MID-YEAR BUDGET AND PERFORMANCE ASSESSMENT REPORT … 2012_2013.pdf · 2013-02-04 · 1 MID-YEAR...

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MID-YEAR BUDGET AND PERFORMANCE ASSESSMENT REPORT

Purpose

The purpose of this report is to outline to the Executive Committee/Council the mid-year budget and

performance assessment of the municipality.

Background

Section 88 (1) of the MFMA state that, the accounting officer of a municipal entity must by 20 January of

each year –

a. Assess the performance of the entity during the first half of the financial year, taking into account -

i. The monthly statement referred to in section 87 for the first half of the Financial year and the targets

set in the service delivery, business plan or other agreement with the entity’s parent municipality; and

ii. the entity’s annual report for the past year, and progress on resolving problems identified in the

annual report; and

b. Submit a report on such assessment to –

i. The board of directors of the entity; and

ii. The parent municipality of the entity.

It is against this background that the report is presented to the Executive Committee/Council for

consideration.

PERFORMANCE MANAGEMENT SUMMARY

The report presents the mid-year performance achievements for 2012/13 financial year.

1. Municipal Manager’s Office

1.1. Good Governance

Achievements:

Internal audit and Audit committee Charters were reviewed

Approved internal audit annual coverage plan

Audit Committee held quarterly meetings

Challenges Interventions

Lack of communication between Audit

Committee and Council

The audit committee to report quarterly to the

Council

Capacity of internal audit unit To be improved in the next financial year

2

1.2. PMU

Achievements:

We have Constructed Sekwena Arts & Craft and the project is completed at the value of

R830 497.41.

Construction of Sefoloko Low Level Bridge in progress.

Renovated Mogwadi Community Hall at a value of R197 229.12.


Sefoloko low level bridge was delayed due

to lack of communication with external

stakeholders i.e. Makgoshi

Regular engaged are ongoing with all

affected stakeholders.

1.3. Communication

Achievements:

Advertising has been improved. Municipal has extended advertising to the media

i.e. Radio.

Municipal affairs receive a wider audience as a result of better advertising.


Lack of municipal branding material To be proposed in the budget adjustment

2. COMMUNITY SERVICES DEPARTMENT

2.1. Public Amenities (Pre-schools, Community Halls, Parks, Taxi Ranks)

Achievements

Construction of Pre-schools/Community Halls at Dipateng and Brussels are at roof level.

Thorough consultations and soliciting of information in drafting of specifications for establishment of

the Mogwadi Park have been completed.

Illegal structures in and around the Morebeng Taxi Rank have been demolished. The facility is now

ready for refurbishment.


3

Illegal structures and traders in and around

the Morebeng taxi rank caused a delay in

the commencement of refurbishment of the

facility.

Consultations with experienced providers for

establishment of a fully fledged park which

will provide better value for money in the

end. Appointment of service provider will

take place in the 3rd

quarter. A Bid

Specification Committee has been

established in order to validate all tender

bids before they go for adverts and to

ensure compliance to regulations.

Problems surrounding taking over of the

Nthabiseng Community Hall by the

Municipality resulted in suspension of the

refurbishment of the facility.

LEDP has been roped in to address

challenges of illegal structures at the

Morebeng Taxi Rank.

Water shortages at Mogwadi and Morebeng

towns resulted in suspension of construction

of ablution facilities at the cemeteries.

2.2. Waste & Environmental Management

Achievements:

Improved environment in terms of cleanliness and consistent waste removal services at Morebeng

and Mogwadi towns.


Water shortages at Mogwadi and Morebeng

resulted in suspension of construction of

ablution facilities at the cemeteries.

Services of digging of graves and provision

of portable mobile toilets will be outsourced

per funeral at Mogwadi and Morebeng

cemeteries.

2.3. Traffic & Licensing

Achievements:

2 collaborative roadblocks with SAPS, Dept of Roads and Transport have been staged in the 2nd

quarter.


Lack of traffic and street trading by-laws in

the Municipality.

1st completed draft for Traffic and Street

Trading by-laws have been forwarded to

external stakeholders for inputs

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2.4. Sports, Arts & Culture

Achievements:

Participation in Golden and Indigenous games in the 2nd

quarter.


Postponement of Mayoral Cup into the 3rd

quarter.

Co-coordinating Mayoral Cup Committees

have been elected per cluster to drive the

process.

2.5. Housing

Achievements:

The first phase of the Normalization Process has been completed. COGHSTA is in the process of

appointing conveyances to drive the process.

2.6. Libraries

Achievements

5 mobile library visits took place at Molemole. New publications have been bought and shelves have

been updated.

3. TECHNICAL SERVICES DEPARTMENT

3.1. Electrical & Mechanical

Achievements:

Contractor appointed for the Replacement of rotten poles and Replacement of MV and LV

conductors in Morebeng.

The process of appointing the contractor for the smart metering is has been adjudicated.


Electrification backlog in the villages. Facilitation for more funds allocation from

DOE.

Delays in the supply chain management

process.

Liaison with CDM to provide more funds to

address electrification backlog.

Breakdowns on our maintenance Advertised for the appointment of service

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machineries and fleet. provider to maintain our machineries.

3.2. Water & Sanitation

Achievements:

Appointment of service provider to supply water maintenance materials.

Approval of Operation and Maintenance Plan.

Supply of water thorough tankers to 18 villages.


Frequent breakdowns on our water

sources/boreholes.

Appointed service provider to supply water

maintenance materials.

Unreliable water sources. Identify other water sources.

Aging water infrastructure.

3.3. Roads & Storm water

Achievements:

Grading of 187.6 km.


Frequent breakdowns on our machineries. Appointment of service provider for

maintenance of our machineries.

4. CORPORATE SERVICES

4.1. Administration

Achievements:

Construction of Walkway at Mogwadi main offices completed

Appointed Dimension Data for supply and installation of Access Control system at Mogwadi main

office. Project estimated to be completed by March 2013.

Installed office hygiene equipment in all municipal service points.

Feasibility assessment for installation of telephone management system at Morebeng and

Sekgosese DLTC conducted and awaiting project proposal from the service provider.


Unavailability of funds for installation of Defer installation of Security surveillance

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security surveillance system

system to 2013-2014 Financial year

4.2. Human Resources Management

Achievements:

(a) Developed advertisement for appointment of a provider for organizational re-engineering

(b) Filled 17 vacancies during the quarter

(c) Held a local labour forum meeting

(d) Held a safety audit outreach programme at Mogwadi offices


Employee discipline in particular work

attendance and unauthorized absence

Employees alerted of the disciplinary code

and code of conduct

Non-adherence to working hours Strict monitoring of work attendance

registers

Failure to attract skilled personnel in the

highly specialized fields and people with

disabilities

Review of condition of service

4.3. Council Support and Legal Services

Achievements:

(a) Held 2 x outreach programmes during the quarter

(b) All ward committee reports submitted and paid

(c) Contract register has been developed and updated timeously


Additional funds required for increase in

ward committee allowance

Developed by-election programme to fill

vacant ward committee position arising from

sporadic resignations

Delays by Service Providers to finalize

agreements

Expedite finalization of remaining contracts

through consultation with relevant

institutions.

Budget for ward committee allowance

increments during 2013-2014 Financial year

5. FINANCE DEPARTMENT

5.1. Budgets & Reporting

Achievements:

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Improved MFMA Section 71 Reports Integrity/credibility (July to December).

Grant Register Initiated & Compiled/Updated for July, August and Sept 2012.

Budget Statement Reports Maintained; July, August and Sept 2012.

Successfully keeping Audit Information Requests.

Plans advanced to keep performance Information kept as portfolio of evidence in CFO’s office.


Need for specific training on Venus Software

just started in January 2013

Accountant have been appointed and

working efficiently.

Under skilled on Fin. Acc. Software (Venus). Further Formal Training on other Venus

arranged in third quarter.

No integration between the accounting

software (Venus) and AFS (excel based

spreadsheet template).

Have performance Information ready to be

published on the website if appropriate.

Clearing and control accounts not utilised for

the intended purpose (Bank recon, salaries

recons etc.)

CFO to review and sign all clearing and

control accounts monthly for action on

recurring items.

Keep hard copy of performance information

in hard copy files monthly, in CFO’s office.

5.2. Revenue & Income Managements

Achievements:

(e) Bank Reconcilliation now done manually and available for relieving long outstanding items for July,

Aug & Sept.

(f) Receivables from exchange and non-exchange transactions now separated and fully aged and

categorized i.t.o the Grap 9.

(g) Meter readings now accurate and reliable.

(h) Cash and cash equivalent now disclosed properly in accordance with appropriate accounting

standard (GRAP 104)

(i) Plans advanced to keep performance Information kept as portfolio of evidence in CFO’s office.

(j) Indigent Register now fully compiled and kept in compliance policy.


Collection rate has still improved to 19.5%

but lower than disirerable due to historical

culture of non-payment.

Notices for service discontinuation will after

consultation, be issued in October and

actuated in November 2012.

Substandard skill on accounting software

(Venus).

Notices and reminders to be issued

monthly as an ongoing standard process.


(Venus).

A great deal of households is found locked

at meter reading times.

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5.3. Expenditure & Capital Projects Implementation(Funding)

Achievements:

(d) Capital expenditure within schedule.

(e) Vat 201 reconciliations are now done regularly (bi-monthly) for 1st Quarter.

(f) Plans advanced to keep performance Information kept as portfolio of evidence in CFO’s office.



(Venus).

Training arranged and up

Substandard skill on salaries software (Pay

Day V3.8).

Training arranged and up

Not yet developed an automated pro-active

capital expenditure monitoring system and

an early warning system.

To request IT to design an electronic

flagging or pro

5.4. Supply Chain & Assets Management

Achievements:

(a) A credible Asset Register unbundled in compliance with GRAP 17 and other relevant related

accounting standards.

(b) A credible Lease Register in compliance with GRAP 13.

(c) Correctly Measured Asset; valued in compliance with Grap17.

(d) Documents in support of capital and operational expenditure made in the current financial year are

available and filed.

(e) Short term Insurance; covering the Municipal Assets for the period 2012/2013 financial year.

(f) A commitment Register in compliance with Treasury Regulation SCM 3 of 2004.xx.

(g) A Register of Unauthorised, Irregular or fruitless and Wasteful Expenditure in terms of section 32(1)-

(4).

(h) Plans advanced to keep performance Information kept as portfolio of evidence in CFO’s office.

(i) Inventory in the form of stationery is well packed, and received, kept, issued and recorded in terms

of Grap12.


Supply Chain Management under resourced

and staff undertrained and unfed with latest

regulatory information.

Training session is arranged for Mid

October 2012.

No automated and integrated ordering

system (e-Venus Enterprise Resource &

Planning) module.

To study latest version of e-Venus & check

if an integrated ordering ERP module can

be added on the current system.

No capabilities to identify assets from

operational expenses at source or ordering.

A chart of accounts will be circulated to all

accounting staff to guide accounts allocation

at source.

No library to keep legislation, regulations,

policies and practice notes by all staff.

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6. LOCAL ECONOMIC DEVELOPMENT AND PLANNING

6.1. Internship Programme for Unemployed Agriculture Graduates

Achievements:

Service- level agreement with two commercial farmers is in place and still with the farmers for

scrutiny before signing. Selection of graduates done and enrolment expected in the third quarter.


None None

6.2. Development of Investment Opportunity brochure and DVD.

Achievements:

Service provider not appointed yet.


Insufficient funds. Proposed in- house execution of the project

6.3. Establishment of an Agrihub.

Achievements:

Concept document in place. Multi- stakeholder task comprising of Department of Agriculture, ARC,

CDM, neibouring municipalities and Commercial and subsistence farmers was established.


Insufficient fund to conduct a feasibility

study.

Department of Agriculture has taken over

the project and a feasibility study is being

conducted.

6.4. Job creation through EPWP and CWP.

Achievements:

1000 CWP participants enrolled in the programme.


None None

Annual SMME Training Programme

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The financial performance of the municipality for second quarter for financial year 2012/2013:

1.1. REVENUE

The approved budget for 2012/2013 amounts to R162, 939,451 and Actual revenue collected as at 31

December 2012 Amounts to R75,019,649.00(46%) compared to the proportional percentage of 50%.The

45% revenue recognized is based on cash based accounting concept. Collection levels for own revenue

from service charges is considerably low. From July 2012 to December 2012 ,The Municipality billed

R9,759,195.00 and only collected R1,899,757.00 which translates to 19.5% Debtors collection

ratio.,R70,544,392.00 received from grants and subsidies , R1,175,952.00 from licenses and permits,

R57,250.00 from traffic fines, Debt collected amounts to R357,802.51,R889,357.00 from selling prepaid

electricity meters and other revenue amounts to R259,387.00.The Municipality is highly depending on

grants with the percentage of 94% against the total collection of R75,019,649.00.

Description Total

Annual

Budget

Six

Months

budget

Six

months

Actual

Six months

%

expenditure

Variance

from six

months

budget

Reasons for

variance

R

R

R

% R

Revenue By

source

Property

rates

5,599,749 2,799,875 460,021 16 2,339,85

4

Inherent

culture on

non-payment

by ratepayers

Service

Charges-

electricity

revenue

including

selling of

prepaid

electricity

6,661,800

3,330,900

1,676,268

50

1,654,63

2

None

Service

charges-

water

revenue 3,431,157 1,715,578

141,546

8 1,574,03

2

Inherent

culture on

non-payment

by ratepayers

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Service

charges-

sanitation

revenue

73,183 36,591 64,479

176

(27.888)

Under

budgeted will

be adjusted

during

adjustment

budget

Service

charges-

refuse

revenue 946,972 473,486 87,509

18%

82%

Inherent

culture on

non-payment

by ratepayers

Rental of

facilities and

equipment 126,227 63,113 29,474

47% 53%

Interest

earned-

external

investments 2,000,000 1,000,000 388,984.50

39%

61%

Interest

earned-

outstanding

debtors 2,000,000

1,000,000 137,611

14%

86%

Fines

1,000,000

500,000 57,250

11% 89%

License and

permits 3,710,000 1,855,000 1,175,952

63%

27%

Transfers

recognized-

operational

82,848,00

0 41,424,000 55,662,052

134% -34%

Transfers

recognized-

capital

35,369,98

6 17,684,992 14,882,340

84% 16%

Other

revenue

19,173,00

0 9,586,500 617,190

6%

94%

Total

revenue

(including

capital

transfers )

162,939,9

86 81,469,993

75,380,677

93% 7%

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1.2. OPERATING EXPENDITURE

The approved budget for 2012/2013 amounts to. R104, 155, 055. Actual expenditure as at 31 December

2012 amounts to R38, 044,424.00. On average 50% of the allocated budget should be spent by the end of

2nd

quarter, The Municipality has only spent 37% on operating expenditure inclusive of staff benefits.

Actual expenditure is as follows:

SUMMARY OF EXPENDITURE PER BUDGET CATEGORY DECEMBER 2012

Description Total

Annual

Budget

Six Monthly

Actual

Six

Months

Actual

Six Months

%

Expenditure

Variance

from six

months

budget

Reason for variance

Salaries And

Allowances

57,981,797

28,990,898 24,052,879

83% 17%

Not all funded posts are

being filled.

Electric

Purchases

6,000,000 3,000,000 3,812,422

127% -27%

Due to increase in tariff

of electricity it was

under budgeted and will

be adjusted in

adjustment budget

General

Expenses 28,736,258 14,368,812 8,588,295

59% 41% None

Repairs and

maintenance 6,328,000 3,164,000 1,298,934

41% 59% None

Interdepartm

ental

Charges 509,000 254,500 291,894

115% -15%

Under budgeted will be

adjusted

Depreciation

4,600,000 2,300,000 0

0%

100%

Depreciation not

updated

GRAND

104,155,055

52,077,527 38,044,424

27%

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TOTAL 73%

Capital expenditure

Description Total

Annual

Budget

Six Months

Budget

Six

Months

Actual

Six

Months

%

expendi

ture

Varianc

e from

six

months

budget

Reason for variance

Assets from Own

Funds

24,478,686

12,239,343

5,261,761

43%

57%

Most of internally

funded still on

procurement processes

Assets From Grants

And Subsidies

34,004,396

17,002,198

19,576,657

115%

-15%

Most of expenditure is

from Matipana

Madikana which stared

the beginning of

financial year

TOTAL CAPITAL

EXPENDITURE

58,483,082

29,241,541

24,838,418

85%

15%

Payments in respect of Capital Projects funded internally up to 31 December 2012 amounts to R5, 261,761

against six months budget of R12, 239,343.

Payments in respect of capital projects funded by grants up to 31 December 2012 amounts to R19,576,657

against six months budget of R17,002,198

Total payments of capital projects is R24,838,418 as at 31 December 2012 against six months budget of

R29,241,541

DEBTORS

Comprehensive analysis of services debtors

The net outstanding service debtors as at 31 December 2012 amounts to Rand is made up as follows:

Current Debt Amount

30 Days 1,735,673

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60 Days 1,628,269

90 Days 1,503,537

120+ Days 41,694,786

Plus Journals 0

Sub Total 46,562,265

Less: Credit Amounts 0

Total 46,562,265

The outstanding amount of R46,562,265 is divided as follows:

Category Amount

Government 4,040160

Business 16,322,966

Households 26,199,139

Total 46,562,265

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MUNICIPAL MANAGER’S OFFICE

Strategic Objective

Priority Area Indicator Project/ Programme

Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditu

re

Rating

To provide assurance to management and council on the internal control, risk management and governance processes

Good Governance

-Approved internal audit strategic audit plans -Approved internal audit reports by the Audit Committee

Perform regulatory, internal control and performance audits as per audit plans

Poor coordination of internal controls

Approved Internal Audit report by the audit committee

Report on PMS and Revenue are done

and awaiting to serve at the

Audit Committee

N/A None 40% None Not Applicable

To implement performance management processes to enhance service delivery

Service Delivery Improvement

-Approved departmental SDBIP’s. -Signed Performance Agreements -Sessions conducted.

Performance Management Coordination.

Improvement on SDBIPs.

Assessment of quarterly reports and compilation of mid-year report. Compilation of the Annual Report

In progress N/A None 50% None Not Applicable

To monitor and evaluate service delivery in line with the SDBIP.

Monitoring and Evaluation

-Quarterly performance progress reports submitted -Quarterly assessments concluded -Completed report and submitted.

Performance Management Monitoring and Evaluation.

M&E need improvement

Monitoring and Evaluation of projects. Ensuring compliance to legislation.

Projects are monitored

and evaluated

by PMU on a weekly

basis.


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To monitor and evaluate all infrastructure projects within the municipality

PMU % compliance with projects implementation plans.

Improve Project Management System

Non-compliance on Project management

Monitoring & evaluation of projects. Ensuring compliance to specifications

All Service providers

are complying

with specification

s set.


Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditu

re

Rating

To monitor and evaluate all infrastructure projects within the municipality

PMU Improved roads & internal Streets within our Municipality

Matipane/Madikana Gravel to Tar road

Most of the roads are flooded and required re-gravelling & tarring(paving)

Road Surfacing

Construction

N/A

NONE 50%

NONE

R10,937,915.00

Improved roads & internal streets within our Municipality

Morebeng internal streets and storm water

Appointment of contractor

Construction Stage

N/A

100%

R4,576,627.92


Makgato internal streets and storm water.

Appointment of contractor

Construction Stage

N/A

100%

R6,771,914.88


Upgrading Mogwadi Storm Water

Storm water excavations

Construction.

N/A

100%

R533,741.21

Building of Dipateng Pre – Lack of early Construction Constructio None 50% R1,109,37

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pre schools and community halls

School childhood learning/community halls at 29 settlements.

of pre-schools

n

6.73

Building of pre schools and community halls.

Brussels Pre – School

Lack of early childhood learning/community halls at 29 settlements.

Construction of pre-schools

Construction.

None 30%

R250,036.089

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditu

re

Rating

To enhance corporate identity

Communication -Displays at municipal events. -Municipal events advertised. Different communication medium utilized to reach audiences. -Conducted imbizos and open Council. -Compiled newsletter.

Branding and advertising of municipal events. -Municipal Affairs communication -Compile a news letter

Municipal affairs Communication Strategy need to be reviewed

Compilation of municipal news letter

Is in progress, The newsletter is ready for print

None None 80% None R57 0000.00

To promote and sustain interrelations within the three spheres of government

IGR

Developed comprehensive programme

Developed comprehensive programme

Poor coordination of activities

Implementation of Comprehensive Programme

Corporate diary was developed

N/A None 100% Not Applicable

Not Applicable

To build and encourage stakeholder participation

STAKEHOLDER RELATION

Maximum participation of stakeholders

Public participation meetings.

Minimal participation of stakeholders

Implementation of scheduled participation meetings

IDP process plan and corporate diary was developed

N/A None 100% Not Applicable

Not Applicable

To bring together all relevant stakeholders to advance knowledge

HIV/AIDS Adopted policy

Develop a policy

No HIV/AIDS policy

Development of the draft

Local aids council technical committee

Technical Committee didn’t hold its meeting

Deferred to third quarter

0% 30th March

2013 Not Applicable

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about the disease was established

To establish comprehensive special focus programmes that will encourage participation and partnerships with all groups

SPECIAL PROGRAMMES

Adopted policy

Develop a policy

No policy on special focus programmes

Development of the draft

Special focus programme technical committee was established

Technical Committee didn’t hold its meeting

Deferred to third quarter

0% 30th March

2013 Not Applicable

COMMUNITY SERVICES

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for

variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To provide, operate and maintain public amenities to the benefit and satisfaction of communities. .

Public amenities Constructed early

childhood learning

facilities/community halls at

Molemole settlements.

Dipatene & Brussels pre-

schools/ community

halls.

Lack of early childhood

facilities/community halls at

Molemole settlements

Construction of pre-

schools/community halls

Construction at roof level

- - 100% - Dipateng Budget

R2 150 000.00

Expenditure R1 109 376.73

Brussels Budget

R2 150 000.00

Expenditure R250 036.89

Constructed

ablution facilities at

Construction of

ablution facilities at

Lack of ablution

facilities at Mogwadi

Construction of ablution facilities

None

Scarcity of

water in the area.

Outsourc

ing of burial

0%

-

R150 000.00

20

cemetery

Constructed ablution

facilities at cemetery

Mogwadi cemetery

Construction of ablution

facilities at Morebeng cemetery

cemetery

Lack of ablution facilities at Morebeng cemetery

Construction of ablution facilities

None

Scarcity of water

services

Outsourcing of

services per

funeral

0%

-

R150 000.00

Refurbished taxi rank at Morebeng

Refurbishment of Morebeng

taxi rank

Taxi rank not fenced and

malfunctioning ablution facilities.

Advert for appointment of contractor

None Challenges around

illegal structures& traders

in and around the

facility.

Collaborative

efforts with

LEDP & concernedstakeho

lders

0% 31 January

2013

R500 000.00

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for

variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To provide, operate and maintain public amenities to the benefit and satisfaction of communities. .

Public amenities Renovated Nthabiseng community

hall

Renovation of Nthabiseng community hall

Dilapidated community hall

Advert for appointment of contractor

None Resistance by

Nthabiseng

community

Intervention by

relevant stakehol

ders

0% None R300 000.00

Refurbished Ramokgopa

stadium

Refurbishment of Ramokgopa

stadium

Dilapidated

sporting facility

Advert for

appointment of contractor

Specification developed

and approved,

advert placed.

Bid recommended for re-advert

Specifica

tion committe

e to update for re-advert

0%

31

January 2013

R500 000.00

To comply with relevant environmental legislation

Waste & Environmental Management

Adopted waste by-

laws

By-law processes

No waste by-laws

Solicit reference

documents, customizatio

n & managemen

Consultation/inputs from

relevant stakeholders

- - 80% Awaiting reviewing of by-laws

-

21

t processes

To provide and improve compliance to municipal traffic regulatory environment.

Traffic & Licensing

Adopted traffic by-

laws

By-law processes

No traffic by-laws

No street

trading by-laws

External stakeholders inputs and

public comments

1st draft has been

completed with

additions of new

amendments of the NRTA

Draft document has been forwarded to external stakeholde

rs for inputs

Awaiting inputs from

external stakehol

ders

50% 31 March 2013

-

To coordinate and conduct sports, arts and culture and recreation programmes

Sports, Arts & Culture

Functional Sports &

Recreation Council

Re-election of Sports &

Recreation Council

Poor coordination of Sports, Arts &

Culture

Hosting of Mayor’s

tournament

Cluster committees for Mayor’s tournament

were elected. Preparatory

meetings took place.

Logistical arrangements led to postpone

ment

Resumption of preparations for Mayoral Cup

10% 31 March 2013

R50 000.00

R

To establish a database of RDP housing needs.

Housing Credible waiting list

system

RDP Normalization

Process

No waiting list system for RDP

housing allocation

Physical verification

process

1st phase of

Normalization process has been

completed at Mogwadi

None - 90% - -

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for

variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To render efficient library services to communities.

Libraries More recent publications on shelves

Procurement of new publications Coordination of mobile library visits.

Outdated publications on shelves.

Updating of shelves with new publications & Mobile library visits

Library shelves have been updated with new publications & 5 mobile library visits took place

None

-

100%

Nov 2012 -

R20 000.00 -

TECHNICAL SERVICES

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for

variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

22

To provide, operate and maintain effective electrical services in order to improve the lives of our people.

Electrical Services.

Compliance with Eskom and SANS 10142 standard.

Upgrading of electrical network(Mogwadi & Morebeng)

Overloaded aging infrastructure

Replace 15 rotten

electrical poles at

Morebeng, Replace MV

& LV conductors

at Morebeng,

Appointed the Service provider to replace 15 rotten poles

and MV & LV conductors

at Morebeng.

Awaiting Eskom’s

shut down date

None 25% n/a R 0

Electrical Services.

Installed Smart Metering System in Mogwadi

Smart Metering System

Overloaded aging infrastructure

450 households

installed with Smart Meters

Advertised, Evaluated and Adjuducated.

Delays in advertisement due to benchmarking with other municipalities

To implement in the

3rd

quarter

0 % n/a R 0

Adequate water supply and maintenance of water & sanitation infrastructure

Water & sanitation

Decrease in number of people without access to water & reduction in water losses

Operate & Maintain water service infrastructure

Un-quantified aging infrastructure

Full implementation on O & M Plan Replace 50 dysfunctional water meters. Maintain 10 borehole pumps and diesel engines. Supply water to 10 specified villages through tankers

Implementation of O & M Plan Replaced 33 dysfunctional water meters Maintained only 13 pumps and engines Supplied water to 18 villages

None Delays in supply of water meters None None

Appointed service provider to supply materials as and when needed.

75%

n/a R 1,256, 899,89

To improve and maintain roads to enable economic growth and

Roads and Stormwater

Improved roads and stormwater

infrastructure

Maintenance and tarring of major roads

383 km of gravel roads

275 km of gravel roads

graded

187.6 km of gravel roads

graded

Mechanical

breakdown on the

Appoint service provider

for

68% n/a R 71,586.08

23

transportation system.

within our municipal area

graders and TLB’s

mechanical

services

FINANCE

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achievement)

Reason for

variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To ensure efficient and effective budget and reporting in compliance with legislation

Budget & Reporting

Compiled and submitted MFMA section 71 and 72 reports.

Timeous submission of Annual Financial Statements.

Engage all sections to complete their part on AFS processes.

MFMA section 71 and 72 reports compiled and submitted timeously.

AFS submitted after due date

Compilation of 3 credible section 71 reports. Submission of AFS

Compiled 3 section reports AFS submitted 31 August 2012 and re-submitted 31 October 2012.

None

AFS Withdrawn from Auditor General

None

The new appointed consult to assist

to compile credible AFS is on site

100%

50%

None

28 February

2013

0

R400,000.00

To ensure increased revenue generation

Revenue 75% of projected revenue collected

Billing Increase traffic fine collection

Under collection of

revenue

18.75% collection.

3X reminders.

3X Disconnections

1X submission to debt collectors

19.5% debt collection ratio. 6 Reminders sent 1 Disconnection done 3 x submissions to debt collectors

Reminders not sent Disconnections not done

Reminders to be sent monthly Disconnections to be done in November

100%

None 0

Strategic Objective


Baseline 2012 2nd

Quarter Target


Reason for

variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To ensure efficient payroll administration and timeous payment of trade payables

Expenditure/ Payments

Compile salary & creditors reconciliation

Reduced penalties and

Salary & creditors reconciliation Compilation of a register for section 32

expenditures

No system in place to identify and recognize

irregular expenditure

3X salary & creditors reconciliation

3X Compilation

3 X Salaries & Creditors reconciliation have been prepared 3 X List of relevant tender

None None 100% None None

24

interests for late payments

of a list for all relevant tender supporting documents

documents have been prepared

To procure goods and services according to a system which is fair and competitive.

To safeguard municipal assets.

Supply Chain Management

Safeguarding Municipal Assets

Goods and services procured in terms of the policy.

Asset register updated

Compilation of Bid reports.

Verification

Competitive bidding is circumvented.

Schedule of insured asset.

Prepare a register of tenders awarded.

Invitation for quotations of goods & services

Advertisement of tenders on media.

1X Asset Verification. 1X Updated Inventory List.

Register of awarded tenders have been prepared.

Invitation for quotations process is being performed.

Adverts are being made according to the policy.

None None 100% None None

LOCAL ECONOMIC DEVELOPMENT AND PLANNING

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To formalize partnership with potential investors and local SMMEs to ensure sustainable economic growth

LED 5 Capacitated Graduates

Internship programme for 5 agricultural graduates.

No programmes

SLA with farmers

SLA available and awaiting signature.

Project in progress, implementation phase

None 30 None 0

Comprehensive brochure &

DVD

Develop brochure on investment

opportunities in the

municipality.

No brochure Appoint service provider

None Advertising process curbed, insufficient funds

Proposed-in

house execution of the project

10 0

25

Established Agric-Hub.

Establishment of Agric-Hub.

Un-coordinated farming activities

Development of

concept document

in consultatio

n with experts

In progress, Insufficient funds to implement the project

Dept. Agriculture to implement the project

10 31 March. 0

Number of EPWP & CWP jobs created.

Job Creation. No specific labour intensive environmental management

project on EPWP

Recruitment of

participants.

1000 participants appointed.

None 100 none 0

25 SMME’s Trained

Annual SMME’s Training

Programme

MoU with LIBSA

Signed MoU with

LIBSA

Delay from LIBSA

regarding signing of the

MoU, Training in progress

Changes in institutional arrangements at LIBSA

Negotiate for

signing of MoU

with interim

leadership

50 31 March 0

Constructed Arts & Crafts

centre.

Construction of Sekwena Arts &

Culture.

100% completed structure

Completion of the project.

Project completed

None None 100 none 0

Strategic Objective


Baseline 2012 2nd

Quarter Target

Actual (achieveme

nt)

Reason for variance

Corrective

action

Progress

(% to target)

Revised Target

Budget Expenditure

Rating

To promote orderly development by implementing Integrated Development Planning and Spatial Rationale Principles

Spatial Planning

Installed GIS with e.g. infrastructural maps.

Installation of GIS.

Appointment of service provider.

Service provider appointed.

Project in progress

None None 100 None 0

Updated land use maps.

Reviewing of layout plans.

Appointment of service provider

Service provider

appointed

1st draft

available, subject for discuss & comments

None None 100 None 0

26

CORPORATE SERVICES

Strategic Objective Priority Area Indicator Project/ Programme

Baseline 2012 2nd Quarter Target


Reason for variance

Corrective action

Progress (% to target)

Revised Target

Budget Expenditure

Rating

To ensure provision of sound legal advice, representation, contract, policy development and management are compliant with legislation and standards

Legal services

Number of valid contracts registered in the contract register.

Review of contract Management register and contracts

Contract register in place

25% Contracts are developed for relevant projects in all departments and are updated in the applicable register.

Delays by service

providers and clients

Compile remaining Contracts by consultation relevant departments / institutions

25% Ongoing Budget R 50001 Expenditure R0

To provide reliable, qualitative and efficient administrative support services

Administration

Number of municipal building(s) installed with security surveillance system.

Installation of office security surveillance system

No electronic security surveillance system installed

Appointment of service provider, implementation and monitoring

None. Funds allocated for security surveillance system re-allocated to fund Installation of Access Control system at Mogwadi main office

Defer the project for IDP prioritization and implementation during 2013/2014 financial year.

0% 2013-2014 Budget R 0 Expenditure R 0

Installed Fence at Sekgosese DLTC

Construction of fence at sekgosese DLTC

Current fence damaged

Prepare Specification. Source

None Backlogs in completing outstanding

Specification and appointme

0% 3Rd Quarter Budget R 100 000

27

Service Providers

projects nt to be finalized in the 3rd Quarter

Expenditure R 0

Number of municipal service points / offices installed with functional electronic Access Control system

Electronic Access Control System

Access control system not operational


Service provider has been appointed for supply and installation of Access control system

Procurement process delays

Project implementation to be finalized in the 3rd quarter

60% 3rd quarter. Budget R 400 000 Expenditure R362 604

Number of service points linked through wireless network

ICT wireless network connection

Network Connectivity only available for Mogwadi offices & Mogwadi Traffic Station.

Prepare Specification. Source Service Providers

Feasibility study concluded by COGHSTA and have received the specification report

Inadequate specialized internal technical skills resulting in dependency on expert support from COGHSTA.

Appointment of a service provider to be finalized by February 2013. Project implementation to commence during March 2013 and finalized during June 2013.

100% 4th

Quarter Budget R300 000

Expenditure R0

100%

No of offsite disaster recovery system installed

Installation of ICT Offsite Data Disaster Recovery system

No offsite data disaster recovery system in place

Prepare Specification. Source Service Providers

Feasibility study concluded by COGHSTA and has received the report for customization to municipal unique requireme

Inadequate specialized internal technical skills resulting in dependency on expert support from COGHSTA.

Specification and appointment to be finalized by February 2013 Project implementation to commence during March

50% 4th Quarter

Budget R 500 000 Expenditure R 0

100%

28

nts (specification included).

2013 and finalized during June 2013.

To provide for an accountable & transparent organization that supports council and community interests through effective public participation

Council Support & Secretariat Services

Number of outreach programmes done

Council Outreach Programmes

One Council Outreach Programme held during 2011/2012 FY

1 outreach programme

1. Outreach at Mphakane village 2. Outreach at Mohodi village

None None 100% Budget R70 000.00 Expenditure R0

100%

To implement Human Resource Management services that facilitate development of a workforce that is productive, accountable, stable and foster stakeholder relations

Human Resource Management

Approved HR strategy

Development of HR Strategy

No HR Strategy in place


Advertisement for proposals for organizational re-engineering process developed and procurement process underway

Procurement of provider for the development of HR Strategy put on hold and funds redirected to fund organizational re-engineering project following management decision on the matter.

Reallocate the funds for organizational engineering process

40% 3rd Quarter Budget

R450 000.00 Expenditure R 0

MID-YEAR BUDGET AND PERFORMANCE ASSESSMENT REPORT … 2012_2013.pdf · 2013-02-04 · 1 MID-YEAR...

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Transcript of MID-YEAR BUDGET AND PERFORMANCE ASSESSMENT REPORT … 2012_2013.pdf · 2013-02-04 · 1 MID-YEAR...