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2018 /19 Draft Annual Report 


TSWELOPELE LOCAL 
MUNICIPALITY 





TSWELOPELE LOCAL MUNICIPALITY 


OUR MOTTO 

"A municipality in progress" 

OURVISION 

To be an accountable, transparent, non-racial Municipality that promotes economic development and 
provides sustainable services and improves the quality of life in the Community. 

OUR MISSION 

Tswelopele Local Municipality is committed to effective and transparentgovernance by: 

(a) Promoting economic development 

(b) Providing sustainable services, and 

(c) Improving the quality of life of all people 

VALUES 

- Democratic values 

- Good governance 

- Transparency 

- Honesty 

- Equity 

- Commitment 

- Accountability 

- Professionalism 


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CONTENTS 

1 CONTENTS.2 

2 MAYOR'S FOREWORD AND EXECUTIVE SUMMARY.6 

2.1 COMPONENT A: MAYOR'S FOREWORD.6 

2.2 MUNICIPAL MANAGER'S OVERVIEW.8 

3 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW.10 

3.1 BACKGROUND DATA.10 

3.2 DEMOGRAPHICPROFILE.10 

3.3 POPULATION BREAKDOWN PER WARD, AGE AND GENDER.12 

3.4 POPULATION PER MUNICIPAL AREA.12 

3.5 SOCIO ECONOMIC STATUS INDIVIDUAL MONTHLY INCOME.13 

3.6 EMPLOYMENT STATUS.13 

3.7 OVERVIEW OF NEIGHBOURING MUNICIPALITIES.13 

4 MUNICIPAL FUNCTIONS.14 


5 SERVICE DELIVERY OVERVIEW 


14 


5.1 

5.2 

5.3 

5.4 

5.5 

5.6 

defined. 


ELECTRICITY SERVICES. 

WATER SERVICES. 

SANITATION SERVICES. 

REFUSE REMOVAL AND WASTE MANAGEMENT. 

ROADS AND STORMWATER. 

SERVICE PROVIDERS PERFORMANCE FOR 2018/ 2029 FINANCIAL YEAR. 


.14 

.14 

.14 

.15 

.15 

Error! Bookmark not 


6 FINANCIAL HEALTH OVERVIEW.16 

6.1 ACTUAL VERSUS BUDGET (REVENUE AND EXPENDITURE).16 

6.2 expenditure.18 

7 ORGANISATIONAL DEVELOPMENT OVERVIEW.19 

7.1 ORGANISATIONAL DEVELOPMENT PERFORMANCE.19 

7.2 AUDITOR-GENERAL REPORT.19 

7.3 STATUTORY ANNUAL REPORT PROCESS.19 

8 GOVERNANCE.21 

8.1 POLITICAL GOVERNANCE.21 

9 POLITICAL STRUCTURE.22 

9.1 MAYOR.22 

9.2 SPEAKER.22 


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9.3 EXECUTIVE COMMITTEE.22 

9.4 POLITICAL DECISION-MAKING.24 

10 Other Council governance structures.24 

10.1 Performance Audit Committee.24 

10.2 Municipal Public Accounts Committee.24 

10.3 ADMINISTRATIVE GOVERNANCE.24 

10.4 INTERGOVERNMENTAL RELATIONS.25 

11 PUBLIC ACCOUNTABILITY AND PARTICIPATION.25 

11.1 PUBLIC MEETINGS.25 

11.2 IDP PARTICIPATION AND ALIGNMENT.26 

12 CORPORATE GOVERNANCE.26 

12.1 RISK MANAGEMENT.26 

12.2 ANTI-CORRUPTION AND FRAUD.27 

12.3 SUPPLY CHAIN MANAGEMENT.27 

12.4 BY-LAWS.27 

12.5 WEBSITE.28 

12.6 PUBLIC SATISFACTION ON MUNICIPAL SERVICES.30 

13 SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I).31 

14 BASIC SERVICES.31 

14.1 WATER PROVISION.31 

14.2 SANITATION PROVISION.33 

14.3 ELECTRICITY.34 

14.4 WASTE MANAGEMENT.34 

14.5 Human settlement.39 

14.6 BASIC SERVICES AND INDIGENT SUPPORT.41 

14.7 ROAD TRANSPORT.42 

14.8 PLANNING AND DEVELOPMEnt.43 

14.9 LOCAL ECONOMIC DEVELOPMENT and tourism.44 

15 COMMUNITY & SOCIAL SERVICES.45 

15.1 Municipal FACILITIes.45 

15.2 CEMETERIES AND CREMATORIUMS.47 

15.3 TRAFFIC MANAGEMENT.47 

15.4 DISASTER MANAGEMENT.47 

15.5 EXECUTIVE AND COUNCIL.48 

15.6 FINANCIAL SERVICE.49 


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15.7 HUMAN RESOURCE SERVICES.50 

15.8 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES.52 

15.9 RISK MANAGEMENT SERVICES.53 

16 annual performance report AS AT 30 JUNE 2019.54 

TLM NON-FINANCIAL PERFORMANCE REPORT (Q1JULY 2018 TO Q4 JUNE 2019) .55 

REPORTING PERIOD: AS AT 30 JUNE 2019 .55 

16.1 INTRODUCTION.55 

16.2 LEGISLATIVE REQUIREMENTS.56 

16.3 TLM STRATEGIC PERFORMANCE.56 

16.4 INSTITUTIONAL PERFORMANCE MANAGEMENT PROCESS OVERVIEW.57 

16.5 PERFORMANCE MANAGEMENT SYSTEM FOLLOWED FORTHE FINANCIAL YEAR 2018/19.57 

16.6 ORGANISATIONAL PERFORMANCE MANAGEMENT SYSTEM.59 

16.7 INDIVIDUAL PERFORMANCE MANAGEMENT.59 

16.8 SERVICE DELIVERY KEY MUNICIPAL PERFORMANCE FOR 2018/19 AND MEASURES TAKEN TO 

IMPROVE OVERALL MUNICIPAL PERFORMANCE.60 

16.9 SYNOPSIS OF MUNICIPAL PERFORMANCE RESULTS AT A STRATEGIC LEVEL.61 

16.10 PERFORMANCE DEFICIENCIES AND CORRECTIVE MEASURES PER DEPARTMENT.63 

CONCLUSION .70 

17 SERVICE PROVIDERS PERFORMANCE FOR 2018/ 2019 FINANCIAL YEAR.146 

18 ORGANISATIONAL DEVELOPMENT PERFORMANCE.149 

18.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES.149 

18.2 MANAGING THE MUNICIPAL WORKFORCE.151 

18.3 INJURIES, SICKNESS AND SUSPENSIONS.151 

18.4 PERFORMANCE REWARDS.153 

18.5 INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT.153 

18.6 SKILLS DEVELOPMENT AND TRAINING.154 

19 FINANCIAL PERFORMANCE.157 

19.1 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE.157 

19.2 GRANTS.159 

19.3 ASSET MANAGEMENT.160 

19.4 SOURCES OF FINANCE.160 

19.5 CASH FLOW MANAGEMENT AND INVESTMENTS.161 

19.6 OTHER FINANCIAL MATTERS.162 

19.7 SUPPLY CHAIN MANAGEMENT.162 

19.8 MUNICIPAL SERVICE CHARGES ASSESSMENT AND OUTSTANDING DEBTORS.164 


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Report on the audit of the financial statements .165 

20 ANNUAL FINANCIAL STATEMENT WITH THE ANNUAL AUDIT COMMITTEE REPORT 2017 / 2018 

FINANCIAL YEAR (Annexure A).177 

21 AUDIT RECOVERY PLAN.179 

22 GLOSSARY.199 

23 APPENDICES.201 

23.1 APPENDIX A - COMMITTEES AND COMMITTEE PURPOSES.201 

23.2 APPENDIX B - FUNCTIONS OF MUNICIPALITY.202 


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2 MAYOR'S FOREWORD AND EXECUTIVE SUMMARY 


2.1 COMPONENT A: MAYOR'S FOREWORD 


We are proud as the Tswelopele Local Municipality to 
acknowledge the collective efforts of the managementteam 
and our employees, service delivery partners, investors and 
all citizens to transform the municipality to be a better place 
forall. 

We remain committed to improving the quality of life of our 
people, addressing the legacy of the past inequalities and 
ensuring all citizens including those on the margins of society 
have access to opportunities to earn and contribute to the 
economy. The municipality entered into an agreement with all 
the contractors for major projects to ensure that at least 30% 
of the total projects is subcontracted to the local emerging 
contractors to promote self- sustainability and social 
inclusivity. 

We are not simply delivering services to our people but work 
as 'servants of the people', The council of the municipality 
through the offices ofthe speakerand the Mayor has embarked on public participation to encourage the community 
to participate in the affairs ofthe municipality and stay abreastofthe developmentin the respective areas. 

The municipality has developed an auditaction plan to address all the issues identified by the office of the Auditor 
General on the audit of 2018/ 2019 financial statement, performance information and compliance. This audit action 
plan will be monitored closely by management team and the council of the municipality to ensure effective 
implementation thereof. 

The municipality is also faced with a serious challenge of revenue collection due to non-payments of municipal 
services by consumers, We therefore would like to encourage our community to pay/ make payments arrangement 
for their municipal accounts and also encourage all the families falling under the threshold of indigents to come to 
the municipal offices with all relevantdocumentations to apply forfree basic services. 

At a Provincial level, we welcome the reviewed Provincial Growth and Development Strategy (PGDS) as the 
council, which guides us as a municipality, within a province that exists on the borders of different strategic 
municipalities. We have aligned our municipal priorities to that of the PGDS as well as the National development 
plan. As we develop and review our Integrated Development Plan (IDP), we are very aware of our roles and 
responsibility to our residents as well as to future generations. 



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We need to work together with all our stakeholders in our questto improve the quality of life and to achieve our 
vision of making Tswelopele the mostcaring and liveable local municipality in South Africa. The new dawn is upon 
us and this is a season of renewal, jobs and unity of our people. 

I would like to take this opportunity to acknowledge the efforts of the municipal leadership and its officials in 
advancing municipal strategic and transformative plan during the reporting year and to thank them for their 
readiness and perseverance in implementing the IDP objectives. 



CLLRTF MATSHOLO 
MAYOR 


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2.2 MUNICIPAL MANAGER'S OVERVIEW 


Itis with great pleasure thatl presentTswelopele Local Municipality's 2018/19 Annual Report. Through this report, 
we track our progress in terms of the goals we set in the municipal Integrated Development Plan, which in the long 

term will foster a physical and socio-economic environment that 
is liveable, sustainable and resilientfor all our citizens. 

Addressing historical challenges the municipality has prioritised 
implementation plans that will eradicate the historical 
challenges associated with poverty, unemployment and 
inequality; and address resource scarcity with respectto water, 
energy and land space in an environmentally sustainable 
manner. 

We developed implementation plans contained in the revised 
five-year Integrated Development Plan [IDP] and annual 
SDBIP, The IDP aims to develop a sustainable and resilient 
municipality by creating a sustainable environment, promoting 
the conservation of natural and scarce resources, and 
developing infrastructure to improve access to educational 
services, transport and employment. Currently, 95% of the 
community have access to the four basic services of water, 
electricity, sanitation, waste water and solid waste 
management. The municipality is currently in a process of 
servicing the new developments in both towns with water, 
sanitation and electricity services. 

This Municipality has adopted a zero tolerance stance to all forms of corruption, fraud and maladministration and 
has established numerous measures to prevent fraud and corruption in the city structures. These include the 
Municipal Public Accounts committee and Audit Committee. A new Disciplinary committee has also been formed to 
deterfraud and corruption 

The municipality is striving towards improved financial performance by embarking on a revenue enhancement 
strategy that will assistthe municipality going forward to improve financial viability. The municipality is faced with 
serious challenges of under revenue collection due to the consumers of municipal services not paying for the 
services rendered. Our municipality is grants reliant due to the above mentioned challenges. It is in this line we 
encourage our people to make payments arrangements on their accounts with the municipality. 

Our commitment to providing services to all our residents is achieved through our greatest assets: our employees 
working across various operational disciplines. The municipality aims to foster a high-performance attitude by 
attracting and retaining skilled and qualified people. The vision of delivering professional, diverse and competent 
human capital is achieved through our Human Resources Policies, which is implemented across the municipality. I 
would like to express my appreciation forthe support received from the political leadership in Council, the Mayor, 
and the Speaker, EXCO, MSA Section 80 Committees, Audit Committee, Performance Management Committee 



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and Municipal Public Accounts Committee. Administratively I would like to thank the Management team and the 
entire staff of the Municipality for their continued support. Collectively we remain committed to efficient service 
delivery and the attainment of a liveable, sustainable and resilient municipality. 



MS.MRE MOGOPODI 
MUNICIPAL MANAGER 


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3 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW 


3.1 BACKGROUND DATA 


Tswelopele Local Municipality falls in the Lejweleputswa district area which is situated in the central Free 
State about a 100 km north west of Bloemfontein. It consists of Bultfontein, Phahameng, Hoopstad and 
Tikwana and their surrounding rural areas. 

Tswelopele Local Municipality has a total population of 47 625 people, of which 91% are African Black, 
7% are White, with the other population groups making up the remaining 2%. The Municipality is 6 506, 
68 square kilometres in extentand with the surface area of 652 544,3 Ha. 

The municipal unemployment rate stands at 34, 8%. 14 868 people are economically active (employed or 
unemployed but looking for work), and of these 35% are unemployed. Of the 8145 economically active 
youth (15 - 34 years) in the area, 46% are unemployed. 

The municipal council consists of fifteen members elected by mixed-member proportional representation. 
Eight councillors are elected by voting in eightwards, while the remaining seven are chosen from party 
lists so thatthe total numberof party representatives is proportional to the numberofvotes received. 


3.2 DEMOGRAPHIC PROFILE 


All municipal demographic statistics as depicted by the different tables underneath relates to the census 
survey of 2011 that was conducted by the Statistics South Africa. The data is for statistical purpose only 
as it does not relate to the year reported herein. 


Tswelopele Municipality is 6 506 68 square kilometres in extent. The demographic profile of the 
municipality according to the most recent information available is shown in the table below: 


Description 

1996 - Stats 
SA 

2001 ■ Stats 
SA 

2007- Community 
Survey 

2011 ■ Stats 
SA 

2016 - Stats 
SA 

No. of households 

12 623 

12 624 

12 987 

11992 

13 705 

Average people 

4,40 

4,2 

8.18 

4 

3.5 

Total population 

58 858 

55 591 

53 713 

47 625 

47 373 


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The key statistics mentioned above as reflected in Census 2001 are shown to place the municipality's performance 
in the proper context. 

According to the graph below, the population number in the municipality appears to decline, recording a marginal 
decline of 1.2% over 2001 to 2011.The number of households has declined from 12 624 in 2001 to 11 992 in 2011. 
The number of households has declined from 12430 in 2001 to 11 992 in 2011 and increased to 13 705 in 2016 
community survey 


Figure 1: Distribution of population by sex: Tswelopele LM, 1996, 2001 and 2011 


Populationby sex: Tswelopele LM, 199o, 2001 and 2011 
60000 
50000 
t. 40000 
| 30000 
2 20000 



Male 

Feinale 

Total 

■ 19% 

24926 

26722 

51647 

■ 2001 

25867 

27845 

53713 

■ 2011 

22864 

24761 

47626 



Source: Statistics SA, Census, 1996, 2001 and 2011 

This graph shows that the population in terms of males increased by 3.8% from 1996 to 2001 and showed a 
decrease of 11.6% in 2011 the reasons forthis decrease should investigated as they mighthave negative impact 
on the local economic development of the area. The population in terms of females showed an increase of 4.2% 
from 1996 to 2001 and showed a decrease of 11% which is more or less the same decrease of the males in 2011. 
The reasons forthis decrease must be investigated. 

The 2016 community survey shows a slight decrease in the total population of men as compared to 2011 sensors 
count from 22 864 to 22 858 which is a decrease of 6 men. The reasons to this slight decrease are not know and 
mightbe investigated, 

The 2016 community survey also shows a slight decrease in the total population of women as compared to 2011 
sensors count from 24 761 to 22 515 which is a decrease of 6 women. The reasons to this slight decrease are not 
know and mightbe investigated. 


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3.3 POPULATION BREAKDOWN PER WARD, AGE AND GENDER 


Figure 3: Distribution of population by sex: Tswelopele LM, 1996, 2001 and 2011 


Distribution of population by ward: Tswelopele LM, 1996,2001 

and2011 


18000 




1996 

2001 

2011 

1996 

2001 

2011 

1996 

2001 

2011 



Total 



Male 



Feniale 


■ Ward 1 

4138 

5122 

4974 

1860 

2409 

2285 

2278 

2713 

2689 

■ Waid2 

6755 

5249 

4700 

3117 

2314 

2162 

3639 

2935 

2538 

■ Waid 3 

7057 

6830 

6321 

3337 

3224 

2901 

3720 

3606 

3420 

■ Ward 4 

280S 

5101 

7453 

1379 

2401 

3509 

1429 

2699 

3943 

■ Ward 5 

15745 

17011 

7287 

7890 

8613 

3871 

7855 

8398 

3416 

■ Waid6 

4380 

5980 

5739 

2041 

2822 

2734 

2339 

3158 

3005 

■ Waid 7 

5597 

4647 

5492 

2624 

2164 

2566 

2974 

2483 

2926 

■ WaidS 

5167 

3773 

5660 

2678 

1920 

2837 

2488 

1853 

2824 


Analysis are made in terms of population per ward and that the most popular ward and which shows high 
population vacillations is ward 5, as perthe above table the ward had a population of 15 745 people in 1996 and 
increased to 17 011 people in 2001, the statistics showed an enormous to 7 287 people in 2011 and this is due to 
the demarcation processes that took out extension 7 & 8 and the ward thereafter consisted of the farms only. As a 
result of demarcation processes undertaken every 5 years the municipality cannot make a clear analysis of 
population vacillations per ward to the local economic development abroad. 


3.4 POPULATION PER MUNICIPAL AREA 


Population Group 

Sanded 

Hoopstad 

Tikwana 

Tswelopele NU 

Bultfontein 

Phahameng 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Black African 

9 

3 

237 

144 

6744 

7605 

3711 

3189 

420 

420 

9615 

11355 

Coloured 



12 

12 

156 

144 

90 

57 

3 

6 

39 

57 

Indian or Asian 



12 

6 

39 

3 


3 

15 

3 

78 

18 

White 



405 

450 

9 

15 

609 

537 

567 

702 

6 

3 

Other 



15 

9 

21 

3 

15 

6 

27 

15 

15 



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Sub-total 

9 

3 

681 

621 

6969 7770 

4425 

3792 

1032 

1146 

9753 

11433 

Total 

12 

1302 

14739 

8217 

2178 

21186 

Statistics South Africa: Census 2011 








3.5 SOCIO ECONOMIC STATUS INDIVIDUAL MONTHLY INCOME 


Ward 

R 1 
800 

R R 801 - R 

3 200 

R 3 201 - R 
12 800 

R 12 801 - R 
51200 

R 51 201 - R 
204 800 

R 204 801 or 

more 

No 

income 

Unspec ified 

Not 

applicable 

Wardl 

1923 

813 

105 

30 

3 


2016 

81 


Ward 2 

1653 

747 

147 

21 


3 

2067 

66 


Ward 3 

2121 

1335 

282 

36 

3 


2430 

111 


Ward 4 

2424 

1263 

528 

159 

15 

3 

2643 

300 

117 

Ward 5 

1842 

2361 

216 

99 

36 

12 

2268 

423 

30 

Ward 6 

2028 

921 

123 

24 

6 


2460 

177 


Ward 7 

1638 

1098 

267 

57 



2238 

189 


Ward 8 

1572 

978 

363 

135 

18 

15 

1845 

351 

378 


Statistics South Africa: Census 2011 


3.6 EMPLOYMENT STATUS 


Ward 

Employed 

Unemployed 

Discouraged work- 
seeker 

Other noteconomically 
active 

Age less than 15 
years 

Notapplicable 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Wardl 

369 

282 

252 

450 

192 

252 

435 

639 



1038 

1068 

Ward 2 

318 

249 

348 

384 

138 

216 

438 

624 



918 

1068 

Ward 3 

480 

393 

330 

405 

66 

141 

792 

1131 



1233 

1347 

Ward 4 

948 

513 

450 

696 

102 

213 

564 

864 



1446 

1659 

Ward 5 

2130 

849 

75 

192 

18 

150 

387 

1080 



1260 

1140 

Ward 6 

519 

324 

204 

291 

120 

186 

798 

1017 



1095 

1185 

Ward 7 

543 

441 

246 

330 

171 

243 

603 

831 



1005 

1086 

Ward 8 

882 

453 

204 

315 

57 

99 

651 

870 



1044 

1083 


Statistics South Africa: Census 2011 


3.7 OVERVIEW OF NEIGHBOURING MUNICIPALITIES 


Local Munic ipality 

Black African 

Coloured 

Indian orAsian 

White 

Other 

Grand Total 


M ale 

Female 

Male 

Female 

Male 

Female 

Male 

Female 

Male 

Female 


Masilonyana 

29250 

28764 

402 

324 

174 

33 

2004 

2211 

129 

39 

63330 

Tokologo 

12135 

12348 

660 

666 

174 

21 

1380 

1503 

63 

36 

28986 

Tswelopele 

20733 

22719 

303 

273 

141 

30 

1596 

1704 

93 

33 

47625 

Matjhabeng 

176805 

179544 

4251 

4482 

1002 

453 

18915 

20217 

534 

255 

406458 

Nala 

36078 

39573 

237 

264 

162 

45 

2250 

2424 

138 

45 

81216 


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627615 


Grand Total 

275001 

282948 

5853 6009 

1653 582 

26145 

28059 

957 

408 


Statistics South Africa: Census 2011 


4 MUNICIPAL FUNCTIONS 


Tswelopele Local Municipality is dedicated to the provision of sustainable quality services to its residents. The 
municipality is responsible forthe provision of basic services and constitutionally mandated to perform in terms of 
Schedule 4 (PartB) and Schedule 5 (PartB) ofthe Constitution of Republic ofSouth Africa, 1996 


5 SERVICE DELIVERY OVERVIEW 


The municipality continued to ensure the sustainable provision of services to the community. Public members who 
have registered in the indigent register also continued to benefit from municipal services. Tswelopele had also 
experienced an increase in the number of households receiving subsidies from the municipality, as reflected by 
statistics. This can be attributed directly to the economic downturn in the area as most people are unemployed. 


5.1 ELECTRICITY SERVICES 


The municipality provides electricity in the towns. Applications for new connections in town are also done by the 
municipality while Eskom provides electricity in the townships. Each registered indigent household receives 50kW 
of electricity per month. The municipality has secured funds for electrification of new developments in Bultfontein 
and in the process of electrifying new developments in Hoopstad. 


5.2 WATER SERVICES 


The municipality provides waterto all formalised households in the residential areas. The municipality is currently 
facing challenges of water being wasted through leaking of toilets as residents normally do notfix leaking toilets. 
Due to the high demand for water, the municipality is interrupting the supply of water at specific intervals to 
increase the levels of the reservoirs in orderto provide waterto all households. The municipality has through the 
assistance of the district municipality embarked on campaigns to fix toilets and to educate the community on saving 
water. There is an ongoing bulk water supply project funded by the department of water affairs intended to increase 
the bulk water supply and ensure continuous and sustainable water services to the community. 


5.3 SANITATION SERVICES 


The municipality is committed to a clean environment and provision of sanitation services to all the household in 
line the RDP standards. Formalised households have got access to sanitation services in both towns and the 
municipality is also focusing on servicing the new developments in both towns. 499 sites are in the process of the 
connected to the sewerage network and toilets top structures have been constructed for all the 499 sites. The 
municipality has also managed to secure funds for connection and building of pump station for Extension 7, 8 and 9 
in Bultfontein. This project will be implemented in the 2019/2020 financial yearand has been budgeted R7 million. 


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5.4 REFUSE REMOVAL AND WASTE MANAGEMENT 


The municipality collects refuse from all the formalised households in both towns and townships on a weekly basis. 
Refuse is all also collected in the CBD streets of both towns on daily basis to ensure clean town and also to attract 
investments and tourism in our towns. The municipality has managed with limited resources to clean the illegal 
dumps in both townships and towns, clean the parks, stadiums, cemeteries and open spaces on regular basis in 
orderto promote clean environment. 

The municipality has two landfill sites (one each town) and have been licensed. The management of the landfill 
sites is currently a challenge due to lack of funding to procure necessary equipment, proper fencing and access 
controls to both the landfill sites. The municipality is currently promoting recycling with the intention to reduce the 
waste in the landfill sites and extension of thereof. The municipality due to shortage of staff in different areas 
including the waste management unit does not sufficient personnel to control disposal of waste and management of 
landfill sites. 


5.5 ROADS AND STORMWATER 


The municipality is with the assistance of Municipal Infrastructure Grant management managed to complete the 
construction of a 2 kilometre road in Phahameng and as at 30 J une 2019 the municipality continued to construct 
another 1.3 kilometre road extending from the 2 kilometre mentioned above. The state of road infrastructure in the 
municipal areas has deteriorated due to aging infrastructure and heavy traffic i.e. trucks and construction vehicles 
moving in and out of our towns. The municipality is maintaining the tarred roads by fixing the potholes internally and 
is in the processes of regulating the heavy vehicles in both tows to minimize more damage to the roads. 

The newly developed townships status of roads is still in the unfavourable level and the municipality is struggling to 
gravel this streets due to regular breakdown of the municipal yellow fleet used for gravelling of streets in both 
towns. The municipality has included in the integrated development planning the paving of all streets in both 
townships with the intention to source funding from sector department for this purpose. Procurement of new yellow 
fleet is also a priority for the municipality to improve service delivery. 



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INANCIAL HEALTH OVERVIEW 


6 F 


6.1 ACTUAL VERSUS BUDGET (REVENUE AND EXPENDITURE) 


Descriptions 

2018/ 2019 

2018/ 2019 

2018/ 2019 

2018/ 2019 


Final Budget 

Actual 

Variance 

Variance 


R 

R 

R 

% 

REVENUE 

Property Rates 

13 086 000 

22 293 212 

9 207 212 

170% 

Service Charges - electricity revenue 

39 415 000 

39 448 356 

3 033 356 

108% 

Service charges - water revenue 

8 677 000 

5 517 143 

(3 159 857) 

64% 

Service Charges - Sanitation 

revenue 

7 055 000 

5 132 191 

(1922 809) 

73% 

Service Charges - Refuse revenue 

4 467 000 

3 357 307 

(1 109 693) 

75% 

Rental of Facilities and equipment 

647 000 

920 542 

273 542 

142% 

Interest earned - external 

investments 

690 000 

1 744 763 

1 054 763 

253% 

Interest earned - Outstanding 

debtors 

200 000 

870 236 

670 236 

435% 

Dividends Received 

40 000 

58 441 

18 441 

146% 

Fines, penalties and forfeits 

40 000 

331400 

291400 

829% 


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Licences and permits 

80 000 

24 229 

(55 771) 

30% 

Transfers and subsidies 

70 935 000 

80 214 

9 279 305 

113% 

Other revenue 

2 757 000 

7 987 059 

5 230 059 

290% 

TOTAL REVENUE 

145 089 000 

167 899 184 

22 810 184 

116% 

EXPENDITURE 

Employee related costs 

63 877 000 

62 927 032 

949 968 

99% 

Remuneration of councillors 

6 563 000 

5 522 232 

(1 040 768) 

84% 

Debt impairment 

6 100 000 

21 210 707 

15 110 707 

348% 

Depreciation and asset impairment 

26 000 000 

24 288 676 

(1711 324) 

93% 

Finance charges 

2 958 000 

6 468 292 

3 510 292 

219% 

Bulk purchases 

32 895 000 

38 631 963 

5 736 963 

117% 

Other materials 

7 310 000 

7 943 457 

633 457 

109% 

Other expenditure 

33 630 000 

18 773 829 

(14 856 171) 

56% 

TOTAL EXPENDITURE 

793 333 000 

185 766 188 

6 433 188 

104% 

SURPLUS/ (DEFICIT) FOR THE YEAR 

(34 244 000) 

(17 867 004) 

16 376 996 

52% 


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6.2 EXPENDITURE 


Figures in Rand 

Note(s) 

2019 

2018 

Restated* 

Expenditure 

Employee related costs 

31 

(62 927 302) 

(60 150 599) 

Remuneration of councillors 

32 

(5 522 232) 

(5 335 771) 

Depreciation and amortisation 

33 

(24 288 482) 

(23 863 390) 

Impairment loss 

34 

(141146) 

(2 291 990) 

Finance costs 

35 

(6 468 292) 

(7 812 659) 

Lease rentals on operating lease 


(356 021) 

(97 423) 

Debt Impairment 

36 

(21 210 707) 

(5 122 619) 

Bulk purchases 

37 

(38 631 963) 

(36 437 704) 

Contracted services 

38 

(4 077 494) 

(5 269 996) 

Actuarial Services 

7 

- 

(1 039 842) 

General expenditure 

39 

(22 142 549) 

(24 123 521) 

Total expenditure 


(185 766 188) 

(171 545 514) 


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7 ORGANISATIONAL DEVELOPMENT OVERVIEW 


7.1 ORGANISATIONAL DEVELOPMENT PERFORMANCE 


The role of corporate services department within the institution is to provide administrative, legal and human 
resource managementfunction to the Council, EXC0, the Municipal Managerand otheremployees ofCouncil. The 
department also deals with issues such as training, recruitmentand skills developmentof employees. 

The positions of the municipal manager, chief financial officerand the director technical services have been filled, 
the post of the director corporate services is under sub-J udy care and feedback will be provided once the matter 
has been finalized. There are key vacant positions and the municipality is in the process of filling the key vacant 
positions. The municipality has appointed 2 PMU technicians in order to improve basic service delivery and 
infrastructure developmentin the municipality. 

Employees and councillors participated in different learning programmes and interventions during the 2018 /19 
financial year in terms of the Workplace Skills Plan submitted to LGSETA. Graduates and experiential learners 
received training in various fields (on the job training). 


7.2 AUDITOR-GENERAL REPORT 


The municipality has in the 2018/ 2019 financial year regressed in terms of the audit of financial statements due to 
the challenges faced by the municipality with regards to key vacant positions, accuracy and completeness of the 
asset register. The municipality has developed an auditaction plan to this effectto address all the issues identified 
by the office of the Auditor General on the audit of financial statement, performance information and compliance. 
This auditaction plan will be monitored closely by managementteam and the council ofthe municipality to ensure 
effective implementation thereof. The implementation of the audit action plan is a priority by management and 
standing item to both the Auditcommittee and Municipal Public Accounts Committee. 


7.3 STATUTORY ANNUAL REPORT PROCESS 


No 

Activity 

Timeframe 

1 

Consideration of next financial year's Budgetand IDP process plan. Exceptfor 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 atthe end ofthe Budget/IDP implementation period. 

July 

2 

Implementation and monitoring of approved Budgetand IDP commences (In-yearfinancial reporting). 

3 

Finalise 4 th quarter Report for previous financial year 


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Submitthe 4 th quarter Reportto council for noting 


4 

Submit draft 18/19 Annual Reportto Internal Auditfor review. 

August 

5 

Audit/Performance committee considers draft Annual Reportof municipality. 

7 

Municipality submits draft Annual Report including consolidated annual financial statements and 
performance reportto Auditor General. 

9 

Auditor General assesses draft Annual Report including consolidated Annual Financial Statements 
and Performance data 

September 

October 

10 

Municipalities receive and startto address the Auditor General's comments 

J anuary 

11 

Mayor tables Annual Report and audited Financial Statements to Council complete with the Auditor- 
General's Report 

12 

Audited Annual Reportis made public and representation is invited 

February 

13 

Oversight Committee assesses Annual Report 

14 

Council adopts Oversight report 

March 

15 

Oversight report is made public 

16 

Oversight report is submitted to relevant provincial councils 

17 

Commencement of draft Budget/ IDP finalization for next financial year. Annual Report and Oversight 
Reports to be used as input. 

March 



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8 GOVERNANCE 


8.1 POLITICAL GOVERNANCE 


INTRODUCTION TO POLITICAL GOVERNANCE 

The mayor is the key figure in the municipality in terms of section 52 of the Municipal Finance Management Act, 
2003, [Act 56 of 2003]. Mayor is the chairperson of the Executive Committee [EXCO] that is responsible for 
receiving reports from various Section 80 Committees of Council and makes recommendations to Council as 
determined by Section 49 ofthe Municipal Structures Act, Act 117 of 1998]. 

The speaker is the chairperson of Council and performs function as stipulated in section 37 of the Municipal 
Structures Act, 1998, [Act 117 of 1998]. The mayor's duties and functions include any ceremonial functions, and 
exercise powers delegated to the Mayor by Council or the Executive Committee. The speaker ensures that the 
council meets at leastquarterly, ensuring compliance in the council and Council Committees with code ofconduct. 

The Audit Committee consists of four members and met as scheduled, four times per annum in terms of its 
approved terms of reference; however there were other special audit committee meetings conducted. The Audit 
Committee has reviewed and discussed with the Accounting Officer the Audited Financial Statements to be 
included in the annual report, reviewed the accounting policies and practices. 



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9 POLITICAL STRUCTURE 


9.1 MAYOR 


The Mayor presides at the meetings of the Executive Committee. The Mayor performs duties and functions 
including any ceremonial functions, and exercise powers delegated to the Mayor by Council or the Executive 
Committee. 


9.2 SPEAKER 


Presides at Council meetings and performs duties and exercises powers delegated to the Speaker in terms of 
section 59 of Local Government: Municipal Systems Act, 2000 [Act 32 of 2000]. Furthermore the Speaker has the 
following functions: 

> To ensure thatthe council meets at least quarterly 

> To maintain order during council meetings 

> To ensure compliance in the council and council committees with the Code of Conduct 

> To ensure thatcouncil meetings are conducted in accordance with rules and orders ofthe Council. 


9.3 EXECUTIVE COMMITTEE 


The executive committee of the municipality consisted of the following councillors during the year under review: 


• Mayor; 

• ChiefWhip ofthe ruling party; and 

• One councillorofthe opposition. 


Tswelopele Local Municipality is a collective executive committee system and itconsists ofthe council, which is the 
highest decision making body and it meets quarterly with the Executive Committee meeting once in every month. 


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Below is the names of councillors and constituencies: 


WARD COUNCILLORS 


WARD 

WARD COUNCILLORS 

Wardl 

Bangani Petrus Eseu 

Ward 2 

Magojenyane Henry Segopolo 

Ward 3 

Mzonjani Johannes Mgciya 

Ward 4 

Molahlehi Andries Monei 

Ward 5 

Motshabinyana Welhemina 
Raseu 

Ward 6 

Moeketsi Brudiwicks 

Mohlabakoe 

Ward 7 

Teboho Thomas Taedi 

Ward 8 

Mzonakele Simon Baleni 


PR COUNCILLORS 


PR, COUNCILLORS 


Frans Tankiso Matsholo 


Dilahloane Agnes Njodina 


Matebalo Suzan Bonokwane 


Moshe Moses Snyer 


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Charles Horn 


Elizabeth Catharina J oubert 


Teboho Alec Soaisa 


9.4 POLITICAL DECISION-MAKING 


The Council of the Tswelopele Local Municipality is the highestdecision-making authority in the institution. Itguides 
and instructs the administrative component, which implements the decisions taken by the political component 
through resolution implementation process. The council resolution execution register is kept and maintained by the 
Office of the Municipal Manager, in order to track the implementation of all resolutions taken at different 
committees. 


10 OTHER COUNCIL GOVERNANCE STRUCTURES 


10.1 PERFORMANCE AUDIT COMMITTEE 


The Municipality has a functional Performance Audit Committee in place, guided by an Audit Committee Charter. 
The members of the committee are all external individuals and advise council on matters relating to governance 
and compliance issues quarterly. 


10.2 MUNICIPAL PUBLIC ACCOUNTS COMMITTEE 


The municipal council has appointed Municipal Public AccountCommittee to handle matters of oversightand other 
municipal operations. Forthe period reporting, the committee conducted MPAC meetings to scrutinise and advice 
councii on the annual report, public hearings were also scheduled and successfully attended by the community 
members in both towns of Hoopstad and Bultfontein. 


10.3 ADMINISTRATIVE GOVERNANCE 


The municipal manager is the head of the administration and accounting officer of the institution. The political 
leadership through the mayor and the administration through the municipal manager complement each other in 
implementing council resolutions and other municipal programmes thatare promoting good governance and public 
participation. 


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10.4 INTERGOVERNMENTAL RELATIONS 


Intergovernmental relations are intended to promote and facilitate cooperative decision making and to ensure that 
policies and activities across all spheres of governmentencourage service delivery and meetthe needs ofcitizens 
in an effective way also to assist in curbing the duplication of various resources. 


11 PUBUC ACCOUNTABIUTY AND PARTICIPATION 


OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION 

The objective is achieved by holding public meetings, ward meetings, communication with and through non- 
governmental organisations and with the use of Community Development Workers. Political leaders of parties 
represented in council also give feedback to the community through meetings of those structures and the municipal 
website which is updated on the regular basis. 


11.1 PUBUC MEETINGS 


COMMUNICATION, PARTICIPATION AND FORUMS 

The following mechanisms are used as tools to ensure public participation and communication with the 
community of Tswelopele: loud-hailers, ward councillor's meeting, Community Development Workers and ward 
committees hold their sectional meetings in their respective wards to enhance public participation. 

The IDP and budget consultative meetings are held, as stipulated by law, through different forums and they are 
inclusive of steering committee, stakeholder's forum, sectional meetings, ward and mass meetings. All these 
meetings are held on scheduled dates and communicated to the public through local newspapers or municipal 
notice boards as prescribed by law. The efficiency and effectiveness of these forums is improved through taking 
members to workshop that provide them with relevantskills. 


The municipality is committed to public engagementand participation in planning and decision-making processes. 
In this regard, it has established a broad spectrum of engagement and consultation programmes and platforms 
aimed atthe various communities. 

Ward committees have a crucial role ofensuring thatcommunity needs are reported to the municipality through the 
Office of the Speaker. The municipality is in full support of all ward committees and to sustain their existence as 
they serve as a point of contact between the municipality and the residents. 


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11.2 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 perthe 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 


12 CORPORATEGOVERNANCE 


12.1 RISK MANAGEMENT 


The Municipality have an approved risk management policy which outlines the municipality's commitment to 
managing risks events which mightimpacton the achievementof ourobjectives. Furthermore the Municipality have 
an approved risks management strategy which details our plan of action on how to effectively implement the risk 
management policy in day to day activities. 

In executing the risk management strategy risk assessments were conducted and the risk register was compiled 
accordingly. Furthermore the risk response plans to further mitigate the risks were documented and monitored 
regularly to ensure that risks owners are effectively managing risks in their respective areas of work. 

The Municipality had a functional Risk management Committee chaired by an independent person. The Committee 
which provide oversighton risk management activities. This committee have meton quarterly basis as scheduled. 

The charter for the combined committee have been amended with the responsibilities of the committee on aspects 
of risk managementclause. 


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12.2 ANTI-CORRUPTION AND FRAUD 


To promote zero tolerance environment to fraudulent and corrupt activities, the Municipality Fraud and Corruption 
Policy and Fraud and Corruption Prevention Plan were approved by council for 2018/19 financial period which were 
also communicated to all officials. 

The Audit, performance and risk committee members' have also signed disclosure of interest forms to ensure that 
there won't be conflict of interest. 


12.3 SUPPLY CHAIN MANAGEMENT 


SUPPLY CHAIN MANAGEMENT UNIT 

The Supply Chain Management unit operates under direct supervision of the CFO. The Manager: SCM & 

expenditure reports to the CFO. 

The SCM regulations stipulate the following: 

a) SCM regulation 6(2) (a) (i) - thatthe council of a municipality must maintain oversight over the implementation 
of its SCM policy. For the purpose of such oversight the accounting officer mustwithin 30 days of each 
financial yearsubmita reporton the implementation ofthe SCM policy ofthe municipality to the Council. 

b) SCM regulation 6(2) (3) - the Accounting Officer shall within 10 days after the end of each quarter submit 
implementation reports on SCM to the mayor. 


Adoption of SCM Policy 

The SCM policy has been adopted by council, the management reports to council on quarterly basis on the 
implementation ofthe SCM policy as required bythe regulations. 


12.4 BY-LAWS 


A by-law is a law that is passed by the council of a municipality to regulate the affairs and the services it provides 
within its area of jurisdiction. 

As people have a right and duty to participate in government and civil society, public participation conducted 
included holding community meetings, joining civil and / or political organisations, public hearings and public 
consultation meetings. 

All by-laws are enforced by way of policies or municipal courts and notices in Provincial Gazette. Public hearings 
are held in all the towns falling under the jurisdiction of our Municipality. The inputs of the community are 


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incorporated into the document, after completion of this process; the by-laws were been promulgated in the 
Provincial Gazette to have an effectofthe law. 


12.5 WEBSITE 


Documents published on the Municipality's Website 

Yes / No 

Current annual and adjustments budgets and all budget-related documents 

Yes 

All current budget-related policies 

Yes 

The previous annual reports 

Yes 

The annual report (2018 / 19) published 

Yes 

All current performance agreements required in terms of section 57(l)(b) of the Municipal Systems Act 
(2013 / 14) and resulting scorecards 

Yes 

All service delivery agreements 

Yes 

All long-term borrowing contracts 

N/A 

All supply chain management contracts above a prescribed value 

Yes 

An information statement containing a list of assets over a prescribed value that have been disposed of in 
terms of section 14 (2) or (4) during Year 1 

Yes 

Contracts agreed in to which subsection (1) of section 33 apply, subject to subsection (3) of that section 

Yes 

Public-private partnership agreements referred to in section 120 

N/A 

All quarterly reports tabled in the council in terms of section 52 (d) during the year (The municipality also 
placed the section 72 reports-Mid Year Assessment) 

Yes 


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MUNICIPAL WEBSITE CONTENT AND ACCESS 

The municipal website has been updated with recent municipal information as guided by section 75 ofthe MFMA. 

All the information relating to quotations, procurement advertisement is uploaded through Corporate Services 
department by the office of Information Technology. The IT division has also developed a procedure to be 
followed when uploading information: - 

- Users complete a form when requesting the information to be uploaded 

- Head of Corporate services authorises the form and acknowledges the information to be uploaded 

- The information is then forwarded to the IT office in a soft copy format 

- Thereafter the IT Officer will login as the administratorand upload the information on the website 

- Upon successful uploading of information, itshould be accessible within five minutes. 


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12.6 PUBLIC SATISFACTION ON MUNICIPAL SERVICES 


The municipality did not conduct any public satisfaction surveys on municipal services for the period under review. 
The office of the Speaker is intending to conduct community satisfactory survey for 2018/19 performance of the 
municipality and the reportfrom the survey will publicised once finalized and approved by council. 

The municipality has a manual complaints and complements registers used by the community members for any 
complaints and compliments with regard to the services provided by the municipality in both Hoopstad and 
Bultfontein. The register is monitored by the senior management to ensure that all the issues raised by the 
community in the register have been addressed. 

The municipality is working with departmentof cooperative governance and traditional affairs in the province forthe 
municipality to startusing the electronic complaints managementsystem hosted by the department. 


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13 SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I) 


The municipality is committed to quality service delivery for residents of Tswelopele and to the extension of basic 
services to those who were previously denied access. 

These sections of the report put focus on the service delivery related areas of the municipality, including 
performance highlights as they prevailed forthe period reported herein. 


14 BASIC SERVICES 


14.1 WATER PROVISION 


The municipal strategic approach to the provision of water services is contained in the Water Services 
DevelopmentPlan (WSDP) thathas been developed and approved by the council. The municipality will continue to 
curb the water losses that is being experienced and unaccounted. Strict measures will be enforced to deal with 
water wastage. 


The table below shows the level of distribition of water in cubic meters to various sectors and households in the 
municipality and also provide the water losses for the financial year under review. 


Total Use of Water by Sector (cubic meters) 

Year Agriculture Forestry 

Industrial 

Domestic 

Unaccountable 
water losses 

2015/16 

N/A 

N/A 

577 264 

2 051 410 

892 367 

2016/17 

N/A 

N/A 

417172 

1 850 057 

339 101 

2017/18 

N/A 

N/A 

425 180 

1 910 000 

343 000 

2018/19 

N/A 

N/A 

529 908 

2 171721 

610 299 


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Description 

2016/ 2017 

2017/ 2018 

2018/ 2019 

Actual 

Actual 

Actual 





Water: (above min level) 




Piped water inside dwelling 

3820 

3820 

3820 

Piped water inside yard (but not in dwelling) 

8172 

8172 

8172 

Using public tap (within 200m from dwelling ) 




Other water supply (within 200m) 




Minimum Service Level and Above sub-total 

11992 

12523 

12523 

Minimum Service Level and Above Percentage 

100% 

91% 

91% 

Water: (below min level) 




Using public tap (morethan 200m from dwelling) 




Other water supply (more than 200m from dwelling 

NA 

NA 

NA 

No watersupply 




Below Minimum Service Level sub-total 

0 

0 

0 

Below Minimum Service Level Percentage 

0% 

0% 

0% 

Total number of households* 

11992 

12523 

12523 


The table above shows that 12523 households in the municipality have access to piped water services, there is total number of 
1182 households thathave below RDP standards basic services which are the new developments. The municipality has made 
an application forfunding to service the new development in both towns. Currently the municipality has a committed funding 
from MIG to service the 499 sites (new development) in Tikwana for the 2018/ 2019 financial year and the project is in 
progress. 


Description 

2016/2017 

2017/ 2018 

2018/2019 


Original 


Actual Adjusted 

Original 


No. 

No. 

No. 

12523 

1182 

Total households 

11992 

12523 

12523 

- 

Households below minimum service 
level 

0 


1182 


Proportion of households below 
minimum service level 

0 


0 

" 

0 

Total households 

- 


- 

- 

Households below minimum service 
level 

0 


0 


Proportion of households below 
minimum service level 

0 


0 




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14.2 SANITATION PROVISION 


The municipality is committed to a clean environment and provision of sanitation services to all the 
household in line the RDP standards. Formalised households have gotaccess to sanitation services in 
both towns and the municipality is also focusing on servicing the new developments in both towns. 499 
sites are in the process of the connected to the sewerage network and toilets top structures have been 
constructed for all the 499 sites. The municipality has also managed to secure funds for connection and 
building of pump station for Extension 7, 8 and 9 in Bultfontein. This project will be implemented in the 
2019/ 2020 financial year and has been budgeted R7 million. 

The municipality is anticipating to continue with phase 3 in the 2019/ 2020 for the upgrading of bulk 
water supply in Bultfontein to assist in improving the quality and sustainable water supply and curb the 
water losses. The municipality has reported an average of 18% of water losses for the financial year 
under review. 


Description 2015/16 

2016/17 

2017/18 

2018/19 

Actual 

Actual 

Actual 



No. 

No. 

No. 

No 

Sanitation/seweraqe: (above minimum level) 





Flush toilet (connected to sewerage) 

11138 

11138 

12523 

12523 

Flush toilet (with septic tank) 

17 

17 

17 

17 

Chemical toilet 

0 

0 

0 

0 

Pit toilet (ventilated) 

0 

0 

0 

0 

Other toilet provisions (above minimum. Service level) 





Minimum Service Level and Above sub- 

total 

11155 

11155 

12523 

12523 

Minimum Service Level and Above 

Percentage 

100% 

100% 

91% 

91% 

Sanitation/seweraqe: (below minimum level) 





Bucket toilet 

0 

0 

0 

0 

Other toilet provisions (below min.service level) 

837 

837 

1182 

1182 

No toilet provisions 

0 

0 

0 

0 

Below Minimum Service Level sub-total 

837 

837 

1182 

1182 

Below Minimum Service Level Percentage 




Total households 

11992 

11992 

13705 

13705 


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14.3 ELECTRICITY 

The basic level of access to electricity is defined as including connection of the household to the grid and basic 
level of service includes 10 AMP connection. Electricity generation and transmission is the sole responsibility of 
ESKOM. The municipality has been licensed by NERSA for distribution only. The municipality has electrified 499 
sites in a new development in Tikwana Hoopstad and sourcing funding to electrify extension 9 in Phahameng. 
The municipality has secured funding for electrifying extension 10 in Phahameng Bultfontein. 

14.4 WASTE MANAGEMENT 


The followinq activities should be noted as hiqhliqhts in 2018/19 financial vear under the manaqement of waste. 

• Fence was erected atthe Hoopstad landfill site. 

• The Hoopstad landfill site started reporting on the National waste information System during the financial 
year in question as required by law. 

• Project workers were recruited to provide assistance in the waste related activities to ensure provision of 
uninterrupted service to communities ofTswelopele. 

• In line with the National Domestic Waste Collection Standards, the municipality ensured that each 
household within the formalised residential areas received waste collection atleastonce a week in both 
towns. The waste collection service has been extended to new townships in Tikwana (499). 

• The municipality has two operational landfill sites, one in each town. 

• Both (Bultfontein and Hoopstad) Landfill sites have been licensed; 

• Waste management By-Laws have been approved by council and gazetted; 

• The Integrated Waste ManagementPlan was reviewed internally and approved bythe council; 

• The cleaning of streets is done daily in the two towns. 

• 5 environmental awareness campaigns were held for community members. 

• Municipality is assisting local waste pickers to encourage recycling. 


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Refuse collection in Phahameng - household waste being loaded on a tractor 


Street cleaning in Hoopstad. 


35 | Page 










Awareness raising for scholars in Phahameng about waste and environmental management. 


The following challenges were encountered by the municipality. 


• Vandalism of parameterfence atthe Hoopstad landfill site 

• Strong winds broke partofthe fence atthe Hoopstad landfill site. 

• Waste collection vehicles are old, this results in break-downs which in turn affect service delivery. 

• Shortage of personnel for waste collection. 

• lllegal dumping of refuse. 

• Lack of machinery (yellow fleet) to assist with the management of landfill sites. 


36 | Page 






Number of houses with access to refuse removal 


Removed by the municipality at least 
once a week 

■ Ward 1 

■ Ward 2 

■ Ward 3 

■ Ward 4 

■ Ward 5 

■ Ward 6 

■ Ward 7 


Statistics South Africa: Census 2011 



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14.5 HUMAN SETTLEMENT 


Human Settlementin the Free State Province is a provincial competency unless in instances where a municipality 
has been accredited by the provincial government to build government funded houses. The responsibility of 
Tswelopele Municipality with regards to human settlement is beneficiary management through management of 
waiting list for residents applying for sites and beneficiaries who have service sites but are in need of RDP 
houses. 

The municipality ensures the provision of land and use of municipal owned land in support of the human 
settlement programme as initiated by the Province. The municipality also conducts identification of well-located 
land suitable for social and other housing through Local Spatial Development Framework (LSDF) processes. The 
Municipality also allows for basic considerations, such as suitability and servicing, and applications are approved 
accordingly through Council resolutions. 

Community Services department reviewed internally a Human Settlement Sector Plan and was approved by 
council in J une 2019. The Human Settlement Sector Plan addresses all human settlement challenges and 
remedial action including informal settlement related issues. . Apart from that, it a legislative requirement for 
Municipalities to compile a human settlement plan thatform partof the Integrated DevelopmentPlan. One ofthe 
core functions of a municipality is to ensure that service delivery reaches community at large and human 
settlement is a core function of a municipality. 

The municipality has managed with the assistance of the Department of Human Settlement in the province 
completed the construction of 832 RDP houses in Phahameng during 2017/2018 financial year. The municipality 
has included in the integrated development plan the backlog of 8461 forthe ervens and a RDP housing backlog of 
2277. The list of number of people entered on housing and ervens waiting list increases daily. The municipality 
has allocated sites at extension 10 in Bultfontein in the 2018/ 2019 financial year. The Municipality has township 
establishment of (499) four hundred and ninety nine allocated sites which will be electrified by Eskom during 
2019/2020 financial year in Tikwana -Extension 4. 

SITE ALLOCATION - 2018/19 FINANCIAL YEAR 


EXTENSION 

NO.OFSITE 

SITE ALLOCATEDTO DATE 

Ext. 4Tikwana 

499 

469 

Ext. 9 Phahameng 

481 

397 

Ext. 10 Phahameng / Bultfontein 

429 

70 

652 Erven Tikwana 

652 

503 


39 | Page 


















There are a number of title deed which are in the position ofthe Municipality. The title deeds are cateqorised perWard, as 

indicated in the table below: 


BULTFONTEIN / PHAHAMENG 


WARDNUMBER 

ISSUEDOUT 

REMAINING TITLE DEEDS 

Wardl 

19 

22 

Ward 2 

36 

17 

Ward 3 

60 

30 

Ward 4 

23 

13 

Ward 5 

0 

0 

TOTAL REMAINING WITHIN THE MUNICIPALITY : BULTFONTEIN 

82 

HOOPSTAD /TIKWANA 


WARDNUMBER 

ISSUEDOUT 

REMAINING TITLE DEEDS 

Ward 6 

463 

366 

Ward 7 

106 

347 

Ward 8 

97 

21 

TOTAL REMAINING WITHINTHE MUNICIPALITY: HOOPSTAD 

734 


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14.6 BASIC SERVICES AND INDIGENT SUPPORT 


The municipal council mustgive priority to the basic needs ofthe community, promote the social and economic 
development of the community and ensure thatall residents and communities in the municipality have access to 
at least the minimum level of basic municipal services in terms of section 152(1) (b) and 153(b) of the 
Constitution. 

Basic services are generally regarded to be access to electricity, access to clean water within a reasonable 
distance of one's dwelling, basic sanitation, solid waste removal and access to and availability of roads. The key 
purpose of an indigent subsidy policy is to ensure that households with no or lower income are not denied a 
reasonable service, and on the contrary, the Municipality is notfinancially burdened with non-paymentof services. 
Provided thatgrants are received and funds are available, the indigentsubsidy policy should remain intact. 

The Indigent Subsidy Scheme was introduced by the municipality in order to provide basic services to poor 
households (water, sanitation and energy). On an annual basis the indigent register is reviewed and residents 
who qualify are encouraged to apply. Entry level amount for the 2018 / 2019 financial year is determined as R3 
500 per month. Grants-in-aid may, within the financial ability of the municipality, be allocated to household owners 
ortenants of premises who receive electricity, refuse removal, waterand sewer services as well as assessment 
rate services, in respectof charges payable to the municipality forsuch services. 


Free Basic Services _ 

Free Basic Services To Low Income Households 


NumberOf Households 



Total 

Households Earning Less Than R 3 500.00 per Month 


Free Basic Water 

Free Basic Sanitation 

Free Basic 

Electricity 

Free Basic Refuse 

Total 

Access 

% 

Access 

% 

Access 

% 

Access 

% 

2018/19 

12523 

12523 

12523 

91% 

3790 

30% 

3790 

30% 

3790 

30% 


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14.7 ROAD TRANSPORT 


The municipality is required to provide safe, affordable, sustainable and accessible road network services and 
infrastructure that promotes integrated land use development. The municipality is not responsible for any road 
transport. 


Gravel Road Infrastructure 

Financial 

year 

Kilometres 

Total gravel roads 

New gravel roads 
constructed 

Gravel roads upgraded 
to pave 

Gravel roads 

graded/maintained 

2011 /12 

98.8 

500 m 

0 

180,5 

2012 /13 

93.8 

lkm 

5 km 

180.5 

2013 /14 

92.3 

1.5 km 

0 

120 

2014/15 

90.8 

0 

1.5 km 

40 km 

2015 /16 

90.8 

0 

0 

50km 

2016/17 

90.8 

0 

0 

36Km 

2017/18 

90.8 

0 

2 km 

35 km 

2018/19 

90.8 

0 

0 

37 km 


Tarred Road Infrastructure 


Kilometres 

Financial 

year 

Total tarred 
roads 

New tar roads 

Existing tar 

roads re-tarred 

Existing tar roads 
re-sheeted 

Tar roads 

maintained 

2011 /12 

54 km 

0 

0 

0 

5 km 

2012 /13 

61 km 

5 km 

0 

0 

6 km 

2013 /14 

61 km 

0 

0 

0 

1.5 km 

2014/15 

61 km 

0 

0 

0 

5 km 

2015 /16 

61km 

0 

0 

0 

10 

2016/17 

61Km 

0 

0 

0 

2 km 

2017/18 

61km 

0 

0 

0 

2km 

2018/19 

61km 

0 

0 

0 

lkm 


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14.8 PLANNING AND DEVELOPMENT 


Planning is administered within Community Services department where all land development application, 
township establishment applications are handled. The Municipality has a functional Municipal Planning Tribunal 
which is in operation and consists of Planners from CoGTA as well as relevant Municipal Officials. The 
Municipality has Planning Municipal Land Use and Planning By-laws thatincludes all land within the jurisdiction of 
Tswelopele Local Municipality including all farm land. 

The Municipality is in a process offinalising the Land Use ManagementScheme with the assistance from CoGTA 
and currently all Municipal township still do not have a Land Use Scheme and under the Black Communities 
DevelopmentAct, (Act No. 4 of 1984) which poses a limitin developmentas the Act is only limited to a numberof 
land uses which it allows and which lead to slow growth within the townships. The Spatial Development 
Framework has been reviewed for the 2019/20 financial year and is SPLUMA compliant and includes all both 
township and town areas. 

Tswelopele Local Municipality is slightly growing as the Municipality is currently receiving a number of land use 
application from local residential as well as farmers who are subdividing and rezoning their land. the Municipality 
aiso received 2 (two) township establishment application as well a truck stop, which is an indication thatthere is 
an improvement in the economy even though unemployment is still on the rise. 

The municipality needs to ensure the enforcement and building control on numerous illegal land users. The 
practice of erecting new houses and extension of existing housing units occurs without residents submitting 
building plans to the municipality for approval. As a result, Building Control Division conducts National Building 
Standards and regulations awareness's to the Community members during ward committee meetings to educate 
the Community members about the importance of submitting building plans for approval before erecting any 
structure, Building Control division complied pamphlets to be handed to the community members by conducting 
door to door visits, since Building Control Division has taken into note that most of the Community members of 
Tswelopele Local Municipality are notaware of the importance of submitting building plans before erecting any 
structure. 

NATIONAL BUILDING STANDARDS AND REGULATIONS AWARENESS CONDECTED FOR 2017/2018 

FINANCIAL YEAR 


QUARTER 

WARD 

PLACE 

DATE 

1 ST Quarter 

1 

Phahameng 

08 September 2018 

2 nd Quarter 

4 

Phahameng 

14 December2018 

3^ Quarter 

7 

Tikwana 

29 March 2019 

4 th Quarter 

8 Tikwana 27 J une 2019 


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Building Control division approved one hundred and thirty one (131) building plans. And the building application 
fees paid to the Municipality amount to a total of thirty three thousand, three hundred and eight rands and five 
cents (R 33 308.05). Everyyear, Building Control Division compiles a listof completed buildings that have been 
erected around Tswelopele Local Municipality to be submitted to the Finance department for the purpose of 
evaluation roll to be update. 


14.9 LOCAL ECONOMIC DEVELOPMENT AND TOURISM 


The vision, mission and the objectives of the local economic development unit is to support the following strategic 
focus areas in stimulating the local economy: 

• Agriculture Sector 

• Tourism Sector 

• Manufacturing 

• SMME's Promotion 

The municipality has reviewed the Local Economic Strategy in the financial year under review. Amongst others 
the objective of the strategy is to promote job creation in the local authority through assistance of the emerging 
farmers and cooperatives with the minimum resources directed to LED by the municipality and other sectors of 
government. The municipality is continuing to avail land to emerging farmers so thatthey can create sustainable 
jobs for themselves. The biggest achievement from Tswelopele Local Municipality Local Economic Development 
Unit is the support provided to six youth owners ofTuck-shop with groceries stock. 

SMMEE'S DEVELOPMENT 

Tswelopele local Municipality is a small municipality whereby most SMMEE's do not have the big wholesale 
where they can buy in bulk, therefore the municipality identified as the initiative by the Mayor the 5 youth owned 
Tuckshops which were assisted with Stock. Each of the 5 tuck shops was allocated with the stockforthe value of 
R5 000 and the following are the names ofthe identified tuckshops: 

1. Mahlomola Hendrice NgwevuTuckshop Phahameng - R5000 


2. Thembinkosi Petrus J ones Tuck shop Phahameng - R5000 

3. Mmaphello Maria Tuck shop Phahameng - R5000 

4. Thabo Michael Phehlo Tuck shop Tikwana - R5000 

5. Mokhobojoseph MohapiTuckshopTikwana - R5000 

6. NontuthuYvonneWittesTuckshopTikwana - R5000 


In developing agriculture in the area, the municipality has signed a lease agreement with lyo Park Poultry where 
the department of Rural Development in the Province is supporting the small farmers in order to promote 
sustainable business development in the rural areas. 


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TOURISM DEVELOPMENT 

The municipality has appointed through the assistance ofthe National Department of Tourism the two localyouth 
to be Tourism Data Collectors in the Municipality forthe duration of 12 months. The two learners will after 
completion ofthe training contractgraduate for National Certificate in Tourism Data Collector NQF Level 5. 


15 COMMUNITY & SOCIAL SERVICES 


15.1 MUNICIPAL FACILITIES 


Tswelopele Local Municipality has the following facilities which are managed within Community Services 
Department, namely 

• Amanda Coetzer Hall (Lapa) 

• Bultfontein Town Hall 

• Bultfontein Stadium 

• HoopstadTown Hall 

• Hoopstad Stadium 

• Louis Botha Hall (Pan Palace) 

• Phahameng Hall 

• Phahameng Stadium 

• Solomon Mahlangu Hall 

• Sebokolodi Hall 

• Tikwana Stadium 

As part of service delivery, the Municipality offer services for catering for the community's events by availing the 
above mentioned facilities forvarious types of events. 

Community Services has approved procedure manuals which provide detailed information on how to acquire and 
utilise municipal facilities. The above mentioned facilities are not in a satisfactory state as there is a need for 
refurbishment of the facilities. All Municipal facilities have standard tariff fees allocated. The Municipality is in a 
process of refurbishing all facilities per phases. Municipal facilities are rented out the general public and 
accessible to all. The Municipality utilises the first-come-firstserve process. 


45 | Page 










15.2 CEMETERIES AND CREMATORIUMS 


Tswelopele Local Municipality has a pauper burial policy where only the indigent and unknown deceased residents within the 
municipality are assisted with the burial process namely: 

1. A free grave 

2. Coffin (R1 500.00 foradultand R500.00 forchildren) 

The applicants submit the required information to the municipality and the councillor / CDW (Community Development 
Workers) conducta household study in orderto determine the living conditions of the applicant. Community Services then 
verify whether the applicant is in the indigent registry. When all information meets all requirements then the municipality pays 
the funds to the undertakeron behalf ofthe family members. 

Tswelopele Municipality does not own or provide crematorium facilities and services. The municipality is committed to 
creating and maintaining landscaped cemeteries in a sustainable, clean and safe environment. 


15.3 TRAFFIC MANAGEMENT 


Tswelopele Local Municipality has four (4) traffic officers with a functional structure; all four traffic officers are 
servicing both towns (Bultfontein & Hoopstad) on a rotational basis. Their function includes law enforcementand 
traffic management. The unit prepares weekly plans as well as reports which details all activities undertaken. The 
main activities conducted by Traffic Division include amongst others ensuring thatall road users comply with the 
rules and regulations of the road. Road Users transgressing National Road Traffic Act and related legislations are 
issued with Section 56 Notices and when there is a need arrested. The Unitalso serves warrants of arrests for 
those who do not pay notices and fail to appear in court. 

Traffic Division also on regular basis conducts multi-stakeholder joint operations and roadblocks in collaboration 
with Provincial Traffic and South African Police Service. The division also work with the Department of Police, 
Roads and Transport particularly Road Safety Directorate to conduct road safety educational campaigns and 
training of Scholar Patrols atschools. 

The unit ensures monthly reporting and consolidation of traffic fines which are submitted to internal audit and 
performance office. A total number of 867 traffic notices with 1000 cases were issued during the 2018/ 2019 
amounting to R 386 600, 00. 


15.4 DISASTER MANAGEMENT 


Municipality have a Disaster ManagementOffice and One (1) Official appointed as Disaster ManagementOfficer. 
Disaster Risk Manaqement plan was developed and adopted by Council in 2013 and; was reviewed in 2017 and, 
the plan deals specifically with the following: 

• Disaster Risk Assessment, 

• Disaster Risk Reduction, 

• Response and Recovery, 

• Public and Scholar's Awareness on risk disasterand climate change management. 


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The division deals with fire incidents and have developed a Fire Manaqement plan that was adopted by Council in 
2017. The division have affiliated with Fire Protection Association - thatdeals with veld fires and otherfire related 
issues / matters. 

Committees: 

• Local Disaster Managementcommittee meetonce on quarterly basis and, 

• Attend - District Disaster Management on quarterly basis. 

• Attends Provincial Fire Services Committee meeting on quarterly basis. 

The division have developed Business Continuitv plan that was adopted by Council in 2017. 

Stakeholders: 

• District, Provincial and, National Disaster Management Centres, 

• SASSA, 

• UFS, 

• Working on Fire, 

• Matjhabeng and Mangaung Fire Services, 

• Departmentof Agriculture and Rural Development, 

• Departmentof Agriculture, Feld Forestand Fisheries, 

• Fire Protection Association, 

• Emergency Medical Services, 

• SAPS 


15.5 EXECUTIVE AND COUNCIL 


Tswelopele is a collective type municipality. Council structures are as follows: EXCO, Section 80 Committees, 
Ward Committees, etc. Committees are accountable to the Speaker. Staff is as follows: Office Manager, PPO and 
Driver. 

The legislative and executive authority of a municipality is vested in its municipal council. Municipal council 
resolutions and recommendations are implemented. The municipal council exercise oversight authority overthe 
executive actions of the mayor and the municipal manager in terms of delegated authority. 

Sections 11 of MSA, directs a council to monitor municipal services, monitor the impact and effectiveness of 
services, policies, programmes and plans. Section 40 directs the council to monitor and review the council's 
performance managementsystems of specific responsibilities. 

Section 80 Committees were established for the effective and efficient performance of any of its function's or the 
exercise of any of its powers. No vacancies existed in the Office of the Speaker for the financial year under 
review. The Manager in the Office of the Mayor is responsible for public participation and managing the office and 
the staff. The Public Participation Officer is responsible to ensure the community becomes involved in the affairs 
of the municipality. In the Office of the Mayor we have PA to the Mayor who is responsible for day to day running 
of the mayor's office, Special Programmes Officer is responsible for transversal issues, Youth Development 
Officeris responsible foryouth programmes. 


48 | Page 











15.6 FINANCIAL SERVICE 


The Financial Department is primarily responsible for executing all the financial management ofthe municipality. 
The functions of one of the sections, namely the Budget and Treasury Office, may be broken into the following 
components: 

1. Budget and Reporting: this function spearheads the preparations and monitoring of the budgeting 
process. This also include mandatory reporting to all external stakeholders like National Treasury , 
Provincial Treasury among others 

2. Supply Chain Management: this function is responsible for managing the entire procurement process 
arc cording to legislation and regulations. This is essential as all departments provisions within 
municipality are sourced through Supply Chain Processes. 

3. Expenditure Management: this relates to all payments done within the municipality to service providers 
and salary of staff. 

4. Revenue Management: this involves billing the customers for services provided by municipality and the 
collection process. This is key function as the municipality cannot function properly without funding. 
Consequently this function allows the municipality to continue to offerservices to its customers. 

5. Asset Management: This involves safeguarding of assets in accordance to legislation and council 
policies. Accounting for assets will enable the municipality to make some corrective measures and will 
result in efficient and effective service delivery to the community. 

The financial administration is done together with all the departments within the municipality with the BTO taking 
the leading supportive role 


49 | Page 




15.7 HUMAN RESOURCE SERVICES 


Human resources are the primary investment for the municipality and the municipality endeavours to maintain its 
investmentin its staff hence the municipality is in the process ofthe recruitmentof qualified individuals in line with 
the critical posts identified, organizational structure review, training of staff members as perthe annual Workplace 
Skills Plan (WSP), comprehensive capacity building program for Councillors and a sound and conducive labour 
relations environment. 

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. 

Tswelopele Local Municipality is conscious of a lack of both infrastructure and skilled workforce to meet the needs 
of delivery services to our communities. 

In managing workforce capacity development the municipality has developed a strategy with the following goals:- 

- The right people with the right skills will be in the right place at the right time 

- Analysis of the existing workplace to determine expected and internal supply 

- Analysis of the gap between existing and future needs. 

- Predict workforce needs forthe future 

- Develop strategies to address the gaps 

- Continuously evaluate the process 

In order to fully achieve the goals listed above, the municipality is investing in training of our personnel to become 
highly skilled. 

CAPACITATION OF THE MUNICIPAL WORKFORCE: 

Workforce training and development learning interventions were implemented satisfactory as planned. 


Capacity building is an ongoing process that requires continuous engagements with stakeholders, improved 
planning and regular planning and evaluation of progress made. The relevant beneficiaries for the minimum 
competencies have achieved the desired end results, however the training is also continuous as per the new 
appointments are made. 

A number of programmes are in place to assist the employees and the municipality and all initiative programmes 
are aimed at building capacity for acceleration of knowledge and competencies. The municipality could to subject 
all the identified officials of the municipality in line with the approved work skills plan due the financial constraints. 


50 | Page 




The 2018/ 2019 budget was directed to funding of councillors training as a result the work skills plan could not be 
implemented accordingly. 


During 2018/19 financial year the municipality did conduct skills audit of employees and management but Work Skills Plan 
was compiled and submitted to LGSETA on 30 April 2019. The municipality is intending to train four (5) councillors for 
Diploma or Certificate in Local Government Law & Administration with Fort Hare University. The course will start in due 
course. 

The following training were conducted on employees; 

1. Diploma in Law Certificate - 4- Councillors 

2. MFMP-5- Financial Interns 

3. Office Management-1 Vuiswa 

4. Masters in Town Planning -1- MG J anuary 

5. B-TechlT- 1-TAMakoko 

6. Human Resource DevelopmentManagement-TJ Polori 

7. Human Resource Management- 1 - Clara Leeuw 

8. BATHO-PELE - 8- employees- R Schalkwyk, M Modisadihe, MM Shuping, V Saliwe, TJ Polori, A Sam, S Phumo, 
M Kgalaeng 

The municipality also provides forthe health and welfare of all its employees. The municipality is having a dedicated Health 
and Safety Committee and regular workshops or awareness campaigns are conducted for all employees. 


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15.8 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES 


The municipality has deployed Palo Alto Firewall and the demilitarised zone (DMZ) on its network to guard against 
cyber-crimes, to block certain websites that are not work related and spoofing e-mails. Furthermore the 
municipality has renewed its ESAT anti-virus protection also to guard municipality systems againstviruses. 

The municipality has appointed Ntelecom company to hostthe municipality with, e-mails and VOIP services and 
Internet, the connection was also upgraded to lOMbps. The municipality has also put on the Virtual Private 
Network (VPN) with 8 Mbps connection in place to connectthe remote site to the main site for financial system 
purposes. We have also deployed a proxy servertoo. The municipality has appointed Munsoftto run the financial 
system thatis MSCOA compliant hence there is a need to upgrade the internet speed and network infrastructure 
because the system has to run live at all times and for backup purposes too. 

The municipality has developed an ICT Strategic Plan and the purpose of the Municipality's IT strategic plan is to 
ensure that the municipality will allocate sufficient resources and establish priorities using the municipality's 
broader vision to enhance the business processes. 

The municipality to qain a competitive advantaqe in the use of Information Technoloqy has to ensure that the 

followinq are implemented as short-term, medium-term orlonq-term projects: 

NetworkConnectivitv 

This will be done in phases: 

1.1 Upgraded and constant network connectivity. 

1.3 Development of the server room 

Review the Financial Manaqement Systems 

2.1 Financial Management Systems that complies with the Municipal Finance Management Act (MFMA) and 
MSCOA. 

Hardware and Software 

3.1 Standardised licensed hardware and software forthe municipality. 


52 | Page 











This was justto name few projects and thatthe municipality should ensure thatthese projects are implemented 
within the timeframes. 


15.9 RISK MANAGEMENT SERVICES 


RISK MANAGEMENT 

The role of Risk Management in the municipality is to co-ordinate and offer guidance with regard to the process of 
managing risks in the municipality and the following were taken into consideration. 

By ensuring that there is regular updating of risks on quarterly basis in the risks registers in pursuit of set 
objectives and improved risk maturity level 

By ensuring that there is embedding of risk management culture in the municipality by the risk owners and 
other role players 

Ensure thatthere is functional and effective Risk ManagementCommittee in place to play an oversight role 
over risk management matters. 

In terms ofthe Risk ManagementStrategy, risk managementis nota stand-alone function, butis partofthe 
strategic planning, business process and operational activities. 


53 | Page 






16 ANNUAL PERFORMANCE REPORT AS AT 30 JUNE 2019 



TSWELOPELE 

LOCAL MUNICIPALITY 

A MUNICIPALITY IN PROGRESS 



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TLM NON-FINANCIAL PERFORMANCE REPORT (Q1 JULY 2018 TO Q4 JUNE 2019) 
REPORTING PERIOD: AS AT 30 JUNE 2019 


16.1 INTRODUCTION 


Performance management is a process which measures the implementation of actions identified to achieve the 
organisation's strategy. Itassists managementto pian, monitor, measure and review performance indicators to ensure 
efficiency, effectiveness and the impact of service delivery by the municipality. According to the Local Government 
Municipal Finance Management Act, Act 56 of 2003, Section 52 (c) thereof, the Mayor musttake all reasonable steps 
to ensure thatthe municipality performs its Constitutional and statutory functions within the limits of the municipality's 
approved budget. 

Performance management is prescribed by chapter 6 of the Municipal Systems Act 2000 and the Municipal Planning 
and Performance Regulation of August 2001. Section 7 ofthe aforementioned regulation states that "A municipality's 
performance managementsystems entails a framework that describes and represents howthe municipality's cycle and 
processes of performance planning, monitoring, measurement, review, reporting and improvement will be conducted, 
organized and managed, including determining the responsibilities of different role players” This framework should 
reflectthe linkage between the IDP, Budgetand SDBIP. 

The constitution of S.A (1996), section 152, dealing with the objectives of local government paves the way for 
performance management with the requirements for an "accountable government’’. The democratic values and 
principles in terms of section 195 (1) are also linked with the concept of performance management, with reference to 
the principles of interalia: 

■ the promotion of efficient, economic and effective use of resources, 

■ accountable public administration, 

■ to be transparent by providing information, 

■ to be responsive to the needs of the community, and 

■ To facilitate a culture of public service and accountability amongst staff. 

The Municipal Systems Act (MSA), no. 32 of 2000, requires municipalities to establish a performance management 
system. Further, the MSA and the Municipal Finance ManagementAct(MFMA), no. 56 of 2003, requires the Integrated 
Development Plan (IDP) to be aligned with the municipal budgetand be monitored forthe performance ofthe budget 
againstthe IDP by using the Service Delivery and the Budget Implementation Plan (SDBIP). 


55 | Page 










16.2 LEGISLATIVE REQUIREMENTS 


ln terms of section 46(l)(a) of the MSA, a municipality must prepare for each financial year a performance report 
reflecting the municipality's and any service provider's performance during the financial year, including comparison 
with targets of and with performance in the previous financial year. The report must, furthermore, indicate the 
development and service delivery priorities and the performance targets set by the municipality for the following 
financial yearand measures thatwere orare to be taken to improve performance. 


16.3 TLM STRATEGIC PERFORMANCE 


Strategic performance indicates how well the municipality is meeting its objectives and which policies and processes 
are working. All government institutions must report on strategic performance to ensure that service delivery is 
efficient, effective and economical. Municipalities must develop strategic plans and allocate resources for the 
implementation. The implementation must be monitored on an ongoing basis and the results must be reported during 
the financial year to various role-players so as to enable them to timeously implement corrective measures where 
required. 

This report highlight the strategic performance in terms of the municipality's Top Layer Service Delivery Budget 
Implementation Plan (SDBIP), high level performance in terms of the National Key Performance Areas and an overall 
summary of performance ata functional level. Details regarding specific basic service delivery targets, achievements 
and challenges will be included in this reportas well as the detailed Annual Reportofthe municipality. 

Tswelopele Local Municipality compiled its consolidated performance report (Q1 to Q4) in line with the above 
mentioned legislation. The purpose ofthe reportis to outline the achievements ofthe municipality in the period under 
review. The report further seeks to outline challenges and remedial actions that have been implored as corrective 
measures thereto. 

The purpose ofthis performance reportis as follows: 

To analyze the performance of the municipality forthe entire financial year 
To track progress againstthe targets setin the SDBIP. 

Inform decision making and future goal setting 

To identify problems regarding performance of municipal programmes with a view to obtain solutions. 

To determine whether the objectives of various programmes have been met and whether is it appropriate to 
review and amend them given the changing circumstances. 


56 | Page 









For the financial year under review, the Municipality (TLM) comprised of four departments, namely; Municipal 
Manager's Office, Finance, Corporate Services, and Technical Services. All Heads of Department positions have been 
filled except the corporate services which is under sub-J udy care. 

This report covers the performance information from 1 j uly 2018 to 30 J une 2019 and focuses on the implementation 
ofthe Service Delivery Budgetand Implementation Plan (SDBIP), in relation to the Integrated DevelopmentPlan (IDP). 
In addition, the report provides an overview of improvements made to the performance management system and 
shortcomings thatstill need to be addressed and progress made in the implementation. 


16.4 INSTITUTIONAL PERFORMANCE MANAGEMENT PROCESS OVERVIEW 


At the commencement of the financial year, every attempt was made to ensure that the municipality complies with 
legislation concerning the development, operation, compliance and maintenance of a performance management 
system that is commensurate to the institutional service delivery objectives captured in the IDP. Tswelopele Local 
Municipality continued to maintain the effective operation of the following mechanisms: 

■ The Strategic Services Division conducts individual meetings with the nominated PMS Champions. 

■ PMS Champions then coordinates the collection of data and supporting evidence within their respective 
departments. 

■ All objectives and targets as contained in the performance plan and SDBIP are reported. 

■ Upon receipt of documentation, the Strategic Services Division analyses the submitted information and 

prepares a performance report. 

■ Draftperformance reportgets presented to the PMS Champion with the view of reaching consensus. 

■ Thereafter submitted evidence together with the draft performance report is then submitted to the Internal 

Audit Division for auditing, verification and quaiity assurance. Thus quarteriy performance reports with 
supporting evidence were prepared by managers directly reporting to the Municipal Manager (MM). Quarterly 

performance reports were objectively and independently audited by the Internal Audit unit to verify and to 

confirm performance information as reflected in the reports; the unit also confirms the credibility of evidence 
thatwas submitted. 

■ Meetings take place between the Internal Auditand Strategic Services Division to deliberate intensively on the 
report. 


16.5 PERFORMANCE MANAGEMENT SYSTEM FOLLOWED FOR THE FINANCIAL YEAR 2018/19 


Performance management is prescribed by chapter 6 ofthe Municipal Systems Act, Act 32 of 2000 and the Municipal 
Planning and Performance Management Regulations of August 2001. Section 7 (1) ofthe aforementioned regulation 
states that "A Municipality's Performance ManagementSystem entails a framework that describes and represents how 
the municipaiity's cycle and processes of performance planning, monitoring, measurement, review, reporting and 
improvement will be conducted, organized and managed, including determining the responsibilities ofthe different role 
players."This framework, inter alia, reflects the linkage between the IDP, Budget, and SDBIP and service provider 


57 | Page 









performance. The municipality adopted a performance management policy framework which was followed in managing 
performance throughout the financial year. The policy and framework will be reviewed annually and inputs will be 
solicited from various stakeholders. 

■ Municipal IDP and Budget 

The IDP was revised and updated for 2018/19 as well as the budget, the documents were approved by Council in J une 
2018. The municipality started with the process of aligning the IDP with the performance management requirements 
and has improved the alignmentofthe IDP, Budgetand the SDBIP forthe 2018/19 financial year. 

■ The Service Delivery Budget Implementation Plan 

The organisational performance is evaluated by means of a municipal scorecard (Top LayerSDBIP) atorganisational 
level and through the service delivery budget implementation plan (SDBIP) atdirectorate levels. 

The SDBIP is a plan that converts the IDP and budgetinto measurable criteria on how, where and when the strategies, 
objectives and normal business process of the municipality is implemented. It also allocates responsibiiity to 
directorates to deliverthe services in terms ofthe IDP and budget. 

The MFMA Circular No.13 prescribes that: 

■ The IDP and budget must be aligned; 

■ The budget must address the strategic priorities; 

■ The SDBIP should indicate whatthe municipality is going to do during next 12 months; and 

■ The SDBIP should form the basis for measuring the performance against goals set during the budget /IDP 
processes. 

The SDBIP was prepared, as prescribed by legislation and approved by the Mayor in j uly 2018 and later revised 
during February 2019. 

MUNICIPAL SCORECARD (TOP LAYER SDBIP) 

The municipal scorecard (Top Layer SDBIP) consolidate service delivery targets set by Council and provides the 
overall picture of performance forthe municipality as a whole, reflecting performance on its strategic priorities. 

Components oftheTop LayerSDBIP included: 

- Monthly projections of revenue to be collected for each source; 

- Expected revenue to be collected not billed; 

- Monthly projections ofexpenditure (operating and capital) and revenue foreach vote; 

- Quarterly projections ofservice delivery targets and performance indicators foreach vote; 

- Non-financial measurable performance objectives in the form oftargets and indicators; and 

- Detailed capital project plan broken down by ward overthree years. 

Top layerSDBIP gets operationalized into directorate scorecards (performance plans) itcaptures the performance of 
each directorate. Unlike the municipal scorecard, which reflects on the strategic performance of the municipality, the 
performance plan provides a comprehensive picture of the performance of that directorate. 


58 | Page 





The organisational performance was monitored and evaluated within the SDBIP and the performance process can be 
summarised as follows: 

■ TheTop LayerSDBIP was approved by the Mayorand the information was loaded to municipal website. 

■ The actual results against monthly and quarterly targets set, were discussed in the monthly meetings 
(Dash-board and commitments) to determine early warning indicators and discuss corrective measures 
thatwere needed in cases of non-performance. 

■ The firstand second quarterly report formed partofthe section 72 reportin terms ofthe Municipal Finance 
ManagementAct, which was submitted to the Mayoron 25 j anuary 2018. 

■ The Quarterly SDBIP performance reports were also submitted to the AuditCommittee. 

■ Internal Audit performed a statutory compliance review which included revision of the information 
contained in the budget, SDBIP, reviewed IDP and reported thereon. Continuous validation of reported 
performance has been maintained. 


16.7 INDIVIDUAL PERFORMANCE MANAGEMENT 


Municipal Managerand Managers Directly Accountable to the Municipal Manager 

The Municipal Systems Act, 2000 (Act 32 of 2000) prescribes thatthe municipality mustenter into performance based 
agreements with the all s57-employees and that performance agreements must be reviewed annually. This process 
and the format are further regulated by Regulation 805 (August 2006). All Heads of Departments have signed the 
performance agreements and performance plans. 

The appraisal of the actual performance in terms of the signed agreement did not take place twice per annum as 
regulated. A formal performance appraisal has been scheduled for September 2019 whereby the MM and Managers 
reporting directly to him will be assessed and evaluated. 

Other Municipal Personnel 

The municipality has not yet initiated a process of implementing individual performance management to lower level 
staff, however a phased in approach will be implemented as encompassed by the policy and framework. Performance 
agreements/scorecard will be developed and signed between the staffon other post levels and immediate managers/ 
supervisors. Progress in this regard will be reported on in future. 


59 | Page 







This section provides an overview on the strategic achievements ofthe municipaiity in terms of deliverables achieved. 
TheTop LayerSDBIP and the municipality's strategic plan shows strategic alignmentbetween the IDP, budgetand the 
performance plans. 

Strategic performance of the municipality was therefore measured in terms of the municipality's performance on its key 
performance indicators setin the Top LayerSDBIP. The sections below illustrates the performance achieved 
according to the 5 National Key Performance Areas (KPA) linked to the IDP objectives. 

The overall assessmentof actual performance against targets setforthe key performance indicators as documented in 
the S DBIP is illustrated in terms of the following assessment methodology. 


60 | Page 




16.9 SYNOPSIS OF MUNICIPAL PERFORMANCE RESULTS AT A STRATEGIC LEVEL 


Following graphs illustrate the overall performance ofthe municipality measured in terms ofthe Top Layer (strategic) 
SDBIP and performance plans. The performance is measured and reported per National KPA. 



OVERALL MUNICIPAL PERFORMANCE RESULTS 
FOR THE YEAR UNDER REVIEW. 


NOT APPLICABLE. 
0 % 


NOT ACHIEVED 
17% 


MUNICIPAL MANAGERS OFFICE 

The Municipal Manager's Office had (46) targets setas perthe key performance indicators; Attained (37), not 
achieved (9). 

FINANCE 

The Finance Department had (34) targets set as per the key performance indicators; Attained (24), not 
achieved ( 10 ). 


61 | Page 











CORPORATE SERVICES 


The Corporate Services had (28) targets set as per the key performance indicators; Attained (20), not 
achieved ( 8 ). 

TECHNICAL SERVICES 

The Technical Services had (45) targets setas perthe key performance indicators; Attained (33), notachieved 
( 12 ). 


62 | Page 






16.10 PERFORMANCE DEFICIENCIES AND CORRECTIVE MEASURES PER DEPARTMENT 


DEPARTMENT: MUNICIPAL MANAGER 


No. 

Actual performance reported 

Reasons fornon-achievement 

Actions to improve performance 

1. 

Annual Performance Evaluations forthe 

MM; CFO; DirectorTechnical; and Director 
Corporate Service forthe 2017/18 have 
notyetbeen concluded by council as at30 

J une 2019. 

The Municipal Public Accounts Committee did not 
convene timeously to discuss the evaluation report 
due to non-attendance of the committee meetings 
by the members (quorum) 

The MPAC chairperson submitted a letter 
to the speaker raising the concerns 
regarding the non-attendance of MPAC 
meetings by committee members. The 
matter has been eievated to council for 
intervention. 

2. 

0nly 8 (instead of 20) street permit trading 
licenses have been issued for the financial 
year. 

The municipality couid not issue street permit 
trading licenses to the targeted population due to 
the resistance by the street vendors. 

The municipaiity has initiated a new 
method of issuing the street permit trading 
licenses, The law enforcement wiii be 
applied by the law enforcement office to 
make the street vendors to pay their 
permit. 

3. 

Only 1 workshop (instead of 2) was held in 
October 2019 in partnership with 

NEDBANK forSMMEs forboth towns. 

The municipality could not getfunds from the 
sector department as assistance to conductthe 
planned workshop in the fourth quarter. 

The municipaiity wiil source funds from the 
sector departments to conductthe 
workshop on SMMEs forboth towns. 

4. 

The municipality obtained quaiified audit 
(instead of unqualified) opinion on the 
auditof 2017/ 2018 financial statements. 

The municipality was qualified based on the 
various line items in the annual financial 
statements thatcould notbe avoided. 

The municipaiity deveioped an audit 
action pian to address the deficiencies 
identified by the AGSA and is monitored 


63 | P a g e 











on a monthly basis by Internal Audit unit. 

5. 

Monthly updates on the risk register were 
not performed. 

No reasons provided forthis indicator 

None 

DEPARTMENT: FINANCIAL SERVICES 

No. 

Actual performance reported 

Reasons fornon-achievement 

Actions to improve performance 

1. 

No monthly performance reports submitted 
forthe financial year. 

The management meeting did not convene on a 
monthly basis to create a platform fordiscussion of 
monthly performance reports. Accordingly, 
performance reports were prepared on a quarterly 
basis and tabled to council. 

The council took a resolution that the 
monthly performance reports should be 
submitted to the Mayor or oversight. 
Reports will be submitted to council for 
any non-compliance to the resolution. 

2. 

The department has only allocated R7 
448 000 (instead of 10 071 000) for repairs 
and maintenance for 2019/ 2020 budget 
year. 

The municipal budget was in a deficit during the 
drafting stage and a resolution was taken to 
reduce the repairs and maintenance budget 
(together with other cost containment items) in 
order to avoid the deficit/unfunded budget. 
Technically, the decision to reduce the allocation 
for repairs and maintenance was actually revising 
the target in the annual performance plan 

The target will be reviewed and included 
in the 2019/2020 planning. 

3. 

The department achieved 56% (instead of 
95%) of the issues raised and proposed 
corrective measures by external auditors. 

Mostofthe targets thatwere notachieved as at 30 

J une 2019 relates to AFS. This are issues 
(misstatements/corrections/misallocations) that 
needs to be corrected directly in the AFS / FAR 

The audit action plan will be updated once 
the financial statements, asset register 
and other applicable reconciliations have 


64 | P a g e 


















and could only be done by the end of August 2019 
when both the AFS and FAR are finalized for the 
2018/19 financial year. 


been completed. 


The department achieved 40% (instead of The none achievements are noted and came as a Ali internal audit action plan have been 


95%) of the issues raised and proposed 
corrective measures by internai auditors. 


resulting of prioritizing AGSA finding as compared 
to those of Internal Audit (given that there were 
similarities for 


included the department's SDBIP 
execution plan. This means internal audit 
queries will be responded to within 3 
working days as is the case with external 
audit (AGSA). 


The department did not achieve 90% 
implementation ofthe resolutions made by 
council. 


No reason provided forthis indicator. 


None. 


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DEPARTMENT: CORPORATE SERVICES 


No. 

Actual performance reported 

Reasons fornon-achievement 

Actions to improve performance 

1. 

No monthly performance reports submitted 
forthe financial year. 

The management meeting did not convene on a 
monthly basis to create a platform for discussion of 
monthly performance reports. 

The council took a resolution that the 
monthly performance reports should be 
submitted to the Mayor oroversight. 

Reports will be submitted to council for 
any non-compliance to the resolution. 

2. 

Licensed Microsoft office has notyetbeen 
installed on municipal computerand IT 
infrastructure as at 30 J une 2019. 

The Microsoftoffice was not installed in all 
municipal computers and IT infrastructure. 

The department submitted a letter 
indicating thatthe advertwas puton the 
website to find competentand reputable 
service providerto supply the municipality 
with Microsoft professional licenseand 
results ofthe processes were never 
approved by management. 




The department did not provide the 
actions/ corrective measure taken to 
improve performance. 

3. 

The department achieved 63% (instead of 
95%) ofthe issues raised and proposed 
corrective measures by external auditors 

The target could be achieved due to budget 
constraints faced by the municipality in the 
financial year under review. 

The municipality will source funds to 
procure a server room, procurement of 

Microsoft office and filling ofvacant 
positions. 

4. 

The department achieved 38% (instead of 

The target could be achieved due to budget 

The municipality will source funds to 


66 | P a g e 


















No. 

Actual performance reported 

Reasons fornon-achievement 

Actions to improve performance 


95%) of the issues raised and proposed 
corrective measures by internal audit. 

constraints faced by the municipality in the 
financial year under review. 

procurea serverroom, procurementof 

Microsoft office and filling ofvacant 
positions. 

5. 

Compliance checklists have notbeen 
completed in the financial year under 
review. 

No reasons provided by the department 

None 

6. 

The departmentdid notachieved 100% 
implementation ofthe council resolution 
taken in the financial year under review. 

There are no effective systems in place to trackthe 
implementation ofthe council resolutions by 
management. 

The council resolution register and 
implementation thereof is a standing item 
to managementmeetings. 

7. 

Only Firstquarter risk assessmentand 
action plan reviews have been submitted. 

No reasons provided by the department 

None 

8. 

The budget allocated fortraining in the 
municipality was exhausted by training of 
councilors therefore identified official in the 
approved WSP were nottrained. 

The department submitted a singed letter 
indicating thatthe planned trainings forthe officials 
in the departmentdid nottake place due to 
unavailability of budget. The training budget was 
committed to pay for the councilors studying with 
University of FortHare. 

The municipality will allocate more budget 
to training of officials during the budget 
adjustment process. 


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DEPARTMENT: TECHNICAL SERVICES 


No. 

Actual performance reported 

Reasons fornon-achievement 

Actions to improve performance 

1. 

No monthly performance reports submitted 
forthe financial year. 

The managementmeeting did notconvene on a 
monthly basis to create a platform for discussion of 
monthly performance reports. 

The council took a resolution that the 
monthly performance reports should be 
submitted to the Mayor or oversight. 

Reports will be submitted to council for 
any non-compliance to the resolution. 

2. 

The budget allocated fortraining in the 
municipality was exhausted by training of 
councilors therefore identified official in the 
approved WSP were nottrained. 

The department submitted a singed letter 
indicating thatthe planned trainings forthe officials 
in the departmentdid nottake place due to 
unavailability of budget. The training budget was 
committed to pay for the councilors studying with 
University of FortHare. 

The municipality will allocate more budget 
to training of officials during the budget 
adjustment process. 

3. 

The department has submitted a report 
indicating the average of 18, 42% (instead 
of 15% maximum) of water losses for the 
financial year under review. 

The increased water losses is as a result of leaking 
toilets cisterns. 

The municipality will fast track the 
implementation of the bulk water project 
aimed at assisting the municipality in 
reducing the water losses encountered. 

4. 

The construction of cricket pitch is 82% 
complete. 

100% completion of the cricket pitch could not be 
attained due to the extension of time claim. 

The department should include this 
indicator as part of 2019/ 2020 financial 
year 


















No. 

Actual performance reported 

Reasons fornon-achievement 

Actions to improve performance 





5. 

0% implementation of upgrading ofthe 
bulk water suppiy in Hoopstad and 
Bultfontein has been reported. 

The department submitted a letter indicating that 
the adjudication committee did convene and could 
notreach conclusion as a resultthe consultant 
could notbe appointed. 

None 

6. 

92.80% of the formalized households have 
access to electricity services. 

100% of public facilities and businesses 
have access to electricity services. 

The department did not provide reasons for non- 
achievementof the targetand actions to improve 
performance. 

None 

7. 

3 environmental managementawareness 
campaigns have been conducted. 

1 awareness campaign report does not have an 
attendance register. 

Proper record keeping should be 
encouraged and implemented. 

8. 

The EPWP plan is notreviewed and 
approved by the Municipal Manager. 

The department did not provide reasons for non- 
achievementof the targetand actions to improve 
performance. 

None 

9. 

The department achieved 70% (instead of 
95%) of the issues and proposed 
corrective measures by internal auditors. 

The departmenthas developed an Inventory policy 
and the J ob description for the inventory officer 
and awaiting approval. 

The policy and the job descriptions will be 
submitted to the municipal manager for 
approval. 

10. 

The departmentdid notachieve 90% 
implementation ofthe resolutions made by 
council. 

No reasons provided by the department 

None 


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No. 


Actual performance reported 


Reasons fornon-achievement 


Actions to improve performance 


11. Firstand second quarter reports on the 

No reasons provided by the department 

None 

implementation ofthe compliance 



checkiists were notconducted. 



12. Quarterly risk assessmentand action plan 
review were not implemented. 

No reasons provided by the department 

None 


CONCLUSION 

Thus, this report refiects the municipal performance as at 30 J une 2019. This is a high level report based on the scores obtained through a process whereby 
Key Performance Indicators and targets are compared to the initial planning as contained in the 2018/19 SDBIP. 

Where under-performance orzero achievementof indicators have been experienced the respective concerns ormitigating reasons are highlighted and detailed 
pertaining to the relevant measures being implemented or those that need to be implemented. 

There has not been an improvement in terms of achieving targets and this was closely observed during quarteriy performance reporting. Emphasis on the 
submission of supporting evidence is encouraged atall times. 

The municipality will continue improving on its performance managementsystem, particularly, in the application ofthe SMART principle. Plans are underway to 
cascade PMS to all employees in orderto promote accountability across all postlevels. 


70 | P a g e 
















DEPARTMENT: CORPORATE SERVICES 




ACTUAL 

CORRECTIVE 

INTERNAL 







PERFORMANCE 

MEASURES 

AUDITORS 

KEY PERFORMANCE AREA 1 - MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT 


TAKEN OR 

REASONSFOR 

COMMENTS 








VARIANCE 











OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 





PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 

BUDGET 






INDICATOR 


2018/19 

2017/18 

ALLOCATION 






(KPI) 



TARGETS 






To promote 

The number of 

The number of 

2 People 

2 Reports 

R 8 074 

5% 

The 2 project 

None 

Achieved 

equal job 

people from 

people from 

from 

Submitted 

414,00 


management 



opportunities. 

employment 

employment 

employment 




technicians 



inclusion and 

equity target 

equity target 

equity target 




were 



redress. 

employed 

employed 

employed 




appointed in 




(newly 

(newly 

(newly 




the financial 




appointed) by 

appointed) by 

appointed) 




year under 




30 June 2019 in 

30 June 2019 in 

by 30 June 




review. 




compliance 

compliance 

2019 in 








with the 

with the 

compliance 








municipality's 

municipality's 

with the 








approved 

approved 

municipality's 








employment 

employment 

approved 








equity plan 

equity plan 

employment 









(Employment 
equity reports 
approved and 
submitted) 

equity plan 








ACHIEVEMENT 

STATUS 


Achieved 























To enhance 

responsiveness 

to citizen's 

priorities and 

capabilities of 

delivery of 

quality 

services, 

quality 

management 

and 

administrative 

practices 


Submit 

monthly report 

to 

management 

on the actual 

performance 
against the 

SDBIP 

Monthly report 

submitted to 

management 

12 Monthly 

performance 

report 

12 monthly 
reports 

Number of 

OHASA 

Quarterly 

Campaigns/ 

OHASA 

awareness 

OHASA 

Reports 

awareness 

campaigns 

awareness 

conducted 

campaigns 

conducted 

campaigns 


conducted to 

(Number of 

conducted 


ensure 

reports 



protection of 

submitted) 



employees. 





5% 

The 

The council 

Not 

Not Achieved 


management 

took a 

Achieved 



meeting did 

resolution 




not convene on 

that the 




a monthly basis 

monthly 




to create a 

performance 




platform for 

reports should 




discussion of 

be submitted 




monthly 

to the Mayor 




performance 

or oversight. 




reports. 

Reports will 

be submitted 

to council for 

any non- 

compliance to 

the 

resolution. 



5% 

22 awareness 

campaigns 

have been held 

for the financial 

year under 

review. 

None 

Achieved 

Achieved 


72 | P a g e 





















Hold quarterly 

health and 

safety meetings 

to discuss all 

safety related 

issues of the 

employees 

quarterly health 
and safety 
meetings held 
(Number of 

reports 

submitted) 

Quarterly 

health and 

safety 

meetings 

held. 

None 


Institutional 

Workplace 

Skills Plan 

developed and 

submitted to 

Municipal 
Manager for 
approval 

Approved 
workplace skills 
plan. 

Compliant 

WSP 

developed 

and 

approved 
(April 2019) 

Approved 

WSP 


Number of 

officials & 

Councillors 

capacitated in 

terms of 

Workplace 

Skills Plan 

Identified 

officials and 

councillors 

Capacitated in 

terms of 

workplace skills 
plan (quarterly 
reports on the 
implementation 

of the works 

skills plan) 

All identified 

officials & 

Councillors 

trained as 

per the WSP 
(Quarterly) 

All identified 

officials and 

councillors 

trained 


TOTAL 


5% 

5 health and 

safety meetings 

have been held 

in the financial 

year under 

review. 

None 

Achieved 

Achieved 

5% 

The approved 
work skills plan 

has been 

submitted by 
April 2019. 

None 

Achieved 

Achieved 

5% 

The budget 

allocated for 

training in the 
municipality 

was exhausted 

by training of 

councillors. 

The plan will 

be reviewed 

and be in line 

with the 

current 

arrangements. 

Not 

Achieved 

Not Achieved 

30% 






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DEPARTMENT: CORPORATE SERVICES 


ACTUAL 

PERFORMANCE 


KEY PERFORMANCE AREA 2 - INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY 


OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 


PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 

BUDGET 



INDICATOR 


2018/19 

2017/18 

ALLOCATION 



(KPI) 



TARGETS 




CORRECTIVE 
MEASURES 
TAKEN OR 
REASONS 
FOR 

VARIANCE 


INTERNAL 

AUDITORS 

COMMENTS 


Expansion, 

Installation of 

All municipal 

Installed MS 

100% of 

R 200 000,00 

10% 

The Microsoft 

The 

Not 

modernisation, 

Microsoft 

computers and 

Office Pro 

Microsoft 



office was not 

department 

Achieved 

access and 

Office 

IT infrastructure 

Plus in all 

office 2013 



installed in all 

submitted a 


affordability of 

in municipal 

installed with 

municipal 

was installed 



municipal 

letter 


our Information 

computers by 

Microsoft 

computers 




computers and 

indicating 


and 

March 2019 

office(screen 





IT 

that the 


communications 


shots and proof 





infrastructure. 

advert was 


infrastructure 


of installation) 






put on the 


ensured. 








website to 

find 

competent 

and 

reputable 

service 

provider to 
supply the 
municipality 

with 

Microsoft 

professional 



ACHIEVEMENT 

STATUS 


Not Achieved 











licence and 
results of the 
processes 
were never 
approved by 
management. 

The 

department 
did not 
provide the 
actions/ 
corrective 
measure 
taken to 
improve 
performance. 


Installation of 

All municipal 

Anti-virus 

100% of anti- 

10% The anti-virus 

None 

anti-virus in all 

computers and 

installed on 

virus was 

was installed 


municipal 

IT infrastructure 

municipal 

installed 

on the 27 of 


computers and 

protected 

computers 


November 


IT 

against the 

and IT 


2018 on all 


Infrastructure 

virus (screen 

infrastructure 


municipal 


by December 

shots and proof 

by December 


computers and 


2018 

of installation) 

2018 


IT 






infrastructure. 



Achieved 


TOTAL 


20 % 


75 | P a g e 


Achieved 











DEPARTMENT: CORPORATE SERVICES 





KEY PERFORMANCE AREA 3 - LOCAL ECONOMIC DEVELOPMENT 




KEY PERFORMANCE AREA 3 - LOCAL ECONOMIC DEVELOPMENT 

OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 


PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 

BUDGET 



INDICATOR 


2018/19 

2017/18 

ALLOCATION 



(KPI) 



TARGETS 



Create an 

Percentage of 

100% local 

100% of 

100% of 

R7 151 

5% 

environment 

unskilled 

unskilled labour 

unskilled 

unskilled 

100,00 


that 

labour in all the 

appointments is 

labour on 

labour 



promotes 

capital projects 

local based. 

all the 

(ongoing) 



development 

of the 


capital 




of the local 

Municipality 


projects 




economy 

are from the 


from the 




and facilitate 

local 


local 




job creation. 

municipality 


municipal 





area 


area 





Create Full 

Signed 

Full Time 

None 


5% 


Time 

appointment 

Equivalent 





Equivalent 

letters and 

created 





(FTE) through 

statistics 

by 30 





government 

expenditure 

submitted to 

June 2019 





ACTUAL CORRECTIVE INTERNAL 

PERFORMANCE MEASURES AUDITORS 
TAKEN OR COMMENTS 
REASONS 
FOR 

VARIANCE 


100%ofthe None Achieved 

unskilled 

labour 

appointed in 

all the capital 

projects is 

from local. 


100%ofthe None Achieved 

unskilled 

labour 

appointed in 

all the capital 

projects is 


ACHIEVEMENT 

STATUS 


Achieved 


Achieved 


76 | P a g e 












with EPWP 

grant by 30 

June 2019 

Province/National 





from local. 





TOTAL 


10% 






77 | P a g e 












DEPARTMENT: CORPORATE SERVICES 




ACTUAL 

CORRECTIVE 

INTERNAL 







PERFORMANCE 

MEASURES 

AUDITORS 

KEY PERFORMANCE AREA 4 - MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 



TAKEN OR 

REASONS 

COMMENTS 








FOR 

VARIANCE 


OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 




PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 2017/18 

BUDGET 






INDICATOR 


2018/19 

TARGETS 

ALLOCATION 






(KPI) 









To enhance 

Number of 

Signed reports 

4 monthly 

1 annual report 

R8 074 

2% 

The 

None 

Achieved 

the revenue 

reports on the 

on the 

reports on the 

on the 

414.00 


department has 



base ofthe 

implementation 

implementation 

implementation 

implementation 



submitted the 



municipality. 

of the revenue 

of the Revenue 

of the revenue 

of the revenue 



updated 



improved 

enhancement 

enhancement 

enhancement 

enhancement 



quarterly 



audit 

strategy for all 

strategy. 

strategy for the 

strategy. 



reports on the 



outcome. 

the revenue 


revenue 




implementation 



promote 

sources 


sources 




of the revenue 



sound 

applicable to 


applicable to 




enhancement 



financial 

the 


the 




strategy 



governance 

and 

management. 

department. 


department. 








ACHIEVEMENT 

STATUS 


Achieved 


78 | P a g e 











Percentage 

1. The annual 

100% 

Documents 

compliance 

and adjustment 

compliance 

have been 

with section 75 

budgets and all 

with section 75 

placed in the 

of MFMA 

budget related 

of MFMA 

municipal 

(documents to 

documents. 

(document to 

website 

be placed on 

2. All budget 

be place on the 


the website) 

related policies. 

website) 



3. All 

Monthly 



performance 

updates 



agreements 
required in 
terms of section 
57(1) (b) ofthe 
Municipal 
Systems Act. 

4. All service 
delivery 
agreements. 

5. All long term- 
borrowing 
contracts. 

6. All supply 
chain 

management 
contracts above 
a prescribed 
value. 

7. All annual 


2% The monthly None Achieved Achieved 

reports have 
been submitted 
for updated 
websites of the 
municipality. 












report. 









Number of 

assets counts 

perform on a 
municipal 

movable assets 

and submitted 

to CFO 

Signed Assets 

count sheets 

12 counts 

performed on 
municipal 

movable assets 

and submission 

to CFO 

None 


1% 

The 

department 
performed 
monthly assets 

counts of 

movable assets 

None 

Achieved 

Achieved 

Percentage of 
training budget 
spent on the 
implementation 
ofthe approved 
work skills plan. 

100% training 
budget spent by 

30 June 2019 

Quarterly 
reports on the 
spending of 
budget for 
work skills plan. 

None 


1% 

The 

department has 
spent 100% of 
the training 
budget for the 
financial year 

under review. 

None 

Achieved 

Achieved 

Compile 
monthly leave 
report. 

Monthly leave 
reports 10 days 

after the end of 

each month. 

12 monthly 
leave reports 
compiled 

None 


1% 

All the 12 
monthly leave 
reports have 
been compiled 

and submitted. 

None 

Achieved 

Achieved 

Ensure timely 
preparation of 

the 

Directorate's 

budget for 
2019/20 based 

on the 

Departmental 

budget 

submitted to 

finance 

department. 

Departmental 
budget 
approved as 
part of the 
annual budget 
by 30June 

2019 

Budget inputs 

submitted to 

Finance 


2% 

The 

departmental 
budget was 
approved as 
the part of the 
municipal 
annual budget 
by 30 June 

None 

Achieved 

Achieved 


80 | P a g e 











approved IDP 






2019. 




Ensure timely 

Departmental 

Department 

Budget inputs 


1% 

The 

None 

Achieved 

Achieved 

preparation of 

adjustment 

adjustment 

submitted to 



departmental 




the 

budget 

budget 

Finance 



adjustment 




Directorate's 

submitted to 

approved as 




budget has 




adjustment 

finance 

part of the 




been approved 




budget for 

department. 

municipal 




as part of the 




2018/19 


adjustment 




municipal 




financial year 


budget by 




adjustment 




based on the 


February 2019. 




budget by 28 




approved 
midyear budget 

and 

performance 

assessment. 






February 2019. 




Attend to 

Percentage of 

95% of issues 

90% of issues 


1% 

The 

The 

Not 

Not Achieved 

corrective as 

issues raised 

raised and 

attended to. 



department 

department 

Achieved 


identified in 

and proposed 

proposed 




achieved 63% 

did not 



external audit 

corrective 

corrective 




of the issues 

submit any 



reports and 

measures 

measures 




raised and 

reasons for 



reduce risk 

attended to. 

attended to 




proposed 

the Non 



areas within 






corrective 

achievement 



three months 






measures by 

ofthe target 



of receipt of 






external 

and 



reports. 






auditors 

corrective 










measures to 










improve 

performance. 




81 | P a g e 











Attend to 

Percentage of 

95% of issues 

90% of issues 


1% 

The 

The 

Not 

Not Achieved 

corrective as 

issues raised 

raised and 

attended to. 



department 

department 

Achieved 


identified in 

and proposed 

proposed 




achieved 38% 

did not 



internal audit 

corrective 

corrective 




of the issues 

submit any 



reports and 

measures 

measures 




raised and 

reasons for 



reduce risk 

attended to. 

attended to 




proposed 

the Non 



areas within 






corrective 

achievement 



three months 






measures by 

ofthe target 



of receipt of 






internal audit. 

and 



reports. 







corrective 










measures to 










improve 

performance. 






TOTAL 


10% 















DEPARTMENT: CORPORATE SERVICES 




ACTUAL 

CORRECTIVE 

INTERNAL 

ACHIEVEMENT 







PERFORMANCE 

MEASURES 

AUDITORS 

STATUS 

KEY PERFORMANCE AREA 5 - GOOD GOVERNANCE AND PUBLIC PARTICIPATION 



TAKEN OR 

REASONS 

COMMENTS 









FOR 

VARIANCE 



OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 





PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 

BUDGET 







INDICATOR 


2018/19 

2017/18 

ALLOCATION 







(KPI) 



TARGETS 







To promote 

Annual 

Approved 

Developed & 

Approved 

R8 074 

5% 

The annual 

None 

Achieved 

Achieved 

and improve 

calendar 

annual calendar 

approved 

annual 

414.00 


calendar of the 




effective 

developed & 


annual calendar 

calendar of 



council and 




linkage 

adopted by 


of council 

council 



council 




between the 

Council, EXCO, 


meetings (July 

meetings 



committee 




community. 

Sec 80 Comm, 


2018) 




meeting has 




stakeholders 

Audit 






been approved 




and the 

Committee, 






byJuly 2018. 




municipality 

Risk Committee 










to ensure 

and MPAC 










accountability 











and 

responsive 

governance 

structures. 

Number of LLF 

Meetings 

Attendance 

register and 

2 LLF Meetings 
per annumfl 

2 Meetings 

held 


5% 

The LLF 

meeting for the 

None 

Achieved 

Achieved 

conducted 

minutes of the 

LLF meetings 

per quarter) 




third and fourth 

quarter have 

been held. 






83 | P a g e 










Implementation 
of a compliance 

checklist 

pertaining to 
key legislation 
requirements 

for the 

department 

Number of 

progress 

reports on the 
implementation 
of a compliance 

checklist. 

4 quarterly 
reports on the 
implementation 

of the 

compliance 

checklist. 

None 

Number of 

Quarterly 

4 quarterly 

Monthly 

consolidated 

consolidated 

consolidated 

reports have 

ward 

reports 

ward 

been 

committee 


committee 

submitted 

reports 


reports. 


submitted 




% distribution 

100% 

100% council 

None 

of the council 

distribution of 

resolutions 


resolution to all 

the council 

distributed 


the relevant 

resolutions to 



officials for 

all relevant 



implementation 

officials 




5% 

Compliance 

The 

Not 

Not Achieved 


checklists have 

department 

Achieved 



not been 

did not 




completed in 

submit any 




the financial 

reasons for 




year under 

the Non 




review. 

achievement 

of the target 

and 

corrective 

measures to 

improve 

performance. 



2% 

The quarterly 

consolidated 

ward 

committee 

reports have 

been submitted 

None 

Achieved 

Achieved 

5% 

All the council 

resolutions for 

the financial 

year have been 

submitted to 

relevant 

officials 

None 

Achieved 

Achieved 


84 | P a g e 











Percentage of 

Percentage of 

100% of the 

None 

resolutions 

resolution 

resolutions 


(Council, Sec. 

implemented 

implemented 


80, 

within the 

on time 


Management) 

required time 



implemented 

within the 

required time 

frames 

frame 



Number of risk 

Reports on the 

12 monthly risk 

Monthly risk 

assessment and 

implementation 

assessment and 

Assessments 

action plan 

of the risk 

action plan 


reviews/ 

management 

reviews/ 


updates 

action 

updates 





TOTAL 


The 

The 

Not 

department did 

department 

Achieved 

not achieved 

did not 


100% 

submit any 


implementation 

reasons for 


of the council 

the Non 


resolution 

achievement 


taken in the 

of the target 


financial year 

and 


under review. 

corrective 



measures to 



improve 

performance. 


Only First 

The 

Not 

quarter risk 

department 

Achieved 

assessment and 

did not 


action plan 

submit any 


reviews have 

reasons for 


been 

the Non 


submitted. 

achievement 

of the target 

and 

corrective 

measures to 

improve 

performance. 



Not Achieved 


Not Achieved 


85 | P a g e 











DEPARTMENT: TECHNICAL SERVICES 

ACTUAL 

CORRECTIVE 

INTERNAL 


PERFORMANCE 

MEASURES 

AUDITORS 



TAKEN OR 

COMMENTS 

KEY PERFORMANCE AREA 1 - MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT 


REASONS FOR 




VARIANCE 



OBJECTIVE 

KEY PERFORMANCE 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 


INDICATOR (KPI) 

MEASUREMENT 

TARGETS 

WITH 2017/18 

BUDGET 





2018/19 

TARGETS 

ALLOCATION 



To enhance 

Number of 

Attendance 

4 Quarterly 

Meetings held 

R 57 623 616 

4% 

The department 

None 

responsiveness 

departmental/divisional 

registers and 

departmental 




held monthly 12 


to citizen's 

meetings are held 

minutes of the 

meetings 




monthly 


priorities and 


meetings 





department 


capabilities of 







meetings and 


delivery of 







submitted the 


quality services, 
quality 







evidence thereof. 


management 

and 

Submit monthly report to 

Monthly report 

12 Monthly 

12 monthly 


3% 

The management 

The council 

administrative 

management on the 

submitted to 

performance 

reports 



meeting did not 

took a 

practices 

actual performance 

management 

report 




convene on a 

resolution that 


against the SDBIP 






monthly basis to 

the monthly 








create a platform 

performance 








for discussion of 

reports should 








monthly 

be submitted 








performance 

to the Mayor 








reports. 

or oversight. 
Reports will be 

submitted to 

council for any 









non- 









compliance to 

the resolution. 


Achieved 


Not Achieved 


ACHIEVEMENT 

STATUS 


Achieved 


Not Achieved 


86 | P a g e 











Number of Technical 

Quarterly reports 

All identified 

None 


3% 

The department 

The 

officials provided with 

on the 

technical 




submitted a 

municipality 

skills development 

implementation 

services officials 




singed letter 

received 

training / capacity 

of the works skills 

attends as per 




indicating that 

approval from 

development as 

plan 

the Workplace 




the planned 

LGSETA for 

directed/ identified by 


Skills Plan 




trainings for the 

training of AET 

the Director Community 


(Quarterly) as 




officials in the 

fortask level 

Services 


directed by the 




department did 

1-4 but 



Director 




not take place 

employees 



Community 




due to 

were not 



Services 




unavailability of 
budget. The 
training budget 

was committed to 

payforthe 

councillors 

studying with 
University of Fort 

Hare. 

interested. 


TOTAL 10% 


Not Achieved 


Not Achieved 


87 | P a g e 











DEPARTMENT: TECHNICAL SERVICES 





ACTUAL 

CORRECTIVE 








PERFORMANCE 

MEASURES 

KEY PERFORMANCE AREA 2 - INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY 




TAKEN OR 

REASONSFOR 









VARIANCE 

OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 



PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 

BUDGET 





INDICATOR 


2018/19 

2017/18 

ALLOCATION 





(KPI) 



TARGETS 





To ensure 

Limit water 

Water losses 

Water losses 

25% water 

R 6 973 443 

3% 

The water losses 

The 

access to 

network losses 

reduced to 15% 

limited to 15% 

losses. 



as at 30 June 

municipality will 

clean, quality 

to less than 15% 

and below. 





2018 are 7, 5%. 

fast track the 

and 

by 30 June 2018 







implementation 

sustainable 

(Difference 






The water losses 

of the bulk 

water services 

between water 






as at 30 June 

water project 

to 

supplied and 






2019 have 

aimed at 

households. 

water billed) ( 






increased to 

assisting the 

public 

number of 






18.42%. 

municipality in 

facilities and 

kilolitres water 







reducing the 

businesses. 

purchased/ 







water losses 


purified - 

number of 

kilolitres water 

sold) / number 

of kilolitres 

water 

purchased/ 
purified x 100} 

in both towns. 







encountered. 


INTERNAL 

AUDITORS 

COMMENTS 


Not 

Achieved 


ACHIEVEMENT 

STATUS 


Not Achieved 


88 | P a g e 











Promote 
effective and 
efficient sport 
and 

recreation 

development. 


Supply of clean. 

% of all 

100% of 

quality and 

formalised 

formalised 

sustainable 

households. 

households. 

water services 

public facilities 

public facilities 

to all formalised 

and businesses 

and businesses 

households. 

with access to 

supplied with 

public facilities 

clean, quality 

clean, quality 

and businesses 

and sustainable 

and 


water services. 

sustainable 



water services 


12523 

households 


3% 


Construction of 

% of budget 

100% 

a cricket pitch 

spent on 

expenditure by 

in Phahameng 

construction of 

30 June 2018 

in terms of the 

cricket pitch in 

(Actual 

approved 

Phahameng by 

expenditure 

capital budget. 

30 June (Actual 

divided by the 

(Actual 

expenditure 

total approved 

expenditure 

divided by the 

budget) x 100} 

divided by the 

total approved 


total approved 

budget) x 100} 


budget) x 100} 




None 


R7 600 
000.00 


3% 


94.17% of 

The department 

formalised 

did not provide 

households has 

reasons for non- 

access to clean. 

achievement of 

quality and 

the target and 

sustainable 

actions to 

water losses. 

improve 

(13705-335- 

performance. 

464)/13 370 


100% of the 


public facilities 


and businesses 


have access to 


clean, quality 


and sustainable 


water services. 


The 

100% 

construction of 

completion of 

cricket pitch is 

the cricket pitch 

82% complete. 

could not be 


Achieved 


Achieved 


Not 

Achieved 


Not Achieved 


attained due to 
the extension of 
time claim. The 
department 
should include 
this indicator as 
part of 2019/ 
2020 financial 
year. 


89 | P a g e 











To ensure 

Rehabilitation 

% budget spent 

100% 

30% 

R 790 093,77 

10% 

The 

accessible 

and upgrading 

on the 

expenditure 




construction of 

road 

of roads and 

rehabilitation 

for the 




2km road has 

infrastructure 

storm water in 

and upgrading 

upgrading of 




been100% 

and increased 

Phahameng in 

of roads and 

the 2km road 




completed by 

life span 

terms of the 

storm water in 

in Phahameng 




30 June 2019. 

through 

approved 

Phahameng. 

by 30June 





proper 

capital budget 


2019 





construction 

by 30 June 







and 

2019(Actual 







maintenance 

expenditure 







of roads and 

divided by the 







storm water 

total approved 







drainages. 

budget) x 100} 







To ensure 

Construction of 

% of budget 

60% 

None 

R 13 432 

5% 

The 

access to safe 

Sewer 

spent on 

expenditure by 


406,23 


construction of 

and 

connection and 

construction of 

30 June 2019 




sewer 

sustainable 

building of 

sewer 

(Actual 




connections and 

sanitation 

toilet structures 

connections and 

expenditure 




building of toilet 

services to 

in Tikwana for 

building of toilet 

divided by the 




structures in 

households. 

499 sites 

structures in 

total approved 




Tikwana is 69, 

public 

(Actual 

Tikwana for 499 

budget) x 100} 




7% complete by 

facilities and 

expenditure 

sites (Actual 





30 June 2019. 

households. 

divided by the 

expenditure 







total approved 

divided by the 







budget) x 100} 

total approved 
budget) x 100} 







None 


None 


Achieved 


Achieved 


Achieved 


Achieved 


90 | P a g e 











To ensure 

access to 

clean, quality 

and 

sustainable 

water services 

to 

households, 

public 

facilities and 

businesses. 

Completion of 
phase 3 and 4 

for the 

upgrading of 

bulk water 

supply in 
Hoopstad and 

Bultfontein 

% budget spent 

on the 

completion of 
phase 3 and 4 of 
the upgrading of 

bulk water 

supply in 

Hoopstad and 

Bultfontein. 

(Actual 
expenditure 
divided by the 
total approved 
budget) x 100} 

60% 

completion of 
phase 03 and 

04 by 30 June 

2019 

100% 

completion of 
phase 02 by 

30 June 2018 

R 20 000 

000,00 

3% 

0% 

implementation 
of upgrading of 

the bulk water 

supply in 

Hoopstad and 

Bultfontein has 

been reported. 

The department 

submitted a 

letter indicating 

that the 

adjudication 

committee did 

convene and 

could not reach 

conclusion as a 

result the 

consultant 

could not be 

appointed. 

Not NotAchieved 

Achieved 

To ensure 

Provision of 

% of all 

90% of all 

12 523 

R 12 299 

2% 

90% of the 

None 

Achieved Achieved 

access to safe 

safe and 

formalised 

formalised 

households 

066,00 


formalised 



and 

sustainable 

households. 

households. 




households 



sustainable 

sanitation to all 

public facilities 

100% of public 




have access to 



sanitation 

formalised 

and businesses 

facilities and 




safe and 



services to 

households. 

with access to 

businesses 




sustainable 



households. 

public facilities 

safe and 

with access to 




sanitation 



public 

and households 

sustainable 

safe and 




services. 



facilities and 


sanitation 

sustainable 




(13705-335- 



households. 


services. 

sanitation 




499-464-832)/ 





(number of 

services 




13370.100% of 





households with 





public facilities 





access/ number 





and businesses 





oftotal 





have access to 





formalised 





safe and 





households) x 





sustainable 





100 





sanitation 




91 | P a g e 











services. 


To ensure 

Provision of 

% of all 

100% of all 

None R7 600 

1% 92.80% ofthe 

The department 

provision of 

sustainable 

formalised 

formalised 

000.00 

formalised 

did not provide 

sustainable 

electricity 

households. 

households. 


households 

reasons for non- 

electricity 

services to all 

public facilities 

public facilities 


have access to 

achievement of 

services to all 

formalised 

and businesses 

and businesses 


electricity 

the target and 

household, 

households. 

in Bultfontein 

in Bultfontein 


services. 

actions to 

public 

public facilities 

and Hoopstad 

and Hoopstad 



improve 

facilities and 

and businesses 

Towns with 

Towns with 


100% of public 

performance. 

businesses. 

in Bultfontein 

access to 

access to 


facilities and 



and Hoopstad 

electricity 

electricity 


businesses have 



towns 

services 

services 


access to 




(number of 

(number of 


electricity 




households with 

households 


services. 




access/ number 

with access/ 






oftotal 

number of 






formalised 

total 






households) x 

formalised 






100 

households) x 





Not 

Achieved 


100 


92 | P a g e 


Not Achieved 











Limit electricity 

Electricity losses 

Limit 

None R 35 179 

1% The electricity 

losses to less 

by 30 June 2018 

electricity 

950,00 

losses as at 30 

than 15% by 30 

(number of 

losses to less 


June 2018 are 

June2018 

electricity units 

than 15% by 


15%The 

(number of 

purchased - 

30 June 2018 


electricity losses 

electricity units 

number of 

(number of 


as at 30 June 

purchased - 

electricity units 

electricity 


2019 have 

number of 

sold)/ number 

units 


decreased to 

electricity units 

of electricity 

purchased - 


13.77%. 

sold)/ number 

units purchased) 

number of 



of electricity 

x 100 

electricity 



units 


units sold)/ 



purchased) x 


number of 



100 


electricity 





units 





purchased)x 




None 


Achieved 


100 


To ensure the 

Number of 

Proof of 

6 Reports 

provision of 

reports sent to 

submission of 

submitted to 

facilities that 

the National 

the reports to 

the National 

are adequate 

Waste 

National Waste 

Waste 

to treat. 

Information 

Information 

Information 

recover & 

System for 

System. 

system (July 

dispose waste 

Hoopstad 


18-June 19) 

in a manner 

landfill 



consistent 

regarding 



with 

quantities of 



applicable 

waste handled 



regulations 

at the site. 




None 

R9 113 

1% 

The 6 monthly 

None 


915,00 


reports have 



been submitted 
to the National 
Waste 
Information 
System for 
Hoopstad 
landfill 
regarding 
quantities of 
waste handled 
at the site. 


Achieved 


Achieved 


Achieved 


93 | P a g e 












Reviewed 

Integrated 

Waste 

Management 

Plan 

Council 

approved 

integrated 

waste 

management 

plan 

1 Annual 

Review of 

Integrated 

Waste 

Management 

Plan (May 19) 

To ensure the 

Reviewed 

Reviewed 

1 Annual 

sustainable 

Integrated 

environmental 

Review of 

use of natural 

Environmental 

management 

Integrated 

resource 

Management 

plan 

Environmental 

within 

Plan 


Management 

municipal 



Plan (May 19) 

area while 




promoting 




social and 




economic 




development 




To ensure 

Cleaning and 

Clean and 

Clean 1 

accessto 

maintenance of 

maintained 

recreational 

regular and 

municipal 

municipal 

park 

sustainable 

recreational 

recreational 

(quarterly) in 

refuse 

parks 

parks (signed 

both towns 

removal 


reports and 


services to all 


pictures for the 


household, 


cleaned 


public 


recreational 


facilities and 


parks) 



None 1% The council None Achieved 

resolution 
approving the 
integrated 
waste 

management 
plan has been 
submitted. 


None 1% The council None Achieved 

resolution 
approving the 
environmental 
management 
plan has been 
submitted. 


2 parks 1% 1 recreational None Achieved 

park has been 
cleaned and 
maintained in 
the financial 
year under 
review. 


Achieved 


Achieved 


Achieved 


94 | P a g e 











businesses 


Biannual 

Cleaning and 

maintenance of 

municipal 

cemeteries 

Clean and 

maintained 

municipal 

cemeteries 

(signed reports 
and pictures for 

the cleaned 

municipal 

cemeteries) 

4 Cleaned and 

maintained 

municipal 

cemeteries in 

both towns 

4 cemeteries 

Cleaning and 

Clean and 

5 cleaned and 

5 open spaces 

maintenance of 

maintained 

maintained 


municipal Open 

municipal open 

municipal 


Spaces 

spaces (signed 
reports and 
pictures for the 

cleaned 

municipal open 
spaces) 

Open Spaces 


Clean and 

Cleaned and 

4 municipal 

4 stadiums 

maintained 

maintained 

stadiums 


municipal 

municipal 

cleaned and 


Stadiums 

stadiums (signed 
reports and 
pictures for the 

cleaned 

municipal 

Stadiums) 

maintained 

per quarter. 



1% 4municipal None Achieved 

cemeteries have 
cleaned and 
maintained in 
the financial 
year under 
review. 


1% 5 municipal None Achieved 

open spaces 
have been 
cleaned and 
maintained in 
the financial 
year under 
review. 


1% 4municipal None Achieved 

stadiums for 
both towns 
have been 
cleaned and 
maintained for 
the financial 
year under 
review. 


95 | P a g e 


Achieved 


Achieved 


Achieved 











Weekly 

% of all 

100% of all 

12 523 

collection of 

formalised 

formalised 

Households 

domestic waste 

households. 

households. 


to all formalized 

public facilities 

public facilities 


residential 

and businesses 

and businesses 


areas, public 

with access to 

with access to 


facilities and 

waste collection 

refuse removal 


businesses 

services 

services 



(number of 

(number of 



households with 

households 



access/ number 

with access/ 



oftotal 

number of 



formalised 

total 



households) x 

formalised 



100 

households) x 




100 



Number of 

Attendance 

4 reports 

4 campaigns 

environmental 

registers and 

awareness 


management 

signed reports. 

campaigns 


awareness 


conducted (2 


campaigns & 


in 2nd quarter 


activities 


and 3rd 


conducted ( 


quarter) 


Quarterly) 





100% of the 

formalised 

households 

have access to 

weekly refuse/ 

waste removal 

services (13 705 
- 335)/ 13370. 

None 

Achieved 

Achieved 

100% of the 

public facilities 

and businesses 

have access to 

weekly refuse/ 
waste removal 

services. 




3 environmental 

1 awareness 

Not 

Not Achieved 

management 

campaign 

Achieved 


awareness 

report does not 



campaigns have 

have an 



been 

attendance 



conducted. 

register. Proper 
record keeping 

should be 

encouraged and 
implemented. 




96 | P a g e 











To ensure 

Cleaning of CBD 

Cleaned CBD 

accessto 

streets in 

streets (signed 

regular and 

Bultfontein and 

reports 

sustainable 

Hoopstad 

indicating the 

refuse 


names of 

removal 


streets/ areas 

services to all 

household, 

public 

facilities and 

businesses 


cleaned. 


Cleaned CBD N/A 1% 

streets in 
Bultfontein 
and Hoopstad 


The CBD streets None Achieved 

in both 

Bultfontein and 
Hoopstad have 
been cleaned. 


To promote 

Number of 

Approved EPWP 

1 Reviewed 

Approved 

effective 

reviewed and 

plan by the 

and approved 

EPWP Plan 

EPWP with 

approved EPWP 

Municipal 

Plan by 31 


the aim of 

Plan Municipal 

Manager 

March 2019 


improved Job 

creation 

Manager 





2% The EPWP plan 

is not reviewed 
and approved 
by the 
Municipal 
Manager. 


The department Not 

did not provide Achieved 

reasons for non- 

achievement of 

the target and 

actions to 

improve 

performance. 


TOTAL 


43% 


Achieved 


Not Achieved 


97 | P a g e 











DEPARTMENT: TECHNICAL SERVICES 


ACTUAL 

PERFORMANCE 


KEY PERFORMANCE AREA 3 - LOCAL ECONOMIC DEVELOPMENT 


OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 


PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 2017/18 

BUDGET 



INDICATOR (KPI) 


2018/19 

TARGETS 

ALLOCATION 



CORRECTIVE 
MEASURES 
TAKEN OR 
REASONS 
FOR 

VARIANCE 


INTERNAL 

AUDITORS 

COMMENTS 


Create an 

Percentage of 

The value of 

30% of the 

30% allocated 

R7151 5% 

Maximum of 

The 

environment 

the capital 

contracts 

2018/19 

to local service 

100,00 

30% of the 

municipality 

that promotes 

budget awarded 

awarded to local 

capital 

providers 


capital budget 

should speed 

development 

to local service 

service providers 

budget 



was allocated to 

up the 

of the local 

providers 

divided total 

awarded to 



local service 

process of 

economy and 


capital 

local 



providers. 

appointing 

facilitate job 


expenditure 

service 




the sub- 

creation. 


multiplied by 100 

providers 




contractor for 



(appointment 





the 1.3 KM in 



letters of sub- 





Phahameng. 



contractors) 







Percentage of 

100% local 

100% of 

100% of 

R1000 5% 

100% of the 

None 


unskilled labour 

unskilled labour 

unskilled 

unskilled 

000,00 

unskilled labour 



in all the capital 

appointments is 

labour on 

labour 


appointed in all 



projects of the 

local based. 

all the 

(ongoing) 


the capital 



Municipality are 


capital 



projects is from 



from the local 


projects 



local. 



municipality area 


from the 








local 








municipal 






Achieved 


Achieved 


ACHIEVEMENT 

STATUS 


Achieved 


Achieved 


98 | P a g e 














area 












TOTAL 


10% 






DEPARTMENT: TECHNICAL SERVICES 



ACTUAL CORRECTIVE 

PERFORMANCE MEASURES 

INTERNAL 

AUDITORS 

COMMENTS 

ACHIEVEMENT 

STATUS 

KEY PERFORMANCE AREA 4 - MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 

TAKEN OR 

REASONS 

FOR 

OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 2017/18 

TARGETS 

ANNUAL WEIGHT VARIANCE 

BUDGET 

ALLOCATION 



To enhance 

Ensure timely 

Departmental 

Departmental 

Budget inputs 

R57 623 3% The None 

Achieved 

Achieved 

the revenue 

preparation of 

budget 

budget 

submitted to 

616.00 departmental 



base of the 

the 

submitted to 

approved as 

Finance 

budget was 



municipality. 

Directorate's 

finance 

part of the 


approved as 



improved 

budget for 

department. 

annual budget. 


part of the 



audit 

2019/20 based 




annual budget 



outcome. 

on the approved 




for2019/ 20 



promote 

IDP 




financial year. 



sound 








financial 








governance 








and 








management. 









99 | P a g e 












Ensure timely 

Departmental 

Department 

Budget inputs 


3% 

The 

None 

Achieved 

Achieved 

preparation of 

adjustment 

adjustment 

submitted to 



departmental 




the 

budget 

budget 

Finance 



adjustment 




Directorate's 

submitted to 

approved as 




budget was 




adjustment 

finance 

part of the 




approved as 




budget for 

department. 

municipal 




part of the 




2019/20 


adjustment 




adjustment 




financial year 


budget by 




budget for 




based on the 


February 2019. 




2019/20 




approved 
midyear budget 

and 

performance 

assessment. 






financial year. 




Submission of 

Proof of 

D_forms 

Submitted D- 


3% 

The D-forms 

None 

Achieved 

Achieved 

D-Forms to 

submission of 

submitted to 

Forms 



have been 




NERSA (October 

the D-forms to 

NERSA by 




submitted to 




2018) 

NERSA 

October 2018 




NERSA by 31 

October 2018 




Number of 

Signed Assets 

6 counts 

None 


2% 

The 6 monthly 

None 

Achieved 

Achieved 

assets counts 

count sheets 

performed on 




assets counts 




perform on a 


municipal 




have been 




municipal assets 


assets and 




conducted. 




and submitted 


submission to 




(Only March 




to CFO 


CFO 




signed asset 





counts sheets 
have been 
submitted) 


100 | P a g e 











Perform 

condition 

assessment on 

fleet and 

infrastructure 

assets and 

submit a report 

to the CFO 

Signed condition 

assessment 

sheets 

Condition 

assessment 

performed on 

all vehicles and 

infrastructure 

assets by 30 

June 2019 

None 

Number of 

Singed copies of 

12 Inventory 

12 Counts 

inventory count 

inventory counts 

counts (Game, 

conducted 

conducted 

(Game, diesel, 
water, stores) 

sheets. 

diesel, water, 
stores) (3 per 
quarter) 


Attend to 

Percentage of 

95% of issues 

90% of issues 

corrective as 

issues raised and 

raised and 

attended to. 

identified in 

proposed 

proposed 


external audit 

corrective 

corrective 


reports and 

measures 

measures 


reduce risk 

areas within 

three months of 

receipt of 
reports. 

attended to. 

attended to 



2% The conditional None Achieved 

assessments for 
fleet and 
infrastructure 
assets were 
conducted. 


2% The monthly None Achieved 

inventory 
counts have 
been performed 
and submitted. 


1 % The department None Achieved 

achieved 90% of 
the issues and 
proposed 
corrective 
measures by 
external 
auditors. 


Achieved 


Achieved 


Achieved 


101 | P a g e 











Attend to 

Percentage of 

95% of issues 

90% of issues 

corrective as 

issues raised and 

raised and 

attended to. 

identified in 

proposed 

proposed 


internal audit 

corrective 

corrective 


reports and 

measures 

measures 


reduce risk 

areas within 

three months of 

receipt of 
reports. 

attended to. 

attended to 



1% The department 

did not achieve 
90% of the 
issues and 
proposed 
corrective 
measures by 
internal auditors 


The Not 

department Achieved 

did not 

submit any 

reason for 

non- 

achievement 
of the target 
and actions to 
improve 
performance. 


Number of 
EPWP reports 
submitted to 
CoGTA 


Proof of 
submission of 
EPWP reports to 
CoGTA 


12 EPWP 
reports 
prepared & 
submitted (3 
per quarter) to 
CoGTA 


12 Reports 
submitted 


2% The EPWP None Achieved 

reports have 
been submitted 
to CoGTA (The 
report for July 
was not 
submitted) 


Number of MIG 
reports 
submitted to 
CoGTA 


Proof of 
submission of 
MIG reports to 
CoGTA 


12 MIG reports 12 Reports 
prepared & submitted 
submitted (3 
per quarter) 


3% The MIG reports None Achieved 

have been 
submitted to 
CoGTA on 
monthly basis. 


Report spending 
to National 
Treasury on 
infrastructure 
grant 


Proof of 
submission of 
MIG reports to 
National 
Treasury 


12 MIG reports 12 reports 
submittedto submitted 
National 
Treasury 


1% The MIG report None Achieved 

for the financial 
have been 
submitted to 
National 


Not Achieved 


Achieved 


Achieved 


Achieved 


102 | P a g e 











Treasury 


Number of 

Proof of 

12 Reports/ 

72 reports/ 

reconciliations 

submission of 

reconciliations 

reconciliation 

submitted on 

the 

submitted on 

submitted on 

RBIG, ACIP, 

reconciliations 

infrastructure 

infrastructure 

EPWP, EEDSM, 

to the CFO 

grants to the 

grants 

INEP, MIG 


CFO 


infrastructure 




grants to the 




CFO 





2% All the reports/ None Achieved Achieved 

reconciliations 
have been 
submitted on 
infrastructure 
grants to the 
CFO (October 
2019 

reconciliation 
have not been 
received) 


TOTAL 


25% 


103 | P a g e 











DEPARTMENT: TECHNICAL SERVICES 




ACTUAL 

CORRECTIVE 

INTERNAL 

ACHIEVEMENT 







PERFORMANCE 

MEASURES 

AUDITORS 

STATUS 

KEY PERFORMANCE AREA 5 - GOOD GOVERNANCE AND PUBLIC PARTICIPATION 



TAKEN OR 

REASONS 

COMMENTS 









FOR 

VARIANCE 



OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 





PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 2017/18 

BUDGET 







INDICATOR 


2018/19 

TARGETS 

ALLOCATION 







(KPI) 










To promote 

Number of 

Attendance 

4 Meetings for 

None 

R50 000.00 

1% 

The IDP and 

None 

Achieved 

Achieved 

and improve 

meeting on 

register for the 

public 




budget public 




effective 

public 

public 

consultation on 




consultations 




linkage 

consultation on 

consultations. 

the 2019/ 2020 




have been 




between the 

the 2019/ 2020 


annual Budget 




submitted and 




community. 

annual budget 


and tariffs by 30 




the department 




stakeholders 

and the 

and tariffs 


June 2019 




did attend. 




municipality 

to ensure 

Number of 

Signed reports 

4 quarterly 

None 

R50 000.00 

1% 

Reports on the 

None 

Achieved 

Achieved 

accountability 

reports 

on the 

reports 




implementation 




and 

published on 

implementation 

published on 




of sector plans 




responsive 

governance 

structures. 

the 

implementation 

of approved 
municipal sector 

the 

implementation 




have been 

submitted. 




of the approved 
municipal sector 

plans published. 

of the approved 
municipal sector 









plans 


plans 









104 | P a g e 











Implementation 
of a compliance 
checklist 
pertaining to 
key legislation 
requirements 
for the 
department 


Number of 
progress reports 
on the 

implementation 
of a compliance 
checklist. 


4 quarterly 
reports on the 
implementation 
of the 
compliance 
checklist. 


None 


Number of risk 
assessment and 
action plan 
reviews/ 
updates 


Reports on the 
implementation 
of the risk 
management 
action 


12 monthly risk 
assessment and 
action plan 
reviews/ 
updates 


R57 623 
616.00 


Percentage of 

Percentage of 

90% of the 

resolutions 

resolution 

resolutions 

(Council, Sec. 

implemented 

implemented on 

80, 

within the 

time 

Management) 

required time 


implemented 

frame 


within the 



required time 



frames 




None 


Monthly risk 
Assessments 


1% 

First and second 

The 

Not 

Not Achieved 


quarter reports 

department 

Achieved 



on the 

did not 




implementation 

provided 




of the 

reasons for 




compliance 

non- 




checklists were 

achievement 




not conducted. 

of the target 

and actions 

to improve 
performance. 



1% 

The department 

The 

Not 

Not Achieved 


did not achieve 

department 

Achieved 



90% 

did not 




implementation 

provided 




of the 

reasons for 




resolutions 

non- 




made by 

achievement 




council. 

of the target 

and actions 

to improve 
performance. 



1% 

Quarterly risk 

The 

Not 

Not Achieved 


assessment and 

department 

Achieved 



action plan 

did not 




review were not 

provided 




implemented. 

reasons for 





non- 





achievement 





of the target 




105 | P a g e 











and actions 
to improve 
performance. 


Ensure that the Copiesofthe 

Technical signed service 

Services develop level 

all Service Level agreements. 

Agreements 

with the 

appointed 

service provider. 


AIISLAmustbe None 

signed and 

completed 

within 14 

working days 

after the 

appointment. 


1 % The service level None Achieved 

agreements 
have been 
signed for the 
capital projects. 


TOTAL 


5% 


106 | P a g e 


Achieved 











KEY PERFORMANCE AREA 1 - MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT 

ACTUAL 

PERFORMANCE 

CORRECTIVE 

MEASURES 

INTERNAL 

AUDITORS 

ACHIEVEMENT 

STATUS 

OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

ANNUAL 

BUDGET 

ALLOCATION 

WEIGHT 


TAKEN OR 

REASONS 

FOR 

VARIANCE 

COMMENTS 


To enhance 

responsiveness 

to citizen's 

priorities and 
capabilities of 
delivery of 
quality 

Number of 

departmental 
meetings held 

Attendance 

registers and 

minutes of the 

meetings 

Quarterly 

departmental 

meetings 

4 Meetings 

R 19 807 

825,33 

7% 

The 

department 
had 4 quarterly 
meetings in the 
financial year 

under review. 

None 

Achieved 

Achieved 

services, 

quality 

management 

and 

administrative 

practices 

Submit 

monthly report 

to 

management 

on the actual 

performance 
against the 

SDBIP 

Monthly report 

submitted to 

management 

12 Monthly 

performance 

report 

submitted to 

management 

against the 

SDBIP 

12 monthly 
reports 


8% 

The 

management 

meeting did 

not convene on 

a monthly basis 

to create a 

platform for 

discussion of 

The council 

took a 

resolution 

that the 

monthly 

performance 

reports 

should be 

Not 

Achieved 

Not Achieved 


monthly submittedto 

performance the Mayor 

reports. or oversight. 

Reports will 
be 

submitted to 
council for 



















any non- 

compliance 

to the 

resolution. 







TOTAL 


15% 




























DEPARTMENT: FINANCE 






ACTUAL 

CORRECTIVE 

INTERNAL 

ACHIEVEMENT 








PERFORMANCE 

MEASURES 

AUDITORS 

STATUS 

KEY PERFORMANCE AREA 2 - INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY 



TAKEN OR 

REASONS 

COMMENTS 










FOR 

VARIANCE 



OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 





PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 2017/18 

BUDGET 







INDICATOR 


2018/19 

TARGETS 

ALLOCATION 







(KPI) 










Maintain and 

Appropriate 

Approved 

R10 071 

R9 156 000 

R 7 448 

4% 

The 

The targeted 

Not 

Not Achieved 

upgrade 

funds for 

budget for 

OOOallocated 

allocated for 

000,00 


department 

R10 071 000 

achieved 


basic 

repairs and 

repairs and 

for repairs 

repairs and 



has only 

allocation for 



infrastructure 

maintenance of 

maintenance 

and 

maintenance 



allocated R7 

repairs and 



at local level 

infrastructure 


maintenance 

for 2017/ 2018 



448 000 for 

maintenance 




assets in the 


for 2019/ 

Financial year 



repair and 

could not be 




2019/2020 


2020 

in the Medium 



maintenance 

achieved due 




Medium term 


Financial year 

term revenue 



for 2019/ 2020 

to cost 




revenue and 


in the 

and 



budget year. 

cutting 




expenditure 


Medium 

expenditure 




measures 




framework. 


term revenue 

framework for 




implemented 






and 

infrastructure 




when 






expenditure 

framework 

assets. 




budgeting. 






for 





The target 






infrastructure 





will be 






assets. 





reviewed 

and included 

in the 2019/ 

2020 





















planning. 



To ensure 

Provide 

3790 registered 

3790 

4388registered 

R1520 

4% 

The 

The indigent 

Not 

Not Achieved 

free access to 

registered 

indigent 

registered 

households to 

000.00 


department 

number was 

achieved 


clean, quality 

indigent 

households 

indigents 

be provided 



has allocated 

overstated in 



and 

households 

provided with 

households 

with free 



free basic 

the reports 



sustainable 

with free basic 

FBW(System 

to be 

access to 



water to 3576 

and the 



water 

water 

generated 

provided 

water. 



indigent 

reports will 



services to 


report showing 

with free 




households 

be reviewed 



households 


amount for 

access to 





properly to 





indigent 

water 





verify the 





households 






number 





beneficiaries of 






disclosed. 





FBW) 









To ensure 

Provide 

3790 registered 

3970 

4388 

R3 120 

4% 

The 

The indigent 

Not 

Not Achieved 

provision of 

registered 

indigent 

registered 

registered 

000.00 


department 

number was 

achieved 


free 

indigent 

households 

indigents 

households to 



has allocated 

overstated in 



sustainable 

households 

provided with 

households 

be provided 



free basic 

the reports 



electricity 

with free basic 

FBE (System 

to be 

with free 



water to 3576 

and the 



services to 

electricity 

generated 

provided 

access to 



indigent 

reports will 



indigent 


report showing 

with free 

Electricity. 



households 

be reviewed 



household. 


number of 

access to 





properly to 





indigent 

electricity 





verify the 





households 






number 





beneficiaries of 






disclosed. 





FBE) 










110 | P a g e 











To ensure 

Provide 

3790 registered 

3790 

4388 

R 1 650 

4% 

The 

The indigent 

Not 

free access to 

registered 

indigent 

registered 

registered 

000,00 


department 

number was 

achieved 

safe and 

households 

households 

indigents 

households to 



has allocated 

overstated in 


sustainable 

with free basic 

provided with 

households 

be provided 



free basic 

the reports 


sanitation 

sanitation 

FBS (System 

to be 

with free 



sanitation to 

and the 


services to 

services 

generated 

provided 

access to 



3576 indigent 

reports will 


indigent 


report showing 

with free 

sanitation. 



households 

be reviewed 


households. 


number of 

access to 





properly to 




indigent 

sanitation 





verify the 




households 

services 





number 




beneficiaries of 






disclosed. 




FBS) 









To ensure 

Provide 

3790 registered 

3790 

5044 

R 1 500 

4% 

The 

The indigent 

Not 

free access to 

registered 

indigent 

registered 

registered 

000,00 


department 

number was 

achieved 

regular and 

households 

households 

indigents 

households to 



has allocated 

overstated in 


sustainable 

with free basic 

provided with 

households 

be provided 



free basic 

the reports 


refuse 

refuse removal 

FBRR (System 

to be 

with free 



refuse removal 

and the 


removal 

services 

generated 

provided 

access to 



to 3576 

reports will 


services to 


report showing 

with free 

refuse 



indigent 

be reviewed 


indigent 


number of 

access to 

removal. 



households 

properly to 


household 


indigent 

refuse 





verify the 




households 

removal 





number 




beneficiaries of 

services 





disclosed. 




FBRR) 












TOTAL 


20% 





Not Achieved 


Not Achieved 


111 | P a g e 











DEPARTMENT: FINANCE 




ACTUAL 

PERFORMANCE 

CORRECTIVE 

MEASURES 

TAKEN OR 

REASONS 

FOR 

VARIANCE 

INTERNAL 

AUDITORS 

COMMENTS 

ACHIEVEMENT 

STATUS 

KEY PERFORMANCE AREA 3 - LOCAL ECONOMIC DEVELOPMENT 

OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

ANNUAL WEIGHT 

BUDGET 

ALLOCATION 

Create an 

Percentage of 

The value of 

30% of the 

30% allocated 

R7151 5% Maximum of 

The 

Achieved 

Achieved 

environment 

the capital 

contracts 

2018/19 

to local 

100,00 30% of the 

municipality 



that 

budget 

awarded to 

capital 

service 

capital budget 

should 



promotes 

awarded to 

local service 

budget 

providers 

was allocated 

speed up 



development 

local service 

providers 

awarded to 


to local service 

the process 



of the local 

providers 

divided total 

local service 


providers. 

of 



economy 


capital 

providers 



appointing 



and facilitate 


expenditure 




the sub- 



job creation. 


multiplied by 




contractor 





100 




for the 1.3 





(appointment 




KM in 





letters of sub- 




Phahameng. 





contractors) 

















Appropriate 

Approved 

R60 000 

R50 000 

R 70 500,00 5% The None Achieved Achieved 

funds for local 

budget for Local 

allocated for 

allocated for 

department 

economic 

Economic 

local 

local 

has allocated 

development in 

development 

economic 

economic 

R70 500 for 

the 2019/ 2020 

Unit 

development 

development 

LED in the 

Medium term 


for 2019/ 

for 2018/ 

2019/2020 

revenue and 


2020 

2019 Financial 

budget year. 

expenditure 


Financial 

year in the 


framework. 


year in the 

Medium term 




Medium 

revenue and 




term 

expenditure 




revenue and 

framework 




expenditure 





framework 






TOTAL 

10% 


113 | P a g e 











DEPARTMENT: FINANCE 





ACTUAL 

CORRECTIVE 

INTERNAL 

ACHIEVEMENT 







PERFORMANCE 

MEASURES 

AUDITORS 

STATUS 








TAKEN OR 

COMMENTS 


KEY PERFORMANCE AREA 4 - MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 



REASONS 










FOR 

VARIANCE 



OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 





PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 2017/18 

BUDGET 







INDICATOR 


2018/19 

TARGETS 

ALLOCATION 







(KPI) 










To enhance 

Number of 

Council 

10 Budget 

10 Policies 

R 19 807 

2% 

The 

None 

Achieved 

Achieved 

the revenue 

budget related 

resolution 

related policies 

approved with 

825,33 


department has 




base of the 

policies 

approving the 

(Virement, 

the budget 



submitted all 




municipality. 

approved by 

budget and the 

SCM, Debt 




the budget 




improved 

Council 

budget related 

collection. 




related policies 




audit 


policies. 

Rates, Indigent, 




approved by 




outcome. 



tariffs, funds & 




council. 




promote 



reserve. 








sound 



investment. 








financial 



banking and 








governance 



writing off bad 








and 



debts policy) 








management. 



submitted to 

the Municipal 
Manager by 

June 2019 









114 | P a g e 











Approved 

schedule of 

budget 

timelines & IDP 

Review Process 

Plan 

Council 

resolution 

approving the 
budget time 

lines 

Approved 

budget 

schedule times 

& IDP process 
plan (August 
2018) - for 
2019/2020 

Budget 

Schedule 

prepared with 

the Process 

Plan - 

Approved 

August 2018 

Compiled and 

Approved 

Compiled and 

Approved 

consolidated 

municipal 

consolidated 

budget 

municipal 

budget (council 

municipal 


budget. 

resolution) 

budget by 30 

June 2019 


Compiled and 

Approved 

Compiled and 

Approved 

consolidated 

municipal 

consolidated 

budget 

municipal 

adjustment 

municipal 


Adjustment 

budget (council 

Adjustment 


budget. 

resolution) 

budget 28 
February 2019 



2% 

The budget 

schedule times 

& IDP process 
plan has been 
approved by 
August 2018 for 
2019/2020 

processes 

None 

Achieved 

Achieved 

2% 

The municipal 
budget has 

been 

consolidated 

and approved 
by municipal 
council by 30 

June 2019. 

None 

Achieved 

Achieved 

2% 

The municipal 
adjustment 
budget has 

been 

consolidated 

and approved 
by 28 February 

2019 

None 

Achieved 

Achieved 


115 | P a g e 











Developed and 
updated 
indigent 
register 

Updated 

indigent 

register 

Updated 
indigent 
register (June 

2019 -for 

Implementation 
in 2019/ 2020 

1 Updated 
register 


2% 

The updated 
indigent 
registers has be 

submitted. 

None 

Achieved 

Achieved 

Compilation of 

Certified 

1 certified 

Certified 


2% 

The municipal 

None 

Achieved 

Achieved 

the municipal 

municipal 

supplementary 

municipal 



supplementary 




supplementary 

supplementary 

valuation roll by 

valuation roll. 



valuation roll 




valuation roll 

valuation roll. 

31 March 2019 




has been 




for 2019/ 2020 






certified by 




financial year 






March 2019. 




Issuing of 

Singed monthly 

All registered 

All registered 


2% 

Signed monthly 

None 

Achieved 

Achieved 

monthly 

billing reports 

consumers 

consumers 



billing reports 




consumer 


issued with 

were billed 



have been 




accounts to all 


monthly 




submitted. 




registered 


consumer 








consumers of 


accounts for 








municipal 


municipal 








services 


services 









116 | P a g e 











Submission of 

D-Forms to 

NERSA 

(October 2018) 

Proof of 

submission of 

the D-forms to 

NERSA 

D_forms 

submitted to 

NERSA by 

October 2018 

Submitted D- 

Forms 


2% 

The D-forms 

have been 

submitted to 

NERSA by 31 

October 2018 

None 

Achieved 

Achieved 

Submission of 

the Financial 

Management 
Grant activity 
plan to National 
Treasury 

Compiled 

financial 

management 
grant activity 
plan submitted 
to NT (proof of 

submission to 

NT) 

Financial 

management 

grant activity 
plan submitted 
to NT by 30 

march 2019 

the FMG 

activity plan 

submitted to 

NT by 30 March 

2018 


2% 

The financial 

management 

grant activity 
plan has been 
compiled and 

submitted to 

National 

Treasury by 

March 2019 

None 

Achieved 

Achieved 

Monthly 
updating of the 

conditional 

grants registers 

Updated 

conditional 

grants registers. 

12 monthly 
updated 

conditional 

grants registers 

Register 

updated 

monthly 


2% 

The conditional 

grants register 
was updated on 
a monthly basis 

in the financial 

year under 

review. 

None 

Achieved 

Achieved 


117 | P a g e 











Submission of 

MFMA section 

71 reports 
electronically to 

stakeholders 

(Mayor, 

Provincial and 

National 

Treasury) 

Proof of 

submission of 

the MFMA 

section 71 

reports to the 

stakeholders 

Monthly MFMA 

section 71 

reports 

submitted 

electronically to 

stakeholders 

(Mayor, 

Provincial and 

National 

Treasury) 

Reports 

submitted 

monthly 

Compilation of 

Signed 

Compiled 

Compiled and 

the municipal 

municipal 

municipal 

signed annual 

Annual financial 

Annual financial 

Annual financial 

financial 

statement for 

2017/2018 
financial year 

statement for 

2017/2018 

year 

statements and 

singed by the 

CFO by 30 

August 2018 

statements 

Compilation of 

Copy of MFMA 

Compiled 

Section 72 

MFMA Section 

section 72 

section 72 

Report 

72 Report & 

report (proof of 

report and 

submitted to 

submission to 

National & 

provincial 

Treasury 

(Financial) 

submission to 

NT) 

submitted to 

NTand PT 

NTand PT 


2% The monthly None Achieved Achieved 

section 71 
reports have 
been submitted 
to the relevant 
stakeholders. 


2% The municipal 

None Achieved Achieved 

Annual 


Financial 


Statements for 


2017/2018 


have been 


prepared and 


signed by the 


CFO by 30 


August 2019. 



2% Thesection72 None Achieved Achieved 

report has been 
compiled and 
submitted to 
both National 
and Provincial 
Treasury. 


118 | P a g e 











Compilation 

and submission 

for the 

schedule C 

reports 

submitted to 

the MM 

Copy of 
completed 

schedule C 

reports 

Monthly 

Schedule C 

reports 
prepared and 

submitted to 

the Municipal 

manager 

Schedule C 

reports 

submitted 

Updating of 

Monthly 

Monthly 

12 Updates 

Municipal Asset 

updated 

updated 

conducted 

additions list on 

municipal asset 

municipal 


the monthly 

basis. 

additions list. 

assets additions 

list 


Attend to 

Percentage of 

95% of issues 

90% of issues 

corrective as 

issues raised 

raised and 

attended to. 

identified in 

and proposed 

proposed 


external audit 

corrective 

corrective 


reports and 

measures 

measures 


reduce risk 

areas within 

three months 

of receipt of 
reports. 

attended to. 

attended to 



2% 

All the 12 

monthly 

schedule C 

reports have 
been prepared 

and submitted 

to the 

Municipal 

Manager. 

None 

Achieved 

Achieved 

2% 

The Annual 

updated 

municipal 

assets 

additional list 

has been 

submitted. The 

asset additions 

list has been 

updated. 

None 

Achieved 

Achieved 

1% 

The 

The 

Not 

Not Achieved 


department 

department 

Achieved 



achieved 56% 

did not 




of the issues 

submit any 




raised and 

reason for 




proposed 

non- 




corrective 

achievement 




measures by 

ofthe target 




external 

and actions 




auditors. 

to improve 
performance. 




119 | P a g e 











Attend to 

corrective as 

identified in 

internal audit 

reports and 

reduce risk 

areas within 

three months 

of receipt of 
reports. 

Percentage of 

issues raised 

and proposed 

corrective 

measures 

attended to. 

95% of issues 

raised and 

proposed 

corrective 

measures 

attended to 

90% of issues 

attended to. 

Percentage 

Signed reports 

100% Spending 

100% of FMG 

spent on FMG 

on the 

on FMG as per 

spent 

spend at year 

expenditure of 

DoRA 


end 

conditional 

conditions 



grants 

(June 2019) 


Percentage of 

Signed report 

20% of all 

88% of 

creditors paid 

on the payment 

creditors paid 

creditors paid 

within 30 days 

of creditors 

within 30 days 


of the receipt 

with 30 days 

(Monthly) 


of the invoices 





1% 

The 

The 

Not 

Not Achieved 


department 

department 

Achieved 



achieved 80% 

did not 




of the issues 

submit any 




raised and 

reason for 




proposed 

non- 




corrective 

achievement 




measures by 

ofthe target 




internal 

and actions 




auditors. 

to improve 
performance. 



2% 

The 

department has 
prepared a 
report on the 
expenditure of 

conditional 

grants and 
submitted by 

30 June 2019. 

None 

Achieved 

Achieved 

2% 

The 

department has 

achieved 56 % 

payment of 

creditors within 

30 days. 

None 

Achieved 

Achieved 


120 | P a g e 











Submission of 

VAT returns to 

SARS 

Proof of 

submission/ 

Monthly VAT 

returns 

submitted to 

SARS 

12 Returns 

submitted to 

SARS 


2 % 

The monthly 

VAT returns 

have been 

submitted to 

SARS. 

None 

Achieved 

Achieved 

Submission of 

EMP 201 forms 

to SARS 

Proof of 

submission 

Monthly EMP 

201 forms 

submitted to 

SARS 

12 Returns 

submitted to 

SARS 


1% 

The monthly 

EMP 201 forms 

have been 

submitted. 

None 

Achieved 

Achieved 

Compilation of 
Supply Chain 
Management 
implementation 
reports and 

submission to 

the MM 

Signed copies of 

theSCM 

implementation 

reports. 

4 SCM 

Implementation 

reports 

submitted to 

the Municipal 
Manager 
(Quarter 4, 1 , 2 
and 3) 

4 SCM 

implementation 

reports 

submitted to 

MM 


1% 

The 4 SCM 

implementation 
reports have 

been submitted 

to the MM. 

None 

Achieved 

Achieved 




TOTAL 


40% 






121 | P a g e 











DEPARTMENT: FINANCE 





ACTUAL 

CORRECTIVE 

INTERNAL 

ACHIEVEMENT 







PERFORMANCE 

MEASURES 

AUDITORS 

STATUS 

KEY PERFORMANCE AREA 5 - GOOD GOVERNANCE AND PUBLIC PARTICIPATION 



TAKEN OR 

REASONS 

COMMENTS 









FOR 

VARIANCE 



OBJECTIVE 

KEY 

UNITOF 

ANNUAL 

COMPARISON 

ANNUAL 

WEIGHT 





PERFORMANCE 

MEASUREMENT 

TARGETS 

WITH 

BUDGET 






INDICATOR 


2018/19 

2017/18 

ALLOCATION 






(KPI) 



TARGETS 






To promote 

Number of 

Attendance 

4 Meetings for 

All wards 

R50 000.00 

4% 

4 public 

None 

Achieved 

Achieved 

and improve 

meeting for 

register for the 

public 

were 



participation 




effective 

public 

puhlic 

consultation on 

consulted 



consultations 




linkage 

consultation on 

consultations. 

the 2019/ 2020 




have been held 




between the 

the 2019/ 2020 


annual Budget 




for the annual 




community. 

annual Budget 


by 30June 




budget and IDP 




stakeholders 

by 30 June 


2019 




and the 




and the 

2019 






department has 




municipality 







been in 




to ensure 







attendance 




accountability 











and 

responsive 

governance 

structures. 

Percentage of 

Percentage of 

100% of the 

None 

R 13 861 

4% 

The 

The 

Not 

Not Achieved 

resolutions 

resolution 

resolutions 


060,00 


department did 

department 

Achieved 


(Council, Sec. 

80, 

implemented 

within the 

implemented 

on time 




not achieve 

90% 

did not 

provide 




Management) 

required time 





implementation 

reasons for 




implemented 

frame 





of the 

non- 




within the 






resolutions 

achievement 




required time 






made by 

of the targets 

and actions 













frames 






council. 

to improve 
performance. 



Implementation 

Number of 

4 quarterly 

None 

R 3 169 

4% 

Quarterly 

The 

Not 

Not Achieved 

of a compliance 

progress 

reports on the 


530,74 


reports on the 

department 

Achieved 


checklist 

reports on the 

implementation 




implementation 

did not 



pertaining to 

implementation 

of the 




of the 

provide 



key legislation 

of a compliance 

compliance 




compliance 

reasons for 



requirements 

checklist. 

checklist. 




checklist have 

non- 



for the 






not been 

achievement 



department 






submitted. 

of the targets 

and actions 

to improve 
performance. 



Number of risk 

Reports on the 

12 monthly risk 

Monthly risk 


3% 

The monthly 

The 

Not 

Not Achieved 

assessment and 

implementation 

assessment and 

Assessments 



risk 

department 

Achieved 


action plan 

of the risk 

action plan 




assessments 

did not 



reviews/ 

management 

reviews/ 




and action 

provide 



updates 

action 

updates 




plans have not 

reasons for 









been 

non 









performed. 

achievement 

of the targets 

and actions 

to improve 
performance. 




TOTAL 15% 


123 | P a g e 











DEPARTMENT: MUNICIPAL MANAGER 



ACTUAL 

PERFORMANCE 

CORRECTIVE 

MEASURES 

TAKEN OR 

REASONS 

FOR 

VARIANCE 

INTERNAL 

AUDITORS 

COMMENTS 

ACHIEVEMENT 

STATUS 

KEY PERFORMANCE AREA 1 - MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT 

OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

ANNUAL WEIGHT 

BUDGET 

ALLOCATION 

To enhance 

Quarterly 

Attendance 

4 Quarterly 

4 Quarterly 

R 3169 1% The 

None 

Achieved 

Achieved 

responsiveness 

management 

registers of the 

Management 

meetings 

530,74 management 




to citizen's 

meetings held 

management 

Meetings 


meeting have 




priorities and 


meeting 



been held on 




capabilities of 





quarterly basis. 




delivery of 









quality 









services. 

Percentage of 

Adverts and 

100% of 

None 

3% The service 

None 

Achieved 

Achieved 

quality 

External 

appointment 

appointments 


level 




management 

Service 

letters of the 

for external 


agreements 




and 

providers 

external service 

Service 


have been 




administrative 

appointed 

providers 

Providers 


signed for the 




practices 

within 60 days 


appointed 


capital projects 




of the closing 


within 60 


implemented 





date ofthe 


days of the 







tender 


closing date 









ofthe tender 
















Sign and 

Signed PA of 

4 signed PA 

5 Signed 

conclude 

the Municipal 

by 28 July 

performance 

Performance 

Manager (MM) 

2018 and sign 

agreements 

Agreements 

and CFO, 

revised PA by 


(PA) of the 

Director 

9 March 2019 


Municipal 

Technical; and 



Manager, 

Director 



Chief Financial 

Corporate 



Officer, 

Service 




Director 
Technical; and 
Director 
Corporate 
Service 


3% The None Achieved Achieved 

performance 
agreements for 
the Municipal 
Manager, CFO, 

Director 
Technical and 
Director 
Corporate 
services have 
been 

submitted. 


Quarterly 

Signed 

3 signed 

3 quarterly 

Performance 

quarterly 

quarterly 

performance 

Evaluations for 

evaluations of 

evaluations 

evaluation 

the MM; CFO; 

the CFO; 

of the MM, 

reports 

Director 

Director 

CFO and all 


Technical; and 

Technical; and 

other 


Director 

Director 

Directors 


Corporate 

Corporate 



Service for the 

Service 



2018/19 





4% The quarterly None Achieved Achieved 

evaluation of 
the CFO, 

Director 
Technical and 
Director 
Corporate 
services have 
been 

performed. 











Annual 

Report on the 

One annual 

One annual 


4% 

The report on 

The 

Not 

Not Achieved 

Performance 

Performance 

Performance 

performance 



the annual 

evaluations 

Achieved 


Evaluations for 

Evaluations for 

Evaluation 

evaluation 



performance 

will be 



the MM; CFO; 

the MM, CFO, 

performed 

performed 



evaluation of 

submitted 



Director 

Director 

for the MM, 




MM, CFO and 

to the next 



Technical; and 

Technical; and 

CFO, Director 




Director 

council 



Director 

Director 

Technical; 




Technical have 

meeting for 



Corporate 

Corporate 

Director 




been 

conclusion. 



Service for the 

Service 

Corporate 




performed but 




2017/ 18 based 


Service by 15 




not yet 




on audited 


December 




concluded by 




performance 


2018 




the MPAC and 




report 






council as at 30 










June 2019. 





15% 


TOTAL 











DEPARTMENT: MUNICIPAL MANAGER OFFICE 

ACTUAL 

PERFORMANCE 

CORRECTIVE 

MEASURES 

INTERNAL 

AUDITORS 

ACHIEVEMENT 

STATUS 

KEY PERFORMANCE AREA 2 - INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY 


TAKEN OR 

REASONS 

FOR 

VARIANCE 

COMMENTS 


OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNIT OF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

ANNUAL 

BUDGET 

ALLOCATION 

WEIGHT 




To promote 

and improve 

effective 

linkage 

between the 

stakeholders 

and the 

Number of MIG 

reports 

submitted to 

CoGTA 

Proof of 

submission of 

MIG reports to 

CoGTA. 

12 MIG 

reports 
prepared & 

submitted to 

CoGTA (3 per 
quarter) 

12 Reports 

submitted 

R 871 500,00 

2% 

The MIG 

reports have 

been submitted 

to CoGTA on 

monthly basis. 

None 

Achieved 

Achieved 

municipality 

to ensure 

accountability 

and 

responsive 

governance 

structures. 

Number of 

EPWP reports 

submitted to 

CoGTA 

Proof of 

submission of 

EPWP reports 

to CoGTA 

12 EPWP 

reports 

prepared & 
submitted (3 
per quarter) 

to CoGTA 

12 Reports 

submitted 

R 1000 

000,00 

2% 

The EPWP 

reports have 
been prepared 

and submitted 

to CoGTA 

None 

Achieved 

Achieved 











To strengthen 

road traffic 

management 

(result 

indicator: 

accidents, 
deaths) and 
Improve 
public 

transport. 

Number of 

road blocks to 

be conducted 

by 30 June 

2019 

Singed reports 

for the 8 road 

blocks 

conducted. 

8 Road 

blocks 

conducted by 

30 June 2019 

8 Road blocks R 1 372 2% 

654,56 

13 road blocks 

were 

conducted by 

30 June 2019. 

The 

department 

did not 

submit any 

reason for 

non- 

achievement 

of the target 

and actions 

to improve 
performance. 

Not NotAchieved 

achieved 


Number of 

Signed traffic 

12 monthly 

12 Monthly 2% 

The traffic 

None 

Achieved Achieved 


traffic report 

reports and 

reports and 

reports 

reconciliations 




and 

reconciliations. 

traffic 


for the financial 




reconciliation 


reconciliation 


year under 




submitted to 


submitted to 


review have 




finance 


finance 


been 




department 


department 


performed. 




128 | P a g e 











To support 
the district 
municipality 
in Improving 
disaster 
preparedness 
for extreme 
climate 
events. 


Numberof Attendance 

meetings register and 

conducted for minutes 

Local Disaster 
Advisory Forum 


elections 
preparations. 
The targets 
should be 
planned 
properly 
considering 
the events 
that might 
impact on 
the 

achievement 
of targets in 
a financial 
year. 


4 quarterly 

4 quarterly 

R 568 310,87 

2% 

The local 

The 

Not 

Not Achieved 

disaster 

meetings 



disaster 

department 

achieved 


advisory 




advisory 

indicated 



forum 




forums were 

that the 



conducted 




conducted in 

forums could 







the fourth 

not be held 







quarter of the 

quarterly as 







financial year. 

planned due 

to National 




Number of 

Attendance 

16 

16 Awareness 

disaster 

registers and 

Awareness 

campaigns 

management 

signed reports 

Campaigns 


awareness 

conducted by 

30 June 2019 

for disaster 

management 

awareness 

conducted. 

conducted 



1 % 


8 disaster 

The 

awareness 

department 

campaigns 

did not 

have been held 

submit any 

by 30 June 

reason for 

2019. 

non- 


achievement 


of the target 


Not NotAchieved 

achieved 


129 | P a g e 











To assess and 

Number of 

Completed 

1 Updated 

1 Updated 

R 8 912 

review 

building plans 

updated 
building plan 
register 

building plan 
register 

register 

registers 

758,09 


To capacitate 

Number of 

Attendance 

4 building 

7 Awareness 

communities 

building 

registers and 

regulations 

campaigns 

on building 

regulations 

signed reports 

Awareness 


regulations 

awareness 

for building 

campaigns 


through 

awareness 

campaigns 

conducted by 

30 June 2019. 

regulations 

awareness 

campaigns 

conducted 



Promote and 

Monthly 

Updated human 

12 monthly 

12 Updated 

support 

Updated & 

settlement and 

Updated 

waiting list 

integrated. 

reviewed 

Erven waiting 

human 


inclusive, 

sustainable 

human 

settlement 

development. 

human 

settlement and 

Erven waiting 

list to assist the 

provincial 
department of 

Human 

Settlement in 

list. 

settlement 

and Erven 

waiting lists. 



and actions 
to improve 
performance. 


1% The building 

plan register 
was updated, 
signed and 
submitted. 


None Achieved 


3 building 

The 

Not 

regulations 

department 

achieved 

awareness 

did not 


campaigns 

submit any 


have been held 

reason for 


by 30 June 

non- 


2019. 

achievement 

of the target 

and actions 

to improve 
performance. 



2% The human None Achieved 

settlement and 
Erven waiting 
lists have been 
update on a 
monthly basis. 


130 | P a g e 


Achieved 


Not Achieved 


Achieved 












allocating 

housing 








Review of the 

Council 

Reviewed 

Approved 


2% The approved 

None Achieved Achieved 


Human 

resolution 

and 

Human 


human 



Settlement 

approving the 

Approved 

Settlement 


settlement 



Sector Plan 

human 

Human 

sector plan 


sector plan has 




settlement 

Settlement 



been 




sector plan 

Sector Plan 



submitted. 





by 30 June 








2019 





Accelerate 

Awareness 

Attendance 

Awareness 

1 Awareness 


2% The awareness 

None Achieved Achieved 

and 

campaign 

registers and 

campaign 

campaign 


campaign for 


streamline 

pertaining 

signed reports 

pertaining 

conducted 


the change of 


township 

change of 

for awareness 

change of 

per ward 


ownership 


establishment 

ownership 

campaign 

ownership 



process and 


processes and 

processes and 

pertaining 

processes 



land tenure 


procedures to 

land tenure 

change of 

and land 



was conducted. 


ensure 


ownership 

tenure 





sustainable 


processes and 

conducted by 





settlement. 


land tenure 

30 June 2019 






TOTAL 20% 


131 | P a g e 











DEPARTMENT: MUNICIPAL MANAGER OFFICE 

ACTUAL 

PERFORMANCE 

CORRECTIVE 

MEASURES 

INTERNAL 

AUDITORS 

ACHIEVEMENT 

STATUS 

KEY PERFORMANCE AREA 3 - LOCAL ECONOMIC DEVELOPMENT 





TAKEN OR 

REASONS 

COMMENTS 










FOR 

VARIANCE 



OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

ANNUAL 

BUDGET 

ALLOCATION 

WEIGHT 




Create an 

environment 

that 

promotes 

development 

of the local 

economy 

Number of 

Business Forum 

meetings 

facilitated at 

Bultfontein and 

Hoopstad. 

4 Business 

forum meetings 

held 

(attendance 
register and 
signed reports) 

4 Business 

Forum 

Meetings 
facilitated (2 
per quarter) 

8 Business 

Forum 

Meetings 
facilitated (1 
per quarter) 

R 2 818 

697,88 

3% 

The 4 quarterly 

business 

forums have 

been 

facilitated. 

None 

Achieved 

Achieved 

and facilitate 

job creation 

Number of 

youth trained 

on mixed 

farming in both 

towns 

Appointment 

letters of the 

youth 

appointed to be 
workshopped 

on mixed 

farming 

100 youth 
appointed to 

be 

workshopped 

on mixed 

farming in 

both towns 

None 


2% 

The 100 youth 

have been 

appointed and 
workshopped 

on mixed 

farming in both 

towns. 

None 

Achieved 

Achieved 


Number of site 

visits 

conducted at 

Itshokolele 

4 Site visits 

reports and 

attendance 

registers 

4 Site visits 

of the project 
(1 per 
quarter) 

4 Site visits of 

the project (1 
per quarter) 


3% 

The sites visits 

to Itshokolele 

project have 

been 

None 

Achieved 

Achieved 











Project 


Number of site 

visits 

conducted at 

Tswaraganang 

Cooperative 

Project 

4 site visit 

reports. 

4 Site visits 

of the project 
(1 per 
quarter) 

4 Site visits of 

the project (1 
per quarter) 

Issuing of 

Number of 

20 street 

N/A 

street trading 

street trading 

trading 


permits 

permits issued 

permits 



by 30 June 2019 


conducted on 
quarterly basis. 


3% The sites visits None Achieved 

to 

Tswaraganang 
project have 
been 

conducted on 
quarterly basis. 


3% Only 8 street 

permit trading 
licences have 
been issued for 
the financial 
year. 


The Not 

municipality Achieved 

could not 

issue street 

permit 

trading 

licences to 

the targeted 

population 

due to the 

resistance 

by the street 

vendors. 

The 

workshop 
will be 
conducted 
to educate 
street 
vendors 
about the 
processes 


133 | P a g e 


Achieved 


Not Achieved 











Issuing of 

business 

licenses 

Number of 

business 

licenses issued 

by 30 June 2019 

20business N/A 

licenses 

Number of 

Attendance 

2workshops N/A 

trainings/ 

registers and 

conducted in 

workshopped 

the signed 

both towns 

conducted for 

report for the 2 

by 30June 

the SMME and 

workshops 

2019 

cooperatives in 

conducted. 



both towns. 


3% 


2 % 



that should 

be followed 

and the 

benefits 

thereof. 

42 business 

licenses have 

been issued in 

the financial 

year under 

review. 

None 

Only 1 

The 

Workshop was 

municipality 

held in October 

could not 

2018 in 

get funds 

partnership 

from the 

with NEDBANK 

sector 

forSMMEsfor 

department 

both towns. 

as 

assistance 

to conduct 

the planned 
workshop in 

the fourth 

quarter 


Achieved 


Not 

Achieved 


134 | P a g e 


Achieved 


Not Achieved 











Percentage of 
the capital 
budget 
awarded to 
local service 
providers 


The value of 

30% of the 

30% allocated 

R7 151 

1% 

Maximum of 

The 

Achieved 

Achieved 

contracts 

2018/19 

to local 

100,00 


30% of the 

municipality 



awarded to 

capital 

service 



capital budget 

should 



local service 

budget 

providers 



was allocated 

speed up 



providers 

awarded to 




to local service 

the process 



divided total 

local service 




providers. 

of 



capital 

providers 





appointing 



expenditure 






the sub- 



multiplied by 






contractor 



100 






for the 1.3 



(appointment 






KM in 



letters of sub- 

contractors) 






Phahameng. 





TOTAL 


20% 






135 | P a g e 











DEPARTMENT: MUNICIPAL MANAGER OFFICE 



ACTUAL 

PERFORMANCE 

CORRECTIVE 

MEASURES 

TAKEN OR 

REASONS 

FOR 

VARIANCE 

INTERNAL ACHIEVEMENT 

AUDITORS STATUS 

COMMENTS 

KEY PERFORMANCE AREA 4 - MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 

OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

ANNUAL WEIGHT 

BUDGET 

ALLOCATION 

To enhance 

Maintain 

Unqualified 

Obtain 

Unqualified 

R3 750 4% The 

The 

Not NotAchieved 

the revenue 

unqualified 

audit opinion 

Unqualified 

audit opinion. 

000.00 municipality 

municipality 

Achieved 

base ofthe 

audit opinion 

on the 2017/ 

audit opinion 


obtained 

developed 


municipality. 

on the financial 

2018 Financial 

on the 2017/ 


qualified audit 

the audit 


improved 

statements 

Statements 

2018 Financial 


opinion on the 

action plan 


audit 



Statements 


audit of 2017/ 

to resolve 


outcome. 





2018 financial 

and improve 


promote 





statements. 

the 


sound 






situation. 


financial 






The action 


governance 






plan is 


and 






monitored 


management 






on a 








monthly 








basis. 












Percentage 

Percentage on 

100% 

100% of FMG 

R 1 950 

4% 

The 

None 

spent on FMG 

FMG as per 

Spending on 

spent 

000,00 


department 


as per DORA 

DORA 

FMG as per 




has prepared a 


conditions ( 

conditions 

DoRA 




report on the 


June 2018) 

(Amount spent/ 

conditions 




expenditure of 


(Amount 

budgeted 

(June 2018) 




conditional 


spent/ 

amount * 100) 

(Amount 




grants and 


budgeted 


spent/ 




submitted by 


amount * 100) 


budgeted 
amount * 100) 




30 June 2019. 


Compiled 

Proof of 

1 Compiled 

Section 72 

R3 169 

3% 

The section 72 

None 

MFMA Section 

submission of 

Mid-Year 

Report 

530,74 


report has 


72 Report & 

the section 72 

Section 72 

submitted to 



been compiled 


submission to 

report to 

Report 

National & 



and submitted 


National & 

National & 

(January 2019) 

Provincial 



to both 


provincial 

provincial 

submitted to 

Treasury 



National and 


Treasury 

treasury 

National & 




Provincial 


(Financial) 


provincial 

treasury 




Treasury. 


Compilation of 

Certified 

1 certified 

Certified 

R200 000.00 

3% 

The municipal 

None 

the municipal 

municipal 

supplementary 

municipal 



supplementary 


supplementary 

supplementary 

valuation roll 

valuation roll. 



valuation roll 


valuation roll 

valuation roll. 

by 30June 




has been 


for 2019/ 2020 


2019 




certified by 


financial year 






March 2019. 



Achieved 


Achieved 


Achieved 


Achieved 


Achieved 


Achieved 


137 | P a g e 











Submitted 

Council 

1 Council 

1 Approved 

R 19 807 

3% 

The municipal 

None 

Achieved 

Achieved 

adjustment 

resolution 

approved 

adjustment 

825,33 


adjustment 




budget in line 

approving the 

adjustment 

budget 



budget has 




with the 

adjustment 

budget 




been 




approved 

budget 

(February 




consolidated 




Midyear 


2019) 




and approved 




budget and 






by 28 February 




performance 






2019 




assessment 










report. 










Compiled, 

Approved 

Final approved 

1 Approved 


3% 

The municipal 

None 

Achieved 

Achieved 

consolidated & 

municipal 

municipal 

budget 



budget has 




approved 

budget 

budget (June 




been 




municipal 


2019) 




consolidated 




budget. 






and approved 
by municipal 
council by 30 

June 2019. 







TOTAL 


20% 






138 | P a g e 











DEPARTMENT: MUNICIPAL MANAGER 


KEY PERFORMANCE AREA 5 - GOOD GOVERNANCE AND PUBLIC PARTICIPATION 


OBJECTIVE 

KEY 

PERFORMANCE 

INDICATOR 

(KPI) 

UNITOF 

MEASUREMENT 

ANNUAL 

TARGETS 

2018/19 

COMPARISON 

WITH 

2017/18 

TARGETS 

To promote 

Annual 

Approved 

Developed & 

Approved 

and improve 

calendar 

annual calendar 

approved 

annual 

effective 

developed & 


annual calendar 

calendar of 

linkage 

approved by 


of council 

council 

between the 

Council, EXCO, 


meetings (July 

meetings 

community. 

Sec 80 Comm, 


2018) 


stakeholders 

Audit 




and the 

Committee, 




municipality 

Risk Committee 




to ensure 

and MPAC 




accountability 





and 





responsive 

Number of 

Council agendas 

4 ordinary 

4 ordinary 

governance 

ordinary 

and minutes of 

council meeting 

council 

structures. 

Council 

the ordinary 

held per annum 

meetings 


meeting 

council 




coordinated 

meetings 




and convened 





per annum 







ACTUAL 

CORRECTIVE 

INTERNAL 

ACHIEVEMENT 



PERFORMANCE 

MEASURES 

AUDITORS 

STATUS 



TAKEN OR 

REASONS 

FOR 

VARIANCE 

COMMENTS 


ANNUAL 

WEIGHT 




BUDGET 






ALLOCATION 






R 10 091 

1% 

The annual 

None 

Achieved 

Achieved 

530,34 


calendar of the 

council and 

council 

committee 

meeting has 
been approved 
byJuly 2018. 





1% 

All the ordinary 

council 

meetings were 

held in the 

financial year 

under review 

None 

Achieved 

Achieved 











Number of 
service delivery 
and budget 
implementation 
plans approved 
by the Mayor 


Table the 
Annual report 
of2017/2018 
for adoption by 
council. 


Publish the 
draft Annual 
report for 21 
days on the 
municipal 
website 


Approved 2018/ 

Approved 

Approved 

R 3 196 

1% 

The Service 

None 

Achieved 

Achieved 

2019 SDBIP 

SDBIP bythe 

2017/18 

530,74 


delivery and 





Mayor in July 

SDBIP 



budget 





2018 




implementation 





plan for the 
financial year 
under review 
was approved 
by the Mayor 
by 28 July 2018 


Council 

resolution 

adopting the 
annual report 

Tabled 

2017/2018 
Annual report 
by January 

2019 

Draft 

2016/2017 

Annual 

Report 


3% 

The Annual 

report for the 
2017/2018 
financial year 
was approved 
by council by 30 

March 2019. 

None 

Achieved 

Achieved 

Publication of 

the annual 

report 

Publication of 

the draft 

Annual report 
by February 

2019 

1 publication 

of the draft 

Annual report 


1% 

The Annual 

report was 
publicised on 
the municipal 

website. 

None 

Achieved 

Achieved 


140 | P a g e 











Convene 

Oversight 

Committee to 

consider the 

Draft 

2017/2018 
Annual Report 

Attendance 

register and the 
oversight 

committee 

report 

Convene the 

oversight 

committee for 

the evaluation 

of the annual 

report by 

March 2019 

1 Oversight 
Report 

Approved 

Council 

Table to council 

Approved 

Annual report 

resolution 

the oversight 

2016/2017 

for2017/2018 

approving the 
oversight 

committee 

report and the 
annual report. 

committee 

report for 
approval of the 
annual report 
by 30 March 

2018 

Annual report 

Review of the 

1 Approved IDP 

Reviewed and 

Approved 

integrated 

reviewed 

approved 

2017/18IDP 

development 
plan in 

consultation 

with the 

relevant 

stakeholders. 

annually 

integrated 
development 
plan in 

consultation 

with the 

relevant 

stakeholders by 

30 June 2019 



1% The MPAC None Achieved 

meeting was 
convened for 
the evaluation 
of the Annual 
Report. 


3% The oversight None Achieved 

committee 
report was 
tabled to 
council for 
approval by 30 
March 2019 


1% ThelDPand None Achieved 

budget process 
plan was tabled 
to council for 
approval. 


Achieved 


Achieved 


Achieved 


141 | P a g e 











Review the 3 

Minutes of the 

3 year risk 

Approved 3 

year internal 

audit 

based plan 

year risk 

audit plan 

committee 

approved by 30 

based plan 

based on the 

risk assessment 

and submit to 

the audit 

committee for 

approval by 30 

June 2019 

approving the 3 
year risk plan 

June 2019 



1% Thethreeyear None Achieved 

risk based plan 
was developed 
and submitted 
to council for 
approval. 


1% 4quarterly None Achieved 

reports have 
been submitted 
to the MM and 
the audit 
committee. 

implementation 
of the annual 
internal audit 
plan and 
internal audit 
activities. 


Report to the 

Quarterly 

4 quarterly 

4 quarterly 

municipal 

reports on the 

reports 

reports 

manager and 

implementation 

submitted to 


audit 

of the annual 

the MM and 


committee on 

internal audit 

the Audit 


the 

plan 

committee 



Achieved 


Achieved 


142 | P a g e 











Number of 

Municipal 

Public Account 

Committee 

meetings 

conducted 


The letter 
has been 
issued to the 
Speaker to 
request 
intervention 
to address 
non- 

attendance 
of meetings 
by the 
members of 
MPAC. 


Attendance 
register and 
minutes of the 
meetings 


Convene 4 
Municipal 
Public Accounts 
Committee 
meetings 


4 Meetings 


1 % 


OnlytwoMPAC The planned Achieved 


meeting were 
held in the 
financial year 
under review. 


MPAC 

meetings did 
not take 
place due to 
the members 
not forming 
corium for 
the meeting. 


Number of 

Attendance 

4 audit 

5 Meetings 

audit 

registers and 

committee 


committee 

the minutes of 

Meetings (1 per 


meetings held 

the meeting 

quarter) 



1% All the planned None Achieved 

quarterly audit 
committee 
meetings have 
been held. 


Achieved 


Achieved 


143 | P a g e 











Submit 

Copy of minutes 

4 quarterly 

None 


1% 

4 quarterly 

None 

quarterly risk 

where the 

reports 




reports on the 


management 

reports were 

submitted to 




implementation 


reports to the 

discussed. 

the audit, risk 




of measures in 


audit, risk and 


and 




the action plan 


performance 


performance 




have been 


committee on 


committee on 




submitted to 


the 


the 




the audit, risk 


implementation 


implementation 




and 


of measures in 


of measures in 




performance 


the action 


the action plan 




committee. 


plans. 








Updated 

Monthly 

12 Monthly 

12 Updates of 


1% 

Monthly 

The 

municipal risk 

updated risk 

updated risk 

the risk 



updates on the 

department 

management 

register 

management 

register 



risk register 

did not 

register 


registers 




were not 

provide 







performed. 

reasons for 

non- 

achievement 

of the target 

and actions 

to improve 
performance. 


Achieved 


Not 

Achieved 


Achieved 


Not Achieved 


144 | P a g e 











Number of 

Quarterly 

4 quarterly 

Monthly 

R480 000.00 

1% 

The quarterly 

None 

Achieved 

Achieved 

consolidated 

consolidated 

consolidated 

reports have 



consolidated 




ward 

reports 

ward 

been 



ward 




committee 


committee 

submitted 



committee 




reports 


reports. 




reports have 




submitted 






been submitted 





Number of LLF 

Meetings 

conducted 

Attendance 

register and 

minutes ofthe 

LLF meetings 

4 LLF Meetings 
per annum(l 
per quarter) 

4 Meetings 

held 

R3 169 

530,74 

1% 

The LLF 

meeting for the 

third and fourth 

quarter have 

been held. 

None 

Achieved 

Achieved 




TOTAL 


20% 






145 | P a g e 











17 SERVICE PROVIDERS PERFORMANCE FOR 2018/ 2019 FINANCIAL YEAR. 


SERVICE PROVIDER PROJECTNAME BUDGET VALUE CONTRACT DURATION PROJ ECT STATUS END USER REMARKS ON 

OVERALL PERFORMANCE 
BYTHE PROVIDER 


Atcomm T/A Ntelecomm 

Supply and Installation of VOIP/ 
DATA Solution, Internet, Email 
services and VPN Hosting for 
Period ending 30 J une 2020 

R29 500 pm fixed rental, 
without usage 

32 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

Zalisile Msebenzi 

Construction 

The construction of cricket Pitch 
and the completion of community 
sports facilities: Phahameng/ 
Tikwana 

6,893,852.96 

10 Months 

90% Complete 

Satisfied with the overall 
performance provided to the 
municipality 

Nomano Trading 

Tswelopele Local Municipality: 
Phahameng/ Bultfontein: The 
Construction of 1.3km paved road 
and related storm water 

11,000,000.00 

6 Months 

68% complete 

Satisfied with the overall 
performance provided to the 
municipality 

KGB Group 

Proposal for the Provision of 
three(3) year lease and 
Maintenance agreement of 
Business machines (Photocopiers 
, printers& faxes) 

As perthe tenderdocument 

36 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

IPES/ Utility Management 

Data Cleansing and Debt 
Collection from the date of 
Appointment till 30 J une 2020 

as per Annexure C of the 
SLA 

18 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 


146 | P a g e 



























SERVICE PROVIDER 


PROJECTNAME 


BUDGETVALUE 


CONTRACT DURATION PROJ ECT STATUS 


END USER REMARKS ON 
OVERALL PERFORMANCE 
BYTHE PROVIDER 


ERMSA Electrical 

Construction of Switch Stations in 
Bultfontein and Hoopstad network 

8,377,012.98 

20 Months 

98% complete 

Satisfied with the overall 
performance provided to the 
municipality 

Best Enough Trading & 
Project 535 JV Khetwayo 
Construction 

The Construction of toilet 
Structures & sewer connections 
499 structures: contractors 

18,379,444.33 

4 Months 

74% complete 

Satisfied with the overall 
performance provided to the 
municipality 

Blaq m Consultants 

Short- term Insurance 

449 623.00 first year, 
exclusive of new additions 

33 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

Dr. KM Mapesela 

Medical Examination of 

Employees in terms of 
Occupational Health and Safety 

R900.00 per employee, per 
consultation 

36 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

Garepalelweng Trading and 
Projects 

Supply and Delivery of diesel/fuel 
forTswelopele Local Municipality 
: Bultfontein and Hoopstad Unit 

13.98 and 3.50 transport, 
Increase and increase as 
per the department of 
energy as per procurement 

33 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

Marwin Marketing 

Supply and Delivery of Water 
Purification Chemicals to 
Tswelopele Local Municipality for 
period ending 30 J une 2020 

266,486.40 

32 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

Durcharme Consulting 

Value added recovery services 

9% of the amount claimed 
from SARS 

32 Months 

100% Complete 

Satisfied with the overall 
performance provided to the 
municipality 

Modisenyane Property 

Consultants 

Valuation roll 

R2 250 000 

72 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 
municipality 

Testltlab 

Water analysis and Reporting 

753.99 per sampling and 
reporting 

36 Months 

Still in Progress (Contract 
has notended) 

Satisfied with the overall 
performance provided to the 


147 | P a g e 




























SERVICE PROVIDER PROJECTNAME BUDGET VALUE 

CONTRACT DURATION PROJ ECT STATUS END USER REMARKS ON 

OVERALL PERFORMANCE 

BYTHE PROVIDER 






municipality 

G4S Cash Solutions 

Cash in transit services 

401 760.00 for 3 years with 
10% escalation 

36 Months 

100% 

Still in Progress (Contract has 
notended) 



148 | P a g e 


























18 ORGANISATIONAL DEVELOPMENT PERFORMANCE 


18.1 EMPLOYEE TOTALS, TURNOVER AND VACANCIES 


Relevant Department 

Approved posts 

Employees No 

Vacancies No 

Vacancies % 

30JUNE 2019 

TECHNICAL SERVICES 

121 

87 

34 

15.00 

COMMUNITY SERVICES 

118 

93 

25 

6.78 

FINANCIAL SERVICES 

34 

24 

10 

15.60 

CORPORATE SERVICES 

25 

21 

4 

7.40 

MUNICIPAL MANAGER 

7 

5 

2 

14 

30 J UNE 2018 

TECHNICAL SERVICES 

120 

94 

26 

21.67% 

COMMUNITY SERVICES 

118 

105 

13 

11.02% 

FINANCIAL SERVICES 

33 

26 

7 

21.21% 


149 | P a g e 












































C0RP0RATE SERVICES 

26 

22 

4 

15.38% 

MUNICIPAL MANAGER 

7 

6 

1 

14% 


150 | P a g e 

















18.2 MANAGING THE MUNICIPAL WORKFORCE 


INTRODUCTION TO MUNICIPAL WORKFORCE MANAGEMENT 

The municipality has developed and adopted number of policies that are intended to create a fair, efficient and 
transparent system on matters affecting the employees. The municipality reviews these policies regularly to 
ensure thatthey are on par with best practices, new and amended legislation. 

The Municipality has approved policies and procedures used to govern the institution, and these policies and 
procedures are communicated to the staff. As the municipality we do have the Employment Equity Plan however 
we do not meet the provincial equity targets. We have introduced disclosure of interest and related parties form 
and confidentiality and non-disclosure declaration. Municipality complies with BCEA and other labour related 
legislation at workplace. All councillors have signed the disclosure of interest for the financial year review. 


18.3 INJURIES, SICKNESS AND SUSPENSIONS 


The reportcovers the progress of Health and Safety Division and includes the following reports: 

♦ 10D investigations and the response from the Department of Labour. 

♦ lOD'S attended to during 2018/ 2019. 

Employees injured on duty: 

♦ Hoopstad and Bultfontein : 21 


TYPES 

CAUSE OFINJURY 

NUMBER OF AFFECTED 
EMPLOYEES 

Trailers 

Falling from trailer behind the tractorand causing injuries. 

2 

Tools 

Not handling tools accordingly can injure a person. 

0 

Negligence 

Notpaying attention when preforming duties. 

0 

Hit by an objects 

Flying objectfrom mowing machines. 

3 

0 bject lifting 

Employees lift heavy object and strain themselves [they don't ask 
forhelpj. 

0 

Slipped /fell 

Employees don't pay attention to slippery places or floors. They 
don'tcheck steps. 

1 

Others 

Some employees were stung by bees and bitten by spiders. Foreign 
particle in the eye. 

2 


151 I P a g e 
















Total number of injured employees 


13 


TYPE OF INJ URY 

INJ URY LEAVE 

DAYSTAKEN 

EMPLOYEE USING 
INJ URY LEAVE 

DAYS 

AVERAGE 

INJ URY LEAVE 
PER EMPLOYEE 

DAYS 

Need basic medical attention 

1 

120 

13 

5 

Temporary disablement 

0 

0 

0 

0 

Permanent disablement 

0 

0 

0 

0 

Fatal 

0 

0 

0 

0 

Total 

1 

120 

13 

5 


The total numberof 10D leave days taken by injured employees was 120 days. 

NB: From the total number of injured employees recorded only one were placed on light duty and the 
others are doing their normal duties. 

When the Hoopstad cases were investigated it was found that the injuries on duty were caused by 
chemical inhalation whilst employees were working. 

The cases in Bultfontein range from employees being injured by objects falling on them or being struck 
by objects and employees lifting heavy objects and straining themselves. 

Health and Safety officer follow-up all cases with doctors who examined the injured employees and 
submit all documentation [i.e. first, progress and final reportsj to the Department of Labour. 


Awareness Campaigns: 


Awareness campaigns conducted were on: 

Talking ladder safety. 

Protection of integrated eyes, head and face. 

Using machine safety. 

Blind sport psychological factors thatcan getyou injured. 
A guide to eye wash emergency shower station. 
Awareness on manholes entrance. 

4 tips to make your safety observation more impactful. 


152 I P a g e 




















18.4 PERFORMANCE REWARDS 


The municipality has in the financial year under review conduct quarterly formal assessment and 2017/ 2018 
performance assessment for the Municipal Manager, Chief Financial Officer and Director Technical Services. 
The reportforthe assessments was submitted to the Audit Committee and Municipal Public Accounts Committee 
for review. The report has been submitted to council and approved. The council has approved that no 
performance rewards should be paid to senior managers due to the financial constraints and low achievement of 
targets. The reporthas been compiled recording the results of the assessmentand the recommendations ofthe 
evaluation committees. The annual performance assessments for the 2018/ 2019 are anticipated to be 
conducted in February 2020. 


18.5 INTRODUCTION TO WORKFORCE CAPACITY DEVELOPMENT 


Work Skills Plan drawn in terms of the Skills Development Act. Assessment of skills levels of employees and 
gaps are regularly identified and external interventions soughtand implemented in line with the Plan. 

The municipality has the Human Resource Policy, which gives directives for appointment of sufficiently 
experienced and skilled personnel. We have conducted skills audit as part of skills intervention to determine how 
many employees need training intervention as partof capacity building. In terms of our WSP we have identified 
which employees need capacity development. 

The municipal budget for capacitating the workforce in the financial year under review was directed to training of 
councillors attending atthe University of Fort-hare, therefore there has not been a significant capacitation ofthe 
workforce in the financial year under review. The municipality has applied forfunding from the LGSETA in order 
to be able to subject workforce to the training as per the approved work skill plan. 


153 I P a g e 













18.6 SKILLS DEVELOPMENT AND TRAINING 


LGSETA 

STRATEGIC 

FOCUSAREA 

MUNICIPAL KEY PERFORMANCE 

AREA 

MAIN IDP PRIORITY 

LINKED TO KEY 

PERFORMANCE AREA 

TOTAL NUMBER TRAINED 

EMPLOYED 

TOTAL 

UNEMPLOYED 

TOTAL 

FEMALE 

MALE 

54 

FEMALE 

MALE 

10 

Infrastructure and 
Service Delivery 

Basic Service Delivery and 
Infrastructure Development 

To ensure access to basic 
service delivery 

1 0 

0 

0 0 

1 

Community Based 
Participation and 
Planning 

Good Governance and the Deepening 
of Democracy 

To build and enhance the 
governance system 

0 

4 

0 

0 

0 

4 

Management and 
Leadership 

Municipal Transformation and 

Institutional Development 

To enhance public 

participation 

9 

1 

0 

0 

0 

10 

Financial Viability 

Municipal Financial Viability and 
Management 

To strengthen the financial 
managementsystem 


0 

0 

4 

2 

6 

Community Based 
Participation and 
Planning 

Sustainable Local Economic 

Development 

To enhance public 

participation 

0 

0 

0 

0 

0 

0 

SUB-TOTAL 

10 

5 

0 

4 

2 

21 



154 | P a g e 







































NUMBER OF BENEFICIARIES WHO COMPLETED TRAINING BY TYPE OF LEARNING INTERVENTION 


TYPE OF LEARNING 
INTERVE NTION 

NUMBER OF BENEFICIARIES BY OCCUPATION CATEGORY 

TOTAL 

Legislator 

s 

Managers 

Professionals 

Technicians and 
Trade Workers 

Community and 
Personal Services 
Workers 

Clerical and 
Administrati 
ve Workers 

Sales and 

Service 

Workers 

Machine 

ry 

Operato 
rs and 
Drivers 

Elementary 

Workers 

57 

Apprenticeship 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Bursary 

0 

1 

1 

0 

0 

0 

0 

0 

0 

2 

Learnership 

0 

0 

6 

0 

0 

0 

0 

0 

0 

6 

RPL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Skills Programme 

0 

0 

0 

0 

0 

3 

0 

0 

1 

4 

Short Course: Non- 
credit 

0 

0 

0 

0 

0 

5 

0 

0 

0 

5 

TOTAL 

0 

1 

7 

0 

0 

8 

0 

0 

1 

17 


155 | P a g e 
































TYPE OF LEARNING INTERVENTION BY NQF LEVEL 

TYPE OF LEARNING INTERVENTION 

NQF LEVEL OF LEARNING INTERVENTIONS 

TOTAL 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

17 

Apprenticeship 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Bursary 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Learnership 

0 

0 

0 

0 

0 

6 

0 

1 

0 

0 

7 

RPL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Skills Programme 

0 

0 

1 

0 

0 

0 

0 

1 

0 

0 

2 

ShortCourse: Non-credit 

0 

0 

0 

0 

8 

0 

0 

0 

0 

0 

8 

TOTAL 

0 

0 

1 

0 

8 

6 

0 

2 

0 

0 

17 






































19 FINANCIAL PERFORMANCE 


This chapter comprises ofthree components: 

• ComponentA: Statements of Financial Performance 

• ComponentB: Cash Flow Managementand Investments 

• ComponentC: OtherFinancial Matters 


19.1 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE 

The information will be included afterthe final audited setofthe 2018/2019 Financial Statements. 

Tswelopele Local Municipality 
(Registration number FS183) 

Annual Financial Statements forthe year ended 30 J une 2019 
Statementof Financial Performance 

Figures in Rand 2019 2018 

Restated* 


Revenue 

Revenue from exchange transactions 


Service Charges 

53 454 997 

44 084 866 

Rental of facilities and equipment 

920 542 

982 546 

Interest received - trading 

870 236 

196 959 

Licences and permits 

24 229 

21 700 

Operational Revenue 

1 146 913 

770 103 

Interest received - Investment 

1 744 763 

1 025 110 

Fair value adjustment 

4 023 853 

4 375 401 

Actuarial gains 

510 323 

- 

Gain on biological assets and agricultural produce 

37 970 

323 827 

Dividends received 

58 441 

51428 

Total revenue from exchange transactions 

62 792 267 

51 831940 


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Revenue from non-exchange transactions 
Taxation revenue 

P roperty rates 22 293 212 20 958 681 


Transferrevenue 

Governmentgrants & subsidies 
Public contributions and donations 
Fines, penalties and forfeits 

Total revenue from non-exchange transactions 
Total revenue 


108 453 793 99 446 151 

2 268 000 500 000 

331 400 268 900 

133 346 405 121 173 732 

196 138 672 173 005 672 


Expenditure 


Expenditure 


Employee related costs 

(62 927 302) 

(60 150 599) 

Remuneration ofcouncillors 

(5 522 232) 

(5 335 771) 

Depreciation and amortisation 

(24 288 482) 

(23 863 390) 

Impairment loss 

(141 146) 

(2 291 990) 

Finance costs 

(6 468 292) 

(7 812 659) 

Lease rentals on operating lease 

(356 021) 

(97 423) 

Debt Impairment 

(21 210 707) 

(5 122 619) 

Bulk purchases 

(38 631 963) 

(36 437 704) 

Contracted services 

(4 077 494) 

(5 269 996) 

Actuarial Services 

- 

(1 039 842) 

General expenditure 

(22 142 549) 

(24 123 521) 


General expenses 


Total expenditure 


185 766 188 


171545 514 


Surplus forthe yearend 


10 372 484 1 460 158 


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19.2 GRANTS 


Governmentgrants and subsidies 

2019 

2018 

Capital and operating grants 



Equitable share 

66 966 000 

59 702 000 

Financial ManagementGrant 

1 970 000 

1 900 000 

EPWP GovernmentGrant 

1 000 000 

1 000 000 

Free State Capacity building grant 

1 000 000 

- 

INEP Grant 

2 947 699 

6 486 943 

Regional Bulk Infrastructure 

4 402 488 

16 683 813 

Municipal infrastructure grant 

30 167 606 

13 673 395 


108 453 793 

99 446 151 


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19.3 ASSET MANAGEMENT 


Monthly monitoring and preparation of reconciliations of votes for assets acquired is conducted and newly 
acquired assets can also be detected if they were not reported in advance by the SCM Unit. Assets are then 
registered and dispatched to the relevant user after all asset management processes have been exhausted i.e. 
classification, coding, etc. 

The municipality is in the process recruiting the SMC and Asset Manager for proper and improved management 
of assets in the municipality. 


19.4 SOURCES OF FINANCE 


Figures in Rand 

2019 

2018 


Revenue 




Service Charges 


53 454 997 

44 084 866 

Rental of facilities and equipment 


920 542 

982 546 

Interest received - trading 


870 236 

196 959 

Licences and permits 


24 229 

21 700 

0perational Revenue 


1 146 913 

770 103 

Interest received - Investment 


1 744 763 

1 025 110 

Fair value adjustment 


4 023 853 

4 375 401 

Actuarial gains 


510 323 

- 

Gain on biological assets and agricultural produce 


37 970 

323 827 

Dividends received 


58 441 

51428 

Total revenue from exchange transactions 


62 792 267 

51 831940 


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19.5 CASH FLOW MANAGEMENT AND 

INVESTMENTS 


Cash Flow Statement 



Figures in Rand 

2019 

2018 



Restated* 

Cash flows from operating activities 



Receipts 



Sale ofgoods and services 

59 428 212 

49 335 265 

Grants 

99 175 488 

102 088 786 

Interest income 

2 614 999 

1 222 069 

Dividends received 

58 441 

51428 

Fines, penalties and forfeits 

331 400 

268 900 

Other receipts 

4 384 844 

2 233 949 

VAT receipts 

2 039 242 

- 


168 032 626 

155 200 397 

Payments 



Employee costs 

(68 415 488) 

(64 849 958) 

Suppliers 

(611 846 911) 

(39 015 410) 

Finance costs 

(4 436 979) 

(7 812 659) 

VAT payments 

- 

(4 136 126) 


(134 699 378) 

(115 814 153) 

Netcash flows from operating activities 

33 333 248 

39 386 703 

Cash flows from investing activities 



Purchase of property, plantand equipment 

(36 606 582) 

(31 849 703) 

Cash flows from financing activities 



Repayment of other financial liabilities 

102 709 

(868 650) 


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Finance lease payments 

926 260 

(606 921) 

Net increase/ (decrease) in cash and cash equivalents 

1 028 969 

(1475 571) 

Net increase / (decrease) in cash and cash equivalents 

(2 244 365) 

6 060 970 

Cash and cash equivalents atthe beginning of the year 

11 135 395 

5 074 425 


Cash and cash equivalents atthe end ofthe year 8 891 030 11 135 395 


Cash and cash equivalents attheend oftheyear 


19.6 OTHER FINANCIAL MATTERS 


The information will be included afterthe final audited setofthe 2018/2019 Financial Statements. 


19.7 SUPPLY CHAIN MANAGEMENT 


SUPPLY CHAIN MANAGEMENT UNIT 

The functions ofthe SCM unit involve: 

1. Managing demand procedures and acquisitions inciuding policies, procedures, database, 
compliance and adherence to prescribed procurement practices 

2. Ensuring tender evaluation and contract prescriptare adhered to 

3. Managing compliance, risks, performance and reporting in the supply chain management 
system 

4. Coordinating, controlling and applying logistics management practices and procedures in order 
to administerand manage the receipt, safeguarding and issuing of store items. 

Tswelopele Supply Chain Managementis a unitwithin the Finance Section. Itis comprised of: 

■ The Chief Financial Officer (Head ofSCM Unit) 

■ Manager: SCM & Asset 

■ SCM Practitioner 

■ 2 x Principle ProcurementClerks 

The SCM regulations stipulate the following: 

a) SCM regulation 6(2) (a) (i) - that the council of a municipality must maintain oversight over the 
implementation of its SCM policy. Forthe purpose ofsuch oversightthe accounting officer must within 


162 I P a ge 




















30 days of each financial year submit a report on the implementation of the SCM policy of the 
municipality to the Council. 

b) SCM reguiation 6(2) (3) - the Accounting Officer shall within 10 days afterthe end of each quarter 
submit implementation reports on SCM to the Mayor. 

INTERNAL SCM PROCEDURES AND PROCESSES 
Threshold values 

The threshold values have been determined as follows: 

1) Petty cash - R100 

2) Up to R1 000 (vatincluded) - One written price quotation 

3) R1 001 - R2,000 (vat included) - Two written price quotations 

4) R2 001 - R30,000 (vat included) - Three written price quotations 

5) R30 001 - R200, 000 (vatincluded) - Three written formal price quotations 

6) Above R200 000 (vat included) - Competitive bidding process 

SCM Process foracquisitions upto R200 000.00 

The SCM process ofTswelopele Local Municipality operates as follows; 

• Demand Form - The requesting department completes a demand form which is approved by 
the Head of Department or any delegated official. The demand form is submitted to SCM 
practitioner who sources quotations. 

• A requisition is raised by the SCM Practitioner and approved by the CFO and the Municipal 
Manager. 

• Purchase Order - Based on the above thresholds, quotations are sourced from potential 
suppliers. A purchase order is raised for the awarded quotation. The orders are done in 
triplicate of which one copy is sent to the supplier, one copy for filing and one copy is sent to 
creditors for processing. The order numbers are sequentially numbered from the system. The 
purchase orders are approved by the CFO and in his absence by a Senior Official delegated by 
theCFO. 

The SCM processes are monitored monthly by use of irregular expenditure registers and deviations 
registers. 

SCM Process for acquisition above R200 000.00 
Bid Documents 

The bids documents are as prescribed by the National Treasury include the General Conditions of 
Contract. 

Bid Committee Structures 

The following committees have been established: 

i) The bid specification committee 

ii) The bid evaluation committee 


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iii) The adjudication committee 

The Accounting Officer appoints members for each committee. 

According to the SCM policy the composition ofthe above committees should be as foiiows: 

i) Bid Specification committee - mustbe composed of: 

a) One or more officials of the municipality, preferably from user departments requiring the goods or 
services. 

b) SCM practitioners 

c) And when appropriate, include external technical specialists. 

ii) Bid evaluation committee - mustas faras possible be composed of: 

a) Officials from departments requiring the goods and services 

b) Atleastone SCM practitionerofthe municipality 

iii) Bid adjudication committee - must consist of 

a) At leastfour senior managers ofthe municipality (induding the CFO) 

b) Atleastone SCM practitioner who is an official ofthe municipality 

c) A technical expert in the relevant field who is an official of the municipality 

Compliance- The bid committees meetthe requirements ofthe SCM policy and SCM regulations. 


19.8 MUNICIPAL SERVICE CHARGES ASSESSMENT AND OUTSTANDING 

DEBTORS. 

Consumerdebtors 

Gross balances 

2019 

2018 

Electricity 

13 039 395 

11 027 787 

Water 

12 325 479 

9 646 248 

Sewerage 

17 641 071 

13 744 170 

Refuse 

12 421 486 

9 533 266 

Other 

3 258 032 

2 604 934 


58 685 463 

46 556 405 





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Report of the auditor-general to the Free State Legislature and the 
council on the Tswelopele Local Municipality 


Report on the audit of the financial statements 


Qualified opinion 

1. I have audited the financial statements of the Tswelopele Local Municipality set out on 
pages ... to ..., which comprise the statement of financial position as at 30 June 2019, 
the statement of financial performance, statement of changes in net assets, cash flow 
statement, the statement of comparison of budget and actual amounts and the 
appropriation statement for the year then ended, as well as the notes to the financial 
statements, including a summary of significant accounting policies. 

2. In my opinion, except for the possible effects of the matters described in the basis for 
qualified opinion section of this auditor’s report, the financial statements present fairly, in 
all material respects, the financial position of the Tswelopele Local Municipality as at 30 
June 2019, and its financial performance and cash flows for the year then ended in 
accordance with the South African Standards of Generally Recognised Accounting 
Practice (SA Standards of GRAP) and the requirements of the Municipal Finance 
Management Act of South Africa, 2003 (Act no. 56 of 2003) (MFMA) and the Division of 
Revenue Act of South Africa, 2018 (Act no. 1 of 2018) (Dora). 

Basis for qualified opinion 

Property, plant and equipment 

3. The municipality did not disclose all items of property, plant and equipment owned by it 
in the fixed asset register. I also identified assets that were classified contrary to the 
current use. Consequently, these and other matters resulted in property, plant and 
equipment being understated by R5 520 338. This also has an impact on the 
depreciation charge for the year, as well as the accumulated surplus. 

4. I was unable to obtain sufficient appropriate audit evidence for prior year adjustments to 
the balances of property, plant and equipment, and infrastructure under construction 
additions. I was unable to confirm the adjustment and additions by alternative means. 
Consequently, I was unable to determine whether any adjustments were necessary to 
these balances, and infrastructure under construction additions included in property, 
plant and equipment in note 5 to the financial statements, stated at R515 913 305 and 
R28 343 511 respectively. This also has an impact on adjustments disclosed in the 


165 | P a g e 










previous period error note 49 and the accumulated surplus in the statement of financial 
position. 

Investment properties 

5. I was unable to obtain sufficient appropriate audit evidence for the classification of 
investment property as the municipality did not have appropriate evidence of the purpose 
that the property is held for. I was unable to confirm the investment property by 
alternative means. Consequently, I was unable to determine whether any adjustments 
were necessary to investment property, stated at R117 438 143 (2018: R113 466 805) in 
note 4 to the financial statements. In addition, the municipality recognised land that was 
not registered in its name as investment property. This resulted in an overstatement of 
investment property disclosed in note 4 to the financial statements, and a resultant 
impact on the surplus for the period and on the accumulated surplus of R1 100 267. 

Context for the opinion 

6. I conducted my audit in accordance with the International Standards on Auditing (ISAs). 
My responsibilities under those standards are further described in the auditor-general’s 
responsibilities for the audit of the financial statements section of this auditor’s report. 

7. I am independent of the municipality in accordance with sections 290 and 291 of the 
International Ethics Standards Board for Accountants’ Code of ethics forprofessional 
accountants, and parts 1 and 3 of the International Ethics Standards Board for 
Accountants’ International code ofethics for professional accountants (including 
International Independence Standards) (IESBA codes), as well as the ethical 
requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical 
responsibilities in accordance with these requirements and the IESBA codes. 

8. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a 
basis for my qualified opinion. 

Material uncertainty relating to going concern 

9. I draw attention to the matter below. My opinion is not modified in respect of this matter. 

10.1 draw attention to note 52 to the financial statements, which indicates that trade and 
other payables, retentions payable and capital commitments already contracted 
increased from the previous year, while the current assets in the statement of financial 
position decreased. As disclosed in the statement of financial position, the current 
liabilities exceeded current assets by R52 000 494 (2018: R46 399 705). In addition, 
included in trade payables note 20, the municipality owed Eskom R60 295 319 (2018: 
R42 357 458) and the Sand-Vet R7 696 765 (2018: R2 837 247) as at 30 June 2019, 


166 | P a ge 









which has been long overdue. These events or conditions, along with other matters as 
set forth in note 52, indicate that a material uncertainty exists that may cast significant 
doubt on the municipality’s ability to continue as a going concern. 

Emphasis of matters 

11.1 draw attention to the matters below. My opinion is not modified in respect of these 
matters. 

Irregular expenditure 

12. As disclosed in note 55 to the financial statements, irregular expenditure of R51 110 239 
(2018: R349 495) was incurred due to non-compliance with supply chain management 
(SCM) requirements. In addition, the full extent of irregular expenditure is still in the 
process of being determined. 

Unauthorised expenditure 

13. As disclosed in note 53 to the financial statements, unauthorised expenditure of 

R4 049 823 (2018: R4 153 059) was incurred, due to overspending of main divisions 
within the vote. 

Fruitless and wasteful expenditure 

14. As disclosed in note 54 to the financial statements, fruitless and wasteful expenditure of 
R2 290 006 (2018: R4 874 385) was incurred, mainly due to interest on arrear payments 
to creditors. 

Restatement of corresponding figures 

15. As disclosed in note 49 to the financial statements, the corresponding figures for 
30 June 2018 were restated as a result of errors in the financial statements of the 
municipality at, and for the year ended, 30 June 2019. 

Material impairment 

16. As disclosed in note 36 to the financial statements, consumers and other receivables 
were impaired by R21 210 707 (2018: R5 122 619). 

Other matter 

17.1 draw attention to the matter below. My opinion is not modified in respect of this matter. 


167 | P a ge 








Unaudited disclosure notes 


18. In terms of section 125(2) (e) of the MFMA the municipality is required to disclose 
particulars of non-compliance with the MFMA in the financial statements. This disclosure 
requirement did not form part of my audit of the financial statements and, accordingly, I 
do not express an opinion on it. 

Unaudited supplementary schedules 

19. The supplementary information set out on pages 16 to 17 does not form part of the 
financial statements and is presented as additional information. I have not audited this 
schedule and, accordingly, I do not express an opinion on it. 

Responsibilities of the accounting officer for the financial statements 

20. The accounting officer is responsible for the preparation and fair presentation of the 
financial statements in accordance with the SA Standards of GRAP and the 
requirements of the MFMA and Dora, and for such internal control as the accounting 
officer determines is necessary to enable the preparation of financial statements that are 
free from material misstatement, whether due to fraud or error. 

21. In preparing the financial statements, the accounting officer is responsible for assessing 
the Tswelopele Local Municipality’s ability to continue as a going concern, disclosing, as 
applicable, matters relating to going concern and using the going concern basis of 
accounting unless the appropriate governance structure either intends to liquidate the 
municipality or to cease operations, or has no realistic alternative but to do so. 

Auditor-general’s responsibilities for the audit of the financial statements 

22. My objectives are to obtain reasonable assurance about whether the financial 
statements as a whole are free from material misstatement, whether due to fraud or 
error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is 
a high level of assurance, but is not a guarantee that an audit conducted in accordance 
with the ISAs will always detect a material misstatement when it exists. Misstatements 
can arise from fraud or error and are considered material if, individually or in aggregate, 
they could reasonably be expected to influence the economic decisions of users taken 
on the basis of these financial statements. 

23. A further description of my responsibilities for the audit of the financial statements is 
included in the annexure to this auditor’s report. 


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Report on the audit of the annual performance report 


Introduction and scope 

24. In accordance with the Public Audit Act of South Africa, 2004 (Act no. 25 of 2004) (PAA) 
and the general notice issued in terms thereof, I have a responsibility to report material 
findings on the reported performance information against predetermined objectives for 
the selected key performance area (KPA) presented in the annual performance report. I 
performed procedures to identify findings but not to gather evidence to express 
assurance. 

25. My procedures addressed the reported performance information, which must be based 
on the approved performance planning documents of the municipality. I have not 
evaluated the completeness and appropriateness of the performance indicators included 
in the planning documents. My procedures also did not extend to any disclosures or 
assertions relating to planned performance strategies and information in respect of future 
periods that may be included as part of the reported performance information. 
Accordingly, my findings do not extend to these matters. 

26.1 evaluated the usefulness and reliability of the reported performance information in 
accordance with the criteria developed from the performance management and reporting 
framework, as defined in the general notice, for the following selected KPA presented in 
the annual performance report of the municipality for the year ended 30 June 2019: 


KPA 

Pages in the annual 
performance report 

KPA 2 - basic service and infrastructure 

X - X 


27. I performed procedures to determine whether the reported performance information was 
properly presented and whether the performance was consistent with the approved 
performance planning documents. I performed further procedures to determine whether 
the indicators and related targets were measurable and relevant, and assessed the 
reliability of the reported performance information to determine whether it was valid, 
accurate and complete. 

28. The material finding in respect of the usefulness and reliability of the selected KPA is as 
follows: 


169 | Page 
















KPA 2 - basic service delivery and infrastructure 

Weekly collection of domestic waste to all formalised residential areas, public facilities and 

businesses 

29. The indicator is not clear and unambiguous to ensure that the data that is collected is 
consistent and clear. The weekly performance was not determined to establish the level 
of service delivery for the year. 

Other matters 

30.1 draw attention to the matters below. 

Achievement of planned targets 

31. Referto the annual performance report on pages ... to ... for information on the 
achievement of planned targets for the year. This information should be considered in 
the context of the material finding on the usefulness of the reported performance 
information in paragraph 29 of this report. 

Adjustment of material misstatements 

32.1 identified material misstatements in the annual performance report submitted for 
auditing. These material misstatements were on the reported performance information of 
KPA 2: basic services and infrastructure. As management subsequently corrected only 
some of the misstatements, I raised a material finding on the reliability of the reported 
performance information. Those that were not corrected are reported above. 


Report on the audit of compliance with legislation 


Introduction and scope 

33. In accordance with the PAA and the general notice issued in terms thereof, I have a 
responsibility to report material findings on the compliance of the municipality with 
specific matters in key legislation. I performed procedures to identify findings but not to 
gather evidence to express assurance. 

34. The material findings on compliance with specific matters in key legislation are as 
follows: 

Annual financial statements 

35. The financial statements submitted for auditing were not prepared in all material respects 
in accordance with the requirements of section 122(1) of the MFMA. Material 


170 | P a g e 










misstatements of non-current assets and disclosure items identified by the auditors in the 
submitted financial statements were subsequently corrected, but the uncorrected 
material misstatements resulted in the financial statements receiving a qualified audit 
opinion. 

Expenditure management 

36. Money owed by the municipality was not always paid within 30 days, as required by 
section 65(2) (e) of the MFMA. 

37. Reasonable steps were not taken to prevent irregular expenditure, as required by section 
62(1) (d) of the MFMA. The value of R51 110 239 disclosed in note 55 is not complete, 
as management was still in the process of quantifying the full extent of the irregular 
expenditure. The majority of the disclosed irregular expenditure was caused by the 
absence of a senior SCM practitioner on the bid adjudication committee. 

38. Reasonable steps were not taken to prevent fruitless and wasteful expenditure of R2 290 
006 disclosed in note 55 to the annual financial statements, in contravention of section 
62(1) (d) of the MFMA. The majority of the disclosed fruitless and wasteful expenditure 
was caused by interest on the arrear payments to creditors. 

39. Reasonable steps were not taken to prevent unauthorised expenditure of R4 049 823 
disclosed in note 53 to the annual financial statements, in contravention of section 62(1) 
(d) of the MFMA. The majority of the unauthorised expenditure was caused by the 
overspending of main divisions within the vote. 

Asset management 

40. An effective system of internal control for assets was not in place, as required by 
section 63(2) (c) of the MFMA. 

Procurement and contract management 

41. Some goods and services with a transaction value below R200 000 were procured 
without obtaining the required price quotations, in contravention of SCM regulation 17(a) 
and (c). 

42. Some quotations were accepted from prospective providers who were not on the list of 
accredited prospective providers and did not meet the listing requirements prescribed by 
the SCM policy, in contravention of SCM regulations 16(b) and 17(b). 

43. Some quotations were accepted from bidders who did not submit a declaration on 
whether they are employed by the state or connected to any person employed by the 
state, as required by SCM regulation 13(c). Similar non-compliance was also reported in 
the previous year. 


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44. Some quotations were accepted trom, and contracts awarded to, bidders whose tax 
matters had not been declared by the South African Revenue Service to be in order, in 
contravention of SCM regulation 43. Similar non-compliance was also reported in the 
previous year. 

45. Some contracts were awarded to bidders based on points given for criteria that differed 
from those stipulated in the original invitation for bidding, in contravention of SCM 
regulations 21 (b) and 28(1 )(a) and the Preferential Procurement Regulations. 

46. Competitive bids were adjudicated by a bid adjudication committee that was not 
composed in accordance with SCM regulation 29(2). 

47. Some contracts were awarded to bidders based on functionality criteria that were not 
stipulated in the original invitation for bidding, in contravention of Preferential 
Procurement Regulations. 

48. The performance of contractors or providers was not monitored on a monthly basis, as 
required by section 116(2) (b) of the MFMA. Similar non-compliance was also reported in 
the previous year. 

49. The contract performance and monitoring measures and methods were not sufficient to 
ensure effective contract management, as required by section 116(2) (c) of the MFMA. 
Similar non-compliance was also reported in the previous year. 

Consequence management 

50. Unauthorised expenditure by the municipality was not investigated to determine if any 
person is liable for the expenditure, as required by section 32(2)(a) of the MFMA. 

51. Unauthorised expenditure was certified by the council as irrecoverable without having 
conducted an investigation to determine the recoverability of the expenditure, in 
contravention of section 32(2) (a) (ii) of the MFMA. 

52. Irregular expenditure by the municipality was not investigated to determine if any person 
is liable for the expenditure, as required by section 32(2) (b) of the MFMA. 

53. Losses resulting from irregular expenditure were certified by the council as irrecoverable 
without having conducted an investigation to determine the recoverability of the 
expenditure, in contravention of section 32(2) (b) of the MFMA. 


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Other information 


54. The accounting officer is responsible for the other information. The other information 
comprises the information included in the annual report. The other information does not 
include the financial statements, the auditor’s report and the selected KPA presented in 
the annual performance report that has been specifically reported in this auditor’s report. 

55. My opinion on the financial statements and findings on the reported performance 
information and compliance with legislation do not cover the other information and I do 
not express an audit opinion or any form of assurance conclusion thereon. 

56. In connection with my audit, my responsibility is to read the other information and, in 
doing so, consider whether the other information is materially inconsistent with the 
financial statements and the selected KPA presented in the annual performance report, 
or my knowledge obtained in the audit, or otherwise appears to be materially misstated. 

57.1 did not receive the other information prior to the date of this auditor’s report. When I do 
receive and read this information, if I conclude that there is a material misstatement 
therein, I am required to communicate the matter to those charged with governance and 
request that the other information be corrected. If the other information is not corrected, I 
may have to retract this auditor’s report and re-issue an amended report as appropriate. 
However, if it is corrected this will not be necessary. 


Internal control deficiencies 


58.1 considered internal control relevant to my audit of the financial statements, reported 
performance information and compliance with applicable legislation; however, my 
objective was not to express any form of assurance on it. The matters reported below 
are limited to the significant internal control deficiencies that resulted in the basis for the 
qualified opinion, findings on the annual performance report and the findings on 
compliance with legislation included in this report. 

59. There is a breakdown in the trust between the political and administrative leadership that 
delays the efficiency of interaction and processes between the two centres of power. 

This further results in a slow response to matters by both the political leadership and the 
administrative management. 

60. The action plan contained various actions that addressed the correction of matters for 
financial reporting, but did not drive the timely implementation of internal control 
measures to address various the previous year’s matters. This resulted in matters only 
being addressed at year end and with the assistance of consultants. 


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Audilo" (^enerq I 


Bloemfontein 
29 November 2019 



AUDITOR GEN 

SOUTH AFR 


E R A L 
I C A 


Auditing to build public confidence 










Annexure - Auditor-general’s responsibility for the audit 


1. As part of an audit in accordance with the ISAs, I exercise professional judgement and 
maintain professional scepticism throughout my audit of the financial statements, and the 
procedures performed on reported performance information for the selected KPA and on 
the municipality’s compliance with respect to the selected subject matters. 

20 Financial statements 

2. In addition to my responsibility for the audit of the financial statements as described in 
this auditor’s report, I also: 

• Identify and assess the risks of material misstatement of the financial statements 
whether due to fraud or error, design and perform audit procedures responsive to 
those risks, and obtain audit evidence that is sufficient and appropriate to provide a 
basis for my opinion. The risk of not detecting a material misstatement resulting 
from fraud is higher than for one resulting from error, as fraud may involve collusion, 
forgery, intentional omissions, misrepresentations, or the override of internal control 

• obtain an understanding of internal control relevant to the audit in order to design 

audit procedures that are appropriate in the circumstances, but not for the purpose 
of expressing an opinion on the effectiveness of the municipality’s internal control 

• evaluate the appropriateness of accounting policies used and the reasonableness of 

accounting estimates and related disclosures made by the accounting officer 

• Conclude on the appropriateness of the accounting officer’s use of the going concern 

basis of accounting in the preparation of the financial statements. I also conclude, 
based on the audit evidence obtained, whether a material uncertainty exists related 
to events or conditions that may cast significant doubt on the Tswelopele Local 
Municipality’s ability to continue as a going concern. If I conclude that a material 
uncertainty exists, I am required to draw attention in my auditor’s report to the 
related disclosures in the financial statements about the material uncertainty or, if 
such disclosures are inadequate, to modify the opinion on the financial statements. 
My conclusions are based on the information available to me at the date of this 
auditor’s report. However, future events or conditions may cause a municipality to 
cease continuing as a going concern 

• Evaluate the overall presentation, structure and content of the financial statements, 

including the disclosures, and whether the financial statements represent the 
underlying transactions and events in a manner that achieves fair presentation. 


175 | P a ge 








Communication with those charged with governance 

3. I communicate with the accounting officer regarding, among other matters, the planned 
scope and timing of the audit and significant audit findings, including any significant 
deficiencies in internal control that I identify during my audit. 

4. I also confirm to the accounting officer that I have complied with relevant ethical 
requirements regarding independence, and communicate all relationships and other 
matters that may reasonably be thought to have a bearing on my independence and, 
where applicable, related safeguards. 


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21 ANNUAL FINANCIAL STATEMENT WITH THE ANNUAL AUDIT COMMITTEE REPORT 
2018 / 2019 FINANCIAL YEAR (ANNEXURE A) 


2018/2019 Financial Statements. 


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22 AUDIT RECOVERY PLAN 


FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROPERTY, 
PLANT& 
EQUIPMENT 

CAF 77: PPE - Unable 
to trace infrastructure 
assets to the fixed 
assets register 

Assets (identified from the 
floor) could not be traced to 
the 2018/19 municipal fixed 
asset register 

1) Revisit the population 
of property, plant and 
equipment in order to 
ensure that similar 
discrepancies have not 
occurred. 

2) Rectify the Fixed 

Assets Register 

30/06/2020 

Fixed Assets Register 

PROPERTY, 
PLANT& 
EQUIPMENT 

CAF 90 : PPE - Prior 
period adjustments to 
PPE unsubstantiated 

Insufficient audit evidence for 
prior year adjustments to the 
balances of PPE and 
infrastructure under 
construction additions 

Compile information for 
submission to AGSA 
relating to the significant 
concerns raised. 

• Recognised "gains" of 
land, infrastructure and 
community assets 

• assets removed that 
were previously 
recognised at deemed 
cost and performed a 
similar calculation to 

30/06/2020 

Schedule of adjustments 
and detailed supporting 
information 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 




bring it back into the 
fixed asset register. 

• Assets reclassified as 
investment property. 

• The land and 
investment property 
assets value were 
determined by using the 
valuation roll fair value. 

• ensure completeness 
of asset register. 



INVESTMENT 

PROPERTY 

CAF 54 : Investment 
property - 
Inappropriate 
classification of 
investment property 

1) Insufficient audit evidence 
for the classification of 
investment property due to 
lack of appropriate evidence 
of the purpose of holding the 
property. 

2) Land not registered in the 
name of the municipality was 
recognised as investment 
property 

1) Revisit the population 
of investment property in 
order to ensure that the 
classification is 
appropriate in 
accordance with the 
definition of investment 
property 

2) Rectify the Investment 
Property Register 

30/06/2020 

Verified Investment 
property register 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

INVESTMENT 

PROPERTY 

CAF 53 : Investment 
property - Property not 
in the name of the 
municipality (ISS.53) 

Some properties in the 
investment register were not 
registered in the name of the 
municipality and should 
therefore not be in the 
investment property register 

Perform a deed search 
on investment property 
to ensure confirm 
ownership of investment 
property of the 
municipality and make 
necessary adjustments 
and reclassifications 

30/06/2020 

Updated investment 
register and supporting 
deed registration 
evidence 

INVESTMENT 

PROPERTY 

CAF 55 : Investment 
property - Rental 
controls not obtained 
(RFI 64) 

(Classification issue) 
(ISS.55) 

Rental agreements relating to 
some properties on the 
investment register were not 
submitted for audit 

Ensure that all properties 
currently rented out have 
a rental agreement 
signed 

30/06/2020 

Rental agreements 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

INVESTMENT 

PROPERTY 

CAF 56 : Investment 
property - Registered 
owner of investment 
property could not be 
obtained (RFI 32) 
(ISS.56) 

Owners of some properties 
on the Investment Register 
could not be determined 

Investigate the 
ownership of the 
properties and correctly 
classify the properties. 

30/06/2020 

Deed search 

Updated Investment 
register and Fixed 

Assets Register (if 
applicable) 

EXPENDITURE 

MANAGEMENT 

CAF 14 & CAF 43 : 
Expenditure 
management - 
Payments not made 
within 30 days 

Non-compliance with section 
65 (2) of the MFMA 

Monthly GRN should be 
done in the financial 
system regularly and an 
aging report printed and 
amounts owing 
approaching the 30 days 
age brought to the 
attention of management 

Monthly 

Age analysis schedule 

EXPENDITURE 

MANAGEMENT 

CAF 8 :Consequence 
Management - No 
investigation 
conducted on UIF 
expenditure 

Evidence that an 
investigation of fruitless and 
wasteful expenditure was 
performed by MPAC 

Submit fruitless and 
wasteful expenditure lists 
at MPAC scheduled 
meetings for 
investigation 

Per MPAC 
sitting 

Minutes of the MPAC 
and investigation report 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

EXPENDITURE 

MANAGEMENT 

CAF 65 :Contracted 
services - VAT 
incorrectly classified 
(ISS.65) 

Input VAT was incorrectly 
classified as contracted 
services expenditure. 

Review the population of 
contracted services and 
allocate the transactions 
to correct line items of 
the financial statements. 
Provide the corrective 
journal entry for audit. 

30/06/2020 

Corrective journal and 

supporting 

documentation 

EXPENDITURE 

MANAGEMENT 

CAF 64: VAT 
receivable - VAT 201 
not submitted 
timeously (ISS.64) 

The VAT201 declarations 
have not been submitted 
timeously as required by the 
VAT act. 

Submit VAT 201 
timeously to SARS, i.e. 
by the 25th of each 
month 

30/06/2020 

VAT 201 s 

EXPENDITURE 

MANAGEMENT 

CAF 97: VAT 
Receivable - Non- 
compliance of the VAT 
Act Sec 20 (ISS.97) 

Invoices were identified as 
not complying with section 20 
of the VAT Act due to the 
municipalities VAT number 
not appearing on the invoice 

Implement controls to 
ensure that VAT 
requirements are 
complied with. 

28/02/2020 

Proof of review of 
invoices 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

EXPENDITURE 

MANAGEMENT 

CAF 99 :General 
expenditure - Unable 
to confirm occurrence 
of councillor’s travel 
allowance (ISS.99) 

The occurrence of the travel 
claims by the councillors 
could not be verified 

Finance and Corporate 
services to review 

2018/19 councillors 
travel claims 

Continually 

Councillors travelling 
claims 

PROCUREMENT 

CAF 8 :Consequence 
Management - No 
investigation 
conducted on UIF 
expenditure 

There is no evidence that an 
investigation of irregular 
expenditure was performed 
by MPAC 

Re-submit irregular 
expenditure list for 
2017/2018 and 2018/19 
to MPAC for 
investigation 

30/06/2020 

Minutes of the MPAC 
and investigation report 




Submit irregular 
expenditure lists at 

MPAC scheduled 
meetings for 
investigation 

Per MPAC 
sitting 

Minutes of the MPAC 
and investigation report 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROCUREMENT 

COA 50: Procurement 
and contract 
management - 
Procurement without 
using SCM unit or 
following SCM 
legislative 

requirements (ISS.50) 

Some services were 
procured without following 
the SCM policy and 
regulations. 

Some of the goods and 
services with a transaction 
value of below R200 000 
were procured without 
obtaining the required price 
quotations, in contravention 
of by SCM regulation 17(a) 
and (c). 

Procurement to be made 
in accordance with the 
SCM policy, SCM 
legislation and the 

MFMA 

Any non-compliance 
should be correctly 
classified 

Continually/Daily 


PROCUREMENT 

CAF 34: Procurement 
and contract 
management - Non- 
compliance identified 
(ISS.34) 

Noncompliance with SCM 
Regulation 28(1) (b) which 
states that a bid evaluation 
committee must evaluate 
each bidder's ability to 
execute the contract. 

The municipality's evaluation 
criteria do not include a 
determination of the bidder's 
capability and capacity to 
provide the goods/service. 

BEC minutes to include 
evaluation of bidder 
capability and capacity to 
provide the 
goods/services 

30/06/2020 

BEC minutes 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROCUREMENT 

CAF 87: General 
expenditure - Irregular 
expenditure identified 
(ISS.87) 

Monthly subscription services 
for municipal staff was done 
without any contract between 
the municipality and 

Vodacom 

Ensure a contract is in 
place between the 
municipality an the 
service providers 

30/06/2020 

New contracts 

PROCUREMENT 

COA 44 & 45: 
Procurement and 
contract management: 
Non-compliance 
identified on 
quotations (ISS.45) 

Some of the quotations were 
accepted from bidders; 

1) who did not submit a 
declaration of interest as 
required by SCM regulation 

13(c), 

2) who are not sole suppliers, 

3) without a contract of 
appointment, 

4) without evidence of CSD 
registration, and 

5) of which no reason of 
deviation is stated 

Suppliers to submit MBD 

4 forms together with 
quotations 

Suppliers who have 
accounts with the 
municipality confirmation 
for declaration of interest 
done initially will be 
requested quarterly by e- 
mail 

Ensure all relevant 
documentation is 
attached to procurement 
documentation 

Continually/Daily 



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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROCUREMENT 

COA 46: Procurement 
and contract 
management: Non- 
compliant tax status 
found on CSD tax 
compliance history 
report of winning 
suppliers (ISS.46) 

Some of the quotations were 
accepted from and contracts 
awarded to bidders whose 
tax matters had not been 
declared by the South African 
Revenue Service to be in 
order, in contravention of 

SCM regulation 43. Similar 
non-compliance was also 
reported in the prior year. 

Upon authorisation of the 
requisition, CSD tax 

Status compliance is 
checked 

Continually/Daily 


PROCUREMENT 

COA 07 & 92: 
Procurement and 
contract management: 
Bid Adjudication 
Committee not 
properly constituted 
(ISS.7) 

Competitive bids were 
adjudication by a bid 
adjudication committee that 
was not composed in 
accordance with SCM 
regulation 29(2). 

Municipal Manager to 
appoint the bid 
committees according to 
SCM Regulation 29(2) 

31/12/2020 

Appointment Letters of 
new bid Committee 
members issued by the 
Accounting Officer. 

Any other relevant 
documentation regarding 
delegations 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROCUREMENT 

COA30 & 31 
:Procurement and 
contract management 
- Non-compliance 
identified (ISS.30) 

Some of the contracts were 
awarded to bidders based on 
functionality criteria that were 
not stipulated in the original 
invitation for bidding, in 
contravention of Preferential 
Procurement Regulations 

Ensure adverts consists 
of functionality points 
where required. 

Ensure that evaluation 
report or bid committee 
minutes are complete, 
accurate and includes all 
relevant considerations. 

Continually 

Tender Adverts 

Bid evaluation report 

PROCUREMENT 

COA 32: Procurement 
and contract 
management - 
Supporting 
documentation, 
monitoring reports and 
contract not provided 
(RFI29) (ISS.32) 

The performance of 
contractors or providers was 
not monitored on a monthly 
basis, as required by section 
116(2) (b) ofthe MFMA. 
Similar non-compliance was 
also reported in the prior 
year. 

Monitoring of 
performance of contracts 
to be requested from 
end-users monthly 

Continually 

Monthly Performance 
monitoring reports for 
each project 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROCUREMENT 

COA 52: Reporting 
and disclosure of 
deviations from supply 
chain management 
processes (ISS.52) 

Noncompliance with the 
regulation that requires that 
deviation be reported "to the 
next meeting of council". 

SCM Regulation 36(2) states 
that the accounting officer 
must record the reasons for 
any deviations in terms of 
sub regulation (1) (a) and (b) 
and report them to the next 
meeting of the council. 

1) Implement internal 
controls to ensure review 
and monitoring of 
compliance with 
applicable laws and 
regulations. 

2) Report deviations to 
council as required by 
the SCM regulation, 
together with the SCM 
implementation report. 

30/06/2020 

Deviations submitted to 
Council 

PROCUREMENT 

CAF61: 51. 
Procurement and 
contract management: 
No procurement 
process started for 
continued needs of the 
municipality (ISS.61) 

No procurement process to 
appoint a new provider has 
commenced for AFS 
preparation and Assets 

Procurement of the 
service providers to 
commence after audit 

30/03/2019 

Appointment Letters of 
the service providers 


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FUNCTIONAL 

AREA 


DESCRIPTION / 
AUDIT FINDING 


NATURE 


REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 


DUE DATE 


EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 


PROPERTY, 

CAF 78 & 40: Fully 

Some movable assets 

Implement internal 30/04/2020 

Asset Management 

PLANT& 

depreciated assets still 

identified are still in use, but 

controls that will allow for 

verification report 

EQUIPMENT 

in use 

not depreciated. 

the re-assessment of the 




The municipality did not 

municipality's 




reassess the useful life of 

expectations about the 




assets that are still in use. 

useful life and residual 




The assets identified were 

value of assets, at the 




2016/17 disposals and 

end of each reporting 




therefore raising concern on 
completeness of assets 

period. 





Ensure that assets that 
are still in use, or 
expected to still be in 
use, are depreciated. 





Investigate the entire 
population for change in 
useful life and 
completeness of assets 



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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROPERTY, 

CAF 79: 

During the physical 

- A lease agreement or 

30/06/2020 

- Lease contract/ 

PLANT& 

Misclassification of 

verification of community 

contract to be issued to 


agreement if investment 

EQUIPMENT 

community assets 

assets, it was identified that a 
taxi rank was operating 
privately as a car wash and 
the municipality does not 
charge the car wash for the 
water usage or any rental 
income. This results in loss of 
further revenue for the 
municipality. 

the business operating 
the car wash. 

- Reclassification of 
property to Investment 
property if being rented 
out and not used as a 
taxi rank 


property 

- Management minutes 
for any change of 
intention 

PROPERTY, 

CAF 80: Unable to 

During the physical 

Revisit 2018/19 assets 

30/04/2020 

Asset Management 

PLANT& 

trace additions to the 

verification of assets 

additions population in 


verification report 

EQUIPMENT 

2018/19 FAR 

identified from the floor, could 
not be traced to the 2018/19 
municipal fixed asset register 

order to ensure that 
similar discrepancies 
have not occurred. 

Update the FAR for 
additions not correctly 
accounted for 

Ensure all 2019/2020 
additions to assets are 
correctly accounted for 
and FAR updated 

30/06/2020 

Updated FAR 

List of assets additions. 
Updated FAR 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

PROPERTY, 
PLANT& 
EQUIPMENT 

CAF 83 & 67: 

Indicators of 
impairment on 
community assets 

No impairment was written- 
off on the assets which were 
damaged, the municipality 
did not have appropriate 
processes in place to identify 
impairment to assets 

Ensure that during asset 
verification a thorough 
assessment of possible 
impairment is performed 
on all the assets and 
accounted for 
accordingly. 

Investigate the entire 
population in order to 
identify other indicators 
impairment. 

30/04/2020 

Asset Management 
verification report, 

Updated FAR 

PROPERTY, 
PLANT& 
EQUIPMENT 

CAF 38: All payment 
vouchers not provided 
for audit (Rfl 44) 
(ISS.38) 

Differences in additions were 
noted for meter replacements 
and Transfer station 

Obtain the signed copy 
of the transfer station 
donation certificate and 
ensure the meter 
replacements are 
correctly classified from 
WIP 

30/06/2020 

Corrected Fixed Assets 
Register and signed 
donation certificate 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

CONDITIONAL 

GRANTS 

CAF 17: Not all 

Section 71 Fteports 
were timeously 
submitted 

Section 71 reports on the 
receipt and expenditure of 
conditional grants received 
and spent by the Municipality 
were not submitted as 
advised by section 71 of 
MFMA 

To put controls in place 
to ensure the timeous 
submission of all section 
71 report as per 
legislative requirements 

Monthly 

Proof of section 71 
uploads to Treasury 

Portal. 

CASH AND 
CASH 

EQUIVALENTS 

CAF 19: Cash and 
cash equivalents: 

Bank reconciliations 
not provided 

The April 2019 bank 
reconciliation was not 
submitted. 

Perform Bank 
reconciliation monthly 

Monthly 

System generated bank 

Reconciliation 

statement. 

DEBTORS 

CAF 13: Duplicate 
debtors on the 
indigent register 

Through inspection of the 
indigent register it was noted 
that some of indigents 
appeared more than once on 
the list with more than one 
account number. 

Update the indigent 
register to ensure it is 
accurate and completed 
and also ensure that 
there are no duplicates. 

30/06/2020 

A reviewed and 
completed indigent 
register. 


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NATURE 


FUNCTIONAL 

AREA 


DESCRIPTION / 
AUDIT FINDING 


REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 


DUE DATE 


EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 


PAYABLES 

CAF 63: Cash 
suspense account - 
Insufficient evidence 
obtained 

Cash suspense account for 
2017/18 was inspected. It 
was not sufficient to obtain 
reasonable assurance 
regarding the amounts 
allocated (debit transactions). 
Some of the 

amounts allocated to debtor 
accounts that could not be 
traced. 

Copies of the client’s 
information provided as 
evidence for the 
payments will be made 
of the client’s information 
provided as evidence for 
the payments made to 
the municipalities bank 
account. 

Monthly 

Unallocated deposit 
register. 



Cash suspense account for 
2018/19 was inspected and 
found insufficient to provide 
assurance regarding the 
amounts allocated (debit 
transactions). 

Some of the 

amounts allocated to debtor 
accounts that could not be 
traced. 


Monthly 

Unallocated deposit 
register. 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

CONSEQUENCE 

MANAGEMENT 

CAF 8: No 
investigation 
conducted on UIF 
Expenditure 

Upon inquiry, it was noted 
that the unauthorised 
expenditure of 2017/18 was 
not investigated by MPAC. 
Due to the latter, the amount 
of the unauthorised 
expenditure that was written 
off in the 2017/18 financial 
year was incorrectly written 
off. 

Reverse the 2017/2018 
Unauthorised written off 
due to noncompliance 
with the applicable 
legislation. Re-submit 
item of 2017/2018 
Unauthorised 
expenditure to Mpac for 
investigation. 

December 2019 

Agenda with the item 
submitted. 

REVENUE 

GRANT 

CAF 35: No liability 
recognized on receipt 
of the EPWP Grant 

The municipality did not 
recognise a liability on initial 
recognition of the EPWP 
grant received. 

Implement controls to 
ensure that all Grants 
liabilities are recorded at 
the time that they arise. 

Continuously 

Copy of segment 
liability. 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

REVENUE 

SERVICE 

CHARGES 

CAF 76: 

Understatement of 
revenue from sale of 
electricity 

The revenue from the sale of 
electricity was recalculated 
for a sample of consumers. 
This was compared to the 
billing report and it was noted 
that there are differences 
between the calculation and 
the amounts billed for 
electricity. 

Update the system 
indigent tariff to be in line 
with the NERSA 
approved tariffs. 

June 2020 

System Taritf report. 

REVENUE 

SERVICE 

CHARGES 

CAF 91: Water 
consumption 
incorrectly billed. 

Inspected the billing report 
and noted that debtors had 
not been billed as normal 
domestic Debtors, but rather 
as indigent Debtors i.e. the 
debtors were not billed for 
the first 6 kilolitres of water 
consumed. 

Management disagreed 
with Auditor General's 
finding - every household 
was not billed for the first 
6kl and was informed by 
approval of council 
during the approval of 
the municipal budget. 

December 2019 

Municipal approved 
Budget. 

REVENUE 

SERVICE 

CHARGES 

CAF 95: Use of flat 
rate to bill services. 

Inspected the 2018/19 billing 
report and noted that the 
municipality charges a flat 
rate on service charges billed 
to all debtors in Tikwana and 
Phahameng regardless of the 
consumption of these 
services. 

Management disagreed 
with Auditor General's 
finding - every household 
was not billed for the first 
6kl and it was informed 
by approval of council 
during the approval of 
the municipal budget. 

December 2019 

Municipal approved 
Budget. 


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FUNCTIONAL 

AREA 

DESCRIPTION / 
AUDIT FINDING 

NATURE 

REMEDIAL ACTION TO 
ADDRESS THE AUDIT 
FINDING 

DUE DATE 

EVIDENCE 
(SUPPORTING 
DOCUMENT) 
REQUIRED TO CLEAR 
THE AUDIT 
EXCEPTION 

REVENUE 

GRANT 

CAF 96: Section 71 
reports not submitted 
to the mayor of the 
municipality. 

Section 71 reports on the 
receipt and expenditure of 
conditional grants received 
and spent by the municipality 
were not submitted to the 
mayor of the municipality for 
the 2018/19 financial year. 

To put controls in place 
to ensure the timeous 
submission of all section 
71 reports to the Mayor 
as per legislative 
requirements. 

Monthly 

Proof of submission of 
section 71 reports to the 
Mayor. 


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23 GLOSSARY 


Accessibility indicators 

Explore whetherthe intended beneficiaries are able to access services oroutputs. 

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 ''whatwe do". 

Adequacy indicators 

The quantity of input or output relative to the need or demand. 

Annual Report 

A reportto be prepared and submitted annually based on the regulations setout in Section 
121 ofthe 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 
orthe environment. 

Budget year 

The financial year for which an annual budget is to be approved - means a year ending on 30 

J une. 

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 offinancial 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, equipmentand buildings. 

Integrated Development 
Plan [IDP] 

Set out municipal goals and development plans. 

Natlonal 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 setoutin its plans. Outcomes are "whatwe 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 achievementof a Key Result Area. 

Performance Indicator 

Indicators should be specified to measure performance in relation to input, activities, outputs, 
outcomes and impacts. An indicatoris a type of information used to gauge the extentto 
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 


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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 whatthe required resultshould be. In this EPMDS performance standards 
are divided into indicators and the time factor. 

PerformanceTargets: 

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 
foreach month. Service delivery targets and performance indicators mustalso be included. 

Vote: 

One ofthe main segments into which a budgetof 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 ofthe 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 amountthatis appropriated forthe purposes ofthe departmentor 
functional area concerned 


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24 APPENDICES 


1 


24.1 APPENDIX A - COMMITTEES AND COMMITTEE PURPOSES 


COMMITTEES AND THEIR PURPOSE 

MUNICIPAL COMMITTEES 

PURPOSE OF COMMITTEE 

Finance Committee 

Deals with municipal financial management. 

AuditCommittee 

It is independent advisory body to council, municipal manager and management 
staff on financial controls, risk management, accounting policies, performance 
management. 

Housing & erven 

Deals with housing & erven matters within the municipality. 

Local Labour Forum [LLF] 

Platform were organised labour and the employer negotiates and bargains on 
issues affecting labour at local level. 

Education 

Deals with local educational matters. 

Sports 

Deals with issues affecting all sporting codes. 

Agriculture & Rural Development 

Deals with all matters pertaining to agriculture and rural development. 

Economic Development 

Deals with local economic development issues. 

Social Development 

Deals with social & welfare issues affecting the community. 


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24.2 APPENDIX B - FUNCTIONS OF MUNICIPALITY 


MUNICIPAL FUNCTIONS 

FUNCTION APPLICABLE TO 

MUNICIPALITY (YES /NO) 

CONSTITUTION SCHEDULE 4, PART B FUNCTIONS 

Air pollution 

Yes 

Building regulations 

Yes 

Child care facilities 

No 

E lectricity and gas reticulation 

Yes 

Firefighting services 

No 

Local tourism 

Yes 

Municipal airports 

No 

Municipal planning 

Yes 

Municipal health services 

No 

Municipal public transport 

No 

Storm watermanagementsystems in built-up areas 

Yes 

Trading regulations 

Yes 

Water and sanitation services limited to potable water supply systems and domestic waste-water and 
sewage disposal systems 

Yes 

Beaches and amusement facilities 

No 

Billboards and the display of advertisements in public places 

Yes 

Cemeteries, funeral parlours and crematoria 

Yes 

Cleansing 

No 

Control of public nuisances 

Yes 

Control of undertakings thatsell liquorto the public 

No 

Facilities forthe accommodation, care and burial of animals 

No 

Fencing and fences 

Yes 

Licensing of dogs 

Yes 

Licensing and control of undertakings thatsell food to the public 

Yes 

Local amenities 

Yes 

Local sport facilities 

Yes 

Markets 

No 

Municipal abattoirs 

No 

Municipal parks and recreation 

Yes 

Municipal roads 

Yes 

Noise pollution 

Yes 

Pounds 

Yes 

Public places 

Yes 

Refuse removal, refuse dumps and solid waste disposal 

Yes 

Street trading 

Yes 

Street lighting 

Yes 

Traffic and parking 

Yes 


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