2018/19 and are indicated in the tables below including,

management responses.

KPA No. of

Strategies

No. of

Indicators

Achieved Not

Achieved

Partially

Achieved

Discontinued during

mid-year

No activity

Basic Service

Delivery 16 43 32 2 5 3

1

Municipal

Institutional

Development

&

Transformation

6 30 27 0 3 0

0

Local

Economic

Development

5 14 13 0 1 0

0

Municipal

Financial

Viability &

Management

4 20 14 2 4 0

0

Good

Governance &

Public

Participation

4 18 14 1 3 0

0

Cross Cutting

Issues 7 10 6 0 4 0

0

TOTAL 42 135

106 5 20 3

1

%

Achievement

78.5% 3.7% 14.8% 2.2%

0.7%

Overall

achievement

Achieved+ partially

achieved 93.3%

133

KPA IDP GOAL IDP REF/

CODE

PROJECT/

PROGRAMME

/

MEASURABLE

OUTPUT

BASELINE 2018/19

TARGET

ACTUAL

PERFORMANCE

REASON FOR

VARIANCE

CORRECTIVE ACTION

BASIC

SERVICE

DELIVERY

IMPROVE

THE QUALITY

OF LIFE OF

OUR

CITIZENS

BSD

1.1.1

Construction

of

infrastructure

for electricity.

Constructe

d

electricity

infrastruct

ure for 65

household

s.

Appointment

of contractor &

site handover

for

construction of

electricity

infrastructure

for 450

Households

Annual Target

achieved,

Contractor has been

appointed and site

handover has been

done.

Number of

connections were

reduced from 450

to 297 due to the

changes at

Mhlangandlovu

project which was

changed to Apples

botch which has

less connections of

70 compare to the

250 that was

initially planned for

Mhlangandlovu

New projects which is

UCL and McKenzie

Farm have been added

to make it 450

connections. Design

have been completed,

project ready for

advertisement.

BSD

1.1.2

Install High

mass lighting

in ward 13

4 high

mast lights

installed.

Install 2 High

Mast in ward

13

BSD

1.2.1

Provide free

basic

electricity to

all qualifying

beneficiaries

84% of

beneficiari

es claimed

free basic

electricity.

Provide 95% of

beneficiaries

with free basic

electricity

1782 out of 2152:

82.80%

Not all registered

beneficiaries are

claiming their FBE

Engage with Eskom to

review the list as at

June

BSD

1.2.2

Provide 95% of

beneficiaries

with free basic

electricity

1782 out of 2152:

82.80%

Not all registered

beneficiaries are

claiming their FBE

Engage with Eskom to

review the list as at

June

BSD

1.2.3

Review and

update

Indigent

Register

Indigent

register

updated

Review and

update

Indigent

The register has

been reviewed

None None

134

by 30 June

2018

Register by 30

June 2019

BSD

1.3.1

Construction/

Upgrade of

Community

facilities. (

Community

halls &

Crèche's

New

indicator

Preparation of

tender

document for

construct 2

Community

Facilities

(Ogujini

Community

Skills Centre in

Ward 11)

&(Thokozani

Community

Skills Centre in

Ward 1)

Annual Target

Achieved for Ogujini

Community Skills

Centre, Tender

documents has been

compiled. Annual

Target achieved for

Thokozani

Community Skills

Centre, tender

document has been

compiled

None None

BSD

1.3.2

Roll over/

Contractor

Appointed

Complete

upgrade of 1

hall (Mount

Elias Hall)

Annual Target

Achieved, 1 upgrade

of Mount Ellias Hall

has been completed.

None None

BSD

1.3.3

Roll over/

Contractor

Appointed

Complete

construction of

1 Hall (Socolile

Community

Hall)

Annual Target

Achieved, 1 Hall has

been completed

(Social Community

Hall).

None None

BSD

1.3.4

Construction/

completion of

Crèche

Creche

constructe

d.

Construct 1

crèche Estezi

Estezi Creche

constructed and

complete

None None

BSD

1.4.1

Construction/

Upgrading/

Completion of

sport fields

1 sports

field

completed

.

Construction 1

sport field

(Ekhamanzi

Sports field)

135

BSD

1.4.2

Upgrade 1

sport field

(Efaye)

BSD

1.5.1

Construction

of gravel roads

2 kms of

road was

upgraded.

Upgrade 2

Kilometers of

gravel road at

Mchunu Road

in Ward 4, and

4km of Gravel

Road at Mbeka

Access Road in

Ward 8

Upgrade of 2kms

Mchunu road is

complete and

upgrade of Mbeka

road is incomplete.

Insufficient budget

available to

complete this

project.

The project will be

implemented on the

2019/2020 financial

year.

BSD

1.5.2

Construction

of Tar Roads

2kms of

gravel

road

constructe

d.

Appointment

of contractors

& Site

handover for

Tarring 1km on

D1013 Road

and Tarring of

1km

Shiyabazali

Access Road by

30 June 2019.

Contractors has

been appointed and

site handover has

been done.

None None

BSD

1.5.3

New

indicator

Appointment

of contractor

for Tarring of

Cool Air/Dalton

Accesses of

300m

Contractor has been

appointed.

None None

Tarring of 1km

on L714

Tarring of 1km L714

is complete.

None None

136

BSD

1.5.4

Storm water

drains and

channels

maintenance

29.6kms of

storm

water

infrastruct

ure

maintaine

d.

Maintain 40

kms of storm

water drains

and channels

40 Kms of storm

water drains has

been maintained.

None None

BSD

1.5.5

Pedestrian

walkways

maintenance

44.3kms of

storm

water

maintaine

d

Maintain 10 km

of Pedestrian

walkways (New

Hanover,

Dalton,

Wartburg, Cool

Air)

10 kms of

Pedestrians

walkways has been

maintained.

None None

BSD

1.5.6

Gravel Road

maintenance

11kms of

gravel

road

maintaine

d.

Maintain

15kms of

gravel Road

(regravelled/Bl

aded) 14

Municipal

Wards

Annual Target

Achieved, 16kms of

gravel road has been

maintained.

None None

BSD

1.6.1

Reporting on

the planning,

implementatio

n and

monitoring of

infrastructure

projects.

Submitted

6 report to

portfolio

com on

infrastruct

ure

projects

Submit 9

reports on

infrastructure

projects

7 progress reports

were submitted to

portfolio committee

on capital projects.

Two(2) Reports

were tabled at the

portfolio meeting

Ensure that all the

reports are part of the

agenda.

BSD

1.7.1

Maintenance

of municipal

buildings

New

indicator

Submit 9

reports on

municipal

buildings

maintenance.

9 reports were

submitted to

portfolio on

municipal buildings

maintenance.

The set of minutes

are attached to

support the report

of 04 April 2019.

The error on the

date of report is

noted

Proof reading to

minimise the errors

will be conducted

137

BSD

1.7.2

Complete the

construction of

a Taxi Rank at

Bhamshela

Roll over/

Contractor

Appointed

Complete the

construction of

1 Taxi Rank at

Bhamshela

1 taxi rank

constructed at

Bhamshela.

None None

BSD

1.8.1

Facilitation of

Low income

houses

development

7 reports

submitted.

Submit 9

progress

reports on low

income housing

development

submitted to

Portfolio

Committee.

8 Progress reports

submitted on low

income housing

development to

portfolio

committee.

One (1) Reports

was tabled at the

portfolio meeting

for September

2018.

Ensure that all the

reports are part of the

agenda.

BSD

1.9.1

Facilitate

Phase 2 of the

Cemeteries

plan

(Conducting

geotech &

environmental

impact

assessment on

the identified

land)

Phase 1

completed

Facilitate Phase

2 of the

Cemeteries

plan

(Conducting

geotech &

environmental

impact

assessment on

the identified

land) by 30

June 2019.

Phase two

Cemeteries plan has

been facilitated the

environmental

screening and

inception report has

been conducted.

Target not achieved,

only project plan by

appointed

consultant

submitted

It was not easy to

get service

provider.

The target will be

implemented in the

next financial year.

BSD

1.9.2

Implementatio

n of Indigent

Burial policy

Approved

90% of

indigent

burial

applicatio

n received.

Approve 90% of

indigent burial

application

received

100% burial

applications

received were

attended to.

None None

BSD

1.9.3

Conduct

cemeteries

maintenance

through

maintenance

plan

2 Reports

submitted.

Submit 4

reports on

cemeteries

maintenance to

portfolio

4 reports Submitted

to portfolio

committee

None None

138

BSD

1.9.4

Support

Pauper burials

Supported

100% of

pauper

burial

requests

received

Provide 100%

support to the

pauper burial

requests

received.

No application

received

None None

BSD

2.1.1

Promotion of

SMMEs and

Cooperatives'

development

for the youth

2

programm

es for

youth

coordinate

d

Implement 4

programmes

for youth

SMME"s and

cooperatives.

4 projects

implemented for

youth SMMES and

cooperatives

None None

BSD

2.1.2

Promote Sport

Development

4 sports

promotion

al projects

implement

ed

Coordinate 8

sports

developments

projects.

8 sports promotion

development

projects

coordinated. Only 7

targeted projects

implemented, and 2

additional projects

were implemented

The requisition is

not available

because the

programme was

funded by the

department of

Sports &

recreation.

BSD

2.1.3

Review of

Youth

Development

and sport

Strategy

New

indicator

Adoption of the

reviewed Youth

Strategy 30

June 2019.

Target not achieved Presentation was

done to full council

but the strategy

was not adopted

yet

The strategy will be

adopted in the next

council meeting

BSD

2.1.4

Promote

Cultural

development

& Heritage

4 Arts and

Culture

projects

implement

ed

Implement 5

programmes

for cultural

development

and heritage

5 programmes for

cultural

development and

heritage

implemented. 2

additional projects

but POE insufficient

None None

139

BSD

2.2.1

Addressing

Social Ills

against

Vulnerable

Groups

5

programm

es for

vulnerable

groups

coordinate

d.

Coordinate/im

plement 4

projects

addressing

social ills

against

vulnerable

groups.

4 programmes

implemented to

addressing social ills

against vulnerable

groups.3 as per POE

None

BSD

2.2.2

Empowerment

of people with

disabilities ,

women and

senior citizens

1 senior

citizens co-

op

supported

Coordinate 2

empowerment

projects for

senior citizens

and people

with disabilities

2 projects

implemented for

senior citizens and

people with

disabilities.

None None

BSD

2.2.3

Improve

healthy

lifestyle for

Elderly

4 senior

citizens

programm

es

coordinate

d

Coordinate/im

plement 3

projects for

senior citizens

3 programmes

implemented for

senior citizens

None None

BSD

2.2.4

Promote

recreational

activities for

children

2 children

projects

coordinate

d

Coordinate 3

projects for

Children

3 projects

coordinated for

children.

None None

BSD

2.2.5

Coordinate

review of

vulnerable

group strategy.

New

indicator

Adoption of the

reviewed

Vulnerable

Groups

Strategy by 30

June 2019.

Strategy has been

adopted and

reviewed on 26 June

2019

None None

140

BSD

2.3.1

Addressing

social &

structural

drivers to

HAST

06

HIV/AIDS

Awareness

Programm

e

coordinate

d

Coordinate 04

HIV/AIDS

awareness

4 HIV awareness

campaigns

coordinated.

however 2

awareness

campaigns there

were no

requisition

prepared since

they was a jointly

together with

clinics

BSD

2.3.2

Coordination

of Structural

meetings ( LAC

3 Nerve

center & 4

LAC

meetings

coordinate

d.

Coordinate 4

LAC meetings

4 LAC meetings

coordinated

None None

BSD

2.3.3

Empowerment

of people living

with HIV

1

programm

e

supported

Coordinate 2

programmes of

people living

with HIV

2 programmes

coordinated for

people living with

HIV

None None

BSD

2.4.1

NPO, CBO &

NGO"s

mentorship

1 NPO

mentored

Mentor 1 NPO,

CBO & NGO's

1 NPO mentored None None

BSD

2.4.2

Reinventing

the culture of

reading by

conducting

awareness

campaigns

4 reading

campaigns

conducted

.

Coordinate 4

Reading /

community

outreach

campaign

4 reading

/community

outreach campaigns

coordinated

There was no need

for requisition

because it was a

short presentation.

BSD

3.1.1

Conduct Joint

law

enforcement

4 joint law

enforceme

nt

initiatives

conducted

with SAPS

Conduct 4 joint

law

enforcement

initiatives with

SAPS and

Submit 4 report

on law

4 joint law

enforcement

initiatives with SAPS

and submitted

report on law

enforcement

initiatives

None None

141

enforcement

initiatives

BSD

4.1.1

Refuse

removal

4302

household

s were

Serviced

123 % of

3800

household

s providing

solid waste

removal

Provide 100%

refuse removal

service to 1142

households

100% of 1142

households serviced

None None

11 Skips

were

provided

Provide 11

skips ongoing,

in Dalton, Cool

Air, Wartburg ,

New Hanover,

Appelshbosch

Hospital

11 skips provided on

ongoing basis, in

Dalton, Cool Air,

Wartburg , New

Hanover,

Appelshbosch

Hospital

None None

MUNICIPA

L

INSTITUTI

ONAL

DEVELOP

MENT AND

TRANSFOR

MATION

IMPROVED

ADMINISTRA

TIVE, LEGAL

AND

ADVISORY

SUPPORT

MID&T

1.1.1

Review and

workshop

HR/SG/IT

Policies

4 Policies

were

reviewed

Adoption of 8

reviewed

policies (Skills

Dev policy,

Employment

Equity Policy ,

Bursary Policy,

HR Strategy,

Fleet

management

policy, Records

management

12 Policies were

reviewed &

approved:

Employment equity,

Skills Dev, Internal

&External Bursary,

HR Strategy, Leave,

Scarce Skills, Acting,

Records

management, Fleet

management ICT

None None

142

policy, ICT

Security policy

& ICT

Framework by

30 June 2019

Security Policy & ICT

Framework.

MID&T

1.1.2

Strengthen the

Human

Resources

Administrative

processes (

capacity

building)

3

workshops

conducted

Conduct 4

workshops:

Workshop 1

for staff on the

Code of

Conduct;

Workshop 2

Batho Pele for

staff ;

Workshop 3 for

staff on the

Fleet

management

policy,

Workshop 4 for

staff on the

Safe Work

procedure

manual Policy

30 June 2019.

Conducted 4

workshops for all

staff: Code of

Conduct, Batho Pele

& Safe Work

procedure manual

took place on the 18

& 20 Sept, 2018.

Workshop 4 Fleet

policy took place on

the 13 June 2019.

None None

143

MID&T

1.1.3

Develop new

policy in line

with legislation

for SG/HR & IT

4 new

policies

developed

Development

and adoption of

2 ICT policies

by 30 June

2019 (ICT

Service Level

Agreement

Management

policy and ICT

Controls

Policy)

Developed 4

policies: 3 ICT

policies: ICT

Framework Policy,

ICT Controls Policy &

ICT Service Level

Agreement

Management were

approved by Council

on the 27 March

2019. HR- Job

Evaluation Policy

None None

MID&T

1.1.4

Filling of

vacant posts

5 positions

filled:

Fill 1 positions

in line with the

reviewed Org

Structure, in

line with the

IDP goals

namely post

General

Manager

Technical

Services

Appointed & filled 2

positions: GM

Corporate Services

appointed in July

2018 & GM

Technical Services

appointed in

February 2019.

None None

MID&T

1.1.5

Implementatio

n of the WSP

Spent 59%

on WSP

implement

ation

Spend 90% of

2018/19 WSP.

Spend 88.25% of

2018/19 WSP

The reason for the

underspent is that

some payments

have not been

done, however we

have submitted all

payments: EG

payment for

Chainsaw handling

This is a problem on

the finance section.

144

Implement

ed 3

training

projects:

Implement 5

training

projects (Code

8 & Code 10,

Leadership

Development,

CPMD, Road &

Interpret maps

& engineering

drawings &

water

reticulation,

Chainsaw

handling &

maintenance.

Implemented 5

trainings. Road &

Interpret maps &

engineering

drawings & water

reticulation was

done in Nov 2018.

Leadership

Development was

done from Sept.

2018. Code 8 & Code

10 was done in Mar

2019. CPMD

commenced in Sept.

2018 & is ongoing,

Chainsaw handling


June 2019.

None None

Trained 20

staff

members

Train 25 staff

members

Trained 27 staff: 7

on Leadership

Development, 8 on

Code 10, 5 staff on

Road & Interpret

maps & engineering

drawings & water

reticulation, 2

CPMD, 5 Chainsaw

handling.

None None

145

MID&T

1.1.6

Maintenance

of both

existing

internal &

external

bursaries

Maintaine

d 80% of

existing

internal

bursaries

Maintain 70%

of existing

internal & 50%

of external

bursaries

9 internal bursars, 4

completed their

studies, 2 did not

qualify for further

funding. 3 were to

be maintained and 2

payments were

made. 66% internal,

12 external bursars,

7 could not be

maintained as 3

completed and 1

secured NSFAS

funding, did not pay

for 3 as this was their

final year. 5 were to

be maintained and 3

of those were paid

for = 60% external.

We therefore

maintained 63 % of

both internal &

external bursars

None None

MID&T

1.1.7

Awarding of

new internal &

external

bursaries

Award 2 new

bursaries.

Awarded 2 new

external bursaries as

internal applicants

didn’t meet the

requirements.

None None

MID&T

1.1.8

Review of the

organizational

structure

The

existing

organizati

onal

structure

was re-

affirmed

by Council

Adoption of

reviewed

organizational

structure for

2019/20 by 30

June 2019

Reviewed

organizational

structure for

2019/20 was

approved on the 30

May 2019

None None

146

on the 30

May 2018

MID&T

1.1.9

Development,

approval and

submission

2019/20 WSP

The

2017/18

WSP was

submitted

and

approved

on the 25

April 2018

Approve the

2019/20 WSP

by 30 April

2019

2019/20 WSP

approved on the 30

April 2019 and

submitted to

LGSETA.

None None

MID&T

1.1.10

Coordinate

Employee

Assistance

Programmes

Wellness

day

programm

e held on

the 27

June 2017

Coordinate 4

Employee

Assistance

Programmes

Coordinated 4 EAP

programmes.

Nutrition Awareness

29 March 2019,

Cancer Awareness

18 & 20 September

2018, Financial

wellness 04

December 2018 &

Men's talk 21 June

2019.

None None

MID&T

1.1.11

Continuance

facilitation and

engagement

regarding Job

Evaluation &

submit reports

to Council

JD's

submitted

to Region

and

waiting for

results

Facilitate 4

meetings

regarding Job

evaluation and

submit reports

to Council

4 Meetings were

held on the 29 Aug,

05 Oct 2018, 15 Feb,

and 7 May 2019. 6

Reports were

submitted on the 26

Oct & 12 December

2018, 27 Feb, 28

March, 30 May & 26

June 2019.

None None

147

MID&T

1.1.12

Implementatio

n of the

Employment

Equity Plan of

the

Municipality

2 Women

appointed

in middle

managem

ent

Employ 1

women

(Women

employed in

management

and 1 with

disability) by

June 2019

Employed 2 woman

in management: GM

Corporate Services

appointed in July

2018 & GM

Technical Services

appointed in

February 2019.

An error occurred

where the

department of

Corporate Services

amended the

departmental

score card by

removing the

target of

employing 1

person with a

disability and

omitted to remove

the same on the

organizational

score card.

None

MID&T

1.2.1

Develop &

approve

calendar of

meetings for

the 2018 -

2019 and 2019

- 2020 financial

years

Council

approved

calendar

of Jan-June

2018

approved

on 31 Oct

2017:

Calendar

for July-

Dec 2018

approved

30 Jun

2018

Submit

calendar of

meetings for

Jan 2019 - June

2019 for

approval by 30

December

2018: Submit

calendar of

meetings for

July -Dec 2019

for approval by

30 June 2019.

Calendar of

meetings for Jan -

June 2019 approved

by council on the 12

December 2018.

Calendar of meeting

for July-Dec 2019

approved on 27

March 2019.

None None

MID&T

1.2.2

Fleet

management

4 reports

submitted

Submit 4

reports on fleet

management

to portfolio

Submitted 10

reports on fleet

management to

Corporate Services ,

on the 16 July, 07

Aug, 05 Sept, 03 Oct,

14 Nov 2018, 04 Feb,

07 March , 03 April,

None None

148

02 May & 11 June

2019.

MID&T

1.3.1

Provision of

legal support

100% of all

litigations

received

was

attended

to

Attend to 100%

of all litigations

received.

Municipal as

respondent 4

matters; Municipal

as plaintiff 1 matter.

Property rights

matters 17.

None None

MID&T

1.4.1

Review PMS

Framework in

line with

Chapter 6 of

MSA

PMS

Framewor

k was

adopted

on the 2th

June 2018.

Adoption of the

reviewed PMS

Framework by

30 June 2019

Reviewed PMS

Framework was

submitted to EXCO

on 18 June 2019 and

submitted to Council

on 26 June 2019

None None

MID&T

1.4.2

Ensure

performance

agreements

for S57 are

signed by

target date.

5 PA’s

were

submitted

to Cogta

on the

20th of

July 2017

Submit 5 signed

Performance

agreements

submitted to

the MEC by 31

July 2018

The 4 Performance

Agreements were

signed and

submitted to Cogta

on 26 of July 2018

We were in the

process of

employing the

General Manager:

Technical Services

None

MID&T

1.4.3

Submit Annual

Performance

report to AG

for auditing.

2016/17

Annual

performan

ce Report

submitted

to AG by

30 August

2017

Submit 2017/

18 Annual

Performance

Report by 31

August 2018 to

AG for auditing

The 2017/18 Annual

Performance Report

was submitted to AG

on the 31 of August

2018 via the CFO

None None

149

MID&T

1.4.4

Conduct

quarterly

review and

consolidate

reviewed

reports for

submission to

EXCO and

Council.

4

performan

ce

reviews/

assessmen

ts

conducted

Conduct 4

quarterly

reviews and

submit 4

reports to EXCO

& Council

2018/19

Performance

Assessment was

conducted: 30 July

2018, 07 November

2018, 15 January

2019 and 09 May

2019. The report

was submitted to

EXCO on 15 August

2018, 05 December

2018 and 18 June

2019 and to Council

on 29 August 2018,

12 December 2018,

24 January 2019 and

26 June 2019.

None None

MID&T

1.4.5

Annual

Performance

Evaluation of

MM and

Managers

directly

accountable to

the MM

2016/17

Annual

Performan

ce

Evaluation

was

conducted

on the

29th of

February

2017

Conduct

Annual

Performance

Evaluation for

2017/18

Financial year

by 30 March

2019

2017/18 Annual

Performance

Evaluation was

conducted on 29

April 2019.

None None

MID&T

1.4.6

Drafting and

adoption of

Annual Report

Annual

report

adopted

on 27

March

2017

2017/18

Annual Report

approved by 31

March 2019 -

MFMA 121(1)

2017/18 Annual

Report adopted by

Council on the 27th

of March 20

None None

150

MID&T

1.4.7

Monitor the

implementatio

n of Council

Resolutions

(Reports to the

MM)

2 report

submitted

to MM

Submit 2

reports to MM

regarding

implementatio

n of Council

resolutions.

Two reports

regarding the

implementation of

Council resolutions

submitted to MM

None None

MID&T

1.5.2

Share Point

Installation

Phase One

was

completed

in January

2017

Install Share

Point by 30

June 2019

Installation of Share

Point completed on

the 05 March 2019

None None

MID&T

1.5.3

CCTV

Installations

New

indicator

Install CCTV @

Thusong Centre

by 30 June

2019

CCTV was installed

on the 28 December

2018.

None None

MID&T

1.5.4

Office failover

for internet &

server

application

New

indicator

Upgrade of

Server by 30

March 2019

Upgrade of Server

completed on the 29

April 2019

The service

provider was

appointed late in

December, the US

companies were

closed for

shipment, and they

delivered the

server when they

opened late in

January 2019.

MID&T

1.5.5

Purchase of

Leave

Management

System

New

indicator

Purchase of

Leave

Management

System by 30

June 2019

Service providers

were requested to

presentation and

quotations of the

system and such

were above the

budget. Additional

funding was

requested during

mid-year budget

Purchase of Leave

Management

System tender was

advertised and

closed on the 14

June 2019, the

challenges we

faced was with the

Evaluation

Committee not

meeting timeously

The First BEC meeting


July 2019, however an

appointment of a

Service Provider was

not done, and it will be

done in July 2019. The

MM is dealing with the

Chairperson's of the

committees.

151

review. Partially

Achieved:

in order to award

this tender on

time.

MID&T

1.6.1

Implementatio

n of OHS

aligned

training

programs

3 OHS

trainings

implement

ed.

Implement 2

health & safety

training

projects/

workshops for

all staff by the

end of June

2019

Implemented 3

health & safety

training projects/

workshops for all

staff: The Safe Work

Procedure took

place on the 18 & 20

September 2018,

the Hearing and loss

prevention took

place on the 30

October 2018 & First

Aid took place on

the 18 & 19

December 2018.

(This was not for all

staff though)

None None

MID&T

1.6.2

Purchasing of

Personal

Protection

Equipment

(PPE) and

Stock items

PPE

purchased

by 30 June

2018

Purchase of

Personal

Protection

Equipment

(PPE) by 30

June 2019

Purchase of Personal

Protection

Equipment (PPE) on

the 20 February

2019.

None None

MUNICIPA

L

FINANCIAL

VIABILITY

SOUND

FINANCIAL

MFV&M

1.1.1

Capacitate

staff on

New

indicator

Train 2 staff

members from

revenue

section on

3 staff members

have been sent for

training

None None

152

AND

MANAGE

MENT

MANAGEME

NT

revenue

collection

revenue

collection.

MFV&M

1.1.2

Have regular

Consumer

awareness

campaigns

Nil Conduct 2

consumer

campaigns on

services

charges and the

need to pay

municipal debt.

Only 6 as per POE 10

meetings have been

held with the

building inspector

None None

MFV&M

1.1.3

Take legal

action against

arrear debtors

315

accounts

have been

handed

over to the

attorneys

Hand over at

least 30 arrear

accounts per

annum

At least 301

accounts have been

handed over

None None

MFV&M

1.1.4

Review the

municipality's

Revenue

Enhancement

Strategy

annually

The

Revenue

Enhancem

ent policy

was

approved

on 27 June

2018

Adoption of the

reviewed

Revenue

Enhancement

Strategy by 31

March 2019

The revenue

enhancement

Strategy was

reviewed and

approved on 26 June

2019

None None

MFV&M

1.1.5

Increase and

maintain

Revenue

Collection Rate

Collection

rate is at

117.75%

Increase

Collection Rate

by 5% to 95%

including arrear

debt

Collection rate for

the year is 80.1%

The main reason is

the culture of non-

payment of

municipal

accounts.

Nonpayment of

the government

debt also has a

bearing on the

collection rate. The

handing over of

accounts was

stopped in

The issue of

Government debt

reported to Treasury

and Cogta. Still

pursuing to hand over

accounts

153

November pending

the development

of a panel of

attorneys

MFV&M

1.2.1/

General

indicator

Financial

viability of the

municipality

expressed as

follows: A=B-

C.D“A”

represents

debt coverage

“B” represents

total operating

revenue

received -“C”

represents

operating

grants “D

’represents

debt service

payments(i.e.

.interest

+redemption)

due within the

financial year

180.55:1 05:01 402.1 : 1 None None

0.58:1 01:01 0.60 : 1

54% 60% 54%

5.61:1 03:01 4.70 : 1

MFV&M

1.2.2

Submit 100%

of S71 Monthly

Reports to be

Treasury &

Quarterly

5 finance

report

submitted.

Submit 4

Finance

Reports to

Council

Only 5 as per POE 6

finance reports were

submitted to Council

None None

154

Reports to

Council

MFV&M

1.3.1

Development

and approval

of Budget

Process Plan

Process

plan was

approved

by 31

August

2017

Approve

Budget Process

Plan by 31 of

August 2018

Process Plan was

approved by 29

August 2019

None None

MFV&M

1.3.2

Review Budget

Related

Policies

Budget

related

policies

approved

on the

27th of

June 2018

Adoption of

the reviewed

Budget Policies

(Budget, credit

control, cash

management,

investment &

virement ) by

31 May 2019

Two polices were

reviewed and

approved on 26 June

2019.

Please comment Please comment

General

Indicator

Efficient and

economical

spending on

MIG Grant

funding

100%

capital

budget

spent.

Spend 100% of

capital budget

Annual Target

Achieved, 100%

spent on MIG

allocation.

None None

MFV&M

1.4.1

Review SCM

Policy

Reviewed

SCM policy

adopted

on the

27th June

2018

Adoption of the

reviewed SCM

Policy by 30

June 2019

SCM Policy was

reviewed and

adopted by Council

on 26 June 2019

None None

155

MFV&M

1.4.2

Hold Regular

Bid Committee

meetings

25 Bid

comm

meetings

held.

Hold 27 Bid

Committee

meetings

annually: Bid

Spec - 9 Bid

Evaluation - 10

Bid

Adjudication- 8

41 meetings held

BSC - 13 BEC

- 14 BAC -

14, Only 11 BSC

meeting,11 BEC

meeting and 12 BAC

meetings.= 34

None None

MFV&M

1.4.3

Timeframe to

finalize and

award bids

Mostly

awarded

within 2

months

Finalize and

award tenders

within 2

months of

closure of

tender

Only 6 out of 18

tenders were

finalized within 2

months

There were delays

during the

Evaluation stage

MFV&M

1.4.4

Timeframe to

finalize and

award of

Quotations

Mostly

awarded

within 7

days

Finalize and

award

quotations

within 7 days of

closing date

27 out 50 quotations

were awarded

within 7 days.

Delays in feedback

from user

departments.

Service providers

withdrawing at last

minute

Record is being kept of

correspondence to

user departments

MFV&M

1.4.5

Update

Contract

Register

Contract

register

updated

monthly.

Update

Contract

Register

monthly

The Contract

register has been

updated on a

monthly basis

None None

MFV&M

1.4.6

Submit SCM

reports to

Council

(Deviations)

Only 1

report

submitted

Submit 4 SCM

Reports

(deviations) to

Council

10 reports were

submitted to

Council. Only 4

Reports submitted

None None

MFV&M

1.4.7

Develop &

submit

2019/20

Annual

Procurement

Plan

Procureme

nt Plan

developed

by 30 June

2018

Develop &

submit

2019/20

Annual

Procurement

Plan to

Provincial

The procurement

plan was developed

and submitted to

treasury on 1st of

July

None None

156

Treasury by 30

June 2019

LOCAL

ECONOMI

C

DEVELOP

MENT

PILLAR 2:

BASIC

SERVICE

DELIVERY

LED

1.1.1

Contribute to

the marketing

of uMshwathi

Tourism

Products

Contribute

d to Amble

in Jan 2018

Contribute

towards

publication of

the Amble

magazine by 30

Dec 2018

Contributed towards

publication of the

Amble magazine on

20 December 2018

None None

LED

1.1.2

Conduct and

finalize

Research/

feasibility

study on

tourism

opportunities

New

Indicator

Conduct

Research/

feasibility study

on tourism

opportunities

by 30 June

2019

Conducted Research

on tourism

opportunities by 30

May 2019

None None

LED

1.1.3

Facilitate a

Tourism

Meetings

New

Indicator

Facilitate

/coordinate 3

Tourism

meeting

3 Tourism meetings

Facilitated

None None

LED

1.2.1

Facilitate

capacity

building for

prioritized

groups

3 capacity

building

projects

facilitated

Facilitate the

implementatio

n of 5 capacity

building

Projects.

6 capacity building

project Facilitated.

None None

157

LED

1.2.2

Support &

Promote

agrarian

reform in

uMshwathi

5 agrarian

reform

programs

supported.

Support &

promote 3

agrarian reform

programs

4 agrarian reform

programs

Supported.

Water tanks were

purchased for

Wards 9 and 12

instead of Ward 4.

There is no

requisition for

inputs collected

from DoAgric for

local farmers.

There is no

requisition as the

seedlings were

collected from

Agriculture

Department.

LED

1.3.1

Support

poverty

alleviation

projects

3 projects

supported.

Support 1

poverty

alleviation

project by 30

September

2018

1 poverty alleviation

project Supported

by 30 September

2018

None None

LED

1.3.2

Sponsor

attendance of

SMMEs /

cooperatives

at exhibitions

1 Crafter

sponsored

Sponsor

attendance of

SMMEs /

cooperatives

at 1 Exhibition

Sponsor attendance

of SMMEs /

cooperatives at 1

Exhibition

The requisition was

not done as the

municipal

transport was used

to transport the

SMME's hence the

trip sheet was used

None

General

indicator

Job

opportunity

creation

138 EPWP

and 96 job

opportunit

ies created

through

capital

projects

Create 150 job

opportunities

through capital

projects and

EPWP ( 70

through EPWP

and 80 through

Capital projects

= 150)

Annual Target

Achieved, 150 jobs

created.

None None

158

LED

1.4.1

Support

commercial/su

bsistence

enterprises

with funding

for inputs /

equipment/

certification

5

enterprise

s

supported.

Support 6

enterprises

with

inputs/equipm

ent.

6 enterprises

supported with

input /equipment

None None

LED

1.4.2

Coordinate

market days

New

Indicator

Coordinate 3

market days

Coordinate 3 market

days

There is no

requisition for

Market Days on 30

August 2018

because the

participants

provided own

transport

None

LED

1.4.3

Coordinate

Emerging

farmers

summit

New

Indicator

Coordinate

emerging

farmers

summit by 30

Dec 2018

Coordinated the

Emerging Farmers

Summit by on 25

March 2019

None None

LED

1.4.4

Establish

Industrial

Sewing Hubs

New

Indicator

4 Industrial

Sewing Hubs

have been

established

4 Industrial Sewing

Hubs have been

established

None None

LED

1.5.1

Coordinate

and hold

Business

Breakfast/Lunc

h

1

Business/

Lunch

coordinate

d

Coordinate and

hold 1 Business

Breakfast/Lunc

h by 30 March

2019

Coordinated 3

Business Meetings

by 30 March 2019

(however there

were no need for

refreshment

because of the

duration of the

meetings)

However there

were no need for

refreshment

because of the

duration of the

meetings

None

159

LED

1.5.2

Facilitate

Social

empowerment

project.

New

Indicator

Spend 80% of

the social

empowerment

project.

Spent 62% of the

social

empowerment

budget.

Some programs

were note

implemented by

Councilors

Outstanding programs

to be implemented in

the next financial year

2019/2020

GOOD

GOVERNA

NCE &

PUBLIC

PARTICIPA

TION

STRENGTHE

NED

DEMOCRACY

GG & PP

1.1.1

Attend IGR

and Public

Participation

meetings

3 District

technical

coordinati

ng forum

(MM's

Forum)

MM to attend 4

District

Technical Co-

coordinating

(MM's) Forum

meetings

Attended 3

meetings: 29 August

2018, 15 March

2019.District

Technical

Coordinating Forum

meeting did not sit

for the fourth

Quarter.

The Municipal

Manager of

uMgungundlovu

District

Municipality did

not coordinate the

meeting of the

fourth quarter.

Should be reminded

and be supported in

the coordination o the

Forum meetings.

3 Social

cluster

meetings

coordinate

d

MM to

coordinate and

Chair 4 Social

Cluster

meetings

Coordinated and

Chaired 4 Cluster

meetings: 31 August

2018,13 December

2018, 08 March

2019 and 20 June

2019.

None None

GG & PP

1.1.2

Review and

adoption of

Communicatio

ns strategy

Communic

ations

Strategy

was

reviewed

and

adopted

on 27 June

2018

Adoption of the

reviewed

Communicatio

ns strategy

adopted by 28

June 2019

Communications

strategy reviewed

and adopted on the

26/06/2019

None None

GG & PP

1.1.3

Analyze the

results of

Conduct

2017/18

Customer

Satisfaction

Survey

conducted

Develop action

plan to address

challenges

highlighted

during 2017/18

Customer

Action plan

developed

None None

160

Survey and

develop action

plan to address

highlighted

challenges.

Satisfaction

Survey by 30

June 2019

GG & PP

1.1.4

Coordination

of OPERATION

SUKUMA

SAKHE

3 LTT

meetings

were

coordinate

d & 1

report

submitted

Coordinate 4

LTT Meetings

and submit

reports to EXCO

& council.

4 LTT meeting were

coordinated

report were not

submitted to

Council

report will be

submitted to Council in

the next financial year

2

Operation

MBO

Coordinat

ed

Coordinate 2

Operation MBO

2 Operation MBO

were coordinated

one requisition is

missing

requisition will be

checked and

submitted

80 %

referred

after the

re-

establishm

ent of war

rooms,

Coordinate and

follow up 80%

of referrals

from War

Rooms

only one member of

the community was

identified and

referred to DSD

None None

GG & PP

1.1.5

MANAGEMEN

T OF

COMMUNITY

SERVICE

CENTRE

(THUSONG)

3 reports

were

submitted

Compile and

submit 4

statistics to

Centre

Managers

Forum, EXCO &

Council.

Target not Achieved There was a

change in the staff

and handover was

not done correctly.

Task allocated to the

new staff with

requisite skills and

knowledge.

161

GG & PP

1.1.6

Coordinate

Budget/IDP

Mayoral

Imbizo

1 Budget/

IDP Imbizo

coordinate

d in April

2019

Coordinate

Mayoral

Budget/IDP

Imbizo by 30

April 2019

1 Mayoral

Budget/IDP Imbizo

coordinated on 17

May 2019

None None

GG & PP

1.2.1

Ensure the

effective

functioning of

internal audit

and risk

management

unit

Audit Plan

was

submitted

to AC on

the 21st of

November

Approval of

Audit Plan by

Audit

Committee by

30 September

2018

Audit plan approved

by 5 December 2018

& resolution

contained in the

minutes of the Audit

Committee minutes

None None

GG & PP

1.2.2

4 reports

submitted

to Audit

Committe

e.

Submit 4

internal audit

reports to Audit

Committee

Only 4 as per POE Six

reports submitted to

Audit Committee

None None

GG & PP

1.2.3

Risk

register

reviewed

by 30 June

2018

Review Risk

profile/

Register by 30

June 2019

Risk profile reviewed

by 30 June 2019

None None

GG & PP

1.2.4

3 Risk

Committe

e meetings

coordinate

d

Coordinate 4

Risk

Management &

Fraud

Prevention

committee

meetings.

Four risk

management and

fraud prevention

committee

coordinated

None None

GG & PP

1.3.1

Lend

administrative

support to

MPAC and

Audit

Committee

5 MPAC

meetings

coordinate

d

Coordinate 4

MPAC

meetings.

4 MPAC committee

meetings

coordinated

None

3 audit

committee

meetings

Coordinate 4

Audit

4 Six audit

committee

coordinated

None None

162

coordinate

d

Committee

meetings.

GG & PP

1.4.1

Functional

Ward

Committees

104 Ward

committee

meetings

coordinate

d

Coordinate 56

Ward

Committee

Meetings in all

14 wards

160 Ward

Committee

meetings

coordinated in all 14

wards

None None

Average

attendanc

e in all

wards is

74%

70%

attendance by

Ward

committee

members

81% attendance by

Ward Committee

members

None None

GG & PP

1.4.2

Coordinate

Combined

Ward

Committee

meetings

2

Combined

Ward

Committe

e meetings

were

coordinate

d

Coordinate 2

combined

Ward

Committee

meetings by 30

June 2019

Two combined ward

committee

coordinated.

None None

CROSS

CUTTING

ISSUES

SAFE AND

SECURE

COMMUNITI

ES

CCI 1.1.1 Conduct

disaster

awareness

campaigns

3

Awareness

Campaigns

Conducted

Conduct 4

disaster

awareness

campaigns

2 disaster awareness

campaigns

coordinated

Elections

campaigns, strikes

in ward 3.

to be done in July to

take place in ward 13

CCI 1.2.1 Training of

Volunteers

and Ward

based

structures on

disaster risk

assessment

27

volunteers

trained

Train 28

volunteers on

disaster risk

assessment by

30 Dec 2018

28 volunteers on

disaster risk

assessment has

been trained

None None

163

CCI

1.3.1.

Install

Lightning rods

resulting in

decreased

exposure and

less

vulnerability of

houses and

buildings to

lightning.

11 lighting

installed

Install 20

lightning rods

20 lightning rods

installed

Requisitions were

misplaced

They will be retrieved

from the system

CCI 1.3.2 Implement

Fire

preventative

measure to

manage or

eliminate the

risks of veld

and forests

fires

80kms

implement

ed

Implement 100

kilometers of

fire belts or fire

breaks

100 kilometers of

fire belts

implemented

None None

CCI 1.3.3 Small scale

disaster

Supported

100% the

reported

incidents

Provide

support 100 %

disaster

incidents.

Disaster incidents

supported

There were no

need for financial

assistance in other

months and other

requisitions were

misplaced.

Requisitions will be

traced from the system

INCULCATIN

G AN

ENVIRONME

NTAL ETHOS

IN THE

MUNICIPALI

TY

CCI 2.1.1 Environmental

education

3

awareness

's

conducted

Conduct 2

Environmental

management

awareness

Campaign

2 school and

community

awareness

campaigns

coordinated

None None

CREDIBLE

IDP

CCI 3.1.1 Development,

review &

adoption of

Credible IDP

2018/19

IDP

adopted

on the

Adoption of the

reviewed

2019/20 IDP by

30 June 2019

2019/2020 IDP was

reviewed and

adopted by Council

None None

164

27th of

June 2018

on the 26th June

2019

CCI 3.2.1 Development,

review and

adoption of

SDF

Draft SDF

adopted

on the

27th of

June 2018

Adoption of

SDF by 30 June

2019

The final SDF was

approved and

adopted by council

on the 30th May

2019

None None

CCI 3.3.1 Develop Land

use scheme for

uMshwathi

municipality

New

indicator

Adoption of

Land Use

Management

Scheme by 30

June 2019

The final land use

management

scheme was

approved and

adopted by council

on the 26th June

2019

None None

CCI 3.3.2 Develop ward

based plans for

14 ward

New

indicator

Adoption of

Draft Ward

based plans by

30 June 2019

Draft Ward Based

Plans not adopted.

The service

provider is

underperforming

and has not

submitted the

draft ward base

plans for adoption

165

CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE

(PERFORMANCE REPORT PART ONE)

A. NATIONAL KEY PERFORMANCE INDICATORS - MUNICIPAL

TRANSFORMATION AND ORGANISATIONAL

The table shows the municipality's performance in terms of the national key

performance indicators (KPI). These KPI’s form part of local government focus area in

terms Municipal Planning and Performance Management Regulations and section 43 of

the MSA.

KPA & Indicators Municipal achievement

Municipal

achievement

2017/18 2018/19

The number of people from employment equity target

groups employed in the three highest levels of

management in compliance with a municipality’s

approved employment equity plan

8 9

The percentage of a municipality’s training budget

actually spent on implementing its workplace skills plan 100% 88%

B. HIGHLIGHTS – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL

DEVELOPMENT


100% of s54A/56 positions filled

This indicates stability in the administration of the

Municipality

Highly qualified S54A / 56 managers who are

heading all departments and leading the

institution

This speaks to compliance with recruitment processes

and the municipality having the right leaders at the right

time giving meaningful contribution in the fulfilment of the

constitutional mandate doing things that are most

economically

Organisational structure during the 2018/19

financial was reviewed to reflect the new

challenges being faced by the municipality.

This reflects alignment with the organisational strategy of

the municipality.

166


Critical policies have been reviewed and

evaluated in terms of the IDP and

organisational strategy.

This emphasises order and healthy labour relations

Emphasis on staff development and training

including the provision of bursaries, learner-

ships, in-service training and internships.

Compliance with the Skills Development Act as well as

the Labour Relations Act

Emphasise to the Health and Safety of

employees

Employer of choice who puts the needs and safety of

employees first

C. CHALLENGES – MUNICIPAL TRANSFORMATION AND ORGANISATIONAL

DEVELOPMENT

Challenge Actions to address

Insufficient Office space Planning and budget of office space

Job Evaluation not completed

Follow ups with the Provincial Audit Committee to

complete the auditing of the SALGA Region 2 results

Lack of proper administrative and computerised

systems

Budget and purchase the system as a matter of urgency

PMS not cascaded to all staff

Cascading of PMS to all relevant staff

Lack of commitment by staff on training Formulate strategies to enhance employee commitment

and ensure consequence management

Lack of succession planning and career management

policy

HR to create strategies and drive the same on

succession planning

Increase sick leave by staff

Partnership with the Department of Health to implement

a monthly clinic on the premises of the municipality

None compliance with the National Treasury norms on

the issue of total cost to personnel ration i.e., the

municipality has exceeded the 40% norm

Training provided to the Income Section on best

practices on revenue collection

167

4.1 COMPONENT A: INTRODUCTION TO THE MUNICIPAL WORKFORCE

Human Resources is considered the backbone of uMshwathi Municipality. The

responsibilities of a human resource professional fall into three main areas: staffing,

compensation and benefits for workers, and the design of work. Essentially, HRM's aim

is to maximize the municipality productivity by improving the effectiveness of its

employees. This approach is unlikely to change in any fundamental way given the ever-

increasing pace of change in the business world.

Some of our activities includes training and development; recruitment and selection,

satisfying employee’s needs, employee wellness, health and safety and employee

relations are the backbone and strength of the organization. Human Resources play a

business partner role of supporting the management team on how to strategically

manage people and business resources.

The support rendered by Human Resources, enables the Municipality to meet

organizational goals as displayed on the strategic document of the Municipality that is

the Integrated Development Plan, herein after referred to as the IDP. The Human

Resources Section renders a professional support service that is well aligned to the

Municipality’s IDP. In so doing, the Human Resources Section is supporting all five (5)

departments of the Municipality in meeting their strategic objectives and further assists

all departments to make a meaningful contribution in the fulfilment of the following

constitutional mandate as displayed in Chapter 7 of the Constitution of the Republic of

South Africa, 1996 by providing support to achieve the following:-

Provide democratic and accountable government for local communities

Provide services to the communities in a sustainable manner

Promote Social and Economic Development

Promote a safe and healthy environment

Encourage the involvement of the Community and community based

organizations in local matters

168

We are committed to organizing people so they can carry out work activities efficiently.

That requires people to be seen as human assets, not the organization's costs or

liabilities. Looking at people as assets is a part of the management of contemporary

human resources and human capital.

The Human Resources Section formulates policies and standard operating procedures

that are aligned to the IDP and are compliant with legislation and the collective

agreements of the South African Local Government Bargaining Council, herein after

referred to as the SALGBC. The Human Resources Section is responsible for

implementation of relevant Human Resources Legislation, policies and prescripts. As a

member of the South African Local Government Association, we provide oversight in

implementing the SALGA Human Resources Strategy and other policies designed to

empower local municipalities.

Our main objectives include:

Design and Implementation of the organizational structure aligned to the

Municipality’s IDP;

Development and Implementation of an Integrated Human Resources Strategy

aligned to the strategy of the Municipality;

Training and development of employees and Councillors

To contribute towards the employability and self- employability of youth and our

communities;

To ensure a competent workforce to achieve our objectives;

To improve quality and management control processes;

To align the organizational culture to the business objectives to improve the

organizational efficacy and measure.

Development and implementation of the HIV / AIDS strategy and employee

wellness programme (EAP);

Motivation of employees and implementation of change management

programmes;

Development and implementation of retention and talent management strategies;

Maintenance of a healthy labour relations environment that is conducive;

169

Custodian of the Human Resources Policies;

Employment Equity;

Occupational Health and Safety;

Implementation of the Task Job Evaluation System;

Provision of management support and leadership on pertinent organizational

issues.

4.1.1 EMPLOYMENT EQUITY

Our employment practices are in line with Employment Equity Act No 55 of 1998 (as

amended). This act encourages equal opportunities and fair treatment in employment

by removing unfair discrimination and shall take affirmative action to address the

imbalances faced by the identified groups in the past.

uMshwathi Municipality is committed in fulfilling the purposes of the Employment Equity

Act No 55 of 1998 as amended by ensuring that its vision is in line with the vision of the

Republic of South Africa. The Municipality recognizes that this shall be achieved

through recruiting, training, developing and accelerating the promotional opportunities of

the designated groups.

The Municipality with its relevant stakeholders (management, employees, unions etc.)

undertakes to make employment decisions that are based on the principle of

employment equity in line with the agreed numerical targets and Affirmative Action

measures. In 2018/19 financial year, the Corporate Services Department included on its

departmental score card as a performance target the recruitment and appointment of

people from the designated groups as follows:

One woman in Middle Management

The Municipality appointed two (2) women in management in the positions of General

Manager Corporate Services and General Manager Technical Services.

The five-year Employment Equity Plan (July 2015 – June 2019) of the Municipality was

adopted during the 2015/16 financial year and the following table summarizes the

Employment Equity targets of the Plan.

170

EMPLOYMENT EQUITY VS. POPULATION

A. The following is in terms of filled positions on the structure

Description African Coloured Indian White Other Total

Population numbers 191 4 12 2 0 209

% population 91 2 6 1 0 100

EE population 2018/19

Occupational Levels - Race

The table below categories the number of employees by race within the occupational levels:

Occupational

Levels

Male Female Total

A C I W A C I W

Top management 1 0 0 0 0 0 0 0 1

Senior management 1 0 1 0 2 0 0 0 4

Professionally qualified and

experienced specialists and mid-

management

6 2 0 0 5 0 2 0 15

Technicians 19 0 2 0 20 1 2 2 46

Semi-skilled workers 28 0 1 0 16 0 2 0 47

Unskilled workers 52 0 0 0 41 1 2 0 96

Total Permanent 107 2 4 0 84 2 8 2 209

None permanent 5 0 0 0 17 0 0 0 22

Occupational levels

4.1.2 VACANCY RATE

Section 66 of the Municipal Systems Act No 32 of 2000 states that “a municipal

manager, within a policy framework determined by the municipal council and subject to

any applicable legislation, must develop a staff establishment for the Municipality, and

submit same to the municipal council for approval”

In compliance with the aforementioned, the Municipality embarked on a process of

reviewing the organisational structure during the 2018/19 financial year. All relevant and

critical stakeholders were engaged in this process. The purpose of the engagements

171

was to review the structure in order to ensure that it is aligned with the strategic

objectives of the Municipality as displayed on the IDP. The following critical

stakeholders were engaged:

Heads of Departments

Extended Management Committee

Organized Labour

Local Labour Forum

Corporate Services Portfolio Committee

Executive Committee

Full Council

Following extensive consultative meetings with the aforementioned stakeholders, the

organizational structure was adopted on 30 May 2019.

The following diagram illustrates the overview of the staff establishment of uMshwathi

Municipality as reviewed, adopted during the 2018/19 financial year, and adopted on 30

May 2019:

General Managers appointed in terms of section 56 of the Municipal Systems Act 32 of

2000 head the departments. The General Managers are reporting directly to the

Municipal Manager who has been appointed in terms of Section 54A of the Act.

In the month of July 2019, the Municipality commenced with a placement process of all

existing employees into the approved organizational structure. This process involves

172

extensive consultation with Heads of Department, line managers for each department

and Union representatives

The Corporate Services Portfolio Committee, Executive Committee as well as Full

Council play a critical role of oversight in the matter.

The following diagrams illustrates the vacancy rate on the staff establishment that is

currently in use.

DEPARTMENT NUMBER OF POSITIONS

Office of the Municipal Manager 21

Corporate Services Department 37

Finance Services Department 22

Community Services Department 153

Technical Services Department 52

Total Number of posts 290

Vacancies 75

Vacancy Rate 25%

Table

Pie Chart

75%

25%

VACANCY RATIO

TOTAL NUMBER OF STAFF TOTAL NUMBER OF VACANCIES

173

4.1.3 STAFF TURNOVER RATE

A high staff turnover may be costly to a municipality and might negatively affect

productivity, service delivery and institutional memory/organisational knowledge. Below

is a table that shows the staff turnover rate within the municipality. The staff turnover

rate shows an increase from XX% in 2017/18 to XX % in 2018/19.

The table below indicates the staff turnover rate over the last three years:

Financial year

Total no appointments

at the end of each

financial year

New appointments No terminations during

the year Turn-over rate

2017/18 7 7 4 0

2018/19 6 6 18 0

Staff turnover rate as at 30 June 2019

The table below shows a breakdown of the different categories of the terminations:

Month Appoint-

ments

Promo-

tions Total

Retire-

ments

Dismiss

als

Resigna

-tions

Disable

d Death Total

July 2018 0 0 0

August 2018 0 1 1

September 2018 0 0 1 1

October 2018 1 1 1 1

November 2018 0 0 1 1

December 2018 0 0 1 1

January 2019

February 2019 1 1 1 1

March 2019 0 0

April 2019 0 0 1 1 2

May 2019 0 0 1 1

June 2019 1 1 1 1

Total

3 0 3 3 0 2 0 5 10

Termination Categories

174

4.2 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

Managing the municipal workforce refers to analysing and coordinating employee

behaviour.

4.2.1 INJURIES

An occupational injury is a personal injury, disease or death resulting from an

occupational accident. Compensation claims for such occupational injuries are

calculated according to the seriousness of the injury/disease and can be costly to a

municipality. Occupational injury will influence the loss of man hours and therefore

financial and productivity performance.

There were three (3) injuries on duty in the 2017/18 financial year and this decreased to

two (2) injuries in the 2018 financial year.

Incidents are investigated to determine whether there was any negligence involved to

ensure that it is an actual injury on duty.

The table below indicates the total number of injuries within the different directorates:

Directorates 2017/18 2018/19

Municipal Manager 0 1

Corporate Services 0 0

Finance 0 0

Community Services 3 1

Technical Services 0

Total 3 2

Injuries

The following table depicts the Injuries on Duty (IOD) during the 2018/19 financial year as well as

the medical treatment received by employees, days and cost to employer due to IODs.

Number and Cost of Injuries on Duty during the 2018/19 Financial Year

175

Type of injury

Injury

leave

taken

Employees using injuries on duty/

Medical Treatment

Total cost

IOD Medical Treatment

Required basic medical

attention only 5 0 2

2562.65

Temporary total

disablement 0 0 0

0

Permanent disablement 0 0 0

0

Fatal 0 0 0 0

TOTAL 5 0 2 2562.65

176

4.2.2 SICK LEAVE

The number of day’s sick leave taken by employees has service delivery and cost

implications. The monitoring of sick leave identifies certain patterns or trends. Once

these patterns are identified, corrective action can be taken.

The total number of sick leave taken during the 2018/19 financial year (1631.5) shows

an increase when compared with the 2017/18 financial year (1584).

The table below indicates the total number sick leave days taken within the different

directorates:

Department 2017/18 2018/19

Municipal Manager 158 190

Corporate Services 286 298.5

Finance 119 118

Community Services 961 861

Technical Services 60 164

Total 1584 1631.5

Sick leave

Month LTI MT DIFR

Jul 0 0 0

Aug 0 0 0

Sept 0 0 0

Oct 0 0 0

Nov 0 0 0

Dec 0 0 0

Jan 1 0 0

Feb 1 0 0

Mar 0 0 0

Apr 0 0

May 0 0 0

Jun 0 0

July 0 0 0

Total 2 0 0

0

0.2

0.4

0.6

0.8

1

1.2

Jul

Au

gSe

pt

Oct

No

vD

ec

Jan

Feb

Mar

Ap

rM

ay Jun

July

Tota

l

DIFR

MT

LTI

177

4.2.3 SUSPENSIONS

Employees who fail to adhere to the code of conduct of the municipality will lead to their

employment, suspended.

No employees have been suspended as all matters were resolved before suspension.

4.2.4 HR POLICIES AND PLANS

uMshwathi Municipality is governed by numerous South African Labour Legislations and

Collective Agreements of the South African Local Government Bargaining Council. The

Municipality reviews and develops its policies in order to ensure alignment with current

legislation as well as the environmental needs and operations.

The table below shows the current adopted HR policies:

No Adopted Policy Adoption Date

STRATEGIC POLICIES

1 Human Resources Strategy 27 February 2019

2 Employment Equity Policy 30 May 2019

ON BOARDING POLICIES

3 Recruitment and Induction Policy 29 June 2016

4 Probationary Period Policy 7 December 2015

DEVELOPMENT POLICIES

4 Skills Development Policy 27 February 2019

5 Internal Bursary Policy 27 February 2019

6 External Bursary Policy 27 February 2019

7 Learnership Policy 29 June 2016

8 Experiential Learning Policy 29 June 2016

9 Acting in a higher / same level position Policy 27 February 2019

178

HR,POLICIES REVIEWED

The Municipality reviewed and developed the following Human Resources policies


10 Secondment Policy 7 December 2016

11 Individual Performance Management System ( IPMS) 7 December 2016

RETENTION POLICIES

12 Scarce and Critical Skills Policy

27 February 2019

MAINTENANCE POLICIES

13 Employee Wellness Policy 29 June 2016

14 Occupational Health and Safety Policy 29 June 2016

15 Occupational Health and Safety Practices and Procedures 29 June 2016

16 Occupational Health and Safety Plan 7 December 2015

17 Labour Relations Policy 7 December 2015

18 Leave Policy 27 February 2019

19 Job Evaluation Policy 27 February 2019

20 HIV / AIDS Policy 29 June 2016

21 Sexual Harassment Policy 29 June 2016

22 Travel and Subsistence Policy 29 June 2016

23 Subsidised Motor Vehicle Policy 29 June 2016

24 Substance Abuse Policy 29 June 2016

EXIT POLICIES

26 Termination of Service Policy 29 June 2016

179

REVIEWS

1 Skills Development Policy 27 February 2019

2 Internal Bursary Policy 27 February 2019

3 Employment Equity Policy 30 May 2019

4.3 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

Section 68(1) of the MSA states that a municipality must develop its human resource

capacity to a level that enables it to perform its functions and exercise its powers in an

economical, effective, efficient and accountable way. For this purpose the human

resource capacity of a municipality must comply with the Skills Development Act (SDA),

1998 (Act No. 81 of 1998), and the Skills Development Levies Act, 20 1999 (Act No. 28

of 1999).

4.3.1 SKILLS DEVELOPMENT AND TRAINING

INTERNAL TRAINING PROGRAMS DURING THE 2018/19 FINANCIAL YEARS

uMshwathi Municipality is committed in fulfilling the purpose of the Skills Development

Act 97 of 1998 by using the Municipality as an active learning environment for both its

employees and the unemployed members of its Community. The Municipality

recognizes the importance of investing in its human capital through prudently planned

skills development initiatives and activities.

Skills Audits are conducted on an annual basis with a view to identifying the skills needs

within the Municipality in order to develop the workplace and to address the skills and

competency needs of its employees and Councillors, some information is incorporated

in the HR strategy.

The Municipality submitted the Workplace Skills Plan (WSP) and Annual Training

Report timeously to the Local Government SETA before 30 April 2019 as required by

law. The Municipality has therefore finalised the process of formulating the Workplace

Skills Plan for the 2019/20 financial year and the Annual Training Report for the 2018/19

financial year.

180

The budget that was allocated to training for the 2018/19 financial year was

R850 000.00. As at the end of the 2018/19 financial year 88% of the allocated amount

was utilized on training programs during the financial year.

4.3.2 THE FOLLOWING DIAGRAM ILLUSTRATES THE LEARNERSHIPS WHICH

WERE FUNDED BY THE LGSETA AND WERE ONGOING DURING THE 2018/19

FINANCIAL YEAR

SECTION 18.1 LEARNERSHIPS

NO EMPLOYEE LEARNERSHIP NUMBER OF EMPLOYEES

3 National Certificate in Municipal Integrated

Development Plan

28

SECTION 18.2 LEARNERSHIPS

4 National Certificate in Municipal Integrated

Development Plan

42

8 National Certificate: Landscaping

210

Skills development is able to support the Municipality to enhance achievement of the

Municipality’s Employment Equity agenda. Although skills development is aimed at

benefiting all employees, however the people of the designated groups (blacks, women,

and the disabled) should take preference in advancing their development. In line with

the Municipality’s Employment Equity targets as this will be addressing the imbalances

of the past through affirmative action. Skills development is linked to other human

resource processes and provides valuable information for recruitment and promotion

processes.

The Municipality is successfully creating a learning organisation and a learning

Community by placing significant value on the education, training and development of

its workforce, and by encouraging employees to grab appropriate learning opportunities

aimed at advancing their skills and competency levels.

181

4.3.3 THE FOLLOWING TABLE ILLUSTRATES THE INTERNAL TRAINING

INTERVENTIONS DURING THE 2018/19 FINANCIAL YEAR IN VARIOUS

OCCUPATIONAL CATEGORIES

NO

TRAINING INTERVENTIONS

TOTAL

EMPLOYEES

TRAINED

1 CPMD 2

2 Code 10 learner and drivers training 8

3 Certificate: Municipal IDP 3

4 Safe Work Procedure Manual 209

5 Hearing and Loss Prevention 209

6 Job Description Writing 30

7 Leadership development 28

8 Road & Interpret maps & engineering drawings & water reticulation 6

9 Chainsaw maintenance and handling 5

Skills matrix

4.3.3 SKILLS DEVELOPMENT - BUDGET ALLOCATION

The budget that was allocated to training for the 2018/19 financial year was R

850,000.00. As at the end of the 2018/19 financial year 88% of the allocated amount

was utilized on training programs during the financial year.

Total personnel budget Total allocated Total spent % Spent

850 000 748 000 88%

Budget allocated and spent for skills development

182

LGSETA requires all municipalities to submit quarterly training reports with evidence of

attendance in order to ensure that actual training is taking place in terms of the skills

development plan submitted for the 2018/19 financial year.

4.4 COMPONENT D: MANAGING THE MUNICIPAL WORKFORCE EXPENDITURE

Section 66 of the MSA states that the accounting officer of a municipality must report to

the council on all expenditure incurred by the municipality on staff salaries, wages,

allowances and benefits. This is in line with the requirements of the Public Service

Regulations (2002), as well as National Treasury Budget and Reporting Regulations

SA22 and SA23.

4.4.1 PERSONNEL EXPENDITURE

The table below indicates the percentage of the municipal budget that was spent on

salaries and allowance for the past three financial years and that the municipality is well

beneath the national norm of between 35 to 40%:

Financial year

Total expenditure salary

and allowances

Total operating

expenditure Percentage

R’000 %

2017/18 31 537 251 81 290 409 38.80%

2018/19 32 013 158 87 507 971 36.58%

Personnel expenditure

Below is an analysis of the personnel expenditure for the year under review:

Description

2017/18 2018/19

Actual Actual

R

Councillors (Political office bearers plus other)

Salary 1 697 546 1 763 007

Data Card Allowance 32 400 32 400

Cell phone allowance 187 812 187 248

Travel allowance 571 849 287 787

Subtotal – Councillors 2 489 607 2 570 442

% increase/(decrease) 12% 3.25%

All municipal employees (excl. councillors)

183

Description

2017/18 2018/19

Actual Actual

R

Salary 21 777 194 24 541 254

Company contributions 4 536 452 5 175 401

Motor vehicle allowances 1 306 955 1 267 636

Housing benefits and allowances 207 144 182 791

Performance bonus 0

Overtime 1 219 899 846 791

Subtotal - All municipal employees (excl. councillors) 29 047 644 32 013 158

% increase/ (decrease) 15% 10.21%

Total municipality 31 537 251 34 583 600

% increase/(decrease) 15% 9.66%

Personnel expenditure

CHAPTER 5: FINANCIAL PERFORMANCE

COMPONENT A: STATEMENT 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 FINANCIAL SUMMARY

The table below indicates the summary of the financial performance for the 2018/19

financial year:

184

Table 5.1 Financial Performance 2018/19

Description

2017/18 2018/19 2018/19 Variance

Actual

Audited

outcome)

Origina

l

budget

Adjusted

budget Actual

Original

budget

Adjustment

s budget

R’000 %

Financial performance

Property rates 36,009 36,200 42,250 45,505 25.70% 7.70%

Service charges 2,151 2,070 2,250 2,403 16.09% 6.80%

Investment revenue 1,511 1,500 1,600 2,335 55.67% 45.93%

Transfers recognised -

operational 92,274 97,972 97,972 97,972 100.00% 100.00%

Other own revenue 13,496 21,300 21,725 14,005 (34.25%) (35.54%)

Total revenue (excluding

capital transfers and

contributions)

145,441 159,04

2 165,797

162,22

0 2.20% (2.16%)

Employee costs 64,229 64,577 67,438 66,780 3.41% (0.98%)

Remuneration of

councillors 9,436 9,900 9,800 9,741 (1.69%) (0.60%)

Depreciation & asset

impairment 12,622 13,500 14,000 13,439 (0.45%) (4.01%)

Finance charges 419 360 200 167 (53.61%) (16.50%)

Materials and bulk

purchases 0 0 0 0 0 0

Transfers and grants 0 0 0 0 0 0

185

Description

2017/18 2018/19 2018/19 Variance

Actual

Audited

outcome)

Origina

l

budget

Adjusted

budget Actual

Original

budget

Adjustment

s budget

R’000 %

Other expenditure 53,197 64,961 67,445 54,258 (16.48%) (19.56%)

Total expenditure 139,903

153,29

8 158,883

144,38

5 (5.81%) (9.12%)

Surplus/(Deficit) 5,538 5,744 6,914 17,835 210.50% 157.95%

Transfers recognised –

capital 39,016 27,098 27,098 27,098 100.00% 100.00%

Contributions recognised

capital & contributed

assets

0 0 0 0

Surplus/(Deficit) after

capital transfers &

contributions

44,554 32,842 34,012 44,933 36.82% 32.11%

Capital expenditure & funds sources

Capital expenditure


capital 39,016 27,098 27,098 27,098 100.00% 100.00%

Public contributions &

donations

Borrowing

186

Description

2017/18 2018/19 2018/19 Variance

Actual

Audited

outcome)

Origina

l

budget

Adjusted

budget Actual

Original

budget

Adjustment

s budget

R’000 %

Internally generated

funds 5.744 6.914 2,544 (55.71%) (63.21%)

Total sources of capital

funds 39,016 32.842 34,012 29,642 (9.75%) (16.55%)

Financial position

Total current assets 97,746 49,250 62,516

133,38

9 170.84% 113.37%

Total non-current assets 227,055

252,71

1 253,881

243,25

8 (3.74%) (4.18%)

Total current liabilities (9.989) (3,000) (3,000)

(17,351

) 478.37% 478.37%

Total non-current

liabilities (3,372) (2,288) (2,288) (2,925) 27.84% 27.84$

Community

wealth/Equity 311,440

296,67

3 311,109

356,37

1 20.12% 14.55%

Cash flows

Net cash from (used)

operating 46,041 42,515 49,237 54,455 28.08% 10.60%


investing (41,499)

(32,842

) (34,012)

(53,174

) 61.91% 56.34%

187

Description

2017/18 2018/19 2018/19 Variance

Actual

Audited

outcome)

Origina

l

budget

Adjusted

budget Actual

Original

budget

Adjustment

s budget

R’000 %


financing (4,268) (1,600) (900) (739) (53.81%) (17.89)

Cash/cash equivalents at

the beginning of the year 928 11,191 11,191 1,202 (89.26%) (89.26%)

Cash/cash equivalents at

the year end 1,202 19,264 25,516 1,744 (90.95%) (93.17%)

Variances are calculated by dividing the difference between actual and original/adjustments

budget by the actual

The table below shows a summary of performance against budgets:

Table 5.2 Performance against budgets

Financial

year

Revenue Operating expenditure

Budget Actual Diff.

%

Budget Actual Diff.

%

R’000 R’000

2017/18 182,627 184,459 1,832 1.00% 139,611 143,563 3,952 2.83%

2018/19 182,895 189,317 6,422 3.51% 148,883 144,385 (4,498) (3.02%)

The following graph indicates the various types of revenue items in the municipal

budget for 2018/19:

188

Revenue

The following graph indicates the various types of expenditure items in the municipal

budget for 2018/19:

Operating expenditure

189

5.1.1 REVENUE COLLECTION BY VOTE

The table below indicates the revenue collection performance by vote:

Table 5.3 Revenue by vote

Vote description

2017/1

8 2018/19 2018/19 Variance

Actual Original

budget

Adjuste

d

budget

Actual Original

budget

Adjust-

ments

budget

R’000 %

Vote 1 – Office of the

Municipal Manager 92,992 98,547 98,697 99,629 1.10% 0.94%

Vote 2 – Corporate

Services

Vote 3 – Community

Services 4,939 4,517.5 4,972.5 5,435 20.31% 9.30%

Vote 5 – Civil Engineering

Services 39,204 27,313 27,313 27,342 0.11% 0.11%

Vote 6 – Financial

Services 47,323

45,762.

5

51,912.

5 56,910 24.36% 9.63%

Total revenue by vote

184,45

8

176,14

0

182,89

5

189,31

6 7.48% 3.51%

Variances are calculated by dividing the difference between actual and

original/adjustments budget by the actual

190

5.1.2 REVENUE COLLECTION BY SOURCE

The table below indicates the revenue collection performance by source for the 2018/19

financial year:

Table 5.4 Revenue by source

Vote description

2017/1

8 2018/19 2018/19 Variance

Actual Original

budget

Adjuste

d

budget

Actual Original

budget

Adjust-

ments

budget

R’000 %

Property rates 36,009 36,200 42,250 45,505 25.70% 7.70

Property rates - penalties

& collection charges 0

0 0 0 0 0

Service charges -

electricity revenue 0

0 0 0 0 0

Service charges - water

revenue 0

0 0 0 0 0

Service charges -

sanitation revenue 0

0 0 0 0 0

Service charges - refuse

revenue 2,151 2,070 2,250 2,402 16.04% 6.76

Service charges - other 0 0 0 0 0 0

Rentals of facilities and

equipment 683 550 700 731 32.91% 4.43%

191

Vote description

2017/1

8 2018/19 2018/19 Variance

Actual Original

budget

Adjuste

d

budget

Actual Original

budget

Adjust-

ments

budget

R’000 %

Interest earned - external

investments 1,511 1,500 1,600 2,335 55.67% 45.94%

Interest earned -

outstanding debtors 9,733 8,000 8,000 9,045 13.06% 13.06%

Dividends received 0 0 0 0 0 0

Fines 28 72 42 45 (37.5%

) 7.14%

Licences and permits 0 0 0 0 0 0

Agency services 2,754 2,300 2,625 2,912 26.61% 10.93%


operational 92,274 97,972 97,972 97,972 0 0

Other revenue 297 378 358 440 16.40% 22.91%

Gains on disposal of PPE 0 0 0

833 100.00

%

100.00

%

Total revenue (excluding

capital transfers and

contributions)

145,44

0

149,04

2

155,79

7

162,22

0 8.84% 4.12%



192

5.1.3 OPERATIONAL SERVICES PERFORMANCE

The table below indicates the operational services performance for the 2018/19 financial

year:

Table 5.5 Operational service performance

Description

2017/1

8 2018/19 2018/19 Variance

Actual

(Audite

d

Outco

me)

Original

Budget

Adjust

ed

Budget

Actual Original

Budget

Adjust-

ments

Budge

t

R’000 %

Operating Cost

Water

Waste Water (Sanitation)

Electricity

Waste Management 1,319 1,880 1,880 1,891 0.59% 0.59%

Housing

Component A: sub-total 1.319 1,880 1,880 1,891 0.59% 0.59%

Roads and Stormwater 18,447 29,693 29,533 13,866 (53.30

%)

(53.05

%)

Transport

Component B: sub-total 18,447 29,693 29,533 13,866 (53.30

%)

(53.05

%)

193

Description

2017/1

8 2018/19 2018/19 Variance

Actual

(Audite

d

Outco

me)

Original

Budget

Adjust

ed

Budget

Actual Original

Budget

Adjust-

ments

Budge

t

R’000 %

Planning

Local Economic

Development 897 1,200 1,200 1,519 26.58%

26.58

%

Component C: sub-total 897 1,200 1,200 1,519 26.58% 26.58

%

Libraries 2,079 1,994 2,223 2,303 15.50% 3.60%

Social services &

community development 22,801 12,529 13,070 24,360 94.42%

86.37

%

Component D: sub-total 24,880 14,523 15,293 26,663 83.59% 74.34

%

Environmental Protection 266 1,360 1,260 976 (28.24

%)

(22.54

%)

Component E: sub-total 266 1.360 1,260 976 (28.24

%)

(22.54

%)

Traffic & licensing 5,395 5,188 5,950 6,524 25.75% 9.65%

Fire Serices and Disaster

Management 365 500 450 263

(47.40

%)

(41.56

%)

194

Description

2017/1

8 2018/19 2018/19 Variance

Actual

(Audite

d

Outco

me)

Original

Budget

Adjust

ed

Budget

Actual Original

Budget

Adjust-

ments

Budge

t

R’000 %

Component F: sub-total 5,760 5,688 6,400 6,787 19.32% 4.74%

Holiday Resorts and

Campsites

Swimming Pools,

Stadiums and Sport

Ground

Community halls,

facilities, Thusong centres 3,982 4,700 4,650 5,216 10.98%

12.17

%

Component G: sub-total 3,982 4,700 4,650 5.216 10.98% 12.17

%

Financial Services 26,016 27,437 27,866 27,919 1.76% 0.19%

Office of the MM 17,305 17,529 19,413 18,059 3.02% (6.97

%)

Administration (Council) 16,930 14,642 14,892 14,133 (3.48%) (5.10

%

Human Resources

(Corporate) 27,761 24,646 26,496 27,357 11.00% 3.25%

195

Description

2017/1

8 2018/19 2018/19 Variance

Actual

(Audite

d

Outco

me)

Original

Budget

Adjust

ed

Budget

Actual Original

Budget

Adjust-

ments

Budge

t

R’000 %

Component UMSHWATHI

MUNICIPALITY: sub-total 88,012 84,254 88,667 87,468 3.82% (1.35)

Total Expenditure 143,56

3 143,298

148,88

3

144,38

6 0.75%

(3.02

%)



5.2 FINANCIAL PERFORMANCE PER MUNICIPAL FUNCTION

The tables below show the financial performance according to municipal functions:

5.2.1 OFFICE OF THE MUNICIPAL MANAGER

Table 5.6 Financial Performance: Office of the Municipal Manager

Description

2017/18 2018/19

Actual Original

budget

Adjustm

ent

budget

Actual

Varianc

e to

budget

R’000 %

Total operational revenue 0 0 0 0 0

196

Description

2017/18 2018/19

Actual Original

budget

Adjustm

ent

budget

Actual

Varianc

e to

budget

R’000 %

Expenditure:

Employees 10,204 9,789 9,789 10,118 3.36%

Repairs and maintenance

Other 7,101 7,740 9,624 7,941 (17.49%

)

Total operational expenditure 17,305 17,529 19,413 18,059 (6.95%

%)

Net operational (service)

expenditure (17,305)

(17,529

) (19,413) (18,059)

(6.95%

%)

5.2.2 FINANCE

Table 5.7 Financial Performance: Finance

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance to

budget

R’000 %

Total operational revenue 47,322 45,762 51,912 56,910 9.63%

Expenditure:

Employees 8.239 8,132 8,251 8,008 (2,95%)

197

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance to

budget

R’000 %


Other 17,777 19,305 19,615 19,911 1.51%

Total operational

expenditure 26,016 27,437 27,866 27,919 0.19%


expenditure 21,306 18,325 24,046 28,991 20.57%

5.2.3 ADMINISTRATION (COUNCIL)

Table 5.8 Finance Performance: Administration

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees 9,436 9,720 9,620 9,741 1.26%


Other 3,834 4,922 5,272 4,392 (16.69%)

198

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %

Total operational expenditure 13,270 14,642 14,892 14,133 (5.10%)


expenditure 79,039 83,355 83,805 84,700 1.07%

5.2.4 HUMAN RESOURCES (CORPORATE)

Table 5.9 Financial Performance: Human Resources

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees 10,237 9,991 10,941 11,147 1.88%


Other 17,524 14,655 15,555 16,211 4.22%

Total operational expenditure 27,761 24,646 26,496 27,358 3.25%


expenditure (27,761) (24,646) (26,496) (27,358)

199

5.2.5 HOLIDAY RESORTS AND CAMPSITES (N/A)

Table 5.10 Financial Performance: Holiday Resorts and Campsites

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %

Total operational revenue

Employees


Other

Total operational expenditure


expenditure

200

5.2.6 SWIMMING POOLS AND SPORT GROUNDS (N/A)

Table 5.11 Financial Performance: Swimming Pools and Sports Grounds

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees


Other



expenditure

201

5.2.7 COMMUNITY FACILITIES AND THUSONG CENTRES

Table 5.12 Financial Performance: Community Facilities and Thusong Centre

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %

Total operational revenue 683 620 750 853 13.73%

Expenditure:

Employees

Repairs and maintenance 3,982 4,700 4,650 5,216 12.17%

Other



expenditure (3.299) (4,080) (3,900) (4,363) 11.87%

202

5.2.8 TRAFFIC SERVICES AND LAW ENFORCEMENT

Table 5.13 Financial Performance: Traffic Service and Law Enforcement

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees 5,380 4,988 5,750 6,524 13.46%


Other 15 200 200 0 100%


Net operational -service

expenditure (2,614) (2,818) (3,285) (3,569) 8.65%

203

5.2.11 FIRE SERVICES AND DISASTER MANAGEMENT (COMMUNITY & SOCIAL)

Table 5.14 Fire Services and Disaster Management

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %

Total operational revenue 5 6 6 5 (16.67%)

Expenditure:

Employees 20,366 8,043 8,844 21,170 139.37%


Other 3,698 6,186 5,876 4,971 (15.40%)



expenditure (24,059) (14,223) (14,714) (26,136) (77.63%)

204

5.2.12 LIBRARIES

Table 5.15 Financial Performance: Libraries

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %

Total operational revenue 2 2 2 1 (50.00%)

Expenditure:

Employees 2.075 1,861 2,090 2,229 6.65%


Other 4 133 133 74 (44.36%)



expenditure (2,077) (1,726) (1,955 (2.302) 17.75%

205

5.2.13 LED (Included in 5.2.11)

Table 5.16 Financial Performance: LED

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees


Other



expenditure

206

5.2.14 ROAD TRANSPORT

Table 5.17 Financial Performance: Road Transport

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %

Total operational revenue 188 215 215 259 20.47%

Expenditure:

Employees 7,729 21,953 21,953 7,586 (65.44%)


Other 10,718 7,740 7,040 6,280 (10.80%)


Net operational -service

expenditure (18,259) 29.478 (28,778) (13,607) (52.72%)

207

5.2.15 ENVIRONMENTAL PROTECTION

Table 5.18 Financial Performance: Environmental Protection

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees

Repairs and maintenance 146 1,210 1,110 871 (21.53%)

Other 120 150 150 105 (30.00%)

Total operational expenditure 266 1,360 1,260 976 (22.54%)


expenditure (266) (1,360) (1,260) (976) (22.54%)

208

5.2.16 ELECTRICITY (N/A)

Table 5.19 Financial Performance: Waste Management

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees

Repairs and Maintenance

Other



expenditure

209

5.2.17 WATER (N/A)

Table 5.20 Financial Performance: Water

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees

Repairs and Maintenance

Other



expenditure

210

5.2.18 WASTE WATER MANAGEMENT (N/A)

Table 5.21 Financial Performance: Waste Water Management

Description

2017/18 2018/19

Actual Original

budget

Adjustment

budget Actual

Variance

to

budget

R’000 %


Expenditure:

Employees


Other



expenditure

5.2.19 WASTE MANAGEMENT

Table 5.21 Financial Performance: Waste Management

Description

Actual Original

budget

Adjustment

budget Actual

Variance

to budget

R’000 %

Total operational revenue 2,151 2,070 2,250 2.402 6.76%

Expenditure:

Employees

211

Description

Actual Original

budget

Adjustment

budget Actual

Variance

to budget

R’000 %


Other 1,319 1,880 1,880 1,891 (0.59%)

Total operational

expenditure 1,319 1,880 1,880 1,891 (0.59%)


expenditure 832 190 370 511 38.12%

212

5.3 GRANTS

5.3.1 GRANT PERFORMANCE

The table below indicates the grant performance for the 2018/19 financial year:

Table 5.22 Grant Performance for 2018/19

Description

2017/1

8 2018/19

2018/19

Variance

Actual Budge

t

Adjust

-

ments

budge

t

Actual

Origin

al

budge

t

Adjust

-

ments

budge

t

R’000 %

Operating and capital transfers and grants

National Government:

Equitable share 87,377 91,82

0

91,82

0

91,82

0 0 0

Municipal Systems

Improvement 0 0 0 0 0 0

Expanded Public Works

Programme 2,065 1,471 1,471 1,471 0 0

Finance Management Grant 1,900 1,970 1,970 1,970 0 0

Provincial Government:

Library Grant 932 2,711 2,711 2,711 0 0

Other grant providers:

213

Description

2017/1

8 2018/19

2018/19

Variance

Actual Budge

t

Adjust

-

ments

budge

t

Actual

Origin

al

budge

t

Adjust

-

ments

budge

t

R’000 %

Total Operating Transfers And

Grants 92,274

97,97

2

97,97

2

97,97

2 0 0

5.3.2 CONDITIONAL GRANTS

The performance in the spending of conditional grants is summarised as follows:

Table 5.23 Conditional grant (excl. MIG)

Details

Budget

Adjust-

ments

budget

Actual

Variance

Budg

et

Adjustmen

ts budget

R’000 %

Financial Management Grant (FMG) 1,970 1,970 1,970 0 0.00

Municipal Systems Improvement

Grant 0 0 0

0 0.00

Municipal Infrastructure Grant (MIG) 27,098 27,098 27,098 0 0.00

Integrated National Electrification

Programme 10,000 10,000 10,000

0 0.00

Expanded Public Works

Program(EPWP) 1,471 1,471 1,471

0 0.00

214

Details

Budget

Adjust-

ments

budget

Actual

Variance

Budg

et

Adjustmen

ts budget

R’000 %

Library Grant 2,711 2,711 2,711 0 0.00

Equitable share 91,820 91,820 91,820 0 0.00

Total 135,07

0

135,07

0

135,07

0 0 0.00


original/adjustments budget by the actual.

5.3.3 LEVEL OF RELIANCE ON GRANTS & SUBSIDIES

Table 5.24 Reliance on grants and subsidies

Financial year

Total grants

and subsidies

received

Total

operating

revenue

Percentage

R’000 %

2017/18 92,274 145,443 63.44%

2018/19 97,972 162,219 60.40%

The following graph indicates the municipality’s reliance on grants for the last two

financial years:

Reliance on grants

215

5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

5.4.1 LIQUIDITY RATIO

Table 5.25 Liquidity financial ratio

Description Basis of calculation

2017/18 2018/19

Audited Outcome Audited outcome

Current ratio

Current

assets/current

liabilities

9.78 7.69

5.4.2 BORROWING MANAGEMENT

Table 5.26 Borrowing Management


2017/18 2018/19

Pre-audit outcome Audited outcome

Capital charges to

operating

expenditure

Interest & principal

paid /operating

expenditure

0.03 0.63

5.4.3 EMPLOYEE COSTS

Table 5.27 Employee Costs


2017/18 2018/19


Employee costs Employee

costs/Total

53.86 53.00

216


2017/18 2018/19


Operational

expenditure

5.4.4 REPAIRS & MAINTENANCE

Table 5.28 Repairs and maintenance


2017/18 2018/19


Repairs &

maintenance

R&M/Operational

Expenditure 9.88 8.39

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

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

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

expenditures and surpluses. Component B deals with capital spending indicating where

the funding comes from and whether municipalities are able to spend the available

funding as planned. In this component it is important to indicate the different sources of

funding as well as how these funds are spend.

217

5.5 CAPITAL EXPENDITURE

5.5.1 CAPITAL EXPENDITURE BY NEW ASSETS PROGRAMME

Table 5.29 Capital Expenditure: New Assets Programme

Description

2017/18 2018/19

Audited

outcome

Original

Budget

Adjustment

Budget

Actual

Expenditure

R'000

Capital expenditure by Asset Class

Infrastructure – Total 15,644 18,800 13,270 15,158

Infrastructure: Road

transport – Total 14,368 18,200 13,270 15,138

Roads, Pavements &

Bridges 14,368 18,200 13,270 15,138

Storm water 0 0 0 0

Infrastructure: Electricity –

Total

1,276 600 0 20

Generation 0 0 0 0

Transmission &

Reticulation

0 0 0 0

Street Lighting 1,276 600 0 20

Infrastructure: Water - Total 0 0 0 0

Dams & Reservoirs 0 0 0 0

Water purification 0 0 0 0

218

Description

2017/18 2018/19

Audited

outcome

Original

Budget

Adjustment

Budget

Actual

Expenditure

R'000


Reticulation 0 0 0 0

Infrastructure: Sanitation -

Total

0 0 0 0

Reticulation 0 0 0 0

Sewerage purification 0 0 0 0

Infrastructure: Other - Total 0 0 0 0

Waste Management 0 0 0 0

Transportation 0 0 0 0

Gas 0 0 0 0

Other 0 0 0 0

Community – Total 19,400 9,500 16,200 12,283

Parks & gardens 0 0 0 0

Sports fields& stadia 10,149 2,000 6,500 5,199

Swimming pools 0 0 0 0

Community halls 2,121 1,500 3,880 2,892

Libraries 0 0 0 0

Recreational facilities 0 0 0 0

219

Description

2017/18 2018/19

Audited

outcome

Original

Budget

Adjustment

Budget

Actual

Expenditure

R'000


Fire, safety & emergency 0 0 0 0

Security and policing 0 0 0 0

Buses 1,326 1,000 3,240 1,400

Clinics 0 0 0 0

Museums & Art Galleries 0 0 0 0

Cemeteries 0 0 0 0

Social rental housing 0 0 0 0

Other 5,804 5,000 2,580 2,792

Capital expenditure by

Asset Class 0 0 0 0

Heritage assets - Total 0 0 0 0

Buildings 0 0 0 0

Other 0 0 0 0

Investment properties -

Total 0 0 0 0

Housing development 0 0 0 0

Other 0 0 0 0

Other assets 1,446 4,542 4,542 2,201

220

Description

2017/18 2018/19

Audited

outcome

Original

Budget

Adjustment

Budget

Actual

Expenditure

R'000


General vehicles 723 1,792 1,792

Specialised vehicles 0 0 0 0

Plant & equipment 180 750 750 170

Computers -

hardware/equipment 321 1,000 1,000 950

Furniture and other office

equipment 222 1,000 1,000 358

Abattoirs 0 0 0 0

Markets 0 0 0 0

Civic Land and Buildings 0 0 0 723

Other Buildings 0 0 0 0

Other Land 0 0 0 0

Surplus Assets -

(Investment or Inventory) 0 0 0 0

Other 0 0 0

Agricultural assets 0 0 0 0

List sub-class 0 0 0 0

Biological assets 0 0 0 0

221

Description

2017/18 2018/19

Audited

outcome

Original

Budget

Adjustment

Budget

Actual

Expenditure

R'000


List sub-class 0 0 0 0

Intangibles 533 0 0 0

Computers - software &

programming 533 0 0 0

Other (list sub-class) 0 0 0 0

Total Capital Expenditure

on new assets 37,023 32,842 34,012 29,642

Specialised vehicles 0 0 0 0

Refuse 0 0 0 0

Fire 0 0 0 0

Conservancy 0 0 0 0

Ambulances 0 0 0 0

5.6 SOURCES OF FINANCE

The table below indicates the capital expenditure by funding source for the 2018/19

financial year:

222

Table 5.30 Capital expenditure: Funding Source

Details

2017/1

8 2018/19 2018/19 Variance

Actual

Origina

l

budget

(OB)

Adjustmen

t budget Actual

Adjustmen

t to OB

variance

Actual to

OB

variance

R”000 %

Source of finance

External loans 0 0 0 0 0 0

Public contributions

and donations 0 0 0 0 0 0

Grants and

subsidies 37,023 27,098 27,098

27,09

8 0 0

Own funding 0 5.744 6,914 2,544 (55.71%)0 (63.21%

)

Total 22 376 26 473 26 823 15

890 0 0

223

5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS

Projects with the highest capital expenditure in 2018/19

Table 5.31 Capital Expenditure: 5 Largest Projects

Name of project

2018/19 Variance current year:

2018/19

Original

budget

Adjustme

nt budget

Actual

expenditu

re

Original

variance

Adjustme

nt

variance

R’000

L714 Access Road 6,000 6,000 7,242 20.70% 20.70%

Urban Sportsfield 0 4,640 3,734 100.00% (19.53%)

D1013 3,500 1,700 2,423 (30.77%) 42,53%

Sicolile Hall 1,500 2,730 2,091 39.40% (23.41%)

Estezi Creche 1,500 1,100 1,930 28.66% 75.46%

224

5.8 MUNICIPAL INFRASTRUCTURE GRANT (MIG)

Table 5.32 Municipal Infrastructure Grant (MIG)

Municipal Infrastructure Grant (MIG)* Expenditure 2018/19 on Service backlogs

Details

Budget Adjustment

Budget Actual

Variance

Budget Adjustment

Budget

R'000 %

Infrastructure – Water 0 0 0 0 0

Reticulation 0 0 0 0 0

Water purification 0 0 0 0 0

Infrastructure – Sanitation 0 0 0 0 0


Sewerage purification 0 0 0 0 0

Infrastructure – Roads 18,800 13,270 15,138 (19.48%) 14.08%

Infrastructure - Electricity 0 0 0 0 0


Other Specify: 9,500 16,200 12,283 29.30% (24.18%)

Sports Fields 2,000 6,500 5,199 159.95% (20.02%)

Halls 1,500 3,880 2,892 92.80% (25.46%)

Taxi rank 1,000 3,240 1,400 40.00% (56.79%)

Creches 5,000 2,580 2,792 (44.16%) 8.22%

Total 37,800 29,470 27,421 0 0

225

Municipal Infrastructure Grant (MIG)* Expenditure 2018/19 on Service backlogs

Details

Budget Adjustment

Budget Actual

Variance

Budget Adjustment

Budget

R'000 %

* MIG is a government grant program designed to fund a reduction in service

backlogs, mainly: Water; Sanitation; Roads; Electricity. Expenditure on new, upgraded

and renewed infrastructure. Variances are calculated by dividing the difference

between actual and original/adjustments budget by the actual.

COMPONENT C: CASH FLOW MANAGEMNET AND INVESTMENTS

5.9 CASH FLOW

Table 5.33 Cash Flow

Description

2017/18 2018/19

Audited

outcome

Original

budget

Adjusted

budget Actual

R’000

Cash flow from operating activities

Receipts

Ratepayers and other 40,106 0 0 45,166

Government 0 operating 92,274 0 0 97,972

Government 0 capital 39,016 0 0 27,098

Interest 1,511 0 0 2,335

226

Description

2017/18 2018/19

Audited

outcome

Original

budget

Adjusted

budget Actual

R’000

Dividends 0 0 0 0

Payments

Suppliers and employees (126,446) 0 0 (117,949)

Finance charges (419) 0 0 (167)

Transfers and Grants 0 0

Net cash from/-used operating activities 46,042 0 0 54,454

Cash flow from investing activities

Receipts

Proceeds on disposal of PPE 0 0 0 0

Decrease -Increase in non-current debtors 0 0 0 0

Decrease -increase in other non-current receivables 0 0 0 0

Decrease -increase in non-current investments (4,479) 0 0 (23,532)

Payments

Capital assets (37,021) 0 0 (29,642)

Net cash from/-used investing activities (41,4499) 0 0 (53,174)

Cash flows from financing activities

Receipts

Short term loans 0 0 0 0

227

Description

2017/18 2018/19

Audited

outcome

Original

budget

Adjusted

budget Actual

R’000

Borrowing long term/refinancing 0 0 0 0

Increase -decrease in consumer deposits 0 0 0 0

Payments

Repayment of borrowing (4,267) 0 0 (739)

Net cash from/-used financing activities (4,267) 0 0 (739)

Net increase/-decrease in cash held 275 0 0 541

Cash/cash equivalents at the year begin 928 0 0 1,203

Net increase on cash/cash equivalents at the year-end 1,203 0 0 1,744

Source: MBRR SA7

228

5.10 GROSS OUTSTANDING DEBTORS PER SERVICE

Table 5.34 Gross outstanding debtors per service

Financial year

Rates

Trading

services

Economic

services

Housing

rentals Other Total (Electricity

and

water)

(Sanitation

and

refuse)

R’000

2017/18 62,507 0 3,749 0 41,809 108,065

2018/19 98.388 0 7,388 0 19,112 124,888

Difference 35,881 0 3.639 0 (22,697) 16,823

5.11 TOTAL DEBTORS AGE ANALYSIS

Table 5.35 Service debtors age analysis

Financial year

Less than

30 days

Between

30-60 days

Between

60-90 days

More than

90 days Total

R’000

2017/18 4,388 2,876 2,039 98,762 108,065

2018/19 4,843 3,009 2,096 114,940 124,888

Note: Figures exclude provision for bad debt

229

5.12 BORROWING AND INVESTMENTS

5.12.1 ACTUAL BORROWINGS

Table 5.36 Actual Borrowings

Instrument

2017/18 2018/19

R’000

Long-term loans (annuity/reducing balance) 1,631 892

Long-term loans (non-annuity) 0 0

Local registered stock 0 0

Instalment credit 0 0

Financial leases 0 0

PPP liabilities 0 0

Finance granted by Cap equipment supplier 0 0

Marketable bonds 0 0

Non-marketable bonds 0 0

Bankers acceptances 0 0

Financial derivatives 0 0

Other securities 0 0

Municipality total 584 78

The following graph shows the municipal actual borrowings for the past two years:

230

5.12.2 MUNICIPAL INVESTMENTS

Table 5.37 Municipal Investments

Investment* type

2017/18 2018/19

R’000

Securities - National government 0 0

Listed corporate bonds 0 0

Deposits – Bank 9,988 33,521

Deposits - Public investment commissioners 0 0

Deposits - Corporation for public deposits 0 0

Bankers acceptance certificates 0 0

Negotiable certificates of deposit – Banks 0 0

Guaranteed endowment policies (sinking) 0 0

Repurchase agreements – Banks 0 0

Municipal bonds 0 0

Other 0 0

Municipality total 1 872 54

231

The table below indicates the declaration of loans and grants made by the municipality


Table 5.38 Declaration of loans and grants

All organisations or persons in

receipt of loans/grants provided by

the municipality

Nature of

project

Conditions

attached

to funding

Value

2018/19

Total

amount

committed

over

previous

and future

years

R’000 R’000

N/A

Total: 165 0

COMPONENT D: OTHER FINANCIAL MATTERS

5.13 SUPPLY CHAIN MANAGEMENT

The municipality does have policies and practices that comply with the guidelines set by

the Supply Chain Management regulations of 2005.

232

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