idp outcome 9: a strategic strategy key ref performance
TRANSCRIPT
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2019/20
Annual Actual 2018/19
Annual Actual 2019/20
Reason/Comment and Corrective Action
Custodian KPI NO
deferred to 1st quarter 2020-21
5.17 Developed fleet and fuel monitoring strategy submitted to Council for adoption
Developed fleet and fuel monitoring strategy submitted to Council for adoption
New Indicator Target not met Draft strategy has been developed but not submitted to Council for adoption.
Policy workshop where the draft strategy was to be presented before adoption was disrupted and there was national lockdown thereafter. Target deferred to 2020-21 financial year.
Director: Corporate Services
90
5.18 Efficient and economical utilization of council resources
% decrease in telephone expenditure
20% decrease in telephone expenditure
Target met 76.82% decrease on telephone expenditure during 2018/19.
Target met 26.18% decrease in telephone expenditure
N/A Director: Corporate Services
91
5.19 To ensure compliant and prudent safeguarding and preservation
Establishment of legal frameworks, standards and ethical principles to
No. of reports prepared on implementation with the file plan
4 reports prepared on implementation with the file plan
Target met 4 reports prepared on compliance with file plan.
Target met 4 reports prepared on implementation with the file plan
N/A Director: Corporate Services
92
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2019/20
Annual Actual 2018/19
Annual Actual 2019/20
Reason/Comment and Corrective Action
Custodian KPI NO
of institutional memory by 2022 and beyond
protect the confidentiality of data
5.20 To develop and
implement effective and
compliant frameworks to improve
planning and performance management
by 2022
Integrated Planning and Development
Date on which the 2020/20 IDP is submitted to Council for approval
2020/21 IDP submitted to Council for approval by Council by 31st May 2020
Target met Final IDP submitted to Council on the 31st of May 2019. Council resolution attached Final IDP attached
Target met 2020/21 IDP was submitted to Council on the 29th May 2020
N/A Director; Strategic Services
93
5.21 Improve the effective
functionality and credulity
of the performance management
System
No. of days by which the 2020/21 SDBIP is submitted to the Mayor for approval
2020/20SDBIP submitted to the Mayor for approval by the 28th day after approval of the budget
Target met 2019/20 SDBIP was submitted to Mayor and approved on the 25th June 2018 SDBIP and Proof of submission and approval
Target met SDBIP was submitted to the Mayor approval by the 24th
N/A Director; Strategic Services
94
5.22 No of accountability agreements signed
75 accountability agreements signed
Target not met 65 accountability
Target not met 29 accountability agreements
Non submission by departments. Employees
Director: Corporate Services
95
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2019/20
Annual Actual 2018/19
Annual Actual 2019/20
Reason/Comment and Corrective Action
Custodian KPI NO
signed during first quarter
were signed during Q1 of 2019/2020 financial year
were not available due national lockdown. Target deferred to next financial year
5.23 No. of individual performance reviews coordinated (Task grade 12 and upwards)
4 Quarterly individual Performance Reviews coordinated (Task grade 12 and upwards)
Target not met 1 quarterly report prepared on individual performance reviews (Task Grade 12 upwards.)
Target not met No reviews conducted
Variance report attached indicating that the non-submission by departments. Reviews could not be conducted due to national lockdown
Director: Corporate Services
96
5.24 No. of quarterly organizational performance reports submitted to Council
4 quarterly organizational performance reported submitted to Council
Target met 4 quarterly organizational performance reports submitted to Council in July 2018, October 2018, March 2019 and May 2019.
Target not met 3 quarterly organizational performance reports submitted to Council. Third quarter report was not submitted to Council
Target not met due covid-19 pandemic regulations that affected municipal operations. Report will be submitted during the 1st quarter of
Director; Strategic Services
97
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2019/20
Annual Actual 2018/19
Annual Actual 2019/20
Reason/Comment and Corrective Action
Custodian KPI NO
2020-21 financial year.
5.25 Date on which the 2018/19 final and audited Annual Report is submitted to Council and AG
2018/19 Annual report submitted to Council and AG by 31 August 2019
Target met Copy of 2017/18 Audited Annual Report was submitted to AG in August 2017. Attached. Oversight report not attached.
Target met Copy of Unaudited Annual Report, Council resolutions and proof of Submission to Treasury and AG attached by 31st August 2019
N/A Director; Strategic Services
98
5.26 To promote sustainable Local economic development by 2022
Development and implementation of the Spatial Development Framework
Presentation of 1st draft SDF to stakeholders
Presentation of 1st draft SDF to stakeholders
Target not met Service provider was appointed in May 2018, Inception report has been attached on the file for the progress made
Target not met Situation analysis developed
This entailed extensive stakeholder engagement, which couldn’t be scheduled due to the COVID-19 lock down regulations. The stakeholder roadshows that precede this have now been
Director Development and Planning
99
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IDP Ref
Outcome 9: A Responsive
Strategic Objective
Strategy Key Performance Indicator
Annual Target 2019/20
Annual Actual 2018/19
Annual Actual 2019/20
Reason/Comment and Corrective Action
Custodian KPI NO
scheduled for Q1 20/21
5.27 Reviewal of the Local Economic Development Strategy
Developed LED Strategy Situational Analysis report presented to Stakeholders
Developed LED Strategy Situational Analysis report presented to Stakeholders
Target not met
Target not met
Project affected by covid-19 pandemic. Project be uplifted when operations back to normal
Director Development and Planning
100
5.28 Ensure effective and efficient land administration within Amahlathi Local Municipality
Presentation of zoning scheme draft analysis report to stakeholders
Presentation of zoning scheme draft analysis report to stakeholders
Target not met No appointment made due to financial constraints
Target not met Service provider appointed and inception report has been provided
This entailed extensive stakeholder engagement, which couldn’t be scheduled due to the COVID-19 lock down regulations which also kept Municipal staff at home. Target revised & more appropriate targets set for 20/21
Director Development and Planning
101
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CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE
4.1 INTRODUCTION
There are 6 section 56 managers at the employ of the Municipality and they had signed performance agreements which all
have been submitted to the Department of Local Government and Traditional Affairs within the required time frames.
Three of the directors left the municipality. The positions have been advertised to fill in the vacant positions through
recruitment processes.
The 6 section 56 managers lead the following departments
Engineering Services
Community Services
Development and Town Planning
Budget and Treasury Office
Corporate Services
Strategic Services (Resigned and the position was not filled up)
Full time staff complement per functional area
Employees
Description
Year 18/19 Year 2019/20
Employees Approved Posts Current
year Total No
No. Employees
Corporate Services 22 0 0 21
Development and Planning 19 0 0 19
Engineering Department 89 0 0 84
Community Services 117 0 0 115
Executive Services 33 0 0 30
Strategic Services 9 9
BTO 31 0 0 31
Totals 320 0 0 309
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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Vacancy Rate: Year 2019/20
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 0 100.00
CFO 1 0 100.00
Other S56 Managers (excluding
Finance Posts)
4 2 50%
Other S56 Managers(excluding
Finance Posts) Vacant
1 1 100.00
Senior Manager Levels 13-15 37 3 11.1%
Highly skilled supervision levels 9-12 288 137 39.45%
Total 332 143 47.47%
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.
Turn-over Rate
Details
Total Appointments as of
beginning of
Financial Year
Terminations during the
Financial Year Turn-over Rate*
No. No.
Year (2019 / 2020) 0
Resignations - 6
Retirement - 5
Death – 0
Dismissals– 1
Total Promotions -0
0 12 3.88%
* Divide the number of employees who have left the organisation within a year, by total
number of employees who occupied posts at the beginning of the year T 4.1.3
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4.2 MANAGING THE MUNICIPAL WORKFORCE
HR Policies and Plans
Name of Policy Completed Reviewed Date adopted by council
or comment on failure to
% . adopt
1 Code of conduct for councillors 100 16 September 2019 30 October 2019
2 Rules of order 100
16 September 2019 30 October 2019
3 Petitions Policy 100 16 September 2019 30 October 2019
4 Code of conduct for ward
committees
100 16 September 2019 30 October 2019
5 Career Management policy 100 16 September 2019 30 October 2019
6 Experiential training policy 100 16 September 2019 30 October 2019
7 Scarce Skills Policy 100 16 September 2019 30 October 2019
8 Employee study assistance
policy
100 16 September 2019 30 October 2019
9 Training and development policy 100 16 September 2019 30 October 2019
10 Acting allowance policy 100 16 September 2019 30 October 2019
11 Bereavement Policy 100 16 September 2019 30 October 2019
12 Leave Policy 100 16 September 2019 30 October 2019
13 Policy on policy development 100 16 September 2019 30 October 2019
14 Fleet management Policy 100 16 September 2019 30 October 2019
15 Subsistence and Travelling
Policy
100 16 September 2019 30 October 2019
16 Official transport to attend
Funerals (Bereavement Policy)
100 16 September 2019 30 October 2019
17 Job Evaluation review policy 100 16 September 2019 30 October 2019
18 Occupational health and safety
policy
100 16 September 2019 30 October 2019
19 Overtime and shift allowance
policy
100 16 September 2019 30 October 2019
20 Performance Management and
Development
100 16 September 2019 30 October 2019
21 Recruitment, Selection policy 100 16 September 2019 30 October 2019
22 Code of conduct for staff
members
100 16 September 2019 30 October 2019
23 Long Service Allowance Policy 100 16 September 2019 30 October 2019
24 Grievance procedure 100 16 September 2019 30 October 2019
25 Skills Development policy 100 16 September 2019 30 October 2019
26 Staff retention policy 100 16 September 2019 30 October 2019
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4.3 SICK LEAVE
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
0 0 0% 0 0
Temporary total disablement
0 0 0% 0
Permanent disablement
0 0 0% 0 0
Fatal 0 0 0% 0
Total 0 0 0 0
T 4.3.1
Number of days and Cost of Sick Leave (excluding injuries on duty)
Salary band
Total sick
leave
Proportion of sick leave
without medical
certification
Employees using
sick leave
Total employees in post*
*Average sick
leave per Employe
es
Estimated cost
Days % No. No. Days R' 000
Lower skilled (Levels 2-5)
116 2.58% 20 100 1.16
Skilled (Levels 6-11)
331 7.55% 50
125 2.64
Highly skilled production (levels 12-19)
261 9.96% 36 77 3.38
Interns 0 0% 0 0 0
Other (task grade pending)
0 0% 0 1 1.25
MM and S57 8 0% 2 6 1.3
Total 716 7.68% 108 303 2.36 * - Number of employees in post at the beginning of the year T 4.3.2
27 Telephone usage and cellular
allowance phone
100 16 September 2019 30 October 2019
28 Records Management Policy 100 16 September 2019 30 October 2019
29
Uniforms and Protective
Clothing (Health and Safety
Policy)
100 16 September 2019 30 October 2019
Use name of local policies if different from above and at any other HR policies not listed. T 4.2.1
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Number and Period of Suspensions
Position Nature of Alleged
Misconduct
Date of
Suspension
Details of Disciplinary Action taken or Status of Case and
Reasons why not Finalised
Human Resources
Development
Manager
Insolent behaviour/
Conduct
Gross Misconduct
Not
Suspended
03 May 2018
We have appointed a new presiding officer and a prosecutor to convene on this matter. Because of
the pandemic we had to put the matter on hold.
Senior Electrician Three Counts of Gross
Misconduct
02 May 2019 Disciplinary hearing was scheduled for the 26th of March but due to the Covid-19 pandemic we
had to postpone the matter.
Artisan Assistant Gross Misconduct 02 May 2019 Disciplinary hearing was scheduled for the 26th of March but due to the Covid-19 pandemic we
had to postpone the matter.
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4.4 CAPACITATING THE MUNIPAL WORKFORCE - SKILLS DEVELOPMENT AND TRAINING
SKILLS DEVELOPMENT MATRIX
Skills Matrix
Management
Level
Gender Employee
s in post
as
at 30 June
Year 2020
Number of Skilled employees required and actual as at 30 June Year
2020
Learnership
s
Skills programmes & other short
courses
No. Actual:
End of
Year 2019
Actual: End
of Year
2020
Year
2020Targe
t
Actual:
End of
Year 2020
Actual: End
of Year 2020
No. Actual:
End of
Year
2019
Actual: End
of Year 2020
Year
2020Target
Actual:
End of
Year 2020
MM and s56 Female 0 0 0 0 0 Female 0 0 0 0 0
Male 0 0 0 0 0 Male 0 0 0 0 0
Councillors, senior
officials and
managers
Female 0 0 0 0 0 Female 0 0 1 1 0
Male 0 0 0 0 0 Male 0 0 0 0 0
Technicians and
associate
professionals*
Female 0 0 0 0 0 Female 0 0 0 0 0
Male 0 0 0 0 0 Male 0 0 0 0 0
Professionals Female 0 0 0 0 0 Female 2 2 0
Male 0 0 0 0 0 Male 0 0 0
Semi-Skilled and
Unskilled
Female 0 0 0 0 0 Female 0 0 0 0 0
Male 0 0 0 0 0 Male 0 0 0 0 0
Sub total Female 0 0 0 0 0 Female 0 0 3 3 0
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Male 0 0 0 0 0 Male 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 3 3 0
*Registered with professional Associate Body e.g. CA (SA) T 4.5.1
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Financial Competency Development: Progress Report*
Description
A.
Total number of
officials
employed by
municipality
(Regulation
14(4)(a)
and (c))
Description
A.
Total number of
officials
employed by
municipality
(Regulation
14(4)(a)
and (c))
Description
A.
Total number of
officials employed
by municipality
(Regulation 14(4)(a)
and (c))
Description
Financial Officials Financial Officials Financial
Officials
Financial Officials
Accounting officer 1 Accounting officer 1 Accounting
officer
1 Accounting officer
Chief financial officer 1 Chief financial
officer
1 Chief financial
officer
1 Chief financial officer
Senior managers 3 Senior managers 3 Senior managers 3 Senior managers
Any other financial officials 30 Any other financial
officials
30 Any other
financial officials
30 Any other financial officials
Supply Chain
Management Officials
Supply Chain
Management
Officials
Supply Chain
Management
Officials
Supply Chain
Management Officials
Heads of supply chain
management units
0 Heads of supply
chain
management units
0 Heads of supply
chain
management
units
0 Heads of supply chain
management units
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Supply chain management senior
managers
1 Supply chain
management
senior managers
1 Supply chain
management
senior managers
1 Supply chain management
senior managers
TOTAL 36 TOTAL 36 TOTAL 36 TOTAL
* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) T 4.5.2
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1.5 MANAGING THE WORKFORCE EXPENDITURE
Designation Wages and benefits 2018/19 Wages and benefits 2019/20
Municipal Manager R1 307 667 R1 303 761
Corporate Services Manager R946 669 R774 048
Planning and Development Manager R554 954 R830 434
Engineering Services Manager R960 080 R803 635
Community Services Manager R554 953 R830 434
Finance Manager (CFO) R946 564 R946 669
EMPLOYEE RELATED COSTS 2018/19 2019/20
Basic R83 405 084 R84 192 301
Bonus R6 662 704 R6 960 305
Medical aid contributions R5 841 298 R6 155 797
UIF R576 959 R552 122
Travel, motor car, accommodation, subsistence and other allowances R1 880 364 R1 752 665
Overtime payments R629 114 R1 037 209
Acting allowance R272 443 R383 157
Travel allowance R5 335 549 R5 367 477
Housing benefit and allowances R3 262 300 R3 136 500
Industrial Council Levy R34 548 R 35 351
Pension fund contributions by Council R14 231 592 R14 893 583
REMUNERATION OF COUNCILLORS 2018/19 2019/20
Mayor R594 415 R840 313
Speaker R508 076 R683 003
Council Salaries R7 114 595 R7 094 938
Councillor allowances R3 238 448 R3 375 213
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CHAPTER 5: FINANCIAL PERFORMANCE
5.1 INTRODUCTION
This chapter 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
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COMPONENT A: STATEMENT OF FINANCIAL PERFORMANCE
Reconciliation of Table A1 Budget Summary
Description Year 2019/20 Year -2018/19
R thousands
Original
Budget
Budget
Adjustments (i.t.o. s28 and s31 of the
MFMA)
Final
adjustments budget
Shifting
of funds (i.t.o. s31 of the MFMA)
Virement
(i.t.o. Council approved policy)
Final
Budget
Actual
Outcome
Unauthori
sed expenditure
Varianc
e
Actual
Outcome as % of Final
Budget
Actual
Outcome as % of Original Budget
Reported
unauthorised expenditure
Expenditure
authorised in terms of section 32 of MFMA
Balance
to be recovered
Restated
Audited Outcome
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Financial Performance
Property rates 17 659 –
17 659 17 659 20 209 13% 114% 114% 17 885
Service charges 55 161 (10 000) 45 161 45 161 38 497 -17% 85% 70% 38 208
Investment revenue 1 894 – 1 894 1 894 1 434 -32% 76% 76% 965
Transfers recognised -
operational
112 541 1 452 113 993 113 993 111 626 -2% 98% 99% 101 005
Other own revenue 10 184 37 710 47 894 47 894 64 765 26% 135% 636% 15 845
Total Revenue
(excluding capital transfers and contributions)
197 439 29 162 226 601
–
–
226 601 236 533 173 908
Employee costs 115 165
(227)
109 137 109 137 124 000 15 346 12% 114% 108% 126 609
Remuneration of councillors
12 244 –
12 244 12 244 11 993 -2% 98% 98% 11 456
Debt impairment 2 500
–
10 000 10 000 32 644 22 644 69% 326% 1306% 9 366
Depreciation & asset impairment
28 000 –
26 000 26 000 26 598 598
2% 102% 95% 26 784
Finance charges
100
900
1 000 1 000 2 667 1 667 63% 267% 2667% 576
Materials and bulk purchases
31 848 –
31 848 31 848 33 309 1 696 4% 105% 105% 28 928
Transfers and grants
–
–
–
–
–
–
–
0% 0% 0% – –
–
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Other expenditure 35 869 10 792 36 483 36 483 42 570 14% 117% 119% 88 861
Total Expenditure 225 725 11 465 226 712 –
–
226 712 273 781 – 292 577
Surplus/(Deficit) (28 286) 460 (111) (111) (37 249) (118 669)
Transfers recognised - capital
43 632 (5 500) 38 132 38 132 12 317 -2
32% 28% 20 745
Contributions recognised - capital &
contributed assets
–
–
Surplus/(Deficit) after capital transfers & contributions
15 346 (5 040) 38 021 –
–
38 021 (24 931) - (97 924)
Loss on disposal of assets
(3 128)
(8 361)
Fair value gain on biological assets
–
Loss on disposal of biological assets
–
–
(200)
(2 999)
Surplus/(Deficit) for the
year
15 346 (5 040) 38 021
–
38 021 (28 260) (109 285)
Capital expenditure & funds sources
Capital expenditure
Transfers recognised - capital
43 632 (5 500) 38 132 38 132 13 298 -187% 35% 30% 20 745
Public contributions &
donations
–
Borrowing –
Internally generated
funds
100
5 700 5 800 5 800
351
-1551% 6% 0% –
Total sources of capital funds
43 732 200
43 932 –
43 932 13 649 –
-1737% 41% 30% – – –
20 745
Cash flows
Net cash from (used) operating
43 068 (9 764)
59 292
59 292
50 320
-18% 85% 117% 20 932
Net cash from (used)
investing
(43 232)
(700)
(43 932) 43 932) (11 932) -268% 27% 28% (17 707)
Net cash from (used) financing
–
–
–
–
(172)
212
Cash/cash equivalents
at the year end
6 758 (27 026) 25 719 25 719 48 330 10 115
T 5.1.1
Notes
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3 = sum of column 1 and 2 2 represents movements in original budget to get to final adjustments budget
(including shifting of funds) Virements must offset each other so that virements in Total Expenditure equals zero 6 = sum of column 3, 4
and 5 8 does not necessarily equal the difference between 9 and 8 because overspending is not the only reason for unauthorised expenditure
9 = 7 - 6
10 = (7/6)*100
11 = (9/1)*100
14 = 13 - 12 15 in revenue equals Audited Outcome plus funds
actually recovered 15 in expenditure equals Audited Outcome less funds actually recovered 15 in Cash Flow equals Audited
Outcome plus funds recovered
This schedule must be part of the financial statements of the municipality (all other schedules, A2 - A7, should form part of the annexures to the financial statements. These schedules do not directly form part of the
audit opinion)
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Financial Performance of Operational Services
R '000
Description
Year -2018/19 Year 2019/20 Year 2019/20
Variance
Actual Original Budget
Adj Budget Actual Original Budget
Adj Budget
Operating Cost
Electricity (3 868) 14 179 (1 321) (8 930) 259% 85%
Waste Management 7 387 4 165 5 061 (4 401) 195% 215%
Housing (37) (2 253) (2 486) 6 35159% 38782%
Component A: sub-total 3 481 16 091 1 254 (13 324)
Roads 47 236 (53 353) (48 962) (46 373) -15% -6%
Component B: sub-total 47 236 (53 353) (48 962) (46 373)
Planning & Development (7 144) 29 902 29 935 4 603 -550% -550%
Component B: sub-total (7 144) 29 902 29 935 4 603
Community & Social Services 10 793 (9 308) (9 284) (7 236)
-29% -28%
Environmental Protection – (461) (879) – 100% 100%
Public Safety 2 259 (2 250) (2 250) (2 589) 13% 13%
Sport and Recreation 2 558 3 621 3 621 2 066 -75% -75%
Component D: sub-total 15 610 (8 398) (8 792) (7 759)
Total Expenditure 59 183 (15 758) (26 565) (62 853)
In this table operational income is offset against operational expenditure leaving a net operational expenditure total for each service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.1.2
R' 000
Description
Year -2018/19 Year 2019/20 Year 2019/20
Variance
Actual Budget Adjustments Budget
Actual Original Budget
(%)
Adj Budget
(%)
Operating Transfers and Grants
National Government: 101 187 111 341 111 937 110 426
Equitable share 97 114 105 863 105 863 105 863 0% 0%
FMG Grant 1 770 2 235 2 235 2 235 0% 0%
EPWP Grant 921 1 236 1 236 887 -39% -39%
PMU 5% 1 382 2 007 2 007 1 123 -79% -79%
Disaster Relief Grant – – 596 318 100% -88%
Provincial Government: 1 200 1 200 1 200 1 200
Sports and Recreation 1 200 1 200 1 200 1 200 0% 0%
District Municipality: – – – – –
–
Other grant providers: – – 356 –
Waste Grant – – 356 – #DIV/0! #DIV/0!
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Seta Grant – – – – 0% 0%
Total Operating Transfers and Grants
102 387 112 541 113 493 111 626
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
Grants Received From Sources Other Than Division of Revenue Act (DoRA) Details of Donor Actual Grant
Year -2016/17 Actual Grant Year
2017/18
Year 2017/18
Municipal Contribution
Date Grant terminates
Date Municipal
contribution terminates
Nature and benefit from the
grant received, include
description of any
contributions in kind
Parastatals
A - "Project 1" - -
- N/A N/A N/A
Foreign Governments/Development Aid Agencies
A - "Project 1" - -
- N/A N/A N/A
Private Sector / Organisations
A - "Project 1" - -
- N/A N/A N/A
Provide a comprehensive response to this schedule T 5.2.3
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5.2. ASSET MANAGEMENT
The Amahlathi Local Municipality believes that an Asset Management Policy is essential to ensure effective and efficient
utilization of public monies and accountability thereof is heavily dependent on accurate recoding and accounting with the
compilation of the Asset Register that is GRAP compliant. The policy is deemed necessary in order to facilitate the effective
management, control and maintenance of the assets. The prime objectives of the policy is to ensure that the assets of
Amahlathi Municipality are properly managed and accounted for by:-
Ensuring the accurate recording of asset information
The accurate recording of asset movements
Exercising strict control over all assets
Providing correct and meaningful management information
Affecting adequate insurance of all assets
Maintenance of Council’s Assets
The policy is reviewed and amended by council annually during IDP and Budget process. The last review was done in May
2019.
An asset tracking system using bar-coded discs and scanners is implemented. The system allows for regular audits of all
assets to be completed in a shorter time frame and therefore allowing for more regular updates of the register.
TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 2019/20
Asset 1
Name Mlungisi Sport field
Description Construction of Mlungisi Sport field
Asset Type Community Assets
Key Staff Involved 2
Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project
Asset Value
Year 21/22 Year 20/21 Year 19/20 Year 18/19
12 000 000.00 4 352 300.00
Capital Implications 12 000 000.00
Future Purpose of Asset To provide the community with at least a basic level of service
Describe Key Issues
Policies in Place to Manage Asset Asset Management Policy
Asset 2
Name KKH Paving
Description Construction of KKH Paving
Asset Type Road Infrastructure
Key Staff Involved 2
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Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project
Asset Value
Year 21/22 Year 20/21 Year 19/20 Year 18/19
4 000 000.00
Capital Implications 4 000 000.00
Future Purpose of Asset To provide the community with at least a basic level of service
Describe Key Issues
Policies in Place to Manage Asset Asset Management Policy
Asset 3
Name Mlungisi Access Road
Description Construction of Mlungisi Access Road
Asset Type Roads Infrastructure
Key Staff Involved 2
Staff Responsibilities Monitoring, Managing & Reporting on the implementation of the Project
Asset Value
Year 21/22 Year 20/21 Year 19/20 Year 18/19
3 500 000.00 4 400 000.00
Capital Implications 3 500 000.00
Future Purpose of Asset To provide the community with at least a basic level of service
Describe Key Issues
Policies in Place to Manage Asset Asset Management Policy, Roads Maintenance Policy
T 5.3.2
Repair and Maintenance Expenditure: Year 2019/20
R' 000
Original Budget
Adjustment Budget
Actual Budget
variance
Repairs and Maintenance Expenditure
4 828
3 828
2 321 52%
T 5.3.4
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Financial Ratios
No. Financial Viability Assessment
Jun-19 Jun-20
Expenditure Management
1.1 Creditors Payment Period 278.3 days 417.8
Revenue Management
2.1 Debt Collection Period (after impairment) 169.3 days 59.4 days
2.2
Debt impairment provision as percentage of accounts receivable
65.5%
81.6%
Amount of debt impairment provision R47 613 476 R80 257 034
Amount of accounts receivable R72 735 327 R98 331 951
Asset & Liability Management
3.1
A deficit for the year was realized (total expenditure exceeded total revenue) Yes
Yes
Amount of surplus/deficit for the year
(R109 284 653)
(28 259 898)
3.2
A net current liability position was realized (total current liabilities exceeded total current assets)
Yes
Yes
Amount of net current asset position
(R67 424 488)
(79 437 522)
3.3 A net liability position was realized (total liabilities exceeded total assets)
No
No
Amount of net asset position
R295 157 676
R266 897 784
Cash Management
4.1
The year-end bank balance was in overdraft
No
No
Amount of year end bank balance (Cash & Cash Equivalents)
R10 144 498
R48 330 017
4.2
Net cash flow for the year from operating activities were negative
No
No
Amount of net cash inflow for the year from operating activities
R20 931 558
R50 319 668
4.3
Creditors as a percentage of cash & cash equivalents
730.7%
178.5%
Amount of creditors (accounts payable) R73 900 082 R86 263 309
Amount of cash and cash equivalents at year end
R10 114 148
R48 330 017
4.4
Current liabilities as a percentage of next year’s budgeted resources 91.5% 147.8%
Amount of current liabilities R103 975 135 R152 384 625
Amount of next year’s budget income R113 662 000 R103 075 000
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COMPONENT B: SPENDING AGAINST CAPITAL BUDGET
Capital Expenditure - Funding Sources: Year -2018/19 to Year 2019/20
R' 000
Details
Year -2018/19 Year 2019/20
Actual Original Budget
(OB)
Adjustment Budget
Actual Adj to OB
Variance (%)
Actual to OB
Variance (%)
Source of finance
External loans
Public contributions and donations
Grants and subsidies 20 745 43 632 38 132 12 317 -13% -72%
Other – 100 5 800 1 332 0% 0%
Total 20 745 43 732 43 932 13 649 -13% -72%
Percentage of finance
External loans
Public contributions and donations
Grants and subsidies 100.0% 99.8% 86.8% 90.2% 87% 90%
Other 0.0% 0.2% 13.2% 9.8% 0% 0%
Capital expenditure
Water and sanitation
Electricity 5 000 5 500 – 981 -100% -82%
Housing – – – –
MIG Projects 14 594 38 132 38 132 12 317 0% -68%
Other 1 151 100 5 800 351 5700% 251%
Total 20 745 43 732 43 932 13 649 5600% 102%
Percentage of expenditure
Water and sanitation - - - - 0% 0%
Electricity 24.1% 12.6% 0.0% 7.2% -2% -81%
Housing - - - - 0% 0%
Roads and storm water 70.3% 87.2% 86.8% 90.2% 0% -67%
Other 5.5% 0.2% 13.2% 2.6% 102% 248%
T 5.6.1
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Municipal Infrastructure Grant (MIG)* Expenditure Year 2019/20 on Service backlogs
R' 000
Details
Budget Adjustments Budget
Actual Variance Major conditions applied by donor (continue below if
necessary)
Budget Adj
Budget
Infrastructure - Road transport 14 832 20 629 6 501 -128% -217%
Roads, Pavements & Bridges 14 832 20 629 6 501 -128% -217%
Storm water
Infrastructure - Electricity 2 800 – – -100%
Generation
Transmission & Reticulation
Street Lighting 2 800 – -100%
Infrastructure - Water
Dams & Reservoirs
Water purification
Reticulation
Infrastructure - Sanitation
Reticulation
Sewerage purification
Infrastructure - Other
Waste Management
Transportation
Gas
Other Specify: 20 500 17 503 5 816 -252% -201%
Sports fields 12 000 12 000 3 805 -215% -215%
Fire, Safety & Emergency 3 000 2 403 60 -
4886% -
3894%
Hawker Stalls – 600 540 100% -11%
Other 5 500 2 500 1 411 -290% -77%
Total 38 132 38 132 12 317
* MIG is a government grant program designed to fund a reduction in service backlogs, mainly: Water; Sanitation; Roads; Electricity. Expenditure on new, upgraded and renewed infrastructure is set out at Appendix M; note also the calculation of the variation. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. T 5.8.3
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COMPONENT C: CASH FLOW STATEMENT
Cash Flow Outcomes
R'000
Description
Year -2018/19 Current: Year 2019/20
Audited Outcome
Original Budget
Adjusted Budget
Actual
CASH FLOW FROM OPERATING ACTIVITIES
Receipts 176 960 238 293 252 387 205 514
Ratepayers and other 48 569 80 227 95 591 73 027
Government - operating 101 004 112 541 113 993 111 626
Government - capital 20 745 43 632 38 132 12 310
Interest 6 641 1 894 4 671 8 550
Dividends – – – –
Payments (156 028) (195 225) (193 095) (155 194)
Suppliers and employees (155 455) (195 125) (192 095) (152 527)
Finance charges (573) (100) (1 000) (2 667)
Transfers and Grants – – – –
NET CASH FROM/(USED) OPERATING ACTIVITIES 20 932 43 068 59 292 50 320
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE
Decrease (Increase) in non-current debtors Decrease (increase) other non-current
receivables Decrease (increase) in non-current
investments
Payments
Capital assets (17 707) (43 232) (43 932) (11 932)
NET CASH FROM/(USED) INVESTING ACTIVITIES (17 707) (43 232) (43 932) (11 932)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing
Increase (decrease) in consumer deposits
Payments
Repayment of borrowing 212 – – (172)
NET CASH FROM/(USED) FINANCING ACTIVITIES 212 – – (172)
NET INCREASE/ (DECREASE) IN CASH HELD 3 437 (164) 15 360 38 215
Cash/cash equivalents at the year begin: 6 678 6 922 10 359 10 115
Cash/cash equivalents at the year-end: 10 115 6 758 25 719 48 330
Source: MBRR A7 T 5.9.1
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Actual Borrowings: Year -2017/18 to Year 2019/20
R' 000
Instrument Year 2017/18 Year 2018/19 Year 2019/20
Municipality
Long-Term Loans (annuity/reducing balance)
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 NIL
NIL
NIL
Municipal Entities
Long-Term Loans (annuity/reducing balance)
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
Entities Total NIL
NIL
NIL
T 5.10.2
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Municipal and Entity Investments
R' 000
Investment* type Year 2017/18 Year 2018/19 Year 2019/20
Actual Actual Actual
Municipality
Securities - National Government
Listed Corporate Bonds
Deposits - Bank 5 709 8 309 46 339
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 sub-total 5 709 8 309 46 339
Municipal Entities
Securities - National Government
Listed Corporate Bonds
Deposits - Bank Deposits - Public Investment
Commissioners
Deposits - Corporation for Public Deposits
Bankers’ Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endowment Policies (sinking)
Repurchase Agreements - Banks
Other
Entities sub-total - - -
Consolidated total: 5 709 8 309 46 339
T 5.10.4
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5.3 SUPPLY CHAIN MANAGEMENT
Section 3(1) (b) and (c) of the SCM regulations states that the accounting officer of a municipality must at least
annually review the implementation of SCM policy and when necessary submit proposal for the amendments of
the policy to council. The SCM policy was initially developed in 2005 and implemented to give effect to the SCM
regulations and it was last reviewed in May 2017. Amahlathi has established an SCM unit which comprises of
four officials. The code of conduct, oath of secrecy and declaration forms are signed by all officials involved in
supply chain management. The SCM manager has reached prescribed levels as required by the Minimum
Competency Regulations Guidelines and the other three officials are still in process. In line with Municipal Finance
Management Act (MFMA), the accounting officer has also established various bid committees that are consistent
with the SCM regulations and any applicable legislation for competitive bidding i.e.
• Bid Specification Committee
• Bid Evaluation Committee
• Bid Adjudication Committee
5.4 GRAP COMPLIANCE
The municipality is required by legislation to report on its financial affairs using GRAP Reporting Framework. The
Annual Financial Statements and Fixed Asset Register have been prepared and submitted using applicable
GRAP standards. In the current year, the municipality has not adopted any new standards and interpretations as
there are none effective in the current financial year. The municipality also became aware that it had to comply
with the requirements of GRAP 27 (Biological Assets) due to the identification of plantations under its control.
The Asset Register and the Annual Financial Statements have been updated through restatements.
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CHAPTER 6: AUDITOR GENERAL FINDINGS
6.1. AUDITOR GENERAL OPINION 2019/20 The Amahlathi Local Municipality received an unqualified audit opinion in 2019/2020 audit and the following issues
were raised;
Material uncertainty relating to going concern- financial risks that have a negative impact on its
ability to sustain its current level of operations in the near future i.e. an ability to pay creditors within due
dates, Negative key financial ratios and Net current liability was realised.
Material impairments consumer debtors and receivables from non-exchange transactions-
material impairments for consumer debtors and other debtors of R44, 9 million (2019: R26.8, million)
and for receivables from non-exchange transactions of R35, 4 million (2018: R20, 8 million) were
incurred as a result of poor collections.
Material electricity distribution losses- material electricity losses of R9, 8 million (2019: R8, 1 million)
was incurred, which represents 29.51% (2019: 28.4%) of total electricity purchased. The losses are
attributed to normal losses and illegal connections.
Underspending of conditional grant- the municipality materially underspent on the municipal
infrastructure grant by R29.9 million. This was due to a strike action which took place during the
financial year, resulting in the shutdown of municipality offices and operations.
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AUDIT ACTION PLAN TO ADDRESS 2018/19 FINDINGS
No. Exc. No.
Coaf Finding Impact Action Plan Progress Responsibility Time Frame Status
1 ISS 38 CoAF
18
Procurement and
contract
management –
Non submission of
documents – Tax
clearance
certificates, BAS
reports and
declarations of
interest
Non-compliance with section 74(1)
of the MFMA and Municipal SCM
Regn 13 which results in a scope
limitation on irregular expenditure
disclosed in the AFS and a
possible qualification of the opinion
of the audit report.
1. Documents
will scanned and
archived
electronically as
a backup to hard
copies and for
ease retrieval.
None CFO 2020/03/30 In progress
2 ISS 37 CoAF
18
Procurement and
contract
management –
Non submission of
documents –
Deviation
memorandum
Non-compliance with section 74(1)
of the MFMA and Municipal SCM
Regn 36, which results in a scope
limitation on irregular expenditure
and a possible qualification of the
opinion of the audit report.
1. Documents
will scanned and
archived
electronically as
a backup to hard
copies and for
ease retrieval.
None CFO 2020/03/30 In progress
3 ISS 36 COA
F 22
Procurement and
contract
management -
Scope limitation
(R2k - R10k)
Non-compliance with section 74(1)
of the MFMA and Municipal SCM
Regn 5 and 16, which results in a
scope limitation on irregular
expenditure and a possible
1. Documents
will scanned and
archived
electronically as
a backup to hard
None CFO 2020/03/30 In progress
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142 | P a g e
qualification of the opinion of the
audit report.
copies and for
ease retrieval.
4 ISS 68 COA
F 43
Procurement and
contract
management –
Deviations
Irregular expenditure not disclosed
in the financial statements by an
amount of R2 272 833, 20 and
non-compliance with laws and
regulations.
1. Management
will thoroughly
review the
reasons for all
deviations.
2. During
quarterly reviews
reasons will also
be reviewed
building up to the
registers for
disclosure.
None CFO 2020/03/30 In progress
5 ISS 86 CoAF
59
Procurement and
contract
management -
SCM Reg 32 not
properly followed
Irregular expenditure amounting to
R243 455, 93 in the current year
due to non-compliance with the
applicable laws and regulations.
In circumstances
where the
municipality
makes use of the
regulation. Strict
adherence to
sections and
salient
requirements as
per the circular
will be monitored
through
development of a
check list.
In progress CFO 2020/03/30 In progress
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6 ISS 69 CoAF
43
Procurement and
contract
management -
Deviations -
Supplier was not
tax compliant
Irregular expenditure amounting to
R473 512, 50 not disclosed in the
financial statements.
Before deviation
is approved Tax
compliance
status of the
service provider
will be verified
and a printout
generated
In progress CFO 2020/03/30 In progress
7 ISS 18 CoAF
18
Procurement and
contract
management -
Declarations
signed after award
date
Irregular expenditure amounting to
R918 97, 85
Documents will
scanned and
archived
electronically as
a backup to hard
copies and for
ease retrieval.
In progress CFO 2020/03/30 In progress
8 CoAF
30
Irregular
Expenditure-Non
submission of
supporting
documentation
Limitation of scope Documents will
scanned and
archived
electronically as
a backup to hard
copies and for
ease retrieval.
Not yet
implemented
CFO 2020/03/30 Not yet
implemente
d
9 ISS 84 CoAF
58
AFS - Expenditure
– No system in
place to confirm
the occurrence of
bulk purchases
Material misstatement for bulk
purchases amounting to R29 946
232
Management will
install a check
meter to verify
Eskom invoices
Not yet
implemented
Director:
Engineering
Services
2020/03/30
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144 | P a g e
11 ISS 83 CoAF
60
Expenditure - Free
basic services
expenditure not
incurred for the
indigent consumers
Scope limitation of general
expenses - free basic electricity
amount of R9 367 987
Council has
since resolved to
start the process
afresh so as to
have a new
indigent register.
Registration
has already
started and a
new register is
in place
however there
is an
outstanding
debt with
Eskom relating
to Free Basic
Electricity
CFO 30-Jun-20 In
progress
12 ISS 66 CoAF
42
Scope limitation of
general expenses -
free basic
electricity amount
of R9 367 987
Material scope limitation which
may result in a qualification of
opinion on the audit of
performance information
Council has
since resolved to
start the process
afresh so as to
have a new
indigent register.
Registration
has already
started and a
new register is
in place
however there
is an
outstanding
debt with
Eskom relating
to Free Basic
Electricity
CFO 30-Jun-20 In
progress
13 ISS 78 CoAF
50
AOPO - No. of
households and
business with basic
waste collection -
Scope limitation
Material scope limitation which
may result in a qualification of
opinion on the audit of
performance information.
Review of SDBIP
to talk to
available reports
on the system.
In progress Director:
Strategic
Services
31-Mar-20 In
progress
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14 ISS 54 CoAF
29
Execution - Cash
and cash
equivalent - Bank
account not
recorded and
disclosed in the
AFS
Understatement of the cash and
cash equivalent by R1 680 and
non-compliance with laws and
regulations
Supporting
documentation
will be sourced
and our records
will be updated
Bank statement
sourced and in
place
CFO 31-Mar-20 In
progress
15 ISS 55 CoAF
29
Cash and cash
equivalent -
Balance is
overstated
overstatement of the cash and
cash equivalent by R722 388
1. Amount to be
journalized and
written off as it
was closed
already in the
2018/19 financial
year
1. 3rd quarter
AFS will be
prepared after
full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements will
be prepared
Supporting
documentation
in place
CFO 31-Mar-20 In
progress
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146 | P a g e
early enough to
allow for
thorough
Reviewal.
4. Monthly bank
reconciliation
16 ISS 70 CoAF
56
Cash flow
statement -
Recalculation
differences
Cash flow statements not fairly
presented
Preparation of
quarterly
financial
statements to
facilitate better
review processes
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In
progress
17 ISS 73 CoAF
49
Comparatives not
disclosed in
respect of
contingent liabilities
and assets
Comparative information as
required by GRAP 1 is not
disclosed, as a result financial
statements are not complete
Preparation of
quarterly
financial
statements to
facilitate better
review processes
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In
progress
18 ISS 11 CoAF
7
Planning:
Employee Costs -
Organogram not
reviewed for the
2018/19
1. Lack of accountability if it is not
clear who holds which position
within the municipality and not be
able to ensure that operations are
in line with the strategic objectives
that have been set out for the
municipality.
2. Lack of accountability if it is not
clear who holds which position
within the municipality and not be
able to ensure that operations are
in line with the strategic objectives
Facilitate the
process of
tabling reviewed
organogram to
council
In progress Director
Corporate
services
31-Mar-20 In
progress
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147 | P a g e
that have been set out for the
municipality.
3. There could be an impact on the
operational efficiency of the
municipality through having people
holding Acting positions for a long
period of time, which could lead to
an impact on achieving the
strategic objectives of the
municipality.
19 ISS 21 CoAF
24
Employee cost:
Limitation of scope
due non-availability
of documents
Projected scope limitation in the
employee related costs amounting
to R1 002 235
Ensure scanning
of all HR related
documents
In progress CFO and
Corporate
Services
Director
31-Mar-20 In
progress
20 ISS 46 CoAF
34
Employee cost:
Payroll
reconciliation-
payroll amount
does not agree
with amount on the
AFS
Factual overstatement of R60 374
to the employee related costs
Monthly
reconciliations to
be performed
Monthly payroll
has been
prepared and
recons are in
progress
CFO and
Corporate
Services
Director
30-Jun-20 In
progress
21 ISS 76 CoAF
62
Employee benefits
obligation -
Employees did not
took leave at least
of at least 16
working days
Non-compliance with South African
Local Government Bargaining
Council Main Collective
Agreement.
Memos to be
sent to
Departments to
advise on
employees that
are due to take
In progress Director
Corporate
services
30-Jun-20 In
progress
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148 | P a g e
during the leave
cycle
compulsory
leave.
22 CoAF
7
Planning:
Employee Costs -
No approved HR
Plan in place for
2018/19
1. Human resources needs of the
municipality might not be properly
planned i.e. determination of the
type and quantity of skills required
in each division, budget available
for remuneration etc.
2. This might have an impact on
the municipality’s ability to meet its
mandate and achieve service
delivery.
Facilitate the
process of
tabling reviewed
organogram to
council
In progress Director
Corporate
services
30-Jun-20 In
progress
23 ISS 67 CoAF
44
Disclosure: Key
management
remuneration -
Amount in the
Payroll does not
agree with AFS
note 25
The misstatement of R1
107208.54 to the amounts
disclosed in note 25 to the financial
statements.
Preparation of
quarterly
financial
statements to
facilitate better
review processes
Appointment of
service
providers is in
progress
CFO and
Corporate
Services
Director
31-Mar-20 In
progress
24 ISS 1 CoAF
9
Internal auditors -
Internal Control
Deficiencies -
1. Internal auditors
did not attend any
trainings during the
current financial
year.
2. Internal audit
unit did not perform
Internal audit will not be fully
effective in its functions which
include quality assurance reviews
of evaluating the information
systems environment resulting in
deficiencies in internal control not
being addressed in a timely manner
by management.
The internal auditors may not be up
1. The
municipality will
be partnering
with other
government
institutions for
the training of
Internal Audit
staff.
2. The will be
In progress MM 30-Jun-20 In
progress
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149 | P a g e
all the tasks as per
their annual plan.
3. Internal audit
unit did not
evaluate controls to
determine
effectiveness and
efficiency thereof
with regards to
information
systems i.e. no
information system
review conducted
during the year.
to date with all the changes that are
made to the standards in the IIA.
monitored on a
quarterly basis
through the AC
Meetings.
3. The
Information
Systems review
has been
included in the
2019/2020
Financial Year.
25 ISS2 CoAF
9
Planning - Internal
audit function did
not have an
external quality
assurance review
Non-compliance with laws and
regulations and internal control
deficiency.
The municipality
will be requesting
the Provincial
Treasury for the
Quality Internal
Assessment.
In progress MM 30-Jun-20 In
progress
26 ISS 45 CoAF
33
Use of consultants
- No gap
analysis/needs
assessment and
acute project
planning performed
by Municipality
prior to invitation of
bids.
Non-compliance with the MFMA Develop policy to
regulate the
process of
appointing
consultants.
Draft policy is
in place.
MM 30-Jun-20 In
progress
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150 | P a g e
27 ISS9 CoAF
8
Internal Control
Deficiencies -
Reconciliations are
not performed
regularly -
Non-compliance with laws and
regulations and internal control
deficiency
Monthly
reconciliations to
be performed
Monthly
reconciliations
to be
performed on a
monthly basis
and reported
on their
progress
CFO 30-Jun-20 In
progress
28 ISS 3 CoAF
2
AFS - Prior year
uncorrected
misstatements
Annual financial statements are
not fairly presented as required by
GRAP 1
Preparation of
quarterly
financial
statements to
facilitate better
review processes
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In
progress
29 ISS 43 CoAF
12
Annual Financial
Statements –
Amounts in the
registers/listing/GL
does not agree to
the TB and AFS
Non-compliance with GRAP 1
standards and material differences
will result to financial statements
that do not present fairly, in all
material respects, the financial
position of the municipality in
accordance with GRAP and the
requirements of the MFMA
Preparation of
quarterly
financial
statements to
facilitate better
review processes
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In
progress
30 ISS 60 CoAF
63
Execution -
Compliance -
Roads
Infrastructure
Non-compliance with Standard for
Infrastructure Procurement and
Delivery Management (SIPDM)
Develop a
procedure
manual for the
implementation
of the SIPDM.
N/A Director:
Engineering/CF
O
Feb-20 Not yet
implemente
d
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151 | P a g e
31 ISS 8 CoAF
10
Non-compliance -
Consequence
Management
Material non-compliance with laws
and regulations
Develop a
process plan for
MPAC to conduct
the necessary
investigations
into UIFW
Expenditure.
Not yet
implemented
MM Mar-20 In progress
32 ISS 47 CoAF
31
Compliance -
Annual report
Material non-compliance with the
MFMA
The institution
will look at the
guidance of
Legislation and
Regulation in
2019/20
Financial year
Annual Report
will be
submitted to
AG on the 13th
of December
and will be
submitted to
Council by 25th
January and
notice will
issued for
public
comments
thereafter.
MM Mar-20 In progress
33 ISS 48 CoAF
31
Compliance -
Consequences
management
Material non-compliance with the
MFMA
The institution
will look at the
guidance of
Legislation and
Regulation in
2019/20
Financial year
Annual Report
will be
submitted to
AG on the 13th
of December
and will be
submitted to
Council by 25th
January MPAC
Roadshows will
MM Mar-20 In progress
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152 | P a g e
be conducted
in January and
oversight report
be submitted to
Council
34 ISS
90
CoAF
61
Execution -
Statement of
changes in net
assets - Casting
error
Misstatement of R1 966 179 to the
balance reported for accumulated
surplus in the statement of
changes in net assets
Preparation of
quarterly
financial
statements to
facilitate better
review processes
Appointment of
service
providers is in
progress
CFO
35 ISS 19 CoAF
15
Unauthorized
expenditure
misstated
Material misstatement of
unauthorized expenditure
1. 3rd quarter
AFS will be
prepared to
identify
unauthorized
expenditure.
2. Annual
financial
statements will
be prepared
early and
thoroughly
reviewed
3. Management
submit to council
a
recommendation
on the way
Appointment of
service
providers is in
progress
CFO 30-Jun-20 In progress
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153 | P a g e
forward in line
with Circular 68
36 ISS 20 CoAF
16
AFS: Statement of
comparison of
budget and actual
amounts
Misstatement of the statement of
comparison of budget and actual
amounts
1. 3rd quarter
AFS will be
prepared to
identify
unauthorized
expenditure.
2. Annual
financial
statements will
be prepared
early and
thoroughly
reviewed
3. Management
submit to council
a
recommendation
on the way
forward in line
with Circular 68
Appointment of
service
providers is in
progress
CFO 30-Jun-20 In progress
38 ISS 52 CoAF
30
Fruitless and
wasteful
expenditure -
Understatement of
note 43
Understatement of fruitless and
wasteful expenditure amounting to
R463 260.72 in note 43 of the
annual financial statements
Develop process
flow for
identifying and
reporting fruitless
and wasteful
expenditure.
In progress CFO 30-Jun-20 In progress
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39 ISS 91 CoAF
66
PPE - Buildings
burnt not
considered for
impairment
Factual misstatement of
impairment loss by R2 922 720.19
and non-compliance with GRAP
and this also affects the
depreciation amount recognized in
the financial statement.
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
Appointment of
service
providers is in
progress
CFO 30-Jun-20 In progress
40 ISS 80 CoAF
51
Inventory –
Inventory at year
end is misstated
The issue will result in a projected
misstatement of R535 505, 15
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Appointment of
service
providers is in
progress
CFO 30-Jun-20
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155 | P a g e
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
41 ISS
62
CoAF
47
Investment
property -
Depreciation on
investment
property calculated
incorrectly -
Projected overstatement in
depreciation and understatement
of investment property of R5 920
807, 92
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
Appointment of
service
providers is in
progress
CFO 30-Jun-20 In progress
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156 | P a g e
for thorough
reviewal.
42 ISS 64 CoAF
27
Investment
Property -
Differences in
carrying values
noted in asset
register -
Non-compliance with GRAP 1
standards and factual
overstatement of R5 808 856.43 to
the investment property balance
reported in the financial statements
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
Appointment of
service
providers is in
progress
CFO 30-Jun-20 In progress
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43 ISS 72 CoAF
53
Execution - PPE -
Limitation of scope
- Assets could not
be verified
Overstatement of Property, plant
and equipment balance by an
extrapolated amount of R4 280.60.
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
Appointment of
service
providers is in
progress
All 30-Jun-20 In progress
44 ISS 71 CoAF
53
PPE Depreciation
disclosure
Financial statements do not fairly
present the state of affairs of the
municipality
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Appointment of
service
providers is in
progress
CFO In progress
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158 | P a g e
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
45 ISS 33 CoAF
19
Expenditure -
Misallocated
transactions
relating to
electricity
consumption
Results to an overstatement of
bulk purchases by R115 278.56
Allocation for
bulk purchases
to be monitored
continuously
Allocations are
currently done
accordingly
CFO 30-Jun-20 In progress
46 ISS 34 CoAF
23
COAF 23:
Execution -
Expenditure -
Misclassification
A projected misstatement of
expenditure by R266 592.85
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
Appointment of
service
providers is in
progress
CFO 30-Jun-20 In progress
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159 | P a g e
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
47 ISS 32 CoAF
33
Expenditure -
Interest charge
included in bulk
purchases
Overstatement of bulk purchases
by R538 741.81
Allocation for
bulk purchases
to be monitored
continuously
Allocations are
currently done
accordingly
CFO 30-Jun-20 In progress
48 ISS 26 CoAF
19 &
23
Compliance -
Expenditure -
Payments not
made within 30
days
Non-compliance with section 65(2)
(e) of the MFMA and possible
fruitless and wasteful expenditure
as a result of penalties due to
interest charged
The municipality
is currently
experiencing
cash flow
challenges
Strides are
made to ensure
payments are
made within 30
days when
there are funds
CFO 30-Jun-20 In progress
49 ISS 27 CoAF
19
Expenditure - VAT
amount incorrectly
included in Bulk
Purchases
Overstatement of bulk purchases
by R364 512
Allocation for
bulk purchases
to be monitored
continuously
Allocations are
currently done
accordingly
CFO 30-Jun-20 In progress
50 ISS 44 CoAF
23
Expenditure - No
purchase order
Projected limitation of scope to
expenditure – contracted services
amounting to R70 450.82
Documents will
scanned and
archived
electronically as
a backup to hard
In progress CFO 30-Jun-20 In progress
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160 | P a g e
copies and for
ease retrieval.
51 ISS 85 CoAF
57
Execution - Trade
and other payables
from exchange –
Misstatements
identified
Overstatement of trade and other
payables by R88 696.38
Perform monthly
reconciliations
In progress CFO 30-Jun-20 In progress
52 ISS 6 CoAF
35
Execution - Trade
and other payables
- Scope Limitation
Non- compliance with section
74(1) of the MFMA which also lead
to a factual limitation of scope on
the trade and payables balance
amounting to R3 848 069.73 and
possible qualification of the opinion
of the audit report
Perform monthly
reconciliations
In progress CFO
53 ISS 29 CoAF
38
Trade and other
payables - Scope
limitation
Material overstatement of the trade
and other payables by R6 266 911
and the receivables from exchange
transactions and non-exchange
transactions by the same amount.
Perform monthly
reconciliations
In progress CFO
54 ISS 5 CoAF
14
AOPO -
Misstatement
identified - POE
does not agree to
the APR
Results to the misstatement of
reported achievements for the
aforementioned key performance
indicators in the annual
performance report and non-
compliance with applicable laws
and regulations.
Engineering
department to
develop a
mechanism to
find credible
approach on
ways to support
information
needed to be
Currently
department is
working on
improving on
supporting
information on
activities
achieved and
those that are
Director
Engineering
Feb-20 Engineering
department
to interact
with
manager
IDP to
develop a
structured
approach
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161 | P a g e
supported in the
municipal AOPO
file.
partially
achieved.
on
corrective
measures
to be
undertaken
on AOPO
55 ISS 61 CoAF
40
Reported strategic
objectives are not
consistent with
planned strategic
objectives
Non-compliance with laws and
regulations and the reported
information in the APR will not be
valid, accurate and complete
APR was
adjusted
accordingly. An
oversight will be
conducted during
the compilation
of 2019/20 APR.
Done MM 30th
November
Done
56 ISS 31 CoAF
34
Provision for
bonuses not
disclosed in the
AFS
Non-compliance with GRAP and
MFMA
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In progress
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162 | P a g e
enough to allow
for thorough
reviewal.
57 ISS 30 CoAF
32
Provision for landfill
sites -
Keiskammahoek
landfill site not
disclosed in the
AFS
Non-compliance with GRAP and
MFMA
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In progress
58 ISS 63 CoAF
39
Receivables from
exchange and non-
exchange
transactions -
Understatement
Material understatement of the
trade and other receivables from
exchange transactions and non-
exchange transactions by
R2 522 415, 79 and the trade and
Perform monthly
reconciliations
In progress CFO 31-Mar-20 In progress
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163 | P a g e
other payables by the same
amount.
59 ISS 51 CoAF
28
Consumer debtors
- Existence of the
debtors was not
confirmed
Projected misstatement of
consumer debtors arising from
exchange transactions amounting
to R3 993 349, 56
Perform monthly
reconciliations
In progress CFO 31-Mar-20 In progress
60 ISS 57 CoAF
36
Indigent debtors Scope limitation on the indigent
subsidy amount
Develop new in
indigent register
In progress CFO 31-Mar-20 In progress
61 ISS 12 CoAF
13
Annual Financial
Statements –
Differences in
comparative
figures
Non-compliance with GRAP 1
standards
1. 3rd quarter
AFS and FAR
will be prepared
after full physical
verification and
conditional
assessment of
municipal assets.
2. Development
of AFS
Preparation Plan
and strict
adherence to it.
3. Annual
financial
statements and
FAR will be
prepared early
enough to allow
for thorough
reviewal.
Appointment of
service
providers is in
progress
CFO 31-Mar-20 In progress
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62 ISS 15 CoAF
20
Difference between
the statement and
the recalculated
amount.
Projected misstatement of revenue
from exchange transactions by
R235 248, 06 and consumer
debtors by the same amount
Perform monthly
reconciliations
In progress CFO 30-Jun-20 In progress
63 ISS 22 CoAF
20
Sale of electricity Projected misstatement of revenue
from sale of electricity by R1 794
533,84 and consumer debtors by
the same amount
Perform monthly
reconciliations
In progress CFO 30-Jun-20 In progress
64 ISS 25 CoAF
20
Revenue interest
received -
investment
understated
Revenue from exchange
transactions - Interest received
from investments to be
understated by R 645 876, 63
Perform monthly
reconciliations
In progress CFO 30-Jun-20 In progress
65 ISS 59 CoAF
45
Compliance for
conditional grants
Non-compliance with section 12(5)
of the Division of Revenue Act 1 of
2018
Continuous
monitoring of
compliance to
DoRA
In progress CFO 30-Jun-20 On-going
monitoring
66 ISS 82 CoAF
65
VAT - Amount of
interest and
penalty not
recorded in the GL
and non-
compliance with
VAT act.
Fruitless and wasteful expenditure
understated by R25 550.74
Amount to be
corrected and
recorded under
fruitless and
wasteful
expenditure in
the AFS
Interest and
penalties are
recorded in
their respective
votes in the GL
CFO 30-Jun-20 On-going
monitoring
67 ISS 42 CoAF
22
Procurement and
contract
management -
Differences in
points calculation
Internal control deficiency. A recalculation of
points will be
done by Bid
Adjudication
Committee to
ensure accuracy
In progress CFO 30-Jun-20 In progress
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165 | P a g e
68 CoAF
17
Procurement and
contract
management –
Scope limitation
Non-compliance with section 74(1)
of the MFMA and Municipal Supply
Chain Management regulation 27
which results in a scope limitation
on irregular expenditure disclosed
in the financial statements and a
possible qualification of the opinion
of the audit report
Documents will
scanned and
archived
electronically as
a backup to hard
copies and for
ease retrieval.
In progress CFO 30-Jun-20 In progress
69 CoAF
17
Procurement and
contract
management -
Scope Limitation -
Bid adjudication
committee meeting
minutes not
submitted
Non-compliance with section 74(1)
of the MFMA and Municipal Supply
Chain Management regulation 29
which results in a scope limitation
on irregular expenditure disclosed
in the financial statements and a
possible qualification of the opinion
of the audit report
Documents will
scanned and
archived
electronically as
a backup to hard
copies and for
ease retrieval.
In progress CFO 30-Jun-20 In progress
70 CoAF
17
Procurement and
contract
management –
Scope limitation –
Bid documents
Non-compliance with section 74(1)
of the MFMA which results in a
scope limitation on irregular
expenditure disclosed in the
financial statements and a possible
qualification of the opinion of the
audit report
The first 3
responsive bids
will be scanned
and archived for
ease of retrieval
(relevant pages).
In progress CFO 30-Jun-20 In progress
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6.2 AUDIT REPORT OF THE AUDITOR GENERAL 2019/20 FINANCIAL YEAR
Report of the auditor-general to Eastern Cape Provincial Legislature and the council of Amahlathi Local
Municipality
Report on the audit of the financial statements Opinion
1. I have audited the financial statements of the Amahlathi Local Municipality set out on pages … to …, which
comprise statement of financial position as at 30 June 2020, statement of financial performance, statement
of changes in net assets, statement of cash flows and statement of comparison of budget and actual
information for the year then ended, as well as the notes to the financial statements, including a summary
of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the
Amahlathi Local Municipality as at 30 June 2020, and financial performance and cash flows for the year
then ended in accordance with the South African Standards of Generally Recognised Accounting Practice
(SA Standards of GRAP) and the requirements of the Municipal Finance Management Act of South Africa,
2003 (Act no. 56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2019 (Act no.16 of
2019) (Dora).
Context for the opinion
3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities
under those standards are further described in the auditor-general’s responsibilities for the audit of the
financial statements section of this auditor’s report.
4. I am independent of the municipality in accordance with sections 290 and 291 of the Code of ethics for
professional accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants
(including International Independence Standards) of the International Ethics Standards Board for
Accountants (IESBA codes) as well as the ethical requirements that are relevant to my audit in South
Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the
IESBA codes.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
opinion.
Material uncertainty relating to going concern
6. I draw attention to the matters below. My opinion is not modified in respect of these matters.
7. As disclosed in note 43 to the financial statements, the municipality disclosed the following financial risks
that have a negative impact on its ability to sustain its current level of operations in the near future, before
taking into account government grants:
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An ability to pay creditors within due dates
Negative key financial ratios
Net current liability was realised
8. In addition, the actions taken by management to mitigate the impact of these risks are disclosed in this note
Emphasis of matters
9. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Restatement of corresponding figures 10. As disclosed in note 41 to the financial statements, the corresponding figures for 30 June 2019 were
restated as a result of errors in the financial statements of the municipality at, and for the year ended, 30
June 2020.
Material impairments consumer debtors and receivables from non-exchange transactions 11. As disclosed in note 4 and 5, respectively, to the financial statements, material impairments for consumer
debtors and other debtors of R44, 9 million (2019: R26.8, million) and for receivables from non-exchange
transactions of R35, 4 million (2018: R20, 8 million) were incurred as a result of poor collections.
Material electricity distribution losses 12. As disclosed in note 49 to the financial statements, material electricity losses of R9, 8 million (2019: R8, 1
million) was incurred, which represents 29.51% (2019: 28.4%) of total electricity purchased. The losses are
attributed to normal losses and illegal connections.
Underspending of conditional grant 13. As disclosed in note 18 to the financial statements, the municipality materially underspent on the municipal
infrastructure grant by R29.9 million. This was due to a strike action which took place during the financial
year, resulting in the shutdown of municipality offices and operations.
Other matters
14. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited disclosure note 15. In terms of section 125(2) (e) of the MFMA, the municipality is required to disclose particulars of non-
compliance with this legislation. This disclosure requirement did not form part of the audit of the financial
statements and, accordingly, I do not express an opinion on it.
Responsibilities of the accounting officer for the financial statements
16. The accounting officer is responsible for the preparation and fair presentation of the financial statements in
accordance with the SA Standards of GRAP and the requirements of the MFMA and Dora, and for such
internal control as the accounting officer determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
17. In preparing the financial statements, the accounting officer is responsible for assessing the municipality’s
ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and
168 | P a g e
using the going concern basis of accounting unless the appropriate governance structure either intends to
liquidate the municipality or to cease operations, or has no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements
18. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with the ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
19. A further description of my responsibilities for the audit of the financial statements is included in the
annexure to this auditor’s report.
Report on the audit of the annual performance report
Introduction and scope
20. In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, I
have a responsibility to report on the usefulness and reliability of the reported performance information
against predetermined objectives for the selected key performance area presented in the annual
performance report. I performed procedures to identify material findings but not to gather evidence to
express assurance.
21. My procedures address the usefulness and reliability of the reported performance information, which must
be based on the municipality’s approved performance planning documents. I have not evaluated the
completeness and appropriateness of the performance indicators/measures included in the planning
documents. My procedures do not examine whether the actions taken by the municipality enabled service
delivery. My procedures also do not extend to any disclosures or assertions relating to planned
performance strategies and information in respect of future periods that may be included as part of the
reported performance information. Accordingly, my findings do not extend to these matters.
22. I evaluated the usefulness and reliability of the reported performance information in accordance with the
criteria developed from the performance management and reporting framework, as defined in the general
notice, for the following selected the selected key performance area presented in the municipality’s annual
performance report for the year ended 30 June 2020:
Key performance area Pages in the annual performance report
KPA 01: Service delivery and infrastructure development (SDI) 35 – 50
23. I performed procedures to determine whether the reported performance information was properly
presented and whether performance was consistent with the approved performance planning documents. I
performed further procedures to determine whether the indicators and related targets were measurable and
relevant, and assessed the reliability of the reported performance information to determine whether it was
valid, accurate and complete.
169 | P a g e
24. The material findings in respect of the reliability of the selected key performance area are as follows:
KPA 1 – Service delivery and infrastructure development (SDI) Indicator: % of Faulty reported meters repaired per inspection report
25. The achievement of 100% of the faulty meters repaired only in quarter 1 was reported against the target of
80% of faulty reported meters repaired as per inspection report in the annual performance report. However,
I was unable to obtain sufficient appropriate audit evidence to support the performance against the target
as reported in the annual performance report. This was due to the inability to obtain the reported number of
faulty meters requiring repair and consequently an achievement percentage could not be determined. I was
unable to confirm the reported performance taken by alternative means. Consequently, I was unable to
determine whether any adjustments were required to the reported performance.
Indicator: No. of kms of gravel roads maintained (blading)
26. The reported measures taken to improve performance against the planned target, did not agree to the
supporting evidence provided. Based on the supporting evidence provided, non-performance during
quarter 1 to 3 was due to microeconomic factors within the municipality and the measures taken to improve
performance were not stipulated, whereas the measures to improve performance as reported in the annual
performance report related solely to macroeconomic challenges brought by the COVID-19 pandemic, a
pandemic that was only rampant during quarter 4.
Other matters
27. I draw attention to the mattes below.
Achievement of planned targets 28. Refer to the annual performance report on pages … to … for information on the achievement of planned
targets for the year. This information should be considered in the context of the material findings on the
usefulness and reliability of the reported performance information in paragraphs 24 to 26 of this report.
Adjustment of material misstatements 29. I identified material misstatements in the annual performance report submitted for auditing. These material
misstatements were in the reported performance information of KPA 1: basic services and infrastructure
development. As management subsequently corrected only some of the misstatements, I raised material
findings on reliability of the reported performance information. Those that were not corrected are reported
above.
Report on the audit of compliance with legislation Introduction and scope
30. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report
material findings on the municipality’s compliance with specific matters in key legislation. I performed
procedures to identify findings but not to gather evidence to express assurance.
31. The material findings on compliance with specific matters in key legislation are as follows:
Annual financial statements, annual performance report and annual report 32. The financial statements submitted for auditing were not prepared in all material respects in accordance
with the requirements of section 122(1) of the MFMA. Material misstatements of property, plant and
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equipment, irregular expenditure, contingent asset, statement of budget comparison with actuals,
commitments and related party disclosure identified by the auditors in the submitted financial statement
were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.
33. The oversight report adopted by the council on the 2019 annual report was not made public, as required by
section 129(3) of the MFMA.
Expenditure management 34. Money owed by the municipality was not always paid within 30 days, as required by section 65(2) (e) of the
MFMA.
35. Reasonable steps were not taken to prevent irregular expenditure amounting to R20, 5 million as disclosed
in note 48 to the annual financial statements, as required by section 62(1) (d) of the MFMA. The majority of
the irregular expenditure was caused by standardisation of salaries without appropriate approval and
supply chain management processes not followed.
36. Reasonable steps were not taken to prevent fruitless and wasteful expenditure amounting to R4, 3 million
as disclosed in note 47 to the annual financial statements, in contravention of section 62(1) (d) of the
MFMA. The majority of the disclosed fruitless and wasteful expenditure was caused by interest paid on
overdue accounts.
37. Reasonable steps were not taken to prevent unauthorised expenditure amounting to R42, 5 million, as
disclosed in note 46 to the annual financial statements, in contravention of section 62(1) (d) of the MFMA.
The majority of the unauthorised expenditure was caused by exceeding budget.
Consequence management 38. All unauthorised expenditure incurred by the municipality was not investigated to determine if any person is
liable for the expenditure, as required by section 32(2)(a) of the MFMA.
39. All irregular expenditure incurred by the municipality were not investigated to determine if any person is
liable for the expenditure, as required by section 32(2)(b) of the MFMA.
40. All fruitless and wasteful expenditure incurred by the municipality was not investigated to determine if any
person is liable for the expenditure, as required by section 32(2)(b) of the MFMA.
Procurement and contract management 41. Some of the quotations were accepted from bidders who did not submit a declaration on whether they are
employed by the state or connected to any person employed by the state, as required by SCM regulation
13(c).
42. Some of the quotations were accepted from bidders whose tax matters had not been declared by the South
African Revenue Service to be in order, in contravention of SCM regulation 43. Similar non-compliance was
also reported in the prior year.
Conditional grants 43. Performance in respect of programmes funded by the Municipal Infrastructure Grant was not evaluated
within two months after the end of the financial year, as required by section 12(5) of the Division of
Revenue Act (Act 16 of 2019).
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Asset management 44. Capital assets were disposed of without the municipal council having, in a meeting open to the public,
decided on whether the assets were still needed to provide the minimum level of basic municipal services
and considered the fair market value of the assets and the economic and community value to be received
in exchange for the assets, as required by section14 (2) (a) of the MFMA.
Other information 45. The accounting officer is responsible for the other information. The other information comprises the
information included in the annual report. The other information does not include the financial statements,
the auditor’s report and those selected key performance areas presented in the annual performance report
that have been specifically reported in this auditor’s report.
46. My opinion on the financial statements and findings on the reported performance information and
compliance with legislation do not cover the other information and I do not express an audit opinion or any
form of assurance conclusion on it.
47. In connection with my audit, my responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements and the selected key
performance areas presented in the annual performance report, or my knowledge obtained in the audit, or
otherwise appears to be materially misstated.
48. If, based on the work I have performed, I conclude that there is a material misstatement of this other
information, I am required to report that fact. I have nothing to report in this regard.
Internal control deficiencies 49. I considered internal control relevant to my audit of the financial statements, reported performance
information and compliance with applicable legislation; however, my objective was not to express any form
of assurance on it. The matters reported below are limited to the significant internal control deficiencies that
resulted in the findings on the annual performance report and the findings on compliance with legislation
included in this report.
Adequate internal controls has not been implemented over year end reporting and, management did not
adequately review,scruitnise and verify the supporting evidence for each reported target on the annual
performance report.
The audit action plan was not adequately implemented and monitored to address prior years findings as
repeated material findings were identified on compliance with the legislation.
Other reports 50. I draw attention to the following engagements conducted by various parties which had, or could have, an
impact on the matters reported in the municipality’s financial statements, reported performance information,
compliance with applicable legislation and other related matters. These reports did not form part of my
opinion on the financial statements or my findings on the reported performance information or compliance
with legislation.
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51. The President of South Africa promulgated an investigation by the Special Investigating Unit (SIU) based
on the allegation of possible procurement irregularities. This investigation was still in progress at the date of
this report.
52. An independent consultant finalised a forensic investigation on possible irregularities in the traffic
department and possible procurement irregularities. The investigation is finalised.
53. An inquiry by the Department of Cooperative Governance and Traditional Affairs (Cogta) into allegations of
impropriety and irregularities in terms of section 105 of the Municipal Systems Act. The investigation is
finalised.
54. An independent firm was appointed by Cogta to investigate various allegations into procurement processes
not followed and to investigate all personnel. The investigation is finalised.
An independent consultant firm finalised on the investigation on procurement irregularities.
East London 28 Feb 2021
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Annexure – Auditor-general’s responsibility for the auditi
1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain
professional scepticism throughout my audit of the financial statements and the procedures performed on
reported performance information for selected key performance areas and on the municipality’s compliance
with respect to the selected subject matters.
Financial statements
2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I
also:
identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that
is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations or the override of internal control
obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the municipality’s internal control
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the accounting officer
Conclude on the appropriateness of the accounting officer use of the going concern basis of accounting
in the preparation of the financial statements. I also conclude, based on the audit evidence obtained,
whether a material uncertainty exists relating to events or conditions that may cast significant doubt on
the ability of the Amahlathi Local Municipality to continue as a going concern. If I conclude that a
material uncertainty exists, I am required to draw attention in my auditor’s report to the related
disclosures in the financial statements about the material uncertainty or, if such disclosures are
inadequate, to modify my opinion on the financial statements. My conclusions are based on the
information available to me at the date of this auditor’s report. However, future events or conditions may
cause a municipality to cease operating as a going concern
evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and determine whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation
Communication with those charged with governance
3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that I identify
during my audit.
4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding
independence, and communicate all relationships and other matters that may reasonably be thought to
have a bearing on my independence and, where applicable, the actions taken to eliminate threats or the
safeguards applied.
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REPORT OF THE AUDIT COMMITTEE
Purpose
The function of the Audit Committee (hereinafter referred to as the Committee) is primarily to assist the
Amahlathi Municipality (hereinafter referred to as the Council) in discharging its duties relating to the
safeguarding of assets, the operation of adequate systems, control processes and the preparation of financial
reports and statements.
Legal / Statutory Requirements
The Committee operates in terms of Section 166 of the Municipal Finance Management Act (MFMA), Act No. 56
of 2003 and has endeavoured to comply with its responsibilities arising from those requirements. Other pieces of
legislation that regulates function of the Committee are:-
- Municipal Structures Act
- Municipal Systems Act 32 of 2000
BACKGROUND
An audit committee is an independent advisory body which must meet at least four times a year in order to
perform the following duties:
Advise the municipal council, the political office-bearers, the accounting officer and the management
staff of the municipality, or the board of directors, the accounting officer and the management staff of
the municipal entity, on matters relating to—
a) internal financial control and internal audits;
b) risk management;
c) accounting policies;
d) the adequacy, reliability and accuracy of financial reporting and information;
e) performance management;
f) effective governance;
g) compliance with this Act, the annual Division of Revenue Act and any other applicable
legislation; h) performance evaluation; and
i) Any other issues referred to it by the municipality or municipal entity;
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a. review the annual financial statements to provide the council of the municipality or, in the case
of a municipal entity, the council of the parent municipality and the board of directors of the entity, with
an authoritative and credible view of the financial position of the municipality or municipal entity, its
efficiency and effectiveness and its overall level of compliance with this Act, the annual Division of
Revenue Act and any other applicable legislation;
b. respond to the council on any issues raised by the Auditor-General in the audit report;
c. carry out such investigations into the financial affairs of the municipality or municipal entity as
the council of the municipality, or in the case of a municipal entity, the council of the parent municipality
or the board of directors of the entity, may request; and
d. Perform such other functions as may be prescribed.
Role and Responsibility of the Audit Committee
The function of the Audit Committee is primarily to assist the Amahlathi Municipality (hereinafter referred to as
the Council) in discharging its duties relating to the safeguarding of assets, the operation of adequate systems,
control processes, the preparation of financial reports and statements and ensuring good governance.
Audit Committee Members and Attendance
The audit committee consists of the members listed hereunder and should meet 4 times per annum as per its
approved terms of reference. In terms of the Audit Committee Charter, the committee should consist of a minimum
of 3 members. Ms L. Smith was appointed as the Chairperson of the Audit Committee. The audit committee held
3 ordinary meetings and 1 special meeting during the year under review.
Name of Member No of ordinary meetings attended
Ms. L. Smith (Chairperson) 4
Mr. M. Mafani 4
Mr. M Mdani 4
Dates of Audit Committee Meetings
09 September 2019
22 November 2019
28 May 2020
09 June 2020
The ordinary audit committee meetings are also attended by the Municipal Manager, Section 56 Managers,
internal and external auditors and other relevant stakeholders.
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The effectiveness of internal controls
The audit committee has assessed the internal controls for the municipality through the Internal Audit unit on
a quarterly basis. Below there are some of the findings that have been identified regarding the internal
controls for the municipality.
REVIEW OF THE ANNUAL FINANCIAL STATEMENTS
Annual Financial Statements were reviewed by both the Internal Audit Unit and the Audit Committee. There were
no major issues that were found on the draft Financial Statement. The following were some of the findings that
were identified:
• Differences between the prior year amounts and the restated amounts;
• Differences between the Annual Financial Statements and the Trial Balance; and
• Differences between the notes of the Annual Financial Statements and the face of the
Statement of the Financial Position and the Statement of the Financial Performance.
PERFORMANCE MANAGEMENT
It was noted that the municipality has not fully implemented the Performance Management System indicating the
process of monitoring, measuring and reviewing performance on a quarterly basis. 2019/20 Annual Performance
information report was reviewed and the committee noted that information was prepared appropriately with
regressed performance rate of 46.53% when compared to the previous financial year (2018/19). Service delivery,
local economic development and municipal transformation key performance areas had poor performance results.
During the 2020/21 mid-term review the performance of the municipality is currently sitting at 63.94%. Management
were advised to address recommendations from internal audit for compliance, reliability and usefulness before the
report is escalated to Council for adoption.
The municipality has been adversely affected by the community protests that have been ongoing since the 16
October 2018. This has caused inefficiencies in the operations of the municipality.
FOLLOW-UP ON THE INTERNAL AUDIT REPORTS ISSUED
It was noted that the municipality has implemented satisfactory recommendations from previous internal audit
reports. Management needs to monitor the implementation of audit action plans for continuous improvement in
the control environment. Robust monitoring of audit action plans needs to take place particularly on high risks
areas that were identified on fleet management. Furthermore control mechanisms need to be instituted and
extensive investigation need to be conducted on the misuse of fuel.
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AUDITOR GENERAL REPORT
The municipality has not addressed audit findings relating to the Office of the Auditor General as only 15% of the
findings were implemented and in-progress at 69%. Improvement was noted as compared to previous financial
year. This has affected the municipality negatively as there might be repeat findings that will be raised by the Office
of the Auditor General.
The quality of In-year management and monthly/quarterly reports
The Municipal Manager submitted reports during the year under review with regard to financial and non-financial
performance. It was noted that the municipality is adversely affected financially as the result majority of the targets
relating to service delivery were not met.
Developed process plans for both IDP and Budget have not been adhered to, which resulted in non-compliance
on the implementation of the plan.
Internal Audit
The Internal Audit Unit managed to assess control environment during the financial. 100% planned audits were
executed completely and the reports were discussed with management. There was a delay in developing risk
based internal audit plan for 2020/21 financial year. During 2020/21 mid-term the following emerging risks were
reported and management need to ensure that risk mitigation plans developed
Auditor General South Africa
It must be noted that the municipality needs to put more controls in terms of implementing and monitoring the AG
and internal audit action plans including risk mitigation plans. There is a sound and professional relationship
between the Audit Committee and the Office of the Auditor General so as to ensure compliance.
SIGNED BY:
_______________________________________
Chairperson of the Audit Committee
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CHAPTER 7 APPENDICES
APPENDIX A: COUNCILLORS, COMMITTEES ALLOCATED AND COUNCIL ATTENDANCE Councillor's Council Meetings Attendance: 2019/ 2020 Financial Year July 2019 - June 2020
Council Members No. of Meeting
s Attende
d
Percentage
Council Meeting
s Attenda
nce
Percentage Apologies for
non-attendance
Percentage Absenteeis
m
30-Jul-19
30-Aug-
19
10-Sep-19
18-Sep-19
25-Sep-19
10-Oct-19
30-Oct-19 07-Nov-19
13-Dec-19
18-Dec-19
20-Mar-20
26-03-2020
29-May-
20
Meetings
% % % 1. Cllr. M. Mjikelo P P P P P P P P P P P P P 13 100% 0% 0% 2. Cllr. A. Hobo P P P P P P P P P P P P P 13 100% 0% 0% 3. Cllr. D. Mzili P P P P P P P P 8 100% 0% 0% 4. Cllr. N Busika P APOL
OGY ABSENT
P P P P P P ABSENT
ABSENT
P P 13 69% 8% 23%
5. Cllr. N. Monti P P P P P P APOLOGY
P P P P P APOLOGY
13 85% 15%
0% 6. Cllr. N. Manyika P P ABSEN
T P ABSEN
T P APOLOG
Y ABSENT
P P APOLOGY
P APOLOGY
13 54% 23%
23% 7. Cllr. P. Qaba APOL
OGY APOLOGY
APOLOGY
APOLOGY
ABSENT
P APOLOGY
P P P ABSENT
P APOLOGY
13 39% 46%
15% 8. Cllr. N.Pose P P ABSEN
T P P P P P P P ABSEN
T APOLOGY
ABSENT
13 69% 8%
23% 9. Cllr. N. C. Nongqayi
P P APOLOGY
P P P P P P ABSENT
P P P 13 85% 8%
7% 10. Cllr. N. Mlahleki P P P P P P APOLOG
Y P P P APOLO
GY P ABSE
NT 13 77% 15%
8% 11. Cllr. D.S. Gxekwa
P ABSENT
P APOLOGY
P P P APOLOGY
P ABSENT
APOLOGY
P P 13 62% 15% 23%
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12. Cllr. M, Ngcofe ABSENT
P ABSENT
ABSENT
APOLOGY
P ABSENT ABSENT
P ABSENT
ABSENT
ABSENT
ABSENT
13 23% 8% 69%
13. Cllr. X. Mngxaso APOLOGY
P ABSENT
APOLOGY
ABSENT
P ABSENT APOLOGY
P ABSENT
ABSENT
ABSENT
ABSENT
13 23% 23% 54%
14. Cllr. X.M. Tokwe P P ABSENT
P P P P P ABSENT
P ABSENT
APOLOGY
P 13 69% 8% 23%
15. Cllr. N. Klaas P P P P P P P 7 100% 0% 0% 16. Cllr. N. Jikazayo P APOL
OGY ABSENT
ABSENT
P P P P P P ABSENT
P P 13 69% 23% 8%
17. Cllr. X. Nqata P P P P P P P P P P P P P 13 100% 0% 0% 18. Cllr. M. Nqini P P P P P P P P P P P P P 13 100% 0%
0% 19. Cllr. V. W. Tshaka
P P P P P P P P P P P P P 13 100% 0%
0% 20. Cllr. S. G. Venkile
ABSENT
APOLOGY
APOLOGY
P ABSENT
ABSENT
P ABSENT
ABSENT
APOLOGY
P APOLOGY
P 13 31% 31% 38%
21. Cllr. R. T. Desi P P P P P P P P P P P APOLOGY
P 13 92% 8% 0%
22. Cllr. S. Malawu APOLOGY
APOLOGY
APOLOGY
APOLOGY
APOLOGY
P P P P P P 11 55% 45% 0%
23. Cllr. P. G. Noxeke
ABSENT
P P P P P P P P P P P P 13 92% 0% 8%
24. Cllr. N. A. Mtati ABSENT
P ABSENT
P P P P APOLOGY
ABSENT
P P P P 13 69% 8% 23%
25. Cllr. T. Balindlela P APOLOGY
P P P P P P P P P APOLOGY
P 13 84% 16% 0%
26. Cllr. R.B. Pickering
P P P P P P P P P P P ABSENT
APOLOGY
13 84% 8% 8%
27. Cllr. N. Ngxakangxaka
P P P P P P P 0 P P P P P 13 100% 0% 0%
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Councillor's Council Meetings Attendance: 2019/ 2020 Financial Year July 2019 - June 2020
Council Members Percentage
Council Meeting
s Attenda
nce
Percentage Apologies for
non-attendance
Percentage Absenteeis
m 30-
Jul-19 30-
Aug-19
10-Sep-19
18-Sep-19
25-Sep-19
10-Oct-19
30-Oct-19 07-Nov-19
13-Dec-19
18-Dec-19
20-Mar-20
No. of Meeting
s
% % % 28. Cllr. G. D. Mxosa P APOL
OGY P P P P ABSENT APOLO
GY P P P P APOL
OGY 13 69% 23%
8% 29. Cllr. C.T. Ngxingolo
P APOLOGY
APOLOGY
APOLOGY
APOLOGY
P ABSENT P P P P P P 13 61% 31% 8%
30. Cllr. P. Ntwanambi
P P P P P ABSENT
ABSENT P P ABSENT
ABSENT
ABSENT
ABSENT
13 54% 0% 46%
31. Traditional Leader: Mr. K. Sandile
P P P P P P P P P P P P P 13 100% 0%
0% 32. Traditional Leader: Mr. Z. Ngudle
ABSENT
P P p P P P ABSENT
ABSENT
ABSENT
ABSENT
P P 13 62% 0%
38% 33. Traditional Leader: Mr S.N. Mdledle
P P P p P P P P P P ABSENT
P P 13 92% 0%
8% 34. Traditional Leader: Mr. A. T. Daka
P P P p P P P P P P P P P 13 100% 0%
0% 35. Traditional Leader: Mrs . N.G. Mekuto
P P P p P P P P P P P P P 13 100% 0%
0% 36. Traditional Leader: Mr. X. Zake
P P P p P P P ABSENT
P P P P P 13 92% 0%
8%
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APPENDIX B: COUNCIL COMMITTEES (Other than Mayoral/ Executive Committee) and Purposes of the Committees
Municipal Committees Purpose of Committee
Budget and Treasury The purpose of the Budget and Treasury Standing Committee as a Section 79 Committee of Council is to:-
Provide Political Leadership by being responsible for Policy outcomes, oversight and holds the Chief Financial Officer accountable for
Performance by regular and consistent reporting to Council through the Committee.
Service Delivery Report on Progress and Challenges on Capital Projects.
Report on work done as per the Maintenance programme of Roads, also alerting the committee of the repairs done on Machinery
That might have caused delays in the Programme.
Challenges in the Department in General.
Amount of Jobs created.
The response time in repairing any complaints from the Community.
Report on Budget Expenditure.
Development and Planning To create a conducive environment for business to invest at Amahlathi area.
To encourage business to create jobs in order to reduce unemployment.
To promote SMME's and co-operatives within Amahlathi.
To promote tourism as a vehicle for Job creation within Amahlathi.
To support emerging farmers that are within Amahlathi and link them with business in order to sell their products.
Strategic Services Empowerment is meant to create a conducive Environment for designated groups to be allowed equal opportunities
To ensure that everyone has free access to government benefits irrespective of any kind of disability.
To ensure that Gender is taken care to all workplaces.
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Municipal Committees Purpose of Committee
To restore Human dignity to previously disadvantage groups
To capacitate and empower the community to all matters of government
To conduct awareness campaigns for designated groups about their rights.
Community Services To provide accessible, affordable, equitable and sustainable service as well as a healthy environment to residents and business operating in the Amahlathi Local Municipality.
To contribute towards a safe and secure environment.
To promote a clean and healthy environment.
To promote a culture of reading and learning.
To ensure that Public Amenities are improved and well managed.
Corporate Services To oversee the proper, efficient and effective operations of Human Resources and Administration Department.
To ensure that Policy Formulation and recommendation from both Sections are in line with vision and mission of the municipality as well as
Compliant with National and Provincial Legislation.
To represent employer component in Provincial Institution Cluster of SALGA, Amathole District Municipality
To champion good working relations between the employer and employee component of the municipality.
To ensure that Departmental goals and Departmental Budget are aligned.
To devise programs for imparting of skills to Stakeholders within the municipal area.
To oversee that proper employment procedures are undertaken without disadvantaging anyone.
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APPENDIX C: THIRD TIER STRUCTURE
Third Tier Structure
Directorate Director/Manager (State title and name)
BUDGET AND TREASURY OFFICE MR L MANJINGOLO
CORPORATE SERVICES DEPARTMENT MRS. N. PLAATJIE – ACTING DIRECTOR (SECONDED AS AT MAY 2020 )
ENGINEERING SERVICES DEPARTMENT MR. CEKISO – ACTING DIRECTOR (SECONDED AS AT MAY 2020)
COMMUNITY SERVICES DEPARTMENT MRS P DIBELA
PLANNING AND DEVELOPMENT DEPARTMENT MR M MAKUNGA
STRATEGIC SERVICE DEPARTMENT VACANT
Use as a spill-over schedule if top 3 tiers cannot be accommodated in chapter 2 (T2.2.2). T C
Amahlathi Local Municipality –2019/20 Annual Report
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APPENDIX D: FUNCTIONS OF MUNICIPALITY
MUNICIPAL FUNCTIONS Function Applicable to Municipality (Yes / No)*
Constitution Schedule 4, Part B functions:
Air pollution Yes
Building regulations Yes
Child care facilities Yes
Electricity and gas reticulation Yes
Firefighting services Yes
Local tourism Yes
Municipal airports No
Municipal planning Yes
Municipal health services No
Municipal public transport No
Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law
Yes
Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto
No
Storm water management systems in built-up areas Yes
Trading regulations Yes
Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems
No
Beaches and amusement facilities Yes
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
Local amenities Yes
Local sport facilities Yes
Markets Yes
Municipal abattoirs Yes
Municipal parks and recreation Yes
Municipal roads Yes
Noise pollution Yes
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
Amahlathi Local Municipality –2019/20 Annual Report
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APPENDIX E: WARD REPORTING
Ward Name (Number)
Name of Ward Councillor and elected Ward Committees
Committee established (Yes /NO)
Number of Committee meetings held during the year
Number of quarterly reports submitted to the Speaker on time
Number of quarterly public meeting held during year
WARD 1 Cllr D.Mzili 1.Lindela Manyakanya 2.Nokrisimesi Mbande 3.Nozolile Mfuleni 4.Lulama Kwankwa 5.Cynthia Vane 6.Phumla Bobo 7.Nokuthula Madlokazi 8.Thulani Mlarsheni 9.Vuyokazi Bikitsha 10.Vuyisile Mandla
YES 6 1 1
WARD 2 Cllr D.S.Gxekwa 1.Veliswa Mhluzi 2.Vuyelwa Nkovu 3.Siyabulela Mpayipheli 4.Siseko Cawa 5. 6.Cebo Madlokazi 7.Kungeka Sixholo 8.Ndodomzi Manyakanyaka 9.Mongameli Rode 10.Nomataru Mhlauli
YES 4 0 1
WARD 3 Cllr M.Ngcofe 1.Sikelelwa Tamba 2.Alfred Veto 3.Phiweka Socishe 4.Thozama Madlokazi 5.Zimasa Mthi 6.Akhona Tweni 7.Mfuyo Jumba 8.Nkosabantu Busika 9.Fundiswa Luthuli 10.Makhi Manentsa
YES 2 0 1
WARD 4 Cllr M Mjikelo 1.Nocwaka Nonyongo 2.Portia Mbesi Nancy Cofa 4. 5.Ntombizakhe Nkwentsha 6.Veronica Vellem
YES 6 1 3
Amahlathi Local Municipality –2019/20 Annual Report
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7.Ali Sautana 8.Thandiswa Tshali 9.Nonzuzo Mahlathi 10Nonkanyiso Charlie
WARD 5 Cllr Brukhwe 1.Sakhumzi Lubengu 2.Ntombizanele Nono 3.Nomakorinte Ngcaku 4.Thobigunya Kolobile 5.Vukaphi Mpumelelo 6.Neliswa Nyathi 7.Vivian Sajini 8.Phindiwe Blom
YES 3 0 0
WARD 6 Cllr Tokhwe 1.Olwethu Booi 2.Nosango Manoni 3.Luyanda Sindi 4.Hussein Wayne Mopp 5.Nontekelelelo Xiniwe 6.Siphokazi Funani 7.Gudiswa Matomela 8.Nosiphiwo Nogqala 9. 10.Veliswa Mondeleki
YES 5 0 2
WARD 7 Cllr Jikazayo 1.Sihlalo Magibizela 2.Phatheka Nojoko 3.Nontuthuzelo Damane 4.Nozukile Felem 5.Nosithile Momeni 6.Nwabisa Mbelwana 7.Nokona Bacela 8.Norah Toyiya 9.Kholiwe Sindaphi
YES 7 0 1
WARD 8 Cllr X.Nqatha 1.Lulama Kama 2. 3.Lee Fletcher 4.X.Mbiko 5.Mthuthuzeli Mkefu 6.Bulelwa Pinana 7.Busisa Xongwana 8.Nombuzo Bhanethi 9.Wonke Ntlombe 10.Nosiphiwo
YES 9 1 2
WARD 9 Cllr M.Nqini 1.Vuyo Mdutywa 2.Athini Somana 3.Zukisani Tancu
YES 10 1 2
Amahlathi Local Municipality –2019/20 Annual Report
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4.Khanya Sotyantsi 5.Msa Madliwa 6.Athule Melani 7.Thandeka Ntsasa 8.Zoleka Mbekeni 9.Zameka Sotyantsi 10.Nobekaphi Wawa
WARD 10 Cllr V.Tshaka 1.N.Maseti 2. 3.Ntombizakhe Jaza 4.Bukelwa Soyi 5.Buntu Mpondo 6.Unathi Potose 7.Ndileka Magwaxaza 8.Nomfanelo Fikilane 9.Ntombizanele Sodzeme 10.Cebokazi Nxawe
YES 4 0 1
WARD 11 Cllr S.Venkile 1.Sizeka Mqwebedu 2.Sebenzile Barney 3.Nokwanda Sinina 4.Lusanda Habule 5.Andile Ngwalangwala 6.Nomsebenzi Lantu 7.Nontyantyambo Charles 8.Mzwamabhele Norushe 9.Sindiswa Lunge 10.Bukiwe Madikane
YES 6 0 1
WARD 12 Cllr R.Desi 1.Thandeka Blom 2.Thumeka Nobavu 3.Nomvuyo Ntsudushe 4.Cebo Kotsobe 5.Phelisa Zipindile 6.Fanelwa Ngese 7.Luvuyo Mtila 8.Nosicelo Tishala 9.Lote Nosipiwo 10.Zukiswa Komani
YES 9 0 2
WARD 13 Cllr S.Malawu 1.Nomandithini Sotyantsi 2. 3. 4.Tshona Caswell 5.Siyabulela Krishi 6.Zingaphi Sawuti
YES 9 0 2
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7.Vuyelwa Nyamakazi 8.Vuyo Jakuja 9.Veliswa Lamana 10.
WARD 14 Cllr D.Noxeke 1.Neliswa Mbulawa 2.Lina Busika 3.Victoria Poni 4.Zukile Jaqula 5.Yoliswa Mapukatha 6.Nozuko Mbiko 7.Mlingiseleli Cetywayo 8.Mziyanda Mtsewu 9.Bulelani Ndoloshe 10.Nomsa Jeremiah
YES 5 0 1
WARD 15 CLLR Mtati 1.Vulindlela Mvandaba 2.Zoliswa Kweleta 3.Mlandeli Mbende 4.Themba Mdedetyana 5.Mbulelo Ndinisa 6.Vusumzi Foslara 7.Sintombi Frans 8.Mzikayise Dyosi 9.Thembisa Nkangala 10.Yolanda Mampangashe
YES 10 1 2
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APPENDIX F: MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS
ITEM RESPONSIBLE
PROGRESS
Register of Fruitless & Wasteful Expenditure
• It was resolved that going forward the MM should forward the MMs Status quo report to
the AC Members prior the AC sittings so that the AC can be able to engage on matters
raised on MMs report thoroughly.
• It was also resolved that Audit Committee will include the report on Standardisation as
reported by MM on their report to the Council.
Municipal Manager
Budget vs Actual Expenditure
It was indicated that Revenue Enhancement Strategy was developed by BTO however it
could not be work-shopped to Councillors on the 31st March 2020 due to National
Lockdown.
Chief Financial Officer
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ITEM RESPONSIBLE
PROGRESS
Fraud Awareness Campaigns
It was resolved that Internal Audit Unit should request for IT’s assistance to conduct the
long overdue Fraud Awareness Workshop that was supposed to be conducted for EXCO
Members.
Internal Audit Unit Fraud Awareness for EXCO Members could
not be held due to number of commitments
on the EXCO side.
Municipal Re-engineering
On 22nd November 2019, it was indicated that Corporate Services Department needs to
present the solution regarding unavailability of job descriptions and the issue of
Institutional organogram.
COGTA has assisted the municipality in conducting an organisational analysis, report will
be presented to Management and the Council.
Director Corporate Services
Fleet Management Report
• On the 22nd November 2019, it was resolved that Director Corporate Services should
provide detailed actions to address the findings that were raised on the Fleet
Management Audit Report and present those actions in the next AC Meeting due to the
fact that the findings that were raised on the report were of serious nature and huge
financial implications.
• MM indicated that she will make a follow up on the matter.
Director Corporate Services Action plan was prepared and included on
the next AC Pack for discussions.
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ITEM RESPONSIBLE
PROGRESS
Supply Chain Management Report
It was resolved that SCM should develop action plans on findings raised on the report and
these actions will be discussed in the next AC Meeting.
Chief Financial Officer Action plan was prepared and included on
the next AC Pack for discussions.
Municipal Commonage
On the 22nd November 2019 it was resolved that the Director Community Services should
write a letter to Provincial Treasury and Environmental Affairs and seek advice regarding
Municipal Commonages.
On the 28th May 2020 an update was given by MM indicating that letter was drafted and
submitted, site visits were conducted.
Director Community Services
Draft Tariff Structure was developed and
sent for adoption by Council on the
29/06/2020 but meeting could not sit as
scheduled
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APPENDIX G: DISCLOSURES OF FINANCIAL INTERESTS
Disclosures of Financial Interests
Period 1 July 2019 to 30 June of Year 2020
Position Name Description of Financial interests* (Nil / Or details)
(Executive) Mayor Cllr A. Hobo Nil
Member of EXCO Cllr. N Pose Nil
Cllr. Kato Manyika Nil
Cllr. Mzili Nil
Cllr. Monti Nil
Cllr. Mjikelo Nil
Cllr. Balindlela Nil
Councillor
Municipal Manager I Sikhulu-Nqwena Nil
Chief Financial Officer L Manjingolo Nil
Directors X Mntonintshi Nil
N Mahlahi-Nkuhlu Nil
O Makhunga Nil
P Dibela Nil
Other S57 Officials
* Financial intersests to be disclosed even if they incurred for only part of the year. See MBRR SA34A T J
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APPENDIX H: REVENUE COLLECTION PERFORMANCE BY VOTE
Revenue Collection Performance by Vote
R' 000
Vote Description
Year 2018/19
Current: Year 2019/20 Year 2018/19 Variance
Actual Original Budget
Adj Budget Actual Original
Budget
Adj Budget
Vote 1 - Executive & Council 98 259 109 372 109 751 103 660 -6% -6%
Vote 2 - Budget & Treasury 42 015 20 200 60 161 74 823 73% 20%
Vote 3 - Corporate Services – – – 0% 0%
Vote 4 - Planning & Development 4 212 40 256 40 189 13 464 -199% -198%
Vote 5 - Health – 0% 0% Vote 6 - Community & Social
Services 13 206 2 010 1 634 1 482 -36% -10%
Vote 7 - Housing 476 244 8 0% 0%
Vote 8 - Public Safety 35 13 13 – -100% -100%
Vote 9 - Sport & Recreation – – – -100% 0%
Vote 10 - Waste Management 14 260 11 389 12 341 8 832 -29% -40%
Vote 11 - Road Transport 2 739 6 211 5 175 4 922 -26% -5%
Vote 12 - Electricity 19 927 50 661 35 161 29 340 -73% -20%
Vote 13 - Environmental Protection 0 482 64 – #DIV/
0! #DIV/0!
Total Revenue by Vote 194 653 241 071 264 733 236 533
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A3 T K.1
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APPENDIX I: LONG TERM CONTRACTS
Long Term Contracts (20 Largest Contracts Entered into during Year 2019/20
R' 000
Name of Service Provider (Entity or Municipal
Department)
Description of Services Rendered by the Service Provider
Start Date of Contract
Expiry date of Contract
Project manager
Contract Value
None
T H.1
Public Private Partnerships Entered into during Year 2019/20
R' 000
Name and Description of Project
Name of Partner(s) Initiation Date Expiry date Project manager
Value 2018/19
None
T H.2
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APPENDIX J: MUNICIPAL ENTITY
Municipal Entity/Service Provider Performance Schedule Name of Entity & Purpose
(a) Service Indicators
Year 0 Year 1 Year 2 Year 3
(b) Service Targets
Target Actual Target Actual Target
*Previous
Year
*Previous Year
*Current Year
*Current Year
*Current Year
*Following Year
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)
N/A
Note: This statement should include no more than the top four priority 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 must be fundable within approved budget provision. In column (ii) set out the Service Indicator (In bold italics) then the Service Target underneath (not in bold - standard type face) to denote the difference. T I
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APPENDIX K: REVENUE COLLECTION PERFORMANCE BY SOURCE
Revenue Collection Performance by Source
R '000
Description
Year 2018/19 Year 2019/20 Year 2018/19
Variance
Actual Original Budget
Adjustments Budget
Actual Original Budget
Adj Budget
Property rates 17 885 17 659 17 659 20 209 13% 13%
Property rates - penalties & collection charges – – – –
Service Charges - electricity revenue 26 514 45 161 35 161 26 368
-71% -33%
Service Charges - water revenue – – – – 0% 0%
Service Charges - sanitation revenue – – – –
0% 0%
Service Charges - refuse revenue 11 433 10 000 10 000 12 052
17% 17%
Service Charges - other 261 – – 76 0% 0%
Rentals of facilities and equipment 486 1 112 251 58
-1806% -330%
Interest earned - external investments 965 1 894 1 894 1 434
-32% -32%
Interest earned - outstanding debtors 5 676 2 777 2 777 7 116
61% 61%
Dividends received – – – – 0% 0%
Fines 13 506 106 16 -3142% -581%
Licences and permits 1 170 2 749 2 749 1 183 0% -132%
Agency services 852 1 668 1 000 1 758 5% 43%
Transfers recognised - operational 101 004 112 541 113 993 111 626
-1% -2%
Other revenue 28 394 1 371 41 010 54 634 97% 25%
Gains on disposal of PPE – – – – 0% 0%
Total Revenue (excluding capital transfers and contributions)
194 653 197 439 226 601 236 533 16.53% 4.20%
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A4. T K.2
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APPENDIX L: CONDITIONAL GRANTS EXCLUDING MIG
Conditional Grants: excluding MIG
R' 000
Details
Budget Adjustments Budget
Actual Variance Major conditions applied by donor (continue below
if necessary)
Budget Adj Budget
Neighbourhood Development Partnership Grant
Public Transport Infrastructure and Systems Grant
Other Specify:
FMG Grant 2 235 2 235 2 235 0% 0% Yes
MSIG Grant – – – 0% 0% Yes
EPWP Grant 1 236 1 236 887 -39% -39% Yes
Equitable Share 105 863 105 863 105 863 0% 0% Yes
PMU 5% 2 007 2 007 1 123 -0.79 -0.79 Yes
Disaster Relief Grant – 596 318 1.00 -0.88
Provincial
Library Grant 1 200 1 200 1 200 0% 0% Yes
Waste Grant – 356 – 0% 0% Yes
Total 112 541 113 493 111 626
* This includes Neighbourhood Development Partnership Grant, Public Transport Infrastructure and Systems Grant and any other grant excluding Municipal Infrastructure Grant (MIG) which is dealt with in the main report, see T 5.8.3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Obtain a list of grants from national and provincial government.
T L
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APPENDIX M: CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME
Capital Expenditure - New Assets Programme*
R '000
Description Year 2019/20 Planned Capital expenditure
Original Budget
Adjustment Budget
Actual Expenditure
FY + 2019/20
FY + 2020/21
FY + 2021/22
Capital expenditure by Asset Class
Infrastructure - Total 23 132
20 629
8 096
–
–
–
Infrastructure: Road transport - Total 14 832
20 629
7 115
–
–
–
Roads, Pavements & Bridges 14 832
20 629
7 115
Storm water
Infrastructure: Electricity - Total 8 300
–
981
–
–
–
Generation
Transmission & Reticulation 5 500
–
981
Street Lighting 2 800
– –
Infrastructure: Water - Total –
– –
–
–
–
Dams & Reservoirs
Water purification
Reticulation
Infrastructure: Sanitation - Total – –
–
–
–
Reticulation
Sewerage purification
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Infrastructure: Other - Total – –
–
–
–
Waste Management
Transportation
Gas
Other
Community - Total 20 500
17 503
5 202
–
–
–
Parks & gardens
Sports fields & stadia 12 000
12 000
3 805
Swimming pools
Community halls 2 500
2 500
797
Libraries
Recreational facilities
Fire, safety & emergency 3 000
2 403
60
Security and policing
Buses
Clinics
Museums & Art Galleries
Cemeteries 3 000
– –
Social rental housing
Other –
600
540
Table continued next page
Table continued from previous page
Capital Expenditure - New Assets Programme*
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R '000
Description Year 2017/18 Planned Capital expenditure
Original Budget
Adjustment Budget
Actual Expenditure
FY + 2018/19
FY + 2019/20
FY + 2020/21
Capital expenditure by Asset Class
Heritage assets - Total –
– –
–
–
–
Buildings
Other
Investment properties - Total –
5 000 –
–
–
–
Housing development
Other –
5 000 –
Other assets 100
800
351
–
–
–
General vehicles
Specialised vehicles
Plant & equipment
Computers - hardware/equipment –
500
129
Furniture and other office equipment
Abattoirs
Markets
Civic Land and Buildings
Other Buildings
Other Land Surplus Assets - (Investment or
Inventory)
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Other 100
300
223
–
–
Agricultural assets –
– –
–
–
–
List sub-class
Biological assets – –
–
–
–
List sub-class
Intangibles –
– –
–
–
–
Computers - software & programming
Other (list sub-class)
Total Capital Expenditure on new assets 43 732
43 932
13 649
–
–
–
Specialised vehicles –
– –
–
–
–
Refuse –
–
–
Fire
Conservancy
Ambulances
* Note: Information for this table may be sourced from MBRR (2009: Table SA34a) T M.1
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Capital Expenditure - Upgrade/Renewal Programme*
R '000
Description
Year 2017/18 Planned Capital expenditure
Original Budget
Adjustment Budget
Actual Expenditure
FY + 2018/19
FY + 2019/20
FY + 2020/21
Capital expenditure by Asset Class
Infrastructure - Total –
– –
–
–
–
Infrastructure: Road transport -Total –
– –
–
–
–
Roads, Pavements & Bridges
Storm water
Infrastructure: Electricity - Total –
– –
–
–
–
Generation – –
–
–
–
Transmission & Reticulation
Street Lighting
Infrastructure: Water - Total –
– –
–
–
–
Dams & Reservoirs
Water purification
Reticulation
Infrastructure: Sanitation - Total – –
–
–
–
Reticulation
Sewerage purification
Infrastructure: Other - Total –
– –
–
–
–
Waste Management
Transportation
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Gas
Other
Community –
– –
–
–
–
Parks & gardens
Sports fields & stadia –
– –
–
–
–
Swimming pools –
– –
–
–
–
Community halls –
– –
–
–
–
Libraries –
– –
–
–
–
Recreational facilities –
– –
–
–
–
Fire, safety & emergency –
– –
–
–
–
Security and policing –
– –
–
–
–
Buses –
– –
–
–
–
Clinics –
– –
–
–
–
Museums & Art Galleries –
– –
–
–
–
Cemeteries –
– –
–
–
–
Social rental housing –
– –
–
–
–
Other –
– –
–
–
–
–
– –
Heritage assets –
– –
–
–
–
Buildings
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Other
Table continued next page
Table continued from previous page
Capital Expenditure - Upgrade/Renewal Programme*
R '000
Description
Year 2017/18 Planned Capital expenditure
Original Budget
Adjustment Budget
Actual Expenditure
FY + 2018/19
FY + 2019/20
FY + 2020/21
Capital expenditure by Asset Class
Investment properties –
– –
–
–
–
Housing development
Other
Other assets –
– –
–
–
–
General vehicles
Specialised vehicles
Plant & equipment
Computers - hardware/equipment
Furniture and other office equipment
Abattoirs
Markets
Civic Land and Buildings
Other Buildings
Other Land Surplus Assets - (Investment or
Inventory)
Other –
–
–
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Agricultural assets –
– –
–
–
–
List sub-class
Biological assets –
– –
–
–
–
List sub-class
Intangibles –
– –
–
–
–
Computers - software & programming
Other (list sub-class)
Total Capital Expenditure on renewal of existing assets
–
– –
–
–
–
Specialised vehicles – –
–
–
–
Refuse
Fire
Conservancy
Ambulances
* Note: Information for this table may be sourced from MBRR (2009: Table SA34b) T M.2
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APPENDIX N: CAPITAL PROGRAMME
Capital Programme by Project: Year 2019/20
R' 000
Capital Project Original Budget Adjustment Budget
Actual Variance (Act - Adj) %
Variance (Act - OB) %
Executive & Council
Buildings – 5 000 –
Budget & Treasury
Other Assets – – –
Corporate Services
Other Assets 100 600 154
Planning & Development
Other Assets – – – 0% 0%
MIG Projects 38 132 38 132 12 317 -210% -210%
Community & Social Services
Other Assets – – –
Housing
Other Assets – – –
Public Safety
Other Assets – – –
Sports & Recreation - Parks & Gardens
Other Assets – – –
Refuse
Other Assets – – –
Road Transport – 200 198
Other Assets
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Electricity
Upgrade Electricity Infrastructure 5 500 – 981 100% -461%
Environmental Protection
Other Assets – – –
43 732 43 932 13 649
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APPENDIX O: Capital Programme by Project by Ward: Year 18/19
Capital Programme by Project by Ward: Year 19/19
R' 000
Capital Project Ward(s) affected Works completed (Yes/No)
Capital Programme by Project by Ward: Year 19/20 Gubevu 12
In progress
Border Post 8 In progress
Sophumelela 1 In progress
Keiskammahoek paving 1 In progress
Keiskammahoek Fire Station 1 In progress
Capital Programme by Project by Ward: Year 18/19 ETHEMBENI INTERNAL ROADS PH 3 7 Not Complete
KEI ROAD INTERNAL ROADS 8 Practical Complete
NOTHENGA INTERNAL ROADS 12 Complete
RHAWINI INTERNAL ROADS 5 Complete
LANGDRAI INTERNAL ROADS 4 Complete
ZINGCUKA INTERNAL ROADS 1 Complete
RABHULA INTERNAL ROADS 3 Complete
GXULU INTERNAL ROADS 1 In progress
CATA INTERNAL ROADS 2 In progress
KHAYELITSHA INTERNAL ROADS 8 In progress
LOWER XHOLORHA SURFACING 13 In progress
MLUNGISI SURFACING 14 In progress
Water
"Project A"
"Project B"
Sanitation/Sewerage
Electricity
AMAHLAHI HIGHMAST LIGHTS 1 and 5 Complete
BUSHPIG UPGRADE 13 In progress
Housing
Refuse removal
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Storm water
N/A
Economic development
Sports, Arts & Culture
MLUNGISI SPORTSFIELD PH1 15 In progress
Environment
Health
Safety and Security
ICT and Other
T O
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APPENDIX P: Declaration of Loans and Grants made by the municipality
Declaration of Loans and Grants made by the municipality: Year 2019/20 All Organisation or Person in receipt of
Loans */Grants* provided by the
municipality
Nature of project Conditions attached to
funding
Value Year 0 R' 000
Total Amount committed over
previous and future years
None
* Loans/Grants - whether in cash or in kind T R
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APPENDIX Q: Service Delivery Backlog experienced by the community where
another sphere of government is responsible for service provision
Services by Sector Departments Services Implemented/Provided Service Backlogs
Access to Sanitation 93% 5,9%
Access to Water 89.7% 10.3%
Electricity 85.9% 10,3% (New extensions)
Housing 459 3 172
Refuse Removal 30,8% 69,2%
Roads 18% 82%
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ANNEXURE R: COGTA KEY PERFORMANCE INDICATORS
RE: REQUEST FOR THE CONSIDERATION OF KEY PERFORMANCE INDICATORS
IN THE ANNUAL REPORT FOR 2019//20 FINANCIAL YEAR
The following is the list of indicators that were agreed upon and on how the performance information should be
populated:-
CHAPTER: ORGANISATIONAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT –KPA 1
Annual performance as per key performance indicators in municipal transformation and organizational
development
Indicator name Total number of
people (planned
for) during the
year under
review
Achievement
level during
the year
under review
Achievement
percentage during
the year
Comments on the
gap
1 Vacancy rate for all
approved and
budgeted posts;
0 0 0 There were no
positions advertised
as there were no
planning for the
current year
2 Percentage of
appointment in
strategic positions
(Municipal Manager
and Section 57
Managers)
6 2 33.33% The two directors
have resigned and we
are in a process of
filling the positions
3 Percentage of
Section 57 Managers
including Municipal
Managers who
attended at least 1
skill development
training course within
the FY
0 0
4 Percentage of
Managers in
Technical Services
0 0 0
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with a professional
qualification
6 Level of effectiveness
of PMS in the LM –
(LM to report)
In effective because employees do not comply, Not signing the accountability
agreement and no reviews done.
7 Percentage of staff
that have undergone
a skills audit
(including
competency profiles)
within the current 5
year term
142 None No new changes for
the current financial
year
8 Percentage of
councillors who
attended a skill
development training
within the current 5
year term
10 None No training has been
done in the current
financial year
9 Percentage of staff
complement with
disability
1 3 33.33% No new employees,
the status quo
remains the same
10 Percentage of female
employees
331 None The number of
employees has
dropped due to the
fact that there were
only resignations and
no new employees
11 Percentage of
employees that are
aged 35 or younger
89 None No new employees
12 Adoption and
implementation of a
District Wide/ Local
Performance
Management System
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CHAPTER: BASIC SERVICE DELIVERY PERFORMANCE HIGHLIGHTS (KPA 2)
Annual performance as per key performance indicators in Electricity services
Indicator
name
Total number of
household/customer
expected to benefit
Total House
Holds=34159
Estimated
backlogs
(actual
numbers)
Target set
for the f.
year under
review
(actual
numbers)
Number of
HH/customer
reached
during the FY
Percentage of
achievement
during the year
1 Percentage
of
households
with access
to electricity
services
24 269 3 429 20 840 20 840 100
2 Percentage
of indigent
households
with access
to basic
electricity
services
24 269 3 429 24 269 20 840 86
3 Percentage
of indigent
households
with access
to free
alternative
energy
sources
24 269 886 886 886 100
Annual performance as per key performance indicators in road maintenance services
Indicator
name
Total number of
household/custo
mer expected to
benefit
Estimated
backlogs
(actual
numbers)
Target set
for the f.
year under
review
(Actual
numbers)
Number of
HH/customer
reached
during the FY
Percentage of
achievement
during the year
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1 Percentage of
households
without access
to gravel or
graded roads
24 269 14 561 11 648 11 648 80
2 Percentage of
road
infrastructure
requiring
upgrade
980 km 580 km 12 km 12 km 100
3 Percentage of
planned new
road
infrastructure
actually
constructed
980 km 580 km 24 km 24 km 100
4 Percentage of
capital budget
reserved for
road upgrading
and
maintenance
effectively
used.
R 522 m R 522 m R17.4 m R 17.4 m 100
Annual performance as per key performance indicators in waste management services
Indicator
name
Total number of
household/cust
omer expected
to benefit
Estimated
backlogs
(actual
numbers)
Target set
for the f.
year
under
review
Number of
HH/customer
reached
Percentage of
achievement
during the year
Percentage
of
households
with
access to
refuse
removal
services
No. of
households
and
businesses
with basic
waste
collection
29 994 House
Holds
20 742
households
and
businesses
with access to
basic waste.
(29 994-9252
=20 742)
9252
household
s and
businesse
s with
access to
basic
waste
30,8% in the
Amahlathi
Municipality
(9252 / 29 994
X 100= 30,
8%)
Percentage of
households with
access to refuse
removal
services 30,8%
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2 Existence of
waste
management
plan
-Integrated Waste Management Plan is due for its Reviewal - the plan was endorsed in 2012 (2012- 2017) and it is due for reviewal, due to the non-availability of funds, we have requested assistance from National Department of Environmental Affairs to assist with the IWMP reviewal. The municipality has been funded by DEDEAT, for the restoration of Stutterheim Waste Disposal Facility, therefore the process of restoration will go simultaneously with the reviewal of IWMP, and therefore the implementation process will start in 2020/21 financial year.
Annual performance as per key performance indicators in housing and town planning services
Indicator
name
Total number of
household/custo
mer expected to
benefit
Estimated
backlogs
(Actual
numbers)
Target set
for the f.
year under
review
Number of
HH/customer
reached
Percentage of
achievement
during the year
1 Percentage of
households
living in
informal
settlements
4,4% 1527 N/A N/A 0%
2 Percentage of
informal
settlements
that have been
provided with
basic services
N/A N/A N/A N/A N/A
3 Percentage of
households in
formal housing
that conforms
to the
minimum
building
standards for
residential
houses
57% 19950 N/A N/A N/A
4 Existence of
an effective
indigent policy
There is Indigent policy that has been adopted and it is reviewed annually.
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5 Existence of
an approved
SDF
There is an approved Amahlathi Municipality Spatial Development Framework (2012) which
is valid up until 2015/2016 FY. This SDF is currently being reviewed to make it SPLUMA
complaint, but the process was delayed due to the Municipality’s cash flow position that
affected the payment of the Service Provider. The reviewed SDF will be ready for
implementation by the beginning of 2021 as the review process has resumed
6 Existence of
Land Use
Management
System
(LUMS)
Land Use Surveys (determination of land uses within Amahlathi Local Municipality),
informed by Land Use Ordinance of 15 1985 was conducted in August 2012 and Zoning
Maps were created. However a completed Zoning Scheme to regulate land development/ to
control land use rights was not finalised, due to the fact that the Municipality was awaiting
on the Implementation of Spatial Planning and Land Use Management Act No 13 of 2013.
The development of a SPLUMA compliant Wall to Wall Land Use Scheme will be will be
finalised by the end of 2020 though a recently appointed Town Planning Consultant.
CHAPTER: MUNICIPAL LOCAL ECONOMIC DEVELOPMENT FRAMEWORK- (KPA 3)
Annual performance as per key performance indicators in LED
No Indicator name Target set for
the year
Achievement level during
the year (absolute figure)
Achievement
percentage during
the year
1 Existence of LED unit None
- No new recruitments 0%
2 Percentage of LED
Budget spent on LED
related activities.
100% 100% 100%
3 Existence of LED
strategy
LED strategy was adopted by Council in 2012 and it is being reviewed
with assistance from COGTA, which has stalled due to the limitations of
this support process.
4 Number of LED
stakeholder forum
meetings held
8
- 2 Contractors meeting
held
- 4 Agricultural Forum
Meeting held
- 2 CTO’s and LTO’s
meetings
- 3 Hawkers meeting held
- 3 Cooperative meeting
held (Amahlathi Wethu
Secondary Co-Op).
100%
5 Plans to stimulate
second economy
-3 business
plans
developed for
3 cluster
towns
- Keiskammahoek
shopping complex
expression of interest
issued, which is now at
BEC stage.
50%
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No Indicator name Target set for
the year
Achievement level during
the year (absolute figure)
Achievement
percentage during
the year
- Target 2
twining
agreements
with
Strategic-
Institutions in
the EC
MOU developed with Fox
Cox College but not signed
yet.
6 Percentage of SMME
that have benefited from
a SMME support
program
-Training of 10
Contractors
- 30% of
Amahlathi
budget
allocated to
local SMME’s
- 3 trainings
conducted for
Community
Tourism
Organisation
(CTO) and
Local Tourism
Organisations
(LTO’S)
-3 contractors
subcontracted
and
benefited.
- 5 farmers to
be supported
with capacity
building
- 19 Contractors trained
through a Department of
Human Settlements
intervention which was
designed to enable them
to sub-contract in two
new Housing Projects
- % of Amahlathi budget
allocated to local
SMME’s (BTO should
provide the figure)
- 3 training session
conducted for CTOs & LTOs
- 11 contractors met
requirements for
subcontracting on
Cenyulands and Cenyu
Village housing project
implemented by the
Department of Public Works.
-SMME business training by
IDC at Mgwali Village
- Farmers supported on
Capacity building.
- 2 Tourism Events attended
to market Amahlathi craft
artefacts
80%
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No Indicator name Target set for
the year
Achievement level during
the year (absolute figure)
Achievement
percentage during
the year
-4 tourism
event
attended to
provide
access to
market for
Crafters
7 Number of job
opportunities created
through EPWP
80 people to
be employed
by 30 June
2020
80 people were employed
under EPWP Programme
77%
8 Number of job
opportunities created
through PPP
n/a n/a n/a
CHAPTER: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT (KPA 4)
Annual performance as per key performance indicators in financial viability
Indicator name Target set for the year
R(000)
Achievement level
during the year
R(000)
Achievement percentage
during the year
1 Percentage expenditure of
capital budget
R 38 132 050 R 13 649 432.32
31%
2 Target set for the year
R(000)
Achievement level
during the year
R(000)
Achievement percentage
during the year vs the
operational budget
3 Salary budget as a percentage
of the total operational budget
(Including Councillor
Allowances)
R121 381 334 R135 993 101
112%
4 Target set for the year
R(000)
Achievement level
during the year
R(000)
Achievement percentage
during the year vs the actual
revenue
5 Total municipal own revenue as
a percentage of the total actual
budget
R112 607 793
R112 596 526
99.9%
6 Target set for the year
R(000)
Achievement level
during the year
R(000)
Achievement percentage
during the year
7 Rate of municipal consumer
debt reduction
10 000 000 R32 643 558 326%
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8 Percentage of MIG budget
appropriately spent
R38 132 050 R12 317 096 32%
9 Percentage of MSIG budget
appropriately spent
R 0 R 0 0%
10 AG Audit opinion
Unqualified Unqualified
11 Functionality of the Audit
Committee
4 meetings 4 meetings 100%
12 Submission of AFS after the end
of financial year
31 October 2020 31 October 2020 100%
CHAPTER: GOOD GOVERNANCE AND PUBLIC PARTICIPATION- (KPA 5)
No Indicator name
Target set for the
year
Achievement level
during the year
(absolute figure)
Achievement percentage
during the year
1 % war room 12 meetings 12 100%
3 Existence of an effective system to monitor CDWs
Currently there is no tool to motor CDWs. Only assisting them administratively (i.e. venue and communicating their meetings to relevant stakeholders)
5 Effective of IGR structural meetings
Amahlathi Political IGR forum meetings sit on a quarterly basis and are led by the Honourable Mayor. All the Executive Committee members of the Council also form part of the forum as required by the terms of reference of the committee. The IGR is currently coordinated in the Office of the MM and is attached to the Office Administrator.
6 Existence of an effective communication strategy
Communication Strategy adopted by council February 2015, and it is reviewed on an annually basis by reviewing the Communication Action Plan
6 Existence of an effective communication strategy
Communication Strategy adopted by council February 2015, and it is reviewed on an annually basis by reviewing the Communication Action Plan
7 Number of mayoral imbizos conducted
2 2 100%
8 Existence of a fraud prevention mechanism
The Internal Audit Unit is conducting Fraud Awareness Campaigns within the municipality on quarterly basis and those awareness programs are included on the Approved Risk Based Internal Audit Plan for 2015/16 financial year. Employees are workshopped on what constitutes Fraud and what they should do when they suspect that fraud is happening within the municipality. The Internal Audit Unit has also developed Fraud Prevention Plan and Whistle-blowing policy for protection of the Whistle blowers. Policy was submitted to the Council and was adopted in April 2015.