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LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CONTENTS 2
CONTENTS
CONTENTS .......................................................................................................................................................... 2
THE ANNUAL REPORT ..................................................................................................................................... 6
CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY .................................................... 7
COMPONENT A: MAYOR’S FOREWORD ................................................................................................. 7
COMPONENT B: EXECUTIVE SUMMARY ................................................................................................ 8
1.1. MUNICIPAL MANAGER’S OVERVIEW .......................................................................................... 8
1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW .................. 9
1.3. SERVICE DELIVERY OVERVIEW ................................................................................................ 12
1.4. FINANCIAL HEALTH OVERVIEW ................................................................................................. 13
1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW .................................................................... 16
1.6. AUDITOR GENERAL REPORT ..................................................................................................... 16
1.7. STATUTORY ANNUAL REPORT PROCESS ............................................................................. 17
CHAPTER 2 – GOVERNANCE ....................................................................................................................... 19
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ........................................... 19
2.1 POLITICAL GOVERNANCE ........................................................................................................... 19
2.2 ADMINISTRATIVE GOVERNANCE .............................................................................................. 22
COMPONENT B: INTERGOVERNMENTAL RELATIONS ..................................................................... 24
2.3 INTERGOVERNMENTAL RELATIONS ........................................................................................ 24
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ............................................... 27
2.4 PUBLIC MEETINGS ......................................................................................................................... 27
2.5 IDP PARTICIPATION AND ALIGNMENT ..................................................................................... 29
COMPONENT D: CORPORATE GOVERNANCE ................................................................................... 29
2.6 RISK MANAGEMENT ...................................................................................................................... 29
2.7 ANTI-CORRUPTION AND FRAUD ................................................................................................ 31
2.8 SUPPLY CHAIN MANAGEMENT .................................................................................................. 32
2.9 BY-LAWS ........................................................................................................................................... 32
2.10 WEBSITES ........................................................................................................................................ 33
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CONTENTS 3
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES .............................................................. 33
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) ........... 35
COMPONENT A: BASIC SERVICES ......................................................................................................... 35
3.1. WATER PROVISION ....................................................................................................................... 36
3.2 WASTE WATER (SANITATION) PROVISION ............................................................................. 41
3.3 ELECTRICITY ................................................................................................................................... 47
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS,
WASTE DISPOSAL, STREET CLEANING AND RECYCLING) ........................................................ 52
3.5 HOUSING .......................................................................................................................................... 57
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT .............................................................. 62
COMPONENT B: ROAD TRANSPORT ..................................................................................................... 64
3.7 ROADS ............................................................................................................................................... 64
3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION) ............. 68
3.9 WASTE WATER (STORMWATER DRAINAGE) ......................................................................... 71
COMPONENT C: PLANNING AND DEVELOPMENT ............................................................................. 73
3.10 PLANNING ......................................................................................................................................... 74
3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES) . 77
COMPONENT D: COMMUNITY & SOCIAL SERVICES ......................................................................... 81
3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER
(THEATRES, ZOOS, ETC) ...................................................................................................................... 81
3.13 CEMETORIES AND CREMATORIUMS ....................................................................................... 84
3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES ............................................................ 86
COMPONENT E: ENVIRONMENTAL PROTECTION ............................................................................. 86
3.15 POLLUTION CONTROL .................................................................................................................. 86
3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL
PROTECTION) .......................................................................................................................................... 87
COMPONENT F: HEALTH ........................................................................................................................... 88
3.17 CLINICS ............................................................................................................................................. 88
3.18 AMBULANCE SERVICES ............................................................................................................... 89
3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC ... 89
COMPONENT G: SECURITY AND SAFETY............................................................................................ 90
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CONTENTS 4
3.20 TRAFFIC LAW ENFORCEMENT ................................................................................................... 90
3.21 FIRE .................................................................................................................................................... 95
3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL
OF PUBLIC NUISANCES AND OTHER) ............................................................................................... 98
COMPONENT H: SPORT AND RECREATION...................................................................................... 100
3.23 SPORT AND RECREATION ......................................................................................................... 101
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES ................................. 103
3.24 EXECUTIVE AND COUNCIL ........................................................................................................ 103
3.25 FINANCIAL SERVICES ................................................................................................................. 106
3.26 HUMAN RESOURCE SERVICES................................................................................................ 109
3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ...................... 113
3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES .............. 115
COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD ............................................. 117
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE ............................................... 124
(PERFORMANCE REPORT PART II) .......................................................................................................... 124
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL .......................................... 124
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES........................................................... 124
COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ....................................................... 127
4.2 POLICIES ......................................................................................................................................... 128
4.3 INJURIES, SICKNESS AND SUSPENSIONS ........................................................................... 129
4.4 PERFORMANCE REWARDS ....................................................................................................... 132
COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ............................................... 133
4.5 SKILLS DEVELOPMENT AND TRAINING ................................................................................. 134
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE................................................. 136
4.6 EMPLOYEE EXPENDITURE ........................................................................................................ 136
CHAPTER 5 – FINANCIAL PERFORMANCE ............................................................................................ 138
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ................................................. 138
5.1 STATEMENTS OF FINANCIAL PERFORMANCE .................................................................... 140
5.2 GRANTS .......................................................................................................................................... 143
5.3 ASSET MANAGEMENT ................................................................................................................ 145
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CONTENTS 5
5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS .............................. 148
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET.............................................................. 152
5.5 CAPITAL EXPENDITURE ............................................................................................................. 153
5.6 SOURCES OF FINANCE .............................................................................................................. 153
5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS ................................................................ 154
5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW ............................. 155
COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ............................................ 156
5.9 CASH FLOW ................................................................................................................................... 157
5.10 BORROWING AND INVESTMENTS ........................................................................................... 158
5.11 PUBLIC PRIVATE PARTNERSHIPS .......................................................................................... 162
COMPONENT D: OTHER FINANCIAL MATTERS ................................................................................ 163
5.12 SUPPLY CHAIN MANAGEMENT ................................................................................................ 163
5.13 GRAP COMPLIANCE .................................................................................................................... 164
CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS .......................................................................... 165
COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS Year -1 .......... 166
6.1 AUDITOR GENERAL REPORT: 2012/2013 FINANCIAL year .................................................. 166
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 2013/2014 ............................................... 167
6.2 AUDITOR GENERAL REPORT: 2013/2014 FINANCIAL YEAR ............................................... 167
GLOSSARY ...................................................................................................................................................... 169
APPENDICES .................................................................................................................................................. 172
APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE .. 172
APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES........................................................ 175
APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE .......................................................... 178
APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY ............................................................... 179
APPENDIX E – WARD REPORTING ....................................................................................................... 180
APPENDIX F – WARD INFORMATION ................................................................................................... 181
VOLUME II: ANNUAL FINANCIAL STATEMENTS ................................................................................ 183
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | THE ANNUAL REPORT 6
THE ANNUAL REPORT
The purpose of this Annual Report is to provide for improved content and quality of Municipal Annual
Reports, which gives effect to the legal framework requirement, concepts and principals espoused in
the White Paper on Local Government towards improving local government performance. It reflects
the ethos of public accountability. The content gives effect to information required for better monitoring
and evaluation of government programmes in support of policy decision making. This document
provides an overview of municipal affairs by combining the annual performance report data required in
terms of section 46 of the Municipal Systems Act Section 46 with annual report data referred to in both
the Municipal Systems Act (MSA) and in the Municipal Finance Management Act (MFMA).
This Annual Report makes its contribution by attempting to forge linkages between the Integrated
Development Plan (IDP), Service Delivery and Budget Implementation Plan (SDBIP), Budget Reform
Regulations, In-year Reports, Annual Financial Statements and Performance Management information
of a municipality. This coverage and coherence is achieved by the use of interlocking processes and
formats.
The revised template relates to the Medium Term Strategic Framework particularly through the IDP
strategic objectives; the cross cutting nature of services offered by different spheres of government,
municipal service outcome indicators; and the contextual material as set out in Chapters 3, 4 & 5. It
also provides information on good management practices in Chapter 4; risk management in Chapter 2;
and Supply Chain Management in Chapter 5. It also addresses the Auditor-General’s Report, dealing
with Financial and Performance Management arrangements in Chapter 6. This opens up greater
possibilities for financial and non-financial comparisons between municipalities and improved value for
money.
This document must provide information on probity, including: anti-corruption strategies; disclosure of
financial interests by officials and councillors; disclosure of grants by external parties, disclosure of
loans and grants by municipalities. The appendices provide more detail including disaggregated
information on municipal wards, and capital projects per ward among others.
The financial years contained in this template are explained as follows:
Year -1: The previous financial year: 2012/2013
Year 0: The financial year of reporting: 2013/2014
Year 1: The following year, mostly requires future targets: 2014/2015
CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
COMPONENT A: MAYOR’S FOREWORD
MAYOR’S FOREWORD
a. Vision:
A succinct narrative on the direction of travel, key strategic objectives and the major changes that are
being addressed. This is the most important single statement in the Annual Report.
b. Key Policy Developments:
This is based on Strategic alignment to the Provincial Growth and Development Strategy, and the IDP
strategies included in the IDP especially with focus on impact and outcome achieved – bearing in mind
that foreword provides details that should be included in the chapters to follow.
c. Key Service Delivery Improvements:
Comment on the major successes of the year included and provide an indication of challenges
overcome.
d. Public Participation:
Methods and/or processes used to increase public awareness on service availability engage public in
decision making and improve accountability to communities.
e. Future Actions:
Initiatives committed whereby service delivery will be improved over the next few years.
f. Agreements / Partnerships: Announcements on special partnerships initiated.
g. Conclusion: Final thoughts on the year.
(Signed by :) __________________________
Mayor/Executive Mayor
Delete Directive note once comment is completed – The Mayor may wish to make brief mention of
initiatives attempted that were not entirely successful in the interests of accountability and forming a
closer, trusting relationship with the community.
T 1.0.1
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COMPONENT B: EXECUTIVE SUMMARY
1.1. MUNICIPAL MANAGER’S OVERVIEW
MUNICIPAL MANAGER’S OVERVIEW
Another financial year has come to an end and it is once again time to take stock of the year that was
and reflect on our achievements, shortcomings and challenges. The year under review was indeed a
very challenging year, especially in the areas of the continuous provision of basic services such as
water, sanitation and electricity. We are faced with the harsh reality that the existing infrastructure for
water, sanitation and electricity has aged beyond its reasonable lifespan and in the absence of
continuous maintenance, upgrades and refurbishment over the past few years, these services has
now reached a critical mass stage that has led to the provision of services in some areas having been
rather erratic at times.
This Annual Report confirms that the Municipality has made progress in basic service delivery, rolling
out and expanding the provision of water, sanitation, electricity and housing to local communities but
much more still needs to be done.
In respect of the Municipality’s IDP indicators and Council priorities, the reality is that we must
continue to strive towards constantly improving. It is to this end that the annual review of our IDP
must speak more to the Council priorities based on the mandate given by the electorate in order to
find better alignment of services to IDP indicators with Council priorities. Efforts to ensure that the
Municipality’s IDP and Budget speak to one another is ongoing, however must be acknowledged that
this area needs further focus and refinement which will be addressed as an ongoing matter of priority
to constantly improve on this as well as to also further improve alignment with the SDBIP.
Service delivery performance must constantly be improved upon and with the gradual implementation
and strengthening of performance management within the Municipality, it will always be important to
that performance is regularly reported on to further improve the quality of service delivery.
The long term financial sustainability of the Municipality, as represented by the financial health ratios
is a clear indication that much work is required to turn the current financial situation around.
Eskom, in partnership with the Municipality has stepped up efforts to ensure there is more awareness
around conserving especially electricity to compliment the conservation measures residents are being
requested to adopt in their own housekeeping. This was done through both media and community
radio station campaigns.
The Municipality uses service providers to provide certain contracted services but currently does not
have any public-private partnerships currently running.
Finally, I would like to record my sincere appreciation for the polictical support given to the
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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administration as well as the efforts and hard work of the staff of the Lekwa Local Municipality, without
which the service delivery progress reported in this Annual Report would not have been possible.
Their commitment and dedication, in the face of constraints and challenges, to serving the
communities Lekwa is commendable.
L B TSHABALALA
MUNICIPAL MANAGER
T 1.1.1
1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW
INTRODUCTION TO BACKGROUND DATA
The data contained in this section was taken from the 2011 Census figures of StatsSA figures. This
has become crucial baseline information to assist the future planning by the Municipality. In addition
Lekwa data, obtained from the Mpumalanga Department of Finance also provides a profile on some
the very key socio-economic factors for the Municipality which highlights a number of key
characteristics and implications for the Municipality.
Wherever possible, comparative data has been provided in respect of contributions made by the
Municipality towards satisfying the basic requirements for water, sanitation, electricity, solid waste
removal, housing, local economic development, roads and storm water and town planning.
T 1.2.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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Population Details
Population '000
Age 1996 2001 2011
Male Female Total Male Female Total Male Female Total
Age: 0 - 4 4,291 4,484 8,775 5,267 5,396 10,663 6,003 5,985 11,988
Age: 5 - 9 4,919 4,783 9,702 5,361 5,451 10,812 5,275 5,270 10,545
Age: 10 - 14 5,061 5,091 10,152 5,961 5,700 11,661 5,329 5,169 10,498
Age: 15 - 19 4,743 4,738 9,481 5,775 5,921 11,696 5,549 5,524 11,073
Age: 20 - 24 4,389 4,499 8,888 4,489 4,652 9,141 6,227 5,374 11,601
Age: 25 - 29 4,006 4,001 8,007 4,495 4,562 9,057 5,531 5,296 10,827
Age:30 - 34 3,652 3,666 7,318 3,856 3,960 7,816 4,436 4,184 8,620
Age: 35 - 39 3,271 3,074 6,345 3,453 3,714 7,167 3,879 3,902 7,781
Age: 40 - 44 2,466 2,498 4,964 3,213 3,187 6,400 3,343 3,432 6,775
Age: 45 - 49 2,015 1,901 3,916 2,464 2,505 4,969 2,961 3,439 6,400
Age: 50 - 54 1,545 1,543 3,088 2,018 1,977 3,995 2,669 2,915 5,584
Age: 55 - 59 1,184 1,289 2,473 1,417 1,548 2,965 2,315 2,233 4,548
Age: 60 - 64 798 1,057 1,855 1,118 1,384 2,502 1,497 1,743 3,240
Age: 65 - 69 688 868 1,556 627 959 1,586 988 1,246 2,234
Age: 70 - 74 422 510 932 526 764 1,290 627 977 1,604
Age: 75 - 79 327 406 733 278 412 690 335 605 940
Age: 80 - 84 134 232 366 189 325 514 229 373 602
Age: 85+ 91 172 263 119 220 339 156 252 408
TOTAL 44,002 44,812 88,814 50,626 52,637 103,263 57,349 57,919 115,268
Source: Statistics SA T 1.2.2
Demographic Data
Group 2011
Male %
Male Female
%
Female Total %
Black 48,375 50 48,988 50 97,363 85
Coloured 1,592 48 1,712 52 3,304 3
White 6,649 50 6,564 50 13,212 11
Indian/Asian 736 53 660 47 1,395 1
TOTALS
57,352
57,924
115,274
100
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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Year Total
Population
Total Households Average
Household
Income
Unemployment
Rate
No formal
schooling
2012 117833 26685 42000 13828 8195
2013 (Stats SA) 115268 31071 88440 11895 7835
Socio Economic Status
T 1.2.4
A notable change in HIV prevalence rate within Lekwa has been noted, with a decrease in reported
prevalence from 50% in 2010 to 32.5% in 2011. (Gert Sibande 2012/2013 Annual Report)
T 1.2.5
Natural Resources
Major Natural Resource Relevance to Community
Grootdraai Dam 10th largest dam in South Africa. Can contribute significantly to tourism development which can create job opportunities
Municipal and state-owned land Land availability for economic development
T 1.2.7
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1.3. SERVICE DELIVERY OVERVIEW
SERVICE DELIVERY INTRODUCTION
Basic service delivery within the Municipal area of jurisdiction may seem to have declined, but this is
attributable to the increase in informal settlements through the illegal invasion of land, especially in
areas where informal settlements were previously relocated. This has created a challenge in that such
areas are not adequately serviced. Some of these areas are also not suitable for permanent human
settlement. Areas that are suitable will be upgraded using National Upgrade Support Programme,
which is further elaborated on in Chapter 3. The Municipality has been able to service all formally
established and proclaimed areas with the basic minimum services.
It must be noted that the more recent figures has been obtained from the Mpumalanga Department of
Finance.
T 1.3.1
T 1.3.2
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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COMMENT ON ACCESS TO BASIC SERVICES:
The 2013/2014 financial year has seen the Municipality facing a number of service delivery challenges,
especially as it relates to the uninterrupted provision of water and electricity in some areas. This
challenge was mainly caused due to aging infrastructure and insufficient spending on repairs and
maintenance of such bulk infrastructure.
T 1.3.3
1.4. FINANCIAL HEALTH OVERVIEW
FINANCIAL OVERVIEW
The total actual revenue for the 2013/14 financial year amounted to R485, 465 million. This represents
a growth of 11.05% when compared to the 2012/13 actual revenue of R437, 164 million. The actual
expenditure amounted to R614.201 million which saw a decline in expenditure incurred of 4.18% when
compared to the actual expenditure for 2012/13 of R 641, 004 million.
Actual revenue excluding capital transfers for the 2013/14 financial year amounted to R422, 798
million that, compared to the 2012/13 period of R403, 459 million, represents a growth of 4.79%.
The operating deficit has decreased by 36.84% from R 203, 841 million in the 2012/13 financial year to
R 128, 736million in the 2013/14 financial year period.
The Municipality, to a large extent finances its operations from service charges and taxations levied on
properties. Service charges and property rates contributes 58.35% of the total revenue mix while
grants and subsidies contributes 34.89% and other revenues make up the balance of 6.76%.
The main sources of revenue for the 2013/14 were as follows:
Electricity R180, 418 million
Assessment Rates R 37, 546 million
Water R 32, 363 million
Sanitation R 23, 004 million
Refuse R 9,932 million
T 1.4.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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Financial Overview: 2013/2014 R'
Details Original budget Adjustment Budget Actual
Income:
Grants 86 670 000 86 425 000 84 167 016
Taxes, Levies and tariffs 329 584 000 312 343 000 283 262 163
Other 40 837 000 11 388 000 37 622 207
Sub Total 457 091 000 436 065 000 431 171 953
Less: Expenditure 614 440 000 634 252 000 614 201 385
Net Total Deficit (157 348 000) (198 187 000) (197 092 512)
* Note: surplus/(deficit) T 1.4.2
Operating Ratios 2013/2014
Detail %
Employee Cost 19.86%
Repairs & Maintenance 2.94%
Finance Charges & Impairment 11.32%
T 1.4.3
COMMENT ON FINANCIAL RATIOS
Employee cost to total operating expenditure measures the total employment cost to total
operating expenditure and the norm is between 25% - 40%. Lekwa Local Municipality measures at
19.86% and although within the acceptable norm, it is on the increase and if not monitored, it will
approach the upper end of the norm.
Repairs and Maintenance as a % of Property, Plant and Equipment and Investment Property
(Carrying Value). The ratio measures the level of repairs and maintenance to ensure adequate
maintenance to prevent breakdowns and interruptions to service delivery. Repairs and maintenance of
municipal assets is required to ensure the continued provision of services. The ratio for Lekwa Local
Municipality is 2.94% compared to the norm of 8%. This ratio is below the norm of 8% and is a
reflection that insufficient funds are being spent on repairs and maintenance to the extent that it could
increase impairment of useful assets.
Finance Charges & Impairment. The ratio for Lekwa Local Municipality is 11.32% and is indicative of
the rate at which assets are utilized in service delivery. Given the cash flow problems experienced by
the Municipality no additional cost would be financially viable.
T 1.4.3
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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Total Capital Expenditure: Year -2 to Year 0
R'000
Detail 2011/12 2012/13 2013/14
Original Budget 40 639 47 523 43 308
Adjustment Budget 47 774 58 139 67 519
Actual 37 158 35 448 62 667
% of Budget Spent 77.78 % 60.97% 92.81%
T 1.4.4
TOTAL CAPITAL EXPENDITURE
0
10000
20000
30000
40000
50000
60000
70000
2011-2012 2012-2013 2013-2014
Original Budget
Adjustment Budget
Actual
T 1.4.5
COMMENT ON CAPITAL EXPENDITURE:
The Capital Budget increased over the past three years from R 40, 639 million in the 2011/2012
financial year to R 43, 308 million in the 2013/14 financial year.
On the conditional grants, requests for rollovers during the three financial years were submitted and
granted as indicated on the Capital Budget Adjustment.
The overall expenditure on Capex increased from R 37, 158 million in the 2012/2013 financial year to
R 62, 667 million in the 2013/2014 financial year. This represented a growth of 68.65% which is mainly
due to rollover projects that were completed in the 2013/14 financial year period.
T 1.4.5.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW
ORGANISATIONAL DEVELOPMENT PERFORMANCE
Delete Directive note once comment is completed – Provide an overview of key Organisational
Development issues based on information contained in Chapter 4.
T 1.5.1
1.6. AUDITOR GENERAL REPORT
AUDITOR GENERAL REPORT: 2013/2014 (CURRENT YEAR)
For the 2011/2012 financial year, a disclaimer of opinion was received and for the 2012/2013 financial
year an improved audit opinion of a qualified audit opinion was received. For the 2013/2014 year an
unqualified audit opinion was received, which shows gradual improvement in the systems of
accountability and records documentation and management.
T 1.6.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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1.7. STATUTORY ANNUAL REPORT PROCESS
No. Activity Timeframe
1
Consideration of next financial year’s Budget and IDP process plan. Except for
the legislative content, the process plan should confirm in-year reporting formats
to ensure that reporting and monitoring feeds seamlessly into the Annual Report
process at the end of the Budget/IDP implementation period
July 2 Implementation and monitoring of approved Budget and IDP commences (In-
year financial reporting).
3 Finalise the 4th quarter Report for previous financial year
4 Submit draft year 0 Annual Report to Internal Audit and Auditor-General
5 Municipal entities submit draft annual reports to MM
6 Audit/Performance committee considers draft Annual Performance Report of
municipality and entities (where relevant)
August
8 Mayor tables the unaudited Annual Performance Report
9 Municipality submits draft Annual Performance Report including consolidated
annual financial statements and performance report to Auditor General
10 Annual Performance Report as submitted to Auditor General to be provided as
input to the IDP Analysis Phase
11 Auditor General audits Annual Performance Report including consolidated
Annual Financial Statements and Performance data September –
November
12 Municipalities receive and start to address the Auditor General’s comments and
develop action plan
January 13 Mayor tables Annual Report and audited Financial Statements to Council
complete with the Auditor- General’s Report
14 Audited Annual Report is made public and representation is invited
15 Oversight Committee assesses Annual Report
16 Council adopts Oversight report
February 17 Oversight report is made public
18 Oversight report is submitted to relevant provincial councils
19 Commencement of draft Budget/ IDP finalisation for next financial year. Annual
Report and Oversight Reports to be used as input March
T 1.7.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY
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COMMENT ON THE ANNUAL REPORT PROCESS:
The above deadlines to prepare the Annual Report nearer the end of the financial year in order to
provide the next budget process with a wide range of data from the outset must be improved upon to
ensure that the complete 1st Draft of the Annual Report is submitted with the unaudited financial
statements to the Auditor-General before the end of August. The alignment between the IDP, Budget
and Performance Management System must be further strengthened and improved upon in order to
ensure that through the cyclical nature of these activities it may better inform forward planning.
T 1.7.1.1
Municipality | CHAPTER 2 – GOVERNANCE 19
CHAPTER 2 – GOVERNANCE
INTRODUCTION TO GOVERNANCE
This Chapter is composed of the following four components:
Component A: Political and Administrative Governance
Component B: Intergovernmental Relations
Component C: Public Accountability and Participation
Component D: Corporate Governance
T 2.0.1
COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE
INTRODUCTION TO POLITICAL AND ADMINISTRATIVE GOVERNANCE
The Constitution section 151 (3) states that the council of a municipality has the right to govern on its own
initiative, the local government affairs of the local community.
T 2.1.0
2.1 POLITICAL GOVERNANCE
INTRODUCTION TO POLITICAL GOVERNANCE
For the year under review, the Municipality had a number of key committees in place. The highest
decision-making structure, being the municipal council held meetings throughout the year toward the
facilitation of the administrative processes for the implementation of the projects and programmes as
set for the year.
The Municipality has a functional Audit Committee (AC) that provided guidance throughout the year on
recommendations on the financial processes and performance of the Municipality. The Audit
Committee, which also serves as the Performance Audit Committee (PAC) is composed of the
following members and meetings were held as follows:
DATE OF MEETING A C KEYSER (Chairperson) D W PRENZLER (Member)
2012-08-29 (AC) √ √
2013-01-23 (AC) √ √
2013-04-17 (AC) √ √
2013-02-27 (Q1 & Q2) (PAC) √ √
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 20
2013-05-15 (Q3) (AC & PAC) √ √
2013-08-13 (Q4) (AC & PAC) √ √
The recommendations and further details on the work done by the Audit Committee is more fully
contained in Appendix G.
The Municipality’s Oversight Committee, known as the Municipal Public Accounts Committee (MPAC)
has the key responsibility of amongst others interrogating and providing comments on the Annual
Report. MPAC is comprised of the following members who had meetings on the below listed dates:
The Municipality’s Oversight Committee, known as the Municipal Public Accounts Committee (MPAC)
has the key responsibility of amongst others interrogating and providing comments on the Annual
Report. MPAC is comprised of the following members who had meetings on the below listed dates:
T 2.1.1
Legend: √ = Present; A = Apology; X = Absent without apology T 2.1.1
MUNICIPAL PUBLIC ACCOUNTS COMMITTEE (MPAC)
MEMBERS S M Zacarias (Chairperson)
N Z E Sitshoni
M S Khumalo
S S Mosia
A S Ngwenya
F Sarang
P T Schnetler
J J van der
Wath
S S Gumede
POLITICAL PARTY
ANC ANC ANC ANC ANC ANC DA DA PAC
GENDER F F F M M F M M M
DATES AND ATTENDANCE OF MPAC MEETINGS
2013-08-08 √ √ A √ A √ √ √ X
2013-08-21 √ √ √ √ X √ √ √ X
2013-11-07 √ √ √ A X A √ √ A 2013-11-11 (Continuation from 2013-11-07)
2014-02-13 √ √ √ √ X √ √ √ √
2014-02-20 √ √ A √ X √ √ √ √
2014-03-13 √ √ √ √ √ A √ √ A
2014-03-18 √ √ √ √ A A √ √ X
√ √ √ √ √ √ √ √ √
√ √ √ √ √ √ √ √ √
√ √ √ √ √ √ √ √ √
√ √ √ √ √ √ √ √ √
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 21
POLITICAL STRUCTURE
EXECUTIVE MAYOR
(CAROLINE MATSHIDISO MORAJANE)
SPEAKER
(LINDOKUHLE BLESSING ROBERT DHLAMINI)
CHIEF WHIP
(GOODNESS SANDY MSIBI)
MEMBERS OF THE MAYORAL COMMITTEE
MARIA MANKOMO NTULI BUSI SEKHONDE
MMC: Technical Services and MMC: Corporate Services and Community
Development and Planning Services and Safety
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 22
COUNCILLORS
The Lekwa Municipal Council consists of 30 Councilors, made up of 15 ward councilors and 15
proportional representative councilors and of the total councillors, 14 are female and 16 male. The
African National Congress has 23 councilors, of which 14 are female and 9 male. The Democratic
Alliance has 6 male councilors and the Pan Africanist Congress has 1 male councilor.
Appendix A consists of the complete list of Councilors, which distinguishes between ward councilors
and those appointed on a proportional basis including their attendance at council meetings and the
committees to which they were allocated.
Appendix B also sets out the various committees with their respective functions, which were
established and functional for the year under review.
T 2.1.2
POLITICAL DECISION-TAKING
Delete Directive note once comment is completed –
Explain how political decisions are taken and provide the percentage of Council Resolutions
implemented against the number of decisions taken. List those not implemented and indicate why not.
T 2.1.3
2.2 ADMINISTRATIVE GOVERNANCE
INTRODUCTION TO ADMINISTRATIVE GOVERNANCE
MFMA section 60 (b) stipulates that the Municipal Manager of a municipality is the accounting officer of the
municipality for the purposes of this Act and must provide guidance on compliance with this Act to political
structures; political office bearers, and officials of the municipality and any entity under the sole or shared control
of the municipality.
Delete Directive note once comment is completed – Comment as appropriate e.g. more general
explanations than can be given in the table set out below concerning the roles of Municipal Manager,
Deputy Municipal Managers and Executive Directors. Explain how they work together corporately in
their thematic and service group roles to make the greatest impact on service delivery. Explain any
major structural changes made or structural reviews commenced during the year.
T 2.2.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 23
Employment term
Performance
Contract Term
TOP ADMINISTRATIVE STRUCTURE
TIER 1
MUNICIPAL MANAGER:
LINDA BERNARD TSHABALALA
1 August 2012 – 31 July 2017
1 July 2013 – 30 June 2014
*TIERS 2 AND 3
TIER 2
Employment
Contract Term
Performance
Contract Term
Employment
Contract Term
Performance
Contract Term
Employment
Contract Term
Performance
Contract Term
Employment
Contract Term
Performance
Contract Term
EXECUTIVE MANAGER: TECHNICAL SERVICES
THEMBA DANIEL GOGWANE
2 September 2013 – 31 August 2018
2 September 2013 – 30 June 2014
EXECUTIVE MANAGER: DEVELOPMENT AND PLANNING
SEBOTE THABITHA MATLADI
2 September 2013 – 31 August 2018
2 September 2013 – 30 June 2014
EXECUTIVE MANAGER: CORPORATE SERVICES
SOLOMON SIPHO NKOSI
2 January 2014 – 31 December 2019
2 January 2014 – 30 June 2014
CHIEF FINANCIAL OFFICER
EDUARD CHRISTIAAN LE ROUX
13 January 2014 – 12 January 2019
13 January 2014 – 30 June 2014
EXECUTIVE MANAGER: COMMUNITY
SERVICES AND SAFETY
Vacant
T2.2.2
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 24
COMPONENT B: INTERGOVERNMENTAL RELATIONS
INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS
Section 3 of the MSA requires that municipalities exercise their executive and legislative authority
within the constitutional system of co-operative governance as envisaged section 41 of the
Constitution. To this end, the Municipality engages and interacts at different governmental spheres.
The primary purpose of the intergovernmental relations unit is to position the Municipality to enhance
intergovernmental relations by mobilizing resources and strategic partnerships which will ensure co-
ordination of service delivery by all departments to its citizens, thus ensuring a better quality of life to
all.
The Intergovernmental Relations (IGR) unit focuses on the following priority programme areas:
- Coordinating and managing all municipal relationships with other spheres of government;
- To ensure that there is a strong link within the Municipality and with the National and Provincial
spheres of government;
- To facilitate information and knowledge sharing through inter-municipal cooperation;
- To build managerial and technical capacity through study tours, exchange programmes, seminars,
conferences, etc;
- To develop project partnerships with other government departments that can be of mutual benefit;
- To create employment through the expanded public works programmes.
- To focus on supporting the successful implementation of the strategic priorities of the Municipality by
mobilizing on-going support from other spheres of government;
- To ensure a consistently positive image of the Municipality to all other spheres of government;
- Coordinating and aligning all events that involve other spheres of government – e.g. national days,
Izimbizos, etc.
- Promoting efficient lines of communication between the Municipality and other spheres of
government;
- Ensuring efficient relations and sharing models of good practice with other municipalities;
- Mainstreaming of transversal issues and special projects within the municipal agenda.
T 2.3.0
2.3 INTERGOVERNMENTAL RELATIONS
NATIONAL INTERGOVERNMENTAL STRUCTURES
The Municipality participated in the following meetings and programmes that are national
intergovernmental structures in nature:
- 01 November 2013: BRICS - National Youth Consultation Forum – Pretoria – OR Tambo Buildings
- 26 – 29 November 2013: SALGA National Members’ Assembly – OR Tambo International Airport.
The benefit of these was the development of project partnerships with government departments and
other key stakeholders operating within the government sphere.
T 2.3.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 25
PROVINCIAL INTERGOVERNMENTAL STRUCTURE
The municipality participated in the following meetings and programmes that are provincial
intergovernmental structures in nature:
- 03 December 2013: Provincial Energy Forum meeting – Ermelo
- 10-12 October 2013: Provincial Management Committee – Nelspruit
- 25 November 2013: Meeting with COGTA – Noble plant investment – Nelspruit
- 11 December 2013: Provincial Management Committee Presentation - Nelspruit
- 09 – 12 January 2014: Manifesto Launch and New Age Breakfast with President J Zuma – Nelspruit
- 12 – 14 February 2014: Provincial Management Committee Lekgotla – Middleburg
- 14 February 2014: SALGA & IGR Working Group and Municipal Demarcation Board - Nelspruit
- 25 February 2014: Eskom Regional Top Customer and Municipal Managers’ Forum – Middleburg
- 24 March 2014: Implementation of the capacity building strategy as well as the Human Resource and
IDP support plans project –Nkangala District Municipality
- 25 – 26 May 2014: COGTA Technical PCF - Nelspruit
- 18 – 21 June 2014: Executive Committee Lekgotla – Skukuza
The value obtained from attending these meetings and presentations was that it has assisted the
Municipality in gathering and sharing of information. Further, it has helped the Municipality in
integrating programmes within the Integrated Development Plan and to set programmes in motion in
some instances to promote investment in the area as well as to deal with other critical challenges that
the Municipality faced.
T 2.3.2
RELATIONSHIPS WITH MUNICIPAL ENTITITIES
The Municipality does not have any municipal entities. Attached as Appendix D is a complete list of
municipal functions and how these are rendered.
T 2.3.3
DISTRICT INTERGOVERNMENTAL STRUCTURES
The mechanisms used at District level is through a number of district forums that includes the
following:
- Municipal Managers’ Forum
- IDP Forum
- District Aids Council
- District Communication Forum
- District Disability Forum
- District Sports Council
- District Arts and Culture Forum
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 26
Challenges still exist with regards to the functionality of some of these forums at a district level
especially in respect of the integration and coordination of programmes and projects.
The Municipality participated in the following meetings and programmes that are district
intergovernmental structures in nature:
- 29 August 2013: Inter-Municipal Learning Event on Community Development - Gert Sibande District
Municipality (Ermelo)
- 30 August 2013: Women’s Day Commemoration – Gert Sibande District Municipality (Ermelo)
- 22 January 2014: Workshop on Sport Development - Gert Sibande District Municipality (Ermelo)
- 12 March 2014: Community Development Engagement Meeting – Gert Sibande District Municipality
(Ermelo)
- 14 May 2014: Preparatory Workshop for MPAC – Strategic Planning Lekgotla – Gert Sibande District
Municipality (Ermelo)
- 27 May 2014: People with Disability Sports Day – Sasol Club (Embalenhle)
T 2.3.4
Municipality | CHAPTER 2 – GOVERNANCE 27
COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION
OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION
Note: MSA section 17 (2): requires a municipality to establish and organise its administration to facilitate a culture
of accountability amongst its staff. Section 16 (1): states that a municipality must develop a system of municipal
governance that compliments formal representative governance with a system of participatory governance.
Section 18 (a) - (d): requires a municipality to supply its community with information concerning municipal
governance, management and development.
Delete Directive note once comment is completed - Provide a brief comment on how your
municipality carries out these responsibilities, improvements made during the year and benefits
derived from these activities during the year.
T 2.4.0
2.4 PUBLIC MEETINGS
COMMUNICATION, PARTICIPATION AND FORUMS
Delete Directive note once comment is completed - Include brief examples of public
communication and participatory initiatives employed by your municipality. Ensure that the reader
understands that consultation takes place throughout the year on various issues including matters
raised by members of the community. Make specific reference to the IDP/Budget and Performance
Management Representative forums, timing of meetings, approximate numbers attending, the purpose
of the meetings and the groups usually represented at each meeting. Indicate methods used to
improve the efficiency and effectiveness of these forums. Explain the use of municipal websites and
opinion surveys as referred to later in this chapter.
During the year under review, Council at its meeting held on 24 January 2014, approved the Advertiser
and Cosmos as the local newspapers of record and City Press and New Age as the national
newspapers of record for the Municipality. However, at the same meeting, Council also resolved not to
revive the Municipal newsletter due to the financial constraints experienced.
T 2.4.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 28
WARD COMMITTEES
Delete Directive note once comment is completed - Set out the key purposes of ward committees,
the major issues that the ward committee system has dealt with during the year. Refer to Appendix E
which contains further details on ward committee governance and to Appendix F that contains
performance data on a ward by ward basis.
T 2.4.2
Nature and purpose of meetingDate of
events
Number of
Participating
Municipal
Councillors
Number of
Participating
Municipal
Administrators
Number of
Community
members
attending
Issue
addressed
(Yes/No)
Dates and manner of
feedback given to community
T 2.4.3
Public Meetings
COMMENT ON THE EFFECTIVENESS OF THE PUBLIC MEETINGS HELD:
Delete Directive note once comment is completed – Set out the key benefits for the municipality
and the public from the above mentioned meetings.
T 2.4.3.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 29
2.5 IDP PARTICIPATION AND ALIGNMENT
IDP Participation and Alignment Criteria* Yes/No
Does the municipality have impact, outcome, input, output indicators? No
Does the IDP have priorities, objectives, KPIs, development strategies? Yes
Does the IDP have multi-year targets? Yes
Are the above aligned and can they calculate into a score? No
Does the budget align directly to the KPIs in the strategic plan? No
Do the IDP KPIs align to the Section 57 Managers Yes
Do the IDP KPIs lead to functional area KPIs as per the SDBIP? Yes
Do the IDP KPIs align with the provincial KPIs on the 12 Outcomes No
Were the indicators communicated to the public? Yes
Were the four quarter aligned reports submitted within stipulated time frames? No
* Section 26 Municipal Systems Act 2000
T 2.5.1
COMPONENT D: CORPORATE GOVERNANCE
OVERVIEW OF CORPORATE GOVERNANCE
Delete Directive note once comment is completed - Please explain in brief the scope of corporate
governance.
T 2.6.0
2.6 RISK MANAGEMENT
RISK MANAGEMENT
For the 2013/2014 financial year, a review of the municipal risks and associated potential risks was
undertaken during the month of July 2013. All risks identified, their associated controls and risk
mitigation plans were reviewed in preparation for the new financial year. The objective of this review
was to ensure sustainability and continuous improvement in the management of risks and that
appropriate and timely action are taken in response to the inevitable changes in the external and
internal organizational environments. During this process the following top risks were identified:
(a) Inadequate Security measures due to unrestricted access to municipal buildings;
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 30
(b) Failure to attract sufficient investors due to a fully-fledged LED unit not being established, with
updated LED strategy and a non-functional LED Forum;
(c) Lack of Service Level Agreement with some service providers and ineffective monitoring of such
service providers;
(d) Lack of wellness programmes (HIV and AIDS, EAP) with no dedicated official to deal with such
matters due to budgetary constraints;
(e) Ineffective IT governance with the unavailability of effective IT systems, insufficient IT staff, with no
IT strategy, policy and procedure manual in place, also critically is that there are no Business
Continuity Plan and Disaster Recovery Plan in place.
The following table provides a summary of the risk magnitude as identified:
Risk Magnitude No of Risk per Risk
Magnitude
Percentage
Maximum Risk 6
30%
High Risk 7
35 %
Medium Risk 5
25%
Low Risk 1
5 %
Minimum Risk 1
5 %
Total number of
Risk Identified 20 100%
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 31
0
1
2
3
4
5
6
7
Maximum Risk
High Risk
Medium Risk
Low Risk
Minimum Risk
No. of Risks per magnitude
The graph above depicts that the strategic risks as identified were classified as 30% Maximum risks
(6), 35% as High risks (7) and 25% Medium risks (5). All these risks were prioritised as they fall within
an unacceptable risk appetite for the Municipality.
The other 5% and 5%, 1 risk each, were classified as Low and Minimum priority risk areas
respectively
The current challenge is that with the Risk Manager has not yet been appointed to facilitate risk
management, and in the absence of an established Risk Management Committee for the year under
review, much work must still be done to set the right tone at the top for the Municipality to effectively
manage its risks. It is envisaged that the position will be filled in the next financial year and in the
interim, each Department is responsible to manage identified risks.
T 2.6.1
2.7 ANTI-CORRUPTION AND FRAUD
FRAUD AND ANTI-CORRUPTION STRATEGY
As part of the programme for the implementation of the approved Fraud Prevention Plan, the Internal
Audit unit facilitated workshops on fraud prevention as follows:
- Budget and Treasury (1st group): 8 April 2014
- Budget and Treasury (2nd
group): 9 April 2014
- Technical Services: 15 May 2014.
T 2.7.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 32
2.8 SUPPLY CHAIN MANAGEMENT
OVERVIEW SUPPLY CHAIN MANAGEMENT
Note: MFMA section 110 - 119; SCM Regulations 2005; and relevant MFMA circulars set out required
processes and guidance manuals to help ensure that SCM arrangements provide appropriate goods
and services, offer best value for money and minimize the opportunities for fraud and corruption.
Delete Directive note once comment is completed - Provide a brief narrative on the SCM policies
and processes, and indicate improvements contributing to effective service delivery. Also indicate
challenges experienced to attain the standards set out in Section 112 of the MFMA (see SCM
Implementation checklist MFMA Circular 40). Refer to information on long term contracts which is set
out in Appendix H. Explain remedial action being taken to address these shortfalls. Refer to further
comments set out under the Financial Performance – Chapter 5, Component D.
T 2.8.1
2.9 BY-LAWS
By-laws Introduced during 2013/2014
Newly Developed Revised Public Participation Conducted Prior to
Adoption of By-Laws (Yes/No)
Dates of Public Participation
By-Laws Gazetted* (Yes/No)
Date of Publication
No new by-laws were introduced for the 2013/20140financial year under review
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 33
2.10 WEBSITES
Municipal Website: Content and Currency of Material
Documents published on the Municipality's Website Yes / No Publishing
Date
2013/2014 annual and adjustments budgets and all budget-related documents Yes
2013/2014 Budget-related policies
The previous annual report: 2012/2013 Yes
2013/2014 Annual report still to be published Yes
All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act (Year 0) and resulting scorecards Yes
All service delivery agreements (Year 0) No
All long-term borrowing contracts (Year 0) N/A
All supply chain management contracts above a prescribed value (give value) for Year 0 Yes
An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during Year 1
Contracts agreed in Year 0 to which subsection (1) of section 33 apply, subject to subsection (3) of that section
Public-private partnership agreements referred to in section 120 made in Year 0 N/A
All quarterly reports tabled in the council in terms of section 52 (d) during Year 0 No
Note: MFMA s75 sets out the information that a municipality must include in its website as detailed above. Municipalities are, of course encouraged to use their websites more extensively than this to keep their community and stakeholders abreast of service delivery arrangements and municipal developments. T 2.10.1
COMMENT MUNICIPAL WEBSITE CONTENT AND ACCESS:
As prescribed per the requirements for Municipal websites as set out in section 75 of the MFMA, most
documents as required are placed on the website that can be accessed on www.lekwalm.gov.za. A
shrtcoming still exists in that delays are experienced in ensuring that documents are posted onto the
website within specified timeframes.
T 2.10.1.1
2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES
PUBLIC SATISFCATION LEVELS
Delete Directive note once comment is completed - Provide a brief overview of public satisfaction
with municipal service delivery.
T 2.11.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 2 – GOVERNANCE 34
Subject matter of survey Survey method Survey
date
No. of people
included in
survey
Survey results indicating
satisfaction or better
(%)*
Overall satisfaction with:
(a) Municipality
(b) Municipal Service Delivery
(c) Mayor
Satisfaction with:
(a) Refuse Collection
(b) Road Maintenance
(c) Electricity Supply
(d) Water Supply
(e) Information supplied by
municipality to the public
(f) Opportunities for consultation
on municipal affairs
T 2.11.2
Satisfaction Surveys Undertaken during: Year -1 and Year 0
* The percentage indicates the proportion of those surveyed that believed that relevant
performance was at least satisfactory
Concerning T 2.11.2:
Delete Note once table T 2.11.2 is complete - It is not intended that municipalities should necessarily
commission new surveys to complete the above table (T 2.11.2). This material should be obtained
from existing surveys undertaken during year -1 and year 0 and by analysing complaints and other
service feedback. The services specified in the table (a. Refuse; b. Road Maintenance; c. Electricity; d.
Water) are provided for illustration only. Although they are key services and should be included if data
is available, other services should be included too where data exists. Where future questionnaires are
planned then municipalities should have regard to national priorities; demographic variations; and
poverty.
T 2.11.2.1
COMMENT ON SATISFACTION LEVELS:
Delete Directive note once comment is completed – Indicate the efforts that were made to improve
satisfaction levels and to communicate successfully with the public on key issues of service delivery. It
is not intended that municipalities should commission new surveys to complete the above table
(T2.11.2). This material should be obtained from existing survey undertaken during year -1 and year 0
and by analyzing complaints and other service feedback. The services specified in the table (a.
Refuse; b. Road Maintenance; c. Electricity; d. Water) are provided for illustration only. Although they
are key services and should be included if data is available, other services should be included too
where data exists.
T 2.11.2.2
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 35
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE
REPORT PART I)
INTRODUCTION
The 2013/2014 financial year saw some further progress being made towards meeting service delivery
objectives, with a number of projects undertaken on water, sanitation and electricity provision. There
has however also been severe pressure on existing infrastructure as most of the bulk infrastructure is
functioning at beyond its maximum capacity with the expansion of especially residfential developments
without an equivalent upgrade and regular maintenance of such infrastructure over the past few year.
To this end concerted efforts are now being made to address bulk infrastructure challenges through
the gradual upgrade and reburbishment of water, sanitation and electricity infrastructure.
The Municipality does not have any entities under its management.
The functions of the Municipality are included in Appendix D.
T 3.0.1
COMPONENT A: BASIC SERVICES
This component includes: water; waste water (sanitation); electricity; waste management; and housing
services; and a summary of free basic services.
INTRODUCTION TO BASIC SERVICES
Delete Directive note once comment is completed - Provide brief introductory comments on the
pressing need to meeting basic service provisioning standards. Make reference to the use of entities
within the municipality to provide for the specific services as discussed in greater detail throughout this
chapter.
T 3.1.0
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
36
3.1. WATER PROVISION
INTRODUCTION TO WATER PROVISION
Note: Recent legislation includes the Water Services Act 1997 and the General Enabling Act 2005
Delete Directive note once comment is completed – Provide brief introductory comments on your
water provision strategy (the balance between supply and demand) and the progress being made to
achieve basic standards for Water Services, with particular reference to progress made by your
municipality in year 0 (including the blue drop status as defined by the department of Water Affairs, top
3 service delivery priorities and the impact you have had on them during the year). Set out measures
taken to improve performance and the major efficiencies achieved by your service during the year.
Indicate how your municipality identifies and responds to those communities that are living in poverty
and are deficient in this basic service. Give the name and extent of service provision of any municipal
entity(ies) responsible for rendering Water Services within the municipality.
T 3.1.1
Agriculture Forestry Industrial DomesticUnaccountable water
losses
Year -1 50 40 35 150 10
Year 0 50 44 46 9 11
Total Use of Water by Sector (cubic meters)
T 3.1.2
0
20
40
60
80
100
120
140
160
Agriculture Forestry Industrial Domestic Unaccountable water losses
Cu
bic
met
er
Water use by Sector
Year -1
Year 0
T 3.1.2.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
37
COMMENT ON WATER USE BY SECTOR:
Delete Directive note once comment is completed - Comment on the above trends, and on more
specific issues concerning water supply and demand as appropriate.
T 3.1.2.2
Year -3 Year -2 Year -1
Actual Actual Actual Actual
No. No. No. No.
Water: (above min level)
Piped water inside dwelling 857 546 655 846
Piped water inside yard (but not in dwelling) 647 865 456 486
Using public tap (within 200m from dwelling ) 486 486 465 546
Other water supply (within 200m)
Minimum Service Level and Above sub-total 1,990 1,898 1,576 1,879
Minimum Service Level and Above Percentage 80% 80% 76% 79%
Water: (below min level)
Using public tap (more than 200m from dwelling)
Other water supply (more than 200m from dwelling 486 486 486 486
No water supply
Below Minimum Service Level sub-total 486 486 486 486
Below Minimum Service Level Percentage 20% 20% 24% 21%
Total number of households* 2,476 2,384 2,062 2,365
* - To include informal settlements T 3.1.3
Water Service Delivery Levels
DescriptionYear 0
Households
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
38
Description Year -3 Year -2 Year -1
Actual Actual ActualOriginal
Budget
Adjusted
BudgetActual
No. No. No. No. No. No.
Formal Settlements
Total households 100,000 100,000 100,000 100,000 100,000 100,000
Households below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000
Proportion of households below minimum
service level 25% 25% 25% 25% 25% 25%
Informal Settlements
Total households 100,000 100,000 100,000 100,000 100,000 100,000
Households ts below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000
Proportion of households ts below minimum
service level 25% 25% 25% 25% 25% 25%
Households - Water Service Delivery Levels below the minimum
Year 0
Households
T 3.1.4
25
7265
01020304050607080
Proportion of households with access
to water points*
Proportion of households with access
to piped water
Proportion of households receiving 6
kl free#
Access to Water
Year -2
Year -1
Year 0
* Means access to 25 liters of potable water per day supplied within 200m of a household and with a
minimum flow of 10 liters per minute
# 6,000 liters of potable water supplied per formal connection per month
T 3.1.5
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 39
Water Service Policy Objectives Taken From IDP Service Objectives Baseline Outline Service Targets 2013/2014
Actual
Service Indicators
(i) (ii) (vii)
Service Objective xxx % increase in households with access to clean and safe drinking water
87% (28, 146) households with access to clean and safe drinking water
4% increase in households with access to clean and safe drinking water to 91%
Households provided with safe and clean drinking water, either through connections or portable water
Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the blue water drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 40
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Water Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.1.7
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.1.8
Financial Performance Year 0: Water Services
Details
Year 0
R'000
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Capital Expenditure: 2013/2014 Water Services
R' 000
Capital Projects
Year 0
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All 14,20
-
14,20
-
Completion of the Rising Main Line
2,25
-
2,25
- 2,25
Replacement of AC pipes with PVC pipes in Lekwa LM
6,25
-
6,25 6,25
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
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Installation of boreholes in rural(farm) areas of Lekwa LM
3,30
-
3,30
- 3,30
Installation of raw water turbine pumping units
1,90
-
1,90
- 1,90
Installation of water connections to 53 Households in Rooikoppen
0,50
-
0,50
- 0,50
-
-
- #DIV/0! 90,00
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.1.9
COMMENT ON WATER SERVICES PERFORMANCE OVERALL:
Delete Directive note once comment is completed – Confirm your year 5 targets set out in the IDP
schedule can be attained within approved budget provision and if not then state how you intend to
rectify the matter. Explain any failure to meet performance targets for the current year. Explain the
priority of the four largest capital projects and explain variances from budget for net operating and
capital expenditure. Also explain any likely variation to the total approved project value (arising from
year 0 and/or previous year actuals, or expected future variations).
T 3.1.10
3.2 WASTE WATER (SANITATION) PROVISION
INTRODUCTION TO SANITATION PROVISION
Delete Directive note once comment is completed – Provide brief introductory comments on your
strategy for the provision of Sanitation Services and progress being to redress any shortfall in basic
standards of service provision by 2012 and with particular reference to progress made in year 0
(include your top 3 service delivery priorities and the impact you have had on them during the year).
Set out measures taken to improve performance and the major efficiencies achieved by your service
during the year. Indicate how your municipality identifies and responds to those communities that are
living in poverty and are deficient in this basic service. Give the name and extent of service provision of
any municipal entity(ies) responsible for rendering Sanitation Services within the municipality.
Comment on trends in Sanitation provision as reflected below and on more specific issues concerning
Sanitation Service and demand as appropriate, this should include reporting against the milestones set
out to achieve the green drop status as defined by the Water Affairs department.
T 3.2.1
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–
100
200
300
400
500
600
700
800
900
Sanitation/Sewerage: (above minimum level) - Year 1
T 3.2.2
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Year -3 Year -2 Year -1
Outcome Outcome Outcome Actual
No. No. No. No.
Sanitation/sewerage: (above minimum level)
Flush toilet (connected to sewerage) 942 600 720 930
Flush toilet (with septic tank) 712 952 502 535
Chemical toilet 535 535 511 601
Pit toilet (ventilated) 124 135 103 100
Other toilet provisions (above min.service level) 13 13 15 11
Minimum Service Level and Above sub-total 2,325 2,236 1,851 2,178
Minimum Service Level and Above Percentage 68.9% 59.9% 55.5% 63.1%
Sanitation/sewerage: (below minimum level)
Bucket toilet 502 952 938 720
Other toilet provisions (below min.service level) 535 535 535 535
No toilet provisions 10 11 12 15
Below Minimum Service Level sub-total 1,047 1,498 1,485 1,271
Below Minimum Service Level Percentage 31.1% 40.1% 44.5% 36.9%
Total households 3,372 3,734 3,336 3,449
T 3.2.3*Total number of households including informal settlements
Sanitation Service Delivery Levels
DescriptionYear 0
*Households
Year -3 Year -2 Year -1
Actual Actual ActualOriginal
Budget
Adjusted
BudgetActual
No. No. No. No. No. No.
Formal Settlements
Total households 100,000 100,000 100,000 100,000 100,000 100,000 Households below minimum service
level 25,000 25,000 25,000 25,000 25,000 25,000 Proportion of households below
minimum service level 25% 25% 25% 25% 25% 25%
Informal Settlements
Total households 100,000 100,000 100,000 100,000 100,000 100,000
Households ts below minimum service 25,000 25,000 25,000 25,000 25,000 25,000 Proportion of households ts below
minimum service level 25% 25% 25% 25% 25% 25%
Households - Sanitation Service Delivery Levels below the minimum
Year 0
Households
T 3.2.4
Description
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44
69
69.5
70
70.5
71
71.5
72
72.5
Proportion of households with access to sanitation
Access to Sanitation
Year -2
Year -1
Year 0
T 3.2.5
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 45
Waste Water (Sanitation) Service Policy Objectives Taken From IDP Service Objectives Baseline Outline Service Targets 2013/2014
Actual
Service Indicators
(i) (ii) (iv) % increase in households with access to basic, decent sanitation
90% (26, 900) households with access to basic sanitation
2% increase in households with access to basic, decent sanitation
households provided with access to basic, decent sanitation.
Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the green drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 46
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Sanitation Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts
must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total
number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by
all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the
accumulated days. T 3.2.7
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.2.8
Financial Performance Year 0: Sanitation Services R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original
budget
Total Project
Value
Total All 260 326 378 31%
Project A 100 130 128 22% 280
Project B 80 91 90 11% 150
Project C 45 50 80 44% 320
Project D 35 55 80 56% 90
T 3.2.9
Capital Expenditure Year 0: Sanitation Services
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past
and future expenditure as appropriate.
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COMMENT ON SANITATION SERVICES PERFORMANCE OVERALL:
Delete Directive note once comment is completed - Explain the priority of the four largest capital
projects and explain variances from budget for operating and capital expenditure. Confirm your year 5
targets set out in the IDP schedule can be attained within approved budget provision and if not then
state how you intend to rectify the matter. Explain the priority of the four largest capital projects and
explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.2.10
3.3 ELECTRICITY
INTRODUCTION TO ELECTRICITY
Note: Recent legislation includes the Electricity Amendment Acts 1989; 1994; 1995; and the Electricity
Regulation Act 2006.
For the 2013/14 financial year, 92 farm worker houses were electrified utilizing an INEP grant. All legal
urban households are currently electrified. All legal but vacant stands are electrified upon request of a
developer after the payment of the prescribed fees. The 230 farm worker houses in the Lekwa
municipal electricity distribution area are not yet electrified. This is planned to be electrified in the
2014/15 financial year and possibly to be completed in the 2015/2016 financial year, utilizing INEP
funds.
T 3.3.1
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–
100
200
300
400
500
600
700
800
900
1,000
Electricity (at least min.service level) Electricity - prepaid (min.service level) Electricity (< min.service level) Electricity - prepaid (< min. service level)
Electricity
Year -2 Year -1 Year 0
T 3.3.2
Electricity Service Delivery Levels
Households
Description
2010/2011 2011/2012 2012/2013 2013/2014
Actual Actual Actual Actual
No. No. No. No.
Energy: (above minimum level)
Electricity (at least min.service level) 3738 3492 3344 3094
Electricity - prepaid (min.service level) 22817 23139 23342 23645
Minimum Service Level and Above sub-total 26555 26631 26686 26739
Minimum Service Level and Above Percentage 100,0% 100,0% 100,0% 100,0%
Energy: (below minimum level)
Electricity (< min.service level) –
–
–
Electricity - prepaid (< min. service level) –
–
– 230
Other energy sources –
–
–
–
Below Minimum Service Level sub-total –
–
–
–
Below Minimum Service Level Percentage 0,0% 0,0% 0,0% 0,0%
Total number of households 26555 26631 26686 26739
T 3.3.3
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Households - Electricity Service Delivery Levels below the minimum Households
Description
Year -3 Year -2 Year -1 Year 0
Actual Actual Actual Original Budget
Adjusted Budget
Actual
No. No. No. No. No. No.
Formal Settlements
Total households 10634 10642 10644 10644 52 10696 Households below minimum service level 0 0 0 0 0 0
Proportion of households below minimum service level 0% 0% 0% 0% 0% 0%
Informal Settlements
Total households 15921 15989 16042 16042 53 16095 Households at below minimum service level 0 0 0 230 0 230
Proportion of households at below minimum service level 0% 0% 0% 1% 0% 1%
T 3.3.4
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 50
Electricity Service Policy Objectives Taken From IDP Service Objectives Baselines Outline Service Targets 2013/2014
Actual
Service Indicators
(i) (ii) (iv) % increase in households with access to electricity
88% (27, 537) households with access to electricity for lighting
4% increase in households with access to electricity 1% of the 4% achieved.
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 51
Financial Performance Year 0: Electricity Services
R'000
Details
Year -1 Year 0
Actual Original Budget Adjustment Budget
Actual Variance to Budget
-Total Operational Revenue 175068 209348 188662 188662 9.8%
Expenditure:
Employees 11003 8130 10939 10939 34%
Repairs and Maintenance 3033 3022 4510 4510 49%
Other 187476 193250 185274 185274 4.1%
Total Operational Expenditure 201512 204402 200723 200723 1.8%
Net Operational Expenditure -26444 -4946 -12061 -12061 %
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.3.7
Employees: Electricity Services
Job Level
2012/2013 2013/2014
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 2 2 1 1 50%
4 - 6 2 2 2 0 0%
7 - 9 11 14 10 4 29%
10 - 12 0 0 0 0 #DIV/0!
13 - 15 0 3 1 2 67%
16 - 18 24 39 24 15 38%
19 - 20 0 0 0 0 #DIV/0!
Total 39 60 38 22 37%
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.3.6
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52
Capital Expenditure Year 2013/2014: Electricity Services
Capital Projects
2013/2014
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 2000000 0 2000000 0%
Installation of High mast lights in Lekwa Municipality
2 000 000,00 - 2 000 000,00 0% 2 000 000,00
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.3.8
COMMENT ON ELECTRICITY SERVICES PERFORMANCE OVERALL:
Electrification of 68 farm worker houses, 53 urban households and a 3km supply line and
electrification of 92 farmworker house (in 2013/14 financial year) in the last 4 years took priority and is
completed. The new project identified of the upgrading of a MV cable in Sakhile, will be done utilizing
INEP funds, as a priority.
Operation and maintenance is done according to NER Reg. 047, with services to the community
complying with NER Reg. 048
230 Farm worker houses in the Lekwa municipal electricity distribution area will be attended to in the
2015/16 financial year and possibly to be completed by 2016/17.
T 3.3.9
3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS,
WASTE DISPOSAL, STREET CLEANING AND RECYCLING)
INTRODUCTION TO WASTE MANAGEMENT
Delete Directive note once comment is completed – Provide brief introductory comments on the
actions being taken to achieve the National standard for weekly Refuse Collection from every
household by 2012 and discuss the major successes achieved and challenges faced in year 0.
Discuss briefly progress made with waste disposal, street cleaning and recycling. Set out your top 3
service delivery priorities and the impact you have had on them during the year. Explain the measures
taken to improve performance and the major efficiencies achieved by your service during the year.
Indicate how your municipality identifies and responds to those communities that are living in poverty
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
53
and are deficient in this basic service. Give the name and extent of service provision of any municipal
entity(ies) responsible for rendering Refuse Services within the municipality.
T 3.4.1
Year -3 Year -2 Year -1 Year 0
Actual Actual Actual Actual
No. No. No. No.
Solid Waste Removal: (Minimum level)
Removed at least once a week 2,895 2,685 2,846 2,235
Minimum Service Level and Above sub-total 2,895 2,685 2,846 2,235
Minimum Service Level and Above percentage 50.9% 47.1% 51.5% 44.8%
Solid Waste Removal: (Below minimum level)
Removed less frequently than once a week 655 547 565 523
Using communal refuse dump 865 846 487 865
Using own refuse dump 655 547 565 523
Other rubbish disposal 502 952 938 720
No rubbish disposal 112 123 124 124
Below Minimum Service Level sub-total 2,790 3,015 2,678 2,755
Below Minimum Service Level percentage 49.1% 52.9% 48.5% 55.2%
Total number of households 5,685 5,699 5,523 4,991
T 3.4.2
Solid Waste Service Delivery Levels
Description
Households
Year -3 Year -2 Year -1
Actual Actual ActualOriginal
Budget
Adjusted
BudgetActual
No. No. No. No. No. No.
Formal Settlements
Total households 100,000 100,000 100,000 100,000 100,000 100,000
Households below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000
Proportion of households below minimum
service level 25% 25% 25% 25% 25% 25%
Informal Settlements
Total households 100,000 100,000 100,000 100,000 100,000 100,000
Households ts below minimum service level 25,000 25,000 25,000 25,000 25,000 25,000
Proportion of households ts below minimum
service level 25% 25% 25% 25% 25% 25%
Households - Solid Waste Service Delivery Levels below the minimum
Households
Description
Year 0
T 3.4.3
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 54
Waste Management Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx
Household Waste Collection Services 895,200 household points to be serviced
895,200 household points to be serviced
893808 household points serviced
Business Waste Collection Services 20,688 business points to be serviced
20,688 business points to be serviced
20479 business points serviced
Street Cleaning Services To keep the environment clean To keep the environment clean
All streets and open spaces in CDB cleaned and maintained
Landfill sites Waste Disposal To adhere to landfill site permit requirements
To adhere to landfill site permit requirements
Landfil site requirements adhered to
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 55
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Solid Waste Magement Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts
must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total
number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by
all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the
accumulated days. T3.4.5
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Waste Disposal and Other Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts
must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total
number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by
all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the
accumulated days. T3.4.6
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Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.4.7
Financial Performance Year 0: Solid Waste Management Services R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.4.8
Financial Performance Year 0: Waste Disposal and Other ServicesR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Capital Expenditure 2013/2014: Waste Management Services
Capital Projects
2013/2014
Budget Adjustment Budget
Actual Expenditure
Variance from original
budget
Total Project Value
Total All 6 500 000,00 - 6 500 000,00
-
Construction of Standerton Landfill site 6 500 000,00
- 6 500 000,00
- 6 500 000,00
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.4.9
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57
COMMENT ON WASTE MANGEMENT SERVICE PERFORMANCE OVERALL:
Delete Directive note once comment is completed –Explain the priority of the four largest capital
projects and explain variances from budget for operating and capital expenditure. Confirm your year 5
targets set out in the IDP schedule can be attained within approved budget provision and if not then
state how you intend to rectify the matter. Explain the priority of the four largest capital projects and
explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.4.10
3.5 HOUSING
INTRODUCTION TO HOUSING
With the five year Housing Chapter having been adopted and approved by the Council during the
2011/2012 financial year, the Housing Chapter has become the strategic document which serves as a
guide to provide strategic solutions to human settlements developments including ways of tackling the
ever present challenge of settling our people. The Municipality has over the past 20 years established
a number of townships in an attempt to avail formalised stands to people who were previously settled
on various pockets of informal settlements across the Municipality, with the last of these townships
established by 2011. With the township establishment and informal settlements upgrade programme,
it resulted in the construction of houses at Sakhile extension 1,3,4,5,6 Standerton Extension 6 as and
Azalea Extension 1 as well as Standerton Extension 8 of which currently there is a development going
on of the construction of houses and this project is an integrated human settlements which will cater
for different housing typologies. The Municipality also successfully implemented the rectification of
Pre-1994 housing stock which saw the erection of 150 housing units in the townships of Azalea and
Sakhile. The Municipality is also delighted to be amongst the 45 Municipalities identified by the
National Department of Human Settlements to participate on the National Upgrade Support
Programme. The Community Residential Units Project at the Sakhile Hostels which is at the Practical
completion which also saw the completion of 34 new double storey units. With the strides made in
addressing the housing backlog within the Municipality these developments have witness the
challenges which still need to be resolved namely:
(a)Soil conditions at Lekwa Municipality poses a great challenge if reinforced foundations are not used
to build houses.
(b)The outstanding finalisation of the level 1 accreditation application of the Municipality.
(c)Assessments still to be carried out on some of the old, dilapidated pre-1994 housing stock.
(d)Poor and shoddy workmanship by contractors appointed by the Department of Human Settlements
(e)Shortage of Municipal Building Inspectors to assist the Provincial Building Inspectors in terms of
quality assurance during the construction process as well as to give technical advice as and when
required.
(f)The illegal sale of RDP houses by the beneficiaries.
(g)The illegal sale of stands by those who benefitted during the formalisation of township extensions
(h)Illegal land invasion
(i)The eviction by farm owners of farm dwellers and employees prior consultation with the Municipality
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(j)The inability of the Municipality to access the pockets of land owned by parastatals around
Municipality suitable for human settlements, which is not accessible.
(k)The process of deletion which has denied potential beneficiaries
(l)Some beneficiaries reluctant to allow the Municipality to demolish the old dilapidated houses after
the construction of new houses.
(m)Operating with limited resources, such as vehicles to effectively carry out the duties assigned to the
Division
T 3.5.1
Percentage of households with access to basic housing Year end Total households
(including in formal and informal settlements)
Households in formal settlements
Percentage of HHs in formal settlements
2010/2011 560000 350000 62,5%
2011/2012 654000 450000 68,8%
2012/2013 654000 500000 76,5%
2013/2014 684000 540000 78,9%
T 3.5.2
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Housing Service Policy Objectives Taken From IDP Service Objectives Baseline Outline Service Targets Year 2013/2014
Target Actual
Service Indicators *Previous Year
(i) (ii) (iii) (iv)
Service Objective xxx
Construction of quality and habitable housing units under the upgrading of informal settlements programme
Currently the backlog in respect of the informal dwellings in the formally proclaimed townships is estimated at 2421
279 housing units handed over to beneficiaries by the end of the 4th quarter
100% construction and completion of 279 housing units
269 housing units completed out of the 279 (10 units outstanding)
Rectification, Demolition and electrification of old housing rental units under the Rectification of Pre-1994 Housing Stock
Rectification, Demolition of 503 old housing rental stock units that were assessed by Messrs Cifu Consulting Engineers under the Rectification of Pre-1994 Housing Stock Programme
150 old housing units demolished and electricity reconnected to the new housing units completed by the end of the 2nd quarter
100% demolition of 150 old housing units as well as reconnection of electricity to the newly completed 150 housing units
0 out of 150 housing units demolished and reconnection of electricity to 150 units
Construction of quality and habitable housing units for the landless in Thuthukani under the Project-Linked Subsidy Programme
Currently the are 267 housing units completed under this project and the DoHS will appoint a contractor for the outstanding 33 housing units
33 housing units handed over to beneficiaries by the end of the 3rd quarter
100% construction and completion of 33 outstanding housing units
16 out of 33 units completed (17 outstanding)
Conversion of old public sector hostels into quality and habitable community residential units
currently there are 244 old public sector hostel dwellings to be converted into community residential units
Three double storey community residential units handed over to the municipality by the end of 3rd quarter
100% construction and completion of three double storey units
Three double storey community residential units completed (34 Community Residential units)
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Development of Standerton Extension 8
Currently the township is in a green field and expectation is that by the end of July 2013 the project will commence with installation of Municipal engineering services
Provision of different housing typology to 4000 residents over the period of five years
Commence with the installation of municipal engineering services
water reticulation 80 % complete; sewer 80% complete, stormwater 63% complete; roads 30% complete
Provision of security of tenure
Currently there are 3242 RDP housing units constructed of which the DoHS is in the process of making title deeds for beneficiaries
Provision of title deeds to 3242 RDP housing units by the end of the 4th quarter
100% transfer of ownership and handover of title deeds for 3242 RDP units.
1805 title deeds prepared but not yet handed over to beneficiaries
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 61
Employees: Housing Services
Job Level
Year 2012/2013 Year 2013/2014
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 2 2 2 0 0%
4 - 6 1 1 1 0 0%
7 - 9 3 3 3 2 67%
10 - 12 2 4 2 2 50%
13 - 15 0 0 0 0 #DIV/0!
16 - 18 0 0 0 0 #DIV/0!
19 - 20 0 0 0 0 #DIV/0!
Total 8 10 8 4 40%
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.5.4
Capital Expenditure 2013/2014: Housing Services
R' 000
Capital Projects
2013/2014
Budget Adjustment Budget
Actual Expenditure Variance from original
budget
Total Project Value
Total All 102 321 647,00 - 52 728 592,22 -94% 102 321 647,00
Project A 21 113 011,67 - 14 972 930,44 -41% 21 113 011,67
Project B 20 134 158,80 - 19 085 820,16 -5% 20 134 158,80
Project C 3 151 498,05 - 2 448 713,14 -29% 3 151 498,05
Project D 1 237 128,48 1 221 128,48 -1% 1 237 128,48
Project E 56 685 850,00 - 15 000 000,00 -278% 56 685 850,00
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.5.6
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COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICE OVERALL:
Since the funding of housing is still a competency of the Provincial Department of Human Settlements,
the Municipality is not in a position to fast track these projects but engagements will be made to make
application for level 1 accreditation which may assist in the expeditious completion of the housing
projects. In terms of the successes achieved for the year it can be attributed to the following:
(a) being able to log on to the Housing Subsidy Portal, enabling Housing Officials to access
information regarding beneficiaries’ applications status, if approved or declined and the reasons
thereof;
(b) The speedy provision of beneficiaries when housing units are allocated to the Municipality
(c) The process of registering beneficiaries for security of tenure
(d) Appointment of a Developer by the Provincial DoHS for the construction of 500 RDP housing units
as well as servicing of sites in Standerton Extension 8 under the Integrated Human Settlements
Development.
T 3.5.7
3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT
INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT
Delete Directive note once comment is complete – Provide brief introductory comments on the
progress being made to achieve Free Basic Services and summarise your municipality’s policies
towards indigent support.
T 3.6.1
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–
10
20
30
40
50
60
70
80
90
100
Year -3 Year -2 Year -1 Year 0
Ho
use
ho
lds
('00
0)Free Basic Household Services
Water (6 kilolitres per household per month)
Sanitation (free minimum level service)
Electricity/other energy (50kwh per household per month)
Refuse (removed at least once a week)
Data sourced from MBRR A10
T 3.6.2
Total Access % Access % Access % Access %
Year -2 100,000 18,000 12,000 67% 10,000 56% 13,000 72% 7,000 39%
Year -1 103,000 18,500 13,000 70% 11,000 59% 14,500 78% 8,000 43%
Year 0 105,000 19,000 15,000 79% 12,000 63% 16,100 85% 9,000 47%
T 3.6.3
Free Basic Refuse
Households earning less than R1,100 per month
Number of households
Free Basic Services To Low Income Households
Total Free Basic Water Free Basic Sanitation Free Basic Electricity
Year -1
Actual Budget Adjustment
Budget
Actual Variance to
Budget
Water 200 244 250 248 2%
Waste Water (Sanitation) 220 240 250 245 2%
Electricity 100 120 130 135 11%
Waste Management (Solid Waste) 105 110 120 125 12%
Total 625 714 750 753 5%
Financial Performance Year 0: Cost to Municipality of Free Basic Services Delivered
Services Delivered Year 0
T 3.6.4
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COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT:
Delete Directive note once comment is completed – Comment on the support given to low earners
and in particular those affected by shortfalls in basic service provision. Provide detail of indigent
policy, expenditure and grants received in year 0 and explain how these have been translated into
programmes designed to improve levels of self sufficiency.
T 3.6.6
COMPONENT B: ROAD TRANSPORT
This component includes: roads; transport; and waste water (stormwater drainage).
INTRODUCTION TO ROAD TRANSPORT
Delete Directive note once comment is completed - Provide brief introductory comments on the
strategy, priorities and provision regarding road development and maintenance and transport including
public bus services.
T 3.7
3.7 ROADS
INTRODUCTION TO ROADS
Delete Directive note once comment is completed – Explain in brief your Roads strategy, the steps
taken towards the implementation of the strategy and discuss the major successes achieved and
challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had
on them during the year). Set out measures taken to improve performance and the major efficiencies
achieved by your service during the year. Refer to support given to those communities that are living in
poverty. Give the name and extent of service provision of any municipal entity(ies) responsible for
rendering Roads Services within the municipality.
T 3.7.1
Gravel Road Infrastructure Kilometers
Total gravel roads New gravel roads constructed
Gravel roads upgraded to tar
Gravel roads graded/maintained
2013/2014 185 0 0 11
T 3.7.2
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Total tarred roads New tar roadsExisting tar roads
re-tarred
Existing tar roads
re-sheeted
Tar roads
maintained
Year -2 85 10 23 18 100
Year -1 98 14 25 15 120
Year 0 114 20 30 25 140
T 3.7.3
Tarred Road Infrastructure
Kilometers
New Gravel - Tar Maintained New Re-worked Maintained
Year -2 450000 1700000 250000 1950000 1050000 400000
Year -1 475000 1800000 260000 2020000 1220000 500000
Year 0 490000 1900000 280000 2300000 1300000 550000
T 3.7.4
Cost of Construction/Maintenance
Gravel Tar
R' 000
0
500000
1000000
1500000
2000000
2500000
Year -2 Year -1 Year 0
Ran
d V
alu
e
Road Infrastructure costs
Gravel New
Gravel - Tar
Gravel - Maintained
Tar - New
Tar Re-worked
Tar Maintained
T 3.7.5
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Road Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx
168 km of tarred or Paved finished roads in Lekwa Municipality are for proper transportation and accessibility to local residents
Pothole patch and cleaning of streets to be well drivable without obstruction
Patching of 520m² of potholes around Lekwa Municipality
880m² of potholes patched around Lekwa Municipality
185 km of gravel roads in Lekwa Municipality are for transportation and accessibility to local residents
Regravelling and blading of gravel roads Regravelling of 8km in various Area, Blading of 15km fire breaks
Regravelling of 11,3km of roads in various Lekwa areas, Blading of 18km of fire breaks
170km of Storm water drainage in Lekwa Municipality are used to collect all surface water to avoid flooding
Construction and Cleaning of Stormwater structures Maintenance of 30km of Stormwater structures in various areas of the Municipality
31km stormwater structures cleaned and maintained
Implementation of infrastructure maintenance plan for improvement on Municipal assets
Maintenance of municipal buildings: painting and General maintenance
Renovation of 4 Municipal Halls, Maintenance of 20 Municipal Buildings
Various municipal building renovated and maintained
Registration of Municipal borrow pit in Morgenzon and Standerton
Municipal borrowpit to access gravel for maintenance of all gravel rodas and for upgrading of gravel roads
Registration of Municipal borrowpit in Morgenzon and in Standerton
Test results received from Dept. Minerals and Energy on assessment and registration process. Final registrations not yet complete.
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 67
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Road Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost
(excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior
management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.7.7
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.7.8
Financial Performance Year 0: Road Services
R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Capital Expenditure Year 2013/2014: Road Services
R' 000
Capital Projects
2013/2014
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 7200 0 7200 0%
Re-construction of roads within Lekwa Municipality phase 3 (Nelson Mandela Road)
6000 0 6000 0% 280
Construction and upgrade of storm water network phase 3
1200 0 1200 0% 150
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Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.7.9
COMMENT ON THE PERFORMANCE OF ROADS OVERALL:
Delete Directive note once comment is completed - Explain the priority of the four largest capital
projects and explain variances from budget for operating and capital expenditure. Confirm your year 5
targets set out in the IDP schedule can be attained within approved budget provision and if not then
state how you intend to rectify the matter. Explain the priority of the four largest capital projects and
explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations). Where provincial roads have been delegated to your municipality ensure
that this is presented as an additional major issue in this section.
T 3.7.10
3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION)
INTRODUCTION TO TRANSPORT
INTRODUCTION TO LICENSING
The License Section function mainly ensures the registering and licensing of vehicles and drivers for
the purpose of maintaining order and legality and to promote road safety in general.
CHALLENGES FACED BY THIS SECTION
Insufficient personnel (Examiners)-The demand for driving licenses versus manpower to test.
The current ratio is 3:5, with the suspension of one of the examiners dropped it to 2:5. The workable
ratio is supposed to be 5:5
(Cashiers)- The best practice module cannot be implemented. The best
practice human resource requirements are to have an enquiries clerk and a verification clerk of which
is non-existent within the license section.
Insufficient office space – this cause the cashiers to be exposed to security hazards eg.
Robberies. No robberies took place, but the public move behind the cashiers to gain excess to the
supervisors’ office for enquiries, thus exposing ourselves to this security hazard.
Proposed that the Traffic Section be moved to the old Volskas building-this will create amble space.
The opening of the new private vehicle testing station:- The intake on applications for
roadworthiness have dropped drastically and it’s having a negative revenue impact on our section.
T 3.8.1
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Employees: Licensing Services
Job Level
2012/2013 2013/2014
Employees Posts Employees Vacancies (fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 4 6 4 2 25%
7 - 9 1 1 1 0 0%
10 - 12 9 10 9 1
13 - 15 0 0 0 0 0%
16 - 18 2 2 2 0 0%
19 - 20
Total 17 20 17 3 15%
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.8.4
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Licensing Services Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx Regulate and control hawkers No of inspections conducted on
hawkers 24 inspections 21 inspections
For the purpose of maintaining order and legality No of vehicles registered and licensed
No of vehicles registered and licensed (24 000 Standerton; 2 000 Morgenzon)
35 563 Standerton 3818 Morgenzon Vehicles registered and licensed
Maintain order in the legality of vehicles No of vehicles tested for roadworthiness
3000 vehicles tested for roadworthiness
2867 vehicles tested for roadworthiness
Ensure learner drivers are registered for the purpose of maintaining order and legality
No of applicants tested for learners
No of applicants tested for learners (3420 Standerton; 1760 Morgenzon)
2371 Standerton 1689 Morgenzon applicants tested for learners licenses
Ensure drivers are registered for the purpose of maintaining order and legality
No of applicants tested for driving license
No of applicants tested for driving license
2866 applicants tested for drivers licenses
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 71
COMMENT ON THE PERFORMANCE OF TRANSPORT OVERALL:
Delete Directive note once comment is completed - Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.8.7
3.9 WASTE WATER (STORMWATER DRAINAGE)
INTRODUCTION TO STORMWATER DRAINAGE
Delete Directive note once comment is completed – Provide brief introductory comments on the
progress being made to improve stormwater drainage and discuss the major successes achieved and
challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had
on them during the year). Set out measures taken to improve performance and the major efficiencies
achieved by your service during the year. Refer to support given to informal settlement and rural
development. Refer to support given to those communities that are living in poverty. Give the name
and extent of service provision of any municipal entity(ies) responsible for rendering Stormwater
Drainage Services within the municipality.
T 3.9.1
Total Stormwater
measures
New stormwater
measures
Stormwater measures
upgraded
Stormwater measures
maintained
Year -2 145 15 10 100
Year -1 160 20 12 120
Year 0 166 25 14 140
T 3.9.2
Stormwater Infrastructure
Kilometers
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New Upgraded Maintained
Year -2 1,700,000 600,000 280,000
Year -1 1,800,000 700,000 330,000
Year 0 1,900,000 900,000 420,000
T 3.9.3
Cost of Construction/Maintenance
Stormwater Measures
R' 000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Year -2 Year -1 Year 0
Stormwater infrastructure costs
New Upgraded Maintained
T 3.9.4
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Budget Adjustment
Budget
Actual
Expenditure
Variance from
original
budget
Total Project
Value
Total All 260 326 378 31%
Project A 100 130 128 22% 280
Project B 80 91 90 11% 150
Project C 45 50 80 44% 320
Project D 35 55 80 56% 90
T 3.9.8
Capital Expenditure Year 0: Stormwater Services
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past
and future expenditure as appropriate.
COMMENT ON THE PERFORMANCE OF STORMWATER DRAINAGE OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T3.9.9
COMPONENT C: PLANNING AND DEVELOPMENT
This component includes: planning; and local economic development.
INTRODUCTION TO PLANNING AND DEVELOPMENT
Delete Directive note once comment is completed - Provide brief overview of the opportunities and
challenges in the fields of economic development and physical planning field for your municipality.
T 3.10
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74
3.10 PLANNING
INTRODUCTION TO PLANNING
Delete Directive note once comment is completed - Set out in brief the main elements of your
planning strategies (and make particular reference to achievements and challenges in year 0); Town
Planning; and building regulation and enforcement). Set out your top 3 service delivery priorities and
the impact you have had on them during the year. Set out measures taken to improve performance
and the major efficiencies achieved by your service during the year. Refer to support given to those
communities that are living in poverty.
T 3.10.1
Year -1 Year 0 Year -1 Year 0 Year -1 Year 0
Planning application received
Determination made in year of receipt
Determination made in following year
Applications withdrawn
Applications outstanding at year end
T 3.10.2
Applications for Land Use Development
Formalisation of Townships Rezoning Built EnviromentDetail
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 75
Land and Planning Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx
Enforcement of Town Planning Scheme, SDF & National Building Regulations
Approve compliant building plans, complete inspections & Issue letters of contravention
Approve 90 building plans, Complete 360 inspections, issue 70 letters regarding contraventions
Approved143 building plans, Completed 508 inspections, issued 51 letters regarding contraventions
Correspondence attended to Reply to correspondence received - letters & Memo's
Reply to 20 letters from public & 24 replies via memo's to other Departments
Replied to 48 letters from public & replied to 33 via memo's to other Departments
Survey & pegging of formal (legal) stands in Lekwa
Eradicate encroachments onto private and Council Owned land
Correct 120 stands in lekwa Corrected 154 stands in Lekwa by re-pegging
Subdivision and consolodation of stands in Lekwa
Create a more compact town as depicted in the Development Facilitation Act.
Approve 16 applications Approved 17 applications
Land Use applications (Rezonings) Create a more compact town as depicted in the Development Facilitation Act. Compliance to Town Planning Scheme and SDF
Approve 16 applications Approved 17 applications
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 76
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Planning Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.10.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.10.5
Financial Performance Year 0: Planning Services R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF PHYSICAL PLANNING OVERALL:
Delete Directive note once comment is completed - Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.10.7
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3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET
PLACES)
INTRODUCTION TO ECONOMIC DEVLOPMENT
Delete Directive note once comment is completed – Provide brief introductory comments on your
economic development strategy and the contribution being made to the local economy in facilitating
job creation through by Local Economic Development Services in year 0 (include your top 3 service
delivery priorities and the impact you have had on them during the year). Set out measures taken to
improve performance and the major efficiencies achieved by your service during the year. Refer to
support given to those communities that are living in poverty. Give the name and extent of service
provision of any municipal entity(ies) responsible for rendering Housing Services within the
municipality.
T 3.11.1
Sector Year -2 Year -1 Year 0
Agric, forestry and fishing 2 1.5 1.5
Mining and quarrying 6 5 2
Manufacturing 56 58 63
Wholesale and retail trade 45 51 52
Finance, property, etc. 51 48 52
Govt, community and social services 23 25 25
Infrastructure services 34 38 41
Total 217 226.5 236.5
T 3.11.2
Economic Activity by Sector
R '000
Jobs
Year 1 Year -1 Year 0
No. No. No.
Agric, forestry and fishing 20,000 25,000 30,000
Mining and quarrying 400,000 435,000 372,000
Manufacturing 320,000 300,000 270,000
Wholesale and retail trade 190,000 200,000 210,000
Finance, property, etc. 275,000 255,000 235,000
Govt, community and social services 300,000 310,000 320,000
Infrastructure services 400,000 430,000 450,000
Total 1905000 1955000 1887000
T 3.11.3
Economic Employment by Sector
Sector
COMMENT ON LOCAL JOB OPPORTUNITIES:
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Delete Directive note once comment is completed - Comment briefly on the short and longer term
prospects for economic growth and development referring to the above. Include in this section
references to Tourism and Market Places (including street traders)
T 3.11.4
Jobs created Jobs
lost/displaced by
other initiatives
Net total jobs
created in year
Method of validating jobs
created/lost
No. No. No.
Total (all initiatives)
Year -2
Year -1
Year 0
Initiative A (Year 0)
Initiative B (Year 0)
Initiative C (Year 0)
T 3.11.5
Jobs Created during Year 0 by LED Initiatives (Excluding EPWP projects)
Total Jobs created / Top 3
initiatives
EPWP Projects Jobs created through EPWP
projects
No. No.
Year -2 40 2,000
Year -1 50 2,900
Year 0 66 4,500
* - Extended Public Works Programme T 3.11.6
Job creation through EPWP* projects
Details
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Local Economic Development Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx Profiling of all businesses # of reports generated from economic profiling of businesses 2 reports on the economic
profiling of businesses No reports on the economic profiling of businesses generated
To create a conducive environment for local economic growth
Revised LED Strategy for Vision 2030 Develop revised Vision 2030 LED Strategy
Not achieved
# of LED Forum meetings held Relaunch of LED Forum and 3 LED Forum meetings facilitated
LED Forum relaunched, 1 LED Forum meetings facilitated
# of reports on SMMEs and cooperatives registered on database
4 reports on SMME and cooperatives database registrations and updates annually
1 report on SMME and cooperatives database registrations and updates annually
# of reports on SMMEs and cooperatives trained 4 reports on SMMEs and cooperatives trained by end June 2014
Not achieved
% completion of LED project implemented from LED Strategy 100% completion of project implemented from LED Strategy
Not achieved
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 80
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Local Economic Development Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.11.8
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.11.9
Financial Performance Year 0: Local Economic Development Services R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON LOCAL ECONOMIC DEVELOPMENT PERFORMANCE OVERALL:
Delete Directive note once comment is completed - Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.11.11
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COMPONENT D: COMMUNITY & SOCIAL SERVICES
This component includes: libraries and archives; museums arts and galleries; community halls;
cemeteries and crematoria; child care; aged care; social programmes, theatres.
INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES
Delete Directive note once comment is completed – Provide brief introductory comments. Refer to
support given to those communities that are living in poverty.
T 3.52
3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES;
OTHER (THEATRES, ZOOS, ETC)
INTRODUCTION TO LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T3.12.1
SERVICE STATISTICS FOR LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY
FACILITIES; OTHER (THEATRES, ZOOS, ETC)
T 3.12.2
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Environment, Sports and Recreation Services Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx Provide and prepare burial sites # of burial sites prepared sites prepared for burials as
per applications received 810 sites prepared for burials
Clean and maintained cemeteries # cemeteries regularly cleaned and maintained 12 cemeteries cleaned and maintained
12 cemeteries cleaned and maintained
Clean and maintained parks and gardens # of parks and gardens maintained All parks and gardens cleaned and maintained
All parks and gardens cleaned and maintained
Clean and maintained sport and recreational facilities # of sport and recreation facilities cleaned and maintained
Clean and maintain 15 sport facilities and 7 recreational facilities
Clean and maintain 15 sport facilities and 7 recreational facilities
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 83
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Libraries; Archives; Museums; Galleries; Community Facilities; Other
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.12.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.12.5
Financial Performance Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; OtherR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Capital Expenditure Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; Other
R' 000
Capital Projects
2013/2014
Budget Adjustment Budget
Actual Expenditure
Variance from
original budget
Total Project Value
Total All 11 300 000,00 - 11 300 000,00
-
Sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court. 3 300 000,00
- 3 300 000,00
- 3 300 000,00
Construction of Multi-Purpose Community Hall for Rooikoppen (Phase 1)
1 000 000,00 - 1 000 000,00
- 1 000 000,00
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Construction of Multi-Purpose Community Hall for Rooikoppen (Phase 2) 7 000 000,00
- 7 000 000,00
- 7 000 000,00
Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.12.6
COMMENT ON THE PERFORMANCE OF LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES;
COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC) OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.12.7
3.13 CEMETORIES AND CREMATORIUMS
INTRODUCTION TO CEMETORIES & CREMATORIUMS
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T 3.13.1
SERVICE STATISTICS FOR CEMETORIES & CREMATORIUMS
T 3.13.2
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Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Cemetories and Cremotoriums
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.13.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.13.5
Financial Performance Year 0: Cemetories and Crematoriums R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF CEMETORIES & CREMATORIUMS OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.13.7
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3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES
Issues related to child and aged care social programmes are part of the Intergovernmental Relations
service delivery objectives as dealt with under Chapter 2, Component B of this report.
COMPONENT E: ENVIRONMENTAL PROTECTION
This component includes: pollution control; biodiversity and landscape; and coastal protection.
INTRODUCTION TO ENVIRONMENTAL PROTECTION
Delete Directive note once comment is completed – Provide brief introductory comments.
T 3.14
3.15 POLLUTION CONTROL
INTRODUCTION TO POLLUTION CONTROL
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T 3.15.1
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COMMENT ON THE PERFORMANCE OF POLLUTION CONTROL OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.15.7
3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG.
COASTAL PROTECTION)
The Municipality does not have functions related to coastal protection.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 88
COMPONENT F: HEALTH
This component includes: clinics; ambulance services; and health inspections.
3.17 CLINICS
INTRODUCTION TO CLINICS
The ambulance and primary health care is a competence of the Department of Health and such the
Municipality does not provide the said service.
Health inspections is the responsibility of the Gert Sibande District Municipality.
T 3.17.1
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3.18 AMBULANCE SERVICES
INTRODUCTION TO AMBULANCE SERVICES
Ambulance services are the competence of the Department of Health.
T 3.18.1
3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION;
ETC
Health inspections is the competence of the Gert Sibande District Municipality.
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 90
COMPONENT G: SECURITY AND SAFETY
This component includes: police; fire; disaster management, licensing and control of animals, and
control of public nuisances, etc.
INTRODUCTION TO SECURITY & SAFETY
Delete Directive note once comment is completed – Provide brief introductory comments.
T 3.20
3.20 TRAFFIC LAW ENFORCEMENT
INTRODUCTION TO TRAFFIC LAW ENFORCEMENT
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T 3.20.1
Traffic Law Enforcement Services
Details Year -1 Year 0 Year 1
Actual No. Estimate No. Actual No. Estimate No.
1 Number of road traffic accidents during the year
2 Number of by-law infringements attended
3 Number of traffic officers in the field on an average day
4 Number of traffic officers on duty on an average day
T 3.20.2
Delete Directive note once table is completed – the number of officers available is determined by
sampling the number of officers in the field and in offices and stations on the same day, sampling
different times of day and different days of the week throughout the year.
T 3.20.2.1
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Police Policy Objectives Taken From IDP Service Objectives Outline Service Targets 2013/2014
Target Actual
Service Indicators
(i) (ii)
Service Objective xxx To trace outstanding fines No. of Roadblocks 24 Roadblocks 10 Roadblocks
To maintain traffic law enforcement Tracing of warrants of arrest 40 Warrants of arrest traced
55 Warrants of arrest traced
To enforce law and safety of road users
Traffic Law enforcement 11 520 Tickets 4863 Tickets
Repair roadsigns and paint roads for safety
No. of roadsigns repaired and erected/road painted
Daily Daily
Escort funerals and school kids for safety
No. of funeral escorts/scholar patrol/abnormal loads
Per request and weekly
Per request and weekly
To keep record of cases written Capturing of sec 56 tickets Daily Daily
To keep record of infringements paid Capturing daily payments Daily Daily
To keep record of accidents captured Capturing of accidents reports/forms Daily Daily
To administer cases that must go to court
Management of court rolls As per court dates As per court dates
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
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Job Level Year -1
Police Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
Administrators No. No. No. No. %
Chief Police Officer & Deputy
Other Police Officers
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Police Officers
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June.
*Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the
total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days
lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to
the accumulated days. T 3.20.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Police Officers
Other employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.20.5
Financial Performance Year 0: PoliceR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF TRAFFIC LAW ENFOREMENT OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.20.7
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3.21 FIRE
INTRODUCTION TO FIRE SERVICES
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T 3.21.1
Fire and Emergency Rescue Services
Details 2013/2014
Actual No.
1 Total fires attended in the year 92
2 Lives lost as a result of fires 5
3 Veld fires attended to 285
4 Motor Vehicles Accidents attended to 111
5 Lives lost as a result of motor vehicle accidents 14
6 Total of other incidents attended in the year 236
7 Fire Prevention and Safety Inspections 52
8 Average turnout time - urban areas 08 minutes
9 Average turnout time - rural areas 15-20 minutes
10 Fire fighters in post at year end 67 positions
11 Total fire appliances at year end 12 Vehicles
12 Average number of appliance off the road during the year 12 Vehicles
T 3.21.2
Concerning T3.21.2
Delete Directive note once table is completed - Average turnout times are determined by logging
the times taken to reach an emergency incident from receipt of call and analysing the record. Average
Fire appliances off the road. The average number of busses off the road is obtained by sampling the
number off the road on different days at different times.
T 3.21.2.1
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 96
Service Objectives Year 1
Target Actual Actual
Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Turnout time compared to National
guidelines
% turn out within guidelines (total number of
turn outs)
T0% within guidelines A0% within guidelines
or x if x is larger
T1% within guidelines
or A0% if that is larger
70% within guidelines
or A0% if that is larger
A1% within guidelines 75% within guidelines
or A1 if that is larger;
(xxxxx emergency
turn outs in year)
95% within guidelines
or A4 if that is larger;
(xxxxx emergency
turn outs in year)
95% within guidelines
or A4 if that is larger;
(xxxxx emergency
turn outs in year)
T 3.21.3
Service Objective xxx
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are
'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1
Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the
reduction of performance management arrangement by municipalities in which IDPs play a key role.
Fire Service Policy Objectives Taken From IDP
Outline Service Targets Year -1 Year 0 Year 3
Target Target
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 97
Job Level Year -1
Fire Fighters Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
Administrators No. No. No. No. %
Chief Fire Officer & Deputy
Other Fire Officers
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Fire Services
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in
the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a
post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts
equivalent to the accumulated days. T 3.21.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Fire fighters
Other employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.21.5
Financial Performance Year 0: Fire Services
R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF FIRE SERVICES OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.21.7
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98
3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL,
CONTROL OF PUBLIC NUISANCES AND OTHER)
INTRODUCTION TO DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL
OF PUBLIC NUISANCES, ETC
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T 3.22.1
SERVICE STATISTICS FOR DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL,
CONTROL OF PUBLIC NUISANCES, ETC
T 3.22.2
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 99
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Disater Management, Animal Licencing and Control, Control of Public Nuisances, Etc
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.22.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.22.5
Financial Performance Year 0: Disater Management, Animal Licencing and Control, Control of Public Nuisances, EtcR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
100
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original budget
Total Project
Value
Total All 260 326 378 31%
Project A 100 130 128 22% 280
Project B 80 91 90 11% 150
Project C 45 50 80 44% 320
Project D 35 55 80 56% 90
T 3.22.6
Capital Expenditure Year 0: Disater Management, Animal Licencing and Control, Control of Public
Nuisances, Etc
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past and
future expenditure as appropriate.
COMMENT ON THE PERFORMANCE OF DISASTER MANAGEMENT, ANIMAL LICENCING AND
CONTROL OF PUBLIC NUISANCES, ETC OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.22.7
COMPONENT H: SPORT AND RECREATION
This component includes: community parks; sports fields; sports halls; stadiums; swimming pools; and
camp sites.
INTRODUCTION TO SPORT AND RECREATION
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year. Refer to support given to those communities that are living in poverty.
T 3.23
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
101
3.23 SPORT AND RECREATION
SERVICE STATISTICS FOR SPORT AND RECREATION
T 3.23.1
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 102
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Sport and Recreation
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.23.3
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.23.4
Financial Performance Year 0: Sport and Recreation
R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF SPORT AND RECREATION OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.23.6
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103
COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES
This component includes: corporate policy offices, financial services, human resource services, ICT
services, property services.
INTRODUCTION TO CORPORATE POLICY OFFICES, Etc
Delete Directive note once comment is completed – Provide brief introductory comments.
T 3.24
3.24 EXECUTIVE AND COUNCIL
This component includes: Executive office (mayor; councilors; and municipal manager).
INTRODUCTION TO EXECUTIVE AND COUNCIL
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
your top 3 service delivery priorities and the impact you have had on them during the year. Explain the
measures taken to improve performance and the major efficiencies achieved by your service during
the year.
T 3.24.1
SERVICE STATISTICS FOR THE EXECUTIVE AND COUNCIL
T 3.69.2
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 104
Service Objectives Year 1
Target Actual Actual
Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
T 3.24.3
Service Objective xxx
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'.
* 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be
fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs
play a key role.
The Executive and Council Policy Objectives Taken From IDP
Outline Service Targets Year -1 Year 0 Year 3
Target Target
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 105
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: The Executive and Council
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.24.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.24.5
Financial Performance Year 0: The Executive and CouncilR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
Budget Adjustment
Budget
Actual
Expenditure
Variance from
original budget
Total Project
Value
Total All 260 326 378 31%
Project A 100 130 128 22% 280
Project B 80 91 90 11% 150
Project C 45 50 80 44% 320
Project D 35 55 80 56% 90
T 3.24.6
Capital Expenditure Year 0: The Executive and Council
R' 000
Capital Projects
Year 0
Total project value represents the estimated cost of the project on approval by council (including past and
future expenditure as appropriate.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
106
COMMENT ON THE PERFORMANCE OF THE EXECUTIVE AND COUNCIL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.24.7
3.25 FINANCIAL SERVICES
INTRODUCTION FINANCIAL SERVICES
Delete Directive note once comment is complete – Provide brief introductory comments. Set out
priorities and the impact you have had on them during the year. Explain the measures taken to
improve performance and the major efficiencies achieved by financial service during the year.
T 3.25.1
Actual for
accounts
billed in
year
Proportion
of accounts
value billed
that were
collected in
the year %
Billed in
Year
Actual for
accounts
billed in year
Proportion
of accounts
value billed
that were
collected %
Estmated
outturn for
accounts
billed in year
Estimated
Proportion
of accounts
billed that
were
collected %
Property Rates
Electricity - B
Electricity - C
Water - B
Water - C
Sanitation
Refuse
Other
T 3.25.2
B- Basic; C= Consumption. See chapter 6 for the Auditor General's rating of the quality of the financial
Accounts and the systems behind them.
Year 1
R' 000
Debt Recovery
Details of the
types of account
raised and
recovered
Year -1 Year 0
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
107
Concerning T 3.25.2
Delete Directive note once table is completed – The proportion of account value billed is calculated
by taking the total value of the year’s revenues collected against the bills raised in the year by the
year’s billed revenues.
T 3.25.2.1
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 108
Service Objectives Year 2
Target Actual Actual
Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
Increase in speed of payment of tariffs, tax demands, invoices No more than x% of creditors raised (in Rand
value) during the year outstanding (o/s) at year
end
No more than T0% of
current yr creditors
o/s at yr end
No more than A0% of
current yr creditors
o/s at yr end
No more than T1% of
current yr creditors
o/s at yr end
No more than T1% of
current yr creditors
o/s at yr end
No more than A1% of
current yr creditors
o/s at yr end
No more than T2% of
current yr creditors
o/s at yr end
No more than T5% of
current yr creditors o/s
at yr end
No more than T5% of
current yr creditors o/s
at yr end
Reducing the number of invoices raised by increasing
advance payment for services rendered (A project requiring
partipation by all departments but let by the central finance
department)
x% reduction in number of invoices raised over the
previous year's target
T0% reduction in
invoices raised; target
limit of invoices
A0% reduction in
invoices raised; target
limit of invoices
T1% reduction in
invoices raised; target
limit of invoices
T1% reduction in
invoices raised; target
limit of invoices
A1% reduction in
invoices raised; target
limit of invoices
T2% reduction in
invoices raised; target
limit of invoices
T5% reduction in
invoices raised; target
limit of invoices
T5% reduction in
invoices raised; target
limit of invoices
Improving speed of legal measures to recover revenues Commence legal proceedings for recovery of
revenues within 4 weeks of the due date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
Legal proceeding
within 4 weeks of due
date
% of legal proceeding
commenced within 4
weeks of due date
% of legal proceeding
commenced within 4
weeks of due date
% of legal proceeding
commenced within 4
weeks of due date
T 3.25.3
Service Objective xxx
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. *
'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable
within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.
Financial Service Policy Objectives Taken From IDP
Outline Service Targets Year 0 Year 1 Year 3
Target Target
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 109
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Financial Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.25.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.25.5
Financial Performance Year 0: Financial ServicesR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF FINANCIAL SERVICES OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.25.7
3.26 HUMAN RESOURCE SERVICES
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)
110
INTRODUCTION TO HUMAN RESOURCE SERVICES
Delete Directive note once comment is complete – Provide brief introductory comments. Set out
priorities and the impact you have had on them during the year. Explain the measures taken to
improve performance and the major efficiencies achieved by HR service during the year.
T 3.26.1
SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES
T 3.26.2
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 111
Service Objectives Year 1
Target Actual Actual
Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
T 3.25.3
Service Objective xxx
Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal
indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the
IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by
municipalities in which IDPs play a key role.
Human Resource Services Policy Objectives Taken From IDP
Outline Service Targets Year -1 Year 0 Year 3
Target Target
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 112
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Human Resource Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.26.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.26.5
Financial Performance Year 0: Human Resource ServicesR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.26.7
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113
3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES
This component includes: Information and Communication Technology (ICT) services.
INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
priorities and the impact you have had on them during the year. Explain the measures taken to
improve performance and the major efficiencies achieved by ICT service during the year.
T 3.27.1
SERVICE STATISTICS FOR ICT SERVICES
T 3.27.2
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 114
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: ICT Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.27.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.27.5
Financial Performance Year 0: ICT Services R'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T3.27.7
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3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES
This component includes: property; legal; risk management and procurement services.
INTRODUCTION TO PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES
Delete Directive note once comment is completed – Provide brief introductory comments. Set out
priorities and the impact you have had on them during the year. Explain the measures taken to
improve performance and the major efficiencies achieved by Property, legal, risk management and
procurement services during the year.
T3.28.1
SERVICE STATISTICS FOR PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT
SERVICES
T 3.28.2
Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 116
Year -1
Employees Posts Employees Vacancies (fulltime
equivalents)
Vacancies (as a % of
total posts)
No. No. No. No. %
0 - 3 1 1 1 0 0%
4 - 6 3 3 3 0 0%
7 - 9 6 8 6 2 25%
10 - 12 7 15 7 8 53%
13 - 15 9 15 9 6 40%
16 - 18 11 21 11 10 48%
19 - 20 18 30 18 12 40%
Total 55 93 55 38 41%
Employees: Property; Legal; Risk Management; and Procurement Services
Job Level
Year 0
Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be
established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days
lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.
‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.28.4
Year -1
Actual Original Budget Adjustment
Budget
Actual Variance to
Budget
Total Operational Revenue 120 125 100 95 -32%
Expenditure:
Employees 125 244 250 248 2%
Repairs and Maintenance 25 244 250 248 2%
Other 45 244 250 248 2%
Total Operational Expenditure 195 732 750 744 2%
Net Operational Expenditure 75 607 650 649 6%
T 3.28.5
Financial Performance Year 0: Property; Legal; Risk Management and Procurement ServicesR'000
Details
Year 0
Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual
and Original Budget by the Actual.
COMMENT ON THE PERFORMANCE OF PROPERTY SERVICES OVERALL:
Delete Directive note once comment is completed – Explain the priority of the four largest capital
projects and explain the variations from budget for net operating and capital expenditure. Confirm your
year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not
then state how you intend to rectify the matter. Explain the priority of the four largest capital projects
and explain variances from budget for net operating and capital expenditure. Also explain any likely
variation to the total approved project value (arising from year 0 and/or previous year actuals, or
expected future variations).
T 3.28.7
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COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD
The Annual Performance Report as submitted seeks to give an overview of its performance against
predetermined strategic objectives, as progress is reviewed and to be audited based on service
delivery projections and targets for the period 1 July 2013 to 30 June 2014.
Every effort has been made to ensure that the report on non-financial performance information is
reported on as accurately as possible to give a true reflection on achievements on targets that were
set for the year under review.
The audit of predetermined objectives can be regarded as an annual audit of reported actual
performance against set predetermined objectives of the Municipality to provide assurance to Council,
members of the public and other relevant stakeholders that the “actual performance reported” is useful
and reliable. Reporting on performance information is essential as it allows the public, oversight and
governance structures to focus its attention on whether public institutions such as municipalities are
delivering services as required and planned, by comparing their performance against their budgets and
strategic plans.
The objective of an audit of predetermined objectives is to enable the Auditor-General to conclude
whether the reported performance against predetermined objectives is useful and reliable in all
material respects, based on predetermined audit criteria. The annual audit of predetermined
objectives against predetermined objectives is executed as an integral part of the annual regularity
audit, to confirm compliance with applicable laws and regulations as well as the usefulness and
reliability of the reported performance information to be published as part of the annual report of the
Municipality.
Through the auditing of performance of predetermined objectives, the independent audit of measures
is to ensure the economical procurement and efficient and effective utilisation of resources and key
concepts to this are:
1. Economy: for the procurement of resources of the right quality in the right quantities at
the right time and place at the lowest possible cost;
2. Efficiency: To achieve the optimal relationship between the output of goods, services or
results and the resources used to produce them;
3. Effectiveness: To achieve policy objectives, operational goals and other intended effects.
This is all in an attempt to strengthen democracy by enabling oversight, accountability and good
governance in the public sector through the audit of predetermined objectives and to then report on the
findings.
Every municipality and municipal entity must prepare and adopt an annual report for each financial
year in accordance with the Local Government: Municipal Finance Management Act, Act 56 of
2003(MFMA) and the Local Government: Municipal Systems Act, Act 32 of 2000 (MSA) as amended.
Section 46 of the MSA provides that an annual performance report must be submitted to the municipal
council. It is against this backdrop that the 2013/2014 Annual Performance Report of Lekwa Local
Municipality was submitted in terms of section 46 (1) and (2) of the MSA, as amended as well as
National Treasury MFMA Circular 11 on annual reporting. This report covers the performance
information from 01 July 2013 to 30 June 2014 and focuses on the operationalization and
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implementation of the Service Delivery Budget and Implementation Plan (SDBIP), in relation to the
objectives as encapsulated in the Municipality’s 2013/2014 Integrated Development and Plan (IDP).
This report seeks to report and reflect on actual performance of the Municipality as measured against
the performance indicators and targets as contained in its approved Service Delivery and Budget
Implementation Plan (SDBIP) for 2013/2014. The report outlines the Municipality’s performance in
line with the five (5) National Strategic Key Performance Areas (KPAs) for local government, which
are:
Basic Service Delivery
Municipal Organisational Transformation and Development
Local Economic Development
Municipal Financial Viability and Management
Good Governance and Public Participation.
The report further reflects the Municipality’s Key Performance Indicators (KPIs) per KPA. Each KPA
have Municipal Key Focus Areas (KFA’s) which were developed to focus the Municipality on its
development initiatives in a more coherent and organised manner.
This Annual Performance Report has been compiled in compliance with the requirements of section 46
(1) of the Local Government: Municipal Systems Act, 2000; which stipulates the following:
“(1) A municipality must prepare for each financial year a performance report reflecting—
(a) the performance of the Municipality and each external service provider during that financial year;
(b) a comparison of the performance referred to in paragraph (a) with targets set for performance in
the previous financial year; and
(c) measures taken to improve performance.”
In addition, Regulation 7 (1) of the Local Government: Municipal Planning and Performance
Management Regulations, 2001 states that “A Municipality’s Performance Management System entails
a framework that describes and represents how the municipality’s cycle and processes of performance
planning, monitoring, measurement, review, reporting and improvement will be conducted, organised
and managed, including determining the roles of the different role players.”
Performance management is not only relevant to the organisation as a whole, but also to the
individuals employed in the organisation as well as the external service providers and municipal
entities. The Performance Management System (PMS) Framework as adopted by the Municipality
inter alia, reflects the linkage between the IDP, Budget, SDBIP and individual performance.
During the 2012/2013 year the Municipality approved a position of Manager responsible for
performance management, of which an incumbent was appointed to the position with effect from 1
November 2012. Prior to this, the Municipality had made attempts to implement performance
management with the assistance of consultants, which did not yield much positive results.
The PMS function is located in the Office of the Municipal Manager and the PMS unit still needs to be
beefed up. The key focus of the unit is to coordinate organisational performance management related
processes. Currently a manual performance management system is operational within the
Municipality.
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The IDP was developed for 2012 - 2016 and was reviewed for the 2013/2014 financial year during
November 2012, tabled to Council in March 2013 and finally approved on 28 May 2013. The
2013/2014 SDBIP was also thereafter approved by the Executive Mayor, which formed the basis for
planning and reporting on performance.
For the 2012/2013 financial year the Municipality was faced with the situation that it only had an
appointed Municipal Manager, Mr L B Tshabalala with effect from August 2012. To strengthen the top
management structure, the following senior managers were subsequently appointed:
JOB TITLE NAME EMPLOYMENT CONTRACT TERM
Executive Manager: Development
and Planning
Mrs. T S Matladi 2 September 2013 – 31 August 2018
Executive Manager: Technical
Services
Mr. T D Gogwane 2 September 2013 – 31 August 2018
Executive Manager: Corporate
Services
Mr. S S Nkosi 2 January 2014 – 01 January 2019
Chief Financial Officer Mr. E C Le Roux 13 January 2014 – 12 January 2019
Performance agreements were also developed and signed after each appointment, by the Municipal
Manager and each of the Executive Managers, as required by the Municipal Performance Regulations,
2006.
Quarterly performance reports with supporting evidence were prepared by managers directly
accountable to the Municipal Manager. These quarterly performance reports were also objectively and
independently audited by the Internal Audit unit to verify and confirm performance information as
reflected in the reports.
As per the provisions of Regulation 14(2) (c), the Municipality utilised its audit committee as
established, as the Performance Audit Committee. The following are dates on which the committee
met:
AUDIT COMMITTEE MEMBERS ATTENDANCE
Meeting Dates A C Keyser D W Prenzler
2013-08-13 √ √
2013-08-23 √ √
2013-12-04 √ √
2014-02-21 √ √
2014-03-05 √ √
2014-04-14 √ √
With the expiry of the term of the current Audit Committee members, Council, during its Council
Meeting held on 2014-04-25, per Resolution A58, appointed the following members to serve both as
Audit and Performance Audit Committee:
(a) Mr AC Keyser (Chairperson);
(b) Mr N Balkrishen;
(c) Mr Z L Fihlani; and
(d) Ms A M M Badimo.
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For the 2012/2013 financial year, with only the Municipal Manager appointed in terms of section 56 of
the Local Government: Municipal Systems Act and in accordance with the legislative requirements of
Regulation 27 (4) of 2001, the annual performance evaluation of the Municipal Manager took place on
15 January 2014.
The Evaluation Panel was constituted as follows:
The Executive Mayor, Councillor C M Morajane
The Chairperson of the Audit Committee: Mr A C Keyser
Member of the Mayoral Committee: Councillor B G Sekhonde
The Executive Mayor of Chief Albert Luthuli Local Municipality: Councillor B P Shiba
Ward Committee Member: Mr M A J Khubeka
The Evaluation Panel allowed the Municipal Manager to briefly outline the process for the compilation
and presentation of his 2012/2013 annual performance scorecard, with an accompanying portfolio of
evidence, and responded to issues raised by the Panel in relation to service delivery matters and
capital project roll-overs as challenges experienced in the year being assessed.
The Evaluation Panel’s scores were aggregated with a resultant score of 87% versus the Municipal
Manager’s own score of 94%. In line with section 34 (3) of the Regulations of 2006, the outcome of
the Evaluation Panel was also forwarded to the MEC responsible for local government in the province.
The annual assessments of performance of managers directly reporting to the MM as well as the MM’s
performance for the 2013/2014 financial year is still to be scheduled to be conducted by the duly
constituted performance evaluation panels as required by the Performance Regulations.
In respect of the 2012/2013 Annual Report, the Council tasked the Municipal Public Accounts
Committee (MPAC) to exercise its oversight role in this regard. The MPAC met as follows to deal with
the 2012/2013 Annual Report:
MUNICIPAL PUBLIC ACCOUNTS COMMITTEE (MPAC)
MEMBERS S M Zacarias
(Chairperson)
N Z E
Sitshoni
M S
Khumalo
S S
Mosia
A S
Ngwenya
F
Sarang
P T
Schnetler
J J van
der
Wath
S S
Gumede
POLITICAL
PARTY ANC ANC ANC ANC ANC ANC DA DA PAC
GENDER F F F M M F M M M
DATES AND ATTENDANCE OF MPAC MEETINGS
2014-02-13 √ √ √ √ X √ √ √ √
2014-02-20 √ √ A √ X √ √ √ √
2014-03-13 √ √ √ √ √ A √ √ A
2014-03-18 √ √ √ √ A A √ √ X
Legend: √=Present; A = Absent with Apology; X= Absent without Apology
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The 2012/2013 Annual Report was tabled to Council on 24 January 2014. After the meeting referred
to above, the MPAC submitted its Oversight Report to Council on 24 March 2014. Council resolved as
follows per Council Resolution A47:
“(1) That the report of the Municipal Public Accounts Committee in respect of the Oversight Report
on the 2012/2013 Annual Report BE NOTED;
(2) That the Oversight Report on the 2012/2013 Annual Report as prepared and considered by
the Municipal Public Accounts Committee (MPAC) during its meetings held on 2014-02-13,
2014-02-20, 2014-03-13 and 2014-03-18, including the following BE NOTED:
(a) that up until the MPAC meeting on 2014-03-18 during which meeting the final revised
Annual Report was considered, it was noted that the following components were still
outstanding:
(i) Cemeteries and crematoriums;
(ii) Fire and Disaster Services;
(iii) Sports and Recreation;
(b) that for the 2011/2012 Annual Report the same divisions had to be summoned to
submit outstanding information and in spite of these previous engagements and
commitments to comply and submit on time, it is the same divisions who once again
neglected to comply;
(c) the Chief Financial Officer was engaged during the MPAC meeting on 2014-03-18 to
request verification of information contained in Note 43 of the Annual Financial
Statements relating to additional disclosures on Councillors’ arrear consumer
accounts, as the information contained therein is not correct in all respects;
(3) That Council, having fully considered the revised Annual Report of Lekwa Local Municipality
for the 2012/2013 financial year and representations thereon and the Oversight Report for the
2012/2013 Financial Year, the 2012/2013 Annual Report BE APPROVED with reservations
due to the reasons stated in (2) (a) – (c) above;
(4) That the Oversight Report BE MADE PUBLIC in accordance with Section 129 (3) of the
Municipal Finance Management Act, Act No 56 of 2003;
(5) That the Oversight Report BE SUBMITTED to the Mpumalanga Provincial Legislature in
accordance with Section 132 (2) of the Municipal Finance Management Act, Act No 56 of
2003;
(6) That the Municipal Public Accounts Committee continue to MONITOR AND EVALUATE as
part of its oversight role, every Department in respect of service delivery issues and other
internal processes cited by the Auditor-General;
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(7) That the Accounting Officer ADVICES the Council on what remedial action taken against
departments that failed to submit the annual report.”
The 2013/2014 annual performance report has been prepared to report on the Organisational
Performance Scorecard (SDBIP) of the Municipality. This report was also submitted in line with
section 126 (1) (a) of the MFMA, within two months after the end of the financial year to which the
statements relate, to the Auditor-General for auditing together with the Draft 2013/2014 Annual
Financial Statements.
This draft annual performance report, once finalized and audited will be incorporated into the
2013/2014 Annual Report, as provided for by section 121 (3) (c) which stipulates that the annual report
inter alia must also include the audited Annual Performance Report of the Municipality as prepared in
terms of section 46 of the MSA. The annual report will also include the audited Annual Financial
Statements as well as the Auditor-General’s Report on both the Annual Financial Statements and
Performance Information for the financial year being audited.
The organisational annual performance scorecard for the 2013/2014 year reflected on the Municipal
SDBIP per KPA as follows:
Basic Service Delivery
Municipal Transformation and Organisational Development
Local Economic Development
Municipal Financial Viability and Management
Good Governance and Public Participation
The performance information reports related to achievements for the financial year under review as
well as reflecting corrective measures to be taken to improve in areas of under achievement.
This section of the Annual Performance Report reports on the Municipality’s actual performance
against the planned targets as contained in the Municipality’s SDBIP. The five (5) National KPA’s,
based on the Municipality’s actual performance linked to these KPA’s depicts actual performance
against planned annual targets.
Total KPI Targets: 57
Basic Service Delivery – 12
Municipal Transformation and Organisational Development – 3
Local Economic Development – 6
Municipal Financial Viability and Management – 19
Good Governance and Public Participation – 17
The following is a breakdown of how targets were achieved:
KEY PERFORMANCE AREA Achieved Not achieved TOTAL
Basic Service Delivery 10 (83%) 2 (17%) 12
Municipal Transformation and Organisational
Development
3 (100%) 0 3
Local Economic Development 2 (33%) 4 (67%) 6
Municipal Financial Viability and Management 19 (100%) 0 19
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Good Governance and Public Participation 10 (59%) 7 (41%) 17
TOTAL 44 (77%) 13 (23%) 57 (100%)
The following is a graphic representation of all targets and if achieved or not:
Draft: Table Representation of targets achieved and not achieved.
Due to various challenges of the total of 57 targets, 13 could not be met. As a Municipality, measures
are already being put in place to respond to these outstanding targets. Measures, such as the
adherence to all scheduled submissions to ensure the timely auditing and submission of reports has
been put in place.
It must be noted that credible performance information must be recognised as playing a significant role
in governance and accountability. The greater the focus there is on the quality and timeliness of
information reported, greater assurance can be given that the performance information provided can
be trusted and is reliable. The main objective is to increase accountability and to ensure the credibility
of the information being strengthened as performance reporting is increasingly becoming an integral
part of an effective accountability framework.
Performance information and reporting focuses the attention of the public and oversight bodies on
whether public institutions such as municipalities are delivering value for money, by comparing their
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performance against their budgets and service delivery plans. It is also intended to alert managers to
areas where corrective action is required. The most important reason for measuring performance is
that what gets measured gets done. If an institution knows that its performance is being monitored, it
is more likely to perform the required tasks and perform them well. This can greatly enhance the level
of confidence that communities can once again have in the Municipality.
CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE
(PERFORMANCE REPORT PART II)
INTRODUCTION
Delete Directive note once comment is completed - Provide a brief introduction to your
municipality’s organisational development function.
T 4.0.1
COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL
4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES
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Year -1
EmployeesApproved
PostsEmployees Vacancies Vacancies
No. No. No. No. %
Water 26,485 26,485 23,572 23,572 %
Waste Water (Sanitation) 8,541 8,541 8,285 8,285 %
Electricity 12,355 12,355 10,254 10,254 %
Waste Management 14,232 14,232 13,235 13,235 %
Housing 6,542 6,542 5,496 5,496 %
Waste Water (Stormwater Drainage) 5,643 5,643 5,530 5,530 %
Roads 5,643 5,643 5,530 5,530 %
Transport 5,322 5,322 4,470 4,470 %
Planning 1,254 1,254 1,003 1,003 %
Local Economic Development 2,516 2,516 2,063 2,063 %
Planning (Strategic & Regulatary) 12,546 12,546 10,413 10,413 %
Local Economic Development 2,355 2,355 2,190 2,190 %
Community & Social Services 4,565 4,565 3,698 3,698 %
Enviromental Proctection 5,649 5,649 4,971 4,971 %
Health 5,649 5,649 4,971 4,971 %
Security and Safety 5,649 5,649 4,971 4,971 %
Sport and Recreation 5,649 5,649 4,971 4,971 %
Corporate Policy Offices and Other 5,649 5,649 4,971 4,971 %
Totals 136,240 136,240 120,592 120,592 –
T 4.1.1
Employees
Description
Year 0
Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in
the Chapter 3 employee schedules. Employee and Approved Posts numbers are as at 30 June, as per the
approved organogram.
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Designations *Total Approved Posts *Vacancies
(Total time that
vacancies exist using
fulltime equivalents)
*Vacancies
(as a proportion of
total posts in each
category)
No. No. %
Municipal Manager 1 0 0.00
CFO 1 1 100.00
Other S57 Managers (excluding Finance Posts) 10 1 10.00
Other S57 Managers (Finance posts) 3 1 33.33
Police officers 12 3 25.00
Fire fighters 20 3 15.00
Senior management: Levels 13-15 (excluding Finance Posts) 25 5 20.00
Senior management: Levels 13-15 (Finance posts) 6 2 33.33
Highly skilled supervision: levels 9-12 (excluding Finance posts) 35 8 22.86
Highly skilled supervision: levels 9-12 (Finance posts) 8 1 12.50
Total 121 25 20.66
T 4.1.2
Note: *For posts which are established and funded in the approved budget or adjustments budget (where changes
in employee provision have been made). Full-time equivalents are calculated by taking the total number of working
days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days
lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of
posts equivalent to the accumulated days.
Vacancy Rate: Year 0
Total Appointments as of
beginning of Financial Year
Terminations during the
Financial Year
No. No.
Year -2 50 18 36%
Year -1 50 12 24%
Year 0 50 10 20%
T 4.1.3
Turn-over Rate
* 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
Turn-over Rate*Details
COMMENT ON VACANCIES AND TURNOVER:
Delete Directive note once comment is completed - Detail the attempts made to fill the posts of
senior management and highly skilled supervision and explain why there are no appropriate internal
staff to fill the vacancies. Explain how long, at a minimum, the section 57 vacancies (including MM
and CFO) have remained unfilled and the reasons for this. Give reasons for the turnover rate
experienced by your municipality. Explain measures taken to successfully attract and retain staff.
T 4.1.4
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COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE
INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT
The Human Resource profile of the municipality is to some extent reflective of the local community and
the country. The human resource management of the municipality comprises of activities relating to
the rendering of a comprehensive human resource management function to Council by ensuring an
efficient personnel administration system, recruitment and selection, sound labour relations, human
resources development, implementation of affirmative action measures, occupational health and safety
of employees and compliance with all relevant labour legislation.
The staff of the municipality is informed and supportive of municipality vision and mission and strategic
direction.
A recent analysis of the workforce profile of the Municipality in preparation of the Employment Equity
Report and Plan for submission to the Department of Labour as required by the Employment Equity
Act, however reveals serious challenges with respect to the gender composition and people with
disabilities.
Gender composition / representation in the total workforce
Black Males account for 72.98% against Black Females of only 21.51% when the Economically Active
Population figures indicate 49.50% and 42.20% respectively. Black Males representation must be
brought down to 49.50% and Black Females representation more than doubled to 42.20% of the
workplace profile in line with the regional Economically Active Population figures. One of the priorities
must therefore be to increase Black Female representation across all occupational categories and
levels from the current 21.51% to 42.20%.
People with disabilities in the total workforce
People with disabilities account for only 0.61% of the total workforce as against the 2 % of the
government undertaking to reach as target by 2010.
People with disabilities generally still continue to hover below the 1% mark. Government initially made
an undertaking that the representation of people with disabilities should have constituted 2% of the
Public Service by the end of 2005. However, this was not reached and government moved the
achievement of the 2% target to 2010. We are now in 2012 and the representation of people with
disabilities both in government and in the private sector is still well below the 1% mark.
An Employment Equity Plan responding to the above challenges i.e. gender and people with
disabilities representation will be developed, monitored and implemented as one of the priorities of the
institution.
The area of skills development is characterised by a need based approach for both municipal
councillors and officials which culminates in the submission and implementation of the Workplace
Skills Plan to the Local Government Sector Education and Training Authority (LGSETA) in line with the
requirements of the Skills Development Act.
T 4.2.0
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4.2 POLICIES
Name of Policy Completed Reviewed
% %
1 Affirmative Action
2 Attraction and Retention
3 Code of Conduct for employees
4 Delegations, Authorisation & Responsibility
5 Disciplinary Code and Procedures
6 Essential Services
7 Employee Assistance / Wellness
8 Employment Equity
9 Exit Management
10 Grievance Procedures
11 HIV/Aids
12 Human Resource and Development
13 Information Technology
14 Job Evaluation
15 Leave
16 Occupational Health and Safety
17 Official Housing
18 Official Journeys
19 Official transport to attend Funerals
20 Official Working Hours and Overtime
21 Organisational Rights
22 Payroll Deductions
23 Performance Management and Development
24 Recruitment, Selection and Appointments
25 Remuneration Scales and Allowances
26 Resettlement
27 Sexual Harassment
28 Skills Development
29 Smoking
30 Special Skills
31 Work Organisation
32 Uniforms and Protective Clothing
33 Other:
T 4.2.1
HR Policies and Plans
Date adopted by council or
comment on failure to adopt
Use name of local policies if different from above and at any other HR policies not
listed.
COMMENT ON WORKFORCE POLICY DEVELOPMENT:
Delete Directive note once comment is completed – Comment on progress made during the year
and plans for completing this work.
T 4.2.1.1
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 129
4.3 INJURIES, SICKNESS AND SUSPENSIONS
Number and Cost of Injuries on Duty Type of injury Injury
Leave Taken
Employees using injury leave
Proportion employees using sick
leave
Average Injury Leave
per employee
Total Estimated Cost
Days No. % Days R'000
Required basic medical attention only
85 10 2% 9
Temporary total disablement 0 0 0% 0
Permanent disablement 0 0 0% 0
Fatal 0 0 0% 0
Total 85 10 2% 9
T 4.3.1
Total sick
leave
Proportion of
sick leave
without
medical
certification
Employees
using sick
leave
Total
employees in
post*
*Average sick
leave per
Employees
Estimated
cost
Days % No. No. Days R' 000
Lower skilled (Levels 1-2) 24 90% 10 30 0.15 30
Skilled (Levels 3-5) 40 22 0.26
Highly skilled production (levels 6-8) 136 58 0.88
Highly skilled supervision (levels 9-12) 6 95% 2 26 0.04 31
Senior management (Levels 13-15) 230 11 1.48
MM and S57 65 8 0.42
Total 501 93% 12 155 3.23 61
Number of days and Cost of Sick Leave (excluding injuries on duty)
* - Number of employees in post at the beginning of the year
Salary band
*Average is calculated by taking sick leave in colunm 2 divided by total employees in colunm 5 T 4.3.2
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 130
0.15
0.26
0.88
0.04
1.48
0.42
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Lower skilled (Levels 1-
2)
Skilled (Levels 3-5) Highly skilled
production (levels 6-8)
Highly skilled
supervision (levels 9-12)
Senior management
(Levels 13-15)
MM and S57
Average Number of Days Sick Leave (excluding IOD)
T 4.3.3
COMMENT ON INJURY AND SICK LEAVE:
Delete Directive note once comment is completed – Comment on injury and sick leave indicated in
the above tables. Explain steps taken during the year to reduce injuries and follow-up action in relation
to injury and sick leave (e.g. are injuries examined by the municipality’s own doctor; are those taking
long or regular periods of sick leave monitored by municipality’s doctor; and are personal records
maintained of the number of instances of sick leave and amount of time taken each year?)
T 4.3.4
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 131
Position Nature of Alleged
Misconduct
Date of
Suspension
Details of Disciplinary Action
taken or Status of Case and
Reasons why not Finalised
Date Finalised
T 4.3.5
Number and Period of Suspensions
Position Nature of Alleged Misconduct and
Rand value of any loss to the
municipality
Disciplinary action taken Date
Finalised
T 4.3.6
Disciplinary Action Taken on Cases of Financial Misconduct
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 132
COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT:
Delete Directive note once comment is complete – Comment on suspension of more than 4 months
and on other matters as appropriate.
T 4.3.7
4.4 PERFORMANCE REWARDS
Expenditure on
rewards Year 1
Proportion of
beneficiaries within
group
R' 000 %
Female 20 9 45%
Male 30 12
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
50 21
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 ?
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 133
COMMENT ON PERFORMANCE REWARDS:
No performance rewards were paid in the 2013/2014 financial year.
T 4.4.1.1
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.
Delete Directive note once comment is completed – Discuss the way ahead and the improvements
made and the challenges faced for capacity development in your municipality.
T 4.5.0
Municipality | (PERFORMANCE REPORT PART II) 134
4.5 SKILLS DEVELOPMENT AND TRAINING
No.
Actual:
End of
Year -1
Actual:
End of
Year 0
Year 0
Target
Actual:
End of
Year -1
Actual:
End of
Year 0
Year 0
Target
Actual:
End of
Year -1
Actual:
End of
Year 0
Year 0
Target
Actual:
End of
Year -1
Actual:
End of
Year 0
Year 0
Target
Female 5 0 1 1
Male 5 1 2 1 2
Female 2 3 3 3 3
Male 3 4 4 4 4
Female 4 2 2 2 2
Male 8 8 9 8 9
Female 8 6 6 6 6
Male 6 2 2 2 2
Female 19 11 12 11 12
Male 22 15 17 15 17
Total 0 82 0 0 0 0 0 0 52 58 0 52 58
T 4.5.1*Registered with professional Associate Body e.g CA (SA)
Skills Matrix
Management level Gender Employees
in post as
at 30 June
Year 0
Number of skilled employees required and actual as at 30 June Year 0
Learnerships Skills programmes & other
short courses
Other forms of training Total
MM and s57
Councillors, senior officials
and managers
Technicians and associate
professionals*
Professionals
Sub total
Municipality | (PERFORMANCE REPORT PART II) 135
Description A.
Total number of officials
employed by municipality
(Regulation 14(4)(a) and
(c))
B.
Total number of officials
employed by municipal
entities (Regulation
14(4)(a) and (c)
Consolidated: Total of A
and B
Consolidated:
Competency
assessments completed
for A and B (Regulation
14(4)(b) and (d))
Consolidated: Total number
of officials whose
performance agreements
comply with Regulation 16
(Regulation 14(4)(f))
Consolidated: Total
number of officials that
meet prescribed
competency levels
(Regulation 14(4)(e))
Financial Officials
Accounting officer 0 0 0 0 0 0
Chief financial officer 0 0 0 0 0 0
Senior managers 0 0 0 0 0 0
Any other financial officials 0 0 0 0 0 0
Supply Chain Management Officials
Heads of supply chain management units 0 0 0 0 0 0
Supply chain management senior managers 0 0 0 1 1 1
TOTAL 0 0 0 1 1 1
T 4.5.2
Financial Competency Development: Progress Report*
* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007)
Skills Development Expenditure
R'000
Management level
Gender
Employees as at the beginning of the financial year
Original Budget and Actual Expenditure on skills development Year 1
Learnerships Skills programmes &
other short courses
Other forms of training
Total
No. Original Budget
Actual Original Budget
Actual Original Budget
Actual Original Budget
Actual
MM and S57 Female 1 0 0 0 0 0 0 0 0
Male 4 0 0 0 0 0 0 0 0
Legislators, senior officials and managers
Female 19 297730 64000 35000 15000 1150 1134 333880 80134
Male 33 517110 16000 32000 10000 1150 0 550260 26000
Professionals Female 6 16000 0 10000 10000 3200 1704 29200 11704
Male 12 25000 16000 0 0 6000 0 31000 16000
Technicians and associate professionals
Female 3 20000 0 10000 10000 21000 0 51000 10000
Male 36 60000 0 0 0 0 0 60000 0
Clerks Female 45 120000 16000 0 0 60000 4537 180000 20537
Male 26 56000 16000 0 0 72000 1704 128000 17704
Service and sales workers
Female 15 176000 0 10000 0 25546 0 211546 0
Male 41 0 0 0 15000 60000 0 60000 15000
Plant and machine
operators and assemblers
Female 0 0 0 0 0 0 0 0 0
Male 43 16000 0 10000 30600 30000 0 56000 30600
Elementary occupations
Female 37 74000 0 0 3400 73000 0 147000 3400
Male 226 230000 80000 0 20300 120000 0 350000 100300
Sub total Female 126 703730 80000 75000 38400 183896 7376 962626 125776
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 136
Male 421 904110 128000 32000 75900 289150 1704 1225260 205604
Total 547 0 0 0 0 30 45 30 45
*% and *R value of municipal salaries (original budget) allocated for workplace skills plan. %* *R
T4.5.3
COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL
COMPETENCY REGULATIONS:
Delete Directive note once comment is completed – Comment on the adequacy of training plans
and the effectiveness of implementation at your municipality. Explain variances between actual and
budgeted expenditure. Also comment on the adequacy of funding (e.g. is it intended to increase or
decrease this level of spending in future years and how is the value of the training activity assessed?)
Refer to MFMA Competency Regulations, the range of officials to which it relates and the deadline of
2013 by which it will become fully effective. Discuss the progress made on implementation at your
municipality as reflected in T4.5.4 above.
T 4.5.4
COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE
INTRODUCTION TO WORKFORCE EXPENDITURE
Delete Directive note once comment is completed – Explain the importance of managing workforce
expenditure, the pressures to overspend and how spending is controlled (e.g. within approved
establishment and against budget and anticipated vacancy rates arising from turnover). Also explain
how municipality seeks to obtain value for money from work force expenditure.
T 4.6.0
4.6 EMPLOYEE EXPENDITURE
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | (PERFORMANCE REPORT PART II) 137
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
Year -3 Year -2 Year -1 Year 0
Workforce Expenditure Trends (R' 000)
Source: MBRR SA22 T 4.6.1
COMMENT ON WORKFORCE EXPENDITURE:
Delete Directive note once comment is completed – Explain the spending pattern in the context of
the actual and two previous years plus the budget year. Refer to implications for workforce ratio in
Chapter 5. Comment on factors influencing workforce expenditure during the year.
T 4.6.1.1
COMMENT ON UPGRADED POSTS AND THOSE THAT ARE AT VARIANCE WITH NORMAL
PRACTICE:
Delete Directive note once comment is completed – Comment on T4.6.2 as appropriate and give
further explanations as necessary with respect to T4.6.3 and T4.6.4.
T 4.6.5
DISCLOSURES OF FINANCIAL INTERESTS
Delete Directive note once comment is completed – Refer to disclosures made by officials and
councillors concerning their financial interests as required by PM Regulations 805 of 2006 are set out
in Appendix J. Make other comments as appropriate.
T 4.6.6
Municipality | CHAPTER 5 – FINANCIAL PERFORMANCE 138
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
This component will provide an overview of the financial performance of the municipality and focuses
on the financial health of the municipality. A number of key ratios were considered to establish the
financial health of the Municipality as well as to provide explanations for major deviations, all in line
with the Annual Financial Statements as audited by the Auditor-General SA.
The total actual revenue for the 2013/14 financial year amounted to R485, 465 million this represents a
growth of 11.05% when compared to the 2012-13 actual revenue of R437, 164 million. The actual
expenditure amounted to R614.201 million which was a saw a decline in expenditure incurred of
4.18% when compared to the actual expenditure 2012-13 of R 641, 004 million.
The operating deficit has decreased by 36.84% from R 203, 841 million in the 2012-13 financial year to
R 128, 736million in the 2013-14 financial period.
T 5.0.1
COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE
INTRODUCTION TO FINANCIAL STATEMENTS
Actual revenue excluding capital transfers for the 2013/14 financial year amounted to R422, 798
million that, compared to the 2012-13 of R403, 459 million, represents a growth of 4.79%.
Service charges jointly comprise R245, 717 million (50%) of the total revenue.
Electricity remains the largest source of income and contributes R 180, 418 million (37%) to municipal
revenue. Property rates constitute R37, 546 (7%) of revenue and ideally property rates should be
contributing at least 25% of the total revenue of the municipality. Transfers received contribute R 169,
389 million (35%) of the total municipal revenue.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 5 – FINANCIAL PERFORMANCE
139
Employee cost to total operating expenditure measures the total employment cost to total operating
expenditure and the norm is between 25% - 40%. Lekwa Local Municipality measures at 19.86% and
although within the acceptable norm, it is on the increase and if not monitored, it will approach the
upper end of the norm.
Repairs and Maintenance as a % of Property, Plant and Equipment and Investment Property (Carrying
Value). The ratio measures the level of repairs and maintenance to ensure adequate maintenance to
prevent breakdowns and interruptions to service delivery. Repairs and maintenance of municipal
assets is required to ensure the continued provision of services. The ratio for Lekwa Local Municipality
is 2.94% compared to the norm of 8%. This ratio below the norm of 8% is a reflection that insufficient
funds are being spent on repairs and maintenance to the extent that it could increase impairment of
useful assets.
The bulk purchases increased from R 186, 519 million in the 2012/13 financial year to R 198, 026
million in the 2013-14 financial period. Depreciation and impairment of assets was R 116, 894 million
while Debt impairment amounted to R 47, 721 million. Other expenditure was R 64, million.
The overall expenditure on Capex increased from R 37, 158 million in the 2012/2013 financial year to
R 62, 667 million in the 2013/2014 financial year. This represented a growth of 68.65% this is mainly
due to rollover projects that were completed in the 2013-14 financial period.
T 5.1.0
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140
5.1 STATEMENTS OF FINANCIAL PERFORMANCE
2010/11 2011/12 2012/13
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Audited
outcome
Revenue By Source
Property rates 37 944 37 301 41 800 47 321 49 952 37 546
Service charges - electricity revenue 121 629 136 699 178 871 209 192 188 374 180 418
Service charges - water revenue 21 146 30 862 39 815 37 120 38 119 32 363
Service charges - sanitation revenue 18 041 21 248 21 707 22 920 23 004 23 004
Service charges - refuse revenue 9 083 9 790 12 164 13 031 12 894 9 932
Rental of facilities and equipment 784 (353) 651 792 553 1 753
Interest earned - external investments 767 726 837 606 237 1 299
Interest earned - outstanding debtors 16 048 18 450 14 110 15 585 16 931 18 273
Fines 361 2 166 271 2 705 2 704 1 755
Agency services 2 951 12 412 6 565 20 263 15 520 8 611
Transfers recognised - operational 64 309 73 251 117 391 86 670 86 425 169 389
Other revenue 1 441 563 1 222 886 1 351 1 122
Total Revenue (excluding capital transfers and
contributions)
294 505 343 115 435 405 457 091 436 065 485 465
Expenditure By Type
Employee related costs 114 990 101 586 114 990 105 433 108 808 112 614
Remuneration of councillors 8 417 7 889 8 417 8 554 9 162 9 367
Debt impairment 81 369 39 082 77 099 57 133 94 708 47 721
Depreciation & asset impairment 115 474 60 891 121 508 135 296 134 582 116 894
Finance charges 18 233 1 176 14 219 1 111 831 21 862
Bulk purchases 199 863 167 691 186 519 198 020 188 614 198 026
Other materials 3 388 4 154 2 995 2 916 3 257 4 798
Contracted services 18 551 21 854 23 250 20 322 30 933 25 090
Transfers and grants 16 743 20 898 41 647 27 950 12 944 13 090
Other expenditure 42 099 39 713 37 621 57 705 50 412 64 739
Loss on disposal of PPE
Total Expenditure 619 128 464 933 628 264 614 440 634 252 614 201
Surplus/(Deficit) (324 623) (121 818) (192 859) (157 348) (198 187) (128 736)
Description
Current Year 2013/14
Municipality | CHAPTER 5 – FINANCIAL PERFORMANCE 141
Standard Classification Description 2012/13
R thousandAudited
Outcome
Original
Budget
Adjusted
Budget
Audited
Outcome
Original
Budget
Adjustments
Budget
Revenue - Standard
Governance and administration 162 128 148 953 152 150 203 085
Executive and council 79 570 81 454 81 336 141 718 43% 43%
Budget and treasury office 82 149 66 229 69 802 60 956 -9% -15%
Corporate services 409 1 270 1 012 411 -209% -146%
Community and public safety 535 2 998 2 870 1 951
Community and social services 357 361 278 293 -23% 5%
Sport and recreation 18 53 11 9 -468% -17%
Public safety 160 2 584 2 582 1 648 -57% -57%
Economic and environmental services 19 554 22 399 18 082 31 440
Planning and development 33 2 115 2 079 20 -10659% -10478%
Road transport 19 521 20 284 16 003 31 420 35% 49%
Trading services 254 946 282 741 262 962 248 989
Electricity 182 046 209 646 188 935 181 134 -16% -4%
Water 39 007 37 127 38 120 34 920 -6% -9%
Waste water management 21 718 22 924 23 005 23 004 0% 0%
Waste management 12 176 13 044 12 902 9 932 -31% -30%
Total Revenue - Standard 437 164 457 091 436 065 485 465
Expenditure - Standard
Governance and administration 283 381 301 811 315 043 211 064
Executive and council 49 037 194 216 169 384 38 903 -399% -335%
Budget and treasury office 218 073 92 232 130 793 159 313 42% 18%
Corporate services 16 271 15 362 14 867 12 847 -20% -16%
Community and public safety 37 546 30 467 34 954 35 524
Community and social services 14 661 10 111 13 799 12 774 21% -8%
Sport and recreation 7 334 5 580 6 898 7 044 21% 2%
Public safety 15 017 12 006 13 938 15 446 22% 10%
Housing 7 2 769 31 31 -8734% 3%
Health 527 – 289 229 100% -26%
Economic and environmental services 28 015 35 579 33 799 31 609
Planning and development 179 2 709 182 1 042 -160% 83%
Road transport 27 837 32 870 33 617 30 567 -8% -10%
Trading services 292 062 246 583 250 455 336 004
Electricity 206 990 204 587 200 908 227 501 10% 12%
Water 32 003 21 847 26 165 33 726 35% 22%
Waste water management 10 029 7 481 9 469 12 522 40% 24%
Waste management 43 040 12 668 13 913 62 257 80% 78%
Total Expenditure - Standard 641 005 614 440 634 252 614 201
Surplus/(Deficit) for the year (203 841) (157 348) (198 187) (128 736)
Financial Performance of Operational Services
Current Year 2013/14 2013-2014 Variance
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Standard Classification Description 2012/13
R thousand Audited Outcome Original BudgetAdjusted
Budget
Audited
Outcome
Original
Budget
Adjustments
BudgetRevenue - Standard
Governance and administration (121 253) (152 858) (162 893) (7 979)
Executive and council 30 533 (112 762) (88 049) 102 814 210% 186%
Budget and treasury office (135 924) (26 003) (60 990) (98 358) 74% 38%
Corporate services (15 861) (14 092) (13 854) (12 435) -13% -11%
Community and public safety (37 010) (27 469) (32 084) (33 573)
Community and social services (14 304) (9 750) (13 521) (12 481) 22% -8%
Sport and recreation (7 316) (5 527) (6 887) (7 035) 21% 2%
Public safety (14 856) (9 422) (11 357) (13 798) 32% 18%
Housing (7) (2 769) (31) (31) -8734% 3%
Health (527) – (289) (229) 100% -26%
Economic and environmental services (8 461) (13 180) (15 717) (169)
Planning and development (145) (594) 1 897 (1 022) 42% 286%
Road transport (8 316) (12 586) (17 614) 853 1575% 2164%
Environmental protection – –
Trading services (37 117) 36 159 12 507 (87 015)
Electricity (24 945) 5 059 (11 973) (46 367) 111% 74%
Water 7 004 15 280 11 955 1 194 -1180% -901%
Waste water management 11 688 15 443 13 536 10 482 -47% -29%
Waste management (30 865) 376 (1 011) (52 324) 101% 98%
Other – – – –
Surplus/(Deficit) for the year (203 841) (157 348) (198 187) (128 736)
Financial Performance of Operational Services Surplus (Deficit)Current Year 2013/14 2013-2014 Variance
COMMENT ON FINANCIAL PERFORMANCE:
Delete Directive note once comment is completed – Comment on variances above 10%.
T5.1.3
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5.2 GRANTS
Grant Performance R' 000
Description
Year 2012/13
Year 2013/14 Year 2012/13 Variance
Actual Budget Adjustments Budget
Actual Original Budget
(%)
Adjustments Budget
(%)
Operating Transfers and Grants
National Government: 83,345 83,868 87,760 83,345
Equitable share 79,067 81,428 81,320 81,320 0% 0%
Finance Management 1,598 1,550 1,550 1,550 0% 0%
Municipal Systems Improvement 830 890 890 890 0% 0%
Integrated National Electrification Programme
500 2,201 2,201 2,201 0% 0%
EPWP Incentive 1,350 1,056 1,464 1,464 0% 0%
Provincial Government: – – – –
Health subsidy
Housing
Ambulance subsidy
Sports and Recreation
EPWP Incentive
District Municipality: – – – –
[insert description]
Other grant providers: – – – –
[insert description]
Total Operating Transfers and Grants
83,345 83,868 87,760 83,345
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: For Municipal Infrastructure Grant (MIG) see T5.8.3. For other conditional transfers including
Neighborhood Development Partnership Grant (NDPG); Public Transport Infrastructure and Systems
Grant (PITS) see Appendix L.
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Grant Performance Conditional Grants R' 000
Description
Year 2012/13
Year 2013/14 Year 2013/14 Variance
Actual Budget Adjustments Budget
Actual Original Budget
(%)
Adjustments Budget
(%)
Operating Transfers and Grants
National Government: 46,058 47,015 69,706 65,109
Municipal Infrastructure Grant 41,780 41,318 63,916 59,004 43% 8%
Neighbourhood Development Partnership
Finance Management 1,598 1,550 1,550 1,550 0% 0%
Municipal Systems Improvement 830 890 890 890 0% 0%
Integrated National Electrification Programme
500 2,201 2,201 2,201 0% 0%
EPWP Incentive 1,350 1,056 1,464 1,464 0% 0%
Provincial Government: – – – –
Health subsidy
Housing
Ambulance subsidy
Sports and Recreation
EPWP Incentive
District Municipality: – – – –
[insert description]
Other grant providers: – – – –
[insert description]
Total Operating Transfers and Grants
46,058 47,015 69,706 65,109
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 CONDITIONAL TRANSFERS AND GRANTS:
Note: For Municipal Infrastructure Grant (MIG) see T5.8.3. For other conditional transfers including
Neighborhood Development Partnership Grant (NDPG); Public Transport Infrastructure and Systems
Grant (PITS) see Appendix L.
Delete Directive note once comment is completed – Comment on the variances in the above table
and other and indicate high value projects & total the remaining project.
T 5.2.2
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145
5.3 ASSET MANAGEMENT
INTRODUCTION TO ASSET MANAGEMENT
Delete Directive note once comment is completed - Provide a brief overview on Asset Management
as practiced within your organisation and outline the key elements of your Asset Management Policy.
Explain how asset management is organised, the staff involved and the key delegations. Describe key
issues under development. Indicate the approach to capacity development for this activity. Refer to
the illustrations of asset management approach in relation to the new assets set out below.
T 5.3.1
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146
Name
Description
Asset Type
Key Staff Involved
Staff Responsibilities
Year -3 Year -2 Year -1 Year 0
Capital Implications
Future Purpose of Asset
Describe Key Issues
Policies in Place to Manage Asset
Name
Description
Asset Type
Key Staff Involved
Staff Responsibilities
Year -3 Year -2 Year -1 Year 0
Capital Implications
Future Purpose of Asset
Describe Key Issues
Policies in Place to Manage Asset
Name
Description
Asset Type
Key Staff Involved
Staff Responsibilities
Year -3 Year -2 Year -1 Year 0
Capital Implications
Future Purpose of Asset
Describe Key Issues
Policies in Place to Manage Asset
T 5.3.2
TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 0
Asset 1
Asset Value
Asset 2
Asset Value
Asset 3
Asset Value
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | CHAPTER 5 – FINANCIAL PERFORMANCE
147
COMMENT ON ASSET MANAGEMENT:
Delete Directive note once comment is completed – With reference to the three projects approved
in the year, set out above, describe how these projects were evaluated from a cost and revenue
perspective, including Municipal tax and tariff implications (See MFMA section 19 (2) (a) & (b) and
MSA section 74 (2) (d), (e) & (i)). Ensure that these projects are maintained on files that are readily
accessible for audit inspection. Financial data regarding asset management may be sourced from
MBRR Table A9
T 5.3.3
Repair and Maintenance Expenditure: Year 2013-2014
R' 000
Original Budget Adjustment Budget Actual
Budget variance
Repairs and Maintenance Expenditure 13,149 14, 271 18,084 -126%
T 5.3.4
COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:
Actual expenditure on repairs and maintenance in Lekwa Local Municipality amounted to R18 million
for the 2013/14 financial year. This indicate a decrease of R 6 million when compared to R 24 million
expenditure incurred in the 2012/13 financial period. This represents an over expenditure of R4 million
compared to the adjustment budget of R14 million.
The aging infrastructure of the municipality in actual fact requires that larger amount should be made
available for the maintenance and replacement of especially water reticulations, electricity reticulation,
waste water treatment works and water treatment works however the pressure placed on budget
provision for the extension of infrastructure to cater for new developments limits the availability of
funds for maintenance purposes. The infrastructure grants provided by the national government caters
mainly for upgrading and implementation of new infrastructure rather the maintenance of the current
infrastructure.
Expenditure on repairs and maintenance as a percentage of total expenditure amounted to 4% if debt
impairment and asset depreciation is not taken into account. This is however still not in line with the
National treasury guideline of 10% but the provision for repairs and maintenance will be increased
annually to meet the required standard.
T 5.3.4.1
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5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS
0.9 0.9
1.1
0.9
0.8
0.9
0.9
1.0
1.0
1.1
1.1
Year -3 Year -2 Year -1 Current: Year 0
Liquidity Ratio
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
T 5.4.1
1.5
1.9
1.4
0.8
–
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Year -3 Year -2 Year -1 Current: Year 0
Cost Coverage
iii. Cost coverage
Cost Coverage– It explains how many months expenditure can be coveredby 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 5.4.2
64.0%
62.0%
68.0%
60.5%
56.0%
58.0%
60.0%
62.0%
64.0%
66.0%
68.0%
70.0%
Year -3 Year -2 Year -1 Current: Year 0
Total Outstanding Service Debtors
ii.O/S Service Debtors to Revenue
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.
Data used from MBRR SA8
T 5.4.3
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2.1
1.3
1.5
1.2
–
0.5
1.0
1.5
2.0
2.5
Year -3 Year -2 Year -1 Current: Year 0
Debt Coverage
i. Debt coverage
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
T 5.4.4
96.0%
88.0%
75.0% 77.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Year -3 Year -2 Year -1 Current: Year 0
Creditors System Efficiency
Creditors System Efficiency
Creditor System Efficiency – The proportion of creditors paid within terms (i.e. 30 days). This ratio is calculated by outstanding trade creditors divided bycredit purchases
Data used from MBRR SA8
T 5.4.5
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52.0% 54.0% 56.0%
100.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Year -3 Year -2 Year -1 Current: Year 0
Capital Charges to Operating Expenditure
Capital Charges to Operating Expenditure
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
T 5.4.6
64.0%
92.0% 93.0%
50.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Year -3 Year -2 Year -1 Current: Year 0
Employee Costs
Employee costs
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
T 5.4.7
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87.0%
54.0%
68.0%
63.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Year -3 Year -2 Year -1 Current: Year 0
Repairs & Maintenance
Repairs & Maintenance
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
T 5.4.8
COMMENT ON FINANCIAL RATIOS:
Delete Directive note once comment is completed - Comment on the financial health of the
municipality / municipal entities revealed by the financial ratios set out above. These ratios are derived
from table SA8 of the MBRR.
T 5.4.9
COMPONENT B: SPENDING AGAINST CAPITAL BUDGET
INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET
Delete Directive note once comment is completed – 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. Highlight the 5 largest projects (see T5.7.1) and
indicate what portion of the capital budget they use. In the introduction briefly refer to these key
aspects of capital expenditure (usually relating to new works and renewal projects) and to Appendices
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M (relating to the new works and renewal programmes), N (relating to the full programme of full capital
projects, and O (relating to the alignment of projects to wards).
T 5.5.0
5.5 CAPITAL EXPENDITURE
12.03%
87.97%
–
200
400
600
800
1,000
1,200
R m
illio
n
Capital Expenditure: Year 0
Capital Expenditure
Operating Expenditure
T 5.5.1
5.6 SOURCES OF FINANCE
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Year -1
Actual Original
Budget (OB)
Adjustment
Budget
Actual Adjustment to
OB Variance
(%)
Actual to OB
Variance (%)
Source of finance
External loans 3542 5500 5520 5511 0.36% 0.20%
Public contributions and donations 248 300 390 421 30.00% 40.33%
Grants and subsidies 3451 3700 3700 3856 0.00% 4.22%
Other 2451 4500 4600 4565 2.22% 1.44%
Total 9692 14000 14210 14353 32.59% 46.19%
Percentage of finance
External loans 36.5% 39.3% 38.8% 38.4% 1.1% 0.4%
Public contributions and donations 2.6% 2.1% 2.7% 2.9% 92.1% 87.3%
Grants and subsidies 35.6% 26.4% 26.0% 26.9% 0.0% 9.1%
Other 25.3% 32.1% 32.4% 31.8% 6.8% 3.1%
Capital expenditure
Water and sanitation 1845 4300 4250 4256 -1.16% -1.02%
Electricity 1562 2400 2480 2453 3.33% 2.21%
Housing 1243 2700 2800 2685 3.70% -0.56%
Roads and storm water 1352 1500 1400 1486 -6.67% -0.93%
Other 3690 3500 3450 3473 -1.43% -0.77%
Total 9692 14400 14380 14353 -2.22% -1.08%
Percentage of expenditure
Water and sanitation 19.0% 29.9% 29.6% 29.7% 52.4% 95.2%
Electricity 16.1% 16.7% 17.2% 17.1% -150.1% -205.4%
Housing 12.8% 18.8% 19.5% 18.7% -166.8% 51.7%
Roads and storm water 13.9% 10.4% 9.7% 10.4% 300.2% 86.8%
Other 38.1% 24.3% 24.0% 24.2% 64.3% 71.7%
T 5.6.1
Capital Expenditure - Funding Sources: Year -1 to Year 0
Year 0
Details
R' 000
COMMENT ON SOURCES OF FUNDING:
Delete Directive note once comment is completed – Explain any variations from the approved
budget of more than 10% and discuss the total capital expenditure as a viable proportion of total
expenditure.
T 5.6.1.1
5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS
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COMMENT ON CAPITAL PROJECTS:
Delete Directive note once comment is completed - Provide information in the template above on
the 5 largest projects, ranked according to their approved budget provision year 0. Comment on the
variance between the original and adjustment budgets and on availability of future Budget provision to
operate the projects and lessons learnt in the year about capital project implementation on time to
budget.
T 5.7.1.1
5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW
INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS
Delete Directive note once comment is completed – Explain that need and cost of backlogs are the
result of migration into an area; migration out of an area; the trend towards disaggregation of families
into more than one housing unit; and the cost of renewing and upgrading core infrastructure. Explain
how this balance effects net demand in your municipality and how your municipality is responding to
the challenges created.
T 5.8.1
COMMENT ON BACKLOGS:
Delete Directive note once comment is completed - Comment on how MIG grants have been
utilised to redress the backlogs and on the variances in T 5.8.3. If appropriate, comment that
Appendix P contains details of schools and clinics that have been established that do not have ready
access to one or more basic services and Appendix Q contains details of those services provided by
other spheres of government (whether the municipality is involved on an agency basis or not) that
carry significant backlogs.
T 5.8.4
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COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS
INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS
Adequate cash flow management is critical to ensure that the municipality meets its financial
obligations and is financially viable. A stable positive cash flow balance relative to the growth of the
municipality is a good indication of the municipality’s financial position and financial sustainability.
Cash flow projections are done on a weekly basis and cash not immediately required are invested for a
better return on the short term.
The cash flow statement also provides information on the mode of generation of funds required for
repayment. The cash flow statement also helps to analyze the amount of cash that would be required
in order to meet the operating costs, It further shows the expected level of cash in-flow versus cash
out-flow that is likely to result from the implementation of the budget.
The projection is further based on the debt recovery rate as well as the previous financial period
performance.
T 5.9
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157
5.9 CASH FLOW
Description 2012/13
R thousandAudited
OutcomeOriginal Budget
Adjusted
Budget
Audited
Outcome
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other 317 713 284 207 237 764 254 553
Government - operating 84 979 86 670 86 425 83 230
Government - capital 43 630 42 508 42 508 67 266
Interest 14 949 11 983 17 168 19 573
Dividends
Payments
Suppliers and employees (417 791) (398 232) (400 447) (341 387)
Finance charges (18 233) (1 711) (1 711) (21 862)
Impairement of Traffic Fine (1 308)
Transfers and Grants (2 290) (2 290)
NET CASH FROM/(USED) OPERATING ACTIVITIES 25 247 23 135 (20 583) 60 064
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE 954
Decrease (Increase) in non-current debtors
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments
Payments
Capital assets (21 085) (43 308) (77 920) (44 819)
Acturial loss on Retirement benefit obligation (2 086) (2 286)
NET CASH FROM/(USED) INVESTING ACTIVITIES (22 217) (43 308) (77 920) (47 105)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing (1 131) (1 000) (1 000) (1 102)
Finance Lease payment (155)
NET CASH FROM/(USED) FINANCING ACTIVITIES (1 285) (1 000) (1 000) (1 102)
NET INCREASE/ (DECREASE) IN CASH HELD 1 744 (21 173) (99 503) 11 857
Cash/cash equivalents at the year begin: 15 273 36 708 17 017 17 017
Cash/cash equivalents at the year end: 17 017 15 535 (82 486) 28 874
References
Current Year 2013/14
Cash Flows Outcome
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COMMENT ON CASH FLOW OUTCOMES:
Cash and cash equivalents held at year-end increased from R17 017 million in 2012/13 to R 28 873
million in 2013/14. Net cash from operating activities increased from R 25 247 million to R 60 064
million, the net cash utilized in investing activities increased from R 22 216 million to R 47 105 million
while the net cash utilized in financing activities reduced from R1 285 million to R1 102 million for the
same period.
The cash received from ratepayers and other services declined by R 63 160 million from R 317 713
million in 2012/13 to R 254 553 million in 2013/14.
Payments to suppliers and employees decreased by R 76 404 million from R 417 791 in 2012/13
million to R 341 387 million 2013/14.
T 5.9.1.1
5.10 BORROWING AND INVESTMENTS
INTRODUCTION TO BORROWING AND INVESTMENTS
Outstanding borrowing reduced from R2.1 million in 2011/12 to R1.1 million in 2012/13 and was fully
redeemed in 2013/14. No new borrowing was taken up and capital assets were funded mainly from
grant funding.
T 5.10.1
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159
Instrument
Year 2011 -
2012
Year 2012 -
2013
Year 2013 -
2014
Municipality
Long-Term Loans (annuity/reducing balance) 2 159 501.00 1 101 945.00 -
Long-Term Loans (non-annuity)
Local registered stock
Instalment Credit
Financial Leases
PPP liabilities
Finance Granted By Cap Equipment Supplier
Marketable Bonds
Non-Marketable Bonds
Bankers Acceptances
Financial derivatives
Other Securities
Municipality Total 2 159 501 1 101 945 0
Actual Borrowings: Year 2011-2012 to Year 2013-2014
R' 000
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0
50
100
150
200
250
300
350
400
Year -2 Year -1 Year 0
R m
illio
n
Actual Borrowings
Municipality
Municipal Entities
T 5.10.3
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161
Year 2011 -2012 Year 2012 -2013 Year 2013 -2014
Actual Actual Actual
Municipality
Securities - National Government
Listed Corporate Bonds
Deposits - Bank 11 381 546.00 23 742 110.00 17 611 925.00
Deposits - Public Investment Commissioners
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Municipal Bonds
Other
Municipality Total 11381546 23742110 17611925
Municipal Investments
R' 000
Investment* type
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COMMENT ON BORROWING AND INVESTMENTS:
Surplus cash not immediately required for operations and cash backed internal reserves are invested
on a short term basis. Funds are only invested with A1 rating banks and according to the municipal
investment policy. Investments held at year-end amounted to R17.6 million
T 5.10.5
5.11 PUBLIC PRIVATE PARTNERSHIPS
PUBLIC PRIVATE PARTNERSHIPS
Lekwa Local Municipality did not enter into any public private partnerships during 2013/14 financial
year, nor does it have any existing PPP’s
T 5.11.1
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COMPONENT D: OTHER FINANCIAL MATTERS
5.12 SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM) is the oversight of materials, information, and finances as they move
in a process from supplier to the Municipality. Supply chain management involves coordinating and
integrating these flows. It is said that the ultimate goal of any effective supply chain management
system is to reduce stock levels, with the assumption that products are available when needed.
The department (usually abbreviated to SCM) manages the supply and acquisition of goods and
services to the Municipality or on behalf of the Municipality. This includes construction works and
consultant services, the disposal of goods no longer needed, and the selection of contractors to assist
in the provision of municipal services.
SCM is responsible for ensuring a sound, sustainable and accountable supply chain that promotes
black economic empowerment and local economic development, and encourages small businesses
and joint venture partnerships. This procurement system is fair, equitable, transparent, competitive and
cost effective, in accordance with the Constitution of South Africa.
Composition – SCM consists of Demand, Acquisition and Logistic Management. The Unit has 7
permanent employees and 2 vacancies.
The Municipality has established 3 Committees: Specifications Committee, Evaluation Committee and
the Adjudication Committee. No councillors are members of any committee of the committees handling
supply chain processes.
The Council has developed a Supply Chain Management (SCM) Policy and practises in compliance
with the guidelines set down by the Supply Chain Management Regulations, 2005, which was
approved with effect from 1 March 2006. The new Preferential Procurement Regulations, 2011, with
effect from 7 December 2011 was incorporated in the policy and adopted. The SCM policy is reviewed
annually to incorporate any changes that were not covered in the previous policy. The SCM Policy
incorporating the abovementioned regulations, as well as all other relevant legislation, regulations and
circulars and are annually reviewed with the budget process. The Auditor General indicated significant
issues regarding the SCM Unit which included:
SCM - Contract register not maintained and retrospective analysis on SCM process being followed
Weakness in internal controls. Lack of review and monitoring of compliance with applicable laws and
regulations. Non-compliance with SCM regulations.
T 5.12.1
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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.
The 2013/14 AFS were prepared in terms of the GRAP Standards of reporting. Attention to full GRAP
compliance is ongoing.
T 5.13.1
Municipality | CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS 165
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.
Every municipality must for each financial year prepare annual financial statements which-
fairly presents the state of affairs of the municipality, its performance against its budget, its
management of revenue, expenditure, assets and liabilities, its business activities, its financial results,
and its financial position as at the end of the financial year; and disclose the information required in
terms of sections 123, 124 and 125 of the MFMA.
Annual financial statements must be prepared within two months after the end of the financial year to
which those statements relate and submit the statements to the Auditor-General for auditing.
The accounting officer is responsible to at least once per year measures and reviews the performance
of the municipality. The results of the performance measurement must be audited annually by the
Auditor-General.
Therefore the performance results are submitted with the annual financial statements.
The Auditor-General must audit the financial statements and performance results and submit an audit
report to the accounting officer within three months of receipt of the statements.
T 6.0.1
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COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS
YEAR -1
6.1 AUDITOR GENERAL REPORT: 2012/2013 FINANCIAL YEAR
Auditor-General Report on Financial Performance: 2012/13
Audit Report Status*: Qualified
Non-Compliance Issues Remedial Action Taken
Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan (ANNEXURE T6.1)
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)
T 6.1.1
Auditor-General Report on Financial and Service Delivery Performance: 2012/13
Audit Report Status*: Disclaimer
Non-Compliance Issues Remedial Action Taken
Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan (ANNEXURE T6.1)
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)
T 6.1.2
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167
COMPONENT B: AUDITOR-GENERAL OPINION YEAR 2013/2014
6.2 AUDITOR GENERAL REPORT: 2013/2014 FINANCIAL YEAR
Auditor-General Report on Financial Performance: 2013/2014
Audit Report Status*: Unqualified
Non-Compliance Issues Remedial Action Taken
Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan
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)
T 6.1.1
Auditor-General Report on Financial and Service Delivery Performance: 2013/14
Audit Report Status*: Disclaimer
Non-Compliance Issues Remedial Action Taken
Non-compliance issues and the remedial action is outlined in the attached Audit Action Plan
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)
T 6.1.1
AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS: 2013/2014
The report of the Auditor-General is attached as Appendix T6.2.3.
COMMENTS ON AUDITOR-GENERAL’S OPINION: 2013/2014
Delete Directive note once comment is completed - Provide comments from the Municipal Manager
/ CFO on the Auditor-General’s opinion. Include comments on year 0 if it provides useful context.
T 6.2.4
COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES:
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168
Section 71 of the MFMA requires municipalities to return a series of financial performance data to the
National Treasury at specified intervals throughout the year. The Chief Financial Officer states that
these data sets have been returned according to the reporting requirements.
Signed (Chief Financial Officer)………………………………………………………..... Dated
T 6.2.5
Municipality | GLOSSARY 169
GLOSSARY
Accessibility
indicators
Explore whether the intended beneficiaries are able to access services
or outputs.
Accountability
documents
Documents used by executive authorities to give “full and regular”
reports on the matters under their control to Parliament and provincial
legislatures as prescribed by the Constitution. This includes plans,
budgets, in-year and Annual Reports.
Activities The processes or actions that use a range of inputs to produce the
desired outputs and ultimately outcomes. In essence, activities
describe "what we do".
Adequacy
indicators
The quantity of input or output relative to the need or demand.
Annual Report A report to be prepared and submitted annually based on the
regulations set out in Section 121 of the Municipal Finance
Management Act. Such a report must include annual financial
statements as submitted to and approved by the Auditor-General.
Approved Budget The annual financial statements of a municipality as audited by the
Auditor General and approved by council or a provincial or national
executive.
Baseline Current level of performance that a municipality aims to improve when
setting performance targets. The baseline relates to the level of
performance recorded in a year prior to the planning period.
Basic municipal
service
A municipal service that is necessary to ensure an acceptable and
reasonable quality of life to citizens within that particular area. If not
provided it may endanger the public health and safety or the
environment.
Budget year The financial year for which an annual budget is to be approved –
means a year ending on 30 June.
Cost indicators The overall cost or expenditure of producing a specified quantity of
outputs.
Distribution
indicators
The distribution of capacity to deliver services.
Financial
Statements
Includes at least a statement of financial position, statement of
financial performance, cash-flow statement, notes to these statements
and any other statements that may be prescribed.
General Key
performance
indicators
After consultation with MECs for local government, the Minister may
prescribe general key performance indicators that are appropriate and
applicable to local government generally.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | GLOSSARY 170
Impact The results of achieving specific outcomes, such as reducing poverty
and creating jobs.
Inputs All the resources that contribute to the production and delivery of
outputs. Inputs are "what we use to do the work". They include
finances, personnel, equipment and buildings.
Integrated
Development Plan
(IDP)
Set out municipal goals and development plans.
National Key
performance areas
• Service delivery & infrastructure
• Economic development
• Municipal transformation and institutional development
• Financial viability and management
• Good governance and community participation
Outcomes The medium-term results for specific beneficiaries that are the
consequence of achieving specific outputs. Outcomes should relate
clearly to an institution's strategic goals and objectives set out in its
plans. Outcomes are "what we wish to achieve".
Outputs The final products, or goods and services produced for delivery.
Outputs may be defined as "what we produce or deliver". An output is
a concrete achievement (i.e. a product such as a passport, an action
such as a presentation or immunization, or a service such as
processing an application) that contributes to the achievement of a
Key Result Area.
Performance
Indicator
Indicators should be specified to measure performance in relation to
input, activities, outputs, outcomes and impacts. An indicator is a type
of information used to gauge the extent to
which an output has been achieved (policy developed, presentation
delivered, service rendered)
Performance
Information
Generic term for non-financial information about municipal services
and activities. Can also be used interchangeably with performance
measure.
Performance
Standards:
The minimum acceptable level of performance or the level of
performance that is generally accepted. Standards are informed by
legislative requirements and service-level agreements. Performance
standards are mutually agreed criteria to describe how well work must
be done in terms of quantity and/or quality and timeliness, to clarify the
outputs and related activities of a job by describing what the required
result should be. In this EPMDS performance standards are divided
into indicators and the time factor.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | GLOSSARY 171
Performance
Targets:
The level of performance that municipalities and its employees strive
to achieve. Performance Targets relate to current baselines and
express a specific level of performance that a municipality aims to
achieve within a given time period.
Service Delivery
Budget
Implementation
Plan
Detailed plan approved by the mayor for implementing the
municipality’s delivery of services; including projections of the revenue
collected and operational and capital expenditure by vote for each
month. Service delivery targets and performance indicators must also
be included.
Vote: One of the main segments into which a budget of a municipality is
divided for appropriation of money for the different departments or
functional areas of the municipality. The Vote specifies the total
amount that is appropriated for the purpose of a specific department or
functional area.
Section 1 of the MFMA defines a “vote” as:
a) one of the main segments into which a budget of a municipality is
divided for the appropriation of money for the different departments or
functional areas of the municipality; and
b) which specifies the total amount that is appropriated for the
purposes of the department or functional area concerned
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 172
APPENDICES
APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL
ATTENDANCE
APPENDIX A.1 – COUNCILLORS COUNCIL ATTENDANCE
APPENDIX A.1 – COUNCILLORS COUNCIL ATTENDANCE
Full
Time /
Part
Time
FT/PT % % %
1 Caroline Matshidiso Morajane F FT Executive Mayor ANC PR 13/14 93% 7% 0%
2 Lindokuhle Blessing Robert Dhlamini M FT Speaker ANC 2 13/14 93% 7% 0%
3 Maria Mankomo Ntuli F FT MMC ANC 3 13/14 93% 7% 0%
4 Busisiwe Gladys Sekhonde F FT MMC ANC PR 12/13 85% 7% 0%
5 Goodness Sandy Msibi F FT Chief Whip ANC PR 14/14 100% 0% 0%
6 Sibongile Maria Zacarias F PT ANC PR 14/14 100% 0% 0%
7 Makhosazana Sophy Khumalo F PT ANC 1 12/14 86% 14% 0%
8 Loius Jansen van Rensburg M PT DA 4 12/14 86% 14% 0%
9 Joseph Buti Mothopeng M PT ANC 5 13/14 93% 7% 0%
10 Elijah Nicodemus Khehla Shabangu M PT ANC 6 13/14 93% 7% 0%
11 Jabulile Portia Masuku F PT ANC 7 13/14 93% 7% 0%
12 Johannes Jacob van der Wath M PT DA 8 12/14 86% 7% 7%
13 Mandlenkosi Reginald Tshabalala M PT ANC 9 13/14 93% 7% 0%
14 Pieter Thomas Schnetler M PT DA 10 10/14 71% 21% 7%
15 Andrew Sipho Ngwenya M PT ANC 11 12/14 86% 7% 7%
16 Sechaba Stephen Mosia M PT ANC 12 13/14 93% 7% 0%
17 Ntombizifikile Sitshoni F PT ANC 13 14/14 100% 0% 0%
18 Mphikkeleli George Makhanye M PT ANC 14 11/14 79% 7% 14%
19 Nkantolo Tshabalala M PT ANC 15 13/14 93% 7% 0%
20 Harriet Makhosazana Khota F PT ANC PR 10/14 71% 29% 0%
21 Maggie Yaliwe Mahlangu F PT ANC PR 13/14 93% 7% 0%
22 Mapaseka Lizzy Molaba F PT ANC PR 11/14 79% 21% 0%
23 Mahlodi Dorcas Rakitla F PT ANC PR 12/14 86% 14% 0%
24 Nurse Letty Nkosi F PT ANC PR 11/14 79% 7% 14%
25 Fawzia Sarang F PT ANC PR 11/14 79% 21% 0%
26 Buti Saul Zwane M PT ANC PR 9/14 64% 29% 7%
27 Jacob Fanyana Buthelezi M PT DA PR 10/14 72% 14% 14%
28 Jacobus Rosier de Ville M PT DA PR 10/14 72% 14% 14%
29 Phakiso Mphuthi M PT DA PR 12/14 86% 7% 7%
30 Sipho Sydwell Gumede M PT PAC PR 7/14 50% 43% 7%
T A
Percentage
No Apology
for non-
attendance
Note: * Councillors appointed on a proportional basis do not have wards allocated to them
Councillors, Committees Allocated and Council AttendanceCouncil Members Male
(M) /
Female
(F)
Portfolio Political Party
Represented
Ward (W) or
Proportional
Representative
(PR)
Council
Meetings
attended
out of 14
in total
Percentage
Council
Meetings
Attendance
Percentage
Apologies
for non-
attendance
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 173
APPENDIX A.2 - COUNCILLOR COMMITTEES ALLOCATION
Councillor Committees Allocation
Councillor Committees Allocated
Political Party
Represented
LBR Dhlamini (Chairperson)
Rules, Ethics, By-laws and Policies Committee
ANC
J B Mothopeng ANC
S G Msibi ANC
S M Zacarias ANC
J R de Ville DA
M S Khumalo (Chairperson)
Local Geographical Names Committee
ANC
S S Mosia ANC
M R Tshabalala ANC
N L Nkosi ANC
N Z E Sitshoni ANC
P Mphuthi DA
M L Molaba (Chairperson)
Corporate Services & Community Services and Safety Oversight Committee
ANC
B S Zwane ANC
M G Makhanye ANC
N Tshabalala ANC
J B Mothopeng (Chairperson)
Technical Services and Development and Planning Oversight Committee
ANC
M R Tshabalala ANC
A S Ngwenya ANC
J P Masuku ANC
S S Gumede PAC
S S Mosia (Chairperson)
Budget & Treasury Oversight Committee
ANC
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 174
E N K Shabangu ANC
H M Khota ANC
M D Rakitla ANC
J F Buthelezi DA
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 175
APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES
APPENDIX B - COMMITTEES AND THEIR PURPOSES Committees (other than Mayoral / Executive Committee) and Purposes of Committees
Municipal Committees
Purpose of Committee
1. Audit committee
The purpose of the Audit Committee is to advice the municipal Council, the political office-bearers, the accounting officer and Management staff of the municipality on matters relating to:
1. Internal financial control and internal audits;
2. Risk Management;
3. Accounting Policies;
4. The adequacy, reliability and accuracy of financial reporting and information;
5. Performance management;
6. Efffective governance;
7. Compliance with the MFMA, Division of Revenue Act (DoRA) and other applicable legislation;
8. Performance evaluation; and
9. Any other issues referred to it by the Municipality.
2. Performance Audit Committee
In terms of Regulation 14 (c) of the Municipal Planning and Performance Management Regulations, 2001, the Municipality has opted to utilise the established Audit Committee as the Performance Audit Committee and is required to inter alia do the following:
1. Review the quarterly reports submitted to it by the Internal auditors on the performance measurements of the municipality;
2. Review the municipality's performance management system and make recommendations in this regard to the municipal council;
3. At least twice during a financial year submit an audit report to the municipal council;
4. Any other issues referred to it by the Municipality
3. Municipal Public Accounts Committee (MPAC)
MPAC performs an oversight function on behalf of Council and is not a duplication of and should not be confused with the role played by the Audit Committee or that of the Finance Committee.
The primary function of the MPAC is to assist Council to hold the executive and the municipal administration to account and to ensure the effective and efficient use of municipal resources. It executes this function by reviewing the accounts and financial statements of the municipality and exercising oversight on behalf of Council and to report to council on its activities.
MPAC acts independently has the right to refer or receive matters and reports from other committees.
MPAC may inter alia consider the following:
To examine the annual financial statements;
Any audit reports issued on the Annual Financial Statements;
Any reports issued by the Auditor-General on the affairs of the municipality;
Receive reports from the Audit Committee;
Any other report referred to the Committee by Council;
As an Oversight Committee, review the Annual Report on behalf of Council and make recommendations to
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 176
Council thereafter;
MPAC may also:
Table reports with findings and recommendations on any financial statements or reports to Council;
Initiate and develop the annual oversight report based on the annual report;
Recommend and initiate any investigation in its area of competence;
Seek information from any councillor, employee or any person outside council when conducting an investigation;
Perform any other functions assigned to it by resolution of Council;
When examining financial statements and audit reports, the committee to consider improvements from previous statements and must monitor the extent to which the committee’s and the Auditor General’s recommendations are implemented.
The outcomes and the resolutions taken by the MPAC must be reported to Council and must be made public.
Council section 79 Oversight Committees
The Council per Council Resolution A96 dated 2012-06-25 established the following committees in terms of section 79 of the Municipal Structures Act, 117 of 1998 to play an oversight role in respect of service delivery and budget implementation:
a) Corporate Services & Community Services and Safety
b) Technical Services & Development and Planning
c) Budget and Treasury
5. Rules, Ethics, By-laws & Policies Committee
Foster and maintain discipline among the Councillors
Monitor the implementation of rules and ethical behaviour of Councillors
Attend to petitions and motions
Monitor the implementation of Council resolutions
Review the standing orders
Propose the establishment of a particular committee
Review the delegations register
Initiate the development, rationalisation and review of by-laws and policies
Perform any other functions assigned to it by resolution of Council
6. Local Geographical Names Committee (LGNC)
To identify or help to identify geographical features for possible name standardisation;
To receive and process submissions/applications from individuals and or organisations regarding the standardization of geographical names;
To conduct public participation programmes in which proposed name changes will be discussed by the relevant stakeholders;
To ensure that the standardization of geographical names takes place within a municipal area of jurisdiction area in line with guidelines published by the Mpumalanga Provincial Geographical Names Committee (MPGNC);
Create an atmosphere and mechanisms including sub structures, suitable for the participation of all stakeholders;
To conduct awareness raising activities about the programme of standandising geographical names and to ensure that the public is adequately informed about such processes;
Receive and strive to resolve any objections related to the process of standardizing geographical names in line with MPGNC guidelines for handling objections;
Prepare and submit reports on a regular basis to Council, the Regional Geographical Names Committee and the MPGNC;
Monitor the implementation of standardized geographical names in its jurisdictional area and report any failure to implement to Council and the MPGNC;
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 177
Ensure that all the administration related to the process of standardizing geographic names in its jurisdictional area is properly addressed;
Ensure correspondence with all parties concerned especially the applicants and identifiable objectors as per the applicable MPGNC guidelines;
Interface and interact with the Town Planning, property developers and residents on the naming of any new settlements, streets, public spaces or any related geographic features;
Implement provisions of the SAGNC Act, SAGNC Regulations, Provincial policy and related provincial regulations on the standardisation of geographic names as may be promulgated from time to time.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 178
APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE
Directorate Director/Manager (State title and name)
Use as a spill-over schedule if top 3 tiers cannot be
accomodated in chapter 2 (T2.2.2). T C
Third Tier Structure
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 179
APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY
APPENDIX D - FUNCTIONS OF THE MUNICIPALITY Municipal / Entity Functions
MUNICIPAL FUNCTIONS Function Applicable to Municipality (Yes / No)*
Function Applicable to Entity
(Yes / No)
Constitution Schedule 4, Part B functions:
Air pollution No GSDM
Building regulations Yes
Child care facilities No N/A
Electricity and gas reticulation Yes
Firefighting services Yes
Local tourism Yes
Municipal airports No
Municipal planning Yes
Municipal health services No N/A
Municipal public transport No N/A
Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law
Yes
Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto
No
N/A
Stormwater management systems in built-up areas Yes
Trading regulations Yes
Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems
Yes
Beaches and amusement facilities No N/A
Billboards and the display of advertisements in public places Yes
Cemeteries, funeral parlours and crematoria Yes
Cleansing Yes
Control of public nuisances Yes
Control of undertakings that sell liquor to the public Yes
Facilities for the accommodation, care and burial of animals Yes
Fencing and fences Yes
Licensing of dogs Yes
Licensing and control of undertakings that sell food to the public Yes GSDM
Local amenities Yes
Local sport facilities Yes
Markets No N/A
Municipal abattoirs No N/A
Municipal parks and recreation Yes
Municipal roads Yes
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 180
Noise pollution No
Pounds Yes
Public places Yes
Refuse removal, refuse dumps and solid waste disposal Yes
Street trading Yes
Street lighting Yes
Traffic and parking Yes
* If municipality: indicate (yes or No); * If entity: Provide name of entity T D
APPENDIX E – WARD REPORTING
Ward Name (Number) Name of Ward Councillor and
elected Ward committee
members
Committee
established
(Yes / No)
Number of monthly
Committee
meetings held
during the year
Number of monthly
reports submitted
to Speakers Office
on time
Number of
quarterly public
ward meetings
held during year
T E
Functionality of Ward Committees
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 181
APPENDIX F – WARD INFORMATION
Capital Programme by Project by Ward: 2013/2014
R' 000
Capital Project Ward(s) affected Works completed (Yes/No)
Water
Installation of water connections to 53 Households in Rooikoppen
11 Complete
Completion of the Rising Main Line 3,4,7 & 10 95% completed
Replacement of AC pipes with uPVC pipes in Lekwa LM.
4 & 10 Complete
Installation of boreholes in rural(farm) areas of Lekwa LM
9, 12 & 13 Complete
Sanitation/Sewerage
Installation of raw water turbine pumping units
10 Complete
Installation of sanitation services in rural (farm) areas
9, 12 & 13 Complete
Refurbishment of the Standerton Waste Water Treatment Works
4 Complete
Electricity
Installation of High mast lights in Lekwa Municipality
1,2,3,4,5,6,7,10,11,12,14&15
Complete
Housing
100% construction and completion of 279 housing units
15, 6, 4, 3 269 out of 279 units complete (10 outstanding)
100% demolition of 150 old housing units as well as reconnection of electricity to the newly completed 150 housing units
1, 2, 4, 6 0 out of 150 housing units demolished and reconnection of electricity to 150 units
100% construction and completion of 33 outstanding housing units
12 16 out of 33 units completed (17 outstanding)
100% construction and completion of three double storey units
6 Three double storey community residential units completed
Commence with the installation of municipal engineering services in Standerton Extension 8
9 water reticulation 80 % complete; sewer 80% complete, stormwater 63% complete; roads 30% complete
100% transfer of ownership and handover of title deeds for 3242 RDP units.
11, 15, 3, 4, 6, 2 1805 title deeds prepared but not yet handed over to beneficiaries
Refuse removal
Construction of Standerton Landfill site 8 Complete
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 182
Stormwater
Construction and upgrade of storm water network phase 3
2, 3 & 4 Complete
Sports, Arts & Culture
Construction of Multi-Purpose Community Hall for Sakhile
15 Complete
Sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court.
2 & 3 All sporting facilities complete except the Sakhile Swimming Pool which is still at 50% and has been shelved due to funding constraints.
Construction of Multi-Purpose Community Hall for Rooikoppen
11 Complete
Roads
Re-construction of roads within Lekwa Municipality phase 3 (Nelson Mandela Road) 8 & 10 Complete
Ward Title: Ward Name (Number)
Capital Projects: Seven Largest in Year 0 (Full List at Appendix O)
R' 000
No. Project Name and detail Total Value
2012/2013 Roll-Over Projects
1 Construction of Multi-Purpose Community Hall for Sakhile R8million
2 Re-construction of roads within Lekwa Municipality phase 3 (Nelson Mandela Road)
R6million
3 Installation of High mast lights in Lekwa Municipality R2 million
4 Installation of water connections to 53 Households in Rooikoppen
R0.5 million
5 Sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court.
R3.3 million
6 Construction of Multi-Purpose Community Hall for Rooikoppen R1million
7 Construction of Standerton Landfill site R6.5 million
8 Construction and upgrade of storm water network phase 3 R1.2 million
9 Installation of raw water turbine pumping units R1.9 million
2013/2014 Capital Projects
1 Completion of the Rising Main Line R2.25 million
2 Refurbishment of the Standerton Waste Water Treatment Works
R16.8 million
3 Replacement of AC pipes with uPVC pipes in Lekwa LM. R6.252
4 Installation of sanitation services in rural(farm) areas R3 million
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 183
5 Installation of boreholes in rural(farm) areas of Lekwa LM R3 million
6 Construction of Multi-Purpose Community Hall for Rooikoppen R7million
T F.1
VOLUME II: ANNUAL FINANCIAL STATEMENTS
Provide the Annual Financial Statements (AFS) to the respective financial year as submitted to the
Auditor-General. The completed AFS will be Volume II of the Annual Report.
LEKWA LOCAL MUNICIPALITY: 2013/2014 ANNUAL REPORT | APPENDICES 184
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