Gsdm annual report combined (reduced) by Afrimage Communications

Contents

Chapter 1:

Mayorâ&#x20AC;&#x2122;s foreword

Chapter 2:

Governance

Chapter 3:

Service delivery performance

Chapter 4:

Organisational development performance

Chapter 5:

Financial performance

Chapter 6:

Auditor-Generalâ&#x20AC;&#x2122;s findings

Appendices

Annual financial statements (AFS)

150

04 ANNUAL REPORT 2012-2013

CHAPTER 1

EXECUTIVE MAYOR’S FOREWORD & MUNICPAL MANAGER’S EXECUTIVE SUMMARY

05 ANNUAL REPORT 2012-2013

Executive Mayor’s Foreword •

KPA 6: Spatial rationale and municipal planning alignment.

On service delivery and infrastructure development, the District has managed to assist Chief Albert Luthuli and Msukaligwa local municipalities and other sister municipalities with regards to tackling water crises and other problems they faced. In Msukaligwa, the District has constructed a water pipe line from Ritspruit Dam to the water purification plant so that the community of Ermelo does not have to worry about any water shortage. As a matter of fact, there are a lot of projects the District is in the process of implementing. These projects are in line with Service Delivery and Infrastructure Development. The District remained committed in ensuring that the best service delivery is provided to our local municipalities. One way we have done this has been through engaging and forming strong partnerships with all our stakeholders as well as with all our local municipalities. Key policy developments

It is a great honour to present the Gert Sibande District Municipality Annual Report for the 2012-2013 period. The Gert Sibande District Municipality (GSDM) acknowledges the positive participation from community members, government parastatals, non-profit organisatons, community-based organisations and traditional leaders during this process. The District Municipality also acknowledges the initiatives by the national government to intensify its mandate of service delivery through, for example, the Outcome Approach. The District Municipality took into consideration all these initiatives and programmes by the government. Taking cognisance of the developmental challenges that the District is faced with as well as the availability of funds allocated to support these initiative and ultimately realise the aforementioned vision and mission, the District has set for itself the developmental objectives and strategies to be pursued in the short and medium term. The developmental objectives and strategies are: • • • • •

KPA 1: Municipal transformation and organisational development; KPA 2: Basic service delivery and infrastructure development; KPA 3: Local economical development; KPA 4: Municipal financial viability and management; KPA 5: Intergovernmental relations, good governance and public participation, and

The Gert Sibande District Municipality has prepared an executive summary of the respective operational strategies (Sector Plan). The sector plan constitutes core components of the Integrated Development Plan (IDP) of the District Municipality as per Section 26 of the Municipal Finance Management Act (MFMA) and plays a significant role in the integration process. Some of these plans will be prepared or developed and others will be reviewed in consideration of the relevant District-wide development initiatives. The plans will be aligned with those of the constituent municipalities. Summary of the sector plans herein included the following: • Organisational performance management systems; • Spatial development framework 2009; • Skill development plan; • District LED strategy; • Integrated waste management plan 2006; • Integrated transport plan; • District HIV-Aids plan; • Community plan; • Disaster management plan; • Integrated water service development plan; • Financial management plan; • Employment equity plan; • Integrated environment management plan; • Air quality management plan, and • Integrated tourism plan. Key service delivery The District Municipality has managed to supply water and sanitation to almost all of its seven local municipalities. We have completed all the borehole projects in time for the financial year 2012-2013 and we are ready to hand them

06 ANNUAL REPORT 2012-2013

Executive Mayor’s Foreword

over to the local municipalities, together with the VIP projects, which were also completed in time. The Govan Mbeki Local Municipality requested our intervention with regards to the Mercedes-Benz Compactor Truck to be purchased to improve service delivery in that municipality. GSDM purchased the truck as per request. Special intervention projects There are two projects being implemented in this programme, and they are: • Bulk water meters at abstraction points and reservoirs. Using trainees to identify and repair leaks in domestic meters and in the infrastructure through formal training and practical experience. • Management information systems within the local municipalities water services and reporting to each local municipality on operational issues. Implementation: water/sanitation maintenance projects

The Gert Sibande District Municipality will make sure that all outstanding projects are completed and that all new and small projects are completed in due time as expected. The GSDM is committed to improving the following needs of the community: • Rural development; • Job creation; • Good governance and Operation Clean Audit 2014; • Environmental management: disaster management, land use management and land invasion; and, • Skills development and capacity building. These priorities were crafted and aligned to the national government’s priorities, especially to induce job creation and mass absorption of unemployed people through initiatives such as the Expanded Public Works Programme (EPWP). The initiative was tailored to cater for the employment of youth, who constitute 60% of the District’s population.

Planning on how funding will be allocated to each of the seven local municipalities has already been done. Some municipalities have indicated that they would like to procure stock for their operations and maintenance stores. Other municipalities are utilising the funding for the operations of treatment plants and to restore reticulation systems.

Among other priorities, the District re-engineered itself by creating a new department of Public Works, Road and Transport to ensure that Public Works becomes one of our prioritised projects for service delivery as well as a vehicle through which people’s livelihood are improved.

The options and mechanisms through which this project is to be implemented have been discussed and agreed with the municipalities and the District Municipality has started the procurement/implementation process.

Conclusion

Public participation The Gert Sibande District has been engaged in many public gatherings such as Moral Regeneration, Mayoral Izimbizo, Gert Sibande Marathon and the Gert Sibande Mayoral Excellence Awards. Last year — in 2012-2013 — the Gert Sibande District Municipality held a budget and IDP consultation. The municipality also had a joint meeting with the Stakeholder Forum and the Home Affairs Department.

As the Executive Mayor of this District, I want to assure you all that the Gert Sibande District Municipality is committed to the call to address the needs of the communities and ensure that all systems and mechanisms are in place to provide more services to our people. We remain resolute that through strengthened cooperative governance, our municipalities will be supported and that service delivery backlogs will be eradicated. Honourable Councillor M Nhlabathi, Executive Mayor

Future actions The District will ensure that all local municipalities receive assistance accordingly should they encounter problems. We, the District and the local municipalities, have joined hands to make sure that our community gets proper service delivery in the financial year 2013-2014.

07 ANNUAL REPORT 2012-2013

Councillor Tunu Agnes Mnisi Chief Whip

Councillor Emily Snana Dhlamini Madam Speaker

Councillor Mishack Nhlabathi Executive Mayor

Councillor Fikile Nyembe MMC Planning & Economic Development

The team of

Councillor Flora Maboa-Boltman MMC Finance

full-time Gert Sibande District Office Bearers Councillor Patrick M Magagula MMC Infastructure & Technical Services

Councillor Joshua Nkosi MMC Corporate Services

Councillor Mabalane Piet Tsotetsi MMC MPAC Chairperson

Councillor Nhlakanipho Zuma MMC Community & Social Services

08 ANNUAL REPORT 2012-2013

Councillor Aubrey Maboea MMC Human Settlement

Executive Summary

Performance Areas for local government and also the relevant legislation applicable to our sphere of governance. It is important to note that the report we are presenting to you as the District has been compiled collectively, ensuring that it covers all aspects as guided by the national KPAs. During this financial year, the District Municipality was still regarded as one of the well-performing municipalities although we noted with disappointment that our Audit Opinion for this financial year was an Unqualified Report. This is, indeed, a regress from a Clean Audit Report we received the previous year. Corrective measures have since been put in place and a better audit report is anticipated. As per our true tradition, the Gert Sibande District has set a good example not only in the District but across the province in terms of its relations with the traditional leaders in its region. We are honoured to welcome Inkosi Mahlobo of Mahlobo KwaNdwalaza Traditional Council and Inkosi Yende of Yende Ogenyaneni as our two additional Amakhosi who were inaugurated during this financial year. Mr CA Habile Municipal Manager

The 2012-2013 financial year has been highly challenging yet eye-opening and educational for the Gert Sibande District Municipality. It is my greatest pleasure to report to the people of the Gert Sibande District on the performance of the municipality for the 2012-2013 financial year. The report informs our community which we serve, our government departments and other stakeholders, of our collective efforts and gains, our challenges, improvements, progress and development ideas moving forward.

A successful Traditional Imbizo was also hosted by the District at Empuluzi and we continue to work well with our local house of Traditional Leaders. We are proud that the District is playing a positive role in ensuring that we do not lose our traditions and traditional ways of doing things. I would like to extend words of gratitude to political principals for their sound leadership, the local municipalities for good working relations as well as the management and staff. Mr C A Habile, Municipal Manager

I hereby inform you that our District ensured that the business of the municipality was informed by the approved Integrated Development Plan (IDP), which is a collective of ideas between ourselves as public servants and the communities. It was also informed by the five National Key

09 ANNUAL REPORT 2012-2013

Top management

Mr M Kunene General Manager Community & Social services

Mr AY Singh Chief Financial Officer Mr CA Habile Municipal Manager

Gert Sibande District Municipality Management Mr S Vilane General Manager Infrastructure & Technical Services

Team

Ms S Zikalala General Manager Planning & Economic Development

Mr M Dlamini General Manager & Corporate Services

Ms C Mkhwanazi Acting General Manager: Human Settlements, Public Safety, Roads & Transport

10 ANNUAL REPORT 2012-2013

CHAPTER 2

GOVERNANCE

11 ANNUAL REPORT 2012-2013

Governance INTRODUCTION Gert Sibande District Municipality has seven local municipalities, which are Chief Albert Luthuli, Dipaleseng, Govan Mbeki, Lekwa, Mkhondo, Msukaligwa and Dr Pixley ka Isaka Seme. There are directly elected Councillors to the District, Councillors who represent local municipalities and traditional leaders. The establishment of this District is done in terms of the Constitution of South Africa, Structures Act, Municipal Systems Act and other relevant legislation. The breakdown of Council members with regards to party representatives from 2011 to date is as follows: Party members

Total number of Councillors

Total number of female councillors

Part time

Full time

ANC

–

Freedom Front

–

Traditional leaders

Council is made up of the Political and the Administrative wing. The Political wing is made up of elected Councillors and the Administrative wing comprises appointed staff, commonly known as technocrats. All these bodies have respective Terms of Reference, which are approved by Council. Political Office bearers are responsible for taking political decisions on matters put before them while the administration implements decisions taken by the political office bearers within the framework of the law. In terms of political management of the institution, the following offices have been established according to the Structures Act to direct the institution politically. The Speaker, the Executive Mayor and the Chief Whip have established a political committee which oversees the proper political functioning of the institution. POLITICAL GOVERNANCE The offices of the Speaker, the Executive Mayor and the Chief Whip have established a political management committee which oversees the political functioning of the institution. This political committee is chaired and coordinated by the Chief Whip, and its meetings are held every Tuesdays. The political management committee is to pursue strategic leadership issues for the whole district and conduct audit on service delivery challenges, functionality of municipalities, progress on projects and other matters related to service delivery. The Municipal Manager attends all of the above-mentioned meetings to give clarity and accountability on matters raised. ADMINISTRATIVE ARRANGEMENTS Institutional arrangements of the District are made up of the six (6) departments which are led by respective heads of departments. The Municipal Manager and all Heads of Departments have been appointed, and the Managers are commonly known as section 56 and 57 managers. The six departments of the District are Corporate Services, Community and Social Services, Finance Services, Infrastructure and Technical Services, Human Settlement, Public Safety, Roads and Transport and the Planning and Economic Development Department. SECTION 79 AND 80 COMMITTEES The District Municipality has four Section 79 Committees, which are managed and coordinated by the Office of the Speaker. These committees are Rules and Ethics Committee, Bylaw and Policies Committee, Municipal Public Accounts Committee and Rural and Traditional Affairs Committee. These committees are fully functional and meet regularly when there is a matter that warrants their attention. All deliberations and recommendations of these committees are presented to Council for consideration. Furthermore, these committees assist the Speaker in the execution of her duties in line with the relevant legislation and municipal delegation authority. Section 80 Committees are usually headed by the Mayoral Committee members to assist the Executive Mayor in executing the Speaker’s duties. Gert Sibande District Municipality has six Section 80 Committees and these are: Finance Committee, Cooperate Services Committee, Community and Social Services Committee, Infrastructure and Technical Committee, Planning and Economic Development Committee and Human Settlement and Public Safety Committee. These committees meet regularly to consider items submitted to their portfolios and make recommendations to the Mayoral Committee and Council. It is imperative to note that all the work done by these committees feeds into Council work.

12 ANNUAL REPORT 2012-2013

Governance Committees

Number of meetings held

Rules and ethics

By-laws and policies

Rural and tradional affairs

Municipal public accounts

Corporate services

Finance committees

Community and social services

Infrastructure and technical

Planning and economic development

Human settlement and public safety

–

PUBLIC PARTICIPATION AND CONSULTATIONS Public participation is about the engagement of various stakeholders on issues that affect their communities. Furthermore, it is about ensuring that communities are involved in the decision-making processes of the municipality. Gert Sibande District is a municipality that serves all seven local municipalities within its region. This District Municipality has enhanced the public participation by holding IDP and budget consultations throughout its municipalities. The aim of these consultations was to obtain comments and concerns of all stakeholders on the service delivery projects that were to be undertaken by the Gert Sibande District Municipality. Other forms of public participation included workshops on the by-laws, which were carried throughout the seven local municipalities. There were also workshops in the municipalities regarding the naming and renaming of geographical features. Municipalities were also engaged in the Speakers forum, Public Participation forums, Integrated Development Plan forums, Provincial Public Participation forums and Premiers Coordinating forums. IDP consultation were held in all seven municipalities as follows:

Date

Municipality

Venue

11/02/2013

Mkhondo

Piet Retief Hall

09h00

11/02/2013

Msukaligwa

Ella de Bruin Hall

14h00

12/02/2013

Dipaleseng

Balfour Town Hall

09h00

12/02/2013

Govan Mbeki

Lillian Ngoyi Centre

14h00

13/02/2013

Dr Pixely ka Isaka Seme

Volksrust Town Hall

09h00

13/02/2013

Lekwa Municipality

Standerton Town Hall

14h00

15/02/2013

Chief Albert Luthuli

Carolina Hall

09h00

COMMUNITY AND SOCIAL SERVICES Introduction The Department of Community and Social Services comprises four (4) divisions namely: • • • •

Time

Municipal Health and Environmental Services; Disaster Management; Transversal Management; and Communications.

13 ANNUAL REPORT 2012-2013

Governance The department also provides support to local municipalities with respect to information, library services and sports, culture and recreation. Details on the activities of these divisions can be found in the various sections in Chapter 3. 1. LIBRARIES AND COMMUNITY FACILITIES Libraries in the District are the responsibility of the local municipalities, but included in the layout of the new regional offices is a facility to accommodate a Regional Library and Information Centre. In the course of the current year, a task team was appointed. The team comprises senior management and members of the Mayoral Management Committee (MMCs). The team’s task is to visit similar regional facilities and benchmark them against the best practices. The library section was allocated a R500 000 budget during the 2012-2013 financial year. An amount of R490 100.05 was spent on the procurement of new library books. The library has also received a kickstart of 778 books from the Department of Culture, Sports and Recreation under the Mpumalanga Library and Information Services. In the 2013-2014 financial year R650 000 has been provided in the departmental allocation budget of the Department of Community and Social Services to fast-track the implementation of the project by the third quarter of the new year. These funds will be primarily used to equip the library with the requisite book, periodicals and journals befitting a facility of this stature. The Gert Sibande District Municipality will develop a policy and procedures to establish guidelines for the proposed library services. We do have access to free internet and the Department of Culture, Sports and Recreation has to install sita library information management system (SLIMS). The posts of library manager, librarian and library assistant have been filled during the 2012-2013 financial year. The Department of Culture, Sports and Recreation has seconded one librarian and one IT library assistant (cyber cadet).The department has allocated 778 books for start-up. The following documents, which would assist the institution in bringing order in the library, have been developed during the 2012-2013 financial year: • • • •

Collection development plan Library guidelines Library policies and by-laws Library tariffs

2. CHILD CARE, AGED CARE AND SOCIAL PROGRAMMES 2.1. Introduction to child care, aged care and social programmes The plight of children needs to be urgently addressed. The impact of HIV- and Aids-related illnesses has increased the number of households headed by minors. The impact has also led to an increase in child abuse, orphans and vulnerable children. The District is committed to mobilising all relevant stakeholders within the community to support viable initiatives that will ensure that children are reared in a safe and healthy environment. The key issues pertaining to the rights of children that were addressed during the 2012-2013 financial year include, among others, the following: • Lack of support and coordination for the emancipation, protection and support for children in need and distress; • The District Children Forum has been established. It provides a coordinated approach to projects for children in conjunction with sector departments and our municipalities. The District has supported and participated in various functions during the 16 Days of Activism for No Violence Against Women and Children in November 2012; • Coordination and support of child-headed households; • The District has been active in the facilitation and the establishment of sector partnerships that are focused on availing resources to assist children in need; and • The District Municipality sponsored a Back to School Project in 2013 where we bought school uniforms for children from child-headed families and other struggling children who have no one to take care of them. First and foremost, the priority for 2013-2014 will be to appoint a coordinator in this function to promote the rights of children and establish a District Forum to address their unique social needs and involve all spheres of government to address these needs. A policy document for children’s rights needs to be formulated and approved by Council and a database to collate all pertinent information and highlight priority issues that prevail in the District needs to be developed. Ultimately, we need to create a climate that is conducive to ensuring a safe, healthy and caring environment for the upbringing and development of children in our communities. We need to support projects that involve Early Childhood Development (ECD) because if our children have had a good foundation, we will have a strong and focused nation. As the Gert Sibande

14 ANNUAL REPORT 2012-2013

Governance District, we must encourage relatives or family members to take responsibility and look after children who have lost their parents especially due to HIV- and Aids-related illnesses. Our children should have a sense of belonging and a feeling of being wanted and taken care of. We must do away or discourage orphanages. We must empower our communities with the knowledge that “Your child is My child”, and they must instil that to their own children so that they do not look down upon other kids. Children with disabilities must be taken care of and communities be made aware that they should love and take care of these children as they do other children without disabilities. If possible, we need to expand the budget for the Back to School Project as we saw that the schools and parents appreciate assistance given to their pupils/children. We need to support projects that cater for children especially orphans and vulnerable ones, not forgetting children with disabilities. 3. OTHER TRANSVERSAL PROGRAMMES The question with respect to the perceived general lack of progress in the implementation of programmes related to transversal issues for vulnerable groups can be traced to the diversity of the portfolio incorporated in this division. Lack of resources and appropriate budget funding further reduced the priority that this division has been afforded. It has been recommended by several sections that the institutional arrangements be reviewed to afford this function a higher status than it presently enjoys and that it is allocated political support to further create visibility and promote the views of the division with respect to taking care of the vulnerable groups. This may be achieved through repositioning the division to report to the Office of the Executive Mayor. This initiative will be progressed during the 2012-2013 financial year. The programmes currently overseen by the division and the progress achieved in the 2011-2012 financial year are: • • • • •

HIV-Aids Youth development Disability coordination and support Moral regeneration and religious affairs Development of gender issues

3.1. HIV-Aids Mpumalanga is one of the three (3) provinces with the highest HIV-Aids infection rates. Stats SA 2010 reveals that this trend still prevails and a lack of infrastructure at local municipalities has resulted in the District recording the highest infection rate in the province. Although a good relationship with sector departments and NGOs exists and a District Aids Council (DAC) forum is well-established and functional, the lack of a coordinated communication structure and poor reporting among the three (3) spheres of government inhibit a common strategy to be adopted. The District is in the process of developing an HIV-Aids policy and when adopted it would be rolled out to all the local municipalities. The District intends adopting the implementation of a sustainable, coordinated regional approach to respond to the challenges posed by HIV and Aids. The GSDM HIV-Aids division has successfully implemented various activities during the 2012-2013 financial year. These successes were made possible through the joint efforts of the members of the DAC stakeholders. In the 2012-2013 IDP, the GSDM identified key issues pertaining to HIV and Aids and reports on progress in this regard as explained below. The DAC stakeholders have been involved in intensifying HIV-Aids awareness campaigns and in instilling in the minds of the people that the vision 2012-2016 is Zero new HIV and tuberculosis (TB) infections; Zero new infections due to vertical transmission; Zero preventable deaths with HIV and TB, and Zero discrimination associated with HIV, STIs and TB. Youth and women are the main targets of our programmes. During the campaigns in the community, we specifically address those already infected and affected by HIV and encourage them to keep taking their treatment and those who are HIV-negative to use protection all the time. The catalyst of the programme is the DAC and four meetings as well as three task team meetings, which were held in the last financial year. The vision of DAC is “Zero new HIV and TB infections”. Other focus areas of the Council are to revive the HCT campaigns and the distribution of condoms in the Gert Sibande District even in remote areas.

The DAC has also donated bags to hard-working NGOs to encourage them to keep doing the same in their communities. Communities are urged to adopt orphaned children so as to reduce the number of street kids and child-headed families. Community dialogues are included in our plans where we interact with the people and find out how much they know about HIV and Aids, and we then teach them with the aim of closing any existing gaps in their understanging of the two subjects.

15 ANNUAL REPORT 2012-2013

Governance The response has been great and the communities appreciate that we embrace them and interact with them at grassroots level. These dialogues are coupled with HCT campaigns, in conjunction with other stakeholders such as the Department of Social Development and Department of Health. The GSDM is in the process of encouraging all government departments, especially the Department of Human Settlements, to become more involved in the functionality of the DAC so that we address the problem of housing the terminally-ill people. Stakeholders have been requested to identify other relevant parties who are presently not part of the DAC. The purpose is to achieve a broader representation from as many participants as possible so that we are better-placed to coordinate a united front in our strategy discussions in the DAC forum. Stakeholder participation and commitment is being encouraged and debated at the DAC meetings. This is because if we work together and combine resources, more can be done to curb the spread of HIV. As part of the strategy, we are looking into capacitating the political leadership within the DAC so that it can have a clearer understanding of what is expected of it. We are also looking at lobbying local municipalities to urgently appoint HIV-Aids coordinators and get local Aids councils up and running. Our political leadership has taken a lead in this regard, particularly in the District and other local municipalities. Once the strategy is implemented, services on the HIV and Aids programmes will be improved and our communities will benefit. Skills development is another focal point of the DAC. Thatâ&#x20AC;&#x2122;s because a significant number of our people are unemployed and impoverished - poverty and unemployment are the key drivers of the pandemic in the District. The Treatment Action Campaign (TAC) hosted a workshop where the focus was to encourage people to form cooperatives and that support be given to communities to start their own food gardens. If people can support themselves financially, HIV transmissions can be minimised. Also, the increase in transmissions in certain areas where impoverished people are forced to indulge in â&#x20AC;&#x153;commercial sexâ&#x20AC;? as a means of deriving income, can be reduced drastically. We are committed to a multi-sectoral approach to reduce the scourge of HIV and Aids in all the corners of the Gert Sibande District Municipality. Our interventions are to also target men through voluntary medical male circumcision (VMMC). As a District, we call upon all organisations and individuals to participate in the fight against the prevalence of HIV and TB. At every community gathering, the HIV-Aids message is part of the agenda where people are reminded and encouraged to take precautions and take HIV seriously as it affects all of us, socially and economically. Mainstreaming of HIV is an integral part of all of our municipal developmental initiatives, and we are actively pursuing the involvement of more municipal departments in this regard. A proposal emanating from recent DAC meetings was to encourage service providers submitting tenders to indicate what they intend to do for the GSDM HIV-Aids campaign as part of their social responsibility commitment. This initiative will be addressed with our Supply Chain Management Division to explore the possibility of incorporating a section as part of policy to accommodate this proposal without compromising the integrity of this policy. Location

HIV prevalence rate 2010

HIV prevalence rate 2011

Chief Albert Luthuli

Carolina

33.3%

43.2%

Dipaleseng

Balfour

25%

60%

Lekwa

Standerton

50%

32.5%

Msukaligwa

Ermelo

47%

47.4%

Mkhondo

Piet Retief

45%

56.1%

Dr Pixley ka Isaka Seme

Volksrust

40%

39%

Govan Mbeki

Secunda

33.7%

45.8%

GSDM

Ermelo

38.8%

46.1%

Local municipality

A notable change in the HIV prevalence among the Gert Sibande local municipalities has been at Dipaleseng where a significant increase was reported, with the current level standing at 60%. This has been attributed to an increase in commercial sex as a result of higher volumes of coal haulage traffic in the area. Priority intervention measures will be intensified at local municipalities where the HIV prevalence rate has escalated.

16 ANNUAL REPORT 2012-2013

Governance 3.1.1. Outcome Indicators for TB/HIV

Number

Number of HIV-positive TB patients who started/received CPT

710

73.3%

Number of HIV-positive TB patients with CD4 count done

663

68.5%

Number of HIV-positive TB patients with CD4 count not done

305

31.5%

Number of HIV-positive TB patients with CD4 count < = 350

554

57.2%

Number of HIV-positive TB patients on ART prior to TB treatment started

338

34.9%

Number of HIV-positive TB patients who started ART during TB treatment

9.2%

Total Number of HIV-positive TB patients on ART (prior or during)

427

44.1%

Number of HIV-positive TB patients eligible but not on ART

342

35.3%

Category

Source: Based on TB Progress Report (23 April 2012) Dept. of Health Ermelo

3.1.2. Voluntary counselling and testing of employees In the period from June 2011 to June 2012, two HIV Counselling and Testing (HCT) campaigns were held for the GSDM staff members. This was well attended and some staff members were counselled and tested for HIV. Since then, staff has been motivated and encouraged to know their status, which would assist them to lead positive lives and galvanise them to access treatment before it is too late, should they test HIV-positive. Condoms are distributed in toilets and conditioners have recently been procured to be placed in all the toilets for easy access for both staff and community members. 3.1.3. Development of an HIV-Aids Strategic and Implementation Plan It was unfortunate that the 2007-2011 District HIV-Aids Plan could not be implemented as it was still in draft form. It was submitted to the Council for approval but was referred for further evaluation because the document needed additional scope before being incorporated. The Mpumalanga Provincial Department of Health has seconded the Sexual HIV Prevention and Programme (SHIPP) to assist the District and local municipalities to review their respective strategic and implementation plans and strengthen and revive the District and local Aids councils through providing technical support. A service provider has been appointed by SHIPP to review the existing strategy and implementation plans and updates for implementation for the 2012-2016 period. Several stakeholders have been consulted and a general meeting was to be convened during the early part of the 2012-2013 financial year. In that meeting, all DAC stakeholders and relevant partners were expected to make contributions and be informed about the content and intent of the strategy plan. This would ensure that ownership and accountability is vested in the document by all relevant stakeholders. This strategic plan would be aligned to the national and provincial governmentsâ&#x20AC;&#x2122; strategic plans. 3.2. District plan key issues Sasol, one of the DAC stakeholders has established a committee to address the issue of commercial sex workers and truck drivers. The GSDM is working together with other stakeholders and developmental partners to educate migrant workers and jobseekers in our District to take precautions and prevent the spread of HIV. In 2012-2013, we and SHIPP planned to visit communities where migrant workers and jobseekers live to encourage them and spread the word about HIV prevention.

17 ANNUAL REPORT 2012-2013

Governance 3.3. HIV and Aids awareness campaigns Successful awareness campaigns were held in conjunction with the DAC and people were counselled and tested for HIV. Pamphlets with information on HIV and Aids were distributed and people were educated on the pandemic. It is encouraging to note that more people are willing to come forward and be tested in order to know their HIV status. Promotional material with HIV messages was distributed to the communities. Males were encouraged to undergo Medical Male Circumcision (MMC) as it contributes greatly in preventing the spread of the virus. Mothers were also urged to circumcise their male children after birth. Condoms are distributed and made available to prevent the spread of the virus, both internally (at the municipality offices) as well as at all events the municipality representatives are invited to. We will be conducting HIV-Aids awareness campaigns at tertiary institutions and high schools, first targeting the worstaffected local municipalities. Community dialogues will also be held and SHIPP will be part of the activities and will offer necessary financial support. During HIV-Aids awareness campaigns people, especially women, will be educated about their rights with regards to the virus/disease. 3.4. Home-based Care Kits Home-based Care Kits (HBCK) have been distributed to all the local municipalities of the GSDM. Home-based care centres, where terminally-ill people are afforded medical and support services, must be commended for a sterling job they are doing. There is still a great need for the distribution of more HBCKs as the Department of Health cannot cope singlehandedly and needs assistance in this respect. The District supports and assists the department in this regard. 4. Youth development The District has a large population of unemployed youth. This youth also lacks the requisite education level or skills to fully leverage the employment market. The District is aware of this unacceptable situation and has recognised this challenge and has given it priority through its bursary and EPWP programmes. The District also plans to create and support specific interventions for youth to actively participate in the District’s economic growth and creation of employment opportunities. The GDSM had budgeted R300 000 for a youth programme. However, this programme could not be implemented because a youth coordinator was not available. The GSDM planned to appoint a youth coordinator in the third quarter of 2012-2013 financial year. Other key issues with respect to youth development that have been addressed include: Emanating from the District Youth Summit held last year, a number of resolutions were taken. One of those resolutions was the drafting of a youth development strategy, which is currently being progressed. • Enhancing youth participation in local government matters through, for example, involvement of youth in monitoring municipality compliance on policy matters. Although the District managed to arrange youth consultative meetings in its seven local municipalities, there was limited progress and success in this regard due to the absence a youth officer. • Ineffective youth developmental organisations i.e. youth councils. The Youth Summit was instrumental in formulating a resolution for the establishment of youth councils, but to date only Lekwa and Govan Mbeki local municipalities have been successful in putting this in place. • Training of youth units and youth cooperatives responding to specific skills needs in the District. The District has implemented a project in the 2012-2013 financial year — called Phezukomkhono — a job creation initiative aimed at empowering the youth. The project will be rolled out to all seven local municipalities. This project has been allocated R5 000 000 in the first year and will be sustainable for the next three years. 2.4

GSDM has managed to conduct a skills development workshop during the fourth quarter of 2012-2013 financial year at a cost of R108 845.40.

2.5

GSDM has also managed to organise a youth awareness event during the fourth quarter of 2012-2013 financial year at a cost of R184 000. The awareness campaign was about June 16 Commemoration.

18 ANNUAL REPORT 2012-2013

Governance 5. Disability coordination and support The majority of people with disabilities in South Africa have been excluded from the mainstream of society and have thus been prevented from accessing fundamental social, political and economic rights. This exclusion is the result of the political and economic inequalities of the apartheid system. The key forms of exclusion responsible for the cumulative disadvantage of people with disabilities are poverty, unemployment and social isolation. This provides the District Municipality a unique opportunity to provide leadership skills training programmes to people with disability. As the District we have been highly successful when it comes to working with disability organisations. We have achieved this strong relationship through providing our disabled people with the tools to change their lives. These tools gave them a greater degree of independence. There was an urgent need to highlight pressing disability issues at municipality level and strategies were developed to integrate the needs of people with disabilities in the planning processes at district and local level. To break down barriers hindering the empowerment of disabled people and to promote social integration, the District Municipality: •

Constantly supported the annual Sasol Disability Sports Day since May 2007;

•

Commemorated the International Day for People With Disabilities annually - the 16th commemoration was hosted on 4 December 2012 in Nelspruit;

•

Supported the Mandela Day at Albert Luthuli Local Municipality’s Dundonald Disabled Protective Workshop;

•

Supported the disabled community by hosting job readiness training to teach them about how to write CVs, apply for jobs and how to prepare for job interviews. The training was held at the GSDM offices in Ermelo. Disabled People South Africa (DPSA) was part of the training and the Department of Labour supported the initiative;

•

Hosted the Gert Sibande District Municipality Disability Day on 16 April 2013 at the Gert Sibande District Municipality Offices in Ermelo, and

•

Welcomes initiatives between the Mpumalanga DPSA community-based rehabilitation programme and integrated development programme with the Department of Health to address the needs and the backlog on assistive devices. The District committed itself to provide the following assistive devices: wheelchairs (13 wheelchairs for adults) and Madiba Buggies (a total of eight) for children with cerebral palsy.

The District Municipality, together with all local municipalities, are committed to ensuring that, through the implementation of the proposed Disability Framework for Local Government, the equality of disabled women, men, children, the elderly and youth, as enshrined in the country’s Constitution, becomes a reality.

19 ANNUAL REPORT 2012-2013

Governance 4. INTRODUCTION TO SPORT AND RECREATION The Gert Sibande District Municipality is faced with an increasing demand for sports and recreation activities in the local municipalities and communities. As these needs grew, we realised that we had to assess the current status of sports and recreation within the District and align it with the national policy directives and programmes, and develop a District Sports and Recreation Strategy that speaks to the current government’s developmental agenda and address the needs of the District’s communities. This is informed by a comprehensive baseline report and a series of consultative engagements with different stakeholders, which culminated in the District hosting of a Sports Indaba on 21 June 2012. The following programmes, which were implemented for 2012-2013 financial year, will be guided by this strategy: 4.1 Gert Sibande Cup The GSDM hosted the Gert Sibande Cup games on 28 April 2013 at Govan Mbeki Municipality (Kinross Sasol Club), which included soccer for males and females and netball. The Gert Sibande Cup is a product of the strategic workshop held at the district office in 2012 in which all organised sports federations were present. On the day, the slogan “Gert Sibande Region of Sport Excellence” was adopted. 4.2 District Mayoral Cup The Gert Sibande District Municipality planned and hosted its Mayoral Cup Games for the 2012-2013 financial year on 8 June 2013 at Mkhondo Local Municipality. The Gert Sibande District Municipality’s Mayoral Cup is an annual sports event hosted by the Executive Mayor. The first GSDM Mayoral Cup Games were staged in 2007 at the Mpumalanga Stadium, in the Msukaligwa Local Municipality. The Mayoral Cup Games bring together teams from the seven local municipalities to compete. The local municipalities first play their own local mayoral games, after putting together teams to represent each municipality at the Games. One of GSDM strategic key performance areas is to assist local municipalities to promote sports programmes. 4.3 GSDM inaugural marathon The GSDM held its inaugural marathon on 22 June 2013. The route catered for elite athletes chasing fast times as well as beginners simply looking to finish their first marathon comfortably. The route features the beautiful mountains and farms of the Gert Sibande District Municipality. The marathon started at Morgenzon (Lekwa Municipality) and ended at Ermelo Swanepoel Stadium (Msukaligwa Municipality). 4.4 LFA promotional play-offs The District held its LFA promotional play-offs right after the Mayoral Cup Games on 9 June 2013 at Kinross Sasol Club (Govan Mbeki Local Municipality). The promotional play-offs between the LFA teams take place after leagues under each local municipalities have been wrapped up. The above-mentioned programmes took place during the 2012-2013 financial year for the purpose of developing sports in our District.

Capital expenditure 2011-2012: Sport and Recreation 2012-2013 Capital projects

Budget

Adjustment budget

Actual expenditure

Variance from original budget

Total

R1.8-million

Upgrading of Elukwatini Stadium and Carolina Stadium

R1.8-million

20 ANNUAL REPORT 2012-2013

Total project value

1 000

Governance The GSDM has established the District Sport forum which has representative from all relevant federations at regional level and sporting codes at a local level. It is anticipated that this forum will greatly assist in promoting sports in the District. Coordination/facilitation of opportunities for young talent through sport development The GSDM has developed a framework for sports and recreation. The preliminary consultative meetings with the local municipalities and relevant external stakeholders have been conducted. A Sports and Recreation Strategy has also been developed and our programme will be guided by this strategy. The division has been operating without a sport, culture and recreation officer for the 2010-2012 financial year, which has had a negative impact. This position has been provided for in the 2012-2013 financial year. 4.1. DISASTER MANAGEMENT The Gert Sibande District Municipality Disaster Management section has implemented planned activities in the 2012-2013 financial year. All planned and implemented programmes were in line with the provisions of the Disaster Management Act 57 of 2002 and the Gert Sibande District Municipality Disaster Management Framework and Supporting Policy for the Execution of the Disaster Risk Management Framework. The GSDM Disaster Management Framework has four (4) key performance areas (KPAs) and three (3) performance enablers (PE), and they are as follows: KPA 1: KPA 2: KPA 3: KPA 4: PE 1: PE 2: PE 3:

Integrated institutional capacity Risk assessment Risk reduction Response and recovery Information management and communications Knowledge management Funding

4.2. Awareness campaigns Risk reduction is one of the KPAs in disaster management as per our approved disaster management framework, which is aligned with the provincial and national disaster management framework. An awareness campaign is part of our strategy to reduce risk by educating communities, making them aware of hazards and risks. In the 2012-2013 financial year we were able to have one (1) awareness campaign, and this was held in Amersfoort, which is part of the Dr Pixley ka Isaka Seme Local Municipality. The campaign was carried out in primary schools. It was targeted at learners who were identified as being vulnerable. The campaign focused on pedestrian road safety, fire safety and basic emergency medical procedures. The campaign was held in three (3) different schools, namely, Kalkoenkrans, Enon and Kwasikhova primary schools. Promotional material, which were branded bagpacks, pens and information pamphlets, were procured for R59 799.90 and used during the awareness campaigns. 4.3. Disaster relief material We procured 500 blankets at a cost of R135 900. These will be used as disaster relief materials. By procuring the blankets, we were responding to KPA 4 i.e. Response and Recovery which is part of Disaster Management shown above. 4.4. Training of firefighters In response to PE 2 i.e. Knowledge Management, we trained five (5) junior firefighters in Fire Fighter 2 and Hazmat Operations courses. The firefighters are stationed at Lekwa and Dr Pixley ka Isaka Seme local municipalities respectively. By training these junior firefighters we were capacitating our constituent municipalities to be able to respond effectively to fire-related incidents in terms of KPA 4. An amount of R 68 730 was used for the training of junior firefighters. 4.5. Procurement of rescue tools A set of rescue tools were procured to assist Lekwa Local Municipality at a cost of R239 434.74. The tool include a dual power unit with hose reels, combi tool, spreader, cutter, ram, ram supporter and a rescue saw. Procurement of these tools was a response to KPA 4. One of our rescue vehicle stations at Dipaleseng Local Municipality was repaired at a total cost of R 28 000.

21 ANNUAL REPORT 2012-2013

Governance 4.6. STAKEHOLDERS’ PARTICIPATION 4.6.1 Disaster management advisory forum A disaster management advisory forum is the body through which a municipality and relevant disaster management role players consult each other and coordinate their actions on matters relating to disaster risk reduction and management in the municipalities. The GSDM has a disaster management advisory forum, and it holds its meeting quarterly. Only one (1) meeting was held during 2012-2013 financial year. We were responding to KPA 1 of disaster management. 4.6.2 Municipal fire chiefs forums The Municipal Fire Chiefs Forum is a technical experts’ task team comprising municipal fire chiefs, provincial fire coordinators, disaster management officers and fire protection officers. It was established to assist the GSDM disaster management to execute its functions as contained in the Disaster Management Act No.57 of 2002, and to support the implementation and compliance to other statutory legislation affecting or supporting disaster and emergency management. This includes the National Disaster Management Framework of 2005 and the GSDM Disaster Management Framework and the Supporting Policy Local Government: Municipal Structures Act No.117 of 1998, the National Veld and Forest Fires Act No.101 of 1998, the Fire Brigade Services Amendment Act No.14 of 2000, the Fire Services Framework and the SANS 10090. The task team needs to revived. No meetings have been held. We were responding to KPA 1 of disaster management. 4.7. CAPITAL PROJECTS 4.7.1 Chief Albert Luthuli Sub-district Disaster Management Centre The construction of Chief Albert Luthuli Sub-District Disaster Management Centre in Carolina is continuing and 75.64% of construction work has been completed. The project’s completion date was set for 23 September 2013. We were responding to KPA 1 of disaster management to strengthen the capacity of our constituent local municipality to respond to issues of disaster management, and fire and rescue. Also, we secured funds in 2013-2014 financial year for the construction of the district’s disaster management centre in Ermelo and Dr Pixely ka Isaka Seme local municipality as per section 43(1) of Disaster Management Act (Act 57 of 2002). 4.7.2 Expenditure breakdown report The Disaster Management Section was allocated a budget of R650 000 in the 2012-2013 financial year for executing programmes and projects as contained in that year’s SDBIP. The section spent R548 296 of the allocated total budget. 5. INTRODUCTION TO MUNICIPAL HEALTH AND ENVIRONMENTAL SERVICES 5.1 Municipal health services The District provides municipal health services as regulated in the National Health Act. We carried out three (3) sub-district compliance enforcement inspections and awareness campaigns on food safety. The District has also provided food safety training on the five (5) keys for safe food handling programme to caterers. The District has also conducted inspections on food premises that need certificates of acceptability, including health certificates for daycare centres. 5.2. Air quality management The District, as the licensing authority, has: • •

Through the auspices of the Air Quarterly Authority Forum, has conducted annual and quarterly planning and implementation of services in line with the service delivery budget implementation plan and national guidelines. Through the auspices of the Stakeholders’ Air Quality Forum, provided reports to stakeholders on services provided and policy initiatives, programmes and also solicited input and participation.

5.3. Municipal health services The division has numerous responsibilities to comply with, such as all relevant legislation, including the National Health Act (2003), Air Quality Management Act (2004), Waste Management Act (2008). It sub-divides these responsibilities within the following categories:

22 ANNUAL REPORT 2012-2013

Governance 5.3.1 Water quality monitoring The district has managed to administer 99% water quality monitoring in all seven local municipalitiesâ&#x20AC;&#x2122; key sampling points. Sanitation monitoring on same facilities was done on monthly basis, especially on community facilities. Overall monitoring was carried out on all sewerage treatment plants so as to comply with environmental and water legislation. 6. Food control 7. Waste management 8. Health surveillance of premises The District managed to administer 50% compliance inspections on community facilities. 9. Surveillance and prevention of communicable diseases, excluding immunisation 10. Vector control 11. Disposal of the dead The district did not have capital for projects regarding cemeteries. The IDP provided for the investigation of regional cemeteries. The district is doing compliance inspections and the monitoring of the facilities including issuing of health certificates and monitor environmental pollution. Monitoring was done on 60% of all cemeteries, crematoria and other community facilities in the District so as to comply with health and environmental legislations. 12. Chemical safety This division also caters for Environmental Management Services and is a licensing authority for the implementation of the Atmospheric Emissions Licensing System. It also issues atmospheric emission licenses and performs all functions assigned in the Air Quality Management Act as follows: 13. Air quality control and management Air Quality Managemnent Services (licencing/enforcement and compliance monitoring). 14. Licensing authority for atmospheric emissions management system 15. Environmental pollution control The District, in collaboration with sector departments, provides the following services: 16. Water quality monitoring 17. Environmental pollution control and compliance monitoring/enforcement The District provides the following services: food safety; health surveillance; water quality and sanitation monitoring, including waste management, and infrastructure assessment and surveillance of communicable diseases in all premises through annual inspections for compliance and on adhoc basis to all community facilities, including social facilities subsidised by the Department of Social Services. The District provides environmental pollution control services for cemeteries, crematoriums and mortuaries, dams, water sources, sand water storage facilities, open areas, and community facilities. Infrastructure to accommodate the growing demand and upgrading of current facilities is a challenge. Capital expansion has been recommended to social services and private owners. Social partnership is required. The IDP targets aimed at increasing service delivery levels can be achieved with the provision of minimum resources as adopted by the Council. This would be in terms of the service delivery method required to provide municipal health services. Water quality monitoring The District is doing 99% water quality monitoring in strategic water sources and storage facilities used to supply drinking water to all communities. Monitoring is done on boreholes, bottled water and dams to ensure compliance to SANS 241 standards. All local municipalities are provided with sampling results as well as recommendations on corrective action to be taken. Water safety awareness is given to all communities where the water standard is not as high as expected.

23 ANNUAL REPORT 2012-2013

Governance Environmental pollution control The District, in partnership with other authorities, administers 60% compliance inspections regularly in all potential hotspots. The District maintains the database of all environmental pollution hotspots and constantly consults local municipalities to come up with programmes to reduce the number of these hotspots. Environmental awareness campaigns are done to mobilise community members to partner with authorities to remedy the problems. Enforcement is limited. Air quality management services The District, as the licensing authority, is doing atmospheric emission licensing of facilities enforcement and compliance monitoring. The District, in partnership with other authorities, has implemented annual compliance inspection. It is also developing small industry inventory as part of the Highveld priority area. The GSDM has been participating in development of the Highveld Air Quality Management Plan which will be used to monitor and reduce poor air quality in the District. The District, in partnership with stakeholders, will be developing an action plan to ensure that the goals of the priority management plan are achieved. Awareness campaings are complete and will be intensified, including monitoring and enforcement in all areas when resources are made available. The District, in partnership with the Department of Environmental Affairs, has been involved in the following pollution control activities through monitoring and sampling: Water Quality Monitoring on a monthly basis: there is an average of 70% compliance required by SANS 241 standards for drinking water. However, there is an increase in water sources pollution by sewerage treatment plants. Environmental pollution incidents: there is a huge challenge of water pollution, on average, 70% of municipal sewerage treatment plants are affected. There is also an indication of mine decanting in some areas. There is a growing illegal wastedumping and littering in all areas. There is a 80% challenge by local municipalities to collect waste in all areas. A total of 99% of all landfill sites do not operate in line with the minimum general standards required. Funding is needed to construct new regional landfill sites Soil pollution incidents: there is a huge challenge with illegal dumping of general waste and emerging illegal dumping of coal by trucks. Please refer to IT capital projects on water and sanitation, including the regional landfill site for Msukaligwa Local Municipality. There was no budget provided for the construction of the cells at the landfill site. The District supports biodiversity through the development of policy and monitoring. The district, in partnership with the Mpumalanga Department of Economic Development, Environment and Tourism (DEDET), developed Environmental Management Plans for local municipalitalities. No capital projects were implemented. Municipal health services The District is issuing certificates of acceptability to all food-handling and food-processing facilities in line with regulation R918. The resources we have at our discposal enable us to cover 70% of the facilities that need licensing and monitoring. Food control The District has managed to conduct seven (7) compliances and monitoring inspections. The focus was to ensure compliance to Foodstuffs Cosmetics and Disinfectants Act. Only 75% of facilities were reached. Meat safety Compliance inspection and monitoring of illegal slaughtering has been completed in two local municipalities. Health surveillance of premises The District has been doing health compliance inspection on all daycare and old age facilities. A total of 80% of the registered facilities were inspected. The District does monthly inspections and follows up on complaints on nuisance control. The District has a pollutions hostspot database which contains some nuisances. No dog licenses were issued.

24 ANNUAL REPORT 2012-2013

CHAPTER 3 SERVICE DELIVERY PERFORMANCE

25 ANNUAL REPORT 2012-2013

Contents

27 Purpose 28 Executive summary 29 Departmental performance 29 Office of the Municipal Manager 30 Budget and Treasury 31 Corporate Services 32 Community and Social Services 33 Infrastructure and Technical Services 34 Planning and Economic Development 36 Limitations of evaluation 36 Challenges

26 ANNUAL REPORT 2012-2013

Purpose The purpose of this report is to give feedback regarding the performance of Gert Sibande District Municipality (GSDM) as per the Municipal Systems Act No.32 of 2000 and Municipal Finance Management Act No.52 of 2003. The information in this report is based on the IDP1 (Integrated Development Plan) and the SDBIP2 (Service Delivery and Budget Implementation Plan as developed for the financial year 2012-2013. The scorecards were developed to reflect cumulative performance, therefore the status of indicators are a reflection of the overall performance level achieved this year to date. This report is based on information received from each department for assessment of performance ending June 2013. This is a high-level report based on scores obtained through a process whereby actual information per Key Performance Area (KPA), strategic objective, programme and the aligned Key Performance Indicators and projects are compared to the budget and initial planning included in the 2012-2013 IDP. Overall performance for the GSDM is based on the departmental performance scorecard, which is inclusive of all the IDP, SDBIP, TAS and general indicators. Also included in this report are sub-sections that discuss the progress made in achieving the targets as detailed in each scorecard in terms of the contribution made by each department. This report serves as a summary of results. Results are presented in the form of scores as detailed below. They were calculated using an automated system and based on the guidelines contained in the Department of Provincial and Local Government (DPLG) Regulation 805, the Municipal Performance Regulations for Municipal Managers and Managers Directly Accountable to Municipal Managers, 2006. The scoring method utilised is as follows: Colour code

Scoring

%Target achieved

Rating

Score

Low

Unsatisfactory

1-1.99

0.0%

66%

66.6%

99.9%

Below average

2-2.99

High

Achieved target

3-3.99

100%

132%

Achieved/exceeded target

4-4.99

133%

166.9%

Outstanding

167.0%

NA â&#x20AC;&#x201C; Not applicable for reporting in reporting period (excluded from performance measurement) 0W â&#x20AC;&#x201C; Set to zero weighting (excluded from performance measurement) by the Department 1. Integrated Development Plan 2. Service Delivery and Budget Implementation Plan

27 ANNUAL REPORT 2012-2013

Executive Summary This report serves as the Annual Performance Report for the financial year 2012-2013 ending June 2013. It provides feedback on the performance level achieved to date against the targets as laid out in the IDP and SDBIP. The overall performance for the Gert Sibande District Municipality is based on the Departmental Performance Scorecard as this contains all of the indicators as included in the IDP, SDBIP and General Scorecards. At the end of the financial year, the overall accumulative performance level achieved was a below-target score of 2.49. A total of 147 KPIs and 23 projects encompassing the different scorecards contribute to the overall organisational score, four (4) KPIs were zero (0) weighted (excluded from performance measurement) and, therefore, do not carry a score. Of the remaining 143 KPIs, 81 (57%) achieved or exceeded target, and 62 (43%) were below target. Of the 23 projects, six (6) (26%) were on schedule in terms of the projected milestones and 17 (74%) were behind schedule. A summary of performance by scorecard is provided as per the table below. Gert Sibande District Municipality

Sept 12

Dec 12

Mar 13

Jun 13

Score Overall

2.52

2.17

2.37

2.49

IDP

3.89

2.94

3.00

2.79

SDBIP

2.38

2.10

2.31

2.44

Table: Overall Performance IDP and SDBIP

Jun 13

Gert Sibande District Municipality

Score Overall

2.49

KPA 1: Municipal Transformation and Organisational Development

2.35

KPA 2: Basic Service Delivery and Infrastructure Development

2.47

KPA 3: Local Economic Development

1.46

KPA 4: Municipal Financial Viability and Managment

2.95

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

2.59

KPA 6: Spatial Rationale and Municipal Planning Alignment

3.00

Table: Overall Performance per Key Performance Area

The IDP scorecard was below target with a score of 2.79. A total of 25 KPIs contribute to this scorecard. A total of fifteen (15) (60%) achieved target, and ten (10) (40%) were under target. The SDBIP scorecard was well below target with a score of 2.44. A total of 122 KPIs contribute to this scorecard, of which four (4) were zero weighted, thus having no impact on the overall SDBIP score. Of the remaining 118 indicators, sixty-six (66) (56%) achieved or exceeded target, fifty-two (52) (44%) were below target. A total of 23 projects contribute to this scorecard, six (6) (26%) achieved or exceeded set milestones, seventeen (17) (74%) were behind schedule.

28 ANNUAL REPORT 2012-2013

Departmental Performance The Departmental Performance Scorecard constitutes all of the KPIs and projects as contained in the IDP and SDBIP scorecards. This section of the report provides information on the contribution made by each department to the performance levels achieved for different scorecards, which in turn represents the overall performance level achieved by the municipality. The Gert Sibande District Municipality completed the financial year with an overall score of 2.49. A summary of the overall performance level achieved by each department is provided in the table below. Departmental Performance Overall Scores

Sept 12

Dec 12

Mar 13

Jun 13

Score Overall

2.52

2.17

2.37

2.49

Office of the Municipal Manager

3.17

2.64

2.62

2.57

Budget and Treasury

2.74

2.93

2.75

3.10

Corporate Services

2.81

2.52

2.41

Community and Social Services

2.07

1.57

2.42

2.59

Infrastructure and Technical Services

2.51

2.94

2.68

2.65

Planning and Economic Development

2.33

1.42

1.28

1.51

Table: Departmental Performance Overall Scores

Overall performance calculated by taking an average of all KPIs and project scores applicable to the GSDM. Overall departmental scores calculated by taking an average of all KPIs and project scores applicable to that department. The following summary sheets contain a breakdown of the Departmental performance:

Office of The Municipal Manager The office of the Municipal Manager is responsible for 31 KPIs which contribute to the overall performance level for the IDP and SDBIP scorecards and one (1) project that contributes to the SDBIP scorecard. Statistics for the department were as follows:

Departmental Performance Overall Scores Total KPIs

Applicable for reporting

Reporting purposes only

IDP

SDBIP

Scorecard

Set to zero weighting

Target achieved

Under target

Projects Scorecard SDBIP

Total projects 1

Applicable for reporting

Not applicable for reporting

Set to zero weighting

29 ANNUAL REPORT 2012-2013

On schedule -

Behind schedule 1

Office of The Municipal Manager The Department ended the financial year under target with an overall score of 2.57. A summary of performance by Key Performance Area (KPAs) is provided below:

Departmental Performance Office of the Municipal Manager

Sept 12

Dec 12

Mar 13

Jun 13

Score Overall KPA 1: Municipal Transformation and Institutional Transformation

3.28

2.66

2.62

2.57

2.50

2.25

2.63

2.30

1.00

KPA 2: Basic Service Delivery KPA 4: Municipal Financial Viability and Management

3.00

1.97

2.11

3.23

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

4.33

3.75

2.78

2.66 3.00

KPA 6: Spatial Rational and Municipal Planning Alignment Table: Summary Performance â&#x20AC;&#x201C; Office of the Municipal Manager

The IDP Scorecard was below target with a score of 2.66. A total of 6 KPIs contribute to this scorecard, two (33%) achieved target, and four (67%) were under target. The SDBIP scorecard was below target with a score of 2.55. A total of 25 KPIs contribute to this scorecard, of which one (1) was zero weighted at year-end. Of the remaining 24, sixteen (67%) achieved target, and eight (33%) were below target. One project contribute to this scorecard, of which the quarterly milestones were behind schedule.

Budget and Treasury The Budget and Treasury Department is responsible for 20 KPIs, which contribute to the overall performance level for the IDP and SDBIP scorecards and three (3) projects that contribute to the SDBIP scorecard. Statistics for the department were as follows:

Departmental Performance Overall Scores Scorecard

Total KPIs

Applicable for reporting

Reporting purposes only

Set to zero weighting

Target achieved

Under target

IDP

SDBIP

Set to zero weighting

On schedule

Projects Scorecard SDBIP

Total projects 3

Applicable for reporting 3

Not applicable for reporting -

30 ANNUAL REPORT 2012-2013

Behind schedule 1

Budget and Treasury The Department ended the financial year marginally over target with an overall score of 3.10. A summary of performance by Key Performance Area is provided below:

Sept 12

Departmental Performance Budget and Treasury

Dec 12

Mar 13

Jun 13

Score Overall perfomance

2.45

3.00

2.75

3.10

KPA 4: Municipal Financial Viability and Management

2.77

2.87

2.83

3.17

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

2.13

3.13

2.33

2.85

Table: Summary Performance â&#x20AC;&#x201C; Budget and Treasury

The IDP scorecard exceeded target with a score of 4.00. A total of two (2) KPIs contribute to this scorecard, both achieving target by the end of the financial year. The SDBIP scorecard was marginally over target with a score of 3.01. A total of 18 KPIs contribute to this scorecard, 14 (78%) achieved target, and four (22%) were below target. A total of three (3) projects contribute to this scorecard, of which two reached their quarterly milestone and one was behind schedule.

Corporate Services The Corporate Services Department is responsible for 23 KPIs, which contribute to the overall performance level for the IDP and SDBIP scorecards and three (3) projects, which contribute to the SDBIP scorecard. Statistics for the department were as follows: Key performance indicators Scorecard

Total KPIs

Applicable for reporting

Reporting purposes only

Set to zero weighting

Target achieved

Under target

IDP

SDBIP

Projects Scorecard SDBIP

Total projects 3

Applicable for reporting 3

Not applicable for reporting

Set to zero weighting

31 ANNUAL REPORT 2012-2013

On schedule 0

Behind schedule 3

Corporate Services The Department ended the financial year significantly underperforming with an overall score of 2.41. A summary of performance by Key Performance Area is provided below:

Sept 12

Departmental Performance Corporate services

Dec 12

Mar 13

Jun 13

Score Overall perfomance KPA 1: Municipal Transformation and Institutional Transformation

2.70

2.61

2.41

2.61

2.76

2.35

2.37

1.00

KPA 3: Local Economic Development KPA 4: Municipal Financial Viability and Management

3.00

2.08

2.57

2.34

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

2.50

3.00

2.74

Table: Summary Performance â&#x20AC;&#x201C; Corporate Services

The IDP scorecard was well below target with a score of 2.34. A total of four (4) KPIs contribute to this scorecard, of which two (50%) achieved target, and two (50%) were under target. The SDBIP Scorecard was well below target with a score of 2.42. A total of 19 KPIs contribute to this scorecard, of which nine (47%) achieved target, and ten (53%) were below target. A total of three (3) projects contribute to this scorecard of which all three were behind schedule.

Community and Social Services The Community and Social Services Department is responsible for 40 KPIs, which contribute to the overall performance level for IDP and SDBIP scorecards and three (3) projects, which contribute to the SDBIP scorecard. Statistics for the department were as follows: Key performance indicators Scorecard

Total KPIs

Applicable for reporting

Reporting purposes only

Set to zero weighting

Target achieved

Under target

IDP

SDBIP

Not applicable for reporting

Set to zero weighting

On schedule

Projects Scorecard SDBIP

Total projects 3

Applicable for reporting 3

32 ANNUAL REPORT 2012-2013

Behind schedule 2

Community and Social Services The Department ended the financial year under target, with an overall score of 2.59. A summary of performance by Key Performance Area is provided below:

Sept 12

Departmental Performance Community and Social Services

Dec 12

Mar 13

Jun 13

2.42

2.59

2.36

2.52

Score Overall perfomance

2.15

KPA 2: Basic Service Delivery

1.51

1.74

1.46

KPA 3: Local Economic Development

1.67

KPA 4: Municipal Financial Viability and Management

2.74

1.31

1.95

2.91

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

2.44

2.11

2.83

2.88

1.17

Table: Summary Performance â&#x20AC;&#x201C; Community and Social Services

The IDP scorecard was well below target with a score of 3.00. A total of five (5) KPIs contribute to this scorecard, of which all five (100%) achieved target. The SDBIP scorecard was below target with a score of 2.53. A total of 35 KPIs contribute to this scorecard, of which two (2) were zero weighted at the end of the financial year. Of the remaining 33, 21 (64%) achieved target, and 12 (36%) were below target. A total of three (3) projects contribute to this scorecard, of which one reached its quarterly milestones, and two were behind schedule.

Infrastructure and Technical Services The Infrastructure and Technical Services Department is responsible for 20 KPIs and three (3) projects which contribute to the overall performance level for the general, IDP and SDBIP scorecards. The departmentâ&#x20AC;&#x2122;s statistics were as follows: Key performance indicators Scorecard

Total KPIs

Applicable for reporting

Reporting purposes only

Set to zero weighting

Target achieved

Under target

IDP

SDBIP

On schedule

Behind schedule

Projects Scorecard SDBIP

Total projects 3

Applicable for reporting 3

Not applicable for reporting

Set to zero weighting

33 ANNUAL REPORT 2012-2013

Infrastructure and Technical Services The Department ended the financial year under target, with an overall score of 2.65. A summary of performance by Key Performance Area is provided below:

Sept 12

Departmental Performance Infrastructure and Technical Services

Dec 12

Mar 13

Jun 13

Score Overall perfomance KPA 2: Basic Service Delivery

2.47

2.77

2.68

2.65

3.29

3.15

2.65

KPA 3: Local Economic Development

3.67

KPA 4: Municipal Financial Viability and Management

1.77

2.01

1.83

2.52

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

3.00

2.00

Table: Summary Performance â&#x20AC;&#x201C; Infrastructure and Technical Services

The IDP scorecard was well below target, with a score of 2.58. A total of six (6) KPIs contribute to this scorecard, two (33%) achieved target, and four (67%) were under target. The SDBIP scorecard was below target, with a score of 2.67. A total of 14 KPIs contribute to this scorecard, of which five (36%) achieved target, and nine (64%) were below target. A total of three (3) projects contribute to this scorecard, of which all three reached their quarterly milestones.

Planning and Economic Development The Planning and Economic Development Department is responsible for 13 KPIs, which contribute to the overall performance level for the IDP and SDBIP scorecards and 10 projects that contribute to the SDBIP scorecard. Statistics for the department were as follows:

Key performance indicators Scorecard

Total KPIs

Applicable for reporting

Reporting purposes only

Set to zero weighting

Target achieved

Under target

IDP

SDBIP

On schedule

Behind schedule

Projects Scorecard SDBIP

Total projects 10

Applicable for reporting 10

Not applicable for reporting

Set to zero weighting

34 ANNUAL REPORT 2012-2013

Planning and Economic Development The Department ended the financial year having underperformed significantly, with an overall score of 1.51. A summary of performance by Key Performance Area is provided below:

Sept 12

Departmental Performance Planning and Economic Development

Dec 12

Mar 13

Jun 13

1.28

1.51

Score Overall perfomance

2.00

1.58

KPA 2: Basic Service Delivery

2.00

KPA 3: Local Economic Development

1.00

1.15

1.00

1.15

KPA 4: Municipal Financial Viability and Management

3.00

1.97

2.15

2.46

KPA 5: Intergovernmental Relations, Good Governance and Public Participation

2.00

1.63

1.60

1.56

KPA 6: Spatial Rational and Municipal Planning Alignment

3.00

Table: Summary Performance â&#x20AC;&#x201C; Planning and Economic Development

The IDP scorecard was below target with a score of 3.00. A total of two KPIs contribute to this scorecard, both of which achieved target. The SDBIP scorecard was well below target, with a score of 1.36. A total of 11 KPIs contribute to this scorecard, of which one (1) was zero weighted at the end of the financial year. Of the remaining 10, one (10%) achieved target, and nine (90%) were below target. A total of 10 projects contribute to this scorecard. All 10 were behind schedule.

35 ANNUAL REPORT 2012-2013

Limitations of evaluation

• • • • •

The analysis contained in this report was based on information received until June 2013. Where no information was supplied, a 1.00 score was attached. The automated system designed for the Gert Sibande District Municipality’s Performance Management System requirements was used to capture and calculate scores. Any errors made in terms of incorrect data, formats or capturing into incorrect fields will have a direct impact on the final scores. All budget-related data must be verified against the Municipal Financial System. Values input into the Performance Management System (PMS) should be cumulative expenditure figures to give a true reflection of the actual performance. Achievements reported in this document reflect the input received from the respective departments. The supporting Portfolio of Evidence (POE) was acquired by the PMS Department to substantiate the achievements reported on. The scorecard remain the responsibility of the respective KPI owners and in no way does the PMS Unit accept responsibility for the adequacy and relevance of KPI instructions and POE.The PMS Unit’s functions are limited to the coordination of the compilation of the Annual Performance Report and to calculate overall scores achieved in line with the approved rating scale applied by the GSDM.

Challenges • •

Departments are not using the performance management system in its intended role i.e to make informed decisions in areas of underperformance. Departmental input, although presently provided with respect to corrective intervention measures to be implemented, can still be further enhanced to ensure that they are effective.

36 ANNUAL REPORT 2012-2013

CHAPTER 4 ORGANISATIONAL DEVELOPMENT PERFORMANCE

37 ANNUAL REPORT 2012-2013

ORGANISATIONAL DEVELOPMENT PERFORMANCE 1. Approved Organisational Structure (Refer to Appendix C) 2. Skills Development and Training CORPORATE SERVICES TRAINING 2012-2013 NAME

COURSE

DATE ATTENDED

CL Zwane KG Choenyane

PAs, Secretaries and Senior Secretaries Skills Programme 10-14 December 2012

S Lekalake LE Phenyane F Mosakeng N Sarang S Zondo First Aid Certificate

ST Ndlovu

27 November 2012

TP Mahlangu TT Mbuli ST Ndlovu

CL Zwane

FT Khuzwayo

Quality Management Systems

S Mthinto

12-13 September 2012

TT Mbuli

SE Zondo

SE Mabila CSS DEPARTMENT TRAINING 2012-2013 NAME

COURSE

DATE ATTENDED

MD Famo S Peens IM Dladla J Dunn E Van der Merwe NP Lukele

Environmental Impact

38 ANNUAL REPORT 2012-2013

19 20 July 2012

ORGANISATIONAL DEVELOPMENT PERFORMANCE CORPORATE SERVICES TRAINING 2012-2013 NAME

COURSE

DATE ATTENDED

J G Williams M Prinsloo Environmental Impact

J Brits

19-20 July 2012

QR Madi TD Hlanyane MD Famo

SAMTRAC First Aid Certificate

CKB Mkhwanazi

First Aid Certificate

24-26 October 2012 27 November 2012 27 November 2012

ITS DEPARTMENT TRAINING 2012-2013 NAME M Wells

COURSE Wastewater Collection System Design and Construction

M Mahlangu

PAs, Secretaries and Senior Secretaries Skills Programme

N Manyaka

NOSA Auditor

DATE ATTENDED 3 -4 December 2012

12-16 November 2012

12-13 September 2012 22-26 October 2012

First Aid Certificate

27 November 2012

SE Mathebula

First Aid Certificate Tender Process: From Preparation to Evaluation Quality Management Systems

27 November 2012 24 October 2012 12-13 September 2012

5 GSDM Laboratory Staff Members

Laboratory Information System Administrator Training

01-05 October 2012

General Conditions of Contract 2010

02-03 August 2012

NC Ndhlovu

B Malebye

Atomic Emission (ICP) Course

39 ANNUAL REPORT 2012-2013

2 -6 July 2012

ORGANISATIONAL DEVELOPMENT PERFORMANCE

FINANCE DEPARTMENT TRAINING 2012-2013 NAME

COURSE

DATE ATTENDED 27 November 2012

L Shabangu

First Aid Certificate Quality Management Systems

12-13 September 2012

Quality Management Systems

12-13 September 2012

AY Singh

SAICA

2 May 2012-3 July 2013

VRM Matlala

SAICA

2 May 2012-3 July 2013

CJ Prinsloo

SAICA

2 May-September 2012

WOW Group Training

16-30 July 2012

ND Makhubela

LP Nzimande

ITS DEPARTMENT TRAINING 2012-2013 NAME M Wells

COURSE Wastewater Collection System Design and Construction

40 ANNUAL REPORT 2012-2013

DATE ATTENDED 3-4 December 2012

Gert Sibande District Municipality 2012-2013 ANNUAL PERFORMANCE REPORT

41 ANNUAL REPORT 2012-2013

CHAPTER 5 FINANCIAL PERFORMANCE

42 ANNUAL REPORT 2012-2013

Financial Performance FINANCIAL HEALTH OVERVIEW – MATERIAL SALIENT FEATURES The management of the financial affairs of the District Municipality has over the last thirteen (13) financial years been undertaken in an effective and efficient manner and consequently, the audit opinion achieved for twelve (12) of those years was an unqualified opinion. In addition, in the 2011-2012 financial year, a clean audit - with no material matters of emphasis in the audit report - was achieved. Based on the previous track record, the yearly financial results obtained, helped maintain the financial stability of the GSDM. The District Municipality’s performance during the 2012-2013 financial year relating to service delivery within the GSDM area of jurisdiction was deemed satisfactory. Also, the financial results for the 2012-2013 financial year illustrate the District Municipality’s commitment in supporting the seven local municipalities in addressing their service delivery backlogs and challenges owing to the limited financial resources these municipalities experienced. As a result of the appropriate management of the financial resources, the District was able to achieve expenditure targets of approximately 65% of its approved 2012-2013 adjustment budget. FINANCIAL MODELLING TECHNIQUES AND KEY PLANNING DRIVERS ADOPTED IN 2012-2013 FINANCIAL YEAR In the compilation of the 2012-2013 IDP Budget and MTREF three-year planning period, it must be noted that this budget was rated as a credible quantitative and qualitative document by the National and Provincial Treasury. Furthermore, it must be noted that in the preparation of these financial estimates, the zero budgeting technique was adopted and extensive financial modelling was undertaken to ensure that affordability will be maintained on a long-term financial viability basis, with external funding being included in the budget estimates. In addition, the following key factors/planning strategies were adopted in the compilation of the 2012-2013 MTREF Budget: • • • • • • •

Policy priorities and strategic objectives in terms of National Treasury Budgetary Guidelines – MFMA Circular No.59 Asset maintenance programmes Economic climate and inflationary trends over a three-year period Performance trends over a three-year period Approved 2012-2013 adjustment budget and performance against the SDBIP and cashflow management strategies Loan and investment possibilities Improved and sustainable service delivery

INCOME EARNINGS FOR THE 2012-2013 FINANCIAL YEAR The District Municipality received approximately R273.8-million grant income in terms of DoRA allocations. Additional income includes interest on investments, rental, car wash revenue, tender deposits, etc., that was generated by the District Municipality on the day-to-day activities and this amounted to approximately R6.8 million.

Equitable share = R17.4m FMG Grant = R1.25m MSIG Grant = R1m EPWP Grant = R1m Revenue Replacement Grant = R235.5m DWA Grant = R17.7m

43 ANNUAL REPORT 2012-2013

Financial Performance FINANCING OF CAPITAL, PROJECTS AND OPERATING EXPENDITURE The Grant funding income that was received was applied towards meeting the following related expenditure: • • • • •

Project expenditure (direct and departmental allocations) Operating expenditure Capital expenditure Repairs and maintenance Operation Clean Audit Programme – Assistance to Local Municipalities

Rm 94.0 119.2 19.9 2.2 2.5

120 100 80 60 Series 1

40 20 0

Included in the operating expenditure are the salaries and wages expenditure amounting to R62.8-million. The number of employees that were on the payroll as of 30 June 2013 was 210 and the percentage of the salaries and wages budget to the total expenditure was approximately 21%, which is well within the acceptable scale of 35%. Included in the capital expenditure of R19.9-million is expenditure relating to the office complex and alterations amounting to R5.4-million and expenditure relating to disaster centres at Mkhondo, Dipaleseng and Albert Luthuli LMs amounting to R9.6-million. During the year under review, there was a carry-over of multi-year projects expenditure in the 2013-2014 financial year and this amounted to R40.1-million. With regards to the laboratory, accreditation is being obtained and it is anticipated that once the laboratory is awarded its autonomous status then tariff income may be earned on water quality review tests undertaken on behalf of local municipalities. FINANCIAL HEALTH BASED ON ACTUAL PERFORMANCE DURING THE YEAR In terms of the unaudited 2012-2013 Statement of Financial Performance, the financial viability of the District Municipality appears to be satisfactory as the Council is awaiting the proceeds on the sale of the Secunda building, thereby ensuring that Council meets its short- and medium-term commitments. Also, in terms of the 2012-2013 adjustment budget, Council approved the securing of an additional loan facility amounting to R30-million from a recognised financial institution in order to meet its medium- and long-term obligations. Because funding was not received timeously on the sale of the building as well as the proposed loan income not being applied for, the current ratio predicts the liquidity, which was as follows: Current Assets R71.5m 1.04

Current Liabilities R68.9m 1

As observed, the Current Asset ratio is almost equal to the Current Liabilities and hence it is imperative that there is a cash injection of funds in terms of the proposed loan income/proceeds on sale of the Secunda building that will ensure that the District will be able to meet its short- and medium-term financial obligations.

44 ANNUAL REPORT 2012-2013

Financial Performance ASSISTANCE TO LOCAL MUNICIPALITIES Actual expenditure: direct allocations - 2012-2013 Financial Year Electricity Water Sanitation Roads Operation & maintenance support Other

R2 477 936 R47 711 164 R21 585 754 R9 196 069 R9 550 060 R3 893 900 R94 414 883

2.62% 50.53% 22.86% 9.74% 10.11% 4.12% 100%

New Budget Requested Direct Allocations - 2012-2013 Financial Year 3893900, 4.12% 24779362.62%

ELECTRICITY WATER SANITATION ROADS OPERATION & MAINTAINANCE SUPPORT OTHER

In this regard, the overall project target achieved was pegged at 65% and consequently, service delivery targets were reached satisfactorily. Operation Clean Audit Programme During the 2012-2013 financial year and in terms of the Operation Clean Audit Programme, the District had commenced a programme to assist Dr Pixley Ka Isaka Seme and Mkhondo local municipalities to ensure that these municipalities address all adverse findings of the Auditor-General received in the 2011-2012 financial year. Also, the assistance was intended to ensure that these local municipalities do not regress in terms of the Auditor-General’s audit opinion for the financial year 2012-2013. The overall assistance provided to these municipalities was as follows: • Performed bank recons and processing of journals for unrecorded deposits etc. • Reconciled trade and other receivables. • Performed reconciliations on VAT, leave pay provisions, interest income, service charges, grant income, payroll, bulk purchases and year-end capital and operating commitments. • Assisted in the compilation and review of the organograms. • Undertook extensive audit work relating to Supply Chain Management activities.

45 ANNUAL REPORT 2012-2013

Financial Performance DEPARTMENTAL ALLOCATIONS OF EXPENDITURE Outlined graphically below, are expenditure levels that were incurred in the various departments which are further highlighted below providing details under each respective department: DEPARTMENTAL ALLOCATIONS 2012-2013 Series 1 Department of Human Settlement Department of Community and Social Services

0.5 4

Department of Planning and Economic Development

6.9

Department of Infrastructure and Technical Services

Department of Corporate Services Department of Finance

2.9 3

Office of the Municipal Manager

2.6

Office of the Executive Mayor

1.3

The material expenditure in the respective departments is as follows: Department – Office of the Executive Mayor The main expenditure outlaid relates to the co-ordination of HIV-Aids which amounted to R0.25-million. Moveover, with regards to the Youth and Women Development expenditure incurred amounted to R0.4-million and other related expenditure amounted to R0.6-million. Department – Planning and Economic Development The material expenditure incurred for the Phezukomkhono job creation initiative for the seven municipalities amounted to R4.1-million. Other material expenditure relating to the LED Tourism and Agriculture amounted to R1.1-million while IDP and Regional Planning amounted to R0.58-million and Rural and Agri Development were R1-million. Department – Infrastructure and Technical Services The material departmental expenditure for Management Information System/Bulk Water Meters amounted to R1.1-million, Comprehensive Infrastructure Plans amounted to R0.3-million and the Centralised Project Management Unit costs for LMs-MIG amounted to R1-million. Also, with regards to infrastructural projects undertaken on behalf of the LMs, including the RBIG, funding amounted to R94.3-million. Department – Corporate Services The material expenditure related to Bursaries amounted to R0.7-million, Data Cleansing/IT amounted to R0.2-million and Capacity Building and Community Participation amounted to R2-million. Department – Community and Social Services The material expenditure related to Culture, Sports and Recreation amounted to R1-million, Municipal Health/Public Awareness Water Conservation amounted to R1-million, GSDM Marathon amounted to R0.7-million and Regional Library, Information Systems amounted to R0.4-million and Mayoral Excellence Awards amounted to R8.6-million. Department – Financial Services The material expenditure related to assistance provided to local municipalities with regards to Operation Clean Audit, which amounted to R2.5-million while Emergency Contingencies amounted to R0.5-million.

46 ANNUAL REPORT 2012-2013

Financial Performance Department – Office of the Municipal Manager The material expenditure related to the Promotion of the District amounted to R1.7-million and Traditional Affairs amounted to R1-million. Department – Human Settlements The material expenditure related to Disaster Management amounted to R0.5-million. INVESTMENTS OF UNSPENT COMMITTED FUNDING During the course of the financial year, the funding allocations received from National Treasury, which were provided in tranches amounting to approximately R273.8-million, were initially invested with major banking institutions and interest earnings that were gained during the financial year amounted to R3.3-million. ASSET MANAGEMENT, INFRASTRUCTURE INVESTMENT AND FUNDING POLICY At the end of the 2012-2013 financial year, a comprehensive asset verification process was undertaken. This took into consideration assets in the custody of all heads of departments/accounting officers. Assets were depreciated according to their lifespans, and impairment strategies were adopted in order to ensure that investment on each of these assets is preserved, thereby ensuring the future sustainability of the infrastructure and the District Municipality’s revenue base. Within the same framework, a need for asset renewal was considered a priority. SUPPLY CHAIN MANAGEMENT ACTIVITIES The Supply Chain Management Activities being in its first year of centralisation is manned by key staff members as well as staff still going through procurement training to ensure that they are able to undertake their duties in a satisfactory manner. Also, a Supply Chain Management policy and procedures document was handed out to staff members to ensure that all procurement of goods and services is carried out according to Supply Chain Management regulations. Also, during the financial year, numerous directives were issued to the SCM officials. The directives were intended to enhance internal control procedures, thereby minimising fruitless, wasteful, irregular and unauthorised expenditure. The Supply Chain Management policy document was amended and tabled at a respective Council meeting. CASHBACK RESERVES/ACCUMULATED SURPLUS In compiling the 2012-2013 budget, the Council had included in its income estimates a loan of R30-million and a further R30-million. Both loan amounts related to the sale proceeds of the Secunda business premises. It is understood that the R30-million sale proceeds were to be received in the 2012-2013 financial year. However, owing to outstanding legal issues that are being finalised, e.g. the rezoning of property, proceeds are likely to be received in the 2013-2014 financial year.

47 ANNUAL REPORT 2012-2013

CHAPTER 6 AUDITOR-GENERAL’S FINDINGS

48 ANNUAL REPORT 2012-2013

APPENDICES

49 ANNUAL REPORT 2012-2013

Appendice A AUDIT COMMITTEE, CHAIRPERSON’S REPORT We are pleased to present our report for the financial year ended 30 June 2013. 1. Audit Committee Members and Attendance In terms of the Municipal Finance Management Act (MFMA) and the Gert Sibande District Municipality’s Audit Committee Charter, the Audit Committee must consist of a minimum of 3 members who must be external independent members. None of the members may be Councillors. The Audit Committee consists of the members listed hereunder and meets at least 4 times per annum as per its approved Charter. There were 5 meetings held during the current financial year, which included special meetings Name of member

Number of meetings attended

Mr. Cassim Mohamed (Chairperson)

5/5

Mr. M Mothamaha Prof. L de Clercq Ms. T. Njozela Mr. P. Venter

5/5 5/5 1/5 2/5

2. Audit Committee’s Responsibilities The Audit Committee’s responsibilities are outlined in Section 166(2)(b) of the Municipal Finance Management Act (No 56 of 2003). The Audit Committee has adopted appropriate formal Terms of Reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein. A summary of the Audit Committee’s responsibilities in terms of the MFMA and its Charter is, that it is responsible for, among other things, the following: • Advise the municipal council, the political office bearers, the accounting officer and the management staff of the municipality on matters relating to – i) ii) iii) iv) v) vi) vii) viii) ix) • • •

internal financial control and internal audits; risk management; accounting policies; the adequacy, reliability and accuracy of financial reporting and information; performance management; effective governance; compliance with this Act, the annual Division of Revenue Act and any other applicable legislation; performance evaluation; and any other issues referred to it by the municipality; Review the Annual Financial Statements of the municipality; Respond to the council on any issues raised by the Auditor-General in the audit report; Carry out such investigations into the financial affairs of the municipality as requested by council.

The Audit Committee is satisfied that it has complied with its responsibilities and has discharged them adequately and efficiently. 3. The Effectiveness of Internal Controls The system of controls is designed to provide cost-effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. In line with the MFMA and the King 3 Report on Corporate Governance requirements, Internal Audit provides the Audit Committee and management with assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. From the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements, the matters of emphasis and management letter of the Auditor-General, it was noted that there was significant or material non-compliance with the prescribed policies and procedures in the Supply Chain Management Unit. Accordingly, we can report that the

50 ANNUAL REPORT 2012-2013

Appendice A system of internal control for the period under review was effective except for the Supply Chain Management Unit. The Audit Committee is satisfied with the internal controls in place and overall adherence to those controls except for the Supply Chain Management Unit. 4. Internal Audit Function Internal Audit is an independent directorate at the Municipality and forms a significant part of governance within the District. Internal Audit is mandated to provide independent, objective assurance and consulting services, geared towards adding value and improving the Municipality’s operations. Internal Audit plans are informed by the District’s strategy and risks and its staff is well qualified and experienced to ensure the necessary competence to meet the Municipality’s diverse requirements. During the 2012/13 financial year, Internal Audit provided assurance regarding the adequacy and effectiveness of controls in the business processes of the Municipality and contributed to further strengthening the governance mechanisms within the Municipality by providing quality reports, which the Audit Committee used to effectively exercise its oversight responsibility, in terms of its Charter. The Audit Committee is satisfied with the performance of the Internal Audit Function and reports that internal audit work as detailed in the Operational Internal Audit Plan was completed by the end of the financial year. 5. Evaluation of the Annual Financial Statements The Audit Committee has: • Reviewed and discussed with the Auditor-General and the Accounting Officer the audited Annual Financial Statements to be included in the Annual Report; • Reviewed the Auditor-General’s management letter and management responses; • Reviewed the accounting policies and practices; • Evaluated the audited Annual Financial Statements to be included in the Annual Report, and based on the information provided to the Audit Committee, considered that the said statements comply in all material respects with the requirements of the MFMA and Treasury Regulations as well as South African Statements of Generally Recognised Accounting Practice (GRAP); • Concurred and accepted the conclusions of the Auditor-General on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General; 6. Performance Management and Information The Committee reviewed the quarterly performance reports and the quarterly internal audit reports on the Performance Management System and Performance Information. Based on the review of the quarterly performance reports certain areas requiring improvement were noted. These matters are included in the Municipality’s Internal Audit Reports on the Performance Management System and Performance Information. Although certain aspects require improvement the Committee noted that systems and procedures have been implemented by the Municipality to ensure monitoring of organisational performance. 7. Conclusion I would like to thank my colleagues for making themselves available to serve on this Committee and for the significant contribution that they have made. As an Audit Committee, we rely to a great extent on the Internal Audit Unit for their support and assistance and, in particular for the role they continue to play in improving the accounting and internal auditing systems and controls at the Gert Sibande District Municipality. We are indebted to them for their efficient service and assistance. We are also grateful to the Municipal Manager and the management of the Gert Sibande District Municipality for their assistance during the financial year. C Mohammed, Chairperson: Audit Committee

51 ANNUAL REPORT 2012-2013

Appendice B TERMS OF REFERENCE FOR RULES AND ETHICS COMMITEE AND BY LAWS AND POLICIES COMMITTEE 1. New matters for discussion 1.1 Adoption of the terms of reference for rules and ethics committee resolved: 1. 2. 3. 4.

To consider draft rules, order and procedures for proceedings. To develop rules, order and procedures for the management of Council caucus To review the existing orders and rules. To consider matters falling within its TOR as set out below and give direction to the Mayoral Committee and Council in respect of the matters. 5. To investigate processes and procedure to facilitate efficient and expeditious carrying out of the work of council and committees where difficulties are found to exist 6. To ensure that all standing orders and other matters of a procedural nature are complied with by council and its committees. 7. To consult with committee chairpersons where necessary to ensure the smooth running of the committees. 8. To consider and make recommendations for the resolution disputes where such may occur. 9. To interpret and give guidance on the standing orders where dispute occurs as to the meaning or interpretation. 10. That all officials be informed to attend all section 79 committee meetings. 1.2 Adoption of the terms of reference for by laws and policies committee resolved 11. Oversee and report to the Council on: • Any matters not otherwise delegated in terms of existing or future Delegated Powers. • The review of all bylaws and recommend amendments, if any required thereto, for application in the Council’s area of jurisdiction. • Areas of responsibilities which require the adoption of bylaws where no such bylaws exist and thereafter to attend to all the processes necessary to enable the Council to adopt the bylaws required. 12. Bylaws Integration: • May perform any duties and exercise any powers delegated to it by the Council in terms of Section 59 of the Local Government Municipal Systems Act. • Report to the Council in accordance with the directions of the Council • May appoint a subcommittee with powers to co-opt such other members as it may deem fit to consider and report on any matter falling within the terms of reference of the committee. • May refer to the Council for decision with or without a recommendation any matter in which the committee is entitled to exercise any power • May consider and make recommendations on all matters of a policy nature incidental to the above

52 ANNUAL REPORT 2012-2013

Appendice C

Contents 54

POLITICAL STRUCTURE

ADMINISTRATION TOP MANAGEMENT

OFFICE OF THE MUNICIPAL MANAGER

CORPORATE SERVICES - TOP STRUCTURE

CORPORATE SERVICES - ADMINISTRATION

CORPORATE SERVICES - LEGAL SERVICES

CORPORATE SERVICES - COUNCIL SUPPORT

CORPORATE SERVICES - ICT

COMMUNITY & SOCIAL SERVICES- TOP STRUCTURE

COMMUNITY & SOCIAL SERVICES - SOCIAL DEVELOPMENT

COMMUNITY & SOCIAL SERVICES - MUNICIPAL HEALTH

FINANCIAL SERVICES - TOP STRUCTURE

FINANCIAL SERVICES - SCM

FINANCIAL SERVICES - BUDGET & TREASURY

FINANCIAL SERVICES - FINANCIAL MANAGEMENT & MUNICIPAL SUPPORT

HUMAN SETTLEMENTS, PUBLIC SAFETY, ROADS & TRANSPORT

PLANNING & ECONOMIC DEVELOPMENT

INFRASTRUCTURE & TECHNICAL SERVICES - TOP STRUCTURE

INFRASTRUCTURE & TECHNICAL SERVICES

INFRASTRUCTURE & TECHNICAL SERVICES - SCIENTIFIC SERVICES

53 ANNUAL REPORT 2012-2013

Appendice C POLITICAL STRUCTURE

COUNCIL

SPEAKER

CHIEF WHIP

EXECUTIVE MAYOR

CHAIRPERSONS SECTION 79 COMMITTEES (FULL-TIME COUNCILLORS)

MAYOR COMMITTEE

MUNICIPAL MANAGER

CORPORATE SERVICES COMMUNITY & SOCIAL SERVICES FINANCIAL SERVICES INFRASTRUCTURE & TECHNICAL SERVICES HUMAN SETTLEMENTS & PUBLIC SAFETY PLANNING & ECONOMIC DEVELOPMENT MAYORAL COMMITTEE PORTFOLIO

ADMINISTRATION TOP MANAGEMENT

MUNICIPAL MANAGER

GENERAL MANAGER CORPORATE SERVICES

GENERAL MANAGER COMMUNITY & SOCIAL SERVICES

CHIEF FINANCIAL OFFICER

GENERAL MANAGER HUMAN SETTLEMENTS, PUBLIC SAFETY, ROADS & TRANSPORT

GENERAL MANAGER INFRASTRUCTURE & TECHNICAL SERVICES

VACANT

54 ANNUAL REPORT 2012-2013

GENERAL MANAGER PLANNING & ECONOMIC DEVELOPMENT

FILLED

PROPOSED

Appendice C OFFICE OF THE MUNICIPAL MANAGER

MUNICIPAL MANAGER

EXECUTIVE SECRETARY

SENIOR MANAGER INTERNAL AUDIT & RISIK MGT

MANAGER OFFICE OF THE MM

MANAGER PMS

ADMIN OFFICER PMS CHIEF RISK OFFICER

SENIOR INTERNAL AUDITOR

AUDIT CLERK

CORPORATE SERVICES - TOP STRUCTURE

GENERAL MANAGER CORPORATE SERVICES

EXECUTIVE SECRETARY CS

SENIOR MANAGER ADMINISTRATOR & HR SERVICES

SENIOR MANAGER LEGAL SERVICES

SENIOR MANAGER COUNCIL SUPPORT

SENIOR MANAGER ICT

VACANT

55 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C CORPORATE SERVICES - ADMINISTRATION

SENIOR MANAGER ADMINISTRATION & HR SERVICES

ADMIN OFFICER

MANAGER RECORDS

MANAGER AUXILIARY SERVICES

SENIOR FLEET MANAGEMENT OFFICER

SUPERVISOR BUILDING MAINTENANCE

SENIOR ADMNI OFFICER AUX

SENIOR OHS OFFICER

2X SWITCHBOARD OPERATORS/ RECEPTIONISTS

HANDYMAN 48X GENERAL ASSISTANTS 36V

LR SPECIALIST SENIOR COMMITTEE OFFICER

ADMINOFFICER TENDERS

INTERNAL SAFETY OFFICER

CARETAKER

MANAGER HR

CHIEF SDF

4X DRIVER/ MESSANGERS 1V

2X HORTICULTURISTS

MANAGER COMMITTEES

2X MESSANGERS

2X RECORDS & REGISTRY CLERK

HR OFFICER

LR OFFICER

2X COMMITTEE OFFICERS 1V

3X ASSIST HR OFFICERS 2V

REPROGRAPHIC OFFICER

CORPORATE SERVICES - LEGAL SERVICES

SENIOR MANAGER LEGAL SERVICES

LEGAL ADVISOR MHS

LEGAL OFFICER

VACANT

56 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C CORPORATE SERVICES - COUNCIL SUPPORT

OFFICE OF THE EXECUTIVE MAYOR

SENIOR MANAGER COUNCIL SUPPORT

OFFICE OF THE SPEAKER

MANAGER OFFICE OF THE SPEAKER

OFFICE OF THE CHIEF WHIP

MANAGER OFFICE OF THE EXECUTIVE MAYOR

RESEARCHER

SENIOR ADMIN OFFICER COUNCIL SUPPORT

PUBLIC PARTICIPATION COORDINATOR

PA TO THE SPEAKER

OFFICE OF THE EXECUTIVE MAYOR

OFFICE OF THE MMC

MANAGER COMMUNICATIONS

SPOKESPERSON

SENIOR COMMUNICATIONS OFFICER

EXECUTIVE PA TO THE EM

SECRETARY CHIEF WHIP

PHOTOGRAPHER

EXECUTIVE SECRETARY TO THE EM

OUTREACH OFFICER

EXECUTIVE SECRETARY SPEAKER

SECRETARY MMC 2X MAYORAL AIDES

ADMIN CLERK

2X SECRETARY SEC 79

RESEARCHER

VIP PROTECTION

CORPORATE SERVICES - ICT SENIOR MANAGER ICT

NETWORK & SECURITY SPECIALIST 2X

SYSTEMS ADMINISTRATOR

ICT TECHNICIANS 1V

2X JUNIOR ICT TECHNICIANS

HELP DESK

VACANT

57 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C COMMUNITY & SOCIAL SERVIVICES - TOP STRUCTURE

GENERAL MANAGER COMMUNITY & SOCIAL SERVICES

EXECUTIVE SECRETARY CSS SENIOR MANAGER SOCIAL DEVELOPMENT SENIOR MANAGER MUNICIPAL HEALTH SERVICES

COMMUNITY & SOCIAL SERVIVICES - SOCIAL DEVELOPMENT

SENIOR MANAGER SOCIAL DEVELOPMENT

MANAGER TRANSVERSAL

MANAGER LIBRARY & INFORMATION

LIBRARIAN

ASSISTANT LIBRARIAN

SENIOR COORDINATOR HIV & AIDS, WOMEN & CHILDREN

COORDINATOR SPORTS, CULTURE & RECREATION

COORDINATOR DISABILITY & MORAL

COORDINATOR HIV & AIDS

COORDINATOR YOUTH DEVELOPMENT

SIGN LANGUAGE INTERPRETER

VACANT

58 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C COMMUNITY & SOCIAL SERVICES - MUNICIPAL HEALTH SERVICES SENIOR MANAGER MUNICIPAL HEALTH SERVICES

MANAGER ENVIRONMENTAL SERVICES

MANAGER EHP

ADMIN OFFICER MHS

10X MANAGER EHP 6V 2X EH EDUCATION OFFICERS

2X AIR QUALITY OFFICERS 1V

28X EHP 18V

2X EIA OFFICERS

4X COMPLIANCE & ENFORCEMENT OFFICERS

2X ADMIN DATA CAPTURERS

2X ADMIN OFFICER EHP

FINANCIAL SERVICES- TOP STRUCTURE

CHIEF FINANCIAL OFFICER

EXECUTIVE SECRETARY FIN

SENIOR MANAGER MANAGER FINANCE

SENIOR MANAGER SCM

SENIOR MANAGER BUDGET & TREASURY

SENIOR MANAGER FINANCIAL MANAGEMENT & MUNICIPAL SUPPORT

VACANT

59 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C FINANCIAL SERVICES - SCM SENIOR MANAGER SUPPLY CHAIN

ASSISTANT MANAGER DEMAND & ACQUISITIONS

ADMIN OFFICER SCM

ASSISTANT MANAGER MONITORING & COMPLIANCE

CLERK MONITORING & COMPLIANCE

2X PROCUREMENT OFFICERS

SCM DB MGT CLERK

FINANCIAL SERVICES - BUDGET & TREASURY

SENIOR MANAGER BUDGET & TREASURY

MANAGER SALARIES & BUDGET

DATA CAPTURE CLERK

MANAGER EXPENDITURE

ACCOUNTANT SALARIES

2X SALARIES CLERKS

EXPENDITURE CLERK

VACANT

60 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C FINANCIAL SERVICES - FINANCIAL MANAGEMENT & MUNICIPAL SUPPORT SENIOR MANAGER FINANCIAL MANAGEMENT & MUNICIPAL SOPPORT

MANAGER CREDITORS

ASSISTANT MANAGER IMMOVABLE ASSETS

ASSISTANT MANAGER MOVABLE ASSETS

2X INFRASTRUCTURE PRACTITIONER

2X ASSET PRACTITIONERS

ASSET MGT OFFICER

ACCOUNTANT CREDITORS

CLERK RECONS

CLERK ACCOUNTS

HUMAN SETTLEMENTS, PUBLIC SAFETY, ROADS & TRANSPORT GENERAL MANAGER HUMAN SETTLEMENTS, PUBLIC SAFETY, ROADS & TRANSPORT

EXECUTIVE SECRETARY HSPS

HEAD OF DISASTER MANAGEMENT

SENIOR MANAGER SECURITY

MANAGER DISASTER

3X DISASTER MANAGEMENT OFFICER 1V

BMS CONTROLLER

2X ACCESS CONTROLLERS

2X SECURITY OFFICER 1V

COORDINATOR HUMAN SETTLEMENTS

COORDINATOR TRANSPORT & ROADS

3X ADMIN OFFICER DM 2V

VACANT

61 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C PLANNING & ECONOMIC DEVELOPMENT GENERAL MANAGER PLANNING & ECONOMIC DEVELOPMENT

EXECUTIVE SECRETARY PED

SENIOR MANAGER PLANNING

ADMIN OFFICER ECONOMIC DEVELOPMENT

ADMIN OFFICER PLANNING

TOWN & REGIONAL PLANNER

MANAGER IDP

MANAGER GIS

COORDINATOR IDP

2X GIS OFFICERS

SENIOR MANAGER ECONOMIC DEVELOPMENT

MANAGER LED & TOURISM

LED OFFICER

ECONOMIST

COORDINATOR EPWP

COORDINATOR LAND & ARGRICULTURE

OFFICER EPWP

3X LAND & AGRICULTURE OFFICERS

EPWP CAPTURE

INFRASTRUCTURE & TECHNICAL SERVICES - TOP STRUCTURE

GENERAL MANAGER INFRASTRUCTURE & TECHNICAL SERVICES

EXECUTIVE SECRETARY ITS

HEAD OF SCIENTIFIC SERVICES

SENIOR MANAGER W&S

SENIOR MANAGER SPECIAL PROGRAMMES/PMU

SENIOR MANAGER PROJECT IMPLEMENTATION REGION 1

SENIOR MANAGER PROJECT IMPLEMENTATION & SUPPORT

VACANT

62 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice C INFRASTRUCTURE & TECHNICAL SERVICES GENERAL MANAGER INFRASTRUCTURE & TECHNICAL SERVIVES

EXECUTIVE SECRETARY ITS

HEAD OF SCIENTIFIC SERVICES

SENIOR MANAGER W&S

SENIOR MANAGER PROJECT IMPLEMENTATION REGION 1

SENIOR MANAGER SPECIAL PROGRAMMES/PMU

PROJECT MANEGER

SENIOR TECHNICIAN WC & DM

MANAGER PROJECT IMPLEMENTATION & SUPPORT

SENIOR ENGINEER

6X ENG TECHNICIANS/ ENGINEERS 1V

CHIEF ENGINEER

ADMIN OFFICER

2X ARTISAN HVAC 1V

MANAGER PROJECTS CONTROL

2X ARTISAN PLUMBING 1V

2X ARTISAN ELECTRICAL 1V

SENIOR MANAGER PROJECT IMPLEMENTATION & SUPPORT

ADMIN OFFICER PMU

ENG TECHNICIANS

INFRASTRUCTURE & TECHNICAL SERVICES - SCIENTIFIC SERVICES HEAD OF SCIENTIFIC SERVICES

MANAGER QUALITY SYSTEMS

MANAGER CHEMISTRY

SENIOR LAB TECHNICIAN CHEMISTRY

WATER SAMPLER

ADMIN ASSISTANT

LAB DRIVER

SENIOR LAB TECHNICIAN AA MACHINE

MANAGER MICROBIOLOGY

SENIOR LAB TECHNICIAN IC MACHINE

SENIOR LAB TECHNICIAN MICROBIOLOGY

2X LAB TECHNICIANS CHEMISTRY

LAB TECHNICIAN MICROBIOLOGY

LAB RECEPTIONIST

VACANT

63 ANNUAL REPORT 2012-2013

FILLED

PROPOSED

Appendice E and F FUNCTIONAL WARDS COMMITTEES Municipality

Number of ward committees

Functional

Non-functional

Calm

Dipaleseng Govan Mbeki Lekwa Mkhondo Msukalingwa Dr. P. K. I. Seme

6 32 15 19 19 11

5 25 13 15 15 11

1 7 2 4 4 0

PROGRESS ON WARD OPERATIONAL PLANS Municipality

Number of ward operational plans

Submitted

Not submitted

Calm

Dipaleseng Govan Mbeki Lekwa Mkhondo Msukalingwa Dr. P. K. I. Seme

6 32 15 19 19 11

2 27 13 15 15 8

4 5 2 4 4 3

PAYMENT OF OUT-OF-POCKET EXPENSES Municipality

Number of ward operational plans

Calm

1000, subject to POE 1000, subject to POE

Dipaleseng Govan Mbeki Lekwa Mkhondo Msukalingwa Dr. P. K. I. Seme

500 subject to POE 1000,suject to POE 500 subject to POE 1000,subject to POE, individual participation 1000, subject to POE

CDW PROGRAMME Municipality

Number of wards

Number CDW Deployed

Calm Dipaleseng Govan Mbeki Lekwa Mkhondo Msukalingwa Dr. P. K. I. Seme Total

25 6 32 15 19 19 11 127

29 10 32 11 23 17 10 130

Comments

There was 31 CDWs, 1 resigned

ACTIVITIES OF CDWs • • • • •

War on poverty household profiling: CDWs working with social development officials interviewing residents Drdla: registered officials for Masibuyele Emasimini Indigent: identifying qualifying residents and registering them Housing: identified beneficiaries for RDP houses and helped to complete application forms IEC: Actively involved in voter registration

64 ANNUAL REPORT 2012-2013

Appendice E and F CONTI: CDWs • • • • •

Sassa: Identified people who qualify for food parcels and distribution LED: Assisted with registration of cooperatives Home Affairs: Assisted with the delivery of IDs Assists communities to attend integrated service delivery events Attendance of Ward Committee meetings, evidence available

7. Municipality Presidential hotline issues Calm Dipaleseng Govan Mbeki Lekwa Mkhondo Msukalingwa Dr. P. K. I. Seme

Open Calls

Resolved

Total calls

21 18

21 7

21 11

14 -

0 Still pending -

Percentage

ACHIEVEMENTS/PROGRAMMES • • • • • • • • • • •

Ward committees trained on ward operational plans Training of ward committees on community development NQF level 2 and 3 Distribution of blankets to pensioners, child headed homes and disabled people Voter registration to identify born-frees World Aids Day held in Mkhondo IDP review meetings in progress Certificate handover to ward committees who completed skills training Workshop on ward governance framework Ward committees held cultural events and internal training for ward secretaries to use laptops Participation in a commemoration march of Mahatma Ghandi Distribution of IDs to communities

CHALLENGES • • • • • • •

Water shortages Unfinished RDP houses Damaged road infrastructure Sanitation Illegal dumping sites Shortage of land for residential and cemetries Separation of votes between public participation and ward committees • Fast-tracking of appointments of CDWs

• • • •

Immigration of CDWs to other wards Continuous training of ward commitees None-submission of ward operational plans None-adherence to submission of minutes, attendance register of ward committee and community meetings • Issues raised by ward committees are not attended by municipalities • Incosistencies of financial system of municipality in charging for services

REMEDIAL STEPS • Councillors reminded to submit ward operational plans SERVICE DELIVERY CHALLENGES • • • • •

Water shortages Damaged roads Sanitation Allocation of stands Electricity shortages

SUMMARY OF FUNCTION OF GSDM Item

Number of wards

Functional

Non-functional

Functionality

127

109

65 ANNUAL REPORT 2012-2013

Appendice I Albert Luthuli Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

130

Grants transfer

130

256031

Upgrading of Carolina WTW

0.00

130

256254

Upgranding Ekulindeni WTW

0.00

130

256461

Culvert/Bridge ALM

0.00

130

256500

Roads Carolina

0.00

130

256501

Ring Road Elukwatini

0.00

130

256505

Silobela sewer reticulation

2,000,000.00

130

256539

Stadium Carolina

0.00

130

256600

Elukwatini Ring Road

0.00

130

256601

Elukwatini Stadium

0.00

130

256602

Silobela Roads

2,162,331.03

1,975,339.98

2,162,331.03

2,162,331

130

256603

VIP rural area

36,734.37

130

256604

Provision of boreholes

69,422.20

130

256700

Reg bulk infrastructure

1,832,600.00

130

256701

Reg bulk infrastructure Empuluzi

2,025,520.00

1,364,152.38

2,025,520

130

256702

Water & sanitation maintenance

1,000,000.00

706,822.85

1000000

1,000,000

130

256703

Water quality testing

750,000.00

346,866.3

550,000

Sanitation (VIPs)

1,000,000.00

1,000,000

130

256704

130

256705

Roads (upgrade)

900,000.00

399433.66

900,000

130

256706

Potholes

500,000.00

500,000

130

256707

New boreholes

1,250,000.00

434426.92

1042624.56

1,250,000

66 ANNUAL REPORT 2012-2013

Appendice I Albert Luthuli Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

130

256708

Boreholes maintenance

500,000.00

500,000

130 130

Total grants transfer Total operating expenditure

14,026,607.60 14,026,607.60

5227042.09 5227042.09

6230475.59 6230475.59

13,720,451 13,720,451

130

Operating (surplus)/defit

14,026,607.60

5227042.09

6230475.59

13,720,451

Msukaligwa Department

Account

150

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

150

256508

Breyten roads

0.00

150

256512

Ermelo sewer treatment plant

0.00

150

256605

Sheepmoor roads

0.00

150

256606

Davel roads

0.00

150

256607

Davel refurbish sewer plant

1,854,188.09

150

256608

Cassim parkroads/ stormwater

0.00

150

256609

Sewer upgrade Khayelihle

3,000,000.00

3,080,508

150

256610

Water reticulation Khayelihle

2,726,762.06

844553

359649.6

2,726,762

150

256643

Refurbish Torbanite Dam

1,196,025.88

222794

534705.6

1,196,025

150

256712

Wesselton/Khayelihle outfall sewer line

3,500,000.00

3,500,000

150

256710

Wesselton road upgrade (paving)

1,000,000.00

150

256711

Reg bulk infrastructure

1,553,620.00

1,533,620

150

256712

Water and sanitation maintenance

500,000.00

1,000,000

150

256713

Water quality testing

400,000.00

126007.35

300,000

150

256714

Sanitation (VIPs)

1,000,000.00

1,000,000

150

256715

Potholes

500,000.00

500,000

67 ANNUAL REPORT 2012-2013

Appendice I Msukaligwa Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

150

256716

New boreholes

1,250,000.00

1,250,000

150

256716

Boreholes maintenance

500,000.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

18,980,596.03 18,980,596.03 18,980,596.03

1193354.35 1193354.35 1193354.35

894355.2 894355.2 894355.2

18,941,104 18,941,104 18,941,104

150 150 150

Govan Mbeki Department

Account

160

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

160

256422

Construction roads

0.00

160

256454

Rural roads

0.00

160

256516

Roads in Bethal

2,000,000.00

2,000,000

160

256540

Upgrading roads Kinross

0.00

160

256611

Leandra roads

700,000.00

881,389

160

256612

Emzinoni roads

1,314,508.00

213714

512913.6

1,314,508

160

256613

VIP

24,000.00

43790

105096

102,950

160

256614

Boreholes

102,950.00

7,968,745

160

256615

Bethal electricity refund

7,968,745.00

160

256616

Kinross roads

1,000,000.00

1080716

2396414.4

1,667,172

160

256718

Upgrading sport facilities

0.00

160

256719

Embalenhle sewer network

4,000,000.00

160

256720

Water and sanitation maintenance

500,000.00

160

256721

Water quality testing

600,000.00

117530.97

128882.4

450,000

160

256722

Sanitation (VIPs)

1,000,000.00

1,000,000

160

256723

Potholes

500,000.00

500,000

160

256724

New boreholes

1,250,000.00

1,250,000

160

256725

Boreholes maintenance

500,000.00

68 ANNUAL REPORT 2012-2013

Appendice I Govan Mbeki Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

160

256725

Sewer network Embalenhle

0.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

21,460,203.00 21,460,203.00 21,460,203.00

1455750.97 1455750.97 1455750.97

3143306.4 3143306.4 3143306.4

22,134,764 22,134,764 22,134,764

160 160 160

Mkhondo Department

Account

172

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

172

256291

Refurbish creche

0.00

172

256428

Driefontein WTW increase cap

685,998.72

273260.37

685,999

172

256517

Ezimbuzini upgrade/refurbish roads

0.00

172

256518

Driefontein convers RDP houses

0.00

172

256520

Amsterdam/KwaThandeka roads

0.00

172

256541

Upgrading of Mark street

0.00

172

256617

Ezimbuzini roads

0.00

172

256618

Driefontein convers RDP houses

0.00

172

256619

Amsterdam/Thandeka roads

2,406,124.66

872265.92

1740006.12

2,406,125

172

256620

VIP rural area

59,200.00

35200

59200

59,200

172

256621

Electrification of villages

98,202.78

98,202

172

256623

Amsterdam sewer

975,006.50

765575

1466088.24

975,006

172

256726

Ezphunzxini new link road

3,500,000.00

172

256727

Driefontein upgrading WTW

1,200,000.00

1,200,000

172

256728

Amsterdam refurbish sewer treatment plan

2,130,000.00

2,130,000

172

256727

Driefontein construction STP

1,370,000.00

1,370,000

69 ANNUAL REPORT 2012-2013

Appendice I Mkhondo Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

172

256730

Reg bulk infrastructure Dirkie

500,000.00

172

256731

Reg bulk infrastructure Driefontein

500,000.00

172

256732

Reg bulk infrastructure Mandun

500,000.00

172

256733

Water and sanitation maintenance

500,000.00

172

256734

Water quality testing

350,000.00

30315.34

72756.72

300,000

172

256735

Sanitation (VIPs)

1,000,000.00

1,000,000

172

256736

Potholes

500,000.00

500,000

172

256737

New boreholes

1,250,000.00

1,250,000

172

256738

Piet Retief sewer treatment plant

3,000,000.00

172

256739

Boreholes maintenance

500,000.00

500,000

172

256739

Procurement construction equipment

Total grants transfer Total operating expenditure Operating (surplus)/defit

21,024,532.66 21,024,532.66 21,024,532.66

1976616.63 1976616.63 1976616.63

3338051.08 3338051.08 3338051.08

20,974,532 20,974,532 20,974,532

160 160 160

Lekwa Department

Account

180

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

180

256270

Raising main WTW/OLS Standers

260,678.00

260,678

180

256272

Upgrading morgenzon STW

0.00

180

256523

Morgenzon roads

0.00

180

256624

Morgenzon roads

0.00

180

256625

Sakhile roads/stormwater

3,500,000.00

2815852.02

767630.04

3,500,000

180

256626

10ml water treatment plant

7,500,000.00

1095461.9

2338332.24

8,700,000

70 ANNUAL REPORT 2012-2013

Appendice I Lekwa Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

180

256627

Construction of VIPs

7,500,000.00

1095461.9

2338332.24

8,700,000

180

256628

Sakhile upgrading stadium

1,000,000.00

1000000

1,500,000

180

256740

Reg bulk infrastructure

500,000.00

180

256741

Reg bulk infrastructure Standers

500,000.00

180

256742

Water and sanitation maintenance

500,000.00

56500

1,000,000

180

256743

Upgrading sport facility

500,000.00

450442.95

500,000

180

256744

Water quality testing

300,000.00

250,000

180

256745

Sanitation (VIPs)

1,000,000.00

1,000,000

180

256746

Potholes

500,000.00

500,000

180

256747

New boreholes

1,250,000.00

853593

1250000

1,250,000

180

256748

Grootdraaidam facility upgrade

3,000,000.00

3,000,000

180

256767

Upgrade substation WT

180

256749

Riverpark upgrade

1,000,000.00

1,000,000

180

256768

Replace sewer pipes

180

256750

Boreholes maintenance

500,000.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

21,869,878.00 21,869,878.00 21,869,878.00

6307049.87 6307049.87 6307049.87

5415162.28 5415162.28 5415162.28

24,019,878 24,019,878 24,019,878

180 180 180

Dipaleseng Department

Account

184

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

184

256528

Siyathemba upgrade/refurb roads

942,058.50

580202.69

727348.32

942,059

184

256531

Greylingstad roads

0.00

71 ANNUAL REPORT 2012-2013

Appendice I Dipaleseng Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

184

256630

Balfour town roads

1,500,000.00

1417573.84

3210734.16

1,500,000

184

256631

Siyathemba roads

1,000,000.00

594108

1224950.4

1,000,000

184

256632

VIP

232,000.00

208000

499200

232,000

184

256633

Boreholes

102,950.50

41557.5

99738

102,950

184

256751

Reg bulk infrastructure Balfou

1,432,330.00

1,432,330

184

256752

Upgrading sport facility

750,000.00

750,000

184

256753

Water and sanitation maintenance

500,000.00

500,000

184

256754

Water quality testing

300,000.00

250,000

184

256755

Sanitation (VIPs)

750,000.00

750,000

184

256756

Potholes

250,000.00

250,000

184

256757

New boreholes

1,000,000.00

1,000,000

184

256758

Boreholes maintenance

500,000.00

500,000

184

256759

Purchase of land - cemetry

Total grants transfer Total operating expenditure Operating (surplus)/defit

9,259,339.00 9,259,339.00 9,259,339.00

2841442.03 2841442.03 2841442.03

5761970.88 5761970.88 5761970.88

9,209,339 9,209,339 9,209,339

184 184 184

Pixley Ka Seme Department

Account

190

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

190

256534

Amersfoort roads

.00

190

256535

Daggakraal roads

0.00

190

256536

Wakkerstroom roads

0.00

190

256634

Amersfoort roads

0.00

190

256635

Daggakraal roads

0.00

190

256636

Wakkerstroom roads

0.00

72 ANNUAL REPORT 2012-2013

Appendice I Pixley Ka Seme Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

190

256637

Volksrust WTP const bulk suppl

153,803.23

491541.52

1,153,804

190

256638

Amersfoort WTW compl pumpline

2,709,948.85

3288.68

2,709,949

190

256639

Amersfoort water treatment plan

3,302,911.08

1440326.16

1310629.92

3,302,912

190

256640

Perdekop sewer reticulation

2,500,004.00

357527.5

2,500,004

190

256641

Vukuzakhe sewer treatmen plant

2,500,004

244290

5,829,208

190

256759

Reg bulk infrastructure

500,000.00

500,000

190

256760

Water and sanitation maintenance

450,000.00

850,000

190

256761

Water quality testing

400,000.00

300,000

190

256762

Sanitation (VIPs)

500,000.00

500,000

190

256763

Potholes

400,000.00

400,000

190

256764

New boreholes

1,000,000.00

1,000,000

190

256765

Boreholes maintenance

400,000.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

18145874.32 18145874.32 18145874.32

2536973.86 2536973.86 2536973.86

1310629.92 1310629.92 1310629.92

19,045,877 19,045,877 19,045,877

190 190 190

ACIP Albert Luthuli Department

Account

230

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

230

256650

Upgrade Carolina WTW

2,000,000.00

230

256651

Package plant Empuluzi

2,000,000.00

230

256652

12 boreholes Carolina/Caropark

0.00

230

256654

3 boreholes Ndonga

0.00

230

256655

Refurbish Carolina WTP

1,000,000.00

73 ANNUAL REPORT 2012-2013

Appendice I ACIP Albert Luthuli Department

Account

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

230

256656

Boreholes - testing/cleaning

500,000.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

5,500,000.00 5,500,000.00 5,500,000.00

0 0 0

230 230 230

ACIP Mkhondo Department

Account

272

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

272

256645

Chemical dosing Pretief WTP

0.00

272

256646

Chemical dosing Amsterdam WTP

0.00

272

256647

Chemical dosing Driefontein WTP

0.00

272

256659

Mechanical equipment Assegaai RIV

0.00

272

256660

Construction new pipelines PR

1,204,000.00

272

256661

Construction new lines Driefontein

1,204,000.00

272

256671

Construction new lines Amsterdam

1,750,000.00

272

256672

Boreholes

250,000.00

272

256673

Replacement valves/water meter

936,000.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

5,344,000.00 5,344,000.00 5,344,000.00

0 0 0

272 272 272

ACIP Lekwa Department

Account

280

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

280

256644

Upgrade replace pumps Standers WTP

2,500,000.00

280

256670

Boreholes rural area

13,500,000.00

74 ANNUAL REPORT 2012-2013

Appendice I 280 280 280

Total grants transfer Total operating expenditure Operating (surplus)/defit

16,000,000.00 16,000,000.00 16,000,000.00

0 0 0

ACIP Dipaleseng Department

Account

284 284

256674

284 284 284

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

Maintenance Fortuna WTP

180,000.00

Total grants transfer Total operating expenditure Operating (surplus)/defit

180,000.00 180,000.00 180,000.00

0 0 0

RBIG Albert Luthuli Department

Account

330

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

330

256663

Regional bulk Eersteh/Ekulinde

5,000,000.00

5,000,000

330

256664

Regional bulk Empuluzi/Metula

5,000,000.00

612511.39

1470027.24

5,000,000

Total grants transfer Total operating expenditure Operating (surplus)/defit

10,000,000.00 10,000,000.00 10,000,000.00

612511.39 612511.39 612511.39

1470027.24 1470027.24 1470027.24

10,000,000 10,000,000 10,000,000

330 330 330

RBIG Msukaligwa Department

Account

350 350

256665

350 350 350

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

Regional bulk Ermelo/Wesselton

6,000,000.00

6,000,000

Total grants transfer Total operating expenditure Operating (surplus)/defit

6,000,000.00 6,000,000.00 6,000,000.00

0 0 0

6,000,000 6,000,000 6,000,000

RBIG Dipaleseng Department

Account

384 384

384 384 384

256665

Description

Budget current year

Actual to date

Estimate current year

Adjustment budget

Grants transfer

Regional bulk Ermelo/Wesselton

6,000,000.00

6,000,000

Total grants transfer Total operating expenditure Operating (surplus)/defit

6,000,000.00 6,000,000.00 6,000,000.00

0 0 0

6,000,000 6,000,000 6,000,000

75 ANNUAL REPORT 2012-2013

Appendice L Conditional grants The following conditional grants were received during the 2012/13 year: Finance Management Grant

R 1 250 000

Municipal Systems Improvement Grant DWA Grant CBPWP Grant Total

R 1 000 000 R17 664 341 R1 000 000 R20 914 341

Appendice N Municipality

Water

Sanitation

Roads

Electricity

Other

Total allocation

Albert Luthuli

Budget

5,908,120

3,500,000

3,562,331

R 12,970,451

Msukalingwa

Budget

7,506,407

9,934,697

1,500,000

R 18,941,104

Govan Mbeki

Budget

2,552,950

5,250,000

6,363,069

7,968,745

R 22,134,764

MKhondo

Budget

4,485,999

8,784,206

6,406,125

98,202

R 19,774,532

Lekwa

Budget

12,210,678

1,559,200

4,000,000

6,000,000

R 23,769,878

Dipaliseng

Budget

R 23,769,878

1,232,000

3,692,059

750,000

R 8,959,339

Pixley la seme

Budget

3,056,716

11,789,161

400,000

R 15,245,877

Grand totals

Budget

R 15,245,877

42,049,264

25,923,584

8,066,947

6,750,000

121,795,945

2012-2013 Infrastructure Budget by Sector Other 6,750,000 Electricity 8,066,947

Water 39,006,150

Water Sanitation Roads

Roads 25,923,584

Electricity Other

Sanitation 42,049,264

76 ANNUAL REPORT 2012-2013

Oversight Report 1. PURPOSE OF THE REPORT Summary - 2012/2013 budget per service (direct allocations) This Oversight Report seeks to reflect on the annual report with regards to the performance of the District Municipality for the 12-month period ending on 30 June 2013 as required in terms of Section 121 and 129 of the MFMA, Section 21(1) of the Public Audit Act (Act No.25 of 2004) and Section 188 of the Constitution of the Republic of South Africa. The report seeks to inform and advise the Council on the MPAC’s responsibility to scrutinise, evaluate and recommend on the activities of the Executive and Administration and thus hold them accountable in ensuring that municipal policies and budget resources approved and adopted by the Council are implemented and used effectively, efficiently and economically. 2. BACKGROUND At a Council meeting held on 31 January 2014 relating to the Annual Report of the Auditor-General on the Statutory Annual Financial Statements and Performance Information of the GSDM for the year that ended on 30 June 2013 per item C03/01/2014, it was resolved that: 1. The Annual Report for the 2012-2013 financial year ending on 30 June 2013 be noted. 2. The unqualified Audit Opinion as well as other legal and regulatory requirements reflected in the Audit Report for the financial year ending on 30 June 2013 be noted. 3. That final submission of the report to the Auditor-General as approved by the Council be made on time and that the publication be made public immediately after being tabled to the Council as required by section 127(5)(a) of the MFMA. 4. That an Oversight Report containing comments on the Annual Report be adopted by the Council within two months from the date on which the 2012-2013 Annual Report was tabled as required by section 129(1) of the MFMA. 5. That the Council’s Oversight Report on the 2012-2013 Annual Report be made public within seven (7) days of its adoption as required by Section 129(3) of the MFMA. 6. That the Annual Report and the report of the Auditor-General be referred to the Municipal Public Accounts Committee within two months. The GSDMPAC had a meeting on 25 March 2014 whereby an analysis and assessment of the Annual Report was undertaken in the presence of the Municipal Administrative Leadership, the Internal Audit Unit, the Audit Committee and the Office of the Auditor-General, with a view to formulate an Oversight Report. “It must be noted that, in terms of Section 129 of the MFMA, Oversight Report and Annual Reports: “The Council of a municipality must consider the annual report of the municipality and of any municipal entity under the municipality’s sole or shared control, and by no later than two months from the date on which the annual report was tabled in the Council in terms of Section 127, adopt an Oversight Report containing the Council’s comments on the annual report, which must include a statement whether the Council: (a) (b) (c)

has approved the annual report with or without reservations; has rejected the annual report; or has referred the annual report back for revision of those components that can be revised.”

Public comments It must be noted that no public comments were received on the Annual Report for the 2012-2013 financial year from various stakeholders within the GSDM area of jurisdiction as attached per Annexure A and B. Commentary on Audit Report – 2012-2013 At the MPAC Committee Meeting members deliberated extensively on the Audit Report, and outlined below are the factual explanations that were presented to the Committee relating to the various paragraphs contained in the report that directly contributed toward an Unqualified Audit Opinion and is illustrated below: Unqualified Audit Opinion – Paragraph 6 The Committee noted that an Unqualified Audit Opinion was achieved for the 2012-2013 financial year. The Committee also noted the Auditor-General’s comments regarding existing internal controls, and the fact that the Auditor-General confirms that the Statutory Annual Financial Statements are fairly present in all material respects of the financial position and its Financial Performance, Cash Flows and Statement of Comparison of the budget and actual amounts in accordance with SA Standards of GRAP and the requirements of the MFMA and DORA.

77 ANNUAL REPORT 2012-2013

Oversight Report Emphasis of Matters – Paragraph 7 The Committee noted that there were three Emphasis of Matters items that had an impact on the audit opinion and these are illustrated in paragraphs 8, 9 and 10 and are as follows: Restatement of Corresponding Figures – Paragraph 8 The adjustments that were recommended were restatement of prior-year figures which primarily related to VAT, Absa loan interest, Fair Value Added Adjustments on retentions and performance bonus. The materiality levels of the majority of these adjustments/restatements were not high and hence would, in the main, have an impact on the previous years’ comparative figures of the Financial Statements and consequently on the opening balance of the retained income. Material Impairment – Paragraph 9 The Committee noted the matter relating to the Eastvaal Financing Partnership entity regarding the Structured Loan/Investment and that Management would in future ensure that there is consensus with the Auditor-General to ensure that there is compliance with GRAP 104. Material underspending of Grants and Subsidies – Paragraph 10 The Committee noted that the amount of R74 59 769, which was underspent is an unconditional grant, need not be returned to National Treasury. It was also noted was that Project Expenditure for the 2012-2013 financial year was between 60% and 80%. This performance aspect is highlighted in the Internal Management monthly Financial Statements with 94 of the objectives being successfully completed by management, in terms of the performance managers’ report. It was further noted that the internal monthly management financial statements are tabled at Monthly Finance Portfolio Committee meetings and these reports demonstrate that numerous targets were met, which may be considered a balanced approach to this finding. The Committee highlighted that the spending on projects relating to service delivery should be higher than what was achieved during the 2012-2013 financial year. Non-achievement of planned targets – Paragraph 20 The Committee notes the comments referred to above under paragraph 10, which must be read in conjunction with the Auditor-General’s comments regarding the fact that the Council was able to achieve 52% of the planned targets. The Committee expressed concern in this regard and would like to see the achievement of planned targets to be at a more acceptable level, thereby ensuring that service delivery occurs timeously. Compliance with laws and regulations – Paragraph 22 Annual Financial Statements, Performance and Annual Report – Paragraph 24 The Committee noted that the draft Annual Report for 2011-2012 was submitted to the Auditor-General together with the Statutory Annual Financial Statements for 2011-2012 and was tabled on 31 January 2012 at a full Council meeting and hence this finding was accordingly resolved. Annual report – Paragraph 25 The Committee noted that the Annual Report was tabled at the Council meeting within the mandatory period of seven months after the end of the financial year, hence there was full compliance with sections 127(3) and 133(1)(a) of the MFMA. The comments illustrated in paragraph 24, 26 and 27 above should be read in conjunction with this finding. Annual Report – Paragraph 28 The Committee noted that the Annual Report was not timeously placed/uploaded on the Council’s website and advised that, in future, this matter of compliance be undertaken within due time. Audit Committeee – Paragraph 29 The Committee noted this finding and, in future, all Oversight minutes finalised by the Audit-Committee are to be submitted timeously to the Council for deliberation and noting.

78 ANNUAL REPORT 2012-2013

Oversight Report Audit Committee – Paragraph 30 The Committee noted that an Audit Action Plan was systematically rolled out by the respective HODs during the course of the financial year. Audit Committee – Paragraph 31 An Audit Action Plan as referred to in paragraph 30 above was prepared and tabled at the respective Audit Committee meetings and consequently all corrective measures were instituted. Consequently the Auditor-General in the main confirmed and did not highlight in his 2012-2013 audit report that 2011-2012 findings were not attended to by Management timeously. Procurement and Contract Management – Paragraph 34 The Committee noted matters of concern regarding procurement and it was understood that several corrective measures were being instituted in order to ensure that the procurement findings in the future do not re-occur. This comment of the Committee applies to paragraph 35. Procurement and Contract Management – Paragraphs 32, 33, 36, 37, 38 and 39 The Committee noted management comments with regard to paragraphs 32, 33, 36, 37, 38 and 39 whereby adequate documentation and explanations were furnished to the Auditor-General. Expenditure Management – Paragraph 42 The Committee noted the aspect of deviations and confirmed that in future deviations should be minimised and there should be full compliance at all times with the Supply Chain Policy. Consequence Management – Paragraph 43 The Committee noted this finding relating to deviations and it was confirmed that management attends to this matter by enhancing internal controls to avoid a recurrence of these transactions. Consequence Management – Paragraph 44 The Committee noted the Auditor’s finding on fruitless and wasteful expenditure which relates specifically towards the purchase of the second Mayoral Vehicle. Management was to fully investigate this matter and furnish the Auditor-General with a full explanation. Consequence Management – Paragraph 45 The Committee notes in terms of paragraph 43 and 44 that Management was to fully investigate all instances whereby it was deemed appropriate to recover from any individual irregular as well as fruitless and wasteful expenditure in terms of Section 32(2) of the MFMA. Management Internal Audit Action Plan on Auditor-General’s findings The Committee notes the Management Action Plan as per Annexure C-1 to C-5 attached herewith. Also, the Committee is of the understanding that progress reports will be tabled to highlight the ongoing corrective measures that will be undertaken to address the findings of the Auditor-General. Non-availability of Key Finance Staff Members The Committee notes that the Chief Financial Officer (CFO) and the Deputy Chief Financial Officer (DCFO) were suspended without being charged from 10 October 2013 to 13 March 2014, during which time the Auditor General’s Report was finalised. The absence of two Senior Finance Officials negatively impacted on the Auditor-General Report as many items of emphasis of matters would have been resolved by the CFO and DCFO, allowing for a more positive Audit Report. As as a consequence of their absence the MPAC Oversight was prejudiced.

79 ANNUAL REPORT 2012-2013

Oversight Report RECOMMENDATIONS OF THE CHAIRPERSON OF THE GSDMPAC The recommendations were that: 1. The Annual Report for the 2012-2013 financial year be adopted and be approved by the Council with reservations, be noted. 2. The unqualified Audit Opinion with matters of emphasis, be noted. 3. No public comments relating to the contents in the Annual Report 2012-2013 were received, be noted. 4. The Internal Audit Unit reports and comments by the Audit Committee be submitted to the Council for noting, be noted. 5. Management ensures that the Supply Chain Policy and Regulations be fully complied with relating procurement, be noted. 6. The final Management report be utilised for legal and financial compliance, be noted. 7. The Management Internal Audit Action Plan as per Annexures C-1 to C-5 be implemented accordingly, be noted.

80 ANNUAL REPORT 2012-2013

Annual Performance Report Addendums June 2013

81 ANNUAL REPORT 2012-2013

Contents 70

Addendum A:

IDP Scorecard

Addendum B:

SDBIP Components – Annual service delivery targets and nonfinancial performance indicators

Office of the Municipal Manager – Key Performance Indicators

107

Office of the Municipal Manager – Projects

108

Budget and Treasury – Key Performance Indicators

121

Budget and Treasury – Projects

123

Infrastructure and Technical Services – Key Performance Indicators

136

Infrastructure and Technical Services – Projects

137

Corporate Services – Key Performance Indicators

163

Corporate Services – Projects

168

Community and Social Services – Key Performance Indicators

187

Community and Social Services – Projects

190

Planning and Economic Development – Key Performance Indicators

195

Planning and Economic Development – Projects

203

Addendum C: Definitions

204

Addendum D: Scoring Method

205

Addendum E: Annual evaluation/status of procurement for Infrastructure Projects

223

Addendum F: Service Delivery and Budget Implementation Plan – June 2013

82 ANNUAL REPORT 2012-2013

ADDENDUM A 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Transformation and Institutional Transformation â&#x20AC;&#x201C; Improve and sustain Financial, Human Resources and Management Excellence

1.1 Institutional Capacity

Numerator: 27 - A total of 27 people obtained a total minimum score of 152 and above indicating overall employee satisfaction. Denominator: 27 - Total number of staff members selected for the staff survey.

N/A - Target achieved

80%

100%

3.75

67.86%

80%

85%

3.19

80%

Calculation: 27/27 = 100%

1.2

Information Communication Technology (ICT) Services

% of employees who are satisfied with their working environment (annual)

1.3

% of employees from previously disadvantaged groups appointed in the three highest levels of management as per the approved EE plan (NKPI

Numerator: 34 - Number of blacks, women and people with disabilities appointed in the three (3) highest levels of management (Task level 14 and above)

% Implementation of King 3 recommendations as it relates to IT risk assessment

Numerator: 1* * The following High Risk Area has been addressed: 1) IT Objectives included in the 2013-2014 IDP - ICT Governance Framework (Refer to page 43 of the approved 2013-2014 IDP)

Denominator: 40 - Total staff compliment (Task level 14 and above)

N/A - YTD target achieved

Calculation: 34/40 = 85%

Denominator: 4* * The following High Risk Areas with identified action required: 1) No IT objectives in IDP; 2) No updated and approved Master Systems Plan; 3) IT Budget not under the management of IT Manager; 4) Lack of procedure manuals. Calculation: 1/4 = 25% The following 3 Managment Interventions/Actions under the control of the ICT Department was not finalised by Management: 1) No updated and approved Master Systems Plan: Root cause - No ICT Steering Committee and ICT Governing Committee established to roll-out and approve processes for the finalisation of the MSP. 2) Lack of procedure manuals: Root cause - Procedure Manuals based on current needs have been developed but approval must still be obtained from Council. 3) IT Budget not under the management of the IT Manager: Root cause - This resulted due to the ICT Steering Committee not being established during the year under review.

Actions to be implemented by management are as follows: 1) No updated and approved Master Systyms Plan: 1.1) Establishment of ICT Steering Committee comprising of the MM as Chairperson, all HODs and the ICT Manager. One of the roles of this Committee is to define the project implementation of the ICT Department. This Committee will be established by the end of the first quarter of 2013-2014. 1.2) Establishment of the ICT Governing Body, Chaired by the Executive Mayor, to define the strategic objectives of the Master Systems Plan by the end of the first quarter of the 2013-2014 financial year. 2) Lack of procedure manuals: 2.1) The following Procedure Manuals have been drafted by the ICT Department based on current priority needs: - ICT Request Procedures and Guidelines - Patch Management Standards and Procedures - Back-up and Retention Strategy. In addition, the ICT Governance Initiative as driven by Province will provide guidelines on additional and outstanding procedures to be approved and implemented by June 2015. 3) IT Budget not under the control of IT Manager: 3.1) The IT Steering Committee to be formed by the end of the first quarter which will address budgetary issues.

83 ANNUAL REPORT 2012-2013

25%

ADDENDUM A 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

0.47%

1.41

-0.02%

Municipal Transformation and Institutional Transformation â&#x20AC;&#x201C; Improve and sustain Financial, Human Resources and Management Excellence Numerator: R283,585.56 - Actual amount spend on training during the 2012-2013 financial year Denominator: R60,928,826.48* * Total Employee and Councillor Earnings (July'12 June 2013): R62,524,593.18 less: Travel Reimbursements/Subsistence Allowances paid: R1,595,768.40; Equals: Total Remuneration as defined by Income Tax Act: R60,928,824.78 Calculation: R283,585.56/R60,928,824.78 = 0.47% Skills Development and Capacity Building

1.4

% budget spent on implementing the Workplace Skills Plan (GKPI)

<Root cause for not achieving target> During the year under review the Head of Department: Corporate Service post was vacant with senior management appointed in acting positions being seconded away from GSDM to serve in acting positions at the local municipalities within the jurisdiction of GSDM. The outcome of this uncertain leadership vacuum resulted in the dailyoperation of the Corporate Services Department functioning to the detriment of strategic issues.

The Corporate Services Head of Department and Chief Skills Development Officer posts have been filled from 1 August 2013. Further to the above, a Training Policy was approved by Council, which will enhance implementation of the WSP.

N/A - New Measurement

In addition to the above, the Chief Skills Officer resigned during the financial year, further contributing to non-achievement of this target. With the above in mind it must, however, be noted that expenditure in excess of 90% was achiev ed with the available training budget allocatedfor the 2012-2013 financial year.

Numerator: -0.06* * 2012-2013 Overall Score: 2.50 Less: 2011-2012 Overall Score: 2.56

Organisational Performance Management

1.5

% increase in organisational performance

Denominator: 2.56 - 2011-2012 Overall Organisational Score Calculation: - 0.06/2.56 x 100 = - 0.02 % <Root cause for not achieving target> Significant changes to the institutional arrangements from the 2011-2012 financial year. All HOD positions except for the CFO position were changed during the year and they did not take part in developent of the 2012-2013 IDP or SDBIP, which resulted in a loss of continuity in improving on the PMS System established.

New HODs appointed will require significant and sustainable mentorship over the next three to six months. Ownership and accountability have been transferred to the appointed HODs with respect to the development of the 2013-2014 IDP and SDBIP. Scorecards are fully aligned to the Budget and Performance Agreements and all HODs were workshopped and agreed on targets set for the new financial year. With most critical positions filled and proper strategic planning undertaken, it is envisaged that targets will be met during the new financial year, ensuring improvement form the baseline score established through the PMS Reporting System.

84 ANNUAL REPORT 2012-2013

N/A for reporting

ADDENDUM A 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Annual Target 12-13

Annual Actual 12-13

Score

77.42%

80%

78.57%

2.95

41%

75%

Baseline 11-12

Basic Service Delivery and Infrastructure Development â&#x20AC;&#x201C; Improve the quantity and quality of Municipal basic services to the people

Project Management

2.1

% of Capital projects as identified in the IDP completed (excl., multi-year projects)

Numerator: 33 - # of identified 2012-2013 Capital projects completed as of 30 June 2013*

N/A - Target deemed to be achieved by management

Breakdown per LM: - Albert Luthuli (7) - Dipalaseng (5) - Govan Mbeki (7) - Lekwa (4) - Mkhondo (4) - Msukaligwa (3) - Pixley ka Seme (3) Denominator: 42 - Total # of Capital projects (Excluding RBIG) Refer to instruction colomn Calculation: 33/42 = 78.57%

Access to Water and Sanitation

2.2

% compilation of District Integrated Water Master Plan (IWMP)

The following nine (9) Tasks completed out of a total of 12 tasks targeted for completion by the end of the 2012-2013 financial year: Task1: Strategic Planning Overview Task 2: Spatial Analysis Task 3: Report on information outstanding for the completion of Master Plan Task 4: Development of options and analysis Task 5: Evaluation of the options for the inclusion into a high level water services provision perspective Task 6: Development of Bulk Water Supply Augmentation Plans Task 7: Development of Reticulation Augmentation Plans Task 8: Preliminary designs and costing augmentation plans Task 9: Projects list and priorities for implementation bulk and reticulation

Calculation: 9/12 = 75% Integrated Transport Planning

Integrated Waste Management Planning

Disaster Management and Safety

2.3

2.4

2.5

Review and update 2008 adopted Integrated Transport Plan and submit to Council for approval Review and update of the 2006 adopted Integrated Waste Management Plan # of Disaster Management MOUs developed and approved with each local municipality

The 2008 Transport has been reviewed and a draft document is available for inspection. Submission to Council only to occur after the consultative process has been finalised, which, as per the instruction column, is scheduled for the 2013-2014 financial year.

N/A - Target achieved N/A for reporting 3

Review process finalised and document available for inspection.

<Root cause for not achieving target> Lack of capacity within the Department which delayed execution of planned 2012-2013 programmes.

Capacity restraints resolved within the Department. Furthermore the MOUs are being developed with the assistance of COGTA, target date for completion is end of second quarter of 2013-2014.

85 ANNUAL REPORT 2012-2013

N/A New KPI

ADDENDUM A 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

40%

37.54%

2.82

Basic Service Delivery and Infrastructure Development â&#x20AC;&#x201C; Improve the quantity and quality of Municipal basic services to the people

2.6

% utilisation of laboratory facilities

Numerator: 3153* *1614 (Utilisation of Chemistry Section) + 1539 (Utilisation of Microbiology Section) = 3153 Denominator: 8400 - Refer to instruction column Calculation: 3153/8400 = 37.54% <Root cause for not achieving target> Current underutilisation can be attributed to a decrease in the number of samples taken during the fourth quarter due to water sample points being unaccessible to GSDM EHPs.

A water sampling schedule has been submitted to all LMs to ensure that all sampling points are unlocked and accessible on the day of sampling.

36.24%

LMs have also been requested to review the sampling plans to ensure that they are correct and add value especially areas where it is continiously reported that samples can not be taken due to the absence of water at sampling points. Targets will be achieved during the 2013-2014 financial year as the Municipal Health Section has drafted an additional schedule to monitor water quality throughout the District. This is not just limited to the four (4) LMs which entered into the Water Monitoring and Sampling Agreement with GSDM. In addition, Pixley ka Seme LM has agreed to form part of the Water and Monitoring Sampling Programme by entering into an agreement with GSDM. This will ensure that utilisation increases with the extra samples to be submitted to the Water Laboratory.

Municipal Health Services 2.7

2.8

Obtain laboratory accreditation

# of planned MHS Sectoral forum held

<Root cause for not achieving target> Resignation of a key person, the Senior Chemistry Technician, in September 2012. With the chemistry technician being on maternity leave during that period, there was no personnel in the chemistry section. All work was re-routed to the sub-contracted laboratory until the return of the technician. Extension was requested from SANAS on noting that the target date could not be met.

MHS/EHP Forum meetings held as follows during period July 2012-June 2013 period: 1) Environmental Health Forum meeting held 30 August 2012 <Refer to first quarter POE> 2) Environmental Health Forum meeting held on 6 December 2012 s <Refer to second quarter POE> 3) Environmental Health Forum meeting held on 24 January 2013 4) Environmental Health Forum meeting held on 28 June 2013

Positions identified as key for attaining accreditation have already been advertised with the Head of Scientific Services also performing duties of the Quality Manager.

0% Accreditation not obtained

100%

Technical data is being gathered, and will be submitted to SANAS by the end July 2013. In addition, Mhlathuze Water is assisting the Acting Senior Chem. Technician. Mhlathuze Water was requested to assist with internal auditing, which was performed during the first week of July.

N/A - Target achieved

86 ANNUAL REPORT 2012-2013

ADDENDUM A 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development – Improve the quantity and quality of Municipal basic services to the people

2.9

# of LMs with developed and implemented HIV-Aids Business Strategic Plans

Community Health & Social Development

2.10

# of policy documents approved with respect to Youth, Children and Gender Mainstreaming

As per the instruction column, the target relevant for the 2012-2013 financial year relates to drafting of at least four (4) HIV-Aids Business Strategic/Operational Plans. During the year under review the HIV/-Aids Business Strategic Plans/Operational Plans have been drafted for the following four (4) Local Municipalities: 1) Albert Luthuli 2) Msukaligwa 3) Mkhondo 4) Dipalaseng Policy documents drafted for: 1) Youth Development 2) Children Rights 3) Gender Mainstreaming

N/A - Target relevant to the 2012-2013 financial year achieved

N/A - YTD target achieved

N/A New KPI

Local Economic Development - Creation of decent jobs, poverty alleviation, sustainable livihoods and rural development, food security and Land Reform through LED

Regional Economic Growth

3.1

Number of EPWP Full-time Equivalent (FTEs) jobs created in infrastructure development (GKPI)

24 Projects registered under GSDM on MIS with 110 FTEs created.

N/A - YTD target exceeded

232

110

3.67

100%

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

Financial Management

4.1

4.2

Unqualified Audit Opinion

The Gert Sibande District Municipality obtained an Unqualified Audit Opinion as expressed by the Auditor-General upon completion of the regulatory year audit for the year ending 30 June 2012.

% of the Municipality’s capital budget actually spent on capital projects identified ito the IDP (GKPI)

Numerator: R76,954,553 - Actual expenditure: Direct Allocations/Projects Denominator: R132,545,945 - Budgeted Expenditure: Direct Allocations/Projects Calculation: R76,954,553/R132,545,553 = 58.06% <Root cause for not achieving target> This target not being achieved was as a result of project implementation delays due to litigation issues surrounding the appointment of consultants and contractors. This resulted in the appointment of consultants only being considered during September 2012. THIS resulted in the bulk of the projects only having contractors on site during February 2013.

Budget and Expenditure Management Services

N/A - target achieved

Planning with regard to the 2013-2014 Infrastrucure Projects finalised. This will ensure prompt appointnment of service providers relating to 2013-2014 projects, including transfer projects.

100%

80.79%

100%

85%

58.06%

2.05

In addition a Framework Agreement for the appointment of service providers (contractors and consultants) have also been finalised in conjunction with National Treasury to fast-track appointments and commencement of 2013-2014 projects which will be reflected in the expenditure reporting against SDBIP cashflow projections.

Numerator: R72,287,059*

4.3

% Employee costs of total budget (annual)

*R72,287,059 broken up as follows: Salaries and wages - R53,274,590 Social contributions - R9,603,550 Councillors’ allowances - R9,408,918

N/A - Target exceeded

Denominator: R360,612,737 - Total Income Calculation: R72,287,059/R360,612,737 = 20.05%

87 ANNUAL REPORT 2012-2013

N/A - New KPI

25%

20.05%

ADDENDUM A 2012-2013 Financial Year Programme

Actual notes

KPI

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

Budget and Expenditure Management Services

4.4

Cost coverage ratio as per IDP regulations 2001 (annual) (GKPI)

National Composite KPI: A= (B+C)/D where; A = Cost coverage; B = Bank statement balance as at 30 June 2013; C = Represents investments held as at 30 June 2013; D = Presents projected monthly operating expenditure for the period April 2013 to June 2013 as projected in the approved 2012-2013 SDBIP. Operating expenditure include the following line items: - Employee-related cost - Remuneration of councillors - Contracted services - Other expenditure

N/A - YTD target exceeded

119.96%

85%

160.22%

Cost coverage calculation: B = R59,903,942 C = R0 D = R37,388,362 Cost coverage = {(R59,903,942 + R0)/R37,388,362} x 100 = 160.22%

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information

Governance and Administration

5.1

To obtain an Audit Report with no other matters

Unqualified Audit Opinion obtained with Emphasis of Matter. Attention were drawn to the following matters in the Audit Report: Significant uncertainties With reference to note 32 to the financial statements, the Municipality is the defendant in a contractual dispute with Inhlakanipho Consultants. The Municipality is opposing the claim as they believe that they cannot pay for a product that has not been delivered. The ultimate outcome of the matter cannot be determined and no provision for any liability that may result has been made in the financial statements. Restatement of corresponding figures As disclosed in note 4 to the financial statements, the corresponding figures for 30 June 2012 have been restated as a result of the compensation of the assets during the year ended 30 June 2012 in the financial statements of the Municipality at, and for the year ended, 30 June 2012. Material impairments As disclosed in note 15 to the financial statements, material impairments of R7,841,929 were incurred as a result of the provision for doubtful debts. Achievement of planned targets: Only 12 of the 24 planned targets were achieved during the year under review. This means that 50% of the total planned targets were not achieved. Annual financial statements, performance report and annual report The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of Section 122 of the MFMA. Expenditure management The Accounting Officer did not take any effective steps to prevent unauthorised and irregular expenditure, as required by section 62(1)(d) of the MFMA. Procurement and contract management - Invitations for competitive bidding were not always advertised for the required minimum period. - Contracts and quotations were awarded to bidders who did not submit declaration on whether they are employed by the State. - A list of accredited prospective providers was not in place. - Goods and services with a transaction value below R200,000 were procured without obtaining the required price quotations. - Construction projects were not always registered with the Construction Industry Development Board. Financial and performance management - The financial statements submitted for audit purposes were not adequately reviewed by the accounting officer, which resulted in material adjustments being made following the audit process. - The SCM unit of the Municipality was not centralised, which resulted in non-compliance with some of the SCM regulations.

Management Audit Action Plan was drafted after completion of the 2011-2012 Audit. All items raised were adressed where practical and implementation of AG Management Letter findings are measured on departmental scorecards with overall implemetation achieving a score of 80% being measured as a total of 22 out 28 findings resolved. Refer to the Scorecard for the Office of the Municipal Manager, KPI ID: 5.1.2. Out of the remaining six (6) findings not resolved, four (4) related to IT findings - although the target of 100% was not achieved it must be noted that in all instances progress has been made in resolving all outstanding Management Letter Findings. In all instances, the remaining actions required, for 100% compliance, only require the final step of Council approval which will be undertaken as documented in the Management Action Plan - refer to Corrective Action supplied in the CS Scorecard (KPI ID: 5.1.2) Two (2) findings were for action by the MM being as follows: 1) Responsibilities for information security: The post of IT Network and Security Specialist has been advertised for the week ending 20 August 2013 2) PMS non-achievement of planned targets: proper planning was undertaken in determining targets relevant for reporting during the 2013-2014 financial year. The MM requested all HODs to report on a monthly basis to ensure that under-performance can be rectified within a quarter after it has been identified.

88 ANNUAL REPORT 2012-2013

100% Clean Audit Status Achieved

100%

ADDENDUM A 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Deepen democracy through effectively and efficiently functional Public Participation structures, mechanism and processes

Ward Committees & CDWs

5.2

% of indirect allocation spend on Community Participation

Numerator: R1,760,124 - Actual YTD Departmental Expenditure (Promotion of the District/Community participation) Denominator: R1,800,000 - Total Departmental Budget (Promotion of the District/Community participation)

Programme fully implemented and the amount underspent against the total budget deemed as a cost savings. No corrective action deemed necessary.

96.62%

100%

98.76%

2.96

Calculation: R1,760,124/R1,800,000 = 97.78% Intergovernmental Relations, Good Governance and Public Participation - Develop internal and external stakeholder relationships and partnerships

Ward Committees & CDWs

5.3

% of indirect allocation spend on Community Participation

1) Ordinary Council meeting held on 31 May 2012 was attended by the following traditional leaders: - IKJ Malaza - ISM Mnisi - IJV Nhlapho - IFL Msibi - MLE Moloi - ITB Mthethwa <Refer to 1st Quarter POE>

N/A - YTD target achieved

96.62%

2) Ordinary Council meeting held on 23 August 2012 was attended by the following traditional leaders: - ISM Mnisi - IAJ Tshabalala - MLE Moloi - ITB Mthethwa <Refer to 2nd Qtr POE> 3) Ordinary Council meeting held on 4 December 2012 was attended by the following traditional leaders: - ISM Mnisi - IFL Msibi - MLE Moloi <Refer to 3rd Qtr POE> 4) Ordinary Council meeting held on 31 January 2013 were attended by the following Traditional Leaders: - MLE Moloi Intergovernmental Relations, Good Governance and Public Participation - Create a single window of co-ordination for the support, monitoring and intervention in municipalities within the District

Coherent Decision-Making

5.4

# of District MM Forum meetings held

MM forum meetings were held on the following dates between July 2012 and June 2013: 1) 4 July 2012 <Refer to 1st Qtr POE> 2) 30 August 2012 <Refer to 1st Qtr POE> 3) 5 September 2012 <Refer to 1st Qtr POE> 4) 20 September 2012 <Refer to 1st Qtr POE> 5) 23 October 2012 <Refer to 3rd Qtr POE> 6) 13 February 2013 <Refer to 3rd Qtr POE> 7) 12 June 2013

N/A - YTD target achieved

Spatial Rationale and Municipal Planning Alignment - Stimulate integrated and sustainable and shared Regional Development through aligned Spatial Planning

Municipal IDP

6.1

Rating received from Provincial Treasury with regards to submitted IDP

2012-2013 IDP Rating Assessment of High received from COGTA, which translates to a score of 100% as per instruction column.

N/A - YTD target achieved

89 ANNUAL REPORT 2012-2013

100%

ADDENDUM B OFFICE OF THE MUNICIPAL MANAGER – KEY PERFORMANCE INDICATORS 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Transformation and Institutional Transformation - Restore and maintain the institutional integrity of the District and its constituent LMs

1.5.1

# of Organisational Performance reports generated, reporting on all KPIs and targets contained in the IDP/SDBIP

The following Performance Reports have been generated during the period July 2012-December 2012: 1) 2011-2012 Annual Organisational Performance Report (Finalised during 1st Quarter) <Refer to 1st Qtr POE>

N/A - Target achieved

Dates for Individual Performance Assessments have been set and forwarded to COGTA. 4 Quarterly reviews is scheduled for the following dates: • 31 October 2013: First Quarter • 31 January 2014: Second Quarter • 30 April 2014: Third Quarter • 31 July 2013: Fourth Quarter -

1.50

2) 2012-2013 1st Quarter Performance Report (Finalised during 2nd Quarter) <Refer to 2nd Qtr POE> 3) 2012-2013 Mid-year Performance Report (Finalised January 2013) <Refer to 3rd Quarter POE> 4) 2012-2013 3rd Quarter Performance Report (Finalised during 4th Quarter)

1.5.2

Organisational Performance Management

1.5.3

# of Internal Audit reports on reported Performance information submitted to Performance Audit Committee

1) Audit Report on Performance Information for the 4th quarter (Annual Performance Report) of the 2011-2012 financial year submitted to the Performance Audit Committee meeting held on 30 August 2012. 2) Audit Report on Performance Information for the 1st quarter of the 2012-2013 financial year submitted to the Performance Audit Committee meeting held on 11 April 2013. 3) Audit Report on Performance Information for the 2nd quarter (mid-year) of the 2012-2013 financial year submitted to the Performance Audit Committee meeting held on 11 April 2013. 4) Audit Report on Performance Information for the 3rd quarter of the 2012-2013 financial year submitted to the Performance Audit Committee meeting held on 28 June 2013.

# of Performance Reports submitted to Mayoral Committee

1) 4th Annual Quarter Performance Report for the 2011-2012 financial year finalised and submitted to the Mayoral Committee meeting held on 28 July 2012 <Refer to 1st Qtr POE> 2) 2012-2013 1st Quarter Performance Report finalised during October 2012 but only submitted to Mayoral Committee meeting held on 17 January 2013, reference item EM07/01/2013 <Refer to 3rd Qtr POE> 3) 2012-2013 mid-year Performance Report finalised during January 2013 and submitted to Mayoral Committee meeting held on 17 January 2013, reference item C01/01/2013 <Refer to 3rd Qtr POE> 4) 2012-2013 3rd Quarter Performance Report finalised during the 4th quarter and submitted to the Mayoral Committee meeting held on 27 June 2013, reference item EM68/06/2013

1.5.4

# of formal performance reviews conducted with Section 56 employees

Section 56 Managers Annual Evaluation meeting held 13 December 2012. Evaluations was conducted for the CFO and General Manager: ITS. <Note> Mid-year Performance Evaluations not held. The contract of the service provider (Institute for Performance Management) expired at the end of June 2012. A contract extension was entered into for the period July 2012 to December 2013 from which GSDM carried out the full PMS function exclusively in-house. During this transition period, the focus was on developing a reporting template/tool to facilitate quarterly reporting and as such individual performance reviews will be conducted after finalisation of the Annual Performance Report.

Basic service Delivery and Infrastructure Development - Advanced Community well-being

Disater Management and Safety

2.5.1

# of formal performance reviews conducted with Section 56 employees

Disaster Safety Awareness campaign held on 14 March 2014 at Kalkoenkrans, Enon and Kwasikhova primary schools within the jurisdiction of the Pixley ka Seme Local Municipality.

Capacity restraints resolved within the department which will ensure achievement of programme targets.

Lack of capacity within the department which delayed execution of 2012-2013 programmes.

90 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

Numerator: R119,291,671 - YTD Actual Operating Expenditure (Overall)

4.4.1

% of Operational Budget spend

Denominator: R129,135,622 - YTD Budget, Operational Expenditure (Overall)

4.4.2

% of Departmental Allocation spend

85.28%

90%

92.38%

3.08

81.60%

90%

48.40%

1.61

100%

78.57%

2.36

Calculation: R119,291,671/R129,135,622 = 92.38 Numerator: R23,926,320.00 - Actual YTD Expenditure (Departmental Allocation - GSDM Overall)

Disater Management and Safety

N/A - YTD target achieved

Denominator: R49,431,170.00 - Total Budget Budget (Departmental Allocation - GSDM Overall) Calculation: R23,926,320/R49,431,170 = 48.40% Delays in programme implementation as a result of the delay in the appointment of Section 56 Managers.

All Section 56 Managersâ&#x20AC;&#x2122; positions have been filled to ensure implementation of programmes and projects. Monthly reports on financial expenditure is submitted to the monthly Mayoral Committee meetings. In addition, the MPAC Committee has requested that all financial reports be submitted to scheduled MPAC Committee meetings whereby management will be held accountable with regards to underexpenditure against SDBIP projections.

Intergovernmental Relations, Good Government and Public Participation - Resource Management, Internal Governance and Information

Governance and Administration

5.1.1

Annual Performance Report submitted to AG (with AFS) on/before 31 August (annual)

2011-2012 Annual Performance Report submitted to the 11th Performance Audit Committee meeting held on 30 August 2012 and to the Offices of the Auditor-General on 31 August 2012

5.1.2

% of AG Management Letter findings resolved (annual) organisation

Numerator: 22 - # of prior year AG (2011-2012) Management letter audit findings resolved (GSDM) Denominator: 28 - Total # AG audit findings raised as per the 2011-2012 AG Management letter (GSDM) Calculation: 22/28 = 78.57%

N/A - Target achieved

Out of the remaining six (6) findings not resolved, four (4) related to IT findings. Although the target of 100% was not achieved, it must be noted that in all instances progress has been made in resolving all outstanding Management Letter Findings. In all instances, the remaining actions required, to achieve 100% compliance, only needed Council approval, which will be undertaken as documented in the Management Action Plan - refer to Corrective Action supplied in the CS Scorecard (KPI ID: 5.1.2) Two (2) findings were for action by the MM and they were: 1) Responsibilities for Information Security: The post of IT Network and Security Specialist has been advertised for the week ending 20 August 2013 2) PMS non-achievement of planned targets: Proper planning was undertaken in determining targets relevant for reporting during the 2013-2014 financial year, the MM wants all HODs to report on a monthly basis to ensure that underperformance can be rectified on a quarterly basis.

91 ANNUAL REPORT 2012-2013

100% submitted before legislated deadline

96.15%

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Government and Public Participation - Resource Management, Internal Governance and Information

# Shared Services Audit Committee meetings held 5.1.3

Governance and Administration

5.1.4

% execution of Risk based Audit Plan in lines with detailed time schedule

The following Shared Services Audit Committee meetings were held between July 2012-June 2013: 1) 21st Shared Services Audit Committee meeting held on 30 August 2012 2) 22nd Shared Services Audit Committee meeting held on 25 October 2012 3) 23rd Shared Services Audit Committee meeting held on 28 January 2013 4) 24th Shared Services Audit Committee meeting held on 12 February 2013 5) 25th Shared Services Audit Committee meeting held on 11 April 2013 Numerator: 11* * The following audit areas as per the approved 2012-2013 Internal Audit Plan has been completed: 1) Q4 Performance Information (Report submitted to Performance Audit Committee meeting held on 30 August 2012) 2) Audit of Performance System:(Report submitted to Performance Audit Committee meeting held on 11 April 2013) 3) Q1 Performance Information: (Report submitted to Performance Audit Committee meeting held on 11 April 2013) 4) Q2 Performance Information: (Report submitted to Performance Audit Committee meeting held on 11 April 2013) 5) Q3 Performance Information: (Report submitted to Performance Audit Committee meeting held on 28 June 2013) 6) Administration: (Report submitted to Audit Committee meeting held on 25 October 2012) 7) Human Resources and Payroll: (Report submitted to Audit Committee meeting held on 28 June 2013) 8) IT: (Report submitted to Audit Committee meeting held on 28 June 2013) 9) Financial Statements 10) Follow-up Audits: (Follow-up audi on HR and Payroll and IT, refer to Audit Committee meeting held on 28 June 2013) 11) Finalisation of 2013-2014 Annual Internal Audit Plans and Risk Assessment Process (Refer to Audit Committee meeting held on 28 June 2013)

N/A - Target achieved

100%

0w applied

100%

37.50%

3.75

Denominator: 11* Calculation: 11/11 = 100%

5.1.5

% of Internal Audit findings resolved (annual) organisation

The Internal Audit Department conducted the following follow-up audit work during the Financial Year ending 30 June 2013: 1) Follow-up audit on Human Resources and Payroll: Total prior year Internal Audit Findings raised: 13 Number of findings resolved: five (5) <Refer to page 23 of the Agenda for the Shared Services Audit Committee meeting held on 28 June 2013> 2) Follow-up audit on Information and Communication Technology: Total prior year Internal Audit Findings raised: three (3) Number of findings resolved: One (1) <Refer to page 38 of the Agenda for the Shared Services Audit Committee meeting held on 28 June 2013> Overall: Total prior year Internal Audit Findings raised: 16 Number of findings resolved: Six (6)

Management Comments and Implementation dates included in Internal Audit Reports submitted to the Shared Services Audit Committee meeting held 28 June 2013. Refer to Internal Audit Reports submitted to the Shared Services Audit Committee meeting held 28 June 2013: - HR & Payroll (Page 18 - 32) - IT (Page 33 - 41)

Calculation: 6/16 = 37.50

92 ANNUAL REPORT 2012-2013

1.13

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Government and Public Participation - Resource Management, Internal Governance and Information

5.1.6

Governance and Administration

# of workshops conducted to review Risk Register

N/A - Target achieved

Risk Workshop held 24 June 2013.

The following Risk Management Committee meetings were held between July 2012 and March 2013: 1) Risk Management Committee meeting held on 19 October 2012 <Refer to 2nd Qtr POE> 2) Risk Management Committee meeting held on 8 February 2013 <Refer to 3rd Qtr POE> 3) Risk Management Committee meeting held on 17 May 2013 4) Risk Management Committee meeting held on 27 June 2013

1.00

3.00

2.00

4.00

5.00

5.1.7

# of Risk Committee meetings held

5.1.8

% cases reported of corruption, fraud or malpractice, investigated within three (3) months

0w applied. No instances of corruption or fraudulent activities have been reported in the 1st, 2nd and 3rd quarters.

N/A - This KPI measures Council's reaction to fraudulant activities. As no such activities were reported, the KPI is not applicable for reporting in this quarter.

0w applied

100.00%

5.1.8

% cases reported of corruption, fraud or malpractice, investigated within three (3) months

0w applied. No instances of corruption or fraudulant activities has been reported during the 1st, 2nd and 3rd quarter.

N/A - This KPI measures Council's reaction to fraudulant activities. As no such activities were reported, the KPI is not applicable for reporting in this quarter.

0w applied

100.00%

5.1.13

% of MPAC resolutions raised and resolved per quarter

N/A - YTD Target Exceeded

1) All MPAC resolutions taken at the meeting held on 21 May 2012 were required to be submitted to Council for noting and in some instances for approval. A MPAC oversight report has been submitted to the Council meeting held on 14 June 2012 and on 28 June 2012. <Refer to 1st Qtr Scorecard> At the MPAC meeting held on 17 August 2012, the following resolutions were for action: 2) Resolution taken: The District needs to embark on the roll-out of a turn-around strategy to assist the LMs. Resolution implemented: GSDM appointed a service provider for the design and implementation of a comprehensive turn-around strategy for Lekwa and Mkhondo MLs (refer to CFO Scorecard - Project K21ID: BT 3)(2). 3) Resolution taken: Establishment of the Disctrict Wide Area Financial Forum (DAFF) Resolution Implemented: Yes, first meeting of the DAFF held on 25 June 2013 (refer to CFO Scorecard - KPI ID: 5.4.1) (3) 4) Resolution taken: In terms of Section 21 of the Local Government Municipal Finance Management Act No.56 of 2003, the budget preparation process for the 2012-2013 Budget and Financial Calendar for next year, be noted and submitted to Council for approval. Resolution implemented: Yes, budget preparation process for the 2012-2013 financial year submitted for approval to the Council meeting held on 23 August 2012. (4) At the MPAC meeting held on 25 October 2012, the following resolutions were for action: 5) Resolution taken: The Auditor-Generalâ&#x20AC;&#x2122;s Dashboard Report - Drivers of Internal Control to Achieve Clean Administration be submitted to

93 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Government and Public Participation - Resource Management, Internal Governance and Information Governance and Administration

the Mayoral Committee. Resolution implemented: Yes, report submitted to the Mayoral Committee meeting held on 8 November 2012, reference item EM116/11/2012 (5). 6) Resolution taken: The Municipal Manager must address the findings contained in the Internal Audit Report on fleet management and consider taking action where appropriate. Resolution implemented: No proof that resolution was implemented. At the MPAC meeting held on 6 December 2012, all resolutions were for noting purposes. At the MPAC meeting held on 27 February 2013 the following resolutions were for action: 7) Resolution taken: That a review be undertaken of contracts of employment documentation and appointment letters currently being issued to staff to ensure that the clauses contained in these documents permits the Council to take appropriate action and avoid any labour action. Resolution implemented: No proof that resolution was implemented. 8) Resolution taken: The Annual Report be submitted to Council for approval Resolution Implemented: Annual Report submitted to the Council meeting held on 25 March 2013 (6).

Corrective Action must be provided for the following four (4) MPAC Committee resolutions not implemented: 1) The Municipal Manager must adress the findings contained in the Internal Audit Report on Fleet Management: Follow-up audit scheduled as per approved Internal Audit Plan. 2) A review must be undertaken of contracts of employment documentation and appointment letters currently being issued to staff to ensure that the clauses contained in these documents permit Council to take appropriate action and avoid labour action: This refers to due diligence that was requested by Council. Request for proposals was submitted and only one (1) attorney responded. Subsequently, it was established that this due diligence would exceed R200000 and hence it was readvertised with the procurement process to be finalised before the end of the first quarter of the new financial year. 3) The outstanding loan amount owed by Dipalaseng LM be resolved. Request has been made to the municipality to table a report to its Council to resolve the matter.

9) Resolution taken: The process of centralisation of the Supply Chain Management Unit be undertaken with immediate effect. Resolution implemented: Yes, implemented from March 2013 through the appointment of staff and the SCM processes and procedures were ammended accordingly, with duties clearly being spelled out to SCM members. (7) At the MPAC meeting held on 14 March 2013 these resolutions were for action: 10) Resolution taken: Management recommendations relating to the perspective Audit Report/Management Letter be implemented Resolution implemented: Yes, management action plan completed with due dates for completion - refer to KPI ID: 5.1.2 for implementation of Management Action Plan. (8) 11) Resolution taken: The outstanding loan amount of R7 841 929 owed by the Dipaleseng Local Municipality be resolved between the District and the Local Municipality in a manner that does not prejudice either municipality and complies with National Treasury circulars and regulations. Resolution implemented: No resolution implemented to date. 12) Resolution taken: A comprehensive oversight report per annexure A on the Annual Report and the report of the Auditor-General, together with the findings and recommendations of the MPAC, be tabled at a full Council meeting within the mandatory statutory deadline of two months. Resolution implemented: Oversight Report submitted to Special Council meeting held on 25 March 2013, reference item C24/03/2013 (9). 13) Resolution taken: Internal Audit Unit reports and comments by the Audit Committee be tabled on a quarterly basis to the GSDMPAC. Resolution implemented: Yes, Progress Report of the Chairperson of the Performance Audit Committee for the period ending 31 May 2013

94 ANNUAL REPORT 2012-2013

N/A - New KPI

100%

78.57%

2.36

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Government and Public Participation - Resource Management, Internal Governance and Information Governance and Administration

5.1.13

% of MPAC resolutions raised and resolved per quarter

submitted to the MPAC meeting on 13 June 2013 (10) 14) Resolution taken: The Performance Management System be clearly defined, monitored and evaluated with respect to key performance areas and core managerial competencies for all section 56 and 57 managers in terms of their performance agreements. Resolution implemented: Yes, quarterly reporting done on all KPI must be included in the IDP, SDBIP and Performance Agreements. Refer to Quarterly PMS Reports and signed Performance Agreements. (11) Calculation: Total resolutions: 14 Resolutions implemented: 10 - indicated in yellow. 11/14 = 78.57%

N/A - New KPI

100%

78.57%

2.36

2) A review must be undertaken of contracts of employment documentation and appointment letters currently being issued to staff to ensure that the clauses contained in these documents permit Council to take appropriate action and avoid labour action. This refers to due dlilgence that was requested by Council. Request for proposals was submitted and only one (1) attorney responded. Subsequently, it was established that this due diligence would exceed R200000 and hence it was readvertised and the procurement process to be finalised before the end of the first quarter of the new financial year. 3) The outstanding loan amount owed by Dipalaseng LM be resolved. Request has been made to the municipality to table to its Council to resolve the matter.

Intergovernmental Relations, Good Governance and Public Participation - Deepen democracy through effectively and efficiently functional Public Participation structures, mechanism and processes Ward Committees & CDWs

5.2.1

# of IDP/Budget Izimbizo scheduled and held

IDP/Budget consultative meetings held as follows: 1) Mkhondo LM - 11/02/2013 2) Msukaligwa LM - 11/02/2013 3) Dipalaseng LM - 12/02/2013 4) Govan Mbeki LM - 12/02/2013 5) Pixley ka Seme LM - 13/02/2013 6) Lekwa LM - 13/02/2013 7) Chief Albert Luthuli LM - 15/02/2013

N/A - YTD target achieved

95 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Deepen democracy through effectively and efficiently functional Public Participation structures, mechanism and processes

Ward Committees & CDWs

5.2.2

5.2.3

# of media statements submitted to the media houses relating to Council and municipality activities

The following newspaper articles were publised relating to Council activities during the period July 2012-March 2013: 1) “MEC visits Carolina to have a taste of the water” (Khanyisa Weekly, 24-30 August 2012) <Refer to 1st Quarter POE> 2) “SALGA Strategic Goals are Set” (Khanyisa Weekly (17-23 August 2012) <Refer to 1st Quarter POE> 3) “GSDM Bursary Beneficiaries” <Refer to 1st Quarter POE> 4) “GSDM and Amakhosi join hands” (Highvelder, 10 August 2012) <Refer to 1st Quarter POE> 5) SABC invite to the Women’s Day Summit held 24 August 2012 <Refer to 1st Quarter POE> 6) “Women benefit from summit” (Khanyisa Weekly: 14-20 September 2012) <Refer to 3rd Qtr POE> 7) “GSDM summit tackles economic issues” (Khanyisa Weekly: 2-8 November 2012) <Refer to 3rd Qtr POE> 8) GSDM urges economic development (Hoevelder: 9 November 2012) <Refer to 3rd Qtr POE> 9) “Gert Sibande on job creation” (Khanyisa) <Refer to 3rd Qtr POE> 10) “GSDM empowers women” (Highvelder: 31 August 2012) <Refer to 3rd Qtr POE> 11) “Azibuyele Emasisweni” (Khanyisa: 14-20 September 2012) <Refer to 3rd Qtr POE> 12) GSDM tackles HIV-Aids <Refer to 3rd Qtr POE> 13) “Water and Sanitation District’s priority” (Highvelder: 7 June 2013) 14) “Mayoral Excellence Awards” (Highveld Tribune: 25 June 2013) 15) “GSDM learns from Indaba” (Hoevelder: 31 May 2013) 16) “Historic moment for Gert Sbande District” (Mpumalanga Mirror: 11 June 2013)

# of External Newsletters (Insight) developed and distributed

1) GSDM Insight Magazine - July 2012, Volume 3, Issue 5 2) GSDM Insight Magazine - December 2012, Volume 4, Issue 6

N/A - YTD Target achieved

N/A - New measurement

N/A - YTD target achieved

3) GSDM Insight Magazine - Volume 4, Issue 7

5.2.4

% compliance of Municipal website to MFMA requirements

Numerator:10 1) 2012-2013 Annual Budget <Date added: 12/05/2012> 2) Budget related policies <Date added: 12/11/2011> 3) 2010-2011 Annual Report - Section 75(1)(c) <Date added: 12/11/2011> 4) Section 57 Managers (CFO, MM) - Section 75(1)(d) - Only CFO, MM, ITS, PED and CSS posts filled as of date of this report <Date added: 03/15/2013> 5) Memorandum of Understanding entered into with Dipalaseng, Govan Mbeki, Mkhondo and Msukaligwa LMs - Section 75(1)(e) <Date added: 03/05/2012> 6) Absa long-term borrowing contract entered into with GSDM - Section 75(1)(f) <Date added: 12/11/2011> 7) All supply chain contracts above a prescribed value - Section 75(1)(g)

N/A - YTD target achieved

96 ANNUAL REPORT 2012-2013

100%

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Deepen democracy through effectively and efficiently functional Public Participation structures, mechanism and processes

5.2.4

% compliance of Municipal website to MFMA requirements

8) List of assets disposed of - Section 75(1)(h) <Date added: 17/07/2013> 9) Contracts having future budgetary implications - Section 75(1)(i) <Refers to Absa long-term borrowing contract <Date added: 12/11/2011> 10) All quaterly reports on the implementation of the budget and the financial state of affairs of the municipality: - Reports of financial performance for the period ending July 2012-June 2013 uploaded on the website on 29/07/2013.

N/A - YTD target achieved

100%

N/A - New KPI

100%

Denominator: 10 - Refer to instruction column Ward Committees & CDWs

10/10 = 100%

5.2.5

# of Internal newsletters/ flyers compiled and distributed to staff concerning municipal activities

Due to staff shortage in the department, the focus was on ensuring that the Quarterly Insight Magazine was finalised and distributed on time.

The following District Communication Forum meetings were held between July 2012 and June 2013: 1) District Communication Forum meeting held on 27 September 2012 (Refer to 1st Qtr POE) 2) District Communication Forum meeting held on 15 November 2012 <Refer to 2nd Qtr POE> 3) District Communication Forum meeting held on 27 March 2013 <Refer to 3rd Qtr POE> 4) District Communication Forum meeting held on 27 June 2013

5.4.1

# of District Communication Forum meetings held

5.4.2

# of District Disaster Management Advisory Forums held

6.1.1

Council adopts IDP by 31 May

IDP submitted to Council meeting held on 30 May 2013, reference item C25/05/2013

6.1.2

SDBIP approved by Mayor within 28 days after approval of budget

2013-2014 SDBIP approved 23 days after approval of budget. Date of approval: Budget - 30 May 2013 SDBIP - 21 June 2012

Coherent DecisionMaking

Disaster Management Advisory Forum meeting held on 16 October 2012. Lack of capacity in the department delayed execution of planned 2012-2013 programmes.

The needed staff compliment in the department was enhanced with the appointment of a researcher, spokesman and photographer/journalist. The Communications Department will combine efforts with the IT Department to ensure that quarterly newsletters are developed and distibuted on time.

N/A - target achieved

Capacity restraints resolved within the department, which will ensure achievement of programme targets.

Spatial rationale and municipal planning alignment

IDP

N/A - target achieved

97 ANNUAL REPORT 2012-2013

100% - IDP approved on 31 May

100% - SDBIP approved 20 days after approval of budget

ADDENDUM B OFFICE OF THE MUNICIPAL MANAGER â&#x20AC;&#x201C; PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

Corrective Action

YTD Milestones 12-13

Milestones Completed 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation

Advanced Community Well-being

CSS 5

Approved Communication Strategy & implementation plan

Draft Communication Strategy Document finalised and submitted to Portfolio Committee meeting during November 2012. Changes requested and document not completed for resubmission to Council for approval.

Draft Communication Strategy Document to be submitted to the Mayoral Committee during the 2nd Quarter and then to Council for approval.

BUDGET AND TREASURY â&#x20AC;&#x201C; KEY PERFORMANCE INDICATORS 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

4.1.1

Financial Management

4.1.2

4.1.3

Statutory Annual Financial Statements (AFS) submitted to AG on/before 31 August (annual) % compliance to MFMA checklist on Quarterly basis # of Section 71 Reports submitted to Mayoral Committee

2011-2012 Annual Financial Statements were submitted to the office of the Auditor-General for auditing on 31 August 2012.

N/A - target achieved

100%

100% compliance to 1st, 2nd, 3rd and 4th Quarter MFMA Implementation and Monitoring Checklist as submitted to Treasury.

N/A - target achieved

100%

2.75

Report on Financial Performance submitted to the Mayoral Committee for the period ending June 2013: 1) July 2012 2) August 2012 3) September 2012 4) October 2012 5) November 2012 6) December 2012 7) January 2013 8) February 2013 9) March 2013 10) May 2013 11) June 2013

In future all reports on financial matters will be filed within Office of the CFO, ensuring that all reports tabled to the Mayoral Committee are available for inspection.

The outstanding report: The report on Financial Performance for the period ending April 2013 was completed and tabled at the Mayoral Committee meeting. However it would appear that the records of the Committee Officers have not captured this information on the resolution. This report was also submitted to the Finance Portfolio Committee meeting which automaically feeds into the Mayoral Committee.

98 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

Supply chain management

4.1.4

# of SCM reports submitted in respect to internal SCM policy requirements

SCM reports submitted as follows: 1) National Treasury Summary Report on contracts awarded submitted to NT (July 2011 to June 2012); 2) Report on final awards made and deviations for July 2012 submitted to Municipal Manager; 3) Report on final awards made and deviations for August 2012 submitted to Municipal Manager; 4) Report on final awards made and deviations for September 2012 submitted Municipal Manager; 5) Quarterly report on Supply Chain Activities for the quarter ending September 2012, submitted to the Mayoral Committee meeting held on 8 November 2012, reference item EM117/11/2012; 6) Quarterly report on Supply Chain Activities for the quarter ending December 2012 submitted to the Mayoral Committee meeting held on 17 January 2013, reference item EM03/01/2013; 7) Quarterly report on Supply Chain Activities for the quarter ending March 2013 submitted to the Mayoral Committee meeting held on 9 May 2013, reference item EM62/05/2013; 8) Quarterly report on Supply Chain Activities for the period ending May 2013 submitted to the Council meeting held on 4 July 2013, reference item C34/07/2013; 9) Report on final awards made and deviations for October 2012 submitted to the Municipal Manager; 10) Report on final awards made and deviations for November 2012 submitted to the Municipal Manager; 11) Report on final awards made and deviations for December 2012 submitted to the Municipal Manager; 12) Report on final awards made and deviations for January 2013 submitted to the Municipal Manager; 13) Report on final awards made and deviations for February 2013 submitted to the Municipal Manager; 14) Report on final awards made and deviations for March 2013 submitted to the Municipal Manager; 15) Report on final awards made and deviations for April 2013 submitted to the Municipal Manager; 16) Report on final awards made and deviations for May 2013 submited to the Municipal Manager; 17) Report on final awards made and deviations for June 2013 submitted to the Municipal Manager.

N/A - YTD target achieved

99 ANNUAL REPORT 2012-2013

N/A - New KPI

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District Numerator: R1,000,000.00 - Actual MSIG budgeted expenditure Financial Management

4.1.5

4.1.6

4.2.1

% of MSIG utilisation (annual)

Denominator: R1,000,000.00 - MSIG budget allocation

N/A - New KPI

100%

N/A - New KPI

180

N/A - YTD Target Exceeded

N/A - New measurement

90.00

81.45

3.08

N/A - target achieved

65.85%

70%

79.07%

3.39

N/A - YTD target exceeded

N/A - New measurement

90%

92.98%

3.1

N/A - YTD target achieved

Calculation: R1,000,000.00/R1,000,000.00 = 100.00%

# of deviations in contravention of the SCM policy referred to the MM on a monthly basis

97 deviations from procurement processes for the period July 2012 to June 2013.

Average # of days elapsed on successful bids awarded as per the competitive bidding process for tenders over R200,000

The following awards were made during the period July 2012-June 2013 <Refer to 3rd Qtr POE: 1) BAC 36/2011 - 93 days; 2) BAC 20/2011 - 277 days 3) BAC 21/2011 - 131 days; 4) BAC 10/2012 - 148 days 5) BAC 14/2013 - 51 days; 6) BAC 14/2013 - 51 days 7) BAC 17/2013 - 51 days; 8) BAC 16/2013 - 51 days 9) BAC 18/2013 - 51 days; 10 - 16) BAC 25/2013 <Consisting of the following seven (7) tenders: 24/2012; 32/2012; 39/2012; 46/2012; 58/2012; 67/2012; 73/2012> 62 days

N/A - Deviations under the maximum threshold

The following awards were made during the period April 2013-June 2013: 17) BAC 19/2013: Tender closure date: 28/03/2013; BAC approval: 15/05/2013 Turn-around time: 49 days (28/03/2013-15/05/2013) 18) BAC 01/2013: Tender closure date: 28/03/2013 BAC approval: 13/06/2013 Turn-around time: 78 days (28/03/2013-13/06/2013) 19) BAC 04/2013: Tender closure date: 15/03/2013; BAC approval: 13/06/2013 Turn-around time: 91 days (15/03/2013 - 13/06/2013) 20) BAC 21/2013: Tender closure date: 02/04/2013 BAC approval: 13/06/2013 Turn-around time: 73 days (02/04/2013-13/06/2013) Calculation: 93 + 277 + 131 + 148 + 51 + 51 +51 + 51 + 51 + 62 + 62 + 62 + 62 + 62 + 62 + 62 + 49 + 78 + 91 + 73 = 1 629/20 = 81.45%

Supply chain management

4.2.2

Budget and Expenditure Management Services

4.4.1 CFO

% BEE certified service providers awarded tenders through the bid process (over R200000)

% of Operational Budget spend - Budget & Treasury

Numerator: 34 - Total number of contractors appointed on Infrastructure Projects (direct allocation to LMs) with valid B-BBEE status level verification certificates Denominator: 43 - Total number of tenders awarded for the period (relates to appointment of contractors only, Infrastructure Projects direct allocation to LMs) Calculation: 34/43 = 79.07%

Numerator: R13,241,746.99 - Actual YTD Operating Expenditure (Budget & Treasury) Denominator: R14,241,442 - Total Operational Budget (Budget and Treasury) Calculation: R13,241,746.99/R12,241,442 = 92.98%

100 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

4.4.2 CFO

% of Departmental Allocation spend Budget & Treasury

Numerator: R4,150,669 - YTD Actual Expenditure, Departmental Allocation (Operation Clean Audit) Denominator: R5,700,000 - YTD SDBIP Budget, Departmental Allocation (Operation Clean Audit) Calculation: R4,150,699/R5,700,000 = 72.89%

Planning completed and service providers appointed. Monitoring and evaluation is consistently being undertaken in terms of steering committee meetings among GSDM, Mkhondo and Pixley ka Seme LMs on a bi-monthly basis in order to improve on the existing Audit Opinions.

N/A - New measurement

90%

72.82%

2.43

<Note> Allocated budget refers to the implementation of a turn-around strategy with regards to Lekwa, Mkhondo and Pixley ka Seme LMs. The under-expenditure relates to the Operation Clean Audit Vote which includes the turn-around strategy for Mkhondo and Pixley ka Seme LMs. Under-expenditure against the approved budget was as a result of a delay in the planning phases as this is a 33-month project, hence expenditure was low with bulk of paymets materialising in July 2013.

Budget and Expenditure Management Services

July 2012 to March 2013 - No surplus funds available <Refer to 3rd Qtr POE>

4.4.3

Surplus funds invested

April 2013: Projected Expenses for May to July 2013: R120,442,124 Cash available: R43,823,688 (cash book balance on 30/04/2013) No surplus funds available based on projected expenditure May 2013: Projected Expenses for June to August 2013: R102,782,160 Cash available: R25,645,739 (Cash book balance on 31/05/2013) No surplus funds available based on projected expenditure

N/A - Target achieved

100%

70%

100%

4.29

June 2013: Projected Ex for March 2013 - May 2013: R104,304,361 Cash Available: R59,903,942 (Cash book balance 30/06/2013) No surplus funds available based on projected expenditure Numerator: 91 All investments investments that matured during the period July 2012 to June 2013 were held for the full term of investment as specified in the Investment Certificate.

4.4.4

% of Investments made held to mature

Denominator: 91 Forty-eight (48) investments matured during the 1st Qtr (8), 2nd Qtr (12) and 3rd Qtr (28) and the following 43 investments matured during the 4th: Maturity date: 3 April 2013: 1) Std Bank - Inv nr: - 0308654412 - 015 (R2m @5.175%) 2) Absa - Inv nr: 2072922068 (R2m @5.32%) 3) Nedbank - Inv nr: 03/7881010649/000100 (R2m @ 5.3%) 4) FNB - Inv nr: 74387211333 (R2m @ 5.2%) Maturity date: 18 April 2013: 5) Std Bank - Inv nr: 0308654412 - 016 (R2m @5.2%) 6) Absa - Inv nr: 2072922076 (R2m @5.32%) 7) Nedbank - Inv nr: 03/7881010649/000101 (R2m @ 5.32%) 8) FNB - Inv nr: 74387210723 (R2m @ 5.2%) Maturity date: 2 May 2013: 9) Std Bank - Inv nr: 038786826 - 080 (R4m @ 4.975%)

N/A - Target achieved

101 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

4.4.4

% of Investments made held to maturity

Budget and Expenditure Management Services

4.4.5

Budget approved before the start of the financial year as legislated

10) Absa - Inv nr: 2073235278 (R4m @ 5.15%) 11) Nedbank - Inv nr: 03/7881010649/000107 (R4m @ 5.13%) 12) FNB - Inv nr: 74273912318 (R4m @ 5.16%) Maturity date: 8 May 2013 13) RMB - Inv nr: 186837/0 (R2m @ 5.1%) 14) Absa- Inv nr: 2072921981 (R2m @5.2%) 15) Nedbank - Inv nr: 03/7881010649/000102 (R2m @ 5.25%) 16) FNB - Inv nr: 74393218993 (R2m @5.08%) Maturity date: 21 May 2013 17) Std Bank - Inv nr: 0308654412 - 017 (R2m @ 5.05%) 18) Absa - Inv nr: 2072922026 (R2m @5.15%) 19) Nedbank - Inv nr: 03/7881010649/000104 (R2m @ 5.2%) 20) FNB - Inv nr: 74387215616 (R2m @ 5.14%) Maturity date: 31 May 2013 21) Std Bank - Inv nr: 038786826 - 079 (R4m @ 5.025%) 22) Absa - Inv nr: 2073235252 (R4m @ 5.2%) 23) Nedbank - Inv nr: 03/7881010649/000108 (R4m @ 5.19%) 24) FNB - Inv nr: 7473913514 (R4m @ 5.17%) Maturity date: 3 June 2013 25) Std Bank - Inv nr: 038786826 - 077 (R2m @ 5.15%) 26) Absa- Inv nr: 2072922042 (R2m @ 5.2% 27) Nedbank - Inv nr: 03/7881010649 (R2m @ 5.25%) Maturity date: 5 June 2013 28) RMB - Inv nr: 188593/0 (R2m @ 5.125%) 29) Absa - Inv nr: 2072922018 (R2m @5.18%) 30) Nedbank - Inv nr: 03/7881010649/000103 (R2m @ 5.29%) 31) FNB - Inv nr: 74337427419 (R2m @ 5.26%) 32) FNB - Inv nr: 74387213115 (R2m @ 5.15%) Maturity date: 27 June 2013 33) Std Bank - Inv nr: 038786826 - 078 (R4m @ 5.075%) 34) Absa - Inv nr: 2072922076 (R2m @5.12%) 35) Nedbank - Inv nr: 03/7881010649/000109 (R4m @ 5.24%) 36) FNB - Inv nr: 74387212159 (R4m @ 5.21%) Maturity date: 27 June 2013 37) Std Bank - Inv nr: 0308654412 - 081 (R2m @ 5.05%) 38) Absa - Inv nr: 2073235260 (R4m @ 5.25%) 39) Nedbank - Inv nr: 03/7881010649/000110 (R2m @ 5.26%) 40) FNB - Inv nr: 74387210723 (R2m @ 5.17%) Maturity date: 27 June 2013 41) Absa - Inv nr: 2072922050 (R3m @ 5.12%) 42) Nedbank - Inv nr: 03/7881010649/000111 (R3m @ 5.23%) 43) FNB - Inv nr: 74273912318 (R3m @ 5.19%) Calculation: 91/91 = 100%

The 2013-2014 Annual Budget was submitted to the Council meeting held on 30 May 2013 for approval, reference item C28/05/2013

N/A - Target achieved

N/A - Target relevant to 4th quarter

102 ANNUAL REPORT 2012-2013

100%

N/A - New KPI

70%

100%

4.29

100%

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource Management, internal governance and information Numerator: 14* *14 - All findings relevant to the Finance Department as listed per the Denominator has been resolved by Management. Denominator: 14*

5.1.1 CFO

% of AG Management Letter findings resolved (annual) Finance

* Summary of findings relevant to the Finance Department: 1) Difference between FAR and AFS 2) List of accredited prospective service providers 3) SCM Internal Controls 4) SCM - Non-compliance with legislation 5) SCM - Non-compliance with SCM Regulation 13(c) 6) Annual leave provision 7) Expenditure - Non-compliance 8) SCM - Non-compliance with SCM Regulation 22(1)(b) 9) SCM - Non-compliance with CIDB regulation 24 10) SCM - Non-compliance with CIDB act section 22 11) SCM - Non-compliance with SCM regulation 23(c) 12) Commitment - Mistatement of disclosure 13) VAT receivables 14) SCM - Non-compliance with SCM regulation and the PPR 15) SCM - Non-compliance with CIDB regulation 25(5)

N/A - YTD target achieved

N/A - New measurement

100%

N/A - YTD target achieved

N/A - New measurement

100%

N/A - YTD target exceeded

N/A - New KPI

Procurement process finalised and steering committees have subsequently convened with meetings held on a by-monthly basis.

N/A - New KPI

Numerator: 1*

Governance and Administration

5.1.2 CFO

5.1.3

5.1.4

% of Internal Audit Findings resolved (annual) Finance

# of MPAC meetings held

# of TAS Steering Committee meetings to improve financial, technical, administration and service delivery in the LMs of Mkhondo, Lekwa and Dr Pixley ka Seme

* - Payroll has terminated employee without relevant documentation: Issue resolved Denominator: 1* * - Only one finding as per the follow-up audits conducted by the Internal Audit Unit were relavant to the Finance Department: 1) Payroll has terminated employee without relevant documentation. The following MPAC meetings were held during the period July 2012 to December 2012: 1) MPAC meeting held on 17 August 2012 <Refer to 2nd Qtr POE> 2) MPAC meeting held on 25 October 2012 <Refer to 2nd Qtr POE> 3) MPAC meeting held on 6 December 2012 <Refer to 2nd Qtr POE> 4) MPAC meeting held on 27 February 2013 <Refer to 3rd Qtr POE> 5) MPAC meeting held on 14 March 2013 <Refer to 3rd Qtr POE> 6) MPAC meeting held on 25 March 2013 <Refer to 3rd Qtr POE> 7) MPAC meeting held on 13 June 2013 Project delayed in terms of actual appointment of service provider owing to the magnitude of the project spanning over 33 months with a value of approximately R60m, hence prior to the adjudication process a panel had to adjudicate the presentations of approximately 17 service providers, which included big corporate firms. Although the target of actual steering commitee meetings were not achived, informal meetings were held with the CFOs of the relevant LMs as well as the appointed service providers and their respective teams.

103 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource Management, internal governance and information Coherent Decisionmaking

5.4.1

# CFO forum meetings convened

1) CFO forum meeting held on 5 July 2012 2) CFO forum meeting held on 11 June 2013 3) District Area Finance forum meeting on 25 June 2013

All efforts will be made to ensure that all CFOs from various LMs within the jurisdiction of GSDM will attend meetings.

A CFO forum meeting was scheduled for December 2012, agenda was prepared but the meeting was postponed as no quorum was reached as only the CFO of Govan Mbeki attended the meeting.

2.25

BUDGET AND TREASURY â&#x20AC;&#x201C; PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

Corrective Action

YTD Milestones 12-13

Milestones Complete 12-13

Score

Municipal Financial Viability and Management

Financial Managementt

BT 1

Asset verification (internal/external)

Year-end asset verification completed by BAUD, division of PWC.

BT 2

Facilitation of approval of adjustment budget in compliance with MFMA

Adjustments Budget submitted to the Council meeting held 31 on January 2013, reference item C02/01/2013.

BT 3

Implementation of TAS programme to provide Financial and Technical support to LMs of Mkhondo, Lekwa and Dr Pixley Ka Seme to improve AG Audit rating.

Project delayed in terms of actual appointment of service provider owing to the magnitude of the project spanning over 33 months with a value of approximately R60m, hence prior to the adjudication process a panel had to adjudicate the presentations of approximately 17 service providers which included big corporate firms.

N/A - Asset verification completed

N/A - Activity achieved

Procurement process finalised and steering committees have subsequently convened with meetings held on by-monthly basis.

Although the target of actual steering commitee meetings were not achived, informal meetings were held with the CFOs of the relevant LMs as well as the appointed service providers and their respective teams.

INFRASTRUCTURE AND TECHNICAL SERVICES â&#x20AC;&#x201C; KEY PERFORMANCE INDICATORS 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Improve the quantity and quality of Municipal basic services to the people

2.1.1

Project Management

% of Capital Projects started on time according to appointment of consultants (including multi-year projects, but excluding RBIG)

Numerator: 50 - # of identified 2012-2013 Capital Projects with already appointed consultants to assist with the bid specification process Broken down per LM: Albert Luthuli (8), Dipalaseng (7), Govan Mbeki (7), Lekwa (7), Mkhondo (8), Msukaligwa (5), Pixley ka Seme (6), and GSDM Capital (2)

Planning regarding finalised 2013-2014 Infrastructure Projects, including Transfer Projects, which will ensure prompt appointment of service providers.

Denominator: 53 - Total # of Capital Projects included in the 2012-2013 IDP (refer to instruction column for breakdown of 53 projects per LM)

Also, a framework agreement for the appointment of service providers (contractors and consultants) has also been Calculation: % projects commenced 50/53 = 94.34% finalised in conjunction with National Treasury to fast-track The two (2) projects without consultant appointments 69 ANNUAL REPORT 2012-2013 appointments and are as follows: 1) 49/2012 - Grootdraai Dam facility commencement of 2013-2014 upgrade, 2) Riverpark upgrade projects. Funding for these two projects were reallocated to the PED Department.

104 ANNUAL REPORT 2012-2013

100%

94.34%

2.83

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Improve the quantity and quality of Municipal basic services to the people

2.1.2

% of Capital Projects with approved specifications (including multi-year projects, but excluding RBIG)

Numerator: 67 - # of identified 2012-2013 Capital Projects that have completed the bid specification process. Broken down per LM as follows: Albert Luthuli (9) Dipalaseng (9) Govan Mbeki (9) Lekwa (10) Mkhondo (10) Msukaligwa (8) Pixley ka Seme (9) GSDM Capital (3) Denominator: 74 - Total # of Capital Projects included in the 2012-2013 IDP (refer to instruction column for breakdown of 74 projects per LM) % Projects approved through Bid Specification Committee: 67/74 = 90.54%

Planning regarding finalised 2013-2014 Infrastructure Projects, including Transfer Projects, which will ensure prompt appointment of service providers.

100%

90.54%

2.72

94.55%

100%

80.82%

2.42

Also, a framework agreement for the appointment of service providers (contractors and consultants) has also been finalised in conjunction with National Treasury to fast-track appointments and commencement of 2013-2014 projects.

This target was not achieved because of project implementation delays due to litigation issues surrounding the appointment of consultants and contractors. This resulted in the appointment of consultants only being considered in September 2012. This resulted in the bulk of the projects only having contractors on site in February 2013.

Project Management

Numerator: 59 - # of identified 2012-2013 Capital Projects that have completed the competitive bid process.

2.1.3

% of Capital Projects with contractor appointments finalised (including multi-year projects, but excluding RBIG)

Broken down per LM: Albert Luthuli (8) Dipalaseng (8) Govan Mbeki (9) Lekwa (9) Mkhondo (8) Msukaligwa (7) Pixley Ka Seme (8) GSDM Capital (2)

Planning regarding finalised 2013-2014 Infrastructure Projects, including Transfer Projects, which will ensure prompt appointment of service providers.

Denominator: 73 - Total # of Capital Projects included in the 2012-2013 IDP (Refer to instruction column for breakdown of 73 projects per LM) % Projects approved through the Bid Adjudication Committee: 59/73 = 80.82% This target was not achieved because of project implementation delays due to litigation issues surrounding the appointment of consultants and contractors. This resulted in the appointment of consultants only being considered in September 2012. This resulted in the bulk of the projects only having contractors on site in February 2013.

105 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Improve the quantity and quality of Municipal basic services to the people

2.1.4

# of LM Capital Projects progress reports submitted to Mayoral Committee

Progress Reports on execution of 2012-2013 Infrastructure Projects for the period ending: 1) July 2012 - Submitted to Mayoral Committee meeting held on 16 August 2012, reference item: EM82/08/2012 <Refer to 1st Qtr POE> 2) August 2012 - Submitted to Mayoral Committee meeting held on 28 September 2012, reference item EM94/09/2012 <Refer to 1st Qtr POE> 3) September 2012 - Submitted to Mayoral Committee meeting held onn 8 November 2012, reference item EM118/11/2012<Refer to 1st Qtr POE> 4) October 2012 - Submitted to the Mayoral Committee meeting held on 23 November 2012, reference item EM130/11/2012<Refer to 2nd Qtr POE> 5) December 2012 - Submitted to the Mayoral Committee meeting held on 17 January 2012, reference item EM 06/01/2013<Refer to 2nd Qtr POE> 6) February 2013 - Submitted to the Mayoral Committee meeting held on 30 April 2013, reference item EM43/04/2013 <Refer to 3rd Qtr POE> 7) March 2013 - Submitted to the Mayoral Committee meeting held on 30 April 2013, reference item EM44/04/2013 <Refer to 3rd Qtr POE>

Project Management

The outstanding months of November 2012 and January 2013 were completed by the ITS Department and submitted to Corporate Services Department for inclusion in the relevant Mayoral Committee meetings. These reports were however omitted from the Mayoral Committee agendas.

2.50

N/A - New KPI

2.25

The ITS Director will ensure that each progress report submitted to the Corporate Services Department is included in the Mayoral Committee Agenda. The Corporate Services Department was informed that each progress report must be included in the relevant agendas for the new financial year.

8) April 2013 - Submitted to the Mayoral Committee meeting held on 25 July 2013, reference item EM80/07/2013 9) May 2013 - Submitted to the Mayoral Committee meeting held on 25 July 2013, reference item EM81/07/2013 10) June 2013 - Submitted to the Mayoral Committee meeting held on 25 July 2013, reference item EM81/07

2.1.5

# of RBIG Capital Projects progress reports submitted to Mayoral Committee

1) Progress Reports on execution of 2012-2013 Infrastructure Projects for the period ending September 2012, including RBIG and ACIP projects submitted to the Mayoral Committee meeting held on 8 November 2012, reference item EM118/11/2012 (refer to page 114 of Report) <Refer to 1st Qtr POE> 2) Regional Bulk Infrastructure Grant (RBIG Programme: Implementation Progress report for the period ending December 2012 submitted to the Mayoral Committee meeting held on 17 January 2013, reference item C07/01/2013 <Refer to 2nd Qtr POE>

IRS & PDR documents to be vetted for submission to DWA by the end of August 2013. Thereafter, quarterly reports will be submitted to the Mayoral Committee.

3) Regional Bulk Infrastructure Grant (RBIG Programme) - Implementation Progress report for the period ending March 2013 submitted to the Mayoral Committee meeting held on 30 April 2013, reference item EM45/04/2013 Meeting held with the RBIG project consultants on 31 May 2013 to formulate an action plan for the completion of the Implementation Readyness Study (IRS) and Preliminary Design Reports (PDR) documents by the end of July 2013. On completion of the IRS & PDR for each project, these will be submitted to DWA. Thereafter, further progress reports will be submitted.

106 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual notes

Corrective action Baseline 11-12

Annual target 12-13

Annual actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Improve the quantity and quality of Municipal basic services to the people Municipal Support on Water Services Provision (Laboratory Services)

2.6.1

# of LMs utilising the Laboratory facility for water sampling testing (annual)

Pixley ka Seme entered into an agreement with GSDM.

N/A - target achieved

N/A - New KPI

Local Economic Development - Creation of decent jobs, poverty alleviation, sustainable livilihoods and rural development, food security and land reform through LED

Regional Economic Growth

3.1.1

# of FTE jobs created in the EPWP programme through Capital Projects implemented in infrastructure development

Refer to KPI ID: 3.1

232

110

3.67

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District Numerator: R76,954,553 - Actual expenditure: Direct Allocations/Projects

4.2.1

% of Direct Allocation Capital Budget spend (LMs allocation excl RBIG)

Budget and Expenditure Management Services

Denominator: R132,545,945 - Budgeted Expenditure: Direct Allocations/Projects Calculation: R76,954,553/R132,545,553 = 58.06% This target was not achieved because of project implementation delays due to litigation issues surrounding the appointment of consultants and contractors. This resulted in the appointment of consultants only being considered in September 2012. This resulted in the bulk of the projects only having contractors on site in February 2013.

Planning regarding finalised 2013-2014 Infrastructure Projects, including Transfer Projects, which will ensure prompt appointment of service providers. Also, a Framework Agreement for the appointment of service providers (contractors and consultants) has also been finalised in conjunction with National Treasury to fast-track appointments and commencement of 2013-2014 projects, which will be reflected in the expenditure reporting against SDBIP cashflow projections.

80.79%

85%

58.06%

2.05

86.40%

80%

74.05%

2.78

N/A - New KPI

70%

79.37%

3.4

Numerator: R15,919,770* * YTD actual expenditure - internal capital budget - New office complex: R5,403,668 - Disaster centres: R9,617,276 - Laboratory equipment: R898,826 - Regional convention centre: R0

4.2.2

% of total GSDM (internal) capital budget spend

Denominator: R21,500,000 - Total budget (internal capital budget: new office complex, disaster centres, laboratory equipment, municipal guesthouse, regional convention centre) Calculation: R15,919,770/R21,500,000 = 74.05% As noted under KPI 4.2.1, project implementation slow as a result of the appointment of Consultants only being considered in September 2012, which will result in the bulk of the projects only having contractors on site in February 2013.

4.2.3

% Department of Water Affairs (DWA) spend RBIG projects (annual)

Numerator: R17,460,330 - Actual Expenditure - RBIG Allocation Denominator: R22,000,000 - Total Budget - RBIG Allocation

N/A - target exceeded

Calculation: R17,460,330/R22,000,000 = 79.37

107 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District Numerator: R15,946,285.31 - Actual Expenditure: Operational Budget (ITS)

Budget and Expenditure Management Services

4.4.1 ITS

% of Operating Budget spend ITS

Denominator: R17,770,040 - Total Budgeted Expenditure: Operational Budget (ITS) Calculation: R15,946,285.31/R17,770,040 = 89.74%

Numerator: R2,453,819 - Actual YTD Expenditure (Departmental Allocation - ITS)

4.4.2 ITS

% of Departmental allocation spend (excl Capital Project related expenditure) ITS

Denominator: R18,481,170 - Total Budget (Departmental Allocation ITS) Calculation: R2,453,819/R18,481,170 = 13.28% This target was not achieved because of project implementation delays due to litigation issues surrounding the appointment of consultants and contractors. This resulted in the appointment of consultants only being considered in September 2012. This resulted in the bulk of the projects only having contractors on site in February 2013.

N/A - target exceeded

N/A - New measurement

70%

89.74%

70%

11.1%

2.78 3.85

N/A - New measurement

Intergovernmental Relations, Good Governance and Public Participation - Create a window of co-ordination for the support, monitoring and intervention in municipalities within the District

Coherent DecisionMaking

5.4.1

5.4.2

# of Technical Infrastructure District Forum meetings held (incl sector collaboration meetings)

# of RBIG Capital Project Steering Committee meetings held

The following HOD Technical Forum meetings were scheduled and held during the period: 1) HOD Technical Forum meeting held on 16/08/12 <Refer to 1st Qtr POE> 2) HOD Technical Forum meeting held on 15/11/12 <Refer to 2nd Qtr POE> 3) HOD Technical Forum meeting held on 14/02/13 4) HOD Technical Forum meeting held on 13/06/13 The following RBIG Programme Project meetings were held: 1) Msukaligwa - Emergency Pipeline, meeting held on 15 January 2013; 2) Msukaligwa - Emergency Pipeline, meeting held on 29 January 2013; 3) Msukaligwa - Emergency Pipeline, meeting held on 12 February 2013; 4) Msukaligwa - Professional Team Introductory Meeting, held on 18 February 2013 5) Msukaligwa - Emergency Pipeline, meeting held on 25 February 2013; 6) Msukaligwa - Emergency Pipeline, meeting held on 26 February 2013; 7) Msukaligwa - Emergency Pipeline, meeting held on 12 March 2013; 8) RBIG Project Implementation Readyness Study Meeting, held on 31 May 2013.

N/A - YTD target achieved

1. Further formal clarity awaited from DWA regarding RBIG projects to be taken over by MEGA. In the interim DWA has requested GSDM to finalise the Implementation Readyness Studies (IRS) for all the projects. This process is under way.

N/A - New KPI

2. In respect of the Ermelo pipeline project, GSDM is awaiting approval from DWA in order to commence with the implementation of the project. On receipt of the approval, the Project Steering Committee (PSC) will be established.

GSDM was originally responsible for the implementation of four (4) RBIG projects in Msukaligwa(1), CALM (2) and Dipaleseng (1). A directive was issued by COGTA for MEGA to take over RBIG projects in CALM, which resulted in the reduction of the number of RBIG meetings to eight (8). Dipaleseng RBIG business plan has not been approved by DWA hence most meetings have been limited to Msukaligwa RBIG.

108 ANNUAL REPORT 2012-2013

ADDENDUM B INFRASTRUCTURE AND TECHNICAL SERVICES – PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

ITS 1

Update Bulk Water/ Sewerage Report

YTD milestone of Section 6 to 9 of the IWMP completed in the 3rd quarter - refer to KPI ID: 2.2

ITS 2

Implementation of RBIG Projects with respect to water installation upgrade and replacement

Business plans/feasibility studies completed for the following four (4) RBIG: 1) GSDM 49/2010 2) GSDM 50/2010 <Contractor appointed> 3) GSDM 51/2010 4) GSDM 52/2010 <Contractor appointed>

ITS 3

Establishment of a centralised project management unit to coordinate/ control MIG expenditure by local municipalities

Service Level Agreements enetered into and signed between GSDM and the seven (7) Local Municipalities within GSDM’s jurisdiction.

Corrective Action

YTD Milestones 12-13

Milestones Completed 12-13

Score

Basic service delivery and infrastructure development

Municipal Support on Water Services Provision

MIG Funding Coordination

N/A - 4th quarter milestone achieved in the 3rd quarter.

N/A - YTD milestones achieved

N/A - Activity achieved

CORPORATE SERVICES – KEY PERFORMANCE INDICATORS 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

40%

69.57%

Score

Municipal Transformation and Institutional Transformation - Improve and sustain Financial, Human Resources and Management Excellence

1.1.1

Institutional Capacity

Review GSDM organisational structure and submit to Council for approval (annual)

% approved critical vacant positions filled 1.1.2 (task level 14 and above )

The 2013-2014 GSDM Organogram was approved by the MM on 30 May 2013. Organogram passed by Council together with the approval of the IDP at the Council meeting held on 30 May 2013.

Numerator: 16 - # of identified critical positions filled post level (task level 14 and above) during the period July 2012-June 2013. The following budgeted vacant/new posts were filled during the period under review: 1) Municipal Manager (GSDMMM01) - post filled on 15/09/2012 (CA Habile) <Refer 2nd Qtr POE>; 2) CFO (GSDMFIN001) - post filled (AY Singh) 3) General Manager: Technical Services and Infrastructure (GSDMTSI001): - post filled on 15/10/2012 (SB Vilane) <Refer 2nd Qtr POE>; 4) General Manager: Community and Social Services (GSDMCSD001) - post filled on 01/12/2012 (M Kunene) <Refer 2nd Qtr POE>; 5) General Manager: Planning and Economic Development (GSDMPED001) - post filled on 01/12/2012 (SS Zikalala) <Refer 2nd Qtr POE>; 6) Manager: Auxiliary Services (GSDMCS021) - post filled on 02/07/2012 (LM Hadebe) <Refer 2nd Qtr POE>; 7) Manager: Records Management (GSDMCS022) - post filled on 01/10/2012 (JE Khumalo) <Refer 2nd Qtr POE>; 8) Manager: Office of the Executive Mayor (GSDMCS000) - post filled on 01/11/2012 (S Zwane) <Refer 2nd Qtr POE>; 9) Manager: Municipal Support (GSDMMM003) - post filled on 01/02/2013 (N Mthembu); <Refer to 3rd Qtr POE> 10) Town and Regional Planner (GSDMPED013) - post filled on 1/2/2014 (PB Nkosi); <Refer to 3rd Qtr POE>

109 ANNUAL REPORT 2012-2013

N/A - YTD target achieved

N/A - Target exceeded

33.33%

ADDENDUM B CORPORATE SERVICES â&#x20AC;&#x201C; KEY PERFORMANCE INDICATORS 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Transformation and Institutional Transformation - Improve and sustain Financial, Human Resources and Management Excellence

% approved critical vacant positions filled 1.1.2 (task level 14 and above )

11) Manager: IDP (GSDMPED015) - post filled on 4/3/2013 (AS Ngobe); <Refer to 3rd Qtr POE> 12) Senior Manager: SCM (GSDMFIN006) - post filled on 7/1/2013 (AO Mprah); <Refer to 3rd Qtr POE> 13) Manager: Library Services (GSDMCSD008) - post filled on 7/1/2013 (N Hlongwane); <Refer to 3rd Qtr POE> 14) Senior Engineer: Water Conservation (GSDMTSI022) - post filled on 01/3/2013 (NP Batala) <Refer to 3rd Qtr POE> 15) Senior Manager: Project Management (GSDMTSI007) - post filled on 10/09/2012 (J du Plooy) <Refer to 3rd Qtr POE> 16) Senior Manager: Disater Management (GSDMCSDS006) - post filled on 24/06/2013 (MM Selepe).

N/A - Target exceeded

33.33%

40%

69.57%

14.63%

40%

63.64%

4.77

7.25%

8.70%

Denominator: 23 - # of budgeted vacant/new positions post level (task level 14 and above) as per organogram in the period under review (refer to instruction column) % compliance 16/23 = 69.57% Numerator: 35 - # of identified critical positions filled post level (task level 13 and under) in the period under review. % approved vacant positions filled (total 1.1.3 organisation, task level 13 and under)

35 appointments: 9 (as reported at mid-year - refer to 2nd Qtr Scorecard) + 24 as reported at the end of the 3rd Quarter) 2* = 35 *Two (2) appointments related to the following new employees: 1) Communications Researcher (GSDMMM025) - post filled on 24/03/2013 (L Sikhonde) 2) Clerk Administration (GSDMCSD021) - post filled on 02/10/2012 (M Naicker)

N/A - YTD target achieved

Denominator: # of budgeted vacant/new positions, task level 13 and under) as per organogram in the period under review = 55 % compliance 35/85 = 63.64% Institutional Capacity

% staff 1.1.4 turnover rate YTD

Numerator: Total # of resignations tendered by permanent employees during the period July 2012-June 2013. Total = 12 Details of resignations during the period July 2012-June 2013: 1) BK Malebye - Empl nr: 0204 (resignation date: 30/09/2012) - refer to 1st Qtr POE 2) CJ Prinsloo - Empl nr: 0033 (resignation date: 31/10/2012) - refer to 2nd Qtr POE 3) KN Radebe - Empl nr: 0048 (Resignation date: 26/10/2012) - refer to 2nd Qtr POE 4) NT Msimanga - Empl nr: 0072 (resignation date: 26/10/2012) - refer to 2nd Qtr POE 5) SL Mahlangu - Empl nr: 0271 (resignation date: 28/09/2012) - refer to 2nd Qtr POE 6) HP Sithole - Empl nr: 0106 (resignation date: 28/05/2013) 7) MJ Wells - Empl nr: 0127 (resignation date: 31/03/2013) 8) DV Ngcobo - Empl nr: 0155 (resignation date: 01/03/2013) 9) VM Motha - Empl nr: 0208 (resignation date: 28/03/2013) 10) NP Ndlanya - Empl nr: 0219 (resignation date: 08/04/2013) 11) Z Mvusi - Empl nr: 0237 (resignation date: 30/04/2013) 12) MS Msibi - Empy nr: 0256 (resignation date: 30/03/2013) Denominator: Average total # of employees on the monthly payroll in the period under review. Accum average employment level: July 2012: 124; August 2012: 121; September 2012: 126; October 2012: 125; November 2012: 134; December 2012: 135; January 2013: 140; February 2013: 149; March 2013: 152; April 2013: 152; May 2013: 149; June 2013: 148 Average # of employees: 124 + 121 + 126 + 125 + 134 + 135 + 140 + 149 + 152 + 152 + 149 + 148 = 1,655/12 = 138 % Turnover = 12/138 = 8.70%

110 ANNUAL REPORT 2012-2013

The Corporate Services Department has drafted a Retention and HR Strategy that will inform actions to safeguard GSDM from high turnover of staff.

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Transformation and Institutional Transformation - Improve and sustain Financial, Human Resources and Management Excellence Numerator: 12* * The following women were appointed in senior management positions: 1) MC Gerber - Senior Manager: Budget 2) VRM Matlala - Manager: Salaries 3) CL Taitai - Manager: Building 4) BP Dlamini - Outreach Officer % achievement 5) VM Tshabalala - Head Scientific Services for Gender 6) CKB Mkhwanazi - Manager: Transversal 1.2.1 Equity (annual) 7) Z Mvusi - Senior Manager: Projects 8) JE Khumalo - Manager: Records 9) S Zikalala - General Manager: PED 10) NS Hlongwane - Manager: Library 11) NP Batala - Senior Engineer 12) AS Ngobe - Manager: PED

The GSDM demographic profile will be implemented in terms of new appointees during the 2013-2014 financial year to ensure compliance with the approved EEP.

14.63%

40%

63.64%

4.77

60%

100%

60%

1.8

Denominator: 38 Calculation: 12/38 = 31.58% Numerator: 6 - Actual Management Letter findings (2011-2012 AG Management Letter) resolved by management. Refer to Denominator (findings highlighted in green has been resolved). Denominator: 10 - total IT-related findings included in the 2011-2012 AG Management Letter*

% of AG computer information systems audit 1.3.1 findings resolved (annual)

* The following findings were included in the 2011-2012 AG Managmenet Letter and relate to the ITC Department: 1) Monitoring of service level agreements (resolved); 2) Information technology security policy (resolved); 3) Patch management standards and procedures; 4) Formal documented and approved process of managing the process of granting users access; 5) Formal access request documentation; 6) Processes to ensure the periodic review of usersâ&#x20AC;&#x2122; access and privileges on all financial systems (resolved); 7) Independent reviews of the system administratorsâ&#x20AC;&#x2122; activities (resolved); 8) Linkage of each username to a specific user (Uniquely identifiable to determine accountability (resolved); 9) Monitoring of vendor access to the production environment (resolved), 10) Back-up and retention strategy. <Note> Although the target of 100% was not achieved it must be noted that in all instances progress has been made in resolving all outstanding Management Letter Findings. In all instances, the remaining actions required,for 100% compliance only require the final step of Council approval, which will be undertaken as documented in the Management Action Plan - refer to Corrective Action.

Corrective Action for remaining management action findings: 1) Patch management standards and procedures: The National ICT Governance Framework to be adopted by March 2014. This framework will define and refine the patch management standards and procedures. All other products will be patched in terms of the vendor SLAs. 2) Formal documented and approved process of managing the process of granting users access: the National ICT Governance Framework to be adopted by March 2014. This framework will define and refine the approval process. 3) Formal access request documentation: The process and forms will be presented to the Policy Portfolio Committee and then workshop before submitted to Council for approval. 4) Back-up and retention strategy: strategy developed. The National ICT Governance Framework to be adopted by March 2014. This framework will define and refine the approval process.

Information Communication Technology (ICT) Services % of IT service requests 1.3.2 finalised within SLA parameters

Mechanism to measure KPI not in place. Reporting on this KPI is dependent on a fully functional Help Desk Coordinator which was piloted with the use of an intern for the first quarter of the financial year. Subsequently, the employee needed to manage the Help Desk was redeployed in the organisation, leaving the position of Help Desk Coordinator vacant. It must be noted that in the first quarter the target of 95% was exceeded and a score of 0% is only allocated as any performance would not be able to be substantiated with accurate and credible POE.

111 ANNUAL REPORT 2012-2013

The Help Desk Coordinator post has been approved to be advertised and interviews and filling of the post to be concluded during the first quarter of the new financial year. Filling this position should ensure that reporting on this KPI is done with adequate and credible POE to substantiate any reported performance against the set targets.

N/A - New KPI

95%

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Transformation and Institutional Transformation - Improve and sustain Financial, Human Resources and Management Excellence Information Communication Technology (ICT) Services

1.3.3

% availability IT system infrastructure

TThe Help Desk Coordinator post has been approved to be advertised and interviews and filling of the post to be concluded during the first quarter of the new financial year. Filling this position should ensure that reporting on this KPI is done with adequate and credible POE to substantiate any reported performance against the set targets.

N/A - New KPI

95%

N/A - New KPI

80%

81.1%

54.06%

50%

52.9%

A) Calculation of survey results:

1.3.4

% internal employee satisfaction with ICT Services

Numerator: 209 - Total number of staff that conducted the survey with a rating given to IT services between good and excellent for the following criteria: - Approach - Efficiency - Availability

N/A - Target achieved

3.04

Denominator: 336 - Total number of staff across all fields indicated as per staff survey for the following criteria: - Approach - Efficiency - Availability Calculation: 209/336 = 62.20% B) 100% allocated Overall calculation: 62.20% + 100% = 162.20%/2 = 81.10%

Skills Development and Capacity Building

1.4.1

% skills levy received in rebate from LG SETA (annual)

Numerator: R309,109.98 - Total LG SETA Income/Rebate 2012/13 Denominator: R584,325.50 - Total SDL paid in July 2012-June 2013

N/A - Target exceeded

Calculation: R309,109.98/R584,325.50 = 52.90%

112 ANNUAL REPORT 2012-2013

3.17

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Municipal Financial Viability and Management - Improve and sustain Financial Human Resources and Management Excellence across the District

Skills Development and Capacity Building

Numerator: R47,317,964.20 - YTD Actual Operational Expenditure (Corporate Services) 4.4.1 CS

% of Denominator: Operational R59,812,540 - Total Operational Budget (Corporate Services) Budget spend Calculation: R47,317,964.20/R59,812,540.00 = 79.11%

Monthly reports on financial expenditure is N/A - New submitted to the monthly Mayoral Committee measuremeetings. In addition, the MPAC Committee ment has requested that all financial reports be submitted to MPAC Committee meetings whereby management will be held accountable with regards to under-expenditure against SDBIP projections.

90%

79.11%

2.64

90%

61.23%

2.04

100%

60%

4.4.2 CS

Denominator: % of R4,800,000.00 - Total Budget Allocation - CS Departmental Calculation: Allocation R2,938,822/R4,800,000.00 = 61.23% spend

Monthly reports on financial expenditure is submitted to the monthly Mayoral Committee meetings. In addition, the MPAC Committee has requested that all financial reports be submitted to MPAC Committee meetings whereby management will be held N/A - New accountable with regards to under-expenditure KPI against SDBIP projections.

During the year under review the HOD post was vacant with even employees that had been appointed in acting positions being seconded away from GSDM to serve in other acting positions in local municipalities within the jurisdiction of GSDM. The outcome of this uncertain leadership vacuum resulted in the daily operation of the Corporate Services Department not functioning properly. Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information Numerator: 6 - Actual Management Letter findings (2011/12 AG Management Letter) resolved by management Refer to Denominator (findings highlighted in green has been resolved)

Governance and Administration

5.1.1 CS

% of AG Management Denominator: Letter findings 11 - Total IT-related findings included in the 2011-2012 AG resolved Management Letter* (annual)

* The following findings were included in the 2011-2012 AG Managmenet Letter and related to the ITC Department: 1) Monitoring of service level agreements (resolved); 2) Information technology security policy (resolved); 3) Patch Management standards and procedures; 4) Formal documented and approved process of managing the process of granting users access; 5) Formal access request documentation; 6) Processes to ensure the periodic review of usersâ&#x20AC;&#x2122; access and privileges on all financial systems (resolved); 7) Independent reviews of the system administratorsâ&#x20AC;&#x2122; activities (resolved); 8) Linkage of each username to a specific user (uniquely identifiable to determine accountability (resolved) 9) Monitoring of vendor access to the production environment (resolved); 10) Back-up and retention strategy; and 11) PMS: non-achievement of planned targets. <Note> Although the target of 100% was not achieved, it must be noted that in all instances progress has been made in resolving all outstanding Management Letter Findings. In all instances, the remaining actions required for 100% compliance only require the final step of Council approval which will be undertaken as documented in the Management Action Plan refer to Corrective Action. With regards to non-achievement of targets - the position of HOD: Corporate Services was vacant for the whole financial year and was only filled subsequent to the year ending 30 June 2013.

Corrective Action for remaining management action findings: 1) Patch management standards and procedures: the National ICT Governance Framework to be adopted by March 2014. This framework will define and refine the patch management standards and procedures. All other products will be patched in terms of vendor SLAs. 2) Formal Documented and approved process of managing the process of granting users access: The National ICT Governance Framework to be adopted by March 2014. This framework will define and refine the approval process. 3) Formal access request documentation: the process and forms will be presented to the Policy Portfolio Committee and then workshop before being submitted to Council for approval. 4) Back-up and retention strategy: strategy developed. The National ICT Governance Framework to be adopted by March 2014. This framework will define and refine the approval process. 5) Non-achievement of planned targets: The HOD position has been filled and all IDP and SDBIP KPIs targets have been workshopped with the newly appointed HOD. The Municipal Manager has instructed all HODs to submit monthly performance reports to ensure under-performance is detected and rectified in each quarter.

113 ANNUAL REPORT 2012-2013

N/A - New measurement

1.8

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Baseline 11-12

Corrective Action

Annual Target 12-13

Annual Actual 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information

% of Internal 5.1.2 Audit findings resolved CS (annual)

The Internal Audit Department conducted the following follow-up audit work during the financial year ending 30 June 2013 which was relevant to the Corporate Services Department: 1) Follow-up audit on Human Resources and Payroll: Total prior year Internal Audit Findings Raised: 12 Number of findings resolved: four (4) <Refer to page 23 of the Agenda for the Shared Services Audit Committee meeting held on 28 June 2013> 2) Follow-up audit on Information and Communication Technology: Total prior year Internal Audit Findings raised: three (3) Number of findings resolved: One (1) <Refer to page 38 of the Agenda for the Shared Services Audit Committee meeting held on 28 June 2013>

The new HOD for the Corporate Services Department will ensure that all outstanding Audit Findings are resolved as per agreed timelines per follow-up audit reports.

N/A - New measure- 100% ment

33.33%

95%

2.85

Overall: Total prior year Internal Audit Findings raised: 15 Number of findings resolved: Five (5) Calculation: 5/15 = 33.33%

Governance and Administration

% of Council policies identified for review that were updated 5.1.3 and re-submitted to Council (annual)

Phase 1 (80% weighting): Numerator: 19* Denominator: 20* * Council approved policies: 1) Budget Policy; 2) Supply chain management policy; 3) Fixed asset policy; 4) Fraud prevention plan; 5) Cash management and investment policy; 6) Risk management 7) Disciplinary and grievance procedure (excluded as the collective bargaining agreement is applied); 8) Recruitment, selection, appointments, transfers, demotions and promotions; 9) Training and development; 10) Vehicle policy; 11) Performance management system; 12) Code of conduct (excluded as the collective bargaining agreement is applied) 13) Employee Assistance Programme; 14) Induction of new employees; 15) Employee conditional study grant 16) Experential training, Volunteerism and internship; 17) Acting allowance; 18) People with disability; 19) Job evaluation (excluded as the task grade system is applied; 20) Compensation for occupational diseases and injuries; 21) Catering and refreshments; 22) Consumption of alcohol or any abusive substance, and 23) IT policy A) Calculation: 19/20 x 80% = 76.00%

The remaining policy, the Employee Assistance Policy, was drafted and will be submitted to the next Council meeting scheduled for the 2013-2014 financial year.

79.79%

100%

Phase 2 (20%): Numerator: 19* * The following updated and reviewed policies were submitted to the Council meeting held on 30 May 2013: 1) Supply Chain; 2) Budget Policy; 3) Fixed Asset Policy; 4) Cash Management and Investment Policy. The remaining policies submitted to the Council meeting held on 4 December 2012, reference item: C108/12/2012 Denominator: 20 B) Calculation: 19/20 x 20% = 19% 76%(A) + 19%(B) = 95%

5.1.4

% of new policies developed and submitted to Council (annual)

Numerator: 9* * The following newly developed policies were submitted to the Council meeting held on 4 December 2012, reference item C108/12/2012: 1) Travelling Policy 2) Relocation Policy 3) HIV-Aids Policy

114 ANNUAL REPORT 2012-2013

4.5

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12/13 -

Annual Actual 12-13

49.23%

50%

75%

4.5

100%

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information % of new policies developed and 5.1.4 submitted to Council (annual)

4) Donations Policy 5) Overtime Policy 6) Attendance and Punctuality Policy 7) Compensation for damages caused to political office bearers due to unrest 8 Sexual harassment 9) Smoking Policy

N/A - YTD target achieved

Denominator: 12 - Refer to instruction column Calculation: 9/12 = 75%

Governance and Administration

5.1.5

% of Mayoral committee meetings minutes approved

Numerator: 13* * The following Mayoral Committee meetings were held between April and December 2012: 1) Mayoral Committee meeting held on 23 May 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 22 June 2012 <Refer to 1st Qtr POE>; 2) Mayoral Committee meeting held on 12 June 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 31 July 2012 <Refer to 1st Qtr POE> 3) Mayoral Committee meeting held on 22 June 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 31 July 2012 <Refer to 1st Qtr POE>; 4) Mayoral Committee meeting held on 1 August 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 17 August 2012 <Refer to 2nd Qtr POE>; 5) Mayoral Committee meeting held on 17 August 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 28 September 2012 <Refer to 2nd Qtr POE>; 6) Mayoral Committee meeting held on 28 September 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 2 November 2012 <Refer to 2nd Qtr POE>; 7) Mayoral Committee meeting held on 15 October 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 8 November 2012 <Refer to 3rd Quarter POE>; 8) Mayoral Committee meeting held on 8 November 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 26 November 2012 <Refer to 3rd Quarter POE>; 9) Mayoral Committee meeting held on 26 November 2012 - Minutes submitted for approval to Mayoral Committee meeting held on 17 January 2013 <Refer to 3rd Qtr POE>; 10) Mayoral Committee meeting held on 17 January 2013 - Minutes submitted for approval to the Mayoral Committee meeting held on 28 February 2013; 11) Mayoral Committee meeting held on 22 January 2013 - Minutes submitted for approval to the Mayoral Committee meeting held on 28 February 2013; 12) Mayoral Committee meeting held on 28 February 2013 - Minutes submitted for approval to the Mayoral Committee meeting held on 30 April 2013; and, 13) Mayoral Committee meeting held on 25 March 2013 - Minutes submitted for approval to the Mayoral Committee meeting held on 30 April 2013.

N/A - YTD Target achieved

Denominator: 13* * Meetings held between April and March 2012: 1) Mayoral Committee meeting on 23 May 2012 2) Mayoral Committee meeting held on 12 June 2012 3) Mayoral Committee meeting held on 22 June 2012 4) Mayoral Committee meeting held on 1 August 2012 5) Mayoral Committee meeting held on 17 August 2012 6) Mayoral Committee meeting held on 28 September 2012 7) Mayoral Committee meeting held on 15 October 2012 8) Mayoral Commitee meeting held on 8 November 2012 9) Mayoral Committee meeting held on 26 November 2012 10) Mayoral Committee meeting held on 17 January 2013 11) Mayoral Committee meeting held on 22 January 2013 12) Mayoral Committee meeting held on 28 February 2013 13) Mayoral Committee meeting held on 25 March 2013 Calculation: 13/13 = 100%

115 ANNUAL REPORT 2012-2013

N/A - New Measure- 100% ment

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Annual Target Actual 12-13 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information

5.1.6

% of Portfolio Committee meetings minutes approved

Numerator: 8* *The following eight (8) MPAC Committee meetingsâ&#x20AC;&#x2122; minutes were submitted for approval: 1) The MPAC meeting held on 16 May 2012 - Minutes submitted to the MPAC meeting held on 21 May 2012; 2) The MPAC meeting held on 21 May 2012 - Minutes submitted to the MPAC meeting held on 7 June 2012; 3) The MPAC meeting held on 17 August 2012 - Minutes submitted to the MPAC meeting held on 25 October 2012; 4) The MPAC meeting held on 25 October 2012 - Minutes submitted to the MPAC meeting held on 6 December 2012; 5) The MPAC meeting held on 6 December 2012 - Minutes submitted to the MPAC meeting held on 27 February 2013; 6) The MPAC meeting held on 27 February 2013 - Minutes submitted to the MPAC meeting held on 14 March 2013; 7) The MPAC meeting held on 14 March 2013 - Minutes submitted to the MPAC meeting held on 25 March 2013; and 8) The MPAC meeting held on 25 March 2013 - Minutes submitted to the MPAC meeting held on 13 June 2013.

N/A - YTD target achieved

N/A - New 100% KPI

100%

N/A - YTD target achieved

N/A - New measurement

100%

Denominator: 8* * These MPAC meetings were held between April 2012 and March 2013: 1) MPAC meeting held on 16 May 2012 2) MPAC meeting held on 21 May 2012 3) MPAC meeting held on 17 August 2012 4) MPAC meeting held on 25 October 2012 5) MPAC meeting held on 6 December 2012 6) MPAC meeting held on 27 February 2013 7) MPAC meeting held on 14 March 2013, and 8) MPAC meeting held on 25 March 2013. Governance and Administration

5.3.1

% of Council committee meetings minutes approved

Numerator: 8* * The following Council meetings were between April 2012 and March 2013: 1) Ordinary Council meeting held on 31 May 2012 - Minutes submitted to Council meeting held on 23 August 2012 <Refer to 1st Qtr POE>; 2) Special Council meeting held on 14 June 2012 - Minutes submitted to Council meeting held on 23 August 2012 <Refer to 1st Qtr POE>; 3) Special Council meeting held on 28 June 2012 - Minutes submitted to Council meeting held on 23 August 2012 <Refer to 1st Qtr POE>; 4) Special Council meeting held on 17 July 2012 - Minutes submitted to Council meeting held on 23 August 2012 <Refer to 1st Qtr POE>; 4) Council meeting held on 23 August 2012 - Minutes submitted to Council meeting held on 4 December 2012 <Refer to 2nd Qtr POE>; 5) Special Council meeting held on 31 August 2012 - Minutes submitted to Council meeting held on 4 December 2012 <Refer to 2nd Qtr POE>; 6) Special Council meeting held on 13 November 2012 - Minutes submitted to Council meeting held on 4 December 2012 <Refer to 2nd Qtr POE>; 7) Council meeting held on 4 December 2012 - Minutes submitted to Council meeting held on 31 January 2013 <Refer to 3rd Qtr POE>; 8) Special Council meeting held on 12 December 2012 - Minutes submitted to Council meeting held on 31 January 2013 <Refer to 3rd Qtr POE>; 9) Council meeting held on 31 January 2013 - Minutes submitted to Council meeting held on 30 May 2013; and, 10) Special Council meeting held on 25 March 2013 - Minutes submitted to Council meeting held on 30 May 2013. Denominator: 10* * Meetings held between April 2012 and March 2013: 1) Ordinary Council meeting held on 31 May 2012; 2) Special Council meeting held on 14 June 2012; 3) Special Council meeting held on 28 June 2012; 4) Council meeting held on 23 August 2012;

116 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Annual Target 12-13

Annual Actual 12-13

N/A - New 100% measurement

100%

Baseline 11-12

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information

Governance and Administration

5.3.1

% of Council Committee meetings minutes approved

5) Special Council meeting held on 31 August 2012 6) Special Council meeting held on 13 November 2012 7) Council meeting held on 4 December 2012 8) Special Council meeting on 12 December 2012 9) Council meeting held on 31 January 2013 10) Special Council meeting held on 25 March 2013

N/A - YTD target achieved

Calculation: 10/10 = 100%

CORPORATE SERVICES – PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

Corrective Action

YTD Milestones 12-13

Milestones Completed 12-13

Score

Municipal transformation and institutional transformation Information CommunicaCS 1 tion Technology (ICT) Services

Develop and conduct an internal questionnaire ito of ICT service provision

Questionnaire template finalised and circulated to staff members. In line with the organisational aim of improving service delivery, the performance of the ICT must be evaluated for effectiveness. Quarterly surveys will be conducted as from the 2012-2013 financial year. The baseline was set at 0% for the first quarter, with the aim of achieving 25% for the second quarter. The ICT Unit is expected to use the results of the survey to improve various areas of weakness and progressively reach a result of better than 95% by the end of the fourth quarter and beyond. Non-response to the survey will be deemed to be that the respondents are 100% satisfied with the service. The ratings on the survey are: Bad =0%; Poor = 25%; Okay = 50%; Good = 75%, and Excellent = 100%.

HOD post for Corporate Services vacant for the 2012-2013 financial year. Post was filled in July 2013, and results of survey will be submitted to the HOD to inform on staff and IT requirements.

1.00 1

The survey is conducted via a website. This will ensure that respondents remain anonymous and that the results can be independently verified. No personal data or respondent’s email address is required. The department indicator is for analysis and reporting purposes only. The link to the website is http://www.surveymonkey.com/s/TPHL5M7. The survey will close on 31 May 2013. The survey pertains to performance for the period January to March 2013. All questions must be answered so that the survey becomes valid. Respondents must click the “Done” button to save the results. Respondents were encouraage to contact the ICT helpdesk if they required further assistance. “With your input and cooperation ICT can improve”, staff or respondents were told.

CS 2

Implement data and voice ICT Communications between the GSDM office building and Disaster Management Centres (Mkhondo & Dipalaseng)

Phezukomkhono Town Community Health & Social CSS 4 cleaning Project Development

Project not completed due to budgetary constraints as the initial scope of work was only to provide internal network connections. The scope of work now includes external connections, communications, masts, civil and electrical works. The budget escalated from an initial R300 000 to R5m.

R2.5m has been made available for the 2013-2014 financial year. It’s a multi-year project to be finalised during the 2014-2015 financial year.

1.00

1st Quarter: Phezukomkhono Programme document submitted to Mayoral Committee meeting held on 16 August 2012. <Only 1st Quarter milestone achieved> Ownership of the project was reallocated from the Community and Social Services Department to Corporate Services Department and finally to the PED Department. This resulted in delays in project implementation of the project as there was confusion with regards to responsibility for the project.

Project formally handed over to the PED Department. Provision has been made in the 2013-2014 IDP and SDBIP clearly defining responsibility for implementation.

117 ANNUAL REPORT 2012-2013

ADDENDUM B COMMUNITY AND SOCIAL SERVICES â&#x20AC;&#x201C; KEY PERFORMANCE INDICATORS

2012-2013 Financial Year Programme

KPI

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

N/A - YTD target achieved

20%

22.55%

3.38

Actual Notes

Corrective Action

Score

Basic Service Delivery and Infrastructure Development - Improve the quantity and quality of Municipal basic services to the people Numerator: 23*

Integrated Waste Management Planning

% of operational landfill sites monitored in line with 2.4.1 Department of Environmental Affairs (DEA) requirements

* 20 inspections done as reported during the 3rd quarter <Refer to 3rd Quarter Scorecard> + 3 inspections done during the 4th quarter. Inspections done during the 4th Quarter: 1) Leandra - 07/05/2013 (EHP: JM Dunn) 2) Kinross - 07/05/2013 (EHP: JM Dunn) 3) Ermelo - 07/06/2013 (EHP: J Brits) Denominator: 102 (25 1st Qtr + 25 2nd Qtr 26 3rd Qtr + 26 4th Qtr) Calculation: 23/102 = 22.55%

# of Local Municipality Integrated 2.4.2 Waste Management Plans reviewed

Review process finalised.

N/A - YTD Target achieved

N/A new KPI

# of Waste Management Service 2.4.3 Delivery Plans developed/ reviewed

Project delayed due to secondment of Senior Manager: Municipal Health Services to Pixley ka Seme and non-cooperation from the local municipalities.

Senior Manager: Municipal Health Services back at GSDM. Project expected to be completed during the second quarter of the new financial year.

N/A new KPI

4.5

N/A new KPI

# of Waste Avoidance/ Recovered/ Recycled/ 2.4.4 Reused [ARRR] programmes/ initiatives implemented # of Waste Avoidance 2.4.5 programs / initiatives implemented

Waste recyclers database completed for these LMs: 1) Pixley ka Seme 2) Govan Mbeki 3) Msukaligwa

1) Waste Management clean-up awareness campaign on 27 June 2013 in Govan Mbeki (Bethal) LM. The second waste management awareness campaign, scheduled for 26 June 2013, had to be cancelled due to unrest Msukaligwa LM.

N/A - target achieved

Awareness campaigns for the 2013-2014 financial year have already been approved, with adequate budget in accordance with business plans, and targets set will be achieved.

118 ANNUAL REPORT 2012-2013

1.5

ADDENDUM B 2012/2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Annual Target 12/13

Annual Actual 12/13

113.79%

80%

61.95%

81.76%

100%

30%

8.1%

Baseline 11/12

Score

Basic Service Delivery and Infrastructure Development - Advanced Community well-being Numerator: 1304* * - 917 water samples taken between July 2012 and March 2013 as reported in the 3rd Quarter <refer to 3rd Quarter Scorecard> + 387 samples taken in the 4th Quarter: April 2013: 129 Dipalaseng: 19; Govan Mbeki: 53; Mkhondo: 26; Msukaligwa: 31 May 2013: 125 Dipalaseng: 17; Govan Mbeki: 46; Mkhondo: 33; Msukaligwa: 29 June 2013: 133 Dipalaseng: 19; Govan Mbeki: 46; Mkhondo: 31; Musukaligwa: 37 Denominator: 2105* % of water Municipal 2.8.1 samples taken per month health Services compared to scheduled target

* - 1553 water samples as per Water Sample Plans for the period July 2012-March 2013 as reported at the end of the 3rd Quarter <Refer to 3nd Quarter Scorecard> + 552 water samples as per Water Sample Plans for the period April 2013 to June 2013: April 2013: 184 Dipalaseng: 22; Govan Mbeki: 56; Mkhondo: 48; Msukaligwa: 58 May'13: 184 Dipalaseng: 22; Govan Mbeki: 56; Mkhondo: 48; Msukaligwa: 58 June 2013: 184 Dipalaseng: 22; Govan Mbeki: 56; Mkhondo: 48; Musukaligwa: 58 Calculation: 1304/2105 = 61.95%

Corrective action implemented: 1) Appointment of several EHPs has been effected during the second quarter within the LMs to increase capacity (seven new EHPs appointed); 2) Regarding inaccessible areas, a water sampling schedule will be submitted to all LMs to ensure that all sampling points are unlocked and accessible on the day of sampling; 3) LMs have also been requested to review sampling plans to ensure they are correct and add value especially in areas where it is continuously reported that samples cannot be taken due to the absence of water at the sampling points.

2.32

Targets will be achieved during the 2013-2014 financial year as the Municipal Health Section has drafted an additional schedule to monitor water quality throughout the District, not just limited to the LMs who entered into the Water Monitoring and Sampling Agreement with GSDM.

The reasons for less than 80% sampling is as follows: 1. Internal capacity (EHPs) â&#x20AC;&#x201C; GSDM needs to address the capacity issue. 2. Inaccessible areas (either locked or other reasons) â&#x20AC;&#x201C; LMs need to address this as they are always informed when sampling will take place. 3. Unknown areas/sampling points - LMs need to show the EHPs the areas. % of water samples taken per month that 2.8.2 do not comply to SANS 241 and that are formally reported to the LMs to implement corrective action

All samples taken given to the relevant LMs.

N/A - target achieved

Numerator: 41* * 15 food preparation facilities as per the database inspected as reported in the third quarter performance report <refer to 3rd Qtr Scorecard> + 26 food premises inspected during the fourth quarter broken down as follows:

% of food handling and preparation facility inspections 2.8.3 conducted in terms of the Foodstuffs, Cosmetics, Disinfectant Act (FCDA)

- Albert Luthuli (2) - Dipalaseng (1) - Govan Mbeki (13) - Lekwa (2) - Mkhondo (0) - Msukaligwa (8) - Pixley ka Seme (0) Denominator: 506* * 506 number of food premises with issued COA's broken down per LM: - Albert Luthuli (52) - Dipalaseng (26) - Govan Mbeki (194) - Lekwa (24) - Mkhondo (38) - Msukaligwa (128) - Pixley ka Seme (44)

A lot of inspections are done on food premises that do not have Certificates of Acceptibility (COAs). However, these inspections are not reported as the Health Department does not have a database with all food premises in the District (database currently limited to food premises with COAs). The Health Department has been tasked with compiling a database listing all food premises in the District, including premises without COAs. Once this database is in place, all inspections done can be reported as a Denominator (Total Food Premises). This database will be earmarked for completion in the first quarter of the new financial year. All inspections would be done, and the target will be achieved for reporting purposes during the 2013-2014 financial year. This KPI is included in the 2013-2014 SDBIP: KPI ref 2.13.2.

Calculation: 41/506 = 8.10%

119 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

75%

100%

50%

1.5

50%

80%

4.8

Score

Basic Service Delivery and Infrastructure Development - Advanced Community well-being # of awareness campaigns

2.8.4 implemented

All samples taken given to the relevant LMs.

N/A - Target achieved

for the disabled

% of food handling and preparation facility inspections 2.8.5 conducted in terms of the Foodstuffs, Cosmetics, Disinfectant Act (FCDA)

Numerator: 2* The following applications were received and processed within the prescribed time frame of 60 working days: 1) Sonae Sawmill: Application date: 23 January 2013 Notice of acknowledgement: 23 January 2013 Turn-around time: One (1) calendar day 2) H2ON Environmental Specialist (Taupele): Application date: 10 April 2012 Notice of acknowledgement: 6 June 2012 Turn-around time: 58 calendar days (10 April 2012 - 6 June 2012). The following applications were received and were not processed within the prescribed time frame of 60 working days: 3) Wood Chemicals Application date: 16 May 2012 Notice of acknowledgement: 3 December 2012 Turn-around time: 202 calendar days (12 June 2012-9 November 2012) 4) Rondolog (Pty) Ltd: Application date: 12 June 2012 Notice of acknowledgement: 9 November 2012 Turn-around time: 151 calender days (16 May 2012-3 December 2012).

Root cause for non-achievement of the target is the Manager: Air Quality Manager position not being filled during the financial year. This position has been approved to be filled and recruitment process is underway with the appointment to be filled by no later than October 2013.

Denominator: 4* * The following applications were received during the period April 2012 to March 2012: 1) Sonae Sawmill (application date: 23 January 2013) 2) H2ON Environmental Specialist (application date: 10 April 2012) 3) Wood Chemicals (application date: 16 May 2012) 4) Rondolog (Pty) Ltd (application date: 12 July 2012) Calculation: 1/3 = 33.33% Municipal Health Services

Phase 1: Issuing of Draft Atmospheric Emmision Licenses (Weighted at 80%) Numerator: 3* * All applications received as listed per the Denominator were converted into Draft Atmospheric Emision Licenses. Denominator: 3*

% of atmospheric emission license applications 2.8.6 finalised as compared to application received (annual)

* The following applications were received during the period April 2012 to August 2012: 1) H2ON Environmental Specialist (Taupele ) (application date: 10 April 2012) 2) Wood Chemicals (application date: 16 May 2012) 3) Rondolog (Pty) Ltd (application date: 12 July 2012). A) Calculation: 3/3 x 80% = 80% Phase 2: Issuing of Provisional Atmosheric Emmission License (Weighted at 20%). Numerator: 0*

Root cause for non-achievement of the target is because the Manager: Air Quality Managerâ&#x20AC;&#x2122;s position was not filled during the financial year. This position has been approved to be filled and recruitment process is under way. The appointment is expected to be made by no later than October 2013.

* Provisional Atmospheric Emision License for Wood Chemicals only issued after year end and thus excluded. Denominator: 3* * The following applications were received during the period April 2012 to August 2012: 1) H2ON Environmental Specialist (Taupele) (application date: 10 April 2012) 2) Wood Chemicals (application date: 16 May 2012) 3) Rondolog (Pty) Ltd (application date: 12 July 2012) B) Calculation: 0/3 x 20% = 0% Combined score: 80% (A) + 0% (B) = 80%

120 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Advanced Community well-being

2.8.7

# of Health by-laws reviewed and approved

The following by-laws have been drafted: 1) Tariff By-law; 2) Municipal Health By-law 3) Air Quality By-law 4) Noise Control By-law The draft by-laws were submitted to the Council meeting held on 4 December 2012, reference item C095/12/2012 but final aprroval will only be obtained after public participation process has been concluded and once the draft by-laws have been workshopped with Councillors and officials.

By-laws to be submitted to Council meeting scheduled for May 2013.

N/A - New KPI

Final list currently being drafted and is to be finalised in the first quarter of the new financial year. Project was delayed due to the absence of a permanently appointed HOD for the Department of Community and Social Services. Since the HOD post has been filled, completion of a final list has been made priority.

N/A - New KPI

100%

Numerator: 41* * Fifteen (15) food preparation facilities as per database inspected as reported in the third quarter performance report <Refer to 3rd Qtr Scorecard> + 26 food premises inspected in the fourth quarter and have been broken down as follows:

Municipal Health Services

2.8.8

% of Notices served for contravention of by-laws/ legislations/ with respect to food handling facilities

- Albert Luthuli (2) - Dipalaseng (1) - Govan Mbeki (13) - Lekwa (2) - Mkhondo (0) - Msukaligwa (8) - Pixley ka Seme (0) Denominator: 41* * Forty-one (41) premises inspected and issued notices as reported under KPI ID 2.8.3.

2.8.9

2.8.10

# of Food safety/ awareness programmes implemented

# of Water conservation education/ awareness campaigns implemented

The Municipal Health Services Department was involved in the following Food Safety/Awareness campaigns between July 2012 and March 2013: 1) Food Hygiene and Water Conservation Workshop/Training held at Govan Mbeki Local Municipality - 12 December 2013. 2) Training for caterers for the opening of the new Breyton Clinic - 11 February 2013. Although seven awareness campaigns were held, the POE presented to the PMS Unit was not signed off to validate the occurrence of the set indicators. Only two awareness campaigns held were substantiated with adequate POE.

The following Water Quality Awareness Campaigns were held between July 2012 and June 2013: 1) Water Awareness Campaign held at Tisiteni Primary School - 16 April 2013. Although 10 awareness campaigns were held, the POE presented to the PMS Unit was not signed off to validate the occurrence of the set indicators. Only one awareness campaign held was substantiated with adequate POE.

All employees will be sent of record-keeping and reporting training. Furthermore, a standarised reporting template will be developed by the Department. The PMS Unit has been requested to provide training of adequate and relevant POE and the 2013-2014 Departmental Scorecard will be workshopped with the Department in terms N/A - New of reviewing current POE and Instructions KPI for reporting. For the 2013-2014 financial year, reports submitted as Portfolio of Evidence by HODs to substantiate any awareness campaigns held, will only be accepted if signed off by preparers of the reports and the relevant HODs. Also, these reports must be accompanied by attendance registers. All employees will be sent of record-keeping and reporting training. Furthermore, a standarised reporting template will be developed by the Department. The PMS Unit has been requested to provide training of adequate and relevant POE and the 2013-2014 Departmental Scorecard will be workshopped with the Department in terms of reviewing current POE and Instructions for reporting. For the 2013-2014 financial year, reports submitted as Portfolio of Evidence by HODs to substantiate any awareness campaigns held, will only be accepted if signed off by preparers of the reports and the relevant HODs. Also, these reports must be accompanied by attendance registers.

121 ANNUAL REPORT 2012-2013

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Advanced Community well-being

2.8.11

# of Air Quality awareness programmes implemented

Municipal Health Services 2.8.12

# of Environmental programmes implemented

Tree planting at Lethi Themba Drop in Centre, on 3 June 2013 in Bethal. Although three awareness campaigns were held, the POE presented to the PMS Unit was not signed off to validate the occurrence of the set indicators. Only one awareness campaign held was substantiated with adequate POE.

1) The Gert Sibande District Muncipality has partnered with the Department of Agriculture and the SPCA in the prevention of rabies in dogs and cats in the District. The campaign took place between 8 to 12 October 2012, and included a free vaccination programme. <Refer to 2nd Quarter POE> 2) Action for trees and climate change awareness parade held on 26 April 2013. <Refer to 3rd Qtr POE>

N/A - target achieved

N/A - New measurement

3) Clean, safe drinking water and greening in rural farm areas project and awareness held on 27 March 2013. <Refer to 3rd Qtr POE> 4) Town cleaning campaign held on 27 June 2013 at Goven Mbeki LM. 5) Rabies awareness campaign from 24 to 28 June 2013 in Msukaligwa LM.

2.8.13

Community Health and Social Development

2.9.1

# of Capacity building programmes implemented for the disabled

# of In-house clinics scheduled for voluntary employee testing for HIV-Aids status

Development of HIV-Aids 2.9.2 Strategic and Operational Plan and submission to Council

1) Job readiness training for youth with disabilities held on 22 August 2012 2) People with Disability Sports Day held on 24 May 2013

N/A - YTD target achieved

Voluntary HIV counselling and testing by Department of Health and GSDM held on 12 April 2013. Although a voluntary in-house clinic for employee testing of HIV-Aids status was scheduled and held on 12 April 2013, the CSS Department did not submit adequate POE in time to validate actual achievement of targets and therefore a score of zero has been allocated.

Gert Sibande District Municipality Strategic Plan for HIV, Aids, STIs and TB for 2012-2016 drafted and submitted for approval to the Council meeting held on 4 July 2013; reference item C39/07/2013.

N/A - target achieved

122 ANNUAL REPORT 2012-2013

N/A - New KPI

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Basic Service Delivery and Infrastructure Development - Advanced Community well-being

2.9.3 Community Health and Social Development

# HIV-Aids awareness campaigns implemented to capacitate and build communities

# of Sporting, Arts and Culture 2.10.1 development programmes implemented per quarter # of Children Rights 2.10.2 awareness campaigns implemented 2.10.3

2.10.4

2.10.5

# of Youth awareness events implemented # of Youth Skill Development workshops implemented

# of Gender development programmes implemented

The following HID-Aids awareness campaigns were held during the period July 2012-June 2013: 1) Community Dialogue on HIV-Aids held 11 September 2013 <refer to 1st Qtr POE>; 2) World Aids Day at Chief Albert Luthuli Local Municipality held on 8 December 2012 <refer to 2nd Qtr POE>; 3) GSDM Strategic Plan consulting workshop for HIV-Aids, STIs, and TB held on 27 to 28 November 2012 <refer to 2nd Quarter POE>; 4) Community Dialogue on HIV-Aids held on 19 June 2013; 5) Zazi Campaign Launch held on 28 June 2013; 6) HIV-Aids Awareness at Breyton Community Hall held on 17 June 2013, 7) Handing over of Home-based Care Kits on 14 June 2013.

N/A - YTD target achieved

1) SAMRA national games held on 24 September 2012 in Durban <Refer to Qtr 2 POE>; 2) Mayoral Cup held on 8 June 2013 at Mkhondo LM; 3) Gert Sibande Cup held on 28 April 2013 at Govan Mbeki LM; 4) LFA Promotional League Play-offs; 5) GSDM Marathon held on 22 June 2013, and 6) GSDM and Transnet Sports Day held on 18 May 2013.

N/A - YTD target achieved

1) Child Awareness held at Isisbane Esihle Stimulation Centre in Ermelo held on 24 May 2013; 2) Handing over of school uniforms at Daggakraal Primary School and Gunwana Primary School in Volksrust on 14 June 2013.

N/A - target achieved

3.5

N/A - New KPI

Youth Day Commemoration held on 7 June 2013.

N/A - YTD target achieved

N/A - New KPI

Youth Skills Development Workshop held on 26 March 2013.

N/A - YTD target achieved

N/A - New KPI

1) Progressive Womenâ&#x20AC;&#x2122;s Workshop/Training held from 23 to 25 March 2013. Also, the GSDM South African Women Seminar was hosted on 24 August 2012 in celebration of Womenâ&#x20AC;&#x2122;s Month. But this was not accepted by the PMS Unit as relevant Portfolio of Evidence was not submitted in due time.

Management has been informed of the criteria of credible and adequate Portfolio of Evidence to substantiate reported actuals. The first quarter performance report for the 2013-2014 financial year will be supported with accurate and relevant information (Portfolio of Evidence).

N/A - New KPI

1.5

90%

84.74%

2.82

90%

89.77% 2.99

Municipal Financial Viability and Management - Improve and sustain Financial, Human Resources and Management Excellence across the District

Budget and Expenditure Management Services

4.4.1 CSS

Numerator: R11,079,681.81 - Actual YTD Operating Expenditure (CSS) % of Operational Budget spend - Denominator: R13,075,670.00 - SDBIP YTD Operational Budget (CSS) Community & Social Services Calculation: R11,079,681.81/R13,075,670.00 = 84.74%

Monthly reports on finacial expenditure is submitted to the monthly Mayoral Committee meetings. Also, the MPAC Committee has requested that all financial N/A - New reports be submitted to MPAC Committee measuremeetings whereby management will be held ment accountable with regards to underexpenditure against SDBIP projections.

Numerator: R4,025,811 - Actual YTD expenditure: Indirect/Departmental Allocation (CSS)

4.4.2 CSS

% of Departmental Allocation Denominator: spend R4,500,000.00 - YTD SDBIP: Indirect/Departmental Allocation (CSS) Community & Social Services Calculation: R4,025,811/R4,500,000 = 89.77%

N/A - target achieved

123 ANNUAL REPORT 2012-2013

N/A - New measurement

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Annual Target 12-13

Annual Actual 12-13

100%

N/A - New measure- 100% ment

Baseline 11-12

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information

Governance and Administration

5.1.1 CSS

% of AG Management Letter findings resolved (annual)

5.1.2 CSS

% of Internal Audit findings resolved (annual)

KPI Zero Weighted as the follow-up audits conducted by the Internal Audit Department were only relevant to the Office of the Municipal Manager, the Budget and Treasury Office and the Corporate Services Department.

5.4.1

Coherent DecisionMaking

5.4.2

5.4.3

# of Disability Forum meetings held

KPI zero weighted as no findings as included in the 2011-2012 Management Action Plan is relevant to this Department. Point 28 under the Management Action Plan: PMS non-achievement of planned targets is being reported as the responsibility of the Municipal Manager. KPI Zero Weighted as the follow-up audits conducted by the Internal Audit Department were only relevant to the Office of the Municipal Manager, the Budget and Treasury Office and the Corporate Services Department.

N/A - New measurement

The following Disabilty forum meetings were held during the period July 2012-June 2013: 1) Disabilty Stakeholders Forum meeting held on 19/07/2012; 2) Disabilty Stakeholders Forum meeting held on 8 November 2012; 3) Disability Stakeholders Forum meeting held on 30 January 2013; and 4) Disability Stakeholders Forum meeting held on 26 June 2013.

# of District AIDS Council (DAC) meetings held

The following District Council Aids meetings were held during the period July 2012-June 2013: - District Aids Council meeting held on 20 August 2012 <Refer to 1st Qtr POE>; - District Aids Council meeting held on 5 November 2012 <Refer to 2nd Qtr POE>; - District Aids Council meeting held on 7 March 2013 <Refer to 3rd Qtr POE>; and - District Aids Council meeting held on 11 June 2013.

# of District Sports, Culture and Arts Forum meetings held

The following meetings were held during the period July 2012-June 2013: 1) GSDM Cultural Forum meeting held on 13 March 2013 2) Sport Forum meeting for the third quarter consolidated into the GSDM Sport Confederation summit meeting held on 24 March 2013 3) Mayoral Cup Plenary meeting held on 9 May 2013 4) Mayoral Cup Plenary meeting held on 4 June 2013

N/A - YTD target achieved

3.00

N/A - YTD target achieved

6.00

N/A - New measurement

N/A - target achieved

The following meetings have been held YTD:

5.4.4

# of Municipal Health & Environmental related forum meetings held

1) Municipal Health Sectional meeting held on 12 October 2012 2) Municipal Health Sectional meeting held on 8 November 2012 3) Municipal Health Sectional meeting held on 13 December 2012 4) Sectional Health meeting held on 24 January 2013 5) Municipal Health Sectional meeting held on 26 April 2013 6) Municipl Health Sectional meeting held on 28 June 2013 7) Waste Management Forum meeting held on 20 September 2012 8) Waste Management Forum meeting held on 15 November 2012 9) Waste Management Forum meeting held on 19 February 2013 10) Waste Management Forum meeting held on 29 May 2013 11) District Outbreak Response Team meeting held on 12 March 2013 12) District Outbreak Response Team meeting held on 9 April 201 13) District Outbreak Response Team meeting held on 23 April 2013 14) Food Control Forum meeting held on 18 September 2012 15) Food Control Forum meeting held on 21 January 2013 16) Food Control Forum meeting held on 13 February 2013 17) Food Control Forum meeting held on 18 April 2013 18) Food Control Forum meeting held on 14 June 2013 19) Water Quality Review meeting held on 30 January 2013 20) Water Quality Review meeting held on 24 April 2013 21) Air Quality Stakeholders meeting held on 23 January 2013 22) Air Quality Stakeholders meeting held on 29 May 2013 23) Air Quality Authority meeting held on 3 May 2013 24) Air Quality Authority meeting held on 26 June 2013

N/A - YTD target achieved

124 ANNUAL REPORT 2012-2013

N/A - New KPI

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Actual 12-13

Annual Target 12-13

Score

Intergovernmental Relations, Good Governance and Public Participation - Resource management internal governance and information The following youth-related meetings were held during the period July 2012-June 2013:

Coherent DecisionMaking

5.4.5

1) Meeting between the CSS Department, Youth Council and Ligbron Learners held on 30 August 2012 <Refer to 1st Qtr POE>; 2) Youth Skills Development Plenary meeting held on 12 March 2013 <Refer to 3rd Qtr POE>; and 3) Youth Skills Develpment Plenary meeting held on 18 March 2013 <Refer to 3rd Qtr POE>.

# of District Youth Forum meetings held

The 2013-2014 financial year argets will be met as the post of Youth Coordinator has been filled. All KPIs and targets relevant to the Youth Programme are fully under the ownership of the Youth Coordinator.

N/A - New KPI

2.25

Programme delayed because Youth Coordinator waas only appointed in the third quarter of the 2012-2013 financial year.

COMMUNITY AND SOCIAL SERVICES â&#x20AC;&#x201C; PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

Corrective Action

YTD Milestones Milestones Completed 12-13 12-13

Score

Basic service delivery and infrastructure development Community Health and Social Development

Regional Economic Growth

CSS 1

Implement Regional Library and Information Service

Programme implementation delayed due to the late appointment of the Library Manager and Librarian. Vacant posts filled during the third quarter. GSDM is currently in the process of purchasing books for the District Library with its opening scheduled for the first quarter of the new financial year.

Vacant posts of Library Manager and Librarian filled in the third quarter. Books to be purchased in the fourth quarter with the opening of the library scheduled for the first quarter of the new financial year. KPI has been elevated to the 2013-2014 IDP scorecard for reporting purposes..

CSS 2

Develop identified SMMEs employed in waste management recycling initiative (EPWP)

The implementation was delayed due to the finalisation review of IWMP for the district and local municipality.

With the IWMP review completed in the fourth quarter the development of business plans to support identified SMMEs has been transferred to the PED Department under the Local Economic Development Department for completion in the first and second quarters of the new financial year.

CSS 3

Organise GSDM Annual Marathon

GSDM Inaugural Marathon Business Plan submitted to the Mayoral Committee meeting held on 28 February 2013, reference item EM23/02/2013.

N/A - Project outcome achieved

PLANNING AND ECONOMIC DEVELOPMENT â&#x20AC;&#x201C; KEY PERFORMANCE INDICATORS 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

N/A - New KPI

100%

Score

Basic Service Delivery and Infrastructure Development - Improve the quantity and quality of Municipal basic services to the people

# of District Youth Forum 2.3.1 meetings held

# of District Youth Forum meetings held

Project implementation delayed due to the Head of Department post only being filled in January 2013.

125 ANNUAL REPORT 2012-2013

ADDENDUM B PLANNING AND ECONOMIC DEVELOPMENT â&#x20AC;&#x201C; KEY PERFORMANCE INDICATORS

2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Target 12-13

Annual Actual 12-13

Score

Local Economic Development - Creation of decent job creation, poverty alleviation, sustainable livelihoods & Rural Development, food security and land Reform through LED

Regional Economic Growth

# jobs created through municipal LED initiatives excluding capital projects (NKPI)

Chrissiesmeer Birdwalk trail has been postponed as its business plan is still being developed. Also, additional funding has been requested from the Department of Tourism. Completion of business plan has been delayed following the resignation of the Tourism Manager. Funds have been redirected for the 2013-2014 financial year to focus on the job creation initiatiave - Phezukomkhono Town Cleaning Project.

Number of jobs created, excluding capital, projects to be measured in terms of the number of jobs created through the Phezukomkhono Town Cleaning project. Refer to 2013-2014 IDP Scorecard, KPI ID: 3.2.

N/A - New KPI

3.1.2

# of events held to promote tourism in the District

Tourism Indaba attented by GSDM from the 11th to 14 May 2013.

N/A - YTD target achieved

3.1.3

# of heritage routes/sites incubated

3.1.1

N/A - New KPI

Municipal Financial viability and management - Improve and sustain Financial, Human Resources and management Excellence across the District Numerator: R4,463,798.82 - Actual YTD Operating Expenditure (PED)

4.4.1 PED

% of Operational Budget spend

Denominator: R5,091,960.00 - Total Operational Budget (PED) Calculation: R4,463,798.82/R5,091,960.00 = 87.66% Project implementation delayed due to the Head of Department post only being filled in January 2013.

Municipal health Services

Numerator: R6,908,224 - YTD Actual Expenditure, Departmental Allocation

4.4.2 PED

% of Departmental allocation spend - PED

Denominator: R11,570,000 - YTD SDBIP Budget, Departmental Allocation Calculation: R6,908,224/R11,570,000 = 59.71% Project implementation delayed due to the Head of Department post only being filled in January 2013.

Monthly reports on finacial expenditure is submitted to the monthly Mayoral Committee meetings. Also, the MPAC Committee has requested that all financial reports be submitted to MPAC Committee meetings whereby management will be held accountable for under-expenditure against SDBIP projections.

N/A - New measurement

90% 87.66%

N/A - New measurement

90%

2.92

59.71% 1.99

Intergovernmental relations < Good Governance and Public Participation - Create a single window of co-ordination for the support, monitoring and intervention in municipalities within the District The following IDP Forum meetings were scheduled and held during the period July 2012-June 2013: Municipal health Services

5.4.1

# of IDP Forum meetings held

1) IDP Forum meeting scheduled and held on 8 August 2012 <Refer to 2nd Qtr POE>; 2) IDP Forum meeting scheduled and held on 1 November 2012 <Refer to 2nd Qtr POE>; 3) IDP Strategic Planning meeting held on 18 April 2013 <Refer 3rd POE>. The IDP Manager post was only filled at the end of the third quarter of the 2013-2014 financial year.

The post of IDP manager has been filled and all quarterly scheduled IDP Forum meetings will be held. The first quarter IDP Forum meeting was held on 9 August 2013 and target dates have already been agreed upon for the remainder of the new financial year.

126 ANNUAL REPORT 2012-2013

2.25

ADDENDUM B 2012-2013 Financial Year Programme

KPI

Actual Notes

Corrective Action

Baseline 11-12

Annual Actual 12-13

Annual Target 12-13

Score

Intergovernmental relations < Good Governance and Public Participation - Create a single window of co-ordination for the support, monitoring and intervention in municipalities within the District

Municipal health Services

# of Transport 5.4.2 Forum meetings held

5.4.3

The following Transport Forum meetings were scheduled and held during the period July 2012-March 2012: - Transport Forum meeting held on 4 October 2012 - Transport Forum meeting held on 19 April 2013

The Transport Coordinator post has been advertised between July and August 2013 The appointment is to be finalised by the end of the first quarter of the new financial year. With the post filled, quarterly targets will be achieved.

Capacity constraints with the post of Manager: Transport and Planning, being vacant during the year under review.

% of Departmental allocation spend - PED

The vacant post of Town Planner was filled on 1 February 2013, and subsequent to the appointment all scheduled quarterly Planners Forum meetings were held.

The following Planners Forum meetings were held between July 2012 and June 2013: - 26 February 2013 - 12 June 2013 The target was not achieved as the post of Town Planner was only filled on 1 February 2013.

The 2013-2014 first quarter Planners Forum meeting is scheduled to be held on 20 August 2013.

5.4.4

# of LED, Agric COGTA had a provincial summit which resolved that districts must establish and Tourism Business Advisory Councils. COGTA said it will assist the District to Forum meetings held establish those structures.

All quarterly LED Forum meetings will be held in the first quarter. LED Forum meeting scheduled for the end of September 2013.

5.4.5

# of Business Advisory Council forum meetings held

0w applied as the Business Advisory Council Forum meeting is going to form part of the LED Forum meetings once that Forum has been established. Refer to KPI 5.4.10

1.5

N/A - New KPI

1.5

N/A - New KPI

PLANNING AND ECONOMIC DEVELOPMENT â&#x20AC;&#x201C; PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

Corrective Action

YTD Milestones Milestones Completed 12/13 12/13

Score

Local economic development

PED 1

Commemorate the 100-year anniversary of the Mahatma Ghandi protest march

Project implementation delayed due to the Head of Department post only being filled in January 2013.

PED 2

Upgrade tourism infrastructure in Chrissiemeer and Kwachibikhulu

PED 3

Plan and commence construction of GSDM Staff Village

Regional Economic Growth

Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and Project implementation delayed due to the Head of Department post SDBIP with adequate resources available for only being filled in January 2013. execution. All projects have commenced with monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected.

Project implementation delayed due to the Head of Department post only being filled in January 2013.

127 ANNUAL REPORT 2012-2013

ADDENDUM B PLANNING AND ECONOMIC DEVELOPMENT â&#x20AC;&#x201C; PROJECTS 2012-2013 Financial Year Programme

Project

Actual Notes

Corrective Action

YTD Milestones Milestones Completed 12/13 12/13

Score

Local economic development

Regional Economic Growth

PED 4

Finalise feasibility study for the establishment of the Regional Airport

Project implementation delayed due to the Head of Department post only being filled in January 2013.

PED 5

Finalise feasibility study for the establishment of the Regional Sports Facility

Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and Project implementation delayed due to the Head of Department post SDBIP with adequate resources available for execution. All projects have commenced with only being filled in January 2013. monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected.

PED 6

Finalise feasibility study for the establishment of a Regional Convention Centre

Finalise feasibility study for the establishment of a PED 7 Fresh Produce Market

Finalise feasibility study for the determination of PED 8 growth opportunities in Ermelo

PED 9 Develop Integrated Human Settlement and Land audit strategy

PED 10

Develop GSDM Tourism strategy

Project implementation delayed due to the Head of Department post only being filled in January 2013.

Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and SDBIP with adequate resources available for execution. All projects have commenced with monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected. Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and SDBIP with adequate resources available for execution. All projects have commenced with monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected. Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and SDBIP with adequate resources available for execution. All projects have commenced with monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected. Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and SDBIP with adequate resources available for execution. All projects have commenced with monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected. Head of Department position filled. All projects prioritised for the 2013-2014 financial year are being catered for in the 2013-2014 IDP and SDBIP with adequate resources available for execution. All projects have commenced with monthly progress reports to be compiled to ensure that any problems in implementation are highlighted and corrected.

128 ANNUAL REPORT 2012-2013

ADDENDUM C DEFINITIONS For the purpose of this report, the following definitions apply: Scorecards refer to a multi-dimensional framework created by Dr Robert Kaplan and Dr David Norton that uses measurement to describe an organisationâ&#x20AC;&#x2122;s strategy. It is based on the balanced scorecard methodology as currently applied to suit the South African environment as described by the Institute for Performance Management TRIPODÂŠ Methodology for Municipalities. This ensures alignment with community needs, legislation, IDP, SDBIP and budgetary requirements for South African municipalities. Strategic themes are the general strategy broken down into categories that focus on different objectives of the company that can lead to overall success, such as customer satisfaction, reduced costs and employee growth. It is usually general and not quantified. An ultimate outcome is attached to it. According to the Kaplan-Norton there are four perspectives that can be applied to identify what measures to use to track the implementation strategy and they are: financial, customer (community), institutional processes and learning and growth. Key Performance Area (KPA) refers to a grouping of metrics of performance success of a process or management system. Objective is an aim or intended result of a strategy. Programme refers to a group of related key performance indicators or projects. Key Performance Indicator (KPI) refers to a list of indicators an organisation has identified as the most important variables reflecting vision/mission, success or organisational performance. Projects are split into targeted (%) implementation phases throughout the course of a financial year.

129 ANNUAL REPORT 2012-2013

ADDENDUM D SCORING METHOD Results are presented in the form of scores as detailed below and were calculated using an automated system adapted to comply with the Gert Sibande District Municipality’s performance management requirements. The scoring method utilised is as follows: Colour code

Scoring

% target achieved KPIs

% target achieved PRJs

Rating

Score

Low

High

Low

High

Unsatisfactory

1-1.99

39.9%

Below average

2-2.99

40%

79.9%

25%

50%

Within target

3-3.99

80%

99.9%

50%

75%

Achieved/exceeded target

4-4.99

100%

166.9%

75%

167

Outstanding

167%

Overall scores as contained in the report were calculated by taking an average of the scores for all KPIs and projects that contributed to a specific scorecard, department or the municipality as a whole. Weighting of the KPIs and projects per programme and objectives were not taken into consideration in determining the score, except where it was decided to apply ‘zero weighting’, in which case that KPI or project did not contribute to the score of the programme and, therefore, would not contribute to the overall objective score. Scoring of the objective is taken as an average score of the programmes contributing to the objective. Scoring of the programme is taken as an average score of the KPIs and projects contributing to the programme. Objectives are averaged to derive from the Key Performance Area (KPA) score. The final scorecard rating is an average of the KPAs’ scores or the Key Performance Area scores. Where no Actual was supplied, a 1.00 score was applied. If no targets were supplied, but Actual was supplied, the Actual was taken as the target. Where no worst values were supplied, the intervention was taken at 40% of target.

130 ANNUAL REPORT 2012-2013

Rural Construction of VIP toilets

Rural Provision of boreholes

Sanitation (VIP toilets)

New Boreholes

Regional Bulk Infrastructure Eerstehoek Ekulindeni (Counter Funding)

04/2011

131 ANNUAL REPORT 2012-2013

24/2012

27/2012

49/2010

Emzanzi

Inhlakanipho TMS - SC

Kwenamoroka - SS

Kwenamoroka - SC

12/13 1832600 - 1832600

12/13 1250000

12/13 1000000

11/12 1500000

11/12 4000000

1250000

1000000

1500000

4000000

N/A for 12/13

Re Tla Fihle Ebenezer Papashad Vuyo Sindi

Imphophoma Projects Elukwatini

Sitem - Elukwatini Bongimbali - Ermelo Jaques Gininda - Elukwatini Luphunyane - Elukwatini Mkevâ&#x20AC;&#x2122;s - Elukwatini Mngomakati - Dundonald Shibanomangani - Ermelo

Nkoane & Mpyene JV LSV Ermelo

V Dan Constrution Badplaas

N/A

S Gumbi

Fanie Fika Soko

434427

594000

1430578

1463266

3875204

3607263

Consultant appointed. DWA Evaluation Panel approved project in principal. Information from Cogta that project will be taken over by MEGA. Meeting held with LM on 3 May 2013 to clarify LM(MIG) component.

PROJECT COMPLETED

Contractor appointed. Construction phase. Project phase for 2012-2013 COMPLETED. See additional funding request from ALM. Provision already made in 2013-2014 finacial year for funding requested.

Contractor appointed. Construction phase. Project phase for 2012-2013 COMPLETED. See additional funding request from ALM (Letter dated 22 January 2013). Provision already made in 2013-2014 and 2014-2015 finacial years for funding requested.

03/2011

Kwenamoroka - SC EPWP

4000000

688707

Silobela Road Construction

10/11 2000000 12/13 2000000

6900000

Percy Adams

02/2011

Phuti & Idah - SC

10/11 3000000 11/12 3000000 12/13 900000

V Dan Constrution Badplaas

Sewer Reticulation Silobela x3

Tirisano - SC

08/2010 (02-12/13)

ACCUMULATED EXPENDITURE TO DATE

Roads in Elukwatini (upgrade)

CLO

04/2010 (03-12/13) 25/2012

CONTRACTOR APPOINTED COMMENTS

TOTAL PROJECT VALUE

YEAR/ AMOUNT

PROJECT NAME

CONTRACT NUMBER

APPOINTED CONS.ENG

END OF JUNE 2013

PROGRESS ON PROCUREMENT AND CONSTRUCTION

ALBERT LUTHULI

ANNUAL EVALUATION/STATUS OF PROCUREMENT FOR INFRASTRUCTURE PROJECTS

ADDENDUM E

Pothole Repairs

26/2012

132 ANNUAL REPORT 2012-2013

Service provider appointed. Construction phase as Turnkey Project. Progress 80%.

LM to inform GSDM of their requirements in spending these funds. GSDM called for quotations and in process of procurement.

PROJECT COMPLETED

Await signed water quality Cooperation Agreement that will guide payment on a monthly basis. Official request has been sent to CALM to request further engagement.

PROJECT COMPLETED

Phuti and Idah - SC EPWP

11/12 4000000

4000000

4147967

Favu Constr Bethal

V Dan Constr Badplaas

S Makhubo

N Pretorius

3905986

3917574

3995116

PROJECT COMPLETED

PROJECT COMPLETED. Contractor completed the road and kerbing for the length of 1.4 km. There is a need for extra funds to cater for the stormwater drainage system.

Siyathemba Construction of Roads

4000000

M Mokoena

06/2011

Phuti and Idah - SC EPWP

Mnqobi Construction (terminated) Halifax and Simende JV Standerton

Balfour Upgrading of Roads

4147967

R 10/11 3000000 11/12 1147967

TOTAL PROJECT VALUE

YEAR/ AMOUNT

05/2011

Paul & Partners SC

APPOINTED CONS.ENG.

Roads in Siyathemba

Responsible SM/PM - Mr T Sibeko/Ms P Batala

ACCUMULATED EXPENDITURE TO DATE

882713

346866

786510

1364152

09/2010

CLO

N/A

COMMENTS

CONTRACTOR APPOINTED

Turnkey

Chalob Projects

Laboratory

Departmentally - LM

Afri- infra

PROJECT NAME

1832600

500000

550000

1000000

2025520

CONTRACT NUMBER

12/13 1832600

12/13 500000

12/13 550000

12/13 1000000

12/13 2025520

END OF JUNE 2013

Tirisano (Turnkey) S

Departmentally GSDM

Laboratory

Departmentally LM

Afri - infra - S

PROGRESS ON PROCUREMENT AND CONSTRUCTION

DIPALESENG

Refurbishment of Stadiums

Water Quality testing

23/2012

14/2013

Water Quality testing

23/2012

Borehole Maintenance

Water & Sanitation Maintenance

22/2012

28/2012

Regional Bulk Infrastructure Empuluzi Methula (Counter Funding)

50/2010

ADDENDUM E

Rural Construction of VIP toilets

Rural Provision of Boreholes

Sanitation (VIP toilets)

Upgrading of Sport Facility

Regional Bulk Infrastructure Balfour (Counter Funding)

Water & Sanitation Maintenance

Water Quality Testing

Pothole Repair

New Boreholes

Borehole Maintenance

Purchase of land for Cemetery

07/2011

08/2011

32/2012

29/2012

51/2010

30/2012

31/2012

33/2012

34/2012

35/2012

133 ANNUAL REPORT 2012-2013

55/2013

Departmentally GSDM

Departmentally GSDM - SS

Departmentally GSDM - S

Laboratory

SRK 3 Consulting Eng

NFM Multi

SRK 3 Consulting Eng

Phuti and Idah - SS

Phuti and Idah - SC

Phuti & Idah - SC

12/13 1000000

12/13 500000 - 500000

12/13 1000000

12/13 250000

12/13 500000

12/13 1432330 - 1432330

12/13 750000 - 500000

12/13 750000

11/12 1000000

1000000

250000

500000

250000

750000

1000000

N/A

Luphunyane Zondle JV Amalungu

Laboratory

SRK 3 Consulting Eng

N/A for 2012/13

N/A

Eddizakhe Totobela Magicita

Mzamo Works Piet Retief

SM Projects - Breyton Oxygen Property - Standerton Goodfuture Tra - Standerton Molori Trading - Balfour

N/A

87132

100750

938607

976000

Purchase of land for the cemetery by the local municipality.

The R500000 reallocated to purchase a piece of land for the establishment of the cemetery by the local municipality.

Contractors appointed. Construction work started in Msukaligwa LM as part of the reallocation of funds. Construction work in progress.

Calling for tenders/quotations. Tenders closed and procurement will be finalised in July 2013.

DM/LM signed off agreement on Water Quality and will guide payment on a monthly basis.

Service provider appointed. Assesment in process.Consultants currently assessing the water losses in the Siyathemba area so as to establish the scope for work to be completed.

Consultant appointed. DWA evaluation panel queries regarding the raising of the dam wall to be addressed for resubmission.

Procurement of a service provider completed. Feasibility study in progress.

Contractors appointed. Construction work started in Chief Albert Luthuli LM as part of the reallocation of funds. Construction work in progress.

PROJECT COMPLETED. Eleven (11) boreholes drilled and equipped.

PROJECT COMPLETED. 104 VIP toilets installed.

ADDENDUM E

Rural Provision of Boreholes

Upgrading of Roads in Kinross

Electricity Refund

Sewer Network Rectification Embalenhle x 22

Water & Sanitation Maintenance

Water Quality Testing

Sanitation (VIP toilets)

10/2011

11/2011

12/2011

36/2012

134 ANNUAL REPORT 2012-2013

37/2012

38/2012

39/2012

Phuti and Idah - SC

Laboratory

Bhutana Earth Scientist & Project Managers

Departmentally LM

Phuti and Idah - SC EPWP

Phuti and Idah - SC

Phuti & Idah - SC

12/13 1000000

12/13 450000

12/13 500000

12/13 4000000

11/12 2500000 11/12 5000000 12/13 3000000

11/12 2000000 12/13 351945

11/12 1000000

1000000

450000

500000

4000000

10500000

2351945

1000000

9500000

Ezikamayela’s DM Service Mumphrey’s Jaques Gininda

Laboratory

Amanzotho Gen Trad

N/A

Bareng Batho/Petals JV Embalenhle

Jonker Contractors Standerton

Wiseman Civils Phakama Mdu Tsoga Moepathutsi Mayise

MT Zondo V Dan Construction Badplaas

N/A

CLO to be appointed

N/A

V Sibiya

235009

3707487

1704472

940840

97600

4982359

PROJECT COMPLETED

DM/LM signed off agreement on Water Quality and will guide payment on a monthly basis.

Contractors appointed. Construction in progress.

Implementation will be based on SLA entered into between DM and LM. According to GMM, a consultant has been appointed. The consultant’s final investigation report to be submitted by 3 May 2013. The cleaning of pipeline in progress.

DM/LM signed off SLA agreement on the funding of Bulk Electrical Infrastructure in Bethal and Emzinoni. Multi-year project. Additional funding of R7000000 budgeted for the 2013-2014 financial year.

PROJECT COMPLETED

PROJECT COMPLETED. Eleven (11) boreholes drilled and equipped.

PROJECT COMPLETED. One hundred and two (102) VIP toilets installed.

Contruction for Phase 2 COMPLETED. Next phase - contractor appointed. Construction phase.

Contractor appointed. The contractor is preparing to return to site to finish the project after revision of the outstanding work by the LM.

Rural Construction of VIP toilets

10/11 4000000 11/12 3500000 12/13 2000000

5118612

09/2011

Paul & P Phuti and Idah - SC EPWP

6000000

Octavia Mbatha

Roads Bethal

9/10 4000000 11/12 2000000

Sibonga Intuthuko Elukwatini

17/2010 (02/1112) (03/1213)

NFM Multi - SC

ACCUMULATED EXPENDITURE TO DATE

Construction of roads

CLO

11/2009

CONTRACTOR APPOINTED COMMENTS

TOTAL PROJECT VALUE

YEAR/ AMOUNT

PROJECT NAME

CONTRACT NUMBER

APPOINTED CONS.ENG.

END OF JUNE 2013

Responsible SM/PM - Mr T Sibeko/Ms T Pitso

PROGRESS ON PROCUREMENT AND CONSTRUCTION

GOVAN MBEKI

ADDENDUM E

New boreholes

Borehole maintenance

41/2012

42/2012

Quotations to be finalised in July 2013.

Contractors appointed. Construction in process.

PROJECT COMPLETED

135 ANNUAL REPORT 2012-2013

Rural Construction of VIP toilets

Upgrading of Sport Facility - Sakhile Stadium

Regional bulk Infrastructure Eersgevonden Thuthuka Alfa RacebultMorgenzon

14/2011 44/2012

77/2012

Ziyanda Consulting -S

Inzuzo - SC

12/13 500000

11/12 1500000 12/13 500000

11/12 1000000

10/11 3000000 11/12 4000000 12/13 3500000

500000

2000000

1000000

10500000

N/A

Mukhumuli Trading JV Simende Construction Standerton

Singabakhe Simende JB Sibeko Buhle Ba Jehova

Sahara/Retla Fihle Ermelo

T Julius/Main Reason JV Standerton

N/A

Nomakhosi Nhlapo

M Lukhele

1450443

97600

10416026

6608172

Service provider appointed. Feasibility Study in process.

PROJECT COMPLETED

Contractor appointed. Construction not in accordance with programme. The lead partner of the JV appointed withdraws from site and new tenders called for to proceed with the work. Multi-year project. Additional funding to the amount of R 4000000 needed to complete this project. Procurement in process to appoint new contractor.

Project completed for the length of 3.4km, pipeline-testing was done but it was disturbed by a burst pipe. Pressure pipeline testing pending. Additional funding allocated to this project in the 2013-2014 financial year. All remaining work has been quantified by the LM. Procurement in progress.

13/2011

Inzuzo - SC

11300000

7371468

Roads & SW Sakhile

9/10 1000000 11/12 8700000 SPEC Int 11/12 1600000

F Molaba

21/2010 (02-1112) (03-1213)

Afri-Infra - SC EPWP

1) 27-year RI Elukwatini 2) Mmakoto Buss Ent

Construction 10ML Reservoir

7500000

R 7/8 3000000 8/9 4500000

TOTAL PROJECT VALUE

YEAR/ AMOUNT

15/2009

Chidaya - SC

APPOINTED CONS.ENG.

Rising main between WTW & Old Standerskop reservoir - Ph 2 (Standerton/Sakhile)

Responsible SM/PM - Mr T Sibeko/Ms S Zulu

ACCUMULATED EXPENDITURE TO DATE

29/2007

CLO

N/A

COMMENTS

CONTRACTOR APPOINTED

Mkevâ&#x20AC;&#x2122;s Biyakhulu

Zondle Trading

PROJECT NAME

500000

1250000

500000

CONTRACT NUMBER

12/13 500000

12/13 1250000

12/13 500000

END OF JUNE 2013

Departmentally GSDM

Departmentally GSDM - SC

Departmentally GSDM - S

PROGRESS ON PROCUREMENT AND CONSTRUCTION

LEKWA

Pothole repairs

40/2012

ADDENDUM E

Borehole maintenance

Upgrading of sub station - Water Treatment Plant, CBD, Ext 1, 6 and 7

Replacement of Sewer Pipes in Sakhile Ext 4

Replacement of AC pipes with uPVC

45/2013

46/2013

47/2013

New Boreholes

48/2012

51/2012

Pothole repairs

47/2012

Riverpark upgrade

Sanitation (VIP toilets)

46/2012

50/2012

Water quality testing

45/2012

Grootdraaidam facility upgrade

Water & Sanitation Maintenance

43/2012

49/2012

Regional bulk Infrastructure Standerton Sakhile Meyerville Standerdskop

78/2012

136 ANNUAL REPORT 2012-2013

DepartmentallyGSDM - S

DepartmentallyGSDM

Departmentally LM

DepartmentallyGSDM

N/A

Kwenamoroka TMS Inhlakanipho Phuti & Idah

Departmentally GSDM

Inzuzo - SS

Laboratory

DepartmentallyGSDM

Lubisi Consulting S

12/13 500000

12/13 1500000

12/13 500000

12/13 1000000 - 750000

12/13 3000000 - 2750000

12/13 1250000

12/13 500000

12/13 1000000

12/13 500000

500000

1500000

500000

1250000

500000

1000000

250000

500000

N/A

Hobam Trading

N/A

Various

N/A

Temoso Moon & Earth Asdu Kgatelopele Phin Trading

N/A

Laboratory

Ihlubi Trading Kantech

N/A

1250000

590000

754862

Scope of works received from Lekwa. Quotations to be finalised in July 2013.

Bid specs approved. Tenders called for and procurement to be finalised in July 2013.

SDA to be entered into between LM and GSDM on request. Letters on funding approval by LM. SDA submitted to Lekwa LM for signature.

PROJECT COMPLETED

Reallocation of funding approved and balance of funding to be used by PED.

Reconciliation of 2011-2012 ACIP Funding. PROJECT COMPLETED

Service provider appointed. Delivery of cold asphalt in progress.

PROJECT COMPLETED

Awaiting signed water quality cooperation agreement that will guide payment on a monthly basis. Official request has been sent to Lekwa LM for further engagement.

Construction work in progress.

Service Provider appointed. Feasibility study in progress.

ADDENDUM E

ACCUMULATED EXPENDITURE TO DATE

Roads Eziphunzini New Link Road

Roads Kwatandeka Amsterdam

Rural Construction of VIP toilets

Electrification of Villages - Ntombe, Bakenkop, Khalambazo, Bhodweni, eMakhaya

22/2010 52/2012

24/2010 (03/1213)

15/2011

137 ANNUAL REPORT 2012-2013

40/2011

Departmental - LM

Inzuzo - SC

Inzuzo - SC EPWP

Kwezi V3 - SC

11/12 1500000 12/13 4500000

11/12 1000000

10/11 3000000 11/12 4000000 11/12 420 000 12/13 1300000

10/11 3000000 11/12 6000000 11/12 1330000 11/12 1580000 12/13 3500000

7/8 4500000 8/9 6200000 9/10 10895000 10/11 1500000 11/12 700000 12/13 1200000

6000000

1000000

8720000

15410000

24995000

N/A

Subozopa Trading Sunnierside Lwakhe Dim Logistics N/A

D Mbatha

NN Myeni

Kenneth Mbatha

Sibonga Intuthuko Elukwatini

Dalas Business Enterprise

1. Caluma Projects (24/05/2007), Ermelo 2. Eigenbau (23/04/09) Gauteng

4598203

976000

6854678

11908872

21728229

DM/LM signed off agreement on electricity provision to villages and will guide payment on a monthly basis.

PROJECT COMPLETED. One hundred and four (104) toilets constructed.

Contractor appointed. Construction phase. Item for termination of contract due to non-performance of contractor submitted to HOD. Additional funding i.e. R2000000 approved in the 2013-2014 financial year

Contractor appointed. Construction in progress. Additional funding i.e. R 3 000 000 budgeted in the 2013-2014 finacial year.

Consultant and contractor appointed for phase 2. Awaiting DWA to give approval to proceed.

Driefontein WTW increase capacity with 7.5 ML/d to 9.5 ML/d

CLO

33/2007 (4/1213) 53/2012

CONTRACTOR APPOINTED COMMENTS

TOTAL PROJECT VALUE

YEAR/ AMOUNT

PROJECT NAME

CONTRACT NUMBER

APPOINTED CONS.ENG.

END OF JUNE 2013

Responsible PM Mr M Mofokeng

PROGRESS ON PROCUREMENT AND CONSTRUCTION

MKHONDO

ADDENDUM E

Sewer Refurbishment - Amsterdam

Regional Bulk Infrastructure Dirkiesdorp Kwangema Mabola

Regional Bulk Infrastructure Driefontein Donkerhoek Nkosanati Lindelani Mashambisani Mkhize Panbult Iswepe

Regional Bulk Infrastructure Mandunduluza Simdlangetsha

Water & Sanitation Maintenance

Water Quality testing

Construction of Driefontein STP Feasibility Study and Planning

Sanitation (VIPs)

Pothole Repair

New Boreholes

Piet Retief - Sewer Treatment Plant

Borehole Maintenance

18/2011 (02/1213) 54/2012

79/2012

80/2012

81/2012

56/2012

57/2012

55/2012

58/2012

59/2012

138 ANNUAL REPORT 2012-2013

60/2012

61/2012

62/2012

Departmentally GSDM

Departmentally LM

Departmentally GSDM - SC

Departmentally GSDM

Inzuzo - SS

ECA Consulting

Laboratory

NKP Consultants

PDNA & Associates

SMEC South Africa

PDNA & Associates

Inzuzo - SC

12/13 500000

12/13 3000000 + 1800000

12/13 1250000

12/13 500000

12/13 1000000

12/13 1370000

12/13 300000

12/13 500000

11/12 2000000 12/13 2130000 - 1800000

500000

4800000

1250000

500000

1000000

1370000

350000

500000

2330000

N/A

Laboratory

N/A

N/A N/A

TM Nkosi Transport

MnqobiJVKwezileth PhakamaJVKMI N/A

N/A

Andil Amandlondlo Ozil Big Vat Anqoba

N/A

CLO to be appointed

MICS Empowerment Group

450000

198000

120988

1790568

Quotations received for equipment. Awaiting quotations for materials. Procurement to be finalised in July 2013.

Implementation based on SLA entered into between DM & LM. Additional funding i.e. R3000000 budgeted in the 2013-2014 finacial year.

PROJECT COMPLETED

Service provider appointed. Delivery of cold asphalt in progress.

PROJECT COMPLETED

Consultant appointed. Feasibility study in progress. Additional funding of R 2 000 000 budgeted in the 2013-2014 financial year.

DM/LM signed off agreement on Water Quality and will guide payment on a monthly basis.

Service provider appointed - work in progress.

Service provider appointed. Feasibility study in progress.

Contractor appointed for Phase 1. Construction in progress for phase COMPLETED. Reallocation of funding approved.

ADDENDUM E

Water Reticulation in Khayalisha

Roads Upgrade Wesselton Ext 5

Regional Bulk Infrastructure Ermelo (Counter Funding)

Water & Sanitation Maintenance

Water Quality Testing

64/2012

139 ANNUAL REPORT 2012-2013

52/2010 18/2013

65/2012

66/2012

Laboratory

Lekwa Cons

Tumber Fourie Construction Pipes - SS

Wanoza/Khanyisa JV

Inzuzo - SC EPWP

12/13) 300000

12/13) 500000 + 500000

12/13) 1553620 + 1432330

12/13) 1000000

11/12) 5000000

11/12) 4000000 12/13) 3500000

300000

1,000,000

2985950

1000000

5000000

7500000

Laboratory

Caluma Mathonsi Aqua Transport

CZar Construction Thulatsepo Gen Trad

Wanoza/Khanyisa JV

Zondle Trading Ermelo

V Dan Construction

N/A

CLO to be appointed

I Sithole

CLO to be appointed

N/A

1364152

618351

4122449

2754386

1742185

DM/LM signed off agreement on Water Quality will guide payment on a monthly basis.

PROJECT COMPLETED

Consultant appointed. DWA Evaluation Panel approved project in principal. Formal communication from DWA to proceed with implementation received for first functional phase.

Contractors appointed. Construction in process.

Contractor appointed. Construction Phase. Contractor has completed 2900m x 110mm diameter pipe and 386m x 200mm pipe. Project is practically complete for this phase. Additional funding to the amount of R5 000 000 budgeted in 2013-2014. Procurement in process.

Contractor appointed. Construction in process. The contractor has installed 1103m x 400mm diameter pipe. 70m still outstanding. 95% of manholes completed. Contractor started excavation of pumpstation and concrete floor is about 50% complete. Challenges: existing services and groundwater. Multi-year project. Additional funding to the amount of R5000000 provided for in 2013-2014 finacial year. Procurement concluded upon.

DM Finacial Phase of PROJECT COMPLETED

PROJECT COMPLETED

32/2011

Khandisa - S EPWP

3600000

1480251

Khayalisha Sewer Upgrade

11/12) 2000000 12/13) 1600000

1900000

N/A

20/2011 (02-12/13) 63/2012

Departmental - LM

9/10 300000 11/12 700000 12/13 900000

Caluma Project JV Big Eye Investment 19 JV Ermelo

Refurbishment of Sewer plant in Davel

SKCM - SC

19/2011 (02-12/13)

ACCUMULATED EXPENDITURE TO DATE

Safety at Torbaniet Dam

CLO

50/2009 (03-12/13)

CONTRACTOR APPOINTED COMMENTS

TOTAL PROJECT VALUE

AMOUNT/ YEAR

PROJECT NAME

CONTRACT NUMBER

APPOINTED CONS.ENG.

END OF JUNE 2013

Responsible PM - Mr C Ndlovu

PROGRESS ON PROCUREMENT AND CONSTRUCTION

MSUKALIGWA LM

ADDENDUM E

Pothole Repair

New Boreholes

Borehole Maintenance

68/2012

69/2012

70/2012

Funding reallcated to Water & Sanitation Maintenance vote

Contractors appointed. Construction in process. 90% completed.

Service provider appointed. Delivery of cold asphalt in process.

Contractors appointed. Construction in process.

140 ANNUAL REPORT 2012-2013

Sewer reticulation Perdekop

Afri-Infra - SC EPWP

11/12 3000000 12/13 2500000

11/12 4000000

5500000

4000000

Sibonga Civils Volksrust

SA Water Cycle Group

Just Right Trading Czar Construction

W Manana

CLO to be appointed

M Mkhatswha

4871210

2283510

4042300

Contractor appointed. PROJECT COMPLETED for thism phase. Additional funding to the amount of R3 000 000 is needed to complete this project.

Contractor appointed. The site was handed over to the contractor on 14 November 2012. An alternative design for the raw water abstraction point will be submitted by the consultant for approval. Multi-year project. Additional funding to the amount of R4 000 000 budgeted for in the 13/14 financial year. Procurement concluded upon. Additional funding to the amount of R2 000 000 is required to complete this project.

Phase 1 is complete. Consultant has been appointed for phase 2. Procurement for phase 2 completed. Contractor to establish site for phase 2. The completion of the pump line for is estimated to be completed at the end of March 2014. Multi year project. Additional funding to the amount of R2 000 000 needed to complet the entire project.

Contractor appointed. Construction progress 99%. Project completion is pending the installation of two flow meters. The flow meters will be installed and commissioned once the LM has installed the transformer. Practical completion meeting on the existing work held on 7 May 2013. Final completion to be done during 2013-2014.

25/2011 (02-12/13)

Afri-Infra - SC

5500000

2531816

Upgrading of Water treatment Plant Amersfoort

11/12 4000000 12/13 1500000

Z Simelane

24/2011

PDNA - SC EPWP

Just Right Trading Balfour

Upgrade of Bulk Supply line from Amersfoort WTW to Amersfoort Reservoir

3000000

R 11/12 3000000

TOTAL PROJECT VALUE

AMOUNT / YEAR

23/2011 (02-12/13)

UCE - SC

APPOINTED CONS.ENG.

Construction of Bulk Supply line from Volksrust WTP to 8ML Reservoir

Responsible PM Mr Y Solakhe/P Sekhoto

ACCUMULATED EXPENDITURE TO DATE

22/2011

CLO

N/A

COMMENTS

CONTRACTOR APPOINTED

Matamela Ukwenza

Akunamuva Estern Transport

Sidlangogqoko Buhlesyatentela Nkonene Bomaake Chroft

PROJECT NAME

1250000

500000

1000000

CONTRACT NUMBER

12/13) 500000 - 500000

12/13) 1250000

12/13) 500000

12/13) 1000000

END OF JUNE 2013

Departmentally GSDM

Departmentally GSDM - SS

Departmentally GSDM

Departmentally GSDM - SS

PROGRESS ON PROCUREMENT AND CONSTRUCTION

PIXLEY KA SEME

Sanitation (VIPs)

67/2012

ADDENDUM E

Pothole Repair

New Boreholes

Borehole Maintenance

75/2012

76/2012

Water Quality testing

72/2012

74/2012

Water & Sanitation Maintenance

71/2012

Sanitation (VIPs)

Regional Bulk Infrastructure Dirkiesdorp Kwangema Mabola Daggakraal (Counter Funding)

82/2012

73/2012

Upgrading of STP Vukuzakhe/Georgia Gardens

33/2011 (02-12/13)

Departmentally GSDM

Departmentally GSDM - SS

Departmentally GSDM

Departmentally GSDM - SS

Laboratory

PD Naidoo & Ass

Chalob Projects -S

PDNA - SS EPWP

12/13 400000 - 400000

12/13 1000000

12/13 400000

12/13 500000

12/13 300000

12/13 400000 + 450000

12/13 500000

11/12 6000000 12/13 1000000

1000000

400000

500000

300000

850000

500000

6000000

N/A

Sibusiosbuhle Mzamo

PSKM Projects

Big & Son Goodfuture

Laboratory

N/A

GAP/Kantech JV

N/A

CLO to be appointed

450000

243000

3069466

Funding reallcated to water & sanitation Maintenance vote

PROJECT COMPLETED

Await signed water quality cooperation agreement that will guide payment on a monthly basis. Official request has been sent to PKISLM to request further engagement for this utilisation.

Service Provider appointed. Assesment in Process.

Service Provider appointed. Feasibility study in process.

Consultant appointed. Contractor appointed for phase 2 (Refurbishment of Vukuzakhe/Georgia Gardens STP). Construction for phase 2 commenced in January 2013. Construction progress - 60%. Multi year project - Additional funding to the amount of R 12000000 budgeted for in the 13/14 and 14/15 financial year. Additional funding to the amount of R 13 000 000 is needed to continue for the next 2 financial years.

ADDENDUM E

141 ANNUAL REPORT 2012-2013

ADDENDUM F SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN: JUNE 2013 DEPARTMENTAL ALLOCATIONS: JUNE 2013 LINE ITEM

DESCRIPTION

SDBIP YEAR TO DATE

ACTUAL YEAR TO DATE

DEVIATION

COMMENTS ON DEVIATION

110

256015

TRADITIONAL AFFAIRS / PROJECTS

1 500 000

927 701

572 299

Awaiting documents required (such as invoices) before the processing of payments for the Training of Traditional Leaders and the RDTAC Section 79 Committee members at the University of KwaZulu-Natal. The deviation will be avoided in future.

110

256027

PROMOTION OF THE DISTRICT/COMM

1 800 000

1 760 124

39 876

All programmes implemented.

TOTAL: OFFICE OF THE MM

3 300 000

2 687 825

612 175

111

256024

UPDATE BULK WATER/SEWER REPORT

500 000

472 798

27 202

Project completed.

111

256034

BULK WATER METERS

2 000 000

659 224

1 340 776

Project will start in 2013-2014 financial year.

111

256035

MANAGEMENT INFORMATION SYSTEMS

2 000 000

299 406

1 700 594

Project will start in 2013-2014 financial year.

111

256092

CENTRALISED PMU FOR LM'S MIG

10 981 170

976 223

10 004 947

Project did not start up as per agreement from LMs.

111

256093

COMPREHENSIVE INFRASTRUCTURE PLAN

1 000 000

46 168

953 832

Balance of project funding transferred to 2013-2014 financial year.

111

256093

COMPREHENSIVE INFRASTRUCTURE PLAN

1 000 000

46 168

953 832

Balance of project funding transferred to 2013-2014 financial year.

TOTAL: DEPT OF INFRASTRUCTURE & TECH SERVICES

16 481 170

2 453 819

14 027 351

112

256007

BURSARIES

1 500 000

718 692

781 308

Awaiting invoices from service providers.

112

256009

REVENUE COLLECTION/DATA CLEANSING

1 000 000

227 210

772 790

Community unrest and transport supplier not willing to supply quotations has lead to non-spending.

112

256025

IT FOR THE REGION

300 000

Projects rolled over to new 2013-2014 financial year.

112

256026

CAPACITY BUILDING/COMM PARTICIPATION

2 000 000

1 992 920

7 080

All programmes implemented.

TOTAL: DEPT OF CORP SERVICES

4 800 000

2 938 822

1 861 178

113

256002

MAYORAL EXCELLENCE AWARDS

1 000 000

864 340

135 660

Planned programme not implemented in full i.e trophies were not bought and other winners not yet paid.

113

256004

SPORT, ART AND CULTURE

1 000 000

972 336

27 664

Winners of Promotional Play-offs are not yet paid i.e. R 20 500.

113

256017

MUNICIPAL HEALTH & ENVIROMENT

900 000

821 412

78 588

There was a delay in implementation of programmes due to the Senior Manager being seconded to Pixley ka Isaka Seme Local Municipality for over six months.

113

256037

PUBLIC AWARENESS WATER CONSERVATION

250 000

218 511

31 489

There was a delay in implementation of programs due to the Senior Manager being seconded to Pixley ka Isaka Seme Local Municipality for over six months.

113

256083

GSDM MARATHON

850 000

733 076

116 924

Delay in advertising of the event, the other planned advert did not happen and other prizes were never won due to no entries from women betwen the ages 40 and 60.

113

256091

REGIONAL LIBRARY & INFO SERVICE

500 000

429 912

70 088

R429 912 was spent excluding VAT. Including VAT R490 000 was spent.

TOTAL: DEPT COMMUNITY & SOCIAL SERVICES

4 500 000

4 039 587

460 413

114

500 000

530 335

-30 335

256028

EMERGENCY/ CONTINGENCIES

142 ANNUAL REPORT 2012-2013

Will be rectified once insurance claim is received.

ADDENDUM F

114

256541

5,200,000

2,521,701

2,678,299

TOTAL: FINANCIAL SERVICES

5,700,000

3,052,036

2,647,964

115

256022

LED, TOURISM AND AGRICULTURE

2,000,000

1,182,761

817,239

Tender documents must be submitted to the BEC.

115

256023

IDP - NEW AND UPDATE

550,000

280,110

269,890

Procurement for printing in progress ( quotes recieved).

115

256080

REGIONAL PLANNING SUPPORT

720,000

Procurement being finalised (BEC reports finalised).

115

256081

REGIONAL AIRPORT PLANNING

500,000

308,597

191,403

Procurement being finalised (BEC reports finalised).

115

256082

REGIONAL SPORT FACILITIES PLANNING

500,000

Draft Bid Specs being finalised.

115

256084

JOB CREATION - ALBERT LUTHULI

875,000

758,324

116,676

Programme has been extended.

115

256085

JOB CREATION MSUKALIGWA

850,000

700,881

149,119

Programme has been extended.

115

256086

JOB CREATION - GOVAN MBEKI

500,000

414,404

85,596

Programme has been extended.

115

256087

JOB CREATION - MKHONDO

875,000

591,482

283,518

Programme has been extended.

115

256088

JOB CREATION - LEKWA

1,050,000

990,794

59,206

Programme has been extended.

115

256089

JOB CREATION DIPALESENG

500,000

417,278

82,722

Programme has been extended..

115

256090

JOB CREATION - PIXLEY KA SEME

700,000

210,590

489,410

Programme has been extended.

115

256106

CO-OPERATIVES

300,000

126,055

173,945

Assisted some cooperatives with agricultural material and training.

115

256107

MUNICIPAL PLANNING SECTOR PLAN

650,000

Procurement being finalised (BEC reports finalised).

115

256108

RURAL AND AGRI DEVELOPMENT

1,000,000

926,949

73,051

Currently assisting cooperatives who are in agricultural with production inputs, fencing and equipments.

TOTAL: DEPT PLANNING & ECONO DEVELOPMENT

11,570,000

6,908,225

4,661,775

116

255818

DONATIONS

200,000

117,933

82,067

Donations are based on request and approval by the Executive Mayor.

116

256008

CO-ORDINATION HIV AND AIDS

1,080,000

244,476

835,524

Initially the allocated budget was R300,000. Executive Mayor took a dicision to transfer money from PED to CSS to cover the national launch for Zazi. It was eventually was cancelled.

116

256011

YOUTH DEVELOPMENT

300,000

299,996

Spent according to plan.

116

256013

WOMEN'S DEVELOPMENT CAPACITY

300,000

146,299

153,701

Initially the allocated budget was R300,000. Executive Mayor took a dicision to transfer money from PED to CSS to cover the national launch for Zazi, which eventually was cancelled.

116

256014

RELIGIOUS AFFAIRS(MORAL REGEN)

150,000

114,845

35,155

Spend according to plan (unexpected saving).

116

256016

OFFICE - RIGHTS OF THE CHILD

100,000

99,683

317

Spent according to plan.

116

256018

PEOPLE WITH DISABILITIES

300,000

274,478

25,522

Spent according to plan (unexpected saving).

TOTAL: HUMAN SETTLEMENT & PUBLIC SAFETY

650,000

548,296

101,704

TOTAL: DEPARTMENTAL ALLOCATIONS

49,431,170

23,926,320

25,504,850

OPERATION CLEAN AUDIT

143 ANNUAL REPORT 2012-2013

Awaiting invoices amounting to R1,6-million from service providers, which will increase expenditure.

ADDENDUM F

DEPARTMENT: INFRASTRUCTURE & TECH SERVICES, ALLOCATIONS TO MUNICIPALITIES, CO-FUNDING AND RBIG PROJECTS - JUNE 2013 LINE ITEM

DESCRIPTION

SDBIP YEAR TO DATE

ACTUAL YEAR TO DATE

DEVIATION

COMMENTS ON DEVIATION

130

256505

SILOBELA SEWER RETICULATION

2,000,000

1,936,750

63,250

Contractor appointed. Construction phase. Project phase for 12/13 completed.See additional funding request from ALM (letter dated 22 Jan 2013). Provision already made in 2013-2014 and 2014-2015 finacial years for funding requested.

130

256602

SILOBELA ROADS

2,162,331

2,037,534

124,797

Project completed.

130

256700

REFURBISH STADIUMS CAR/ELUKWAT

1,832,600

1,711,958

120,642

Service provider appointed. Construction phase as a turnkey project - 80%.

130

256701

REG BULK INFRASTRUCTURE EMPU

2,025,520

2,000,000

25,520

Consultant appointed. DWA evaluation panel approved project in principal. Information from Cogta that project will be taken over by MEGA. Meeting held with LM 03/05/2013 to clarify LM component.

130

256702

WATER & SANITATION MAINTENANCE

1,000,000

786,510

213,490

Project completed.

130

256703

WATER QUALITY TESTING

550,000

346,866

203,134

Await signed water quality cooperation agreement that will guide payment on a monthly basis. Official request has been sent to CALM to request further engagement for this utilisation.

130

256704

SANITATION (VIPs)

1,750,000

1,581,700

168,300

Project completed.

130

256705

ROADS (UPGRADE)

900,000

899,604

396

130

256706

POTHOLES

500,000

Project completed.

130

256707

NEW BOREHOLES

1,250,000

434,427

815,573

Project completed.

130

256708

BOREHOLES MAINTENANCE

500,000

LM to inform GSDM of their requirements in spending these funds. GSDM called for Quotations and in process of procurement.

150

256607

DAVEL REFURBISH SEWER PLANT

1,854,188

1,742,185

112,003

DM financial phase of project completed.

150

256609

SEWER UPGRADE KHAYELIHLE

3,080,508

2,769,211

311,297

Contractor appointed. Construction in process. The contractor has installed 1103m x 400mm diameter pipe. 70m Still outstanding. 95% of manholes completed. Contractor started excavation of pumpstation and concrete floor is about 50% complete. Challenges: existing services and groundwater. Multi-year project. Additional funding of R 5 000 000 provided for in 2013-2014 finacial year. Procurement concluded.

150

256610

WATER RETICULATION KHAYELIHLE

2,726,762

2,423,689

303,073

Contractor appointed. Construction Phase. Contractor has completed 2900m x 110mm diameter pipe and 386m x 200mm pipe. Project is practically complete for this phase. Additional funding of R 6 000 000 is needed for the next financial year. Procurement in process.

150

256643

REFURBISH TORBANITE DAM

1,196,026

901,278

294,748

Project completed.

150

256709

WESS/KHAYEL OUTFALL SEWER LINE

3,500,000

Contractor appointed. Construction in process. The contractor has installed 1103m x 400mm diameter pipe. 70m still outstanding. 95% of manholes completed. Contractor started excavation of pumpstation and concrete floor is about 50% complete. Challenges: existing services and groundwater. Multi-year project. Additional funding of R 5 000 000 provided for in 2013-2014 finacial year. Procurement concluded.

150

256710

WESSELTON ROAD UPGRADE (PAVING

1,000,000

Contractor appointed. Construction in process.

150

256711

REG BULK INFRASTRUCTURE

2,965,950

Consultant appointed. DWA evaluation panel approved project in principal. Formal communication from DWA to proceed with implementation received for first functional phase.

150

256712

WATER & SANITATION MAINTENANCE

1,000,000

740,477

259,523

Project completed.

144 ANNUAL REPORT 2012-2013

ADDENDUM F

150

256713

WATER QUALITY TESTING

300,000

279,497

20,503

DM/LM signed off agreement on Water Quality will guide payment on a monthly basis.

150

256714

SANITATION (VIPs)

1,000,000

972,000

28,000

Contractors appointed. Construction in process.

150

256715

POTHOLES

500,000

248,500

251,500

Service Provider appointed. Delivery of cold Asphalt in process.

150

256716

NEW BOREHOLES

2,250,000

2,100,000

150,000

Contractors appointed. Construction in process. 90% completed.

160

256516

ROADS IN BETHAL

2,000,000

Construction for phase 2 COMPLETED. Next phase - Contractor appointed. Construction phase.

160

256611

LEANDRA ROADS

881,389

Contractor appointed. The contractor is preparing to return to site to finish the outstanding works, after the revision of the outstanding works with the LM.

160

256612

EMZINONI ROADS

1,314,508

859,547

454,961

Construction for phase 2 COMPLETED. Next phase - Contractor appointed. Construction phase.

160

256614

BOREHOLES

102,950

43,790

59,160

Project completed. 11 Boreholes drilled and equipped.

160

256615

BETHAL ELECTRICITY REFUND

7,968,745

7,463,767

504,978

DM/LM signed off SLA agreement on the funding of Bulk Electrical Infrastructure in Bethal and Emzinoni. Multi year project Additional funding to the amount of R 7 000 000 budgeted for in the 13/14 financial year.

160

256616

KINROSS ROADS

1,667,172

1,080,716

586,456

Project completed.

160

256719

EMBALENHLE SEWER NETWORK

4,000,000

903,735

3,096,265

Implementation will be based on SLA entered into between DM & LM. According to GMM a Consultant has been appointed. The final investigations report done by the Consultant to be submitted by 3 May 2013. The cleaning of pipeline in progress.

160

256720

OPERATIONS & MAINTENANCE SUPPORT

500,000

58,400

441,600

Contractors appointed. Constrcution in process.

160

256721

WATER QUALITY TESTING

450,000

263,275

186,725

DM/LM signed off agreement on Water Quality will guide payment on a monthly basis.

160

256722

SANITATION (VIP'S)

1,000,000

998,000

2,000

Project completed.

160

256723

POTHOLES

500,000

210,000

290,000

Project completed.

160

256724

NEW BOREHOLES

1,250,000

155,200

1,094,800

Contractors appointed. Construction phase.

160

256725

BOREHOLES MAINTENANCE

500,000

Quotations to be finalised during the month of July 2013.

172

256428

DRIEFONTEIN WTW INCREASE CAP

685,999

273,260

412,739

Consultant appointed for Phase 2. Contractor appointed for Phase 2. Await DWA to give the approval to proceed with Phase 2.

172

256619

AMSTERDAM/KWATHANDE KA ROADS

2,406,125

1,376,567

1,029,558

Contractor appointed. Construction phase. ITEM for termination of contract due to non performance of Contractor submitted to HOD. Additional funding to the amount of R2 000 000 approved in the 2013/14 financial year.

172

256620

VIP RURAL AREA

59,200

35,200

24,000

Project completed.

172

256621

ELECTRIFICATION OF VILLAGES

4,598,203

172

256623

AMSTERDAM SEWER

975,007

765,575

209,432

Contractor appointed for Phase 1. Construction in process for phase completed. Reallocation of funding approved.

172

256726

EZPHUNZINI NEW LINK ROAD

3,500,000

848,917

2,651,083

Contractor appointed. Construction in process. Additional funding to the amount of R 3 000 000 budgeted in the 13/14 finacial year.

172

256727

DRIEFONTEIN UPGRADING WTW

1,200,000

Consultant appointed for Phase 2. Contractor appointed for Phase 2. Await DWA to give the approval to proceed with Phase 2.

172

256728

AMSTERDAM REFURB SEWER TR PLANT

330,000

291,342

38,658

Contractor appointed for phase 1. Construction in process for phase completed. Reallocation of funding approved.

172

256729

DRIEFONTEIN CONSTRUCTION STP

1,370,000

Consultant appointed. Feasibilty study in process. Additional funding to the amount of R 2 000 000 budgeted in the 2013/14 financial year.

145 ANNUAL REPORT 2012-2013

ADDENDUM F

172

256730

REG BULK INFRASTRUCTURE DIRKIE

500,000

31,592

468,408

Service provider appointed. Feasibility study in process.

172

256731

REG BULK INFRASTRUCTURE DRIEFO

500,000

Service provider appointed. Feasibility study in process.

172

256732

REG BULK INFRASTRUCTURE MANDUN

500,000

46,600

453,400

Service provider appointed. Feasibility study in process.

172

256733

WATER & SANITATION MAINTENANCE

500,000

166,575

333,425

Service provider appointed. Work in process.

172

256734

WATER QUALITY TESTING

300,000

144,065

155,935

DM/LM signed off agreement on water quality that will guide payment on a monthly basis.

172

256735

SANITATION (VIPs)

1,000,000

998,000

2,000

Project completed.

172

256736

POTHOLES

500,000

Service provider appointed. Delivery of cold asphalt in progress.

172

256737

NEW BOREHOLES

1,250,000

50,000

Project completed.

172

256738

PIET RETIEF SEWER TREATM PLANT

3,800,000

3,000,000

800,000

Implementation based on SLA entered into between DM and LM. Additional funding of R3 000 000 budgeted in the 2013-2014 financial year.

172

256739

BOREHOLES MAINTENANCE

500,000

Quotations received for equipment. Awaiting quotations for materials, procurement to be finalised in July 2013.

172

256770

PROCUREMENT CONSTRUCTION EQUIPMENT

1,000,000

Procurement to be finalised in July 2013.

180

256270

RAISING MAIN WTW/OLS STANDERSK

260,678

Project completed for 3.4km, pipeline testing was done but it was disturbed by a burst pipe. Pressure pipeline testing pending. Additional funding allocated to this project in the 2013-2014 financial year. All remaining work has been quantified by the LM. Procurement in process.

180

256625

SAKHILE ROADS/STORMWATER

3,500,000

3,448,061

51,939

Project completed.

180

256626

10 ML WATER TREATMENT PLANT

8,700,000

2,884,305

5,815,695

Contractor appointed. Construction not in accordance with programme. The lead partner of the JV appointed withdraws from site and new tenders called for to proceed with the work. Multi-year project. Additional funding i.e. R4000000 needed to complete project. Procurement in process to appoint new contractor.

180

256626

10 ML WATER TREATMENT PLANT

8,700,000

2,884,305

5,815,695

Contractor appointed. Construction not in accordance with programme. The lead partner of the JV appointed withdraws from site and new tenders called for to proceed with the work. Multi-year project. Additional funding i.e. R4000000 needed to complete project. Procurement in process to appoint new contractor.

180

256627

CONSTRUCTION OF VIPs

59,200

35,200

24,000

Project completed.

180

256628

SAKHILE UPGRADING STADIUM

1,500,000

1,452,955

47,045

Project completed.

180

256740

REG BULK INFRASTRUCTURE EERSGE

500,000

Service provider appointed. Feasibility study in process.

180

256741

REG BULK INFRASTRUCTURE STANDERTON

500,000

Service provider appointed. Feasibility study in process.

180

256742

WATER & SANITATION MAINTENANCE

1,000,000

982,495

17,505

Construction of works in progress.

180

256743

UPGRADING SPORT FACILITY

500,000

450,443

49,557

Project completed.

180

256744

WATER QUALITY TESTING

250,000

131,655

118,345

Awaiting signed water quality cooperation agreement that will guide payment on a monthly basis. Official request has been sent to Lekwa LM for further engagement.

146 ANNUAL REPORT 2012-2013

ADDENDUM F

180

256745

SANITATION (VIP TOILETS)

1,000,000

998,000

2,000

Project completed.

180

256746

POTHOLES

500,000

Service provider appointed. Delivery of cold asphalt in process.

180

256747

NEW BOREHOLES

1,250,000

180

256748

GROOTDRAAIDAM FACILITY UPGRADE

250,000

Reallocation of funding approved and balance of funding to be used by PED.

180

256749

RIVERPARK UPGRADE

250,000

Reallocation of funding approved and balance of funding to be used by PED.

180

256750

BOREHOLES MAINTENANCE

500,000

166,135

333,865

Project completed.

180

256767

UPGRADING SUBSTATION WTP LEKWA

1,500,000

SDA to be entered into between LM and GSDM on request. Letters on funding approval to LM. SDA submitted to Lekwa LM for signature.

180

256767

UPGRADING SUBSTATION WTP LEKWA

1,500,000

SDA to be entered into between LM and GSDM on request. Letters on funding approval to LM. SDA submitted to Lekwa LM for signature.

180

256768

REPLACE SEWER PIPES SAKHILE

1,500,000

Bid spec approved. Tenders called for and procurement to be finalised during July 2013.

180

256769

REPLACE AC PIPES WITH PVC LEKWA

500,000

Scope of works received from Lekwa. Quotations to be finalised during the month of July 2013.

184

256528

SIYATHEMBA UPGRAD/REFURB ROADS

942,059

184

256630

BALFOUR TOWN ROADS

1,500,000

1,417,574

82,426

Project completed.

184

256631

SIYATHEMBA ROADS

1,000,000

717,415

282,585

Project completed. Contractor completed the road and kerbing covering 1.4km. There is a need for extra funds to cater for the stormwater drainage system.

184

256632

VIP

232,000

208,000

24,000

Contractors appointed. Construction started in Albert Luthuli LM as part of the reallocation of funds. Construction work in progress.

184

256633

BOREHOLES

102,951

41,558

61,393

Contractors appointed. Construction started in Msukaligwa LM as part of the reallocation of funds. Construction work in progress.

184

256752

UPGRADING SPORT FACILITY

250,000

165,000

85,000

Procurement of service provider completed. Feasibility study in progress.

184

256753

OPERATIONS & MAINTENANCE SUPPORT

500,000

100,750

399,250

Service provider appointed. Assessment in progress. Consultants currently assessing water losses in Siyathemba to define the scope of work.

184

256754

WATER QUALITY TESTING

250,000

104,301

145,699

DM/LM signed off agreement on Water Quality that will guide payment on a monthly basis.

184

256756

POTHOLES

250,000

Calling for tenders/quotations. Tenders closed and procurement will be finalised in July 2013.

184

256766

PURCHASE LAND FOR CEMETRY

1,000,000

Purchase of land for the cemetery by the local municipality.

190

256637

VOLKSRUST WTP CONST BULK SUPPLY

1,153,803

700,767

453,036

Contractor appointed. Construction progress - 99%. Project completion pending the installation of two flow meters. The meters will be installed once the LM has installed the transformer. Meeting about completion of outstanding work will be held on 7 May 2013. Entire to completed in 2013-2014.

190

256638

AMERSFOORT WTW COMPL PUMPLINE

2,709,949

252,249

2,457,700

Phase 1 is complete. Consultant has been appointed for Phase 2. Procurement for Phase 2 completed. Contractor to proceed to Phase 2. Completion of pump line estimated to be end of March 2014. Multi-year project. Additional funding of R2 000 000 needed to complete project.

147 ANNUAL REPORT 2012-2013

ADDENDUM F

190

256639

AMERSFOORT WATER TREATMENT PLANT

3,302,911

3,055,811

247,100

Contractor appointed. The site was handed over to the contractor on 14 November 2012. An alternative design for the raw water abstraction point will be submitted by the consultant for approval. Multi-year project. Additional funding of R4 000 000 budgeted in the 2013-2014 financial year. Procurement concluded. Additional funding i.e. R2000000 required to complete project.

190

256640

PERDEKOP SEWER RETICULATION

2,500,004

1,823,233

676,771

Contractor appointed. Project completed for this phase. Additional funding of R3 000 000 needed to complete project.

190

256641

VUKUZAKHE SEWER TREATMENT PLANT

5,829,207

4,376,076

1,453,131

Consultant appointed. Contractor appointed for Phase 2 (refurbishment of Vukuzakhe/Georgia Gardens STP). Construction for Phase 2 commenced in January 2013. Construction progress - 60%. Multi-year project. Additional funding of R12 000 000 budgeted in the 2013-2014 and 2014-2015 financial years. Additional funding of R13000000 needed to complete project in the next two financial years.

190

256759

REG BULK INFRASTRUCTURE DIRKIESDORP

500,000

Service provider appointed. Feasibility study in progress.

190

256760

OPERATIONS & MAINTENANCE SUPPORT

850,000

Service provider appointed. Feasibility study in progress.

190

256761

WATER QUALITY TESTING

300,000

Awaiting signed water quality cooperation agreement that will guide payment on a monthly basis. Official request has been sent to PKISLM for further engagement.

190

256762

SANITATION (VIP TOILETS)

500,000

486,000

14,000

Project completed.

190

256763

POTHOLES

400,000

140,000

260,000

Project completed.

190

256764

NEW BOREHOLES

1,000,000

900,000

100,000

Project completed.

330

256663

REGIONAL BULK EERSTEH/EKULINDE

280,000

243,903

36,097

DWA Evaluation Panel approved project in principle in December 2012. Information from CoGTA that project will be taken over by MEGA. Awaiting final instruction from DWA. Payment claim for completion of business plan submitted to DWA. Payment received. Claim from consultant processed. Final IRS to be submitted to DWA in July 2013.

330

256664

REGIONAL BULK EMPULUZI/METULA

5,300,000

4,376,803

923,197

DWA Evaluation Panel approved project in principle in December 2012. Information from CoGTA that project will be taken over by MEGA. Awaiting final instruction from DWA. Claim for completion of business plan submitted to DWA. Payment received. Claim from consultant processed. Final IRS to be submitted to DWA in July 2013

350

256665

REGIONAL BULK ERMELO/WESSELTON

15,000,000

12,839,623

2,160,377

DWA Evaluation Panel approved project in principle in December 2012. Approval received from DWA to proceed with the implementation of the Ermelo pipeline (between the two water treatment works) as the first phase of the project. Project in tender stage. payment claim for completion of business plan submitted to DWA. Payment received. Claim from consultant processed. Final IRS to be submitted to DWA in July 2013.

384

256666

REGIONAL BULK BALFOUR/SIYATHEM

1,420,000

DWA Evaluation Panel reconsidered project in May 2013. Panel approved project in principle. New payment claim for completion of business plan to be submitted to DWA.

154,545,945

94,414,883

60,131,062

TOTAL

148 ANNUAL REPORT 2012-2013

ADDENDUM F

CAPITAL EXPENDITURE - JUNE 2013 LINE ITEM

DESCRIPTION

SDBIP YEAR TO DATE

ACTUAL YEAR TO DATE

DEVIATION

COMMENTS ON DEVIATION

411

305040

FURNITURE & EQUIPMENT

4,000,000

2,044,064

1,955,936

Saving. All equipment required procured.

411

305060

DISASTER CENTRES

10,000,000

9,617,276

382,724

Noted. Project expenditure will be based on 2013-2014 funding.

411

305090

OFFICE COMPLEX & ALTERATIONS

8,000,000

5,403,668

2,596,332

Noted. Project completed in 2012-2013.

411

305096

LAB EQUIPMENT

1,000,000

898,826

101,174

Noted. Project completed.

411

305110

VEHICLES

2,000,000

1,963,205

36,795

Saving.

411

305120

REGIONAL CONVENTION CENTRE

2,500,000

Procurement not completed and still with SCMU.

27,500,000

19,927,039

7,572,961

TOTAL

149 ANNUAL REPORT 2012-2013

General Information Legal form of entity

Municipal demarcation code

Municipality

DC 30

Mayoral Committee

Maboa-Boltman NF Magagula MP Nkosi M Nyembe N Zuma

Executive Mayor

Nhlabathi MPP

Speaker

Dhlamini ES

Chief Whip

Mnisi TA

Councillors

Baker TE Bongwe JS De Ville JR De Waal MAC GreylingGS Joubert LK Labuschagne PJ Madonsela EM Mahlangu BD Mahlangu H Makola MB Malatsi PV Manzi NE

Grading of district authority

Five (5)

Capacity of district authority

Low

Chief finance officer

Singh AY

Accounting officer

Habile CA

Registered office

Cnr Joubert & Oosthuise Street Ermelo Mpumalanga 2351

Business address

Cnr Joubert & Oosthuise Street Ermelo Mpumalanga 2351

Postal address

PO Box 1748 Ermelo Mpumalanga 2350

Bankers

Absa Bank

Auditors

Auditor-General of South Africa

Attorneys

Fluxman Attorneys Twala Attorneys

Masango SA Masina LL Maseko BP Mkhwanazi LVA Mkhwanazi ZG Mlotshwa TL Morajane CM Motha TW Motloung KW Mtshali BH Ndinisa BJ Nhlapho NS Nkozi AD

150 ANNUAL REPORT 2012-2013

Nkozi SS Nkosi VL Puwani BS Shiba BP Shongwe MD Thwala DM Tsotetsi MP Vilakazi RG Weber WL Zacarias SM Zwane LA Zwane TE

Index The reports and statements set out below comprise the annual financial statements presented to the Council: Page

Index

152 153 153 154 155 156 158 177

Accounting Officerâ&#x20AC;&#x2122;s Responsibilities and Approval Statement of Financial Position Statement of Financial Performance Cash flow Statement Statement of Comparison of Budget and Actual Amounts Appropriation Statement Accounting Policies Notes to the Annual Financial Statements

209 210 215 216 218

Appendixes: Appendix A: Appendix B: Appendix C: Appendix E(1): Appendix E(2): Appendix F:

Schedule of External Loans Analysis of Property, Plant and Equipment Segmental analysis of Property, Plant and Equipment Actual versus Budget (Revenue and Expenditure) Actual versus Budget (Acquisition of Property, Plant and Equipment) Disclosure of Grants and Subsidies in terms of the Municipal Finance

Abbreviations COID DBSA GRAP HDF IPSAS MEâ&#x20AC;&#x2122;s MEC MFMA MIG

Compensation for Occupational Injuries and Diseases Development Bank of South Africa Generally Recognised Accounting Practice Housing Development Fund International Public Sector Accounting Standards Municipal Entities Member of the Executive Council Municipal Finance Management Act Municipal Infrastructure Grant (Previously called Common Management Information Protocol)

151 ANNUAL REPORT 2012-2013

Accounting Officer’s Responsibilities and Approval The accounting officer is required by the Municipal Finance Management Act (Act 56 of 2003) to maintain adequate accounting records, and is responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is the responsibility of the accounting officer to ensure that the annual financial statements fairly represent the state of affairs of the municipality at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors were engaged to express an independent opinion on the annual financial statements and were given unrestricted access to all financial records and related data. The accounting officer acknowledges that he is ultimately responsible for the system of internal financial control established by the municipality and places considerable importance on maintaining a strong control environment. To enable the accounting officer to meet these responsibilities, the accounting officer sets standards for internal control aimed at reducing the risk of error or deficit in a costeffective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk.

“The accounting officer has reviewed the municipality’s cash flow forecast for the year to 30 June 2014 and, in the light of this review and the current financial position, he is satisfied that the municipality has access to adequate resources to continue in operational existence” These controls are monitored throughout the municipality and all employees are required to maintain the highest ethical standards in ensuring that the municipality’s business is conducted in a manner that, in all reasonable circumstances, is above reproach. The focus of risk management in the municipality is on identifying, assessing, managing and monitoring all forms of risk across the municipality. While operating risk cannot be fully eliminated, the municipality endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The accounting officer has reviewed the municipality’s cash flow forecast for the year to 30 June 2014 and, in the light of this review and the current financial position, he is satisfied that the municipality has access to adequate resources to

continue in operational existence for the foreseeable future. The external auditors are responsible for auditing and reporting on the municipality’s annual financial statements. The annual financial statements set out on pages five (5) to 64, which have been prepared on the going concern basis, were approved by the accounting officer on 30 August 2013.

______________________________ Accounting Officer Habile CA

152 ANNUAL REPORT 2012-2013

Statement of Financial Position as at 30 June 2013 and Statement of Financial Performance Statement of Financial Position as at 30 June 2013 Figures in Rand

Note(s)

2013

2012

Cash and cash equivalents

60 170 523

33 442 158

Other receivables

310 801

2 713 390

Receivables from exchange and non-exchange transactions

3 404 628

3 196 513

VAT receivable

7 607 181

8 007 098

71 493 133

47 359 159

Current Assets

Non-current Assets Property, plant and equipment

331 313 278

328 460 399

Intangible assets

256 571

549 108

Heritage assets

154 250

Investment in municipal entity

32 852 520

33 051 679

Non-current assets held for sale

Total assets

364 576 619

362 215 436

11 503 687

447 573 437

421 078 282

Liabilities Current Liabilities Other financial liabilities

7 245 671

6 673 388

Finance lease obligation

589 954

539 359

Payables from exchange transactions

51 655 569

60 477 030

59 491 194

67 689 777 19 273 373

Non-Current Liabilities Other financial liabilities

11 948 889

Finance lease obligation

23 499 263

24 001 548

Retirement benefit obligation

278 000

274 496

Provisions

1 224 928

951 916

Deferred gain on sale and leaseback

2 917 024

2 553 649

39 868 104

47 054 982

Total liabilities

99 359 298

114 744 759

Net assets

348 214 139

306 333 523

Accumulated surplus

348 214 139

306 333 523

Statement of Financial Performance Figures in Rand

Note(s)

2013

2012

Revenue Government grants and subsidies

276 297 349

Income from municipal entities

4 716 141

5 295 316

Interest received

4 911 199

3 613 600

Other income

4 158 751

1 991 643

Rental income

2 020 000

Total revenue

279 940 990

505 111

292 103 440

291 346 660

Expenditure Contracted services

(1 941 892)

(1 904 592)

Depreciation

(16 731 179)

(11 849 528)

Employee related costs

(66 156 615)

(54 111 413)

Finance costs

(7 738 903)

(8 188 912)

General expenses

(24 936 733)

(21 572 507)

Grants and subsidies paid

(120 387 803)

(147 945 613)

Impairment loss

Loss on disposal of assets

(23 933 221) (8 876 351)

Remuneration of councillors

(9 379 877)

Repairs and maintenance

(2 284 564)

(1 821 751)

Total expenditure

(249 830 961)

Operating surplus

42 272 479

Discount on debtors

(288 045 817) 3 300 843

Surplus for the year

(7 841 929)

(273 395)

(1 746 052)

42 272 479

1 554 791

42 272 479

1 554 791

Attributable to: Owners of the controlling entity

153 ANNUAL REPORT 2012-2013

Statement of Changes in Net Assets and Cash Flow Statement Statement of Changes in Net Assets Figures in Rand

Accumulated surplus

Total net assets

Opening balance as previously reported

307 619 037

Adjustments Prior year adjustments

(2 637 075)

Balance at 01 July 2011 as restated

304 981 962

Changes in net assets Correction Prior Year

(203 230)

Net surpluses (deficits) recognised directly in net assets

(203 230)

Surplus for the year

1 554 791

Total recognised income and expenses for the year

1 351 561

Total changes

1 351 561

Balance at 01 July 2012

305 941 660

Changes in net assets Surplus for the year

42 272 479

Total changes

42 272 479

Balance at 30 June 2013

348 214 139

Cash Flow Statement Figures in Rand

Note(s)

2013

2012

Sale of goods and services

9 030 891

2 006 666

Grants

276 297 349

279 940 990

Interest income

4 911 199

3 613 600

Other receipts

3 541 806

6 055 445

293 781 245

291 616 701

Cash flows from operating activities Receipts

Payments Employee costs

(75 536 492)

(62 504 977)

Suppliers

(156 975 400)

(145 915 453)

Finance costs

(7 738 903)

(8 188 912)

Other payments

(1 941 892)

(12 236 727)

(273 395)

(242 466 082)

(228 846 069)

Loss on disposal of asset

Undefined difference compared to the cash generated from operations note generated from operations note

(391 253)

487 697

50 923 910

63 258 329

Purchase of property, plant and equipment

(19 927 039)

(35 789 069)

Proceeds from sale of property, plant and equipment

628 279

181 514

Purchases of heritage assets

(29 800)

Undefined difference

199 159

(Increase)/decrease in non-current investments

(227 247)

Proceeds from sale of irregular expenditure

Proceeds from sale of other receivables

2 402 589

Net cash flows from investing activities

(16 697 012)

(35 864 602)

Net cash flows from operating activities Cash flows from investing activities

Cash flows from financing activities Repayment of other financial liabilities

(6 752 201)

Movement in deferred gain on sale and leaseback

363 375

2 368 309

(Decrease)/increase in long-term loans

(6 150 856)

Finance lease payments

(451 690)

Net cash flows from financing activities

(6 840 516)(

3 782 547)

Net increase/(decrease) in cash and cash equivalents

27 386 382

23 611 180

33 442 158 1

0 281 116

60 828 540

33 892 296

Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

154 ANNUAL REPORT 2012-2013

8 797 790 2 540 000 11 337 790

Other income

Interest received

Total revenue from exchange transactions

155 ANNUAL REPORT 2012-2013 (1 742 830) (2 580 000) (219 183 475) (21 502 045) (344 810 750) (344 810 750) (344 810 750)

Finance costs

Repairs and maintenance

Contracted Services

Grants and subsidies paid

General Expenses

Total expenditure

Operating surplus

Loss on disposal of assets and liabilities

Surplus

Budget and Actual Comparative Statement

(344 810 750)

(15 015 830)

Depreciation

Actual Amount on Comparable Basis as Presented in the

(74 696 430) (10 090 140)

Remuneration of councillors

300 478 960

Employee cost

Expenditure

Total revenue

Government grants & subsidies

Taxation revenue 289 141 170

Revenue from non-exchange transactions

Income from municipal entities

Approved budget

Rental income

Revenue from exchange transactions

Revenue

Statement of Financial Performance

Figures in Rand

Budget on Cash Basis

Statement of Comparison of Budget and Actual Amounts

11 698 015

(294 400)

11 992 415

(6 707 655)

24 796 892

597 700

(651 900)

(7 739 442)

(1 800 680)

454 680

3 042 820

(4 352 208)

1 252 000

(7 287 548)

1 683 340

Adjustments

(333 112 735)

(294 400)

(332 818 335)

(28 209 700)

(194 386 583)

(1 982 300)

(2 394 730)

(7 739 442)

(16 816 510)

(9 635 460)

(71 653 610)

296 126 752

289 141 170

6 985 582

3 792 000

1 510 242

1 683 340

Final budget

42 272 479

(273 395)

42 545 874

(249 557 566)

(24 936 733)

(120 387 803)

(1 941 892)

(2 284 564)

(7 738 903)

(16 731 179)

(9 379 877)

(66 156 615)

292 103 440

276 297 349

15 806 091

4 911 199

4 158 751

4 716 141

2 020 000

budget and

basis

375 385 214

21 005

375 364 209

83 260 769

3 272 967

73 998 780

40 408

110 166

539

85 331

255 583

5 496 995

(4 023 312)

(12 843 821)

8 820 509

1 119 199

2 648 509

4 716 141

336 660

actual

Difference between final

Actual amounts on comparable

Reference

Statement of Comparison of Budget and Actual Amounts

156 ANNUAL REPORT 2012-2013

(15 015 830)

(219 183 475)

(23 244 875)

(342 230 750)

(74 732 960)

Depreciation

Finance charges

Transfers and grants

Other expenditure

Total expenditure

Surplus / (Deficit)

(47 708 960)

Surplus / (Deficit) for the year

Capital expenditure and funds sources

(47 708 960)

transfers and contributions

Surplus / (Deficit) after capital

capital

27 024 000

(10 090 140)

Remuneration of councillors

Transfers recognised -

(74 696 430)

Employee costs

contributions)

capital transfers and

267 497 790

8 797 790

Total revenue (excluding

256 160 000

Other own revenue

2 540 000

14 104 653

12 852 653

(4 210 215)

19 906 360

(1 996 792)

467 600

158 380

(1 472 680)

1 252 000

MFMA)

(33 604 307)

27 024 000

(60 628 307)

(329 378 097)

(27 455 090)

(199 277 115)

(1 996 792)

(14 548 230)

(9 931 760)

(76 169 110)

268 749 790

8 797 790

256 160 000

3 792 000

budget

(i.t.o. s28 and

s31 of the

adjustments

budget

Final adjustment

Budget

Original

operational

Transfers recognised

Investment revenue

Financial performance

2013

Figures in Rand

MFMA)

s31 of the

funds (i.t.o.

Shifting of

Virement

policy)

approved

(i.t.o. council

(33 604 307)

27 024 000

(60 628 307)

(329 378 097)

(27 455 090)

(199 277 115)

(1 996 792)

(14 548 230)

(9 931 760)

(76 169 110)

268 749 790

8 797 790

256 160 000

3 792 000

Final budget

Actual

expenditure

Unauthorised

42 272 479

21 137 349

21 135 130

(249 830 961) -

(29 436 584)

(120 387 803) -

(7 738 903)

(16 731 179)

(9 379 877)

(66 156 615)

270 966 091

10 894 892

255 160 000

4 911 199

outcome

75 876 786

(5 886 651)

81 763 437

79 547 136

(1 981 494)

78 889 312

(5 742 111)

(2 182 949)

551 883

10 012 495

2 216 301

2 097 102

(1 000 000)

1 119 199

Variance

Actual

(126)%

78 %

(35)%

76 %

107 %

60 %

388 %

115 %

94 %

87 %

101 %

124 %

100 %

130 %

budget

final

as % of

(89)%

78 %

(28)%

73 %

127 %

55 %

DIV/0 %

111 %

93 %

89 %

101 %

124 %

100 %

193 %

budget

original

as % of

outcome outcome

Appropriation Statement

Net cash from (used) financing

year end

Cash and cash equivalents at

the beginning of the year

Cash and cash equivalents at

in cash and cash equivalents

Net cash from (used) investing

Net increase / (decrease)

budget

s31 of the

(i.t.o. s28 and

budget

Final adjustment

Budget

adjustments

Original

Net cash from (used) operating

Cash flows

Figures in Rand Shifting of

MFMA)

s31 of the

funds (i.t.o.

Virement

policy)

approved

(i.t.o. council

Final budget

60 828 540

33 442 158

27 386 382

(6 840 516)

(16 697 012)

50 923 910

outcome

Actual

Unauthorised

expenditure

(60 828 540)

33 442 158

27 386 382

(6 840 516)

(16 697 012)

50 923 910

Variance

Actual Actual

DIV/0 %

budget budget

final original

as % of as % of

outcome outcome

Appropriation Statement

157 ANNUAL REPORT 2012-2013

Accounting Policies 1. Presentation of Annual Financial Statements The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board. These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless specified otherwise. They are presented in South African Rand. A summary of the significant accounting policies are disclosed below. These accounting policies are consistent with the previous period, except for the changes set out in note 40 changes in accounting policy. 1.1 Significant judgements and sources of estimation uncertainty In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include: Trade receivables The municipality assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the municipality makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. The impairment for trade receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to balances in the portfolio and scaled to the estimated loss emergence period. Impairment testing The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value- in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the assumptions may change which may then impact our estimations and may then require a material adjustment to the carrying value of tangible assets. The municipality reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. At each reporting date an assessment should be undertaken to determine whether there is any indication that any items of Property, plant and equipment may be impaired by reviewing external and internal source or information which indicates that impairments may have occured. Provisions Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in note 16 Provisions. Useful lives of property, plant and equipment and other assets The municipalityâ&#x20AC;&#x2122;s management determines the estimated useful lives and related depreciation charges for property, plant and equipment and other assets. This estimate is based on the pattern in which an assetâ&#x20AC;&#x2122;s future economic benefits or service potential are expected to be consumed by the entity. Post-retirement benefits The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations.

158 ANNUAL REPORT 2012-2013

Accounting Policies

The municipality determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. The most appropriate discount rate that reflects the time value of money is with reference to market yields at the reporting date on government bonds. Where there is no deep market in government bonds with a sufficiently long maturity to match the estimated maturity of all the benefit payments, the municipality uses current market rates of the appropriate term to discount shorter term payments, and estimates the discount rate for longer maturities by extrapolating current market rates along the yield curve. Other key assumptions for pension obligations are based on current market conditions. Additional information is disclosed in Note 7. 1.2 Property, plant and equipment Property, plant and equipment are tangible non-current assets that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period. The cost of an item of property, plant and equipment is recognised as an asset when: • it is probable that future economic benefits or service potential associated with the item will flow to the municipality; and • the cost or fair value of the item can be measured reliably. Property, plant and equipment are initially measured at cost. The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost. Where an asset is acquired at no cost or for a nominal cost,its cost is its fair value as at date of acquisition. Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up. When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

159 ANNUAL REPORT 2012-2013

Accounting Policies The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the municipality is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories. Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. Subsequent to initial measurement property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses. Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value. The useful lives of items of property, plant and equipment have been assessed by management by using industry norms and are shown below: Item

Average useful life (in years)

Buildings (including airconditioning systems) Building fixture Furniture and fixtures

30 10 10

Infrastructure • Electrical network equipment • Roads

20 30

IT equipment Land

3-5 Infinite

Motor vehicles • Specialised vehicles • Other

15 5

Office equipment Plant and machinery

5 5 - 10

The depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. Reviewing the useful life of an asset on an annual basis does not require the municipality to amend the previous estimate unless expectations differ from the previous estimate. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset. Items of property, plant and equipment are derecognised on disposal, or when no future economic benefits or service potential expected from ithe use of the asset. The gain or loss from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. Work-in-progress is recognised by the municipality as expenses as incurred on a capital project. W ork-in-progress is trans-

160 ANNUAL REPORT 2012-2013

Accounting Policies ferred to property, plant and equipment when it is technically complete. Work-in-progress is not depreciated. 1.3 Intangible assets An asset is identified as intangible when it: • is capable of being separated or divided from the municipality and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, assets or liability; or • arises from contractual rights or other legal rights, excluding rights granted by statue, regardless whether those rights are transferable or separate from the municipality or from other rights and obligations. An intangible asset is recognised when: • it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the municipality; and • the cost or fair value of the asset can be measured reliably. Intangible assets are initially recognised at cost. Where an intangible asset is acquired at no cost, or for nominal cost, its cost is its fair value as at the date of acquisition. Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred. An intangible asset arising from development (or from the development phase of an internal project) is recognised when: • • • • •

it is technically feasible to complete the asset so that it will be available for use or sale; there is an intention to complete and use or sell it; there is an ability to use or sell it; it will generate probable future economic benefits or service potential; there are available technical, financial and other resources to complete the development and to use or sell the asset; and • the expenditure attributable to the asset during its development can be measured reliably. Subsequent to initial measurement intangible assets are carried at cost less any accumulated depreciation and any impairment losses. An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life. Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets. Deprecation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows: Item Computer software

Useful life Five (5) years

Intangible assets are derecognised: on disposal, or when no future economic benefits or service potential are expected from its use or disposal. The gain or loss from the derecognition of an intangible asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the intangible asset. Such difference is recognised in surplus or deficit when the intangible asset is derecognised.

161 ANNUAL REPORT 2012-2013

Accounting Policies 1.4 Heritage assets Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations. Recognition The municipality recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the municipality, and the cost or fair value can be measured reliably. Where the municipality holds a heritage asset, but on initial recognition, it does not meet the recognition criteria because it cannot be reliably measured, information on such a heritage asset is disclosed in note 5 Heritage assets. Initial measurement Heritage assets are measured at cost. Where a heritage asset is acquired at no cost, or at normal cost, its cost is its fair value as at the date of acquisition. Subsequent measurement Subsequent to intitial measurement heritage asset are carried at its cost less any accumulated impairment losses. The municipality assesses at each reporting date whether there is an indication that a heritage asset may be impaired. If any such indication exists, the municipality estimates the recoverable amount or the recoverable service amount of the heritage asset. Derecognition Heritage asset are derecognised on disposal, or when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from the derecognition of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in surplus or deficit when the heritage asset is derecognised. 1.5 Investments in controlled entities Investments in controlled entities are carried at cost less any accumulated impairment. The cost of an investment in controlled entity is the aggregate of: â&#x20AC;˘ the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the municipality; plus â&#x20AC;˘ any costs directly attributable to the purchase of the controlled entity. An adjustment to the cost of a business combination contingent on future events is included in the cost of the combination if the adjustment is probable and can be measured reliably. 1.6 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one municipality and a financial liability or a residual interest of another entity. Classification The municipality has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Class

Category

Other financial liabilities Trade and other payables

Financial liability measured at amortised cost Financial liability measured at amortised cost

Initial recognition The municipality recognises a financial asset or a financial liability in its statement of financial position when the municipality becomes a party to the contractual provisions of the instrument. The municipality recognises financial assets using trade date accounting. Initial measurement of financial assets and financial liabilities The municipality measures a financial asset and financial liability, other than those subsequently measured at fair value, intially as its fair value plus transactions costs that are directly attributable to the acquisitation or issue of the financial assets or financial liability. The municipality measures all other financial assets and financial liabilities initially at its fair value. The municipality first assesses whether the substance of a concessionary loan is in fact a loan. On initial recognition, the municipality analyses a concessionary loan into its component parts and accounts for each component separately. The municipality accounts for that part of a concessionary loan that is: • •

a social benefit in accordance with the Framework for the Preparation and Presentation of Financial Statements, where it is the issuer of the loan; or non-exchange revenue, in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (taxes and transfers), where it is the recipient of the loan.

Subsequent measurement of financial assets and financial liabilities The municipality measures all financial assets and financial liabilities after initial recognition using the following categories: • • •

Financial instruments at fair value. Financial instruments at amortised cost. Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review. The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest rate method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectability in the case of a financial asset. Fair value measurement considerations The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, the municipality establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal operating considerations. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the entity uses that technique. The chosen valuation technique makes maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that market participants would consider in setting a price and is consistent with accepted economic methodologies for pricing financial instruments. Periodically, the municipality calibrates the valuation technique and tests it for validity using prices from any observable current market transactions in the same instrument (i.e. without modification or repackaging) or based on any available observable market data. Short-term receivables and payables are not discounted where the initial credit provider granted or received is consistent with terms used in the public sector, either through established practices or legistation.

163 ANNUAL REPORT 2012-2013

Accounting Policies Gains and losses A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit. For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process. Impairment and uncollectibility of financial assets The municipality assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. For amounts due to the municipality, significant financial difficulties of the receivable, probability that the receivable will enter bankruptcy and default of payments are considered indicators of impairment. Financial assets measured at amortised cost: If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced directly or through the use of an allowance account. The amount of the loss is recognised in surplus or deficit. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly or by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit. Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in surplus or deficit within operating expenses. When such financial assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses. Financial assets measured at cost: If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed. Derecognition Financial assets The municipality derecognises financial assets using trade date accounting. The municipality derecognises a financial asset only when: • the contractual rights to the cash flows from the financial asset expire, are settled or waived; • the municipality transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or • the municipality, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restric tions on the transfer. In this case, the municipality: - derecognises the asset; and - recognises separately any rights and obligationscreated or retained in the transfer. The carrying amount of the transferred asset is allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date. Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.

164 ANNUAL REPORT 2012-2013

Accounting Policies On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit. Financial liabilities The municipality removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished, i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived. An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability. The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (taxes and transfers). 1.7 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. When a lease includes both land and buildings elements, the municipality assesses the classification of each element separately. Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability. Any contingent rents are recognised separately as an expense in the period in which they are incurred. 1.8 Non-current assets held for sale and disposal groups Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets held for sale (or disposal group) are measured at the lower of its carrying amount and fair value less costs to sell. A non-current asset is not depreciated (or amortised) while it is classified as held for sale, or while it is part of a disposal group classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale are recognised in surplus or deficit. 1.9 Impairment of cash-generating assets Cash-generating assets are those assets held by the municipality with the primaryobjective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return. Fair value less costs to sell is the amount obtainable from the sale of an asset in an armâ&#x20AC;&#x2122;s length transaction between knowledgeable, willing parties, less the costs of disposal. Identification When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired. The municipality assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the municipality estimates the recoverable amount of the asset.

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Accounting Policies

Irrespective of whether there is any indication of impairment, the municipality also tests a cash-generating intangible asset with an indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period. Value in use Value in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life. When estimating the value in use of an asset, the municipality estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and the municipality applies the appropriate discount rate to those future cash flows. Discount rate The discount rate is a pre-tax rate that reflects current market assessments of the time value of money, represented by the current risk-free rate of interest and the risks specific to the asset for which the future cash flow estimates have not been adjusted. Recognition and measurement (individual asset) If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating assetâ&#x20AC;&#x2122;s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. Cash-generating units If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the municipality determines the recoverable amount of the cash-generating unit to which the asset belongs (the assetâ&#x20AC;&#x2122;s cash-generating unit). If an active market exists for the output produced by an asset or group of assets, that asset or group of assets is identified

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Accounting Policies as a cash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash- generating unit are affected by internal transfer pricing, the municipality uses management’s best estimate of future price(s) that could be achieved in arm’s length transactions in estimating: • the future cash inflows used to determine the asset’s or cash-generating unit’s value in use; and • the future cash outflows used to determine the value in use of any other assets or cash-generating units that are affected by the internal transfer pricing. Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is justified. The carrying amount of a cash-generating unit is determined on a basis consistent with the way the recoverable amount of the cash-generating unit is determined. An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as impairment losses on individual assets. In allocating an impairment loss, the municipality does not reduce the carrying amount of an asset below the highest of: • its fair value less costs to sell (if determinable); • its value in use (if determinable); and • zero. The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other cash-generating assets of the unit. Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that non-cash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable amount of the cash-generating unit. Reversal of impairment loss The municipality assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the municipality estimates the recoverable amount of that asset. An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit. After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. A reversal of an impairment loss for a cash-generating unit is allocated to the cash-generating assets of the unit pro rata with the carrying amounts of those assets. These increases in carrying amounts are treated as reversals of impairment losses for individual assets. No part of the amount of such a reversal is allocated to a non-cash-generating asset contributing service potential to a cash-generating unit. In allocating a reversal of an impairment loss for a cash-generating unit, the carrying amount of an asset is not increased above the lower of: • its recoverable amount (if determinable); and • the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior periods. The amount of the reversal of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other assets of the unit.

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Accounting Policies 1.10 Impairment of non-cash-generating assets Cash-generating assets are those assets held by the municipality with the primary objective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return. Non-cash-generating assets are assets other than cash-generating assets. Identification When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired. The municipality assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the municipality estimates the recoverable service amount of the asset. Irrespective of whether there is any indication of impairment, the municipality also tests a non-cash-generating intangible asset with an indefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period. Value in use Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service potential. The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach: Depreciated replacement cost approach The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset. The replacement cost and reproduction cost of an asset is determined on an “optimised” basis. The rationale is that the municipality would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset. Recognition and measurement If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. Reversal of an impairment loss The municipality assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the municipality estimates the recoverable service amount of that asset. An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carry-

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Accounting Policies ing amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. 1.11 Employee benefits Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service. Short-term employee benefits include items such as: • wages, salaries and social security contributions; • short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within 12 months after the end of the reporting period in which the employees render the related employee service; • bonus, incentive and performance-related payments payable within 12 months after the end of the reporting period in which the employees render the related service; and • non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees. When an employee has rendered services to the municipality during a reporting period, the municipality recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service: • as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undis counted amount of the benefits, the municipality recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and • as an expense, unless another standard requires or permits the inclusion of the benefits in the cost of an asset. The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The municipality measures the expected cost of accumulating compensated absences as the additional amount that the municipality expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The municipality recognises the expected cost of bonus, incentive and performance -related payments when the municipality has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the municipality has no realistic alternative but to make the payments. Post-employment benefits Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion of employment. Post-employment benefit plans are formal or informal arrangements under which the municipality provides post-employment benefits for one or more employees. Multi-employer plans are defined contribution plans (other than state plans and composite social security programmes) or defined benefit plans (other than state plans) that pool the assets contributed by various entities that are not under common control and use those assets to provide benefits to employees of more than one entity, on the basis that contribution and benefit levels are determined without regard to the identity of the entity that employs the employees concerned. Post-employment benefits: Defined contribution plans Defined contribution plans are post-employment benefit plans under which the municipality pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

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Accounting Policies When an employee has rendered services to the municipality during a reporting period, the municipality recognises the contribution payable to a defined contribution plan in exchange for that service: • as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the reporting date, the municipality recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and • as an expense, unless another standard requires or permits the inclusion of the contribution in the cost of an asset. W here contributions to a defined contribution plan do not fall due wholly within 12 months after the end of the reporting period in which the employees render the related service, they are discounted. The rate used to discount reflects the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the obligation. Post-employment benefits: Defined benefit plans Defined benefit plans are post-employment benefit plans other than defined contribution plans. Actuarial gains and losses comprise experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred) and the effects of changes in actuarial assumptions. In measuring its defined benefit liability the municipality recognises actuarial gains and losses in surplus or deficit in the reporting period in which they occur. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Interest cost is the increase during a period in the present value of a defined benefit obligation which arises because the benefits are one period closer to settlement. Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to,post-employment benefits or other long-term employee benefits. Past service cost may be either positive (when benefits are introduced or changed so that the present value of the defined benefit obligation increases) or negative (when existing benefits are changed so that the present value of the defined benefit obligation decreases). In measuring its defined benefit liability the municipality recognises past service cost as an expense in the reporting period in which the plan is amended. Plan assets comprise assets held by a long-term employee benefit fund and qualifying insurance policies. The present value of a defined benefit obligation is the present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods. The return on plan assets is interest, dividends or similar distributions and other revenue derived from the plan assets, together with realised and unrealised gains or losses on the plan assets, less any costs of administering the plan (other than those included in the actuarial assumptions used to measure the defined benefit obligation) and less any tax payable by the plan itself. The amount recognised as a defined benefit liability is the net total of the following amounts: • the present value of the defined benefit obligation at the reporting date; • minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled directly; • plus any liability that may arise as a result of a minimum funding requirement. The amount determined as a defined benefit liability may be negative (an asset). The municipality measures the resulting asset at the lower of: • the amount determined above; and • the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The present value of these economic benefits is determined using a discount rate which reflects the time value of money. Any adjustments arising from the limit above is recognised in surplus or deficit. The municipality determines the present value of defined benefit obligations and the fair value of any plan assets with sufficient regularity such that the amounts recognised in the annual financial statements do not differ materially from the amounts that would be determined at the reporting date. The municipality recognises the net total of the following amounts in surplus or deficit, except to the extent that another Standard requires or permits their inclusion in the cost of an asset:

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Accounting Policies • • • • • • •

current service cost; interest cost; the expected return on any plan assets and on any reimbursement rights; actuarial gains and losses, which is recognised immediately; past service cost, which is recognised immediately; the effect of any curtailments or settlements; and the effect of applying the limit on a defined benefit asset (negative defined benefit liability).

The municipality uses the Projected Unit Credit Method to determine the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost. The Projected Unit Credit Method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. In determining the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost, the municipality attributes benefit to periods of service under the plan’s benefit formula. However, if an employee’s service in later years will lead to a materially higher level of benefit than in earlier years, the municipality attributes benefit on a straight-line basis from: • the date when service by the employee first leads to benefits under the plan (whether or not the benefits are conditional on further service); until • the date when further service by the employee will lead to no material amount of further benefits under the plan, other than from further salary increases. Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan. The results of the valuation are updated for any material transactions and other material changes in circumstances (including changes in market prices and interest rates) up to the reporting date. The municipality recognises gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on a curtailment or settlement comprises: • any resulting change in the present value of the defined benefit obligation; and • any resulting change in the fair value of the plan assets. Before determining the effect of a curtailment or settlement, the municipality remeasures the obligation (and the related plan assets, if any) using current actuarial assumptions (including current market interest rates and other current market prices). When it is virtually certain that another party will reimburse some or all of the expenditure required to settle a defined benefit obligation, the right to reimbursement is recognised as a separate asset. The asset is measured at fair value. In all other respects, the asset is treated in the same way as plan assets. In surplus or deficit, the expense relating to a defined benefit plan is presented as the net of the amount recognised for a reimbursement. The municipality offsets an asset relating to one plan against a liability relating to another plan when the municipality has a legally enforceable right to use a surplus in one plan to settle obligations under the other plan and intends either to settle the obligations on a net basis, or to realise the surplus in one plan and settle its obligation under the other plan simultaneously. Actuarial assumptions Actuarial assumptions are unbiased and mutually compatible. Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are to be settled. The rate used to discount post-employment benefit obligations (both funded and unfunded) reflects the time value of money. The currency and term of the financial instrument selected to reflect the time value of money are consistent with the currency and estimated term of the post-employment benefit obligations. Post-employment benefit obligations are measured on a basis that reflects: • estimated future salary increases; • the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those terms) at the reporting date; and • estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit plan,

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Accounting Policies if, and only if, either: • those changes were enacted before the reporting date; or • past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner, for example, in line with future changes in general price levels or general salary levels. Assumptions about medical costs take account of estimated future changes in the cost of medical services, resulting from both inflation and specific changes in medical costs. 1.12 Provisions and contingencies Provisions are recognised when: • the municipality has a present obligation as a result of a past event; • it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and • a reliable estimate can be made of the obligation. The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date. Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation. The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the municipality settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense. A provision is used only for expenditures for which the provision was originally recognised. Provisions are not recognised for future operating expenditure. If the municipality has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision. A constructive obligation to restructure arises only when the municipality: • -

has a detailed formal plan for the restructuring, identifying at least: the activity/operating unit or part of a activity/operating unit concerned; the principal locations affected; the location, function, and approximate number of employees who will be compensated for services being terminated; the expenditures that will be undertaken; and when the plan will be implemented; and

• has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the municipality. A contingent liability is: • a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the municipality; or • a present obligation that arises from past events but is not recognised because:

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Accounting Policies - it is not probably that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; - the amount of the obligation cannot be measured with sufficient reliability. Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 37. 1.13 Revenue from exchange transactions Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners. An exchange transaction is one in which the municipality receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange. Measurement Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates. Rendering of services When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: • • • •

the amount of revenue can be measured reliably; it is probable that the economic benefits or service potential associated with the transaction will flow to the municipality; the stage of completion of the transaction at the reporting date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specified time-frame, revenue is recognised on a straight line basis over the specified time-frame unless there is evidence that some other method better represents the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the significant act is executed.

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Accounting Policies When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is determined by services performed to date as a percentage of total services to be performed. Interest, royalties and dividends Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when: â&#x20AC;˘ it is probable that the economic benefits or service potential associated with the transaction will flow to the municipality; and â&#x20AC;˘ the amount of the revenue can be measured reliably. Interest is recognised, in surplus or deficit, using the effective interest rate method. Royalties are recognised as they are earned in accordance with the substance of the relevant agreements. Dividends or similar distributions are recognised, in surplus or deficit, when the municipalityâ&#x20AC;&#x2122;s right to receive payment has been established. Service fees included in the price of the product are recognised as revenue over the period during which the service is performed. 1.14 Revenue from non-exchange transactions Revenue is the gross inflows of economic benefits or service potential received and receivable by the municipality, which represents an increase in net assets, other than increases relating to contributions from owners. Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor. Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, the municipality either receives value from another party without directly giving approximately equal value in exchange, or gives value to another party without directly receiving approximately equal value in exchange. Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified. Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon the use of a transferred asset by entities external to the municipality. Recognition An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow. As the municipality satisfies a present obligation recognised as a liability in respect of an inflow of resources from a nonexchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction. Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the municipality has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met, a liability is recognised. Measurement Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the municipality. When, as a result of a non-exchange transaction, the municipality recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability.

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Accounting Policies Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because a condition is satisfied, the amount of the reduction in the liability is recognised as revenue. Transfers Apart from services in kind, which are not recognised, the municipality recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset. Transferred assets are measured at their fair value as at the date of acquisition. Gifts and donations, including goods in kind Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the municipality and the fair value of the assets can be measured reliably. Services in kind Services in kind are not recognised. 1.15 Borrowing costs Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset until such time as the asset is ready for its intended use. The amount of borrowing costs eligible for capitalisation is determined as follows: • Actual borrowing costs on funds specifically borrowed for the purpose of obtaining a qualifying asset less any investment income on the temporary investment of those borrowings. • Weighted average of the borrowing costs applicable to the municipality on funds generally borrowed for the purpose of obtaining a qualifying asset. The borrowing costs capitalised do not exceed the total borrowing costs incurred. The capitalisation of borrowing costs commences when all the following conditions have been met: • expenditures for the asset have been incurred; • borrowing costs have been incurred; and • activities that are necessary to prepare the asset for its intended use or sale are undertaken. When the carrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount or recoverable service amount or net realisable value or replacement cost, the carrying amount is written down or written off in accordance with the accounting policy on Impairment of Assets as per accounting policy number 1.9 and 1.10. In certain circumstances, the amount of the write-down or write-off is written back in accordance with the same accounting policy. Capitalisation is suspended during extended periods in which active development is interrupted. Capitalisation ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. When the municipality completes the construction of a qualifying asset in parts and each part is capable of being used while construction continues on other parts, the entity ceases capitalising borrowing costs when it completes substantially all the activities necessary to prepare that part for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred. 1.16 Unauthorised expenditure Unauthorised expenditure means: • overspending of a vote or a main division within a vote; and • expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with the purpose of the main division. All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

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Accounting Policies 1.17 Fruitless and wasteful expenditure Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised. All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance. 1.18 Irregular expenditure Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act (Act No.56 of 2003), the Municipal Systems Act (Act No.32 of 2000), and the Public Office Bearers Act (Act No. 20 of 1998), or is in contravention of the municipality’s supply chain management policy. Irregular expenditure excludes unauthorised expenditure. All expenditure relating to irregular expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance. 1.19 Conditional grants and receipts Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the municipality has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met a liability is recognised. 1.20 Budget information The approved budget is prepared on a cash basis and presented by economic classification linked to performance outcome objectives. The approved budget covers the fiscal period from 2012-07-01 to 2013-06-30. The annual financial statements and the budget are not on the same basis of accounting. The actual financial statement information is, therefore, presented on a comparable basis to the budget information. The comparison and the reconcilation between the statement of financial performance and the budget for the reporting period have been included in the Statement of comparison of budget and actual amounts. 1.21 Related parties The municipality operates in an economic sector currently dominated by entities directly or indirectly owned by the South African Government. As a consequence of the constitutional independence of the three spheres of government in South Africa, only entities within the local sphere of government are considered to be related parties. Management is those persons responsible for planning, directing and controlling the activities of the municipality, including those charged with the governance of the municipality in accordance with legislation, in instances where they are required to perform such functions. Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the municipality. Only transactions with related parties not at arms length or not in the ordinary course of business are disclosed. 1.22 Commitments Items are classified as commitments where the municipality commits itself to future transactions that will normally result in the outflow of resources. Commitments are not recognised in the statement of financial position as a liability, but are included in the disclosure notes in the following cases: • approved and contracted commitments; • where the expenditure has been approved and the contract has been awarded at the reporting date; and • where disclosure is required by a specific standard of GRAP.

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Notes to the Annual Financial Statements 2. New standards and interpretations 2.1 Standards and interpretations effective and adopted in the current year In the current year, the municipality has adopted the following standards and interpretations that are effective for the current financial year: GRAP 23: Revenue from Non-exchange Transactions Revenue from non-exchange transactions arises when the municipality receives value from another party without directly giving approximately equal value in exchange. An asset acquired through a non-exchange transaction shall initially be measured at its fair value as at the date of acquisition. This revenue will be measured at the amount of increase in net assets recognised by the municipality. An inflow of resources from a non-exchange transaction recognised as an asset shall be recognised as revenue, except to the extent that a liability is recognised for the same inflow. As the municipality satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it will reduce the carrying amount of the liability recognised as recognise an amount equal to that reduction. The effective date of the standard is for years beginning on or after 01 April 2012. The municipality has adopted the standard for the first time in the 2013 annual financial statements. The impact of the standard is not material. GRAP 24: Presentation of Budget Information in the Financial Statements Subject to the requirements of paragraph No.19, the municipality shall present a comparison of the budget amounts for which it is held publicly accountable and actual amounts either as a separate additional financial statement or as additional budget columns in the financial statements currently presented in accordance with Standards of GRAP. The comparison of budget and actual amounts shall present separately for each level of legislative oversight: • the approved and final budget amounts; • the actual amounts on a comparable basis; and • by way of note disclosure, an explanation of material differences between the budget for which the municipality is held publicly accountable and actual amounts, unless such explanation is included in other public documents issued in conjunction with the financial statements, and a cross reference to those documents is made in the notes. Where the municipality prepares its budget and annual financial statements on a comparable basis, it includes the comparison as an additional column in the primary annual financial statements. Where the budget and annual financial statements are not prepared on a comparable basis, a separate statement is prepared called the ‘Statement of Comparison of Budget and Actual Amounts’. This statement compares the budget amounts with the amounts in the annual financial statements adjusted to be comparable to the budget. A comparable basis means that the budget and annual financial statements: • • • •

are prepared using the same basis of accounting i.e. either cash or accrual; include the same activities and entities; use the same classification system; and are prepared for the same period.

The effective date of the standard is for years beginning on or after 01 April 2012. The municipality has adopted the standard for the first time in the 2013 annual financial statements. The adoption of this standard has not had a material impact on the results of the municipality, but has resulted in more disclosure than would have previously been provided in the annual financial statements. GRAP 103: Heritage Assets GRAP 103 defines heritage assets as assets which have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.

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Notes to the Annual Financial Statements 2. New standards and interpretations A heritage asset should be recognised as an asset only if: • it is probable that future economic benefits or service potential associated with the asset will to the municipality; and • the cost of fair value of the asset can be measured reliably. The standard required judgement in applying the initial recognition criteria to the specific circumstances surrounding the entity and the assets. GRAP 103 states that a heritage asset should be measured at its cost unless it is acquired through a non-exchange transaction which should then be measured at its fair value as at the date of acquisition. In terms of the standard, the municipality has a choice between the cost and revaluation model as accounting policy for subsequent recognition and should apply the chosen policy to an entire class of heritage assets. The cost model requires a class of heritage assets to be carried at its cost less any accumulated impairment losses. The revaluation model required a class of heritage assets to be carried at its fair value at the date of the revaluation less any subsequent impairment losses. The standard also states that a restriction on the disposal of a heritage asset does not preclude the entity from determining the fair value. GRAP 103 states that a heritage asset should not be depreciated, but the municipality should assess at each reporting date whether there is an indication that it may be impaired. For a transfer from heritage assets carried at a revalued amount to property, plant and equipment, investment property, inventories or intangible assets, the asset’s deemed cost for subsequent accounting should be its revalued amount at the date of transfer. The municipality should treat any difference at that date between the carrying amount of the heritage asset and its fair value in the same way as a revaluation in accordance with this standard. If an item of property, plant and equipment or an intangible asset carried at a revalued amount, or investment property carried at fair value is reclassified as a heritage asset carried at a revalued amount, the entity applies the applicable Standard of GRAP to that asset up to the date of change. The municipality treats any difference at that date between the carrying amount of the asset and its fair value in accordance with the applicable Standard of GRAP relating to that asset. For a transfer from investment property carried at fair value, or inventories to heritage assets at a revalued amount, any difference between the fair value of the asset at that date and its previous carrying amount should be recognised in surplus or deficit. The carrying amount of a heritage asset should be derecognised: • on disposal; or • when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from the derecognition of a heritage asset should be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in surplus or deficit when the heritage asset is derecognised. The effective date of the standard is for years beginning on or after 01 April 2012. The municipality has adopted the standard for the first time in the 2013 annual financial statements. The impact of the standard is not material. GRAP 21: Impairment of non-cash-generating assets Non-cash-generating assets are assets other than cash-generating assets. When the carrying amount of a non-cashgenerating asset exceeds its recoverable service amount, it is impaired. The municipality assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the municipality estimates the recoverable service amount of the asset. The present value of the remaining service potential of a non-cash-generating asset is determined using one of the following approaches: • Depreciated replacement cost approach

178 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements • Restoration cost approach • Service units approach If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued non-cash-generating asset is treated as a revaluation decrease. The municipality assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the municipality estimates the recoverable service amount of that asset. A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase. The effective date of the standard is for years beginning on or after 01 April 2012. The municipality has adopted the standard for the first time in the 2013 annual financial statements. The impact of the standard is not material. GRAP 26: Impairment of cash-generating assets Cash-generating assets are those assets held by the municipality with the primary objective of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return. When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired. The municipality assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the municipality estimates the recoverable amount of the asset. When estimating the value in use of an asset, the municipality estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal. The municipality applies the appropriate discount rate to those future cash flows. If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease. If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate therecoverable amount of the individual asset, the municipality determines the recoverable amount of the cash-generating unit to which the asset belongs (the asset’s cash-generating unit). If an active market exists for the output produced by an asset or group of assets, that asset or group of assets is identified as a cash-generating unit, even if some or all of the output is used internally. If the cash inflows generated by any asset or cash-generating unit are affected by internal transfer pricing, the municipality uses management’s best estimate of future price(s) that could be achieved in arm’s length transactions in estimating: • the future cash inflows used to determine the asset’s or cash-generating unit’s value in use; and • the future cash outflows used to determine the value in use of any other assets or cash-generating units that are affected by the internal transfer pricing. Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is justified. An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as impairment losses on individual assets. Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that noncash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable amount of the cash-generating unit. The municipality assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the municipality estimates the recoverable amount of that asset.

179 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase. The effective date of the standard is for years beginning on or after 01 April 2012. The municipality has adopted the standard for the first time in the 2013 annual financial statements. The impact of the standard is not material. GRAP 104: Financial Instruments The standard prescribes recognition, measurement, presentation and disclosure requirements for financial instruments. Financial instruments are defined as those contracts that results in a financial asset in one entity and a financial liability or residual interest in another entity. A key distinguishing factor between financial assets and financial liabilities and other assets and liabilities, is that they are settled in cash or by exchanging financial instruments rather than through the provision of goods or services. In determining whether a financial instrument is a financial asset, financial liability or a residual interest, the municipality considers the substance of the contract and not just the legal form. Financial assets and financial liabilities are initially recognised at fair value. Where the municipality subsequently measures financial assets and financial liabilities at amortised cost or cost, transactions costs are included in the cost of the asset or liability. The transaction price usually equals the fair value at initial recognition, except in certain circumstances, for example, where interest free credit is granted or where credit is granted at a below market rate of interest. Short-term receivables and payables are not discounted where the initial credit period granted or received is consistent with terms used in the public sector, either through established practices or legislation. Concessionary loans are loans either received by or granted to another entity on concessionary terms, e.g. at low interest rates and flexible repayment terms. On initial recognition, the fair value of a concessionary loan is the present value of the agreed contractual cash flows, discounted using a market related rate of interest for a similar transaction. The difference between the proceeds either received or paid and the present value of the contractual cash flows is accounted for as non- exchange revenue by the recipient of a concessionary loan in accordance with Standard of GRAP on Revenue from Non-exchange Revenue Transactions (taxes and transfers), and using the Framework for the Preparation and Presentation of Financial Statements (usually as an expense) by the grantor of the loan. Financial assets and financial liabilities are subsequently measured either at fair value or, amortised cost or cost. The municipality measures a financial instrument at fair value if it is: • a derivative; • a combined instrument designated at fair value, i.e. an instrument that includes a derivative and a non-derivative host contract; • held-for-trading; • a non-derivative instrument with fixed or determinable payments that is designated at initial recognition to be measured at fair value; • an investment in a residual interest for which fair value can be measured reliably; and • other instruments that do not meet the definition of financial instruments at amortised cost or cost. Financial assets and financial liabilities that are non-derivative instruments with fixed or determinable payments, for example deposits with banks, receivables and payables, are measured at amortised cost. At initial recognition, the municipality can however designate such an instrument to be measured at fair value. The municipality can only measure investments in residual interests at cost where the fair value of the interest cannot be determined reliably. Once the municipality has classified a financial asset or a financial liability either at fair value or amortised cost or cost, it is only allowed to reclassify such instruments in limited instances. The municipality derecognises a financial asset, or the specifically identified cash flows of an asset, when: • the cash flows from the asset expire, are settled or waived; • significant risks and rewards are transferred to another party; or • despite retaining significant risks and rewards, the municipality has transferred control of the asset to another entity.

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Notes to the Annual Financial Statements The municipality derecognises a financial liability when the obligation is extinguished. Exchanges of debt instruments between a borrower and a lender are treated as the extinguishment of an existing liability and the recognition of a new financial liability. Where the municipality modifies the term of an existing financial liability, it is also treated as the extinguishment of an existing liability and the recognition of a new liability. The municipality cannot offset financial assets and financial liabilities in the statement of financial position unless a legal right of set-off exists, and the parties intend to settle on a net basis. GRAP 104 requires extensive disclosures on the significance of financial instruments for the municipalityâ&#x20AC;&#x2122;s statement of financial position and statement of financial performance, as well as the nature and extent of the risks that the municipality is exposed to as a result of its annual financial statements. Some disclosures, for example the disclosure of fair values for instruments measured at amortised cost or cost and the preparation of a sensitivity analysis, are encouraged rather than required. The effective date of the standard is for years beginning on or after 01 April 2012. The municipality has adopted the standard for the first time in the 2013 annual financial statements. The impact of the standard is set out in note 40 Changes in accounting policy. 2.2 Standards and Interpretations early adopted The municipality has chosen to early adopt the following standards and interpretations: GRAP 1 (as revised 2012): Presentation of Financial Statements Minor amendments were made to the statement of financial performance as well as the statement of changes in net assets. All amendments are to be applied retrospectively. The effective date of the amendment is for years beginning on or after 01 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material. GRAP 3 (as revised 2012): Accounting Policies, Change in Accounting Estimates and Errors Amendments were made to changes in accounting policies. A change to the cost model when a reliable measure of fair value is no longer available (or vice versa) for an asset that a Standard of GRAP would otherwise require or permit to be measured at fair value are no longer considered to be a change in an accounting policy in terms of the Standard of GRAP on Accounting Policies, Changes in Accounting Estimates and Errors (as revised in 2010). The effective date of the amendment is for years beginning on or after 01 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material. GRAP 7 (as revised 2012): Investments in Associates Amendments were made to definitions. A requirement to include transaction costs on initial recognition of an investment in an associate under the equity method, has been included in the Standard of GRAP Investments in Associates. All amendments are to be applied prospectively. The effective date of the amendment is for years beginning on or after 01 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material. GRAP 9 (as revised 2012): Revenue from Exchange Transactions Amendments were made to the scope and definitions. All amendments are to be applied retrospectively. The effective date of the amendment is for years beginning on or after 01 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material. GRAP 13 (as revised 2012): Leases Amendments were made to disclosures. All amendments are to be applied retrospectively. The effective date of the amendment is for years beginning on or after 01 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material.

181 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements GRAP 16 (as revised 2012): Investment Property Amendments were made to definitions, measurement at recognition, disposals and disclosure. Changes were made to the Standard of GRAP on Investment Property (as revised in 2010) to ensure the consistent application of the principle where assets are acquired in exchange for non-monetary assets when the exchange transaction lacks commercial substance. Furthermore, the assessment of significant use of an investment property has been clarified. All amendments to be applied prospectively. The effective date of the amendment is for years beginning on or after 01 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material. GRAP 17 (as revised 2012): Property, Plant and Equipment Amendments were made to definitions, measurement at recognition, disposals and disclosure. Changes were made to the Standard of GRAP on Property, Plant and Equipment (as revised in 2010) to ensure the consistent application of the principle where assets are acquired in exchange for non-monetary assets when the exchange transaction lacks commercial substance. Furthermore, the requirement to disclose property, plant and equipment that were temporarily idle, has been clarified. All amendments are to be applied prospectively. The effective date of the amendment is for years beginning on or after 1 April 2013. The municipality has early adopted the amendment for the first time in the 2013 annual financial statements. The impact of the amendment is not material.

182 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements 2.3 Standards and interpretations issued, but not yet effective The municipality has not applied the following standards and interpretations, which have been published and are mandatory for the municipality’s accounting periods beginning on or after 01 July 2013 or later periods: GRAP 25: Employee Benefits The objective of GRAP 25 is to prescribe the accounting and disclosure for employee benefits. The standard requires the municipality to recognise: • A liability when an employee has provided service in exchange for employee benefits to be paid in the future; and • an expense when the municipality consumes the economic benefits or service potential arising from service provided by an employee in exchange for employee benefits. The standard states the recognition, measurement and disclosure requirements of: • Short-term employee benefits; - all short-term employee benefits; - short-term compensated absences; - bonus, incentive and performance-related payments; • Post-employment benefits: defined contribution plans; • Other long-term employee benefits; and * Termination benefits. The major difference between this this standard (GRAP 25) and IAS 19 is with regards to the treatment of actuarial gains and losses and past service costs. This standard requires the municipality to recognise all actuarial gains and losses and past service costs immediately in the statement of financial performance once occurred. The effective date of the standard is for years beginning on or after 01 April 2013. The municipality expects to adopt the standard for the first time in the 2014 annual financial statements. The impact of this standard is currently being assessed. GRAP 105: Transfers of Functions Between Entities Under Common Control The objective of this standard is to establish accounting principles for the acquirer and transferor in a transfer of functions between entities under common control. A transfer of functions between entities under common control is a reorganisation and or reallocation of functions between entities that are ultimately controlled by the same entity before and after a transfer of functions. In the event of a transfer of functions between entities under common control, the assets and liabilities should be recognised (by the acquirer) at their carrying amounts and should be derecognised (by the transferor) at their carrying amounts. The difference between amount of consideration paid or received, if any, and the carrying amounts of assets and liabilities should be recognised in accumulated surplus/(deficit). Specific disclosures are required when there is a transfer of functions between entities under common control. This standard has been approved by the Accounting Standards Board but its effective date has not yet been determined by the Minister of Finance. The municipality expects to adopt the standard for the first time once it becomes effective. The impact of the standard is currently being assessed. GRAP 106: Transfers of Functions Between Entities not Under Common Control The objective of this standard is to establish accounting principles for the acquirer in a transfer of functions between entities not under common control. A transfer of functions between entities not under common control is a reorganisation and or reallocation of functions between entities that are not ultimately controlled by the same entity before and after a transfer of functions. In the event of a transfer of functions between entities not under common control, the assets and liabilities should be recognised (by the acquirer) at their acquisition date fair values. The difference between amount of consideration paid or received, if any, and the fair value of assets acquired and liabilities assumed should be recognised in accumulated surplus/(deficit). For transfer of functions between entities not under

183 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements common control there are some specific recognition and measurement principles and exceptions to the recognition and measurement principles. Specific disclosures are required when there is a transfer of functions between entities not under common control. This standard has been approved by the Accounting Standards Board but its effective date has not yet been determined by the Minister of Finance. The municipality expects to adopt the standard for the first time once it becomed effective. The impact of the standard is currently being assessed. GRAP 107: Mergers The objective of this standard is to establish accounting principles for the combined entity and combining entities in a merger. A merger is where a new combined entity is started, no acquirer can be identified and the combining entities do not have any control over the combined entity. In the event of a merger, the assets and liabilities should be recognised (by the combined entity) at their carrying amounts and should be derecognised (by the combining entities) at their carrying amounts. The difference between the carrying amounts of assets and liabilities should be recognised in accumulated surplus/(deficit). Specific disclosures are required when there is a merger. This standard has been approved by the Accounting Standards Board but its effective date has not yet been determined by the Minister of Finance. The municipality expects to adopt the standard for the first time once it becomes effective. The impact of the standard is currently being assessed. GRAP 20: Related Parties The objective of this standard is to ensure that the reporting entityâ&#x20AC;&#x2122;s annual financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and surplus or deficit may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.

184 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements The municipality (in this standard referred to as the reporting entity) shall apply this standard in: • • • •

identifying related party relationships and transactions; identifying outstanding balances, including commitments, between the municipality and its related parties; identifying the circumstances in which disclosure of the items in (a) and (b) is required; and determining the disclosures to be made about those items.

This standard requires disclosure of related party relationships, transactions and outstanding balances, including commitments, in the consolidated and separate financial statements of the reporting entity in accordance with the Standard of GRAP on Consolidated and Separate Financial Statements. This standard also applies to individual annual financial statements. Disclosure of related party transactions, outstanding balances, including commitments, and relationships with related parties may affect users’ assessments of the financial position and performance of the reporting entity and its ability to deliver agreed services, including assessments of the risks and opportunities facing the entity. This disclosure also ensures that the reporting entity is transparent about its dealings with related parties. The standard states that a related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control. As a minimum, the following are regarded as related parties of the reporting entity: • A person or a close member of that person’s family is related to the reporting entity if that person: - has control or joint control over the reporting entity; - has significant influence over the reporting entity; - is a member of the management of the entity or its controlling entity. • An entity is related to the reporting entity if any of the following conditions apply: - the entity is a member of the same economic entity (which means that each controlling entity, controlled entity and fellow controlled entity is related to the others); - one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of an economic entity of which the other entity is a member); - both entities are joint ventures of the same third party; - one entity is a joint venture of a third entity and the other entity is an associate of the third entity; - the entity is a post-employment benefit plan for the benefit of employees of either the entity or an entity related to the entity. If the reporting entity is itself such a plan, the sponsoring employers are related to the entity; - the entity is controlled or jointly controlled by a person identified in (a); and - a person identified in (a)(i) has significant influence over that entity or is a member of the management of that entity (or its controlling entity). The standard states that a related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged. The standard elaborates on the definitions and identification of: • • • • •

close member of the family of a person; management; related parties; remuneration; and significant influence.

The standard sets out the requirements, inter alia, for the disclosure of: • control; • related party transactions; and • remuneration of management. Only transactions with related parties where the transactions are not concluded within normal normal operating procedures

185 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements or on terms that are not no more or no less favourable than the terms it would use to conclude transactions with another entity or person are disclosed. The standard requires that remuneration of management must be disclosed per person and in aggregate.This standard has been approved by the Accounting Standards Board but its effective date has not yet been determined by the Minister of Finance. The municipality expects to adopt the standard for the first time once it becomes effective. The impact of this standard is currently being assessed. GRAP 16: Intangible Assets - Website Costs The interpretation deals with the treatment of the municipalityâ&#x20AC;&#x2122;s own website. It concludes that the municipalityâ&#x20AC;&#x2122;s own website that arises from development and is for internal or external access is an internally generated intangible asset that is subject to the requirements of the Standard of GRAP on Intangible Assets. A website arising from development will be recognised as an intangible asset if, and only if, in addition to complying with the general requirements described in the Standard of GRAP on Intangible Assets for recognition and initial measurement, the municipality can satisfy the requirements in paragraph 54 in the Standard of GRAP on Intangible Assets, which in particular requires the municipality to be able to demonstrate how its website will generate probable future economic benefits or service potential. If the municipality is not able to demonstrate how a website developed solely or primarily for providing information about its own products and services will generate probable future economic benefits or service potential, all expenditure on developing such a website will be recognised as an expense when incurred. A website that is recognised as an intangible asset under this interpretation will be measured after initial recognition by applying the requirements in the Standard of GRAP on Intangible Assets. The effective date of the interpretation is for years beginning on or after 01 April 2013. The municipality expects to adopt the interpretation for the first time in the 2014 annual financial statements. The impact of this amendment is currently being assessed. 2.4 Standards and interpretations not yet effective or relevant The following standards and interpretations have been published and are mandatory for the municipalityâ&#x20AC;&#x2122;s accounting periods beginning on or after 01 July 2013 or later periods but are not relevant to its operations:

186 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements GRAP 18: Segment Reporting Segments are identified by the way in which information is reported to management, both for purposes of assessing performance and making decisions about how future resources will be allocated to the various activities undertaken by the municipality. The major classifications of activities identified in budget documentation will usually reflect the segments for which an entity reports information to management. Segment information is either presented based on service or geographical segments. Service segments relate to a distinguishable component of the municipality that provides specific outputs or achieves particular operating objectives that are in line with the municipalityâ&#x20AC;&#x2122;s overall mission. Geographical segments relate to specific outputs generated, or particular objectives achieved, by the municipality within a particular region. This Standard has been approved by the Board but its effective date has not yet been determined by the Minister of Finance. The effective date indicated is a provisional date and could change depending on the decision of the Minister of Finance. This standard has been approved by the Accounting Standards Board but its effective date has not yet been determined by the Minister of Finance. The municipality expects to adopt the standard for the first time once it becomes effective. The adoption of this standard is not expected to impact on the results of the municipality, but may result in more disclosure than is currently provided in the annual financial statements. GRAP 1 (as revised 2012): Applying the Probability Test on Initial Recognition of Revenue This interpretation of the Standards of GRAP now addresses the manner in which the municipality applies the probability test on initial recognition of both: (a) exchange revenue in accordance with the Standard of GRAP on Revenue from Exchange Transactions; and (b) non-exchange revenue in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers). This interpretation supersedes the interpretation of the Standards of GRAP: Applying the Probability Test on Initial Recognition of Exchange Revenue issued in 2009. The effective date of the interpretation is for years beginning on or after 01 April 2013. The municipality expects to adopt the interpretation for the first time in the 2014 annual financial statements. The impact of this interpretation is currently being assessed.

187 ANNUAL REPORT 2012-2013

188 ANNUAL REPORT 2012-2013 (1 730 769)

4 101 870

10 705 522

Specialised vehicles

Work in progress (44 228 826)

(6 118 916)

29 445 916

Building fixtures

375 542 104

(2 713 910)

27 007 008

Infrastructure

Total

(5 322 653)

(2 409 722)

(4 443 102)

(1 099 356)

(436 079)

(19 954 319)

8 034 439

5 421 593

9 374 511

4 283 827

1 424 977

275 382 441

360 000

Accumulated depreciation and accumulated impairment

2013

IT equipment

Office equipment

Motor vehicles

Furniture and fixtures

Plant and machinery

Buildings

Land

Cost/Valuation

3. Property, plant and equipment

Figures in Rands

331 313 278

10 705 522

2 371 101

23 327 000

24 293 098

2 711 786

3 011 871

4 931 409

3 184 471

988 898

255 428 122

360 000

Carrying value

356 516 738

1 088 245

4 101 870

29 031 591

26 973 973

6 300 303

4 285 979

8 312 978

4 230 677

1 404 988

270 426 134

360 000

Cost/Valuation

(28 056 339)

(1 457 559)

(3 213 884)

(1 407 363)

(4 936 540)

(1 393 157)

(3 630 359)

(692 471)

(295 280)

(11 029 726)

Accumulated depreciation and accumulated impairment

2012

328 460 399

1 088 245

2 644 311

25 817 707

25 566 610

1 363 763

2 892 822

4 682 619

3 538 206

1 109 708

259 396 408

360 000

Carrying value

Notes to the Annual Financial Statements

189 ANNUAL REPORT 2012-2013

Total

Work in progress

Specialised vehicles

Building fixtures

Infrastructure

IT equipment

Office equipment

Motor vehicles

Furniture and fixtures

Plant and machinery

Buildings

Land

328 460 399

1 088 245

2 644 311

25 817 707

25 566 610

1 363 763

2 892 822

4 682 619

3 538 206

1 109 708

259 396 408

360 000

Opening balance -

19 927 039

9 617 277

414 325

33 035

1 734 136

1 135 613

1 963 206

53 150

19 989

4 956 308

3. Property, plant and equipment (continued) Reconciliation of property, plant and equipment - 2013

Figures in Rands

(901 674)

361 728

(16 534 214)

(273 210)

(2 905 032)

(1 306 547)

(747 841)

(1 016 564)

(812 742)

(406 885)

(140 799)

(8 924 594)

331 313 278

10 705 522

2 371 101

23 327 000

24 293 098

2 711 786

3 011 871

4 931 409

3 184 471

988 898

255 428 122

360 000

Notes to the Annual Financial Statements

190 ANNUAL REPORT 2012-2013

No assets have been pledged as security Assets subject to finance lease (Net carrying amount) Office equipment:

Pledged as security

Total

Work in progress

Specialised vehicles

Building fixtures

Infrastructure

IT equipment

Office equipment

Motor vehicles

Furniture and fixtures

Plant and machinery

Buildings

Land

1 125 740

330 665 753

22 816 167

26 640 566

23 267 256

20 728 158

1 140 154

1 376 823

3 367 585

2 661 436

1 250 520

227 057 088

60 000

Opening balance

3. Property, plant and equipment (continued) Reconciliation of property, plant and equipment - 2012

Figures in Rand

1 712 470

35 789 069

1 088 245

2 909 227

4 374 200

767 306

1 950 048

2 647 528

1 233 899

20 818 616

Additions

(24 114 735)

(23 716 490)

(9 418)

(388 827)

Disposals

(22 816 167)

2 050 514

1 519 311

19 246 342

Transfers

(13 879 688)

(279 765)

(2 409 290)

(1 055 059)

(534 279)

(434 049)

(943 667)

(357 129)

(140 812)

(7 725 638)

Depreciation

328 460 399

1 088 245

2 644 311

25 817 707

25 566 610

1 363 763

2 892 822

4 682 619

3 538 206

1 109 708

259 396 408

360 000

Total

Notes to the Annual Financial Statements

Notes to the Annual Financial Statements Notes to the Annual Financial Statements Figures in Rands 3. Property, plant and equipment (continued) Reconciliation of work in progress 2013 Included within Other PPE

Total

Opening balance

1 088 245

Additions/capital expenditure

9 617 276

10 705 521

Reconciliation of work in progress 2012 Included within Other PPE

Total

Opening balance

22 816 167

Additions/capital expenditure

1 088 245

Transferred to completed items

22 816 167

1 088 245

A register containing the information required by section 63 of the Municipal Finance Management Act is available for inspection at the registered office of the municipality. 4. Intangible assets 2013 Accumulated amortisation and accumulated impairment

Cost/Valuation Computer software

2012

916 599

(660 028)

Carrying value

256 571

Cost/Valuation

916 599

Reconciliation of intangible assets - 2013

(367 491)

Carrying value

549 108

Reconciliation of intangible assets - 2012

Opening balance

Amortisation

Total

549 108

(292 537)

256 571

Computer software

Accumulated amortisation and accumulated impairment

Opening balance 916 599

Amortisation

Total

(367 491)

549 108

5. Heritage assets 2013 Cost/Valuation Mayoral necklace

154 250

2012 Accumulated impaired losses

Carrying value

Cost/Valuation

154 250

191 ANNUAL REPORT 2012-2013

Accumulated impaired losses -

Carrying value

154 250

Notes to the Annual Financial Statements Reconciliation of heritage assets 2013

Reconciliation of intangible assets - 2012

2013 Opening balance Mayoral necklace

154 250

2012 Total 154 250

Opening balance 124 450

Additions

Total

29 800

154 250

6. Investment in municipal entities Controlled entities

2013

2012

Investmetnt in Eastvaal Financing Partnership: Gert Sibande District Muncipality hold a 99% interest in this partnership. The investment in the partnership is carried at the cost of obtaining control of the partnership, less annual distribution of contributions.

26 095 352

Investment in Eastvaal Development Trust: Gert Sibande District Muncipality is the 100% beneficiary of the trust. The investment in the Eastvaal Development Trust is carried at the fair value. The fair value of the trust is determined by reference to the net assets of the trust.

6 757 168

6 956 327

32 852 520

33 051 679

7. Employee benefit obligations Defined benefit plan Post-retirement medical aid plan The post employment medical aid plan liability is valued on a generally accepted actuarial valuation method. We calculated the liability on a member-by-member basis, taking into account matters arising in respect of princical members and their spouses. Ages were calculated as age of last birthday on 30 June 2013. We use the Project Unit Credit Method as prescribed by IAS 19 (AC 116). This method is based on the approximation that the post-retirement benefit is notionally built up over the employeesâ&#x20AC;&#x2122; working file. The actuarial valuation of PRMA liability involves the following: The projection of future post-retirement medical contribution subsidy cashflow, taking into account probabilities of survival witfdrawal, ill-health retirement and death while in service. The medical contribution subsidies arising in respect of the audit dependants of employees. Increasing the projected subsidy cashflows in line with expected long-term contribution escalation. Discounting these cashflows in order to express the post employment medical aid plan liability in current rand terms. The amount represent the municipalityâ&#x20AC;&#x2122;s liability for post-employment medical aid benefit for the sole remaining pensioner under the now-defunct plan. The municipalityâ&#x20AC;&#x2122;s maximun liabity for the current year was determinded by an actuarial valuation report. Current employees do not enjoy post-retirement medical aid benefits. Employees of the municipality belong to the National Fund for Municipality Workers and the Municipal Gratuity Fund. These funds are defined contribution plans. The municipality has no legal or constructive obligation to pay further contributions. Contributions are recognised as an expense in the Statement of Financial Performance in the year in which they become payable. The amounts recognised in the statement of financial position are as follows

2013

2012

Carrying value

(274 496)

(255 930)

Opening balance

31 288

26 524

Payments made

(14 680)

(14 805)

Interest cost

(20 112)

(30 285)

Acturial (gains)/losses

278 000

274 496

192 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements 8. Irregular expenditure The fair value of plan assets includes:

2013

2012

Balance unspent at the beginning of the year

2 443 735

58 000

Curent year expenditure

(2 385 735)

Current year recovered

(2 385 735)

Written back as per Council resolution

58 000

2 443 735

Incorrect Sars payment During prior years an amount of R120 000 was inadventently paid to an individual who misrepresented himself as a Sars employee. The municipality has all ready recovered an amount of R62 000 in previous years. The oustanding amount of R58 000 is in the process of being recovered. Absa fraud An amount of R9 780 000 was fraudulently taken from the municipalityâ&#x20AC;&#x2122;s Absa Bank account in prior years. An amount of R2 385 735 has been recovered in the current year. In prior years the difference has been recovered. The total amount of R9 780 000 has been recovered over a period. 9. Other receivables 2013

2012

Study bursaries

279 647

201 826

Motor loans

47 677

67 829

Irregular expenditure

58 000

2 443 735

385 324

2 713 390

Motor vehicle loans: Senior staff were entitlied to motor vehicle loans which attracted interest at 8.5% per annum. The loans were repayable over a maximum period of six (6) years. As from 1 July 2004 no new loans were approved in compliance with the MFMA. 10. Receivables from exchange and non-exchange transactions 2013

2012

116 763

Accrued interest

117 764

Dipaleseng Municipality MIG

7 841 929

Mpumalanga Province CoGTA

2 922 778

2 510 538

Other receivables

365 087

568 211

Provision for impairment - Disaliseng

(7 841 929)

3 404 628

3 196 513

Trade and other receivables past due but not impaired. Trade and other receivables which are less than three (3) months past due are not considered to be impaired. At 30 June 2013, R3 404 202 (2012: R 3 217 230) were past due but not impaired. 11. VAT receivable

VAT

193 ANNUAL REPORT 2012-2013

2013

2012

7 607 181

8 007 098

Notes to the Annual Financial Statements Included in the above is an amount of R2 525 118 (2012: R4 201 921) which was incurred on trade and other payables on year-end. This amount cannot be claimed from Sars until payment have been made to the creditors as the municipality is registered on the payment basis for VAT purposes. 12. Cash and cash equivalents Cash and cash equivalents consist of:

2013

2012

Cash on hand

7 600

8 600

Bank balances

60 162 923

33 433 558

60 170 523

33 442 158

The municipality had the following bank accounts: Bank statement balances Account number/ description

30 June 2013

Cash book balances

30 June 2012

30 June 2011

30 June 2013

30 June 2012

30 June 2011

Absa Bank Current Account: 1053-971-462

1 791 106

1 292 249

4 474 407

59 903 943

Absa Bank Account: 4063-211-572

58 112 837

31 892 979

5 574 659

Nedbank BANK Account: 1454-106-999

258 980

250 430

235 139

258 980

250 430

235 139

10 284 205

60 162 923

33 433 558

10 272 516

60 162 923

33 435 658

33 183 128

10 037 377

13. Non-current assets held for sale The property was included in non-current assets held for sale in 2012. The reason why it was not sold was a delay in the zoning process. Management is still committed to the sale of this assets. The disposal are expected to be completed by 30 June 2014. Cash and cash equivalents consist of:

2013

2012

Non-current assets held for sale

11 503 687

Minimum lease payments due:

2013

2012

Within one year

5 950 003

5 950 687

In second to fifth year inclusive

25 685 621

32 310 987

11 086 742

31 635 624

49 348 416

(7 546 407)

(24 807 509)

24 089 217

24 540 907

14. Finance lease obligation

Later than five years Less: future finance charges

Present value of minimum lease payments

194 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements Present value of minimum lease payments due

2013

2012

Within one year

5 950 033

5 200 045

In second to fifth year inclusive

18 139 184

15 306 588

4 034 274

24 089 217

24 540 907

2013

2012

Non-current liabilities

23 499 263

24 001 548

Current liabilities

589 954

539 359

24 089 217

24 540 907

Later than five years

It is municipal policy to lease certain buildings and equipment under finance leases. The average lease term was three (3) years and the average effective borrowing rate was 9% (2012: 9%). Interest rates are linked to prime at the contract date. All leases have fixed repayments and include additional charges for contingent rent based on a percentage of sales. The municipalityâ&#x20AC;&#x2122;s obligations under finance leases are secured by the lessorâ&#x20AC;&#x2122;s charge over the leased assets. Refer to No.3. 15. Other financial liabilities 2013

2012

At amortised cost Absa bank loan. This loan is unsecured, bears interest at 8.22% per annum and is repayable in bi-annual instalments of R4 335 090

19 194 560

25 946 761

Non-current liabilities at amortised cost

11 948 889

19 273 373

Current liabilities at amortised cost

7 245 671

6 673 388

16. Provisions Opening balance

Additions

Total

Reconciliation of provisions - 2013 Provision for bonuses

951 916

273 012

1 224 928

951 916

Reconciliation of provisions - 2012 Provision for bonuses

The municipality pays bonuses to employees upon the completion of twelve (12) months from the employment date, upon anniversary of employment. No uncertainties about the timing and the amount as the time and the amount of payment is predetermined. The only uncertainty is that should a person resign before his or her employment date, no pro-rata payment is made and the provision is reversed annually with the compilation of the annual financial statements. 17. Deferred gain on sale and leaseback The property in Secunda was sold by the Municipality to the Eastvaal Financing Partnership. This property is being leased back by the municipality through a finance lease over 20 years. Every year the deferred profit is amortised as shown in the Statement of Financial Performance.

Deferred profit on sale and leaseback

195 ANNUAL REPORT 2012-2013

2013

2012

2 917 024

2 553 649

Notes to the Annual Financial Statements 18. Payables from exchange transactions 2013

2012

Trade payables

35 830 114

34 215 638

Retention

10 926 782

22 514 071

Staff leave pay

4 426 658

2 592 583

Other creditors

(7 428)

886 259

Other

479 443

268 479

51 655 569

60 477 030

196 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements 19. Revenue 2013

2012

Rental income

2 020 000

505 111

Income from entities

4 716 141

5 295 316

Other income

4 158 751

1 991 643

Interest received

4 911 199

3 613 600

Government grants and subsidies

276 297 349

279 940 990

292 103 440

291 346 660

The amount included in revenue arising from exchanges of goods or services are as follows:

2013

2012

Rental income

2 020 000

505 111

Income from municipal entities

4 716 141

5 295 316

Other income

4 158 751

1 991 643

Interest received

4 911 199

3 613 600

15 806 091

11 405 670

2013

2012

276 297 349

279 940 990

The amount included in revenue arising from non-exchange transactions is as follows: Government grants and subsidies

20. Government grants and subsidies Operating grants

2013

Equitable share

17 403 000

17 634 000

Financial management grant

1 250 000

Municipal systems improvement grant

1 000 000

Revenue replacement grant

235 507 000

228 648 000

255 160 000

248 532 000

2012

Capital grants

2013

Department of water affairs

20 137 349

8 132 000

CoGTA

22 973 990

CBPWP

1 000 000

303 000

21 137 349

31 408 990

276 297 349

279 940 990

2012

Equitable share In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community members.

197 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements Revenue replacement grant

2013

2012

Current-year receipts

235 507 000

228 648 000

Conditions met - transferred to revenue

(235 507 000)

(228 648 000

Revenue replacement grant

2013

2012

Current-year receipts

20 137 349

8 132 000

Conditions met - transferred to revenue

(17 460 330)

(8 132 000)

Undefined Difference

(2 677 019)

Department of Water Affairs

To facilitate the planning, acceleration and implementation of various projects that will ensure water supply to communities indentified as not receiving a basic water supply service. CoGTA

2013

2012

Current-year receipts

22 973 990

Conditions met - transferred to revenue

(22 973 990)

CBPWP

2013

2012

Current-year receipts

1 000 000

303 000

Conditions met - transferred to revenue

(1 000 000)

(303 000)

To incentivise provincial departments to expand work creation efforts through labour intensive delivery methods in the following identified focus areas: Govan Mbeki and Mpumalanga Province

2013

2012

Balance unspent at beginning of year

(5 062 510)

Current-year receipts

2 531 255

Conditions met - transferred to receivables

(2 531 255)

2 531 255

This was a tri-party agreement to upgrade infrastracture of a local municipality. Half of the outstanding money has been received at year-end from Govan Mbeki Local Municipality. Municipal infrastructure grant

2013

Current-year receipts

1 250 000

Conditions met - transferred to revenue

(1 250 000)

2012

To provide specific capital finance for basic municipal infrastructure backlogs for poor households, micro enterprises and social institutions servicing poor communities.

Municipal system improvement grant

2013

2012

Current-year receipts

1 000 000

Conditions met - transferred to revenue

(1 000 000)

198 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements To assist municiplities to perform their functions and stabilise institutional and goverance systems as required in the Municipal System Act and related legislation.

Financial management grant

2013

2012

Current-year receipts

1 000 000

1 250 000

Conditions met - transferred to revenue

(1 000 000)

(1 250 000)

To promote and support reforms in financial management by building capacity in municipalities to implement the Municipal Finance Management Act. 21. Rental income Financial management grant

2013

2012

Rental income - third party

2 020 000

505 111

Financial management grant

2013

2012

Income from municipal entities

4 716 141

5 295 316

2013

2012

Car wash

864 900

283 551

Donations received

50 939

LG Seta

309 110

263 616

Refund telephone

166 291

151 062

Retenions forfitted

1 955 537

945 909

Sundry

466 312

135 986

Tender deposits

345 662

211 519

4 158 751

1 991 643

2013

2012

22. Income from municipal entities

23. Other income

24. General expenses

Advertising

687 148

457 185

Assets expensed

148 528

312 294

Auditors remuneration

3 458 882

2 853 512

Bank charges

111 488

80 683

Cleaning

309 446

207 187

Conferences and seminars

16 059

4 715

199 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements 2013

2012

Consulting and professional fees

1 664 158

1 568 596

Entertainment

767 571

750 022

Flowers

3 483

12 142

Forums

3 000

7 815

Hostel charges

200 000

IDP review

820 000

Insurance

866 254

635 276

International relations

155 080

Lease rentals on operating lease

1 484 895

522 588

Municipal and other services

3 512 929

1 936 835

Post retirement expense

30 285

Postage and courier

9 089

9 840

Printing and stationery

702 694

513 815

Realocation cost

1 818 289

Royalties and license fees

1 223 604

76 348

Security (guarding of municipal property)

2 186 439

1 788 010

Subscriptions and membership fees

695 052

530 570

Technical support

568 526

518 365

Telephone and fax

2 318 586

2 317 450

Training

944 225

830 123

Travel - local

3 054 677

2 465 482

Turn-around strategy

150 000

24 936 733

21 572 507

2013

2012

Buildings

187 111

91 672

Contract services

222 715

Fuel and oil

1 195 236

998 495

Furniture and equipment

97 697

21 720

Office equipment

70 994

21 637

Vehicles

733 526

465 511

2 284 564

1 821 750

25. Repairs and maintenance

200 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements

26. Employee-related costs 2013

2012

Basic

40 359 928

31 374 483

Bonus

2 829 828

3 121 638

Medical aid - company contributions

2 065 885

1 244 606

UIF

259 836

193 905

WCA

568 454

236 589

Leave pay provision charge

2 070 558

1 359 579

Group insurance

612 458

595 174

Pension fund

6 676 777

6 257 463

Bargaining council

8 707

5 502

Overtime payments

436 658

147 419

Car allowance

5 903 382

4 106 192

Housing benefits and allowances

228 915

200 854

Uniforms

203 235

960

62 224 621

48 844 364

201 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements Remuneration of municipal manager - Habile CA

2013

2012

Annual remuneration

644 640

677 268

Car allowance

156 042

169 145

Contributions to UIF, medical and pension funds

134 763

195 550

Leave commutation

421 320

935 445

1 463 283

2013

2012

Annual remuneration

681 344

743 865

Car allowance

159 596

172 387

Performance bonuses

87 666

Contributions to UIF, medical and pension funds

11 462

23 165

852 402

1 027 083

2013

2012

Annual remuneration

270 153

641 402

Car allowance

66 305

150 746

Performance bonuses

78 266

Contributions to UIF, medical and pension funds

13 366

37 015

Leave commutation

114 268

464 092

907 429

2013

2012

Annual remuneration

467 676

574 599

Car allowance

136 800

143 650

Performance bonuses

87 666

Contributions to UIF, medical and pension funds

101 617

166 204

Leave commutation

35 066

706 093

1 007 185

2013

2012

Annual remuneration

376 448

531 697

Car allowance

48 000

128 379

Contributions to UIF, medical and pension funds

67 033

131 752

Leave commutation

70 241

491 481

862 069

Remuneration of chief finance officer - Singh AY

Corporate and human resources (corporate services) - Maseko JB

Health, safety and social services (emergency management services) - Vilane SB

Community and social services - Kunene M

202 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements Planning manager - Zikalala S

2013

2012

Annual remuneration

357 240

Car allowance

48 000

Contributions to UIF, medical and pension funds

77 241

482 481

66 156 615

54 111 413

Total employment cost

27. Remuneration of councillors Remuneration of municipal manager - Habile CA

2013

2012

Executive mayor

794 599

602 014

Mayoral committee members

1 805 838

2 305 608

Speaker

648 013

619 086

Councillors

2 588 735

2 001 940

Mayoral committee contributions

1 425 579

1 834 607

Councillor contributions

2 117 113

1 513 096

9 379 877

8 876 351

In-kind benefits The Executive Mayor, Deputy Executive Mayor, Speaker and Mayoral Committee Members are full-time. Each is provided with an office and secretarial support at the cost of the Council. The Mayor and the Deputy Mayor each have the use of separate Council-owned vehicles for official duties. Executive mayor - 2013

Remuneration

Travel allowance

Cellphone allowance

Muncipical contribution

Total remuneration

428 528

193 305

19 908

76 429

718 170

Maboa - Boltman NE

369 005

147 212

19 908

72 631

608 756

Maboea A

339 381

130 100

17 658

50 907

538 046

Magagula MP

384 031

147 216

19 908

57 605

608 760

Nkosi M

369 005

147 216

19 908

72 361

608 490

Nyembe FM

369 005

147 216

19 908

72 631

608 760

Zuma NG

384 031

147 216

19 908

57 605

608 760

Mnisi TA

381 275

147 216

19 908

69 292

617 691

2 595 733

1 013 392

137 106

453 032

4 199 263

Nhlabathi MPP Mayoral commitee - 2013

203 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements Remuneration

Speaker - 2013 Dhlamini ES

Travel allowance

Cellphone allowance

19 908

Muncipical contribution

76 471

Total remuneration

394 608

80 555

571 542

Baker TE

25 840

8 613

34 453

Bongwe JS

4 080

De Ville JR

31 406

10 468

41 874

De W aal MAC

138 586

58 890

12 396

38 068

247 940

Greyling GS

31 406

10 468

41 874

138 586

58 890

12 396

38 068

247 940

Councillors - 2013

Joubert LK Labuschagne PJ

25 840

8 613

34 453

Madonsela EM

31 406

10 468

41 874

Mahlangu BD

25 840

8 613

34 453

Mahlangu H

153 612

58 885

12 396

23 042

247 935

Makola MB

6 460

2 154

8 614

Malatsi PV

4 896

Malaza KJ

1 596

Manzi NE

25 840

8 613

34 453

Masango SA

25 840

8 613

34 453

Masina LL

3 264

Maseko BP

31 406

10 472

41 878

Mkhwanazi LVA

31 406

10 468

41 874

Mkhwanazi ZG

25 840

8 613

34 453

Mlotshwa TL

153 612

58 889

12 396

23 042

247 939

Moloe LE

2 362

Morajane CM

4 896

Motha TW

31 406

10 468

41 874

Motloung KW

138 586

58 885

12 396

38 068

247 935

Mnisi SM

3 951

773

Mtshali BH

4 896

Ndinisa BJ

25 840

8 612

34 452

Nhlapo JV

1 546

6 977

8 523

Mthethwa TB

Nhlapho NS

6 528

Nkosi AD

31 406

10 469

41 875

201 ANNUAL REPORT 2012-2013 204

Notes to the Annual Financial Statements Remuneration

Speaker - 2013 Dhlamini ES

428 528

Travel allowance

193 305

Cell phone allowance

Muncipical contribution

Total remuneration

76 429

718 170

19 908

Councillors - 2013 Nkosi FL

2 362

Nkosi SS

138 586

58 885

12 396

38 068

247 935

Nkosi TM

816

Nkosi VL

31 406

10 469

41 875

Puwani BS

31 406

9 641

41 047

Sekhonde BG

59 601

24 422

3 916

12 289

100 228

Shiba BP

4 080

Shongwe MD

153 612

58 885

12 396

23 042

247 935

Thwala DM

31 406

10 468

41 874

Tshabalala AJ

3 908

Tsotetsi MP

349 609

153 763

19 908

69 721

593 001

Vilakazi RG

31 406

10 469

41 875

Weber WL

138 586

58 885

12 396

37 258

247 125

Wilson RJA

31 406

10 469

41 875

Yende MT

816

Zacarias SM

31 406

10 468

41 874

Zwane LA

104 664

40 121

15 700

160 485

Zwane TE

31 406

10 472

41 878

2 345 434

904 558

122 992

356 366

3 729 350

28. Investment revenue 2013

2012

Interest on investments

4 677 772

3 605 234

Interest charged on trade and other receivables

233 427

Interest received - other

8 366 4 911 199

3 613 600

29. Depreciation

Property, plant and equipment

205 ANNUAL REPORT 2012-2013

2013

2012

16 731 179

11 849 528

Notes to the Annual Financial Statements 30. Impairment of assets 2013 -

Impairments Trade and other receivables

2012 7 841 929

31. Finance costs 2013

2012

Interest on current liabilities

7 738 903

5 345 584

Current borrowings

2 843 328

7 738 903

8 188 912

2013

2012

Fees

3 321 252

2 516 881

Consulting

2 075

85 164

Expenses

135 555

251 467

3 458 882

2 853 512

2013

2012

Information technology services

807 218

689 280

Cleaning and maintenance

1 134 674

1 215 312

1 941 892

1 904 592

2013

2012

Other subsidies

120 387 803

147 945 613

Grants paid to local municipalities

120 387 803

147 945 613

32. Auditorsâ&#x20AC;&#x2122; remuneration

33. Contracted services

34. Grants and subsidies paid

206 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements 35. Cash generated from operations 2013 Surplus adjustments for: depreciation and amortisation

2012

42 272 479

1 554 791

16 731 179

11 849 528

Gain on sale of assets and liabilities

273 395

23 933 221

Fair value adjustments

1 746 052

Impairment deficit

7 841 929

Movements in retirement benefit assets and liabilities

3 504

18 566

Movements in provisions

273 012

951 916

Annual charge for deferred tax

965 457

Receivables from exchange and non-exchange transactions

(208 115)

9 848 595

(Increase)/decrease in other receivables

(11 457 289)

Payables from exchange transactions

(8 821 461)

10 588 912

VAT

399 917

5 416 651

50 923 910

63 258 329

Changes in working capital:

36. Commitments Authorised capital expenditure Already contracted for but not provided for â&#x20AC;˘ Property, plant and equipment

2013

2012

40 046 624

30 113 318

This committed expenditure relates to plant and equipment and will be financed by available bank facilities, retained surpluses, existing cash resources, funds internally generated, etc. 37. Contingencies Litigation is in the process against the municipality relating to a dispute with an employee who alleges that the municipality has dismissed him unfairly and is seeking damages of R 1 052 117. The municipalityâ&#x20AC;&#x2122;s lawyers and management are considering the likelihood of the action against the municipality being successful as unlikely, and the case should be resolved within the next two years. Should the action be successful the municipality will have to pay out the amount claimed of R1 052 117. Inhlakanipho Consultants - Contractual dispute arising out of tender 11/2007: Upgrading of Empulizi Water Treatment Works. Plaintiff is claiming R3 402 596. Federation for Subtainable Enviroment: Civil litigation - application for supply of portable water in Carolina Municipality: R1 000 000. Termination of Eastvaal Financing Partnership: The termination of Eastvaal Financing Partnership that comprises third trust namely, Eastvaal Development Trust, the Eastvaal Financing Trust and The NIB (Nedbank) Trust due to the property

207 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements in Secunda been sold. The deed of sale of the property is already in the deed office. The legal cost that will be incurred will not exceed R20 000 for the completion of the sale of the asset. Grant Thornton and Tri-Partite Agreements for the design and implemention of the turnaround strategy. Fees and charges to finalise these agreements will not exceed R17 000. 38. Related parties Relationships Accounting Officer: Refer to accounting officerâ&#x20AC;&#x2122;s report Associates Eastvaal Financing Partnership Eastvaal Development Trust. Close family member of key management Highveld Printer. Related party transactions

2013

2012

Purchases from related parties Highveld Printers

4 670

79 622

Eastvaal Development Trust

5 278 542

4 857 548

Eastvaal Financing Partnership

199 159

484 500

Distructions from/(to) entities

39. Prior period errors 1. VAT Adjusment Sars made a VAT adjusment on the VAT statement of the account for input VAT for the VAT period that was not correctly recorded in the Annual Financial Statement of 2010. 2. Absa loan interest and current account Interest on the Absa loan: wrongly accrual in the prior years, and change in interest rate that was not followed up with the third party. 3. Fairvalue adjustment Fairvalue on retentions was written back. The fairvalue adjustments on retentions was both in the annual financial statement of 2011 and 2012. GRAP 104 disallowed the fairvalue of line items. The prior year has been amended to account for this error. The correction of the errors/change in accounting policies resulted in adjustments as follows:

2013

2012

VAT receivable

7 160

Absa bank loan

36 262

Cash and cash equivalants

1 297

Statement of financial position

40. Changes in accounting policy The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice on a basis consistent with the prior year except for the adoption of the following new or revised standards. All changes resulting from the application of these Standards of GRAP were accounted for retrospectively. â&#x20AC;˘ GRAP 104

208 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements GRAP 104 During the year, the municipality changed its accounting policy with respect to the treatment of the discounting of the trade and other payables. In order to conform with the benchmark treatment in of GRAP104 – AG87. The aggregate effect of the changes in accounting policy on the annual financial statements for the year ended 30 June 2013 is as follows: Statement of financial position

2013

2012

Trade and other payables

58 334 812

(58 334 812)

Adjustment

(3 867 551)

3 867 551

Total current liabilities

Current liabilities

41. Risk management Liquidity risk The municipality’s risk to liquidity is a result of the funds available to cover future commitments. The municipality manages liquidity risk through an ongoing review of future commitments and credit facilities. Cash flow forecasts are prepared and the adequate utilisation of borrowing facilities are monitored. Management ratio’s are also prepared and monitored on a monthly basis. Credit risk Credit risk consists mainly of cash deposits, cash equivalents and receivables. The municipality only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. The risk relating to investments is minimised due to the nature of the municipal entities finance structure. Market risk Interest rate risk As the municipality has no significant interest-bearing assets, the municipality’s revenue and operating cash flows are substantially independent of changes in market interest rates. 42. Events after the reporting date Management is not aware of any events after the reporting dates. 43. Unauthorised expenditure 2013

2012

Unauthorised expenditure

5 280 101

Transfer of vehicles

23 935 874

29 215 975

This amount relates to the Nedbank Structured loan. This amount was not provided for in the budget, however on the consolidation this amount will be eliminated and hence there is no financial impact. Loss on construction vehicles that were transferred to the local municipalities. Due to the timing of the council resolution, it was not possible to include this item in the adjustment budget of 2011-2012. Refer to council item C37/12/2011.

209 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements 44. Irregular expenditure 2013

2012

Opening balance

4 432 180

58 000

Add: Irregular Expenditure - current year - Absa (fully recovered in 2012-2013)

2 385 735

Add: Irregular - current year - other

1 940 622

Less: Amounts recoverable

(4 374 180)

Add: Amounts noted by council

47 823

58 000

4 432 180

Contributions to organised local government

2013

2012

Current year subscription/fee

663 480

502 875

Amount paid - current year

(663 480)

(502 875)

45. Additional disclosure in terms of Municipal Finance Management Act

Audit fees

2013

2012

Current year subscription/fee

3 341 260

2 853 512

Amount paid - current year

(3 341 260)

(2 853 512)

PAYE and UIF

2013

2012

Current year subscription/fee

11 870 465

9 931 694

Amount paid - current year

(11 870 465)

(9 931 694)

Pension and medical aid deductions

2013

2012

Current year subscription / fee

14 654 734

13 545 773

Amount paid - current year

(14 654 734)

(13 545 773)

VAT

2013

2012

VAT receivable

7 607 181

8 007 098

VAT output payable and VAT input receivable are shown in note 11. All VAT returns have been submitted by the due date throughout the year.

210 ANNUAL REPORT 2012-2013

Notes to the Annual Financial Statements Supply chain management regulations In terms of section 36 of the Municipal Supply Chain Management Regulations any deviation from the Supply Chain Management Policy needs to be approved/condoned by the City Manager and noted by Council. The expenses incurred as listed hereunder have been condoned. 46. Actual operating expenditure versus budgeted operating expenditure Refer to Appendix A for the comparison of actual operating expenditure versus budgeted expenditure. 47. Actual capital expenditure versus budgeted capital expenditure Refer to Appendix B for the comparison of actual capital expenditure versus budgeted expenditure. 48. Deviation from supply chain management regulations Paragraph 12(1)(d)(i) of Government Gazette No. 27636 issued on 30 May 2005 states that a supply chain management policy must provide for the procurement of goods and services by way of a competitive bidding process. Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement process in certain circumstances, provided that he records the reasons for any deviations and reports them in the next meeting and includes a note for the annual financial statements.

211 ANNUAL REPORT 2012-2013

22 822 309 1 718 597 24 540 906 25 872 940

Bonds

Other loans

Lease liability

Eastvaal financing partnership

Nashua Highveld

Annuity loans

212 ANNUAL REPORT 2012-2013 -

87 670

24 540 906 25 872 940

50 413 846

Lease liability

Annuity loans

Government loans Total external loans 87 670

Development Bank of South Africa

87 670

Funding facility

Structured loans

Absa bank

87 670

Received during the period

Redeemable Balance at 30 June 2012

Loan Stock

Loan number

Schedule of external loans as at 30 June 2013

7 217 739

6 678 380

539 359

6 678 380

539 359

Redeemed written off during the period

43 283 777

19 194 560

24 089 217

19 194 560

24 089 217

1 179 238

22 909 979

Balance at 30 June 2013

1 125 740

Carrying Value of Property, Plant & Equip

Other Costs in accordance with the MFMA

Appendix A

213 ANNUAL REPORT 2012-2013

General vehicles

Mayoral necklace

Electrical network equipment

Roads, pavements and bridges

Buildings

Building fixtures

Land

8 312 978

(901 674)

154 250

9 374 510

(3 593 837)

Specialised vehicles Other assets

154 250

Heritage assets

(1 407 363)

(1 407 006)

(357)

(14 243 610)

(11 029 726)

Community Assets

27 007 008

23 558 401

154 250

1 963 206

33 035

26 973 973

33 035

23 525 366

3 448 607

(3 213 884)

Infrastructure

305 188 358

5 370 633

360 000

299 817 725

3 448 607

Opening Balance

Land and buildings

Closing Balance

275 382 442

Other changes, movements

4 956 308

Revaluations

270 426 134

Transfers

29 445 916

Disposals

414 325

Additions

29 031 591

360 000

Opening Balance

Cost/Revaluation

Analysis of property, plant and equipment as at 30 June 2013

266 154

Disposals

(1 306 547)

(1 175 816)

(130 731)

Transfers

(1 115 419)

(11 829 626)

(8 924 593)

(2 905 033)

Depreciation

Impairment loss

Accumulated depreciation

(4 443 102)

(2 713 910)

(2 582 822

(131 088)

(26 073 236)

(19 954 319)

(6 118 917)

Closing Balance

4 931 408

154 250

24 293 098

20 975 579

3 317 519

279 115 122

255 428 123

23 326 999

360 000

Carrying value

Appendix B

14 523 372

4 101 870

14 797 388

45 439 027

Construction vehicles

Non-current assets held for sale

214 ANNUAL REPORT 2012-2013

33 035

26 973 973

154 250

Infrastructure

Heritage assets

5 370 633

299 817 725

Land and buildings

9 617 276

1 088 245

Work in progress

1 135 615

53 150

1 734 136

19 989

1 761 398

2 524 581

4 230 677

7 216 902

1 404 988

Additions

Office Equipment Leased

Office Equipment

Furniture & Fittings

Computer Equipment

Plant & equipment

Opening Balance

(901 674)

Disposals

Transfers

Revaluations

Cost/Revaluation

59 060 725

14 797 388

4 101 870

10 705 521

1 761 398

3 660 196

4 283 827

8 951 038

1 424 977

(4 843 290)

(1 457 559)

154 250

27 007 008

305 188 358

(48 928)

(1 338 234)

(688 193)

(5 234 840)

(295 280)

Opening Balance

(17 500 161)

Specialised vehicles Other assets

Closing Balance

(1 407 363)

(14 243 610)

Total property plant and equipment

Other changes, movements

Analysis of property, plant and equipment as at 30 June 2013

266 154

Disposals

(1 306 547)

Transfers

(11 829 626)

(3 710 994)

(273 210)

(586 731)

(435 830)

(411 163)

(747 841)

(140 800)

Depreciation

Impairment loss

Accumulated depreciation

(2 713 910)

(26 073 236)

(20 945 001)

(4 843 290)

(1 730 769)

(635 659)

(1 774 064)

(1 099 356)

(5 982 681)

(436 080)

Closing Balance

154 250

24 293 098

279 115 122

38 115 724

9 954 098

2 371 101

10 705 521

1 125 739

1 886 132

3 184 471

2 968 357

988 897

Carrying value

Appendix B

215 ANNUAL REPORT 2012-2013

Roads, pavements and bridges

2 392 512

22 208 532

254 793 024

4 959 741

17 248 791

24 071 849

Buildings (Separate for 230 361 175 AFS purposes)

Building fixtures

372 384 975

360 000

19 927 040

45 439 027

Other assets

Land (Separate for AFS purposes)

14 523 372

154 250

Heritage assets

26 973 973

33 035

5 370 633

19 927 040

372 384 975

299 817 725

14 523 372

45 439 027

Infrastructure

Land and buildings

Other assets

Additions

Opening Balance

(901 674)

Disposals

411 178

22 816 167

Transfers

Revaluations

Cost/Revaluation

391 410 341

59 060 725

Closing Balance

(33 151 134)

(17 500 161)

Opening Balance

2 803 690

Infrastructure

299 817 723

270 426 133

29 031 590

360 000

Land and buildings

391 410 341

59 060 725

154 250

27 007 008

305 188 358

(4 108 680)

(3 304 087)

(804 593)

(33 151 134)

(17 500 161)

(1 407 363)

(14 243 610)

Agricultural/Biological assets Intangible assets Investment properties Total

Other changes, movements

Analysis of property, plant and equipment as at 30 June 2013

266 154

Disposals

(1 306 547)

Transfers

(357)

(15 540 620)

(3 710 994)

(11 829 626)

(15 540 620)

(3 710 994)

Depreciation

(10 134 928)

(7 725 638)

(2 409 290)

Impairment loss

Accumulated depreciation

(357)

(14 243 608)

(11 029 725)

(3 213 883)

(49 732 147)

(20 945 001)

(2 713 910)

(26 073 236)

(49 732 147)

(20 945 001)

Closing Balance

2 803 333

285 574 115

259 396 408

25 817 707

360 000

341 678 194

38 115 724

154 250

24 293 098

279 115 122

341 678 194

38 115 724

Carrying value

Appendix B

216 ANNUAL REPORT 2012-2013

22 816 167

35 697 268

Work in progress

Construction vehicles

2 335 931

Office Equipment

Office Equipment Leased

2 996 778

6 464 345

Computer Equipment

Furniture & Fittings

1 404 988

1 088 245

1 761 398

188 650

1 233 899

767 306

2 647 528

29 800

124 450

6 733 155

29 800

4 837 416

21 080 462

124 450

2 444 904

Additions

21 080 462

Plant & equipment

General vehicles

Mayoral necklace

Electrical network equipment

Opening Balance

(31 595 398)

(14 749)

(1 067 705)

Disposals

(22 816 167)

1 519 311

1 108 133

Transfers

Revaluations

Cost/Revaluation

Other changes, movements

Analysis of property, plant and equipment as at 30 June 2013

Opening Balance

(352 303)

4 101 870

1 088 245

1 761 398

2 524 581

4 230 677

7 216 902

1 404 988

8 312 978

(9 056 702)

(959 108)

(335 342)

(4 775 083)

(154 468)

(3 365 570)

Specialised vehicles Other assets

154 250

Community Assets Heritage Assets

27 437 189

24 633 499

Infrastructure

Closing Balance

7 878 908

5 331

678 878

Disposals

Transfers

(1 055 060)

(1 054 703)

Depreciation

(279 765)

(48 928)

(385 121)

(357 129)

(534 279)

(140 812)

(943 667)

Impairment loss

Accumulated depreciation

(1 457 559)

(48 928)

(1 344 229)

(692 471)

(5 304 031)

(295 280)

(3 630 359)

(1 407 363)

(1 407 006)

Closing Balance

2 644 311

1 088 245

1 712 470

1 180 352

3 538 206

1 912 871

1 109 708

4 682 619

154 250

26 029 826

23 226 493

Carrying value

Appendix B

217 ANNUAL REPORT 2012-2013

254 793 024

21 080 462

124 450

Infrastructure

Heritage assets

29 800

4 837 416

22 208 532

36 312 363

370 346 723

Land and buildings

9 236 615

29 800

4 837 416

94 348 787

124 450

Heritage assets

Other assets

21 080 462

Infrastructure

22 208 532

9 236 615

94 348 787

254 793 024

1 549 589

Additions

15 900 155

Land and buildings

Non-current assets held for sale

Opening Balance

(33 780 619)

(1 102 767)

Disposals

1 519 311

22 816 167

1 519 311

(22 816 167)

1 519 311

22 816 167

(22 816 167)

Transfers

Revaluations

Cost/Revaluation

Opening Balance

(24 240 129)

(5 593 856)

374 397 778

46 988 616

154 250

27 437 189

299 817 723

(28 701 112)

(24 240 129)

(352 303)

(4 108 680)

Total property plant and equipment

46 988 616

16 346 977

Specialised vehicles Other assets

Closing Balance

154 250

27 437 189

299 817 723

(352 303)

(4 108 680)

9 313 683

750 566

Disposals

Agricultural/Biological assets Intangible assets Investment properties total

Other changes, movements

Analysis of property, plant and equipment as at 30 June 2013

Transfers

(1 055 060)

Depreciation

(17 616 147)

(1 407 363)

(14 243 608)

(17 616 147)

(4 843 290)

Closing Balance

(10 134 928)

(1 407 363)

(14 243 608)

(12 824 629) (33 267 118)

(2 689 701)

(10 134 928)

(2 689 701)

Impairment loss

Accumulated depreciation

154 250

26 029 826

285 574 115

341 130 660

29 372 469

154 250

26 029 826

285 574 115

29 372 469

11 503 687

Carrying value

Appendix B

218 ANNUAL REPORT 2012-2013

Municipality

Development/ Plan

Planning and Development/ Economic

Finance & Admin/Finance

Executive & Council/Mayor & Council

Other assets

10 210 975

373 934 563

1 896 267

6 334 100

1 980 608

36 312 363

9 236 615

Additions

373 934 563

2 527 615

63 958 124

307 448 824

370 346 723

94 348 787

Opening Balance

(901 673)

(33 780 619)

Disposals

1 519 311

(22 816 167)

Transfers

Revaluations

Cost/Revaluation

Closing Balance

Opening Balance Disposals

(28 701 112)

(24 240 129)

(33 267 117)

(1 165 444)

(11 177 825)

(20 923 848)

383 243 865

(33 267 117)

Total

383 243 865

4 423 882

70 292 224

308 527 759

Municipality

374 397 778

46 988 616

266 153

9 313 683

Agricultural/Biological assets Intangible assets Investment properties total

Other changes, movements

Segmental analysis of property, plant and equipment as at 30 June 2013

Transfers

(15 687 049)

(503 956)

(2 678 166)

(12 504 927)

(1 055 060)

Depreciation

(12 824 629)

(2 689 701)

Impairment loss

Accumulated depreciation

(48 688 013)

(1 669 400)

(13 855 991)

(33 162 622)

(33 267 118)

(17 616 147)

Closing Balance

334 555 852

2 754 482

56 436 233

275 365 137

341 130 660

29 372 469

Carrying value

Appendix C

296 126 752

4 158 752

4 911 198

292 103 440

Other income

Interest received

219 ANNUAL REPORT 2012-2013

(16 731 179)

Depreciation

(28 209 700)

(332 818 335)

(120 387 803)

(24 936 734)

(249 557 566)

Grants and subsidies paid

General Expenses

(194 386 583)

(1 982 300)

(1 941 892)

Contracted Services

(2 394 730)

(2 284 564)

(7 739 442)

(16 816 510)

(9 635 460)

(71 653 610)

1 510 242

Repairs and maintenance - General

Finance costs

(7 738 903)

(9 379 877)

Remuneration of councillors

Impairments

(66 156 614)

Personnel

Expenses

3 792 000

4 716 141

Income from entities

1 683 340

2 020 000

Rental income

289 141 170

Current year 2012 Adjusted budget

276 297 349

Current year 2012 Act. Bal.

Goverment grant & subsidies

Revenue Variance

83 260 769

3 272 966

73 998 780

40 408

110 166

539

85 331

255 583

5 496 996

(4 023 312)

1 119 198

2 648 510

4 716 141

336 660

(12 843 821)

Actual versus Budget (Revenue and Expenditure) for the year ended 30 June 2013

(25.0)

(11.6)

(38.1)

(2.0)

(4.6)

(0.5)

(2.7)

(7.7)

(1.4)

29.5

175.4

20.0

(4.4)

VAR

Explanation of Significant Variances greater than 10% versus Budget

Appendix E

42 272 479

Additions

15 020 943

4 906 096

19 927 039

Municipality

Executive & Council/Mayor and Council

220 ANNUAL REPORT 2012-2013

Finance & Admin/Finance

Municipal Owned Entities Other charges

27 500 000

7 000 000

20 500 000

Revised Budget

(36 985 983)

(294 400)

Current year 2012 Adjusted budget

Budget Analysis of Capital Expenditure as at 30 June 2013

Net surplus/ (deficit) for the year

(273 395)

Gain or loss on disposal of assets and liabilities

Fair value adjustments

Current year 2012 Act. Bal.

Other revenue and costs

Variance

79 258 462

21 005

Variance

7 572 961

2 093 904

5 479 057

Actual versus Budget (Revenue and Expenditure) for the year ended 30 June 2013

Variance

(214.3)

(7.1)

VAR

Disaster centre in Albert Luthuli is still underway.

Construction on phase 2 of main building underway.

Explanation of significant variances from budget

Explanation of Significant Variances greater than 10% versus Budget

Appendix E

221 ANNUAL REPORT 2012-2013 Total

Sept

Dec

March

June

Total

Closing

Opening

CBPW P

DW AF

TOTAL GRANTS

Subsidies

Mpumalanga Province

TOTAL SUBSIDIES

TOTAL GRANTS AND

107 029 000

Sept

107 029 000

400 000

99 834 405

85 733 000

Dec

85 733 000

430 000

78 245 595

1 000 000

72 157 874

March

72 157 874

8 759 874

170 000

57 427 000

5 801 000

11 377 475

June

11 377 475

276 297 349

Total

276 297 349

20 137 349

1 000 000

235 507 000

1 000 000

1 250 000

17 403 000

39 398 264

Sept

39 398 264

612 511

248 667

32 278 615

269 400

444 476

5 544 595

54 268 298

Dec

54 268 298

180 000

47 632 120

85 655

313 118

6 057 405

41 783 892

March

41 783 892

247 287

35 375 510

67 091

293 004

5 801 000

138 169 876

June

138 169 876

16 847 819

324 046

120 220 755

577 854

199 402

273 620 330

Total

273 620 330

17 460 330

1 000 000

235 507 000

1 000 000

1 250 000

17 403 000

Closing

2 677 018.50

2 677 019

8 031 056

5 354 037

June 2013

Revenue Replacement Gr

6 057 405

July 2012

FMG Grant

1 250 000

5 544 595

balance 30

balance 1

MSIG Grant

SUBSIDIES

June June 2013

March

July 2012

Dec

Quarterly Expenditure

balance 30

Sept

Quarterly Receipts

balance 1

Opening

Equitable share

Grants

and Subsidies

Name of Grants

GRANTS AND SUBSIDIES CONTRIBUTED / RECEIVED

DISCLOSURE OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF MFMA, 56 OF 2003

olding of funds

delayed/with held

2 531 255

2013

Sub Note 1

N/A

delay/withh

subsidies

2013

Reason for

Grants and

Yes

Yes/No

Yes

Yes / No

Division of Revenue Act

framework in the latest

conditions in terms of grant

comply with the grant

Did your municipality

N/A

2013

N/A

2013

compliance

Reason for non-

Appendix F

222 ANNUAL REPORT 2012-2013