Page | 301 ANNUAL PERFOMANCE REPORT 2012 / 2013 KPA2 : SERVICE DELIVERY Strategic Objective (IDP) Indicator of Performance Annual Target Measurement Source Baseline Targets Snapshot Analysis Reasons for Variance General Comments / Corrective Action Annual Target June 2012 Actual Annual Target June 2013 Actual Working to improve levels of provision of community facilities by Facilitating services in relation Parks and recreation services Revival of Parks in DXX & Indwe /Evaluation /assessment report / Revival programme of DXX & Indwe Parks (R 73 000) Ward 14, 16 Evaluation & assessment / Revive existing parks (DXX & Indwe) Evaluation /assessment report / Revival programme of DXX & Indwe Parks /progress reporting Parks in DXX & Indwe are in bad state/limited funding Evaluation & assessment / Revive existing parks (DXX & Indwe) Revival of Parks in DXX & Indwe /Evaluation /assessment report / Revival programme of DXX & Indwe Parks Partially Achieved Not done due to budget constraints/ project budget for in 12/13 FY. The park was built, but damaged but the community who were not happy with the material used.
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ANNUAL PERFOMANCE REPORT 2012 / 2013 KPA2 : SERVICE DELIVERY … · 2016. 3. 28. · Annual Target June 2013 Actual Ensuring appropriate organizational design that conforms /fits
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P a g e | 301
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA2 : SERVICE DELIVERY
Strategic Objective (IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Working to improve levels of provision of community facilities by Facilitating services in relation Parks and recreation services
Revival of Parks in DXX & Indwe /Evaluation /assessment report / Revival programme of DXX & Indwe Parks (R 73 000) Ward 14, 16
Evaluation & assessment / Revive existing parks (DXX & Indwe)
Evaluation /assessment report / Revival programme of DXX & Indwe Parks /progress reporting
Parks in DXX & Indwe are in bad state/limited funding
Evaluation & assessment / Revive existing parks (DXX & Indwe)
Revival of Parks in DXX & Indwe /Evaluation /assessment report / Revival programme of DXX & Indwe Parks
Partially Achieved
Not done due to budget constraints/ project budget for in 12/13 FY.
The park was built, but damaged but the community who were not happy with the material used.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target June 2012
Actual Annual Target
June 2013 Actual
Ensuring appropriate organizational design that conforms /fits in with roles, powers and functions assigned to municipalities by annual review and Design of the organizational structure
Organizational Structure reworked & reviewed
ELM
Organizational Structure developed (1)
Approved organizational structure
Existing structure reviewed annually in line
with IDP
Inputs and consultation/progress reports
Draft prepared by June 2012 ELM were still awaiting analysis and evaluation of the institutions organisational requirements from DPLG and SALGA follow up letter has written & forwarded requesting a progress report
Development of an Organizational Structure.
Achieved
A complete
analysis and evaluation of the institutions organisational requirements will be done by DPLG and SALGA in conjunction with ELM
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Job Descriptions / TASK Benchmarking
Analysis of existing job descriptions / Review/update/ develop new job descriptions & review job specifications / Job Descriptions (in line with reviewed organogram /benchmark post on TASK
ELM
Analysis of existing job descriptions / Review/update/ develop new Job Descriptions (in line with reviewed organogram /benchmark post on TASK
Job specifications List of Job descriptions aligned to organogram
All JD`s (specs /
descriptions current TASK
evaluation results
implemented/ outdated JD`s /new post will
have to be identified
Provision of list of JD specs identified outdated /Plan to commence with development of JD`s outstanding
Continuation & target
achievement is dependent
on completion of
the organogram still awaiting analysis &
evaluation of the
institutions organisationa
l requirements from DPLG and SALGA
so as to continue with
Analysis of existing job descriptions / Review/update/ develop new Job Descriptions (in line with reviewed organogram /benchmark post on TASK
Continuation & target
achievement is dependent
on completion of
the organogram still awaiting analysis &
evaluation of the
institutions organisationa
l requirements from DPLG and SALGA
so as to continue with
New Target /suggested
that the target
milestones may be
amended as there is
dependence on SALGA & DPLG
/No dedicated funding
allocated
Was not a target during the 2012/2013. Provision made for 2013/2014 FY
P a g e | 304
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Focusing on skill development / HR Staff development/ Capacitated staff within identified areas
Adopted WSP & 80% of training budget spent on implementation of WSP (R 497 277.00)
ELM
Approved WSP and Implementation Reports & 80% of training budget spent on WSP implementation (80% R 397 821 .60)
Approved WSP and Implementation Reports Skills Monitoring Reports
Compliance /
Developed annually
Implementation Reports (training received ) &report on % percentage of budget expenditure on training implementation
Expenditure of WSP budget amounts to R
764 580 – 80% of Training
budget spent on WSP
Implementation .
Approved WSP and Implementation Reports & 80% of training budget spent on WSP implementation (80% R 397 821 .60)
Achieved
Percentage % of WSP budget expenditure to be determined and monitored
R750K spent on trainning during 2012/2013
P a g e | 305
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments / Corrective
Action Annual Target June 2012
Actual Annual Target
June 2013 Actual
Developing & implementing an appropriate & Effective Performance Management system (Institutional PMS)
Reviewed and updated PMS Policy Performance Management institutionally applied as per PMS policy and roll-out plan
ELM
Plan & report on progress with review of PMS Policy & framework /progress with PMS to be roll out to levels below s57 managers
Report on progress with roll out to Levels below s57
In planning phase PMS
Framework still to be reviewed with other policies
Review of PMS Policy & framework /progress with PMS to be roll out to levels below s57 managers
Partially Achieved.
PMS framework
was reviewed, but has not yet been cascaded down to levels below s57 managers
P a g e | 306
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments /
Corrective Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Effective administration through application Document Management System
Documents effectively maintained
ELM
100% reports on implementation
Quarterly systems report (manual document management system functional)
Reporting Quarterly
Quarterly reports on implementation
Not fully Achieved – in progress
Service provider (African
Networks) to be
implementing training of Electronic Document
Management System
Quarterly reports on implementation
Partially Achieved.
Manual document management system functional / electronic system not functional - New server in place /no access to Driver
Software on electronic DMS was installed and the relevant officials were trained.
P a g e | 307
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Improving communication : Local Labour Forum
LLF functioning and reporting as per revised ToR
ELM
100% Quarterly LLF Meetings /reports
Revised TOR Quarterly Reports to Standing Committee
Established LLF
Quarterly LLF Meetings /reports
Only 2 of the 4 meetings achieved 1 on Q1 and 1 in Q 2 meeting sat on 12-1-12 Q 3 no meetings sat Q4 no meeting
100% Quarterly LLF Meetings /reports
Two meetings were held under the year under review.
Ongoing
process
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Working towards employment equity : Employment Equity - ensuring the implementation of moral regeneration programmes
Management and oversight of Employment Equity and application of plan and achievement of targets. 70% achievement of EE in first 3 levels of management (Top Management /Senior Management & Professionally qualified & experienced specialist & mid management) ELM
70% Achievement of EE target in the first three levels (Top Management /Senior Management & Professionally qualified & experienced specialist & mid management)
EE Plan / EE Quarterly information reports/appointment statistics
Updated annually
Scarcity of skills
challenges Equity
achieved in top 3
structures
Achievement of EE target ; (Top Management /Senior Management & Professionally qualified & experienced specialist & mid management)
Compliance with first 3 levels ;Top Management: - 1 BM : Senior Management: 2 BF's 1 WF 3 BM's : Professionally qualified and experienced specialists and mid management: 1 WM, 3 BM's and 4 BF's
Achievement of EE target;(Top Management /Senior Management & Professionally qualified & experienced specialist & mid management)
Compliance with first 3 levels achieved Statistics updated as and when staff movements occur Top Management 1 BM Senior Management3 BM ,2 BF /1 WM and 1 CM Professional qualified & experienced specialist & mid management 10 BM , 7 BF, 1 WF,2 WM
P a g e | 309
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
To improve organisational development
Coordinate the review of municipal policies & bylaws
Coordinate review of policies and by-laws
Evaluate the work done and compile a report
Notify all departments
to submit their policies for review; Arrange a
workshop for all
councillors, management and unions
for review of policies;
Consult with the LLF on
the reviewed policies
Review 51 policies
Progress slow progress / assistance sought from DLG&TA in a MISA meeting and no response has been received. Follow up letter sent to SALGA & DLG & TA
Coordinate review of policies and by-laws
14 policies have been reviewed and was done with the assistance of the Chris Hani District Municipality.
The following policies were
reviewed and adopted by Council in May 2013: Recruitment &
Occupational Health & Safety Policy. Overtime Policy.
Promotion, Demotion & Transfer Policy. Records Management
Policy. Rates Policy. Credit Control Policy.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance General Comments / Corrective Action
Annual Target
June 2012
Actual
Annual Target
June 2013 Actual
Focusing on skills development
Develop a Workplace Skills Plan Appointment of interns
Development of Workplace Skills Plan
Monitor the implementation of training in terms of the approved WSP Appointment of interns
Training of councillors and officials
Recruit interns
across all departments where there
is a need
Approved Workplace Skills Plan 8 interns appointed
Achieved
· Eleven Clerks and one officer
attended Technical Report Writing and Minute taking with Motontech from 06th to 08th of February 2013 and others from 13th to 15th March 2013. · Roads and Storm water Technician attended a course on Fundamentals of Procurement and Tendering for Construction Contracts with Joshua West from 06th to 07th of February 2013. IT Technician is doing a one year programme in MCITP: Enterprise Administrator. (MCSE 2008) with CCS IT Training. • Personnel Clerk and OHS Coordinator are doing One Year Programme for OHS Training with UNISA • Two Councillors and One Official (HIV/AIDS Coordinator) are attending Advanced Certificate in Local Governance Law and Administration with University of Fort Hare • Three Councillors without Grade 12 without Grade 12 are attending a Certificate in Public Administration for Community Services • Three Councillors and six officials are attending Certificate in Local Government Law and Administration with University of Fort Hare • Two Finance Officials (BTO and Accountant Expenditure) are attending CPMD/MFMP with NMMU funded by LGSETA. • One Section 57 Manager (Community Services Manager) is attending CPMD/MFMP with University of Fort Hare which is funded by LGSETA. • Two Finance Officials (Asset Management Officer and Senior
P a g e | 311
Expenditure Officer) are attending CPMD University of Fort Hare. • Communications Officer is doing Honours Degree with the University of South Africa • The Housing and Estate Officer is doing a Degree in Development Studies with University of South Africa 8 interns were appointed: 4 – Finance Dept 2 – Corporate Services 1 – Internal Audit 1 – LED Trainee No new Interns were appointed during this period. The contract of the LED trainee seconded by the Dept of Local Government was renewed and a new business plan was signed.
P a g e | 312
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Compliance with Occupational Health & Safety regulations
Ensure a functional Health & Safety Committee
Monitor compliance with Occupational Health and Safety
legislation
Submit reports on compliance with Occupational Health & Safety regulations
Appoint Safety reps
in all departments; Train safety reps; Safety
reps to report to the
OHS Committee;
OHS Committee
to make inspections
on a monthly basis and compile a
report;
4 reports of the Occupational Health & Safety Committee
4 reports of the Occupational Health & Safety Committee
Not Achieved
Difficulty is
experienced in
coordinating the
members.
OHS inspections by the OHS Committee are scheduled to take place in all workstations on the 6, 7 & 8 August 2013 and the inspection report will be tabled to the Standing Committee.
P a g e | 313
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Improve communication with internal stakeholders
Improvement of communication with the Local Labour Forum
4 reports on functioning of the LLF
Submit all relevant items for discussion by LLF; Obtain items for discussion from unions; Ensure compliance with collective agreements; Nomination of LLF chairperson.
No Local Labour Forum meeting has been held during this period. A meeting which was scheduled to take place on
the 9th July 2013 could not take place due to the unavailability of members.
Report on the LLF meeting held
Partially Achieved
Meetings cannot take place due to unavailability of the LLF members
2 Local Labour Forum meetings were held
P a g e | 314
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Ensure appropriate organisational design
Review the organisational structure and align it to IDP and Budget
Organogram approved by June 2013
Submissions made by departments on proposed organogram; Consult the proposal with LLF; Submit to Council for approval
1 Reviewed organisational structure
Achieved
The organogram for
2013/2014 has been reviewed, work shopped with the LLF members and adopted by Council on 30 May 2013
P a g e | 315
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Good governance and effective administration
Fill funded vacant positions
Filling of funded vacant positions
Complete the appointments and compile a report
Advertise vacant budgeted positions and fill them.
29 funded vacancies filled
Partially Achieved
The following positions
have been filled; Committee Clerk PMU Administrator Refuse tractor Driver Livestock Branding Assistants x 2 Driver for Technical Services. Posts were advertised.
P a g e | 316
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Effective administration of document management
Ensure proper records management
Develop a records management policy and procedure manual; Develop a file plan with reference numbers to be used by all departments; Establish a safe records and archives unit, including registry; Train all officials on the installed electronic document management system.
Report on the implementation of records management system
There are challenges
with the implementation
of the electronic Records
Management system.
4 reports on the functionality of records management
Achieved
A Records Management
Policy has been adopted by Council. A procedure manual has been developed for implementation. Challenges are still experienced with the implementation of the electronic Records Management system. The provincial Dept of Sport, Recreation, Arts & Culture has initiated a programme to assist the municipality with the Electronic Records Management System.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012
Actual
Annual Target
June 2013 Actual
Working towards employment equity
Ensure implementation of Employment Equity
Consider the targets in the EE Plan in the recruitment processes
Report on the implementation of the Employment Equity Plan
The EE plan in place. Next
step is implementation.
7 people from designated groups appointed in management posts in terms of the Employment Equity Plan
Achieved
The EE Plan for 2012/13 was not signed by the relevant parties and therefore not submitted to the EE Registry, this has resulted to non-compliance with EE legislation. A new EE Plan for 2013-2017 has been drafted and will be consulted with the LLF on 2nd May 2013
The Employment Equity Plan for the period 2013- 2017 has been adopted by Council for implementation. The targets set in the Plan will be considered in the recruitment processes
P a g e | 318
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 3: Municipal Transformation and institutional development
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Institutional meetings held in terms of legislative compliance
Ensure legislative compliance
Attendance of 11 departmental meetings, 12 management meetings, 11 EXCO meetings; 11 standing committee meetings and 4 Council meetings
Report on meetings held
Attendance of 11 departmental meetings, 12 management meetings, 11 EXCO meetings; 11 standing committee meetings and 4 Council meetings
Achieved
The municipality
complied with legislative requirements and met as per target. Council meets regularly as and when a need arise.
P a g e | 319
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Effective and efficient financial management
Ensure effective financial management
12 Reconciled Cashbooks
Monthly reconciliation of the cash book.
The cash book is reconciled monthly
12 Reconciled Cashbooks
Could close of the cash books correctly for the whole year
12 Reconciled Cashbooks.
Cashbooks have been close off
The cashbooks have been closed off.
Effective and efficient financial management
Ensure effective financial management
12 Sets of monthly S71 reports reported to PT and NT
Monthly S71 reports prepared , presented and uploaded.
Old format Monthly S71 prepared.
Did not performed
S71 reports were not prepared timeously and in correct format
12 Sets of monthly S71 reports reported to PT and NT
The section 71 reports have been performed and upload to PT and NT
Section 71
reports have been prepared.
P a g e | 320
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective (IDP)
Indicator of Performance
Annual Target Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Effective and efficient financial management
Ensure effective financial management
1 MFMA S72
Report
Section 72 Report
None Section 72 Report
Could not developed a section 72 report
1 MFMA S72
Report
Section 72 Report has been developed and tabled to council
Effective financial management and budgeting
Ensure financial management and budgeting
Council approved Budget schedule of key deadlines
Approve budget deadlines - by Council.
None Council approved Budget schedule of key deadlines
Council approve Budget schedule of key deadline late
Council approved Budget schedule of key deadlines
Council has approve schedule of key deadlines by 31 August 2012
Effective financial management and budgeting
Ensure financial management and budgeting
1Council approved draft 2014 Budget by 31 March 2013
1 Draft budget approved by Council
Draft budget Draft budget Draft budget 1Council approved draft 2014 Budget by 31 March 2013
Council has approved the 2014 Draft budget
Council has approved
the 2014 Draft budget at Council meeting of March 2013
Effective financial management and budgeting
Ensure financial management and budgeting
1Council approved final 2014 Budget by 31 May 2013
1 Final Budget for 2014
Budget of 2013
1Council approved final 2012 Budget by 31 May 2011
1Council approved final 2012Budget by 31 May 2011, but it was not credible.
1Council approved final 2014 Budget by 31 May 2013
Council has approved the 2014 budget
Council has approved the 2014budget at Council meeting of May 2013
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective Action
Annual Target June 2012
Actual Annual Target
June 2013 Actual
Effective financial management and budgeting
Ensure financial management and budgeting
6 Meetings of Budget steering Committee
The no. of Budget Steering Committee meetings held.
The Budget process
taking place as planned.
To establish a budget steering committee
Established a budget steering
committee,, but it was
not functional
6 Meetings of Budget steering Committee
IDP and Budget steering committee met
IDP and Budget
steering committee sat before the draft and final budgets have been approved by council
P a g e | 322
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Effective financial management and budgeting
Ensure financial
management and budgeting
To review at least the SCM and Asset MNG policy
Reviewed SCM and Asset Mng
policy
Reviewed SCM and Asset Mng
policy
Reviewed all Finance policies
Could not be achieved
Reviewed SCM and Asset Mng
policy
SCM and Asset Mng policies have been reviewed and taken to council for approval
Effective and efficient asset management
Ensure effective and efficient asset management
processes and systems
Provide training to asset management staff
Asset Management
Officer to attend training
To provide training to Asset Management Officer by training institution
To provide training to finance staff
Could not provide
training as planned due
to budget constrains
Provide training to asset management staff
The Asset Management officer is attending training to meet competency level requirements
The Asset Management
Officer is attending training.
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
P a g e | 323
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Effective and efficient asset management
Ensure effective and efficient asset management
processes and systems
To perform half year asset count of loose and movable assets
Count sheets None To count loose and movable assets
Could not performed it due to staff
skill limitation
Half year asset count of loose and movable assets
The asset count and verification of assets have been performed.
The asset count and
verification of assets have been performed.
Effective and efficient asset management
Ensure effective and efficient asset management
processes and systems
Updated GRAP compliant register with AFS of 2013
GRAP compliant asset register
Asset Register
To developed a GRAP compliant Asset Register
Could not developed a fully GRAP compliant
asset register due
to skills shortage
An updated GRAP compliant register with AFS of 2013
GRAP compliant asset register has been developed and presented for auditing
Effective and efficient asset management
Ensure effective and efficient asset management
processes and systems
A new additions assets register
The new additions register is
maintained and updated
None A new additions assets register
The new additions register is maintained with all new assets purchase during 2013.
The new additions
register is maintained with all new assets purchase during 2013.
P a g e | 324
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets
Snapshot Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012
Actual
Annual Target
June 2013 Actual
Effective and efficient expenditure management
Ensure effective and
efficient expenditure
management
Salary control reconciliation with ledger vote
Reviewed and signed of salary
reconciliation
None Salary control reconciliation with ledger vote
The salary reconciliations has been performed.
The salary
reconciliations has been performed.
Effective and efficient expenditure management
Ensure effective and
efficient expenditure
management
12 Monthly PV02 reports to balance with creditors control vote
Reconciling outstanding creditors list
(PV02 Reports) to creditors
control ledger vote
None 12 Monthly PV02 reports to balance with creditors control vote
Everything possible is done to pay all creditors within 30 days.
Everything
possible is done to pay all creditors within 30 days.
Effective and efficient expenditure management
Ensure effective and
efficient expenditure
management
Monthly Reviewed and Signed off of complete monthly payment files
Ensure that all payment
vouchers are in payment files
None Monthly Reviewed and Signed off of complete monthly payment files
All payment voucher files were reviewed to ensure completeness of files.
All payment
voucher files were reviewed to ensure completeness of files.
P a g e | 325
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Effective and efficient ICT management
Ensure effective and efficient ICT management
To have a council resolution for MOU with USASSA - ICT Strategy.
Having an council adopted ICT Strategy.
Effective ICT management system not in place.
N/A N/A To have a council resolution for MOU with USASSA - ICT Strategy.
MOU with USASSA was approved by Council
Partially
achieved as only a draft ICT strategy was developed
Effective and efficient revenue management
Ensure effective and
efficient revenue collection
Improve revenue collection rate to 20 %.
Ensure that all consumers on the financial system are
billed.
15 % Revenue Collection
An annual target of 80%
A 15% collection rate has
been achieved
Improve revenue collection rate to 20 %
All consumers are billed. No progress on street naming to ensure proper addresses system to deliver accounts.
A revenue
collection rate of 22% has been achieved
P a g e | 326
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Effective and efficient revenue management
Ensure effective and
efficient revenue collection
Debtors data cleansing
Having a reliable, up to date Debtor's System - showing all current deptors accounts and related information.
Working with the available debtor's information as a base.
N/A N/A Debtors data cleansing
Debtors data cleansing project has ceased due to alleged claims of a service provider. Will be undertaken in 13/14.
Could not
performed data cleansing project due to a service provider claimed to have performed the task.
Effective and efficient revenue management
Ensure effective and
efficient revenue collection
A hall deposits register that reconcile to general ledger vote.
Maintain hall deposit register
None N/A N/A A hall deposits register that reconcile to general ledger vote.
The hall deposit registers are developed and maintained
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 4: Financial Management and Viability
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target June 2012
Actual Annual Target
June 2013 Actual
Effective and efficient revenue management
Ensure effective and
efficient revenue collection
12 Monthly reconciliation of billing system to general ledger votes
Billing system reconciling to general ledger
votes
3 Reconciliation reports
12 Monthly reconciliation of billing system to general ledger votes
12 Billings have been
performed but it did not
reconciled to GL votes
12 Monthly reconciliation of billing system to general ledger votes
The Billing system is reconciling to general ledger votes have been performed
Compliance to legislation
To ensure adherence to
legislation
1 Set of audited annual
financial statements
Having a complete set of audited Financial Statements by the end of the financial year.
AFS be prepared according to and in adherence to all relevant legislation.
1 Set of audited annual financial
statements
The 2012 AFS has been
submitted to AG on 25
September 20132
1 Set of audited annual
financial statements
The 2013 AFS has been submitted to AG on 31 Auguster 2013.
The 2013 AFS
has been submitted to AG within the correct legislative time frame.
Compliance to legislation
To ensure adherence to
legislation
Audit action plan for 2012 audit report
Reported progress on audit action
plan implementation
Report on progress Action plan implementation
To implement 100 % of audit action plan implementation.
56% progress on audit action
plan implementation
has been achieved
Audit action plan for 2012 audit report
56% progress on audit action
plan implementation
has been achieved
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performanc
e Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comment
s / Corrective
Action
Annual Target
June 2012 Actual
Annual Target June 2013
Actual
Stakeholder Consultation and community participation
Ensuring that the community participation programmes are planned, budgeted for, implemented, monitored and reported as per Community Participation Programme Public Participation Plan (R 1,5 Mil ) All Wards
16 Public Participation outreaches /develop schedule/programme/ outreaches in all 17 wards /report on Imbizo’s
Community Participation Programme
Community Participatio
n to be increased
Implementation (outreach /Imbizo’s) & reporting
Achieved. Participation outreachesin 17 wards x 2 visits – consultation budget and IDP. Public Participation Forum in ward 17. One public participation forum for all wards held in ward 6 – dealt with IDP projects – goals and implementation of IDP
16 Public Participation outreaches /develop schedule/programme/ outreaches in all 17 wards /report on Imbizo’s
Partially Achieved
All s57 managers are expected to attend outreach / Imbizo’s meetings
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Stakeholder Consultation and community participation
Maintenance of sound relationships with organized business and civil society All Wards
Mayoral business forum established /6 business forum meetings
Quarterly meetings / Reporting
business forum
established / meetings did
not take place
(6 business forum meetings meeting)/ reporting to council
Target not fully
Achieved 3 x Business
Forum meetings
held in :Lady Frere Dordrecht and Indwe- Mayor and EXCO met
with business
community. Ratepayers meeting with Mayor MM and EXCO
for Lady Frere
Mayoral business forum established /6 business forum meetings
6 business
forum meetings (3 in Q1 & 1 in Q2;1in Q3;1
in Q4)
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual Annual Target June 2013
Actual
Stakeholder Consultation and community participation
Ward Committee Structures functional & operating as
scheduled/All Wards
Ward Committee Structures functional & operating
Ward Committee participation in council : Support provision / Items from WC to be tabled at SC meetings / Reporting
Operating Ward Committee structures/Items from WC to be tabled at SC Meetings
Ward participation /Items from ward committee tabled at SC Meetings
Achieved. Ward Committee Induction and Training held – September 2011 – Monthly meetings and submission of reports by Ward Committees. Quarterly meeting in 2012 held with all ward committee members and CDW’s and ward councillors – co ordinate by Office of the Speaker.
Ward Committee Structures functional & operating
Partially Achieved
New Target
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Stakeholder Consultation and community participation
Ward Committee Structures functional & operating as scheduled/Induction & Training of councillors R 600 000& attendance of ward meetings R 2,040 000 (out of pocket expenses for ward councillors)
IDP : Compliance with Municipal legislation / Improving IDP processes & strengthening public participation
IDP reviewed and updated and inclusive of community participation outcomes. IDP Process Plan adopted
All Wards
Establish initial planning for the development of new 5 year IDP / Process Plan 100%
Reviewed and adopted IDP Process Plan (new 5 year Plan)
IDP reviewed annually
Implementation / Community and Department meetings as scheduled
Achieved Establish initial planning for the development of new 5 year IDP / Process Plan 100%
Achieved
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Organizational Strategic Plan review & aligned to reviewed IDP (new strategic plan /aligned to new IDP (new council )
Strategic Plan reviewed and updated & aligned to reviewed IDP by June 2012
All Wards
reviewed and update Strategic Plan by June 2012
Reviewed and adopted Strategic Plan aligned to reviewed IDP
Strategic Plan to be reviewed
Consult stakeholders/Strategic Planning sessions held /Strategic Plan developed
Achieved. Strategic Planning per department done. Strategic plan developed Strategic sessions per department held in Indwe
Reviewed and update Strategic Plan as per the IDP objectives.
Achieved
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Functioning Audit Unit to ensure a fully audited and legislatively compliant organization
Strategic management of audit unit to achieve clean audits received Audit reports Investor confidence improved Development of Risk Management Report
ELM
Report / Audit committee, Internal audit Programme, 2 meetings per quarter / Risk based Audit Plan & Audit Reports in place
Audit Report as scheduled Risk Management Report
Internal Auditor appointed and Audit Committee established (shared function)
Audit Reports & meetings & external auditor liaison (All managers to attend 2 meetings per quarter)
Achieved 2 months after target date Audit Committee functioning – new members interviewed and appointments made effective 30 August 2012.
Report / Audit committee, Internal audit Programme, 2 meetings per quarter / Risk based Audit Plan & Audit Reports in place
Achieved
Audit Chair attended quarterly meetings and presented Audit Committee report to Council IA – amendment to Organogram to allow for IA Manager post. MPAC committee appointed as sec 79 committee and training done in house – by SALGA and by DHLGTA – Terms of reference amended and adopted Oversight report done. Meeting a schedule monthly meetings adopted by Council.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Compliance with MFMA : S46 Performance Report (Financial component ) included co - ordinated service providers report (progress per service provider per tender awarded plus service providers progress and project payment progress
Submission of s46 Report to Council and National Treasury by 31 August Report to form part of Annual Report All departmental inputs
ELM
100% / 1st draft of s46 performance report to be completed /approved by MM & presented to the office of the AG by 31 August
Timeously submitted report Council resolution
Annually - Ongoing
s46 report /1st draft 31 August 2012 for AG Office / Process amendments as required by AG & Finalize by inclusion of 1st draft of the Annual report to be available to AG by 31 October 2012
Not required to be achieved by 30 June 2012 target set for 31 August 2012 nothwitstanding Not Achieved by 31 August / extension provided by AG to 20 Sept 2012
100% / 1st draft of s46 performance report to be completed /approved by MM & presented to the office of the AG by 31 August
Achieved
Draft Report was submitted to the AG.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Compliance with Municipal legislation /MFMA : Annual report ; Establishment of MPAC Committee / Workshop MPAC Committee / deliberate on Audit findings & AR/ Adoption of Oversight Report
Establishment of a Functional MPAC /workshop committee (if deemed necessary ) oversight committee established / Deliberation on AG outcomes & AR by MPAC / Oversight Committee/table & adoption of Oversight report
ELM
Oversight & final Annual Report Tabled to council for adoption/ 100%/ compliance reporting /submission
MPAC committee meetings /Adopted Oversight Report and Annual Report
AR adopted / Oversight /MPAC Committee established /report completed annually/ adopted
MPAC Committee workshopped if deemed necessary / MPAC Committee to deliberate on Audit findings 2 meetings
MPAC Committee established and workshopped Oversight assessment done by MPAC – 4 x meetings held – Lady Frere – Dordrecht – Indwe – Lady frère – Council workshopped and MPAC presented Oversight report and adopted 30 March 2012
Oversight & final Annual Report Tabled to council for adoption/ 100%/ compliance reporting /submission
Partially Achieved
MPAC AR implementation plan submitted to management for adoption.
Draft Report has been
submitted.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target Measurement
Source Baseline
Targets Snapshot Analysis
Reasons for Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual Annual Target June 2013
Actual
Institutional meetings held in manner required in terms of legislative compliance
Council Meetings held according to schedule
ELM
Provision of Agendas within 7 working days of Council Meeting / 4 council meetings held per quarter as scheduled/report on special council meetings held
Agendas provided to councillors within 7 working days of Council Meeting / 4 council meetings held per quarter as scheduled / Meeting Agenda and Minutes
Updated meeting schedules annually, and lack of cooperation from municipal officials re - implementation of resolutions timeously
1 council meeting held per quarter /Meeting Agenda delivered within 7 working days to councillors / Minutes of council meetings
Achieved Exco 5-12-11 & 4-11-11 Council calendar adopted for standing committee and council 7 meetings held (27/11/2011, 23/1/2012, 31/1/2012, 30/3/2012, 13/4/2012, 28/5/2012, 22/6/2012) Council agendas still not prepared 7 days before but progress made in planning and amending rules of order to achieve this.
Provision of Agendas within 7 working days of Council Meeting / 4 council meetings held per quarter as scheduled/report on special council meetings held
? Meetings over achieved. Variance of agenda items not delivered within 7 days -Beyond control CSM - Speaker and Mayor not available for agenda items - therefore timeframes affected. Focus not be on number of meetings but on implementation of resolutions
ANNUAL PERFOMANCE REPORT 2012 / 2013
P a g e | 338
KPA 5: Good Governance and Public Participation
Strategic Objective (IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline
Targets
Snapshot Analysis
Reasons for
Variance
General
Comment
s / Corrective Actio
n
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Institutional meetings held in manner required in terms of legislative compliance
Departmental Standing Committee Meetings held according to schedule
ELM
100% - attendance at Standing committee meetings held per quarter as scheduled
Attendance of Standing Committee meetings /schedule/minutes agendas
Standing Committee meetings attended to as scheduled
100% - attendance at Standing committee meetings held per quarter as scheduled
(Bi monthly ) 1 meetings held per quarter /Meeting Agenda and Minutes
Bi monthly standing SC meetings held Governance S/C 6-12-11 & 12-10-11 Infrastructure S/C 9-11-11 Finance S/C 19-10-11 Community Services S/C 25-10-11 & 6-12-11 & 40=-10-11 IPED S/C 11-10-11. Calendar of meetings adopted by council and implemented – each committee functioning and agendas and minutes kept and submitted to EXCO - Exco 5-12-11 & 4-11-11. Meetings are postponed due to Standing Committee Councillors not being available - no quorum/s.
?
P a g e | 339
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Institutional meetings held in manner required in terms of legislative compliance
? Management attempt to meet once weekly to ensure continuity and briefing /note evidence of dates will be required to validate evidence
P a g e | 340
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Updating and development of Municipal By-Laws
Strategic oversight to ensure By-Laws Analysis Report Implementation Strategy and plan to update By-laws
ELM
100% as per planned scheduled & by laws identified
Adopted By-Laws as per plan
By-Laws exist but require updating/ formulation
Develop /review By laws identified
By Laws submitted to SALGA and DPLGTA and assistance requested – matter still pended awaiting feedback
100% as per planned scheduled & by laws identified
? s57 Managers will be responsible with the assistance from DPLG & SALGA to Develop /review By laws identified in their respective Departments once DPLG & SALGA have completed the assessment
P a g e | 341
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target Measurement
Source Baseline
Targets Snapshot Analysis
Reasons for Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target June 2013
Actual
Effective Communication
Launch of Local Communication Forum
ELM
4 meetings of Local Communication Forum
Minutes of Forum Launch /attendance registers / minutes meetings
No Communication forum
1 Quarterly forum meetings
No communication forum launched
4 meetings of Local Communication Forum
Not Achieved
Generally there is a problem to get all departments to attend when asked to.
Going forward, CDW’s and ward committee secretaries will be involved. We intend to also involve IGR forum.
During 2013/2014 Communication strategy will be reviewed and presented for adoption.
P a g e | 342
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Enhancing Public Participation
No of Mayoral Outreach programmes held
Full implementation of the Public Participation Framework by 30 June 2013
4 To ensure maximum participation of stakeholders in the planning and service delivery implementation processes
Full implementation of the Public Participation Framework by 30 June 2013
Mayoral outreach convened
Achieved. Road shows were conducted for the presentation of the draft IDP and Budget 2013/2014
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Use of media as a
tool to inform local communities
about the municipal programs
and actives.
Number Talk Shows held
Organise Talk Show programmes on service delivery matters by 30 June 2013
Talk Show programmes for all municipal activities.
Radio talk show
Talk Show programmes for all municipal activities.
Talk Show programmes are conducted. Impact assessment of the programmes is conducted
Achieved.
Mayor presented the annual report for 11/12. Talk shows on IDP, Water, Mayoral Cup were done through Vukani Community Radio.
Training for Political office bearers and ward committees
Completed training for Political Office Bearers and Ward Committees
Number of training being conducted
Improve Public Participation
Number of training being conducted
Close programme and compile report
Achieved.
Training of councillor is on-going.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments / Corrective
Action Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Capacity building for
ward committees
Budget provision for out of pocket expenses.
4 quarterly meetings of Ward Committees convened by 30 June 2013
Number of Ward Committee Meetings attended
Provision for Ward Committee Out-of Pocket expenses
4 quarterly meetings of Ward Committees convened by 30 June 2013
4 meetings held
Achieved.
Meetings held at ward level. Reports were submitted.
Training Ward Committees
Capacitating of Ward Committees by 30 June 2013
Number of training conducted
Ward Committee
Capacitating of Ward Committees by 30 June 2013
Assess and compile report of training done
Achieved.
Secretaries of Ward Committees were trained on Report writing.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Implementation of the special programs
Number of wards profiled and submitted to the office of the SPU. Revived structure of people living with disabilities.
1 socio-economic profile for people with disabilities document submitted to council by June 2013. Revived and functional structure.
17 wards profiled. General meeting convened.
Revival of disabled structure and compilation of their database
1 socio-economic profile for people with disabilities document submitted to council by June 2013. Revived and functional structure.
Final document tabled to council by 30 June 2013. Program for the disabled tabled to council.
Achieved.
Report not submitted to Council
P a g e | 346
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Implementation of special programs
Field band project has been piloted at Indwe and Dordrecht
4 progress reports
Quarterly Progress reports on the implementation of programs.
Support of youth development programs
4 progress reports
4 progress report
Achieved.
Annual plan submitted. 4 progress report submitted.
Mayoral Cup Tournament
1 Mayoral Cup Tournament played by June 2013
Mayoral Cup Concept document.
Support of development in sport
1 Mayoral Cup Tournament played by June 2013
Cup finals played. Evaluation meeting held. Compilation of the report.
Achieved. Games were played and awards made.
P a g e | 347
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target June 2013
Actual
Implementation of special programs
A developed strategic plan
Strategic Plan to have been developed and tabled to council by June 2013
1 Support ELM Women’s Forum
Strategic Plan to have been developed and tabled to council by June 2013
Table the strategy to council for adoption.
A decision was made to start with training and induction.
Not achieved.
A revised youth development strategy
revised Youth Development strategy adopted by council by June 2013
1 Support of Youth Development Programs
revised Youth Development strategy adopted by council by June 2013
Table the reviewed strategy to council for adoption
Still to be discussed during the AGM.
Not achieved.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA 5: Good Governance and Public Participation
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets Snapshot
Analysis
Reasons for
Variance
General Comments
/ Corrective
Action
Annual Target
June 2012 Actual
Annual Target
June 2013 Actual
Branding of the Municipality and marketing
Communication and Marketing Strategy implemented
Full implementation of the Communication and Marketing Strategy by June 2013
Branding material procured. Functional municipal website.
Revision of the communication strategy such that it includes the marketing of the municipality
Full implementation of the Communication and Marketing Strategy by June 2013
Not Achieved.
Institutional bouorocracy impedes the plans and programs.
Not achieved.
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ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA5 : GOOD GOVERNANCE AND PUBLIC PARTICIPATION
Strategic Objective
(IDP)
Indicator of Performanc
e
Annual Target
Measurement Source
Baseline
Targets Snapshot Analysis
Reasons for
Variance
General Comments /
Corrective Action Annual Target June 2012
Actual Annual Target
June 2013
Actual
Mainstreaming of Special programmes into the municipal environment (Effective participation of designated groups in municipal development programmes )
Management, monitoring & oversight on implementation of projects for special programmes as per IDP/ SDBIP (related to women, elderly,youth & disabled) /youth development R300 000, Band project R 400 000, Mayoral Cup R 320 000, Women’s Forum revival R 150 000 ,Elderly R 60 000 , Wellness R 50 000 All Wards
Oversight on implementation of SPU Plans & Projects / monitoring effective participation of designated groups in municipal development programmes /Progress identified and implementation in terms of plan for SPU programmes (Mainstreaming )of HIV/Aids , Women, elderly and Youth
Special Programme Development Plans and Related Project Progress Reports Functioning Local Aids Committee Minutes of meetings, ELM Mainstreaming Strategy
No policy/strategy identified SPU programmes and implementation plans for SPU Programmes
Quarterly Progress reports participation of designated groups in municipal development programmes/Progress identified and implementation in terms of plan for SPU programmes (youth development plan)
Achieved. Meeting & updating Mayor/ Concept documents in place 16 days of Activism / Mayoral Cup - Plan Committee in place - presentations prepared to SC / Preparing Mayoral Indaba /The Field Band Experience
Oversight on implementation of SPU Plans & Projects / monitoring effective participation of designated groups in municipal development programmes
Achieved.
The municipality
run various training programmes for women, elderly, youth and disabled people. Many events for SPU’s were run and a lot of expenditure incurred on these programs. The municipality forged a partnership with Discovery Health for hosting wellness program for councillors, officials and community members.
P a g e | 350
ANNUAL PERFOMANCE REPORT 2012 / 2013
KPA5 : GOOD GOVERNANCE AND PUBLIC PARTICIPATION
Strategic Objective
(IDP)
Indicator of Performance
Annual Target
Measurement Source
Baseline Targets
Snapshot Analysis
Reasons for
Variance
General Comments / Corrective Action Annual
Target June 2012
Actual Annual Target
June 2013 Actual
Curb and reduce the spread of HIV/Aids by 2014 & to mainstream & implement internal Special programmes related to HIV /AIDS into the municipal environment with effective participation of designated groups in municipal programmes )
Management ,monitoring & oversight on implementation of projects for special programmes as per IDP/ SDBIP (related to HIV/AIDS )To curb and reduce the spread of HIV/Aids by
2014 :All Wards
Oversight on implementation of systems /structures to formally manage mainstreaming of HIV /AIDS programmes / monitoring effective participation of designated groups in municipal programmes /Report on Progress of Mainstreaming of HIV/Aids
TOR for Interdepartmental forum /nominated forum (IDF) representatives /literature reviews , Consultation with IDF & stakeholders/Meeting attendance & minutes / progress reports
HIV prevalence % unknown/ no established structures to drive HIV/AIDS
Develop TOR & Training of IDF
IDF established /IDF meetings: peer educators trained
Establish structures to formally manage mainstreaming of HIV /AIDS programmes
Achieved
Peer Educators
Committee was established during the year in review. Local HIV and Aids council is up and running. It is to be noted that funding of these programs needs to be addressed through proper budgeting.
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CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE
(PERFORMANCE REPORT PART II)
INTRODUCTION
The Organizational Development Section is a key transformation agent dealing with the
structure of the Municipality to ensure that it remains aligned to its strategy, job evaluation
process and change management philosophy. Organisational Development is placed as a
separate section in the Human Resources Department.
T 4.0.1
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL
* Divide the number of employees who have left the organisation within a year, by total number of employees who occupied posts at the beginning of the year
T 4.1.3
COMMENT ON VACANCIES AND TURNOVER:
P a g e | 354
ELM is undergoing an overview of municipal programs, roles and responsibilities, linking them
to departmental mandates and function. This is done in order to allocate appropriate human
resources so as to achieve service delivery targets.
The Human Resource Department has advertised a number of funded vacancies and these
will be filled as per the requirement of the municipality.
T 4.1.4
COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE
INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT
Note: MSA 2000 S67 requires municipalities to develop and adopt appropriate systems and
procedures to ensure fair; efficient; effective; and transparent personnel administration in
accordance with the Employment Equity Act 1998.
Workforce management is a core function of each line manager in ELM. In order to ensure
reasonable standardisation and consistency in the handling of the workforce, staff policies;
procedures; and conditions of service are developed at a central level and are then
implemented by line management.
Conditions of service of senior managers are based up on the regulations promulgated by the
Minister of Cooperative Governance and approved by Council.
Conditions of service of staff below senior management level are negotiated at a central level
by the National and Provincial divisions of the South African Local Government Bargaining
Council (SALGBC) and, where relevant, at a local level between management and the
representative unions SAMWU and IMATU.
In addition to the above, a wide range of policies, procedures and directives are approved by
relevant approval authorities after due consultation with stakeholders such as Council, the
Municipal Manager and Senior Management. Such policies, procedures and directives are then
circulated to all staff for implementation and compliance.
Policies, procedures and directives are revised as the need arises.
T 4.2.0
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4.2 POLICIES
HR Policies and Plans
Name of Policy Completed Reviewed % %
1 Affirmative Action 100.00 In review process
2 Attraction and Retention 100.00 In review process
3 Code of Conduct for employees 100.00 In review process
4 Delegations, Authorisation & Responsibility 100.00 In review process
5 Disciplinary Code and Procedures 100.00 In review process
6 Essential Services 0.00 In review process
7 Employee Assistance / Wellness 100.00 In review process
8 Employment Equity 100.00 In review process
9 Exit Management 100.00 In review process
10 Grievance Procedures 100.00 In review process
11 HIV/Aids 100.00 In review process
12 Human Resource and Development 80.00 In review process
13 Information Technology 100.00 In review process
14 Job Evaluation 100.00 In review process
15 Leave 100.00 In review process
16 Occupational Health and Safety 100.00 In review process
17 Official Housing 100.00 In review process
18 Travelling and Subsistence Allowance 100.00 In review process
19 Official transport to attend Funerals 100.00 In review process
20 Official Working Hours and Overtime 100.00 In review process
21 Organisational Rights 100.00 In review process
22 Payroll Deductions 100.00 In review process
23 Performance Management & Development 100.00 In review process
24 Recruitment, Selection and Appointments 100.00 In review process
25 Remuneration Scales and Allowances 100.00 In review process
26 Resettlement 0.00 In review process
27 Sexual Harassment 100.00 In review process
28 Skills Development 100.00 In review process
29 Smoking 100.00 In review process
30 Scarce Skills 100.00 In review process
31 Work Organisation 100.00 In review process
32 Uniforms and Protective Clothing 100.00 In review process
33 Other: 0.00
Use name of local policies if different from above and at any other HR policies not listed.
COMMENT ON WORKFORCE POLICY DEVELOPMENT:
ELM has a well-developed staff policy framework. The finalisation of the Human Resource
Development Policy will close a major gap which currently exists in the organisation. This policy
has been drafted and is under consultation with the stakeholders.
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On a broad level, ELM is undergoing a process of reviewing all policies to ensure that they are
relevant and up to date.
T 4.2.1.1
4.3 INJURIES, SICKNESS AND SUSPENSIONS
Number and Cost of Injuries on Duty
Type of Injury
Injury Leave Taken Days
Employees using injury leave No.
Proportion of employees using sick
leave %
Average Injury Leave per employee
Days
Total Estimated
Costs R'000
Required basic medical attention only 1 1 1 1 1
Temporary total disablement 1 1 1 1 1
Permanent disablement 1 1 1 1 1
Fatal 1 1 1 1 1
Total 4 4 4 4 4
During the year under review, there were no permanent disablements or fatalities.
Number of days and Cost of Sick Leave (excluding injuries on duty)
Salary band
Total sick leave
Proportion of sick leave
without medical
certification
Employees using sick
leave
Total employees in
post*
*Average sick leave per
Employees
Estimated cost
Days %[1] No. No. Days R' 000
Lower skilled (Levels 1-2) 1 1 1 1 1 1
Skilled (Levels 3-5) 1 1 1 1 1 1
Highly skilled production (levels 6-8)
1 1 1 1 1 1
Highly skilled supervision (levels 9-12)
1 1 1 1 1 1
Senior management (Levels 13-15)
1 1 1 1 1 1
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MM and S57 1 1 1 1 1 1
Total 6 6 6 6 6 6
* - Number of employees in post at the beginning of the year
T 4.3.2 *Average is calculated by taking sick leave in column 2 divided by total employees in column 5
T 4.3.3
COMMENT ON INJURY AND SICK LEAVE:
ELM has an approved Employee Relations Policy which contains, inter alia, an absenteeism
policy aimed at controlling and reducing sick leave.
In order to better manage absenteeism in the workplace, ELM has initiated an absenteeism
reduction project in cooperation with relevant stakeholders, such as the unions. This will result
in further strategies being developed and implemented to curb absenteeism.
Injuries on duty have also proven to be a challenge: ELM has an injury rate which is slightly
above the norm. As a result, a safety plan needs to be implemented and its impact monitored.
Further steps to increase safety across the organisation are required to be taken via the
monthly safety committee under the stewardship of Corporate Services.
T 4.3.4
NUMBER AND PERIOD OF SUSPENTION: Table or Graph (based on available information.
DISCIPLINARY ACTION TAKEN ON CASES OF FINANCIAL MISCONDUCT: Table or Graph
(based on available information.
COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT
T 4.3.7
ELM has set strict standards for disciplinary action to be taken in all cases of serious
misconduct. Where such serious misconduct is identified, accused staff members are
suspended on a precautionary basis.
However, ELM faces challenges in effecting speedy resolution of such cases. As a result,
extended suspensions periods – beyond the 3 month limit which has been set – are
experienced. The reasons for the challenges are summarised as follows:
In certain instances, the time-limits set in the disciplinary code are unreasonable.
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The disciplinary code contains complex procedures and stipulations, which
unnecessarily complicate and delay disciplinary actions.
In many cases continuous delays are caused by the affected parties’ non-availability,
slow response to requests for disclosure of information and doctors certificates not
being presented when required.
There is also a general non- adherence by parties to the established time limits.
Notwithstanding the above, steps have been taken to address these challenges. An employee
relations improvement project is to be implemented in the 2013/2014 financial year to support
Labour Relations capacity and address the challenges.
T 4.3.7
4.4 PERFORMANCE REWARDS
Expenditure on
rewards Year 1
Proportion of
beneficiaries within
group
R' 000 %
Female 0 0 0 0%
Male 0 0 0 0%
Female 0 0 0 0%
Male 0 0 0 0%
Female 0 0 0 0%
Male 0 0 0 0%
Female 0 0 0 0%
Male 0 0 0 0%
Female 0 0 0 0%
Male 0 0 0 0%
Female
Male
Yes/No
T 4.4.1
Note: MSA 2000 S51(d) requires that … ‘performance plans, on which rewards are based should be aligned with
the IDP’… (IDP objectives and targets are set out in Chapter 3) and that Service Delivery and Budget
Implementation Plans (developed under MFMA S69 and Circular 13) should be consistent with the higher level
IDP targets and must be incorporated appropriately in personal performance agreements as the basis of
performance rewards. Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as
well as in the numbers at the right hand side of the column (as illustrated above).
Highly skilled production (levels 6-8)
Performance Rewards By Gender
Lower skilled (Levels 1-2)
Skilled (Levels 3-5)
Beneficiary profile
Gender
Designations
Total number
of employees
in group
Number of
beneficiaries
Highly skilled supervision (levels 9-12)
Senior management (Levels 13-15)
MM and S57
Total
Has the statutory municipal calculator been used as part of the evaluation process ?
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COMMENT ON PERFORMANCE REWARDS:
The Employee Performance Management and Development System is due to be rolled out in
2013/2014.
An Employee Performance Management System (EPMS) is in place for Senior Managers
(Municipal Manager and S57 Managers). No performance rewards have been issued to any
staff for the past financial year.
T 4.4.1.1
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COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE
INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT
Note: MSA 2000 S68 (1) requires municipalities to develop their human resource capacity to a
level that enables them to perform their functions and exercise their powers in an economical,
effective, efficient and accountable way.
ELM develops and implements a workplace skills plan (WSP) on an annual basis. This is based
on the capacity-building and development needs identified by staff and managers, and is then
effected via a training plan.
Although the above needs are identified by line managers and staff, the alignment of such
needs with formal capacity development needs, identified in terms of the performance
management system, is lacking. This challenge is being addressed by the implementation of
an EMPS and alignment with identified capacity gaps and interventions which are then
contained in individual staff members’ personal development plans (pdp’s).
T 4.5.0
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4.5 SKILLS DEVELOPMENT AND TRAINING
Skills Matrix Management level Gender Employees
in post as at 30 June
2013
Number of skilled employees required and actual as at 30 June 2013
Learnerships Skills programmes & other short courses
Other forms of training Total
No.
Actual: End of 2011/12
Actual: End of 2012/13
2012/13 Target
Actual: End of 2011/12
Actual: End of 2012/13
2012/13 Target
Actual: End of 2011/12
Actual: End of 2012/13
2012/13 Target
Actual: End of 2011/12
Actual: End of 2012/13
2012/13 Target
MM and s57 Female 2 0 0 1 0 0 1 1
Male 6 0 0 2 0 0 2 2
Councillors, senior officials and managers
Female 18 0 0 4 0 0 4 4
Male 24 0 0 8 0 0 8 8
Technicians and associate professionals*
Female 14 0 0 6 0 0 6 6
Male 18 0 0 7 0 0 7 7
Professionals Female 40 0 0 11 0 0 11 11
Male 105 0 0 6 0 0 6 6
Sub total Female 74 0 0 22 0 0 22 22
Male 153 0 0 23 0 0 23 23
Total 227 0 0 0 0 0 0 0 45 0 0 45 45
*Registered with professional Associate Body T 4.5.1
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COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE
FINANCIAL COMPETENCY REGULATIONS:
Although the implementation of training at ELM is adequate, it requires a more focused
approach, as previously set out. For the year under review, funding provided for capacity
building was R520,000 is set to increase between R750,000 and R850,000 in 2013/2014 FY.
The MFMA competency regulation requires that steps are taken to ensure that Senior
Managers meet competency requirements. The Municipal Manager and all S57 managers
have to achieve the necessary competencies. All other targeted staff are also required to meet
the qualification standards.
T 4.5.4
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE
INTRODUCTION TO WORKFORCE EXPENDITURE
Employee expenditure is closely monitored and controlled each month by the respective line
managers. The Budget office submits monthly reports on any over- or under-expenditure and
line managers are required to take the necessary corrective actions in order to comply with the
amounts that are on the budget.
The Municipality seeks to obtain value for money from its workforce expenditure through
various initiatives, such as: the Absenteeism Reduction Policy. Line managers are required to
ensure that employees are productive. The implementation of the Employee Performance
Management System will assist with this. In addition to the above procedures, when a vacancy
arises, line managers are required to motivate the reasons for the post to again be filled.
T 4.6.0
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4.6 EMPLOYEE EXPENDITURE
Actual exp R x,xxx,xxx R 7,066,183 R 8,026,348
2010/11 2011/12 2012/13
Source: MBRR SA22 T 4.6
COMMENT ON WORKFORCE EXPENDITURE:
From the above expenditure trends, one notes that workforce expenditure increased annually,
as follows:
2010/11: 13.6%
2011/12: 6.61% - General Salary Inflation
2012/13: X.XX%
The increase in expenditure for the 2010/11 financial year was due to the annual salary
increase and the implementation of Job Evaluation Grading Scheme. The SALGBC agreed
back pay to employees.
The 2012/13 financial year experienced a 13.6% increase in total employee expenditure due
to the annual salary increase of 7.07% and the payments of back pay relating to labour dispute
with the union.
IMATU won a court case against SALGA for not implementing the TASK evaluation results on the correct salary scales. SALGA is currently reviewing the court case outcome. The financial exposure is estimated at 2% additional salary increases to all permanent staff members. These salary increases were paid to all the relevant employees in the 2012/2013 financial year.
The 2011/12 financial year did not increase substantially despite a general salary increase of
6.61% with effect from 1 July 2011.
T 4.6.1.1
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CHAPTER 5 – FINANCIAL PERFORMANCE
INTRODUCTION
Chapter 5 contains information regarding financial performance and highlights specific
accomplishments. The chapter comprises of three components:
Component A: Statement of Financial Performance
Component B: Spending Against Capital Budget
Component C: Other Financial Matters
The Annual Financial Statements reflect the continued progress being made by the Municipality
to ensure a financially viable institution, which can withstand a certain degree of financial
volatility and continue to operate for the benefit of its inhabitants. Revenue year-on-year
continues to show improvement, the main contributor being the ??? revenue which increased
by XX%.
Government grants and subsidies have also contributed to the significant increase in revenue,
resulting from improved capital spend occurring within the Municipality. This is particularly
important as it has a direct impact on the lives ELM’s constituent community.
ELM is exposed to continued inflationary pressures and continues to attempt to manage these
pressures through cost containment initiatives. These on-going initiatives attempt to alleviate
any undue pressure being placed on the community through excessive general expenditure.
An area of particular concern is the need to increase spending on the maintenance of ageing
infrastructure and other assets so as to enable them to achieve their full estimated useful lives.
The Municipality has recognised that it is imperative for additional funding to be provided within
the repairs and maintenance budget to address this need.
T 5.0.1
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE
INTRODUCTION TO FINANCIAL STATEMENTS
FINANCIAL INFORMATION NOT AVAILABLE YET
The surplus (deficit) for the year is RXXXm, before transfers arising from capital, which is a
(un)favourable variance of RXXm in comparison to the budgeted (deficit) of RXXm. This
variance comprises of xxxxxxxx.
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Total revenue did (not) achieve the expected budget expectations and there was a shortfall in
collection of RXXm. This shortfall was as a result of: Or overachievement in collection – as per
S46 report.
Reduced release of funding associated with operational projects expenditure to the
extent of RXXm
Rates revenue totalled RXXm, which was below the budgeted amount by RXxm.
Electricity sales income totalled RXXm, which was RXXm (X%) below the budgeted
revenue.
The above was compensated by a favourable collection of water revenue totalling
RXXm, which was RXXm above the budget.
Total expenditure totalled RXXXm in comparison to a budget of RXXXm, thus resulting in a
favourable variance of RXXm. The largest contributors to this variance were the savings
achieved within other expenditure of RXXm (XX% of the budget), and savings in employee
related costs totalling RXXm (X% of the budget).
T 5.1.0
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5.1 STATEMENTS OF FINANCIAL PERFORMANCE
Description 2012/2013 2011/2012
R thousands
Original Budget
Budget Adjustments
(i.t.o. s28 and s31 of the MFMA)
Final adjustments
budget
Shifting of funds
(i.t.o. s31 of
the MFMA)
Virement (i.t.o.
Council approved
policy)
Final Budget
Actual Outcome
Unauthorized expenditure
Variance Actual Outcome as % of
Final Budget
Actual Outcome as % of Original Budget
Reported unauthorized expenditure
Expenditure authorized in terms of section 32 of MFMA
Total sources of capital funds 0 0 0 0 0 0 100% 100%
Cash flows
Net cash from (used) operating 0 0 0 0 0 0 100% 100%
Net cash from (used) investing 0 0 0 0 0 0 0 100% 100%
Net cash from (used) financing 0 0 0 0 0 0 0 100% 100%
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Cash/cash equivalents at the year end 0 0 0 0 0 0 0 100% 100%
T 5.1.1
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Financial Performance of Operational Services
R '000
Description
2011/2012 2012/2013 2012/2013 Variance
Actual Original Budget
Adjustments Budget
Actual Original Budget
Adjustments Budget
Operating Cost
Water 0 0 0 0 % %
Waste Water (Sanitation)
0 0 0 0 % %
Electricity 0 0 0 0 % %
Waste Management 0 0 0 0 % %
Housing 0 0 0 0 % %
Component A: sub-total
0 0 0 0 % %
Waste Water (Stormwater Drainage)
0 0 0 0 % %
Roads 0 0 0 0 % %
Transport 0 0 0 0 % %
Component B: sub-total
0 0 0 0 % %
Planning 0 0 0 0 % %
Local Economic Development
0 0 0 0 % %
Component B: sub-total
0 0 0 0 % %
Planning (Strategic & Regulatory)
0 0 0 0 % %
Local Economic Development
0 0 0 0 % %
Component C: sub-total
0 0 0 0 % %
Community & Social Services
0 0 0 0 % %
Environmental Protection
0 0 0 0 % %
Health 0 0 0 0 % %
Security and Safety 0 0 0 0 % %
Sport and Recreation
0 0 0 0 % %
Corporate Policy Offices and Other
0 0 0 0 % %
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Component D: sub-total
0 0 0 0 % %
Total Expenditure 0 0 0 0 % %
In this table operational income is offset against operational expenditure leaving a net operational expenditure total for each service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.1.2
COMMENT ON FINANCIAL PERFORMANCE:
REVENUE BY SOURCE
Property Rates – penalties & collection charges
A R1m positive variance was experienced, as the budget was understated on penalties and
collection charges for vacant and undeveloped land and or developed properties. This is 38%
more than budgeted.
Interest earned - external investments
Investment revenue yielded R0.3m more than anticipated, due to interest earned on unspent
grants invested. This is 14% more than budgeted.
Transfers recognised - operational
A R7m negative variance was experienced, due to over spending on operating projects, as
revenue is recognised when funds are spent or when conditions of the grants are met.
Other revenue
Other revenue received was R19.7m more than expected, due to subsidy received from the
District Municipality which were budgeted under “Grants” and not “Other Income”. The other
contributing factor was numerous miscellaneous revenue items, including town planning fees,
The debt impairment figure is calculated using the approved methodology on the debt book as
at 30 June 2013. This figure allows ELM to make a realistic provision taking into account the
ageing of the outstanding debtors at year end. The budget for debt impairment is based on the
12 months’ average collection rate. Debt impairment as at 30 June 2013 was R5.9m more than
the budget. This was due to significant increase in outstanding debtors.
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Finance charges
Finance charges were 42% more than budgeted. This budget item only relates to interest on
loans and excludes finance charges on leases.
Transfers and grants
The transfers and grants budget shows a negative R5.2m variance, due to less utilisation of
grants and subsidies. This represents -26% of grants and subsidies paid than budgeted.
Other expenditure
Other expenditure was R9.2m less than budgeted, largely due to under spending on operating
projects. This represents -19% of under spending on various other projects.
T5.1.3
5.2 GRANTS
Grant Performance R' 000
Description
Year -1 Year 0 Year 0 Variance
Actual Budget Adjustments Budget
Actual Original Budget
(%)
Adjustments Budget
(%)
Operating Transfers and Grants
National Government: 0 105,766 105,766 105,766 0% 0%
Equitable share Local Government Financial Management Grant (FMG) Municipal Infrastructure Grant (MIG) Municipal Systems Improvement Grant (MSIG)
61,056
1,500
19,217
790
69,797
1,500
23,311
800
69,797
1,500
23, 311
800
69,797
1,500
23,311
800
0%
0%
0%
0%
0%
0%
0%
0%
Department of Water Affairs (DWAF) Integrated National Electrification Grant (INEP)
0
5,134
0
9,000
0
9,000
0
9,000
0%
0%
0%
0%
Neighbourhood Development Program Grant (NDPG) Extended Public Works Program (EPWP)
0 0
0
1,358
0
1,358
0
1,358
0%
0%
0%
0%
Town Revitalisation 0 0 0 0 0% 0%
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Provincial Government: 0 891 891 891 0% 0%
Housing Grant 0 0 0 0 0% 0%
IDP 0 0 0 0 0% 0%
LED 0 88 88 88 0% 0%
Library 0 803 803 803 0% 0% Integrated National Electrification Grant (INEP) 0 0 0 0 0% 0%
Local Govt & Traditional Affairs (FMG) 0 0 0 0 0% 0% Neighbourhood Development Program Grant (NDPG) 0 0 0 0 0% 0% Extended Public Works Program (EPWP) 0 0 0 0 0% 0%
Town Revitalisation 0 0 0 0 0% 0%
District Municipality: 0 3,101 3,101 3,101 0% 0%
Health Subsidy-Environmental Health Food Program Sorghum & Processing Planning & Development Cleaning program Revenue Enhancement Other
0 0 0 0 0 0
0 0
2,200 40 396 465 0
0 0
2,200 40 396 465 0
0 0
2,200 40 396 465
0
0% 0% 0% 0% 0% 0% 0%
0% 0% 0% 0% 0% 0% 0%
Other grant providers: 0 106 106 106 0% 0%
SETA-Skills Development 0 106 106 106 0% 0%
SETA-Councillor Training 0 0 0 0 n/a n/a
Other Funding 0 0 0 0 n/a 0%
Other Funding 0 0 0 0 n/a 0%
Other Funding 0 0 0 0 n/a n/a
European Commission 0 0 0 0 n/a n/a
Total Operating Transfers and Grants 0 109,864
109,864
109,864 0% -9%
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Full list of provincial and national grants available from published gazettes. T 5.2.1
COMMENT ON OPERATING TRANSFERS AND GRANTS:
Note: These relate to Municipal Infrastructure Grant (MIG). For other conditional transfers
including Neighbourhood Development Partnership Grant (NDPG); Public Transport
Infrastructure and Systems Grant (PITS) – information still to be completed.
.
T 5.2.2
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Grants Received From Sources Other Than Division of Revenue Act (DoRA)
Details of Donor Actual Grant
2011/2012
Actual Grant 2012/2013
2012/2013 Municipal
Contribution
Date Grant terminates
Date Municipal
contribution terminates
Nature and benefit from the grant received, include
description of any contributions in kind
Parastatals
Health Subsidy (ATTIC) 0 0 0 0 Prevent the spread of TB & HIV infection and provide support to HIV positive survivors.
Health Subsidy (Environmental Health)
0 0 0 0
Dept of Human Settlement
0 0 0 0 Provide funding for the creation of sustainable human settlements. Fixing poorly built houses
Dept of Environmental Affairs & Tourism
0 0 0 0 Tourism initiatives for SMME’s
Roads Subsidy 0 0 0 0
Dept Water Affairs 0 0 0 0 Provide water supply services to consumers currently without, services particularly those in rural areas.
Local Govt & Traditional Affairs
0 0 0 0 For remuneration of local traditional councils
Library Subsidy 0 0 0 0
Dept of Land Affairs 0 0 0 0
Health Subsidy (Primary Health Care)
0 0 0 0
SETA 0 R105 863 0 0 Provide employees with the opportunities to acquire new skills.
Disaster Relief Fund 0 0 0 0 Immediate consequences of disasters are a mitigated
Dept of Sports, Recreation, Arts & Culture
0 0 0 0 Increasing citizens’ access to sport and recreation activities
Public Funding 0 0 0 0 Development levies.
0 0 0 0
Foreign Governments/Development Aid Agencies
XXX 0 0 0 0 0
XXX 0 0 0 0 0 An inter-governmental agreement aimed at poverty alleviation & sustained development.
T 5.2.3
COMMENT ON CONDITIONAL GRANTS AND GRANT RECEIVED FROM OTHER
SOURCES:
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Infrastructure Skills Development
ELM is experiencing challenges with regards to attracting suitably technical skilled personnel,
which has resulted in the budget not being fully utilized. The Infrastructure Skills Development
Grant aims to address this issue and thus enhance service delivery.
Expanded Public Works Programme
The EPWP programme is a provincial government initiative to address the high rates of
unemployment across the country. Due to the recruitment process having started later in the
financial year than normal, ELM has requested funding to be rolled over into 2013/14.
Urban Settlement Development
xxx
Housing - Human Settlement Development Grant
Housing provision is the competency of the Provincial Department of Human Settlement. ELM
assist in managing the process of beneficiary compilation and land acquisition …. …. …..
Roads Subsidy-Provincial Roads
Department of Land Affairs
ELM acts as an agent for the Department of Land Affairs with regards to land claims. Any
payment from this grant needs to be requested by the Department of Land Affairs
T 5.2.4
5.3 ASSET MANAGEMENT
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INTRODUCTION TO ASSET MANAGEMENT
ELM’s Management Team has continued to ensure that a strong asset management function
is implemented. The following initiatives and principles were in place during the year under
review:
Management recognised the importance of optimal investment into the municipality’s
asset base and of ensuring that the investment maintained in working capital is kept to
a minimum.
The credit control policy was actively implemented, so as to encourage consumers to
settle amounts owing to the Institution in a timely manner.
T 5.3.1
TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED 2012/2013
Asset 1
Name Property, Plant, Equipment
Description XXXXX
Asset Type e.g. Municipality Offices, Road Structures, Waste Sites, etc.
Asset Value
2009/10 2010/11 2011/12 2012/13
R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX
Asset 2
Name Property, Plant, Equipment
Description XXXXX
Asset Type e.g. Municipality Offices, Road Structures, Waste Sites, etc.
Asset Value
2009/10 2010/11 2011/12 2012/13
R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX
Asset 3
Name Property, Plant, Equipment
Description XXXXX
Asset Type e.g. Municipality Offices, Road Structures, Waste Sites, etc.
Asset Value
2009/10 2010/11 2011/12 2012/13
R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX R X,XXX,XXX
T 5.3.2
COMMENT ON ASSET MANAGEMENT:
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Improving asset management continues to be a focus for ELM, as it is the area from which
services are delivered to the inhabitants of the Municipality and subsequently the primary area
of revenue generation.
In deciding which projects to implement, the relevant ELM departments undertake needs
analyses to establish the communities’ priority needs. This information is then fed into the IDP
and used to make informed decisions with regards to which assets require prioritisation.
T 5.3.3
Repair and Maintenance Expenditure: 2012/2013
R' 000
Original Budget Adjustment Budget Actual Budget variance
Repairs and Maintenance Expenditure 0 0 0 0%
COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:
ELM spent XX% of its repairs and maintenance budget during the year under review. This was
spent primarily on infrastructure maintenance, which reflects an improvement compared to
previous years. The under-spending of XX% is on the allocation for furniture, equipment and
building maintenance which is spent as and when required.
The Municipality is budgeting, on average, XX% of its service revenue for repairs and
maintenance. The allocation has increased by XX% from 2011/12 as the Municipality’s
objective is to invest more into infrastructure maintenance and upgrading.
T 5.3.4.1
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS
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T 5.4.1
T 5.4.2
Liquidity Ratio - Info not available yet
Liquidity Ratio – Measures the municipality’s ability to pay its bills and is calculated by dividing the monetary assets (due within one year ) by the municipality’s current liabilities. A higher ratio is better.
Data used from MBRR SA8
Cost Coverage - Info not available yet
Year -3
Year -2
Year -1
Current: Year 0
Cost Coverage– It explains how many months expenditure can be covered by the cash and other liquid assets available to the Municipality excluding utilisation of grants and is calculated
Data used from MBRR SA8
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T 5.4.3
T 5.4.4
Total Outstanding Service Debtors
Year -3
Year -2
Year -1
Current: Year 0
Total Outstanding Service Debtors – Measures how much money is still owed by the community for water, electricity, waste removal and sanitation compared to how much money has been paid for these services. It is calculated by dividing the total outstanding debtors by the total annual revenue. A lower score is better.
Debt Coverage
Year -3
Year -2
Year -1
Current: Year 0
Debt Coverage– The number of times debt payments can be accomodated within Operating revenue (excluding grants) . This in turn represents the ease with which debt payments can be accomodated by the municipality
Data used from MBRR SA8
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T 5.4.5
T 5.4.6
Creditors System Efficiency
Year -3
Year -2
Year -1
Current: Year 0
Creditor System Efficiency – The proportion of creditors paid within terms (i.e. 30 days). This ratio is calculated by outstanding trade creditors divided by credit purchases
Data used from MBRR SA8
Capital Charges to Operating Expenditure
Year -3
Year -2
Year -1
Current: Year 0
Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principle paid by the total operating expenditure.
Data used from MBRR SA8
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T 5.4.7
T 5.4.8
COMMENT ON FINANCIAL RATIOS:
Employee Costs
Year -3
Year -2
Year -1
Current: Year 0
Employee cost – Measures what portion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between total revenue and capital revenue.
Data used from MBRR SA8
Repairs & Maintenance
Year -3
Year -2
Year -1
Current: Year 0
Repairs and Maintenance – This represents the propotion of operating expenditure spent and is calculated by dividing the total repairs and maintenace.
Data used from MBRR SA8
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Liquidity Ratio: The rate of 3.37:1 is regarded as good and indicates the municipality’s ability
to pay Current Liabilities with available Current Liquid Assets. The norm is set at 1.1 : 1, so
the municipality’s Liquidity Ratio is better than the Municipal Industry norm.
Cost Coverage: This rate has fluctuated over the past 2 years and currently is at 6.66 months,
representing how many months expenditure can be covered by cash and other liquid assets
available to the Municipality.
Total Outstanding Service Debtors: The rate of outstanding debt is steadily increasing. It is
currently XX.X%, which is a marked increase since 2011/2012, when it was XX.X%.
Outstanding debtors continue to be a focus for the Municipality which is continuously
implementing methods to decrease this rate to within a manageable range.
Debt Coverage: This rate is steadily improving, due primarily to no additional loans having
been taken on. Currently the Municipality’s rate is 40% when compared with XX.X in the
previous financial year.
Creditors System Efficiency: The Municipality maintains its policy to pay its top 20 creditors
within 30 days. The constant 100% payment levels to creditors highlights this achievement.
Capital Charges to Operating Expenditure: This rate is steadily improving and is considered
to be low at X.X% when compared with X.X% at 2011/12. Contributing factors include no new
loans having been taken up combined with an increase in Operating Expenditure year-on-year.
Employee Costs as a percentage of Operating Revenue: The rate of 28% is lower than the
expected norm of 30%.
Repairs and maintenance as a percentage of Total Revenue (excl. Capital Transfers and
Contributions): The rate remains stable at around 5% for the past 2 years.
T 5.4.9
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET
INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET
Capital expenditure relates mainly to construction projects that will have value lasting over
many years. Capital expenditure is funded from grants, borrowings and operating expenditures
and surpluses. Component B deals with capital spending indicating where the funding comes
from and whether Municipalities are able to spend the available funding as planned. In this
component it is important to indicate the different sources of funding as well as how these funds
are spend.
T 5.5.0
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5.5 CAPITAL EXPENDITURE
CAPITAL EXPENDITURE vs OPERATING EXPENDITURE BAR GRAPH IN YEAR 0
Capital Expenditure - Funding Sources: 2011/2012 to 2012/2013
R' 000
Details
2011/2012 2012/2013
Actual Original Budget
(OB)
Adjustment Budget
Actual Adjustment to OB
Variance (%)
Actual to OB
Variance (%)
Source of finance
External loans 0 0 0 0 0.00% 0%
Public contributions and donations
0 0 0 0 0.00% 0%
Grants and subsidies 0 0 0 0 0% 0%
Other 0 0 0 0 0% 0%
Total 0 0 0 0 0% 0%
Percentage of finance
External loans 0.00% 0% 0.00% 0% 0.00% 0%
Public contributions and donations
0.00% 0% 0.00% 0% 0.00% 0%
Grants and subsidies 0% 0% 0% 0% 0% 0%
Other 0% 0% 0% 0% 0% 0%
Capital expenditure
Water and sanitation 0 0 0 0 0% 0%
Electricity 0 0 0 0 0.00% 0%
Housing 0 0 0 0 0.00% 0%
Roads & storm water 0 0 0 0 0% 0%
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Capital Expenditure - Funding Sources: 2011/2012 to 2012/2013
R' 000
Details
2011/2012 2012/2013
Actual Original Budget
(OB)
Adjustment Budget
Actual Adjustment to OB
Variance (%)
Actual to OB
Variance (%)
Other 0 0 0 0 0% 0%
Total 278,888 749,097 978,103 675,941 118.66% -34.94%
Percentage of expenditure
Water and sanitation 0.00% 0% 0.00% 0% 0.00% 0%
Electricity 0.00% 0% 0.00% 0% 0.00% 0%
Housing 0% 0% 0% 0% 0% 0%
Roads & storm water 0% 0% 0% 0% 0% 0%
Other 0% 0% 0% 0% 0% 0%
T 5.6.1
COMMENT ON SOURCES OF FUNDING:
Grants and subsidies continue to comprise the most significant portion of the funding utilised
for capital expenditure. The largest being the ???, which is focused on developing new urban
areas for habitation. This Grant is utilised to ensure service infrastructure is installed in new
areas so as to allow for housing developments in these strategic areas.
T 5.6.1.1
5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS
Capital Expenditure of 5 largest projects* R' 000
Name of Project
Current: 2012/2013 Variance: Current 2012/2013
Original Budget
Adjustment Budget
Actual Expenditure
Original Variance (%)
Adjustment variance (%)
Electrification 0 0 0 0% 0%
Roads 0 0 0 0% 0%
Treatment Works 0 0 0 0% 0%
Solid Waste Management 0 0 0 0% 0%
Main Road 0 0 0 0% 0%
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* Projects with the highest capital expenditure in 2012/2013
Name of Project - A Electrification - Installation of a bulk tertiary Substation
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
Name of Project - B Roads
Objective of Project
Anticipated citizen benefits
Name of Project - C
Objective of Project Treatment Works
Delays
Future Challenges
Anticipated citizen benefits
Name of Project - D Solid Waste Management
Objective of Project
Anticipated citizen benefits
Name of Project - E Main Road
Objective of Project
Delays
Future Challenges
Anticipated citizen benefits
T 5.7.1
5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW
INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS
The primary role of a municipality is to provide and facilitate the delivery of services to its communities. It is therefore imperative for the municipality to understand the extent to which households in its areas of jurisdiction have access to the various services that are essential for their livelihood. A COMPREHENSIVE INFRASTRUCTURES PLAN (CIP) was developed with assistance with the province. However, a review of the existing CIP requires a thorough review that will be informed by the current statistical data.
The CIP is used to influenced for baseline data and informing the projects to be implemented. Furthermore ELM has made a decision to develop an inclusive Infrastructure Investment Plan. ELM currently utilizes various sector plans to plan for infrastructure planning and investment. These plans are; Housing Sector Plan, Water Service Delivery Plan, Infrastructure Asset Maintenance Plan, Electricity Master Plan.
T 5.8.1
Service Backlogs as at 30 June 2012/2013
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Households (HHs)
*Service level above minimum standard **Service level below minimum standard
No. HHs % HHs No. HHs % HHs
Water 0 0% 0 0%
Sanitation 0 0% 0 0% Electricity 0 0% 0 0%
Waste management 0 0% 0 0%
Housing 0 0% 0 0%
% HHs are the service above/below minimum standard as a proportion of total HHs. 'Housing' refers to * formal and ** informal settlements. T 5.8.2
COMMENT ON BACKLOGS:
The current reality analysis has shown that the municipality is faced with a daunting challenge marked by huge backlogs in service delivery, socio-economic problems of high unemployment and poverty levels. Solutions to these challenges can potentially be in conflict with or complement each other. For this reason, it is necessary for the municipality to have a macro strategy that will guide decision making when there are conflicting strategic options and also provide a basis for the allocation of scarce resources.
T 5.8.4
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS
Managing the cash resources of ELM remains a key requirement to ensure the liquidity of the
Municipality in order to meet its financial obligations, both currently and into a sustainable
future.
Cash flow is actively monitored by ELM, with daily cash flows being prepared and reported on
in order to provide a clear indication of the current cash position. This enables the Municipality
to meet its obligations as they become due. Both major revenue (grants, equitable share and
high revenue inflow periods, etc.) and expenditure (bulk purchases and loan repayments, etc.)
categories have been identified and accounted for appropriately to ensure that repayments are
made on time and that surplus funds are invested in order to earn a favourable return on
investment.
ELM’s cash generating ability remains stable. While own funds invested have increased, there
is an increase in both current and long-term debtors. The effects of the global economic crisis
are also a cause of real concern to the Municipality. Operations have settled and tight cash
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controls have ensured that cash optimization in spending occurs, rather than a focus on cash
generation. The area of revenue collection requires close attention so that it can be improved.
This is critical to the financial sustainability of the Municipality.
ELM makes payments to creditors within the terms specified by suppliers, ensuring that
investments remain in place in order to maximize the interest-earning potential of any surplus
funds. Investment diversification is in practice at ELM, in an attempt to minimize risk and
maximize interest earning potential.
Operating activities have not changed significantly over the past financial year.
The cash flow summary clearly indicates the increase/decrease in Cash and Cash Equivalent
at the year-end: from R XXX.XX million in 2011/12 to R XXX.XX million in 2012/13. As
mentioned above, some of the key factors that have resulted in the increase include new grants
being allocated to the Municipality and under spending.
Unspent conditional grants have increased/decreased significantly to R XXX million, from R
XXX million in 2011/2012, this is largely attributable to ???.
According to Section 115 of the MFMA the accounting officer of a municipality must implement the SCM policy of the municipality and take all reasonable steps to ensure that the proper mechanisms and segregation of duties in the SCM system are in place to minimise the likelihood of fraud, corruption, favouritism and unfair and irregular practices.
The Act also stipulates that monthly and quarterly reports should be submitted to the authorities to show the progress on the implementation of the Supply Chain management regulations.
Section 114
SCM REPORTS
0
0,2
0,4
0,6
0,8
1
1,2
Year -2 Year -1 Year 0
R m
illio
nActual Borrowings
Munici…
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a) Formal quotes above R100 000 (Various Departments) b) Deviations c) Fruitless and wasteful expenditure d) Report on tenders awarded e) Contract Management
REPORT ON TENDERS AWARDED: FORMAL AND INFROMAL
Bid Number
Project Name Bid awarded to Amount Date of awarded
ELM/3/1/2013
CONSTRUCTION OF NTSHINGA TO NJOMBELA ACCESS ROAD
CNN DEVELOPMENT ENGINEERS
R 732 467.83 24/05/2013
ELM/3/3
/2013
CONSTRUCTION OF
R392 TO FANI VILLAGE
ACCESS ROAD
CNN DEVELOPMENT
ENGINEERS
R 447 276.26 24/05/2013
ELM/02/
02/2013
ESTABLISHMENT OF
TRAFFIC
DEPARTMENT
(FENCING)
MVUBA TRADING R 618 805.00 22/06/2013
ELM/1/3
/2013
PROCUREMENT OF
PRIVATE PROPERTY
VALUERS
PENNY LINDSTROM
PROPERTY VALUATIONS
CC
R1 050 000.
00
22/06/2013
ELM
3/5/2013
FLEET VEHICLES
QUEENSTOWN NISSAN R297200.24 22 June
2013
QUOTATIONS ABOVE R100 000
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Project Name Amount C/O Name Dept
Audit R 219 259.35 Auditor General The Municipality
R 140 532.44 Ezibeleni Sheriff
Chemicals R 140 000.00 Hanalulu Water Services
R 114 000.00 Ramatini Services Agents
Server room upgrade and fire protection
R 198 397.62 TKS projects (pty)ltd Finance
Sewer connections at Indwe
R 189 411.00 African Compass 375 CC Water services
DEVIATIONS
CO NAME DESCRIPTION AMOUNT NORMAL PROCESSES
COMMENTS
NDCW ENGINEERING
Manufacturing of hawker stalls
R 1 325 973.90
3 QUOTES
NPM GEOMATICS
Land audit project R 397 974.00 3 QUOTES
TENDERS NOT YET AWARDED
Tender number Description Closing date
ELM/3/7/2013 DELIVERY OF PLANT EQUIPMENT
15/05/2013
SECTION 116: CONTRACT MANAGEMENT
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THE FOLLOWING EXPENDITURE/PAYMENTS AGAINST EXISTING CONTRACTS WERE MADE DURING THE MONTH
DEPARTMENT/ SECTION
NAME OF SUPPLIER
ITEM DESCRIPTION
DATE
TENDER NO
ORDER/TENDER AMOUNT
PAID TO DATE
Community Services
Masabisa Management Consultant
Cemetry expand
08/08/2012
ELM/2/1/2012
700 918.40
R 560 400.00
Technical Services Malk iAfrica
Rwantsana access road
ELM/9/2012
R 6 074 233.67
R 4 280 014.21
Technical Services
Amadwala Construction
Construction of water reticulation and pipeline extension
12/11/2012
ELM/6/3/2012
R 6 119.64 rates
R 1 417 054
Town planning/
ULUBUTHO DEVELOPMENT
SPATIAL DEVELOPMENT FRAMEWORK
22/11/2012
ELM/2/2/2012
R 293 688.09 R 44
053.21
Town planning/
NPM PLANNING TOWNSHIP ESTABLISHMENT
22/11/2012
ELM/2/3/2012
R 68 940.00 R 55 152
Technical Services
RJN PROJECTS Maintenance,repairs
22/11/2012
ELM/6/1/2012
R 434 351.64 rates
R 1 086 138.05
Technical Services Malk iAfrica
Dlamini access road
variation order
1 126 324.00
R 1 796 213.95
Technical Services RPS ILANGABI
Electrification
ORDER
R 5 075 156.68
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Recommendations
It is RECOMMENDED THAT
(a) Council notes the report on supply chain management which relates to the awarding
of tenders for the 2012/2013 financial year.
(b) The Chief Financial Officer provides details on the motivation for deviations that have been approved during the period under review.
T 5.12.1
5.13 GRAP COMPLIANCE
GRAP COMPLIANCE
GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules
by which municipalities are required to maintain their financial accounts. Successful GRAP
compliance will ensure that municipal accounts are comparable and more informative for the
municipality. It will also ensure that the municipality is more accountable to its citizens and
other stakeholders. Information on GRAP compliance is needed to enable National Treasury
to assess the pace of progress and consider the implications.
ELM is aware of the new accounting standards that have been published for implementation
during the 2012/2013 financial year. These standards have been complied with in the
preparation of the 2012/2013 Annual Financial Statements in all material respects. This
compliance is required to improve transparency surrounding the financial information which
has been prepared. The guidance provided in the new accounting statements, namely GRAP
21, 24, 26 and 103 have been utilised in the preparation of the 2012/13 Annual Financial
Statements. GRAP 21 and 26 were adopted early in the 2011/12 Annual Financial Statement
preparation. The budget note disclosure, as required in GRAP 24, has been included and
heritage assets have been identified and disclosed in these Annual Financial Statements.
.T 5.13.1
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CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS
INTRODUCTION
Note: The Constitution S188 (1) (b) states that the functions of the Auditor-General includes
the auditing and reporting on the accounts, financial statements and financial management of
all municipalities. MSA section 45 states that the results of performance measurement… must
be audited annually by the Auditor-General.
The Auditor General has historically given the municipality a number of disclaimers. This has
largely been on areas weak internal controls, non-compliance with laws and regulations,
misstatements in Annual Financial Statements.
During the 2012/2013 financial year, ELM has made an effort to correct and improve on a
number of areas where an adverse audit opinion was given. In 2012/2013, ELM prepared and
implemented an audit improvement plan, in an effort to obtain an improved audit opinion.
This plan contains all the matters highlighted by the Auditor General and the impact that each
matter has is clearly defined. Furthermore, the names of those responsible for each of the
matters are highlighted on the plan together with the due or target date on which each of the
matters should be resolved.
Progress is monitored on continuous bases and the progress report is presented regularly to
management meeting. It is envisaged that this assistance would yield significant benefits in
relation to the opinion expressed by the Auditor General in the previous year.
T 6.0.1
COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS
2011/2012
6.1 AUDITOR GENERAL REPORTS 2011/2012 (PREVIOUS YEAR)
Auditor-General Report on Financial Performance: 2011/2012
Audit Report Status*: Qualified
Non-Compliance Issues Remedial Action Taken
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Note:*The report status is supplied by the Auditor General and ranges from unqualified (at best); to unqualified with other matters specified; qualified; adverse; and disclaimed (at worse)