MID-YEAR BUDGET AND PERFORMANCE REPORT 2015/2016

MID-YEAR BUDGET AND PERFORMANCE REPORT

2015/2016

MOHOKARE LOCAL MUNICIPALITY Hooft Street, Zastron 9950

Mohokare Local Municipality Mid-year report 2015/2016

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Table of Contents Page no

Vision & Mission Statements 2

Submission to the Mayor 3

Mayor’s executive summary 4

Introduction 5-6

Monthly Budget Statement Summary 7-14

Technical Services 15

Project Management Unit 15

Drinking Water Services 15

Sanitation Services 15

Roads and Storm Water Division 15

Electricity 16

Capital Programmes 16

Municipal Infrastructure Grant 16

Integrated National Electrification Project 17

Regional Bulk Infrastructure Grant (RBIG) 18

Municipal Water Infrastructure Grant (MWIG) 18 Operational Programmes 19

Drinking Water Services 19

Sanitation Services 21

Roads and Storm Water 22 Community Services 23

EPWP 23

Projects since July to December 2015 23

Sites and Housing disputes 23

Commonage Management 24

Traffic Law Enforcement, Safety and Security 24

Environmental Health Report 25

Refuse Removal 30

Town Planning 32 Corporate Services 39

Employment Equity 39

Learnership and Internships 39

Skills Development 39

Workplace Labour Relations 40

Legal Services 41

Leave 42

Overtime / Standby 43

Financial Health Overview 45

LED 51

Information Technology 54

Risk Management 57

SDBIP 76

Municipal Manager’s Quality Certification 95


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To: The Mayor

In accordance with section 72 of the Local Government: Municipal Finance Management Act 2003 (the “MFMA)”, I submit the required statement assessing the performance of Mohokare Local Municipality during the first half of the 2014/15 financial year

Section 54 of the MFMA requires the Mayor to take certain actions on receipt of this report to ensure that the approved budget is implemented in accordance with the projections contained in the Service Delivery and Budget Implementation Plan (the “SDBIP”).

The information contained in this report has been reviewed and it is evident that adjustments to the capital and operating budgets will be necessary. When an adjustment budget is adopted, the SDBIP will need to be reviewed and adjusted.

_______________________

TC Panyani Municipal Manager 29 January 2016


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Mayor’s Executive Summary

The Mid-year budget and performance report is an assessment of the performance of the municipality for the first six months of the 2015/2016 financial year. It serves as the mechanism which seeks to review the progress that is made in realizing the targets the municipality had set itself at the beginning of the financial year. Our duty as political principals of the municipality is to ensure the meaningful contribution in the eradication of poverty, unemployment and inequality in our municipal area. This can only be achieved through by playing constructive oversight role over municipal administration in their performance for the implementation of the Council approved service delivery and budget implementation plan.

As the Mayor of Mohokare municipality I take pride in presenting the mid-year report which reflects the performance of both service delivery and budget for the past two quarters of the 2015/2016 financial year.

The capital expenditure has underperformed by 15% out of the planned budgeted amount of R43 754 050 which gives a variance of R6 586 937 to the service delivery budget implementation plan (SDBIP). The under-spending resulted due to labor unrest on one capital project (Upgrade of Mofulatshepe Sports ground) which has brought this project to a standstill for the last three months of the period under review. The 3km access road (Smithfield) project had to be re-advertised. It is currently out on tender and spending are to commence once an appointment has been made after the closing date of the 05th of February 2016.

The operating income has underperformed by 21% out of the projected budget amount of

R76 674 630 which gives a variance of R16 170 271 to the service delivery and budget

implementation plan. Mohokare Local Municipality applied for a roll-over of unspent conditional

grant funds for the financial year ended 30 June 2015. The roll-over request was denied and as a

result, R7, 18 million was withheld from the first tranche of equitable share paid over during July

2015. If this amount is taken out of the calculation, underperformance on revenue drops to 11%

and another factor impacting the underperformance on revenue is the fact that the valuation roll

was implemented late due to technical issues.

The operating expenditure underperformed by 46% less out of planned budgeted amount of

R84 208 003 which gives a variance of R34 497 864 to the service delivery and budget

implementation plan. Mohokare Local Municipality is experiencing cash flow constraints, however

spending is monitored very closely and only crucial items which affects service delivery are

procured. Therefore the total actual achievement on the targets set for 2015/2016 Mid-year report

with reference service delivery and budget implementation plan resulted to 68.4%. I am hopeful

that as we approach the end of the financial year we will improve our budget performance for the

benefit of the current and future Mohokare.

I would like to take this opportunity to thank members of the public for their continuous support

and understanding in aspects with one intention, to have a better life for all. RE AHA MOTSE

______________ M.A. SHASHA MAYOR INTRODUCTION


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Introduction In terms of Section 72 (1) of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) (Herein after referred to as the MFMA), the accounting officer of a municipality must by 25 January of each year-

(a) Assess the performance of the municipality during the first half of the financial year, taking into account-

(i) The monthly statements referred to in section 71 for the first half of the financial

year;

(ii) The municipality's service delivery performance during the first half of the financial year, and the service delivery targets and performance indicators set in the service delivery and budget implementation plan;

(iii) The past year's annual report, and progress on resolving problems identified in the

annual report; and

(iv) the performance of every municipal entity under the sole or shared control of the municipality, taking into account reports in terms of section 88 from any such entities (excluded in this report); and

submit a report on such assessment to-

The Mayor of the Municipality;

The National Treasury; and

The relevant provincial treasury.

1.2 Thereafter, the Mayor must, in terms of Section 54. (1)-

(a) Consider the report; (b) Check whether the municipality's approved budget is implemented in accordance

with the service delivery and budget implementation plan; (c) Consider and, if necessary, make any revisions to the service delivery and budget

implementation plan, provided that revisions to the service delivery targets and performance indicators in the plan may only be made with the approval of the council following approval of an adjustments budget;

(d) Issue any appropriate instructions to the accounting officer to ensure-

(i) That the budget is implemented in accordance with the service delivery and budget implementation plan; and

(ii) That spending of funds and revenue collection proceed in accordance with


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the budget;

(e) Identify any financial problems facing the municipality, including any emerging or impending financial problems; and

(f) Submit the report to the council by 25 January of each year.

1.3 With the concurrence of the Chief Finance Manager, it was agreed that

(a) The Finance Department would submit a report complying with the financial requirements and dealing with the Adjustment Budget and;

(b) The Office of the Municipal Manager, IDP & Performance Management section would compile a report on the performance assessment of service delivery and related matters. Accordingly; this report addresses the first part i.e. (a); the second aspect will also be included with only matters related to the recommendations of compiling an adjustment budget.


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FS163 Mohokare - Table C1 Monthly Budget Statement Summary - M06 December

2014/15

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Financial Performance

Property rates 6 515 11 627 11 627 1 148 5 017 5 814 (797) -14% –

Serv ice charges 47 996 61 130 61 130 2 205 15 006 30 565 (15 558) -51% –

Inv estment rev enue 129 7 7 7 49 4 45 1241% –

Transfers recognised - operational 57 807 61 968 61 968 300 37 484 30 984 6 501 21% –

Other ow n rev enue 6 339 18 617 18 617 339 3 090 9 309 (6 219) -67% –

Total Revenue (excluding capital transfers

and contributions)

118 787 153 349 153 349 3 999 60 646 76 675 (16 028) -21% –

Employ ee costs 55 992 57 045 57 045 4 872 27 710 28 523 (813) -3% –

Remuneration of Councillors 3 236 3 609 3 609 270 1 618 1 804 (187) -10% –

Depreciation & asset impairment 25 616 28 427 28 427 – – 14 214 (14 214) -100% –

Finance charges 4 600 2 703 2 703 53 238 1 351 (1 114) -82% –

Materials and bulk purchases 23 608 20 563 20 563 205 938 10 282 (9 343) -91% –

Transfers and grants 12 7 365 7 365 464 2 190 3 683 (1 492) -41% –

Other ex penditure 51 393 48 703 48 703 2 804 15 380 24 352 (8 972) -37% –

Total Expenditure 164 457 168 416 168 416 8 667 48 074 84 208 (36 134) -43% –

Surplus/(Deficit) (45 671) (15 067) (15 067) (4 668) 12 573 (7 533) 20 106 -267% –

Transfers recognised - capital 47 977 86 254 86 254 8 357 58 023 43 127 14 896 35% –

Contributions & Contributed assets – – – – – – – –

Surplus/(Deficit) after capital transfers &

contributions

2 306 71 187 71 187 3 689 70 595 35 594 35 002 98% –

Share of surplus/ (deficit) of associate – – – – – – – –

Surplus/ (Deficit) for the year 2 306 71 187 71 187 3 689 70 595 35 594 35 002 98% –

Capital expenditure & funds sources

Capital expenditure 45 158 87 508 87 508 14 311 40 235 43 754 (3 519) -8% –

Capital transfers recognised 43 388 85 365 85 365 14 311 40 235 42 683 (2 447) -6% –

Public contributions & donations – – – – – – – –

Borrow ing – – – – – – – –

Internally generated funds 1 770 2 143 2 143 – – 1 072 (1 072) -100% –

Total sources of capital funds 45 158 87 508 87 508 14 311 40 235 43 754 (3 519) -8% –

Financial position

Total current assets 23 819 40 383 40 383 32 967 –

Total non current assets 492 920 493 621 493 621 17 902 –

Total current liabilities 79 547 68 000 68 000 (10 213) –

Total non current liabilities 31 793 37 685 37 685 9 618 –

Community wealth/Equity 405 400 428 318 428 318 51 464 –

Cash flows

Net cash from (used) operating 2 306 99 484 99 484 1 665 59 975 49 742 (10 233) -21% –

Net cash from (used) inv esting 841 (87 508) (87 508) 6 339 (51 546) (43 754) 7 792 -18% –

Net cash from (used) financing (454) (272) (272) – (282) (136) 146 -107% –

Cash/cash equivalents at the month/year end 945 131 131 – 8 506 (5 720) (14 226) 249% 359

Debtors & creditors analysis 0-30 Days 31-60 Days 61-90 Days 91-120 Days 121-150 Dys 151-180 Dys181 Dys-

1 YrOver 1Yr Total

Debtors Age Analysis

Total By Income Source 3 970 3 805 4 175 3 431 2 744 2 785 12 974 77 359 111 242

Creditors Age Analysis

Total Creditors 1 449 3 747 3 919 4 885 1 065 5 045 16 330 28 831 65 272

Description

Budget Year 2015/16


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2014/15 Budget Year 2015/16

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

Revenue - Standard

Governance and administration 64 955 53 243 53 243 1 347 37 136 26 622 10 515 39% –

Ex ecutiv e and council 6 5 372 5 372 – 777 2 686 (1 909) -71% –

Budget and treasury office 63 956 37 867 37 867 1 345 33 689 18 933 14 756 78% –

Corporate serv ices 993 10 004 10 004 2 2 670 5 002 (2 332) -47% –

Community and public safety 3 725 11 878 11 878 144 3 170 5 939 (2 769) -47% –

Community and social serv ices 115 4 246 4 246 5 930 2 123 (1 193) -56% –

Sport and recreation 0 4 600 4 600 – 1 418 2 300 (882) -38% –

Public safety 2 800 2 328 2 328 71 356 1 164 (808) -69% –

Housing 811 704 704 68 466 352 114 32% –

Health – – – – – – – –

Economic and environmental services 1 033 16 909 16 909 300 5 705 8 455 (2 750) -33% –

Planning and dev elopment – 995 995 – 222 498 (276) -55% –

Road transport 1 033 15 914 15 914 300 5 482 7 957 (2 475) -31% –

Env ironmental protection – – – – – – – –

Trading services 97 050 157 573 157 573 10 565 72 658 78 786 (6 128) -8% –

Electricity 22 364 46 611 46 611 – 3 407 23 306 (19 899) -85% –

Water 44 795 84 849 84 849 9 226 59 603 42 424 17 179 40% –

Waste w ater management 24 686 16 350 16 350 821 5 986 8 175 (2 189) -27% –

Waste management 5 205 9 762 9 762 518 3 662 4 881 (1 219) -25% –

Other 4 – – – – – – – –

Total Revenue - Standard 2 166 764 239 603 239 603 12 356 118 669 119 802 (1 133) -1% –

Expenditure - Standard

Governance and administration 64 789 47 743 47 743 4 182 24 542 23 871 671 3% –

Ex ecutiv e and council 10 797 11 178 11 178 611 3 858 5 589 (1 731) -31% –

Budget and treasury office 42 359 22 493 22 493 2 618 14 722 11 247 3 475 31% –

Corporate serv ices 11 633 14 071 14 071 953 5 962 7 035 (1 073) -15% –

Community and public safety 10 232 11 687 11 687 807 4 370 5 844 (1 473) -25% –

Community and social serv ices 6 771 7 403 7 403 566 3 079 3 702 (622) -17% –

Sport and recreation 1 260 1 856 1 856 41 207 928 (721) -78% –

Public safety 1 523 1 721 1 721 108 661 861 (200) -23% –

Housing 678 707 707 92 423 354 70 20% –

Health – – – – – – – –

Economic and environmental services 6 409 15 195 15 195 604 3 982 7 598 (3 615) -48% –

Planning and dev elopment 2 273 3 322 3 322 274 1 788 1 661 127 8% –

Road transport 4 136 11 873 11 873 330 2 194 5 937 (3 742) -63% –

Env ironmental protection – – – – – – – –

Trading services 83 027 93 791 93 791 3 074 15 179 46 895 (31 717) -68% –

Electricity 49 869 30 613 30 613 237 1 149 15 306 (14 157) -92% –

Water 17 849 23 928 23 928 1 764 8 536 11 964 (3 428) -29% –

Waste w ater management 9 944 26 738 26 738 650 3 302 13 369 (10 066) -75% –

Waste management 5 364 12 512 12 512 423 2 191 6 256 (4 065) -65% –

Other – – – – – – – –

Total Expenditure - Standard 3 164 457 168 416 168 416 8 667 48 074 84 208 (36 134) -43% –

Surplus/ (Deficit) for the year 2 306 71 187 71 187 3 689 70 595 35 594 35 002 98% –

References

1. Government Finance Statistics Functions and Sub-functions are standardised to assist the compilation of national and international accounts for comparison purposes

2. Total Revenue by standard classification must reconcile to Total Operating Revenue shown in the Financial Performance Statement

3. Total Expenditure by standard classification must reconcile to total operating expenditure shown in 'Financial Performance Statement'

RefDescription

FS163 Mohokare - Table C2 Monthly Budget Statement - Financial Performance (standard classification) - M06 December

4. All amounts must be classified under a standard classification (modified GFS). The GFS function 'Other' is only for Abbatoirs, Air Transport, Markets and Tourism - and if used must

be supported by footnotes. Nothing else may be placed under 'Other'. Assign associate share to relevant classification


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Vote Description 2014/15

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Revenue by Vote 1

Vote 1 - COUNCIL & EXECUTIVE 6 6 368 6 368 – 1 000 3 184 (2 184) -68.6% –

Vote 2 - FINANCE 63 956 38 233 38 233 1 345 33 800 19 116 14 684 76.8% –

Vote 3 - CORPORATE SERVICES 993 7 746 7 746 2 2 559 3 873 (1 314) -33.9% –

Vote 4 - COMMUNITY SERVICES 3 725 11 878 11 878 144 3 170 5 939 (2 769) -46.6% –

Vote 5 - TECHNICAL SERVICES 98 083 175 378 175 378 10 865 78 141 87 689 (9 548) -10.9% –

Vote 6 - [NAME OF VOTE 6] – – – – – – – –

Vote 7 - [NAME OF VOTE 7] – – – – – – – –

Vote 8 - [NAME OF VOTE 8] – – – – – – – –

Vote 9 - [NAME OF VOTE 9] – – – – – – – –

Vote 10 - [NAME OF VOTE 10] – – – – – – – –

Vote 11 - [NAME OF VOTE 11] – – – – – – – –

Vote 12 - [NAME OF VOTE 12] – – – – – – – –

Vote 13 - [NAME OF VOTE 13] – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – –

Total Revenue by Vote 2 166 764 239 603 239 603 12 356 118 669 119 802 (1 133) -0.9% –

Expenditure by Vote 1

Vote 1 - COUNCIL & EXECUTIVE 13 070 14 500 14 500 884 5 646 7 250 (1 604) -22.1% –

Vote 2 - FINANCE 43 742 23 900 23 900 2 699 15 202 11 950 3 252 27.2% –

Vote 3 - CORPORATE SERVICES 10 250 10 001 10 001 872 5 482 5 001 482 9.6% –

Vote 4 - COMMUNITY SERVICES 10 232 11 687 11 687 807 4 370 5 844 (1 473) -25.2% –

Vote 5 - TECHNICAL SERVICES 87 163 108 328 108 328 3 404 17 373 54 164 (36 791) -67.9% –

Vote 6 - [NAME OF VOTE 6] – – – – – – – –

Vote 7 - [NAME OF VOTE 7] – – – – – – – –

Vote 8 - [NAME OF VOTE 8] – – – – – – – –

Vote 9 - [NAME OF VOTE 9] – – – – – – – –

Vote 10 - [NAME OF VOTE 10] – – – – – – – –

Vote 11 - [NAME OF VOTE 11] – – – – – – – –

Vote 12 - [NAME OF VOTE 12] – – – – – – – –

Vote 13 - [NAME OF VOTE 13] – – – – – – – –

Vote 14 - [NAME OF VOTE 14] – – – – – – – –

Vote 15 - [NAME OF VOTE 15] – – – – – – – –

Total Expenditure by Vote 2 164 457 168 416 168 416 8 667 48 074 84 208 (36 134) -42.9% –

Surplus/ (Deficit) for the year 2 2 306 71 187 71 187 3 689 70 595 35 594 35 002 98.3% –

References

1. Insert 'Vote'; e.g. Department, if different to standard classification structure

2. Must reconcile to Monthly Budget Statement - Financial Performance Statement (standard classification)

FS163 Mohokare - Table C3 Monthly Budget Statement - Financial Performance (revenue and expenditure by municipal vote) - M06 December

Ref

Budget Year 2015/16


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2014/15

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands %

Revenue By Source

Property rates 6 515 11 627 11 627 1 148 5 017 5 814 (797) -14%

Property rates - penalties & collection charges – –

Serv ice charges - electricity rev enue 22 364 32 420 32 420 – 16 210 (16 210) -100%

Serv ice charges - w ater rev enue 12 403 10 890 10 890 869 7 029 5 445 1 584 29%

Serv ice charges - sanitation rev enue 8 012 10 832 10 832 818 4 871 5 416 (545) -10%

Serv ice charges - refuse rev enue 5 205 6 750 6 750 518 3 107 3 375 (269) -8%

Serv ice charges - other 12 238 238 – 119 (119) -100%

Rental of facilities and equipment 1 064 663 663 143 498 331 167 50%

Interest earned - ex ternal inv estments 129 7 7 7 49 4 45 1241%

Interest earned - outstanding debtors 806 5 758 5 758 84 342 2 879 (2 537) -88%

Div idends receiv ed 7 11 11 – 10 5 4 82%

Fines 1 639 1 400 1 400 71 211 700 (489) -70%

Licences and permits 4 – – – 2 – 2 #DIV/0!

Agency serv ices – –

Transfers recognised - operational 57 807 61 968 61 968 300 37 484 30 984 6 501 21%

Other rev enue 2 753 10 786 10 786 42 2 027 5 393 (3 366) -62%

Gains on disposal of PPE 66 –

Total Revenue (excluding capital transfers and

contributions)

118 787 153 349 153 349 3 999 60 646 76 675 (16 028) -21% –

Expenditure By Type

Employ ee related costs 55 992 57 045 57 045 4 872 27 710 28 523 (813) -3%

Remuneration of councillors 3 236 3 609 3 609 270 1 618 1 804 (187) -10%

Debt impairment 21 104 14 348 14 348 – – 7 174 (7 174) -100%

Depreciation & asset impairment 25 616 28 427 28 427 – – 14 214 (14 214) -100%

Finance charges 4 600 2 703 2 703 53 238 1 351 (1 114) -82%

Bulk purchases 23 608 20 563 20 563 205 938 10 282 (9 343) -91%

Other materials – – – – – –

Contracted serv ices 3 660 40 40 9 55 20 35 174%

Transfers and grants 12 7 365 7 365 464 2 190 3 683 (1 492) -41%

Other ex penditure 26 274 34 315 34 315 2 796 15 325 17 158 (1 833) -11%

Loss on disposal of PPE 355 – –

Total Expenditure 164 457 168 416 168 416 8 667 48 074 84 208 (36 134) -43% –

Surplus/(Deficit) (45 671) (15 067) (15 067) (4 668) 12 573 (7 533) 20 106 (0) –

Transfers recognised - capital 47 977 86 254 86 254 8 357 58 023 43 127 14 896 0

Contributions recognised - capital –

Contributed assets –

Surplus/(Deficit) after capital transfers &

contributions

2 306 71 187 71 187 3 689 70 595 35 594 –

Tax ation –

Surplus/(Deficit) after taxation 2 306 71 187 71 187 3 689 70 595 35 594 –

Attributable to minorities

Surplus/(Deficit) attributable to municipality 2 306 71 187 71 187 3 689 70 595 35 594 –

Share of surplus/ (deficit) of associate

Surplus/ (Deficit) for the year 2 306 71 187 71 187 3 689 70 595 35 594 –

References

1. Material variances to be explained on Table SC1

Total Rev enue (ex cluding capital transfers and contributions) including capital transfers/contributions etc166 764 239 603 239 603 12 356 118 669 119 802

Description Ref

Budget Year 2015/16

FS163 Mohokare - Table C4 Monthly Budget Statement - Financial Performance (revenue and expenditure) - M06 December


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FS163 Mohokare - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, standard classification and funding) - M06 December

Vote Description Ref

2014/15 Budget Year

2015/16

Audited Outcome

Original Budget

Adjusted Budget

Monthly actual

YearTD actual

YearTD budget

YTD variance YTD

variance Full Year Forecast

R thousands 1 %

Multi-Year expenditure appropriation 2 Vote 1 - COUNCIL & EXECUTIVE – – – – – – –

–

Vote 2 - FINANCE – – – – – – – –

Vote 3 - CORPORATE SERVICES – – – – – – –

–

Vote 4 - COMMUNITY SERVICES – – – – – – –

–

Vote 5 - TECHNICAL SERVICES – – – – – – –

–

Vote 6 - [NAME OF VOTE 6] – – – – – – – –

Vote 7 - [NAME OF VOTE 7] – – – – – – – –

Vote 8 - [NAME OF VOTE 8] – – – – – – – –

Vote 9 - [NAME OF VOTE 9] – – – – – – – –

Vote 10 - [NAME OF VOTE 10] – – – – – – –

–

Vote 11 - [NAME OF VOTE 11] – – – – – – –

–

Vote 12 - [NAME OF VOTE 12] – – – – – – –

–

Vote 13 - [NAME OF VOTE 13] – – – – – – –

–

Vote 14 - [NAME OF VOTE 14] – – – – – – –

–

Vote 15 - [NAME OF VOTE 15] – – – – – – –

–

Total Capital Multi-year expenditure 4,7 – – – – – – –

–

Single Year expenditure appropriation 2 Vote 1 - COUNCIL & EXECUTIVE 1 558 122

122 – –

61 (61) -100%

–

Vote 2 - FINANCE 159 390 390 – –

195 (195) -100%

–

Vote 3 - CORPORATE SERVICES – 75

75 – –

38 (38) -100%

–

Vote 4 - COMMUNITY SERVICES 995 3 438

3 438 –

1 875

1 719 156 9%

–

Vote 5 - TECHNICAL SERVICES 42 445 83 484

83 484

14 311

38 360

41 742 (3 382) -8%

–

Vote 6 - [NAME OF VOTE 6] – – – – – – – –

Vote 7 - [NAME OF VOTE 7] – – – – – – – –

Vote 8 - [NAME OF VOTE 8] – – – – – – – –

Vote 9 - [NAME OF VOTE 9] – – – – – – – –

Vote 10 - [NAME OF VOTE 10] – – – – – – –

–

Vote 11 - [NAME OF VOTE 11] – – – – – – –

–

Vote 12 - [NAME OF VOTE 12] – – – – – – –

–

Vote 13 - [NAME OF VOTE 13] – – – – – – –

–

Vote 14 - [NAME OF VOTE 14] – – – – – – –

–


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Vote 15 - [NAME OF VOTE 15] – – – – – – –

–

Total Capital single-year expenditure 4 45 158 87 508

87 508

14 311

40 235

43 754 (3 519) -8%

–

Total Capital Expenditure 45 158 87 508 87 508

14 311

40 235

43 754 (3 519) -8%

–

Capital Expenditure - Standard Classification Governance and administration 1 718 587

587 – –

293 (293) -100%

–

Executive and council 1 558 122 122

61 (61) -100%

Budget and treasury office 159 390 390

195 (195) -100%

Corporate services 75 75

38 (38) -100%

Community and public safety 995 3 438

3 438 –

1 875

1 719 156 9%

–

Community and social services 52 –

Sport and recreation 943 3 438 3 438

1 875

1 719 156 9%

Public safety –

Housing –

Health – Economic and environmental services 8 690 12 562

12 562 –

2 917

6 281 (3 363) -54%

–

Planning and development –

Road transport 8 690 12 562 12 562 –

2 917

6 281 (3 363) -54%

Environmental protection –

Trading services 33 755 70 922 70 922

14 311

35 443

35 461 (18) 0%

–

Electricity 4 087 1 865 1 865 –

247

933 (686) -74%

Water 29 668 68 240 68 240

14 311

33 573

34 120 (547) -2%

Waste water management 817 817

1 623

408 1 215 298%

Waste management – – – –

Other –

Total Capital Expenditure - Standard Classification 3 45 158 87 508

87 508

14 311

40 235

43 754 (3 519) -8%

–

Funded by:

National Government 43 388 85 365 85 365

14 311

40 235

42 683 (2 447) -6%

Provincial Government –

District Municipality –

Other transfers and grants –

Transfers recognised - capital 43 388 85 365

85 365

14 311

40 235

42 683 (2 447) -6%

–

Public contributions & donations 5 –

Borrowing 6 –

Internally generated funds 1 770 2 143 2 143

1 072 (1 072) -100%

Total Capital Funding 45 158 87 508 87 508

14 311

40 235

43 754 (3 519) -8%

–

References 1. Municipalities may choose to appropriate for capital expenditure for three years or for one year (if one year appropriation projected expenditure required for yr2 and yr3).

2. Include capital component of PPP unitary payment

3. Capital expenditure by standard classification must reconcile to the total of multi-year and single year appropriations

4. Include expenditure on investment property, intangible and biological assets 5. Must reconcile to Monthly Budget Statement Financial Performance (revenue and expenditure)


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6. Include finance leases and PPP capital funding component of unitary payment - total borrowing/repayments to reconcile to changes in Table SA17

2014/15 Budget Year 2015/16

Audited

Outcome

Original

Budget

Adjusted

Budget

YearTD

actual

Full Year

Forecast

R thousands 1

ASSETS

Current assets

Cash 945 200 200 9 507

Call inv estment deposits – – –

Consumer debtors 8 897 3 424 3 424 7 535

Other debtors 13 212 8 249 8 249 15 925

Current portion of long-term receiv ables – – –

Inv entory 765 28 510 28 510 –

Total current assets 23 819 40 383 40 383 32 967 –

Non current assets

Long-term receiv ables – – –

Inv estments 320 320 6

Inv estment property 22 177 17 747 17 747 –

Inv estments in Associate – – –

Property , plant and equipment 470 142 475 254 475 254 17 846

Agricultural – – –

Biological assets 257 300 300 (9)

Intangible assets – – –

Other non-current assets 345 – – 60

Total non current assets 492 920 493 621 493 621 17 902 –

TOTAL ASSETS 516 739 534 003 534 003 50 869 –

LIABILITIES

Current liabilities

Bank ov erdraft 5 000 5 000 (20 765)

Borrow ing 418 320 320 –

Consumer deposits 522 650 650 20

Trade and other pay ables 78 607 62 030 62 030 10 532

Prov isions – – –

Total current liabilities 79 547 68 000 68 000 (10 213) –

Non current liabilities

Borrow ing 20 409 17 685 17 685 –

Prov isions 11 385 20 000 20 000 9 618

Total non current liabilities 31 793 37 685 37 685 9 618 –

TOTAL LIABILITIES 111 340 105 685 105 685 (595) –

NET ASSETS 2 405 400 428 318 428 318 51 464 –

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 405 400 428 318 428 318 51 464

Reserv es –

TOTAL COMMUNITY WEALTH/EQUITY 2 405 400 428 318 428 318 51 464 –

References

2. Net assets must balance with Total Community Wealth/Equity

check balance 1 - - - -

Description Ref

1. Material variances to be explained in Table SC1

FS163 Mohokare - Table C6 Monthly Budget Statement - Financial Position - M06 December


P a g e 14

2014/15 Budget Year 2015/16

Audited

Outcome

Original

Budget

Adjusted

Budget

Monthly

actual

YearTD

actual

YearTD

budget

YTD

variance

YTD

variance

Full Year

Forecast

R thousands 1 %

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates, penalties & collection charges 6 515 9 122 9 122 965 2 590 4 561 (1 971) -43%

Serv ice charges 47 996 49 156 49 156 315 2 972 24 578 (21 606) -88%

Other rev enue 5 526 12 849 12 849 148 2 441 6 424 (3 984) -62%

Gov ernment - operating 57 807 61 968 61 968 300 37 484 30 984 6 501 21%

Gov ernment - capital 47 977 86 254 86 254 8 357 58 023 43 127 14 896 35%

Interest 935 5 765 5 765 – 26 2 882 (2 856) -99%

Div idends 7 11 11 – – 5 (5) -100%

Payments

Suppliers and employ ees (159 846) (115 573) (115 573) (8 420) (43 557) (57 786) (14 230) 25%

Finance charges (4 600) (2 703) (2 703) – (5) (1 351) (1 347) 100%

Transfers and Grants (12) (7 365) (7 365) – – (3 683) (3 683) 100%

NET CASH FROM/(USED) OPERATING ACTIVITIES 2 306 99 484 99 484 1 665 59 975 49 742 (10 233) -21% –

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE (42 232) – – – – –

Decrease (Increase) in non-current debtors (36 562) – – – – –

Decrease (increase) other non-current receiv ables 22 209 – – – – –

Decrease (increase) in non-current inv estments – – 20 650 (11 310) (11 310) #DIV/0!

Payments

Capital assets 57 426 (87 508) (87 508) (14 311) (40 235) (43 754) (3 519) 8%

NET CASH FROM/(USED) INVESTING ACTIVITIES 841 (87 508) (87 508) 6 339 (51 546) (43 754) 7 792 -18% –

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – –

Borrow ing long term/refinancing – – – – –

Increase (decrease) in consumer deposits (114) – – –

Payments

Repay ment of borrow ing (340) (272) (272) – (282) (136) 146 -107%

NET CASH FROM/(USED) FINANCING ACTIVITIES (454) (272) (272) – (282) (136) 146 -107% –

NET INCREASE/ (DECREASE) IN CASH HELD 2 693 11 704 11 704 8 004 8 147 5 852 –

Cash/cash equiv alents at beginning: (1 748) (11 572) (11 572) 359 (11 572) 359

Cash/cash equiv alents at month/y ear end: 945 131 131 8 506 (5 720) 359

References

1. Material variances to be explained in Table SC1

Description Ref

FS163 Mohokare - Table C7 Monthly Budget Statement - Cash Flow - M06 December


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2. SERVICE DELIVERY REPORTS

2.1 Technical Services

2.1.1 Introduction

The Technical Services Department has been structured to include the below mentioned divisions:

2.1.1.1 Project Management Unit

The PMU unit was established in March 2009 and its functions are to oversee the implementation of all MIG projects, but this function has however been extended to management of all Infrastructural projects within the Municipality.

The functions of the PMU are listed below:

Monitoring of projects.

Evaluation of projects.

Financial Management.

Project planning.

Reporting

The PMU of Mohokare LM is located within the technical department and has the following positions:

Senior PMU Technician - Vacant

PMU Technician - Mr SL Shamase

PMU Data Capturer - Ms D Kholanyane

PMU Intern - Ms N Stuurman

2.1.1.2 Drinking Water Services

The Municipality is currently both a Water Services Authority and a Water Services Provider. It provides water through three water systems that are located in each town. The Smithfield Water treatment plant has recently been upgraded and was commissioned in December 2013 while the Rouxville treatment is currently under construction (67% progress). The Municipality is currently busy with the construction of 15 km raw water pipeline in Zastron and progress made is at 48%. The Municipality conduct monthly water test as per SANS 241 in order to ensure that the supplied water is always good for human consumption.

2.1.1.3 Sanitation Services

The Municipality provides water borne sanitation as its basic minimum standard for sanitation service; however certain households within the three towns were still utilizing buckets systems as from the beginning of the financial year namely Zastron 34, Rouxville 777 and Smithfield 54. This number is gradually declining due to the bucket eradication program that is currently been implemented within the three towns.

2.1.1.4 Roads and Storm Water Division

The Municipality was unable to perform well in the first six months of the financial year in its roads and storm water division due to lack of fleet and roads maintenance machineries. However significant improvement on access roads were achieved with the


P a g e 16

construction of the 2.9 km access road in Matlakeng, the project is 98% complete and the road is currently been utilized. Other activities within this unit include patching of potholes in Zastron and cleaning of storm water channel in all three towns utilizing EPWP program.

2.1.1.5 Electricity

Although provision has been made for establishment of the electricity division in the Municipal organogram but its functions are limited to internal operational work (e.g. operation and maintenance of water and waste water treatment works, maintenance of Municipal buildings, etc.) as this service has been outsourced to CENTLEC.

2.1.2 CAPITAL PROGRAMMES

2.1.2.1 Municipal Infrastructure Grant

The Municipality has an allocation of R 17 780 000.00 for implementation of MIG projects within its jurisdiction for the financial year of 2015/16. Due to the MIG roll over outcome, only R 945 000.00 was approved. This therefore means that the total funds to be spent for the 2015/16 financial year is R 18 725 000.00

Below is a breakdown of transfers against expenditure to date:

Annual Allocation Amount Transferred

Expenditure at 31 December 2015

Balance on transfers by 31 December 2015

Expenditure on Allocation in percentages

R 17 780 000.00 R 11 714 000.00 R 4 158 368.36 R 7 555 631.64

23%

Project Description

MIG Value Expenditure at the end of 14/15

Expenditure in 15/16

Status of the Project

Planned Completion

Mohokare PMU 15/16

889,000.00 - 391,385.42 Functional

Zastron/Matlakeng: Upgrading of the waste water treatment works

22,170,851.00 11,700,492.28 1,623,000.00

Construction

20-May-16

Smithfield/Somidopark: Construction of 3km accesss collectors, internal streets and related storm water

17,268,747.00 1,800,801.00 -

On Tender

15-Dec-16

Zastron/Matlakeng: Construction of 2.9 km paved access collector internal streets

16,895,196.00 15,853,191.00 1,028,799.78

Retention

30-Mar-15


P a g e 17

Project Description

MIG Value Expenditure at the end of 14/15

Expenditure in 15/16

Status of the Project

Planned Completion

Zastron: Installation of high mast lights in Refengkhotso

4,293,187.00 4,046,271.67 246,915.33

Complete

31-Oct-13

Matlakeng: Upgrading of sports ground

3,196,692.00 3,120,911.48 58,795.78

Complete

30-Jul-14

Mofulatshepe: Upgrading of sports ground

3,302,322.00 1,000,000.00 809,472.05 On hold (labour unrest)

27-Feb-16

Zastron/Itumeleng: Upgrading of sports facility (MIS:227491)

3,200,000.00 - - BID

Evaluation

4-Nov-16

TOTAL 25 975 291.00 16 838 233.72 9 482 352.19

As indicated in the above table, the municipality was not able to reach the provincial target of 44%.

Reasons for not meeting the target are listed below:

The main reason to the failure is as a result of one of our major projects, specifically the construction of 3km access road in Smithfield that was stopped following an instruction given by the high court.

Labour unrest on the Mofulatshepe: Upgrading of the sports grounds project. The strike is based on the structuring of the contracts whereby the workers are in a disagreement with the contractor, Johnny Bravo Trading. The workers have closed down the site and have indicated that they will not resume until the contact states that they will be paid out for days that they have not worked. There has been no work on site now for the past two (2) months.

No payment was made on the Zastron waste water treatment works project as the contractor has not fully established site.

2.1.2.2 Integrated National Electrification Project

The municipality has received funding amounting to R 474 000.00

The scope of work comprises of electrification of the below indicated households

Zastron - 45

Smithfield - 36

Project Description Project value Expenditure to Date Status of the Project

Planned Completion

Zastron: Electrification of 45 households

R 237 000.00 R 60 800.00 Implementation 11 March 2016

Smithfield: Electrification of 36 households

R 237 000.00 R 45 600.00 Implementation 11 March 2016

TOTAL R 153 395 709.89 R 91 936 623.96


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2.1.2.3 Regional Bulk Infrastructure Grant (RBIG)

The municipality received an allocation of R 53 000 000.00 for the implementation of RBIG projects within Mohokare. Three (3) projects are currently being implemented for the financial year of 2015/16.

The projects implemented in the 2015/16 financial year are listed below:

1. Upgrading of the Rouxville / Roleleathunya Water Treatment Works (WTW)- Completion of civil works.

2. Construction of a 27km bulk raw water pipeline from the Orange River to the Paisley Dam in Rouxville- C2.

3. Construction of 15km raw bulk water from Montague Dam to Kloof Dam and the Zastron Water Treatment Works (WTW).

Project Description Project value Expenditure to Date Status of the Project

Planned Completion

Rouxville: Upgrading of the Rouxville / Roleleathunya WTW

R 45 271 169,34 R 40 613 718.44 On hold To be confirmed once the mediation process has been concluded

Rouxville: Construction of a 27km bulk raw water pipeline from the Orange River to the Paisley Dam (C2)

R 73 555 000,00 R 27 133 164.25 Construction 26 May 2016

Zastron: Construction of a 15km bulk raw water pipeline from the Montague Dam to Kloof Dam and Zastron WTW

R 34 569 540,55 R 24 189 741.27 Construction 22 January 2016

TOTAL R 153 395 709.89 R 91 936 623.96

2.1.2.4 Municipal Water Infrastructure Grant (MWIG)

Mohokare LM has been allocated R 15 000 000.00 for the implementation of MWIG projects during the financial year of 2015/16 by the Department of Water and Sanitation (DWS). Five (5) projects were identified and approved for implementation.

The municipality has been appointed as the Implementing Agent (IA) and to date an amount of R 11 250 000.00 has been transferred.


P a g e 19

Project Description Allocation Expenditure to Date Status of the Project

Planned Completion

Zastron Refurbishment R 100 000.00 R 00.00 Retention 11-Nov-14

Smithfield Water Conservation and Water Demand Management

R 1 000 000.00 R 589 225.36 Construction 26-May-16

Zastron Water Conservation and Water Demand Management

R 1 000 000.00 R 868 785.36 Construction 29-Apr-16

Upgrading of the Zastron WTW

R 7 000 000.00 R 00.00 Design & Tender 23-Nov-16

Smithfield Borehole Development

R 5 900 000.00 R 569 247.04 Construction 30-Jun-16

TOTAL R 15 000 000.00 R 2 027 257.76

2.1.3 OPERATIONAL PROGRAMMES

2.1.3.1 Drinking Water Services

Mohokare Local Municipality serves both as a water service authority and water service provider. This function is executed in all three towns with each town having an independent water source and infrastructure. Mohokare Municipality, like any other Municipality in the country is obliged under the legislation to comply, in order to achieve service delivery quality standards as determine in the National Water Services Act No. of 1998 and National Water Services Regulatory Strategy (NWSRS). The report would hereby focus on two items namely: Quantity and Quality of the water treated during the past six months

QUANTITY (Kiloliters)

TOWN JULY AUG SEPT OCT NOV DEC TOTAL

Smithfield 51879 54392 57820.5 61770 60118 67300 353279.5

Rouxville 37490 47921 37750 39040 41333 41670 245204

Zastron 99467 78500 86539 55840 65400 68490 454236

TOTAL 188836 180813 182109.5 156650 166851 177460 1052720

QUALITY

The Municipality is currently monitoring the quality of water per 8 hour shift with focus on the physical quality of it, namely: turbidity, pH and Chlorine. The microbiological tests are conducted on a monthly basis utilizing the University of the Free State Underground water study laboratory. Blue Drop water quality compliance assessment performed in the three towns for the past six months is indicated below:


P a g e 20

Rouxville results

Month Total number of samples

Sampling Frequency

% Achieved E coli

% Achieved

Total Coliforms

Average

July 4 2 100 100 100

August 2 1 100 100 100

Sep 4 2 100 100 100

Oct 4 2 100 100 100

Nov 2 1 100 60 80

Dec 4 2 100 60 80

TOTAL 20 10

Smithfield results


Sampling Frequency

% Achieved E coli

% Achieved Total Coliforms

Average

July 4 2 100 100 100

August 4 2 100 100 100

Sep 4 2 100 100 100

Oct 4 2 100 100 100

Nov 2 2 100 100 100

Dec 4 2 100 100 100

TOTAL 22 11

Zastron results


Sampling Frequency

% Achieved E coli


Average

July 4 2 100 100 100

August 2 2 100 100 100

Sep 4 2 100 100 100

Oct 4 2 100 100 100

Nov 2 2 100 80 90

Dec 4 2 100 100 100

TOTAL 20 12 600 580


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2.1.3.2 Sanitation Services

Ninety two percent (92%) of the households within the Mohokare utilises water borne system for sanitation. Each town has its own waste water treatment plant with their location just on the periphery of the residential areas.

The Zastron and Rouxville plant utilises a Bio filtration system while the Smithfield plant is currently utilising activated sludge process. The Smithfield waste water treatment plant was upgraded and commissioned in February 2013, while the Zastron waste water treatment plant is under construction.

The Green drop waste water quality for the three towns for the six months is therefore:

Rouxville waste water results


Sampling Frequency

% Achieved E coli

% Achieved Feacal Coliforms

Average

July 4 2 100 100 100

August 2 2 100 100 100

Sep 4 2 100 100 100

Oct 4 2 100 100 100

Nov 2 2 100 100 100

Dec 4 2 100 100 100

TOTAL 20 12 100% 100% 100%

Smithfield waste water results


Sampling Frequency

% Achieved E coli


Average

July 4 2 100 100 100

August 2 2 100 100 100

Sep 4 2 100 100 100

Oct 4 2 100 100 100

Nov 2 2 100 100 100

Dec 4 2 100 100 100

TOTAL 20 12 100% 100% 100%

Zastron waste water results


Sampling Frequency

% Achieved E coli


Average

July 4 2 100 100 100

August 4 2 100 100 100

Sep 4 2 100 100 100

Oct 4 2 100 100 100

Nov 2 2 100 100 100

Dec 4 2 100 100 100

TOTAL 20 12 100% 100% 100%


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Bucket Removals

The Municipality failed to meet the National Target on the Bucket Eradication, below is a number of existing buckets per town and progress made to eradicate them:

Area No. of Buckets Progress to date

Zastron 34 Contractor is on site and expected to complete the connections by end of March 2015

Rouxville 777 Contractor on site for construction of mainlines and households connections

Smithfield 54 Contractor has completed the works and now awaits commissioning

All the above mentioned work is funded by the Department of Human Settlement working together with Bloem Water and the Municipality

2.1.4 Roads and Storm Water

Level of Street infrastructure in urban area (km)

Surfaced Gravel Graded Total

21 60 90 171

Below is some of the works that were performed for the last six months:

Paved Access Road

A 2.9 km paved road was constructed in Matlakeng and the road was commissioned in January 2015.

Tar Road

A total of 76 m2 of potholes were refilled in Majozi Street – Zastron

Gravel road

A total of 13.2 km were graded this excluded grading activities done on the sports grounds

Storm water management

The Municipality is currently handling its storm water with the open channel drains and underground storm water pipes. The open channel drains are daily maintained under the EPWP program where contract workers are assigned to remove sand.


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3. COMMUNITY SERVICES

3.1 INTRODUCTION 3.1.1 Expanded Public Works Programme (EPWP)

The Municipality has always been allocated a R 1 million on annual basis as an incentive grant for implementation of labour intensive programmes which has the primary objective of creating employment opportunities. Since the start of July 2015, the Municipality has implemented the below mentioned programmes under the environmental and infrastructure Sectors. The expenditure to date, is as the below figure.

PROJECT NAME OF TOWN

ALLOCATION PER TOWN

NUMBER OF WARDS

EMPLOYMENT OPPORTUNITIES PER WARD

1. Working on Parks 2. Working on Storm Water 3. Working on Cemeteries 4. Working on Landfills 5. Cleaning and Greening

Zastron/ Smithfield/ Rouxville

39 (thirty nine) 3 (three) 13 (thirteen) x 3

26 (twenty six) 2 (two) 13 (thirteen) x 2

13 (thirteen) 1 (one) 13 (thirteen) x 1

Total 3 (three) Towns 78 (seventy eight) 6 (six) 78 (seventy eight)

Expenditure to date

R 523 968.61

The report intends to give a preview of work, projects and activities done since the start of 2015/16 financial year to December 2015.

3.1.2 PROJECTS SINCE JULY TO DECEMBER 2015

LIST NO.

PROJECT NAME AREA/TOWN BUDGET AMOUNT

PROJECT PERIOD

PROJECT STATUS SINCE JULY 2015

1. BOMAC Construction

Zastron R127 589 05 X 200 Housing units.

2014/16 (the project started by May 2015)

34 x complete and handed over houses

111 x foundations excavated

55 x Wallplates

3.1.3 SITE AND HOUSING DISPUTES

Other than facilitation of housing projects, housing and sites disputes that emanates from different families and relatives, are been attended within this division with some been elevated or referred to offices of the Magistrates due to their merits. Below, is a reflection of disputes recorded and attended during the financial year. The outstanding cases will be attended as per the Families requests and availability as some of them are working outside Mohokare.

Name of Town

No. of Disputes lodged

July Aug. Sept. Oct. Nov. Dec. Type of Dispute Attended Outcome

Site No.

Houses Estates Yes No.

Rouxville 8 (eight) - - - - - - 1 7 - 1 - Resolved


P a g e 24

Zastron 26 (twenty six)

- - - - - - - 26 - - - Pending

Smithfield 2 (Two). - - - - - - - 2 - - - Pending

Total 36 (thirty six)

- - - 1 35 - 1 - -

3.1.4 COMMONAGE MANAGEMENT

Municipal Livestock

Date / Datum

Balance /Einde

Increase/ Decrease /Styging

Reason of Decrease / Increase/Rede vir styging

Breakdown of balance / Ontleiding van eindbalans

Total balance

Cattle Total Horses Total Total balance

Bulls Cows Calves Stallions Mares Calves

July 67 1 1 new born Calve

68 1 37 21 59 3 5 1 9 68

August 68 0 N/A 68 1 37 21 59 3 5 1 9 68

September 68 2 One Cow and a Calve missing

66 1 36 20 57 3 5 1 9 70

66 14 New born Calves

80 1 36 34 71 3 5 1 9 80

October 80 - - 80 1 36 34 71 3 5 1 9 80

November 80 - - 80 1 36 34 71 3 5 1 9 80

December 80 2 Two new born Calves

82 1 36 35 72 3 5 2 10 82

Total livestock to date

80 - Two new born Calves

82 1 36 35 72 3 5 2 10 82

3.1.5 TRAFFIC LAW ENFORCEMENT, SAFETY AND SECURITY

SUMMARY TRAFFIC NOTICES ISSUED AND PAYMENTS RECEIVED – JULY TO DECEMBER - 2015

NUMBER OF NOTICES ISSUED WITH MONEY VALUE; MONTH ZASTRON

ISSUED AMOUNT ZASTRON

ROUXVILLE ISSUED

AMOUNT ROUXVILLE

SMITHFIELD ISSUED

AMOUNT SMITHFIELD

TOTAL ISSUED

July 0 (None) R0.00 17 (seventeen) R14 100.00 16 (sixteen) R47 600.00 R61 700.00

August 13 (thirteen) R7 800.00 8 (eight) R5 300.00 55 (fifty five) R45 300.00 R58 400.00

September 81 (eighty one)

R41 850.00 193 (hundred & ninety three)

R219 550.00 64 (sixty four) R51 050.00 R312 450.00

October 0 (None) R0.00 280 (two hundred & eighty)

R225 900.00 79 (seventy nine)

R66 150.00 R292 050.00

November 25 (twenty five)

R13 350.00 180 (hundred and eighty)

R139 000.00 117 (hundred and Seventeen)

R92 050.00 R244 400.00

December 0 R0.00 381 R303 700.00 64 R39 000.00 R342 700.00


P a g e 25

TOTAL 119 (hundred & nineteen)

R63 000.00 (sixty three thousand)

1059 (one thousand and fifty nine)

R907 550.00 (nine hundred and seven thousand five hundred and fifty)

395 (three hundred and ninety five)

R341 150.00 R1 311 700.00

PAYMENTS RECEIVED FROM THE COURTS UNTO THE MUNICIPALITY;

MONTH ROUXVILLE SMITHFIELD ZASTRON TOTAL

July R0.00 R16 750.00 R0.00 R16 750.00

August R5 000.00 R3 800.00 R1 200.00 R10 000.00

September R8 600.00 R8 850.00 R1550.00 R19 000.00

October R18 200.00 R0.00 R1 000.00 R19 200.00

November R24 000.00 R14 200.00 R2 250.00 R40 450.00

December R500.00 R31 000.00 R9 740.00 R41 240.00

TOTAL R15,700-00 R160,600-00 R13,140-00 R192,840-00

3.1.6 ENVIRONMENTAL HEALTH REPORT

This division falls within the competency of the Xhariep District Municipal offices situated in Trompsburg as its one of the main functions they are performing regarding hands on support to Local Municipalities. Amongst all the work and projects done within this division, the below table with strategic objectives and purpose, reflects on the status that have been achieved from monthly to annual reporting.

MOHOKARE GOES GREEN (EPWP) Programmes overlaps into this division for purpose of identification of required sectors and areas of challenges for immediate attention in order to curb environmental challenges. CWP (Community Works Programme) under the auspice of Provincial CoGTA.

A programme from the Province as mentioned above to local Municipality for technical assistance on specific identifiable areas where Municipality is faced with challenges. There is constant consultations or communication between the Municipality and the Provincial CoGTA regarding the programme and the ground work usually done by the workers, find its expression within the reports that will be received from the Municipal EPWP Champion`s on annual basis.

STRATEGIC OBJECTIVE PURPOSE STATUS

Licensing of landfill Sites To ensure good environmental governance and to correct the practice of operating landfill sites without permits/licenses and improve operations on the sites and to protect communities.

The processes has to start from the beginning and the Environmental Health Office should ensure that there is constant communication with the Department.

Environmental project: Tholoana Consulting

To promote support regarding the core mandates that Municipality has to

The Department of Environmental Affairs appointed Tholoana


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deliver. Consulting to undertake services in support of core mandates that are supposed to be delivered on by municipalities. The services in question are those related to Waste Management and to assure that the municipalities that are challenged on rendering such services as: (1) Landfill Management, (2) Environmental Awareness Campaigners (3) Administrative Work and the delivery of important landfill site infrastructure such as (4) Site Offices are assisted. The Mohokare Local Municipality was one such a municipality selected to receive this support from the Department. The department through, Tholoana Consulting, rendered the following services within the time period appointed: 1. Appointed 11 youth in the

programme to do Waste Management Work

2. Constructed an Environmental Loo (Ventilated Pit Latrine: VIP) toilet – Rouxville

3. Constructed a Site Office for the Smithfield Landfill Site

4. Conducted Environmental Awareness Campaigns through the programme

On Tuesday the 6th of October 2015, Tholoana Consulting had a handover day at Smithfield of the Site Office and the Environmental Loo as part of the deliverables that the municipality was to receive.


P a g e 27


The general laborer should be among those who underwent Waste Management Training on the 17th of September 2015 at Rouxville.

Landfill Sites Improvement Action Plan

Adopted an improvement action plan to ensure that all areas where compliance lacks are improved through practical on the ground work

1. Guard use at Rouxville Complete with minor adjustments to be made (i.e. water & sanitation and electricity connection).

2. Landfill Sites attendant available for duty on a daily basis at Rouxville.

3. Guard House in Smithfield complete with minor adjustments to be made. I.e. fencing, water & sanitation and electricity connection).

4. Access Control improved at the Rouxville Landfill Site

Environmental Awareness and Education

To ensure that the National Waste Management Strategy’s Goal Number 4 Ensure that people are aware of the impact of waste on their health, well-being and the environment is implemented by ensuring that communities’ knowledge is improved on waste practices and the careful implementation of waste avoidance strategies

On the 22nd of September 2015 saw this training of 25 Employees took place at Rouxville. The training was presented within the context of ensuring that the outcomes as made mention of within the SDBIP, got achieved. Another campaign was hosted on the 17th of September 2015 at the Mofulatshepe Crèche, Smithfield under the theme: ‘Preventative Health Care at Early Childhood Development Centre’s and various presentations were done including among others: 1. The Importance of Preventative

Health Care in an ECD 2. The role of the Department of

Social Development in an ECD

3. Five Keys to Safer Food 4. Importance of Good Nutrition

as the Building Blocks to a Healthy toddler


P a g e 28


On the day, Mr. G. Fredrick’s was requested to provide all in attendance with a practical demonstration on Basic Fire Fighting. This brought many things to light and also assisted with the knowledge and capacity on how to deal with cases of fire at an ECD or even in a domestic emergency situation. Annexures to this report depict the happenings of the day and the success of the campaign. A total of 28 people attended the training.

Greening of Public Open Spaces & Municipal Amenities

To ensure that the carbon footprint is reduced by instituting green initiatives such as the planting of indigenous trees in the municipal jurisdiction

The Arbor Day Celebration The approach was to green deserving households in Roleleathunya Rouxville with a tree per yard and to ensure that we beautify the community hall in Phosoli street. The Arbor Day Celebrations saw the planting of a total of 18 trees at deserving households and 4 of these trees planted at an Early Childhood Development Centre.

Health Care Promotion To ensure that community is equipped with the practical knowledge on the importance of good healthy living principals. Some of the elements of primary health care are: health problem, promotion of food supply and nutrition, safe water and basic sanitation and etc...

Together with Department of Health, services were rendered to the staff of Early Childhood Development Centers in the Zastron Town on the 14th of September 2015. The purpose of the campaign was to highlight to staff of these institutions what preventative health care services should be undertaken by them to protect the health of both fellow colleagues, but most importantly that of the children who receive the ECD service from them. Children, the sick and the elderly are very prone to getting infections much easier due to their weak immune systems and thus special care needs to be taken


P a g e 29


of this susceptible group of individuals. In light of the importance of Handwashing and the scientific research available to proof its benefits, a practical demonstration of the hand wash procedure and a health and hygiene education session was conducted with 107 Grade R Learners of the Mofulatshepe Primary School. The campaign was hosted and presented on the 22nd of October 2015 and in the following manner, with the assistance of officials from the Free State Department of Health (Environmental Health & Health Promotion Practitioner): 1. The importance of hand

hygiene was done with both teachers and learners

2. The benefits of proper hand hygiene was iterated to teachers as these are the people who on a constant basis work with these children (even at times help them after the use of a toilet)

3. There was a practical demonstration of the ‘Six Steps to Proper Hand Hygiene’

4. Scientifically it has been proven the time spent to ensure that hands are properly washed is by singing ‘Happy Birthday’ twice and this will assure the hand washer that the hands are sufficiently washed to reduce the number of disease causing bacteria that may be on the hands and wrists. This was done with teachers and some of the learners at the school.


P a g e 30


The practical work of doing the hand wash demonstration was truly enjoyed by all learners as almost 50% of them participated. The campaign was a huge success and will be done at two more schools in the municipal service area of Mohokare.

Compliance with the Reviewed General Authorization Limits in terms of Section 39 of the National Water Act

Ensure that Wastewater Discharged from Municipal Wastewater Treatment Plants meet the General Authorization Limits in order to prevent gross environmental pollution of surface and groundwater Sources

Quarterly Monitoring of the Status of the Quality of Wastewater Effluent Discharged. Q1: Total Feacal Coliforms: General Limit: 1000/100ml Zastron: 26 Rouxville: 26 and Smithfield: 20 Compliance exists due to meeting the general authorization limits

3.2 REFUSE REMOVAL

Operations

The aforementioned division was and is still faced with a challenge regarding the effective removal of refuse.

Challenges

Our major challenges, particularly in Smithfield, that hampered the service delivery, is shortage of vehicles and frequent repairs and maintenance of the one`s we currently have, including the staff establishment/shortage. In Zastron and Rouxville, problems are mainly caused by unforeseen failure of vehicle/s and such, is treated or addressed as and when is happening.

In Zastron/Matlakeng A trailered tractor and a compactor truck are been utilised to remove the refuse in both Matlakeng and Zastron as per the towns programme. The services are effectively been provided except in cases where the reasons mentioned above, including the warm bodies interfere with our daily, weekly to monthly programmes. Rouxville/Roleleathunya and Smithfield/Mofulatshepe Apart from having challenges regarding shortage of staff, and constant repairs and maintenance of the BELL and Massey Fergusson tractors and tipper trailers in each town, the removal of refuse programme is and can be consistently adhered to.

Individual Towns report on machines/vehicles regarding the refuse removal is as below


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Name of Town Name of Tractors/Machines

available to remove refuse Other Vehicles / Machinery available

Rouxville/Roleleathunya BELL Tractor and a Tipper Trailer

Tractor and Tipper Trailer.

None

Zastron/Matlakeng Compactor Truck, Tractor and a Tipper Trailer.

None

Smithfield/Mofulatshepe BELL Tractor and a Tipper Trailer

Tractor and a Tipper Trailer.

None


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TOWN PLANNING

APPROVED APPLICATIONS RECEIVED FROM THE COMMUNITY

3.3 BUILDING PLANS REPORT

DATE INVOICE SURNAME ERF NR TOWN NEW PLAN

EXTENSION APPROVED

NOT APPROVED

12/01/15 15003774 Mrs. M. SEPHULA Erf 2061 Roleleathunya x x

26/01/2015

Paid before - resubmitted D. SELEKE ERF 1224

SOMIDO PARK X X

27/01/2015 16659 M DU PREEZ

CONSOLIDATION

ROUXVILLE X X

27/01/2015

16658 M DU PREEZ CONSOLIDATION

SMITHFIELD X X

30/01/2015

13011315 FNB ZASTRON 2/23 ZASTRON X ATM X

26/01/2015

Resubmitted

MP KATSE 2039 MATLAKENG

ZASTRON X X


EXTENSION approved not approved


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EXTENSION APPROVED

NOT APPROVED

16/02/2015

ROUXVILLE FARMRS UNION

ROUXVILLE

ROUXVILLE X

11/03/2015 1900525 K. GQUALAQUA

ZASTRON

X

X

ERF 345

03/03/2015

13011402 Mr. ELISHA

2227 PHOMOLONG

ZASTRON X X

04/03/2015 14005985 MR. DICHABA ERF 585

SMITHFIELD X X

19/05/2015 V.K. DUDA

869 SOMIDO PARK

SMITHFIELD

01/04/2015 Paid

OVK SMITHFIELLD 51 AND 52

SMITHFIELD X X

29/05/2015 19006232 Mr. MANANZI

90 MATLAKENG

ZASTRON X X


P a g e 34


EXTENSION APPROVED

NOT APPROVED



01/06/2015

Not paid yet MC THABATHA 351

ZASTRON X

16/07/2015 Paid R. MDALANA 73

ZASTRON X X



06/10/2015 18210 M. MAPAHA 702

ZASTRON X X


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EXTENSION APPROVED

NOT APPROVED

08/10/52015 19007769 N. Mnyameni 797

SOMIDO PARK X X



08/10/2015 199007775 MC RALOTHOLO 1117

GREENFIELDS X X

14/10/2015 Not paid

GOEDEMOED PRISON

GOEDEMOED PRISON

GOEDEMOED X X

A TROSKIE

30/10/2015

Not paid

The stables Farm Rouxville district

ROUXVILLE/

ALIWAL NORTH X X

03/11/20105 19008090

L.A. MOLETSANE 40

RIETPOORT X X

14/12/2015 18300 NC MPETHA 300

ZASTRON X


P a g e 36

3.3.2 ZONING AND REZONING, CONSOLIDATION, SUBDIVISION

ERF NUMBER OWNER REQUEST FOR: ACTION TAKEN

ER 1/111

ZASTRON

N.J.

MAJENGE

REZONING APPROVED BY

COUNCIL SUBJECT TO

BOND HOLDER’S

LETTER

ERF 1/207

ZASTRON

V. Tsele to sell

to Matlakeng

Congregation

of Jehovah’s

Witnesses

when

rezoning is

approved

REZONING APPROVED BY

COUNCIL

ERF 73 ZASTRON R.

MDALANA

REZONING NOT APPROVED DUE

TO HERITAGE ISSUES

AND NON APPROVAL

OF BUILDING PLAN

ERF 51-56

SMITHFIELD

OVK CONSOLIDATION APPROVEDF BY

COUNCIL

3.3.4 LIQUOR LICENSE APPLICATION

5 applications

1 approved and signed: La Riviera Rouxville

4 not approved/recommended and not signed by Municipal manager

Lwando’s lounge - Smithfield

Dreamer’s Restaurant - Smithfield

Taung Tavern - Matlakeng

Boiteko Liquor Store – Somido Park

3.3.5 Involvement in other projects and Business plans

MOOIFONTEIN

This farm was earmarked for future human settlement and the town planning division within the

Mohokare Municipality is in the process of development of this land with the assistance of several

stakeholders. The municipality with the assistance of Pula and Misa is busy with the development

for residential purposes. No studies have been done yet in terms of geo technical etc. The Depat.


P a g e 37

Of Human Settlements requested a letter of proof that bulk services will be available and the

capacity needs will be met. Such a letter was sent to the Department.

STRUCTURE PLAN

A structure plan was developed to give structure to the whole of Zastron and not only Mooifontein

per se. The proposal includes the area as a whole as to incorporate a holistic developmental

approach within a 20 – 30 year plan. The structure plan will also be incorporated into the new

Land Use Scheme as indicated in SPLUMA

TAXI RANK AND HAWKER STALLS

Erven 486 - 488 in Zastron has been identified for possible development as well as Erf 342 in

Rouxville. Smithfield is currently difficult to assess for a taxi rank, but a possible site will be

identified after more consultations. The processes for the development of the taxi rank in Zastron

has commenced

SPLUMA – Spatial Planning and Land Use Management Act no 16 of 2013

SPLUMA was officially enacted on 1 July 2015. Mohokare was one of the first

municipalities to be ready in all aspects of implementation

By law was gazetted

Municipal Tribunal is in place

Tariff structure was advertised

Within 4 years the Land Use Scheme as well as the Spatial Development Plan must be in

line with SPLUMA. The town planning department along with Spatial Planning, Cogta and

PULA has start working on the aforementioned documents.

Policies

Guest house policy – Generic Policy has been developed and will be tabled to Management and

then to Council for approval in March 2015. This was not done due to SPLUMA

Conservation Policy – A Draft has been developed and will be presented to Management and then

to Council in March 2015 this was not done due to SPLUMA

Policies in line with SPLUMA will be developed with the assistance of Cogta to be in line

with SPLUMA requirements. Cogta has a draft guideline policy in place that awaits

signing before implementation.

By-laws:

The following by laws assisting in town planning were adopted, in place and are implemented to

assist in the management of municipal land.

Standard Control of Street Vendors, Peddlers and Hawkers By-law


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Standard Advertising By-Law

Standard Informal Settlements By-law

Spatial planning and land use management by-law on municipal land use planning

3.3.6 Measures taken to improve performance and major efficiencies delivered.

Weekly reports, formats and tick sheets were introduced by the town planning division to organize

the work done on a daily basis and to ensure continuity as well as follow-ups to queries, problems

and requests in terms of town planning.

With the approval of the Spatial Development Plan (SDF) the town planning division has the tools

to focus on development and land use to the betterment of the local communities TH sdf will be

reviewed as to be in line with the new SPLUMA guidelines.

3.3.7 Attach trends, comments and variances

One of the biggest challenges experienced by the town planning division is the search for possible

areas to develop more residential sites as there is such a huge need experienced. The three new

developments stated underneath are in need of basic services and the Dept. Technical services has

reported in terms of MIG for funding to develop the necessary infrastructure.

Extension 10 Zastron with 725 erven: Development to fit the housing market in all spheres are

anticipated with the assistance of Pula

Extension 6 Rouxville 855 erven

Greenfields Smithfield with 467 erven: Township register not open due to legal problems with

one property. It was referred for legal intervention and advice.

There is a need for church sites. It may be necessary to develop a policy in terms of a definition

of what is a church, the needs of such an organization and the structure that must be put up on a

site zoned for institutional purposes. (Proof of requests available at Dept. Community Services)

Erf 3675 Refeng Khotso has been earmarked for the relocation of the Mooifontein Primary

School. It is 3.5 hectares and can be suited for a primary school.

Adherence to building regulations is a huge challenge as people or not clued up on what is expected

of them. Structures are built without building plans. Education is necessary to explain the

importance thereof.

Control of hawkers and informal businesses is proving to be a huge challenge. Erven are identified

for development of a site for hawkers with formalized structures to accommodate hawkers and

their businesses


P a g e 39

4. CORPORATE SERVICES

4.1 Human Resource Management

4.1.1 Employment Equity

In terms of complying with Employment Equity, the municipality has made significant strides in ensuring representation at the different levels within the organization, and has managed to compile an Employment Equity Plan during the 2010/2011 financial year. The table below shows the employment equity statistics for the municipality as at December 2015.

Table 1.1: Employment Equity Statistics

Employment Equity Category Actual Employee statistics from Jul-Dec 2015

% of staff employed in the highest levels of management that

are black ( African, Indian and coloured)

100%

% of staff employed in the highest levels of management that are

women

20%

% of staff employed in different categories and levels that are

people with disabilities

8%

% of staff employed in different categories and levels that are

black people ( African, Coloured and Indian

80.3%

The Municipality has gone through great strides to fill section (56) management positions. The following positions have been filled: - Municipal Manager, Chief Financial Officer, Director Technical Services, and Director Corporate Services. The position of Director Corporate Services is occupied by a female. The post of Director Community Services is still vacant.

4.1.2 Learnership and Internships

In this first six months there has been 2 learnerships piloted by the municipality

4.1.3 Skills Development

The following training was conducted for employees during the first six months of the financial year 2015/ 2016:


P a g e 40

Skills Matrix Management level

Gender Employees in post as at 31 December 2015

Number of skilled employees required and actual as at 31 December 2015

Learnerships Skills programmes & other short courses

Other forms of training Total

No.

Actual: End of

2014

Actual: End of

2015

31 Dec 2015

Actual: End of

2014

Actual: End of

2015

31 Dec 2015

Actual: End of

2014

Actual: End of

2015

31 Dec 2015

Actual: End of

2014

Actual: End of

2015

31 Dec 2015

MM and s57 Female 0 1 1 0 0 0 1 1

Male 1 1 0 0 0 0 1 1

Councillors, senior officials and managers

Female 0 8 4 7 0 0 3 7

Male 4 10 0 9 0 0 4 9

Technicians and associate professionals

Female 0 0 0 0 0 0 0 0

Male 0 3 0 3 0 0 6 3

Professionals Female 0 1 0 0 0 0 1 1

Male 0 0 0 3 0 0 0 1

Sub total Female 0 10 5 7 0 0 3 9

Male 5 14 0 15 0 0 5 13

Total 0 5 24 5 22 0 0 20 22

4.1.4 Workplace Labour Relations

Employers have a right, to maintain discipline in the workplace. This right is recognized in the LRA, which contains a Code of Good Practice: Dismissal setting out broad guidelines on dismissal for misconduct, incapacity and poor work performance, but which is relevant also to the maintenance of discipline. The function of discipline in the employment context is to ensure that individual employees contribute effectively and efficiently to the goals of the common enterprise. Production and the provision of services will clearly be impeded if employees are free to stay away from work when they pleas, to work at their own pace, to fight with their fellow employees, or to disobey their employers instructions. Hence it is the right and duty of employers to ensure that their employees adhere to reasonable standards of efficiency and conduct. The table below outlines all cases during the period under review;

JULY 2015

DEPARTMENT CHARGE/MATTER OUTCOME/VERDICT LOCATION

Finance Department Disrupting operations of employer

Dismissal Rouxville

Community Services Bringing the municipality into disrepute

Dismissal Zastron

Technical Services Dereliction of duty First written warning Zastron


P a g e 41






Community Services Corruption Suspension Smithfield

TOTAL 9 CASES

AUGUST 2015

DEPARTMENT CHARGES/MATTER OUTCOME/VERDICT LOCATION

Finance Department Failure to perform duty Suspension without pay for two days

Zastron

Technical Services Illegal possession of theft of employers property

Dismal : Reinstatement at the Zastron

TOTAL 02 CASES

SEPTEMBER 2015


NO CASES REPORTED

TOTAL 0 CASES

OCTOBER 2015


Finance Department Absenteeism Awaiting disciplinary hearing outcome

Zastron

TOTAL 01 CASE

NOVEMBER 2015

DEPARTMENT CHARGE/MATTER OUTCOME/VERDICT LOCATION

NO CASES REPORTED

TOTAL 0 CASES

DECEMBER 2015


Finance Department Negligence Corrective Counselling Zastron

Finance Department Negligence Verbal Warning Zastron

TOTAL 02 CASES

4.1.5 LEGAL SERVICES A municipality may compromise or compound any action, claim or proceedings, and may submit to arbitration any matter other than a matter involving a decision on its status, powers or duties or the validity of its actions or by-laws: Criminal cases

- None Civil cases

- None -

4.2 Personnel turnover


P a g e 42

Mohokare Local Municipality has for the mid –year period spent a total amount R 16 357 694.27 on employee related costs excluding all councillors; this amount was distributed across 289 employees.

The table below outlines how the employee costs were spent over the 2015/2016 mid-year period under review:

Months Number of employees

Employee related costs

Reasons for variance if any

July 276 2633997.47 1 RETIREMENT 1 DEATH August 276 2634566.52

September 274 2801061.87 1 RETIREMENT 1 ILL-HEALTH

October 273 2760601.37 1 RESIGNATION

November 273 2760601.37

December 274 2766865.67 1 RETIREMENT 1 APPOINTMENT

TOTAL 1646 16357694.27

4.3. LEAVE

4.3.1 Annual Leave

All employees, irrespective of status or remuneration are entitled to annual leave of at least 21 consecutive days per annual leave cycle of 12 months, commencing on employment or at the end of the pervious leave cycle. It is the policy of the municipality that authorization must be obtained prior to taking such leave.

4.3.2 Sick Leave

Employees are entitled to paid sick leave if they are absent for more than two days, or for more than one day if more than two absences occurred in a space of eight weeks, only if they produce a medical certificate issued by a medical practitioner or a person certified to diagnose and treat patients and who is registered with some statutory body.

The right to sick leave accrues only when the employee cannot work because of incapacity, which means inability to work owing to sickness or injury.

Sick leave for the period under review is outlined in the table below;

Most of this total amount was not budgeted for, which has to be corrected in the budget adjustment.


P a g e 43

Other Types of Leave (Family Responsibility, Study, Maternity, etc)

JUL AUG SEPT OCT NOV DEC

Annual leave 591 565.75 485 394.75 277 709.75

Sick leave 166 163 181 203 183 236

Family 21 15 13 18 2 8

Study leave 0 0 3 5 2 0

Special leave 0 0 0 0 5 0

Furthermore, these leave days are for the entire municipality based on received information

4.3.3 Overtime / Standby

The rate of overtime is one and a half times the normal wage (i.e. money payable not his whole package), unless the employee is subsequently granted 30 minutes off on full pay for each hour of overtime worked at normal rates, or 90 minutes off if the overtime was not paid at all. Time in lieu of pay for overtime must be taken within a month of the time worked, unless the employee agrees in writing to a longer period of up to 12 months.

As a general rule employers may not compel their employees to perform non-contractual voluntary overtime work. Nor are employees obliged to work overtime for periods exceeding those prescribed in the BCEA or a collective agreement.

Overtime may not exceed ten (15) hours in any week and three (3) hours in any day of the week.

Currently situation is that employees are committed in executing overtime for a long period without prior approval of the Accounting Officer and proper commitment of the budget.

Overtime and Standby is the operation of the whole year (365 days) and reports justifying such financial commitment and utilization of staff are not present.

Records of employees executing overtime and standby for the period under review:

ASSIGNMENT

NUMBER OF EMPLOYEES PER MONTH

TOTAL

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

OVERTIME (DAYS)

211 262 252 274 210 318 1527

COSTS IMPLICATIONS

151117.07 165859.13 156196.35 188570.09 142736.54 203880.14 1008359.32

JULY – DECEMBER 2015

4.4 Incapacity Due To Ill Health

Incapacity arising from ill-health or injury is recognized as a legitimate reason for terminating the

employment relationship, provided, as always, it is/ done fairly.


P a g e 44

The LRA Code (item 11) enjoins all persons including arbitrators and the court to consider number

of factors when determining if a dismissal arising from ill-health or injury is fair.

We had two cases of employees released due to ill-health


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5. Financial Health Overview

2.1 Introduction 2.2 Overview of financial performance 2.2.1 Operating income 2.2.2 Operating Expenditure 2.2.3 Personnel Expenses 2.2.4 Debtors Age analysis 2.2.5 Government Grants 2.3 General corrective measures

5.1 Introduction Legislative requirement in terms of MFMA section 72 and 54. In terms of section: 72(1), (2) and (3) of the Municipal Finance Management Act 56 of 2003, (MFMA), the budget and performance assessment report for the period ending 31 December 2015 must be compiled and tabled to council as per legislated time-frames. 5.2 Overview of Financial Performance The municipality’s bank account opened with a favorable balance of R 358 642.19 on 01 July 2015 and closed with a positive balance R 8 370 975.25 on 31 December 2015. The cashbook opened with a negative balance of R -358 642.19 on 01 July 2015 and closed with a favorable balance of R 8 527 964.87 on 31 December 2015. The following table summarizes the overall position on the capital and operating budgets in relation to the municipality’s SDBIP. The SDBIP is a detailed plan approved by the Mayor in terms of section 53(1) (c) (ii) of the MFMA for implementing the budget and which must indicate:

a) Projections for each month of: i. Revenue to be collected, by source; and ii. Operational and capital expenditure by vote;

b) Service delivery targets and performance indicators for each quarter; and c) Any other matters that may be prescribed, and includes any revisions of such plan by the

Mayor in terms of section 54(i)(c);

TABLE 1: OVERALL POSITION OF CAPITAL AND OPERATING BUDGETS

Annual Budget To Date 87 508 100R 153 349 259R 168 416 005R

Plan to Date 43 754 050R 76 674 630R 84 208 003R

Actual (31 December 2015) 37 167 113R 60 504 359R 45 710 139R

Variance to SDBIP 6 586 937R 16 170 271R 38 497 864R

Under/ (Over) perform 15% 21% 46%

TABLE1 above shows that the municipality’s Capital Expenditure is underperforming by 15%. Also the municipality is under-performing on its Operating Income by 21%. The municipality has spent 46% less of its operating budget as planned at this time. The following matters attributed to the underperformance on the planned budget to date:


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Capital expenditure The under-spending resulted due to labor unrest on one capital project (Upgrade of Mofulatshepe Sportsground) which has brought this project to a standstill for the last three months of the period under review. The 3km access road (Smithfield) project had to be re-advertised. It is currently out on tender and spending are to commence once an appointment has been made. Operating income Mohokare Local Municipality applied for a roll-over of unspent conditional grant funds for the financial year ended 30 June 2015. The roll-over request was denied and as a result, R7, 18 million was withheld from the first tranche of equitable share paid over during July 2015. If this amount is taken out of the calculation, underperformance on revenue drops to 11%. Another factor impacting the underperformance on revenue is the fact that the valuation roll was implemented late due to technical issues. 5.2.1. Operating Income The following table displays the operating income per revenue source from 01 July - 31 December 2015 (comparing revenue budget against revenue actually billed) TABLE 2.1: REVENUE BY SOURCE ABLE 2.1: REVENUE BY SOURCE

The

main reasons for the significant variances are:

1. Electricity – Electricity’s billing is done at Centlec, therefore the billed amount will be shown in our financial system as soon as the consolidated amounts are updated in the system.

2. Traffic Fines –The traffic fines for the first six months has not been accounted for fully. Only the traffic fines received has been accounted for. As a bulk of the traffic fines are issued over the festive season, these amounts will only be processed during the month of January.

3. Sundry Income – The budgeted figure includes expected cash flow incomes (Cash flow based) such as VAT receivable. Due to an ongoing audit from the South African Revenue Services, no amounts pertaining to VAT has been refunded to the municipality to date. These amounts will only be received once SARS has finalized the audit on their side.

The following table displays the operating income per revenue source from 01 July - 31 December 2015 (comparing revenue actually billed against revenue actually received)

Revenue Source Annual Budget

Budget Year to

Date

Actual Year to

Date

Variance Actual

vs Budget Year to

Date

%

Variance

Property Rates 11 627 153,00 5 813 576,50 5 016 732,38 796 844,12 14%

Electricity 32 420 098,00 16 210 049,00 - 16 210 049,00 100%

Water 10 889 673,00 5 444 836,50 7 028 989,01 -1 584 152,51 -29%

Sanitation 10 831 764,00 5 415 882,00 4 870 796,67 545 085,33 10%

Refuse Removal 6 750 403,00 3 375 201,50 3 106 506,81 268 694,69 8%

Traffic Fines 1 400 000,00 700 000,00 140 300,00 559 700,00 80%

Sundry Income Total 10 768 391,00 5 384 195,50 116 109,05 5 268 086,45 98%

Total 84 687 482,00 42 343 741,00 20 279 433,92 22 064 307,08 52%


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TABLE 2.2: REVENUE BY SOURCE

Revenue

Source Annual Budget

Budget Year to

Date

Actual Year to

Date (Actual

Billed)

Actual Year to

Date (Actual

Received)

Actual Billed vs

Actual

Received

%

Collecti

on Rate

Property Rates 11 627 153,00 5 813 576,50 5 016 732,38 1 618 506,02 3 398 226,36 32%

Electricity 32 420 098,00 16 210 049,00 - - 0%

Water 10 889 673,00 5 444 836,50 7 028 989,01 796 279,65 6 232 709,36 11%

Sanitation 10 831 764,00 5 415 882,00 4 870 796,67 1 381 278,31 3 489 518,36 28%

Refuse Removal 6 750 403,00 3 375 201,50 3 106 506,81 478 878,74 2 627 628,07 15%

Total 72 519 091,00 36 259 545,50 20 023 024,87 4 274 942,72 15748082,15

Apart from Electricity, the collection rate of other revenue sources is low. The main reasons for the significant variances are:

1. Electricity – Centlec’s consolidated amounts were not yet updated in the accounting system therefore electricity revenue shows an actual amount of Rnil.

2. Other services – The low collection rate on other services stems from the fact that Mohokare Local Municipality has a very large indigent base of users who are mainly grant dependent. Mohokare Local Municipality is however actively implementing the debt collection policy by handing over all large outstanding debtors to attorneys.

5.2.2 Operating Expenditure The following table shows the actual expenditure for each department against the budgeted expenditure for the first six months of the 2014/15 financial year.

TABLE 3: OPERATING EXPENDITURE PER DEPARTMENT

Department Annual Budget

Budget Year to

Date

Actual Year to

Date

Variance - Actual

vs. Budget Year

to Date Variance

Council 9 627 351.18R 4 813 675.59R 3 197 435.10R 1 616 240.49R 34%

Municipal Manager 9 678 933.04R 4 839 466.52R 4 261 165.00R 578 301.52R 12%

Dept. Corporate Services 6 601 219.75R 3 300 609.88R 3 293 424.97R 7 184.90R 0%

Dept. Financial Services 22 493 499.70R 11 246 749.85R 12 366 543.96R -1 119 794.11R -10%

Dept. Community Services 24 199 594.51R 12 099 797.26R 6 561 497.89R 5 538 299.37R 46%

Dept. Technical Services 95 815 407.48R 47 907 703.74R 16 029 401.36R 31 878 302.38R 67%

Total 168 416 005.66R 84 208 002.83R 45 709 468.28R 38 498 534.55R 45.72%

From the above table it can be seen that the Operating Expenditure of the municipality is underspent by 45.72%. As Mohokare Local Municipality are experiencing cash flow constraints, spending is monitored very closely and only crucial items which affects service delivery are procured. This is the main reason for the under-spending in directorates as currently reported in the above table. COMMENTS: Further attributes to the under-spending are discussed below Technical Services

The budgeted amount for depreciation amounts to R 13,168,116. Depreciation for the current financial year will be calculated at the end of the financial year.

The budgeted amount for the impairment of debtors amounts to R 4,176,433.63.


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Debt Impairment is calculated once in a year, currently debtors are taken to attorneys and when feedback is received from attorneys, decision will be taken on impairment and write-offs of said debtor balances.

Electricity division votes: Fuel & Oil amounting to R 750,000 and Repairs and Maintenance of Street lights and Meters amounting to R 1,500,000 shows actual spending of zero. As the electricity function is outsourced to Centlec SOC, all amounts included in the budget are based on the budget we receive from them to incorporate in our annual budget. The actual expenditure on these items are only incorporated into the trial balance of Mohokare Local Municipality once we receive the final trial balance from Centlec to consolidate into our year-end annual financial statements. Community Services

The budgeted amount for depreciation amounts to R 3,164,904. Depreciation for the current financial year will be calculated at the end of the financial year.

The budgeted amount for the impairment of debtors amounts to R 3,145,129. Debt Impairment is calculated once in a year, currently debtors are taken to attorneys and when feedback is received from attorneys, decision will be taken on impairment and write-offs of said debtor balances.2.2.3 5.2.3 Personnel Expenditure In terms of Section 66 of the MFMA, all expenditure that the municipality incurred on staff salaries, wages, allowances and benefits must be reported to the Council. The following table shows actual expenditure per department on staff salaries, allowances and other benefits.

TABLE 4: PERSONNEL EXPENDITURE PER DEPARTMENT

Department Annual Budget

Budget Year to

Date

Actual Year to

Date

Variance - Actual

vs. Budget Year

to Date Variance

Council 6 745 403.46 3 372 701.73 2 798 813.49 573 888.24 17%

Municipal Manager 7 294 224.64 3 647 112.32 3 899 098.56 (251 986.24) -7%

Dept. Corporate Services 2 911 892.53 1 455 946.27 1 866 992.43 (411 046.17) -28%

Dept. Financial Services 6 678 634.92 3 339 317.46 3 544 645.09 (205 327.63) -6%

Dept. Community Services 15 270 885.99 7 635 443.00 6 362 158.45 1 273 284.55 17%

Dept. Technical Services 21 753 246.37 10 876 623.19 10 855 873.17 20 750.02 0%

Total 60 654 287.91 30 327 143.96 29 327 581.19 999 562.77 3%

As can be seen from the table above, the employee related costs as reported are mainly in line with the budgeted amounts. FINANCIAL SERVICES The overspending of employee costs in the finance department can be attributed to incorrect budgeting. This figure will be investigated and corrected with the adjustment budget. COUNCIL Under-spending in respect of the Council budget relates to the fact that the newly gazetted upper-limits relating to Councilors was only received during the month of December 2015. This document will be taken to Council for approval in January 2016 and once approved it will be implemented retrospectively. COMMUNITY SERVICES Under-spending in respect of the Community Services budget can be attributed to the financial constraints which the municipality is facing. Due to this fact, upon the resignation/ passing away etc. of an employee, no new appointments were made to replace these employees. This comment is also supported by the overall decrease in number of employees of the Municipality.


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5.2.4 Debtors Age Analysis TABLE 5: DEBTORS AGE ANALYSIS Revenue Source 0 - 30 Days 31 -60 Days 61 - 90 Days 91 - 120 Days More than 120 Days Total

Property Rates 1 014 133.86R 967 962.81R 898 579.57R 820 883.44R 8 434 438.74R 12 135 998.42R

Water 1 483 512.75R 1 447 376.08R 1 927 427.51R 1 356 748.90R 36 860 874.06R 43 075 939.30R

Electricity -R -R -R -R -1 022.44R -1 022.44R

Sanitation 838 403.07R 786 062.38R 757 007.66R 687 765.05R 23 922 319.99R 26 991 558.15R

Refuse 530 940.11R 502 955.06R 495 675.92R 472 915.09R 18 028 732.99R 20 031 219.17R

Housing 75 700.80R 73 777.55R 69 643.92R 66 004.47R 1 671 641.23R 1 956 767.97R

Other 27 684.83R 26 705.07R 26 535.61R 26 365.44R 6 944 138.57 7 051 429.52R

Balance as at 31 December 20153 970 375.42R 3 804 838.95R 4 174 870.19R 3 430 682.39R 95 861 123.14R 111 241 890.09R

It is a known fact that there is a high unemployment rate within the jurisdiction of Mohokare Local Municipality. For this reason, the debtors remain outstanding for long periods hence debtors over 120 days account are over 80% of the debtor’s book as can be seen in TABLE 5. However the municipality intends to appoint a Debt Collector to assist with the implementation of the credit and debt collection policy of the Municipality. 5.2.5 Government Grants TABLE 6: GOVERNMENT GRANTS

Grants Gazetted Budget Roll Over

Amount

Received

Expenditure to

Date

Amount

Available

Under/Over

Performanc

e

National Government Grants

Equitable Share 54 870 000.00R 54 870 000.00R -R 33 968 000.00R 33 968 000.00R 0%

Municipal Infrastructure Grant 17 780 000.00R 17 780 000.00R 11 714 000.00R 4 158 369.00R 7 555 631.00R -65%

Municipal Systems Improvement Grant 930 000.00R 930 000.00R 930 000.00R 136 000.00R 794 000.00R -85%

Financia l Management Grant 1 800 000.00R 1 800 000.00R 1 800 000.00R 513 671.13R 1 286 328.87R -71%

Municipal Water Infrastructure Grant 15 000 000.00R 15 000 000.00R 11 250 000.00R 2 493 371.01R 8 756 628.99R -78%

Regional Bulk Infrastructure Grant 53 000 000.00R 53 000 000.00R 34 584 766.62R 28 079 283.67R 6 505 483R -19%

Integrated National Electrification Grant 474 000.00R 474 000.00R 474 000.00R -R 474 000R -100%

Expanded Public Works Programme 1 000 000.00R 1 000 000.00R 700 000.00R 414 174.00R 285 826R -41%

Total 144 854 000.00 144 854 000.00 - 95 420 766.62 69 762 868.81 25 657 897.81 -27%

Please note that Municipal Water Infrastructure Grant includes an amount of R 1 065 621.01 of water crisis that incurred late last year. We still await a formal letter from Technical Director to account for this expenditure in MWIG.


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5.3 CORRECTIVE MEASURES

5.3.1 General corrective measures

Capital projects and expenditure needs to be prioritized

We need to identify risk areas where possible additional costs may be incurred

Needs of the community needs to be identified for service delivery which could lead to additional capital costs

We need better planning of budgeting for the capital and operational expenditure of the municipality, and to limit wastages and identify unforeseen expenditure.

5.3.2 Adjustment budget A number of variances noted in this report are due to challenges regarding the municipality’s budgeting and operations. The municipality intends to submit an adjustment budget as per MFMA regulations to correct most of the variances noted above.


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6. LOCAL ECONOMIC DEVELOPMENT

6.1 INTRODUCTION

This report is intended to cover some activities and programs which the LED Unit was involved in in the past six months. The said activities among others included the following:

6.1.1 LED STRATEGY REVIEW

The LED Strategy was reviewed and adopted by council in 2014 and will be an economic development guiding document for the next five years. Important to note is the fact that the document was reviewed on a zero based budget thanks to the support of SALGA, Treasury, COGTA, MISA and local stakeholders.

6.1.2 XHARIEP RURAL DEVELOPMENT STRATEGY

Mohokare Local municipality’ stakeholders participated in the compilation of Xhariep District Rural Development Strategy. The program of information gathering was coordinated be KENA consultants whose services were procured by the department of Rural Development and Land Reform. Mohokare’ stakeholders’ inputs amongst others were on:

Agriculture support and agro-processing

Tourism

SMMEs development

Commercialization of Makhaleng border post

Upgrading of the S5 gravel road to Makhaleng

Skills training college for Mohokare

Manufacturing industries for Mohokare etc.

6.1.3 SMALL TOWNS REGENERATION

The Small Towns Regeneration Program is a joint project between national Treasury and the department of Rural Development and Land Reform, and is intended to bring and inject economic vibrancy and job creation into small towns. The town of Zastron was identified and nominated as an area where this program is going to be piloted and later be extended to Rouxville and Smithfield. A Steering Committee consisting of both local and provincial stakeholders has been established and its primary task will be to champion the economic regeneration of Zastron town.

6.1.4 SMMEs DEVELOPMENT PROGRAM

This is a joint program run by Department of Economic and Small Business Development Tourism and Environmental Affairs (DESTEA) and the Local Economic Development Unit of the municipality. The program is intended to give the necessary support to local cooperatives, hawkers and tuck shop owners. The program is made easier and less complicated by filling a questionnaire that requires information about the background of one’s business, whether is operating or still on concept stage as well as the kind of support the business is in need of. The process of filling forms will unfold in all the three towns and shall be followed by the screening of the forms as well as one-on-one interaction with applicants. The last and final stage will be that of linking different applicants with potential funders. So far the program has unfolded smoothly in Zastron and will be extended to Rouxville and Smithfield during the second week of January 2016.


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6.1.5 SMMEs DEVELOPMENT POLICY

This policy has been developed by the LED Unit with a sole purpose of protecting and prioritizing usage of local contractors and SMMEs when municipality procure goods and services and other related supply chain management activities. The LED Unit has observed over a period that local contractors remain inactive for a long period and in the process the grading of their companies remains low with limited prospects of improving or upgrading. Remaining with low grading disadvantages them when bids of higher grading are being advertised, hence the current challenge where none locally based companies being the ones that benefit mostly from municipal procurement processes. In worst case scenario tax clearance certificates are often left to expire because of this non-activism of their companies. This policy will be referred to the council sitting scheduled for December 2015 and after its adoption it will be enforced

6.1.6 DEVELOPMENT OF AGRICULTURE STRATEGY

Mohokare Local Municipality’s economy relies more on agriculture. Though this case may be, municipality never had an agriculture Strategy or Plan that talks to agriculture development and opportunities that can be beneficial to our emerging farmers. A strategy does not only talk to opportunities but it also reflects on the challenges while at the same time provides possible solution to identified challenges. It is within this background the LED has compiled and drafted agriculture Strategy for the institution as well as commonage farmers. This document shall be referred to council for adoption and once adopted shall be reviewed annually in line with municipal IDP and Local Economic Development Strategy.

6.1.7 TOURISM DEVELOPMENT

During this quarter the LED Unit proposed to council a different approach in as far as tourism development is concerned. The Unit proposed that council must advertise for business proposals on tourism with an intention of appointing a private entrepreneur with whom to partner and advance the tourism development agenda. The advert was made public on print media and on municipal website and was able to attract three interested bidders. All the three shall be afforded an opportunity to come and make presentation to management where upon the latter shall recommend to council who should be appointed. This whole processes shall be concluded before end January 2016

6.1.8 LAND ACQUISITION FOR PROJECTS

The municipality through its LED Unit has an obligation to create enabling environment for local economic development, job creation and poverty alleviation. In order to live up to this obligation the LED Unit presented to management and council the approval of the following applications for land to start projects.

Leratha Cooperative for poultry farming

Sakhisizwe Venture Cooperative for vegetable farming

Zondwazintshaba cooperative for sand stone

Mohloding Resource and Development for stone crusher plant In all these arrangement the land in question belongs to municipality and is leased out to individual cooperatives with an option of selling in an instance there is such an interest from the cooperatives. The LED Unit is further involved in securing support for the said coops.

6.1.9 LED SEDA PARTNERSHIP WITH LERATHA

Leratha is a locally based cooperative that has secured land from municipality to start poultry farming project. The LED Unit introduced the coop to SEDA and in turn the Agency agreed to adopt the cooperative and will be assisting it with the development of a business plan. When the


P a g e 53

business plan process is complete SEDA will also assist the coop to secure the necessary support.


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7. INFORMATION TECHNOLOGY

7.1 Introduction

This report is a mid-year report that details the activities and achievements made in the

IT Unit. The report has been summarized to exclude the deep technical details that

accompany all IT systems implementations.

7.2 Refresh of the Hardware and Software Infrastructure

7.2.1 Desktops

After the welcoming of the new interns for the financial year – 2015/2016, 08

Lenovo Think Center were procured, to provide them with tools to work.

The desktop came pre-installed with Windows 7 software and license. However, a

separate Microsoft Office 2013 software and license needs to be procured.

7.2.2 Wireless Network (i.e Wi-Fi) – moved forward in the next quarter due to

financial constraints

7.2.3 Disaster Recovery Server – moved forward due to financial constraints

7.2.4 Procurement of MS Office Software – moved forward due to financial

constraints

7.2.5 Server Upgrades – the procurement of upgrades to the server, to enable email-

resilience, have been delayed, due to the supplier

7.2.6 Diginet Line contract, to enable connection between Matlakeng office and the

Administration Office has been delayed

7.2.7 Satellite Internet has been moved forward due to financial constraints

7.3 IT Workshops

Using computers to facilitate training exercises may avoid the loss of productivity

that usually comes with new employees learning computer systems on the job.

Learning how to operate software you've never worked with before can be much

easier if you already have a solid foundation of computer experience on which to

build.

Four (4) computer training workshops were held, 2 workshops in a quarter, for

employees and councillors. (Attendance Registers attached)

7.4 Website Development

-A preliminary redesign of the intranet website has been done.

-In brief the intranet website will seek to achieve the following


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The following is the intranet mock-up, as also attached.


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ANNEXURE A

RISK MANAGEMENT


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Risk Management

Introduction

Risk Management is a systematic process to identify, evaluate and address risks on a continuous basis before such risks can impact negatively on the institution’s service delivery capacity.

MFMA, section 62 (1) (c) (i) states that the Accounting Officer of a municipality is responsible for the municipality, and must for this purpose take all reasonable steps to ensure that the municipality has and maintains effective, efficient and transparent systems off financial and risk management and internal control.

Treasury Regulations section 3.2.1 further prescribes that the Accounting Officer must ensure that a risk assessment is conducted regularly to identify emerging risks of the institution. A risk management strategy, which must include a fraud prevention plan, must be used to direct internal audit effort and priority, and to determine the skills required of managers and staff to improve controls and to manage these risks.

OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY

INHERENT RISK CURRENT CONTROLS

PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD

RATING EFFECTIVENESS

IMPACT

LIKELIHOOD

RATING

Effective and efficient performance management systems

Ineffective performance management systems

No Employee Performance Appraisal Systems (EPAS) .

Compliance/Regulatory

Critical 5 Common

5 25

High 1. The municipality is in the process of signing performance agreements and plans for all employees lower than section 56 employees. 2. SALGA has offered to assist the municipality in piloting PMS by ensuring that tools are developed and implemented to ensure effective performance systems.

Satisfactory 65%

Critical 5 Common 5 25

High


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

Quarterly monitoring and reporting on the effectiveness of the performance management systems

Inadequate monitoring and evaluation

No audit on the effectiveness of the performance systems. Audited performance reports not submitted to council and audit committee.

Compliance/Regulatory Critical 5

Common 5

25 High

Submission of quarterly reports to Internal Audit for Auditing. Performance reporting schedule circulated to all directors and follow up memos. Good

40%

Unlikely 2 Rare 1 2 Low

Annual Report to be in time.

Non-compliance

Oversight Committee of Council not reporting back within the 60 days as been prescribed by the MFMA.

Compliance/Regulatory Critical 5

Common 5

25 High

Oversight Committee in place. Good -

40%


Ensure 100% implementation of the ICT Strategy and Policy

None aproval of the strategy by Council

The strategy may not be implementable according to council or alinged to the Council vision Major 4 Rare 1 4 Low

Compilation of the draft strategy Minor 2 Unlikely 2 4

Minimum

Review and submit the Audit Charter to AC for approval by July 2015

Late submission of Charter and plan to AC for approval

1. Unavailability of the Audit Committee. 2.Lack of resources (staff) Compliance Critical 5

Moderate 3

15 High

Draft schedule for the sitting of Audit Committee

Unlikely 3 Rare 1 3

Minimum


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

1. Lack of monitoring due to limited staff in the unit. 2.Non Submission of audit action plan by management

1. Overshight by management. 1.Recommendations not being implemented Compliance Critical 5

Common 5

25 High

Audit Action plan has been developed by treasury

Critical 5 Common 5 25 High

Assist the municipality towards achievement of clean audit (through strengthening of internal controls)

Negative Audit Opinion

1. Non implementation of audit recommendations and/or agreed action plans 2. Non implementation of commitments made on the Quarterly Key Controls Dashboard Reports

Compliance Critical 5 Common

5 25

High 1. Audit Action plan. 2. Key Control Matrix 3.Dashboard

Critical 5 Common 5 25

High

Reliable and credible IDP

IDP not credible

1.No alignment between IDP and the budget. 2Perfromance targets are not realistic. 3.Ward committees not effective(Smithfield). Compliance Critical 5

Common 5

25 High

2. Key Control Matrix.

3 Moderate moderate 3 9

Medium


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

To recruite compentent personnel ( incuding section 54 & 57)

Inadequate funds to fill vacancies.

Indigent municipality(not all vacant positions can be filled Compliance Critical 5

Common 5

25 High

Recruitment policy. Existing organisational structure. Minor 2 Common 5

10

Medium

To ensure that annual levy to compensation fund is paid on time.

Annual Levy not paid to compensation fund.

injured employees cant claim from compensation fund. Compliance Critical 5

Common 5

25 High

Municipality pay direct to the doctor if the is acase that its reported Major 4 Common 5

20 High

100% compliance software

Municipality can be penalised for using software illegal Lack of

funds Litigation Critical

5 Common 5

25 High

Submitted request to the SCM for

procuring linced software Satisfactory

65% Major 4 Common 5

20 High

Unliced and unsupported software is vulnerable to viruses

100% Development of ICT infrastructure

Lack of fire suppression system

Lack of funds to upgrade

Security Concern Major 4

Common 5

20 High No control Weak

80% Major 4 Likely 4

16 High


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

100% Development of ICT infrastructure

Lack of Disaster Recovery Server could lead to a halt of municipality business process in case of disaster(e.g. Server crash)

Lack of funds to upgrade Backup Plan Critical 5

Likely 4

20 High None Weak


16 High

Expenditure on grants

Late / Delays of approval of contractual documents(water use licences & environmental impact assessment)

1.Late submissions of documents to the departments. 2. Late approval of documents from the departments. Compliance Major 4

Moderate 3

12

Medium

Submit on time & also constance follow ups with the relevant departments Satisfactory

65% Major 4 Moderate 3

12

Medium


Internal cash flows

Poor collection of revenue Compliance Critical 5

Common 5

25 High

Installation of new meters to enhence revenue collection Satisfactory


20 High


Late appointment of services providers

Delays on SCM process (evaluation processes)

Compliance &Natural Environment Major 4

Common 5

20 High

Procurement plan has been developed with time frames Good


20 High

Sustainable supply of good quality drinking water for Mohokare residents Water loss

Aging infrastructure mainly in towns Compliance Critical 5

Common 5

25 High

Repair & installation of water meters Satisfactory


20 High


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

Raw water source contamination

commonage camps (cattles) around raw water source

Natural Environment Major 4

Common 5

20 High

Removal of cattles near raw water source Good


12

Medium

Sewer spillages

Material resources Major 4

Common 5

20 High

Upgrading and maintenance of the waste water treatment plants; unblocking of sewer lines Good


12

Medium

Provision of access roads to previously disadvantaged areas by 30 June 2016 Road accidents

Lack of maintenance

Litigation & Natural resources Critical 5

Common 5

25 High

Patching of tar roads and gravelling of gravel roads 4.4 km per sites Satisfactory

65%

excessive flooding

Lack of maintenance

Service delivery Critical 5

Common 5

25 High

Maintaining of storm water channels &drains as well as inspection therefore Very good

20%

Dam Safety

Risk to human life due to excessive flooding

Lack of maintenance

Compliance / Regulatory Critical 5

Moderate 3

15 High

Internal maintenance Very good

20% Critical 5 Moderate 3

15 High

Provision of dignified sanitation and environmental friendly waste water services

Violation of human rights

Absence of proper toilet structures and systems


Common 5

25 High

Implementation of bucket eradication project & also using night soil wagon to collect buckets Very good


20 High


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

Environmental pollution including water resources (surface and ground)

Overloaded waste water treatment plant


Common 5

25 High

Implementation of bucket eradication project & also using night soil wagon to collect buckets Major 4 Common 5

20 High

Reviewed of Human Settlement Sector Plan by June 2016

None or Insufficient allocation of houses according to the needy communities

Shortage of land and funds

Service delivery

Critical 5 Common

5 25

High Updating of the housing allocation list

Very good

20%

Moderate

3 Common 5 25

High

Reviewed of Municipal Housing Rental Policy by June 2016

Ineffective management of Municipal rental stock

Non review of the municipality housing rental policy

Service delivery

Major 4 Unlikely

3 12

Medium

Monitoring of the municipal property & Quartely meetings with Tenants

Satisfactory

65%

Minor 2 Rare 1 2 Low

Reviewed Municipal sites allocation Policy by June 2016

Incorrect allocation of sites

Non review of the sites allocation policy

Service delivery

Major 4 Unlikely

3 12

Medium

Consultation with ward committees

Weak

80%

Minor 2 Rare 1 2 Low

Review of local disaster management plan by June 2016

Non Compliance to disaster management act and systems act

Non availabity of District Municipality & Province

Service delivery

Catastrophic

5 Unlikely

2 10

Medium

Disaster Management Coordinate from the district has been assigned to assist the municipality all disaster related incidents & Activities

Satisfactory

65%

Moderate

3 Almost Certain

5 15

High


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

Reviewed Integrated Waste Management Plan (local) by June 2016

Health hazards Ineffective collection of waste

Service delivery

Major 4

Almost certain

5 20

High Programmes in place for removal of waste refusal

Very good

40%

Major 4 likely 4 16

High

Developmentof environmental management plan by June 2016

Health hazards

Assistance from the district & the province to help us formulate the plan

Service delivery

Major 4

Almost certain

5 20

High

Programme in place for management of the environment

Weak

80%

Moderate

3 Likely 4 12

Medium

Reviewed Extended Public Works Policy by August 2015

Non allocation of EPWP funds by National Treasury

Non review of Policy

Service delivery

Major 4 Moderate

3 12

Medium

Annual review of the Policy by Management and then to Council.

Very good

40%

Insignificant

1 Rare 1 1 Low

Reviewed Commonage Management Policy by June 2016

Non consulation with farmers & stakeholders

Non adherence to scheduled meetings

Service delivery

Major 4 Rare 1 4 Low

Dates has been set aside for consultation with the Farming communittees

Satisfactory

65%

Major 4 Rare 1 4 Low

Reviewed Cemetery Management Policy by June 2016

Uncontrolled allocation and digging of graves

Non implementation of the policy

Service delivery

Major 4

Almost certain

5 20

High

There is a register for allocation of graves in each Town for record keeping.

Very good

40%

Major 4 Almost Certain

5 20

High


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

Annual Reviewed Supply chain management policy by June 2016

Reviewing of the policy without taking into considaration the latest treasury models guidelines & regulations

Officials not attending trainings Compliance Minor 2

Unlikely 2 4 Low

Proposed policy sent to Provincial treasury for review prio to being sent to coucil for aproval

Very good

40%

Insignificant 1 Rare 1 2 Low

Development of Procurement Management Plan by August 2015

Committees not setting as per procurement plan dates resulting in projects being late which will ultimately result in under expenditure on grants

Non-compliance and under expenditure Compliance Major 4

Likely 4

16 High No controls

Weak


16 High

Annual Financial Statements fully GRAP compliant

Disclaimer Audit Opinion

Not all GRAP Statements implemented. Compliance Major 4

Likely 4

16 high

Appointed Senior Manager with GRAP knowledge to compile AFS in house.

Very good

40% 2 3 6 Low

Timeous completion of Annual financial statements.

Late submission of Annual financial statements.

Late and inaccurate inputs from other departments. Reconciliations only been done at year-end. Compliance Major 4

Likely 4

16 High

Time schedule for completion of AFS.

Very good

40% Major 4 Unlikely 2 8 Low

Late submission of AFS to the internal

Late appointment of external service Compliance Major 4

Likely 4

16 High

Time schedule for completion of AFS.

Very good 40%



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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

auditor&AC for review.

provider to review the AFS

Commitment Register in place

Commitments can't be verified in the AFS.

Contracts of commitments can't be obtained. Compliance Critical 5

Likely 4

20 High Weak

80% Critical 5 Common 5

25 High

Unqualified Audit Report

Audit queries are not being resolved.

Internal controls not implemented. Compliance Critical 5

Likely 4

20 High

Verification of audit documentation and exceptions by finance and internal audit before submission to external auditors. Weak

80% Critical 5 Moderate 3

15 High

Realistic and accurate budget

Overspending and/or underspending of budget votes

HOD's not checking their votes before procurring Compliance Critical 5

Common 5

25 High

Budget reconcilation is forwaded to HOD'S on a monthly basis. Weak

80% Critical 5

Almost certain 5

25 High

All Payments to be checked by budget office before payments are made

Payments wrongfully allocated

Compilation of budget incorrectly as amounts on votes are not correct Compliance Critical 5

Common 5

25 High

The Budget Accountant must print a budget page and attached it to each requisition before it can be approved. Weak


12

Medium

Timeous submission of budget documents to National Treasury, Council

Non compliance with MFMA.

Negative impact on audit opinion due to non-compliance. Compliance Minor 2

Unlikely 2 4 Low

Time tables are in place. Very good

40% Minor 2 Unlikely 2 4 Low


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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

and community.

Complete payment vouchers

Incorrect or duplicate payments can occur.

Payments done on incomplete vouchers Compliance Critical 5

Common 5

25 High

Payment checklist in place. Very good


12

Medium

Payments must be made on valid tax invoice

VAT can be claimed incorrectly

TAX Invoice not received. Supplier not registered for VAT but charges VAT. Compliance Critical 5

Likely 4

20 High

1.SARS data base 2.Monthly Reconciliation. Very good


20

Medium

Creditors on the system

Completeness of creditors in the financial statements

Creditors on a hand system. No creditors reconciliations been done. Compliance Critical 5

Common 5

25 High None Weak

80% Critical 5

Almost certain 5

25 High

Correct salary payouts

Employees can be over or under paid. Ghost workers

Non-reviewing of salary payouts. Non-verification of all employees. Compliance Major 4

Moderate 3

12

Medium

Accountant very fies the payment Very good

40%


Payroll system must comply with SARS

Employees PAYE deductions are incorrect

System's calaculations are not up to date with SARS. Compliance Major 4

Moderate 3

12

Medium

Monthly reconciliation in place Very good

40%



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OBJECTIVE

RISK DESCRIPTION

ROOT CAUSE

RISK CATEGORY


PERCIEVED CONTROL

RESIDUAL RISK

IMPACT LIKELIHOOD


IMPACT

LIKELIHOOD

RATING

Implemented Credit Control Policy

Non implementation of the Credit Control Policy

Insufficient equipment water restictors & information from centlec. Compliance Critical 5

Common 5

25 High

To identify and maintain an updated indigent register in terms of the indigent policy

Incomplete an inaccurate indigent register.

Ineffective re-registration process. Inadequate verification of applications received. Compliance Major 4

Moderate 3

12

Medium

Re-registration of indigents annually. Registration of indigents on an ongoing basis. Inspections to ensure status of indigent.


Correct water readings

Negative consumers due to incorrect accounts.

Water meter readings not correctly read and/or captured. No follow up of exception reports. Compliance Critical 5

Common 5

25 High

Exception reports on all water readings captured and signed off. Major 4 Likely 4

20 High


P a g e 70

ANNEXURE B

SDBIP


P a g e 71

OFFICE OF THE MUNICIPAL MANAGER

HUMAN RESOURCE MANAGEMENT

KPA

No

Key

Perform

ance

Area

Municip

al

Strategi

c

Objecti

ve

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-year

target

Base

line

Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviatio

n

Quarter 2

December

2015

Actual

achieve

ment

Reason

for

deviation

Corrective

measures

to be taken

Good Governance and Administration

Good Governance in Mohokare

Annual review and implementation of the Human Resource Development Strategy by June 2016

HRD strategy developed and adopted by November 2015

Annual review and implementation of the Human Resource Development Strategy by June 2016

Final adopted HRD Strategy by November 2015

New KPI

Target not set for this quarter

- - Final adopted HRD Strategy by November 2015

Target achieved

- -

Actual Achievement

The Human Resource Management had 01 Mid-year target set for the 2015/2016, actual targets achieved is one (1), which resulted to hundred (100) %

achievement.


P a g e 72

PERFORMANCE MANAGEMENT SYSTEM

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviatio

n

Quarter 2

December

2015

Actual

achieve

ment

Reason

for

deviation

Corrective

measures

to be taken

Good Governance and Administration

Good Governance in Mohokare

100% monitoring and evaluation of the Municipality’s performance

Submission of the Annual report and the annual performance report for 2014/15 to the Auditor General by 31 August 2015

Submitted Annual report, annual performance report by 31st of August

2015

Submit Annual report, annual performance report on 31st

of August 2015

Annual report, annual performance report submitted on the 31 August 2014

Submit Annual report, annual performance report on 31st

of August 2015

Target achieved

- Target not set for this quarter

- - -

Actual Achievement

The Performance Management Unit had 01 Mid-year target set for the 2015/2016, actual targets achieved is one (1), which resulted to hundred (100) %

achievement


P a g e 73

LOCAL ECONOMIC DEVELOPMENT

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

perfor

manc

e

indica

tor(s)

Annual

Target

Mid-year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviatio

n

Quarter 2

December

2015

Actual

achieve

ment

Reason

for

deviation

Corrective

measures

to be taken

Local Economic Development

Local Economic Development

Enhance ment of Municipality’s local economy

SO

2 3 Cooperatives assisted for funding by June 2016

3 cooperatives assisted

Business plans developed for the 3 co-operatives

4 co-operatives assisted in 2013/2014


- - Business plans developed for the 3 co-operatives

Target Not achieved

Intervention by DESTEA to give support to cooperatives in the three units of Mohokare

DESTEA approach is intended to cut red tape and fast track intervention and support

DESTEA’s simplified approach in giving support to local cooperatives.

New dates for Rouxville and Smithfield still to be submitted to the department

Actual Achievement

The Local Economic Development Unit had 01 Mid-year target set for the 2015/2016, actual targets achieved is Zero (0), which resulted to zero (0) % achievement

Recommendation

The LED Unit should re-set the targets to ensure that during the process adjustment of SDBIP realistic targets are set and budgeted and are within the Municipality’s control


P a g e 74

RISK MANAGEMENT

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

perform

ance

indicat

or(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviatio

n

Quarter 2

December

2015

Actual

achieve

ment

Reason

for

deviation

Corrective

measures

to be taken

Good

govern

ance

and

Adminis

tration

Good

governan

ce in

Mohokar

e

To evaluate the effectiveness of Risk management, control and governance processes and develop actions to address key risks identified by June 2016

Reviewed Enterprise Risk Management Policies (Risk Management Strategy and Framework, Fraud and Anticorruption Strategy, Risk Management Committee Charter) by May 2016

Reviewed Enterprise Risk Management Policies

Submission of draft Policies to RMC AC & Council

Reviewed Enterprise Risk Management Policies

Submission of draft Policies to RMC AC & Council

Target not Achieved

Policy and strategy were Submitted only to RMC & AC

The policies have to first be submitted to RMC & AC before they can be submitted to Council


- - -


P a g e 75

Actual Achievement

The Risk Management Unit had 01 Mid-year target set for the 2015/2016, actual targets achieved is Zero (0), which resulted to zero (0) % achievement

Recommendation

The Risk management unit must adhere to the annual Council meeting schedule and ensure that documents are forwarded to the attention Risk management and Audit committees prior

to the sitting of Council.


P a g e 76

INTEGRATED DEVELOPMENT PLANNING

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Correcti

ve

measur

es to be

taken

Good governance & Administration

Good governance in Mohokare

To implement a ranking and rating system for all new capital projects to support the strategic objectives and priorities of Council and Community

Reviewed and approved IDP by May 2016

Reviewed and approved IDP

Approved IDP process plan by August 2015 and establishment of Rep forum

Approved 2014/2015 IDP

Approved IDP Process plan by August 2015

Achieved

- Establishment of Rep Forum

Achieved - -

Actual achievement

The Integrated Development Planning had 02 Mid-year target set for the 2015/2016, actual targets achieved is two (02), which resulted to hundred (100) % achievement.

INTERNAL AUDIT


P a g e 77

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Correcti

ve

measur

es to be

taken

Maintaining and improving the Municipal Audit Opinion


Reviewed and adopted Audit Charter by AC

Submit the Audit Charter to AC by July 2015

Adopted 2014/2015 Audit Charter


Target Achieved


- - -

Review and submit the Audit Action Plan to AC for approval by July 2015

Reviewed and adopted Audit Action Plan

Submit the Audit Action Plan to AC by July 2015

Adopted 2014/2015 Audit Action Plan


Achieved - Target not set for this quarter

- - -

Designing of Audit Action Plan as derived from AGSA

Approved

Audit Action Plan by

AC

Derived and approved Audit Action Plan



- - Derived and approved Audit Action Plan

Target not achieved

The Auditor General has not yet issue the Management Letter to enable

The Audit Action Plan will be drafted as soon as the


P a g e 78

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Correcti

ve

measur

es to be

taken







Target Achieved


- - -







- - -

findings raised by December 2015

us to draft an Audit Action Plan on the findings raised.

Management Letter is received by the Municipality and subsequ


P a g e 79

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Correcti

ve

measur

es to be

taken







Target Achieved


- - -







- - -

ently submitted to the Audit Committee for approval.


P a g e 80

Achievement

The Internal Audit unit had three 03 Mid-year targets set for the 2015/2016, actual targets achieved is two (02), which resulted to sixty-seven (67) % achievement.

Recommendation

The derived audit findings from Auditor General should be dealt in an operational SDBIP or be reported monthly in the Municipal management meeting in order to allow

the management to deliberate and engage on resolved and unresolved findings. The target should be considered during the process of reviewing/adjusting of the SDBIP.


P a g e 81

TECHNICAL SERVICES

KPA

No

Key

Perfor

manc

e

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Correcti

ve

measur

es to be

taken

Basic

Servic

e

delive

ry

and

infrast

ructur

e

devel

opme

nt

Deliver

sustainable

services

that are on

or above

RDP level

Provision

of project

manage

ment

services

to

Municipal

ity

2015/201

6

To achieve

100%

expenditure

on RBIG

(Regional

Bulk

Infrastruct

ure Grant)

by 31

March

2016

100%

expendi

ture

72 %

expendi

ture

91.5% 44 %

expenditu

re

Not achieved

32% expenditure

The upgrading of the Rouxville WTW is on hold due to a dispute

72 %

expenditure

72% Achieved

- -

To achieve

100%

expenditure

on MWIG

(Municipal

Water

Infrastruct

ure Grant)

by 30 June

2016

100%

expendi

ture

44 %

expendi

ture

54.5% 30 %

expenditu

re

Not achieved

8% expenditure

Delay in appointment of service providers

44 %

expenditure

23% Not Achieved

None adherence to procurement plan by supply chain. A professional service provider was appointed in October 2015

Adherence to the procurement plan


P a g e 82

KPA

No

Key

Perfor

manc

e

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Correcti

ve

measur

es to be

taken

100%

expenditure

of

Municipal

Infrastruct

ure Grant

by 30 June

2016

100%

expendi

ture

44 %

expendi

ture

102% 30 %

expenditu

re

Not achieved

11% expenditure

Project on hold

44 %

expenditure

23% Not Achieved

Delayed by the Contractor on the sports ground

Smithfield 5.6 km access project was stopped by high court

A series of meeting were held with the contractor

The tender has been re-advertised and it closes on the 05th February 2016

Provision of Arial lighting and electrification of household by 30 June 2016

100% expenditure of INEP (Integrated National Electrification Program) by 31 March 2016

Electrification of 74 households

Letter of commitment with CNTLEC and connection of 24 households

- Letter of commitment with CENTLEC

Achieved

Connection

of 24

households

Achieved

28 house connections

- -


P a g e 83

Actual Achievement

The Technical Services department had four (4) Mid-year targets set for 2015/2016, actual target achieved is two (2), which resulted to fifty (50) % achievement

Recommendation

The municipality should enter into service level agreement with the contractor on completion of projects which will outline penalties for non-compliance regarding

completion of the project.


P a g e 84

COMMUNITY SERVICES

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason

for

deviation

Quarter 2

Decemb

er 2015

Actual

achieveme

nt

Reason

for

deviation

Corrective

measures

to be taken

Basic

Service

delivery

and

infrastru

cture

Develo

pment

Keep

Mohokar

e Safe

and

Clean

Manage

ment of

extended

public

works



Submission of draft EPWP policy to sec 79 Committee

EPWP in place

Submission of draft EPWP policy to sec 79 Committee

Not Achieved

Draft policy have been submitted to Council for adoption by August 2015

The policy framework for policy development was not received before the sitting of the sec 79 committee


- - -



Submission of draft policy to Council for adoption by August 2015

EPWP in place

Submission of draft policy to Council for adoption by August 2015

Target achieved


- - -


P a g e 85

Actual achievement

Community services department had two (2) mid- year targets set for 2015/2016, actual target achieved is one (01), which resulted to fifty (50%) achievement.

Recommendation

The development of consistent meeting schedule for committee sittings and adherence thereon, will assist to ensure that policy documents are presented in the council committees before

they can be recommended to council for adoption.


P a g e 86

FINANCIAL SERVICES

KPA

No

Key

Performanc

e Area

Municip

al

Strategi

c

Objecti

ve

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieveme

nt

Reason for

deviation

Quarter 2

Decemb

er 2015

Actual

achiev

ement

Reason

for

deviation

Corrective

measures

to be taken

Financial

managem

ent

Financi

al

Viability

Impleme

ntation of

financial

manage

ment

plan

SO3 Development of Procurement Management Plan by August 2015

Developed and adopted Procurement Management Plan by August 2015

Submit developed Plan to Council by August 2015 for adoption

New KPI Submit developed Plan to Council by August 2015 for adoption

Target not Achieved

Additional 4 tenders that were not in the initial procurement plan


- - -

Submission of compliant Financial Statements to AG, National and Provincial Treasury by 31st August 2015

Submitted AFS by 31st

August 2015

Submission of compliant Financial Statements to AG and National and Provincial Treasury by 31st August 2015

Submitted AFS by Aug 2014

Submission of compliant Financial Statements to AG and National and Provincial Treasury by 31st August 2015

Target Achieved


- - -

Resolved previous audit findings

100 resolved previous audit findings

50% of audit queries resolved

133 resolved previous audit findings

25 % of audit queries resolved

Target Achieved

34 queries were

- 25 % of audit queries resolved

- - Supporting documentation of resolved quiries


P a g e 87

resolved

Actual achievement

The Finance department had three (03) Mid-year targets set for 2015/2016, actual target achieved is three (03), which resulted to hundred (100%) achievement.


P a g e 88

CORPORATE SERVICES

KPA

No

Key

Perform

ance

Area

Municipal

Strategic

Objective

(SOs)

Municipal

Strategic

Objective

(Departm

ental)

SO

No

Key

performanc

e

indicator(s)

Annual

Target

Mid-

year

target

Baseline Quarter 1

Septemb

er 2015

Actual

Achieve

ment

Reason

for

deviation

Quarter 2

December

2015

Actual

achieveme

nt

Reason

for

deviation

Corrective

measures to

be taken

Good

govern

ance

and

adminis

tration

Good

governan

ce in

Mohokar

e

Coordination of ordinary council meetings

4 Ordinary Council meeting

Distribution of notices and agendas by Nov 15

4 distributed notices and agenda for 4 ordinary meetings

Distribution of notices and agendas by 26 Aug 15

Target Achieved

The Council agenda can be physically inspected in registry

- Distribution of notices and agendas by Nov 15

Target Achieved

- -

Actual Achievement

The Corporate Services had one (01) Mid-year targets set for 2015/2016, actual target achieved is one (1), which resulted to hundred (100%) achievement


P a g e 89

MUNICIPAL MANAGER’S QUALITY CERTIFICATION

I ………………………………………………………The Municipal Manager of Mohokare Local Municipality, hereby certify that :

The Section 72 report ending 31 December 2015 on implementation of the IDP, Budget and the SDBIP and state of affairs of the Municipality for the year 2015/16 in

accordance with the Municipal Finance Management Act and Regulations made under the Act.

Print Name: Thabo Christian Panyani

Municipal Manager of Mohokare Local Municipality: MLM 163

Signature..................................................


P a g e 90

MID-YEAR BUDGET AND PERFORMANCE REPORT 2015/2016

Documents

Transcript of MID-YEAR BUDGET AND PERFORMANCE REPORT 2015/2016