MERAFONG CITY LOCAL MUNICIPALITY

MERAFONG CITY LOCAL MUNICIPALITY

CONTENTS

CONTENTS .......................................................................................................................................................... 2

REVISED ANNUAL REPORT TEMPLATE ..................................................................................................... 7

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY .................................................... 8

COMPONENT A: MAYOR’S FOREWORD ..................................................................................................... 8

COMPONENT B: EXECUTIVE SUMMARY .................................................................................................. 12

1.1. MUNICIPAL MANAGER’S OVERVIEW ........................................................................................ 12

1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ................ 14

1.3. SERVICE DELIVERY OVERVIEW ................................................................................................ 23

1.4. FINANCIAL HEALTH OVERVIEW ................................................................................................. 26

1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW .................................................................... 30

1.6. AUDITOR GENERAL REPORT ..................................................................................................... 30

1.7. STATUTORY ANNUAL REPORT PROCESS ............................................................................. 31

CHAPTER 2 – GOVERNANCE ....................................................................................................................... 33

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ............................................... 34

2.1 POLITICAL GOVERNANCE ........................................................................................................... 34

2.2 ADMINISTRATIVE GOVERNANCE .............................................................................................. 39

COMPONENT B: INTERGOVERNMENTAL RELATIONS ......................................................................... 43

2.3 INTERGOVERNMENTAL RELATIONS ........................................................................................ 43

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ................................................... 54

2.4 PUBLIC MEETINGS ......................................................................................................................... 55

2.5 IDP PARTICIPATION AND ALIGNMENT ..................................................................................... 61

COMPONENT D: CORPORATE GOVERNANCE ....................................................................................... 61

2.6 RISK MANAGEMENT ...................................................................................................................... 62

2.7 ANTI-CORRUPTION AND FRAUD ................................................................................................ 64

2.8 SUPPLY CHAIN MANAGEMENT .................................................................................................. 65

2.9 BY-LAWS ........................................................................................................................................... 66

2.10 WEBSITES ........................................................................................................................................ 67

2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES .............................................................. 68

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CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) ........... 71

COMPONENT A: BASIC SERVICES ............................................................................................................. 71

3.1. WATER PROVISION ....................................................................................................................... 73

3.2 WASTE WATER (SANITATION) PROVISION ............................................................................. 82

3.3 ELECTRICITY ................................................................................................................................... 88

3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS,

WASTE DISPOSAL, STREET CLEANING AND RECYCLING) ................................................................ 96

3.5 HOUSING ........................................................................................................................................ 102

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT ............................................................ 108

COMPONENT B: ROAD TRANSPORT ....................................................................................................... 111

3.7 ROADS ............................................................................................................................................. 111

3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION) ........... 116

3.9 WASTE WATER (STORMWATER DRAINAGE) ....................................................................... 122

COMPONENT C: PLANNING AND DEVELOPMENT ............................................................................... 128

3.10 PLANNING ....................................................................................................................................... 129

3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)

136

COMPONENT D: COMMUNITY & SOCIAL SERVICES ........................................................................... 140

3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES; OTHER

(THEATRES, ZOOS, ETC) ............................................................................................................................ 141

3.13 CEMETORIES AND CREMATORIUMS ..................................................................................... 148

3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES .......................................................... 152

COMPONENT E: ENVIRONMENTAL PROTECTION ............................................................................... 156

3.15 POLLUTION CONTROL ................................................................................................................ 156

3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG. COASTAL

PROTECTION) ................................................................................................................................................ 160

COMPONENT F: HEALTH ............................................................................................................................. 165

3.17 CLINICS ........................................................................................................................................... 165

3.18 AMBULANCE SERVICES ............................................................................................................. 166

3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION; ETC . 167

COMPONENT G: SECURITY AND SAFETY ............................................................................................. 168

3.20 POLICE ............................................................................................................................................ 169

3.21 FIRE .................................................................................................................................................. 172

3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL

OF PUBLIC NUISANCES AND OTHER) ..................................................................................................... 174

COMPONENT H: SPORT AND RECREATION ......................................................................................... 175

3.23 SPORT AND RECREATION ......................................................................................................... 176

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES ..................................... 180

3.24 EXECUTIVE AND COUNCIL ........................................................................................................ 180

3.25 FINANCIAL SERVICES ................................................................................................................. 182

3.26 HUMAN RESOURCE SERVICES................................................................................................ 186

3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ...................... 190

3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES .............. 193

COMPONENT J: MISCELLANEOUS ........................................................................................................... 200

COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD ................................................. 200

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE ............................................... 202

(PERFORMANCE REPORT PART II) .......................................................................................................... 202

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL .............................................. 203

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES........................................................... 203

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ........................................................... 205

4.2 POLICIES ......................................................................................................................................... 206

4.3 INJURIES, SICKNESS AND SUSPENSIONS ........................................................................... 207

4.4 PERFORMANCE REWARDS ....................................................................................................... 211

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ................................................... 212

4.5 SKILLS DEVELOPMENT AND TRAINING ................................................................................. 213

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE .................................................... 216

4.6 EMPLOYEE EXPENDITURE ........................................................................................................ 216

CHAPTER 5 – FINANCIAL PERFORMANCE ............................................................................................ 219

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ..................................................... 220

5.1 STATEMENTS OF FINANCIAL PERFORMANCE .................................................................... 223

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5.3 ASSET MANAGEMENT ................................................................................................................ 228

5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS .............................. 232

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ................................................................. 239

5.5 CAPITAL EXPENDITURE ............................................................................................................. 240

5.6 SOURCES OF FINANCE .............................................................................................................. 241

5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS ................................................................ 242

5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW ............................. 243

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ................................................ 246

5.9 CASH FLOW ................................................................................................................................... 247

5.10 BORROWING AND INVESTMENTS ........................................................................................... 248

5.11 PUBLIC PRIVATE PARTNERSHIPS .......................................................................................... 253

COMPONENT D: OTHER FINANCIAL MATTERS .................................................................................... 254

5.12 SUPPLY CHAIN MANAGEMENT ................................................................................................ 254

5.13 GRAP COMPLIANCE .................................................................................................................... 254

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS .......................................................................... 255

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS Year -1 .............. 255

6.1 AUDITOR GENERAL REPORTS Year -1 (Previous year) ................................................................. 255

COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (CURRENT YEAR) .................................. 256

6.2 AUDITOR GENERAL REPORT YEAR 2018/2019 .............................................................................. 256

GLOSSARY ...................................................................................................................................................... 258

APPENDICES .................................................................................................................................................. 261

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE ...... 261

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES ........................................................... 264

APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE .............................................................. 265

APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY ................................................................... 266

APPENDIX E – WARD REPORTING ........................................................................................................... 267

APPENDIX F – WARD INFORMATION ....................................................................................................... 274

APPENDIX G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE YEAR 2018/2019

............................................................................................................................................................................ 275

APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS ................... 277

APPENDIX I – MUNICIPAL ENTITY/ SERVICE PROVIDER PERFORMANCE SCHEDULE ............ 278

APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS ................................................................ 279

APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE ............... 281

APPENDIX K (i): REVENUE COLLECTION PERFORMANCE BY VOTE ............................................. 281

APPENDIX K (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE ...................................... 282

APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG ............................................. 283

APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES ......... 291

APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME ..................................... 291

APPENDIX M (ii): CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME ..................... 293

APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 0 .......................................................... 295

APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 0 ...................................... 296

APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS ...................... 298

APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER

SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION .................................. 299

APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY .......... 300

APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT ............ 301

VOLUME II: ANNUAL FINANCIAL STATEMENTS .................................................................................... 302

Municipality | REVISED ANNUAL REPORT TEMPLATE 7

REVISED ANNUAL REPORT TEMPLATE

The purpose of this revised Annual Report template is to address the need expressed by a number of

municipalities for assistance in the preparation and development of improved content and quality of

Municipal Annual Reports. This template provides an update to the MFMA Circular No. 11, issued in

January 2005.

This template gives effect to the legal framework requirement, concepts and principals espoused in the

White Paper on Local Government and Improving Government Performance. It reflects the ethos of

public accountability. The content gives effect to information required for better monitoring and

evaluation of government programmes in support of policy decision making. The template provides an

improved overview of municipal affairs by combining the performance report data required under

Municipal Systems Act Section 46 with annual report data referred to in that Act and in the MFMA.

The revised template makes its contribution by forging linkages with the Integrated Development Plan,

Service Delivery and Budget Implementation Plan, Budget Reforms, In-year Reports, Annual Financial

Statements and Performance Management information in municipalities. This coverage and coherence

is achieved by the use of interlocking processes and formats.

The revised template relates to the Medium Term Strategic Framework particularly through the IDP

strategic objectives; cross cutting nature of services offered by different spheres of government,

municipal service outcome indicators; and the contextual material as set out in Chapters 3, 4 & 5. It

also provides information on good management practice in Chapter 4; risk management in Chapter 2;

and Supply Chain Management in Chapter 5; and addresses the Auditor-General’s Report, dealing

with Financial and Performance Management arrangements in Chapter 6. This opens up greater

possibilities for financial and non-financial comparisons between municipalities and improved value for

money.

The revised template provides information on probity, including: anti-corruption strategies; disclosure

of financial interests by officials and councillors; disclosure of grants by external parties, disclosure of

loans and grants by municipalities. The appendices talk to greater detail including disaggregated

information on municipal wards, among others. Notes are included throughout the format to assist the

compiler to understand the various information requirements.

The financial years contained in this template are explained as follows:

Year -1: The previous financial year;

Year 0: The financial year of reporting;

Year 1: The following year, mostly requires future targets; and

The other financial years will follow a similar sequence as explained above.

We wish to express our gratitude to the members of the Annual Report Reference Group, consisting of

national, provincial and municipal officials for their inputs and support throughout the development of

this document.

MFMA Implementation Unit, National Treasury July 2012

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

COMPONENT A: MAYOR’S FOREWORD

MAYOR’S FOREWORD

a) Vision

As guided by our vision to provide quality services to our community through accountable governance remains our guiding tool towards delivering of quality services that is responsive to the demands and challenges of the community. In this year of reporting, the municipality under strenuous financial conditions was able to continue on a positive trajectory to provide quality service delivery to our community through promoting economic transformation; job creation; improved skills; improved spatial integration, human settlements; advancing social cohesion and have safer communities, and provide reliable and quality basic services This 2018/19 Annual report is prepared within a legislative context such as Section 46 of the Local Government: Municipal System Act No. 32 of 2000 and Section 121 and 127(2) of the Local Government and Municipal Finance Management Act No.56 of 2003 which propels us to be an accountable and transparent organization in reflecting our obligation on service delivery and developmental achievements and challenges. This report is postulated from the back drop of the 25thyears review of our democracy within the context of the electoral mandate received to translate the Manifesto mandate which is our contract with the people into a concrete programme for implementation and acceleration of transformation of society and move faster to build a better life for all, by decisively tackling unemployment, poverty and inequality. To continue with the revolutionary program of extending basic services to our communities through access to electricity to households, access to water, sanitation and refuse removal, increased support for SMMEs, building and upgrading roads and social infrastructure in disadvantaged areas where the majority live and importantly transforming the economy and create Jobs During the year under review, the municipality has received an unqualified audit opinion from the Auditor-General which means that the financial statements present fairly the results of the municipality’s operations and its financial position according to generally accepted accounting principles and that there are no material mis-statements; even though we are in right financial trajectory where the municipality has improved a lot on its financial statements and that there is reasonable assurance of financial statements, however there is still non-compliance on legislation like irregular expenditure and fruitless expenditure therefore we working hard in addressing non-compliance and transgressions. b) Key Policy Developments: Merafong Local Municipality has been under severe financial challenges in the form of serious revenue shortages and cash flow problems which impacted negatively on its financial sustainability and delivery of basic services as a result of water & electricity meter tempering and a poor debt collection, therefore it is within this reasons that Merafong was placed under section 154 as to that the national government and provincial governments through legislative and other measures to support and strengthen the capacity of municipalities to manage its own affairs and to exercise their powers and to perform their functions.

Municipality | CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY 9

Due to financial constrains faced by the municipality, we developed a Financial Turnaround Priority plan to address challenges of unaccounted water losses, inaccurate billing, poor maintenance on municipal reservoirs, and bulk water line and old asbestos pipes, leaking residential and business water meters add to water losses including low payment levels c) Key Service Delivery Improvements

The municipality has experienced high water loss due to leaking old pipes, dolomitic situation, illegal

connections, illegal mining activities, damaging water infrastructure, poor maintenance over many

years causing overflowing, and nonfunctional pump station and leaks on households; hence this

prompted the development and adoption of a Water turnaround strategy to address these challenges,

the following were achieved

Proper maintenance plans were developed and are continuously monitored

There are continuous efforts to improve the billing system to be accurate towards reduction of

unaccounted water

A community outreach programme is ongoing through ward councilors engaging the

community to facilitate the opening of accounts.

Management of indigent households consumption to 6kl per month resulting in reduction in

losses and increased debtors

Implementation of water meter leaks and repairs program then after restriction devices can be

installed to reduce water leaks

And have Prioritized installation of stand pipes in areas where illegal mining activities are

frequently damaging infrastructure and also with continuous engagement with SAPS.

Integrated Development Plan was successfully reviewed and aligned with the municipal

budget as well as the SDBIP.

d) Public Participation

Section 152(1)(a) of the Constitution provides that the objects of the local government are to

encourage the involvement of communities and community organisations in the matters of local

government; also with Section 28 of the Municipal System Act, Act 32 of 2000 requires that each

Municipal Council adopts a process plan that would guide the planning, drafting, adoption and review

of the IDP, Budget and Performance; as guided by these legislative tools, during the month of May

2019 a ward based public participation programme was implemented in consultation of municipal IDP

and budget to the community

Also under the year under review, Nthirisano outreach programme was implemented in collaboration

with the district municipality as a platform that is aimed at providing a platform for government creating

access to service delivery and engage with residents to help them resolve their challenges

e) Future Actions

We are making all strides towards mitigating risks; improvements of our billing systems;

improvement of our water infrastructure and enhanced municipal financial management which all

culminated in us receiving an unqualified Audit Opinion from the Auditor-General.

We will continuously implement and review our Revenue Collection and water Strategies in a manner

that builds confidence of residents and the improvement of municipal finances

The people of Merafong expect the municipality to provide uninterrupted water and electricity services;

therefore we intend to continuously engage our communities to pay municipal services which require

full cooperation of our residents.

We also have not departed from our deliberate efforts to actively intervene on the plight faced by local

small businesses through ring-fencing 30% of total procurement to Merafong-based companies which

will increase participation of local businesses in the economy.

The municipality is concerned about the safety of the community residing on dolomitic and unsafe

land, we intend to identify land for resettlement of informal and portions of formal area.

f) Agreements / Partnerships: Announcements on special partnerships initiated.

The municipality and Rand water has entered into a memorandum of understanding towards

addressing of water losses, maintenance plans, including water loss management programmes with

special focus on leaking residential and business water meters add to water losses.

Also we have entered into partnership with Cogta towards funding initiative through MISA funds to

establish mitigation measures to overcome the challenges faced due to the interruption of power

supply, illegal connections and poor maintenance of station to overcome damages and losses suffered

by the municipality as a result of the power cuts.

g) Conclusion: Final thoughts on the year.

In conclusion, firstly I wish to extend my unwavering gratitude to the Mayoral Committee, councilors

and all council committees for providing political oversight and playing an active role respectively, my

appreciation all to the Management team and Staff members, I appreciate the unwavering support to

the cause of sound public governance. Let us all work together towards building a better society.

The year under review has never been easy given challenges we encountered, however we should

remain committed to push back the frontiers of poverty and expand access to a better life for all. Lastly

I also thank community members who provide positive feedback including constructive criticism on

how the municipality can work better and differently, they do this because they want public

representatives with integrity, who work hard and who do not place their personal interests above

those of the people they are elected to serve towards creation of a city that is truly united and non-

racial in which all our people can belong.


a. Vision:

A succinct narrative on the direction of travel, key strategic objectives and the major changes that are

being addressed. This is the most important single statement in the Annual Report.

b. Key Policy Developments:

This is based on Strategic alignment to the Provincial Growth and Development Strategy, and the IDP

strategies included in the IDP especially with focus on impact and outcome achieved – bearing in mind

that foreword provides details that should be included in the chapters to follow.

c. Key Service Delivery Improvements:

Comment on the major successes of the year included and provide an indication of challenges

overcome.

d. Public Participation:

Methods and/or processes used to increase public awareness on service availability engage public in

decision making and improve accountability to communities.

e. Future Actions:

Initiatives committed whereby service delivery will be improved over the next few years.

f. Agreements / Partnerships: Announcements on special partnerships initiated.

g. Conclusion: Final thoughts on the year.

(Signed by :) __________________________

Mayor/Executive Mayor

Delete Directive note once comment is completed – The Mayor may wish to make brief mention of

initiatives attempted that were not entirely successful in the interests of accountability and forming a

closer, trusting relationship with the community.

T 1.0.1

COMPONENT B: EXECUTIVE SUMMARY

1.1. MUNICIPAL MANAGER’S OVERVIEW

MUNICIPAL MANAGER’S OVERVIEW

The 2018/19 Financial Year will be remembered as a year focusing on addressing the deteriorating

financial position of the municipality whilst still within the limited available resources ensuring the

implementation of its Service Delivery and Budget Implementation Plan (SDBIP)to sustain service

delivery to our communities.

The Financial Turnaround Plan of the municipality, through the Section 154 of the Constitution

Support Programme of the Gauteng Department of Co-operative Governance and Traditional Affairs

did not yield the desired short term desires. Good progress was however made to consolidate the

planning processes to address the major challenges of water and electricity losses and subsequent

loss in revenue.

In this regard, Water and Sanitation Turnaround Plan was approved by Council and the

implementation of the plan commenced with the development of business plans to sector

departments and Rand Water to solicit funding to address infrastructure needs. In this regard, a

Municipal Infrastructure Grant (MIG) grant of R2.7m was approved towards the end of the financial

year to address critical water infrastructure needs. The project will be implemented in the new

financial year.

Rand Water also approved and funded the Water Losses Management Programme to the value of

R6.5m towards the end of the financial year. This project will also be implemented in the new financial

year.

The municipality also signed a memorandum of understanding with the Municipal Infrastructure

Support Agency (MISA) and has developed a technical support plan focusing on the key priority areas

identified in the Municipal Turnaround Plan aligned to the Section 154 Support Programme.

The municipality is also being supported by the developers of the Elijah Barayi Major Projects through

bulk services contributions to address critical water and sanitation needs.

The above are some of the initiatives implemented during the year to improve the overall efficiency

and effectiveness of the municipality to ensure financial viability and sustainability over the medium to

long term.

The consolidation of the municipality tax base as well as improved collection of revenue is a key Pillar

of financial sustainability identified in the Financial Turnaround Plan. The outcome of the Valuation

Appeal Board process on the property valuation of the mines is key to the financial viability of the

municipality. The Valuation Appeal Board was unfortunately not established by CoGTA at the end of

the financial year but the process of the appointment of the new board is far advanced and will be

concluded early in the new financial year. A positive outcome of the Valuation Appeal process to


ensure that the mines fairly contributes to the tax base of the municipality which will have a significant

impact on the financial viability of the municipality. The finalisation of the dispute with the mines on

the valuation roll of 2012 is still due to be heard by the high court. A positive outcome is anticipated

which will have a significant impact on the property rates revenue of the municipality.

The culture of non-payment of municipal services together with theft and vandalism of municipal

infrastructure remains a major challenge and have drastically increased during the 2018/19 financial

year. The Municipal Credit Control service providers have limited success in township areas and

therefore extraordinary strategies had to be put in place to manage the electricity demand by doing

structured load shedding. This strategy will be intensified in the new financial year if communities do

not cooperate in this regard.

With regards to the implementation of the Municipal SDBIP the municipal achieved an Overall

Performance of 84%, which is an indication of the commitment to achieve the outcomes as planned

for. The municipality consolidated its SDBIP into 5 goals aligned to the Nation Framework, being:

Goal 1: Basic Service Delivery

Goal 2: Local Economic and Social Development

Goal 3: Transformation and Organisational Development

Goal 4: Municipal Financial Viability and Management

Goal 5: Good Governance and Public Participation

The municipality achieved an Overall Performance of 83.77% on the provision of basic services which

included the indicators on Spatial Integration. Goal 2, Local Economic and Social Development

achieved 80.57% Performance whilst Goal 3, Transformation and Organisational Development

achieved 92.57% average performance on the 21 indicators on this goal. The Performance on the

Municipal Financial Viability and Management was 79.28% whilst Good Governance and Public

Participation achieve 84.67%. The detail is contained in the Annual Performance Report.

The municipality successfully implemented projects to the value of R223 510 354 from the respective

grants allocated for the financial year which is 67% expenditure. It should be noted that some projects

are multi-year projects which will be completed in the new financial year. The details of the above is

included in the Annual Performance Report

Financial Viability

The financial viability of the municipality is discussed in detail under paragraph 45, going-concern

notes to the annual financial statement. The municipality closed the financial year on an accumulative

surplus of R2 404 482 031, whereby the total assets exceeds the total liabilities. The surplus is

however not cash backed and the ability of the municipality to continue as a going-concern is

dependent on a number of factors as briefly discussed above, strict credit control and the

management of payment levels of debtors needs to be successfully implemented to improve the

collection rate of the municipality. Water and electricity losses is further a major contributor to the

financial challenges of the municipality. The following are a summary of the liquidity and solvency

ratios:

Liquidity and solvency ratio 2019 2018

Current ratio (current assets vs current liabilities) 0.40:1 0.50:1

Acid test ratio(current assets less inventory vs current liabilities) 0.37:1 0.43:1

Solvency ratio (current assets vs current liabilities) 3.21:1 3.80:1

Gearing ratio (total long-term debt to total revenue less grants) 6.65 6.65

Debtor collection rate (%) 64.25% 68.9%

Liquidity ratio (cash and cash equivalent vs liabilities) 0.13 0.14

The municipality has adopted stringent cost containment measures during the year and did not spend

any fund on conferences or entertainment costs. The municipality also endeavours to move to a

paperless environment and although not fully implemented, printing costs were reduced by 43%. The

water consumption in municipal facilities has also been reduced by 23%, while telephone cost have

been reduced by 6%.The municipality is continuing to implement cost cutting measures to ensure that

the limited financial resources are prioritized for municipal services delivery.

Delete Directive note once comment is completed - Municipal Manager to provide brief comments

on improvements made to service delivery and ‘mechanisms’ or initiatives’ initiated during the year to

improve overall efficiency and effectiveness of municipal activities. Provide specific references with

regard to: (i) the alignment of services to IDP indicators and Council priorities; (ii) service delivery

performance; (iii) financial sustainability as represented by the financial health ratios; (iv) the efforts

the municipality is making to conserve power and water in its offices and other facilities to compliment

the conservation measures its residents are being requested to adopt in their own housekeeping; and

(v) provide details of administrative policies made during the year reflecting the pressures from the

world recession that impact on everyone (e.g. restrictions on conferences and other events outside

your municipality and the use of meeting accommodation other than your municipality’s own venues).

Please describe any shared service arrangements (e.g. sharing ICT; payroll, billing, revenue

collection; or internal audit) your municipality has entered into with other municipalities (or other

organisations). Give the reasons and the effects. The Municipal Manager to briefly describe changes

resulting from demarcation process and assignment of functions to the municipality, if any.

T 1.1.1

1.2. MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

INTRODUCTION TO BACKGROUND DATA

The 2011 census data was primarily used in municipal planning for the preceding reporting period.

Since the release of the 2016 Community Survey data by Statistics South Africa, the key

characteristics of the municipal demographic profile have changed considerably. This data input

supported the 2018/2019 planning processes.

In comparing the 2011 Census data with the 2016 Community Survey data, the population of Merafong

decreased from 197 250 to 188 843. The decline in population is mainly attributed to the declining

mining sector which, resulted in net out-migration as depicted below.


Source: Quantec 2017

Water

Sanitation

Electricity

The 2018/19 financial year was mostly dedicated to the planning and re-configuration of priorities

according to the previous and current development plans. The re-prioritisation was largely informed by

the developments that were under-way or in inception stage.

The Welverdiend Corridor that includes the Khutsong South Extension as well as the Elijah Barayi

Housing Development was given extensive attention. The Kokosi Extension 6 & 99 Electrification

project is still being rolled-out on a multi-year basis with the expected completion in the 2020/21

financial year.

Fochville Extension 8 as an additional capacity requirement necessitated the re-design of the Bulk

Supply between Eskom and the Municipality.

Roads and Stormwater

Roads and stormwater infrastructure is one of the key components of the municipality that largely

affect the pace of attraction of investors into the municipality. It therefore necessitates that the

municipality timeously maintain the roads network for it to remain in good state since it reflects the

image of the municipality. The municipality has got an annual maintenance plan which depicts

maintenance activities that have to be undertaken regarding the maintenance of roads and stormwater

infrastructure. The overall list of all maintenance projects to be undertaken is reflected on the IDP

document.

Through the revenue generated by the municipality, maintenance of roads and stormwater

infrastructure is supposed to be accommodated. The current population of the municipality has got

more indigents which cannot be in a position to assist in generation of revenue into the municipality. It

therefore affects the pace at which the infrastructure has to be maintained as it limits the municipal

budget.

Budgetary constraints have currently affected all operations that relate to maintenance. Unavailability

of yellow fleet to carry out maintenance of gravel roads and bulk stormwater into our townships is one

of the key issues since the municipality is still faced with a huge backlog of unsurfaced roads.

The municipality currently undertakes maintenance activities despite the financial challenges faced

with, although it is not at the required pace. The set targets that are based on the anticipated revenue

collection are mostly not met, but the municipality still manages to do some work.

Waste Management

The Municipality is providing Waste Management services to 54 507 formal household with accessibility to weekly refuse removals using 240l bins and 6m

3 skip containers, waste storage and

disposal services in line with the national norms and standards. A household level type of service will determine the type of receptacles, infrastructure, collection frequency and equipment required rendering the service hence regular and planned vehicle maintenance is essential to ensure the reliability of the service to the community.

Economic Development

Housing

Spatial Development

Delete Directive note once comment is completed - Refer briefly to the contributions made by your

municipality (including municipal entities) to satisfy the basic requirements for: Water; Sanitation;

Electricity; Refuse; and housing; local Economic Development; Roads; Storm Water Drainage and

local planning approvals (as applicable). Refer briefly to the key characteristics and implications of

your municipality’s population profile.

T 1.2.1


POPULATION DETAILS Population '000

Age 2016/2017 2017/2018 2018/2019

Male Female Total Male Female Total Male Female Total

Age: 0 - 4 8613 7814 16427 8613 7814 16427 8613 7814 16427

Age: 5 - 9 7226 7163 14389 7226 7163 14389 7226 7163 14389

Age: 10 -14 6435 6755 13190 6435 6755 13190 6435 6755 13190

Age: 15 - 19 6256 7148 13404 6256 7148 13404 6256 7148 13404

Age: 20 - 24 7352 7934 15286 7352 7934 15286 7352 7934 15286

Age: 25 - 29 9161 9304 18465 9161 9304 18465 9161 9304 18465

Age: 30 - 34 8280 7344 15624 8280 7344 15624 8280 7344 15624

Age: 35 - 39 10031 7388 17419 10031 7388 17419 10031 7388 17419

Age: 40 - 44 9618 6608 16226 9618 6608 16226 9618 6608 16226

Age: 45 - 49 8724 5438 14162 8724 5438 14162 8724 5438 14162

Age: 50 - 54 7339 4391 11730 7339 4391 11730 7339 4391 11730

Age: 55 - 59 4787 3747 8534 4787 3747 8534 4787 3747 8534

Age: 60 - 64 3200 2314 5514 3200 2314 5514 3200 2314 5514

Age: 65 - 69 1850 1528 3378 1850 1528 3378 1850 1528 3378

Age: 70 - 74 1296 1329 2625 1296 1329 2625 1296 1329 2625

Age: 75 - 79 586 871 1457 586 871 1457 586 871 1457

Age: 80 - 84 320 405 725 320 405 725 320 405 725

Age: 85+ 77 213 290 77 213 290 77 213 290

Total 101150 87693 188843 101150 87693 188843 101150 87693 188843

Source: Statistics SA Community Survey 2016 T 1.2.2

Source: Statssa Census 2011 & Community Survey 2016 T1.2.3

Socio Economic Status

Year Housing Backlog as proportion of current demand

Unemployment Rate

Proportion of

Households with no Income

Proportion of

Population in Low-skilled

Employment

HIV/AIDS Prevalence

Illiterate people older

than 14 years

2016/2017 22% 27% 15% Not available 29% 4%

2017/2018 22% 20% 15% 27% 2% 4%

2018/2019 4%

Source: Statssa Community Survey, Hiv/Aids & Own Source T 1.2.4


Source: Statssa Community Survey 2016, Hiv/Aids & Own Source T 1.2.5

Overview of Neighbourhoods within 'Merafong Municipality'

Settlement Type Households Population

Towns

Carletonville 9489 27518

Welverdiend 933 2706

Fochville 3443 9984

Losberg 0 0

Mining Towns 10398 30154

Sub-Total 24263 70362

Townships

Khutsong (incl. Khutsong South) 10812 31355

Kokosi 6717 19479

Greenspark 892 2586

Wedela 5721 16591

Blybank 101 293

Sub-Total 24243 70304

Rural settlements

Rural areas 1257 3646

Sub-Total 1257 3646

Informal settlements

Northern Conurbation 10725 31103

Southern Conurbation 2848 8259

Mining Belt 7009 20326

Sub-Total 20582 59688

Total 70345 204000

Source: Own Source T 1.2.6

Natural Resources

Major Natural Resource Relevance to Community

Agriculture

Vast tracks of unproductive agricultural zoned land owned by the mines and the Far West Rand Dolomitic Water Association (FWRDWA) present an opportunity for agricultural production and related industrial development, eg. Establishment of a Bioenergy Park and Agricultural Parks (Agri- Parks)

Mining

The declining trend in the performance of the mining sector is due to temporary and permanent shut downs of mining activities which have weakened Merafong’ s GDP contribution to WRDM economy. High outmigration rates are fostered by job losses in mining and low incomes relative to earnings in other major cities within the Gauteng Province. The future of gold mining in the area lies in automation and mechanisation which will change the mines’ workforce and impact on employment in the Municipality.

Infrastructure & Access to Services

The provision of essential services such as housing, electricity, access to clean water, health facilities, etc.is vital in determining the quality of life and satisfaction in residing in a locality (GCRO, 2015). Almost three quarters (74.2%) of households in Merafong were living in formal dwellings in 2016. This indicates an improvement from 2006, where almost 40% of the population were staying in informal settlements. This signifies formalisation of housing arrangements in the Municipality. The number of households accessing electricity marginally increased from 79.7% in 2006 to 82.5% in 2016. Although 83% of the households had access to piped water on their erven, there was a slight increase in the number of households relying on communal water (from 15% in 2006 to 16% in 2016). This was as a result of a 1% decrease of households relying on other sources of water supply (borehole, dam, well, etc.) during 2006-2016.

Source: Quantec 2017 T 1.2.7


COMMENT ON BACKGROUND DATA:

The decline in the population of Merafong City due to the net outmigration figures as a result of the declining mining economy, poses a serious risk to sustainable growth and development.

Population Profile

According to Global Insight 2016, the Merafong population profile was male dominated with males accounting for 54, 3% of the total population and females at 45, 7%. This was a clear demonstration of the impact of mining in the area. This trend has however changed considerably according to the 2017 Quantec data reports, where males account for 48, 8% and females 51, 2% of the population. This clearly demonstrates the impact of the steadily declining mining sector.

Education Profile

With regard to the education profile, there has been a remarkable improvement in the literacy levels since 2011 - 2016 in the following:

Population with tertiary education: 4.4% ⇨ 9.3%

Population with matric education: 16.6% ⇨ 28.8% Population with secondary education: 35.9% ⇨ 57.8%

Population with no schooling education: 12.8% ⇨ 4%

(Source: Quantec 2017)

Household Income Profile

The majority household income is between R19 201 to R76 800 per annum, similar to Gauteng Province and WRDM. The average household income of R6 750 per month is lower than the district’s household average income of R8 690 and almost 50% lower than Gauteng’s average household income. It is therefore clear that Merafong is a relative poor community which negatively impacts on the ability of households to afford municipal services.


Economic & Employment Profile

(Source: Quantec 2017) Economic Performance Although mining has shown a declining trend relative to its share in 2006, the mining sector remains the largest contributor to the municipality’s GDP. Conversely, all the other sectors have been steadily growing, with the greatest increases reported in the manufacturing sector and finance and business division.


The figure below shows the gross domestic product (GDP) contribution per sector in the

MCLM.


Delete Directive note once comment is completed - Set out Key challenges and opportunities for

the municipality arising from the data provided in this demographic section. Discuss the relevance of

the 5 Major resources and the ways in which your municipality is trying to improve the positive impact

they have on the local community.

T 1.2.8

1.3. SERVICE DELIVERY OVERVIEW

SERVICE DELIVERY INTRODUCTION

Delete Directive note once comment is completed - Provide a brief introduction to basic service

delivery achievements and challenges including a brief specific comment on service delivery to

indigents.

ELECTRICITY

Achievements

In the year 2018/19 two major projects were implemented in the Kokosi area of Supply. The

construction of the backbone network for the Extension 6 Township was implemented. It is a multi-year

project that will continue in 2019/20 financial year with funding from the Department of Energy.

The Planning and Design stage for the Khutsong South Ext 5 & Ext 6 was completed. The

implementation of the project will start and be finalized in 2019/20.

Security was improved through the installation of a pilot project which was implemented in partnership

with Public Safety in installing alarm systems in the main/major Substations that yielded positive

results.

Challenges

The department experienced infrastructure vandalism and theft in the year under review that resulted

in the maintenance budget being spent 80% on repairs.

Personnel shortages also hampered the response/turnaround times for the department. The

recruitment of key personnel also commenced in the latter half of the financial year with the results to

be yielded in the next financial year when the personnel have been authorized for major

responsibilities

WASTE MANAGEMENT: Achievements:

Our Integrated Waste Management Plan (IWMP) is implemented and aligned with the Integrated Development Plan (IDP) Number of 880 wheelie bins was distributed to new development in Kokosi Ext 6 and Khutsong Ext 5 in February 2019. The Carletonville Landfill Site score as per Audit conducted by Gauteng Department of Agriculture & Rural Development (GDARD) has improved from 50% April 2018 to 81.60% October 2018, this score represents and improvement of 31.60%. Construction of Carletonville Waste Management Depot was completed and handed over to municipality on the 26

th October 2018. The budget of R56.5 million was allocated to provide the

conducive office accommodation and ablutions for the Solid Waste department employees. WASTE MANAGEMENT CHALLENGES: Shortage of illegal dumping equipments, employment of Senior and Junior Personnel and implementation of Waste Collection strategy in the informal Areas due to financial constraints of municipality hindered the quality of waste collection service delivery. Also not on time repairs and maintenance of Waste fleet including the shortage of fuel/diesel.

ROADS AND STORMWATER ACHIEVEMENTS

Maintenance of roads and stormwater infrastructure has been undertaken during the year under

review. The exercise was carried out with the guidelines of the SDBIP and maintenance plans for the

year. The activities that were carried out include grading of gravel roads in the townships, fixing of

potholes throughout the municipality as well as cleaning of stormwater systems. The municipality

managed to grade 192km of roads and 442 stormwater inlets that were repaired and cleaned. The

potholes were also repaired throughout the municipality of which an achievement of 6684m² was

realized.

Within the works executed was also construction of new roads and stormwater infrastructure which is

largely implemented by the aid of grants and developers into the municipality. The biggest

development through which we managed to build new roads is Elijah Barayi development. The

municipality achieved a total of 8.5 km of roads and associated infrastructure that was within the

project. This is a mixed development that comprises of gap bonded houses and RDP’s that seeks to

address the housing backlog within the municipality. The project is still ongoing, with more roads to be

built in the coming years which will improve our state of roads and stormwater infrastructure.


ROADS AND STORMWATER CHALLENGES

The municipality has got budgetary constraints which makes it difficult to achieve all set targets

pertaining to development and maintenance of roads and stormwater infrastructure. Most of the

maintenance activities could not be achieved in full due to scaling down on midterm that had to be

done in order to keep up with the available resources. The municipality is currently faced with a huge

backlog of infrastructure that is dilapidated due to lack of timeous maintenance that has to be adhered

to.

There is a huge backlog of unsurfaced roads which requires more budget for maintenance. The

business plans were approved for surfacing of all roads but the allocation is received at a small scale

per financial year which makes it difficult to address the problem at the shorter period. On the existing

road network there are roads that have reached their lifespan and need to be resealed but the

municipality is not in a position to attend to due to budgetary constraints.

The municipality has got indigents mostly in townships which are not in a position to contribute to the

municipality in terms of payments of services rendered. They get serviced through the equitable share

grants provided by the government.

T 1.3.1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Year -3 Year -2 Year -1 Year 0

Proportion of households with access to basic services

Electricity service connections Water - available within 200 m from dwelling

Sanitation - Households with at leats VIP service Waste collection - kerbside collection once a week

T 1.3.2

COMMENT ON ACCESS TO BASIC SERVICES:

Delete Directive note once comment is completed - Explain the shortfalls in service contained in

the diagram above.

Electricity

Access to electricity services is being enhanced through the electrification programmes that are rolled

out by the municipality through grant funding. In the year 2018/19 with the Kokosi extension 99 project

as well as the ESKOM driven project in Khutsong informal areas, the municipality has begun to

address aces to electricity in the informal settlements.

Funds are being sourced to address the bulk capacity challenges that shall arise due to the increased

access to the service.

Waste Management:

Due to Municipal Financial situation , personnel and equipments are not enough to extend the service to other municipal formal areas, to enable the department to perform up to 100%.

The municipality provides access to roads and stormwater infrastructure on all areas. In the townships

there are areas that still have gravel roads, including the informal areas. The challenge becomes the

maintenance of gravel roads that comes at a high cost, while the municipality is currently faced with

budgetary constraints. The business plans for surfacing of roads were approved in full for all gravel

roads around the municipality but the availability of budget is a challenge. The budget is availed in

smaller scales which does not make impact in addressing the backlog. The challenge is addressed in

phases throughout the financial years.

T 1.3.3

1.4. FINANCIAL HEALTH OVERVIEW

FINANCIAL OVERVIEW

Council closed off with a deficit of R80.424 Million comparing to a budgeted deficit of R262.374 Million.

Council’s cash flow had deteriorated in 2016/2017.

Council’s liquidity ratio had deteriorated in 2016-2017.

The liquidation of Blyvooruitzicht mine had a detrimental effect on council’s collection performance.

Blyvooruitzicht mine is owing council R409 463 039 as at the end of June 2017 which represents 35%

of councils outstanding debt owed by consumers. Councils outstanding debtors as at 30 June 2017

stands at R1 175 098 984.

The cash flow constrains had resulted in that council had to implement serious cost cutting measures

and creditors were prioritised for payment.

Council were not be able to cover its fixed operating expenditure.

Council adopted a turn-around strategy to turn the financial situation around. Water and Electricity

losses remain a serious challenge. The municipality, like most municipalities in the country has faced


the usual challenges for the last three years in maintaining positive cash flows and administering

successful debtor collections.

Council’s average payment levels for the past twelve months were 73.90% comparing to 69.72% in

2015/2016.

The non-payment of services by consumers is a serious situation. Council needs an average payment

level of 87.50% to enable them to service its creditors.

Delete Directive note once comment is completed - Provide a brief introduction on the financial

sustainability of the municipality commenting on key successes and outcomes in Year 0 (Current Year)

and those things that were challenging and required rectification – state how such challenges are

being addressed. Comment also on the financial health of the municipality as derived from the financial

ratios in Chapter 5.

T 1.4.1

R' 000

Details Original budget Adjustment Budget Actual

Income:

Grants 227 399 230 646 230 646

Taxes, Levies and tariffs 840 677 887 992 881 561

Other 135 303 147 536 155 912

Sub Total 1 203 379 1 266 174 1 268 119

Less: Expenditure 1 465 054 1 551 056 1 556 284

Net Total* -261 675 -284 882 -288 165

* Note: surplus/(defecit) T 1.4.2

Financial Overview: Year 2018/2019

Operating Ratios

Detail %

Employee Cost 25%

Repairs & Maintenance 4%

Finance Charges & Impairment 11%

T 1.4.3

COMMENT ON OPERATING RATIOS:

Operating ratios

Liquidity

Current ratio

Current ratio measures the ability of the Municipality to pay its current liabilities out of the current

assets. The industry usually looks for a ratio of 2:1, however the acceptable current ratio is 1:1 for

municipalities.

The current ratio is 0.4:1 which means that the Municipality will not be able to meet its short term

obligation if the trend continues.

Revenue Management

Current Debtors Collection Rate (Cash receipts % of Ratepayer & Other revenue)

A revenue enhancement strategy was developed and the roll out plan has commenced. A no

tolerance approach in terms of council’s credit control policy will be enforced on non-indigent

defaulters.

Outstanding debtors to Revenue

This ratio gives an indication of how liquid customer’s debtors are. The benchmark is 8.3%. The

benchmark is exceeded. The municipality needs to look at ways of improving their credit control. The

average for the Municipality for the past two years was 25.8% and 23.9% respectively.

Creditors Management

• Creditors System Efficiency

The ratio gives an indication of average creditor’s payment period. The benchmark is 30 Days and is

a contravention of Section 65(2) (e) if creditors are not paid in 30 days. Councils average number of

days to pay its creditors were 137 days.

Other Indicators

• Employee costs

The ratio indicates a percentage of salary costs to total expenditure and this ratio could illustrate the

risk of salary costs being unmanageable.

Employee costs totalled 25.3% of the total expenditure for the 2016/17 financial year. This ratio is

maintained within the limit of 30 %.


Total Capital Expenditure: Year 2016/2017 to Year 2018/2019

R'000

Detail 2016/2017 2017/2018 2018/2019

Original Budget 151892 124 299 255432

Adjustment Budget 187996 217897 290803

Actual 113958 181089 193212

T 1.4.4

0

50000

100000

150000

200000

250000

300000

350000

2016/2017 2017/2018 2018/2019

Total Capital Expenditure

Original Budget Adjustment Budget Actual

T 1.4.5

• Cost coverage

This ratio indicates the availability of cash plus short term investments to cover the monthly fixed

operating expenditure. The purpose of this measure is to understand the level of financial risk should

the municipality be under stress from a collection and cash in-flow perspective. The Municipality aims

to achieve at least one month’s cash coverage in the medium term, and then gradually move towards

two months coverage.

Council does not have sufficient cash to cover current liabilities.

Delete Directive note once comment is completed - Explain variances from expected norms:

‘Employee Costs’ expected to be approximately 30% to total operating cost; ‘Repairs and

maintenance’ 20%; Finance Charges and Impairment 10%.

T 1.4.3

COMMENT ON CAPITAL EXPENDITURE:

Council achieved 67% of the adjustment budget for 2018/2019

Relocation of Khutsong Reservoir and Related Bulk Infrastructure

Upon proceeding with the excavations for the reservoir foundations subsequent to resolving a previous

extended delay with an ESKOM bulk feeder cable running across the reservoir footprint, a void was

exposed on 10 November 2017 at a depth of approximately 2m below natural ground level on the

western boundary of the reservoir footprint area. A geotechnical investigation followed upon which a

void of 3,1m long, 2,8m wide and 4,5m deep was observed with an erosion tunnel extending towards

the west. It was recommended for a dolomite stability investigation to be conducted in the area

surrounding the sinkhole in order to determine the extent of subsurface erosion and appropriate

rehabilitation methods to improve subsurface (founding) conditions.

Delete Directive note once comment is completed – Explain variations between Actual and the

Original and Adjustment Budgets.

T 1.4.5.1

1.5. ORGANISATIONAL DEVELOPMENT OVERVIEW

ORGANISATIONAL DEVELOPMENT PERFORMANCE

Delete Directive note once comment is completed – Provide an overview of key Organisational

Development issues based on information contained in Chapter 4.

T 1.5.1

1.6. AUDITOR GENERAL REPORT

AUDITOR GENERAL REPORT: YEAR 2018/2019 (CURRENT YEAR)

Information will be available after the finalisation of the 2018/2019 audit, which will be included in the

final Annual Report.

T 1.6.1


1.7. STATUTORY ANNUAL REPORT PROCESS

No

. Activity Timeframe

1

Consideration of next financial year’s Budget and IDP process plan. Except for

the legislative content, the process plan should confirm in-year reporting formats

to ensure that reporting and monitoring feeds seamlessly into the Annual Report

process at the end of the Budget/IDP implementation period

July 2 Implementation and monitoring of approved Budget and IDP commences (In-

year financial reporting).

3 Finalise the 4th quarter Report for previous financial year

4 Submit draft year 0 Annual Report to Internal Audit and Auditor-General

5 Municipal entities submit draft annual reports to MM

6 Audit/Performance committee considers draft Annual Report of municipality and

entities (where relevant)

August

8 Mayor tables the unaudited Annual Report

9 Municipality submits draft Annual Report including consolidated annual financial

statements and performance report to Auditor General

10 Annual Performance Report as submitted to Auditor General to be provided as

input to the IDP Analysis Phase

11 Auditor General audits Annual Report including consolidated Annual Financial

Statements and Performance data September -

October

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

November 13

Mayor tables Annual Report and audited Financial Statements to Council

complete with the Auditor- General’s Report

14 Audited Annual Report is made public and representation is invited

15 Oversight Committee assesses Annual Report

16 Council adopts Oversight report

December 17 Oversight report is made public

18 Oversight report is submitted to relevant provincial councils

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

Report and Oversight Reports to be used as input January

T 1.7.1

COMMENT ON THE ANNUAL REPORT PROCESS:

The Municipality is committed to adhere to the timelines and guidelines set out in Circular 63 of National Treasury. This Annual Report is covering activities for the 2018/2019 financial year. The Municipality must submit a draft annual report to Council by 31

st August 2019 as guided by the Circular.

Delete Directive note once comment is completed –Explain the importance of achieving the above

deadlines to prepare the Annual Report nearer the end of the financial year and to provide the next

budget process with a wide range of data from the outset. Include a statement to explain the

importance of alignment between the IDP, Budget and Performance Management System as dealt

with at item 1 or the schedule. Explain any failures to achieve the above timescales.

T 1.7.1.1

Municipality | CHAPTER 2 – GOVERNANCE 33

CHAPTER 2 – GOVERNANCE

INTRODUCTION TO GOVERNANCE

The Merafong City Local Municipality was established in terms of Chapter 7 of the Constitution of the

Republic of South Africa, 1996, section 151. In terms of governance the municipality’s IDP process

encourages public participation whereby invitation to IDP public consultative meetings are advertised

and publicised widely. The community of Merafong is given an opportunity to give input in terms of

their needs and these are considered when the IDP as a strategic plan of the Municipality is

developed.

The Internal Audit Unit of the Municipality develops an annual plan which is developed based on the

risks identified in that particular year. In terms of Oversight, the Internal Audit Section functionally to

Audit Committee, the Audit Committee holds its meetings on a quarterly basis. The report of the Audit

Committee Chairperson is presented to Council.

The Municipality also has a functional Municipal Public Accounts Committee (MPAC) in terms of

Section 79 of the Municipal Structures Act. It is a practice in Merafong to include the MPAC

Chairperson to be part of Audit Committee proceeding in order to achieve synergy in the work done by

both Oversight Committees.

In addition the Municipality’s Risk Management Unit is responsible for Risk Management, Compliance

Management, Ethics Management and Combating of Fraud and Corruption. In order to improve good

governance and strengthen oversight the risk management function of the municipality has appointed

an external chairperson. The chairperson provides an independent view of risk management activities

within the organisation and whether risk management activities add value in the organisation. The

municipality is using a Shared service model of the district with regard to Section 79 committees. This

means that all municipalities within the district are using the same committees in order to standardise

and have the same approach in improving governance.

According to the municipality’s IGR Strategy, the municipality also participates in the IGR

engagements within the District, the Province and those that are coordinated by SALGA in order to

align the activities of the municipality with the governance initiatives within the Gauteng Province.

Component B of this report indicates the political and administrative leadership responsible of specific

IGR engagement.

Delete Directive note once comment is completed - Provide brief introduction to the nature of

governance and the relationship between the four components in this Chapter.

T 2.0.1

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO POLITICAL AND ADMINISTRATIVE GOVERNANCE

The Political and Administrative governance is conducted in terms of the Local Government Municipal Structures Act, No 117 of 1998 and other related regulations. The Executive Mayor of Merafong City Council Cllr Maphefo Mogale-Letsie plays an oversight role over the administration of the municipality led by an Accounting Officer Ms MN Mokoena. The Mayoral Committee through their respective portfolio heads are playing a vital role to political and administrative governance as well. The Heads of Departments and officials are responsible to implement the political decisions of the council, and the ward councillors with their ward committees intensify the public participation with the community

Note: The Constitution section 151 (3) states that the council of a municipality has the right to govern

on its own initiative, the local government affairs of the local community.

Delete Directive note once comment is completed - Provide brief introduction to Political and

Administrative governance at your municipality.

T 2.1.0

2.1 POLITICAL GOVERNANCE

INTRODUCTION TO POLITICAL GOVERNANCE

The Local Government Municipal Structures Act no. 117 of 1998 determined the Merafong City Local

Municipality to be declared a municipality with executive powers, and that would have an Executive

Mayoral System combined with a Ward Participation System. The political leadership of the

municipality exercise their executive and legislative powers and functions to govern the affairs of the

municipality. The legislative function of the council is vested within the full council with the speaker as

its chairperson. The passing of by-laws and policies on functions remains the responsibility of council

except where delegations have been made.

The Executive Mayor, Cllr SM Mogale-Letsie has an executive strategy and political responsibility for

Merafong City and also represents the municipality at the ceremonial functions. Different portfolio

committees submit reports with recommendations to the Executive Mayor to be presented to the

council.

The speaker of council, Cllr TE Mphithikezi is the chairperson of the council and presides over council

meetings to ensure that meetings are held as scheduled, maintains order during council meetings

following the rules and regulations of the meeting procedures.

The Chief Whip of the Council, Cllr WM Mosiane is the chairperson of whippery team responsible for

building and maintaining relationships between all parties in council to ensure the smooth running of

the Portfolio Committees and caucus study groups.


The municipality is complying in terms of the Municipal Structures Act Section 80 committees to assist

the executive committee. The section 80 committee consists of ten Mayoral Committee Members who

head different departments. The section 80 portfolio heads report to the Executive Mayor by submitting

reports from different council departments.

The Independent Audit Committee reports directly to the council, providing opinions and

recommendations on financial processes and performance. It is constituted to review the control,

governance and risk management within the municipality. It is established in terms of section 166 of

the Municipal Finance Management Act. It meets quarterly as scheduled and provides

recommendations on financial and non-financial processes of the municipality.

A section 79 Municipal Public Accounts and oversight committee (MPAC), is in place to strengthen the

oversight arrangements in the municipality and to ensure the efficient and effective use of municipal

resources. Its function includes the analysis of the Annual Report and submission of the oversight

report on the annual report to council with recommendations. Once the oversight report has been

considered and approved by the council it is published in accordance with the MFMA requirements

and guidance.

In the office of the Speaker, the petition committee is established as a section 79 committee and

reports directly to the council. The ethics committee, as well, has been established to manage the

conduct of the municipal councillors in terms of the approved ethics conduct, especially in compliance

with section 54 of municipal systems Act - code of conduct for councillors.

The municipality also subscribed to the Batho-Pele principles in terms of public participation in the

communities especially in compliance with Chapter 4 of MFMA which detailed the development of

culture of community participation. The community consultation programme remains a paramount pillar

between the municipality and the community stakeholders. The ward committees’ structure plays a

vital role to coordinate the issues from the community at ward levels to the respective departments by

monthly reports. The Executive Mayor consults the community on a quarterly basis except in the case

of other compliance programmes such as budget and Integrated Development Plan (IDP) consultation

programme.

The executive and legislative authority of a municipality is exercised by the council of the municipality,

and the council takes all the decisions of the municipality in terms of Municipal Systems Act.

The Executive Mayor of the municipality has powers and the legislative delegations in terms of section

59 of MFMA Chapter 7. Besides the powers and functions accorded to and imposed on the Executive

Mayor in terms of legislation (e.g. the Municipal Systems Act, Municipal Finance Management Act,

etc.), the executive function of the council is delegated to the Executive Mayor as the appointed head

of the executive function as far as the Constitution and practicalities allow.

In executing and performing the executive functions of council and the municipality, the Executive

Mayor is complemented by ten Members of the Mayoral Committee each with a particular portfolio in

terms of section 80 of the Municipal Structures Act.

Whippery

The Whippery Committee comprises of the Chief Whip of Council and of all opposition partied

represented in the Council. The Whippery is very instrumental in organizing and fostering cooperation

between members of the council from different political parties and primarily to promote inter-party

relations, party discipline and strive for consensus in issues of mutual interest.

SPECIFIC PROGRAMMES

• The committee plays an overall coordination of Whippery activities, e.g. managing number and

order of members who wish to speak in debates.

• Liaises and monitor performance of members of council to their area of deployment

• Promotes public participation, for example to interact with communities through community

outreach programmes and engaging with interest groups

Special Programmes

The political sector of the municipality is also championing the special programmes in the municipality

for the purpose of political governance to emphasize and intensify the implementation on these

programmes. The special programmes among others include the likes of Mayoral cup games, Ward

Committees awards, Letsema projects, Mandela Day, GEYODI programmes and women

empowerment programs. The purpose of the special programs are to complement the legislative in

place such as Equity Act, youth empowerment, public participation and compliance of minimum 2% of

disability people in the municipality among other objectives.

Note: MFMA section 52 (a): The Mayor must provide general political guidance over the fiscal and

financial affairs of the municipality

Delete Directive note once comment is completed - Provide brief introduction to Political

governance at your municipality, particularly the key committees, how the political system works at the

top. State whether there is an Audit Committee attached to your municipality that provides opinions

and recommendations on financial processes and performance and provides comments to the

Oversight Committee (or some other stated committee) on the Annual Report. State whether your

municipality has established an Oversight Committee, comprised of non-executive councillors, with the

specific purpose of providing your Council with comments and recommendations on the Annual

Report. Confirm that the Oversight Committee report will be published separately in accordance with

MFMA guidance.

T 2.1.1

Photos POLITICAL Functions


STRUCTURE EXECUTIVE MAYOR CLLR SM MOGALE LETSIE

Presides at meetings of the executive committee and performs the duties, including any ceremonial functions, and exercises the powers delegated to the mayor by the municipal council or the executive committee

SPEAKER CLLR TE MPHITHIKEZI

Functions Presides at meetings of the Council; Performs the duties and exercises the powers delegated to the speaker in terms of section 59 of the Local Government: Municipal Systems Act 2000(Act 32 of 2000), Ensures that Council meets at least quarterly; Must maintain order during meetings; Must ensure compliance in the council and council committees with the Code of Conduct set out in schedule 1 to the Local Government: Municipal Systems Act, 2000 ( Act 32 of 2000) and Must ensure that council meetings are conducted in accordance with rules and orders of the council

CHIEF WHIP CLLR WM MOSIANE

Functions (i) ensure the effective and efficient functioning of the Whips Committee and the Whippery system; (ii) assist with the smooth running of Council meetings by:

Determining, prior to Council meetings, items on the agenda which political parties may wish to discuss and advising the Speaker accordingly;

Ensuring that all political parties have nominated councillors to represent their parties and lead discussion on those areas identified by the party, and forwarding such names to the Speaker at least 12 hours before the time set for the Council meeting to commence;

Allocating speaking times for each of the political parties, in line with the principles of democracy;

Ensuring that Councillors adhere to the speaking times allocated to their political parties; and

Assisting the Speaker to maintain order in Council by requiring Councillors to adhere to the Rules of Council regarding general conduct in meetings;

(iii) Ensure the allocation of Councillors to standing committees in accordance with the representation of parties in Council; (iv) ensure that Councillors observe the Code of Conduct for Councillors in any meetings, workshops or seminars approved by the Speaker; and (v) Ensure that Councillors are familiar with the Code of Conduct for Councillors and to facilitate training as and when there is such a need.

MAYORAL COMMITTEE MEMBER CLLR MG SELLO CLLR E LEKOPA CLLR M NGQELE CLLR MB LEPHUTING CLLR N. BEST CLLR DV TABANE CLLR MD DLHAMINI CLLR MN MATSHE CLLR M. MOYENI CLLR M SKOSANA

FUNCTIONS ROADS, STORM WATER AND PUBLIC WORKS HEALTH AND SOCIAL DEVELOPMENT CORPORATE AND SHARED SERVICES INTEGRATED ENVIRONMENTAL MANAGEMENT LOCAL ECONOMIC, TOURISM AND RURAL DEVELOPMENT FINANCE ELECTRICITY, GAS AND WATER PUBLIC SAFETY, SECURITY AND TRANSPORT HUMAN SETTLEMENT AND LAND DEVELOPMENT SPORTS, RECREATION, ARTS, CULTURE, HERITAGE, LIBRARIES AND INFORMATION SERVICES

T 2.1.1

COUNCILLORS

The Council consists of 55 seats, of which 28 are Ward seats and 27 are Proportional Representatives.

Delete Directive note once comment is completed - Provide a brief paragraph on the Councilors,

indicating the total number of Councilors and making a distinction between ward councilors and those

appointed on a proportional basis. Refer to Appendix A where a full list of Councilors can be found

(including committee allocations and attendance at council meetings).

Also refer to Appendix B which sets out committees and committee purposes.

T 2.1.2

POLITICAL DECISION-TAKING

Merafong has an Executive Mayoral system with a Mayoral Committee consisting of 10 full time

portfolio heads as an advisory structure to the Executive Mayor. The Executive Mayor has delegated

powers on matters dealt with by portfolio committees. The Council is the decision making body of the

municipality regarding non delegated matters as prescribed by legislation.

The political decisions are taken in terms of the Municipal Structures Act, 117 of 1998 by the Mayoral

Committee and Section 80 Committees before they are tabled at Council for a resolution. The

Municipal Public Accounts Committee as well play an oversight on decision taken by the council for

oversight purposes.


Delete Directive note once comment is completed – Explain how political decisions are taken and

provide the percentage of Council Resolutions implemented against the number of decisions taken.

List those not implemented and indicate why not.

T 2.1.3

2.2 ADMINISTRATIVE GOVERNANCE

INTRODUCTION TO ADMINISTRATIVE GOVERNANCE

The Municipal Manager is the head of the administration and the municipality’s Accounting Officer. The Head of the Administration and is the Accounting Officer of the Municipality and is responsible for: • The provision of Municipal Strategic Direction and the Operationalizing of such strategies; • The provision of the following infrastructural services for Merafong City Local Municipality:

Water; Sanitation, Geotechnical Services; Civil Engineering Services; Electrical Engineering Services; and ensuring that Capital Project Financing is properly managed and accounted for;

• The rendering of Community Services which are: Public Safety; Community Development; and Solid Waste and Environmental Management Services;

• The provision of Urban Planning and Development Services comprising: Spatial Planning and Land Use Management; Property Management Services; and Housing Administration;

• The provision of Financial Planning and Accounting Services which are: Budgeting and Accounting services; and Supply Chain Management Services; and

• The rendering of Municipal Support Services which are: Human Capital Management; Legal and Administration Services; and Management Information Services.

In terms of section 55 of the Systems Act, the Accounting Officer is responsible and accountable for the formation and development of such an establishment and is supported by the Office of the Chief Operations Officer overseeing responsibilities of Integrated Development Planning, Performance Management, Risk Management and Compliance Management. The administrative governance strives to achieve a clean Auditor General’s report at the end of the financial year. To achieve this goal, a standing item is placed on the regular management meetings between the Municipal Manager and the Heads of the various Departments. In terms of promulgated regulations and the MSA a municipal council must have at least the following senior management positions on its complement: * Town Planning Services * Public Works and basic services to the community * Community Services * Managing of the finances of the Municipality and * Rendering of Corporate Support Services

Note: MFMA section 60 (b): The Municipal Manager of a municipality is the accounting officer of the

municipality for the purposes of this Act and must provide guidance on compliance with this Act to

political structures; political office bearers, and officials of the municipality and any entity under the sole

or shared control of the municipality.

Delete Directive note once comment is completed – Comment as appropriate e.g. more general

explanations than can be given in the table set out below concerning the roles of Municipal Manager,

Deputy Municipal Managers and Executive Directors. Explain how they work together corporately in

their thematic and service group roles to make the greatest impact on service delivery. Explain any

major structural changes made or structural reviews commenced during the year.

T 2.2.1


TOP ADMINISTRATIVE STRUCTURE

TIER 1

MUNICIPAL MANAGER

MS MN MOKOENA

FUNCTION As the Head of Administration, the Municipal Manager is the Accounting Officer. The Municipal Manager advises Council and its committees on administrative matters such as policy issues, financial matters, organisational requirements and personnel matters. The Municipal Managers Office and ensures compliance with the Municipal legislation. It also monitors that all departments adhere to the IDP, the municipal strategy and policies. Internal Audit is also located in this office.

CHIEF FINANCIAL OFFICER

MS M CHAUKE

The Chief Financial Officer ensures that the municipal finances are well managed in accordance with the various legislative requirements and consists of the following Divisions: 1. Treasury and Budget Office 2. Creditors 3. Expenditure 4. Revenue 5. Supply Chain Management

CHIEF OPERATING OFFICER

MR CWA NIEUWOUDT

The Chief Operating Officer is the key Department within the Municipal Managers Office. It is responsible for the Integrated Development Plan (IDP), Monitoring and Evaluation, Risk Management and Programme Management Office.

EXECUTIVE DIRECTOR:

INFRASTRUCTURE DEVELOPMENT

MS MM MOLETSANE

The role of the department is to maintain effective and efficient provision of basic services with regard to the following: 1. The provision, distribution and maintenance of basic electricity supply networks; 2. The provision, distribution and maintenance of basic water and hygienic sanitation networks; 3. The construction and maintenance of municipal roads and stormwater for safe accessible roads; 4. The implementation of Capital Projects within the specified budget, time and quality through the Infrastructure Planning and Programme Section (PMU);

EXECUTIVE DIRECTOR: CORPORATE

SHARED SERVICES

MR H BREDENKAMP

Corporate Support Services is tasked with providing support functions within the organisation and services the organisation through the following divisions: 1. Contract Management 2. Legal and Secretariat 3. Human Capital Management 4. Corporate Communication and Marketing 5. Industrial Relations 6. Employment Equity 7. Information Communication Technology (ICT)

EXECUTIVE DIRECTOR: COMMUNITY

SERVICES

MR S MANTJANE

The role of the department is to provide and maintain effective and enhanced community services in the following functional areas: 1. Public Safety – to create an enabling environment for safer and secure communities 2. Integrated Environment and Waste Management – to ensure the provision of effective environmental management and integrated waste management services 3. Sport, Recreation, Arts, Culture & Heritage – To promote social cohesion through the promotion of sport, recreation, arts, culture and heritage 4. Library Information Services – To manage and provide library and information services 5. Health & Social Development – To ensure the promotion of social services 6. Public Safety and Security –

EXECUTIVE DIRECTOR: ECONOMIC

DEVELOPMENT & PLANNING

VACANT

The role of the department is to create an investor

friendly town with constant economic growth,

sustainable developments and a variety of tenure

options through provision of integrated, sustainable

and safe human settlements.

1. Local Economic Development - Rural and

Agricultural Development, Enterprise Development

and Support, Business Retention, Expansion and

Attraction

2. Spatial Planning - Land use control and

management, Development Facilitation/GIS,

Densification & infill programmes

3. Building Control

4. Human Settlement - Facilitate Sustainable Human Settlements

Note: * denotes officials on fixed term performance contracts reporting to the Municipal Manager under

the Municipal Systems Act Section 57.

Delete Directive - Include all approved posts but note as vacant where applicable. Ensure that all

Section 57 posts are captured. Set out directors/third tier posts under relevant executive directors. Use

Appendix ‘C’ for third tier posts where all such posts cannot fit on this and the next page.

T2.2.2


COMPONENT B: INTERGOVERNMENTAL RELATIONS

INTRODUCTION TO CO-OPERATIVE GOVERNANCE AND INTERGOVERNMENTAL RELATIONS

Merafong Local Municipality operates within the prescripts of the Democratic Constitution of the South Africa 1996, where local government is one of the spheres of government. The promulgation of the Intergovernmental Relations Framework Act (Act No.13 OF 2005) provides a regulatory framework within which all the spheres of government interact. The Municipality is not excluded and fully participates in all the intergovernmental structures that operate at provincial level. These structures enable the Municipality to contribute to legislative to legislative undertakings. As a Local Municipality, the municipality does not officially participate in National Intergovernmental Structures such as MINMEC and MINTECH and related working groups. The municipality fully participates in MEC- MMC political and technical Intergovernmental forums as well as SALGA and the respective SALGA working groups

Note: MSA section 3 requires that municipalities exercise their executive and legislative authority

within the constitutional system of co-operative governance envisage in the Constitution section 41.

Delete Directive note once comment is completed - Provide a brief overview of co-operative

governance and intergovernmental relations for your municipality. Explain the various contributions to

service delivery offered by those involved.

T 2.3.0

2.3 INTERGOVERNMENTAL RELATIONS

NATIONAL INTERGOVERNMENTAL STRUCTURES

The Municipality annually participates in the National South African Local Government Association Members Assembly where matters of mutual interest of Local Government is discussed to inform Policy and legislative reforms as may be applicable. In terms of the constitution of SALGA, the municipality as a member shall be represented in the National Conference and National Members Assembly and be entitled to vote in accordance with the applicable formula.

National Assembly Members shall adopt SALGA’s programme of action, business plan and budget as approved by the National Executive Committee and adopt positions on key policy and legislative matters impacting on local government for implementation by the National Executive Committee. Members must also review SALGA’s financial performance, consider reports from the working groups and oversight bodies and deal with any other issues emanating from the provisions of this constitution.

Delete Directive note once comment is completed - Explain the participation of your municipality in

National Forums and the benefit derived from these forums.

T 2.3.1

PROVINCIAL INTERGOVERNMENTAL STRUCTURE

The municipality forms part of the Premier’s coordinating forums, Provincial Sector Intergovernmental

which comprises of MEC, MMCs and the sectoral technical IGR forums which comprises of senior

officials. There are also ongoing and regular engagements with different provincial governments with

different provincial government departments.

Through 2018/2019 financial year, 27 scheduled meeting were planned for the year, 17 of those

meetings were cancelled because of national elections and new appointments of the head of

departments at provincial level. Only 10 of the schedule meetings were held. These are the following

Provincial forums that municipality does participate:


PROVINCIAL INTERGOVERMENTAL STRUCTURE

IGR Purpose Frequency of meetings

Department Person responsible Secondi

Premiers Coordinating Forum

All Mayors in Gauteng raise and discuss critical issues with the Premier directly

Quarterly Political Support Services

Acting Chief of Staff: Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]

Manager: Office of Mayor Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]

Premier’s Ntirhisano War Room PTT

Service Delivery War Room

Monthly Political Support Services

Acting Chief of Staff: Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]

Manager: Office of Mayor Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]

MEC/MMC Infrastructure

To collate and discuss information surrounding departmental projects


PH: Roads, Stormwater, Public Works & PMU: CLR G.M. Sello Tel: 018 788 9962 Email Address: [email protected]

ED: Ms. M. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]

MEC/MC IGR FORUM Human Settlements

To discuss with the MEC issues relating to housing and development

Bi-monthly Political Support Services

PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051 Email Address: [email protected]

Acting ED: Econ Development & Planning: Mr. L. Jofile Tel: 018 788 9680 Email Address: [email protected]

MEC/MMC IGR FORUM (GDARD) Agriculture

To discuss issues relating Agriculture and Farming at Provincial Level


PH: Human Settlement & Land Development : CLR .M. Moyeni Tel: 018 788 9051

Acting ED: Econ Development & Planning: Mr. L. Jofile Tel: 018 788 9680 Email Address:

mailto:[email protected]









and rural development

Email Address: [email protected]

[email protected]

MEC/MMC:LED IGR DISTRICT

SMART CITY Quarterly Political Support Services

PH: Local Economic, Tourism & Rural Development : CLR .N. Best Tel: 018 788 9051 Email Address: [email protected]


Municipal Finance Working Group

To discuss issues of implementing finances for municipalities departmental projects


PH: Finance CLR D. Tabane Tel: 018 788 9607 Email Address: [email protected]

CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]

MEC/MMC Social

To collate and discuss information surrounding departmental projects


PH: Health & Social Development : CLR E. Lekopa Tel: 018 788 9626 Email Address: [email protected]

ED: Mr. Mantjane Tel: 018 788 9981 Email Address: [email protected]

MEC/MMC: HEALTH (District& Prov.)

To discuss clinics and general health issues


PH: Health & Social Development : CLR E. Lekopa Tel: 018 788 9626 Email Address: [email protected]

ED: Mr. Mantjane Tel: 018 788 9981 Email Address: [email protected]

MEC/MMC: Waste Forum

To discuss Waste Management

Quarterly Community Services

PH: Integrated Waste Management : CLR M. Lephuting Tel: 018 788 9636 Email Address: [email protected]

Waste Management Mr. Mahlangu Tel: 018 788 9982 Email Address: @merafong.gov.za

EPWP (District & Prov.)

Environment Management

Quarterly Infrastructure Development


Manager: PMU Mr. D. Venter Tel: 018 788 9025 Email Address: [email protected]

GPL: Gauteng Speakers Forum Quarterly Political Support Acting Chief of Staff: Admin Officer: Office of the


















Speakers Forum

Services Mr. I. Mahlatsi Tel: 018 788 9962 Email Address: [email protected]

Speaker Mr. M. MSUKWINI Tel: 018 788 9521 Email Address: @merafong.gov.za

Gauteng IGR Practitioners Forum (COGTAS & SALGA)

Province IGR Quarterly Chief Operations Officer

COO: Mr. CWA Nieuwoudt Tel: 018 788 9961 Email Address: [email protected]

IGR Coordinator Mr. P. Mofokeng Tel: 018 788 9505 Email Address: [email protected]

Premiers Coordinating Technical

Premiers & MM’S Forum

Quarterly Municipal Manager Municipal Manager Mr. MM. Mokoena Tel: 018 788 9962 Email Address: [email protected]

Chief Operations Officer Mr. CWA Nieuwoudt Tel: 018 788 9962 Email Address: [email protected]

Provincial Treasury CFO Forum/ Provincial Treasury Finance Indaba

To interact on a provincial level on matters related to legal compliance, financial reporting and other financial management issues and to propose financial management matters for discussion at MEC/MMC level

Quarterly Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]

CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]

Provincial Treasury Risk Management and Internal Audit Indaba

To interact on a provincial level on matters related to Risk Management and Internal Audit

Quarterly Municipal Manager Municipal Manager Mr. MM. Mokoena Tel: 018 788 9962 Email Address: [email protected]

Manager: Risk Management Ms. Segakweng-Diale Tel: 018 788 Email Address: [email protected]











SALGA Finance Working Group (Technical)

To establish a Local Government position on financial management matters (as representatives of LG)

Bi-monthly Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]

Manager: Budget & Treasury Mr. T Wienekus Tel: 018 788 9553 Email Address: [email protected]

Provincial Treasury compliance monitoring meeting

To report on the municipality’s level of compliance with the MFMA and Regulations

Quarterly Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]


SALGA IGR Working Group

IGR Quarterly COO COO: Mr. CWA Nieuwoudt Tel: 018 788 9961 Email Address: [email protected]

IGR Coordinator Mr. P. Mofokeng Tel: 018 788 9505 Email Address: [email protected]

Provincial Treasury Budget Monitoring Meetings

To evaluate the Annual budget submission of the municipality as well as to review the mid-year performance of municipality

Annually Finance CFO: Ms. M. Chauke Tel: 018 788 9551 Email Address: [email protected]











Rand Water Board meeting

To compare the water results from the Municipalities in the Gauteng Region



Acting Manager: Water & Sanitation Ms. L. Moelane Tel: 018 788 9783 Email Address: [email protected]

Social Development Technical Committee

Preparation for MEC and MMC’s Meeting


PH: Health & Social Development : CLR E. LEKOPA Tel: 018 788 Email Address: @merafong.gov.za

ED: Mr. Mantjane Tel: 018 788 Email Address: [email protected]

Community Development Working group

Technical-portfolio Community Development




Health and Social Development Working group

Technical-portfolio Health and Social Development


ED: Mr. SE Mantjane Tel: 018 788 Email Address: [email protected]

ED: Mr SE. Mantjane Tel: 018 788 Email Address: [email protected]

Gauteng waste forum (GDARD)

To strengthen cooperative governance on waste management in the Province and to share information on waste management best practices

Monthly Community Service’s

ED: Mr. SE Mantjane Tel: 018 788 Email Address: [email protected]

Waste Management : Mr. Mahlangu Tel: 018 788 Email Address: @merafong.gov.za





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Environment & culture sector meeting (EPWP) (GDARD)

EPWP reporting and management on environment


ED: Ms. MM. Moletsane Tel: 018 788 9652 Email: [email protected] [email protected]






Infrastructures sector meeting (EPWP) (department of Public works)

EPWP reporting and management on infrastructure




Intergovernmental Relations Forum: Infrastructure

To interact on matters related to infrastructures




GPGED,MEC-MMC IGR MEETING

Proposed alignment of economic development initiatives, strategies and programmes discussions with MMC and HOD’s (ED’s) Political

Quarterly Economic Development & Planning



GPGDED,MEC-TEC IGR, MEETING

Proposed alignment of economic development initiatives, strategies and programmes discussions with HOD’s (ED’s) Directors more technical



Econ Development & Planning: Tel: 018 788 9680 Email Address: [email protected]

GPG

INFRASTRUCTURE

DEVELOPMENT,

MEC-MMC IGR

Alignment of

provincial wide and

cross border

infrastructure

programmes. Political

discussion between

MEC-MMC’s (and

HOD’s)

Quarterly Infrastructure

Development

PH: Roads, Stormwater, Public

Works & PMU: CLR G.M. Sello

Tel: 018 788 9962

Email Address:

[email protected]

ED: Ms. MM. Moletsane

Tel: 018 788 9652

Email: [email protected]

[email protected]















GDARD MEC-MMC IGR FORUM

Environmental Conservation, agricultural development programme alignment Political Discussion between MEC-MMC’s (and HOD’s)



Manager: Spatial Planning & Environmental Management: Ms. J. Smit Tel: 018 788 9688 Email Address: [email protected] Agricultural Officer: Mr. R Nkatshela Tel: 018 788 9003 Email Address: [email protected]

GDARD MEC-TEC IGR FORUM

Environmental Conservation, agricultural development programme alignment technical discussion between MEC-HOD’s (and Dir.)



Manager: Spatial Planning & Environmental Management: Ms. J. Smit Tel: 018 788 9688 Email Address: [email protected]

GPG HOUSING MEC-MMC IGR MEETING

Alignment of housing sector, eradication of backlogs and improved service delivery political discussion between MEC-MMC’s (and HOD’s)



Manager: Housing & Administration Mr. L Jofile Tel: 018 788 9686 Email Address: [email protected]

GPG HOUSING MEC-TEC IGR MEETING

Alignment of housing sector, eradication of backlogs and improved service delivery technical discussion between MEC-MMC’s (and HOD’s)



Manager: Housing & Administration Mr. L Jofile Tel: 018 788 9686 Email Address: [email protected]











Delete Directive note once comment is completed - Describe meetings attended by your

municipality to progress issues of mutual interest with neighboring municipalities, provincial

government and national government to address policy and practice matters. Explain the value

obtained from these activities in year 2018/2019.

T 2.3.2

RELATIONSHIPS WITH MUNICIPAL ENTITITIES

The municipality does not have any municipal entities and all functions are managed as part of the core mandate of the municipality in accordance with its Powers and Functions.

Delete Directive note once comment is complete – Explain how your municipal entities take

decisions at the top and how they are held accountable to your municipality and your citizens for the

quantity, quality and value for money of the services they deliver. Refer to policy development,

coordination and monitoring arrangements used to support your entities. A complete list of entities and

delegated functions should be set out in Appendix D.

T 2.3.3

DISTRICT INTERGOVERNMENTAL STRUCTURES

Merafong Local Municipality forms part of the District wide IGR processes and functions taking place in the West Rand District Municipality in terms of the provisions of section 24 of the Act. The District Forum promotes and facilitates Intergovernmental Co-ordination between the West Rand District Municipality and its three neighboring municipalities. The municipality has been an active participant in all the scheduled meetings for the year in review, represented by the Executive Mayor and delegated councilors and officials The Speaker also has been actively involved in the District Forum, the Gauteng Speakers Forum and the SALGA Provincial Governance and IGR forum. Senior officials of the municipality are also participating in the district structures such as the monthly section 80 committees of the respective portfolios.

Delete Directive note once comment is completed - Explain the mechanisms by which relationships

between municipalities within your Municipal District are conducted and specifically how your

municipality benefits from these arrangements – for district and local municipalities

T 2.3.4


COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION

The goal of the Merafong City Local Municipality on Good Governance and Public

Participation is to realize a viable and caring institution that will promote and support a

consultative and participatory local government.

This is in line with the current municipal vision: “A prosperous, sustainable and community

orientated city.” The following section outlines how this has been carried out in Merafong City

Local Municipality.

During the year under review structured consultation sessions were held with all the

communities through the ward based structures during the municipal planning and the

budget process.

The inputs of the community were further followed up during outreach programme by the

Executive Mayor to address community specific challenges

The Public Participation Strategy was adopted by the IDP Steering Committee 2018/19. The

Public Accountability and Participation included the approved schedule of ward councillors

public meetings, community stakeholders meetings and other consultations.The community

benefited immensely on IDP and Budget consultations to submit priorities that made impacts

to their lives. The influential drive for community benefits was also the War Room Ntirhisano

outreach program which encompasses programs for Youth Development, registration and

verification of houses, Social grants and provision of service delivery resolutions.

Note: MSA section 17 (2): requires a municipality to establish and organise its administration

to facilitate a culture of accountability amongst its staff. Section 16 (1): states that a

municipality must develop a system of municipal governance that compliments formal

representative governance with a system of participatory governance. Section 18 (a) - (d):

requires a municipality to supply its community with information concerning municipal

governance, management and development.

Delete Directive note once comment is completed - Provide a brief comment on how your

municipality carries out these responsibilities, improvements made during the year and

benefits derived from these activities during the year.

T 2.4.0


2.4 PUBLIC MEETINGS

COMMUNICATION, PARTICIPATION AND FORUMS

The municipality has a functional communication office and adopted the communication

strategy to coordinate issues through basic media means including municipal website, local

newspaper, local radio, posters, flyers and so forth.

The office of the Speaker is the custodian of community stakeholders through the ward

councillors and ward committees. The existing forums including the Sports Associations,

Faith Based Organisations, Business Forums, People with Disabilities, Military Veterans,

Elderly People and so forth. The schedule of ward councillors public meetings adopted by

the council, the respective portfolios as well adopted schedule of stakeholders meetings.

The municipality enhance the functionality of the forums through the special coordinators for

Moral Regeneration, Youth, Disability programs, Elderly people programs and including

GEYODI coordination reporting at the IGR forum.

The purpose of the meetings ranging from general community development through CDWs,

EPWPs, for Health through community health workers, HIV/AIDS volunteers and clinic

committees, the welfare of people with disabilities and so forth. The purpose of the meetings

are also for the compliance such as IDP and Budget consultation. 2018/19 consultation

implemented across Merafong as per the attached schedule.

Delete Directive note once comment is completed - Include brief examples of public

communication and participatory initiatives employed by your municipality. Ensure that the

reader understands that consultation takes place throughout the year on various issues

including matters raised by members of the community. Make specific reference to the

IDP/Budget and Performance Management Representative forums, timing of meetings,

approximate numbers attending, the purpose of the meetings and the groups usually

represented at each meeting. Indicate methods used to improve the efficiency and

effectiveness of these forums. Explain the use of municipal websites and opinion surveys as

referred to later in this chapter.

T 2.4.1

WARD COMMITTEES

Delete Directive note once comment is completed - Set out the key purposes of ward

committees, the major issues that the ward committee system has dealt with during the year.

Refer to Appendix E which contains further details on ward committee governance and to

Appendix F that contains performance data on a ward by ward basis.

T 2.4.2

Name & the purpose of the meeting

Date of events

Number of participating municipal councillors

Number of participating municipal administrators

Number of community members

Issues raised by community

Issues addressed (yes/no)

Dates & the manner of feedback given to community

IDP/BUDGET CONSULTATION STAKEHOLDERS

Electricity ,water ,housing ,sports facilities, unemployment and crime, sinkholes ,illegal dumping ,street lights , blocked drains &roads.

YES Feedback is provided quarterly through community meetings

IDP/BUDGET CONSULTATION WARD 01

Feedback is provided quarterly through community meetings


24 May 2019

1 1 195 Electricity ,water ,housing ,sports facilities, unemployment and crime, sinkholes ,illegal dumping ,street lights , blocked drains &roads.






IDP/BUDGET CONSULTATION

Feedback is provided quarterly


WARD 05 through community meetings


23 May 2019














1 1 31 Electricity ,water ,housing ,sports facilities, unemployment and

YES Feedback is provided quarterly through

crime, sinkholes ,illegal dumping ,street lights , blocked drains &roads.

community meetings













IDP/BUDGET CONSULTATION

Feedback is provided quarterly


WARD 18 through community meetings






27 May 2019










Feedback is provided quarterly through

T2.4.3

COMMENT ON THE EFFECTIVENESS OF THE PUBLIC MEETINGS HELD:

Through the strategy the municipality could able to consult in various convenient methods to

the community through local newspaper, local radio, flyers by the ward committees, loud

hailing system across stakeholders of the community.

The effectiveness of the public meetings assessed from the recent IDP/Budget consultation

Delete Directive note once comment is completed – Set out the key benefits for the

municipality and the public from the above mentioned meetings.

T 2.4.3.1

community meetings


29 May 2019


Yes Feedback is provided quarterly through community meetings






2.5 IDP PARTICIPATION AND ALIGNMENT

IDP Participation and Alignment Criteria* Yes/No

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

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

Does the IDP have multi-year targets? Yes

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

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

Do the IDP KPIs align to the Section 57 Managers Yes

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

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

Were the indicators communicated to the public? Yes

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

* Section 26 Municipal Systems Act 2000 T 2.5.1

COMPONENT D: CORPORATE GOVERNANCE

OVERVIEW OF CORPORATE GOVERNANCE

The municipality is committed to Good Governance and Ethical administration and has

developed processes and procedures in adherence to corporate governance and ethical

conduct in its operations which is rooted in its core values of Integrity, Accountability,

Commitment, Teamwork, Proactivity and Service Excellence.

The municipality has developed policies and established key supporting structures to

oversee and monitor governance. These structures include an Independent Audit

Committee, Performance Audit Committee and a Risk Management Committee which is

shared in the region in accordance with the Shared Service approach. The municipality has

a functional Municipal Public Accounts Committee (MPAC) that ensures oversight and

directly reports to Council.

The development of an ethical culture in the Administration is a priority and in this regard the

Municipality has participated in the Gauteng Municipal Integrity Project which facilitated a

partnership between the municipality, CoGTA, The Office of the Premier and The Ethics

Institute. This project has benefitted the municipality in many ways, one is that it triggered a

conversation around ethics and ethics management within the institution. The municipality

has also developed an Ethics strategy to enhance ethical conduct with the institution.

During the year in review, BID Committees have been reconstituted after the appointment of

the Municipal Manager and Senior Management Team. Management practices have also

been implemented to ensure compliance to reporting requirements pertaining to financial

reporting and reporting of the Risk Committee and Audit Committee.

Delete Directive note once comment is completed - Please explain in brief the scope of

corporate governance.

T 2.6.0

2.6 RISK MANAGEMENT

RISK MANAGEMENT

Section 62.(1)(c) of MFMA states that “The Municipal Manager of the Municipality is

responsible for managing the financial administration of the municipality, and must for this

purpose take all reasonable steps to ensure that the municipality has and maintains

effective, efficient and transparent systems of financial and risk management and internal

control”

Risk is inherent in all business activities and every official and Councillor of the Municipality

must continuously manage risks within their respective area of responsibility. The Merafong

City Local Municipality (MCLM) recognizes that the aim of Risk Management is not to

eliminate the risk totally but rather to provide the structural means to identify, assess,

manage and monitor the risks involved in all municipal activities. It requires a balance

between the cost of managing risks and the anticipated benefits that will be derived.

Every entity, whether for profit or not, exist to realise value for its stakeholders. Value is

created, preserved, or eroded by management decisions in all activities, from setting

strategy to operating the organisation day-to-day. ERM supports value creation by enabling

management to deal effectively with potential future events that create uncertainty and

respond in a manner that reduces the likelihood of downside outcomes and increases the

upside.

The Enterprise Risk Management Unit is responsible for the coordination of Risk

Management activities in the Municipality and it is accountable to the Accounting Officer.

A risk identification and assessment exercise is undertaken annually in line with the IDP and

SDBIP and the following table lists the five (5) top risks of the municipality for the year under

review. The total number of risks identified in the 2018/19 financial year was 9 risks.

Risk Number

Risk Description Inherent Risk Exposure

Residual Risk Exposure

Risk Category

1. Financial Viability 25 25 Financial Risk


2. Declining local economy 25 20 Economic Risk

3. Ageing, dilapidated infrastructure and capacity of infrastructure to render sustainable services

25 20 Service Delivery Risk

4. Deterioration of the geological conditions

25 25 Environmental Risk

5. Environmental pollution 25 20 Environmental Risk

Risk 1: Financial Viability Financial viability of the municipality has been threatened mainly by the culture of non-payment of services by the community however the Financial Turnaround Priority Plan has been introduced to deal with the recovering all the monies and restoring the financial position of the Municipality. Risk 2: Declining local economy It can be expected that this risk will continue to materialise in the near future given the state of the local economy and reliance on mines for economic boost. Risk 3: Ageing, dilapidated and capacity of infrastructure to render sustainable services This risk has remained inherently and residually high throughout the years and it requires close monitoring . The main contributors to this risk include the issues around the lack of financial resources, maintenance, illegal mining activities etc. As a consequence of materialisation of this risk, the Municipality is experiencing distribution losses of 48% for water in the 2018/19 financial year. The Municipality has committed itself with developing master plans in responding to the risk exposure and progress in terms of implementation is being monitored and reported at the relevant governance structures such as the Risk Management Committee and Audit Committee. Risk 4: Deterioration of the geological conditions The risk has remained high for the Municipality through the years and it will have a major impact to the shortage of land if the action plans identified are not implemented within the stipulated timeframes Risk 5: Environmental Pollution Environmental pollution has remained a high risk for the Municipality and this risk emanates from the illegal dumping by communities, especially in the informal settlements as they are rapidly increasing in the region and other factors that give rise to this risk includes the inadequate sewerage management etc. Management has put action plans to address risk as this risk has a potential to create other risks such as health risk and reputational risk.

Note: MFMA section 62 (i) (c) requires a municipality to have and maintain an effective,

efficient and transparent system of risk management.

Delete Directive note once comment is completed – Explain briefly the need for risk

management (See MFMA section 62 (1) (c) (i)); explain the service department role; and

state the top five risks to the municipality.

T 2.6.1

2.7 ANTI-CORRUPTION AND FRAUD

FRAUD AND ANTI-CORRUPTION STRATEGY The anti-corruption strategy has been developed for Merafong City Local Municipality (MCLM) to give effect to its expressed commitment to fight corruption in the institution. The Anti-Corruption Strategy and the Fraud Prevention Plan have been reviewed in the 2018/19 financial year. The strategy is largely aligned to the Local Government Anti-Corruption Strategy 2016 developed by the Department of Cooperative Governance (COGTA). Merafong has committed to intitutionalise the fight against corruption by implementing initiatives based on the four pillars of: • Prevention • Detection • Investigation; and • Resolution DISCIPLINARY CASES OF FINANCIAL MISMANAGEMENT The municipality had for a while struggled to honor the payment of an external anonymous ethics/fraud hotline service provider which terminated its services. The municipality is exploring other avenues in order to ensure that the hotline channel remains accessible to the community and anyone needing to report unethical conduct. However all the cases reported prior to the issue discussed above, were investigated and closed out.

During this financial year the main investigation for the municipality remains to be the VBS investigation. The investigation is being dealt with by National Treasury and the outcome of the process will be shared with all stakeholders once finalized. On the cases of cahiers the disciplinary procedures are in advanced stage and will be finalized in due course. The risky areas in terms of corruption remain to be in the use of municipal vehicles, abuse of petrol and use of municipal assets for private use. The municipality through the contract with the new bank introduced a card system which will monitor the use of petrol and capture the frequency of the card usage. This on its own serves as a deterrent to the abuse of municipal vehicles. The new appointed security company will enhance processes in order to ensure the safeguarding of municipal assets. This financial year was the final year of a three year partnership the municipality had with The Ethics Institute in relation to ethics management. The municipality has benefited a lot through this project because before this project there was minimal conversation around ethics. The partnership created an opportunity for a certification training which produced an ethics officer for the municipality. Through the workings with The Institute the Municipality


was able to develop an Ethics Management Strategy. Gauteng COGTA will be working directly with the municipality once The Ethics Institute disengages to ensure that the momentum of the work around ethics management is not lost.

Merafong Municipality has a dedicated Fraud hotline which is a tool accessible to any person

wishing to report any witnessed fraud and corruption. All cases reported are followed up with

the relevant department within the municipality and feedback provided to the complainant.

The reports serve at EXCO and Audit Committee meetings for review and noting.

Note: See Chapter 4 details of Disciplinary Action taken on cases of financial

mismanagement (T 4.3.6). MSA 2000 s 83 (c) requires providers to be chosen through a

process which minimizes the possibility of fraud and corruption.

Delete Directive note once comment is completed - Describe in broad terms what

strategies are in place to prevent corruption, fraud and theft. Also indicate key risk areas and

processes put in place as a deterrent – e.g. division of duties, internal audit review of

processes and adherence thereto, Audit Committees that exclude politicians and officials as

voting members, condemnation by mayor and municipal manager of corrupt practices and

involvement of the police as soon as grounds for suspicion become evident. Note that this

information is sensitive; therefore municipalities should not provide names of people involved

in investigations. Please state that your municipality’s Audit Committee recommendations for

year 0 are set out at Appendix G. If your municipality does not have a functioning Audit

Committee then give reasons and describe how this is being addressed.

T 2.7.1

2.8 SUPPLY CHAIN MANAGEMENT

OVERVIEW SUPPLY CHAIN MANAGEMENT

* Municipal Finance Management Act, Act no. 56 of 2003

* Municipal Supply Chain Management Regulations 2005 (amended January 2017)

* Preferential Procurement Policy Framework Act, Act no.5 of 2000

Supply Chain Management is governed by Chapter 11 of the Municipal Finance

Management Act, Act 56 of 2003 – Goods and Services (ss 110 – 120) whereby part 1 –

Supply Chain Management (ss 110 – 119) prescribe that Merafong Municipality must have a

Supply Chain Management Policy to comply with the prescribed framework. The Supply

Chain Management Policy must ensure that there is fairness, equitable, transparent,

competitiveness and cost-effectiveness when procuring goods and services for service

delivery of the Municipality. It also gives guidance on the administrative procedures and

mechanism of how to handle the quotations and tenders from the advertisement to the

award of the bids and is obtained at the best value for money.

The Supply Chain Management unit is a strategic department that ensures support and

implementation of the IDP and SDBIP.

The appointment of the long term contracts for the supply and delivery of materials/goods

and services for general maintenance and other services has yielded positive results, as it

minimises delay in procurement processes and deviations.

The structure of SCM consists of ten (10) positions of which (5) five are vacant and (5) five

are filled with the following personnel:

NAME OF

PERSONNEL

POSITION PAYROLL NO. COMPETENCY

SKILL.

Julia Magongwa Level 1 026112 Completed the CPMD

Jabu Mkhwanazi Level 8 025146 Partially completed

CPMD

Simphiwe Ndolela Level 8 026147 Partially completed

CPMD

Kim Bothma Level 8 025867 Completed the CPMD

Mariska Wakefield Level 9 026149 None

Note: MFMA section 110 - 119; SCM Regulations 2005; and relevant MFMA circulars set out

required processes and guidance manuals to help ensure that SCM arrangements provide

appropriate goods and services, offer best value for money and minimize the opportunities

for fraud and corruption.

Delete Directive note once comment is completed - Provide a brief narrative on the SCM

policies and processes, and indicate improvements contributing to effective service delivery.

Also indicate challenges experienced to attain the standards set out in Section 112 of the

MFMA (see SCM Implementation checklist MFMA Circular 40). Refer to information on long

term contracts which is set out in Appendix H. Explain remedial action being taken to

address these shortfalls. Refer to further comments set out under the Financial Performance

– Chapter 5, Component D.

T 2.8.1

2.9 BY-LAWS

By-laws Introduced during Year 2018/2019

Newly Developed Revised Public Participation

Conducted Prior to Adoption of By-

Laws (Yes/No)

Dates of Public Participation

By-Laws Gazetted* (Yes/No)

Date of Publication

NO NEW BY-LAWS WERE INTRODUCED IN THIS FINANCIAL YEAR

*Note: See MSA section 13. T 2.9.1


COMMENT ON BY-LAWS:

The budget public participation process is used to ensure community participation in the

determination of the published documentation.

Note: MSA 2000 s11 (3) (m) provides municipal councils with the legislative authority to pass

and implement by-laws for the betterment of the community within the terms of the

legislation.

Delete Directive note once comment is completed - Indicate the nature of the public

participation that was conducted and on how the new by-laws will be enforced.

T 2.9.1.1

2.10 WEBSITES

Municipal Website: Content and Currency of Material

Documents published on the Municipality's / Entity's Website Yes / No

Current annual and adjustments budgets and all budget-related documents Yes

All current budget-related policies Yes

The previous annual report (Year 2017/2018) Yes

The annual report (Year 2018/2019) published/to be published Yes

All current performance agreements required in terms of section 57(1)(b) of the Municipal Systems Act (Year 2018/2019) and resulting scorecards

Yes

All service delivery agreements (Year 2018/2019) Yes

All long-term borrowing contracts (Year 2018/2019) Yes

All supply chain management contracts above a prescribed value (give value) for Year 2018/2019

Yes

An information statement containing a list of assets over a prescribed value that have been disposed of in terms of section 14 (2) or (4) during Year 2019/2020

No

Contracts agreed in Year 2018/2019 to which subsection (1) of section 33 apply, subject to subsection (3) of that section

No

Public-private partnership agreements referred to in section 120 made in Year 2018/2019

No

All quarterly reports tabled in the council in terms of section 52 (d) during Year 2018/2019

Yes

T 2.10.1

COMMENT MUNICIPAL WEBSITE CONTENT AND ACCESS:

The municipal website was created by the Municipality’s ICT Section and is hosted inhouse.

The municipal website is available to the community through the libraries in the Merafong City area of jurisdiction. The libraries provide free access to internet for half an hour per user per day. Currently there are 106 computers with internet access and free WI-Fi available at 14 libraries.

Delete Directive note once comment is completed – Refer to the requirement for

Municipal websites as set out in MFMA section 75. Explain plans to address the shortfall in

content. Comment on progress made in placing personal computers in accessible locations

to the public so that Council web based information can be accessed. The municipality

should monitor and report on the use of its website by the public, for example, by measuring

the number of hits on the website.

T 2.10.1.1

2.11 PUBLIC SATISFACTION ON MUNICIPAL SERVICES

PUBLIC SATISFCATION LEVELS Public service delivery complaints increased during the 2018/19 financial year, mainly due to problems experienced with old and aging water infrastructure network, turnaround time for water and sewer complaints due to financial constraints faced by the municipality, across Merafong. Sinkhole formations being the major contributor to the impact of water supply in Carletonville, Khutsong South Extensions and Welverdiend. Complaints ially from business and the community on the refuse removal service has shown an increase due to financial constraints. Delete Directive note once comment is completed - Provide a brief overview of public satisfaction with municipal service delivery.

T 2.11.1


Satisfaction Surveys Undertaken during: Year 2018/2019

Subject matter of survey

Survey method Survey date

No. of people included in survey

Overall satisfaction with:

(a) Municipality

09 Press Releases with regards to Municipal actions during the year under discussion

2018/19

Newspapers / Electronic Media

(b) Municipal Service Delivery

06 Press Enquiries on Municipal Service Delivery failures during the year

2018/19 Newspapers/ Electronic Media

(c) Mayor 05 Media Monitoring/ Press Enquiries on actions by the Executive Mayor during the year.

2018/19 Newspapers/ Electronic Media

Satisfaction with:

(a) Refuse Collection 54 Media Monitoring/ Press Enquiries on Service Delivery failures during the year 67 Call and Contact Centre complaints

2018/19 Newspapers/ Electronic Media/Call and Contact Centre

(b) Road Maintenance 56 Media Monitoring/ Press Enquiries on Service Delivery failures during the year 223 Call and Contact Centre complaints


(c) Electricity Supply 59 Media Monitoring/ Press Enquiries on Service Delivery failures during the year 1760 Call and Contact Centre complaints


(d) Water and Sanitation

176 Media Monitoring/ Press Enquiries on Service Delivery failures during the year 6076 Call and Contact Centre complaints


(e) Information supplied by municipality to the public

0 Website Based Enquiries on Service Delivery failures during the year 46 Facebook Based information on Municipal services 24 Website Based information on Municipal services

2018/19 Website Facebook

(f) Opportunities for consultation on municipal affairs

Community outreach to register community complaints in all areas.

Community Consultation

Concerning T 2.11.2:

Delete Note once table T 2.11.2 is complete - It is not intended that municipalities should

necessarily commission new surveys to complete the above table (T 2.11.2). This material

should be obtained from existing surveys undertaken during year -1 and year 0 and by

analysing complaints and other service feedback. The services specified in the table (a.

Refuse; b. Road Maintenance; c. Electricity; d. Water) are provided for illustration only.

Although they are key services and should be included if data is available, other services

should be included too where data exists. Where future questionnaires are planned then

municipalities should have regard to national priorities; demographic variations; and poverty.

T 2.11.2.1

COMMENT ON SATISFACTION LEVELS:

For the 2018/19 the municipality did not commission any survey. The information contained in the above table is extracted from the Call and Contact Centre and Press Enquiries/Releases.

Delete Directive note once comment is completed – Indicate the efforts that were made

to improve satisfaction levels and to communicate successfully with the public on key issues

of service delivery. It is not intended that municipalities should commission new surveys to

complete the above table (T2.11.2). This material should be obtained from existing survey

undertaken during year -1 and year 0 and by analyzing complaints and other service

feedback. The services specified in the table (a. Refuse; b. Road Maintenance; c. Electricity;

d. Water) are provided for illustration only. Although they are key services and should be

included if data is available, other services should be included too where data exists.

T 2.11.2.2

Municipality | CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 71

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART

I)

INTRODUCTION

Delete Directive note once comment is completed - Provide an overview of the key service

achievements of the municipality that came to fruition during year 0 in terms of the deliverables

achieved compared to the key performance objectives and indicators in the IDP. It is important to give

a multi-year strategic overview on achievement. Give particular attention to your key priorities for

development and where applicable and relevant to your municipality’s priorities refer to basic services,

local economic development health and security and safety services. Provide a brief overview on the

contribution of municipal entities to service delivery. Refer to the functions of the municipality and its

entities (if any) included at Appendix D and the performance table for the Municipal Entities included

at Appendix I. Provide a brief reference to service delivery performance at ward level included at

Appendix F. Kindly also provide a narrative providing information on the staff critical to service

delivery and shortage thereof to accompany an employee table related to a service. Municpalities

should report for employees where cost centers are allocated.

As you go through this Chapter, comment on the contributions made by municipal entities and the

support given to informal settlements, as appropriate.

T 3.0.1

COMPONENT A: BASIC SERVICES

This component includes: water; waste water (sanitation); electricity; waste management; and housing

services; and a summary of free basic services.

INTRODUCTION TO BASIC SERVICES

Water and Sanitation

Electricity

Housing

Waste Management:

The shortage of staff impacts negatively on the rendering of waste management services in which it affects solid waste management finances whereby our personnel work overtime. Illegal dumping is one of the common problems affecting the municipality due to ageing fleet or equipment utilised to clear illegal dumping spots and cleaning illegal dumping is more costly than providing formal waste collection service itself. Removal of illegal dumping is being scheduled and executed monthly with the available limited resources.

Around Fochville and Carletonville CBD`s Street Cleaning/Litter Picking service is been done daily including weekends. In Townships litter picking has been done through CWP. Waste is being collected once a week with kerbside method in the formal household. Businesses around Merafong are also being serviced using the 6m

3 Containers and 240l bins. Additional 3 000

Wheelie bins was procured and 880 bins were distributed to the newly developed areas like, Kokosi Ext 6 and Khutsong Ext 5 to enable the introduction of the waste removal service in the new financial year. There is a drop off facility in Welverdiend and Transfer Station in Fochville for community to dispose their solid waste. They are accessible even on the weekends. Carletonville Landfill site is used for the final and safe disposal of waste in the Municipality. A service provider for operation and maintenance of the landfill site was appointed on month to month basis until the new service provider is appointed as the contract expired on the 30 April 2019. Merafong Waste Recycling Project is a project operating from Fochville Transfer Station and has been formally registered as a Co-operative operated and managed by the local beneficiaries There are 4 National Youth Services (NYS) and 12 Xivuseni programmes beneficiaries who are bringing temporary relieve to staff shortage.

Delete Directive note once comment is completed - Provide brief introductory comments on the pressing need to meeting basic service provisioning standards. Make reference to the use of entities within the municipality to provide for the specific services as discussed in greater detail throughout this chapter.

T 3.1.0


3.1. WATER PROVISION

INTRODUCTION TO WATER PROVISION

A comprehensive evaluation on challenges within the section in terms of the generic procedures and

requirements to provide basic services to the community and to address major water losses was

completed in 2018. The assessment has indicated that Merafong Water and Sanitation does not

comply with any of the minimum requirements in terms of the relevant legislation and procedures

regulating the provision of basic services and infrastructure, leaving Council wide open for legal action

from DWAFF and the Department of Environment Affairs. Furthermore, the situation creates a

negative perception towards Council and officials from the residents, in terms of the following

challenges;

• Water losses as a result of limited maintenance of infrastructure.

• Noncompliance of wastewater effluent.

• Critical vacancies on organigram.

• Insufficient equipment.

• Failing infrastructure as a result of dolomitic activities.

• Project execution.

The evaluation also included recommendations to turn the situation around.

The current situation is unnecessary and can be resolved by prioritizing and investing capacity and

funds into the Water and Sanitation section to comply with its duties and responsibilities to provide

basic water and sanitation to all citizens on a daily and continuous basis and increase revenue by

addressing water losses on behalf of the Council, and to comply with the following legal requirements

and Council responsibilities.

• The Water services Act - Duty and responsibility of Local Council to provide basic water and

sanitation to all citizens within Merafong borders on a daily and continuous basis.

• The Water Act - Duty and responsibility of Local Council to effluent standards at Waste Water

Treatment Plants and the Water Licence issued in terms of the Act

• The Occupational Health and Safety - Everyone has the right to an environment that is not

harmful to their health or wellbeing.

• Finance Management Act – Water losses detrimental to the health of Merafong's revenue

collection

• Municipal Systems Act – The Council of a municipality has the duty to promote a safe and

healthy environment in the municipality.

• Act 95 of 1998 (NHBRC) and SANS 1936 - Requires a Dolomite Risk Management Policy

approved by the Council to be proactive on measures that reduce the vulnerability of

communities

• Relevant SABS and SANS standards on projects and the responsibilities of Consultants to

comply.

Various urgent challenges that needed immediate attention include amongst others the

following;

• Residents are residing on high risk dolomitic areas, while collapsed sewer infrastructure cause

back ponding of sewer in the underground infrastructure, flooding residential areas with raw

sewage.

• Continuous breakage of water infrastructure in the same areas causing further deterioration of

an already high risk dolomitic sub soil conditions.

• Noncompliance to the Merafong Operational Risk Management Strategy for Dolomitic areas to

deal with sewer blockages and water leaks on an immediate basis to reduce vulnerability of

the community.

• Water losses as a result of no maintenance program to reservoir equipment causing

overflowing of reservoirs and back flowing into Rand Water Bulk (RWB) pipes.

• Water losses because of no maintenance to Pressure Reducing Valves (PRV’s), valves, water

meters and control of acceptable water pressures in zones.

• Water losses and noncompliance at WWTP,s due to theft and vandalism of infrastructure

• No or limited water provision in Kokosi high laying areas, Khutsong South, Welverdiend and

some areas of Khutsong North.

• Sewer flooding some areas as a result of limited water provision that densify sewer flow

causing blocked networks.

• Bulk sewer lines in several residential areas blocked because of no maintenance flooding

stands within the lower sewer catchment areas and sensitive wet buffer zones.

• Unacceptable high-water pressures within certain zones resulting in pipe bursts daily.

• Khutsong Ext 3 flooded with sewer

• Vast areas in Khutsong north where internal networks has collapsed and no sewer drainage

exist, internal networks flooded, MH’s are pumped out by Municipal sludge trucks.

• Unacceptable sewer blockages in newly constructed residential areas Khutsong South and

Kokosi Ext 6

• Theft and vandalism of Council’s infrastructure

• Untreated raw sewage draining directly into natural streams, Kokosi Pump station, Wedela

WWTP, Khutsong South WWTP and several bulk sewer lines; Greenspark and Fochville to

Kokosi WWTP and Khutsong Bulk Sewer lines.

• Unacceptable quality of newly completed projects as a result of no involvement of the project

owners in the execution process of projects.

• Critical vacant positions of technicians , and plumbers in Merafong Water section.

• Non-availability of mechanical equipment.

• Unavailability of material to address urgent matters.

The Water and Sanitation section should be prioritized in order to provide basic services to all. The

situation needs urgent and immediate attention. Current knowledge of the problem makes the council,

councilors and officials liable if positive action is not taken. Any delay or failure to take appropriate and

urgent action may impose a legal liability in terms of above.

Investment into this section will reduce water losses of almost 50%, address non compliances and

provide funding for normal maintenance and increase the income of Council.

An estimated amount of R21million is urgently required to address the challenges and will be financed

from existing grand funding, operational budget and business plans to be developed and submitted to

provincial departments

Delete Directive note once comment is completed – Provide brief introductory comments on your

water provision strategy (the balance between supply and demand) and the progress being made to

achieve basic standards for Water Services, with particular reference to progress made by your

municipality in year 0 (including the blue drop status as defined by the department of Water Affairs, top


3 service delivery priorities and the impact you have had on them during the year). Set out measures

taken to improve performance and the major efficiencies achieved by your service during the year.

Indicate how your municipality identifies and responds to those communities that are living in poverty

and are deficient in this basic service. Give the name and extent of service provision of any municipal

entity(ies) responsible for rendering Water Services within the municipality.

T 3.1.1

Total Use of Water by Sector (cubic meters)

Agriculture Forestry Industrial Domestic Unaccounta

ble water losses

2017/2018 6580648 632858 64470 189772 6639325

2018/19

Date

Merafong 2018/2019 Water used per Sector

Units

Residential Business Special Departmental Informal Total

Jul-18 525583.00 52427.00 15436.00 3213.00 162000.00 1 113 009.00

Aug-18 497611.00 72219.00 17533.00 1547.00 162000.00 1 325 685.00

Sep-18 574960.00 64777.00 21717.00 4111.00 162000.00 1 215 164.00

Oct-18 579236.00 97077.00 12882.00 4225.00 162000.00 1 258 321.00

Nov-18 612226.00 64493.00 23532.00 4031.00 162000.00 1 248 602.00

Dec-18 611532.00 66664.00 23625.00 5383.00 162000.00 1 321 840.00

Jan-19 653417.00 62008.00 21275.00 3075.00 162000.00 1 427 663.00

Feb-19 661030.00 81399.00 27929.00 1921.00 162000.00 1 271 243.00

Mar-19 590648.00 54243.00 27338.00 3389.00 162000.00 1 388 799.00

Apr-19 606802.00 63394.00 28883.00 3883.00 162000.00 1 210 647.00

May-19 594767.00 55555.00 15415.00 2734.00 162000.00 1 450 653.00

Jun-19 591887.00 56147.00 22774.00 3714.00 162000.00 1 270 524.00

TOTAL 15 502 150.00

T 3.1.2

0.00

100000.00

200000.00

300000.00

400000.00

500000.00

600000.00

700000.00

Merafong 2018/2019 Units (Kl) Per Sector

Residential

Business

Special

Departmental

Informal

T 3.1.2.1

COMMENT ON WATER USE BY SECTOR:

Delete Directive note once comment is completed - Comment on the above trends, and on more

specific issues concerning water supply and demand as appropriate.

T 3.1.2.2


Water Service Delivery Levels

Households

Description 2015/2016 2016/2017 2017/2018 2018/2019

Actual Actual Actual Actual

No. No. No. No.

Water: (above min level)

Piped water inside dwelling 45 535 35 244 31 367 31 367

Piped water inside yard (but not in dwelling) 35 800 20 286 14 047 14 047

Using public tap (within 200m from dwelling ) 25 787 7 029 18 502 18 502

Other water supply (within 200m) 0 0 2 709 2 709

Minimum Service Level and Above sub-total 107 122 62 559 66 625 66 625 Minimum Service Level and Above

Percentage 100% 99% 100% 100%

Water: (below min level) Using public tap (more than 200m from

dwelling) 0 0 0 0 Other water supply (more than 200m from

dwelling 0 0 0 0

No water supply 0 644 0 0

Below Minimum Service Level sub-total 0 644 0 0

Below Minimum Service Level Percentage 0% 1% 0% 0%

Total number of households* 107 122 63 203 66 625 66 625

* - To include informal settlements T 3.1.3

Households - Water Service Delivery Levels below the minimum

Households

Description 2015/2016 2016/2017 2017/2018 2018/2019

Actual Actual Actual Original Budget

Adjusted Budget

Actual

No. No. No. No. No. No.

Formal Settlements

Total households 66 624 43 683 45 535 38 665 38 665 38 665

Households below minimum service level 0 0 0 0 0 0

Proportion of households below minimum service level 0% 0% 0% 0% 0% 0%

Informal Settlements

Total households 25 787 25 787 27 315 27 315 27 315 27 315

Households ts below minimum service level 0 0 644 644 644 644

Proportion of households ts below minimum service level 0% 0% 2% 2% 2% 2%

T 3.1.4

25

7265

01020304050607080

Proportion of households with access

to water points*

Proportion of households with access

to piped water

Proportion of households receiving 6

kl free#

Access to Water

Year -2

Year -1

Year 0

* Means access to 25 liters of potable water per day supplied within 200m of a household and with a

minimum flow of 10 liters per minute

# 6,000 liters of potable water supplied per formal connection per month T 3.1.5


Service Objectives Year 1

Target Actual Actual

Service Indicators *Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)

Households without minimum water supply Additional Households provided with minimum water supply during the

year (Number of households (HHs) without supply at year end) 100% 93% 100% 100% 99.03% 100% 100% 100%

Improve reliability of water supply Reduce the number of interruptions ( Ints) in supply of one hour or

more compared to the baseline of Year -1 (xxx interuptions of one hour

or more during the yr)

100% 50.22% 30% 30% 43.32% 30% 30% 30%

Improve water conservation Reduce unaccountable water levels compared to the baseline of Year -1

(xxx kilolitres (KLs) unaccounted for during the yr)30% 50.22% 30% 30% 43.32% 30% 30% 30%

Improve water quality Improvement in management of water quaility 100% 98.06% 100% 100% 100% 100% 100% 100%

T 3.1.6

Service Objective xxx

Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the blue water drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for

each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1

Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement

by municipalities in which IDPs play a key role.

Water Service Policy Objectives Taken From IDP

Outline Service Targets Year -1 Year 0 Year 2

Target Target


Year -1

Employees Posts Employees Vacancies (fulltime

equivalents)

Vacancies (as a % of

total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Water Services

Job Level

Year 0

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be

established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days

lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g.

‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.1.7

Financial Performance Year 2018/2019: Water Services

R'000

Details

Year 2017/2018 Year 2018/2019

Actual Original Budget Adjustment Budget

Actual Variance to Budget

Total Operational Revenue 310024 350040 339168 325216 -8%

Expenditure:

Employees 25155 34143 32842 31866 -7%

Repairs and Maintenance 1341 18786 14442 1707 -1001%

Other 281858 304774 317523 365950 17%

Total Operational Expenditure 308354 357703 364807 399523 10%

Net Operational Expenditure -1670 7663 25639 74307 90%

Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual. T 3.1.8


Capital Expenditure Year 2018/2019: Water Services

R' 000

Capital Projects

Year 2018/2019

Budget Adjustment Budget

Actual Expenditure

Variance from

original budget

Total Project Value

Total All 168980 159469 86642 -95%

Replacement of Khutsong Reservoir 55000 56308 21399 -157% 56308

Khutsong North Water and Sewer Reticulation 10000 6145 3765 -166% 10000

Khut Ext 5/6 -Internal Sevices (753 Services Stands) (Phase 5) 52380 24214 26282 -99% 26282

Upgr of Existing Bulk Water Line and Pump station (Kokosi Ext 6) 3766 3713 100% 3766

Kokosi Ext 7 Bulk supply 21336 0

Fochville Reservoir 21336 5456 100% 21336

Pre-Paid meters 10264 0

Adatta Pipeline 20000 20000 8863 -126% 20000

Khutsong Reservoir 1095 1095 100% 1095

Carletonville Reservoir( 007) 18136 10300 100% 18136

Khutsong Water Tower (Chiawelo) 5769 5769 100% 5769

Merafong Bulk Supply 2700 0 2700

Total project value represents the estimated cost of the project on approval by council (including past and future expenditure as appropriate. T 3.1.9

COMMENT ON WATER SERVICES PERFORMANCE OVERALL:

Merafong Bulk Supply

This is a new MIG project for which a technical report was submitted by the Department of Water and

Sanitation in order to finalize the approval of the MIG Business Plan for the project to be implemented

in the 2019/2020 financial year.

Upgrading of Existing Bulk Water Line and Pumpstation (Kokosi Ext 6)

This project was an approved rollover from the 2017/2018 financial year. The site was handed over to

contractor and construction commenced on 3 June 2019. The contractor has entered into agreements

with 4 local subcontractors. The progress was delayed due to landownership confirmations. A land

surveyor was appointed to verify the boundary pegs.

Fochville Reservoir

The turnkey consultant was appointed on 27 March 2019 and the project commenced on 10 May

2019. The progress for the work of the 5Ml reservoir is 15% which entails the 100% completed

earthworks. The contractor has engaged the services of PLMS Consulting (1 subcontractor) that will

be doing steel fixing. The planned completion is on 31 January 2020.

Delete Directive note once comment is completed – Confirm your year 5 targets set out in the IDP

schedule can be attained within approved budget provision and if not then state how you intend to

rectify the matter. Explain any failure to meet performance targets for the current year. Explain the

priority of the four largest capital projects and explain variances from budget for net operating and

capital expenditure. Also explain any likely variation to the total approved project value (arising from

year 0 and/or previous year actuals, or expected future variations).

T 3.1.10

3.2 WASTE WATER (SANITATION) PROVISION

INTRODUCTION TO SANITATION PROVISION


strategy for the provision of Sanitation Services and progress being to redress any shortfall in basic

standards of service provision by 2012 and with particular reference to progress made in year 0

(include your top 3 service delivery priorities and the impact you have had on them during the year).

Set out measures taken to improve performance and the major efficiencies achieved by your service

during the year. Indicate how your municipality identifies and responds to those communities that are

living in poverty and are deficient in this basic service. Give the name and extent of service provision of

any municipal entity(ies) responsible for rendering Sanitation Services within the municipality.

Comment on trends in Sanitation provision as reflected below and on more specific issues concerning

Sanitation Service and demand as appropriate, this should include reporting against the milestones set

out to achieve the green drop status as defined by the Water Affairs department.

T 3.2.1


–

100

200

300

400

500

600

700

800

900

Sanitation/Sewerage: (above minimum level) - Year 1

T 3.2.2

Year -3 Year -2 Year -1

Outcome Outcome Outcome Actual

No. No. No. No.

Sanitation/sewerage: (above minimum level)

Flush toilet (connected to sewerage) 942 600 720 930

Flush toilet (with septic tank) 712 952 502 535

Chemical toilet 535 535 511 601

Pit toilet (ventilated) 124 135 103 100

Other toilet provisions (above min.service level) 13 13 15 11

Minimum Service Level and Above sub-total 2,325 2,236 1,851 2,178

Minimum Service Level and Above Percentage 68.9% 59.9% 55.5% 63.1%

Sanitation/sewerage: (below minimum level)

Bucket toilet 502 952 938 720

Other toilet provisions (below min.service level) 535 535 535 535

No toilet provisions 10 11 12 15

Below Minimum Service Level sub-total 1,047 1,498 1,485 1,271

Below Minimum Service Level Percentage 31.1% 40.1% 44.5% 36.9%

Total households 3,372 3,734 3,336 3,449

T 3.2.3*Total number of households including informal settlements

Sanitation Service Delivery Levels

DescriptionYear 0

*Households

Year -3 Year -2 Year -1

Actual Actual ActualOriginal

Budget

Adjusted

BudgetActual


Formal Settlements

Total households 100,000 100,000 100,000 100,000 100,000 100,000 Households below minimum service

level 25,000 25,000 25,000 25,000 25,000 25,000 Proportion of households below

minimum service level 25% 25% 25% 25% 25% 25%


Total households 100,000 100,000 100,000 100,000 100,000 100,000

Households ts below minimum service 25,000 25,000 25,000 25,000 25,000 25,000 Proportion of households ts below

minimum service level 25% 25% 25% 25% 25% 25%

Households - Sanitation Service Delivery Levels below the minimum

Year 0

Households

T 3.2.4

Description

69

69.5

70

70.5

71

71.5

72

72.5

Proportion of households with access to sanitation

Access to Sanitation

Year -2

Year -1

Year 0

T 3.2.5






Provision of toilets within standard Additional Households (HHs) provided with

minimum sanitation during the year (Number of HHs

remaining without minimum sanitation at year end)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

xxxxx additional

HHs (xxx HHs

remaining)

T 3.2.6

Note: This statement should include no more than the top four priority service objectives, including milestones that relate to the green drop status as set out by the Water Affairs department. The indicators and targets specified above (columns (i) and (ii))

must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the

Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated

Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.

Waste Water (Sanitation) Service Policy Objectives Taken From IDP

Outline Service Targets


Year -1 Year 0 Year 3

Target Target


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Sanitation Services

Job Level

Year 0

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts

must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total

number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by

all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the

accumulated days. T 3.2.7

Financial Performance Year 2018/2019: Sanitation Services

R'000

Details

Year 2017/2018 Year 2018/2019

Actual Original Budget

Adjustment Budget


Total Operational Revenue 39048 49776 51480 56731 12%

Expenditure:

Employees 419


Other 28537 13747 12098 31127 56%

Total Operational Expenditure 31847 33024 27139 32249 -2%


Net Operational Expenditure -7201 -16752 -24341 -24482 32%


Budget Adjustment

Budget

Actual

Expenditure

Variance from

original

budget

Total Project

Value

Total All 16006 16006 16005 0%

Sludge Drying Beds - Kokosi & 16006 16006 16005 0% 16006

Greenspark outfall sewer 10220 3435 100% 10220

Linkage of the old outfall sewer 5000 2352 100% 5000

Khutsong Ext 2 (Skopas) 3034 3034 100% 3034

Khutsong Mzwanzwa Street 15197 12965 100% 15197

Onyx Street Bulk Sewer Pipeline 4233 4189 100% 4233

T 3.2.9

Capital Expenditure Year 2018/2019: Sanitation Services

R' 000

Capital Projects

Year 2018/2019

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

past and future expenditure as appropriate.

COMMENT ON SANITATION SERVICES PERFORMANCE OVERALL:

Sludge Drying Beds – Kokosi

Project commenced on 28 May 2018 and was planned to be completed on 18 November but only reached practical completion on 30 June

2019. The PMU submitted and AFA to MIG requesting additional funds to compete the project.The contractor encountered difficulty with pipe

supplies and entered into and agreement with an alternative supplier. 16 Local Labour attended accredited training courses and was issued

with certificates.

Greenspark Outfall Sewer

The project Commenced on 29 May 2019 with a planned construction period of 8 Months. The contractor entered into agreements with 4

Subcontractors to complete Excavations and Manholes. Delays was encountered due to subcontractor disputes that was resolved through

political intervention. Construction progress is 10%

Linkage of old Outfall Sewer Line and Manholes Kokosi Ext 7

The consultant was appointed on 11 December 2018. The consultnats appointment was ammended to a turnkey on 19 Mach 2019. The 35%

Construction progress is due to challenges encountered with dilapidated existing services and undergound water seepage. 3 Subcontractors

have been appointed to assist with pipelaying and safety and security on site. Scheduled completion is planned for 28 October 2019.

Delete Directive note once comment is completed - Explain the priority of the four largest capital projects and explain variances from budget

for operating and capital expenditure. Confirm your year 5 targets set out in the IDP schedule can be attained within approved budget provision

and if not then state how you intend to rectify the matter. Explain the priority of the four largest capital projects and explain variances from

budget for net operating and capital expenditure. Also explain any likely variation to the total approved project value (arising from year 0 and/or

previous year actuals, or expected future variations).

T 3.2.10

3.3 ELECTRICITY

INTRODUCTION TO ELECTRICITY

The Municipality provides Electricity to its area of jurisdiction through its license from the Energy Regulator of South Africa. There are areas

within the municipality that are licensed to Eskom such as the Mining Houses, the farms in the urban edge as well as the Old Khutsong

Township.

The provision of electricity services is in terms of provision of the following:

1. Bulk Supply

2. Medium and High voltage distribution network


3. Low Voltage and customer connections

4. Metering and monitoring

The thrust of the strategy for the year under review was the extension of services to the newly developed areas of Kokosi and Khutsong South

Extensions. The provision of services to the informal settlements also commenced in 2017/18 with a long term plan for the next five years.

Maintenance and infrastructure renewal plans were also revised to plan for the next 3 – 5years. Public Lighting new and existing shall also be

the main focus for the next financial year of 2018/19.

The 2018/19 financial year was mostly dedicated to the planning and re-configuration of priorities according to the previous and current

development plans. The re-prioritisation was largely informed by the developments that were under-way or in inception stage.

The Welverdiend Corridor that includes the Khutsong South Extension as well as the Elijah Barayi Housing Development was given extensive

attention. The Kokosi Extension 6 & 99 Electrification project is still being rolled-out on a multi-year basis with the expected completion in the

2020/21 financial year.

Fochville Extension 8 as an additional capacity requirement necessitated the re-design of the Bulk Supply between Eskom and the Municipality.

Note: Recent legislation includes the Electricity Amendment Acts 1989; 1994; 1995; and the Electricity Regulation Act 2006.

Delete Directive note once comment is completed – Provide brief introductory comments on your strategy for the provision of electricity at

household level and the progress being made to redress service backlogs and achieve the National basic standard for Electricity provision by

2014 (include your top 3 service delivery priorities and the impact you have had on them during the year). Set out measures taken to improve

performance and the major efficiencies achieved by your service during the year. Discuss the major successes achieved and challenges faced

in year 0. Indicate how your municipality identifies and responds to those communities that are living in poverty and are deficient in this basic

service. Give the name and extent of service provision of any municipal entity(ies) responsible for rendering Electricity Services within the

municipality.

T 3.3.1

0-Jan-00

8-Sep-13

18-May-27

24-Jan-41

3-Oct-54

11-Jun-68

1

Electricity

2016/2017 2017/2018 2018/2019 2016/2017 2017/2018 2018/2019

T3.3.2


Electricity Service Delivery Levels

Households

Description

2015/2016 2016/2017 2017/2018 2018/2019


No. No. No. No.

Energy: (above minimum level)

Electricity (at least min.service level)

6 050 6 095 6 416 6 506

Electricity - prepaid (min.service level)

20 147 21 097 21 097 22 463

Minimum Service Level and Above sub-total

26 197 27 192 27 513 28 969

Minimum Service Level and Above Percentage

102% 104% 100% 100%

Energy: (below minimum level)

Not applicable. All households provided with full level of service




Electricity (< min.service level)

Electricity - prepaid (< min. service level)

- - - -

Other energy sources 0 0 0 1

Below Minimum Service Level sub-total

Not applicable Not applicable Not applicable

Not applicable

Below Minimum Service Level Percentage

Total number of households

25 610 26 197 27 513 28 969

T 3.3.3

Households - Electricity Service Delivery Levels below the minimum

Households

Description

2015/16 2016/17 2017/18 2018/19


Adjusted Budget

Actual


Formal Settlements

Total households 26201 25610 27192 27763 27513 27513

Households below minimum service level

0 0 0 0 0 0

Proportion of households below minimum service level

0 0 0 0 0 0


Total households 0 0 0 0 0

Households ts below minimum service level

0 0 0 0 0 0

Proportion of households ts below minimum service level

0 0 0 0 0 0

T 3.3.4


Electricity Service Policy Objectives Taken From IDP

Service Objectives Outline Service Targets

2015/2016 2016/2017 2017/2018 2018/2019

Target Actual Target Actual Target

Service Indicators

*Previous

Year

*Previous

Year *Current

Year

*Current Year

*Current Year

*Following Year



Provision of minimum supply of electricity

Additional households (HHs) provided with minimum supply during the year (Number of HHs below minimum supply level)

1800 564 1200 1200 820 321 853 1535

Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.

T 3.3.5


Employees: Electricity Services

Job Level

2017/2018 2018/2019

Employees Posts Employees Vacancies (fulltime equivalents)

Vacancies (as a % of total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 6 11 5 6 55%

7 - 9 16 27 18 9 33%

10 - 12 39 64 32 32 50%

13 - 15 4 30 6 24 80%

16 - 18 0 0 0 0 0%

19 - 20 0 0 0 0 0%

Total 66 133 62 71 53%

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.3.6

R'000

Details

2017/2018 2018/2019


Adjustment Budget



Expenditure:

Employees 30109 35583 33945 32542 -9%


Other 237158 303552 350673 294513 -3%


Net Operational Expenditure 16759 22274 62666 77632 71%



Capital Expenditure Year 2018/2019: Electricity Services

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 16000 20344 12162 -32%

Kokosi Ext 99 Electrification 6000 4822 4822 -24% 6000

Kokosi Ext 6 Electrification 10000 5178 6597 -52% 10000

Khutsong South Ext5/6 electrification 10344 743 100% 10344


COMMENT ON ELECTRICITY SERVICES PERFORMANCE OVERALL:

Challenges in the overall maintenance of the network resulted in most key performance indicators of

the year underperforming. The servicing of public lighting, the roll-back of losses targets were under-

achieved for the year. Revised charters for the next financial year were put in place to address these

gaps.

The following projects were implemented in the year under review:

• Kokosi Ext 6 Electrification (network only)

• Kokosi Ext 99 Electrification

• Khutsong South Extensions Electrification Phase 6

• Fochville Bulk Supply Phase 2

Kokosi Ext 99 Electrification

The construction commenced on 17 July 2018 and the revised completion was planned for 30 June

2019. 2 Local subcontractors has been appointed for the installation of house connections. Project is

73% complete but has been suspended due to non-payment to the contractor due to funding

constrains encountered by the municipality. Contractor experienced delays due to community

disruptions.

Kokosi Ext 6 Electrification

The 9month contract commenced on 27 November 2017. The contractor entered into agreements with

6 local subcontractors. A dispute with the DoE with regards to the R 6 000 000 allocation stoppage

lead to the suspension of works due to non payment to the contractor. The progress stand at 78%

Project performance was overall achieved with expenditure and key milestones achieved in the

2018/19 financial year.

Delete Directive note once comment is completed – Explain the priority of the four largest capital

projects and explain variances from budget for operating and capital expenditure. Confirm your year 5

targets set out in the IDP schedule can be attained within approved budget provision and if not then

state how you intend to rectify the matter. Explain the performance on agreements reached with

ESKOM if not already covered. Explain the priority of the four largest capital projects and explain

variances from budget for net operating and capital expenditure. Also explain any likely variation to the

total approved project value (arising from year 0 and/or previous year actuals, or expected future

variations).

T 3.3.9

3.4 WASTE MANAGEMENT (THIS SECTION TO INCLUDE: REFUSE COLLECTIONS,

WASTE DISPOSAL, STREET CLEANING AND RECYCLING)

INTRODUCTION TO WASTE MANAGEMENT

Carletonville Landfill Site Phase 2: The project on installation of the boundary fence, lights, revamping of offices and guard house at the landfill site to improve further the compliance of the site was completed and handed over to municipality. The compliance of landfill site improved from 50% to 81.60%. Construction of Carletonville Waste Management Depot:

Delete Directive note once comment is completed – Provide brief introductory comments on the

actions being taken to achieve the National standard for weekly Refuse Collection from every

household by 2012 and discuss the major successes achieved and challenges faced in year 0.

Discuss briefly progress made with waste disposal, street cleaning and recycling. Set out your top 3

service delivery priorities and the impact you have had on them during the year. Explain the measures

taken to improve performance and the major efficiencies achieved by your service during the year.

Indicate how your municipality identifies and responds to those communities that are living in poverty

and are deficient in this basic service. Give the name and extent of service provision of any municipal

entity(ies) responsible for rendering Refuse Services within the municipality.

T 3.4.1


Solid Waste Service Delivery Levels

Households

Description 2015/2016 2016/2017 2017/2018 2018/2019


No. No. No. No.

Solid Waste Removal: (Minimum level)

Removed at least once a week 30 060 31 448 31 391 54 507

Minimum Service Level and Above sub-total 30 060 31 448 31 391 54 507

Minimum Service Level and Above percentage 35.9% 37.0% 47.5% 50.4%

Solid Waste Removal: (Below minimum level)

Removed less frequently than once a week 0 0 1 200 0

Using communal refuse dump 13 413 13 413 432 13 413

Using own refuse dump 53 645 53 645 33 502 53 645

Other rubbish disposal 53 645 53 645 33 502 53 645

No rubbish disposal 53 645 53 645 33 502 53 645

Below Minimum Service Level sub-total 53645 53645 34702 53645

Below Minimum Service Level percentage 64.1% 63.0% 52.5% 49.6%

Total number of households 83 705 85 093 66 093 108 152

T 3.4.2

Households - Solid Waste Service Delivery Levels below the minimum

Households

Description

2015/2016 2016/2017 2017/2018 2018/2019


Adjusted Budget

Actual


Formal Settlements

Total households 30 060 31 448 32 591 54 507 54 507 54 507 Households below minimum service level 5 000 2 164 1 200 1 280 1 280 1 280

Proportion of households below minimum service level 17% 7% 4% 2% 2% 2%


Total households 67 058 67 058 35 132 67 058 67 058 67 058 Households ts below minimum service level 48 645 53 645 432 53 645 53 645 53 645

Proportion of households ts below minimum service level 73% 80% 1% 80% 80% 80%

T 3.4.3


Waste Management Service Policy Objectives Taken From IDP

Service Objectives Outline Service Targets 2016/17 2017/18 Year 2018/19

Year 2018/19

Target Actual Target Actual Current Year

Service Indicators


Provision of weekly collection service per household (HH)

Proportionate reduction in average weekly collection failures year on year (average number of collection failures each week)

100% 93.12% 100% 100% 92.31% 100% 96% 100%

Future capacity of existing and earmarked (approved use and in council possession) waste disposal sites

The amount of spare capacity available in terms of the number of years capacity available at the current rate of landfill usage

14yrs 14yrs 14yrs 13yrs 13yrs 13yrs 42yrs 42yrs

Proportion of waste that is recycled

Volumes of waste recycled as a percentage of total volume of waste disposed of at landfill sites.

10% 9.34% 10% 20% 24.93% 25% 21.63% 25%

Proportion of landfill sites in compliance with the Environmental Conservation Act 1989.

x% of landfill sites by volume that are being managed in compliance with the Environmental Conservation Act 1989.

0% 18.70% 0% 100% 50% 80% 81.60% 81.60%

Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role. T 3.4.4


Employees: Solid Waste Management Services

Job Level

2017/2018 2018/2019


equivalents)


No. No. No. No. %

0 - 3 0 5 0 5 100%

4 - 6 1 11 1 10 91%

7 - 9 18 38 18 20 53%

10 - 12 1 1 1 0 0%

13 - 15 106 211 103 108 51%

Total 126 266 123 143 54%

T3.4.5

Employees: Waste Disposal and Other Services

Job Level

Year -1 Year 0


equivalents)


No.

No. No. No. %

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T3.4.6

Financial Performance Year2018/2019: Solid Waste Management Services

R'000

Details

Year 2017/2018 Year 2018/2019

Actual Original Budget Adjustment Budget



Expenditure:

Employees 30513 35281 31875 32601 -8%

Repairs and Maintenance 685 0 685 100%

Other 33363 35101 26842 40750 14%


Net Operational Expenditure -595 -21316 -31239 5115 517%


Year 2017/2018

Actual Original Budget Adjustment

Budget

Actual Variance to

Budget

Total Operational Revenue

Expenditure:

Included in Waste Management Services

Total Operational Expenditure

Net Operational Expenditure

T 3.4.8

Financial Performance Year 2018/2019: Waste Disposal and Other Services

R'000

Details

Year 2018/2019

Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the

difference between the Actual and Original Budget by the Actual.

Included in Waste Management Services


Budget Adjustment

Budget

Actual

Expenditure

Variance from

original

budget

Total Project

Value

Total All 17373 17727 17727

Construction of Carletonville

Waste Management Depot 16273 14696 14696 90% 1860433Rehabilitation of Rooipoort

Landfill Site 1100 3031 3031 276% 1501686

T 3.4.9

Capital Expenditure Year 2018/2019: Waste Management Services

R' 000

Capital Projects

Year 2018/2019

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

past and future expenditure as appropriate.

COMMENT ON WASTE MANGEMENT SERVICE PERFORMANCE OVERALL: Carletonville Landfill Site Phase 2: The project on installation of the boundary fence, lights, revamping of offices and guard house at the landfill site to improve further the compliance of the site was completed and handed over to municipality. The compliance of landfill site improved from 50% to 81.60%. Construction of Carletonville Waste Management Depot: Construction of Carletonville Waste Management Depot was completed and handed over to municipality on the 26

th October 2018. The budget of R56.5 million was allocated to provide the

conducive office accommodation and ablutions for the Solid Waste department employees. Delete Directive note once comment is completed –Explain the priority of the four largest capital projects and explain variances from budget for operating and capital expenditure. Confirm your year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not then state how you intend to rectify the matter. Explain the priority of the four largest capital projects and explain variances from budget for net operating and capital expenditure. Also explain any likely variation to the total approved project value (arising from year 0 and/or previous year actuals, or expected future variations).

T 3.4.10

3.5 HOUSING

INTRODUCTION TO HOUSING

The eradication of informal settlements through the implementation of human settlement projects is defined in the Municipal Housing Plan. The Municipality however does not have control over the approval of the projects by Provincial Department of Human Settlements which carries the mandate for human settlement development and allocation of budgets. The following map indicates the informal settlements around Merafong:

Taken the above mentioned into consideration the Municipality had to provide not only housing but infrastructure as well for current and future housing projects.

Merafong City LM is on a push to decrease its housing backlog through the following programmes: 1. Provision of services which include water and sanitation 2. Provision of houses 3. Provision of tittle deeds to beneficiaries Through the delivery of the above programmes we are ensuring a sustainable communities and creating jobs and capacitation of local SMME’s. Merafong City LM has committed to continue improving the quality of life and the dignity of the people through our partnership with Gauteng Department of Human Settlement.

Funding through Urban Settlement Development Grant which included the Distress Mining Allocation has enabled the Municipality to deliver on its mandate. Over the (MTREF) the following housing related infrastructure projects have been implemented through the Mining Town Allocation in this regard for 2018/19.


Greenspark Outfall Sewer Line :22% completed Fochville Reservoir :20% completed Linkage of the old Outfall Sewer Line and Manholes :35% completed Khutsong South Ext. 5 & 6 Electrification :20% completed The following factors have impacted negatively on the delivery of the projects during the 2018/19 financial year: 1. The late signing of the funding agreement by the Gauteng Department of Human Settlements

resulted in late transfer of funds in November 2018; 2. The procurement process for the appointment of Consulting Engineers for the projects was then

concluded in December 2018; 3. Planning and designs for all the above mentioned projects had to be drafted which also delayed

the projects; Progress has been made in the construction of top structures in the following projects: 1. Elijah Barayi 2. Khutsong South Ext. 5 & 6 3. Kokosi Ext. 6 Elijah Barayi: The Gauteng Department of Human Settlement in collaboration with the Housing Development Agency is the Developer in the Elijah Barayi housing project. This development is planned as a mixed housing development to be integrated with the Khutsong development and will yield 12491 units. This is in line with the pillars for Radical Transformation to modernise human settlements in the Province. The development will consist of the below listed number of residential units and types. Social amenities such as schools, places of worship, and recreational areas etc. has been incorporated into the development. BNG: Low Cost - 5000 Social Housing Units - 2000 Community Rental Units - 1000 FLISP - 1000 Bonded above R700k - 2831 This development will not only assist in the housing demand in Merafong City but also with the bulk infrastructure which is constructed for the development such as a 13.4 Ml reservoir and the 8.6 km pipeline to feed the development.

The development have presently 3855 serviced stands and 1601 foundations completed. The first floor wall plates have 626 completed and the send floor have 325 wall plates completed. There are 791 completed units. Khutsong South Ext. 5 & 6: Internal Services During the 2017/18 financial year the construction of 753 internal services were completed in Khutsong South Ext. 5 & 6. Top Structures: During the 2017/18 financial year the construction of 500 top structures (Phase II) in Khutsong South as planned in this area started. Presently the Municipality have 343 foundations completed, 265 units at roof level and 150 completed top structures. Kokosi Ext. 6 The Kokosi Ext. 6 housing project are developed through the Gauteng Department of Human Settlement. The project is in the final stage of completion with 1785 top structures completed and the remaining 353 near completion. All human settlement projects are implemented through labour intensive construction methods to maximise local employment. During the span of the projects 21 small contractors have been employed which was sourced through the Municipality’s supplier database. This contributed to job creation and economic development. Sinkhole Formation: During the 2018/19 financial year the Municipality experienced some sinkhole formations that resulted in the evacuation of families from their properties. The municipality had to provide alternative accommodation to the effected families. Some of the affected families have been allocated houses in Khutsong South Ext. 4. The remaining will be accommodated in the new Khutsong South Ext. 5 & 6 project along with Khutsong Ext. 3 residents.


Informal Settlements: The section in collaboration with Eskom started with the registration, mapping, and relocation of the following informal settlements in Khutsong for the electrification programme. 1. Chris Hani 2. Rest in Peace 3. B-Section A total of 2 685 people have been registered in this financial year on the Municipality’s database and 762 have been included into the electrification programme. Blyvooruitzicht: The National Department of Human Settlement appointed the Housing Development Agency to conduct a geo-technical study to determine the stability and sustainability of the area. Engagements with the community to determine the future of the area are in final stages. New Housing Applications: All housing applications received are captured within seven days as per SDBIP. The target for this indicator was 100% achieved for the 2018/19 financial year with the 856 applications captured on the database . Provision of Tittle deeds issued to beneficiaries: In 2018/19 the Municipality was able to issue 659 tittle deeds to the rightful owners. Delete Directive note once comment is completed – Provide brief introductory comments on your strategy for the provision of housing and explain the actions being taken to redress service backlogs and deliver basic housing provision to the national standard. Make particular reference to the successes achieved and challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had on them during the year). Set out measures taken to improve performance and the major efficiencies achieved by your service during the year. Indicate how your municipality identifies and responds to those communities that are living in poverty and are deficient in this basic service. Give the name and extent of service provision of any municipal entity(ies) responsible for rendering Housing Services within the municipality. T3.5.1

Percentage of households with access to basic housing Year end Total households

(including in formal and informal settlements)

Households in formal settlements

Percentage of HHs in formal settlements

2015/2016 69044 53559 77,6%

2016/2017 69044 53911 78,1%

2017/2018 70839 55312 78,1%

2018/2019 70839 55312 78,1%

T 3.5.2


Housing Service Policy Objectives Taken From IDP Service Objectives Outline Service Targets Year 2016/17 Year 2017/18 Year 2018/19

Actual Actual Target

Service Indicators Previous Year Present Year *Following Year

(i) (ii) (x) (x)

Service Objective: Provision of housing

Provision for housing for all households Additional houses provided during the year (Houses required at year end)

additional houses houses required)

additional houses (houses required)

additional houses (houses required)

Human Settlement Management

Additional houses provided during the year (Houses required at year end)

352 0 Houses

(500 Serviced Stands)

0 Houses ( 753 Serviced

Stands)

New Housing Applications Capture New applications captured 1067 868 856

Mixed Housing Projects facilitated Facilitated mixed housing projects 2 7 6

Number of Informal Settlements registered Number of Informal Settlements registered 0 1787 2685

Occupancy rate of community rentals Occupancy rate of community rentals 95% 95% 95%

Number of Tittle Deeds submitted for registration Number of Tittle Deeds submitted for registration 6189 1289 659

Faciliation of Social Housing Projects in each restructuring zones as proclaimed

Faciliation of Social Housing Projects in each restructuring zones as proclaimed 0 3 2

T3.5.3


Employees: Housing Services

Job Level

2017/2018 2018/2019


equivalents)

Vacancies (as a % of total

posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 2 3 2 1 33%

7 - 9 8 15 8 6 40%

10 - 12 0 0 0%

13 - 15 1 4 1 3 75%

Total 12 23 12 10 43%


Financial Performance 2018/19 : Housing Services

Details

2018/19 2018/19


Adjustment Budget


Total Operational Revenue 107 237 125 125 95 -32%

Expenditure:

Employees 4994736 5243296 5915644 4994736 -5%

Repairs and Maintenance

Other 0 38382 38382 0 100%


Net Operational Expenditure 5981 5307723 5307723 4995890 -6%

Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual and Original Budget by the Actual.

T 3.5.5

Capital Expenditure 2018/19 : Housing Services

R' 000

Capital Projects

2018/19


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 46900 83453 95439 110% 143401

Khutsong South Ext. 5/6 (753 Services & 500 T/structure 0 79687 79687 100% 91201

Mining Town Allocation 46900 3766 15752 31% 52200

T 3.5.6

COMMENT ON THE PERFORMANCE OF THE HOUSING SERVICE OVERALL:




state how you intend to rectify the matter. Explain the priority of the four largest capital projects and

explain variances from budget for net operating and capital expenditure. Also explain any likely

variation to the total approved project value (arising from year 0 and/or previous year actuals, or

expected future variations).

T 3.5.7

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT

INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT

Qualifying Indigents were verified through the ongoing indigent harvesting programme. During the year

in review, a total of 1943 households were registered in the Council Indigent register. Free basics

services package was provided as contained in the Council Indigent Policy.

The indigent households are provided free basic services in the following:

Water: 6kl monthly

Electricity: 50kw monthly

Refuse: waste removed at least once a week

Sanitation: free minimum level

Delete Directive note once comment is complete – Provide brief introductory comments on the

progress being made to achieve Free Basic Services and summarise your municipality’s policies

towards indigent support.

T 3.6.1


–

10

20

30

40

50

60

70

80

90

100

Year -3 Year -2 Year -1 Year 0

Hous

ehol

ds ('

000)

Free Basic Household Services

Water (6 kilolitres per household per month)

Sanitation (free minimum level service)

Electricity/other energy (50kwh per household per month)

Refuse (removed at least once a week)

Data sourced from MBRR A10

T 3.6.2

Free Basic Services To Low Income Households

Number of households

Total

Households earning less than R1,100 per month

Free Basic Water Free Basic Sanitation

Free Basic Electricity

Free Basic Refuse

Total Access % Access % Access % Access %

2016-2017 3 493 3 493 3 493 100% 3 493 100% 3 493 100% 3 493 100%

2017-2018 2 251 2 251 2 251 100% 2 251 100% 2 251 100% 2 251 100%

2018-2019 2 511 2 511 2 511 100% 2 511 100% 2 511 100% 2 511 100%

T 3.6.3

Financial Performance Year 2018/2019: Cost to Municipality of Free Basic Services Delivered

Services Delivered 2017/2018 Year 2018/2019

Actual Budget Adjustment Budget


Water 1376 5037 5037 783 -543%

Waste Water (Sanitation) 1187 6178 6178 893 -592%

Electricity 1694 8000 8000 932 -758%

Waste Management (Solid Waste) 2119 17780 17780 1795 -891%

Total 6376 36995 6755 4403 -740%

T 3.6.4






Provision of alternative support to low income households

that do not receive all Free Basic Services

Low income households (LIHs) who do not receive all the free basic

services but do receive alternative support (Total number of LIHs not

in receipt of free basic services)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

xxxx LIHs receiving

support (out of xxx

LIHs in total)

T 3.6.5


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. * 'Previous Year' refers to

the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable within approved budget provision. MSA 2000

chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.

Free Basic Service Policy Objectives Taken From IDP


Target Target


COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT:

An Indigent After care programme has been developed for efficient monitoring and to ensure that all

beneficiaries have access to the support packages as provided in the Council Indigent register. Debt

write-of and provision of Indigent support was maintained to all verified and qualifying indigents.

Consumption control of indigent services remains a concern as installation of prepaid and restrictive

devices is disabled by Council financial constraints

Delete Directive note once comment is completed – Comment on the support given to low earners

and in particular those affected by shortfalls in basic service provision. Provide detail of indigent

policy, expenditure and grants received in year 0 and explain how these have been translated into

programmes designed to improve levels of self sufficiency.

T 3.6.6

COMPONENT B: ROAD TRANSPORT

This component includes: roads; transport; and waste water (stormwater drainage).

INTRODUCTION TO ROAD TRANSPORT

Delete Directive note once comment is completed - Provide brief introductory comments on the

strategy, priorities and provision regarding road development and maintenance and transport including

public bus services.

T 3.7

3.7 ROADS

INTRODUCTION TO ROADS

Delete Directive note once comment is completed – Explain in brief your Roads strategy, the steps

taken towards the implementation of the strategy and discuss the major successes achieved and

challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had

on them during the year). Set out measures taken to improve performance and the major efficiencies

achieved by your service during the year. Refer to support given to those communities that are living in

poverty. Give the name and extent of service provision of any municipal entity(ies) responsible for

rendering Roads Services within the municipality.

T 3.7.1

Gravel Road Infrastructure Kilometers

Total gravel roads New gravel roads constructed

Gravel roads upgraded to tar

Gravel roads graded/maintained

Year 2016/2017 175 0 3 253

Year 2017/2018 175 0 3.1 126

Year 2018/2019 197 22 8.5 102.25

T 3.7.2

Cost of Construction/Maintenance

R' 000

Gravel Tar

New Gravel - Tar Maintained New Re-worked Maintained

Year 2016/2017 PMU PMU 385 339 0 0 1 541 356

Year 2017/2018 0 0 0- 0 0 0

Year 2018/2019 0 1 100 00 400 000 1 100 000 0 766 100

T 3.7.4

Tarred Road Infrastructure

Kilometers

Total tarred roads

New tar roads Existing tar roads

re-tarred Existing tar roads

re-sheeted Tar roads maintained

Year 2016/2017 371 2.5 0 0 2 333

Year 2017/2018 374.1 3.1 0 0 0.5

Year 2018/2019 382.6 8.5 0 0 1.1

T 3.7.3


0

500000

1000000

1500000

2000000

2500000

Year -2 Year -1 Year 0

Ran

d V

alu

eRoad Infrastructure costs

Gravel New

Gravel - Tar

Gravel - Maintained

Tar - New

Tar Re-worked

Tar Maintained

T 3.7.5


Road Service Policy Objectives Taken From IDP Service Objectives

Outline Service Targets

Year 2016/2017 Year 2017/2018 Year 2018/2019

Year 3


Service Indicators

*Previous Year *Previous Year *Current Year

*Current Year

*Current Year

*Following Year



Elimination of gravel roads in townships

Kilometers of gravel roads tarred (Kilometers of gravel road remaining)

2.5 KM gravel roads tarred (178 KM gravel roads remaining)

0 KM gravel roads tarred (174.9 KM gravel roads remaining)

0 KM gravel roads tarred (174.9 KM gravel roads remaining)

3.1KM gravel roads tarred (193.8KM gravel roads remaining)

3.1KM gravel roads tarred (193.8 KM gravel roads remaining)

Baseline (193.8 KM gravel roads remaining)

8.5 KM gravel roads tarred (185.3 KM gravel roads remaining)

8.5 KM gravel roads tarred (185.3 KM Gravel roads remaining)

Development of municipal roads as required

2.5 KM of municipal roads developed 2.5 KM 0 KM 0 KM 3.1 3.1 KM 8.5 KM 8.5 KM 8.5 KM

T 3.7.6


Financial Performance Year 2018/2019: Road Services

R'000

Details

Year 2017/2018 Year 2018/2019


Adjustment Budget



Expenditure:

Employees 6996 9017 7157 8389 -7%


Other 0 354 158 185 0%




Employees: Road Services

Job Level

Year 2017/2018 Year 2018/2019


equivalents)


No. No. No. No. %

.

0 - 3 1 1 1 0 0%

4 - 6 2 3 2 1 33%

7 - 9 3 8 4 4 50%

10 - 12 5 15 7 8 53%

13 - 15 13 15 14 6 40%

16 - 18 2 21 11 10 48%

19 - 20 0 30 17 13 43%

Total 26 93 52 42 45%

T3.7.7

Capital Expenditure Year 2018/2019: Road Services

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure

Variance from original

budget

Total Project Value

Total All 14638 14638 4803 -205%

Khutsong Roads and Stormwater 5700 5700 3890 -47% 5700

Kokosi Roads and Stormwater 938 938 96 -877% 938

Wedela Ext 3 Roads and Stormwater 6000 6000 817 -634% 6000

Kokosi Ext 6 Construction of Roads 2000 2000 0 2000


COMMENT ON THE PERFORMANCE OF ROADS OVERALL:

Kokosi Roads and Stormwater (Phase 3) and Kokosi Ext 6 Construction of Roads

The consultant was appointed on 12 December 2018 and the appointment was amended to a turnkey.

The construction of the 244m road commenced on 24 June 2019 and the construction progress

achieved was 24%. Delays encountered were due to the identification of suitable subcontractors for

the installation of Stormwater and kerb installations. Contractor vacated the site due to continued

disruptions.

Delete Directive note once comment is completed - Explain the priority of the four largest capital



state how you intend to rectify the matter. Explain the priority of the four largest capital projects and

explain variances from budget for net operating and capital expenditure. Also explain any likely


expected future variations). Where provincial roads have been delegated to your municipality ensure

that this is presented as an additional major issue in this section.

T 3.7.10

3.8 TRANSPORT (INCLUDING VEHICLE LICENSING & PUBLIC BUS OPERATION)


INTRODUCTION TO TRANSPORT

This component includes Motor Vehicle Registration Authority (MVRA), Vehicle Testing Centre (VTS) as well as Driving License Testing Centre (DLTC). It includes issuing of vehicle permits, road worthiness of vehicles and application for learners, drivers and professional driving permits in line with the National Road Traffic Act 93 of 1996. In addition, the South African Post of Services is mandated to do renewal of motor vehicle licensing. As a result, this reduced the number of renewals of motor vehicle licensing at the municipality. In addition, learner license test is computerized and the failing rate is high. The bookings on DLTC are conducted by RTMC. (http://online.natis.gov.za)

South African Post Office is registered as an agent to renew motor vehicle licenses. In addition legislation authorized a person to renew a motor vehicle license at any local authority within Gauteng Province with a renewal notice. No bus Service in Merafong Municipality.

Delete Directive note once comment is completed – Explain in brief the transport strategy and the steps taken towards the implementation of the strategy and discuss the major successes achieved and challenge faced in year 0. Set out your top 3 service delivery priorities and the impact you have had on them during the year. Explain the major efficiencies achieved by your service during the year. Outine approach to Public Bus Operation. Refer to support given to those communities that are living in poverty. Give the name and extent of service provision of any municipal entity(ies) responsible for rendering Transport Services within the municipality.

T 3.8.1

Municipal Bus Service Data

Details

2017/2018 2018/2019 2019/2020

Actual No.

Estimate No.

Actual No.

Estimate No.

1 Passenger journeys The Municipality does not have bus services.

2 Seats available for all journeys

3 Average Unused Bus Capacity for all journeys

4 Size of bus fleet at year end

5 Average number of Buses off the road at any one time

6 Proportion of the fleet off road at any one time

7 No. of Bus journeys scheduled

8 No. of journeys cancelled

9 Proportion of journeys cancelled

T 3.8.2

http://online.natis.gov.za/

Concerning T 3.8.2

Merafong Local Municipality has no municipal bus service in its territory. Commuters use minibuses and midi-buses as a mode of public passenger road transport.

Delete Directive note once table is completed – State name of entity followed by ‘Entity’ where this

is applicable. Line 3 is calculated by sampling throughout the year using different routes, days of the

week and times of day. Line 6 is calculated by taking the numbers from lines, as follows: 5/4 x 100%.

The average number of busses off the road is obtained by sampling the number off the road on

different days at different times. Line 9 is calculated by taking numbers from lines as follows: 8/7 x

100%.

T 3.8.2.1


Transport Service Policy Objectives Taken From IDP (VEHICLE LICENSING)


2017/2018 2018/2019 2019/2020

Target Actual

Target Actual

Service Indicators Target Actual


Registration of vehicles Registration of vehicles

9938 9712 9712 9000 9000

Licensing motor vehicle 43121 34363 34363 41198 41198

Drivers Licenses 18711 18693 18693 17500 17500

Learners Licenses 3240 4141 4141 4193 4193

T 3.8.3


Employees: Transport Services

Job Level

2017/2018 2018/2019


equivalents)


No. No. No. No. %

0 - 3 0 1 0 1 100%

4 - 6 3 4 2 2 50%

7 - 9 12 3 12 3 100%

10 - 12 18 7 18 7 100%

13 - 15 7 6 7 6 100%

16 - 18 5 4 5 4 100%

Total 45 25 44 23 92%


Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%

Repairs and Maintenance 25 244 250 248 2%

Other 45 244 250 248 2%



T 3.8.5

Financial Performance Year 0: Transport Services

R'000

Details

Year 0

Net expenditure to be consistent with summary T 5.1.2 in Chapter 5. Variances are calculated by dividing the difference between the Actual

and Original Budget by the Actual.


Budget Adjustment

Budget

Actual

Expenditure

Variance from

original

budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.8.6

Capital Expenditure Year 0: Transport Services

R' 000

Capital Projects

Year 0

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

and future expenditure as appropriate.

COMMENT ON THE PERFORMANCE OF TRANSPORT OVERALL:

The Registration and licensing section signed a Service Level Agreement with the Gauteng

Department of Transport to do registration and licensing of motor vehicles, learner license and driver

licenses. The South African Post Office is also registered as an agent to renew motor vehicle licenses.

As a result, this reduced the number of renewals of motor vehicle licensing at the municipality. The

National Road Traffic Act. 93/1996 authorized a person to renew a motor vehicle license at any local

authority within Gauteng Province with a renewal notice.

This section is responsible for the testing of learners and drivers licenses as well as testing of vehicles

in terms of legislation. The learner license test is recently computerized and the failing rate is high due

to the fact that applicants are not familiar with the system.

The project was registered for the building of the New Driver License offices in Carletonville. The

building is at 90% completion. Definitely this will improve on service delivery and compliance to the

best practice model.


projects and explain the variations from budget for net operating and capital expenditure. Confirm your

year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not

then state how you intend to rectify the matter. Explain the priority of the four largest capital projects

and explain variances from budget for net operating and capital expenditure. Also explain any likely



T 3.8.7

3.9 WASTE WATER (STORMWATER DRAINAGE)

INTRODUCTION TO STORMWATER DRAINAGE

The stormwater infrastructure is being addressed in townships with the new roads that are being built

and maintenance activities that are carried out throughout the municipality. During the year under

review construction of new roads through MIG funding initiatives was delayed and could not be

completed during the year, will therefore realise completion ver the next financial year. The new roads

are attached with new stormwater infrastructure.

Elijah Barayi, which is a housing development constructed 8.5km of roads with associated

infrastructure which also contributed on development of stormwater drainage. Through maintenance

operations the municipality achieven cleaning of stormwater inlets totalling to 442 as well as 01km of

channels that were cleaned. Bulk channels could not be cleaned due to budgetary constriants that

prevented the municipality from hiring machines for the purpose.

On informal settlements and rural areas the stormwater is maintained by opening mitre drains within

the grading and re-gravelling programme that is beeing undertaken. The municipality was not able to

reach to all the areas due to constant breakdowns of the yellow fleet machinery, and could not source

externally due to budgetary constraints.

Delete Directive note once comment is completed – Provide brief introductory comments on the

progress being made to improve stormwater drainage and discuss the major successes achieved and

challenges faced in year 0 (include your top 3 service delivery priorities and the impact you have had

on them during the year). Set out measures taken to improve performance and the major efficiencies

achieved by your service during the year. Refer to support given to informal settlement and rural

development. Refer to support given to those communities that are living in poverty. Give the name

and extent of service provision of any municipal entity(ies) responsible for rendering Stormwater

Drainage Services within the municipality.

T 3.9.1


Stormwater Infrastructure Kilometers

Total Stormwater measures

New stormwater measures

Stormwater measures upgraded

Stormwater measures maintained

Year 2016/2017 No Baseline 1.8 58 units kern inlets cleaned and repaired

58 units kerb inlets repaired and cleaned and 1.2 km channels cleaned.

Year 2017/2018 No Baseline 0 400 units kerb-inlets cleaned and repaired

400 units kerb-inlets cleaned and repaired and 5644 meters channels cleaned.

Year 2018/2019 No baseline 0 442 kerb inlets cleaned and repaired

442 kerb inlets maintained as well as 169.6m channels cleaned

T 3.9.2

Cost of Construction/Maintenance R’ 000

Stormwater Measures

New Upgraded Maintained

Year 2016/2017 PMU 0 214 077

Year 2017/2018 PMU 0 0

Year 2018/2019 202 589 0 192 683

T 3.9.3

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Year -2 Year -1 Year 0

Stormwater infrastructure costs

New Upgraded Maintained

T 3.9.4


Stormwater Policy Objectives Taken From IDP Service Objectives Outline

Service Targets

Year 2016/2017 Year 2017/2018 Year 2016/2017

Year 3


Service Indicators *Previous Year

*Previous Year *Current Year *Current

Year *Current

Year *Following

Year



Development of fully integrated stormwater management systems including wetlands and natural water courses

Phasing in of systems

Strategy approval (Yes/No);

Timescale 5 yrs


Timescale 5 yrs


Timescale 5 yrs

Strategy approval (Yes/No); Timescale

5 yrs


Timescale 5 yrs

Strategy approval

(Yes/No); 5 yrs remaining

Completion (Yes/No); 5yrs

remaining

Completion (Yes/No); 5

yrs remaining

T 3.9.5


Employees: Stormwater Services

Job Level

Year -1 Year 0



No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 2 3 2 1 33%

7 - 9 3 8 4 4 50%

10 - 12 5 15 7 8 53%

13 - 15 13 15 9 6 40%

16 - 18 2 21 11 10 48%

19 - 20 0 30 17 13 43%

Total 26 93 52 41 45% T 3.9.6

Year -1


Budget



Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.9.7

Financial Performance Year 0: Stormwater Services R'000

Details

Year 0




Capital Expenditure Year 2018/2019: Stormwater Services

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure

Variance from

original budget

Total Project Value

Total All Capital Expenditure included in T3.7.9

Khutsong Roads and Stormwater (Phase 3)

Capital Expenditure included in T3.7.9

Kokosi Roads and Stormwater (Phase 3)


Kokosi Ext 6 Construction of Roads


Wedela Ext 3 Roads and Stormwater (Phase3)


Khutsong Bridge over Rail Capital Expenditure included in T3.7.9


COMMENT ON THE PERFORMANCE OF STORMWATER DRAINAGE OVERALL:

Kokosi Roads and Stormwater (Phase 3) and Kokosi Ext 6 Construction of Roads

The consultant was appointed on 12 December 2018 and the appointment was amended to a turnkey.

The laying of 85m storm water pipeline commenced on 24 June 2019 and the construction progress

achieved was 24%. Delays encountered were due to the identification of suitable subcontractors for

the installation of Stormwater and kerb installations. Contractor vacated the site due to continued

disruptions.








T3.9.9

COMPONENT C: PLANNING AND DEVELOPMENT

This component includes: planning; and local economic development.

INTRODUCTION TO PLANNING AND DEVELOPMENT

The key objective to achieve integrated planning, optimal connectivity, liveable sustainable human settlements, and growth and green smart developments, is entrenched in the Spatial Development Framework. The SDF was reviewed to be aligned with the Gauteng City Region and Corridor Development Initiative and to incorporate the Capital Expenditure Framework.

The Spatial Development Framework recognizes economic opportunities and guides new development opportunities to be strategically placed to achieve sustainable integrated planning and capital investment. The municipality is committed to facilitate Radical Economic Transformation and to diversify the economy from the dominant mining sector. In this regard several catalytic projects have been identified that can change the face of Merafong City and the West Rand if investment can be attracted.

In the previous years it was reported that business plans were submitted to the Gauteng Funding Agency to facilitate Radical Economic Transformation within the West Rand, but to date no funding were received for the following projects: ● Carletonville Multi Nodal Transport Hub ● Khutsong South Extensions Taxi Rank ● Kokosi Precinct Upgrade ● Kokosi Social Development Cluster ● Fochville- Kokosi Regional Park

The Gauteng Infrastructure Funding Agency approved the following two projects for detailed feasibility studies up to business case implementation stage: ● Merafong Bioenergy Eco-Industrial Park ● Merafong Solar Farm Cluster The feasibility studies were completed in January 2019, and the Bioenergy Eco-Industrial Park proofed to have the potential to establish Merafong City and the West Rand as the leader in green energy in the West Rand and Gauteng. The conceptualization of the project is currently underway.

The modernisation of Human Settlements and urban development as one of the pillars for radical transformation is achieved through fully integrated township layouts for residential, business and community facilities for the following approved Mega Projects: ● Khutsong South Human Settlement Projects (next phases) ● Elijah Barayi Village Mega Project ● Kokosi Extension 7 The next phase of the Khutsong South Human Settlement Project has also been approved by the Gauteng Department of Human Settlement which will be a further catalytic project to attract investment and to fully develop the Carletonville-Khutsong-Welverdiend Corridor.

The attraction and implementation of Mega projects is dependent on the availability of bulk services pertaining to water, sewer and electricity. The Municipality also has a challenge of aging infrastructure that urgently needs rehabilitation. This situation has further been compounded by the recent loss of bulk infrastructure such as reservoirs and bulk pipelines, due to sinkhole formation in the northern conurbation.


The access to suitable land for mega project developments remains a challenge. Far West Rand Dolomitic Water Association (FWRDWA) has donated strategically located land for future mega project development. The Municipality is confident that its Strategic Planning Framework provides a solid foundation to attract investment for mega projects to facilitate growth and development in Merafong City, as part of the Gauteng City Regions’ Western Corridor Development.

Delete Directive note once comment is completed - Provide brief overview of the opportunities and

challenges in the fields of economic development and physical planning field for your municipality.

T 3.10

3.10 PLANNING

INTRODUCTION TO PLANNING

Spatial Planning in Merafong City is guided by the Spatial Development Framework and the strategies outlined in the Planning Framework to ensure the following: ● Improve Urban Efficiency and rectify spatial disparities ● Improve urban and rural living environment ● Facilitate sustainable economic growth and diversification ● Protect natural and agricultural resources Improve Urban Efficiency and rectify spatial disparities In order to achieve integrated urban areas and restructure the urban form to meet current and future efficiency challenges, the following were achieved: ● Improvements were made to the Municipal Spatial Development Framework, with special reference to new growth management zones to guide development in accordance with the future desired state, and to incorporate the Capital Expenditure Framework, although with limited information. ● The Municipality has received funding from GDRDLR for the compilation of a new uniform Land Use Scheme for the entire Merafong City. The service provider was appointed in February 2018, and the project was concluded in January 2019. The new Land Use Scheme will be promulgated by July 2019. ● Continuation of the implementation of existing and new Mega Human Settlement projects in order to rectify spatial disparities.

The main challenges experienced in this regard were related to funding constraints for the rehabilitation and construction of bulk infrastructure which caused a delay in the implementation of Human Settlement and development projects. Human Settlements is however a Provincial function and therefore the municipality is dependent on budget allocations from the National- and Provincial Annual Budget Allocations. Improve urban and rural living environment In order to create a conducive living environment for the community where basic needs are met, the cost of living is bearable, amenities and employment are accessible and urban spaces are aesthetically pleasing and healthy, the following was achieved: ● The MSDF identified land for economic development interventions in previously disadvantaged areas to enable the implementation of economic development projects.

● Non-Motorized Transport priorities and needs were identified and communicated to Gauteng Province as part of the Gauteng Renewed Focus on Non-Motorized Transport. ● Land was identified in previously disadvantaged areas for alienation for churches, businesses, residential development and NPO’s, in order to support a better functioning social environment. ● Land was identified and availed for social infrastructure development in various areas comprising of clinics and libraries.

The main challenges experienced in this regard stem from the presence of dolomite which greatly reduces viable options for locating facilities in the process of creating improved living environments. Facilitate sustainable economic growth and diversification In order to facilitate the development of new economic drivers and the diversification of the economy and to revitalize stagnant economic activity nodes the following was achieved: ● Great strides were made with the conceptualization, project development and funding of Merafong City’s game changer projects. The Gauteng Infrastructure Financing Agency (GIFA) has agreed to fund the feasibility studies for the Bio-energy Eco-Industrial Park and Solar farm cluster projects which will re-organize the space economy and place Merafong on a sustainable path of growth. Although it was expected that the feasibility studies would be completed by June 2018, due to certain delays in the projects, the feasibility studies was only completed in January 2019. It was found that the Bio-Energy Eco-Industrial Park would be the only feasible project for Merafong and the conceptualization of the project is currently underway. ● After extensive research the designated nodes and corridors in the MSDF were re-aligned in order to yield higher growth results in the urban space. The main challenges experienced in this regard were the ever present shortage of funding as well as strategically located land for projects. These challenges are however being addressed through co-operation with the local Mining Houses and Gauteng Province. Protect natural and agricultural resources In order to protect and actively manage the natural environmental resources of Merafong City to ensure a sustainable co-existence between urban, mining, agricultural and ecological land uses, the following was achieved: ● The MSDF was aligned to the new Gauteng Environmental Management Framework. Climate change mitigation measures were improved through the designation of new protected critical diversity areas. The renewed focus was placed on the inter-relation between spatial planning and conservation of wetlands by a new partnership between ICLEI, the WRDM and Merafong City. ● The Spatial Planning Section actively attracted interest for green investment that aims to rehabilitate mine impacted land and generate renewable green energy. The envisaged development will for a component of the Bio-energy Eco-Industrial Park bring about a reduction in carbon emissions noticeable on a regional scale. Funding is once again the main challenge in implementing environmental orientated projects within a context of limited resources and competing social and economic needs. Service delivery priorities pertaining to Land Use Management, Spatial Planning and Building Control were addressed in accordance with the Service Delivery Budget Implementation Plan (SDBIP) of Council. The main services delivery priority pertaining to land use management was the implementation of the Spatial Planning & Land Use Management Act (SPLUMA) (Act 16 of 2013) which came into operation on 1 July 2015. The main intention of SPLUMA is to streamline Spatial Planning and Land Use Management and to promote a uniform system of spatial planning and land use management. Funding was received from GDRDLR for the compilation of a new uniform Land Use Scheme for the entire


Merafong City. The service provider was appointed in February 2018, and the project was concluded in January 2019. The categorization of applications, the delegation of certain powers to the Designated Officer and the adoption of SPLUMA By-Laws has improved performance and efficiency within the Department. The SPLUM By-Laws was promulgated on 14 September 2016. In comparison to the previous year, there were a definite decline in applications submitted, and a total of 41 development applications have successfully been processed. The increasing number of illegal land uses identified during the year is a serious concern. A tendency has been noted that illegal back rooms are constructed and rented out, some of an informal nature, impacting negatively on services such as sewer, electricity and the living environment. In this regard a total of 354 illegal land uses and illegal buildings have been identified, investigated and statutory processes implemented for 80 of these cases. Within the Building Control Section a concerted effort was made to improve the timeframe for processing building plans. As was seen with the land use applications, there were also a significant decline in the submission of building plans, in comparison to the previous years. During this year a total of 113 building plans have been approved within the legislated timeframe, resulting in no backlog on approval of building plans. The general economic decline in the industry are revealed as the total value of building plans approved for the financial year, has propped with almost 50%, at a total value of R161,717,750.

Delete Directive note once comment is completed - Set out in brief the main elements of your

planning strategies (and make particular reference to achievements and challenges in year 0); Town

Planning; and building regulation and enforcement). Set out your top 3 service delivery priorities and

the impact you have had on them during the year. Set out measures taken to improve performance

and the major efficiencies achieved by your service during the year. Refer to support given to those

communities that are living in poverty.

T 3.10.1

Applications for Land Use Development

Detail Formalisation of Townships Rezoning Built Environment

Year 2017/2018

Year 2018/2019

Year 2017/2018

Year 2018/2019

Year 2017/2018

Year 2018/2019

Planning application received 1 1 8 41 157 113

Determination made in year of receipt 1 1 4 20 157 113

Determination made in following year 0 0 4 4 0 0

Applications withdrawn 0 0 1 0 0 0

Applications outstanding at year end 0 0 4 21 0 0

T 3.10.2


Planning Policy Objectives Taken From IDP

Service Objectives Outline Service Targets 2017/2018 2018/2019 2018/2019 2020/2021


Service Indicators *Previous

Year *Previous

Year *Current

Year *Current

Year *Current

Year *Followin

g Year


Land Use Management

% statutory notices issued within 7 days of identification of Illegal Land use 100% 100% 100% 100% 100% 100% 100% 100%

Spatial Planning Reviewed SDF 1 1 1 1 1 1 1 1

Reviewed SDF: Implementation of Process Plan N/A N/A N/A 100% 100% 100% 100% 100%

SPLUMA By-Laws

1 promulgated N/A N/A N/A N/A N/A

SPLUMA system of delegations 1 1 1 N/A N/A N/A N/A N/A

SPLUMA - no of applications submitted vs approved N/A N/A N/A 100% 100% 100% 100% 100%

Economic Development

% of developmental municipal owned land advertised for development in accordance with 5 year plan N/A N/A N/A 100% 100% 100% 100% 100%

Building Control Building plans <500m² attended within 30 days 100% 100% 100% 100% 100% 100% 100% 100%

Building plans >500m² attended within 60 days 100% 100% 100% 100% 100% 100% 100% 100%

% building inspections 100% 100% 100% 100% 100% 100% 100% 100%


conducted vs applied for

% statutory notices issued within 14 days of identification of Illegal building 100% 100% 100% 100% 100% 100% 100% 100%



Employees: Planning Services

Job Level

2017/2018 2018/2019


equivalents)


No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 11 18 10 8 44%

7 - 9 2 12 1 11 92%

10 - 12 0 0 0 0 0%

13 - 15 0 0 0 0 0%

16 - 18 0 0 0 0 0%

19 - 20 0 0 0 0 0%

Total 14 31 12 19 61%


Financial Performance Year 2018/2019: Planning Services

R'000

Details

2017/2018 2018/2019


Adjustment Budget



Expenditure:

Employees 8527 6151 6151 248 -2380%


Other 827 697 697 248 -181%




T 3.10.5


Capital Expenditure Year 0: Planning Services

R' 000

Capital Projects

2018/2019


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 0 0 0 0%

no Capital projects 0 0 0 0%


COMMENT ON THE PERFORMANCE OF PHYSICAL PLANNING OVERALL:

The Spatial Planning and Environmental Management Section did not have any Capital project for the

year under review. As far as the Operating Expenditure is concerned, the Section successfully

implemented its SDBIP and achieved 90% expenditure of the approved budget. (Finance to provide

Actual figures)








T 3.10.7

3.11 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET

PLACES)

INTRODUCTION TO ECONOMIC DEVLOPMENT


economic development strategy and the contribution being made to the local economy in facilitating

job creation through by Local Economic Development Services in year 0 (include your top 3 service

delivery priorities and the impact you have had on them during the year). Set out measures taken to

improve performance and the major efficiencies achieved by your service during the year. Refer to

support given to those communities that are living in poverty. Give the name and extent of service

provision of any municipal entity(ies) responsible for rendering Housing Services within the

municipality.

T 3.11.1

Sector Year -2 Year -1 Year 0

Agric, forestry and fishing 2 1.5 1.5

Mining and quarrying 6 5 2

Manufacturing 56 58 63

Wholesale and retail trade 45 51 52

Finance, property, etc. 51 48 52

Govt, community and social services 23 25 25

Infrastructure services 34 38 41

Total 217 226.5 236.5

T 3.11.2

Economic Activity by Sector

R '000

Jobs

Year 1 Year -1 Year 0

No. No. No.

Agric, forestry and fishing 20,000 25,000 30,000

Mining and quarrying 400,000 435,000 372,000

Manufacturing 320,000 300,000 270,000

Wholesale and retail trade 190,000 200,000 210,000

Finance, property, etc. 275,000 255,000 235,000

Govt, community and social services 300,000 310,000 320,000

Infrastructure services 400,000 430,000 450,000

Total 1905000 1955000 1887000

T 3.11.3

Economic Employment by Sector

Sector


COMMENT ON LOCAL JOB OPPORTUNITIES:

Delete Directive note once comment is completed - Comment briefly on the short and longer term

prospects for economic growth and development referring to the above. Include in this section

references to Tourism and Market Places (including street traders)

T 3.11.4

Jobs Created during Year 2018/2019 by LED Initiatives (Excluding EPWP projects)

Total Jobs created / Top 3 initiatives

Jobs created Jobs lost/displaced

by other initiatives

Net total jobs created in

year

Method of validating jobs created/lost

No. No. No.

Total (all initiatives)

2016/2017 6298 6298 Monthly reports



T 3.11.5

Job creation through EPWP* projects

Details

EPWP Projects Jobs created through EPWP projects

No. No.

Year 2016/17 24 480

Year 2017/18 25 427

Year 2018/19 30 403

* - Extended Public Works Programme T 3.11.6


Local Economic Development Policy Objectives Taken From IDP

Service Objectives Outline Service Targets Year 2017/2018 Year 2018/2019 Year 2019/2020


Service Indicators


Local Economic Development

Jobs created through LED initiatives 6000 5157 6000 4569 6000

LED Programmes implemented as planned 100% 100% 100% 100% -

Business Licence applications processed within 30 days of receipt 100% 100% 100% 100% -

Review of the Merafong Growth and Development Strategy 2014 New indicator 1

Percentage business licence applications and trading permits processed within 30 days New indicator 30 days

Number of SMME workshops facilitated New indicator 4

Number of municipal owned farms managed i.e. Nooitgedacht & Khutsong 18 plots New indicator 2

Number of Farmers Day Exhibitions facilitated New indicator 1



Employees: Local Economic Development Services

Job Level

2017/2018 2018/2019



No. No. No. No. %

0 - 3 0 1 0 1 100%

4 - 6 1 4 1 3 75%

7 - 9 2 3 2 1 33%

Total 3 8 3 5 63%


Financial Performance Year 2018/2019: Local Economic Development Services

R'000

Details

2017/2018 2018/2019


Adjustment Budget


Total Operational Revenue -8 -9 -9 -9 0%

Expenditure:

Employees 1179 725 725 1224 41%


Other 0 241 241 60 0%




Capital Expenditure Year 2018/2019: Economic Development Services

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 3 674 0 0 #DIV/0!

Informal Trading Area (Phase 2 - Oberholzer)

3 674 0 0 #DIV/0! 6 781


COMMENT ON LOCAL ECONOMIC DEVELOPMENT PERFORMANCE OVERALL:

Informal Trading Area (Phase 2 - Oberholzer)

The project was handed over to the contractor on 9 February 2017. The construction progress was

5%. The contractors tender was terminated on 21 November 2016 due to non-performance. A court

ruling was obtained by the municipality. Project was deferred to 2019/2020 due to funding shortfalls








T 3.11.11

COMPONENT D: COMMUNITY & SOCIAL SERVICES

This component includes: libraries and archives; museums arts and galleries; community halls;

cemeteries and crematoria; child care; aged care; social programmes, theatres.

INTRODUCTION TO COMMUNITY AND SOCIAL SERVICES

Delete Directive note once comment is completed – Provide brief introductory comments. Refer to

support given to those communities that are living in poverty.

T 3.12


3.12 LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES;

OTHER (THEATRES, ZOOS, ETC)

INTRODUCTION TO LIBRARIES; ARCHIEVES; MUSEUMS; GALLERIES; COMMUNITY FACILITIES

Community Libraries Merafong City libraries are essential amenities for people to have equitable access to information and information resources that meet wide-ranging information needs. Additionally, all Libraries in Merafong play a significant role in socio-economic and educational development of communities. The library service is rendered through a cooperative governance approach where Merafong City Municipality had entered into a SLA with the Gauteng Provincial Dept. of Arts and Culture (DAC) to provide adequate library service to the local community. An allocation of R 15 330 000.00 was made by the DAC, through conditional grant to service a maximum of 22 libraries in Merafong City Municipality. The 22 libraries across the peripheries of Merafong City Municipality provide a comprehensive, efficient, effective and economical library service to the entire Merafong City population of approximately 197 520 and this is achieved in terms of provisioning of basic library services which including inter-alia: • Studying facilities • Reference services • Material lending services • Photocopying services • Fax and scanning services • Library outreach programs • ICT incl. Free Wi-Fi services In 2018/19 financial year Merafong City Libraries received a funding allocation of R 11 830 000 (DAC grant funding). Consequently, the value of the Equitable share allocation to Merafong City Libraries was R3 500 00. Therefore, this informed a total amount of R15 330 000.00; received from both the DAC Grant funding and the equitable share allocation to Merafong City Libraries and this was for capitalisation of libraries in Merafong. An amount of R8 716 000.00 from grant funding was allocated for staffing of libraries and consequently, the funding allocation aided the Municipality to renew contracts of 32 Auxiliaries(who also assist with extended library hours) , 6 Librarians, 1 Senior Library Assistant, ICT Technician, 10 Library Assistants and 15 interns (9 interns contracts not renewed). In this financial year, the Library collection development was upheld and 10738 Information resources were procured.

Community Facilities

In Merafong City Local Municipality, Community Facilities are as follows: Khutsong Community hall, Fochville Civic centre & Chamber, Greenspark Community hall, Molatlhegi Community hall, Wedela Main hall, Carletonville Lapa, Carletonville Civic centre and Carletonville Sports Complex. These Facilities are used by members of the community and the private sector for events such as workshops and training, presentations, seminars, conferences, funerals, music concerts, theatre comedy performances, parties, wedding etc. They are also used for council purposes. The primary priority of the Section is to ensure proper functioning and maintenance of all Community Facilities. For the 18/19 financial year, Maintenance was done in some of the Facilities through

external services. The Section has worked hand – in – hand with relevant internal sections to ensure that facilities are satisfactorily kept were possible. Access to these facilities is controlled through bookings and a certain tariff is paid for utilisation. These tariffs are reviewed annually though the budget processes. The Sections has assisted previously disadvantaged members of the community and stakeholders by approving and offering free usage of facilities, which is obtained through internal applications.

Delete Directive note once comment is completed – Provide brief introductory comments. Set out

your top 3 service delivery priorities and the impact you have had on them during the year. Explain the

measures taken to improve performance and the major efficiencies achieved by your service during

the year. Refer to support given to those communities that are living in poverty.

T3.12.1

SERVICE STATISTICS FOR LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES; COMMUNITY

FACILITIES; OTHER (THEATRES, ZOOS, ETC)


The table below reflects the service statistics pertaining to community facilities.

Libraries:

Month Membership 2018/2019 In House Use (Number of _____ ) 2018/2019

Children Adult Total

Reference Users

Student Learners

Newspapers/Magazines

ICT (Computer) Users Total

July 6438 8088 14526 16910 39795 6620 11165 74490

August 6459 8098 89047 17788 40353 9195 10452 77788

September 6793 8489 15282 17844 38641 10102 13297 79884

October 6359 7917 14276 20495 47470 12672 14449 95086

November 7196 9166 16362 24087 55382 11079 12597 103145

December 7202 9182 16384 8284 23252 5804 6052 43392

January 7492 8796 16288 16934 39072 13443 15540 84989

February 7294 8067 15361 19716 47580 16665 14820 98781

March 6378 9154 15532 18537 46353 16849 14255 95994

April 6327 9004 15331 16425 53535 14151 14660 98771

May 6235 9188 15423 17614 57864 13258 16326 105062

June 6307 9238 15545 15818 43639 11811 13473 84741

Community Facilities:

Facility Number of facilities 2017/2018 2018/2019

Khutsong Community Hall

1 168 Bookings 163 Bookings

Fochville Civic Centre 2 87 Bookings 132 Bookings

Greenspark Community Hall


Molatlhegi Hall 1 96 Bookings 65 Bookings

Wedela Main Hall, Chamber


Carletonville Lapa 1 96 Bookings 60 Bookings

Carletonville Civic Centre

3 Halls 257 Bookings 265 Bookings

Carletonville Sport Complex

5 Halls and outside terrain

560 Bookings 481 Bookings

T 3.12.2


Libraries; Archives; Museums; Galleries; Community Facilities; Other Policy Objectives Taken From IDP

Service Objectives Outline Service Targets 2017/18Year 2018/19 2019/20 2020/21


Service Indicators

*Previous Year

*Previous

Year *Current Year

*Current Year

*Current Year

*Following Year



To render an effective and efficient services of our facilities in the Jurisdiction area of Merafong City

Upgrading and Maintenance of Carletonville Civic Centre

None None None None None 0% 100% 0%

Upgrading of Khutsong Community hall


Upgrading of Fochville Civic Centre


Upgrading of Kokosi Community Hall


Upgrading and Maintenance of Carletonville Lapa


Upgrading and Extension of Greenspark Community Hall


Rehabilitation of Fochville Lapa


Upgrading and Maintenance of Merafong Swimming Pools


Upgrading of Wedela Community hall



Rehabilitation of Wedela Rec Club


Upgrading of Carletonville Sports complex


Provision of standard recreational facilities to the community of Merafong City Local municipality

Official Opening of Kokosi

Library

None None None None None None 90% 10%

T3.12.3


Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.12.5

Financial Performance Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; OtherR'000

Details

Year 0



Employees: Libraries

Job Level

2017/18 2018/19


equivalents)


total posts)

No. No. No. No. %

0 - 3 0 0 0 0 0%

4 - 6 1 1 1 0 0%

7 - 9 17 11 9 2 18%

10 - 12 27 91 91 18 20%

13 - 15 23 11 10 2 18%

Total 68 114 111 22 19%

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or

adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such

days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days.

T 3.12.4


Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.12.6

Capital Expenditure Year 0: Libraries; Archives; Museums; Galleries; Community Facilities; Other

R' 000

Capital Projects

Year 0

Total project value represents the estimated cost of the project on approval by council (including past and

future expenditure as appropriate.

COMMENT ON THE PERFORMANCE OF LIBRARIES; ARCHIVES; MUSEUMS; GALLERIES;

COMMUNITY FACILITIES; OTHER (THEATRES, ZOOS, ETC) OVERALL:

Libraries:

The financial injection through conditional grant allocation supported Merafong City Municipality in provisioning of adequate library service for the financial year 2018/19. The latter grant allocation received included: 1. R 11 830 000 (DAC grant funding). 2. R3 500 00 (Equitable share) The total value of the grant and equitable share was calculated to R15 330.00. To provide a quantitative analysis of the allocations, R8 716 000.00 was allocated for staffing of libraries. Merafong City libraries have a total number of 78 employees that are paid from the DAC Grant, x6 Librarians, x1 Senior Assistant, x1 ICT Technician, x10 Library Assistants, x15 Interns, 32 Auxiliary workers for extended library hours. Additional the salaries of x6 permanent employees are funded from the equitable share allocations. The staffing allocations support the service regarding the following outputs: - Provisioning of adequate library service - Opening of a new library facility Furthermore, the grant allocations aided in the proper and adequate collection development efforts, such that a maximum number of 8192 Information resources to the value of R1 982 393.67 were procured for 22 libraries in Merafong City. Conditional grant funding allocation of R174 000.00 for Capacity and career building programmes was made available. Consequently, this allocation paid for x3 staff members enrolled for Library Science degrees (3

rd year students) through UNISA. Moreover, the funding assisted x5 library staff members to

pursue an accredited occupational certificate for Library Assistants through UKS. The Maintenance and upgrading of various library facilities was completed. This includes inter-alia: maintenance of the ablution facilities at Greenspark library, electrical and minor maintenance projects such as painting and installation of blinds in the Librarian’s office at Greenspark Library. Furthermore, other projects completed, included: Fixing of a drain system at Khutsong South Library, fixing of x2 security gates at Greenspark Library, fixing of a security gate and a front door at Khutsong South Library, installation of 30 security cages, Replacement of 11 outdated IT hardware in 11 Libraries viz: Welverdiend; Khutsong Modular; East Driefontein; Blybank, Elandsrand and Kokosi libraries.

Implementation of successful 127 outreach programs in the approved calendar of events was attained through the grant funding allocation to the value of R200 000.00. The latter mentioned outreach programs subsequently reached a maximum number of 20 072 beneficiaries. Community Facilities Due to cash flow, maintenance of facilities was very slow during the financial year. It was done in some of the Facilities and focus was on minor projects to keep Facilities going. Soft Maintenance in terms of Cleaning and grass cutting was also done regularly in all Facilities. Due to the financial status of the Municipality, Facilities cannot be upgraded and Maintained up to standard. Vandalism and crime in facilities are a contributing factor to the dilapidation of Merafong facilities adding more badly to the financial status of Council.








T 3.12.7

3.13 CEMETORIES AND CREMATORIUMS

INTRODUCTION TO CEMETORIES & CREMATORIUMS

Cemeteries in Merafong City are the highly visited places especially on weekends, Easter holidays and other holidays. The cemeteries are highly utilized for burials, exhumations, reburials and erection of memorials/ tombstones. The high standard of appearance of all cemeteries is kept through regular grass cutting and maintenance as well as prevention of roaming animals from entering the cemeteries as they might do damage to monuments. This is done through the utilisation of internal work force with the assistance from the implementation of NYS and Zivuseni projects. Currently 5 cemeteries are in use whereas 6 have been used to full capacity and 1 in Kokosi was closed due to high underground water levels. The demand for new graves and the requests to reopen reserved graves has decreased slightly at some of the cemeteries which has a big influence on the availability of suitable burial space. The grave digging is done through a contracted service provider to ensure the availability of graves at all times, even for the indigent community.





T 3.13.1


SERVICE STATISTICS FOR CEMETORIES & CREMATORIUMS

CEMETERY 2017/2018 2018/2019

Burials Exhumations

Khutsong South 643 563 2

West Wits 159 152 1

Fochville 282 266 0

Wedela 16 35 0

Greenspark 24 25 0

T 3.13.2


Cemeteries and Crematoriums Policy Objectives Taken From IDP

Service Objectives Outline Service

Targets

2015/2016 2016/2017 2017/2018 2018/2019


Service Indicators *Previou

s Year

*Previou

s Year

*Current

Year

*Current

Year

*Current

Year

*Followin

g Year



Alien Vegetation

Eradication Program

Eradication of alien

vegetation in the

jurisdiction of

Merafong City Local

Municipality

100.00% 100.00% 100.00% 0 0 0 0 1

Physical Infrastructure Community parks

planned vs developed

3 2 3 1 2 0 0 0

Grass cutting on open

spaces and sidewalks

Greater Carletonville,

Welverdiend, Blybank,

Khutsong Proper,

Khutsong South,

Fochville, Greenspark,

Kokosi and Wedela.

100% 100% 100% 100% 100% 100% 100% 100&

Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above

(columns (i) and (ii)) must be incorporated in the indicator set for each municipality to which they apply. These are 'universal municipal

indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in

the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP

must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Integrated Development

Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in

which IDPs play a key role.

T 3.13.3


Employees: Cemeteries and Crematoriums

Job

Level

2017/2018 2018/2019

Employees Posts Employees Vacancies

(fulltime

equivalents)

Vacancies (as

a % of total

posts)

No. No. No. No. %

0 - 3 1 1 0 0 0%

4 - 6 3 3 2 1 33%

7 - 9 6 8 6 2 25%

10 - 12 7 40 12 28 70%

13 - 15 9 52 30 22 42%

Total 26 104 50 54 52%

T3.13.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.13.5

Financial Performance Year 0: Cemetories and Crematoriums R'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.13.6

Capital Expenditure Year 0: Cemetories and Crematoriums

R' 000

Capital Projects

Year 0



COMMENT ON THE PERFORMANCE OF CEMETORIES & CREMATORIUMS OVERALL:

All the requirements with regards to the functions of the cemeteries were executed successfully. The

grave digging is done by a contracted service provider and is done as and when required prior the

bookings for burials.

The service provider, Assembly Points Trading and Projects was appointed in March 2017 for grave

digging at all MCLM cemeteries for a period of 3 years, which will expire at the end of March 2020.

The service provider is paid monthly for the number of graves dug for each month which is monitored

and verified by the cemetery caretakers.

The exhumations are done upon approval of the application by all the relevant government

departments as well as the Municipal Manager. All the cemeteries that are currently in use have a

minimum of 3 years lifespan left. The availability of land for development of new burial ground is

always communicated with the Section: Town Planning. The grass cutting and maintenance of

cemeteries is done internally by the municipal employees








T 3.13.7

3.14 CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

INTRODUCTION TO CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

An integrated community services plan was developed and approved for implementation in the 2018/2019 Financial Year. Priority was put on escalating access to Early Childhood Development, developing healthy communities and restoring the dignity of indigent citizens through provision of basic and burial services where needed. In mitigation of the impact of Council low cash flow on implementation of programs, collaborations were strengthened with provincial departments of Health and Social Development. A series of programs as planned programs were successfully implemented. A memorandum of intent was also entered into with the Hollard Foundation in an effort to establish measures to improve the level of access to early childhood Development for children in underprivileged households. A technical team comprising key stakeholders has been appointed to assess the magnitude of the challenge and develop an action plan for intervention. Valuable work has been resumed and reported through this team. Identification of indigents through ward based verification field workers has continued in all affected wards around the Municipality. This has enabled Council to write-off debts and provide basic services as prescribed by the Constitution. 1943 indigents were approved and registered in the Council Indigent register. An Indigent After Care program has been developed as a monitoring tool that will constantly assess the impact on the support. Capacity building for NPOs were also implemented as planned. Workshops on governance and financial management were conducted for registered NPOs.


Poverty alleviation and advocacy programs for the disabled and elderly people were implemented in collaboration with Sibanye Gold Mine. 45 elderly citizens were reached with food parcel distributions.





T 3.14.1

SERVICE STATISTICS FOR CHILD CARE

Through assistance from the Hollard Foundation, a draft profile of children and Early Childhood Development centres was conducted to establish the ECD services access gap. The profile gathered that of the 16427 children around Merafong aged 0- 4 years, only 11427 have access to ECD services. The ECD technical task team was established comprising officials from key stakeholders involved in ECD management and compliance. The main objective of this team is to develop an action plan towards the massification of ECD access to all children. During the year in review, four (4) capacity building programs were implemented as planned. A total of 252 practitioners were reached. To further empower ECDs, thirty (30) practitioners were enrolled with the Mathew Goniwe School of governance for the NQF 4 ECD qualification. Five (5) non-centre based ECD centres were launched in Khutsong. Approximately eighty-five (85) children from economically needy households were reached and stimulated through ECD programs.

T 3.14.2


Child Care; Aged Care; Social Programmes Policy Objectives Taken From IDP



Service Indicators

*Previous

Year

*Previous Year

*Current Year

*Current Year

*Following Year

(i) (ii) (iii) (iv) (vii) (viii) (ix) (x)


Basic Services for Indigents

Ward based Indigent harvesting campaigns conducted in wards around Merafong City. A total of 1943 Households were registered in the register

100% 100% 100% 100% 100% 100%

Indigent Burials 49 families were supported with indigent burials 100% 100% 100% 100% 100% 100%

Support for ECDs

Four capacity building workshops were conducted for ECD practitioners. Sixteen (16) ECDs were monitored. 100% 100% 100% 100% 100% 100%

Thirty (30) practitioners enrolled for the NQF4 ECD qualification. A multi sectoral technical task team established to develop plans for ECD access massification. 100% 100% 100% 100% 100% 100%

Implementation of the Healthy communities plan

Programs on Drugs and substance abuse awareness, poverty alleviation for disabled, child headed households and senior citizens, NPO support and health promotions were implemented as planned 100% 100% 100% 100% 100% 100%

T 3.14.3


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: Child Care; Aged Care; Social Programmes

Job Level

Year 0




‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.14.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.14.5

Financial Performance Year 0: Child Care; Aged Care; Social ProgrammesR'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.14.6

Capital Expenditure Year 0: Child Care; Aged Care; Social Programmes

R' 000

Capital Projects

Year 0



COMMENT ON THE PERFORMANCE OF CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

OVERALL:

The Early Childhood Development programs were efficiently implemented through collaborations with external stakeholders. Initiatives to massif access to child care developed and increased performance is anticipated. Implementation of programs still affected by low cash flow, however collaborations were also strengthened and most programs were achieved. Indigent verification has improved and 1943 new households were registered. Lack of sufficient human resource still a challenge with the section operating with an almost 95% vacant structure. Delete Directive note once comment is completed – Explain the priority of the four largest capital







T 3.14.7

COMPONENT E: ENVIRONMENTAL PROTECTION

This component includes: pollution control; biodiversity and landscape; and costal protection.

INTRODUCTION TO ENVIRONMENTAL PROTECTION

Delete Directive note once comment is completed – Provide brief introductory comments.

T 3.15

3.15 POLLUTION CONTROL

INTRODUCTION TO POLLUTION CONTROL

The Environmental Management Sub-Section within the Spatial Planning Department, mainly deals with detection of non-compliance in terms of environmental authorizations (RODs) on new developments, as well as compliance to permit and license conditions of listed activities, which is monitored through monthly audits. The functions related to pollution control falls within the Municipal Health Services function, which is a District Municipal function. Good collaboration exist to ensure that pollution detected are reported to the relevant authorities for mitigation and control. Matter pertaining to biodiversity is mainly managed by the West Rand District Municipality, in terms of the Regional Biodiversity Plan. The environmental management section has conducted monthly audits of all waste management facilities within Merafong City, being the Rooipoort Landfill site, Fochville- and Welverdiend Transfer Stations. The compliance to waste management standards and permit conditions remains a serious challenge. After the appointment of a services provider, the average compliance score for the Rooipoort Landfill Site has increased to 72%. The Fochville Transfer Station average compliance has


dropped considerably from the previous year to a staggering 6,25%, whilst the Welverdiend Drop-off facility achieved an average compliance score of 40%. The inability to implement recommendations remains a serious concern and is evident from the deteriorating environmental conditions. The lack of capacity, compounded by the financial position of Council, to address these issues remains a serious challenge. Waste collection services throughout Merafong City have also deteriorated during the year which contributed to illegal dumping and waste pollution. The worst affected areas are the informal settlements where no formal waste collection services exist. The Waste Management Section could also not roll-out kerbside collection services to the newly developed human settlements in Khutsong South Extension 4 and Kokosi Extension 6. A strategy to address these shortcomings have been developed by the relevant section for implementation as and when funding becomes available. Monitoring of Waste Water Treatment Facilities Quarterly audits have been conducted to monitor compliance to the legislative requirements at the 4 Waste Water Treatment Works of Merafong. The Khutsong Waste Water Treatment Plant slightly decreased to an average compliance score of 74%, the Kokosi Waste Water treatment plant had a major decrease and dropped to an average score of 61% and the Oberholzer Waste Water Treatment Plant also dropped to an average score of 77%. Recommendations have been made to the relevant sections to ensure full compliance. The Wedela Waste Water treatment plant was a mine facility but is currently managed by the Municipality. The facility does not have a licence and therefore no formal audits could be conducted. The Water and Sanitation Section is in process to apply for a water use licence. Monitoring of Kokosi Extension 6 human settlement project - RoD requirements Pertaining to the compliance of the Environmental Authorisation (RoD) issued for the Kokosi Extension 6 human settlement project, audits are conducted on a monthly basis. The average compliance score achieved throughout the year has increased slightly to 44%. All non-compliance items have been reported to the project steering committee, as the Gauteng Department for Human Settlement is the project implementer. Landscaping and parks is dealt with by the Parks Section.





T 3.15.1

SERVICE STATISTICS FOR POLLUTION CONTROL

The following inspections were conducted within the year of review which resulted in 48 non-

compliance notices issued:

Audits conducted - 72

Routine site inspections - 417

T 3.15.2


Pollution Control Policy Objectives Taken From IDP

Service Objectives Outline Service Targets Year 2017/2018 2018/2019 2019/2020 2020/2921


Service Indicators *Previous

Year *Previous

Year *Current

Year *Current

Year *Current

Year *Following

Year



Water and air purity % non-compliance detected vs compliance notices issued within 7 days

100% 100% 100% 100% 100% 100% 100% 100%

% Environmental Audits Conducted vs Planned

72 72 72 72 72 72 72 72



Employees: Pollution Control

Job Level

2017/2018 2018/2019


equivalents)


No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 2 4 2 2 50%

Total 3 5 3 2 40%


Financial Performance Year 2018/2019: Pollution Control

R'000

Details

2017/2018 2018/2019


Adjustment Budget

Actual Variance to

Budget


Expenditure:

Employees

Repairs and Maintenance Refer to Table 3.10.5

Other

Total Operational Expenditure

Net Operational Expenditure


Capital Expenditure Year 2018/2019: Pollution Control

R' 000

Capital Projects

2018/2019


Actual Expenditure

Variance from

original budget

Total Project Value

Total All

No capital projects


COMMENT ON THE PERFORMANCE OF POLLUTION CONTROL OVERALL:

Pollution Control is an operational programme within the Spatial Planning & Environmental Management Section. The lack of funding to fund high cost capital infrastructure such as air pollution monitoring stations and sampling equipment impacts negatively on the effectiveness of the function. Due to the financial constraints experienced by the municipality, the likelihood to source funding to expand the function is low. This section therefore mainly focuses on operational audits and monitoring compliance.








T 3.15.7

3.16 BIO-DIVERSITY; LANDSCAPE (INCL. OPEN SPACES); AND OTHER (EG.

COASTAL PROTECTION)

INTRODUCTION BIO-DIVERSITY AND LANDSCAPE

Bio-diversity as such is not managed by the Environmental Management Sub-section. The Regional-Bio-diversity plan is taken into consideration in the Spatial Development Framework and in the consideration in development applications. Parks and Cemeteries section is responsible for grass cutting on open spaces, sidewalks, traffic islands, community parks, cemeteries ans municipal facilities. This also includes the development and maintenance of parks, cemeteries, town entrances, management of the municipal nursery as well as cleaning and maintenance of municipal gardens at all facilities. All the grass cutting that was previously done by the contracted service providers is done internally by the personnel of Parks and Cemeteries. The inclusion of EPWP, NYS and Zivuseni interns is of great advantage to the section.





T 3.16.1


SERVICE STATISTICS FOR BIO-DIVERSITY AND LANDSCAPE

Landscaping of municipal gardens, community parks and town entrances is done in accordance with the pre-approved plans. During the 2018/2019 financial year no new park was developed due to financial constraints. Due to lack of land no new cemeteries were developed, however the Section: Town Planning is being kept informed with regards to the need for suitable burial ground. Grass cutting and maintenance thereof was done successfully in the following areas:

Area Number maintained

Community Parks 41

Cemeteries 12

Total 53

T 3.16.2


Bio-Diversity; Landscape and Other Policy Objectives Taken From IDP



Service Indicators *Previous Year

*Previous Year

*Current Year

*Current Year

*Current Year

*Following Year


Grass cutting on open spaces, sidewalks, parks, cemeteries, traffic islands and municipal facilities

Carletonville, Fochville, Wedela, Kokosi, Welverdiend, Greenspark, Blybank, Khutsong Proper and Khutsong South.

100% 100% 100% 100% 100% 100% 100% 100%

Tree pruning and maintenance

Carletonville, Fochville, Wedela, Kokosi, Welverdiend, Greenspark, Blybank, Khutsong Proper and Khutsong South

100% 100% 100% 100% 100% 100% 100% 100%

Physical Infrastructure Community Facilities (parks) planned vs developed

3 1 1 1 0 0 0 0


T 3.16.3


Employees: Bio-Diversity; Landscape and Other

Job Level

2017/2018 2018/2019



No. No. No. No. %

0 - 3 1 1 0 0 0%

4 - 6 3 3 2 1 33%

7 - 9 6 8 6 2 25%

10 - 12 7 40 12 28 70%

13 - 15 9 52 30 22 42%

Total 26 104 50 53 51%

Totals should equate to those included in the Chapter 4 total employee schedule. Employees and Posts numbers are as at 30 June. *Posts must be established and funded in the approved budget or adjustments budget. Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. This is the same as T3.13.4 as Parks and Cemeteries use the same team T 3.16.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.16.5

Financial Performance Year 0: Bio-Diversity; Landscape and OtherR'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.16.6

Capital Expenditure Year 0: Bio-Diversity; Landscape and Other

R' 000

Capital Projects

Year 0



COMMENT ON THE PERFORMANCE OF BIO-DIVERSITY; LANDSCAPE AND OTHER OVERALL:

The performance of the section has been considerably well, some needed material were bought to carry out operations. Main streets cleaning, grass cutting of open spaces, sidewalks traffic islands, community parks, and maintenance of graveyards were done using internal resources. Grass cutting was also done in other community facilities such as schools on special requests. The section also managed to attend to the Wedela graveyard which was not maintained in a while. The overall performance of the section is improving especially on the services that the municipality used to outsource which the municipality has now taken over.

Delete Directive note once comment is completed – Explain the priority of the four largest capital projects and explain the variations from budget for net operating and capital expenditure. Confirm your year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not then state how you intend to rectify the matter. Explain the priority of the four largest capital projects and explain variances from budget for net operating and capital expenditure. Also explain any likely variation to the total approved project value (arising from year 0 and/or previous year actuals, or expected future variations).

T 3.16.7


COMPONENT F: HEALTH

This component includes: clinics; ambulance services; and health inspections.

INTRODUCTION TO HEALTH

Health is a Provincial Function.

Note: Recent legislation includes the National Health Act 2004.




the year. Refer to support given to those communities that are living in poverty

T 3.17

3.17 CLINICS

INTRODUCTION TO CLINICS

Clinics is not a function of Merafong Municipality.





T 3.17.1

Concerning T 3.17.2

Delete Directive note once table is completed – Average patient waiting time and total medical staff

availability on an average day are obtained but sampling staff and patients on different days at

different times at regular intervals throughout the day.

T 3.17.2.1


3.18 AMBULANCE SERVICES

INTRODUCTION TO AMBULANCE SERVICES

Ambulance Services is a District Municipality’s function.





T 3.18.1


3.19 HEALTH INSPECTION; FOOD AND ABBATOIR LICENSING AND INSPECTION;

ETC

INTRODUCTION TO HEALTH INSPECTIONS; FOOD AND ABATTOIR LICENCING AND

INSPECTIONS, ETC

Health Inspections, Food and Abattoir Licensing and Inspection, etc. are not functions of

Merafong Municipality.





T 3.19.1


COMPONENT G: SECURITY AND SAFETY

This component includes: police; fire; disaster management, licensing and control of animals, and

control of public nuisances, etc.

INTRODUCTION TO SECURITY & SAFETY

This component is focused in safe guarding of the council assets, property, employees, executive mayor and other dignitaries, clients.

Community Safety Forum (CSF) is another wing/responsibility for municipal security section.

CSF it is a legislated forum, is the umbrella of all other crime forums such as Community Policing Forum (CPF) etc. The forum was established on May 2015 and it consists of many stakeholders such as SAPS, Social development, SANCA, Home Affairs etc. It is a very effective forum with quick response and communication through the social media (what’s up). The private company of Fidelity Security Services is backing up the municipal security. The challenge of private security, the council is losing money due to the theft taking place in their presence. Planning of installation of alarm system, CCTV camera and biometrix to all council infrastructures.

The objectives are to: - Enable communities to participate in the local planning and monitoring of the criminal justice

and social cluster department; - Promote closer co-operation and access to basic services at local level in order to improve

living conditions and community cohesion; and - Support and enhance crime prevention and education programs in partnership with JCPS and

Social Cluster departments; local government and communities.


T 3.20


3.20 POLICE

INTRODUCTION TO TRAFFIC POLICE

This component ensures law enforcement relating to roadworthy vehicles, driver fitness, road

conditions, promotion of road discipline, safety and education to road users and community safety

policing. All law enforcement activities are executed within the legislative framework of National Road

Traffic Act 93 of 1996, Municipal By-laws, Criminal Procedure Act 51 of 1977 and the Constitution of

the country.

The objective is to do traffic control thus reducing motor vehicle accidents. Public nuisance is

addressed through municipal by-laws. Stray animals within the municipality are dealt with in

conjunction with the SPCA as per a service level agreement.





T 3.20.1

Security and Safety Police Service Data

Details 2017/18 2018/19 2019/20

Actual No.

Estimate No. Actual No. Estimate No.

1 Number of road traffic accidents during the year 1925 1900 1791 1900

2 Number of by-law infringements attended 36 0 126 100

3 Number of traffic officers in the field on an average day 28 51 27 50

4 Number of traffic officers on duty on an average day 25 49 24 48

T 3.20.2

Concerning T 3.20.2

Delete Directive note once table is completed – the number of officers available is determined by

sampling the number of officers in the field and in offices and stations on the same day, sampling

different times of day and different days of the week throughout the year.

T 3.20.2.1


Police Policy Objective Taken from IDP


2017/2018 2018/2019 2019/2020

Target Actual

Target Actual

Service Indicators Target Actual


Reduction in road accidents

Reduction in road accidents over the years

1855 1900 1900 1791 1791

T 3.8.3


Employees: Police Officers

Job Level Police

2017/2018 2018/2019


equivalents)


posts)

Administrators No. No. No. No. %

Chief Police Officer & Deputy

Other Police Officers

4 - 6 5 9 5 4 44%

7 - 9 58 57 31 26 46%

10 - 12 25 32 25 7 22%

Total 88 98 61 37 38%


Year -1


Budget

Actual Variance to

Budget


Expenditure:

Police Officers

Other employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.20.5

Financial Performance Year 0: PoliceR'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.20.6

Capital Expenditure Year 0: Police

R' 000

Capital Projects

Year 0



COMMENT ON THE PERFORMANCE OF POLICE OVERALL:

Law enforcement operational plans are set with the objective to mainly reduce motor vehicle accidents,

reducing crime in the area, providing road safety education, road markings and signs, reduction of

illegal trading in the area and provision of other special services.

The motor vehicle accident rate increased as compared to previous years due to shortage of traffic

personnel. Increase in crime also played a role in this because of reduced staff compliment.








T 3.20.7

3.21 FIRE

INTRODUCTION TO FIRE SERVICES

Fire services are a competency of West Rand District Municipality.





T 3.21.1


Metropolitan Fire Service Data

Details 2017/2018 2018/2019 2019/2020

Actual No.

Estimate No.

Actual No.

Estimate No.

1 Total fires attended in the year Fire Services is a competency of West Rand District Municipality.

2 Total of other incidents attended in the year

3 Average turnout time - urban areas

4 Average turnout time - rural areas

5 Fire fighters in post at year end

6 Total fire appliances at year end

7 Average number of appliance off the road during the year

T 3.21.2


3.22 OTHER (DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL,

CONTROL OF PUBLIC NUISANCES AND OTHER)

INTRODUCTION TO DISASTER MANAGEMENT, ANIMAL LICENCING AND CONTROL, CONTROL

OF PUBLIC NUISANCES, ETC

Disaster Management, Animal Licensing and Control, Control of Public Nuisance and other are

not functions of Merafong City.





T 3.22.1


COMPONENT H: SPORT AND RECREATION

This component includes: community parks; sports fields; sports halls; stadiums; swimming pools; and

camp sites.

INTRODUCTION TO SPORT AND RECREATION An Annual Operational Plan (Calendar of Events) is drafted and submitted to the SRACH Portfolio for approval. The Sport & Recreation/Arts & Culture Department measures its annual performance in line with the Operational Plan. Solid partnerships have been established with District and Provincial Departments, stakeholders such as LFA and Arts Forums to ensure implementation of these programs. Priority is place on Mass Participation Programs which benefit majority of Sport & Arts Community within Merafong City. Sport and Recreation/Arts & Culture department renders service delivery to the community of Merafong City through programs outlined in the annually approved Calendar of Events. Delete Directive note once comment is completed – Provide brief introductory comments. Set out your top 3 service delivery priorities and the impact you have had on them during the year. Explain the measures taken to improve performance and the major efficiencies achieved by your service during the year. Refer to support given to those communities that are living in poverty.

T 3.23

3.23 SPORT AND RECREATION

SERVICE STATISTICS FOR SPORT AND RECREATION

SERVICES STATISTICS FOR SPORT & RECREATION 2018/2019

Month Program Implemented

August 2018 OR Tambo Soncini Games

April 2019 Easter Holiday Games

SERVICE STATISTICS FOR ARTS & CULTURE 2018/2019

Month Program Implemented

October 2018 Trailblazers Arts & Culture Day

February 2019 Poetic Vibration & Comedy/ Elijah Barayi

April 2019 School Music Choir Competition

May 2019 Di a Opela ( GACMA- Gauteng Choral Music Association)

SERVICE STATISTICS FOR SPORT FACILITIES 2018/19

Facility Name Statistics 17/18 Statistics 18/19

Popo Molefe Stadium 21 12

Gert Van Rensburg Sport Complex 13 3

Carletonville Sport Complex 373 233

Khutsong Stadium 128 104

T 3.23.1


Sport and Recreation Policy Objectives Taken From IDP


Year 2015/16 Year 2016/17 Year 2017/18

Year 2018/19


Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

*Current Year

*Following Year 2019/20



Provision and Management of Facilities

Multi-Purpose Community Centre in Khutsong South

0% 0% 0% 0% 0% 90% 10% 10%



Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.23.4

Financial Performance Year 0: Sport and Recreation

R'000

Details

Year 0



Employees: Sport and Recreation

Job Level

2017/18 2018/19



posts)

No. No. No. No. %

0 - 3 1 1 0 1 0%

4 - 6 2 2 0 2 100%

7 - 9 1 1 1 1 0%

10 - 12 2 4 2 2 50%

Total 6 8 3 6 75%



Capital Expenditure Year 2018/2019: Sport and Recreation

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure

Variance from

original budget

Total Project Value

Total All 0 7 175 7 014 100%

Khutsong Multi-Purpose Community Centre

0 7 175 7 014 100% 39 107


COMMENT ON THE PERFORMANCE OF SPORT AND RECREATION OVERALL: In accordance with the Revised Approved Calendar of Events for the 2018/2019 financial year, programs were implemented by Sport & Recreation/Arts & Culture. The Actors Youth Incubation Program through the Sello Maake ka Ncube Foundation continues to mentor and offer skills training to the youth of Merafong in Directing, Script writing, Acting and Dance. The 15 Youth from all around Merafong City rendered their first ever performance at the University of Johannesburg con Cowan Theatre on the 31 May 2019. Municipal financial constraints still pose challenges in implementation of the Calendar of Events however Majority of Sport & Recreation/ Arts & Culture programs were executed in partnership and collaboration with Local, District Municipalities as well as the Provincial Department of SACR. Shortage of staff, transport and office resources (e.g. Office Telephones) hamper and delay work productivity. The department continues to assist previously disadvantaged communities of Merafong with Free- Usage of Municipal Sport/Arts Facilities under the supervision of the Sports & Arts Organizers, this in hindsight gives young people in particular the opportunity to develop leadership skills in planning, organizing and leadership in events Delete Directive note once comment is completed – Explain the priority of the four largest capital projects and explain the variations from budget for net operating and capital expenditure. Confirm your year 5 targets set out in the IDP schedule can be attained within approved budget provision and if not then state how you intend to rectify the matter. Explain the priority of the four largest capital projects and explain variances from budget for net operating and capital expenditure. Also explain any likely variation to the total approved project value (arising from year 0 and/or previous year actuals, or expected future variations).

T 3.23.6

COMPONENT I: CORPORATE POLICY OFFICES AND OTHER SERVICES

This component includes: corporate policy offices, financial services, human resource services, ICT

services, property services.

INTRODUCTION TO CORPORATE POLICY OFFICES, Etc

The Department Corporate Shared Services consists of six (6) Units/Sections, namely: Industrial Relations, Employment Equity, Human Capital, ICT, Legal and Secretariat as well as Corporate Communication and Marketing. The implementation of the Human Resource Strategy is a guide in the Department and Human Resource Policies find their home here. Compliance with audit requirements is strived for as is compliance with legislated requirements, such as having scheduled Council meetings


T 3.24

3.24 EXECUTIVE AND COUNCIL

This component includes: Executive office (mayor; councilors; and municipal manager).

INTRODUCTION TO EXECUTIVE AND COUNCIL

The focus over the past years has been on delivering basic social needs and housing. In spite of the remaining backlogs, major strides have been made in this regard. However, there still remains a huge challenge in terms of ensuring that the institution does not just deliver houses and services, but creates integrated and sustainable settlements. Challenges experienced include geological problems experienced in parts of the Municipality, as well as financial challenges to extend services.




the year.

T 3.24.1

SERVICE STATISTICS FOR THE EXECUTIVE AND COUNCIL

NONE.

T 3.24.2


Year -1


equivalents)


total posts)

No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 3 3 3 0 0%

7 - 9 6 8 6 2 25%

10 - 12 7 15 7 8 53%

13 - 15 9 15 9 6 40%

16 - 18 11 21 11 10 48%

19 - 20 18 30 18 12 40%

Total 55 93 55 38 41%

Employees: The Executive and Council

Job Level

Year 0




‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days. T 3.24.4

Year -1


Budget

Actual Variance to

Budget


Expenditure:

Employees 125 244 250 248 2%


Other 45 244 250 248 2%



T 3.24.5

Financial Performance Year 0: The Executive and CouncilR'000

Details

Year 0



Budget Adjustment

Budget

Actual

Expenditure

Variance from

original budget

Total Project

Value

Total All 260 326 378 31%

Project A 100 130 128 22% 280

Project B 80 91 90 11% 150

Project C 45 50 80 44% 320

Project D 35 55 80 56% 90

T 3.24.6

Capital Expenditure Year 0: The Executive and Council

R' 000

Capital Projects

Year 0



COMMENT ON THE PERFORMANCE OF THE EXECUTIVE AND COUNCIL:








T 3.24.7

3.25 FINANCIAL SERVICES

INTRODUCTION FINANCIAL SERVICES

Delete Directive note once comment is complete – Provide brief introductory comments. Set out

priorities and the impact you have had on them during the year. Explain the measures taken to

improve performance and the major efficiencies achieved by financial service during the year.

T 3.25.1

Actual for

accounts

billed in

year

Proportion

of accounts

value billed

that were

collected in

the year %

Billed in

Year

Actual for

accounts

billed in year

Proportion

of accounts

value billed

that were

collected %

Estmated

outturn for

accounts

billed in year

Estimated

Proportion

of accounts

billed that

were

collected %

Property Rates

Electricity - B

Electricity - C

Water - B

Water - C

Sanitation

Refuse

Other

T 3.25.2

B- Basic; C= Consumption. See chapter 6 for the Auditor General's rating of the quality of the financial

Accounts and the systems behind them.

Year 1

R' 000

Debt Recovery

Details of the

types of account

raised and

recovered

Year -1 Year 0


Concerning T 3.25.2

Delete Directive note once table is completed – The proportion of account value billed is calculated

by taking the total value of the year’s revenues collected against the bills raised in the year by the

year’s billed revenues.

T 3.25.2.1






Increase in speed of payment of tariffs, tax demands, invoices No more than x% of creditors raised (in Rand

value) during the year outstanding (o/s) at year

end

No more than T0% of

current yr creditors

o/s at yr end

No more than A0% of


o/s at yr end

No more than T1% of


o/s at yr end

No more than T1% of


o/s at yr end

No more than A1% of


o/s at yr end

No more than T2% of


o/s at yr end

No more than T5% of

current yr creditors o/s

at yr end

No more than T5% of

current yr creditors o/s

at yr end

Reducing the number of invoices raised by increasing

advance payment for services rendered (A project requiring

partipation by all departments but let by the central finance

department)

x% reduction in number of invoices raised over the

previous year's target

T0% reduction in

invoices raised; target

limit of invoices

A0% reduction in


limit of invoices

T1% reduction in


limit of invoices

T1% reduction in


limit of invoices

A1% reduction in


limit of invoices

T2% reduction in


limit of invoices

T5% reduction in


limit of invoices

T5% reduction in


limit of invoices

Improving speed of legal measures to recover revenues Commence legal proceedings for recovery of

revenues within 4 weeks of the due date

Legal proceeding

within 4 weeks of due

date

Legal proceeding


date

Legal proceeding


date

Legal proceeding


date

Legal proceeding


date

% of legal proceeding

commenced within 4

weeks of due date


commenced within 4

weeks of due date


commenced within 4

weeks of due date

T 3.25.3


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal indicators'. *

'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the IDP must be fundable

within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by municipalities in which IDPs play a key role.

Financial Service Policy Objectives Taken From IDP

Outline Service Targets Year 0 Year 1 Year 3

Target Target


Employees: Financial Services

Job Level

Year 2017/2018 Year 2018/2019



No. No. No. No. %

0 - 3 3 5 3 2 40%

4 - 6 9 16 8 8 50%

7 - 9 34 50 36 14 28%

10 - 12 27 32 19 13 41%

13 - 15 1 1 1 0 0%

16 - 18 0 0 0 0 0%

19 - 20 0 0 0 0 0%

Total 74 104 67 37 36%


Financial Performance Year 2018/2019: Financial Services

R'000

Details

Year 2017/2018 Year 2018/2019


Adjustment Budget



Expenditure:

Employees 29351 34819 31695 32698 -6%

Repairs and Maintenance 1500 1500 100%

Other 346504 464922 503348 423765 -10%


Net Operational Expenditure -63017 170712 193294 -88122 294%


T 3.25.5

Capital Expenditure Year 2018/2019: Financial Services

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure

Variance from original budget

Total Project Value

Total All

NIL

Project A


COMMENT ON THE PERFORMANCE OF FINANCIAL SERVICES OVERALL:








T 3.25.7

3.26 HUMAN RESOURCE SERVICES

INTRODUCTION TO HUMAN RESOURCE SERVICES

The Human Capital Management Section of Merafong City Local Municipality is focused on providing the best personnel services through fair and transparent processes and procedures. It is also focused on effective recruitment procedures, training and staff empowerment, and providing expert and professional advice to staff and management on human resources-related issues. The Human Resources Section maintained its strategy during 2018/2019 to recruit qualified and competent staff to fill vacancies. Structured interviews were conducted together with work sampling-based tests to assist with the selection of the best candidates for appointment. Verification of qualifications, working record/history, possible fraudulent activities, and criminal record are being done for selected positions through an independent service provider before appointments are made. This prevented the Municipality from appointing staff without the necessary skills, competencies, and qualifications. In addition to the foregoing, a Workplace Skills Plan is being compiled, submitted to the Local Government Sector Education Training Authority (LGSETA) on an annual basis, and implemented accordingly to attend to the most critical skills development needs. It is usually complemented by the bursary scheme, which caters for longer-term qualification strategies. The bursary system could not be implemented for the financial year under review due to financial constraints. The Local Labour Forum, Staff Wellness Meetings, and Human Resources Development Meetings were being planned to take place on a monthly basis.


Delete Directive note once comment is complete – Provide brief introductory comments. Set out


improve performance and the major efficiencies achieved by HR service during the year.

T 3.26.1

SERVICE STATISTICS FOR HUMAN RESOURCE SERVICES

During the 2017/2018 financial year, the Merafong City Local Municipality implemented the Amended Local Government: Municipal Systems Act 32 of 2000 and Local Government: Regulations on Appointment and Conditions of Employment of Senior Managers (Government Notice 21 in Government Gazette 37245, dated 17 January 2014. Commencement date: 17 January 2014) by appointing the Section 56 Senior Managers permanently. This is an achievement to stabilize the institutions and ensure the provision of quality services to the community.

T 3.26.2






T 3.25.3


Note: This statement should include no more than the top four priority service objectives. The indicators and targets specified above (columns (i) and (ii)) must be incoporated in the indicator set for each municipality to which they apply. These are 'universal municipal

indicators'. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets set in the Year 1 Budget/IDP round. Note that all targets in the

IDP must be fundable within approved budget provision. MSA 2000 chapter 5 sets out the purpose and character of Intergrated Development Plans (IDPs) and chapter 6 sets out the requirements for the reduction of performance management arrangement by

municipalities in which IDPs play a key role.

Human Resource Services Policy Objectives Taken From IDP


Target Target


R'000

Details

Year 2017/2018 Year 2018/2019


Adjustment Budget



Expenditure:

Employees 9516 39085 34634 7838 -399%


Other 3088 32323 34338 11965 -170%




R' 000

Capital Projects

Year 2018/2019


Actual Expenditure


Total Project Value

Total All

NIL

Project A


COMMENT ON THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL:








T 3.26.7

3.27 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

This component includes: Information and Communication Technology (ICT) services.

INTRODUCTION TO INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

Merafong City Local Municipality Information Communication and Technology is a component of

Corporate Support and Shared Services. The section reports to the Director Corporate Support

Services.

Merafong ICT is playing an increasingly strategic role as an enabler of Merafong City local

municipality. The primary goals are to assure that the investment in ICT generate business value and

mitigate risks that are associated with ICT. Merafong Information Communication and Technology

support all ICT infrastructure and Operations on a daily basis in order to ensure the availability of

systems for services delivery objectives. The ICT section support the following,

- Network management – WAN,LAN, Telecommunication, Radio and wireless

- Software and data Support – management and support of data and software

- ICT Service Delivery Support – management of ICT contracts and assets



improve performance and the major efficiencies achieved by ICT service during the year.

T 3.27.1

SERVICE STATISTICS FOR ICT SERVICES

Upgrading/Installation of Network

Installation of computers/printers/software

Maintenance of hardware/e-mails/internet/servers

JULY 2018 31 65 45

AUGUST 2018 17 22 27

SEPTEMBER 2018

18 25 23

OCTOBER 2018 23 29 35

NOVEMBER 2018

10 33 47

DECEMBER 2018

7 8 17

JANUARY 2019 4 9 21

FEBRUARY 2019

12 25 28

MARCH 2019 20 35 32

APRIL 2019 18 10 14

MAY 2019 11 16 26

JUNE 2019 15 22 42

TOTAL 186 299 357

T 3.27.2


ICT Services Policy Objectives Taken From IDP


2017/2018 2018/2019 2019/2020 2020/2021


Service Indicators

*Previous Year

*Previous Year

*Current Year

*Current Year

*Following Year

(i) (ii) (iii) (iv) (v) (vii) (viii) (ix) (x)


Master Systems Plan % Implementation of DRP/BCP

95% 95% 100% 100% 100% 100% 100%


T 3.27.3


Employees: ICT Services

Job Level

2017/2018 2018/2019


equivalents)


No. No. No. No. %

0 - 3 1 1 1 0 0%

4 - 6 5 8 5 3 38%

7 - 9 3 3 2 3 100%

Total 9 12 8 6 50%


Financial Performance Year 2018/2019: ICT Services

R'000

Details

Year 2017/2018 Year 2018/2019


Adjustment Budget



Expenditure:

Employees 4015 5016 5044 4468 -12%


Other 8133 11368 11406 5156 -120%




T 3.27.5

Capital Expenditure Year 2018/2019: ICT Services

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure


Total Project Value

Total All

NIL

Project A



COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL:

During the year under review, ICT section implemented Master Systems Plan which resulted in a stable ICT environment. The ICT policies are adopted and computer users trained on all policies. ICT services are rendered by Merafong Technicians, such as hosting the Website, emails, internet services, network switches, radios and network connectivity, servers, hardware and telephones maintenance. The services rendered by internal ICT staff resulted in saving ICT costs previously paid to service providers. The section cleared all management findings through OPCA initiatives








T3.27.7

3.28 PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES

This component includes: property; legal; risk management and procurement services.

INTRODUCTION TO PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT SERVICES

Merafong’ s Departments and Sections operations are governed by a Risk Management framework

through which risks are identified and pro-actively managed in accordance with relevant guidelines.

Risk Management is more than an exercise of risk avoidance. It is as much about identifying

opportunities as avoiding or mitigating losses. Merafong ensured that such a risk framework exists,

outlining identification, assessment, response, monitoring, and reporting of risks and how they are

managed.

The Risk Management Policy has been developed to:

• Support the achievement of objectives and ensure service delivery to all stakeholders

• Protect the Municipality from those risks of significant likelihood and impact in the pursuit of

the Municipality’s stated strategic goals and objectives;

• Provide a consistent Risk Management framework in which the risks concerning business

processes and functions of the Municipality will be identified, considered and addressed in a

structured manner;

• Encourage pro-active rather than re-active Management

• Provide assistance to and improve the quality of decision making throughout the Municipality;

• Meet legal or statutory requirements; and

• Assist in safeguarding the Municipality’s assets, people, finance and reputation.

The risk management policy has been operationalized through an Enterprise Risk Management

Implementation Plan which is approved by the Accounting Officer on an annual basis. The plan

indicates all activities that will be undertaken in that particular financial year and these activities form

part of the Municipal Service Delivery Budget Implementation Plan (SDBIP) and monitored on a

monthly basis In the financial year in review all indicators were achieved 100%. Nevertheless in case

where there would have been underperformance the performance management processes of the

municipality allows that reasons for deviations be provided and addressed.

Currently the Risk Management function is under staffed, this situation is considered when the

Enterprise Risk Management Implementation Plan is developed. Currently the support that the

municipality is receiving from Provincial Treasury has been able to assist in other areas of the

implementation of the plan.

Procurement

The SCM unit has implemented the procurement of goods and services in a fair, transparent and demonstrated value for money to support service delivery of the municipality. During the procurement of goods and services the Supply Chain Management unit has relied on the Central Supplier Database system for the verification of Suppliers as part of compliance. SCM has achieved 68% of the implementation of procurement plan.

Legal

The section Corporate & Legal consist of Legal Services, Secretariat and Administration as well as the

Fleet section. The Administration section includes the Municipal Telephone Switchboard, Records and

Archive Management as well as the Document Reproduction Unit. Secretariat services are also

provided by the section by the compilation and distribution of various agendas for Council Meetings,

Mayoral Committee Meetings and Section 80 Committee Meetings. Minutes of these as well as other

meetings are also prepared and distributed by the section. Legal Services is a support function to the

whole Municipality. The Section assist with perusing and drafting of contracts and agreements,

provision of legal advice as well as assisting with legal action instituted by the Municipality or against

the Municipality. The section also assists with perusing and drafting policies, by-laws and other

documentation. The Fleet section assists the various Departments to manage the municipal fleet, the

logistics regarding fuel provision and servicing of vehicles.



improve performance and the major efficiencies achieved by Property, legal, risk management and

procurement services during the year.

T3.28.1


SERVICE STATISTICS FOR PROPERTY; LEGAL; RISK MANAGEMENT AND PROCUREMENT

SERVICES

In the year under review, the Enterprise Risk management plan was approved by the Accounting Officer and was implemented to ensure the embedding of risk management in the day to day activities of the municipality. The activities of the plan are fully achieved. The risk identification and assessment were done for both Strategic and Operational risks. Therefore both Strategic and Operational risk registers were developed. In this financial year fraud risk assessments were also done in a separate process in order to assess risk exposure in that area. Action plans were then put in place to mitigate these risks and these are monitored on a quarterly basis to ensure that they don’t impact negatively to the set objectives. For Risk Management to be fully implemented and effective the key success factors which influence

the risk culture need to be met as follows:

NO. KEY SUCCESS FACTORS

CONSIDERATIONS CURRENT STATUS

1. Tone at the Top Management commitment and Accountability linked to Performance Agreements

Risk Management included in the performance agreements of senior management. This is the commitment to the processes of risk management with the organization.

2. Governance of Risk Management/ Accountability

Effective Risk Management Policies, Committees (RMC & AC) and Reporting

Risk Management oversight is exercised by the following structures: Risk Management Committee (RMC), and Audit Committee. The RMC has approved Terms of Reference and the Municipality has appointed an Independent External Chairperson to chair the meetings.

3. Risk Function Capacity

Risk Structure, Skills and Capacity

The Municipality has a functional Risk Management Unit in place for the implementation of an Annual Enterprise Risk Management Plan

4. Risk Management Methodology

Risk Management Frameworks and Plans; Risk Assessment Systems and Processes

Risk Management Frameworks and Plans are in place; Risk Assessment Systems and Processes are in place. During this financial year frameworks and policies were reviewed and approved by Council .

5. Good Communication and Training

Management and employee awareness, training and development and workshops

Training and Awareness workshop was undertaken in November 2018

6. Organizational Integration

Incorporation of risk practices into policies, strategies, plans, processes and procedures for day-to-day implementation. Risk Management influencing the Control Environment

The Strategic Risk Assessment is aligned to the Strategic planning process of the Municipality. The risk assessments are conducted at a strategic and operational level. Risk registers are monitored and reported quarterly through the Risk Management Committee.

MERAFONG STRATEGIC RISKS PROFILE Graphical representation of the movement of residual strategic risks over a period of three years (2016/17 to 2018/19) and the risk categories for 2018/19:

RESIDUAL STRATEGIC TREND ANALYSIS

2018/19 STRTATEGIC RISKS PER CATEGORY

No: 1 2 3 4 5 6 7 8 9

Risk Name

Ageing dilapidate infrastructure and capacity of infrastructure to render sustainable services

Environmental pollution

Declining local economy

Increasing informal settlements

Inadequate ICT services to support Municipal operations

Deterioration of the geological conditions (dolomitic)

Fraud and corruption

Financial viability

Inadequate human resources to fulfill Municipal mandate


Risk Category

Service delivery

Natural environment

Economic environment

Social environment

Information Technology

Natural environment

Fraud and corruption

Financial Service delivery

Procurement:

There was one local service provider who was awarded the tender (panel of attorneys for three years)

and six youth companies benefited in the request for quotation (RFQ) in the procurement process.

The SMME in Merafong benefited under the sub-contracting services from the following project:

* Housing – RDP Project

* Distress Mining Grant

* Other Infrastructure Development projects

Challenges

The shortage of personnel in SCM is not supporting the pillars of SCM as the key positions are vacant

and MSCOA system is not yet aligned with the operations in SCM. The other challenges emanated

due to cash flow constraints as lot of services providers especially SMMEs are no longer in making

business with the Municipality due to long term awaiting payments.

Legal

Three Municipal properties were transferred to buyers during the period under review. A number of

agreements and contracts were perused and drafted and general legal work done as part of the

functions of the section. A number of Agreements and Contracts were perused and drafted and

general legal work done as part of the functions of the section. The section also assisted with 6 court

cases against the Municipality.

T 3.28.2


Property; Legal; Risk Management; and Procurement Services Policy Objectives Taken From IDP


Service Indicators Target Actual Target Actual Target Target Actual


Property No objectives in terms of the IDP

Legal No objectives in terms of IDP

Risk Management

Effective Risk Management through improved performance management and accountability

Percentage Risk Management planned versus implemented

100% 100% 100% 100% 100% 100% 100%

Ethical Administration and Good Governance Number of ethics management activities implemented versus planned

100% 100% 100% 100% 100% 100% 100%

Procurement Services

Local Empowerment through Township Revitalization (Report will give progress on %spending of the municipalities budget with suppliers whose businesses are based within Townships)

% of RFQ and tenders awarded to Township service providers

12 12 12 12 12 12

Implementation of SCM policy and Regulations

No. of Quarterly reports on SCM policy implementation submitted to the MM

4 4 4 4 4 4

Compliance to Supply Chain Management policy and Regulations(As per MSCM Regulation 3 municipalities must review the implementation of SCM at least annually)

Annual Review of SCM Policy

1 1 1 1 1 1

Development of annual procurement plan Approved annual procurement plan

1 1 1 1 1 1

Effective logistics management(as per MSCM Regulation 39 requirement

Stocktaking report 1 1 0 0 0 0

T 3.28.3


Employees: Property; Legal; Risk Management; and Procurement Services

Job Level

Year 2017/18 Year 2018/19


equivalents)


No. No. No. No. %

0 - 3 3 3 2 1 33%

4 - 6 0 6 0 6 100%

7 - 9 4 5 4 1 100%

10 - 12 0 0 0 0 0%

13 - 15 0 0 0 0 0%

16 - 18 0 0 0 0 0%

19 - 20 0 0 0 0 0%

Total 3 7 2 5 71%

T3.28.4

Financial Performance Year 2018/2019: Property; Legal; Risk Management and Procurement Services

R'000

Details

Year 2017/2018 Year 2018/2019


Adjustment Budget


Total Operational Revenue 0%

Expenditure:

Employees 7273 9261 8078 8412 -10%

Repairs and Maintenance 0%

Other 6389 11177 11260 1487 -652%




T 3.28.5

R' 000

Capital Projects

Year 2018/2019


Actual Expenditure


Total Project Value

Total All

NIL

Project A


COMMENT ON THE PERFORMANCE OF PROPERTY SERVICES OVERALL:

The Section: Legal & Secretariat is managing to provide the required service. Services are provided to

external and internal clients.








T 3.28.7

COMPONENT J: MISCELLANEOUS

This component includes: the provision of Airports, Abattoirs, Municipal Courts and Forestry as

municipal enterprises.

INTRODUCTION TO MISCELLANEOUS

THE MUNICIPALITY DOES NOT RENDER THE ABOVE SERVICES (Airports, Abattoirs, Municipal

Courts and Forestry)

T 3.29.0

COMPONENT K: ORGANISATIONAL PERFOMANCE SCORECARD

This component includes: Annual Performance Scorecard Report for the current year.


No. Strategic

Focus

Area (IDP)

Key

Performance

Indicator

Baseline

(Previous

years

actual)

Demand Backlog Annual

Target

(Year)

5 Year

Target

Means of

verification

Unit of

Measure

Quarterly

Target

Quarterly

actual

Status

(Achieved/

Not

Achieved)

Measures

taken to

improve

performance

Performance

Monitoring

Quality

Assurance

comment

Management

Response

Internal

Audit

Comment

Portfolio

of

Evidence

Plan Number: Plan Name

Note: Set out key plans as per performance scorecard e.g Plan 1: Sustain and build natural enviroment, Plan 2: Economic Development and job creation, Plan 3: Quality living enviroment, Plan 4: Safe, healthy and secure enviroment, Plan

5: Empowering our citizen, Plan 6: Promoting cultural diversity, Plan 7: Good governance, Plan 8: Financial viability and sustainability. T 3.30

Municipality | CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE 202

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT PERFORMANCE

(PERFORMANCE REPORT PART II)

INTRODUCTION

To ensure that the organization’s effectiveness is increased, the Municipality conducts a personnel needs analysis and makes the necessary provision in the Municipal Budget on an annual basis. To ensure effectiveness and efficiency within the organisation, the Municipality annually develops a Workplace Skills Plan, after conducting a training needs analysis. The necessary training is then provided depending on available financial resources. Employees are also provided with all the necessary tools including, but not limited to, ICT tools, furniture, and machinery. Necessary policies, systems, procedures, and mechanisms are put in place to ensure organizational development. These include, but are not limited to, recruitment, selection, training, discipline, and the retention of staff. Employees are developed as far as possible to assist them to function effectively as human beings and to reach their full potential. Changes in business process and changing environment requires the organization to review its organizational structure on a regular basis. The municipality is in the final stage of adopting the new organisational structure that is aligned to the strategic objectives. Job evaluation is the foundation for basic salary structures. The task which are needed to be executed by the incumbents of the various posts on the structure are captured in job profiles. In order to determine appropriate and fair remuneration for each post, the content of the posts will be evaluated by means of a job evaluation system.

Delete Directive note once comment is completed - Provide a brief introduction to your

municipality’s organisational development function.

T 4.0.1

Municipality | (PERFORMANCE REPORT PART II) 203

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES

Employees

Description

Year 2017/18 Year 2018/19

Employees Approved

Posts Employees Vacancies Vacancies

No. No. No. No. %

Water 63 197 92 105 %

Waste Water (Sanitation) 34 - - - %

Electricity 62 122 64 58 %

Waste Management 127 252 123 129 %

Housing 11 24 11 13 %

Waste Water (Stormwater Drainage) 0 0 0 0 %

Roads 29 71 27 44 %

Transport (Public Works)

18 126 78 48 %

Planning 8 27 13 14 %

Local Economic Development 2 9 2 7 %

Planning (Strategic & Regulatory) 5 7 6 1 %

Local Economic Development 0 – 0

– %

Community & Social Services 107 268 173 95 %

Environmental Protection 2 2 2 0 %

Health 0 0 0 0 %

Security and Safety 119 203 113 90 %

Sport and Recreation 6 13 3 10 %

Corporate Policy Offices and Other 181

327 161 166 %

Totals 854 1648 868 786 –

Headings follow the order of services as set out in chapter 3. Service totals should equate to those included in the Chapter 3 employee schedules. Employee and Approved Posts numbers are as at 30 June, as per the approved organogram. T 4.1.1

Vacancy Rate: Year 2018/19 Designations *Total Approved

Posts *Vacancies

(Total time that vacancies exist using fulltime equivalents)

*Vacancies (as a proportion of total posts in each

category)

No. No. %

Municipal Manager 1 0 100%

CFO 1 0 100%

Other S56 Managers (excluding Finance Posts)

6 1 80%

Other S56 Managers (Finance posts) 0 0 0.00

Police officers 0 0 0.00

Fire fighters 0 0 0.00

Senior management: Levels 1 (excluding Finance Posts) 23 16 36.%

Senior management: Levels 1 (Finance posts) 5 3 80.%

Highly skilled supervision: levels 3-5 (excluding Finance posts) 51 46 60.78%

Highly skilled supervision: levels 3-5 (Finance posts) 8 6 66.67%

Total 95 72 57.45

Note: *For posts which are established and funded in the approved budget or adjustments budget (where changes in employee provision have been made). Full-time equivalents are calculated by taking the total number of working days lost (excluding weekends and public holidays) while a post remains vacant and adding together all such days lost by all posts within the same set (e.g. ‘senior management’) then dividing that total by 250 to give the number of posts equivalent to the accumulated days.

T 4.1.2

Turn-over Rate

Details Total Appointments as of beginning of Financial

Year

Terminations during the Financial Year

Turn-over Rate*

No. No.

2016/2017 10 87 10%

2017/2018 14 42 5%

2018/2019 8 50 58%

* Divide the number of employees who have left the organisation within a year, by total number of employees who occupied posts at the beginning of the year

T 4.1.3


COMMENT ON VACANCIES AND TURNOVER:

All vacancies are advertised in the press and official notice boards according to policies in this regard. All senior management positions are occupied. Appointments on an acting basis were made where there were vacancies occurred. Internal staff can apply for promotional positions if they meet the requirements in qualifications, skills, and experience. Internal promotions were done where our internal candidates were found to be meeting the requirements for the posts. The Employment Equity Plan is always taken into account when making appointments. The turnaround time for the filling of vacant posts varies depending on the scarcity of skills in the labour market, qualifications and experience required. The target is to fill a vacancy within three months but due to financial constrains the turnaround time could not be achieve due to cash-flow problems The reason for turnover is mainly due to resignations, retirement, death, and dismissals. We have merge the activities of the OHS and Employee Assistance Programme to ensure the effectiveness of the staff wellness the year. There is also a long service recognition system in place which is implemented in terms of the conditions of service and internal policies. However, due to other institutions offering more benefits than we can afford, it is not always possible to retain scarce and skilled employees.

Delete Directive note once comment is completed - Detail the attempts made to fill the posts of

senior management and highly skilled supervision and explain why there are no appropriate internal

staff to fill the vacancies. Explain how long, at a minimum, the section 57 vacancies (including MM

and CFO) have remained unfilled and the reasons for this. Give reasons for the turnover rate

experienced by your municipality. Explain measures taken to successfully attract and retain staff.

T 4.1.4

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT

An Employment Equity Plan has been developed and implemented and is annually reviewed. Annual reports on the implementation of the plan are sent to the Department of Labour at the end of September as required by law. A variety of policies were developed and implemented as indicated in Section 4.2 on policies.

Note: MSA 2000 S67 requires municipalities to develop and adopt appropriate systems and

procedures to ensure fair; efficient; effective; and transparent personnel administration in accordance

with the Employment Equity Act 1998.

Delete Directive note once comment is completed – Discuss the range and emphasis of workforce

management at your municipality and briefly mention progress made with the development of

workforce policies and management practices during the year.

T 4.2.0

4.2 POLICIES

HR Policies and Plans

Name of Policy Completed %

Reviewed %

Date adopted by council or comment on failure to adopt

1 Affirmative Action Yes 100% Contained in EE Plan

2 Attraction and Retention No 20% In process of development

3 Code of Conduct for employees Yes 100% Part of conditions of service

4 Delegations, Authorisation & Responsibility

Yes 80% Financial Delegations 30 June 2005

5 Disciplinary Code and Procedures Yes 100% Part of conditions of service

6 Essential Services Yes 100% Part of conditions of service

7 Employee Assistance / Wellness Yes 50% To be developed 30/06/2017

8 Employment Equity Yes 100% Contained in Employment Equity Plan

9 Exit Management Yes 80% Employee Practice

10 Grievance Procedures Yes 100% Part of condition of services (LRA)

11 HIV/Aids Yes 50% To be developed

12 Human Resource and Development Yes 60% 20 March 2013

13 Information Technology Yes 80% 27 March 2014

14 Job Evaluation Yes 50% 20 March 2014

15 Leave Yes 100% Part of condition of services

16 Occupational Health and Safety Yes 100% 20 March 2013 (ill health)

17 Official Housing Yes 80% In process to development

18 Official Journeys/Travel and Subsistence

Yes 100% 20 March 2013

19 Official transport to attend Funerals Yes 100% Policy to be reviewed

20 Official Working Hours and Overtime Yes 80% 20 March 2013

21 Organisational Rights Yes 80% Part of conditions of service

22 Payroll Deductions Yes 100% Part of conditions of services

23 Performance Management and Development

No 10% To be developed after adoption of wage curve salary payment level 1-4 1/7/18

24 Recruitment, Selection and Appointments

Yes 80% 24 Nov 2014

25 Remuneration Scales and Allowances

Yes 80% Part of conditions of service (SALGA)

26 Resettlement Yes 60% 20 November 2014

27 Sexual Harassment Yes 90% Part of condition of services(LRA)

28 Skills Development Yes 50% 29 October 2009

29 Smoking Yes 60% 7 December 2010

30 Special Skills Yes 60% 20 March 2013 (learnerships)

31 Work Organisation Yes 80% Part of conditions of services

32 Uniforms and Protective Clothing Yes 90% 30 September 2014

33 Other: Risk Management

34 Cellphone Yes 80% 30 September 2014

35 Fleet Management Yes 80% 30 September 2014

T 4.2.1


COMMENT ON WORKFORCE POLICY DEVELOPMENT:

Workplace policies are developed and reviewed as and when necessary in consultation with labour as prescribed by the relevant pieces of labour legislation and signed collective agreements.

Delete Directive note once comment is completed – Comment on progress made during the year

and plans for completing this work.

T 4.2.1.1

4.3 INJURIES, SICKNESS AND SUSPENSIONS

Number and Cost of Injuries on Duty

Type of injury Injury Leave Taken

Employees using injury leave

Proportion employees using sick

leave

Average Injury

Leave per employee

Total Estimated

Cost

Days No. % Days R'000

Required basic medical attention only

75 10 13% 15 191 896.75

Temporary total disablement

Permanent disablement

Fatal

Total 75 10 13% 15 191 896.75

T 4.3.1

Number of days and Cost of Sick Leave (excluding injuries on duty)

Salary band

Total sick leave

Proportion of sick leave

without medical

certification

Employees using sick

leave

Total employees

in post*

*Average sick leave

per Employees

Estimated cost

Days % No. No. Days R' 000

MM and S57 120 4.00% 6 6 20.00

Senior Management (Level 1-2) 241 2.10% 11 14 17.21

Highly Skilled Supervision (Level 3-5) 541 7.21% 39 59 9.17

Highly Skilled Production (Level 6-8)) 1632 5.48% 132 171 9.54

Skilled (Level 9-12) 1971 7.35% 175 281 7.01

Lower skilled (Level 13-15) 1678 10.23% 173 371 4.52

Total 6183 6.06% 536 902 6.85 0

* - Number of employees in post at the beginning of the year

T 4.3.2 *Average is calculated by taking sick leave in column 2 divided by total employees in column 5


T 4.3.3

COMMENT ON INJURY AND SICK LEAVE:

Special sick leave is taken in the case of injury on duty. An Occupational Health and Safety (OHS) Policy is in place and displayed at all workplaces. All departments are required to follow this policy. Regular OHS inspections and safety audits are carried out during the year to identify any new health and safety risks. Departments were advised in terms of handling OHS matters. Training was done on a regular basis (e.g. first aid and safety representative). Accidents and injuries on duty were investigated in terms of relevant legislation. Sick leave was monitored by HODs, and proper record was kept of all leave and sick leave taken. Where necessary, officials may be sent to medical practitioners appointed by Council for second opinions in cases of extended sick leave. Delete Directive note once comment is completed – Comment on injury and sick leave indicated in the above tables. Explain steps taken during the year to reduce injuries and follow-up action in relation to injury and sick leave (e.g. are injuries examined by the municipality’s own doctor; are those taking long or regular periods of sick leave monitored by municipality’s doctor; and are personal records maintained of the number of instances of sick leave and amount of time taken each year?)

T 4.3.4

Number and Period of Suspensions Position Nature of Alleged

Misconduct Date of

Suspension Details of Disciplinary Action taken or Status of Case and Reasons why not Finalised

Date Finalised

NO SUSPENSIONS IN THIS FINANCIAL YEAR T 4.3.5

Disciplinary Action Taken on Cases of Financial Misconduct Position Nature of Alleged Misconduct and

Rand value of any loss to the municipality

Disciplinary action taken Date Finalised

5 Cashiers Theft of municipal money 1 Dismissed Apr-19

1 Found not guilty Apr-19

1 Demoted Jan-19

2 Matters are still in progress

T 4.3.6

COMMENT ON SUSPENSIONS AND CASES OF FINANCIAL MISCONDUCT:

The two matters that are pending will be heard in September 2019.

Delete Directive note once comment is complete – Comment on suspension of more than 4 months

and on other matters as appropriate.

T 4.3.7


4.4 PERFORMANCE REWARDS

Expenditure on

rewards Year 1

Proportion of

beneficiaries within

group

R' 000 %

Female 20 9 45%

Male 30 12

Female

Male

Female

Male

Female

Male

Female

Male

Female

Male

50 21

Yes/No

T 4.4.1

Note: MSA 2000 S51(d) requires that … ‘performance plans, on which rewards are based should be aligned with

the IDP’… (IDP objectives and targets are set out in Chapter 3) and that Service Delivery and Budget

Implementation Plans (developed under MFMA S69 and Circular 13) should be consistent with the higher level

IDP targets and must be incorporated appropriately in personal performance agreements as the basis of

performance rewards. Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as

well as in the numbers at the right hand side of the column (as illustrated above).

Highly skilled production (levels 6-8)

Performance Rewards By Gender

Lower skilled (Levels 1-2)

Skilled (Levels 3-5)

Beneficiary profile

Gender

Designations

Total number

of employees

in group

Number of

beneficiaries

Highly skilled supervision (levels 9-12)

Senior management (Levels 13-15)

MM and S57

Total

Has the statutory municipal calculator been used as part of the evaluation process ?

COMMENT ON PERFORMANCE REWARDS:

Performance management system is applied to Municipal Manager and Section 56 Executive Directors

who report to the Municipal Manager. Assessments were done and bonuses paid to all Managers who

were assessed for the 2017/2018 Financial Year.

Delete Directive note once comment is completed – Comment as appropriate.

T 4.4.1.1

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT

Note: MSA 2000 S68 (1) requires municipalities to develop their human resource capacity to a level

that enables them to perform their functions and exercise their powers in an economical, effective,

efficient and accountable way.

Delete Directive note once comment is completed – Discuss the way ahead and the improvements

made and the challenges faced for capacity development in your municipality.

T 4.5.0


4.5 SKILLS DEVELOPMENT AND TRAINING

No.

Actual:

End of

Year

2017/18

Actual:

End of

Year

2018/19

Year

2018/19

Target

Actual:

End of

Year

2017/18

Actual:

End of

Year

2018/19

Year

2018/19

Target

Actual:

End of

Year

2017/18

Actual:

End of

Year

2018/19

Year

2018/19

Target

Actual:

End of

Year

2017/18

Actual:

End of

Year

2018/19

Year

2018/19

Target

Female 4 0 0 0 1 1

Male 3 0 0 1 2 1 2

Female 2 0 0 3 3 3 3

Male 3 0 0 4 4 4 4

Female 4 0 0 2 2 2 2 2

Male 8 0 0 4 4 4 4 4

Female 8 0 0 1 1 1 1 1

Male 6 0 0 2 2 2 2

Female 18 0 0 6 7 6 7

Male 20 0 0 11 12 11 12

Total 0 76 0 0 0 0 0 7 34 38 0 34 38

T 4.5.1*Registered with professional Associate Body e.g CA (SA)

Skills Matrix

Management level Gender Employees

in post as

at 30 June

Year

Number of skilled employees required and actual as at 30 June Year 2018/2019

Learnerships Skills programmes & other

short courses

Other forms of training Total

MM and s57

Councillors, senior officials

and managers

Technicians and associate

professionals*

Professionals

Sub total


Description A.

Total number of

officials employed

by municipality

(Regulation

14(4)(a) and (c))

B.

Total number of

officials employed

by municipal

entities

(Regulation

Consolidated:

Total of A and B

Consolidated:

Competency

assessments

completed for A

and B

(Regulation

Consolidated:

Total number of

officials whose

performance

agreements

comply with

Consolidated:

Total number of

officials that meet

prescribed

competency

levels

Financial Officials

Accounting officer 1 0 1 1 1 1

Chief financial officer 1 0 1 1 1 1

Senior managers 5 0 5 5 5 5

Any other financial officials 0 0 0 0 0 0

Supply Chain Management

Officials

Heads of supply chain

management units1 0 1 0 0 0

Supply chain management

senior managers0 0 0 0 1

TOTAL 8 0 8 7 7 8

T 4.5.2

Financial Competency Development: Progress Report*

* This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007)


No. Original

Budget

Actual Original

Budget

Actual Original

Budget

Actual Original

Budget

Actual

Female 0 0 0 0 45000 0 0 0

Male 0 0 0 0 90000 0 0 0

Female 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0

Female 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0

Female 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0

Female 0 0 0 0 25000 0 25000 0

Male 0 0 0 0 25000 0 25000 0

Female 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0

Female 50000 0 0 0 0 0 50000 0

Male 50000 0 0 0 0 0 50000 0

Female 0 0 50000 0 0 0 50000 0

Male 0 0 50000 0 0 0 50000 0

Female 0 0 0 0 1800 2100 1800 2100

Male 0 0 0 0 115000 0 115000 0

Total 0 100000 0 100000 0 301800 2100 501800 2100

0,53% 347007

T4.5.3

Service and sales workers

MM and S57

Legislators, senior officials

and managers

Professionals

Technicians and associate

professionals

Clerks

Plant and machine

operators and assemblers

Elementary occupations

Sub total

*% and *R value of municipal salaries (original budget) allocated for workplace skills plan.

Management level Gender

Original Budget and Actual Expenditure on skills development Year 2019/20

Learnerships Skills programmes

& other short

courses

Other forms of

training

Total

Employees

as at the

beginning

of the

financial

year

COMMENT ON SKILLS DEVELOPMENT AND RELATED EXPENDITURE AND ON THE FINANCIAL

COMPETENCY REGULATIONS:

Delete Directive note once comment is completed – Comment on the adequacy of training plans

and the effectiveness of implementation at your municipality. Explain variances between actual and

budgeted expenditure. Also comment on the adequacy of funding (e.g. is it intended to increase or

decrease this level of spending in future years and how is the value of the training activity assessed?)

Refer to MFMA Competency Regulations, the range of officials to which it relates and the deadline of

2013 by which it will become fully effective. Discuss the progress made on implementation at your

municipality as reflected in T4.5.4 above.

T 4.5.4

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE

Delete Directive note once comment is completed – Explain the importance of managing workforce

expenditure, the pressures to overspend and how spending is controlled (e.g. within approved

establishment and against budget and anticipated vacancy rates arising from turnover). Also explain

how municipality seeks to obtain value for money from work force expenditure.

T 4.6.0

4.6 EMPLOYEE EXPENDITURE

Source: MBRR SA22 T 4.6.1

COMMENT ON WORKFORCE EXPENDITURE:

Council is experiencing serious cash flow difficulties. A Resolution was taken by council that vacancies

cannot be filled. As can be seen from the graph below that despite an annual increase awarded to

employees,’ salaries decreased comparing to the previous financial year.

Delete Directive note once comment is completed – Explain the spending pattern in the context of

the actual and two previous years plus the budget year. Refer to implications for workforce ratio in

Chapter 5. Comment on factors influencing workforce expenditure during the year.

T 4.6.1.1


Number Of Employees Whose Salaries Were Increased Due To Their Positions Being Upgraded

Beneficiaries Gender Total

Lower skilled (Levels 1-2) Female

Male

Skilled (Levels 3-5) Female

Male

Highly skilled production (Levels 6-8)

Female

Male

Highly skilled supervision (Levels9-12) Female

Male

Senior management (Levels13-16) Female

Male

MM and S 57 Female

Male

Total 0

Those with disability are shown in brackets '(x)' in the 'Number of beneficiaries' column as well as in the numbers at the right hand side of the column (as illustrated above). T 4.6.2

Employees Whose Salary Levels Exceed The Grade Determined By Job Evaluation

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation

Job evaluation is not yet finalised still in progress

T 4.6.3

Employees appointed to posts not approved

Department Level Date of

appointment No.

appointed Reason for appointment when no

established post exist

NONEe

T 4.6.4

COMMENT ON UPGRADED POSTS AND THOSE THAT ARE AT VARIANCE WITH NORMAL

PRACTICE:

• In terms of the policy of Council, no occupied post can be upgraded; therefore, no employees had

their salaries increased due to the positions upgraded.

• The job evaluation process has not been completed yet, and employees are paid in terms of the

Industrial Council determination. As soon as the job evaluation process has been finalised, the

results thereof will be considered for finalisation.

• No employees are appointed to posts not approved, and no employees are appointed to unfunded

positions.

Delete Directive note once comment is completed – Comment on T4.6.2 as appropriate and give

further explanations as necessary with respect to T4.6.3 and T4.6.4.

T 4.6.5

DISCLOSURES OF FINANCIAL INTERESTS

The disclosure of financial interest is done annually for Section 56 and Councillors and all Officials.

Detailed information contained in Appendix “J”.

Delete Directive note once comment is completed – Refer to disclosures made by officials and

councillors concerning their financial interests as required by PM Regulations 805 of 2006 are set out

in Appendix J. Make other comments as appropriate.

T 4.6.6

Municipality | CHAPTER 5 – FINANCIAL PERFORMANCE 219

CHAPTER 5 – FINANCIAL PERFORMANCE

INTRODUCTION

Chapter 5 contains information regarding financial performance and highlights specific

accomplishments. The chapter comprises of three components:

Component A: Statement of Financial Performance

Component B: Spending Against Capital Budget

Component C: Other Financial Matters

Council closed off with a deficit of R87.720 Million comparing to a budgeted deficit of R284,882 Million.

Council’s cash flow had deteriorated in 2018/2019.

Council’s liquidity ratio had deteriorated in 2018/2019. The non-achievement of the 70% debtor

collection rate, the water losses of R68.3m and electricity loss to a total amount of R118.9m impacted

negatively on the cash flow.

An amount of R50 Million was invested with VBS Mutual bank. Council received notice on the 11

March 2018 that the bank was placed under curatorship by the South African Reserve Bank. The

curatorship detailed that all deposits and interest payments have been suspended. These funds were

grant funding earmarked for the execution of capital projects. These projects were completed in

2017/2018 and had to be funded out of councils own revenue. A claim was submitted to the curator

during 2018/2019 financial year. At the date of finalisation of the financial statements, the municipality

is not in a position to speculate on the prospects of the successful recovery of the investment.

On 02 May 2016 the MEC for Local Government placed Merafong City LM under Section 154 (1) of

the Constitution, requiring the National and Provincial government to assist the municipality in

developing capacity such that it is able to fulfil its local government objects as per Section 152 of the

Constitution. A section 154 Implementation Plan was approved and is being implemented with the

assistance from Provincial Treasury and CoGTA.

On 27 September 2017 Merafong City LM Council resolved to implement various actions (20 Point

Plan) aimed at improving credit control, reducing water and electricity losses and indigent

management. A priority financial turnaround plan was approved by Council during October 2018

focussing on the three main priorities from the 20 point plan, being improved collection; reduction of

water losses and reduction of electricity losses. The implementation of the priority financial turnaround

plan will only be realised over the medium to long term period.

The going concern is further impacted negatively by the outcome of the mine valuations appeals which

was issued by the valuation appeal board in 2014. This matter has not been finalised to date due to

the review application by Merafong in High Court dealing with incorrect valuation methodology for the

period 1 July 2012 to 1 July 2015. A positive outcome of this process will have a significant impact on

the financial sustainability of the municipality. As at the end of the reporting period, the establishment

of the valuation appeal board by the MEC: CoGTA was not yet finalised. This has resulted in that the

municipality could not finalize the supplementary valuations for the mines.

Based on the above factors as well as ratio’s disclosed the municipality has a material uncertainty and

therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of

business.


and creditors were prioritised for payment.

Council were not be able to cover its fixed operating expenditure.

Delete Directive note once comment is completed - Please explain how your municipality sought to

contain inflationary pressures during the financial year. Take the 5 most expensive consultancy

arrangements in year 0 and explain the costs, the reasons for the engagements and the results.

Include such other introductory remarks as you wish.

T 5.0.1

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE

INTRODUCTION TO FINANCIAL STATEMENTS

INTRODUCTION TO FINANCIAL STATEMENTS

Note: Statements of Revenue Collection Performance by vote and by source are included at

Appendix K.

Current Ratio

2016/17 2017-2018 2018/2019

1:0.79 1:0.5 1: 0.4


assets. The industry usually looks for a ratio of 2:1, however the acceptable current ratio is1:1 for

municipalities. Council had achieved a ratio of 1:0.4 which shows councils ability to settle existing short

term liabilities.

In accordance with the current ratio and liquidity ratios Merafong City Local Municipality is still under

severe pressure from a liquidity point of view. In order for these ratios to be in line with industry norms,

the municipality has a shortfall of approximately R533 million in current assets of which all should be in

the form of unencumbered cash and cash equivalents. The shortfall indicates that the municipality

incurred a net loss of R 80 359 318 (2018: R161 738 076) during the year ended June 2019. The non-

achievement of the 70% debtor collection rate, the water losses of R68.3m and electricity loss to a

total amount of R118.9m impacted negatively on the cash flow.


Council is not in a position to settle its short-term liabilities as prescribed.


Outstanding debtors to Revenue.



















Council experiencing serious financial constraints since the mines had appealed against the valuation

roll. This was completed. The valuation appeal board had ruled that that the valuations of the mines

had to be amended. It had serious financial implications for council.




Creditors System Efficiency

The ratio gives an indication of average creditor’s payment period. The benchmark is 30 Days and is a

contravention of Section 65(2) (e) if creditors are not paid in 30 days

2016/2017 2017/2018 2018/2019

311 days 360.2 days 137days


and creditors were prioritised for payment. Council could not pay its bulk suppliers of water and

electricity regular.

Employee costs





2017/2017 2017/2018 2018/2019

24.5% 21.9% 25.34%

The decrease in the percentage of salary costs is as a result in that vacancies could not be filled due

to council’s cash flow challenges. Service delivery departments cannot render basic service deliveries.

Cost coverage







2016/2017 2017/2018 2018/2019

2.04 0.84 0.13

The industry norm is 2 times.


The biggest council face at present is the lack of funding. Repairs and Maintenance are performed on

an emergency basis.

Maintenance plans cannot be executed. Roads are repaired when pot holes occurred.

Note: Statements of Revenue Collection Performance by vote and by source are included at

Appendix K.

Delete Directive note once comment is completed - This component provides an overview of the

financial performance of the municipality and focuses on the financial health of the municipality.

T 5.1.0


5.1 STATEMENTS OF FINANCIAL PERFORMANCE

Reconciliation of Table A1 Budget Summary

Description

R thousands

Original Budget Budget

Adjustments

(i.t.o. s28 and s31

of the MFMA)

Final

adjustments

budget

Shifting of funds

(i.t.o. s31 of the

MFMA)

Virement

(i.t.o. Council

approved policy)

Final Budget Actual Outcome Unauthorised

expenditure

Variance Actual Outcome

as % of Final

Budget

Actual Outcome

as % of Original

Budget

1 2 3 4 5 6 7 8 9 10 11

Financial Performance

Property rates 185 386 (3 661) 181 725 – 181 725 185 884 (4 159) 102,29% 100,27%

Service charges 655 291 50 975 706 266 – 706 266 695 677 10 590 98,50% 106,16%

Investment revenue 6 500 2 371 8 871 – 8 871 9 558 (687) 107,75% 147,04%

Transfers recognised - operational 227 399 3 247 230 646 – 230 646 227 549 3 097 98,66% 100,07%

Other own revenue 128 803 9 863 138 666 – 138 666 176 896 (38 230) 127,57% 137,34%

Total Revenue (excluding capital transfers and contributions)

1 203 379 62 795 1 266 174 – 1 266 174 1 295 564

(29 390) 102,32% 107,66%

Employee costs (380 433) 33 413 (347 020) (347 020) (328 318) – (18 702) 94,61% 86,30%

Remuneration of councillors (23 361) (3 049) (26 410) (26 410) (23 827) – (2 583) 90,22% 102,00%

Debt impairment (241 760) (57 212) (298 972) (298 972) (417 755) (118 782) 118 782 139,73% 172,80%

Depreciation & asset impairment (106 226) (106 226) (106 226) (103 966) (2 260) 97,87% 97,87%

Finance charges (22 600) (10 743) (33 343) (33 343) (34 278) (934) 934 102,80% 151,67%

Materials and bulk purchases (473 253) (39 404) (512 656) (512 656) (513 986) (1 330) 1 330 100,26% 108,61%

Transfers and grants – – – –

Other expenditure (217 421) (9 007) (226 428) (226 428) (159 975) – (66 453) 70,65% 73,58%

Total Expenditure (1 465 054) (86 002) (1 551 056) – – (1 551 056) (1 582 104) (121 047) 31 049 102,00% 107,99%

Surplus/(Deficit) (261 675) (23 207) (284 882) – (284 882) (286 540) (60 439) 100,58% 109,50%

Transfers recognised - capital 202 838 70 205 273 043 273 043 203 543 69 500 74,55% 100,35%

Contributions recognised - capital & contributed assets – –

Surplus/(Deficit) after capital transfers & contributions (58 837) 46 998 (11 839) (11 839) (82 997) 9 061 701,05% 141,06%

Share of surplus/ (deficit) of associate – –

Surplus/(Deficit) for the year (58 837) 46 998 (11 839) (11 839) (82 997) 9 061 701,05% 141,06%

Capital expenditure & funds sources

Capital expenditure –

Transfers recognised - capital 251 972 21 071 273 043 273 043 193 212 79 831 70,76% 76,68%

Public contributions & donations – – – –

Borrowing – – – –

Internally generated funds 3 460 14 300 17 760 17 760 2 046 15 714 11,52% 59,14%

Total sources of capital funds 255 432 35 371 290 803 290 803 195 258 95 545 67,14% 76,44%

Cash flows

Net cash from (used) operating 55 729 55 637 111 366 111 366 226 731 (115 365) 203,59% 406,84%

Net cash from (used) investing (255 432) (34 371) (289 803) (289 803) (194 512) (95 290) 67,12% 76,15%

Net cash from (used) financing (4 888) – (4 888) (4 888) (6 508) 1 620 133,15% 133,15%

Cash/cash equivalents at the year end (204 590) 21 266 (183 324) (183 324) 25 711 (209 035) -14,02% -12,57%Notes

3 = sum of colum 1 and 2

2 represents movements in original budget to get to final adjustmenst budget (including shifting of funds)

Virements must offset each other so that virements in Total Expenditure equals zero

6 = sum of column 3, 4 and 5

8 does not necessarily equal the difference between 9 and 8 because overspending is not the only reason for unauthroised expenditure

9 = 7 - 6

10 = (7/6)*100

11 = (9/1)*100

14 = 13 - 12

15 in revenue equals Audited Outcome plus funds actually recovered

15 in expenditure equals Audited Outcome less funds actually recovered

15 in Cash Flow equals Audited Outcome plus funds recovered

This schedule must be part of the financial statements of the municipality (all other schedules, A2 - A7, should form part of the annexures to the financial statements. These schedules do not directly form part of the audit opinion)

T5.1.1

Year 2018-2019


Year

2017/2018

ActualOriginal

Budget

Adjustments

BudgetActual

Original

Budget

Adjustment

s Budget

Operating Cost

Water (42 202) 7 642 (14 146) 74 294 89,71% 119,04%

Waste Water (Sanitation) 23 357 (15 947) (43 110) (24 497) 34,90% -75,98%

Electricity (15 243) 25 485 64 906 78 669 67,60% 17,50%

Waste Management 593 (21 316) (31 239) 5 116 516,61% 710,56%

Housing

Component A: sub-total (33 495) (4 136) (23 590) 133 582 103,10% 117,66%

Waste Water (Stormwater Drainage) – – –

Roads (7 808) 12 173 (12 581) 9 441 -28,94% 233,26%

Transport

Component B: sub-total (7 808) 12 173 (12 581) 9 441 -28,94% 233,26%

Planning 70 624 (177 782) (251 402) (110 806) -60,45% -126,89%


Component B: sub-total 70 624 (177 782) (251 402) (110 806) -60,45% -126,89%

Planning (Strategic & Regulatary)


Component C: sub-total – – – –

Community & Social Services (65 553) 55 802 45 609 31 145 -79,17% -46,44%

Enviromental Proctection

Health

Security and Safety

Sport and Recreation

Corporate Policy Offices and Other (108 666) (198 324) (50 422) 22 484 982,07% 324,26%

Component D: sub-total (174 219) (142 522) (4 814) 53 629 365,76% 108,98%

Total Expenditure (144 898) (312 266) (292 387) 85 847 463,75% 440,59%

T 5.1.2

In this table operational income is offset agaist operational expenditure leaving a net operational expenditure total for each

service as shown in the individual net service expenditure tables in chapter 3. Variances are calculated by dividing the

difference between actual and original/adjustments budget by the actual.

Year 2018/2019 Year 0 Variance

R '000

Description


COMMENT ON FINANCIAL PERFORMANCE:

Council closed off for the financial year with a deficit of R80,359 Million comparing to budgeted deficit

of R284,882 Million.

Due to the low payment levels council provided for the provision for bad debt an amount of R417,755

Million.

Employee costs are R22,653 Million less than was budgeted for. This is as a result of decrease in the

Post-employment Medical Aid provision and vacancies that could not be filled.

Due to council’s financial situation council were not in a position to settle its creditors in 30 days. This

had resulted in that interest on arrear accounts amounting to R29,156 Million was accrued.

Delete Directive note once comment is completed – Comment on variances above 10%.

T5.1.3


5.2.GRANTS

2017-2018

Actual Budget Adjustments

Budget

Actual Original

Budget

(%)

Adjustment

s Budget

(%)

Operating Transfers and Grants

National Government: 166 254 187 812 187 812 187 812 100,00% 100,00%

Local Government Equitable Share 163 084 184 932 184 932 184 932 100,00% 100,00%

Finance Management 1 700 1 700 1 700 1 700 100,00% 100,00%

EPWP Incentive 1 470 1 180 1 180 1 180 100,00% 100,00%

Other transfers/grants [insert description]

Provincial Government: 98 110 39 147 39 147 39 147 100,00% 100,00%

Department of Sports, arts, culture and recreation15 489 15 330 15 330 15 330 100,00% 100,00%

Agricultural and Rural Development 500 500 500 500 100,00% 100,00%

Cogta EPWP Incentive 500 500 500 500 100,00% 100,00%

Cogta GRAP 17 Compliance 500 500 500 100,00% 100,00%

Cogta Performance Management System 1 000 1 000 1 000 100,00% 100,00%

Housing 55 474

Provincial Disaster Fund 26 147 21 317 21 317 21 317 100,00% 100,00%

District Municipality: – 2 270 2 270 2 270 100,00% 100,00%

HIV Programme 2 270 2 270 2 270 100,00% 100,00%

Other grant providers: – – – –

[insert description]

Total Operating Transfers and Grants 264 364 229 229 229 229 229 229 100,00% 100,00%

T 5.2.1

Variances are calculated by dividing the difference between actual and original/adjustments budget by the

actual. Full list of provincial and national grants available from published gazettes.

Description

R' 000

Grant Performance

2018-2019 Year 0 Variance

COMMENT ON OPERATING TRANSFERS AND GRANTS:

COGTA had increased the MIG Grant by 2.7 Million for the financial year.

National Treasury had reduced the Water service Infrastructure Grant as was the published in terms of

DORA by R10 Million during 2018/2019. National Treasury had reduced the INEP grant as published

in terms of DORA by R6 Million during 2018/2019.

Note: For Municipal Infrastructure Grant (MIG) see T5.8.3. For other conditional transfers including

Neighborhood Development Partnership Grant (NDPG); Public Transport Infrastructure and Systems

Grant (PITS) see Appendix L.

Delete Directive note once comment is completed – Comment on the variances in the above table

and other and indicate high value projects & total the remaining project.

T 5.2.2

Details of Donor Actual

Grant

Year 2017-

2018

Actual

Grant

Year 2018-

2019

Year 2017-2018

Municipal

Contribution

Date Grant

terminates

Date

Municipal

contribution

terminates

Nature and benefit from the grant

received, include description of any

contributions in kind

Nil

Nil

Nil

T 5.2.3

Grants Received From Sources Other Than Division of Revenue Act (DoRA)

Parastatals

Foreign Governments/Development Aid Agencies

Private Sector / Organisations

Provide a comprehensive response to this schedule

COMMENT ON CONDITIONAL GRANTS AND GRANT RECEIVED FROM OTHER SOURCES:

Council did not receive grants from any other sources

Delete Directive note once comment is completed – Use this box to provide additional information

on grant benefits or conditions and reason for acceptance. Please also provide comments on grant

surrendered to the National Revenue Fund with reasons that led to this.

T 5.2.4

5.3 ASSET MANAGEMENT

INTRODUCTION TO ASSET MANAGEMENT

Council had fully implemented GRAP 17. Challenges still exist as councils infrastructure assets are not

disclosed in a recognised asset register. At present council are making use of excel to disclose the

assets.

A grant was received to assist council to procur an integrated asset system

Councils financial position had deteriorated to such en extend that repairs and maintenance was only

performed in emergency cases.

Council could not allocate internal funds to execute capital programs. Council had to rely on grant

funding.


Delete Directive note once comment is completed - Provide a brief overview on Asset Management

as practiced within your organisation and outline the key elements of your Asset Management Policy.

Explain how asset management is organised, the staff involved and the key delegations. Describe key

issues under development. Indicate the approach to capacity development for this activity. Refer to

the illustrations of asset management approach in relation to the new assets set out below.

T 5.3.1

Name

Description

Asset Type

Key Staff Involved Roads and Stormwater

Staff Responsibilities

2015-2016 2016-2017 2017-2018 2018-2019

1 739 494 2 167 193 2073276 1 459 716

Capital Implications

Future Purpose of Asset

Describe Key Issues

Policies in Place to Manage Asset

Name

Description

Asset Type

Key Staff Involved Water Care Works

Staff Responsibilities Maintenance of Waste Water Treatment Plants

2015-2016 2016-2017 2017-2018 2018-2019

1 662 947 2 891 228 1032906 718 431



Describe Key Issues


Name

Description

Asset Type

Key Staff Involved Electricity

Staff Responsibilities Maintenance of Electricity distribution

2015-2016 2016-2017 2017-2018 2018-2019

2 248 540 6 625 390 4 055 298 4 980 027



Describe Key Issues


T 5.3.2

TREATMENT OF THE THREE LARGEST ASSETS ACQUIRED YEAR 2018-2019

Maintenance of Waste Water Treatment Plants

Asset 1

Roads and Stormwater

Resealing and rehabilitation of Roads

Infrastructure Assets

Asset Value

Regular Maintenance

To ensure assets are used for its expected usefull lifes

To ensure regular maintenance

Asset Management Policy Adopted

Asset 2

Waste Water Treatment Plants

Management of Roads and Stormwater

Regular Maintenance


Asset Value

Regular Maintenance




Asset 3

Electricity network

Maintenance of Electricity distribution


Asset Value




COMMENT ON ASSET MANAGEMENT:

Council adopted an asset management policy in the year under review. An asset management plan

was developed and will be implemented in terms of the approved policy. The challenge Council faces

is to fund the shortfall identified in the maintenance plan.


an emergency basis.



An additional challenge council face is the vandalism of councils assets, especially electricity

installations.

MBRR Table A9

Delete Directive note once comment is completed – With reference to the three projects approved

in the year, set out above, describe how these projects were evaluated from a cost and revenue

perspective, including Municipal tax and tariff implications (See MFMA section 19 (2) (a) & (b) and

MSA section 74 (2) (d), (e) & (i)). Ensure that these projects are maintained on files that are readily

accessible for audit inspection. Financial data regarding asset management may be sourced from

MBRR Table A9

T 5.3.3

Original Budget Adjustment Budget Actual Budget variance

Repairs and Maintenance Expenditure 39812 39812 5118 87%

T 5.3.4

Repair and Maintenance Expenditure: Year 2018-2019

R' 000

COMMENT ON REPAIR AND MAINTENANCE EXPENDITURE:


an emergency basis.


An additional challenge council face is the vandalism of council’s assets, especially electricity

installations.

Delete Directive note once comment is completed – Comment on adequacy of Repair &

Maintenance Expenditure and variances show in T5.3.4 above and on the implications of the

proportion of operating budget spend on repairs and maintenance over the past four years set out

below. Note that the repairs and maintenance expenditure in T5.3.4 must reconcile with the

operational repairs and maintenance expenditure for all services set out in Chapter 3.

T 5.3.4.1

5.4 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

0,7 0,7

0,5

0,4

–

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

2015/16 2016/17 2017/18 Current: Year 2018/2019

Liquidity Ratio

Liquidity Ratio – Measures the municipality’s ability to pay its bills and is calculated by dividing the monetary assets (due within one year ) by the municipality’s current liabilities. A higher ratio is better.

Data used from MBRR SA8

T 5.4.1

1,0

2,0

0,8

0,1

–

0,5

1,0

1,5

2,0

2,5

2015/16 2016/17 2017/18 Current: Year 2018/2019

Cost Coverage

iii. Cost coverage

Cost Coverage– It explains how many months expenditure can be covered by the cash and other liquid assets available to the Municipality excluding utilisation of grants and is calculated


T 5.4.2


30,0%31,1%

23,9%

25,8%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

2015/16 2016/17 2017/18 Current: Year 2018/2019

Total Outstanding Service Debtors

ii.O/S Service Debtors to Revenue

Total Outstanding Service Debtors – Measures how much money is still owed by the community for water, electricity, waste removal and sanitation compared to how much money has been paid for these services. It is calculated by dividing the total outstanding debtors by the total annual revenue. A lower score is better.


Cost Coverage– It explains how many months expenditure can be covered by the cash and other liquid assets available to the Municipality excluding utilisation of grants and is calculated


T 5.4.3

44,6

13,3

1,2 1,6

–

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

2015/16 2016/17 2017/18 Current: Year 2018/2019

Debt Coverage

i. Debt coverage

Debt Coverage– The number of times debt payments can be accomodated within Operating revenue (excluding grants) . This in turn represents the ease with which debt payments can be accomodated by the municipality


T 5.4.4

86,0%88,0%

84,0%

73,0%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

2015/16 2016/17 2017/18 Current: Year 2018/2019



Creditor System Efficiency – The proportion of creditors paid within terms (i.e. 30 days). This ratio is calculated by outstanding trade creditors divided by credit purchases


T 5.4.5


2,2%2,3%

2,6%

2,4%

2,0%

2,1%

2,2%

2,3%

2,4%

2,5%

2,6%

2,7%

2015/16 2016/17 2017/18 Current: Year 2018/2019

Capital Charges to Operating Expenditure

Capital Charges to Operating Expenditure

Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principle paid by the total operating expenditure.


T 5.4.6

28,5%

24,5%

21,9%

25,3%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

2015/16 2016/17 2017/18 Current: Year 2018/2019

Employee Costs

Employee costs

Employee cost – Measures what portion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between total revenue and capital revenue.


T 5.4.7

1,1%

1,4%

0,8%

0,4%

0,0%

0,2%

0,4%

0,6%

0,8%

1,0%

1,2%

1,4%

1,6%

2015/16 2016/17 2017/18 Current: Year 2018/2019

Repairs & Maintenance

Repairs & Maintenance

Repairs and Maintenance – This represents the propotion of operating expenditure spent and is calculated by dividing the total repairs and maintenace.


T 5.4.8


COMMENT ON FINANCIAL RATIOS:

COMMENT ON FINANCIAL RATIOS:

Current Ratio

2016/17 2017-2018 2018/2019

1:0.79 1:0.5 1: 0.4


assets. The industry usually looks for a ratio of 2:1, however the acceptable current ratio is1:1 for

municipalities. Council had achieved a ratio of 1:0.4 which shows councils ability to settle existing short

term liabilities.








Council is not in a position to settle its short-term liabilities as prescribed.


Outstanding debtors to Revenue.



















Council experiencing serious financial constraints since the mines had appealed against the valuation

roll. This was completed. The valuation appeal board had ruled that that the valuations of the mines

had to be amended. It had serious financial implications for council.





The ratio gives an indication of average creditor’s payment period. The benchmark is 30 Days and is a

contravention of Section 65(2) (e) if creditors are not paid in 30 days

2016/2017 2017/2018 2018/2019

311 days 360.2 days 137days


and creditors were prioritised for payment. Council could not pay its bulk suppliers of water and

electricity regular.

Employee costs





2017/2017 2017/2018 2018/2019

24.5% 21.9% 25.34%

The decrease in the percentage of salary costs is as a result in that vacancies could not be filled due

to council’s cash flow challenges. Service delivery departments cannot render basic service deliveries.

Cost coverage







2016/2017 2017/2018 2018/2019

2.04 0.84 0.13


The industry norm is 2 times.



an emergency basis.


Delete Directive note once comment is completed - Comment on the financial health of the

municipality / municipal entities revealed by the financial ratios set out above. These ratios are derived

from table SA8 of the MBRR.

T 5.4.9

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET

Council achieved 67% of the adjustment budget for 2018/2019.

Delete Directive note once comment is completed – Capital expenditure relates mainly to

construction projects that will have value lasting over many years. Capital expenditure is funded from

grants, borrowings and operating expenditures and surpluses. Component B deals with capital

spending indicating where the funding comes from and whether Municipalities are able to spend the

available funding as planned. In this component it is important to indicate the different sources of

funding as well as how these funds are spend. Highlight the 5 largest projects (see T5.7.1) and

indicate what portion of the capital budget they use. In the introduction briefly refer to these key

aspects of capital expenditure (usually relating to new works and renewal projects) and to Appendices

M (relating to the new works and renewal programmes), N (relating to the full programme of full capital

projects, and O (relating to the alignment of projects to wards).

T 5.5.0

5.5 CAPITAL EXPENDITURE

10,27%

89,73%

–

200

400

600

800

1 000

1 200

1 400

1 600

1 800

R m

illio

n

Capital Expenditure: Year 2018/2019

Capital Expenditure

Operating Expenditure

T 5.5.1


5.6 SOURCES OF FINANCE

2017/2018

Actual Original

Budget (OB)

Adjustment

Budget

Actual Adjustment to

OB Variance

(%)

Actual to OB

Variance (%)

Source of finance

External loans 1992 #DIV/0! #DIV/0!

Public contributions and donations

Grants and subsidies 178 023 251 972 273 043 178 023 8,36% -29,35%

Other 1 110 3 460 17 760 3 102 413,29% -10,35%

Total 181125 255432 290803 181125 13,85% -29,09%

Percentage of finance

External loans 1,1% 0,0% 0,0% 0,0% 0,0% 0,0%

Public contributions and donations 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Grants and subsidies 98,3% 98,6% 93,9% 98,3% 60,4% 100,9%

Other 0,6% 1,4% 6,1% 1,7% 2984,6% 35,6%

Capital expenditure

Water and sanitation 4 256 168 894 213 159 146 631 26,21% -13,18%

Electricity 2 453 26 344 20 344 13 865 -22,78% -47,37%

Housing 2 685 0,00% 0,00%

Roads and storm water 1 486 28 938 28 938 1 498 0,00% -94,82%

Other 31256 28362 19131 #DIV/0! -38,79%

Total 10880 255432 290803 181125 #DIV/0! -194,17%

Percentage of expenditure

Water and sanitation 39,1% 66,1% 73,3% 81,0% 10,86% 6,8%

Electricity 22,5% 10,3% 7,0% 7,7% -32,17% 24,4%

Housing 24,7% 0,0% 0,0% 0,0% 0,00% 0,0%

Roads and storm water 13,7% 11,3% 10,0% 0,8% -12,16% 48,8%

Other 0,0% 12,2% 9,8% 10,6% -20,30% 20,0%

T 5.6.1

Capital Expenditure - Funding Sources: Year 2017/2018 to Year 2018/2019

2018/2019

Details

R' 000

COMMENT ON SOURCES OF FUNDING:

Cogta had increased the MIG Grant by 2.7 Million for the financial year.

National Treasury had reduced the Water service Infrastructure Grant as was the published in terms

of DORA by R10 Million during 2018/2019.

National Treasury had reduced the INEP grant as published in terms of DORA by R6 Million during

2018/2019.

Delete Directive note once comment is completed – Explain any variations from the approved

budget of more than 10% and discuss the total capital expenditure as a viable proportion of total

expenditure.

T 5.6.1.1

5.7 CAPITAL SPENDING ON 5 LARGEST PROJECTS

Original

Budget

Adjustment

Budget

Actual

Expenditure

Original

Variance (%)

Adjustment

variance (%)

Replacement of Khutsong Reservoir 66 308 56 308 21 399 68% 15%

Khutsong Ext 5/6 -Internal Sevices

(753 Services Stands) (Phase 5) 24 214 24 214 26 282 -9% 0%

Fochville Reservoir 21 336 21 336 5 456 74% 0%

Adatta Pipeline 20 000 20 000 8 863 56% 0%

Carletonville Reservoir( 007) 2 485 18 136 10 300 -314% -630%

Name of Project - A

Objective of Project

Delays

Future Challenges

Anticipated citizen benefits

Name of Project - B


Delays

Future Challenges


Name of Project - C


Delays

Future Challenges


Name of Project - D


Delays

Future Challenges


Name of Project - E


Delays

Future Challenges


Carletonville Reservoir( 007)

T 5.7.1

Carletonville Reservoir( 007)

None

Maintenance

Water supply to Carletonville

Fochville Reservoir

None

Maintenance

Maintenance

Provision of Water to Khutsong

Adatta Pipeline

Adatta Pipeline

None

Water supply to Fochville

Khutsong Ext 5/6 -Internal Sevices (753 Services Stands) (Phase 5)

None

Maintenance

Provision of services to Khutsong Ext 5/6 (753 Stands)

Fochville Reservoir

Maintenance

Water supply to Khutsong

Khutsong Ext 5/6 -Internal Sevices (753 Services Stands) (Phase 5)

Capital Expenditure of 5 largest projects*

None

Name of Project

2018/2019 Variance: 2018/2019

Replacement of Khutsong Reservoir

Replacement of Khutsong Reservoir

R' 000

* Projects with the highest capital expenditure in Year 0


COMMENT ON CAPITAL PROJECTS:

Council achieved 83% of the adjustment budget for 2017/2018.

Relocation of Khutsong Reservoir and Related Bulk Infrastructure

Delete Directive note once comment is completed - Provide information in the template above on

the 5 largest projects, ranked according to their approved budget provision year 0. Comment on the

variance between the original and adjustment budgets and on availability of future Budget provision to

operate the projects and lessons learnt in the year about capital project implementation on time to

budget.

T 5.7.1.1

5.8 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW

INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS

Refuse removal strategy in informal settlement was developed and approved but not been implemented due to the same reason of Municipal financial status. Refuse removal service in informal Settlement is only been done in Mphahlwa village using 6m

3 this

financial year 2018/2019. Additional 3 300 Wheelie bins was procured and 880 were distributed to the newly developed areas like, Kokosi Ext 6 and Khutsong Ext 5 to enable the introduction of the waste removal service in the new financial year and the distribution is still on progress. Delete Directive note once comment is completed – Explain that need and cost of backlogs are the result of migration into an area; migration out of an area; the trend towards disaggregation of families into more than one housing unit; and the cost of renewing and upgrading core infrastructure. Explain how this balance effects net demand in your municipality and how your municipality is responding to the challenges created.

T 5.8.1

Service Backlogs as at 30 June Year 2018/19

Households (HHs)

*Service level above minimum

standard **Service level below minimum

standard

No. HHs % HHs No. HHs % HHs

Water % %

Sanitation % %

Electricity % %

Waste management 54507 96% 67058 54%

Housing % %

% HHs are the service above/below minimum standard as a proportion of total HHs. 'Housing' refers to * formal and ** informal settlements. T 5.8.2


Municipal Infrastructure Grant (MIG)* Expenditure Year 2018/19 on Service backlogs

R' 000

Details

Budget Adjustments

Budget

Actual

Variance Major conditions applied by

donor (continue below if

necessary)

Budget

Adjustments

Budget

Infrastructure - Road transport

Roads, Pavements & Bridges 14 638 14 638 1 303

-1024

% -1024%

Storm water Cost included above

Infrastructure - Electricity

Generation

Transmission & Reticulation

Street Lighting

Infrastructure - Water

Dams & Reservoirs

Water purification

Reticulation 10 000 8 845 3 765 -166% -135%

Infrastructure - Sanitation

Reticulation

Sewerage purification 16 006 16 006 16

005 0% 0%

Infrastructure - Other

Waste Management 17 373 17 727 17

727 2% 0%

Transportation

Gas

Other Specify:

Economic Devt. Services 3 674 0 0

Sport and Recreation 0 7 175 7 014 100% -2%

PMU (O&M) 3 247 3 247 3 247 0% 0%

% %

Total 64 938 67 638 49

060 -32% -38%

* MIG is a government grant program designed to fund a reduction in service backlogs, mainly: Water; Sanitation; Roads; Electricity. Expenditure on new, upgraded and renewed infrastructure is set out at Appendix M; note also the calculation of the variation. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual.

T 5.8.3

COMMENT ON BACKLOGS:

Delete Directive note once comment is completed - Comment on how MIG grants have been

utilised to redress the backlogs and on the variances in T 5.8.3. If appropriate, comment that

Appendix P contains details of schools and clinics that have been established that do not have ready

access to one or more basic services and Appendix Q contains details of those services provided by

other spheres of government (whether the municipality is involved on an agency basis or not) that

carry significant backlogs.

T 5.8.4

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS

Council has a Cash Management policy. Cash management is a key focus of Council. Council strives

to cover fixed costs three times. A revenue enhancement strategy was adopted. Surplus funds are

invested ensuring return on investments.

Delete Directive note once comment is completed – Give a brief comment on the importance of

cash flow management. Refer to the scope of this activity as indicated in this component and what you

regard as the key management features of your municipality’s approach. Refer to any other cash flow

issues of current relevance to your municipality that are not adequately provided for in the format of

this component.

T 5.9


5.9 CASH FLOW

Year

2017/2018

Audited

Outcome

Original

Budget

Adjusted

BudgetActual

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Ratepayers and other 617 943 666 305 711 660 754 770

Government - operating 272 541 227 399 230 646 227 549

Government - capital 172 751 202 838 237 209 190 718

Interest 14 230 76 253 76 253 9 558

Dividends

Payments

Suppliers and employees (986 328) (1 094 467) (1 111 059) (921 587)

Finance charges (31 643) (22 600) (33 343) (34 278)

Transfers and Grants

NET CASH FROM/(USED) OPERATING ACTIVITIES 59 493 55 728 111 366 226 731

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE (170 399) (255 432) (289 803) (194 512)

Decrease (Increase) in non-current debtors

Decrease (increase) other non-current receivables

Decrease (increase) in non-current investments

Payments

Capital assets

NET CASH FROM/(USED) INVESTING ACTIVITIES (170 399) (255 432) (289 803) (194 512)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans

Borrowing long term/refinancing (5 977) (4 888) (4 888) (6 508)

Increase (decrease) in consumer deposits

Payments

Repayment of borrowing

NET CASH FROM/(USED) FINANCING ACTIVITIES (5 977) (4 888) (4 888) (6 508)

NET INCREASE/ (DECREASE) IN CASH HELD (116 882) (204 592) (183 325) 25 711

Cash/cash equivalents at the year begin: (32 093) (415 943) 89 561 89 561

Cash/cash equivalents at the year end: (148 976) (620 535) (93 764) 115 272 Source: MBRR A7 T 5.9.1

Current: Year 2018/2019

Cash Flow Outcomes

R'000

Description

COMMENT ON CASH FLOW OUTCOMES:

































Council will not be able to cover its fixed operating expenditure

Delete Directive note once comment is completed - Supply a brief summary about the cash flow

status of the municipality. Explain variances from Original and Adjustment Budget to Actual. Include

information on operating activities and what effect they had on cash flow and on cash backing of

surpluses. Information regarding cash flow may be sourced from Table A7 of the MBRR.

T 5.9.1.1

5.10 BORROWING AND INVESTMENTS


INTRODUCTION TO BORROWING AND INVESTMENTS








Delete Directive note once comment is completed – Explain briefly the relevance of borrowing and

investments to you municipality with reference to the tables below and your municipality’s

requirements in the year. Information may be sourced from table SA3 AND SA15 in the MBRR.

T 5.10.1

Instrument 2016/2017 2017/2018 2018/2019

Municipality

Long-Term Loans (annuity/reducing balance) 68465 63033 57088

Long-Term Loans (non-annuity)

Local registered stock

Instalment Credit 1597 957 501

Financial Leases

PPP liabilities

Finance Granted By Cap Equipment Supplier

Marketable Bonds

Non-Marketable Bonds

Bankers Acceptances

Financial derivatives

Other Securities

Municipality Total 70 062 63 990 57 589

Municipal Entities

Long-Term Loans (annuity/reducing balance)

Long-Term Loans (non-annuity)

Local registered stock

Instalment Credit

Financial Leases

PPP liabilities

Finance Granted By Cap Equipment Supplier

Marketable Bonds

Non-Marketable Bonds

Bankers Acceptances

Financial derivatives

Other Securities

Entities Total 0 0 0

T 5.10.2

Actual Borrowings: Year 2016/2017 to Year 2018/2019

R' 000


5000050050501005015050200502505030050350504005045050500505505060050650507005075050800508505090050950510005105051100511505120051250513005135051400514505150051550516005165051700517505180051850519005195052000520505210052150522005225052300523505240052450525005255052600526505270052750528005285052900529505300053050531005315053200532505330053350534005345053500535505360053650537005375053800538505390053950540005405054100541505420054250543005435054400544505450054550546005465054700547505480054850549005495055000550505510055150552005525055300553505540055450555005555055600556505570055750558005585055900559505600056050561005615056200562505630056350564005645056500565505660056650567005675056800568505690056950570005705057100571505720057250573005735057400574505750057550576005765057700577505780057850579005795058000580505810058150582005825058300583505840058450585005855058600586505870058750588005885058900589505900059050591005915059200592505930059350594005945059500595505960059650597005975059800598505990059950600006005060100601506020060250603006035060400604506050060550606006065060700607506080060850609006095061000610506110061150612006125061300613506140061450615006155061600616506170061750618006185061900619506200062050621006215062200622506230062350624006245062500625506260062650627006275062800628506290062950630006305063100631506320063250633006335063400634506350063550636006365063700637506380063850639006395064000640506410064150642006425064300643506440064450645006455064600646506470064750648006485064900649506500065050651006515065200652506530065350654006545065500655506560065650657006575065800658506590065950660006605066100661506620066250663006635066400664506650066550666006665066700667506680066850669006695067000670506710067150672006725067300673506740067450675006755067600676506770067750678006785067900679506800068050681006815068200682506830068350684006845068500685506860068650687006875068800688506890068950690006905069100691506920069250693006935069400

2016/2017 2017/2018 2018/2019

R m

illio

n

Actual Borrowings

Municipality

Municipal Entities

T 5.10.3

Year

2015/2016

Year

2016/2017

Year

2017/2018

Actual Actual Actual

Municipality

Securities - National Government

Listed Corporate Bonds

Deposits - Bank 0 0 0

Deposits - Public Investment Commissioners

Deposits - Corporation for Public Deposits

Bankers Acceptance Certificates

Negotiable Certificates of Deposit - Banks

Guaranteed Endowment Policies (sinking)

Repurchase Agreements - Banks

Municipal Bonds

Other

Municipality sub-total 0 0 0

Municipal Entities

Securities - National Government

Listed Corporate Bonds

Deposits - Bank

Deposits - Public Investment Commissioners

Deposits - Corporation for Public Deposits

Bankers Acceptance Certificates

Negotiable Certificates of Deposit - Banks

Guaranteed Endowment Policies (sinking)

Repurchase Agreements - Banks

Other

Entities sub-total 0 0 0

Consolidated total: 0 0 0

T 5.10.4

Municipal and Entity Investments

Investment* type

R' 000


COMMENT ON BORROWING AND INVESTMENTS:

Council took up an external loan with Nedbank to finance capital projects. Council had reached its

prudent limits. Council cannot borrow anymore to fund capital projects.








Delete Directive note once comment is completed – Make clarifying comments on the above tables

as necessary. All investments whether in the form of loans (in cash or kind) made by the municipality

but not to one or more of the organisations set out above and all grants (in cash or kind) made to any

form of organisation must be set out in full at Appendix R.

T 5.10.5

5.11 PUBLIC PRIVATE PARTNERSHIPS

PUBLIC PRIVATE PARTNERSHIPS

For the year under review, the municipality did not enter into any Public Private Partnership

agreements.

Delete Directive note once comment is completed - Provide overview of agreements, contracts and

projects undertaken during the year through PPP’s – Refer to further details of PPP details Appendix

H. Table SA3 (MBRR) may also be used to gain information on PPP’s.

T 5.11.1

COMPONENT D: OTHER FINANCIAL MATTERS

5.12 SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Council adopted a supply Chain Policy as prescribed in the MFMA. Bid Committees are functioning.

No Councillors are members of the bid committees.

Delete Directive note once comment is completed - Provide a brief narrative that describes the

progress made by your municipality in developing and implementing policies and practices in

compliance with the guidelines set out in SCM Regulations 2005. State the number of Supply Chain

officials that have reached the prescribed levels required for their positions (See MFMA Competency

Regulation Guidelines) and state the number of prescribed officials that are yet to reach the necessary

competency levels; and set out any remarks made in the previous Auditor-General’s report or the

report for year 0 concerning the quality of Supply Chain Management and detail the remedial action

taken. Note comments made in Chapter 2, under section 2.8.

T 5.12.1

5.13 GRAP COMPLIANCE

GRAP COMPLIANCE

GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules by which

municipalities are required to maintain their financial accounts. Successful GRAP compliance will

ensure that municipal accounts are comparable and more informative for the municipality. It will also

ensure that the municipality is more accountable to its citizens and other stakeholders. Information on

GRAP compliance is needed to enable National Treasury to assess the pace of progress and consider

the implications.

Council had fully implemented all applicable GRAP Standards as required by the Accounting

Standards Board.

The municipality had fully implemented all applicable GRAP Standards as required by the Accounting

Standards Board.

Delete Directive note once comment is completed – Follow the above with information on progress

with GRAP compliance at your municipality. Detail any instances where the municipality has deviated

from the GRAP standards currently applicable.

T 5.13.1

Municipality | CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS 255

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS

INTRODUCTION

Note: The Constitution S188 (1) (b) states that the functions of the Auditor-General includes the

auditing and reporting on the accounts, financial statements and financial management of all

municipalities. MSA section 45 states that the results of performance measurement… must be audited

annually by the Auditor-General.

Delete Directive note once comment is completed - Refer to the Annual Financial Statements set

out in Volume II and the timescale for the audit of these accounts and the audit of performance and

the production of reports on these matters by the Auditor General as set out in this Chapter. If this is

the version of the annual report presented to Council in September then the Auditor-Generals

statements on this year’s submissions will not be available for inclusion in this Chapter and this should

be explained.

T 6.0.1

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS YEAR -

1

6.1 AUDITOR GENERAL REPORTS YEAR -1 (PREVIOUS YEAR)

Audit Report Status*:

Non-Compliance Issues Remedial Action Taken

T 6.1.1

Auditor-General Report on Financial Performance: Year -1

Note:*The report status is supplied by the Auditor General and ranges from unqualified (at best); to unqualified

with other matters specified; qualified; adverse; and disclaimed (at worse)

Audit Report Status:


T 6.1.2

Auditor-General Report on Service Delivery Performance: Year -1

COMPONENT B: AUDITOR-GENERAL OPINION YEAR 0 (CURRENT YEAR)

6.2 AUDITOR GENERAL REPORT YEAR 2018/2019

Auditor-General Report on Financial Performance Year 2018/2019

Status of audit report:


Information will be available after the Audit

Note:* The report's status is supplied by the Auditor General and ranges from unqualified (at best); to unqualified with other matters specified; qualified; adverse; and disclaimed (at worse). This table will be completed prior to the publication of the Annual report but following the receipt of the Auditor- General Report on Financial Performance Year 0.

T 6.2.1

Auditor-General Report on Service Delivery Performance: Year 2018/2019

Status of audit report**: Non-Compliance Issues Remedial Action Taken

Information will be available after the Audit

* This table will be completed prior to the publication of the Annual report but following the receipt of the Auditor- General Report on Service Delivery Performance Year 0

** Inclusion of "Status" depends on nature of AG's remarks on Performance Data.

T 6.2.2

AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS: YEAR 2018/19

Delete Directive note once comment is completed – Information will be available after the Audit.

T 6.2.3

COMMENTS ON AUDITOR-GENERAL’S OPINION YEAR 2018/19:

Delete Directive note once comment is completed – Information will be available after the Audit

T 6.2.4

Municipality | CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS 257

COMMENTS ON MFMA SECTION 71 RESPONSIBILITIES:

Section 71 of the MFMA requires municipalities to return a series of financial performance data to the

National Treasury at specified intervals throughout the year. The Chief Financial Officer states that

these data sets have been returned according to the reporting requirements.

Signed (Chief Financial Officer)………………………………………………………..... Dated

T 6.2.5

Municipality | GLOSSARY 258

GLOSSARY

Accessibility

indicators

Explore whether the intended beneficiaries are able to access services or

outputs.

Accountability

documents

Documents used by executive authorities to give “full and regular” reports on

the matters under their control to Parliament and provincial legislatures as

prescribed by the Constitution. This includes plans, budgets, in-year and

Annual Reports.

Activities The processes or actions that use a range of inputs to produce the desired

outputs and ultimately outcomes. In essence, activities describe "what we

do".

Adequacy indicators The quantity of input or output relative to the need or demand.

Annual Report A report to be prepared and submitted annually based on the regulations set

out in Section 121 of the Municipal Finance Management Act. Such a report

must include annual financial statements as submitted to and approved by the

Auditor-General.

Approved Budget The annual financial statements of a municipality as audited by the Auditor

General and approved by council or a provincial or national executive.

Baseline Current level of performance that a municipality aims to improve when setting

performance targets. The baseline relates to the level of performance

recorded in a year prior to the planning period.

Basic municipal

service

A municipal service that is necessary to ensure an acceptable and

reasonable quality of life to citizens within that particular area. If not provided

it may endanger the public health and safety or the environment.

Budget year The financial year for which an annual budget is to be approved – means a

year ending on 30 June.

Cost indicators The overall cost or expenditure of producing a specified quantity of outputs.

Distribution

indicators

The distribution of capacity to deliver services.

Financial

Statements

Includes at least a statement of financial position, statement of financial

performance, cash-flow statement, notes to these statements and any other

statements that may be prescribed.

General Key

performance

indicators

After consultation with MECs for local government, the Minister may prescribe

general key performance indicators that are appropriate and applicable to

local government generally.

Impact The results of achieving specific outcomes, such as reducing poverty and

creating jobs.

Inputs All the resources that contribute to the production and delivery of outputs.

Inputs are "what we use to do the work". They include finances, personnel,

equipment and buildings.

Integrated

Development Plan

(IDP)

Set out municipal goals and development plans.

Municipality | GLOSSARY 259

National Key

performance areas

• Service delivery & infrastructure

• Economic development

• Municipal transformation and institutional development

• Financial viability and management

• Good governance and community participation

Outcomes The medium-term results for specific beneficiaries that are the consequence

of achieving specific outputs. Outcomes should relate clearly to an institution's

strategic goals and objectives set out in its plans. Outcomes are "what we

wish to achieve".

Outputs The final products, or goods and services produced for delivery. Outputs may

be defined as "what we produce or deliver". An output is a concrete

achievement (i.e. a product such as a passport, an action such as a

presentation or immunization, or a service such as processing an application)

that contributes to the achievement of a Key Result Area.

Performance

Indicator

Indicators should be specified to measure performance in relation to input,

activities, outputs, outcomes and impacts. An indicator is a type of

information used to gauge the extent to

which an output has been achieved (policy developed, presentation delivered,

service rendered)

Performance

Information

Generic term for non-financial information about municipal services and

activities. Can also be used interchangeably with performance measure.

Performance

Standards:

The minimum acceptable level of performance or the level of performance

that is generally accepted. Standards are informed by legislative requirements

and service-level agreements. Performance standards are mutually agreed

criteria to describe how well work must be done in terms of quantity and/or

quality and timeliness, to clarify the outputs and related activities of a job by

describing what the required result should be. In this EPMDS performance

standards are divided into indicators and the time factor.

Performance

Targets:

The level of performance that municipalities and its employees strive to

achieve. Performance Targets relate to current baselines and express a

specific level of performance that a municipality aims to achieve within a

given time period.

Service Delivery

Budget

Implementation Plan

Detailed plan approved by the mayor for implementing the municipality’s

delivery of services; including projections of the revenue collected and

operational and capital expenditure by vote for each month. Service delivery

targets and performance indicators must also be included.

Vote: One of the main segments into which a budget of a municipality is divided for

appropriation of money for the different departments or functional areas of the

municipality. The Vote specifies the total amount that is appropriated for the

purpose of a specific department or functional area.

Section 1 of the MFMA defines a “vote” as:

a) one of the main segments into which a budget of a municipality is divided

for the appropriation of money for the different departments or functional

areas of the municipality; and

b) which specifies the total amount that is appropriated for the purposes of the

department or functional area concerned

Municipality | APPENDICES 261

APPENDICES

APPENDIX A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL

ATTENDANCE

Councillors, Committees Allocated and Council Attendance 2018/2019

Council Members Full Time /

Part Time

Committees Allocated Percentage Council

Meetings Attendance

Percentage Apologies for non-

attendance

FT /PT % %

N BEST FT LED, Tourism, Community Development ANC 100.00 0.00

C CAPKEY PT Human Settlement and Land Development

DA 54.55 27.27

MD DLHAMINI FT Water, Electricity and Gas ANC 100.00 0.00

WA FIHLA DA 72.73 9.09

N GCWALANGOBUTHI PT Public Safety and Transport UDM 45.45 36.36

L ISHERWOOD PT LED, Tourism, Community Development/Roads, Stormwater & Public Works

DA 54.55 27.27

MP LEFAKANE PT Sport, Recreation, Arts and Culture EFF 54.55 18.18

MA LEGABE PT Water, Electricity and Gas/LED, Tourism, Community Development

EFF 54.55 0.00

EM LEKOPA FT Health & Social Development ANC 100.00 0.00

MB LEPHUTING FT Integrated Environmental Management ANC 100.00 0.00

MS LINKS PT Health & Social Development /Corporate and Shared Services/Finance

ANC 72.73 27.27

BR MAFIKA PT Public Safety and Transport/Roads, Stormwater & Public Works

ANC 100.00 0.00

MA MALIBE PT Health & Social Development/Human Settlement & Land Development

ANC 63.64 27.27

NH MALINGA PT Integrated Environmental Management EFF 27.27 0.00

MZ MASHANGOANE PT Health & Social Development/Roads, Stormwater & Public Works

DA 63.64 27.27

MN MATSHE FT Public Safety and Transport ANC 100.00 0.00

WM MBABA PT Corporate & Shared Services/Water, Electricity & Gas/LED, Tourism, Community Development

ANC 81.82 9.09

N MCETYWA PT Public Safety & Transport/Roads, Stormwater & Public Works/LED, Tourism, Community Development

ANC 90.91 9.09

LA MGANU PT Sports, Recreation, Arts & Culture ANC 81.82 9.09

VG MHANI EFF 45.45 63.64

TM MNQANDI PT Water, Electricity & Gas/LED, Tourism, Community Development/Finance

ANC 100.00 0.00

MF MOEKETSI-MOTHOLO

PT Public Safety & Transport/Health & Social Development/Integrated Environmental Management

ANC 100.00 0.00

SM MOGALE-LETSIE FT Executive Mayor ANC 81.82 9.09

T MOKUKE

PT Corporate & Shared Services/LED, Tourism, Community Development /Finance

ANC 90.91 9.09

MJ MOLOKELE PT Water, Electricity & Gas/Finance DA 81.82 9.09

WT MOSIANE FT Chief Whip ANC 100.00 0.00

JT MOTHIBI PT DA 63.64 27.27

M MOYENI FT Human Settlement & Land Development

ANC 81.82 9.09

TE MPHITHIKEZI FT Speaker ANC 36.36 0.00

BA MPEKE PT Public Safety & Transport/Water,

Electricity & Gas ANC 81.82 0.00

IE MUKWEVHO PT Roads, Stormwater & Public Works EFF 63.64 0.00

Kl Nabiso EFF 54.55 45.45

M NAKI PT Corporate & Shared Services/Roads, Stormwater & Public Works

ANC 100.00 0.00

JM NDOBATHA PT Human Settlement & Land Development

EFF 54.55 0.00

M NGQELE FT Corporate & Shared Services ANC 45.45 18.18

DC NIEUWENHUYZEN PT Corporate & Shared Services/Sports, Recreation, Arts & Culture

DA 45.45 9.09

MB NKABINDE PT Public Safety & Transport/Integrated Environmental Management

ANC 100.00 0.00

MP NKUTHA PT Public Safety & Transport/Water, Electricity & Gas/Sports, Recreation, Arts and Culture

ANC 100.00 0.00

VB NKWANYANA PT Water, Electricity & Gas/LED, Tourism, Community Development

IFP 54.55 36.36

JT PHOOKO PT AIC 72.73 9.09

MW RAMODUPI PT Human Settlement & Land Development/Water, Electricity & Gas

DA 63.64 18.18

CMD REBELO PT Public Safety & Transport/Corporate Support & Shared Services

DA 54.55 36.36

NP SALANE PT Human Settlement & Land Development/Finance/Roads, Stormwater & Public Works

ANC 81.82 9.09

MB SELELALE PT Health & Social Development EFF 72.73 9.09

GM SELLO FT Roads, Stormwater & Public Works ANC 63.64 18.18

ML SKOSANA FT Sports, Recreation, Arts & Culture ANC 81.82 9.09

F SONTSHWAYO

PT Water, Electricity & Gas/Sports, Recreation, Arts & Culture/Integrated Environmental Management

ANC 63.64 9.09


DV TABANE FT Finance ANC 100.00 0.00

MP TELEKO PT Corporate & Shared Services EFF 63.64 9.09

SJ TLHAPI PT Public Safety & Transport/Integrated

Environmental Management DA 45.45 18.18

NA TSOTETSI FT Chairperson: MPAC ANC 81.82 0.00

VM TYELINGANE PT Health & Social Development/Human Settlement & Land Development/Integrated Environmental Management

ANC 90.91 9.09

B VAN DER BERG PT Public Safety & Transport/Finance/Roads, Stormwater & Public Works

VFP 100.00 0.00

A VENTER PT Health & Social Development/Sports, Recreation, Arts & Culture

DA 45.45 54.55

JDW ZWART PT Finance/Integrated Environmental management

DA 72.73 27.27

Concerning T A

Delete Directive note before publication: Provide comments on the above table.

T A.1

APPENDIX B – COMMITTEES AND COMMITTEE PURPOSES

Committees (other than Mayoral / Executive Committee) and Purposes of Committees

Municipal Committees Purpose of Committee

Mayoral Committee Advice the Executive Mayor

Section 80 Committees Consider reports of departments and submit recommendations to the Executive Mayor

Audit Committee To perform an oversight role

MPAC Committee - Section 79 Committee

Oversight role on the activities of Council as well as an Oversight role on the Annual Report

Organisational Performance Management Committee - Section 79 Committee

Oversight role on the Organisational Performance of the Council

T B1

Committees (other than Mayoral / Executive Committee) and Purposes of Committees

Municipal Committees Purpose of Committee

Audit Committee - Mr. B Ahmed CA (SA)

(Chairperson)

- Mr. T Nemadzhilili

- Mr. L Malinga

- Mr. L Mangquku CA (SA)

Section 166(2) of the MFMA regulates the functions of the Audit Committee, its powers, composition and frequency of meetings, as it seeks to provide minimum requirements to be complied with. The Audit Committee is an independent advisory body to the municipal council, the political office-bearers, the accounting officer and the management and staff of the municipality, or board of directors, the accounting officer and the management staff of the municipal entity. It is primarily responsible for oversight over the organization’s governance, legislative compliance, control and risk management processes.

Performance Audit Committee - Mr. M Mongalo (Chairperson) - Mr. B Ahmed CA (SA) - Mr. A Mangokwana - Mr. P Fourie CA (SA) - Dr. R Govender

Regulation 14(2) (a) of the Municipal Planning and Performance Management Regulations, 2001 requires that each Municipality must annually appoint and budget for the Performance Audit Committee. Regulation 14(4) (a) of the Municipal Planning and Performance Management Regulations, 2001 states functions and responsibilities of the Performance Audit Committee. The primary objective of the Performance Audit Committee is to exercise oversight over the West Rand municipalities’ performance and performance management processes.

MPAC Committee – Section 79 Committee

Oversight role on the activities of Council as well as an oversight role on the Annual Report

T B2


APPENDIX C –THIRD TIER ADMINISTRATIVE STRUCTURE

Third Tier Structure

Directorate Director/Manager (State title and name)

CORPORATE SUPPORT AND SHARED

SERVICES

Manager Employment Equity Mr G Motaung

Industrial Relations Mr SB Mazibuko

Information Communications and Technology Mr S Segone

Human Capital Mr NJ Rabotapi(Acting)

Corporate Marketing and Communications Vacant

FINANCE

Budget and Treasury and Expenditure: Mr TG Wienekus

Manager Revenue and Credit Control: Mr D Schmidt (Acting)

Supply Chain Management Ms J Magongwa

CHIEF OPERATIONS OFFICE

Risk Management Ms E Segakweng-Diale

Programme Management Office Ms E Ngamashe (Acting)

Integrated Development and Planning Vacant

COMMUNITY SERVICES

Social Development Ms BI Seatlholo

Waste Management Vacant

Public Safety Mr P Olivier (Acting)

SRACH & Lis Vacant

ECONOMIC DEVELOPMENT AND PLANNING

Housing and Administration Mr L Jofile

Spatial Planning Ms J Smith

Local Economic Development Vacant

INFRASTRUCTURE DEVELOPMENT

Electrical Services Mr E Shange

Water and Sanitation Services Mr G Dirker

Civil Engineering Ms N Moyo

Project Management Unit Mr D Venter

TC

APPENDIX D – FUNCTIONS OF MUNICIPALITY / ENTITY

Municipal Function Authorization MCLM District Municipality

Air pollution No Yes

Building regulations Yes Yes Yes

Child care facilities Yes Yes Yes

Electricity reticulation Yes Yes

Local tourism Yes Yes Yes

Municipal airports Yes Yes

Municipal planning Yes Yes Yes

Municipal health services Yes

Municipal public transport Yes Yes Yes

Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this constitution or any other law.

Yes Yes

Stormwater management systems in built-up areas

Yes Yes

Trading regulations Yes Yes Yes

Water and sanitation services limited to potable water supply sytems and domestic waste and sewage disposal systems.

Yes Yes Yes

Billboards and the display of advertisements in public places

Yes Yes Yes

Cemeteries, funeral parlours and crematoria

Yes Yes Yes

Cleansing Yes Yes Yes

Fencing and fences Yes Yes Yes

Local sports facilities Yes Yes Yes

Municipal parks and recreation Yes Yes Yes

Municipal roads Yes Yes

Noise pollution Yes Yes Yes

Pounds Yes Yes Yes

Public places Yes Yes Yes

Refuse removal, refuse dumps and solid waste disposal

Yes Yes Yes

Street trading Yes Yes Yes

Street lighting Yes Yes Yes

Traffic and parking Yes Yes Yes

* If municipality: indicate (yes or No); * If entity: Provide name of entity TD


APPENDIX E – WARD REPORTING

WARDS Name OF Ward Councilor and ward committee member’s

Committee Establish

Number of committee meeting held during the year

Number of monthly reports submitted to speakers office on time

Number of quarterly public ward meetings held during the year

01 Cllr G.M SELLO Yes 12 12 4

MOTAU TSHABO KITTAH

MOTSUMI TOKO ALFRED

LEFIFI KGOSIETSILE

MUNYAI MASELLO LETTIE

BADUKANYE ITHUMELENG BEN

QOSHE NOLUTHANDO

MOLELEKI SKEINKY JOHANNAH

NTSANE MADINEO

FOSE JULIA

02 T.M MNQANDI Yes 12 12 4

MDEMKA ABRAM

SIBANDA LEBO

MBELE MADIKGANG

MGQUBA DALIWONGA

NGOKUHLWA NTSIKELELO

MASILO MOTLALEPULE

MOSOCHE NKAKI

SAKATI MARIA

KHALA NOMATHAMSANQA

BILA NOMAZIZI

03 Cllr S.LINKS YES 12 12 4

MPHEGO MAPHONTLO ABRAM

WHITE MAPHE ELIZABETH

RAKGOMO RAMOTSWEDI DANIEL

PHEHLANI MAKI GLADYS

DIANE KEAGILE MARIA

TAMLE NOKOMDELI ANDERSON

MATHIBI EXENIA MOSIA

BOBI MALIXOLE ANDERSON

TSHABALALA TSHIMANE ROBERT

MANHISSE NOSIZWE VERONICA

04 Cllr B.R MAFIKA Yes 12 12 4

NOTA ANGNES NCEDISWA NOYO NOMABONGO ROSE

HLONGWANE NOSITHILE CATHRINE

PONDO BUYISWA

SIGAGAYI MAZOLANI

NDITHA NONKULULEKO

RAMMONI DITEKO FRANS

SIGONYELA ZANELE

MPASI JEANET NTSOAKI

KHUMISI MALOA AMELA

05 Cllr. N.MCETYWA Yes 12 12 4

BOOI WANDILE

GOSHOBE NONTSIKELELO

SPAMLA NONTSIKELELO

GUNUZA KHANYISA

KGOROYABOCO OTLADIRANG

NANA NOSISA

MATETA NTSWAKI

MANTSHINGANE NOXOLO

LEDUBA NTHABELENG

TOBAYO NOSIPHO

06 Cllr. N.A. TSOTETSI Yes 12 12 4

12 12 4

4 12 4

NKALA SIBUSISO ABEDNICO

NGWANE BULELANI JOEL

RALEKUKU TSELENG THERASIA

ADAMS PIKI WILLIAM

MPONGO REFILWE MARCIA

MOKOKOANA LEFU EDWIN

KHALIPHA TALITA

MATHIKGE PETRUS

SANGXU SYLVIA

07 Cllr. M.P.NKUTHA Yes 12 12 4

BAAS OUPA

RAMANTSI APRIL

NKABINDE PAUL

NGQAQU THAMSANQA

FIKENI MILEKA

MAGWAZA NOBUHLE

MBENGO NTOMBI

NKABINDE PAUL

NXIBA NOKUTHULA

BAAS ABIAS

08 Cllr. M.B. NKABINDE Yes 12 12 4

MAHAMBA THEMBA ABRAM

MPHITHI MOWONGA PETRUS

MHLANGA NOSIPHO AGATHA

ZIQOTYANA NOCAWE

FOTENG TEBOGO KENNETH

TOBATOBA MPOLOOKENG SELINA

MADIKIZELA YONELA

KGOBE NOMVULA MOTI

COLIATH NOMAKHOSAZAN CHRISTINA

MANTLONI SITATA MHLANGANYEZWA

09 Cllr. M.A MALIBE Yes 12 12 4

PITLELE NGAKA

MAKGABUTLANE TEBOGO


TSEMATSI MAPITSO

MOGAGABE ANDRIES

MAKHUTLE NKADIMO

NGCUKA SANDISISWE

PHIRI ALETA

MAHABE PAGISO

NTSHIBA LUCIE

NHACUMAGUE ISSAIA PETRUS

10 Cllr. M.N. MATSHE Yes 12 12 4

DLAMINI SIPHO MUSA

MOLOATOA RAMORWALLA NICHOLARS

MOTSUMI-MOGAKI NTHOTE MARTHA

MASILELA DIMAKATSO CONSTANCE

MOHANOE MASABATHA STELLA

MOKGOKOLUSI MOJELE MARIA

MASAU LESEHGO PHILADELPHINIA

SKOSANA PASEKA RODNEY

MOGALE TSHIDISO

MOYA AARON

11 Cllr. W.M.MBABA Yes 12 12 4

PAMPIER NOSISI FLORENCE

SEKALELI LEHLONOLO JACOB

OLIFANT KEITUMETSE VALENCIA

NJENA DUMISANI VINCENT

TIMBELA NOMATHEMBA MARGARET

TSHEKELA MNCEDISI ELIJAH

MAKHOSONKE AGATHA LIRONTSHO

MAPHIKELELA MALOTOANE JONAS

ZWANE SINDISWA PRISCILLA

LETLABIKA NTHABELENG

12 Cllr. T.MOKUKE YES 12 12 4

WILLEMSE MATTHEUS

DIKOLOMELA FRANS

DANIELS ITUMELENG

MAJIYA LUSANDA

SKOSANA MASERITHI

SETHOLE MADINESE SUZAN

NCEBENI MONWAPELE

NCANA THANDILE

FAKU NDUMISO

MDINGI CELIWE

13 Cllr. F. SONTSHWAYO YES 12 12 4

MALULEKE GEZANI THOMAS

MATOLA BONGIWE

MOLO MASIVUYE

SAIA BENJAMIN

JIBA KHULULEKILE LUCAS

SEABELO MPHO ANNA

NOTSHAYA NOBUNTU

DIKE NTOMBIZODWA

NTLONTI NTOMBETHEMBA

MAGQABI MFANUFIKILE

14 Cllr. A. VENTER YES 12 12 4

MAYEZA NOKWANDA

TSOLOANE LOMILE

MAYEZA ATHENKOSI

HLATSHWAYO JANE

NTSOAKELENG DLOTHI

MASIZA PAMELA

JANSE VAN RENSBURG JACQUES

KGOTLENG KENTSE

MATLALA SIMON

PHIWE NTHOROANE

15 Cllr. L.A MGANU

MBANGWA SIPHOKAZI YES 12 12 4

MAGILIWE NOSPIHIWE

NTONTELA NONFUNDISO

TSHONA FRANCINA

SIXOLO PHAKAMA

DUMAXAKE NTOMBENTLE

MAY SIYOYO

NDAMASE MXOLISI

MOSEBETSANE NTHUSENG

TSHETLHANA MOOKETSANE

16 Cllr. D.C NIEUWENHUYZEN YES 12 12 4

QOLO NOMVULA

HUTANG JOYCE

MHLOGO GUGU

DLAMINI MOROESI

WANA NONTOZIFANI

SONQI NOMAEFESE

LEKHOOA KEKELETSO

TSHOLO MARTHA

NOGAGA SIVIWE

MOSADI JERMINAH

17 Cllr.L ISHERWOOD YES 12 12 4

NTSHULANE PEARL

LUBHEDZE RAYMOND

MATOMELA HAZEL

SEGOE ELISA

BOTLHOLO ALFRED

KHUMALO ANDRIES

KGATITSOE MMADITAU

NTILANE POPI

STUURMAN SIZWE

MOILOA MARIA

18 Cllr.E.LEKOPA YES 12 12 4

MOKOENA MOHANOE SIMON


MOLETSANE NKASA ISHAMEL

SIBIYA MAUREEN LUNGILE

MOKOMA CLEMENT KHULANYA

NHLAPO VERONICA SEIKAENG

LEOTO MAMOKHO PHAMPHILIA

NHLAPO LINDY CONSTANCE

SEREKEGO MAGUDI ALINA

MANGE MANDLENKOSI PAUL

CAN MAMSIE

19 Cllr. V.M TYELINGANE YES 12 12 4

MAKHOWA ZAMILE

MPANZA LUNGILE

MAXHWILI NOWANDILE

NKONJANE KUNGEKA

PHOHLO MAMPHO

FANI BONGIWE

SONYABASHE SIZWE

MAHOMBA FUMANKEKILE

PONI CHAKUVA

RONOTI MAXWELL

20 Cllr.M.NGQELE YES 11 11 4

NKONE NOMUSA

CHABAGAE MARIA

TIT ZIYANDA

VOVO NOMSA

MAKHOHLISO SIPHO

NONINA NOKWEZI

RATSHEFOLA DAVID

NTLANGU NOMFUNDO

NOPOTE JONGILE

21 Cllr. J.D.W. ZWART YES 12 12 4

VISAGIE DIRK

BOFELO THABO

MOERANE TSIETSI

TSHABALALA MOETI

PHEETA SEISO

MOCHACHNE PATRICK

WILLIMS REBECCA

MAGAGANE VICTOR

LOUW AGNES

RAMONANA LETTIA

22 Cllr. M.SKOSANA YES 12 12 4

PHUTHI DILAHLAONE

LESEMELA SELLO

SOLOSHE SIMON

NCHOE MORWESI

CHABANGU DIPUO

MOOTSI DITLHARE

MQOTHO VUYISILE

MANANGA VOBAKHELE

MOLEFE SIPHO

DLAMINI HENDRICK

23 Cllr.M.MOEKETSI YES 12 12 4

MJULEKA NONKQUBELA

SKEYI NOMTHGANDAZO

MANJINGOLO SIMON

MKHWANAZI STANLEY

MOHLOBOLI SIMON

24 Cllr.N.P SALANE YES 12 12 4

LEEPILE ANDRIES

SOMANE WILSON

SEERI THABEA

MOLAUDI OSEYENG

PHALATSE LOMI ONNICA

HOAYANE AGNES

PHAJANE KOMA MATHEWS

MTHIMKHULU MATSHIDISO

MOKOENA PUSELETSO

MOGAWANE GOSIAME

25 Cllr.M.D DLHAMINI YES 12 12 4

NGXAKA SOLSINAH NOMZI

MBITHA NTOMBIZODWA MARTHA

MATHAMELA FRANK TSANI

BILLY CECILIA

MAY BONGIWE

MAGEZA NELISIWE

RAKOMANE MOEDER KGALENG MARTHA

TSHWANA REBECCA

ZANANI SIMO KLEINNOOI

MOGOLE GEORGINA KELEBOGILE

26 Cllr. B.A MPEKE YES 12 12 4

MATIWANE THEMBI

PHENDUKA LINDIWE

QAYI MOLEKO

MPEKE BERNADETTA

JONGA LIZZY

NTANJANA SARAH

MOTSUMI FRANS

MONDI NOMAPHELO

MOSINKI JOHN

PHAMODI ANNA

27 Cllr.M.NAKI YES 12 12 4

SIKO SIMON

MATSHIPA NONTSHUMAYELO

MTSHALI HLONJISWA

NGWANDI THEMBIKHAYA

CINGO BABALWA

NYAMANI SHEPSTONE BONGANI


MARIXINGANA ANDISIWE

LANDU PRINCESS

MOSHOESHOE RONY ROBERT

28 Cllr. C.N.D REBELLO YES 12 12 4

QUIRK LARRY

TEMPLETON JOHN

FANIE PHUTHUMA

MQGALISO RAYMOND

MOLAPO ESTHER

NTSIMANE MARIA

TYATYAZA NOXOLO

MARWANQANA NOZUKO

NQGASA JANE

APPENDIX F – WARD INFORMATION

Ward Title: Ward Name (Number)

Capital Projects: Seven Largest in Year 2018/2019 (Full List at Appendix O)

R' 000

No. Project Name and detail Start Date End Date Total Value

2, 12 Khutsong Ext 5/6 -Internal Services (753 Services Stands) (Phase 5)

2018/01/29 2019/06/30 26 281 910

3 Replacement of Khutsong Reservoir 2017/03/22 2019/07/07 21 399 043

14 Sludge Drying Beds Kokosi WWTW 2018/05/14 2019/06/30 16 005 306

13 Construction of Carletonville Waste Management Depot

2017/04/26 2018/09/30 14 696 032

3 Khutsong Nzwanzwa Street Outfall Sewer Pipeline Bypass

2018/05/18 2019/06/30 12 965 451

5 Carletonville Reservoir (007) 2018/05/18 2019/08/30 10 300 325

12 Adatta Pipeline 2019/05/13 2020/06/30 8 862 641

T F.1

Detail Water Sanitation Electricity Refuse Housing

Households with minimum service delivery

Households without minimum service delivery

Total Households*

Houses completed in year

Shortfall in Housing units

T F.2

Basic Service Provision

*Including informal settlements

No. Priority Name and Detail Progress During Year 0

Top Four Service Delivery Priorities for Ward (Highest Priority First)

T F.3

ELECTED WARD MEMBERS (STATING NUMBER OF MEETING ATTENDED – MAXIMUM 12

MEETINGS)

Names: xxx (8); xxx (7)…

T F.3


APPENDIX G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE YEAR

2018/2019

MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS

Date of Meeting Committee Recommendations during Year

Recommendations adopted (enter Yes) if not adopted (provide explanation)

Audit Committee Meetings: 29/11/2018 22/01/2019 24/06/2019 Performance Audit Committee Meetings: 22/01/2019 24/06/2019

Frequency of Meetings The Committee recommended that management should adhere to the approved Charters and schedule Committee meetings quarterly. Schedule of meetings to be developed annually to ensure compliance with the Charters.

Schedule is now developed

Attendance of Council Meetings The Municipal Manager to ensure that A/C and/or PAC Chairperson receive a standing item to attend Council meetings on a quarterly basis for the purpose of reporting quarterly activities of the Committees to Council.

Invitation of AC Chairperson to attend Council meetings is a standing item.

Appointment of Audit Panel The municipality to appoint a panel of audit firms to assist Internal Audit with planned out-sourced audit projects.

The municipality is in the process of finalising the appointment of Audit Panel. Item to be tabled to Council once finalised.

Capacity of Internal Audit Unit Submission to be made to Council for the municipality to urgently advertise vacant positions within the unit and capacitate Internal Audit, the unit has been functioning without an appointed HOD for over 10 years.

The position of HOD is part of prioritised positions to be advertised in the current Financial Year 2019/2020

Ad-Hoc Audit Projects Internal Audit to seek approval from the Audit Committee Chairperson before accepting ad-hoc audit projects.

Internal Audit is requesting approval from the Chairperson prior to accepting Ad-Hoc projects.

Annual Financial Statements The Committee recommended that Internal Audit plan audit of draft AFS on an annual basis and provide assurance to the

The audit of AFS is included in the Annual Internal Audit Plan (2019/2020)

MUNICIPAL AUDIT COMMITTEE RECOMMENDATIONS

Date of Meeting Committee Recommendations during Year

Recommendations adopted (enter Yes) if not adopted (provide explanation)

municipality prior to AFS being tabled to Council for adoption.

Fraud Hotline The Committee recommended that the municipality go out on tender to secure a new service provider to administer the fraud hotline or request permission to utilize the Provincial Premier Hotline for the reporting of fraud cases

The Municipality will utilize Premier’s hotline, as soon as the appointment of new Service Provider is finalized.

Standing Agenda Items The Committee recommended that the following be standing agenda items: 1. Financial Performance Report; 2. OPCA Plan; 3. MFMA Compliance Report; 4. Risk Management Committee

Chairperson’s Report.

Recommendation implemented all 4 items are included in the AC Agenda.

Performance Reports The Committee recommended that the quarterly performance management reports on pre-determined objectives to be tabled for review to the Committee prior to tabling to Council for approval & adoption. The Municipal Manager to enforce compliance and make emphasis on adherence with reporting timelines to ensure compliance with performance management regulations and legislation.

Recommendation implemented reports are tabled to AC meetings for review before served at Council.


APPENDIX H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS

Long Term Contracts (20 Largest Contracts Entered into during Year 2018/2019)

R' 000

Name of Service

Provider (Entity or Municipal Department)

Description of Services Rendered by the Service

Provider

Start Date of Contract

Expiry date of Contract

Project manager

Contract Value

Omphile Electrical

Electrification Of Khutsong South Ext 5 & 6 24/06/2019 PMU R9 662 748.59

Talis Fleet

Full Maintenance Lease Heavy Vehicles Tender For Three Years 30/04/2019 29//04/2022

CORPORATE SHARED SERVICES

Price Schedule above R10 Million

Zm & Nikiwenono

Construction Of Wedela Ext 3 Roads & Stormwater 06/5/2019 PMU R6 000 000.00

Bidvest Bank Limited

Full Maintenance Lease Light Vehicles Tender For Three Years

30/04/2019 29//04/2022 CORPORATE SHARED SERVICES

Price Schedule below R10 Million In three years

Mabotwane Security Services Cc.

Provision Of Physical Security For The Protection of Municipal Property & Personnel For 36 Months 31/05/2019 30/05/2022

PUBLIC SAFETY

R3 333 997.00 per annum

T H.1

Public Private Partnerships Entered into during Year 2018-2019

R' 000

Name and Description of Project

Name of Partner(s) Initiation Date Expiry date Project manager

Value 2008/09

NIL

T H.2


APPENDIX I – MUNICIPAL ENTITY/ SERVICE PROVIDER PERFORMANCE SCHEDULE

Name of Entity & Purpose (a) Service Indicators Year 2


*Previous Year *Previous Year *Current Year *Current Year *Current Year *Following Year


T I

Note: This statement should include no more than the top four priority indicators. * 'Previous Year' refers to the targets that were set in the Year -1 Budget/IDP round; *'Current Year' refers to the targets set in the Year 0 Budget/IDP round. *'Following Year' refers to the targets

set in the Year 1 Budget/IDP round. Note that all targets must be fundable within approved budget provision. In column (ii) set out the Service Indicator (In bold italics) then the Service Target underneath (not in bold - standard type face) to denote the difference.

(b) Service Targets

Municipal Entity/Service Provider Performance Schedule

Year 0 Year 1 Year 3

Target Target


APPENDIX J – DISCLOSURES OF FINANCIAL INTERESTS

Disclosures of Financial Interests

Period 1 July 2018 to 30 June 2019 (Current Year)

Position Name Description of Financial interests*

(Nil / Or details)

(Executive)

Mayor

SM Mogale

Letsie

Nil

Member of

MayCo /

Exco N Best

Nil

MD Dlhamini Nil

EM Lekopa Nil

MB Lephuting Lephating Security 50 %

MN Matshe Nil

WT Mosiane Nil

M Moyeni Nil

TE Mphithikezi Nil

M Ngqele Nil

GM Sello Nil

MI Skosana Nil

DV Tabane Nil

Councillor C Capkey Nil

NW Gcalangobuthi Nil

L Isherwood Nil

MP Lefakane Nil

MA Legabe Nil

MS Links Nil

BR Mafika Nil

MA Malibe Matema CC 50%

JT Malibe Nil

NH Malinga Nil

MZ Mashangoane Nil

WM Mbaba Nil

N Mcetywa Nil

LA Mganu Am Ampondo Emueli Construction

NC Mngxekeza-Masela Nil

TM Mnqandi Nil

MF Moeketsi-Motholo Nil

T Mokuke Nil

MJ Molokele Nil

JT Mothibi Nil

BA Mpeke Nil

IE Mukwevho Nil

M Naki Nil

JM Ndobatha Nil

DC Nieuwenhuyzen Nil

MB Nkabinde Nil

MP Nkutha Nil

VB Nkwanyana Nil

JT Phooko Nil

MW Ramodupi Nil

CMD Rebelo 100% Carleton Video & Music CC

NP Salane Nil

MB Selelale Nil

F Sontshwayo Nil


MP Teleko Nil

SJ Tlhapi Nil

NA Tsotetsi Nil

TE Tsotetsi Nil

VM Tyelingane Nil

B Van Der Berg Nil

A Venter Nil

JDW Zwart Nil

Municipal

Manager

MN Mokoena P O Box 94, Krugersdorp

Chief

Financial

Officer

M Chauke 5 Greenhills Gardens, Randfontein

Other S57

Officials

CWA Nieuwoudt 12 Iris Avenue, Fochville

H Bredenkamp 12 Ida Street, Carletonville

L Peu 29 Oukraal, 77 Ridge Road, Tigervalley

SE Mantjane 61 Tier Street, Greenhills, Randfontein

SL Mdletshe 448 Santa Maria, Scrooby Street, Willowbrook, Ruimsig

Nil would indicate nothing to declare and is not an indication that no declaration took place.

T J

APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE

APPENDIX K ( i): REVENUE COLLECTION PERFORMANCE BY VOTE

R' 000

Year -1

Actual Original

Budget

Adjusted

Budget

Actual Original

Budget

Adjustments

Budget

Example 1 - Vote 1

Example 2 - Vote 2

Example 3 - Vote 3

Example 4 - Vote 4

Example 5 - Vote 5

Example 6 - Vote 6

Example 7 - Vote 7

Example 8 - Vote 8

Example 9 - Vote 9

Example 10 - Vote 10






Total Revenue by Vote – – – – – –

T K.1

Revenue Collection Performance by Vote

Current: Year 0 Year 0 Variance

Vote Description

Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual.

This table is aligned to MBRR table A3

APPENDIX K ( i i): REVENUE COLLECTION PERFORMANCE BY SOURCE


Year -1

Actual Original

Budget

Adjustments

Budget

Actual Original

Budget

Adjustments

Budget

Property rates 26,485 23,572 28,075 23,042 -2% -22%

Property rates - penalties & collection charges 8,541 8,285 9,054 8,456 2% -7%

Service Charges - electricity revenue 12,355 10,254 12,478 13,219 22% 6%

Service Charges - water revenue 14,232 13,235 13,662 12,097 -9% -13%

Service Charges - sanitation revenue 6,542 5,496 5,954 6,346 13% 6%

Service Charges - refuse revenue 1,865 1,622 1,865 1,510 -7% -23%

Service Charges - other 5,643 5,530 5,925 5,304 -4% -12%

Rentals of facilities and equipment 5,643 5,530 5,925 5,304 -4% -12%

Interest earned - external investments 5,322 4,470 5,747 4,630 3% -24%

Interest earned - outstanding debtors 8,455 8,455 8,624 9,554 12% 10%

Dividends received 1,254 1,003 1,191 1,354 26% 12%

Fines 2,516 2,063 2,264 2,340 12% 3%

Licences and permits 6,846 6,230 7,256 6,640 6% -9%

Agency services 12,546 10,413 11,793 11,542 10% -2%

Transfers recognised - operational 2,355 2,190 2,425 2,402 9% -1%

Other revenue 48,542 40,776 48,542 46,115 12% -5%

Gains on disposal of PPE 4,565 3,698 4,337 4,291 14% -1%

Enviromental Proctection 5,649 4,971 6,157 4,971 0% -24%

Total Revenue (excluding capital transfers

and contributions)

179,353 157,791 181,274 169,118 6.70% -7.19%

T K.2Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to

MBRR table A4.

Revenue Collection Performance by Source

R '000

Description

Year 0 Year 0 Variance

APPENDIX L: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG

Conditional Grants: excluding MIG

R' 000

Details

Budget Adjustments Budget

Actual Variance Major conditions applied by

donor (continue below if

necessary)

Budget Adjustments Budget

Neighbourhood Development Partnership Grant

Public Transport Infrastructure and Systems Grant

Other Specify:

Water Services Infrastructure Grant 55 000 56 308 21 399 -157% -163%

CoGTA 20 000 20 000 8 863 -126% -126%

Mining Town Allocation (CoGTA) 46 900 50 666 15 700 -199% -223%

Integrated National Electrification Program (INEP)

16 000 10 000 11 420 -40% 12%

Human Settlements Development Grant

52 380 79 688 79 716 34% 0%

Municipal Disaster Recovery Grant

21 317 45 234 37 353 43% -21%

Expanded Public Works Programme (Public Works & CoGTA)

1 680 1 680 1 963 14% 14%

Total 213 277

263 575 176 413

-21% -49%

* This includes Neighbourhood Development Partnership Grant, Public Transport Infrastructure and Systems Grant and any other grant excluding Municipal Infrastructure Grant (MIG) which is dealt with in the main report, see T 5.8.3. Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. Obtain a list of grants from national and provincial government. T

L

FOR GRANT CONDITIONS, SEE APPENDIX L (WORD DOCUMENT) SUBMITTED SEPARATELY BY PMU

COMMENT ON CONDITIONAL GRANTS EXCLUDING MIG:


LOCAL GOVERNMENT EQUITABLE SHARE

In terms of section 227 of the Constitution, local government is entitled to an equitable share of nationally raised revenue to enable it to provide basic services and perform its allocated functions. The local government equitable share is an unconditional transfer that supplements the revenue that municipalities can raise themselves (including property rates and service charges). The equitable share provides funding for municipalities to deliver free basic services to poor households and subsidises the cost of administration and other core services for those municipalities that have the least potential to cover these costs from their own revenues.

MUNICIPAL SYSTEMS IMPROVEMENT GRANT

Grant purpose is to assist municipalities to perform their functions and stabilise institutional and governance systems as required in the Municipal Systems Act, the Municipal Property Rates Act and related legislation.

It will fund a range of projects in municipalities in support of the Back to Basics strategy, including helping municipalities set up adequate records management systems, drawing up organograms for municipalities and reviewing their appropriateness relative to their assigned functions, and assisting municipalities with revenue collection plans. The indirect grant will be complemented by the Department of Cooperative Governance’s work to develop an integrated consumer database that municipalities can draw data from, as well as a performance management system to track municipal performance.

Conditions

The Department of Cooperative Governance and the benefitting municipality must sign a memorandum of understanding that includes: details of the activities and deliverables being funded, responsibilities of each stakeholder, protocols for engagements and feedback, the budget for each activity and timeframes for implementation.

Municipalities must pass a council resolution supporting the memorandum of understanding

Technical support to municipalities must include transfer of skills to municipal officials • Grant funds may be spent on building the capacity of municipalities with respect to the purpose and outputs

listed for this grant FINANCIAL MANAGEMENT GRANT

The purpose of the grant is to promote and support reforms in financial management by building capacity in municipalities to implement the Municipal Finance Management Act (MFMA)

In respect of the conditions of the grant, FMG funds can be used towards the following: • Establishment of a Budget and Treasury Office (BTO) with positions filled by appropriately qualified

personnel o establishment of SCM capacity, an Internal Audit unit and Audit Committees • At least five interns appointed over a multi-year period • On-going review, revision and submission of FMG support plans to National Treasury that address

weaknesses in financial management • Acquisition, upgrade and maintenance of financial management systems to produce multi-year budgets, in-

year reports, Service Delivery and Budget Implementation Plans, Annual Financial Statements, annual reports and automated financial management practices including the municipal Standard Chart of Accounts

• Review and adoption of a delegation system

• Support the training of municipal officials in financial management towards attaining the minimum competencies, as regulated in Government Gazette 29967 of June 2007

• Preparation and timely submission of annual financial statements for audits • Support implementation of corrective actions to address audit findings in municipalities that received

adverse and disclaimer opinions • Technical support in financial management to municipalities must include the transfer of skills to municipal

officials • The preparation of a financial recovery plan and the implementation thereof, where appropriate • Implementation of financial management reforms and addressing shortcomings identified in the Financial

Management Capability Maturity Model (FMCMM) Assessment Report for that municipality • Ensuring timely submission of the FMG support plan consistent with the conditions of the grant.

Regular, timely submission of reports with completed information.

Expenditure must be maintained at appropriate levels. EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT

The purpose of the grant is to incentivise municipalities to expand work creation efforts through the use of labour intensive delivery methods in the following identified focus areas, in compliance with the EPWP guidelines: road maintenance and the maintenance of buildings low traffic volume roads and rural roads basic services infrastructure, including water and sanitation reticulation (excluding bulk infrastructure) other economic and social infrastructure tourism and cultural industries waste management parks and beautification sustainable land-based livelihoods social services programmes community safety programmes

Conditions

EPWP projects must comply with the project selection criteria determined in the EPWP grant manual, the EPWP guidelines set by Department of Public Works (DPW) and the ministerial determination;

Eligible provincial departments must sign a funding agreement with their final EPWP project list attached, before the first planned disbursement of the grant

Provincial departments must report quarterly on all projects via DPW’s EPWP reporting system

Reports must be loaded on the EPWP reporting system within 30 days after the end of every quarter in order for progress to be assessed

The grant cannot be used for departmental personnel costs, however a maximum of five per cent of the grant can be used to fund contract based capacity required to manage data capturing and on-site management costs related to the use of labour intensive methods

The grant can only be utilised for EPWP purposes and for the projects approved in the EPWP Integrated Agreement signed by each eligible provincial department

To receive the first planned grant disbursement, eligible provincial departments must: o submit a final EPWP project list by the 26 April 2018 o sign a grant agreement with DPW

Subsequent grant disbursements are conditional upon eligible provincial departments: o reporting on EPWP performance quarterly within the required time frames o reporting on all EPWP Integrated Grant funded projects o implementing their approved EPWP project list as planned towards the agreed job creation targets o submit, on a quarterly basis, non-financial reports by the timelines stipulated in the clauses of the 2018

Division of Revenue Act


Reporting on EPWP Integrated Grant expenditure monthly within the required time frames

EPWP branding must be incorporated in any existing signage as per corporate identity manual

Provincial departments must maintain beneficiary and or payroll records as specified in the audit requirements in the EPWP grant manual, and make these available to DPW for data quality assessment tests

INTEGRATED NATIONAL ELECTRIFICATION PROGRAMME GRANT (MUNICIPAL)

Grant purpose is to implement the Integrated National Electrification Programme (INEP) by providing capital subsidies to municipalities to address the electrification backlog of occupied residential dwellings, and the installation of bulk infrastructure

Conditions

Adhere to labour intensive construction methods in terms of the Expanded Public Works Programme (EPWP) guidelines for activities such as trenching, planting of poles, etc.

Register electrification master plans for bulk infrastructure with INEP and abide by the advice or guidance of the Department of Energy (DoE) regarding the central planning and co-ordination for such bulk infrastructure

Bulk infrastructure can only be funded for infrastructure serving poor households (where infrastructure serves tariff-funded areas and poor households costs should be shared)

Use INEP funds for the refurbishment of critical infrastructure, only upon submission of a project plan which must be approved by the DoE

Utilise own funding if the subsidy is insufficient (top�up funding must be available)

Minimum size of supply of 1.2 kVA After Diversity Maximum Demand, standard installation of 20 Amp per household connection, in line with the Suite of Supply Policy

Municipalities may utilise up to R1.5 million of their total allocation for service fees (pre-engineering and Eskom connection fee) if approved by the DoE in their business plans

WATER SERVICES INFRASTRUCTURE GRANT

Grant purpose is to:

Facilitate the planning and implementation of various water and on-site sanitation projects to accelerate backlog reduction and enhance the sustainability of services especially in rural municipalities

Provide interim, intermediate water and sanitation supply that ensures provision of services to identified and prioritised communities, including through spring protection and groundwater development

Support municipalities in implementing water conservation and water demand management (WC/WDM) projects

Support the existing Bucket Eradication Programme intervention in formal residential areas

Support drought relief projects in affected municipalities Conditions

All projects funded must be aligned to, and not duplicate, any existing or planned projects funded by other conditional grants or municipalities’ own funds

Municipalities must demonstrate in their business plans how they plan to manage, operate and maintain the infrastructure over the long term

Schedule 5, Part B allocations

Municipalities must submit business plans signed off by their Accounting Officer in line with their Water Services Development Plans (WSDPs) and Integrated Development Plans (IDPs)

DWS must approve the business plans before projects can be implemented

WSAs may only spend funds in line with approved business plans

WSAs must submit monthly financial and quarterly non-financial reports to DWS

Funds must be reflected in the capital budget of the municipality

Grant funds must not be spent on operations and routine maintenance

The Project Management Unit funded through the Municipal Infrastructure Grant should be utilised to manage the implementation of projects funded through this grant

Funds may only be used for drought relief interventions based on a plan approved by DWS

Schedule 6, Part B allocations

Municipal accounting officers must sign-off that business plans are in line with their WSDP/IDP. In the case of Bucket Eradication Programme projects, a memorandum of understanding (MoU) will guide implementation

DWS must approve the business plans before projects can be implemented

DWS must enter into a MoU with the relevant municipality before any project is implemented

Service level agreements (SLAs) between DWS and the WSA must specify: o the location of the project and communities impacted o the consultation process that was undertaken with affected communities o the alignment between the project plan and the municipality’s WSDP and IDP o the interim/intermediate and/or localised infrastructure that will be built or the intervention that will be

implemented o the cost of the project and timeframe for completion o how maintenance of the infrastructure will be conducted and funded in future by the municipality o details of how the capacity of the municipality will be strengthened through the project implementation

process so that it can implement projects itself in future o DWS’s implementing agent o agreement by the municipality that the project should be implemented as an allocation-in-kind HUMAN SETTLEMENTS DEVELOPMENT GRANT The purpose of the grant is to provide funding for the creation of sustainable and integrated human settlements. Conditions

Funds for this grant should be utilised for the priorities as set out in the 2014-19 Medium Term Strategic Framework for human settlements.

The transfer of the first tranche of funds is conditional on approval by the national Department of HumanSettlements (DHS) of provincial business plans consistent with the provisions of the Housing Act, 2017 Division of Revenue Act (DoRA) and in compliance with the National Housing Code.

The transfer of subsequent tranches is conditional on provinces capturing the targets and budget and capturing delivery statistics and expenditure monthly on the housing subsidy system (HSS) and the basic accounting system (BAS), at sub-sub-programme level, and submitting monthly reconciliations within the required time frames.

The provinces must ensure reconciliation and alignment of financial and non-financial outputs between the HSS and Basic Accounting System on a monthly basis.

All projects in the approved business plan must be aligned with the integrated development plan (IDP) and the spatial development framework of municipalities as well as the built environment performance plan (BEPP) for metropolitan municipalities.

Draft and final business plans must be aligned to provincial annual performance plans.

Provincial Heads of Departments (HoDs) must sign-off and confirm that projects captured in business plans are assessed and approved for implementation in the 2018/19 financial year.

Provinces may utilise up to a maximum of five per cent of the provincial allocation for the operational capital budget programme to support the implementation of the projects contained in the business plan.


Provinces must indicate budget allocations consistent with provincial and related municipal backlogs for adequate housing.

Provinces must gazette allocations for respective accredited municipalities in terms of the DoRA by no later than 31 May 2018. This should specify the amount of operational funding to be transferred to accredited municipalities.

Where municipalities have been accredited for the housing function, the provincial business plans must reflect relevant allocations, targets and outputs as agreed and approved with the respective municipalities.

Provinces may utilise a maximum of 2 per cent of the Human Settlements Development Grant

(HSDG) for the provision of bulk infrastructure projects for basic services in non-metropolitan municipalities to unlock human settlement projects on condition that the funding is complementary with commitments by municipalities in their Integrated Development Plan and municipal budget for provision of such bulk and infrastructure with Municipal Infrastructure Grant funding. Prior approval of the transferring officer is required.

Provinces may request in writing to the transferring officer approval to amend their approved business plan. Requests must be submitted between 15 August and 15 October 2018. This will be the only time that provinces can request amendment to the approved business plan. Revised plans will be approved by 30 October 2018.

The payment schedules should be derived from the cash flows contained in the approved business Plan.

A minimum of 30 per cent of the total must be allocated for the upgrading of informal settlements programme with targets segregated per province in the delivery agreement.

In addition, the following funds must be earmarked to support the upgrading of informal settlements in the area of each respective mining town. These are additional funds and may not be used to replace existing baseline funds allocated to projects in these areas. The following funds may only be utilised to fund projects and related infrastructure (including bulk) for housing and human settlements developments in the following prioritised mining towns:

Gauteng: o Merafong City: R46.9 million o Rand West City R73.4 million o Mogale City: R31.1 million

Ring-fenced funds that are underperforming in-year may be stopped and reallocated to a different province for the same ring-fenced purpose

Provinces must include the nationally approved human settlements catalytic projects in their business plans as per the catalytic programme requirements. In addition provinces must allocate a reasonable percentage of their grant allocation to the approved national priority catalytic projects in line with their projects readiness status

A minimum of 30 per cent of HSDG allocations should be allocated to contracts awarded to all targeted groups as per the amended Preferential Procurement Regulations 2017, issued by National Treasury

At least 2 per cent of the HSDG grant should be allocated to programmes and projects for the implementation of innovative building technologies in the human settlements implementation delivery chain

Provinces should ensure that the allocation for land acquisition and related purposes is included in the business plans

Provinces must agree with municipalities on a plan for the provision of basic services to all households served in new housing developments

MUNICIPAL DISASTER RECOVERY GRANT

To rehabilitate and reconstruct municipal infrastructure damaged by a disaster

Conditions

They include the following requirements and govern the use of disaster funds:

A business plan and project implementation plan signed by the Accounting Officer aligned to the post disaster verification assessment report must be submitted to the NDMC.

Disaster reconstruction and rehabilitation funds must only be utilised for approved projects as listed in the post disaster verification assessment reports and approved business plans.

Monthly and quarterly financial and non-financial performance reports on disaster allocations must be submitted to the NDMC through the relevant Provincial Disaster Management Centre (PDMC).

Annual performance evaluation report on financial and non-financial performance to be submitted to the NDMC through the relevant PDMC.

Municipalities must liaise and align the disaster recovery projects with the Municipal Infrastructure Grant projects to ensure proper monitoring and reporting on the progress for implementation of the projects.

Transfers will only be made if municipalities have submitted financial and non-financial reports required in terms of the 2018 Division of Revenue Act for this financial year and the previous financial year (if funds for disaster recovery were allocated in that year).

Funds will be transferred in tranches, the transfer of funds will depend on the past and current performance of the municipalities in relation to the conditions of the grant in case funds for disaster recovery were allocated in the previous year

CoGTA (WATER SUPPLY INFRASTRUCTURE GRANT) The purpose of this grant is to provide financial assistance to the Merafong Local Municipality towards the replacement of water services infrastructure for water supply purposes in Khutsong Ext. 1, 2, 4 and Welverdiend. Conditions

The funding will only be utilized to cover the costs for improvement of the geotechnical conditions and the replacement of the pipe line.

Project cost estimate has been determined;

A report for on the expenditure incurred has been submitted; A joint project management committee to fulfil the monitoring, evaluation and reporting on the project was

established between COGTA.

Delete Directive note once comment is completed – Use this box to provide additional information

on grant benefits or conditions and reasons for acceptance.

T L.1


APPENDIX M: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL

PROGRAMMES

APPENDIX M (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME

Year -1

ActualOriginal

Budget

Adjustment

Budget

Actual

ExpenditureFY + 1 FY + 2 FY + 3

Capital expenditure by Asset Class

Infrastructure - Total – – – – – –

Infrastructure: Road transport - Total – – – – – –

Roads, Pavements & Bridges

Storm water

Infrastructure: Electricity - Total – – – – – –

Generation


Street Lighting

Infrastructure: Water - Total – – – – – –

Dams & Reservoirs

Water purification

Reticulation

Infrastructure: Sanitation - Total – – – – – –

Reticulation

Sewerage purification

Infrastructure: Other - Total – – – – – –

Waste Management

Transportation

Gas

Other

Community - Total – – – – – –

Parks & gardens

Sportsfields & stadia

Swimming pools

Community halls

Libraries

Recreational facilities

Fire, safety & emergency

Security and policing

Buses

Clinics

Museums & Art Galleries

Cemeteries

Social rental housing

Other

Table continued next page

Year 0 Planned Capital expenditure

Capital Expenditure - New Assets Programme*

Description

R '000

Table continued from previous page

Year -1

ActualOriginal

Budget

Adjustment

Budget

Actual



Heritage assets - Total – – – – – –

Buildings

Other

Investment properties - Total – – – – – –

Housing development

Other

Other assets – – – – – –

General vehicles

Specialised vehicles

Plant & equipment

Computers - hardware/equipment

Furniture and other office equipment

Abattoirs

Markets

Civic Land and Buildings

Other Buildings

Other Land

Surplus Assets - (Investment or Inventory)

Other

Agricultural assets – – – – – –

List sub-class

Biological assets – – – – – –

List sub-class

Intangibles – – – – – –

Computers - software & programming

Other (list sub-class)

Total Capital Expenditure on new assets – – – – – –

Specialised vehicles – – – – – –

Refuse

Fire

Conservancy

Ambulances

T M.1* Note: Information for this table may be sourced from MBRR (2009: Table SA34a)

Capital Expenditure - New Assets Programme*

Year 0 Planned Capital expenditureDescription

R '000


APPENDIX M (ii) : CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME

Year -1

ActualOriginal

Budget

Adjustment

Budget

Actual



Infrastructure - Total – – – – – –

Infrastructure: Road transport -Total – – – – – –

Roads, Pavements & Bridges

Storm water

Infrastructure: Electricity - Total – – – – – –

Generation


Street Lighting

Infrastructure: Water - Total – – – – – –

Dams & Reservoirs

Water purification

Reticulation

Infrastructure: Sanitation - Total – – – – – –

Reticulation

Sewerage purification

Infrastructure: Other - Total – – – – – –

Waste Management

Transportation

Gas

Other

Community – – – – – –

Parks & gardens

Sportsfields & stadia

Swimming pools

Community halls

Libraries

Recreational facilities

Fire, safety & emergency

Security and policing

Buses

Clinics

Museums & Art Galleries

Cemeteries

Social rental housing

Other

Heritage assets – – – – – –

Buildings

Other

Table continued next page

Capital Expenditure - Upgrade/Renewal Programme*


Description

R '000

Table continued from previous page

Year -1

ActualOriginal

Budget

Adjustment

Budget

Actual



Investment properties – – – – – –

Housing development

Other

Other assets – – – – – –

General vehicles

Specialised vehicles

Plant & equipment

Computers - hardware/equipment

Furniture and other office equipment

Abattoirs

Markets

Civic Land and Buildings

Other Buildings

Other Land

Surplus Assets - (Investment or Inventory)

Other

Agricultural assets – – – – – –

List sub-class

Biological assets – – – – – –

List sub-class

Intangibles – – – – – –

Computers - software & programming

Other (list sub-class)

Total Capital Expenditure on renewal of existing

assets – – – – – –

Specialised vehicles – – – – – –

Refuse

Fire

Conservancy

Ambulances

T M.2* Note: Information for this table may be sourced from MBRR (2009: Table SA34b)

Capital Expenditure - Upgrade/Renewal Programme*


Description

R '000


APPENDIX N – CAPITAL PROGRAMME BY PROJECT YEAR 0

Capital Project Original

Budget

Adjustment

Budget

Actual Variance

(Act - Adj)

%

Variance

(Act - OB)

%

Water

"Project A" 82 85 92 8% 11%

"Project B" 82 85 92 8% 11%

"Project C" 85 90 95 5% 11%

Sanitation/Sewerage

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Electricity

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Housing

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Refuse removal

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Stormwater

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Economic development

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Sports, Arts & Culture

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Environment

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Health

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Safety and Security

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

ICT and Other

"Project A" 82 85 92 8% 11%

"Project B" 85 90 95 5% 11%

Capital Programme by Project: Year 0

T N

R' 000

APPENDIX O – CAPITAL PROGRAMME BY PROJECT BY WARD YEAR 0

Capital Programme by Project by Ward: Year 2018/19

R' 000

Capital Project Ward(s) affected Works completed (Yes/No)

Water

Khutsong North Water & Sewer Reticulation 6-10 No

Replacement of Khutsong Reservoir 3 No

Khutsong Reservoir 3 Yes

Carletonville Reservoir( 007) 5 No

Khutsong Water Tower (Chiawelo) 8 Yes

Khutsong Ext 5/6 Internal Water & Sewer Services (Phase 5)

2, 12 Yes

Upgr of Existing Bulk Water Line and Pump station (Kokosi Ext 6) 24 No

Rehabilitation of Merafong Bulk Supply Municipal Wide No

Adatta Pipeline 12 No

Fochville Reservoir 21 No

Sanitation/Sewerage

Sludge Drying Beds - Kokosi WWTW 14 Yes

Khutsong Ext 2 (Skopas) Collapsed Sewer Lines 7 No

Khutsong Nzwanzwa Street Outfall Sewer Pipeline Bypass 3 Yes

Onyx Street Bulk Sewer Pipeline Replacement 18 Yes

Greenspark Outfall Sewer 21, 24 No

Linkage of old Outfall Sewer Line and Manholes Kokosi Ext 7 24 No

Electricity

Khutsong South Extensions Electrification (Phase 6) 2 No

Kokosi Ext 99 Electrification 22 No

Kokosi Ext 6 Electrification 22 No

Housing

Khut Ext 5/6 - 500 Top Structures 2, 12 No

Refuse removal

Construction of Carletonville Waste Management Depot 28 Yes

Rehabilitation (Phase 2) Carletonville Landfill Site 13 Yes


Roads & Stormwater

Khutsong Roads and Stormwater (Phase 3) 7 No

Kokosi Roads and Stormwater (Phase 3) 24 No

Wedela Ext 3 Roads and Stormwater (Phase 3) 20 No

Kokosi Ext 6 Construction of Roads 22 No

Construction of Internal Roads & Stormwater (Kokosi Ext 6)

22 Yes

Economic development

Informal Trading Area (Phase 2 - Oberholzer) 18 No

Sports, Arts & Culture

Khutsong Multi-Purpose Community Centre 2 Yes

Environment

Health

Safety and Security

ICT and Other

T O

APPENDIX P – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS

Service Backlogs: Schools and Clinics

Establishments lacking basic services Water Sanitation Electricity Solid Waste Collection

Schools (NAMES, LOCATIONS)

NO SERVICE BACKLOGS

Clinics (NAMES, LOCATIONS)

NO SERVICE BACKLOGS

Names and locations of schools and clinics lacking one or more services. Use 'x' to mark lack of service at appropriate level for the number of people attending the school/clinic, allowing for the proper functioning of the establishment concerned.

T P


APPENDIX Q – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE

ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION

Service Backlogs Experienced by the Community where another Sphere of Government is the Service Provider (where the municipality whether or not act on agency basis)

Services and Locations Scale of backlogs Impact of backlogs

Clinics:

NO SERVICE BACKLOGS

Housing:

Licencing and Testing Centre:

Reservoir’s

Schools (Primary and High):

Sports Fields:

T Q

APPENDIX R – DECLARATION OF LOANS AND GRANTS MADE BY THE

MUNICIPALITY

All Organisation or Person in receipt

of Loans */Grants* provided by the

municipality

Nature of project Conditions attached to

funding

Value

Year 0

R' 000

Total Amount

committed over

previous and

future years

T R

Declaration of Loans and Grants made by the municipality: Year 0

* Loans/Grants - whether in cash or in kind


APPENDIX S – NATIONAL AND PROVINCIAL OUTCOMES FOR LOCAL GOVERNMENT

Outcome/Output Progress to date Number or

Percentage

Achieved

Output: Improving access to basic services

Output: Implementation of the Community Work

Programme

Output: Deepen democracy through a refined Ward

Committee model

Output: Administrative and financial capability

National and Provincial Outcomes for Local Government

* Note: Some of the outputs detailed on this table may have been reported elsewhere in the Annual Report. Kindly ensure that this information

consistent.

T S


VOLUME II: ANNUAL FINANCIAL STATEMENTS

Provide the Annual Financial Statements (AFS) to the respective financial year as submitted to the

Auditor-General. The completed AFS will be Volume II of the Annual Report.