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ANNUAL REPORT 2016/2017

DANNHAUSER LOCAL MUNICIPALITY Page | 0



Contents LIST OF TABLES ............................................................................................................................................... 7 LIST OF FIGURES .............................................................................................................................................. 8 LIST OF MAPS.................................................................................................................................................... 8 LIST OF IMAGES ............................................................................................................................................... 9 LIST OF ACRONYMS ...................................................................................................................................... 10

CHAPTER 1: INTRODUCTION .................................................................................................... 11

MAYOR FOREWORD.................................................................................................................. 11

MUNICIPAL MANAGER FORWORD ........................................................................................... 12

THE ANNUAL REPORT PROCESS .............................................................................................................. 15 THE MUNICIPAL FINANCE MANAGEMENT ACT, NO 56 OF 2003: SECTION 121: (ANNUAL

REPORT OUTLINES) ..................................................................................................................................... 15

MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ............................ 17

1.1 VISION ........................................................................................................................................................ 17 1.2 MISSION ..................................................................................................................................................... 17 1.3 OVERVIEW OF DANNHAUSER MUNICIPALITY ............................................................................. 17 1.4 WARDS AND TRADITIONAL AUTHORITY ...................................................................................... 18 1.5 DEMOGRAPHIC PROFILE ..................................................................................................................... 18 1.6 POPULATION GROWTH / DECLINE .................................................................................................. 19 1.7 MULTIPLE DEPRIVATIONS INDEX .................................................................................................... 20 1.8 EMPLOYMENT / UNEMPLOYMENT RATE ....................................................................................... 20 1.9 HOUSEHOLD INCOME ........................................................................................................................... 21 1.10 GENERAL PERFORMANCE OF ECONOMIC SECTOR CONTRIBUTION - DANNHAUSER ... 21 1.11 CURRENT HOSUEHOLD STATUS ..................................................................................................... 22 1.11.1 FORMAL DWELLINGS ...................................................................................................................... 22 1.11.2 HOUSEHOLD ACCESS TO ELECTRICTY ...................................................................................... 23 1.11.3 ELECTRICITY FOR COOKING, HEATING AND LIGHTING...................................................... 23 1.11.4 HOUSEHOLD ACCESS TO WATER ................................................................................................ 24 1.11.5 HOUSEHOLD ACCESS TO SANITATION ...................................................................................... 25 1.11.6 HOUSEHOLD ACCESS TO REFUSE REMOVAL ........................................................................... 25 1.11.7 SOLID WASTE COLLECTION SCHEDULE.................................................................................... 26 1.12 EXPENDITURE FOR RURAL & TARRED ROADS .......................................................................... 26 1.13 COMMUNITY FACILITIES................................................................................................................... 27 1.14 HEALTH FACILITIES ........................................................................................................................... 27

CHAPTER 2: GOVERNANCE ..................................................................................................... 28

2.1 INTRODUCTION TO GOVERNANCE ................................................................................................... 28 2.2 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ..................................... 28 2.2.1 POLITICAL GOVERNANCE INTRODUCTION TO POLITICAL GOVERNANCE ..................... 28 DANNHAUSER LM COUNCILLORS .................................................................................................................. 29 DANNHAUSER LM EXECUTIVE COMMITTEE ................................................................................................ 29 2.3 COMPONENT B: GOVERNANCE OVERVIEW & COMMITTEES ................................................... 30 2.3.1 COUNCIL COMPOSITION ................................................................................................................... 30 2.3.2 GOVERNANCE COMMITTEES .......................................................................................................... 31 2.3.3 COMMITTEES TO ASSIST THE EXECUTIVE COMMITTEE ....................................................... 33 2.3.3.1 THE CORPORATE SERVICES PORTFOLIO COMMITTEE ........................................................................................... 33 2.3.3.2 THE FINANCIAL SERVICES PORTFOLIO COMMITTEE .............................................................................................. 33 2.3.3.3 THE ENGINEERING SERVICES PORTFOLIO COMMITTEE ........................................................................................ 33



2.3.3.4 THE COMMUNITY SERVICES PORTFOLIO COMMITTEE .......................................................................................... 33 2.3.3.5 THE PLANNING & LOCAL ECONOMIC DEVELOPMENT PORTFOLIO COMMITTEE ................................................. 33 2.4 PERFORMANCE & FINANCE AUDIT COMMITTEE ......................................................................... 35 2.5 POLITICAL DECISION-MAKING .......................................................................................................... 35 2.6 ADMINISTRATIVE GOVERNANCE ..................................................................................................... 36 INTRODUCTION TO ADMINISTRATIVE GOVERNANCE ............................................................................... 36 2.7 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ........................................ 36 2.7.1 OVERVIEW ............................................................................................................................................ 36 2.8 PROMOTION OF PUBLIC PARTICIPATION MECHANISMS ......................................................... 37 2.8.1 PUBLIC MEETINGS .............................................................................................................................. 37 2.8.1.1 COMMUNICATION, PARTICIPATION AND FORUMS ............................................................. 37 2.9 COMPONENT D: CORPORATE GOVERNANCE ................................................................................ 38 2.9.1 OVERVIEW OF CORPORATE GOVERNANCE ............................................................................... 38 2.9.2 FRAUD AND ANTI-CORRUPTION STRATEGY ............................................................................. 38 2.9.3 RISK MANAGEMENT COMMITTEE - MUNICIPALITY COMPLIANCE .................................... 38 2.9.4 INTERNAL AUDIT UNIT – MUNICIPALITY COMPLIANCE ....................................................... 39 2.9.5 AUDIT COMMITTEE – MUNICIPALITY COMPLIANCE .............................................................. 39 2.10 SUPPLY CHAIN MANAGEMENT ........................................................................................................ 40 2.10.1 OVERVIEW OF SUPPLY CHAIN MANAGEMENT (SCM) .......................................................... 40 2.11 RISK MANAGEMENT ........................................................................................................................... 40 2.11.1 RISK MANAGEMENT & PERFORMANCE MANAGEMENT ..................................................................... 40 2.11.2 MONITORING AND CONTRACT ADMINISTRATION .............................................................................. 40 2.12 BRIEF OVERVIEW OF THE DEVELOPMENT OF POLICIES DURING THE 2016/2017

FINANCIAL YEAR ........................................................................................................................................... 41 2.13 MUNICIPAL BY-LAW(S) ..................................................................................................................... 42 2.14 PUBLIC SAFETY – LAW ENFORCEMENT ....................................................................................... 42

CHAPTER 3 .............................................................................................................................. 43

SERVICE DELIVERY PERFORMANCE ....................................................................................... 43

FUNCTIONAL AREA SDBIP PER DELIVERY COMPONENTS ...................................................... 43

3.1 SERVICE DELIVERY ................................................................................................................................ 43 3.1.1 INDIGENT POLICY/SUPPORT (INCLUDING FREE BASIC SERVICES) .................................. 43 3.2 INTRODUCTION ANNUAL PERFORMANCE REPORT ................................................................... 44 3.3 HIGH LEVEL PERFORMANCE OF THE MUNICIPALITY FOR THE 2016/2017 FINANCIAL

YEAR .................................................................................................................................................................. 45 3.3.1 ASSESSMENT METHODOLOGY ....................................................................................................... 45 3.3.2 KEY PERFORMANCE INDICATORS COMPARISON 2015/2016 VS 2016/2017 ............... 45 3.4 BASIC SERVICE DELIVERY KEY PERFORMANCE INDICATORS – DANNHAUSER ................ 46 3.5 CAPITAL PROJECTS 2016/2017 – DANNHAUSER LOCAL MUNICIPALITY ........................... 46 3.6 GRAPHICAL REPRESENTATION OF ACHIEVEMENT, ALMOST ACHIEVED AND NON-ACHIEVEMENT – CAPITAL PROJECTS ..................................................................................................... 47 3.7 OPEFRATIONAL PROJECTS 2016/2017 – DANNHAUSER LOCAL MUNICIPALITY ............ 48 3.8 MEASURES UNDERTAKEN AS PER S46 OF THE MUNICIPAL SYSTEMS ACT TO IMPROVE

PERFORMANCE .............................................................................................................................................. 49 MEASURES UNDERTAKEN TO IMPROVE PERFORMANCE IN THE 2016/2017 FINANCIAL

YEAR .................................................................................................................................................................. 50 SECTION 1: FUNCTIONAL AREA SDBIP REPORTING PER BUSINESS UNIT ................................. 51 3.9 COMPONENT A: INFRASTRUCTURE SERVICES ............................................................................. 51 3.9.1 ACHIEVEMENTS WATER .................................................................................................................. 51 3.9.2 WATER QUALITY & COMPLIANCE DANNHAUSER – 2016/2017 ......................................... 52 3.9.2.1 WATER QUALITY PERFORMANCE – WWTP – 2016/2017 ...................................................................... 52 3.9.2.2 POTABLE WATER QUALITY – 2016/2017 .................................................................................................... 52



3.9.2.3 SANS 241:2011 PERFORMANCE INDICATORS (AMAJUBA WSA) – DANNHAUSER LOCAL

MUNICIPALITY .................................................................................................................................................................. 52 3.9.2.4 PLANNED WATER SUPPLY ACTIVITIES TO DANNHAUSER HOUSEHOLDS – AMAJUBA DISTRICT WATER SUPPLY

MASTER PLAN IMPLEMENTATION – 2016/2017 .............................................................................................................. 53 3.9.2.5 PROPOSED WATER INFRASTRUCTURE DEVELOPMENT IMPLEMENTED – DANNHAUSER LOCAL

MUNICIPALITY (AMAJUBA DISTRICT WATER SERVICE PLAN) ............................................................................. 54 3.9.2.6 SANITATION SERVICES ..................................................................................................................................... 54 3.9.2.7 SOLID WASTE MANAGEMENT ....................................................................................................................... 54 3.9.2.7.1 ACHIEVEMENTS 2016/2017 – SOLID WASTE MANAGEMENT .......................................................... 54 3.9.2.7.2 SOLID WASTE MANAGEMENT EQUIPMENT ...................................................................................................... 54 3.9.3 GRASS CUTTING .................................................................................................................................. 55 3.9.3.1 GRASS CUTTING SCHEDULE ............................................................................................................................ 55 3.9.3.2 NUMBER OF TIMES GRASS CUTTING OCCURS IN A MONTH ................................................................ 55 3.9.3.3 EQUIPMENT USED FOR GRASS CUTTING ................................................................................................... 55 3.9.4 ELECTRICITY ........................................................................................................................................ 56 3.9.4.1 CHALLENGES ....................................................................................................................................................... 56 3.9.4.2 PRIMARY NETWORK ......................................................................................................................................... 56 3.9.4.3 SECONDARY MAINTENANCE .......................................................................................................................... 57 3.9.4.4 ELECTRICITY FOR COOKING, HEATING AND LIGHTING – 2016/2017 ................................................. 57 3.9.5 ROADS .................................................................................................................................................... 57 3.9.5.1 INTRODUCTION TO ROAD TRANSPORT ...................................................................................................... 57 3.9.5.2 INTRODUCTION TO ROADS ............................................................................................................................ 58 3.9.5.3 CHALLENGES ROADS - 2016/2017 ................................................................................................................ 58 3.9.5.4 COUNTERMEASURES TO ADDRESS CHALLENGES .................................................................................... 58 3.9.6 TRANSPORTATION PLANNING ...................................................................................................... 59 3.9.6.1 INTRODUCTION TO TRANSPORTATION PLANNING ................................................................................ 59 3.9.6.2 ROAD TRANSPORTATION PLANNING OBJECTIVES .................................................................................. 59 3.9.6.3 STAKEHOLDERS .................................................................................................................................................. 59 3.9.6.4 STORM WATER ................................................................................................................................................... 59 3.9.6.5 FLEET MANAGEMENT .................................................................................................................... 59 3.9.6.5.1 INTRODUCTION TO FLEET MANAGEMENT ............................................................................................ 59 3.9.6.5.2 FLEET MANAGEMENT STRATEGIC OBJECTIVES: ................................................................................... 60 3.9.6.6 WASTE MANAGEMENT - LANDFILL SITE ................................................................................. 60 3.9.6.6.1 WASTE MANAGEMENT (DANNHAUSER LANDFILL SITE) .................................................................... 60 3.10 COMPONENT B: ECONOMIC DEVELOPMENT .............................................................................. 60 3.10.1 PLANNING ........................................................................................................................................... 61 3.10.1.1 INTRODUCTION TO PLANNING AND DEVELOPMENT .......................................................................... 61 3.10.2 LOCAL ECONOMIC DEVELOPMENT ............................................................................................ 61 3.10.2.1 INTRODUCTION TO LOCAL ECONOMIC DEVELOPMENT ..................................................................... 61 3.10.2.2 KEY CHALLENGES 2016/17 ........................................................................................................................... 61 3.10.2.3 KEY INTERVENTIONS 2016/17 ..................................................................................................................... 61 3.10.2.4 CATALYTIC PROJECTS IMPLEMENTED....................................................................................................... 62 3.10.2.5 EMPLOYMENT / UNEMPLOYMENT RATE ............................................................................. 62 3.10.2.5.1 EMPLOYENT BY SECTOR – DANNHAUSER 2016/17 .......................................................................... 62 3.10.2.6 ECONOMIC CONTRIBUTION BY SECTOR – DANNHAUSER 2016/17................................................. 63 3.10.2.7 JOBS CREATED THROUGH MUNICIPALITY ............................................................................................... 63 3.10.2.8 LOCAL ECONOMIC DEVELOPMENT OBJECTIVES – 2016/17 ............................................................... 63 3.10.2.9 BUILDING CONTROL & SIGNAGE ............................................................................................. 64 3.10.3 MARKET .............................................................................................................................................. 64 3.10.3.1 MARKET SERVICES .......................................................................................................................................... 64 3.10.4 HUMAN SETTLEMENTS .................................................................................................................. 65 3.10.4.1 INTRODUCTION ............................................................................................................................................... 65 3.10.4.2 SOME KEY OBJECTIVES OF THE HOUSING SECTOR PLAN .................................................................... 65 3.10.4.3 INFORMAL SETTLEMENT .............................................................................................................................. 65



3.10.5 PLANNING ........................................................................................................................................... 66 3.10.6 PROJECT IMPLEMENTATION ....................................................................................................... 66 3.10.7 HOUSING ADMINISTRATION ........................................................................................................ 66 3.11 COMPONENT C: COMMUNITY SERVICES ...................................................................................... 67 3.11.1 WASTE MANAGEMENT ................................................................................................................... 67 3.11.1.1 INTRODUCTION TO WASTE MANAGEMENT ........................................................................................... 67 3.11.2 COMMUNITY HALLS ........................................................................................................................ 67 3.11.2.1 ACTUAL COMMUNITY HALLS – 2016/2017 ..................................................................................................... 68 3.11.2.1.1 HALLS CONSTRUCTED IN 2016/17 ................................................................................................................. 68 3.11.2.1.2 BACKLOG OF HALLS BY 2016/17 .................................................................................................................... 68 3.11.3 CEMETERIES & CREMATORIA ...................................................................................................... 68 3.11.3.1 NUMBER OF CEMETERIES IN DANNHAUSER 2016/2017 ................................................................................. 68 3.11.3.1.2 CEMETERIES ACHIEVEMENTS IN 2016/2017 ................................................................................................ 68 3.11.4 ENVIRONMENTAL HEALTH .......................................................................................................... 69 3.11.5 TRAFFIC & PUBLIC SAFETY........................................................................................................... 69 3.11.6 DISASTER MANAGEMENT ............................................................................................................. 69 3.11.6.1 DISASTER RISK PROFILE – 2016/17 ............................................................................................................ 70 3.11.6.2 PRIORITY RISKS REQUIRING PREPAREDNESS – 2016/17 ..................................................................... 70 3.11.6.3 FUNDING PROVISION – 2016/17 ................................................................................................................ 70 3.11.6.4 RISK REDUCTION & PREVENTION – 2016/17 .......................................................................................... 70 3.11.6.5 DISASTER MANAGEMENT AS A SHARED FUNCTION ............................................................................ 71 3.11.6.6 ROLE OF DANNHAUSER MUNICIPALITY ................................................................................................... 71 3.11.6.7 PREPARATION .................................................................................................................................................. 71 3.11.6.8 RESPONSE AND RECOVERY .......................................................................................................................... 71 3.11.6.8.1 RESPONSE ...................................................................................................................................................... 71 3.11.6.8.2 RECOVERY ...................................................................................................................................................... 72 3.11.6.8.3 TRAINING AND AWARENESS .................................................................................................................... 72 3.11.6.8.4 DISASTER MANAGEMENT SWOT ANALYSIS ........................................................................................ 72 3.11.6.8.5 SERVICE STATISTICS FOR DISASTER MANAGEMENT ........................................................................ 72 3.11.7 SPORT & RECREATION ................................................................................................................... 73 3.11.7.1 SERVICE STATISTICS FOR SPORT AND RECREATION ............................................................................. 73 3.11.7.2 LIBRARY SERVICES ........................................................................................................................................... 73 3.12 INFORMATION & COMMUNICATION TECHNOLOGY SERVICES ............................................ 73 3.13 IT-SERVICES PROVIDED ......................................................................................................................................... 74 3.14 IT-INITIATIVES .......................................................................................................................................................... 74 3.15 LEGAL SERVICES .................................................................................................................................. 75 3.15.1 DELICTUAL COURT CLAIMS AND COURT INTERDICTS ............................................................................. 75 3.15.2 CRIMINAL PROSECUTIONS ............................................................................................................................... 75

CHAPTER 4 .............................................................................................................................. 76

ORGANISATIONAL DEVELOPMENT PERFORMANCE ............................................................... 76

4.1 INTRODUCTION TO ORGANIZATIONAL DEVELOPMENT PERFORMANCE .......................... 76 4.2 ALLOCATION/PLACEMENT PROCESS .............................................................................................. 76 4.2.1 EMPLOYEE TOTALS, FILLED & VACANCIES ................................................................................ 77 4.3 EMPLOYMENT EQUITY ......................................................................................................................... 77 4.4 WORK PLACE SKILLS PLAN ................................................................................................................. 78 4.5 VACANCY RATE ....................................................................................................................................... 78 4.6 CRITICAL POSTS ..................................................................................................................................... 78 4.7 HUMAN RESOURCES POLICIES ........................................................................................................... 79 4.8 HUMAN RESOURCES SERVICES .......................................................................................................... 80 4.9 FINALISATION OF NEW ORGANISATIONAL STRUCTURE: IN PREPARATION FOR

MIGRATION TO 2017/18 STRUCTURE .................................................................................................. 80 4.10 STAFF ALLOCATION/PLACEMENT PROCESS ON 2016/17 STRUCTURE ........................... 80



4.11 HUMAN RESOURCES - ORGANIZATIONAL DEVELOPMENT PERFORMANCE .................... 80 4.12 ADDRESSING ORGANISATIONAL DEVELOPMENT .................................................................... 80 4.13 INSTITUTIONAL ARRANGEMENTS ................................................................................................ 80 SWOT ANALYSIS – MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT81

CHAPTER 5 .............................................................................................................................. 82

FINANCIAL PERFORMANCE ..................................................................................................... 82

5.1 COMPONENT D: FINANCIAL SERVICES ............................................................................................ 82 5.1.1 INDIGENTS (FREE BASIC SERVICES)............................................................................................. 82 5.2.1 FREE BASIC SERVICES DELIVERED – 2016/17 (INDIGENT REGISTER) ............................ 82 5.2.2 FINANCIAL SERVICES ........................................................................................................................ 82 5.2.2 DEBT COLLECTION ............................................................................................................................. 83 5.2.3 GRANT PERFORMANCE .................................................................................................................... 83 5.2.3.1 GRANTS AND SUBSIDIES ............................................................................................................... 83

TABLE.54: GRANTS/SUBSIDIES RECEIVED & EXPENDITURE .......................................................... 83

5.3 FINANCIAL HEALTH OVERVIEW ....................................................................................................... 84 5.3.1 REVENUE ............................................................................................................................................... 84 5.3.2 EXPENDITURE ..................................................................................................................................... 84 5.3.3 GRANTS AND SUBSIDIES .................................................................................................................. 84 5.3.4 EMPLOYEE RELATED COSTS (INCLUDING COUNCILLOR ALLOWANCES) ........................ 85 5.3.5 OPERATING INCOME ......................................................................................................................... 85 5.3.5.1 ACTUAL INCOME 2016/2017 VS 2015/2016 ................................................................................................... 86 5.3.6 MUNICIPAL EXPENDITURE, LOANS, LEASES AND INVESTMENTS ...................................... 86 5.3.6.1 EXPENDITURE ..................................................................................................................................................... 86 DANNHAUSER LOCAL MUNICIPALITY – OPERATING & CAPITAL BUDGETS ............................. 86 7.4.3.2 ACTUAL EXPENDITURE COMPARISON – 2015/16 VS 2016/17 (‘000 000) ................................................... 87 5.3.7 LOANS, LEASES AND INVESTMENTS ............................................................................................. 88

AS INDICATED IN TABLE.61 BELOW, DANNHAUSER MUNICIPALITY HAD NEITHER BANK OVERDRAFTS NOR LOANS NOR FINANCE LEASES FOR THE YEAR UNDER REVIEW AND THE PREVIOUS YEAR. ........................................................................................................................ 88

5.3.8 SUPPLY CHAIN MANAGEMENT....................................................................................................... 88 5.3.8.1 KEY FOCUS AREAS FOR 2016/2017 FINANCIAL YEAR ............................................................................. 88 5.3.8.1.1 MONITORING AND CONTRACT MANAGEMENT ................................................................................................ 89 5.3.8.2 SERVICE STATISTICS FOR SUPPLY CHAIN MANAGEMENT ................................................ 89 5.3.8.2.1 LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS .................................................... 89 5.3.8.2.2 PERFORMANCE MANAGEMENT OF CONTRACTS FOR THE PERIOD 1 JULY 2016 - 30

JUNE 2017 ........................................................................................................................................................ 89 5.3.8.2.2 MONTHLY REPORTS FOR THE PERIOD 1 JULY 2016 - 30 JUNE 2017 ......................... 90 5.3.8.2.3 SERVICE PROVIDER PERFORMANCE ASSESSMENT ......................................................... 90

CHAPTER 6 .............................................................................................................................. 93

AUDITOR GENERAL FINDINGS ................................................................................................. 93

6.1 AUDITOR GENERAL – PREVIOUS FINANCIAL YEARS .................................................................. 93 6.1.1 AUDITOR GENERAL REPORT 2014 / 2015 FINANCIAL YEAR .............................................. 93 6.1.2 AUDITOR GENERAL REPORT 2015 / 2016 FINANCIAL YEAR .............................................. 93 6.1.3 AUDITOR GENERAL REPORT 2016 / 2017 FINANCIAL YEAR .............................................. 94

CONCLUSION ............................................................................................................................. 95



CHAPTER 7 (ANNEXURE 1) .................................................................................................... 96

ORGANISATIONAL DEVELOPMENT PMS / SDBIP 2016/17 .................................................... 96

7.1 PERFORMANCE MANAGEMENT OVERVIEW AND PROCESS ..................................................... 96 7.2 THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN ......................................... 96 7.3 DANNHAUSER PERFORMANCE MANAGEMENT COMPLIANCE & CHECKLIST .................... 96 7.4 DEVELOPMENT STRATEGY ................................................................................................................. 97 7.5 ALIGNMENT WITH NATIONAL AND PROVINCIAL STRATEGIES ............................................. 97 7.6 LEGISLATIVE FRAMEWORK ON ANNUAL PERFORMANCE REPORT...................................... 97 7.7 BASIS FOR COMPILATION OF THIS PERFORMANCE REPORT ................................................. 98 7.8 OVERVIEW OF ORGANISATIONAL DEVELOPMENT PERFORMANCE..................................... 98 7.8.1 PERFORMANCE MANAGEMENT SYSTEM FRAMEWORK ........................................................................... 98 7.8.2 DEPARTMENTAL ROLES OF RESPONSIBILITIES ...................................................................... 99 7.8.3 DISTRICT INTER-GOVERNMENTAL RELATIONS ................................................................... 100 7.9 INTEGRATED DEVELOPMENT PLAN, PERFORMANCE MANAGEMENT SYSTEMS AND

BUDGET ALIGNMENT ................................................................................................................................ 101 7.10 PERFORMANCE AGAINST THE NATIONAL KEY PERFORMANCE INDICATORS ............ 103 7.11 PERFORMANCE AGAINST SIX (6) MUNICIPAL STRATEGIC KEY PERFORMANCE AREAS .......................................................................................................................................................................... 105 7.11.1 OVERALL PERFORMANCE PER MUNICIPAL KPA ................................................................................................... 105 7.12 KPA 1: MUNICIPAL INSTITUTIONAL TRANSFORMATION AND DEVELOPMENT –

ACTUAL ANNUAL OUTCOMES ................................................................................................................ 107 7.13 KPA 2: BASIC SERVICE DELIVERY – ACTUAL ANNUAL OUTCOMES .................................. 110 7.14 KPA 3: LOCAL ECONOMIC DEVELOPMENT - ACTUAL ANNUAL OUTCOME .................... 114 7.15 KPA 4: GOOD GOVERNANCE AND PUBLIC PARTICIPATION – ACTUAL ANNUAL

OUTCOME ..................................................................................................................................................... 117 7.16 KPA 5: ENVIRONMENTAL AND SPATIAL MANAGEMENT – ACTUAL ANNUAL OUTCOMES .......................................................................................................................................................................... 128 7.17 KPA 6: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT ....................................... 130

COMMENTS, RECOMMENDATIONS FOR IMPROVEMENT AND CONCLUSION SDBIP ................ 134

7.18 OVERALL COMMENT........................................................................................................................ 134 7.19 RECOMMENDATIONS FOR IMPROVEMENT ............................................................................. 134 7.20 CONCLUSION ...................................................................................................................................... 134 LIST OF REFERENCES ................................................................................................................................ 136



LIST OF TABLES Table.1 Annual Report Process……………….............................................................................................................15 Table.2 Multiple Deprivation Index……………………………………………………………………………………….………………………...20 Table.3 Household Income…………………………………………………………………………………………………………………………..….21 Table.4 Economic Sector Contribution……………………………………………...................................................................21 Table.5 Electricity Usage Households 2016/2017…………………………………………………………………………………………….23 Table.6 Schedule of Waste Collection…................................................................................................................25 Table.7 Solid Waste Collection……………………………...…………………………………………………………………………………………26 Table.8 Expenditure Schedule Rural & Urban Roads………………………………………………………………………………………..26 Table.9 Community Halls……………………………………………………………………………………………………………………………..….27 Table.10 Health Facilities………………………………………………………………………………………………………………………….……..27 Table.11 Councillors After Local Government Elections August 2016 ……………………………………………………………..30 Table.12 Councillors Prior Local Government Elections August 2016……………………………………………………………….30 Table.13 Council Committee Members Prior LGE August 2016 Planned Meetings…………………………………………..31 Table.14 Council Committee Members After LGE August 2016 Planned Meetings…………………………………………..32 Table.15 Status Quo IGR………………………………………………………………………………………………………………………………….34 Table.16 Audit & Performance Management Committee………………………………………………………………………………..35 Table.17 Municipal Policies………………………………..................................................................................................41 Table.18 Police Service Data………………………………………………………………………………………………………………………….…42 Table.19 Indigent Policy Criteria……………………………………………………………………………………………………………………...43 Table.20 PMS Assessment Methodology……………………………………………………………………......………………………………45 Table.21 Capital Spending 5 largest Projects……………………..................................................................................47 Table.22 Measures Undertaken to Improve PMS 2016/2017……………………………………….....……………………………..50 Table.23 WWTP Compliance Amajuba District………………....................................................................................52 Table.24 WWTP Turbidity Compliance…………………………………………………………………………………………………………….52 Table.25 Water Microbiological Compliance……………..........................................................................................53 Table.26 Planned Water Supply………………………………………………………………………………………………………………….……53 Table.27 Equipment Used for Solid Waste Management…………….......................................................................54 Table.28 Grass Cutting Schedule………………………..................................................................................................55 Table.29 No.of Times Grass Cutting Occurs Per Month.......................................................................................55 Table.30 Equipment Used For Grass Cutting……………………………………………………………………………………………………55 Table.31 LED – Catalytic Projects 2016/2017……………………………………………………………………………………………………62 Table.32 Employment By Economic Sector………………………………………………………………….…………………………………..62 Table.33 Economic Contribution by Sector………………………………………………………………………………………………………63 Table.34 Jobs Created by Municipality…………………………………………………………………………………………………………….63 Table.35 LED Objectives 2016/2017………………………………………………………………………………………………………..………63 Table.36 Solid Waste Delivery Levels to Households……………………………………………………………………………………….67

Table.37 Number of Cemeteries………………………………………………………………………………………………………………..……68

Table.38 Environmental & Business Health……………………………………………………………………………………………………..69

Table.39 Disaster Risk Profile 2016/2017………………………………………………………………………………………………..………70

Table.40 Disaster Risk Priorities 2016/2017…………………………………………………………………………………………………….70

Table.41 Disaster Management SWOT Analysis 2016/2017………………………………….………………………………………...72

Table.42 IT-Services Provided………………………………………………………………………………………………………………………….74 Table.43 IT-Initiatives……………………………………………………………………………………………………………………………………...74 Table.44 Section 54/56 Management………………………………………………………………………………………………………………76 Table.45 Staff Complement Per Department……………………………………………………………………………………………….….76 Table.46 Employment Equity Stats…………………………………………………………………………………………………………………..77 Table.47 Employment Equity 2016/2017…………………………………………………………………………………………………………77 Table.48 Vacant Positions 2016/2017……………………………………………………………………………………………………………..78 Table.49 Critical Positions 2016/2017……………………………………………………………………………………………………………..79 Table.50 Human Resources Policies………………………………………………………………………………………………………………...79 Table.51 S54/56 Management 2016/2017………………………………………………………………………………………………………81 Table.52 Municipal Indigent Expenditure………………………………………………………………………………………………………..82 Table.53 Municipal Debt Collection…………………………………………………………………………………………………………………83 Table.54 Grants/Subsidies & Expenditure………………………………………………………………………………………………………..83 Table.55 Municipal Revenue 2016/2017………………………………………………………………………………………………………….84



Table.56 Municipal Expenditure 2016/1027….………………………………………………………………………………………………...84 Table.57 Municipal Grant Receipts……………………………………………………………………………………………………...………….85 Table.58 Operating Income………………………………………………………………………………………….………………………………….85 Table.59 Municipal Operating & Capital Budget 2016/2017…………………………………………………………………………….86 Table.60 Operating & Capital Expenditure…………………………………………………………………….…………………………………87 Table.61 Municipal Bank Overdraft/External Loans/leases…….………………………………………………………………………..88 Table.62 Investment Analysis 2016/2017…………………………………………………………………………………………………………88 Table.63 Long-Term Contracts & PPPs……………………………………………………………………………………………………………..89 Table.64 Monthly Reports Long-Term Contracts Compliance…………………………………………………………......………….90 Table.65 Service Provider Performance ……………………………………………………………………………………………...………….91 Table.66 PMS Checklist……………………………………………………………………………………………………………………………………96 Table.67 Departmental Roles of Responsibilities……………………………………………………………………………………………..99 Table.68 IDP,PMS & Budget Alignment 2016/2017………………………………………………………………………………………..101 Table.69 KPAs & Weightings Per Department 2016/2017………………………………………………………………………………102 Table.70 National Assessment of KPAs 2016/2017………………………………………………………………………………………..103 Table.71 Overall Performance per Municipal KPA 2016/2017………………………………………………………………………..105 Table.72 Departmental Performance Against SDBIP KPIs 2016/2017………………………………………………......……….106 Table.73 Municipal Institutional Transformation & Development SDBIP KPIs 2016/17 Actual Annual…………..107 Table.74 Basic Service Delivery SDBIP KPIs 2016/17 Actual Annual………………………………………………………………..110 Table.75 Local Economic Development SDBIP KPIs 2016/17 Actual Annual……………………………………………………114 Table.76 Good Governance & Public Participation SDBIP KPIs 2016/17 Actual Annual…………………………………..117 Table.77 Environmental & Spatial Management SDBIP KPIs 2016/17 Actual Annual……………………………………..128 Table.78 Municipal Finance Viability & Management SDBIP KPIs 2016/17 Actual Annual………………………………130

LIST OF FIGURES

Figure.1 Population Distribution………………………………………………………………………….………..…………………………………18 Figure.2 Population Growth……………………………………….........................................................................................19 Figure.3 Education levels 2016/2017……………………………………………………………………………………………………………….19 Figure.4 Employment Stats..................................................................................................................................21 Figure.5 Number of households………………………………………………………………………………………………………………………22 Figure.6 Types of Dwellings……………………………………………………………………………………………………………………………..23 Figure.7 Energy for Cooking…………………………………………………………………………………………………………………………….24 Figure.8 Energy for Lighting……………………………………………………………………………………………………………………………..24 Figure.9 Energy for Heating……………………………………………………………………………………………………………………………..24 Figure.10 Water Access Households……………………………………………………………………………………………………………..…25 Figure.11 Household Sanitation……………………………………………………………………………………………………………………….25 Figure.12 Solid Waste Removal………………………………………………………………………………………………………......………….26 Figure.13 KPI 2015/16 vs 2016/17……………………………………………………………………………………………………………………45 Figure.14 Percentage KPI Representation 2016/17………………………………………………………………………………………….46 Figure.15 Total KPIs Per KPA 2016/17……………………………………………………………………………………………………………..46 Figure.16 Basic Service Delivery Capital Projects 2016/17……………………………………………………………………………….47 Figure.17 Capital Expenditure 5 Large Projects ……………………………………………………………………………………………….48 Figure.18 Operational Projects KPIs Achieved/Not Achieved/Almost Achieved 2016/17…………………………….…..49 Figure.19 Household Water Sources 2016/17……………………………………………………………………………………………….…51 Figure.20 Employee Total (Filled & Vacant Positions)………………………………………………………………………………………77 Figure.21 Actual Employment Equity 2016/17…………………………………………………………………………………………………78 Figure.22 Municipal Transformation & Institutional Development 2016/17 SWOT…………………………………….……81 Figure.23 Actual Income Earned 2016/17……………………………………………………………………………………………….……....86 Figure.24 Actual Expenditure 2016/17…………………………………………………………………………………………………………….87 Figure.25 Investment Bank Call Accounts 2016/17………………………………………………………………………………………….88

LIST OF MAPS

Map.1 Dannhauser Locality……………………………………………………………………………………………………………………………..17 Map.2 Ward Boundaries………………………………………………………………………………………………………………………………….18 Map.3 Location of Capital Projects…………………………………………………………………………………………………………………..48



LIST OF IMAGES

Image.1 Dannhauser LM Newly Elected Council August 2016………………………………………………………………………….29 Image.2 Dannhauser LM Newly Elected Executive Committee 2016………………………………………………………………..29 Image.3 Urban Tarred Residential Road…………………………………………………………………………………………………………..58

ANNEXURES ANNEXURE.1 – SERVICE DELIVERY BUDGET & IMPLEMENTATION PLAN 2016/17 ANNEXURE.2 - ANNUAL FINANCIAL STATEMENTS 2016/2017 ANNEXURE.3 - REPORT ON THE MUNICIPAL INFRASTRUCTURE GRANT (MIG), FIVE LARGEST CAPITAL PROJECTS PER WARD, TOP FOUR SERVICE DELIVERY PRIORITIES PER WARD 2016/2017 FINANCIAL YEAR ANNEXURE.4 - REPORT OF THE AUDITOR GENERAL 2016/2017 ANNEXURE.5 - RESPONSE TO THE REPORT OF THE AUDITOR GENERAL 2016/2017 ANNEXURE.6 - REPORT OF THE AUDIT COMMITTEE & RECOMMENDATIONS OF THE AUDIT COMMITTEE 2016/2017 ANNEXURE.7 - FINANCIAL DECLARATIONS OF COUNCILLORS AND MUNICIPAL STAFF 2016/2017 ANNEXURE.8 - INTEGRATED DEVELOPMENT PLAN 2016/2017



LIST OF ACRONYMS

AC Audit Committee

ADM Amajuba District Municipality

A&PMC Audit and Performance Management Committee

AFLED Agricultural Forum for Local Economic Development

AG Auditor General

AR Annual Report

AO Accounting Officer

CFO Chief Financial Officer

COGTA Co-operative Governance and Traditional Affairs

COMMS Community Services

CORPS Corporate Services

DTAC District Technical Advisory Committee

EPWP Extended Public Works Programme

EXCO Executive Committee

FINS Financial Services

IA Internal Audit

IDP Integrated Development Plan

IGR Inter-Governmental Relations

IWMP Integrated Waste Management Plan

KPA Key Performance Area

KPI Key Performance Indicator

MFMA Municipal Finance Management Act (No. 56 of 2003)

MFMG Municipal Finance Management Grant

MIG Municipal Infrastructure Grant

MM Municipal Manager

MPAC Municipal Public Accounts Committee

MPPR Municipal Planning and Performance Management Regulations (No. R796 of 2001)

MSA Municipal Systems Act (No. 32 of 2000)

MSA Municipal Structure Act (No. 117 of 1997)

MSIG Municipal Support Improvement Grant

MPAC Municipal Public Accounts Committee

NDHLM Dannhauser Local Municipality

NDP National Development Plan

NKPI National Key Performance Indicator

PA Performance Agreement

PGDS Provincial Growth and Development Strategy

PMS Performance Management System

PoE Portfolio of Evidence

PR Party Representative

SDBIP Service Delivery and Budget Implementation Plan

SLA Service Level Agreement

TECHS Technical Services

WC Ward Councilors

WC Ward Committee



CHAPTER 1: INTRODUCTION

MAYOR FOREWORD

The Municipality in compliance with chapter 12 (section 121) of the Municipal Finance Management Act 56 of 2003 is required to prepare annual report and table such a report to

council within nine months after the end of the financial year, in this case the 2016/17 financial year. It is in this context that this report is prepared. The 2016/17 was a tough year for local government in general as this was the last year of the previous term of Council and the local government election were looming in August 2016 during the financial year. One can only reflect on the accomplishment of the outgoing and incoming council and also commit to make improvements where they are needed. The current council that took over in August 2016 adopted in the 2016/17 IDP municipal vision of “creating a financially viable municipality and providing integrated quality services hereby with creating a better life for all”. The audit outcome of the 2016/17 financial year is unqualified and a number of positives that occurred during the 2016/17 financial year do indicate that the Municipality is indeed moving in the right direction. During the course of the financial year, the municipality’s wards were increased by two, thus changing complement from eleven to thirteen. The two addition wards were from splitting some existing wards and amalgamating them, this is due to high population levels and households, and would enable the municipality to render services effectively to all thirteen wards. The municipality also continued with the Implementation of a number of projects such as the upgrading of community halls, electrification in-fills to additional households, maintenance of street lights, delivery of water jojo tanks to households, development of crèches, road construction and maintenance, extension of waste collection services, implementation of the Agri-Park at Renier Farm with DRDLR, empowering of locally owned Co-operatives & SMME’s building of houses through integration with the Department of Human Settlements, Development of the Industrial Park funded by Cogta-KZN, just to mention a few. It is important to note that, Amajuba District Municipality is the Water Services Authority and implements projects related to water and liquid sanitation, the municipality does integrate with the District and indicates water & sanitation requirements and infrastructure requirements within its wards. The Municipality continued to align its operations to the Sustainable Development Goals, National Development Plan 2030, Provincial Growth and Development Strategy, National Infrastructure Plan, National Government Outcomes, Provincial Priorities, District Growth & Development Strategy and other strategies guiding municipal development socially and economically. In line with PGDS Goal 1 of Job creation the Municipality Implemented the EPWP project and created numerous job opportunities through all its capital projects, the municipality appointed the youth from different wards both male and females thus ensuring they have access to jobs. The Municipality aligns to all the seven goals of the PGDS and this is thoroughly articulated in our Integrated Development Plan. As part of the preparations for the fourth generation Integrated Development Plan (IDP) which caters for the 2017/18 to 2021/22 Financial years, the municipality has ensured that the objectives of the municipality are aligned to all the relevant national, provincial and local strategies. During the 2016/17 financial year, in order to provide progress on performance as well as to get input towards the 2017/18 budget and IDP, public participation meetings took place in November 2016 and again in March and April 2017. Stakeholders included, amongst others, Councillors, ward committee members, business, NGOs’, provincial sector departments and members of the community. These were very well attended indicating the commitment our people have towards the development of the city. The Municipality has already prepared an action plan to address the concerns raised by the Auditor General. There is a performance management system in place to ensure that people deliver on the set strategic objectives and targets. The Management reports against planned targets on a monthly basis and these are audited every quarter by our Internal Audit Unit. THANK YOU FOR ALL THE SUPPORT

-------------------------------------------

Honourable Executive Mayor

Cllr: Phakathi JP



MUNICIPAL MANAGER FORWORD

Dannhauser Local Municipality has had a successful fiscal year 2016/2017. A high quality of service and high delivery of services has occurred compared to the 2015/2016 financial year.

In adding to the words of the Mayor, the Legislative Requirements for the Preparation of the Annual Report: The preparation and publication of the Annual Report is a legislative requirement as per Section 46 of the Municipal Systems Act (MSA) 32 of 2000 and Section 121 of the Municipal Finance Management Act (MFMA) 56 of 2003. The main accountabilities of the Accounting Officer are the six Key Legislative Mandate and Key Performance Areas which include: 1. Basic Service Delivery and Infrastructure; 2. Local Economic Development; 3. Municipal Financial Viability and Management; 4. Good Governance and Public Participation; 5. Municipal Transformation and Organisational Development; and 6. Environmental and Spatial Management. Section 46 (1) of the MSA states that: A municipality must prepare for each financial year a performance report reflecting – (a) The performance of the municipality and of each external service provider during the financial year; (b) A comparison of the performances referred to in paragraph (a) with targets set for and performances

in the previous financial year; and (c) Measure taken to improve performance. (2) An annual performance report must form part of the municipality’s annual report in terms of Chapter

12 of the Municipal Finance Management Act (MFMA) 56 of 2003. Section 121 of the MFMA states that: (1) Every municipality and every municipal entity must for each financial year prepare an annual report in

accordance with this chapter. The council of a municipality must, within nine months after the end of a financial year, deal with the annual report of the municipality and of any municipal entity under the municipality’s sole or shared control in accordance with section 129.

(2) The purpose of an annual report is: (a) To provide a record of the activities of the municipality or municipal entity during the financial year to

which the report relates; (b) To provide a report on performance against the budget of the municipality or municipal entity for that

financial year; and (c) To promote accountability to the local community for the decisions made throughout the year by the

municipality or municipal entity. Subsections (3) and (4) continue to prescribe the contents of the annual reports for both the municipality and municipal entities. During the oversight process, to which the draft Annual Report will be subjected, compliance with these legislative requirements will be analysed.

SERVICE DELIVERY HIGHLIGHTS: Basic Service Delivery & Infrastructure Services: This component includes: Housing development, Electrification In-Fills, Gravel Roads, Water Jojo tanks, Sports & Recreation, Community Halls, Industrial Park and Waste Management – Landfill site. 10 houses built in Buhlebomzinyathi Housing Project Phase.1 15 houses built as part of infrastructure replacement due to a natural disaster 3 Mobile Child care facilities in wards 5 and 10;



1 Community Hall built in ward 2 4 km of rural gravel roads constructed wards 10 and 11; 632 houses electrification In-Fills; 967 Street lights maintained; 1 Industrial Park completed; 1 Sportsfield Upgraded; 11 Jojo Tanks and Stands Erected; 1 Waste Management – Landfill Site – Licensed; 1704 household refuse removal per week; 456 business refuse removal per week; and 12 136 small holdings outside Dannhauser urban area refuse removal per week; Economic Development: Economic development and physical planning at Dannhauser Local Municipality contributes to:- (a) Creation of jobs and protection of the livelihood of the people. (b) Protection of the environment and cultural heritage of the residents. (c) In general, contribute in encouraging Sustainable Development. 143 jobs created through EPWP all the municipal capital projects; 1100 jobs created through CWP in municipal capital and socio-economic up-keep projects; 15 Co-operatives and SMMEs’ received support through programmes and mentorships; 1 Municipal owned farm (Renier Farm) being utilized for agricultural projects by the local community

members owning Co-operatives, they are being supported by DRDLR through the Agri-Parks programme; Adoption of Urban Precinct Plan by Council; LED Strategy Reviewed; and Tourism Strategy being developed.

Municipal Transformation & Institutional Development Municipal Transformation & Institutional Development of Dannhauser contributes to the effective delivery of services and socio-economic development within the jurisdiction. The following were achieved; 12 Management Committee meetings; 2 Strategic Planning meetings; Work Skills Plan and Employment Equity Plan approved; Council Adopted Organisational Structure; and Council, Portfolio and Executive Committee meetings. Good Governance and Public Participation The municipality upheld its compliance levels with regards to guiding legislations and further incorporated the priority views of its community in all wards as required by the Municipal Systems Act, 32 of 2000, the following were achieved; 4 Meetings attended based on the Mayor’s and Municipal Managers Forums held at Amajuba District in

accordance to IGR requirements; 4 DTAC meetings attended as per Cogta – KZN invitations; Internal Audit Plan by Audit Committee approved and adopted by Council on 31 July 2017; 4 Audit Committee Meetings held; 4 Risk Management Committee meetings held and 2 Risk Assessment Workshops; Risk Management policies approved and adopted by Council on 30 October 2016; Draft Annual Report public comments submitted to Corporate Services for MPAC to prepare Oversight

Report 7 days after due date of draft AR advert; Annual Report 2015/2016 adopted by 31 January 2017; SDBIP 2016/17 submitted to Mayor 14 days after budget approval and approved by Council 28 days after

budget approval;



2016 / 2017 - PMS review and adoption by 31 July 2016; 52 ( 4 per ward) Constituency meetings held ; 4 Finance Forum meetings attended 2 IDP & Budget Roadshows 2016/17 conducted; IDP and Budget Process plan 2016/17 adopted by Council by 28 August 2017; 5 Performance Agreements Signed 30 Days after beginning of new financial year (30 July 2017) and made

public via the municipal website; Mid-year Section 72 performance report prepared and adopted by Council by 25 January 2017; and Youth development programmes implemented.

Environmental and Spatial Management The municipality complied with Land Use Management legislations and guiding strategies and enhanced environmental management upkeep through the application of promulgated legislations and within the district, the following were achieved; Review and adopting of the Spatial Development Framework (SDF) 2016/2017 by 31 May 2017; Enforcement and alignment of the SDF and Land Use Management System (LUMS) 2016/2017; Reporting and attending to disaster and fire incidents within the jurisdiction; Approved Cemetery Plan by 31 March 2017 and maintenance of urban and rural cemeteries; and Compliant waste management – landfill site that is fully licensed. Municipal Financial Management and Viability Regular reporting on actual expenditure versus budget, reports submitted quarterly to Exco, Council and

relevant stakeholders, submitted by the 10th

day after each quarter end; Monthly reconciliation of creditors, debtors and bank balances for the 2016/17 financial year; Developed procurement plan submitted to Municipal Manager and Council including status quo reports; The number of days for converting purchase requisition to order, to finalise specification of Bid/Tender, to

finalise evaluation of Bid/Tender, to adjudicate the Bid/Tender process all reduced to target days as per KPIs’;

(Revenue Collection)Billing of all municipal debtors undertaken within 30 days and 80 % debt collection achieved on a monthly basis;

Departmental budget actual expenditure reported on a quarterly basis; and Annual Financial statements submitted to Auditor General as prescribed by the Municipal Finance

Management Act and Public Finance Management Act.

Measures to Improve Performance: The approved Service Delivery and Budget Implementation (SDBIP) and Operational Plan (OP) included a total of 181 projects reduced into KPIs’. This includes 166 operating projects and 15 capital projects. On both the operating and capital projects, the Municipality achieved at least 85% of the targets (within the 85%; 94 % being fully achieved and 6 % being almost met) that were set at the beginning of the financial year. The report on both the SDBIP and OP (attached as Annexure ‘1’ and ‘2’) includes corrective measures as well as the timeframe/s for each individual Key Performance Indicator/ project. However, at a strategic level, in order to improve performance for the 2017/ 2018 financial year, the following measures have been put in place: Weekly monitoring of capital expenditure, both Council and grant-funded capital projects; Enhancing of procurement processes to ensure projects are undertaken; Intensifying the sourcing of grants to implement various projects; Continued use of Expanded Public Works Programme (EPWP) and Community Work Programme (CWP)

workers per ward to improve and accelerate project implementation and job creation; Embark on an aggressive debt collection programme; Increase revenue generating projects and activities; and Drawing in of investors. Without a doubt, the municipality continues to make progress towards achieving its mandate of providing developmental service delivery to its citizens. The municipality will implement an audit action plan to deal with



matters raised in the AG audit. This will allow the municipality to work towards a clean audit, which will ensure that we continue to build a capable and well developed municipality.

THE ANNUAL REPORT PROCESS The process followed for developing the annual report by the municipality is indicated in table.1 below; Table.1

No. Description TimeFrame

1. Preparation and finalization of annual performance report 2016/2017 and annual financial statements 2016/17

01 July 2017 – August 2017

2. Submission of Annual Performance Report 2016/2017 & Annual Financial Statements 2016/2017 to Auditor General for auditing.

On or before 31 August 2017

3. Finalise the 1st

draft of the Annual Report 2016/2017 to Municipal Manager with all data of relevant departments and Auditor General Comments.

20 November 2017

4. Draft Annual Report 2016/2017 completed and submitted to Auditor General for comments and changes if required.

22 November 2017

5. 2nd

draft of Annual Report completed and submitted to the Municipal Manager for comment incorporating Auditor General comments & if any changes.

30 November 2017

6. Engagement with author of Annual Report for finalization 1st

week of December 2017

7. Finalized, published and printed annual report by municipality or service provider appointed.

1st

week of January 2018

8. Annual Report tabled by the Mayor at Full Council. On or before the 31st

of January 2018

9. Tabled annual report 2016/2017 to be made accessible to the public. Within 14 days from the date of tabling the annual report

10. A copy of the report to be submitted to the MEC for local government in KZN, the Auditor General, Provincial Legislature and National Treasury.

Within 14 days from the date of tabling the annual report

11. Oversight report on Annual report 2016/2017 to commence once Annual Report has been tabled at Full Council, and Oversight report to be completed within two months of the Tabling of the Annual Report to Full Council

1st

of February to on or before 30

th March 2018

12. Oversight report made available to the public within seven (7) days of being tabled in Council

On or before the 6th

of April 2018

The mayor of a municipality must, within seven months after the end of the financial year, table in the municipal council the annual report of the municipality and of any municipal entity under the municipality’s sole control. The council of a municipality must consider the annual report of the municipality of municipal entity, and by no later than two months from the date on which the annual report was tabled in council, adopt an oversight report containing councils comments on the annual report which must include a statement whether the council- 1. has approved the annual report without reservations; 2. has rejected the annual report; or 3. has referred the annual report back for the revision of those components that can be revised. THE MUNICIPAL FINANCE MANAGEMENT ACT, NO 56 OF 2003: SECTION 121: (ANNUAL

REPORT OUTLINES) Preparation and adoption of annual reports (1) Every municipality and every municipal entity must for each financial year prepare an annual report in accordance with this Chapter. The council of a municipality must within nine months after the end of a



financial year deal with the annual report of the municipality and of any municipal entity under the municipality's sole or shared control in accordance with section 129. (2) The purpose of an annual report is—

(a) to provide a record of the activities of the municipality or municipal entity during the financial year to which the report relates;

(b) to provide a report on performance against the budget of the municipality or municipal entity for that financial year; and

(c) to promote accountability to the local community for the decisions made throughout the year by the municipality or municipal entity.

(3) The annual report of a municipality must include—

(a) the annual financial statements of the municipality, and in addition, if section 122(2) applies, consolidated annual financial statements, as submitted to the Auditor-General for audit in terms of section 126(1);

(b) the Auditor-General's audit report in terms of section 126(3) on those financial statements; (c) the annual performance report of the municipality prepared by the municipality in terms of section 46

of the Municipal Systems Act; (d) the Auditor-General's audit report in terms of section 45(b) of the Municipal Systems Act; (e) an assessment by the municipality's accounting officer of any arrears on municipal taxes and service

charges; (f) an assessment by the municipality's accounting officer of the municipality's performance against the

measurable performance objectives referred to in section 17(3)(b) for revenue collection from each revenue source and for each vote in the municipality's approved budget for the relevant financial year;

(g) particulars of any corrective action taken or to be taken in response to issues raised in the audit reports referred to in paragraphs (b) and (d);

(h) any explanations that may be necessary to clarify issues in connection with the financial statements; (i) any information as determined by the municipality; (j) any recommendations of the municipality's audit committee; and (k) any other information as may be prescribed.

(4) The annual report of a municipal entity must include—

(ii) the annual financial statements of the entity, as submitted to the Auditor-General for audit in terms of section 126(2);

(iii) the Auditor-General's audit report in terms of section 126(3) on those financial statements; (iv) an assessment by the entity's accounting officer of any arrears on municipal taxes and service

charges; (v) an assessment by the entity's accounting officer of the entity's performance against any measurable

performance objectives set in terms the service delivery agreement or other agreement between the entity and its parent municipality;

(vi) particulars of any corrective action taken or to be taken in response to issues raised in the audit report referred to in paragraph (b);

(vii) any information as determined by the entity or its parent municipality; (viii) any recommendations of the audit committee of the entity or of its parent municipality; and (ix) any other information as may be prescribed.

……………………………………….. Municipal Manager Nkosi WB



MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

1.1 VISION

To create a financially viable municipality and providing integrated quality services hereby with creating a better life for all.

1.2 MISSION Dannhauser municipality will utilize its available resources to achieve a sustainable economy by creating job opportunities through agrarian reform, mining and industrial development. This will be enhanced and supported by its transformed staff.

1.3 OVERVIEW OF DANNHAUSER MUNICIPALITY Dannhauser Local Municipality (LM) (KZN 254) is located north in the Kwa-Zulu Natal Province in Amajuba District with Newcastle Local Municipality and eMadlangeni Local Municipality as part of its family. It is the smallest of three local municipalities within the District; with area coverage of approximately 1516 square kilometers. Dannhauser LM is a predominantly rural municipality, and classified as a “Class B” municipality by national government. Mining towns with some residential areas were established within the jurisdiction prior to the 1980’s as a result of the numerous mines situated within and around the municipal area. These include Dannhauser Town, Hattingspruit, and other main towns such as Inverness, Kilegethe, Klipbank, Milford, Normandien, Nyanyadu, Rutland, Tendeka, Witteklip. The municipality in 2016/2017 had eleven (11) wards but it was subsequently increased to thirteen (13) wards with a combined total of 58 settlement areas. Dannhauser Town is the main node within the municipal area and currently is currently surrounded by some of the largest coal producing mines in KwaZulu-Natal. The municipality is strategically positioned in a midway point along a main railway line that provides linkage between Durban and Johannesburg and is located approximately eight (8) kilometres off a national road (N11). The landscape of the local municipality is characterized by numerous rivers that flow through the municipal area, the Ngagane and uMzinyathi Rivers are amongst the largest of these rivers. The western portion of the municipality is endowed with scenic landscapes. Map.1



1.4 WARDS AND TRADITIONAL AUTHORITY The north-eastern portion of the Dannhauser municipal area is largely land under the administration of traditional councils. It includes a portion of Ubuhlebomzinyathi Community Authority (that falls within Dannhauser Municipality), covering an area of approximately 13, 395 km2 in extent and Nyanyadu Traditional Council area which accounts for about 1, 1190 km2 of the total municipal area, the other Council Authorities are Ingwe, Emalangeni and Gule. Municipal Wards and Tribal Authority Boundaries Map.2 Ward Boundaries

Google Maps 2016

1.5 DEMOGRAPHIC PROFILE The population of the Dannhauser Municipality was recorded at 105 341 people in 2016 compared to a total of 102 161 in 2011. This is evident of an increase of 3 180 people between 2011 and 2016. The population is distributed unevenly among the 13 municipal wards.

Figure.1: Population Distribution

Stats SA: Census 2016

Ward1

Ward2

Ward3

Ward4

Ward5

Ward6

Ward7

Ward8

Ward9

Ward10

Ward11

Ward12

Ward13

2011 9749 8095 9101 9213 7424 9538 8094 9446 9787 11484 10232

2016 7291 8623 7864 6337 6295 8686 8820 8438 8987 8821 7651 7690 7434

0

2000

4000

6000

8000

10000

12000

14000

Po

pu

lati

on



1.6 POPULATION GROWTH / DECLINE Population densities are highest in the Traditional Council areas in the north-eastern portion of the municipal area and in Dannhauser Town. The town functions as a primary node (providing commercial service facilities, agricultural industries, industrial park, public social infrastructure, economic infrastructure and government services). The local economy is largely defined by the mining and agricultural sectors, these currently contribute to minimal employment within the jurisdiction. Local residents rely on the larger urban centres of Dundee and Newcastle for employment opportunities and higher order goods and services. The population growth within the jurisdiction can be attributed to a number of issues, including: receiving quality government services, immigration by residents moving from neighboring areas such as Newcastle, Emadlangeni and other municipalities, increased housing development by Human Settlements, availability of land for agricultural activities, etc. If the positive growth rate persists, it is likely to encourage development in the area. The situation therefore warrants interventional measures that could encourage people to remain within the municipality to the municipality. Figure.2: Population Growth

Stats SA: Census 2016 Education plays an important role in economic development. It provides skilled labour that is key in producing goods and services in an economy. In 2016, of the total population of 105 341, only 1.9% had obtained tertiary educational attainments and only 16.4% had matriculated. People with no schooling increased to 14.7% 2011. This can be attributed to a lower level of primary school enrolment that was experienced in the municipal area in 2014-2015. Only a handful of those who finish matric pursue further studies. It is important to address this challenge. There is a need to develop a program that will monitor or ensure that pupils that enroll in primary education are encouraged to complete secondary education and further their studies. Addressing this challenge is fundamental to creating a strong base that the municipality can use to stimulate economic growth and development.

Education Level Figure.3: Dannhauser Education Level


20012011

2016

102 779 102 161

105 341

Population growth/decline

NoSchooling

PrimarySome

Secondary MatricTertiary

15,507

38,226 32,020

17,297

2,003

Highest Level of Education



1.7 MULTIPLE DEPRIVATIONS INDEX The KwaZulu-Natal Provincial Index of Multiple Deprivation (PIMD) (2001) identifies poverty levels per municipality at a ward level. In terms of how it was determined, the PIMD (2001) was constructed by combining the five transformed domain scores with equal weights. The five domain indices are as follows: Income and Material Deprivation; Employment Deprivation; Health Deprivation; Education Deprivation; and Living Environment Deprivation.

Table.2: Multiple Deprivations Index (Census 2016)

WARDS LEVEL OF DEPRIVATION

Ward 1 High

Ward 2 Low

Ward 3 Most

Ward 4 Most

Ward 5 Most

Ward 6 Most

Ward 7 High

Ward 8 Most

Ward 9 High

Ward 10 Most

Ward 11 Low

Ward 12 Most

Ward 13 Most

1.8 EMPLOYMENT / UNEMPLOYMENT RATE The municipality experienced a slight increase in the number of people employed from 2011 to 2016, this is however offset by the large numbers of people who are eligible for employment but are not employed. This can be attributed to low education levels which compromise the employability of residents within the municipality and a lack of employment opportunities due to a lack of economic activities in the municipal area. High unemployment levels pose a number of challenges and are associated with a number of social ills, particularly for the youth. They make them prone to engage in activities such as drug abuse, crime, alcohol abuse, etc. Efforts should be made to address these challenges. The figure below indicates the employment status of the municipality; The marked slight improvement of employment has been contributed by the local economic development programmes that the municipality is engaging in with sector departments and private stakeholders. This has witnessed SMME’s and Co-operatives being empowered through government programmes whether through being awarded with contracts through the municipal supply chain management empowerment programme or other sector departmental programmes such as EPWP, CPWP and other initiatives.



Figure.4: Employment Status


1.9 HOUSEHOLD INCOME Table.3

HOUSEHOLD INCOME INCOME BRACKET NUMBER OF HOUSEHOLD No Income 3 544 R1 – R 4 800 1 124 R 4 801 – R 9 600 2 142 R 9 601 – R 19 200 4 979 R 19 201 – R 38 400 4 852 R 38 401 – R 76 800 2 427 R 76 801 – R 153 600 1 022 R 153 601 – R 307 200 458 R 307 201 – R 614 400 226 R 614 401 – R 1 228 800 32 R 1 228 801 – R 2 457 600 13 R 2 457 601 or More 18 Unspecified 1 Not Applicable 5 GRAND TOTAL 20 844

(Census 2016) It is clear from the above data that there are more households living in poverty, this impacts negatively on the revenue generating stream of the municipality. It also serves as an indicator that more employment opportunities (job creating activities) must be implemented to reduce the poverty margins.

1.10 GENERAL PERFORMANCE OF ECONOMIC SECTOR CONTRIBUTION - DANNHAUSER Table.4

TYPE OF SECTOR 1997 2003 2013

Primary Sector 55.9% 26.7% 36.0%

Agriculture 6.6% 10.8% 6.3%

Mining 49.3% 15.9% 29.7%

Secondary Sector 17.0% 21.1% 11.7%

Manufacturing 13.6% 18.3% 9.2%

Electricity 2.0% 1.0% 1.0%

Construction 1.4% 1.8% 1.5%

Tertiary Sector 27.1% 52.2% 52.3%

Trade 4.7% 7.6% 7.8%

Transport 4.3% 6.5% 5.6%

Finance 3.6% 7.7% 6.2%

Community Services 14.4% 30.5% 32.6%

Treasury – 2013 / Global Insight 2014

0

20000

40000

60000

Employed Unemployed Eligible To WorkBut Discourage

Not Legible toWork

10 852 9 843

31 471 44 214

11 100 9 872

38 069 46 300

2011 2016



As per Global Insight 2014, 2013 economic analysis publishing adopted by Provincial Treasury KZN in the Social-Economic Profile of Amajuba District in 2014; Dannhauser’s Gross Domestic Product performance and contribution per economic sector to Kwazulu-Natal province was; Agriculture decreased from 10.8% in 2003 to 6.3% in 2013; Mining increased from 15.9 % in 2003 to 29.7% in 2013; Manufacturing decreased from 18.3% in 2003 to 9.2% in 2013; Electricity remained constant at 1% from 2003 to 2013; Construction decreased from 1.8% to 1.5% from 2003 to 2013; Trade increased from 7.6 % to 7.8 % from 2003 to 2013; Transport decreased from 6.5 % to 5.6 % from 2003 to 2013; Finance decreased from 7.3 % to 6.2% from 2003 to 2013; and Community Services increased from 30.5% to 32.6 %. The mining sector has greatly contributed to employment within the jurisdiction with a total upward movement of 13.8 % from 2003 to 2013. According to Census 2011 data from Stats SA, the population of Dannhauser is 19 % are employed, 17 % are unemployed but economically active while 64 % are unemployed but are not economically active.

1.11 CURRENT HOSUEHOLD STATUS The number of households in the municipal area slightly increased from 20 439 in 2011 to 20 844 in 2016. These households are mostly located in rural settlements and are scattered in space in an inefficient manner. These scattered households pose a great challenge in terms of providing basic services such as water, roads, electricity. Figure.5: No of Households

Stats SA: Census 2016 1.11.1 FORMAL DWELLINGS Dannhauser municipality due to its rural setting has more traditional dwellings compared to formal residential ones. A handful of formal dwellings are situated around Dannhauser Town, in Durnacoal and Hattingspruit, while the traditional dwellings are situated on tribal council authority land in the north-eastern portion of the jurisdiction. The municipality through its internal operating units has integrated successfully with sector departments such as the Department of Human Settlements to ensure that there is an increase in the number of households from the previous financial year 2015/2016. This shows a marked improvement on the basic service delivery component by the municipality.

No. Houses-2001No. Houses-2011

No. Houses-2016

19 320 20 439 20 844

No. of Households



Figure.6: Types Of Dwellings


1.11.2 HOUSEHOLD ACCESS TO ELECTRICTY Dannhauser Municipality is not licensed to provide electricity, thus ESKOM is the sole service provider. The Municipality has managed to achieve 100% universal access to electricity; this confirms that the Dannhauser area has enough electrical capacity and infrastructure. The municipality is however experiencing challenges; a high of influx of people, particularly on privately owned land whereby the land owners allocate sites without considering the municipality’s plans. This has resulted in a burgeoning backlog of electricity infills, currently the backlog is at 1125. The backlog number was determined after an assessment that was undertaken by the municipality, in consultation with ward councilors and ward committee members. In the 2014/2015 financial year, the municipality received funding of R8 000 000 from KZN COGTA to eradicate this backlog. The municipality had also availed R11 000 000. For the 2015/2016 financial year, COGTA allocated a grant funding of R 5 000 000 and the Department of Energy set aside R32 000 000 which was directly allocated to ESKOM.

Table.5: Electricity Usage of Households In Dannhauser

COOKING HEATING LIGHTING

Electricity from mains 10 711 51.8%



Other source of electricity 36 0.2%

Other source of electricity 22 0.1%

Other source of electricity 0 0%

Gas 482 2.3% Gas 262 1.27% Gas 125 0.6%

Paraffin 1 392 6.7% Paraffin 695 3.36% Paraffin 167 0.8%

Wood 1406 6.4% Wood 1 987 9.6% Candles 3 615 17.5%

Coal 5 893 29.2% Coal 7 463 36.1% Solar 115 0.6%

Animal dung 489 2.14% Animal Dung 667 3.2% Unspecified 55 0.2%

Other 156 0.76% Other 92 0.4% None 0 0%

None 97 0.5% None 1 712 8.3%

Total 20 662 100% Total 20 662 100% Total 20 662 100%


1.11.3 ELECTRICITY FOR COOKING, HEATING AND LIGHTING Dannhauser Municipality became the first municipality in the country to electrify all households within its area of jurisdiction. About 80.7% of the population within the municipal area uses electricity for lighting, cooking and heating purposes. Coal is still used substantially for cooking and heating purposes. A shift away from this resource is needed due to its unsustainable nature. The various forms of energy used by the community reflect as follows;

2 579 106

17 103

973

Formal Residential Informal Residential Traditional Residential Farms

Types Of Dwellings



Figure.7: Energy for Cooking


Figure.8: Energy for Lighting


Figure.9: Energy for Heating


1.11.4 HOUSEHOLD ACCESS TO WATER

The municipal jurisdiction has varying sources of water used by the community, these are depicted in the figure below;

10 711

482 1 392 1 406

5 893

489 36 156 97

Energy For Cooking

16 584

125 167

3 615

0 0 115 55 0

Energy for Lighting

7 762

262 695 1 927

7 463

667 22 92 1 771

Energy For Heating



Figure.10: Water Access


1.11.5 HOUSEHOLD ACCESS TO SANITATION Per Census 2016 data, about 2 666 flush toilets are connected to a sewerage system and septic tank. This is negligible adjustment upwards from 2 341 in 2011. The greater population utilizes Pit Latrine toilets without ventilation, this is highly evident in the rural cluster settlements. Figure.11: Sanitation Facilities


1.11.6 HOUSEHOLD ACCESS TO REFUSE REMOVAL

The municipality is responsible for its solid waste removal; the following figure.13 represents the areas of service delivery;

Table.6: Schedule of Waste Collection

AREA OF SOLID WASTE COLLECTION NO. OF HOUSEHOLDS NO. OF BUSINESSES

Dannhauser Town 553 80

Hattingspruit 51 13

Durnacoal 576 6

Emafusini 510 8

Ramaphosa 100 -

Koppie Aleen 543 -

KwaMdakane 560 -

Grand Total 2 893 107


14 769

3 091

313 165 106 179 145 1 575

501

Water Sources

FlushToilets

(ConnectedSewage)

FlushToilets

Septic Tank

ChemicalToilet

Pit Latrine(VIP)

Pit Latrine(No VIP)

BucketLatrine

Other None

2362 304

2 141 1942

12 849

33 348 683

Sanitation



Figure.12: Waste Removal Weekly

Stats SA: Census 2016 Approximately 11.5% of the population in Dannhauser has access to weekly refuse removal services. This is possibly because majority of the households are located in the rural areas which are predominantly occupied by sparsely distributed households, hence making it difficult to offer refuse removal services. However, refuse removal services have been extended to rural areas through the provision of Skip Bins which are collected on a weekly basis.

1.11.7 SOLID WASTE COLLECTION SCHEDULE Table.7 REFUSE REMOVAL DAYS ACTIVITY AREA

MONDAY BUSINESS REFUSE REMOVAL

DANNHAUSER

TUESDAY HOUSEHOLD AND BUSINESS

HATTINGSPRUIT & KOPPIE ALLEN

WEDNESDAY HOUSEHOLD DURNACOL & KWAMDAKANE

THURSDAY HOUSEHOLD DANNHAUSER

FRIDAY HOUSEHOLD AND BUSINESS

DANNHAUSER & EMAFUSINI

Dannhauser: Municipal Data Register

1.12 EXPENDITURE FOR RURAL & TARRED ROADS Table.8

YEAR TOTAL RURAL ROADS

( R )

TOTAL URBAN ROADS

( R )

GRAND TOTAL SPEND PER FINANCIAL YEAR

( R ) 2014/15 10 844 741 - 10 844 741

2015/16 2 240 000 7 000 000 9 240 000

2016/17 7 000 000 - 7 000 000

Dannhauser: MIG Expendture

Removed ByLM Once A

Week

Removed ByLM Less ThanOnce A Week

CommunalRefuse Dump

Own RefuseDump

Other No RubbishDisposal

2 377 59 217

16 264

71 1 674

Solid Waste Removal



1.13 COMMUNITY FACILITIES Table.9

COMMUNITY FACILITY ACTUAL NUMBER OF FACILITIES BACKLOG

Community Halls Kwamdakane Community Hall (Ward7), Koppie Alleen Community Hall (Ward1), Emafusini Community Hall (Ward2),

Dorothy Nyembe Community Hall (Ward9),

Verdriet Community Hall (Ward3), Dannhauser Community Hall (Ward2), and Community Hall (Ward 13)

Ward 5 x 1,

Ward 12 x 1,

Ward 4 x 1,

Ward 6 x 1,and

Ward 8 x 1

Sports Fields Emafusini Sportsfield,

Durnacol Sportsfield, and

Dannhauser Cricket Ground

Taxi Ranks Kwamdakane Taxi Rank, and

Dannhauser Taxi Rank

Recreational Parks NONE RECREATIONAL FACILITIES

REQUIRED

1.14 HEALTH FACILITIES

Table.10

Type Of Facility Community Health Center Mobile Clinics

Dannhauser LM (Servicing 13 Wards) 1 36

Dannhauser Municipality has ten clinics that are administered by the Department of Health and one Community Health Centre (CHC) in Dannhauser, which is operational. The CHC is to ensure that health services of a higher degree are accessible and closer to the people. The Department of Health further supports thirty-six mobile clinics in areas where health services are not available. An application of planning standards for health services in the area (one clinic for every 6 000 households or one clinic within a 5km radius) indicates that the Dannhauser municipality area is well provided with clinics and primary health facilities, except for a concern that some of these facilities are mobile. Some of the challenges experienced by the local communities are; The mobile clinics do not have all the necessary medical equipment and medications to treat people who

are seriously ill; The ambulances are few to attend to all emergencies; Some people pass away in their houses due to the late arrival of medical assistance; Not all areas are readily accessible due to a lack of roads and a non-conducive terrain; The mobile clinics have difficulties in reaching various settlements when it is raining due to the muddy

roads as they mainly grave and not in good condition; and Some of the farmers who on farmlands with dwellings on them, prevent the mobile clinics from entering

into their properties to attend the farm dwellers are ill.



CHAPTER 2: GOVERNANCE

2.1 INTRODUCTION TO GOVERNANCE Governance at the Municipality is made up of political and administrative governance, inter-governmental relations, public participation and corporate governance. Political governance comprises of elected Councillors, Council, Executive Council Committees, and Management Committees. The oversight of governance administration is undertaken through various administrative structure and functionaries under the guidance of the Accounting Officer (Municipal Manager) to enhance effective and efficient service delivery. Dannhauser Municipality is not a Water Services Authority (WSA), this is the function of Amajuba District Municipality, which implements water and liquid sanitation service delivery. The municipality through Intergovernmental relations meets on a regular basis with Amajuba District, provincial and national government departments together with other municipalities through structured meetings guided by the Intergovernmental Relations Act, No.13 of 2005 to enhance coordinated service delivery. Public participation refers involves the Municipality engaging the communities within its area of jurisdiction in the running of its affairs. This takes place through community meetings, izimbizo’s, as well as ward committee and ward meetings. Corporate governance entails transparency, compliance with the rule of law, accountability and upholding of the Batho Pele Principles and undertaking the objects of local government endorsed in section 152 of the Constitution 108 of 1996.

2.2 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE Political & administrative governance at the Municipality comprises of the elected Councillors, Municipal Manager and Senior Managers, respectively; they work together on a day-to-day basis in order to achieve identified service delivery goals and targets.

2.2.1 POLITICAL GOVERNANCE INTRODUCTION TO POLITICAL GOVERNANCE Dannhauser municipality has several political structures which include Full Council, Executive Committee, other Council committees and Committees established to support the Executive Committee. The Municipal Public Accounts Committee (MPAC) which is one of the Council Committees oversees the expenditure of public funds on behalf of Council and thereby ensures accountability of both the Executive Committee and administration. It further considers the Annual Report and provides Council with oversight report and its comments on the Annual Report. To ensure effective oversight the Council has further appointed the Audit Committee, which is a Committee that is made up of private individuals with expertise in the areas of finance, performance management and law to advise Council on the performance of the Executive Committee and administration with regard to financial management, risk management, performance management and legislative compliance. The Political Administrator and Municipal Manager are as depicted below;



DANNHAUSER LM COUNCILLORS Image.1

DANNHAUSER LM EXECUTIVE COMMITTEE

Image.2



2.3 COMPONENT B: GOVERNANCE OVERVIEW & COMMITTEES 2.3.1 COUNCIL COMPOSITION

Dannhauser Municipality comprises of 25 councilors (13 ward councilors and 12 Party Representatives

councilors) from various political parties. There are 14 African National Congress (ANC), 8 Inkatha Freedom

Party (IFP), 1 Economic Freedom Fighters (EFF), 1 Royal Loyal Party (RLP) and 1 Democratic Alliance (DA)

councilors.

Table.11: Councilors After August 2016 – Local Government Elections

COUNCILLOR NAME POLITICAL PARTY

1. Cllr Ngubane ZS (Honourable Speaker) ANC

2. Cllr Phakathi JP (Honourable Mayor) ANC

3. Cllr Msibi SD (ExCo) ANC

4. Cllr Ndlovu SN (ExCo) IFP

5. Cllr Nene PP (ExCo) IFP

6. Cllr Sithole SG (Exco) ANC

7. Cllr Dlamini SD ANC

8. Cllr Buthelezi MA IFP

9. Cllr Dubazana XM ANC

10. Cllr Dube NS DA

11. Cllr Nair PG IFP

12. Cllr Hlathswayo NS ANC

13. Cllr Hlathswayo VR IFP

14. Cllr Kumalo NP ANC

15. Cllr Kunene M ANC

16. Cllr Manyati NGR IFP

17. Cllr Mtlaba MN ANC

18. Cllr Mazibuko RN RLP

19. Cllr Mfusi ES ANC

20. Cllr Mkhize MS EFF

21. Cllr Mkhumane MS ANC

22. Cllr Ndaba VM ANC

23. Cllr Ngidi MA ANC

24. Cllr Radebe AN IFP

25. Cllr Sibisi SS IFP

Table.12: Councilors Until August 2016 – Local Government Elections

COUNCILLOR NAME POLITICAL PARTY

1. Cllr Ngubeni ZS (Honourable Speaker) ANC

2. Cllr Phakathi JP (Honourable Mayor) ANC

3. Cllr Ndaba VM (ExCo) ANC

4. Cllr Sibeko MA (ExCo) IFP

5. Cllr Mabanga TV (ExCo) NFP

6. Cllr Nyembe MR ANC

7. Cllr Hlongwane NS ANC

8. Cllr Buthelezi AH ANC

9. Cllr Ndlovu SN IFP

10. Cllr Mhlungu NJ AZAPO



11. Cllr Mabaso LL ANC

12. Cllr Sithole MP ANC

13. Cllr Buthelezi MA IFP

14. Cllr Radebe AN IFP

15. Cllr Shabalala MB NFP

16. Cllr Majola NM ANC

17. Cllr Ngidi MA ANC

18. Cllr Mdakane HV ANC

19. Cllr Manyathi NGJ IFP

20. Cllr Kunene ES DA

21. Cllr Nene PP IFP

During the year under review, 10 Council meetings were planned of which 8 (ordinary and special) meetings

were held.

2.3.2 GOVERNANCE COMMITTEES

The municipality had established different committees, which assists on the functioning of the Council at

different levels. Status Quo of Governance Committees

Table.13: (Council Committee Members Until Local Government Elections in August 2016)

Committee Name

Member Name Number of

Planned Meetings Number of Meetings

Held

Reason for Deviation

Executive Committee

Cllr Phakathi JP (Mayor)

8 5

Meeting did not quorate due to quorum, and also the other factor was the election which affected

the initially schedule

Cllr Ndaba VM

Cllr Sibeko MA

Cllr Mabanga TV

Corporate Services Portfolio

Committee

Mabanga TV (Chairperson)

8 7

New Council Elected

Nyembe MR

Hlongwane NS

Buthelezi AH

Ndlovu SN

Mhlungu NJ

Technical Services Portfolio

Committee

Ndaba VM (Chairperson)

8 7

New Council Elected

Maboso LL

Sithole MP

Buthelezi MA

Radebe AN

Shabalala MB

Phakathi JP (Ex Officio)

Ngubeni ZS (Ex Officio)

Community Services Portfolio

Committee

Sibeko MA (Chairperson)

8 7

New Council Elected

Majola NM

Ngidi MA

Mdakane HV

Manyathi NGJ

Kunene ES

Nene PP





Budget Steering

Committee

Phakathi JP (Chairperson)

2 2

New Council Elected

Ndaba VM

Mabanga TV

Sibeko MA

Nyembe MR


Local economic Development

and Land Resource

Committee

Nyembe MR (Chairperson)

8 5

New Council Elected Sithole MP

Majola NM

Shabalala MB

Kunene ES

Municipal Public

Accounts Committee

Nene PP (Chairperson)

8 8

New Council Elected

Nyembe MR

Shabalala MB

Kunene ES

Mhlungu NJ


Ngubeni ZS (Ex Officion)

Committee Name

Member Name Number of

Planned Meetings Number of Meetings

Held Date of Appointment

Audit and Performance Management

Committee (made up of independent individuals)

Mr B Mbange (Chairperson) 4 4 2012-2018

Mr S Ngwenya 4 2 2012-2015

Mr TC Ndlela 4 2 2013-2015

Mr SES Ngwenya 4 2 2013-2015

Mr B Dladla 4 2 2013-2015

Mr C Nciki 3 3 2015-2018

Mr M Ishmail 3 3 2015-2018

Miss Z Khanyile 3 3 2015-2018

Miss NR Sikhakhane 3 1 2015-2018

Table.14: (Council Committee Members Appointed Since August 2016 After Local Government Elections)

COMMITTEE

NAME

MEMBERS OF COMMITTEE Number of

Planned

Meetings

Number of

Meetings Held

Reason for Deviation

Executive Committee

Phakathi JP (Chairperson) Msibi SD SG Sithole Nene PP Ndlovu SN

8

3

Other meetings held by the previous Council prior to August 2016 Local Government Elections

Corporative Services Portfolio Committee

Nene PP (Chairperson) Kunene M Radebe AN Buthelezi MA Dlamini SD

8

1


Engineering Services Portfolio Committee

Msibi SD (Chairperson) Ndaba VM Dubazana XM Mkhize MS Hlathswayo VR Sibisi SS

8

1


Community Services

Portfolio

Ndlovu NS (Chairperson) Hlatshwayo NS Ngidi MA Dube NS

8

1

Other meetings held by the previous Council prior to August 2016



Committee Manyathi NGJ Mathlaba MN

Local Government Elections

Municipal Public

Accounts Committee

Ndaba VM (Chairperson) Mkhumane MS Kumalo NP

8

0


Local Economic Development Resource Committee

Sithole SG (Chairperson) Mfusi ES Mazibuko RN Nair PG Nkhumane MS

8

3


Performance & Audit Committee

Mbange B (Chairperson) Skhakane N Ncika MC Mohamed I Khanyile ZP

4

2


Risk Management Committee

Ngwenya SES (Chairperson Nkosi WB (MM) Mohapi DM (CFO) Ndlovu PJ (IDP Manager) Narothum S (Manager Corporate

Services) Naidoo S (Manager Community Services) Luckan A (Internal Audit Executive) Moodely K (Manager Internal Audit)

2.3.3 COMMITTEES TO ASSIST THE EXECUTIVE COMMITTEE The following Committees have been established in terms of section 80 of the Structures Act to assist the Executive Committee:

2.3.3.1 The Corporate Services Portfolio Committee

This Portfolio Committee is charged with the responsibility for efficient and effective Council and Committee support services, efficient and effective human resources management, information and communication technology management and legal services.

2.3.3.2 The Financial Services Portfolio Committee

This Portfolio Committee is responsible for the matters relating to the transparent, efficient and effective management of municipal finances which includes in the main treasury and budget management, supply chain management, revenue and expenditure management, as well as financial control and cash management.

2.3.3.3 The Engineering Services Portfolio Committee

This Portfolio Committee is responsible for municipal infrastructure planning, financing, development and maintenance landfill site management as well as water, sanitation, electricity, roads and storm water provisioning and management.

2.3.3.4 The Community Services Portfolio Committee

This Portfolio Committee is responsible for waste management, libraries, cemeteries and crematoria services, public safety and disaster management as well as traffic law enforcement services.

2.3.3.5 The Planning & Local Economic Development Portfolio Committee

This Portfolio Committee deals with integrated development planning matters, municipal markets, forestry and tourism, local economic development, environmental health as well as human settlements development and management.



Table.15: Status Quo of Intergovernmental Relations Structures

Committee

Name Purpose Planned Output Actual Performance

1. Mayors Forum To discuss governance issues in the district

Active participation in the District Mayors Forum, and attending all planned and schedule quarterly meetings

One (1) meeting materialized. Some meetings did not quorate due to poor attendance from other family municipalities

2. Municipal Managers Forum

To discuss Administrative issues in the district

Active participation in the District MMs Forum, and attending all planned and schedule quarterly meetings


3. Local Labour Forum

To discuss employee issues

Ten (10) LLF planned for the financial year. (3 in q1; 2 in q2; 2 in q4 and 3 in q4).

Four (4) meetings held.

4. Chief Financial Officers Forum

To discuss the financial matters in the district

Active participation in the District CFOs Forum, and attending all planned and schedule quarterly meetings


5. Corporate Services Forum

To discuss the IGR, Governance and other administrative strategic issues

Active participation in the District CORPS Forum, and attending all planned and schedule quarterly meetings

All quarterly meetings held and attended (4 meetings). Forum fully functional.

6. Community Services Forum

To discuss the matters concerning the Community Services related in the district, for cooperative and alignment

Active participation in the District COMMS Forum, and attending all planned and schedule quarterly meetings


7. Technical Services Forum

To discuss all Technical Services related issues, Service Delivery, Planning for support and alignment

Active participation in the District TECHS Forum, and attending all planned and schedule quarterly meetings


8. Planners Forum For coordination of the Planning matters as per

Active participation in the District Planners Forum, and attending all planned and schedule quarterly meetings


9. IDP District Forum

For planning and alignment on issues concerning the municipalities in the district

Active participation in the District IDP Forum, and attending all planned and schedule quarterly meetings


10. Agricultural Forum for Local Economic Development (AFLED)

Forum for coordination and alignment on LED

Active participation in the AFLED, and attending all planned and schedule quarterly meetings

Not all quarterly meetings held and attended. Only two (2) meetings materialized. Forum not fully functional.

11. District Technical Advisory Committee (DTAC)

Forum PMS, which is coordinated by the District Municipality and COGTA KZN, PMS Section

Active participation in the DTAC, and attending all planned and schedule quarterly meetings


12. Internal and Audit Committee Forum

Forum for Internal Audit and Audit Committee coordinated by the District Municipality

Active participation in the District IA and AC Forum, and attending all planned and schedule quarterly meetings

Not all quarterly meetings held and attended. Only two (2) meetings materialized. Forum not fully functional.

13. Disaster Management Advisory Forum

For coordination and management on the Disaster Management issues and alignment

Active participation in the District Disaster Management Advisory Forum, and attending all planned and schedule quarterly meetings




2.4 PERFORMANCE & FINANCE AUDIT COMMITTEE

Dannhauser Municipality had in place a joint audit committee, a committee that deals with both financial and

performance management matters. This Committee was shared with the family District Municipality. The

Committee consisted of five (5) independent members as per table below.

Table.16: Audit and Performance Management Committee Membership 2016 (Date of Appointmeny)

Name of Member Position Number of

Meetings Held

Number of Meetings

Each Member Attended Date of Appointment

Mr. B Mbange Chairperson 3 3 2015-2018

Mr C Nciki Member 3 3 2015-2018

Miss Z Khanyile Member 3 3 2015-2018

Mr M Ishmail Member 3 3 2015-2018

Miss NR Sikhakhane Member 3 1 2015-2018

As in the tables above, four (4) audit committee meetings were held in the year under review. It must be noted

that the Municipality was initially in the shared service arrangement on Performance and Financial

Management Audit Committee with the Amajuba District Municipality from 2008 to 2015, and the

Municipality then resolved to terminate the arrangement and establish its own Committee as from 2015

financial year onwards. The new Committee comprises of five members which was appointed for a period of 3

years.

2.5 POLITICAL DECISION-MAKING The municipality has been and is still compliant with the Rules and Procedures of Council and its Committees together with the powers and functions that the Council may delegate and those it may not delegate, and the manner in which the votes that are required when certain matters are to be decided on. All other questions before the Council are decided by a majority of the votes cast and in the case of an equality of votes, the Councillor presiding (the Speaker) exercises a casting vote in addition to a vote he or she has as a Councillor. In making decisions on the following matters, majority votes are required from the number of Councillors, the matters relate to:-

(a) the passing of by-laws; (b) the approval of budgets; (c) the imposition of rates and taxes, levies and duties; (d) the raising of loans; and (e) the rescission of a council resolution; and any other matter prescribed by legislation.

Before the Council takes a decision on any of the following matters it first has to obtain the recommendations of the Executive Committee:-

(a) the passing of by-laws; (b) the approval of budgets; (c) the imposition of rates; (d) the raising of loans; (e) the approval of an integrated development plan for the Municipality and any amendment to that

plan; (f) the approval of a performance management system; and (g) the appointment and conditions of service of the Municipal Manager and a head of department of the

Council.”



2.6 ADMINISTRATIVE GOVERNANCE INTRODUCTION TO ADMINISTRATIVE GOVERNANCE The roles and responsibilities of the Municipal Manager are comprehensively set out in Section 55 of the Municipal Systems Act and responsibilities of the Municipal Manager as Accounting Officer is set out in Chapter 8 of the Municipal Finance Management Act, 56 of 2003. The Municipal Manager’s office has assumed direct responsibility for Communications and Corporate Strategy as well as the drafting, management and implementation of Council’s Integrated Development Plan [IDP]. The Internal Audit unit is also located in the Municipal Manager’s office and ensures compliance with municipal legislation. In addition there are four Departmental Units that mirror the committee portfolios that also report to the Municipal Manager. These Business Units, each headed by a Senior Manager, ensure that services are delivered to the people within the municipal jurisdiction in fulfillment of the Integrated Development priorities of the Municipality. They are: Municipal Manager Finance & Budget Services; Corporate Services; Planning & Local Economic Development; Technical Services; and Community Services. The municipal manager and his team of executive managers hold weekly Management meetings to discuss key strategic service deliverable matters, and to offer guidance on the achievement of IDP goals.

2.7 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

2.7.1 OVERVIEW

During the 2016/2017 financial year, the municipality had increased in the number of wards it has, from 11 to 13 wards. The additional two wards was a result of splitting larger existing wards and forming two (2) from the splits. After Local Government Elections in August 2016 and the inauguration of the new council, all ward committee meetings were fully functional by the end of February 2017. The municipality complies with the Municipal Systems Act, 32 of 2000; Sections (5), (16), (17) (18), (19), (20), (21), (22) and (42); and further adheres to Chapter’s (6) & (7) of the MSA. These sections give directives to the municipality to engage with the community within the municipal jurisdiction to participate in the development, implementation and review of the municipality’s performance management system and in setting key performance indicators and performance targets. The municipality takes into consideration the concerns of its local community through each elected ward councilor. Each ward councilor engages with their ward community through “Ward Committee” meetings held on a regular basis. The Municipality aligns is public participation activities in line with the Municipal Structures Act, 117 of 1998, as amended; Sections 73 & 74 have been extracted to shed light on Ward Committees;

Section.73 Establishment of Ward committees (1) If a metro or local council decides to have ward committees, it must establish a ward committee for each

ward in the municipality. (2) A ward committee consists of-

(a) the councillor representing that ward in the council, who must also be the chairperson of the committee; and (b) not more than 10 other persons.

(3) A metro or local council must make rules regulating-



(a) the procedure to elect the subsection (2) (b) members of a ward committee, taking into account the need- (i) for women to be equitably represented in a ward committee; and (ii) for a diversity of interests in the ward to be represented. (b) the circumstances under which those members must vacate office; and (c) the frequency of meetings of ward committees.

(4) A metro or local council may make administrative arrangements to enable ward committees to perform their functions and exercise their powers effectively. Section.74 (Functions and Powers of Ward Committees) A ward committee-

(a) may make recommendations on any matter affecting its ward- (i) to the ward councillor; or (ii) through the ward councillor, to the metro or local council, the executive committee, the executive mayor or the relevant metropolitan subcouncil; and (b) has such duties and powers as the metro or local council may delegate to it in terms of section 32.

2.8 PROMOTION OF PUBLIC PARTICIPATION MECHANISMS In the promotion of public accountability and participation members of the public are invited to attend all meetings of the Council and its committees and participate through the Mayoral Budget and Integrated Development Plan (IDP) Izimbizo’s. The development of the draft budget is publicized through the Izimbizo’s in order to provide feedback to the community with regards to the implementation of projects in the current financial year and to further seek a clear understanding of the needs of the community in order to provide input for the new financial year. A second Izimbizo is held once the draft budget has been developed in order to inform the public of key elements in the proposed budget and responses to their needs.

2.8.1 PUBLIC MEETINGS 2.8.1.1 COMMUNICATION, PARTICIPATION AND FORUMS The Draft Process Plan was approved by Full Council and published for public comment during the month of July 2016. The Process Plan is a guideline that indicates the different activities and key milestones which are reflected in terms of the IDP review and PMS and Budget implementation, monitoring and evaluation. The municipality has a structured program of public participation. This program is outlined by the Process Plan and forms the basis of the municipal public participation process. The following are forms of citizenry participation that are utilized by the Municipality to ensure the citizen and stakeholders voice are accommodated in the planning, execution and review of the IDP, Budget and PMS processes: Executive Committee Meetings; Full Council Meetings; Intergovernmental Forum Meetings (Sector Departments); Ward Committee Meetings; Management Meetings; Integrated Development Planning Forum Meetings; Local Economic Development Meetings; Various Municipal Support Committee Meetings (Headed by Chairpersons); Izimbizo Public Meetings; Complaints Register; Operation Sukuma Sakhe (War Rooms) Meetings; Youth Forums Meetings; and Elderly Citizens Forums.



The above various forms of public participation engagements are conducted throughout the year specifically at an operational level and then some of them are organized on a fortnightly, monthly, quarterly and annually as reflected in our Process Plan.

2.9 COMPONENT D: CORPORATE GOVERNANCE 2.9.1 OVERVIEW OF CORPORATE GOVERNANCE The municipality is very strict with regards to Corporate Governance, by ensuring that governance is upheld the municipality thus ensures the proper use of public funds in all its dealings. Compliance in operational activities is applied as follows;

2.9.2 FRAUD AND ANTI-CORRUPTION STRATEGY LEGISLATIVE PROVISIONS Chapter 2 of Section 195 of the Constitution of the Republic of South Africa, Act 108 of 1996 [as amended] which deals with the Bill of Rights. The Constitution describes one of the values of founding provisions as Human Dignity, the improvement of the quality of life of all citizens. Section 195 of the Constitution of the Republic of South Africa, Act 108 of 1996 [as amended] which provides normative basic value principles for public administration including a high standard of professional ethics must be promoted and maintained. In terms of Section 62 of the Municipal Finance Management Act, Act No. 56 of 2003 (MFMA) the Accounting Officer of a municipality is responsible for managing the financial administration of the municipality and must for this purpose take all reasonable steps to ensure that unauthorized, irregular or fruitless and wasteful expenditure and other losses are prevented. The Internal Audit Unit reviews the implementation of the Action plans/ Activities on a quarterly basis and report to the Risk Management Committee and Audit Committee.

2.9.3 RISK MANAGEMENT COMMITTEE - MUNICIPALITY COMPLIANCE

Risk management forms an important part of the upkeep of governance and compliance; this minimizes the levels of financial and asset losses in the municipality’s custodian. All economic and financial transactions must be undertaken in relation to the legislations governing the activities of the municipality. The Accounting Officer and Heads of Departmental Units are responsible for ensuring that operational activities are undertaken legally. The Risk Management Committee is governed by a Risk Management Committee Charter. The Risk Management Committee is a sub-committee of the Audit Committee. Risk Management is a standing item in the Audit Committee Agenda meetings, and the Audit Committee report to Exco on quarterly basis include Risk Management. All reports on Risk Management are also presented to all Portfolio Committees & MPAC. Legislative Provisions In terms of Section 62 (1) (a) to (d) of the Municipal Finance Management Act, Act No. 56 of 2003 (MFMA) the Accounting Officer of a municipality is responsible for managing, the accounting officer of a municipality is responsible for managing the financial administration of the municipality, and must for this purpose take all reasonable steps to ensure—

(a) that the resources of the municipality are used effectively, efficiently and economically; (b) that full and proper records of the financial affairs of the municipality are kept in accordance with any

prescribed norms and standards; (c) that the municipality has and maintains effective, efficient and transparent systems—

(i) of financial and risk management and internal control; and (ii) of internal audit operating in accordance with any prescribed norms and standards;

(d) that unauthorised, irregular or fruitless and wasteful expenditure and other losses are prevented;



Section 165 of the MFMA requires the internal audit unit to advise the Accounting Officer and to report to the Audit Committee on matters relating to among other things, risk and risk management.

2.9.4 INTERNAL AUDIT UNIT – MUNICIPALITY COMPLIANCE Dannhauser Local Municipality complies with the MFMA Section (165) with regards to governance compliance, the following have been adhered to; (1) Each municipality and each municipal entity must have an internal audit unit, subject to subsection (3). (2) The internal audit unit of a municipality or municipal entity must—

(a) prepare a risk-based audit plan and an internal audit program for each financial year; (b) advise the accounting officer and report to the audit committee on the implementation of the

internal audit plan and matters relating to—

(i) internal audit; (ii) internal controls; (iii) accounting procedures and practices;

(iv) risk and risk management; (v) performance management; (vi) loss control; and (vii) compliance with this Act, the annual Division of Revenue Act and any other applicable legislation; and

(c) perform such other duties as may be assigned to it by the accounting officer.

(3) The internal audit function referred to in subsection (2) may be outsourced if the municipality or

municipal entity requires assistance to develop its internal capacity and the council of the municipality or the board of directors of the entity has determined that this is feasible or cost-effective.

2.9.5 AUDIT COMMITTEE – MUNICIPALITY COMPLIANCE The municipality has an External Audit Committee that ensures governance compliance, this is as per MFMA Section (166). (1) Each municipality and each municipal entity must have an audit committee, subject to subsection (6). (2) An audit committee is an independent advisory body which must—

(a) advise the municipal council, the political office-bearers, the accounting officer and the management staff of the municipality, or the board of directors, the accounting officer and the management staff of the municipal entity, on matters relating to—

(i) internal financial control and internal audits; (ii) risk management; (iii) accounting policies; (iv) the adequacy, reliability and accuracy of financial reporting and information; (v) performance management; (vi) effective governance; (vii) compliance with this Act, the annual Division of Revenue Act and any other applicable legislation; (viii) performance evaluation; and (ix) any other issues referred to it by the municipality or municipal entity; (b) review the annual financial statements to provide the council of the municipality or, in the case of a

municipal entity, the council of the parent municipality and the board of directors of the entity, with an authoritative and credible view of the financial position of the municipality or municipal entity, its efficiency and effectiveness and its overall level of compliance with this Act, the annual Division of Revenue Act and any other applicable legislation;

(c) respond to the council on any issues raised by the Auditor-General in the audit report;



(d) carry out such investigations into the financial affairs of the municipality or municipal entity as the council of the municipality, or in the case of a municipal entity, the council of the parent municipality or the board of directors of the entity, may request; and

(e) perform such other functions as may be prescribed. Section 78 of the MFMA outlines the general responsibilities of Senior Management and other officials of the Municipality. The responsibilities of these officials have a direct bearing in financial and risk management, governance and systems of internal controls. The MFMA has established the legal framework for risk management in the local government sphere that enforces risk management practice. Risk Management is about managing a potential inability by the municipality to fulfill the requirements of the Constitution. It is for this reason that the Constitution of the Republic of South Africa is the fundamental foundation for risk management.

2.10 SUPPLY CHAIN MANAGEMENT 2.10.1 OVERVIEW OF SUPPLY CHAIN MANAGEMENT (SCM) 1.1 The Municipality’s Supply Chain Management unit is the interdepartmental support unit that ensures that

internal departments procure what is required for use on a monthly basis in order to fulfill service delivery.

1.2 The supply chain management policy for the year 2016/2017 has been in place and is in compliance to SCM Regulation 3 (1) (a). All procurement processes and procedures are adhered to in line with the MFMA and PFMA.

1.3 An SCM Procurement plan was developed and implemented throughout the year and quarterly reports on implementation were submitted to MANCO, Exco and Council.

1.4 The SCM regulations prescribed are complied with through a system of demand, acquisition, logistics, disposal, risk and performance management.

2.11 RISK MANAGEMENT 2.11.1 Risk Management & Performance Management A SCM policy and procedures database that ensures compliance and monitoring of compliance with the SCM regulations and processes has been developed and implemented.

2.11.2 Monitoring and Contract Administration The municipality has some Service Level Agreements (SLA’s) in place with various service provider stakeholders that commenced in 2015/2016. The SLA’s are developed by the Corporate Services Unit and then given to the departmental heads which the service provider will be contracted to. Once the HOD is comfortable with the SLA, the Accounting Officer reviews the SLA based on the “Terms of Reference” agreed with the Service Provider and that would have been adopted by Council prior to appointment. The proper management of ensuring implementation by the service provider is monitored and evaluated by the relevant HOD and then reported to the Accounting Officer. The MSA, 32 of 2000, Section (84) (1), further guides and empowers the municipality on matters of SLA agreements, and reads as follows; “ After a prospective service provider has been selected, the municipality must on the basis of the bidding documents, and any addenda, amendments or variations thereto that were provided to all the bidders, negotiate the final terms and conditions of the service delivery agreement with the preferred service provider and, if successful, enter into such an agreement with the selected service provider on the terms and conditions specified in the bidding documents, as modified or supplemented in the negotiations, if such modifications do not materially affect the bid in a manner which compromises the integrity of the bidding process”.



The municipality monitors the performance of the contracted service provider in relation to the “Terms of Reference” deliverables. This is done through weekly updates undertaken in MANCO meetings. A written progress report is submitted by the service provider based on the agreed time frames in their respective SLA’s. Each contracted service provider is benchmarked in terms of performance and is reported in the SDBIP and Annual Performance Report. In terms of section 116 (2) & (3) of the MFMA (Contracts and Contracts Management) the accounting officer of a municipality must – The accounting officer of a municipality or municipal entity must—

(a) take all reasonable steps to ensure that a contract or agreement procured through the supply chain management policy of the municipality or municipal entity is properly enforced

(b) monitor on a monthly basis the performance of the contractor under the contract or agreement; (c) establish capacity in the administration of the municipality or municipal entity—

(i) to assist the accounting officer in carrying out the duties set out in paragraphs (a) and (b); and (ii) to oversee the day-to-day management of the contract or agreement; and

(d) regularly report to the council of the municipality or the board of directors of the entity, as may be appropriate, on the management of the contract or agreement and the performance of the contractor.

To enhance contract management, the municipality reports and undertakes the following; Stakeholder Management Engaging with all relevant stakeholders contracted to the municipality during and closure of their contractual obligations. Compliance Monitoring & Reporting Continuous review and reporting on contracted service provider deliverables against set benchmarks by the municipality and compliance with local government legislations and municipal policies; Supplier Performance Regular site visits and attending progress meetings which allows for systematic management of supplier performance, together with transfer of skills from the service provider to the municipal departmental units the service provider is assisting.

2.12 BRIEF OVERVIEW OF THE DEVELOPMENT OF POLICIES DURING THE 2016/2017 FINANCIAL YEAR

The municipality adopted and implemented the following policies; Table.17: Municipal Policies

POLICY DATE OF ADOPTION STATUS

Code of Conduct 2015 Implemented

HIV/AIDS Policy 2015 Implemented

HIV/AIDS Strategy 2007 Implemented

Sexual Harassment Policy 2010 Implemented

Smoking Policy 2013 Implemented

Recruitment Policy 2013 Implemented

Subsistence and Travelling Allowance Policy 2015 Implemented

Overtime Policy 2015 Implemented



POLICY DATE OF ADOPTION STATUS

Skills Development Policy 2010 Implemented

Mayoral Vehicle Policy 2013 Implemented

Supply Chain Management Policy 2015 Implemented

Employment Equity Policy 2007 Implemented

Property Rates Policy 2009/2010 Implemented

Indigent Policy 2015 Implemented

Subsistence & Travel Policy 2017 (May) Implemented

Value Added Tax Policy 2017 (May) Implemented

Petty Cash Policy 2017 (May) Implemented

Overtime & Standby Policy 2017 (May) Implemented

Expenditure Management Policy 2017 (May) Implemented

Unauthorised, Irregular & fruitless Wasteful Expenditure Policy

2017 (May) Implemented

Commitment Policy 2017 (May) Implemented

Supply Chain Management Policy 2017 (May) Implemented

Appointment of Consultants Policy 2017 (May) Implemented

Rates Policy 2017 (May) Implementation 2017/18

Draft Tariffs Policy 2017 (May) Implementation 2017/18

2.13 MUNICIPAL BY-LAW(S) The municipality currently has one adopted and published by-law, this is the “Animal Pound By-Law”, it is also currently working on other by-laws.

2.14 PUBLIC SAFETY – LAW ENFORCEMENT

The following table highlights polices services data.

Table.18: Police Service Data

Indicator 2016/2017 2015/2016

Number of road traffic accidents 241 241

Number of by-law infringements 1 390 1 391

Number of police officers in the field daily on average 3 3

Number of police officers on duty daily on average 5 4



CHAPTER 3 SERVICE DELIVERY PERFORMANCE

FUNCTIONAL AREA sdbip PER DELIVERY COMPONENTs

3.1 SERVICE DELIVERY The Local Municipality’s basic services as contained in the Municipal Indigent Policy is intended to provide norms and standards for a program to improve the lives of indigents and to improve access to FREE BASIC SERVICES. The municipality ensures that co-operation along the internal and inter-governmental structures including engagement of the community is center to address the needs of indigent households. The policy in place, thus addresses the delivery of the free basic services. The indigent policy seeks to address the problems and challenges faced by the poor within the jurisdiction. To enhance a better life for affordable basic services, the implementation of the indigent policy as the basis of providing Free Basic Services, the following has been taken into consideration; The high levels of unemployment; High numbers of low income earners below R 2 500 per month; High number of households headed by unemployed females; High number of grant dependents; and Elderly persons headed households. The Municipality’s indigent policy applies specifically to the Free Basic Services programme and incorporates i.e. free basic electricity, free basic refuse removal, while the free basic sanitation and water are implemented by Amajuba District Municipality on behalf of Dannhauser’s Indigent Register.

3.1.1 INDIGENT POLICY/SUPPORT (INCLUDING FREE BASIC SERVICES) The municipality has the an Indigent Policy and register, table below, indicates in summary how it is implemented; Table.19

CATEGORY DESCRIPTION

Property Rates Refuse Electricity

Indigents qualify, like all domestic consumers, for a reduction in the market value of the property as approved from time to time by Council, and as reflected in the applicable tariff register.

Income per household must not be more than R 3 200 per month;

Pensioners qualify for 100 % rebate;

Retired pensioners receiving a monthly income from GEPF, and other sources of above R 3 200 per month only receive 25 % discount; and

Electricity is applicable to whether one fully owns the property or the occupiers of the property who are tenants but receiving income below R 3 200 per month.

The additional submissions by applicants to be considered for registration on the indigent register apart from the above include; Owner and or occupiers of residential property; The applicant must be a South African citizen; The applicant must not be the registered owner of more than one property; The householder must be a resident of and have a registered account with the municipality

The municipality has an indigent policy in place, and has developed an indigent register therefor implementing the policy. The policy is reviewed twice per financial year, it further enables the municipality to provide free basic services to the needy. The municipality collected date on Indigent families as per the municipality’s Indigent Policy; currently the municipality is in the process of reviewing this data to ensure that the correct



information is captured and the data is updated. The municipality provides free basic services such as electricity, water, refuse and sanitation, however water and sanitation are provided by the Amajuba District Municipality. Electricity is provided by ESKOM, the municipality pays the due allocation to ESKOM as per registered indigent data that is approved by the Municipality. The indigent register allows the municipality to determine the financial needs of basic service delivery service resulting in it being able to develop a Financial Plan and Budget. The constant updating of the register will further allow for reliable cost updating for the free basic services delivery.

3.2 INTRODUCTION ANNUAL PERFORMANCE REPORT The Annual Performance Report (APR) is a legislative requirement which prescribes that the report must be submitted to the Auditor General by the 31st August annually. The Annual Performance Report, amongst other documents, will form part of the consolidated Annual Report of the Municipality which must be submitted to Council by the end of January on an annual basis. The Annual Performance Report 2016/2017 of the Municipality is divided into two (2) broad categories as follows: SECTION ONE: FUNCTIONAL AREA SERVICE DELIVERY REPORTING PER BUSINESS UNIT. SECTION TWO: ANNUAL REPORT OF THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN

2016/2017 & ANNUAL REPORT OF THE OPERATIONAL PLAN 2016/2017 During the 2016/2017 financial year, the Municipality developed as part of the reporting process on the SDBIP, a process for reporting against pre-determined objectives and Key Performance Indicators (KPI’s) that are contained in the approved Service Delivery and Budget Implementation Plan (SDBIP). The process is based on predetermined KPIs’ adopted by Council during the 2015/2016 financial year for the 2016/2017 IDP/ Budget/ PMS and SDBIP financial year. These reports and Council resolutions are available for inspection on request. During the 2016/2017 financial year, the Municipality had a S54 Municipal Manager and S56 Managers (HOD – Finance & Budget; HOD – Corporate Services; HOD – Technical Department and HOD – Community Services). The S54 & S56 managers all signed performance agreements as required by local government legislation. The Performance Management System (PMS) is a top layer Score Card which only assesses the performance of the S54 & S56 managers. The Evaluation assessment panels as prescribed by legislation to assess the Municipal Manager and Manager’s reporting directly to the Municipal Manager were constituted and were present during the assessment processes. The Service Delivery & Budget Implementation Plan (SDBIP) 2016/2017 served as a scorecard for performance management, the indicators in the SDBIP were formulated from the municipal strategic objectives and in line with the community’s inputs. In this regard for the 2016/2017 financial year the SDBIP focused on the service delivery indicators and the Operational Plan (OP) 2016/2017 focusing on operational, support and auxiliary services. The SDBIP 2016/2017 incorporated matters of Public Participation (Office of the Speaker, Office of the Mayor & Office of the Municipal Manager), and the following; Finance & Budget Department: (Financial Management, Budgeting (Planning, Implementation & Control),

Cashflow Management, Asset Management, Risk Management, Supply Chain Management, etc) Corporate Services Department: (General Administration, Fleet Management, Ward Committees, Council

Support, Policies & Procedures, Human Resources, etc)

Community Services Department: (Traffic & Parking, Cemeteries, Child Care, Area Based Management, Health and Social Services, Community Development (Parks, Waste Management, Halls, Libraries and Art Gallery) and Public Safety Enforcement and Disaster Management, etc),

Technical Services Department: (Water and Sanitation, Roads and Stormwater, Electricity, Fleet

Management and the Landfill Site) and

Planning & Local Economic Development Department: (Local Economic Development, Town Planning and Environmental Management & Human Settlements).



It also included are the Legislated Performance Indicators as regulated by the National and Provincial Departments of Cooperative Governance and Traditional Affairs (CoGTA). As prescribed by legislation, the Municipality must set and monitor key performance indicators of all municipal entities.

3.3 HIGH LEVEL PERFORMANCE OF THE MUNICIPALITY FOR THE 2016/2017 FINANCIAL

YEAR 3.3.1 ASSESSMENT METHODOLOGY

The municipality has an overall assessment of actual performance against targets set for the key performance

indicators as documented in the SDBIP is illustrated in terms of the following assessment methodology.

Table.20: Assessment Methodology

Colour Category Explanation

KPI not yet measured KPI's with no targets or actual results for the selected period

KPI not met Actual vs. target less than 75%

KPI almost met Actual vs. target between 75% and 100%

KPI met Actual vs. target 100% achieved

KPI well met Actual vs. target more than 100% and less than 150% achieved

KPI extremely well met Actual vs. target more than 150% achieved

3.3.2 KEY PERFORMANCE INDICATORS COMPARISON 2015/2016 VS 2016/2017 Figure.13

Total KPI’s: In 2015/2016 was 163, while in 2016/2017 they total 181, as per the six (6) National KPA’s.

The Increase is attributed to a greater demand by the communities to receive service delivery in various economic and social arenas.

KPI’s Achieved: In 2016/2017 the total achieved KPI’s are 146 up from the 2015/2016 KPI’s of 104 achieved, which was an upward trend of 42 KPI’s successfully achieved.

KPI’s Almost Met: In 2016/2017 a total of 7 KPI’s were Almost Met, while in 2015/2016, 28 KPI’s were Almost Met, the drop in KPI’s almost met by 20, is due to a high number of achieved KPI’s;

KPI’s Well Met & Extremely Met: In 2015/2016, Well Met and Extremely Met KPI’s were 9 and 3 respectively, totaling 12, however none were recorded in 2016/2017, management had a high number of KPI’s to address in 2016/2017 and was ensuring that all KPI’s receive equal attention. This is opposed to the lower number of KPI’s in 2015/2016.

104

28

9 3 19

146

7 0 0

28

0

20

40

60

80

100

120

140

160

Achieved Almost Met Well Met Extremely Well Met Not Met

2015/2016 2016/2017



KPI’s Not Met: In 2016/2017, KPI’s not met were 28 in total compared to the 19 in 2015/2016. The upward trend was mainly due to KPI’s that involved Sector Department Projects and others negatively affected by relocation of Community Members who were spearheading social welfare projects in wards.

Figure.14: 2016 / 2017 - KPI % (Met/Not Met/Almost Met)

3.4 BASIC SERVICE DELIVERY KEY PERFORMANCE INDICATORS – DANNHAUSER As indicated in the figure below, the municipality recorded twenty-two (22) basic service delivery KPIs’, within the 22 KPIs’, there are fifteen (15) capital project KPIs’ for 2016/2017 financial year.

Figure.15: Dannhauser - Total KPI’s Per Key Performance Area – 2016/2017

Basic Service Delivery KPI’s are mainly concentrated in the Technical Department and some with the Community Department of the municipality. In general these include the development of infrastructure, removal of solid waste, provision of electricity, provision of water & sanitation and ensuring of the up-keep of the public areas (cemeteries, parks, bus & taxi ranks, public road side clean ups, etc).

3.5 CAPITAL PROJECTS 2016/2017 – DANNHAUSER LOCAL MUNICIPALITY Dannhauser has a small municipal jurisdiction hence there are fifteen (15) capital projects, some are directly implemented through the municipality’s “Municipal Infrastructure Grant – MIG” funding, through external funding sourced from other government stakeholders through comprehensive business plans and some being implemented by sector departments based on the mandates of the sector departments. The capital projects that have been undertaken during the 2016/2017 financial year are as follows; Building of new municipal offices; - Design Plans approved; Phase.1 Buhlebomzinyathi Housing Project; - 90 houses planned for development, only 10 built;

81%

15% 4%

Key Performance %

KPIs Met KPIs Not Met KPIs Almost Met

0

20

40

60

80

100

MunicipalInstitutional

Transformation& Management

Basic ServiceDelivery

Local EconomicDevelopment

GoodGovernance &

PublicParticipation

Environmental& Spatial

Management

MunicipalFinance

Viability &Management

19 22 17

93

8 22

Total KPI's Per KPA



Phase.2 & 3 Buhlebomzinyathi Housing Project; - Stage 2 development approved as planned; Dannhauser Housing Project; - Stage 2 development approved as planned; Stein Drive Inn Housing Project; - No development due to delays by Human Settlements; Strijbank Rectification Housing Project; - No development due to delays by Human Settlements; Housing Development – Disaster relief; - 15 houses built as planned; Construction of Community Hall; - 1 Community Hall built in Ward.2 full constructed as planned; Construction of New Taxi Rank; - No development occurred due to the late appointment of a qualified

service provider; Rural Road Construction; - 8 km constructed and yet 4 km was planned for; Urban Road Construction; - 2 km constructed as planned; Electrification of Household In-Fills; - 623 households electrified and yet 1 052 houses had been planned

for, the failure to meet the target was due to a shortage of meters from Eskom; Upgrading & Maintenance of Street Lights; - 967 Street lights maintained as planned; Jojo Tanks Implementation to households; - 11 Jojo tanks and stands delivered and erected to

households without sources of water; and Provision of Mobile Child Care Facilities; - 3 Mobile Child Care facilities delivered.

3.6 GRAPHICAL REPRESENTATION OF ACHIEVEMENT, ALMOST ACHIEVED AND NON-ACHIEVEMENT – CAPITAL PROJECTS

Figure.16

It is clear from the above that the municipality is making strides with regards to achieving targets it had set; 67 % Capital Projects Achieved; 27 % Capital Projects Not Achieved; and 6 % Capital Projects Almost Achieved. Table.21: Capital Spending on 5 Largest Projects

Description

2016/2017 2015/2016

Budget (R)

Expenditure (R) % Budget

(R) Expenditure

(R) %

1. Electrification – Infills 0 0 % 18 151 904 18 047 199 99%

2. Municipal Infrastructure Grant

20 697 960 21 488 884 100% 20 422 000 20 422 000 100%

3. Small Town Rehabilitation Grant

4 834 960 4 834 960 100% 25 000 000 5 233 264 21%

4. Roads – Rural & Urban 16 374 642 13 374 692 82% 8 552 000 7 329 341 86%

5. Building of New Offices 3 000 000 3 000 000 100% 2 000 000 973 003 49%

Total R 44 907 562 R 42 698 536 95% R 74 125 904 R 52 004 807 70%

The funds listed in table.21 above were provided for through the MIG budget in the 2016/17 financial year.

Achieved 67% Almost Achieved

6%

Not Achieved 27%

BSD CAPITAL PROJECTS 2016/2017



Figure.17

Map.3: Location Of Capital Projects

3.7 OPEFRATIONAL PROJECTS 2016/2017 – DANNHAUSER LOCAL MUNICIPALITY The municipality’s operational projects differ from the capital projects, these incorporate the projects undertaken on a day to day basis in fulfillment of set annual KPIs’. Most of the operational projects are encompassed with the Technical and Community Departments. The projects impact on service delivery aspects to the various communities within the jurisdiction. The seventeen (17) operational projects indicated are those that directly and indirectly affect the community within the jurisdiction and these are as follows; Number of Households serviced with weekly refuse removal; - 1704 planned, all achieved; Number of Businesses serviced with weekly refuse removal; - 456 planned, all achieved; Number of small holdings in the outlying areas of Dannhauser CBD serviced with weekly refuse removal;

- 12 136 planned and achieved; Number of households with access to free basic services refuse removal; - 452 planned, all achieved; Number of roadblocks; - 15 planned per week, all achieved;

20 422

5 233

7 329

973

18 047

20 698

4 835

13 375

3 000

0 0

5000

10000

15000

20000

25000

Municipal InfrastructureGrant

Small Town Rehabilitation Roads (Rura & Urban) Building New MunicipalOffices

Electrification In-Fills

2015/16 2016/17



Number of jobs created through EPWP; - 143 planned, all achieved; Number of jobs created through CWP; - 1 100 planned, all achieved; Number of students sponsored through bursaries; - 13 planned, all achieved; Number of graduates placed in different companies; - 11 planned, all achieved; Number of meetings held for senior citizens; - 4 planned, none achieved; Number of events held for senior citizens; - 1 planned, and achieved; Number of meetings held for children, women & disabled persons; - 4 planned, none achieved; HIV / AIDS community meetings and programs; - 4 planned, none achieved; Umkhosi woMhlanga meetings; - 1 planned and achieved; AFLED meetings attended; - 4 planned and achieved; Ward Committee meetings held; - 52 planned and achieved; and Animal Pound By-Law Gazetting; - Planned for gazetting by 30 November 2016, and achieved. Out of the seventeen (17) projects, 14 were achieved and 3 were not achieved. The projects not achieved was as a result of either community members who were part of the committees having relocated thus causing no quorum for any decisions to be undertaken. The municipality has thus undertaken to aid the community members to form new committees so that programs can be rolled out. GRAPHICAL REPRESENTATION OF ACHIEVEMENT, ALMOST ACHIEVED AND NON-ACHIEVEMENT – OPERATIONAL PROJECTS Figure.18

3.8 MEASURES UNDERTAKEN AS PER S46 OF THE MUNICIPAL SYSTEMS ACT TO IMPROVE PERFORMANCE

During the 2016/2017 financial year a number of measures were undertaken as per S46 of the Municipal Systems Act to improve the overall performance of the Municipality in order to ensure that the municipality strives to obtain a clean or unqualified audit. The municipality adopted the “SMART” principle in developing its Service Delivery Budget and Implementation Plan 2016/2017 KPIs, and in so doing, the number of KPIs’ increased from 163 in 2015/2016 financial year to 181 in 2016/2017 financial year. The increase was due to additional service delivery requirements by the community, and this led management to strategically breaking down each delivery requirement so that implementation can be monitored and evaluated per KPI. It is important to note that, as much as the overall achievement of KPIs’ was high in 2016/2017 financial year, management and staff worked relentlessly as there is a shortage of staff within the structures of the municipality. The Portfolio’s of Evidence to substantiate the achievement of KPIs’ are available per quarter per departmental unit as per the SDBIP quarterly objectives. To increase the level of performance by the municipality, the following actions were undertaken;

82%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Achieved Not Achieved

OPERATIONAL PROJECTS 2016/2017



MEASURES UNDERTAKEN TO IMPROVE PERFORMANCE IN THE 2016/2017 FINANCIAL YEAR Table.22

NUMBER DEPARTMENT RESPONSIBLE

PERSON RESPONSIBLE

ACTION TAKEN STATUS REASON FOR DEVIATION

CORRECTIVE MEASURE

1 Office of the Municipal Manager

Mr W.B Nkosi (MM)

Upon the completion of the 2015/16 Audit by the Auditor General (A.G), the Office of the MM conducted a review of the SDBIP & OPMS and rectified the findings presented. In the 2016/17 financial year, the KPA’s were aligned to the IDP Municipal Strategic Objectives and the KPI’s were drawn from the identified Objectives, ensuring that there were deemed SMART (Specific, Measurable, Attainable, Realistic and Time Specific. The report review by Internal Audit noted areas to be addressed and these have been addressed.

Completed N/A N/A


Mr W.B Nkosi (MM)

The MM has set up controls to ensure that the monthly and quarterly reporting are in line with the SDBIP. The MM has instituted an Action Plan for financial and non-financial activity reporting in line with Performance Management KPI’s and through Steering Committees.

Completed N/A N/A


Mr W.B Nkosi The Municipality is complying with the Municipal Systems Act, the Act provides that quarterly reports based on the SDBIP must be produced to bench mark performance in achieving the targets. In ensuring that this legislative prescriptive is attained, the municipality through its MANCO and EXCO meetings review each department’s performance, recommendations for corrective measures are made were targets are not being met. The meetings have made it possible for the SDBIP & Operational Performance (OP) to be attained. The MM and all respective Heads of Departments (HOD’s) are involved in the process and meetings.

Completed N/A N/A

4 Internal Audit Once the SDBIP, OP, performance assessments and reports have been completed, they are forwarded to the Internal Audit unit for auditing. The findings are then presented in the Internal Audit findings and the submitted to Management for comments.

In Progress N/A N/A

5 IDP Manager & PMS

Mr P.Ndlovu The IDP Manager who is responsible for the PMS due to short staffing in the organization, ensures that there is continuous improvement on compliance of the SDBIP and OP, and that all legislative prescripts are abided to.

In Progress N/A N/A


Mr W.B Nkosi The MM is continuously providing a strategic oversight of compliance, and has recommended that training on how to develop KPI’s using the SMART Principle, how POE files are correctly updated with supporting documentation as per the SDBIP is undertaken.

In Progress N/A N/A



SECTION 1: FUNCTIONAL AREA SDBIP REPORTING PER BUSINESS UNIT 3.9 COMPONENT A: INFRASTRUCTURE SERVICES INTRODUCTION TO WATER SERVICES Amajuba District Municipality is the Water services Authority over Dannhauser Local Municipality, whereby this Water Services Authority was empowered to perform the functions and exercise the powers referred to in Section 84(1) (b) & (d) of the Municipal Structures Act (117 of 1998) which provides for the provision of potable water supply and domestic waste-water & sewage disposal systems sanitation systems. In terms of Section 11 of the Water Services Act (108 of 1997), every Water Services Authority is obligated to ensure the adequate sustainable access to water and sanitation to all consumers within their area of jurisdiction. The authority of the District Municipality is further enshrined in the Constitution 108 of 1996, Section 156 & 229, and read in line with the Municipal Structures Act (117 of 1998) section (83) (3). Dannhauser Local Municipality integrates with the District Municipality through the Intergovernmental Relations Act, through the obligations to be fulfilled by the District in the Structures Act, Section (83)(3) (a) to (d), but Dannhauser has no authority to undertake any implementation of water & liquid sanitation services to households, businesses, and the rest of the community. All licensing of water and liquid sanitation related activities for Dannhauser are undertaken by the District.

3.9.1 ACHIEVEMENTS WATER Piped Water Inside Dwelling: By 2016, 14 769 out of 20 844 households in Dannhauser municipality had

piped water inside their dwelling units, this was a significant jump from the approximately 11 100 households in 2011; and

Standpipes: Amajuba District Municipality, through the drought relief programme, has implemented some standpipe projects in the areas of Steildrift (Annievale, Kiel Keel and Nelly valley), Emfundweni, Fairbreeze, Eastbourne Farm Extension and Ubuhlebomzinyathi

Figure.19: Household Water Sources


14 769

3 091

313 165 106 179 145 1 575

501

Water Sources



3.9.2 WATER QUALITY & COMPLIANCE DANNHAUSER – 2016/2017

3.9.2.1 WATER QUALITY PERFORMANCE – WWTP – 2016/2017 Table.23

3.9.2.2 POTABLE WATER QUALITY – 2016/2017

Table.24

3.9.2.3 SANS 241:2011 PERFORMANCE INDICATORS (AMAJUBA WSA) – DANNHAUSER LOCAL MUNICIPALITY

A total of 68 samples were submitted to the lab for analysis, all of the samples were for compliance purpose. The results in table.25 indicate that no microbiological failures have been experienced in the potable water supplied within the three areas indicated;

Amajuba WWTP Non-Compliant variables to DWAF General Effluent Standards

Sample /

Sample Point

COD Suspended

Solids Ammonia Nitrate Phosphate E. Coli

Durnacol 4/4 Compliant 4/4 Compliant 4/4 Compliant 2/4 Compliant 3/4 Compliant

2/4 Compliant

AMAJUBA WSA – DANNHAUSER LOCAL MUNICIPALITY

Water Purification

Works

Compliance with

SANS 241:2011

Constituent

Variable for

Meeting

Standard

No of

samples

tested

No. of samples

failed Reasons for failure Action Taken

Waterval Prison Reservoir / Alcockspruit / Header Tanks

√

x

√

Turbidity >1

NTU

12

1

All the failures were turbidity

failures at various points.

Chlorine dosage at

the storage reservoir

should be increased.

Dannhauser √ x (Op) √ Turbidity >1

NTU 20 14

The samples failed on operational

limit turbidity of 1 NTU but

complied with the aesthetic turbidity

of 5 NTU.

Durnacol √ x (Op) √ Turbidity >1 12 6 The samples failed on operational

turbidity of 1 NTU.

Communication with

the reticulation points

should be made to

curb the failures.

Hattingspruit Reservoir / Reticulation

√

x

√

Turbidity

>1NTU

8

3

1turbidity failure which compiled

with the aesthetic compliance of 5.

Investigate if there is

a water storage before water gets to

the tap.



Table.25

WTP & Supply

Areas

Risk defined

health (Acute or

Chronic)

Risk defined

Operational (Final to

Distribution)

Acute Health - 1

Microbiological

(E. coli)

Acute Health

Chemical

Chronic Health

Chemical

Aesthetic

Hattingspruit 100%

63% 100%

100%

100%

100%

Dannhauser 100% 25% 100%

100%

100%

100%

Durnacol 100% 33% 100%

100%

100%

100%

3.9.2.4 Planned Water Supply Activities To Dannhauser Households – Amajuba District Water Supply Master Plan Implementation – 2016/2017

Table.26

Water Uses By Sector Water Loss due to leaks Water Infrastructure Repairs & Maintenance

Town / Area Name Raw Water Source

Water Treatment

Works

Present Demand Ml/day (includes Buffalo Flats

Water Scheme Completed 2014, allowed for 150l/d

household standpipes and house connections, 30% for

losses & commercial)

Future Demand Ml/day (includes Buffalo Flats Water Scheme Completed, allowed

for 360l/d, household standpipes and house

connections, 30% for losses & commercial)

Dannhauser including Emadlangeni

Ntshingwayo Dam

Dannhauser WTW

1000 1151

Durnacoal Ntshingwayo Dam

Durnacoal WTW 0,852 0,852

Hattingspruit Tom Worthington Dam

Biggarsberg 0,174 0,174

Alcockspruit/ Koppie Alleen

Ntshingwayo Dam

Ngagane WTW 0,111 0,267

Buffalo Flats Ntshingwayo Dam

Ngagane WTW 1,415

3,397

Ngagane (part of Buffalo Flats)

Ntshingwayo Dam

Ngagane WTW 1,800 4,321

Total 5,353 10,161



3.9.2.5 PROPOSED WATER INFRASTRUCTURE DEVELOPMENT IMPLEMENTED – DANNHAUSER LOCAL MUNICIPALITY (AMAJUBA DISTRICT WATER SERVICE PLAN)

The proposed regional scheme will require:

The upgrading of Ngagane WTW by 5 Ml/day plus growth for Dannhauser Municipality;

A new pump station to pump water from Ngagane WTW to a new reservoir near Dannhauser;

A 27 km long rising main from Ngagane WTW to the new Reservoir near Dannhauser;

A new 7,5 Ml reservoir near Dannhauser;

A new 6 km long gravity main between the new reservoir near Dannhauser and the existing Dannhauser

and Durnacol Reservoirs; A new 14 km long gravity main from the new Reservoir near Dannhauser to the Annieville Reservoir in

Buffalo Flats; and A new 8 km long gravity main to Hattingspruit (this main will continue for a further 16 kms on to Dundee).

3.9.2.6 SANITATION SERVICES Liquid sanitation is undertaken by Amajuba District Municipality, and the funding portion which is used for maintenance and infrastructure development is transferred from Treasury to the District on behalf of Dannhauser. The key initiative is to provide basic sanitation to formal and informal areas and the appropriate sanitation services to low, middle and high income communities. Not all communities can have water borne sewerage because of geographic setting. Dannhauser has informal households in deep rural areas and these rely on ventilated pit-latrines and not reticulation systems. The dispersion of the households makes it impossible to connect reticulation systems, and hence standalone pit latrines are cost-effective. As Per Census 2016 data, about 2 666 flush toilets are connected to a sewerage system and septic tank. This is negligible adjustment upwards from 2 341 in 2011. The greater population utilizes Pit Latrine toilets without ventilation, this is highly evident in the rural cluster settlements.

3.9.2.7 SOLID WASTE MANAGEMENT This is the responsibility of the municipality. Solid waste management is funded through the Equitable Share Allocation grant by Treasury through the Division of Revenue Act. A challenge however still remains, as the allocation for solid waste management did not meet the current levels of demand in 2016/17 financial year.

3.9.2.7.1 ACHIEVEMENTS 2016/2017 – SOLID WASTE MANAGEMENT 1 704 Households serviced weekly; 456 Businesses serviced weekly; 12 136 Small holdings outlying Dannhasuer CBD / Urban Areas serviced weekly; and 452 Indigent Households serviced weekly.

3.9.2.7.2 Solid Waste Management Equipment

Table.27: Equipment Used For Solid Waste Management

RESOURCE QUANTITY ACTIVITIES WORK SCHEDULE

Refuse truck- NDH 1377 1 Refuse collection in Wards According to work schedule

Massey Fergusson Tractor- NDH 2006

1 Cut grass (connected with slasher) Daily

Fiat tractor- NDH 1282 1 Transports skip bins Daily

Front end loader- NDH 1158 1 Compacts waste at the landfill site Daily

Isuzu bakkie- NDH 2479 1 Supervision Daily

Skip Bins 60 Waste collection Daily



3.9.3 GRASS CUTTING Dannhauser as part of its solid waste program through the use of EPWP and CWP participants, undertakes grass cutting in public areas and disposes of the grass. In the financial 2016/2017, a total of 143 jobs were created through EPWP and 1 100 through CWP. The following was achieved in 2016/17;

3.9.3.1 GRASS CUTTING SCHEDULE

Table.28

GRASS CUTTING DAYS ACTIVITY AREA

MONDAY Grass Cutting Newtown/White City

TUESDAY Grass Cutting Southpark/Emafusini Area

WEDNESDAY Grass Cutting Durnacol (No.7, No.3, Jacaranda, Targo Village, Tawain And Skomplaas)

THURSDAY Grass Cutting Hattingspruit (Ramaphosa Area And Central)

FRIDAY

Grass Cutting Dannhauser (Cbd, Cemeteries And Sportsfield)

TUESDAY Household And Business Hattingspruit & Koppie Allen

WEDNESDAY Household Durnacol & Kwamdakane

THURSDAY Household Dannhauser

FRIDAY Household And Business Dannhauser & Emafusini

3.9.3.2 NUMBER OF TIMES GRASS CUTTING OCCURS IN A MONTH

Table.29

AREAS HOUSEHOLD BUSINESS Dannhauser Town 553x4 =2212 80x8 = 640

Hattingspruit 51x4 = 204 13x4 = 52

Durnacoal 576x4 = 2304 6x4 = 24

Emafusini 510x4 = 2040 8x4 = 32

Total= 6760 Total= 748

GRAND TOTAL= 8256

3.9.3.3 EQUIPMENT USED FOR GRASS CUTTING

Table.30 RESOURCE QUANTITY ACTIVITIES WORK SCHEDULE

Massey Fergusson Tractor- NDH 2006

1 Cut grass( Connected with slasher) Daily

Foton tractor 1 Cut grass ( Connected with slasher) Daily

UD truck- NDH 2539 1 Transports workers (Grass cutting) Daily

Isuzu bakkie- NDH 2479 1 Supervision Daily

Brush cutters (STHL) 29 Grass cutting Daily

Self-Propelled Mowers (Kudu)

4 Grass cutting (Pavements and flat area) Daily (Seasonal)

Ride-on Mower 1 Grass cutting (Sport-fields and flat areas Daily ( Seasonal)



3.9.4 ELECTRICITY

INTRODUCTION TO ELECTRICITY Dannhauser Municipality is not a licensed electricity generator, transmitter or distributor. It does not own electrical infrastructure nor does it generate any income from the sale of electricity. Eskom is the sole service provider which undertakes these functions on behalf of the municipality. No customer accounts are held by the municipality on behalf of Eskom apart from the account that the municipality buys its own electricity for its own usage. Eskom has mandate to provide electricity and electrical infrastructure based on the recent legislation which includes the Electricity Amendment Acts 1989; 1994; 1995; and the Electricity Regulation Act 2006. As the municipality does not purchase and sale electricity on behalf of Eskom, Eskom has electricity sales outlets through various shop outlets within the Dannhauser CBD and also through small spazza shops / tuck shops within rural areas outside of the CBD but within the municipal jurisdiction. The Eskom Electricity Unit substation supplies electricity to the CBD, Industrial Area and households. In the 2014/2015 financial year, the municipality received funding of R8 000 000 from KZN COGTA to eradicate this backlog. The municipality had also availed R11 000 000. For the 2015/2016 financial year, COGTA allocated a grant funding of R 5 000 000 and the Department of Energy set aside R32 000 000 which was directly allocated to ESKOM and is utilized on a phased out yearly basis. The municipality through its Technical Department undertakes the implementation of electrification in-fills with regards to households as agreed with Eskom, it then transfers the in-fills to Eskom.

3.9.4.1 CHALLENGES

There is a high backlog on maintenance, refurbishment and upgrade of the Primary network, Secondary substations, Overhead lines and Cables, thus contributing to unplanned outages and more funding is required to address these challenges. Overloaded networks and illegal connections are contributing to the high number of replacement of equipment that has blown up; this is further exacerbated by weather elements such as heavy rainfalls with high lightning strikes. Durnacoal urban residential a once owned mining residential area, has had a high number of cable thefts in the past due to buildings left unoccupied, however since the electrical infrastructure is owned by Eskom, replacements of the cables have occurred and an improved reduction in theft has occurred, as the residents have been sensitized on the importance of ensuring proper infrastructure security as it affects their daily lives. Not all residential areas have access to electricity; this is attributed to their geographical setting. The areas in deep rural heavily depend on other forms of energy such as coal, paraffin, wood, candles, etc, apart from electricity. The main constraint is the high capital costs that will be incurred by Eskom if it was to erect bulk electrical reticulation infrastructure to rural households that are highly scattered in areas that are less accessible are that are a considerable distance from their substations. Another major challenge that exits within the jurisdiction is customer affordability of the electricity. Eskom has mitigated this challenge by replacing customer monthly usage accounts with prepaid meter systems. In some instances Eskom has had a challenge in implementing housing meters as there has been a tremendous shortage of the meters from Eskom itself. In 2016/17 the municipality had to electrify 1 052 households but only ended up electrifying 623 households and this resulted from a shortage of meters that had to be supplied by Eskom.

3.9.4.2 PRIMARY NETWORK

Eskom is however undertaking connections of households to primary networks (132kv towers, etc). It is important to note that there are areas within the urban cluster that have new housing developments which have to be connected to the main primary network. The municipality through its MIG funding does enable the newly developed houses to be connected to the primary network. These are termed electrical in-fills. In 2016/17 a total of 623 households new and existing that were in urban areas were connected to the primary



network. This was funded by the municipality and approved by Eskom. Eskom will further oversee the maintenance on an on-going basis as the electrification in-fills infrastructure has been handed over to Eskom.

3.9.4.3 SECONDARY MAINTENANCE

In 2016/17 maintenance has been done by Eskom on the Secondary substations, but due to the limited number of contractors on existing contract for maintenance, there is huge backlog that still needs to be addressed.

11kV OVERHEAD LINE MAINTENANCE The number of wooden poles supporting electrical cables that are posing a risk and they need urgent attention. Eskom has a maintenance plan that will be implemented to ensure that they are replaced.

132 kV OVERHEAD LINE MAINTENANCE Eskom is undertaking the use of traditional visual and advanced technology inspections with the use of a Helicopter to take photos of the towers and undertake repairs where necessary.

CABLES Many of the cables are old and overloaded. Currently the network is undergoing refurbishment and modifications with installation of new 630mm² single core cables and the establishment of distributor substations.

STREET LIGHTING The municipality in 2016/2017 has undertaken the maintenance of 967 streetlights.

3.9.4.4 ELECTRICITY FOR COOKING, HEATING AND LIGHTING – 2016/2017

Dannhauser Municipality became the first municipality in the country to electrify all households within its area of jurisdiction. About 80.7% of the population within the municipal area uses electricity for lighting, cooking and heating purposes. Coal is still used substantially for cooking and heating purposes. A shift away from this resource is needed due to its unsustainable nature. The various forms of energy used by the community other than electricity reflect as follows; Gas; Paraffin; Wood; Coal; Animal Dung; and Solar.

3.9.5 ROADS

3.9.5.1 INTRODUCTION TO ROAD TRANSPORT

This component of the report falls under the Technical & Engineering Infrastructure Services Department. It deals with the following: • Planning, Development and Maintenance of Municipal roads and stormwater infrastructure; • Transportation Planning, Traffic Engineering issues, Road Safety and Public Transport issues; • Planning, Development and Maintenance of Municipal Buildings; and • Planning, Development and Maintenance of pedestrian and vehicle bridges



3.9.5.2 INTRODUCTION TO ROADS

The Roads section continues to address the backlog of gravel roads. An attempt is made every year to upgrade 10 to 20 km of gravel roads, primarily funded by the Municipal Infrastructure Grant transferred from Cogta-Kzn. This is due to a larger population density situated in the rural areas of the municipality and thus enabling ease of access to and from these areas. Although there are tarred roads within the urban areas (CBD and some residential areas), the municipality tries to address a minimum of 2 km per financial year, but the low revenue generating activities and low equitable share allocation grant component pose a huge major challenge. Department of Transport does have its own roads within the jurisdiction and does rehabilitate them on a year basis, and while district owned roads do exist, the District has not upgraded or maintained any roads. In 2016/2017, the municipality undertook the following; Patching of potholes and resealing of cracked tarred roads by Department of Transport R621; No District roads maintenance by Amajuba District Municipality; No urban roads upgrades in 2016/17, but cleaning of stormwater systems by the municipality,

rehabilitation of 2km urban road CBD deferred to 2017/18; and 8 km of Rural Roads upgraded in Wards 10 & 11 by the municipality, R 13 374 642.00 was utilised. The Roads (urban and gravel) are maintained and upgraded through a five (5) years plan that is in place, and in 2016/2017, the municipality reviewed its Operations & Infrastructure Assets Management Plan (incorporating Roads & Stormwater Systems) for the next 5 years and has started implementing the plan. This is in a bid to enhance the economic life span of all its infrastructure assets utilizing a proactive and preventative program.

3.9.5.3 CHALLENGES ROADS - 2016/2017

A lack of funding to upgrade urban residential tarred roads; A lack of sidewalks in residential areas; A lack of sidewalks in CBD; Intersections where informal trading is taking place; and A lack of sidewalk maintenance

3.9.5.4 COUNTERMEASURES TO ADDRESS CHALLENGES

Municipality developed business plan and submitted for funding to rehabilitate tarred roads in 2016/17.

IMAGE OF TARRED ROAD IN URBAN RESIDENTIAL AREAS Image.3



3.9.6 TRANSPORTATION PLANNING

3.9.6.1 INTRODUCTION TO TRANSPORTATION PLANNING

Transportation Planning is crucial in planning sustainable developments and ensuring accessibility for all. The Transportation Planning Section is responsible for meeting the directives set out at all spheres of Government. The key principles that we address as a Section are: i. Type of Mobility & Land use; ii. Urban traffic Congestion; iii. Urban & Rural Road Efficiency iv. Road Safety; v. Storm water systems management & efficiency; and vi. Accessibility due to road network systems

3.9.6.2 ROAD TRANSPORTATION PLANNING OBJECTIVES

i. Evaluation and assessment of transport facilities; ii. Planning, co-ordination, facilitation, provision, monitoring and regulation of efficient, effective public

transport services and facilities within a balanced market demand and supply framework for all private and public transport users; and

iii. Provides effective traffic management, control and safety through co-ordinated planning and maintenance programmes.

3.9.6.3 STAKEHOLDERS

i. Municipality; ii. Department of Transport; iii. Amajuba District Municipality; and iv. Community.

3.9.6.4 STORM WATER

This component falls under the Roads & Transportation functionality, it is part of the technical department’s responsibilities to ensure that there is no flooding on roads due to efficient and effective storm water systems that allow for an ease in high volumetric flow of water. The municipality through the use of its EPWP and CWP participants cleaned 15 km of storm water drainage systems within the urban area in 2016/2017. Although this was just a cleanup, there is a need to increase the capacity of the systems. The cleaning was done to avoid further deterioration of the tarred roads that are already requiring major upgrades. The over-flooding of the drainage systems had also caused the roads to be slippery and become a hazard to vehicles, cyclers and pedestrians.

3.9.6.5 FLEET MANAGEMENT

3.9.6.5.1 INTRODUCTION TO FLEET MANAGEMENT

Fleet Management is the Corporate Services Department and its core function is to purchase manage, maintain and dispose the Council’s fleet, while the Technical Department is responsible for fleet utilized towards engineering activities and heavy plant.



3.9.6.5.2 FLEET MANAGEMENT STRATEGIC OBJECTIVES:

Fleet Administration: with regards to the municipality is associated with budgeting, requesting for

purchasing of parts and services, vehicle licencing, service plans, certificate of roadworthiness, job cards, CAMIS (vehicle history information) and auditing of keys and log books;

Fleet Maintenance: enables preventative maintenance, breakdowns and repairing of defects; Fleet Control: involves the Internal and external hiring, purchasing, disposal of vehicles, monitor vehicle

tracking system, fleet tenderers, implementation and compliance of fleet policy and branding of vehicles; Service plan: the vehicles and plant were serviced properly and this resulted in a low maintenance cost

and it was in line with management’s objective of and principle of optimizing and providing high level of vehicle availability, proper preventative maintenance plan developed in 2016/2017 of Operations & Infrastructure Assets Maintenance Plan;

Purchase of new vehicles: the municipality tenders for suppliers of various operational vehicles used by the municipality to enhance service delivery. During the budgeting phase, each department places specifications and reasons why a vehicle or vehicles are required;

Mayoral Vehicle Policy: a mayoral vehicle policy is in place and was implemented in 2013, it aids in usage of the Mayor’s vehicle and how it should be maintained and when it should be used and when it should be replaced.

3.9.6.6 WASTE MANAGEMENT - LANDFILL SITE

3.9.6.6.1 WASTE MANAGEMENT (DANNHAUSER LANDFILL SITE)

Solid waste collection is undertaken within the urban areas of the municipality, which are Dannhauser Town, Durnacoal, Hattingspruit and in 2016/2017 the municipality has extended its waste collection to the KwaMdakane, Koppjie Alleen and in rural residential areas situated in Tribal Councils of Ubuhlebmzinyathi, Nyanyandu, Ingwe, Emalangeni and Gule. To enhance collection, the municipality commenced supplying kwaMdakane and Koppjie Alleen with skip bins for disposal to the landfill site in town. The existing landfill site in Dannhauser was fully licensed by 30 March 2017 as required by the Environmental and Waste Management Regulations of South Africa. The landfill site services, households, businesses, schools, and areas of public use. Each of the thirteen wards have been provided with 50 recycle bins and the Community Work Programme (CWP) Coordinators together with youth in waste management programme who spearhead the recycling of waste under monitoring by the Department of Environmental Affairs. In 2016/2017 the municipality undertook the following; Upgrade of landfill site – R 800 000.00; Purchase of a Hydraulic Refuse Truck – R 1 500 000.00; Purchase of Troller Bins – R 50 000.00; and Purchase of Skip Bins – R 75 000.00. An Integrated and Waste Management Plan had been initially planned for development in 2016/2017, but had to be deferred to 2017/18 due to the magnitude of the work involved and ensuring that all stakeholders are incorporated into the whole process of development. This will enable compliance with relevant environmental legislations and allow for strategic objectives and mechanisms to be put in place to allow for proper monitoring of gas emissions, groundwater and surface water pollution and or contaminations and methods of prevention or rectifying any environmental irregularities.

3.10 COMPONENT B: ECONOMIC DEVELOPMENT This component includes: Planning, Local Economic Development, Building Control & Signage, Market and Housing.



3.10.1 PLANNING

3.10.1.1 INTRODUCTION TO PLANNING AND DEVELOPMENT

Economic development and physical planning at the Municipality contributes to:- (a) Creation of jobs and protection of the livelihood of the people; (b) Upliftment of the social status of individuals; (c) Protection of the environment for residents and other stakeholders; and (d) Contribution to Sustainable Development. The planning department enables the creation of sustainable development within the jurisdiction, it allows for zoning of areas for business and social activities and the integration to regional, provincial and national economic trade areas. In its planning activities, the municipality strategises to integrate with government sector departments and various economic sector stakeholders and further identifies which infrastructures must be built and or refurbished to enhance socio-economic development. The Spatial Development Framework and Local Area Sector Plans are also a task that the department undertakes, and these are meant to further integrate stakeholders with the municipality’s strategic objectives of development. The area sector plans also depict and implement the plans of sector departments which have mandates to undertake development within the jurisdiction. Strategies that are currently undertaken by Town Planning Department at the Municipality are as follows:- (a) Finalised the review of the Local Economic Development Strategy for the jurisdiction; (b) Has appointed a service provider to develop the Tourism Strategy; (c) Has commenced the development of the Informal Sector Policy; (d) Has signed M.O.U’s with stakeholders in the mining sector for the implementation of sustainable projects

that will employ local people; and (e) Implemented the Town Planning Scheme.

3.10.2 LOCAL ECONOMIC DEVELOPMENT

3.10.2.1 INTRODUCTION TO LOCAL ECONOMIC DEVELOPMENT

The Reviewed Local Economic Development Strategy identifies the need to develop and empower the local economy through the supporting of SMME’s and Co-operatives and through the forging of partnerships with well-established economic sector stakeholders. It has further highlighted the importance of developing new infrastructures and upgrading of existing infrastructures to stimulate economic investment. It capitalizes on the close proximity of the municipal jurisdiction CBD with the N11/N3 corridor, the corridor being currently developed as a Logistics Corridor by Provincial and National Government. Dannhauser is strategically located in a centralized position between Johannesburg and Durban making it easier to industrialize and take advantage of its centrality with regards to cost saving initiatives for investors.

3.10.2.2 KEY CHALLENGES 2016/17

Low economic activities;

High rate of unemployment;

No investment framework; and

Poor infrastructure to attract investors

3.10.2.3 KEY INTERVENTIONS 2016/17

Creation of an investment profile to draw and retain investors;

Effective LED forums and

Sourcing of funds to develop and upgrade existing economic and public infrastructures



3.10.2.4 CATALYTIC PROJECTS IMPLEMENTED

Table.31

1. COGTA – KZN

PORJECT NAME WARD NATURE OF PROJECT BUDGET ALLOCATED

Industrialisation CBD Dannhauser Industrial Park R 60 million (Still to implement finale phase of industrial park extension)

2. MINING COMPANIES

PROJECT NAME WARD NATURE OF PROJECT BUDGET

Shanduka Coal Mine 3 Hattingspruit Community Hall

Awaiting Final Cost Assessment

Buffalo (Zinoju) Coal Mine 7 3 x Crèches Total Of All Buffalo Projects contribution is: R 9 million

Buffalo (Zinoju) Coal Mine 7 Sports Complex

Buffalo (Zinoju) Coal Mine 1 Piggery production

3. DEPARTMENT OF RURAL DEVELOPMENT PROJECTS

PROJECT NAME WARD COMMODITY NO.OF HA BUDGET ALLOCATED

Feziphupho Coop 2 Maize and Veg Production 200 HA R 450 000.00

Sobathola Agric. Coop 1 Maize & Beans 50 HA R 600 000.00

Amajuba Rural Livelihood Project( 1 h/h 1ha

1(Renier Farm)

Vegetables and crop production

17 HA -

Dannhauser Coating 3 Paint mixing N/A R 900 000.00

Historymakers Leather Processing Project

1 Leather Processing N/A R 750 000.00

Zamokwakhe Coop 12 Toilet and Sanitary towel manufacturing

N/A R 600 000.00

Fit ‘n Proper 1 Maize & Bean Production 54 HA -

uMnothowesizwe Piggery Project

10 Piggery N/A Was supported in 2016/17 finacial year

Agri-Hub 1(Renier Farm)

Mechsnisation & Storage Facilities

To be allocated upon finalization of technical analysis by Urban Econ

3.10.2.5 EMPLOYMENT / UNEMPLOYMENT RATE The municipality experienced a slight increase in the number of people employed from 2011 to 2016, this is however offset by the large numbers of people who are eligible for employment but are not employed. This can be attributed to low education levels which compromise the employability of residents within the municipality and a lack of employment opportunities due to a lack of economic activities in the municipal area. High unemployment levels pose a number of challenges and are associated with a number of social ills, particularly for the youth. They make them prone to engage in activities such as drug abuse, crime, alcohol abuse, etc. Efforts should be made to address these challenges.

3.10.2.5.1 EMPLOYENT BY SECTOR – DANNHAUSER 2016/17

Table.32

EMPLOYMENT BY SECTOR – JOBS

SECTOR 2014/15 2015/16 2016/17

Agric, forestry and fishing

Mining and quarrying

Manufacturing

Wholesale and retail trade



Finance, property, etc

Govt, community and social services

Infrastructure services

3.10.2.6 ECONOMIC CONTRIBUTION BY SECTOR – DANNHAUSER 2016/17

Table.33

ECONOMIC ACTIVITY BY SECTOR - R ‘ 000

SECTOR 2014/15 2015/16 2016/17

Agriculture

Mining and quarrying

Manufacturing

Electricity

Construction

Wholesale and retail trade

Transport

Finance, property, etc

Govt, community and social services

3.10.2.7 JOBS CREATED THROUGH MUNICIPALITY

Table.34

JOB CREATING PROGRAMME

EPWP CWP TOTAL JOBS CREATED

2016/2017 1 100 143 1 243

2016/2015 900 N/A 900

2015/2014

3.10.2.8 LOCAL ECONOMIC DEVELOPMENT OBJECTIVES – 2016/17

Table.35

SERVICE OBJECTIVES

SERVICE TARGETS

2015/2016 TARGET

2015/2016 ACTUAL

2016/2017 TARGET

2016/2017 ACTUAL

Reduce unemployment

Job Creation (EPWP) & (CWP)

EPWP – 900 EPWP – 900 EPWP – 1 100 CWP - 143

(EPWP & CWP) - 1 243

Review of LED Strategy

Completion by 30 June 2017

N/A N/A Completion of draft reviewed LED Strategy

Draft Reviewed LED Strategy completed December 2016.

LED Forum Setting up forum by 30 June 2017

N/A N/A LED Forum Separation from MANCO Committee by 30 June 2017

Separation of LED Forum completed by 30 June 2017.

Development of Tourism Strategy

Completion of Draft Tourism Strategy by 30 June 2017

N/A N/A Completion of Draft Tourism Strategy by 30 June 2017

Draft Tourism Strategy still in progress of being developed. Not completed by 30 June 2017.

Informal Traders Draft formulation of Informal Traders Policy by 30 June 2017

N/A N/A Completion of Draft Informal Traders Policy

Informal Traders Policy still being developed.

Agri-Park Renier Farm

Commencement of crop farming by Local Co-op’s

N/a N/A Implementation by DRDLR of 1 ha, 1 household Crop

1 ha, 1 household crop farming



through the aid of DRDLR before 30 June 2017

farming at Renier Farm for local households by 30 June 2017.

programme commenced by DRDLR at Renier Farm before 30 June 2017

Completion of Industrial Pak

Completion of Infrastructure by Municipality Small Town rehabilitation Funding – Cogta by 30 June 2017

N/A N/A Industrial park infrastructure to be completed by 30 June 2017

Industrial park completed by 30 June 2017.

3.10.2.9 BUILDING CONTROL & SIGNAGE The Building Control and Signage Section controls building construction and outdoor advertising signage in the municipal jurisdiction. This is done through compliance with the National Building Regulations and Building Standards Act, 1977, the SANS 10400. The technical and community departments work together to inspect buildings while building plans are solely vetted by the technical department. A Town Planner was appointed in 2016/17 as the position had been vacant for quite some time. This had posed a huge challenge in the speedy addressing of various building and infrastructure projects within the jurisdiction. The municipality is however still negatively impacted as the following two critical positions still remain vacant; Housing Officer and Building Inspector. No provision has been made for a Signage Inspector as yet, and this is a function undertaken by the head of Technical Department in liaison with the Head of Community Department. The Head of the Technical Department integrates with Amajuba District Municipality as the buildings require bulk infrastructure connections in relation to water and liquid sanitation and further liaises with Eskom for electricity connections. Environmental Impact Assessments are undertaken by a service provider appointed by the municipality as and when required to ensure that an impact assessment is undertaken prior to the development or construction of any building. Already existing buildings within the CBD area are inspected two officials from the municipality, one from the Technical and the other from the Community Department. This is to ensure that the structures are still viable for use and are not hazardous for human and business occupations. In 2016/2017 some business owners where issued with notices of building closures if they did not properly refurbish their operating buildings. All the owners notified did refurbish their operating buildings while some were undertaken by their landlords they were leasing from. During the year the filing of Building Plans is undertaken in a two-fold state, (i) the plans are scanned and digitilised and backed onto a computer database, and (ii) the retention of the physical copy of all Building Plan files and documents, thus creating a legitimate Archival System. This system is currently being applied as the official proposed records filing system is still awaiting the approval of the Department of Arts and Culture.

3.10.3 MARKET

3.10.3.1 MARKET SERVICES

The municipality manly utilizes its CBD as its main market for various traders, however the newly constructed Ingogo Fresh Produce Market situated in Newcastle Municipality through the funding provided by Cogta – Kzn, is anticipated to service farmers within Amajuba District, including those in Dannhauser. The Fresh Market Produce has only been completed in the 2016/2017 financial year, and will be a trading place for buyers and sellers, whether directly or through market agencies acting as link between buyers and sellers. Currently Renier Farm agriculture participants have been earmarked through the DRDLR initiative to be suppliers to the Ingogo Fresh Market Produce. The main products traded are potatoes, onions, tomatoes, vegetables and fruit. The crucial variable determining the economic viability of the market is the volume of business, or the tonnage throughput. Renier Farm participants are the initial pilot project to the Agri-Hub being developed in Dannhauser as part of creating jobs through sustainable agricultural activities for the local community.



3.10.4 HUMAN SETTLEMENTS

3.10.4.1 INTRODUCTION

The Housing Sector Plan sets out housing delivery goals and targets for the municipality and provides and approach to housing delivery and spatial transformation. The Housing Sector Plan is reviewed annually together with the Integrated Development Plan of the Municipality. The Municipality had its first Housing Sector Plan in 2007. The Human Settlements Sub-Unit reviewed it 2011 and the municipality then reviewed it during the 2014/15 financial year and was approved by Council in 2015, and further reviewed it in the financial year 2016/17 but still to be adopted by Council. Like other secondary cities in South Africa, the Municipal spatial character depicts the legacy of apartheid planning and high levels of urbanisation. There are currently seventy identified informal settlements located in different parts of the city with limited basic services.

3.10.4.2 SOME KEY OBJECTIVES OF THE HOUSING SECTOR PLAN

To develop adequate and affordable housing for none and low-income earners; To develop housing that is safe for human habitat; To develop various forms of optional housing for the community; To ensure access to basic services for households and enable water and sanitation infrastructure to be

connected to the households; Upgrade the existing well located informal settlements to improve land tenure and access to basic

services; Accelerate development and consolidate human settlements development in line with the National Policy

directives and the IDP of the Municipality; and Contribute towards spatial transformation and creation of an efficient settlements and spatial pattern. The department of Human Settlements is currently acting as a developer and has delivered several housing projects which it has funded from its own budget. The land for the housing development is provided by the municipality either through integration agreements with Tribal Authority Council, Land purchased from private land owners, Trusts, Companies or NGO’s. Any land that would have been earmarked for development is first subjected to an Environmental Impact Assessment (EIA), and once the land has been deemed appropriate for development, that planning commences and Amajuba District Municipality is included in the whole process as the Water Services Authority. By 2016/17 financial year, a total of 20 844 households (hhs) had been developed, they had following categories achieved; 2 579 – Formal; 106 – Informal; 17 186 – Traditional and 973 – Farms; 14 769 hhs with piped water inside dwellings; 2 666 hhs with flushing toilets; 2 141 hhs – chemical toilets; 1 942 hhs – Pit Latrine VIP; 12 849 hhs – Pit

Latrine No VIP & 1 064 hhs – using other forms of sanitation; 10 711 hhs with electricity for cooking; 7 762 hhs – electricity for heating & 16 585 hhs – electricity for

lighting; and 1 704 hhs refuse removal weekly in Urban areas and 12 136 hhs refuse removal weekly in Tribal Authority

Council areas.

3.10.4.3 INFORMAL SETTLEMENT

This section facilitates the National Upgrading Support Programme which seeks to identify and incrementally upgrade informal settlements. The programme involves the identification, categorisation and prioritisation of informal settlements for upgrading initiatives. The assistance of the Department of Human Settlements aided in the eradication of a slum into the development of an informal settlement named “Ramaphosa”. The occupants of “Ramaphosa” initially resided on land previously owned by a mining company which had ceased operations, the mining company and the municipality entered into an agreement to develop proper housing facilities for those living in the shacks. The municipality then incorporated and integrated with the Department of Human Settlements, Amajuba District Municipality and Eskom to be a part of the development process.



A total of 100 housing units were constructed at a total cost of R 13 496 507.00 (Funded by Department of Human Settlements & Shanduka Coal was the contributor of the land. An Environmental Impact Assessment (EIA) was undertaken to determine the suitability of the land for construction, this was completed and approved by Human Settlements. The municipality aided in developing internal gravel roads and is currently waiting for an intervention by Department of Transport, Amajuba District has not implemented any bulk water and sanitation infrastructure, this compelled the municipality to supply the residents with Jojo water tanks inclusive of stands and to further undertake electrification of the households in liaison with Eskom. The municipality has commenced an application process to upgrade the Ramaphosa settlement into a township. The application will be submitted in 2017/18 financial year to the relevant government department for consideration and approval. The settlement is approximately 3 km away from Hattingspruit urban area.

3.10.5 PLANNING This Section identifies and facilitates the acquisition of well-located land to implement the relevant national housing subsidy programmes. Ensure the alignment between the Human Settlements Sector Plan, Spatial Development Framework Plan and Infrastructure Development Sector Plan. Prepare and package human settlements projects business plans to secure funding from relevant sources. Develop strategic policies to enhance the development of integrated human settlement within the Municipal area. There are currently six housing projects that are in various phases of the planning stage and are awaiting approval from Department of Human Settlements. These projects are expected to deliver a combined yield of 7 847 units in different financial years, with an additional 2 300 units being proposed to be built on different pockets of land of which Department of Human Settlements is currently undertaking EIA’s. During the 2016/2017 financial year, the Municipality acquired two large parcels of private land for human settlements development. The land is situated at the intersection of the R 621 and the main CBD road towards Hattingspruit.

3.10.6 PROJECT IMPLEMENTATION This Section is responsible for the provision of infrastructural services that are in-line with the municipal acceptable standards and top structures that comply with the National Housing Code, National Building Regulations, the NHBRC standards as well as Municipal requirements. As the municipality is still relatively small in size and is not well capacitated, most of the functions are undertaken by Department of Human Settlements and Amajuba District. The municipality does play an active role in inspecting the housing units that would have been developed prior to completion certificates being signed by the HOD of the Technical department. The municipality further sources funds which relate to the construction of internal roads where the housing units have been constructed and in certain instances for electrification of the households.

3.10.7 HOUSING ADMINISTRATION The Section administers all property management activities for Council’s Housing Rental Stock, Odd and freestanding properties. The Municipality currently owns ……….. rental flats and ……….. state funded properties and 58 odd / freestanding properties (houses) that are being leased out to tenants. Some of the major challenges that the section currently faces under the administration of the Housing Rental stock, has been a long history of poor payment of rentals and services, the lack of information on the status of the current tenants occupying the units as there has been many cases of sub-letting by previous tenants, deceased tenants (lease holder) which have passed away, leaving family members who can’t afford the rentals etc. but are still on the billing system. The other challenges is lack of qualified data that both Housing Administration and Finance work from in terms of rental collection and also the systems being used by the sections to perform property management activities. There has also been minimal maintenance of the rental stock due to lack of funding resulting from non-payment of rentals. One of the successes has been the completion of tenant audit and verification for all Council Housing rental stock and Odd / freestanding properties. This process has assisted in addressing the current challenges within all the tenancy discrepancies. The other achievement has been the formulating and



approving of a turnaround strategy and action plans to arrest the escalating arrears within all rental housing stock.

3.11 COMPONENT C: COMMUNITY SERVICES This component includes: Waste Management, Community Halls, Cemeteries & Crematoria, Environmental Health, Traffic & Public Safety, Disaster Management, Sport & Recreation and Library.

3.11.1 WASTE MANAGEMENT

3.11.1.1 INTRODUCTION TO WASTE MANAGEMENT The domestic refuse collection services cover a total of approximately 14 292 households out of a total of 20 844 households weekly. The business refuse collection service of 456 business units weekly has met its targets but faces problems with dumping of litter on the road, sidewalks and storm water drainage systems by the community. It is envisaged that there will be improvements as the community department becomes more efficient with tracking customers and reducing littering in the central business district. The community department is short staffed and cannot follow its mandate fully and is currently relying on contract and EPWP staff. Street sweeping is being conducted in ever increasing areas per ward. The cutting of grass alongside roads and in public areas is improving the image of the municipality and improving waste management initiatives. A challenge however exists; this is in relation to the minimum funding allocated to the municipality through the “Equitable Share Grant” allocation. It inhibits the successful delivery of waste collection from all targeted households within the jurisdiction.

Table.36

SOLID WASTE SERVICE DELIVERY LEVELS Households

Description 2015/2016 Actual Number

2016/2017 Actual Number

Solid Waste Removal (above min level)

Removed at least once a week 4 851 4 851

Minimum Service Level and Above sub-total 4 851 4 851

Minimum Service Level and Above Percentage 23.3% 23.3 %

Solid Waste Removal (below min level)

Removed less frequently than once a week 59 59

Using communal refuse dump 14 189 14 189

Using own refuse dump 0 0

Own Rubbish Disposal 71 71

No Rubbish Disposal 1 674 1 674

TOTAL NUMBER OF HOUSEHOLDS 20 844 20 844

The collection of solid waste on a weekly basis is 23.3% below the 50 % benchmark; this is attributed to the minimal Equitable Share Grant Allocation from Treasury and the low revenue collection margins from property rates, levies, etc. The municipality is thus limited in funds to undertake waste collection from a higher number of households.

3.11.2 COMMUNITY HALLS This unit is responsible for the management, maintenance and identification of wards requiring Community Hall facilities. Hall facilities maintained to an acceptable standard for use by hirers.



3.11.2.1 Actual Community Halls – 2016/2017

Koppie Alleen Community Hall - (Ward.1), Emafusini Community Hall - (Ward.2), Dannhauser Community Hall - (Ward.2); Verdriet Community Hall - (Ward.3); Millford Hall Community Hall – (Ward.4) Kwamgidiz A Community Hall – (Ward.5) Fairbreeze/Poona – (Ward.5) Kwamdakane Community Hall - (Ward.7); Mafahlawane Community Hall – Ward.9 Dorothy Nyembe Community Hall - (Ward.9); Eastbourne Community Hall – Ward.10; and Moyi Community Hall - (Ward.13)

3.11.2.1.1 Halls Constructed in 2016/17

Community Hall constructed - Ward.2

3.11.2.1.2 Backlog of Halls by 2016/17

Wards’: 4, 5, 6, 8 and 12: one each.

3.11.3 CEMETERIES & CREMATORIA This unit is responsible for the Management, maintenance and development of Cemeteries and Crematoria.

3.11.3.1 Number of Cemeteries In Dannhauser 2016/2017 Table.37

AREA OF CEMETERY NUMBER OF CEMETERIES

Ward.1

Ward.2

Ward.3

Ward.4

Ward.5

Ward.6

Ward.7

Ward.8

Ward.9

Ward.10

Ward.11

Ward.12

Ward.13

TOTAL

3.11.3.1.2 Cemeteries Achievements in 2016/2017 Cemeteries Upgrading & Maintenance Plan (Urban & Rural) developed in 2016/2017, approved and

adopted by Council, 31 March 2017; Cemeteries maintenance monthly reporting; 2016/2017; and Cemeteries maintenance and clean-up by CWP & EPWP participants on a monthly basis in urban and rural

areas;



3.11.4 ENVIRONMENTAL HEALTH Environmental Health encompasses those aspects of human health, including quality of life that is determined by physical, chemical, biological, social and psychosocial factors in the environment. It also refers to the theory and practice of assessing, correcting, controlling and preventing those factors in the environment that can potentially affect adversely the health of present and future generations. Environmental Health Services includes: Water quality monitoring, Food control, Waste management, Surveillance of premises, Communicable diseases control, Vector control, Environmental pollution control, Disposal of the dead, chemical safety and noise control. Although these functions are imbedded within the municipality’s Community Department, the vacant position of Environmental Officer complicates the implementation of the functions. Some of the functions are thus undertaken by Amajuba District, Department of Environmental Affairs, Department of Water Affairs and as the jurisdiction has mining activities, Department of minerals also plays a strategic role in the regulatory of environmental impacts due to mining activities. Table.38

DESCRIPTION TARGET ACHIEVED

No. of Complaints investigated 60 70

No. of Trade Licence application processed

No. of Dairies registered in terms of the Dairy Bylaws N/A N/A

No. of Beef Cattle & other Livestock Commercial Farming Operations 2 1

No. of Animal Pounds 1 1

Animal Pound By-Law 1 1

No. of Chicken Commercial Farms 1

No. of Mining Companies 3 3

No. of Commercial, industrial and residential premises inspected 2 4

No. of Water samples from reservoirs and consumer points (Amajuba) 10 12

Percentage compliance with SANS 241:2011 NB: SANS are national standards that replaced SABS(South African Bureau of Standards) 241: relates to drinking water (Amajuba)

70 68

No. of Food premises inspected in terms of R962 (Food Regulations): Formal: Informal:

2 2

No. of Communicable Diseases notifications investigated: N/A N/A

No. of Premises inspected for compliance with Tobacco Legislation 5 5

No. of Places of care inspected 1 1

No. of Controlled burning applications processed N/A N/A

No. of Notices issued

No. of Prosecutions instituted N/A N/A

Fines received businesses N/A N/A

3.11.5 TRAFFIC & PUBLIC SAFETY The department of Public Safety helps ensure a safe environment and improve the quality of life through effective Traffic policing combined with efficient use of security officers. Traffic services include: Control and regulate all forms of Traffic, promote education and training on the road and traffic safety. Attend scenes of motor vehicle collisions and assist with traffic control, removal of injured persons and removal of vehicles so that traffic may glow freely again. Eliminate points of congestion, obstruction, hindrance, interference or danger to vehicles and pedestrians.

3.11.6 DISASTER MANAGEMENT Disaster management (DM) promotes a culture of risk avoidance among communities through education and public awareness. The Disaster Management Sector Plan implemented in 2015 and reviewed in 2016/17 establishes the arrangements for disaster risk management within the requirements of the Disaster Management Act, 57 of 2002 and section 26(g) of the Municipal Systems Act, 2000. Planning for disasters leads to organisational preparedness and readiness in anticipation of an emergency or disasters. The Act requires an integrated and effective response to disasters.



Disaster Management as a whole is overseen by Amajuba District Municipality that has a fully-fledged Disaster Management Center. The municipality is actively participating in the District Advisory Forum, and meetings are coordinated by the District Municipality.

3.11.6.1 DISASTER RISK PROFILE – 2016/17

Table.39: Risk Profile Type of Disaster Low Risk Medium Risk High Risk

Flooding X

House Fires X

Severe Storms X

Transport Accidents X

Landslides X

Environmental Pollution X

Hazmat X

Animal & Plant Diseases X

Human Epidemic Disease X

Drought X

Lighting X

Thunderstorms X

Hail X

Veld Fires X

Disasters Caused By Mining X

3.11.6.2 PRIORITY RISKS REQUIRING PREPAREDNESS – 2016/17

Table.40: Priority Risks

Type of Disaster Low Risk Medium Risk High Risk

Flooding X

House Fires X

Severe Storms X

Transport Accidents X

Lighting X

Thunderstorms X

3.11.6.3 FUNDING PROVISION – 2016/17

Municipality had set aside a disaster budget of R 500 000.00 for immediate provision of relief, but in reviewed the amounts to R 4 million with regards to infrastructure housing development when mud houses are destroyed due to disasters and R 200 000.00 for various relief aid to families affected by disasters.

3.11.6.4 RISK REDUCTION & PREVENTION – 2016/17 Good risk reduction and prevention includes proper planning and integrating with Amajuba District Municipality which is the custodian of Disaster Management within the District. The municipality has planning groups, committees, joint response teams and recovery project teams, this is however undertaken in conjunction with the District. To enhance the prevention mechanism, the municipality has identified the construction of floods levees, relocation of housing and essential services away from flood plains, use of better building standards and introducing hazardous waste regulations. Coordination with Tribal Authority Council Administrators where there is a high density of housing and school infrastructures has been implemented. The municipality has identified the following prevention and mitigation strategies; The development of an early warning system for natural disasters such as floods, hailstorms, and

droughts; Prevent forest fires by having fire breaks; Upgrade and maintenance of infrastructure;



Develop protocols for specific risks; Road and sidewalk maintenance; Upgrade and maintenance of landfill sites; Public awareness campaigns; Replacement of old vehicles and machinery; Develop poverty alleviation strategies; and Develop job creation programmes (ie. Cleaning campaigns).

3.11.6.5 DISASTER MANAGEMENT AS A SHARED FUNCTION The management of disasters within Dannhauser municipality is a shared function between Dannhauser municipality and Amajuba District Municipality. As part of the shared function, the Dannhauser Disaster Management Plan is integrated with that of Amajuba District, to enhance cross-organisational and functional activities.

3.11.6.6 ROLE OF DANNHAUSER MUNICIPALITY

The municipal policy highlights the following: As a local municipality, Dannhauser hereby takes responsibility for all local disaster incidents, which can be managed within its resources; Council has set aside R 4 million towards rebuilding houses in the event of mud houses being destroyed

and R 200 000.00 annually for others forms of relief for victims of any disaster within the jurisdiction, from an initial amount of R 500 000.00;

The municipality shall within its broader statutory disaster management obligations, focus its disaster management efforts on disaster mitigations;

The municipality shall, in executing its responsibility, closely liaise with the other government spheres in particular the District Municipality;

The municipality shall establish a disaster co-ordination committee comprising of all its departments to ensure that all its available resources needed for disaster are properly mobilized and applied;

Any re-usable material assistance dispatched during and to address a disaster shall be closely monitored and any material remaining unused must be returned to the municipality;

In order to facilitate proper reporting of disasters, the affected community members shall be required or assisted to specifically declare their need/apply for the relief; and

The Mayor and Municipality Manager shall be the central stakeholders responsible for the implementation of this policy.

3.11.6.7 PREPARATION The municipality has a preparedness plan in place, the plan will be executed in line with the specific disaster. Through good preparation, the effects of disasters and significant incidents can often be reduced. Good preparation should include information and education of the public about hazards. Management of the municipality will be in the forefront. All relevant stakeholders and joint project teams will be notified where they are deemed necessary to intervene, this is to ensure that each disaster is managed appropriately with the correct resources.

3.11.6.8 RESPONSE AND RECOVERY

3.11.6.8.1 RESPONSE In major emergencies, it is critical that an efficient and effective disaster response is mobilized. Response is a collective responsibility. In a major emergency or disaster, people need to know, what to do, who will do it and how it will be done. The municipality highly relies on Amajuba District to aid with fire-fighting equipment, however it seeks to purchase equipment that will be readily available as the need may arise while Amajuba is attending to other disasters. An official who is a part of management is on standby for any emergency calls.



3.11.6.8.2 RECOVERY Recovery from major disaster can be a long and costly process. Essential services such as water and power may need to be restored; addition medical services may be required or temporary housing and family support may be needed. Although the yearly allocation may be deemed not to be sufficient, the municipality will have to make appropriate additional allocations if the disaster is severe.

3.11.6.8.3 TRAINING AND AWARENESS The training needs that are generally suggested for emergency responses include the following:

Community Awareness;

Workplace Emergency;

Professional Fire Fighting skills;

Victim Management Skills;

Disaster risk assessment;

Various Disaster Plans; (Fire & thunderstorms)

Radio Communication;

Contingency Plan development;

Safety planning at Live Events; and

Disaster Operation Centre Management Skills and Procedures. (ADM)

3.11.6.8.4 DISASTER MANAGEMENT SWOT ANALYSIS Table.41: Disaster Management SWOT Analysis

STRENGTHS WEAKNESSES

The human capital in Dannhauser is available but limited, however it is leveraged by the technical teams in AD.

Dannhauser is not prone to dreadful natural disasters such as tornadoes, earth quakes or hurricanes.

Credible Disaster Management Plan is not yet in place. Limited human capital allocation at a local municipal

level. Limited disaster management equipment; The spatial configuration and isolation of some of the

areas may increase the turnaround time to arrive during emergencies.

OPPORTUNITIES THREATS

The opportunity still exists to allocate human capital for implementation, monitoring & evaluation of the disaster management plan;

The structures used during IDP processes can be utilized to identify and mobilize volunteers.

Inability to respond to emergencies within prescribed response time would undermine the role of the municipality in terms of meeting its constitutional obligation;

Lack of sufficient budgeting implies a non-effective implementation of plan.

3.11.6.8.5 SERVICE STATISTICS FOR DISASTER MANAGEMENT During financial 2016/2017, a total of ….. Incidents were responded to. Disaster Management was

involved in the safety of …….. events; Disaster Management plan was approved in March 2015 by the full council and reviewed in 2016/17

financial year & fully implemented; and

In 2016/17, 15 houses built by the municipality to replace the low-income/RDP houses damaged due to

heavy winds and rains; and

24 Hours turnaround time to respond to disaster related incidents reported according to the Approved

DM plan/ strategy by 30th June 2017



3.11.7 SPORT & RECREATION Manage maintenance and development of all municipal sports facilities including the promotion and development of sports and recreation. Master plan for the maintenance of sports facilities approved.

3.11.7.1 SERVICE STATISTICS FOR SPORT AND RECREATION Total number of Sports Facilities – 3 Emafusini Sportsfield; Durnacol Sportsfield; and Dannhauser Cricket Ground Refurbishment of two of the sports fields (Emafusini & Durnacoal) has been deferred to the 2017/18 financial year.

3.11.7.2 LIBRARY SERVICES There is one main library within the Municipal Library Services; it is situated at the main municipal offices in a standalone building. The Library has a wide range of resources including books, large-print books, newspapers and periodicals, audio-books, and a public computers workstation. The library is highly maintained and has security systems that minimize the loss of its contents due to theft. It has a bulk printer, for those who seek copies to be made for them, and a fee is charged for this service depending on the nature of the copy, print and or its size. It operates from 8 am in the morning till 4pm, Mondays to Fridays, and is closed during public holidays if it is during the week.

3.12 INFORMATION & COMMUNICATION TECHNOLOGY SERVICES The municipality has a fully functional IT system, which is managed internally, with the following systems in place, Office 365 Midsize business, Mun-soft and VIP Payroll. The municipality has developed the IT Strategic Plan, IT Policies, IT Disaster Recovery Plan and ICT Governance Framework. Some of these IT Policies were approved during the 2012/2013 financial year and have been reviewed annually. The IT Disaster Recovery Plan, ICT Framework and IT Strategic Plan were developed and they are due for approval before the end of the financial year. The IT function is under Corporate Services department and the municipality has appointed an IT Officer for the day to day management of the IT section. The municipality has a fully functional Website Page which is managed internally by the IT Officer. The website allows the municipality to the public to access, inter alia, municipal policies and plans such as the IDP, Budget and PMS. In addition, the municipality established an SMS system, with the number 4409. The system allows communities to report on a myriad of issues and a Facebook page was also established for similar purposes. The services provided by the IT section are reflected on As required by the CGICT (Corporate Governance of ICT) Policy, IT must be aligned with the Municipality goals. In order to enable the Municipality to meet its goals as set out in this IDP, the ICT section of the Municipality provides the following services, either by the in-house provision, outsourcing or a combination.



3.13 IT-SERVICES PROVIDED

Table.42 SERVICE DESCRIPTION

Active Directory The Active Directory Service provides authentication and ensures that all actions that are performed on the system is properly authorized.

Personal Computers All users need a desktop or laptop computer to access all services.

Networked Storage This service allows users to store documents, and other important files, on a network server which is regularly backed up.

Exchange Amajuba District Municipality uses Microsoft Exchange Server 2010 together with the Outlook client on workstations in order to access email and shared calendars. Each user has a unique email address.

WWW This service allows users to access information published on the world wide web.

Munsoft FMS Financial Management System

GIS Geographical Information System

Antivirus Users need antivirus software to protect them from malware.

Server A shared workspace for working on projects.

Website Hosting Dannhauser.gov.za

Helpdesk Provides a single point of contact for users when requesting assistance with IT services.

Access Control System Controls and records access to the building.

Video Surveillance Provides security video recording of the building.

Data Projectors and Screens Provides services relating to data projectors and screens

Local Area Network Provides access to all network related services.

Updates Ensures that all software on servers and workstations are kept up to date in line with known vulnerabilities.

WAN Provides access to the internet and network connectivity to remote sites.

Printing and Scanning Allows users to print and scan documents.

Fax to Email Allows users to receive faxes via email.

Backup Makes backup copies of important data in order to recover from possible disasters.

Audio recording Record audio for important meetings for transcription and legal compliance purposes.

3.14 IT-INITIATIVES

In addition to the IT services currently being provided, the following initiatives are being undertaken to improve the value of IT as an enabler of the business and IDP communications tool. Table.43 INTIATIVE DESCRIPTION

Paperless council

Management has decided to obtain IPads for all councillors, IPads will be used as a communication tool and to distribute agendas and minutes without using paper. It may be possible to realise significant cost savings in this way, reducing the usage of paper and delivery costs. This could also have a significant positive impact on the carbon footprint of the organization.

Voice over IP

Voice over IP, also known as VoIP is now a mature technology. VoIP refers to the carrying of voice telephone conversations over data networks. Significant costs savings can be realized with the proper implementation of Voice over IP.

Cloud computing

A new trend has emerged in recent years, where IT are no longer hosted on a user’s premises. This is called “Cloud Computing”. Benefits of cloud computing include reduced capital costs, simplified management and possibly improved legal compliance.



3.15 LEGAL SERVICES Legal Services play an important role for aiding to maintain good governance on behalf of the municipality and various stakeholders whether social or of economic impact. The interpretation of by-laws, policies, bills and legislations are undertaken through this service. The developing of Service Level Agreements that are legally binding to parties and are not harmful to parties are also undertaken. This functionality with regards to the municipality, is undertaken by an appointed legal company ………………………….and it has various experts of law. Its contractual obligation will end on ………………….. In addition to the activities outlined above, the following items are formally placed on the SDBIP for Legal Services: Provision of legal comments on all reports whenever required; Regularly attending various Council committees and sub-committees, working groups of the Municipality,

including portfolio committees, the Executive Committee, the Bid Evaluation and Bid Adjudication Committees. In addition we regularly attend impromptu meetings requested by customer units;

Coordinating the activities of multidisciplinary municipal teams in relation to a particular legal issue, problem or objective;

Considering and evaluating new insurance claims against the municipality every month, and new prosecutions a month;

Acting, where required, as Prosecutors or Chairpersons of Disciplinary hearings. In essence, Legal Services provides legal advice on both a proactive and reactive basis to the municipality.

3.15.1 DELICTUAL COURT CLAIMS AND COURT INTERDICTS

Work on these matters involves daily management of court pleadings and extensive legal processes, including but not limited to correspondences with opposition attorneys, pre-trial procedures and court attendances. These procedures are extensively regulated by; inter alia, the Rules of Practice in the High and Magistrate’s Courts.

3.15.2 CRIMINAL PROSECUTIONS

Work in these matters involves processes of prosecuting persons in the criminal courts, including the consideration of evidence presented by Peace Officers, drafting of charge sheets where necessary, liaising with the Courts and lawyers representing the accused. Ultimately, Legal Services represent the municipality in all court matters and procedures are extensively regulated by the Criminal Procedure Act, 51 of 1977.



CHAPTER 4 ORGANISATIONAL DEVELOPMENT PERFORMANCE

4.1 INTRODUCTION TO ORGANIZATIONAL DEVELOPMENT PERFORMANCE During the 16/17 financial year the HR Unit - identified certain priorities that must be met in order to unlock the organization’s human capacity potential towards the achievement of the Municipality’s strategic priorities and outcomes. During the year under review, the Municipality’s departments indicated facing challenges of low staff morale and a poor state of employee wellbeing (threat of disease). During the HR Customer Satisfaction Survey the causes of this state of affairs were found to include multiple factors, inter alia: Lack of Municipal Office space for staff, this makes the working environment too cramped up and not

conducive for effective service delivery; Lack of proper staff complement within the departments; Lack of staff to enhance the achievement of Key Performance Indicators; and Current staff overworked and causing a low moral thus reducing work efficiency.

4.2 ALLOCATION/PLACEMENT PROCESS In 2016/2017 the Organisation went through the allocation/placement process, and the process is guided by its “Recruitment Policy”. The approved 2016/2017 Structure was adopted and reported on. The municipality has a staff compliment of five (5) Section 56 Managers, including the Municipal Manager. A total staff compliment of 122 people is within the structures of the municipality. These include subordinate managers, officers, administrative assistants and general workers. The municipality has made remarkable strides to fill vacant positions; especially at top management since all section 54 and 56 Managers are filled. Table.44: SECTION 54/56 MANAGEMENT

Directorate Name

Gender Type of Appointment

Male / Female

Date Status Signed Performance

Agreement (Yes / no)

Municipal Manager WB Nkosi Male 01 July 2008 5-year contract Yes

Chief Financial Officer DM Mohapi Female 15 April 2013 Permanent Yes

Manager Corporate Services

S Narothum Female 01 July 2002 Permanent Yes

Manager Technical Services

MR Nene Male 12 February 2013 Permanent Yes

Manager Community Services

S Naidoo Male 01 November 2013 Permanent Yes

It is notable in table.44 above that 40% of the Section 54/56 Managers are women. The table below outlines

the total staff complement (including the Section 54/56 Manager indicated in table above).

Table.45: STAFF COMPLEMENT PER DEPARTMENT

Department 2016/2017 2015/2016

Filled Vacant Total Filled Vacant Total

Office of the Municipal Manager 8 1 9 8 1 9

Corporate Services 18 1 19 14 5 19

Financial Services 23 4 27 17 4 21

Technical Services 33 10 43 23 10 33

Community Services 40 2 42 35 5 40

Total 122 18 140 96 27 122

During the year under review:



Town Planner and Machine Operator appointed in Technical Department

Finance consists of five (5) interns who are included in the table above.

4.2.1 EMPLOYEE TOTALS, FILLED & VACANCIES The filled and vacant positions within the municipality for 2015/16 and 2016/17 are as provided below; Figure.20

4.3 EMPLOYMENT EQUITY

In accordance with the Employment Equity Act No. 55 of 1998, the Dannhauser Municipality developed and

implemented the Employment Equity Plan; and as required by the said Act, the Plan was submitted to the

Department of Labour. The purpose of the plan is to state the broad principles of employment equity to which

the Dannhauser Municipality is committed and to describe in general how the Municipality seeks to realize

these principles. The Plan reflects the significant progress the municipality has made with regards to

addressing challenges relating to: enhanced demographic representation, skills development, succession

planning, fast tracking, mentorship, diversity management and organizational culture assessment.

Table.46: Employment Equity Statistics

Occupational Levels Male Female

Total African Colored Indian White African Colored Indian White

Top management (Section 54/56) 2 0 1 0 1 0 1 0 5

Senior management 1 0 0 0 0 0 0 0 1

Professionally qualified and mid-management

7 0 1 1 6 0 0 0 15

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

17 0 4 0 10 2 2 1 36

Other staff 39 0 4 2 15 2 2 1 65

Total 66 0 10 3 32 4 5 2 122

The employment equity profile illustrates progress made towards transformation. In terms of women empowerment, effective initiatives need to be introduced to bring women to the fore. The employment equity statistics are presented in the table below: Table.47

Employment Equity Implementation

Designated Group

Non-Designated Group

Women

Senior Management 60% 40% 40%

Middle Management 66% 33,34% 14%

Professional Staff 77,78% 22,23% 33,34%

96 122

25 20

2015/2016 2016/2017

MUNICIPAL FILLED & VACANT POSTS

Filled Vacant



Figure.21 (Employment Equity) 2016/17

Figure.21 above indicates that Dannhauser Municipality’s governance committees are effective with an

exception of two committees namely Local Economic Development and Land Resource Committee and

Municipal Public Accounts Committee where there are some challenges.

4.4 WORK PLACE SKILLS PLAN The municipality developed and adopted the Work Place Skills Plan (WPSP), it identified the gaps and how they must be addressed. The WPSP is currently being implemented and positions that require to be filled are being attended to. There is also training and development of political leaders and management including their subordinates. This will enhance the transformation of the municipality and its efficiency in delivering basic services to the community. Corporate governance will be upheld and proper financial management and use of municipal resources will be undertaken.

4.5 VACANCY RATE A vacancy rate of 15 % exists within the municipality, and only a few positions require to be filled. The ones that are still vacant are as follows; Table.48

DEPARTMENT VACANT POSITIONS

Office of the Municipal Manager PMS Officer

Budget & Treasury Asset and Fleet Officer, Debtors Clerk, Manager Budget and Treasury, Payroll Clerk, SCM Clerk, Secretary CFO

Department of Community & Social Services

Environmental Officer, Chief Protection Officer

Department of Corporate Services Committee Officer

Technical Services Head Civil Services, Housing Officer, PMU Officer, Building Inspector, Foreman Engineering Services, Bricklayer, 4 General Workers

4.6 CRITICAL POSTS The municipality has a staff compliment of five (5) Section 56 Managers, including the Municipal Manager. A total staff compliment of 122 people is within the structures of the municipality. These include subordinate managers, officers, administrative assistants and general workers. The municipality has made remarkable strides to fill vacant positions; especially at top management since all section 54 and 56 Managers are filled. The status on the filling of the critical positions is as follows:

0

20

40

60

80

African Coloureds Indians Whites

66

0 10 3

32

4 5 2

Male Females



Table.49

POSITIONS STATUS QUO REASONS AND

INTERVENTION FOR NOT

FILLING THE POSITIONS

ANTICIPATED TIME

FRAME FOR FILLING

THE OUTSTANDING

POSITIONS

Chief Protection Officer

Re-advertised Shortlisting and Interview process will be held

before end of September 2017 30 September 2017

PMS Officer Re-advertised Shortlisting and Interview process will be held before end of August 2017

30 August 2017

Asset and Fleet Officer Advertised and Shortlisted

Awaiting for appointment before the end of July 2017

31 July 2017

Financial Manager Not filled Awaiting SALGA information on Salary levels

January 2018 January 2018

LUMS and Building Inspector Officer

Advertised Interviews to be held in January 2018

January 2018

Environmental

Officer

Not filled Awaiting SALGA information on Salary

levels January 2018

Secretary: CFO Advertised Shortlisting and Interview process will be held

before end of June 2017 30 June 2017

Secretary: Community Services

Not filled To be advertised June 2017

The process of filling these positions is in progress. However, the municipality is struggling to attract appropriate candidates to fill some strategic positions due to the level or grading of the municipality.

4.7 HUMAN RESOURCES POLICIES Dannhauser Municipality adopted various human resource related policies. Dannhauser Municipality adopted various human resource related policies. These are detailed in below; Table.50: Human Resource Policies

Policy Date of Adoption

Status

Code of Conduct 2010 Implemented

HIV/AIDS Policy 2010 In process for compilation

HIV/AIDS Strategy 2007 Implemented

Sexual Harassment Policy 2010 Implemented

Smoking Policy 2010 Implemented

Recruitment Policy 2009 Implemented

Subsistence and Travelling Allowance Policy 2014 New Policy Adopted on Feb 2014

Overtime Policy 2010 Implemented

Skills Development Policy 2010 Implemented

Mayoral Vehicle Policy 2010 Implemented

Supply Chain Management Policy 2011 Implemented

Employment Equity Policy 2007 Implemented

Property Rates Policy 2009/2010 Implemented

Indigent Policy 2011 Implemented



4.8 HUMAN RESOURCES SERVICES The top service delivery priorities for human resources in 2016/17 were ensuring the adequate skills capacitation of the current employees and the adoption of the new organogram for 2017/18 financial year.

4.9 FINALISATION OF NEW ORGANISATIONAL STRUCTURE: IN PREPARATION FOR MIGRATION TO 2017/18 STRUCTURE

The process of developing the new for 2017/18 Structure was completed just before December 2017 in the 2016/17 Financial Year (FY). Subsequent to that all measures to have all jobs evaluated were put in place.

4.10 STAFF ALLOCATION/PLACEMENT PROCESS ON 2016/17 STRUCTURE In the 2016/2017 FY the Organization went through the staff allocation/placement based on the new 2017/18 Structure. The approved Structure although adopted in 2016/17 FY, will be implemented, guided by the approved Staff Allocation/Placement Policy. There was no need to engage Labour as this process primarily focused on the creation of new positions and levels of the positions inclusive of the duties allocated in the new positions. No TASK Grading system was applied nor were there any Staff Allocation Disputes.

4.11 HUMAN RESOURCES - ORGANIZATIONAL DEVELOPMENT PERFORMANCE During the 16/17 financial year the HR Unit - identified certain priorities that must be met in order to unlock the organization’s human capacity potential towards the achievement of the Municipality’s strategic priorities and outcomes. During the year under review, the Municipality’s departments indicated facing challenges of low staff morale. A number of findings were obtained and included multiple factors, inter alia: Shortage of staff in critical and crucial positions; Shortage of office work space, as employees are cramped in small offices; Lack of training and development; Managers and supervisors highly over worked as they are limited to delegating duties to their

subordinates due to staff shortages; and Service Delivery affected due to a shortage in staff.

4.12 ADDRESSING ORGANISATIONAL DEVELOPMENT The counter measures put in place to address gaps identified were as follows: New positions identified to aid in capacitation of critical and crucial areas; Job Adverts designed for the new positions to be recruited for in 2017/18; Building on new municipal offices funded through a Loan applied for from DBSA in 2017/18; and Deploying of staff members to accredited skills training and development for their relevant positions;

4.13 INSTITUTIONAL ARRANGEMENTS Dannhauser Municipality has a staff component of 122 of which some are permanently employed, and five (5) of which are on contracts. The Municipality currently employs five (5) financial interns and this in line with a National Government Programme, viz. the Municipal Financial Management Programme. The table below outlines the different Municipal Directorates and the relevant responsible managers:



Table.51

DIRECTORATE MANAGER RESPONSIBLE

EXECUTIVE COUNCILLOR

Municipal Manager WB Nkosi Councilor JP Phakathi

Budget & Treasury DM MOHAPI Councilor JP Phakathi

Corporate Services S Narothum Councilor PP Nene

Community Services S Naidoo Councilor SN Ndlovu

Engineering Services MR Nene Councilor SD Msibi

Portfolio Committee and Land Resources

WB Nkosi Councilor SG Sithole

MPAC DM Mohapi Cllr VM Ndaba

SWOT ANALYSIS – MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT

Figure.22

STRENGTHS OPPORTUNITIES

Council support in all areas of operation; Sound labour relations Sound management and administrative

practices; All Section 56 / 54 positions filled; Human Resources policies in place; and Employment Equity practices in place

Implementation of policies timeously; Filling in vacant positions; Extended the working space environment; and Training staff members regularly Development of a strong cohesive

organizational structure; and Ensuring a performance driven results

outcomes;

WEAKNESSES THREATS

Working space is limited, making it a non-conducive environment;

Lack of timeous Implementation of policies; Some positions still vacant; A senior & well-experienced IT person is

required; and Skills development and training not undertaken

regularly.

High staff turnover; Lack of skills retention; Fraud & Corruption; Low morale of staff due to lack of office space;

and Salary disparities in comparison with other

surrounding municipalities.



Chapter 5 FINANCIAL PERFORMANCE

5.1 COMPONENT D: FINANCIAL SERVICES

This component includes: Indigents (Free Basic Services), Financial Services and Supply Chain Management.

5.1.1 INDIGENTS (FREE BASIC SERVICES) Council receives Equitable Share to subsidise those who cannot afford to pay for the minimum needs in life. The objective in calculating the amount to be subsidised, must be to prevent an increasing balance on the account of an indigent as it will be difficult to recover the debt in a humanly way. According to the Municipal Systems Act 2000, Section 74(3) and 75(2) stipulates, “A tariff policy may differentiate between different categories of users/debtors.” Criteria for Approval: 1. That the gross household income for qualification as a registered Indigent be determined each year by

Council in terms of the tariff register. Currently the threshold income is R3200.00, and pensioners 100% rebate; and

2. That the prescribed application forms be completed annually The municipality has an indigent policy in place, and has developed an indigent register therefor implementing the policy. The policy is reviewed twice per financial year, it further enables the municipality to provide free basic services to the needy. The municipality collected date on Indigent families as per the municipality’s Indigent Policy; currently the municipality is in the process of reviewing this data to ensure that the correct information is captured and the data is updated. The municipality provides free basic services such as electricity, water, refuse and sanitation, however water and sanitation are provided by the Amajuba District Municipality. Electricity is provided by ESKOM, then the municipality pays the due allocation to ESKOM as per registered indigent data that is approved by the Municipality. The indigent register allows the municipality to determine the financial needs of basic service delivery service resulting in it being able to develop a Financial Plan and Budget. The constant updating of the register will further allow for reliable cost updating for the free basic services delivery.

5.2.1 FREE BASIC SERVICES DELIVERED – 2016/17 (INDIGENT REGISTER) Table.52 Description of Indigent Service 2015/16

Budget 2015/16 Actual

2016/17 Budget

2016/17 Actual

Water

Waste Water (Sanitation

Electricity

Waste Management (Solid Waste

Total:

5.2.2 FINANCIAL SERVICES The National Key Performance Area for this business unit is Financial Viability & Management. Programmes pertaining to the sections are as follows: Budget & Treasury-Compliance and Annual Financial Statements. Expenditure-Trade and Sundry Payments, Payment of all invoices within 30 days, management of general

insurance fund, remuneration management. Revenue Management-Credit Control and billing, policies. Supply Chain &Supply Chain management, and Asset Management



5.2.2 DEBT COLLECTION The debt collection rate has improved, however is not ideal at this stage. The debt collection task team put together is addressing collection challenges. Table.53

Details of

the types of account raised and recovered

2015/2016 2016/2017

Billed in Year

Actual Collection

for accounts billed in year

Proportion of accounts

value billed that were collected

in the year %

Billed in year

Actual Collection

for accounts billed in year

Proportion of accounts

value billed that were collected

in the year %

Property Rates

Refuse

Other

The debt collection has improved from 2015/16 to 2016/17 due to the appointment of a debt collection officer. Internal control systems have been strengthened on how debtors must be invoiced, communicating with debtors and debt collected. The management of revenue is governed by policies that are directly aligned to revenue management and debt collection such as billing systems and indigent policies.

5.2.3 GRANT PERFORMANCE 5.2.3.1 GRANTS AND SUBSIDIES

The Municipality had a grant register in place which was updated on a regular basis. The following

grants/subsidies were received during the year under review.

Table.54: Grants/Subsidies Received & Expenditure

Grant/Subsidy 2016/2017 2015/2016

Received (R)

Expenditure (R)

% Received

(R) Expenditure

(R) %

Electrification 5 000 000 5 000 000 100%

Municipal Infrastructure Grant

21 488 885 21 488 885 100% 21 074 000 21 074 000 100%

Municipal Support Improvement Grant

0 0 100% 934 000 934 000 100%

Equitable Share 76 488

880 76 488 880 100% 74 181 000 74 181 000 100%

Municipal Finance Management Grant

1 825 000 1 825 000 100% 1 800 000 1 800 000 100%

Extended Public Works Programme

1 139 307 1 139 307 100% 1 000 000 1 000 000 100%

Library Provincialitions 559 000 559 000 100% 553 000 553 000 100%

Cyber Cadet Grant 179 000 179 000 100% 170 000 170 000 100%

Small Town Rehabilitation 4 834 960 4 834 960 100% 15 048 985 15 048 985 100%

TOTAL R 106 515 032 R 106 515 032 100% R 119 760 985 R 119 760 985 100%

The municipality did not receive an electrification grant in the 2016/17 financial year as indicated in table.54,

the grant was fully utilised in 2015/2016.



5.3 FINANCIAL HEALTH OVERVIEW

5.3.1 REVENUE Table.55 Revenue

SOURCE AMOUNT

National Grants &

Subsidies

R 100,405,000.00

Provincial Grants &

Subsidies R 738, 000.00

Rates General R 17,617,487.00

Other Income R 20,846,677.00

Refuse Removal R 1,048,075.00

Interest: R 3,000,000.00

TOTAL R 143,655,239.00

The municipality has a budget which constitutes of National and Provincial Grants, Rates and Taxes, Refuse Removal Services, Traffic Fines and Learners and Licences, and other services.

5.3.2 EXPENDITURE Table.56: Expenditure

EXPENDITURE AMOUNT %

Salaries R 34,075,078.00 24%

Councillor Allowances R 7,924,525.00 5%

General Expenses R 36,270,239.00 25%

Repairs & Maintenance R 5,779,552 .00 4%

Contribution to Capital Budget R 51,499,390 36%

Grant Expenditure and Provisions R 8,100,000 6%

TOTAL R 134 512 336

100%

The budgeted expenditure amounts to R 134 512 336 which exceeds the projected revenue. This indicates that the financial needs of the municipality exceed the available financial resources.

5.3.3 GRANTS AND SUBSIDIES The total budget of the municipality is made up of grants and subsidies which comprises of the following categories:

National Grants & Subsidies,

100,405,000

Provincial Grants & Subsidies,

738,000

Rates General, 17,617,487

Other Income, 20,846,677

Refuse Removal, 1,048,075

Interest: , 3,000,000

Income Source 2016/2017

Salaries 24%

Councillor Allowances

5%

General Expenses

25%

Repairs and Maintenace

4%

Contr. To Capital Budget

36%

Grant Expenditure

and Provisions

6%

Expenditure 2016/2017



Equitable Share, Municipal Infrastructure Grant, Financial Management Grant and Special Programmes Grants.

Table.57: Grants

GRANTS 2015/16 2016/17 2017/18

EQUITABLE SHARE R 70 358 000.00 R 70 144 000.00 R 67 748 000.00

FINANCIAL MANAGEMENT R 1 800 000.00 R 1 825 000.00 R 1 900 000.00

MUNICIPAL SYSTEM IMPROVEMENT

R 930 000.00 R 957 000.00 R 1 033 000.00

MUNICIPAL INFRASTRUCTURE R 21 074 000.00 R 21 767 000.00 R 22 807 000.00

ELECTRIFICATION GRANT R 5 000 000.00 R00 R00

SMALL TOWN REHABILITATION R 00 R 00 R 00

MWIG ALLOCATED DISTRICTS R 6 293 000.00 R 11 779 000.00 R 8 502 000.00

NATIONAL RURAL HOUSEHOLD INFRASTRUCTURE

R 4 500 000.00 Indirect Grant

R 5 000 000.00 Indirect Grant

R 00, 00

EXPANDED PUBLIC WORKS PROGRAMME

R 1 000 000.00 R 00, 00 R 00, 00

COUNCILLORS ALLOWANCES R 3 823 000.00 R 3 997 000.00 R 4 173 000.00

5.3.4 EMPLOYEE RELATED COSTS (INCLUDING COUNCILLOR ALLOWANCES)

The municipality spends approximately 23% (R 28 220 926) of its annual budget on salaries. This is in line with the stipulated requirement from Treasury (33%).

5.3.5 OPERATING INCOME

Table.58: Operating Income

Income 2016/2017 2015/2016

Projected Actual Projected Actual

Refuse Removal – Service Charges 1 048 075 1 033 703 981 000 144 196.63

Traffic Fines 351 446 850 990 169 000 87 805

Motor Licensing 800 000 2 318 403 604 031 1 660 216

Drivers Licensing 204 412 195 808 388 453 135 091

Permits 0 0 0 0

Leaners Licensing 199 580 196 920 189 355 192 800

Rates 16 954 475 17 644 629 16 325 127 16 395 134.95

Grants & Subsidies 101 024 000 106 279 386 104 712 000 104 712 000

Other Income 4 643 815 8 719 856 18 791 000 1 758 130

Total R125 225 803 R 137 239 695 R 142 159 966 R 125 085 373.58



5.3.5.1 Actual Income 2016/2017 vs 2015/2016

Figure.23

2016/17 MANAGEMENT COMMENTS

Grants and subsidies received was higher than any other income generated by the municipality; and

Rates collected followed grants and subsidies received;

5.3.6 MUNICIPAL EXPENDITURE, LOANS, LEASES AND INVESTMENTS

5.3.6.1 EXPENDITURE

DANNHAUSER LOCAL MUNICIPALITY – OPERATING & CAPITAL BUDGETS Table.59

DRAFT TOTAL OPERATING AND CAPITAL BUDGET 2013

-2016 PER DEPARTMENT

INCOME Original Budget

2015/16

Adjusted Budget

2015/16

Projected Budget

2016/17

Projected Budget

2017/18

Projected Budget

2018/19

COUNCIL (3 823 000) (3 823 000) (5 478 000) (3 997 000) (4 173 000)

FINANCE (98 885 242) (99 342 344) (11 227 059) (100 648 482) (100 019 572)

CORPORATE SERVICES (98 885 242) (100 329) 0 (105 847) (105 847)

TECHNICAL SERVICES (26 359 000) (26 298 928) (22 047 000) (27 004 299) (23 058 300)

COMMUNITY SERVICES (2 742 388) (2 742 002) (3 246 313) (1 809 362) (1 912 443)

PROTECTION SERVICES (1 617 282) (1 498 737) (1 656 867) (1 581 168 ) (1 674 456)

IDP (930 000) (934000) 0 (957 000 ) (1 033 000)

MUNICIPAL MANAGER 0 0 0 0 0

TOTAL INCOME (134 564 003) (134 739 339) (43 655 239) (136 103 158) (41 959 003)

EXPENDITURE Original Budget

2015/2016

Adjusted Budget

2015/16

Projected Budget

2016/17

Projected Budget

2017/18

Projected Budget

2018/19

COUNCIL 18 784 009 19 123 868 18 790 688 20 236 584 21 350 948

FINANCE 19 706 660 19 759 386 22 752 644 20 846 152 22 076 075

CORPORATE SERVICES 14 410 203 10 786 399 13 749 644 11 379 651 12 051 050

TECHNICAL SERVICES 57 999 313 60 209 252 53 163 023 62 273 823 65 926 596

144 88 1660 135 0 193 16395

104712

1758 1034 851 2318 196 0 197

17644

106297

8719

Actual Income Earned - '000

2015/16 2016/17



COMMUNITY SERVICES 13 327 265 12 721 010 189 51413 13 420 666 14 212 485

PROTECTION SERVICES 4 067 645 3 786 858 4 650 579 3 995 135 4 230 848

IDP 4 811 498 4 503 776 5 665 497 4 751 484 5 031 821

MUNICIPAL MANAGER 3 406 561 3 643 116 11 687 770 3 843 487 4 070 253

TOTAL EXPENDITURE 134 513 153 134 533 666 143 648 784 140 746 982 148 950 076

SURPLUS / DEFFICIT (50 8500) (205 673) 99 993 545 4 643 824 106 991 073

The major expenditure categories for the Dannhauser Municipality are set out in the table below.

Table.60: Operating and Capital Expenditure

Expenditure Item 2016/2017 2015/2016

Projected Actual Projected Actual

Salaries, wages and allowances 36 998 396 33 720 884 29 339 221 29 229 515

General expenditure 36 270 000 60 225 581 35 895 485 60 694 548

Repair and maintenance expenditure

7 518 041 4 573 949 5 126 997 6 163 643

Capital expenditure 51 158 000 68 204 621 78 561 955 60 346 162

Grant expenditure 101 143 000 106 279 386 117 789 000 104 181 893

Total: Gross/Net expenditure R 233 087 437 R 273 004 421 R 266 712 658 R 260 615 761

7.4.3.2 Actual Expenditure Comparison – 2015/16 Vs 2016/17 (‘000 000)

Figure.24

2016/17 MANAGEMENT COMMENTS

Grant and subsidies were fully utilised;

Capital expenditure was higher than general expenditure;

General expenditure was in line with the adjustment budget; and

Salaries, wages & allowances was in line with adjustment budget.

29

61

6

60

104

34

60

5

68

106

0

20

40

60

80

100

120

Salaries, Wages & Allowances General Expenditure Repair & Maintenance Capital Expenditure Grant Expenditure

2015/16 2016/17



5.3.7 LOANS, LEASES AND INVESTMENTS

As indicated in table.61 below, Dannhauser Municipality had neither bank overdrafts nor loans nor finance

leases for the year under review and the previous year.

Table.61: Bank Overdraft, External Loans and Leases

Loan Type Interest

Rate Balance 30/06/2016 Balance 30/06/2017

Bank overdraft Overdraft - 0 0

External Loans Short/Long Term - 0 0

Finance Leases Lease - 0 0

Total 0 R 0

Table.62: Investment Analysis 2016/17 Investment Description Balance (R) 2016/2017 Balance (R) 2015/2016

Standard Bank - Call Account 7 634 756 8 583 669

Nedbank - Call Account 6 994 104 4 132 507

First National Bank - Call Account 5 459 290 4 623 136

ABSA - Call Account 8 912 186 7 670 116

Stanlib - Call Account 0 6 586

Investec 15 160 816 10 189 256

Total R 44 161 152 R 35 205 324

Investment Call Accounts Comparison (30 June – 2016/2017 vs 2015/2016)

Figure.25

5.3.8 SUPPLY CHAIN MANAGEMENT The Municipality’s Supply Chain Management unit is a support function for all business units within the council to ensure provision of efficient, transparent, fair, equitable and cost effective procurement services hence assisting the business units to implement their service delivery priorities.

5.3.8.1 KEY FOCUS AREAS FOR 2016/2017 FINANCIAL YEAR

2016/17

2015/16

44 161

35 205

Investment - Call Accounts Grand Totals R '000

Investment - Call Accounts Grand Totals



5.3.8.1.1 Monitoring and Contract Management

In terms of section 116 (2) of the MFMA the accounting officer of a municipality must - “Take all reasonable steps to ensure that a contract or agreement procured through the supply chain management policy of the municipality or municipal entity is properly enforced; monitor on a monthly basis the performance of the contractor under the contract or agreement; establish capacity in the administration of the municipality to assist the accounting officer in carrying out the duties and to oversee the day-to-day management of the contractor under the contract or agreement;” therefore we have established a Contract management Office(monitoring) within the Supply chain management unit in order to adhere to the above act. These are activities of the contract management Monitoring Section: All contracts are monitored, by having regular sites visits and attending monthly site progress meetings. Monitoring of expenditure on supplies and services contract. Monitoring and rotating of contracts with panel of contractors to ensure equal distribution amongst the prospective suppliers. Verifying variation Orders on projects by Project managers and recommend to the Bid Evolution committee. There are challenges in Integrating of project management and Contract management

5.3.8.2 SERVICE STATISTICS FOR SUPPLY CHAIN MANAGEMENT 12 Monthly reports on tenders awarded were submitted during the year 2016/2017 financial year. There were …………….. contracts awarded in 2016/17 and others that commenced prior to 2016/17 and

are still in progress. The following are in place;

5.3.8.2.1 LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS Table.63 LONG TERM CONTRACTS (LARGEST CONTRACTS ENTERED INTO PRIOR TO 2016/17 AND CONTINUING INTO OR BEYOND

2016/2017) R’ 000

Name of Service Provider (Contract Number)

Description of Services Rendered by the Service Provider

Start Date of

Contract

Expiry date of Contract

Project Manager

Contract Value

5.3.8.2.2 PERFORMANCE MANAGEMENT OF CONTRACTS FOR THE PERIOD 1 JULY 2016 - 30 JUNE 2017

In terms of section 116 (2) of the MFMA the accounting officer of a municipality must - “Take all reasonable steps to ensure that a contract or agreement procured through the supply chain management policy of the municipality or municipal entity is properly enforced; monitor on a monthly basis the performance of the contractor under the contract or agreement; establish capacity in the administration of the municipality to assist the accounting officer in carrying out the duties and to oversee the day-to-day management of the contractor under the contract or agreement;”



In order to fulfill the requirements of the legislation quoted above the Supply chain Management unit prepares a monthly report on the Performance of all suppliers. This report is tabled at the Strategic Management Committee on a monthly basis thereafter it is forwarded to the other portfolio committees before it is tabled at Council. The table indicates a schedule summarizing the performance of all long-term contracts on a monthly basis that the municipality entered into.

5.3.8.2.2 MONTHLY REPORTS FOR THE PERIOD 1 JULY 2016 - 30 JUNE 2017 Table.64 Name of Service

Provider (Contract Number)

DESCRIPTION OF SERVICES RENDERED BY THE SERVICE

PROVIDER

CONTRACT AMOUNT

LEVEL OF PERFROMANCE & CURRENT WORK STATUS

5.3.8.2.3 SERVICE PROVIDER PERFORMANCE ASSESSMENT

The municipality can provide a municipal service by entering into a service delivery agreement (service level

agreement) in terms of Section 76 (b) of the Municipal System Act with an external service provider. The

municipality is responsible for monitoring and assessing the implementation of the agreement, including the

performance of the service provider in accordance with section 41 of the Municipal Systems Act.

Section 46 (1) (a) (b) states that “(1) A municipality must prepare for each financial year a performance report

reflecting –

a) the performance of the municipality and of each external service provider during that financial

year;

b) a comparison of the performance referred to in paragraph (a) with targets set for and

performance in the previous financial year, and

c) Measures taken to improve performance.

The municipality have taken strides to ensure compliance with the above quoted legislation however in terms

of services provider performance comparison are sometimes not possible due to the fact that projects are

completed within the particular financial year. The table below illustrates the list of services provided by

external service providers.



Table.65: Service Providers Performance Service

provided in

terms of the

Service

Level

Agreement

(SLA)

Value of Project

2015/16

Performance Information Assessment of

Service

Providers

Performance

2015/2016 2016/2017

Target Actual Target Actual G S P

Small Town

Project

R 25 000 000 Completion of 6 km

of tarred road,

sidewalk, drainage

system and curbing

for the extended

Industrial Park,

Small Town project.

Constructed 6

km tarred road,

erection of

drainage system

and construction

of sidewalks and

curbing.

Secure a bulk

water use

license, and

develop an

Investment

Framework that

invites

prospecting

investors to set

up operations.

This will be from

2016/17

financial year to

the 2017/18

financial year.

Engagement

with Amajuba

District

Municipality

(Water Services

Authority)

commenced.

Proposed

Investment

Framework

budget

presented

through

committees for

approval and

recommendation

to Council.

✔

Rural Road R 13 374 642 Construction of

5km Rural road in

Ward 2 and 5

5km of Rural

road constructed

inward 2 and 5

Construction of

4 Km of Rural

road in Ward 10

& 11

4 Km of Rural

road in Ward 10

& 11 completed.

✔

Urban Road R 3 000 000 Completion of 4.7

kms in urban road

1.7 km of road

constructed in

Urban road (Tar)

Construction of

2 Km tarred

Urban Road in

Wards 2 & 3.

No construction

of 2 Km tarred

urban road.

✔

Traffic Centre R 9 000 000 Traffic Center

offices, ablution

blocks, Testing

Ground, Concrete

fence and

Electrification of the

facility

Constructed of

Traffic Center

with ablution

block, Testing

Ground,

concrete fence

and

electrification of

the facility

N/a N/a ✔

Municipal

Office Building

R 21 000 000 Building Municipal

Office (planning

and Designs

approval)

Designs and

plans developed

and approved

Development of

Business plan

and Submission

for funding with

DBSA for

construction of

Municipal

Offices

Business plan

developed and

submitted for

funding. DBSA,

approved

funding for the

construction of

the Municipal

Offices.

✔

Ward 2

Community

Hall

R 3 000 000 Construction of

Ward 2 Hall

SCM processes,

planning phase

and

commencement

of the project

Monitor and

report the

construction

activity, inspect

building and

close off project.

Construction

completed,

building

inspected and

waiting for

closure

certificates.

✔

Mast Lights R 359 100 Erection of Mass

light for Ward 6,8

and 11

Mass light for

Ward 6,8 and 11

constructed

Maintain street

lights that are

dysfunctional.

Maintained and

upgraded 652

street lights in all

wards.

✔

Electrification

(Infill)

R 11 000 000 Electrification in-fills

projects for 979

households

979 households

electrified in all

Wards

Electrify

additional

household in-

fills.

All electrical

household in-fills

completed.

✔

Sports field

Upgrade

R 400 000 Construction of

sports fields in all

Wards (Grand

stands installation)

10 Grand stands

purchased and

allocated in

different sports

fields

✔



LED Farm R 1 500 000 Appointment of the

Technical Support

Consultant for

implementation of

the LED Projects

Technical

Support

Consultant

appointed

different

business plans

developed and

engage

investors for

investing in

Dannhauser,

Implementation

of the Agri-Park

project.

Undertake the

Implementation

of the Agri-park

Farmer

Producer

Support Unit

with Department

of Rural

Development

and Land

Reform

(DRDLR).

Renier Farm

purchased by

municipality for

the Agri-Park

projects.

DRDLR

commenced the

supporting of

Co-operatives

on Renier Farm

and has

delivered seeds

to the farmers at

Renier Farm.

Municipality has

fenced the farm

and has

reopened the

borehole

situated at the

farm to provide

water for

farming

activities.

✔

Compilation of

AFS 2016/17

R 380 000 Review of the

2015/2016 AFS

2015/2016

Annual Financial

Statements

were reviewed

as per GRAP

requirements

Review of the

2016/2017 AFS

Review of the

2016/2017 AFS

finalized before

the end of

August 2017

Good

Review of

Asset Register

2016/17

R 493 467 Review and

Verification of the

2015/2016 Asset

Register

2015/2016

Asset Register

was reviewed

and verified as

per GRAP

requires

Review and

Verification of

the Asset

Register

Review and

Verification of

the 2016/2017

Asset Register

finalized by the

end of August

2017

Good

Urban Precinct

Plan

R 446 994 Compilation and

Extension of the

Urban Precinct

Plan

The process for

the Compilation

and Extension of

the Urban

Precinct Plan

Approval of the

Urban Precinct

Plan extension.

The Precinct

Plan has been

approved by

MANCO and

Exco.

✔

References: G = Good = the service has been provided at acceptable standards and within the timeframe stipulated in the Service Level Agreement S = Satisfactory = the service has been provided at acceptable standards of the timeframe stipulated in the Service Level Agreement P = Poor = the service has been provided below acceptable standard



CHAPTER 6 AUDITOR GENERAL FINDINGS

6.1 AUDITOR GENERAL – PREVIOUS FINANCIAL YEARS

The figure below indicates the findings of the Auditor General’s reports on Dannhauser municipality.

6.1.1 AUDITOR GENERAL REPORT 2014 / 2015 FINANCIAL YEAR The Auditor-General performed an audit and issued a report on the following for 2014/15: Fair presentation and absence of material misstatements in the financial statements (i.e. all transactions or event have been dealt with in accordance with accounting and financial reporting disciplines); Reliable, usefulness and credible performance information for purposes of reporting on predetermined performance objectives; and Compliance with key legislation governing financial and performance matters. The Auditor-General had expressed an unqualified opinion on the Annual Financial Statements for year ending 30 June 2015 and Performance Information with no findings (“clean audit”).

6.1.2 AUDITOR GENERAL REPORT 2015 / 2016 FINANCIAL YEAR In the 2015/2016 financial year the Auditor General expressed an UNQUALIFIED OPINION for the Municipality. The basis for the Unqualified Opinion is as follows: The financial statements submitted for auditing were not prepared in all material respect in accordance

with the requirements of section 122 of the MFMA. Material misstatements of non-current assets, current assets and disclosure items identified by the auditors in the submitted financial statement were subsequently corrected and the supporting records were provided, resulting in the financial statements receiving an unqualified audit opinion.

Matters Raised that required attention and improvement were as follows: 1. Leadership The accounting officer to adequately exercise oversight responsibility over financial reporting, as well as

compliance with legislation. 2. Financial management Management to implement proper record keeping in a timely manner to ensure that the financial

statements are supported by complete and accurate information. Management to adequately review and monitor compliance with legislation to minimise material

misstatements were identified.

3. Governance The risk management activities performed to be adequate to ensure that key financial, and compliance

risks are identified and addressed timeously. Predetermined Objectives: The Auditor General performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the basic service delivery and local economic development objectives presented in the annual performance report of the municipality for the year ended 30 June 2016. The



following were undertaken;

An evaluation on reported performance information against the overall criteria of usefulness and reliability.

Evaluation of usefulness of the reported performance information to determine whether it was consistent with the planned objectives.

Performance of tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

An assessment of the reliability of the reported performance information to determine whether it was valid, accurate and complete.

Findings No material findings in respect of the selected objectives were identified.

6.1.3 AUDITOR GENERAL REPORT 2016 / 2017 FINANCIAL YEAR



CONCLUSION



CHAPTER 7 (ANNEXURE 1) ORGANISATIONAL DEVELOPMENT PMS / SDBIP 2016/17

7.1 PERFORMANCE MANAGEMENT OVERVIEW AND PROCESS The performance management process is implemented to enhance and improve performance planning, implementation, reporting and measurement; Dannhauser has ensured the following actions; Reduction of KPI’s reported on, this enables a greater focus on addressing the municipal strategic

objectives identified in the IDP while applying an outcomes based approach; The SDBIP has a column of the Strategic Objectives cross-linked with rows of KPI’s for each municipal

operational unit, and interlinked with a column which represents the Portfolio of Evidence (P.O.E); The IDP Manager undertakes the functionality of the Performance Management System as there is a

shortage of staff within the municipal structures; The municipality currently uses a “Top Layer” system, this only monitor and evaluates the performance of

Section 56 & 54 managers; a “Middle Layer” which evaluates staff members below Section 56 & 54 appointments is planned for implementation. The SDBIP developed takes into account the “SMART” principle in the setting of indicators and objectives;

In 2016/2017 financial year, the municipality did not have a “Standard Operating Procedure” to evaluate performance, but this has been drafted for consideration in the 2017/18 financial year; and

A Performance Management Policy is currently in place, and it is reviewed on a yearly basis.

7.2 THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN

The performance management at the municipality is evaluated by the “Top Layer SDBIP” both at the organizational level and the entire SDBIP at departmental level. The SDBIP, Budget and IDP are interlinked through Municipal Strategic Objectives and financial allocations, thus allowing for measurable business operations denoted in the form of KPI’s in the SDBIP. MFMA Circular No.13 gives direction to the following; Alignment of the IDP and Budget; Strategic priorities in the IDP to be addressed by the budget; The SDBIP to indicate and give direction to what the municipality will do in a financial year; and The SDBIP to form the basis of performance against goals set during the budget / IDP processes.

7.3 DANNHAUSER PERFORMANCE MANAGEMENT COMPLIANCE & CHECKLIST

For performance compliance, the following are in place; Table.66

DESCRIPTION YES / (NO)

1 Draft Performance Management Framework / Policy Yes

2 All MSA s57/56 Performance Contracts Signed Yes

3 Audit Committee Yes

4 Municipal Public Accounts Committee Yes

5 Quarterly Performance Reporting To Council Yes

6 Annual Reporting To Council Yes



7.4 DEVELOPMENT STRATEGY The development strategy for the Municipality is designed to fit-in and give effect to the intention of both the national and provincial development strategies. This includes at a National Development Plan (Vision 2030) and various government programs. The Municipal IDP also fits within the provincial development framework as set out in the PGDS. The Municipality’s strategy covers the following: Strategic fit (alignment with national and provincial development strategies). DLM long-term strategic direction and organizational culture. DLM short-to-medium term strategies and action plans.

7.5 ALIGNMENT WITH NATIONAL AND PROVINCIAL STRATEGIES

To enhance the performance of the municipality and delivery of services, the municipality is measuring all its

performance targets / outcomes based on national goals. The Service Delivery Budget and Implementation

Plan (SDBIP) 2016/2017 is aligned to the national goals of the six ( 6 ) KPA’s, integrated with the Strategic

Objectives in the IDP 2016/2017 in line with the six ( 6 ) KPA’s and then into measurable Key Performance

Indicators (KPI’s) per department. The strategic approach which is the SDBIP 2016/2017 is meant to highlight

the impact that the municipality seeks to create in the short to long-term period. As indicated in the IDP, in

addition to Outcome 9, the Municipality will contribute to the attainment of outcomes 2, 4, 6, 8, 10 and 12

with the 6 KPAs as the strategic areas for intervention. As such, the development strategy for the Municipality

is designed to address issues that are specific to the Municipality whilst also contributing to the attainment of

the National and Provincial Priorities.

7.6 LEGISLATIVE FRAMEWORK ON ANNUAL PERFORMANCE REPORT

Section 46 of the Municipal Systems Act requires a municipality to prepare for each financial year a

performance report reflecting-

The performance of the municipality and of each external services provider during that financial year;

A comparison of the performances referred to in paragraph (a) with targets set for and performances in

the previous financial year; and

Measures taken to improve performance.

An annual performance report must form part of the municipality’s annual report in terms of chapter 12 of the

Municipal Finance Management Act. Section 121 (1) (3) c) of the Municipal Finance Management Act (MFMA)

56 of 2003, requires that:

(1) Every municipality and every entity must for each financial year prepare an annual report. The Council of a

municipality must within nine months after the end of a financial year deal with the annual report of the

municipality and of any municipal entity under the municipality’s sole or shared control in accordance with

section 129.

3) The annual Report of a municipality must include the annual performance report of the municipality

prepared by the municipality in terms of section 46 of the Municipal Systems Act.

Section 129 (1) a) – c) of the Municipal Finance Management Act (MFMA) 56 of 2003, requires that:

(1) The Council of a municipality must consider the annual report of the municipality and of any municipal

entity under the municipality’s sole or share control, and by no later than two months from the date on

which the annual report was tabled in the council in terms of section 127, adopt an oversight report



containing the council’s comments on the annual report, which must include a statement whether the

council:

a) Has approved the annual report with or without reservations;

b) Has rejected the annual report; or

c) Has referred the annual report back for revision of those components that can be revised.

Every attempt has been made to align the submission of this Annual Performance Report with the submission

of the Annual Financial Statement for the Office of the Auditor General.

7.7 BASIS FOR COMPILATION OF THIS PERFORMANCE REPORT

The purpose of this report is to reflect the actual performance of the Dannhauser Municipality as measured

against the performance indicators and targets in its Integrated Development Plan (IDP) and Service Delivery

and Budget Implementation Plan (SDBIP) 2016/2017. Good performance information helps identify what

policies and processes work and why they work. Performance information is essential for effective

management, including organizational planning, monitoring and evaluation. Externally, performance

information allows effective accountability with appropriate information; members of the public and other

stakeholders are able to exert pressure for improvements and can better understand the issues involved.

Note: Not all indicators can be compared to previous years as a result of the ever-changing work environment

in local government. Some of the KPI’s of 2015/2016 have been phased out in the 2016/2017 financial year as

they have been fully accomplished, while others are new within the 2016/2017 financial year.

7.8 OVERVIEW OF ORGANISATIONAL DEVELOPMENT PERFORMANCE

7.8.1 PERFORMANCE MANAGEMENT SYSTEM FRAMEWORK

In the year under review, Dannhauser Municipality had developed and adopted its Performance Management System (PMS) Framework as guided by legislation. Council adopted this Framework on 27 July 2016. Municipality’s PMS is utilized in order to detect under performance early in the financial year under review; as such in order to improve on performance planning, implementation, reporting and measurement, the institution implemented the following actions: The Municipality’s SDBIP focused on strategic issues, which were well defined, output based and not

operational in nature and these were reported on quarterly. This afforded the institution the opportunity to focus of key service delivery matters;

Departmental operational plans were developed for monitoring and reporting operational programmes;

There is a column in the SDBIP for each KPI to ensure that the portfolio of evidence was populated correctly;

the Municipality endeavored during the development of the departmental SDBIPs that the “SMART” principle was adhered to in the setting of indicators and objectives; and

Emphasis was placed on ensuring that targets were specific and time bound, thus making it measurable; the Municipality also supported the Local Government Outcome 9 and its specific 7 outputs, and these included in both the organizational scorecard/SDBIP.

Dannhauser Municipality has a performance evaluation system in place only for Section 54/56 employees. The Municipality is looking at ways to cascade its PMS down to lower post levels. In the interim the PMS policy is implemented only to Section 54/56 Managers.



7.8.2 DEPARTMENTAL ROLES OF RESPONSIBILITIES

Dannhauser Municipality consists of five (5) departments. Departmental roles and responsibilities are outlined

in table.67 below.

Table.67: Departmental Roles and Responsibilities

DEPARTMENT FUNCTIONS

OFFICE OF

MUNICIPAL

MANAGER

Leadership

Overall responsibility for the organization; Form and develop efficient and effective administration; Advise

political structures and political office bearers; Ensure implementation of decisions of political structures;

Ensure implementation of national and provincial legislation/ laws; Accountability for financial and other

resources in the municipality; and IDP Alignment and Institutional Support

Performance Management System (PMS)

Organizational and Individual (high level) PMS; and Annual Report

Strategic Planning and Monitoring

Integrated Development Planning in terms of the MSA and the MFMA; and Performance Management

Systems in terms of the MSA and the MFMA.

Public Relations and Communication

Promote access to information; Provide ad hoc assistance to the Mayor’s office; Media liaison; and

Coordinate & organize official functions.

Internal audit and audit committee

Internal Audit, Performance & Risk Management

Internal Departmental Relations

Social Cohesion

Youth and Gender Matters; Plan and coordinate matters relating to youth and gender; HIV/AIDS; and

Culture & Gender

Local Economic Development

Local Tourism, Agriculture and Commerce and Industry; SMME Support and Poverty Alleviation; and

AFLED sub-committee administration

Financial & Project Management

Information Technology

Network administration

Departmental Policy Development

CORPORATE

SERVICES General administration

Fleet Administration

Office Facilities / Property Management

Ward Committees

Security Services

Cleaning/Gardening Services

Secretariat

Council Support

Legal Services

Human Resources and Labour Relations (Excluding Payroll)

Policies and Procedures

Capacity Building and Training

Governance

Registry/ Records Management

Human Resources; Skills Development ; Employee Wellness Programme; and Occupational Health & Safety


TECHNICAL

ENGINEERING

SERVICES

Water Service Authority

Governance, Planning & Regulation

Storm Water Management

Building Regulations

Electricity Maintenance (outsourced)



Integrated Waste Management

Municipal Roads

Public Works and Asset Maintenance; Land Reform; and Infrastructure Development

Municipal Infrastructure Grant Programme (MIG) and other allocations

Basic residential infrastructure; Public municipal services infrastructure; and Social institutions

infrastructure.

Fleet and Engineering Maintenance

Engineering Health and Safety

Development Planning Spatial Development Frameworks (SDF); Land Use Management Systems (LUMS); Geographic Information

Systems (GIS); Relevant IDP Sector Plans; and Housing and Land Reform Coordination

PMU Unit


FINANCIAL

SERVICES Management of Grants, Taxes, Levies, etc.

Income and Expenditure

Debt Management

Budgets (Planning, Implementation & Control)

Assets Management

Payroll

Risk Management

Loans and Investments

Financial Reporting

Supply Chain Management

Audit Administration

Departmental Policy Development COMMUNITY

SERVICES Regulate Passenger Transport

Traffic and Parking

Cemeteries and Crematoria

Cleansing

Disaster Management

Fire Fighting Services

Refuse removal, refuse dumps & solid waste

Child Care Facilities

Care and Burial of Animals

Pounds

Trade Regulations Licensing and control of undertaking that sell food to the Public; Control of undertaking that sell liquor to

the public; and Street trading

Facilities for Accommodation

Public places

Environmental Management

Pollution

Local Sport facilities

Municipal Parks and recreation


7.8.3 DISTRICT INTER-GOVERNMENTAL RELATIONS

Dannhauser Municipality has IGR structures in place and they are functionality though they are dependent on

the District Municipality as it is obligated to coordinate meetings.



7.9 INTEGRATED DEVELOPMENT PLAN, PERFORMANCE MANAGEMENT SYSTEMS AND BUDGET ALIGNMENT The MFMA Circular No.13 prescribes that: The IDP and budget must be aligned; The budget must address the strategic priorities; The SDBIP should indicate what the municipality is going to do during next 12 months; The SDBIP should form the basis for measuring the performance against goals set during the budget /IDP processes. Table.68: IDP, PMS and Budget Alignment 2016/2017

CRITERIA ESTABLISHED (YES/NO)

Is there a Council adopted PMS Framework? Yes, 29 July 2016

Is there a Council adopted Budget? Yes, 27 May 2017

Is there a Council adopted IDP? Yes, 27 May 2017

Were the above documents communicated with the community members? Yes

Does the municipality have measurable indicators as per National Treasury Framework for Managing Programme Performance Information? Yes

Does the IDP have priorities, strategic objectives, KPIs? Yes

Does the IDP have multi-year targets? Yes

Is there a Council adopted SDBIP? Yes, 29 July 2017

Does the budget align directly to the indicators? Yes

Are all Section 54/56 Managers in possession of signed performance agreements? Yes

Are the IDP indicators aligned to the Section 54/56 Managers performance plans? Yes

Were all quarterly performance reports developed and submitted to Council? Yes

Is the municipality with PMS audited by an Internal Auditor for functionality and legal compliance? Yes

Were all quarterly individual performance assessments conducted? No

Has the municipality cascaded PMS to levels below Senior Management? No

Is the municipality with appointed Audit Committee? Yes



Council adopts IDP/Budget Process Plan in July of each year. Council adopted the IDP Review and the Budget

for 2016/17 on 27 May 2016; the 2016/2017 IDP Review and Budget was adopted by Council timeously on 27

May 2016. Council adopted the PMS Framework Review 2016/2017 on 27 July 2016. Once IDP and Budget

were adopted, the SDBIP 2015/16 was finalized as prescribed by the MSA, MFMA and MFMA Circular 13.

Council approved this SDBIP on 29 July 2015. Assessments of the SDBIP were conducted on a quarterly basis;

reports of which were submitted to Council for consideration.

The mid-year performance assessment report (Section 72 Report of the MFMA) was prepared and adopted by

Council on 27 January 2017. Thereafter the adjustment budget process was initiated, resulting in an

Adjustment Budget 2016/17 being considered and approved by Council on 24 February 2017. There was a

need to revise the SDBIP in terms of Section 54(c) of the MFMA; Council adopted the revised SDBIP on 24

February 2017. Adoption/approval of all the aforementioned documents was publicized as prescribed by

Section 21(a)(1) of the MSA.

As indicated earlier, this report highlights 2016/2017 successes and areas that require improvement in an

endeavor to achieve the six (6) municipal strategic key performance areas. Table.69 below outlines these

strategic KPAs and weighting per department.

Table.69: Key Performance Areas and Weightings per Department

Key Performance Area (KPA) KPA

Acronym

Departmental KPA Weightings (%)

OMM FINS CORPS TECHS COMMS

Municipal Institutional Transformation and

Development MIT&D 10 10 40 10 10

Basic Service Delivery BSD 5 0 0 50 30

Local Economic Development LED 20 10 10 10 10

Good Governance and Public Participation GG&PP 40 40 40 10 10

Environmental and Spatial Management ESM 10 0 0 10 20

Municipal Financial Viability and Management MFV&M 15 40 10 10 20

TOTAL 100 100 100 100 100



7.10 PERFORMANCE AGAINST THE NATIONAL KEY PERFORMANCE INDICATORS

Table.70 below highlight performance of legislated key performance indicators (KPI) as set out in Section 10 of the Municipal Planning and Performance

Management Regulations of 2001.

Table.70: Assessment of National Key Performance Indicators

National Key Performance Indicator (NKPI)

Performance Information

2015/2016 2016/2017

Target Achieved Target Achieved

Basic Service Delivery

The percentage of households with access to basic level of water services Not Applicable (function of the District Municipality)

The percentage of households with access to basic level of sanitation services Not Applicable (function of the District Municipality)

The percentage of households with access to basic level of electricity services 20 439 hh 831hh/20 439hh = 4.1% 20 439 hh 831hh/20 439

The percentage of households with access to basic level of solid waste removal 3 000 hh 3000/3000 = 100% 3000hh 3000/3000 = 100%



2015/2016 2016/2017


Financial Viability and Management

The percentage of a municipality’s capital budget actually spent on capital projects identified

for a particular financial year in terms of the municipality’s IDP

100% MIG - 100% -Electrification

100%

100% MIG – 100%

Local Economic Development

The number of jobs created through the municipality’s local economic development initiatives

including capital projects

Not Available 279 jobs = 200 LED

opportunities (Zibambele

project) plus 79 EPWP

opportunities

143 jobs (Zibambele

project)

143 jobs created =100%

Institutional Development and Transformation

The number of people from employment equity target groups employed in the three highest

levels of management in compliance with a municipality’s approved employment equity plan

Not Available 20 (10 African Males, 2 Indian

Males, 7 African Females and

1 Indian Female) 20/86 = 23%

Not Available 20 (10 African Males, 2

Indian Males, 7 African

Females and I Indian

Female) 20/86 = 23%



The percentage of a municipality’s budget actually spent on implementing its workplace skills

plan

R1 968 000-00

R2 061 447-58

R2 788 000-00

R2 659 689-00

104%



2015/2016 2016/2017


Financial viability as expressed by ratios:

Debt coverage

A = B – C

D

Where –

“A” represents debt coverage

“B” represents total operating revenue

“C” represents operating grants

“D” represents debt service payments (interest and redemption) due within the financial year

1:1 (141 454 982.48 minus 81

743 277.59) divided by 25

720 827.22

= 1:8.68

1:1 (124 050 234 minus 104

514 687) divided by 23

262 721

= 1: 0.84

Outstanding service debtors to revenue

A = B

C

Where -

“A” represents outstanding service debtors to revenue

“B” total outstanding service debtors “C” represents annual revenue actually received for

services.

1:1 12 975 297.22 divided by 12

518 924

= 1:1.04

1:1 11 274 140 divided by 14

275 520.65

= 0.79 : 1

Cost coverage

A = B + C

D

Where –

“A” represents cost coverage

“B” represents all available cash at a particular time

“C” represents investment

“D” represents monthly fixed operating expenditure.

1:1 (12 518 924 plus 30 985

267.27) divided by (5 898

968.50 plus 19 821 858.72)

= 1:1.69

1:1 47 467 268 divided by

113 574 464/12

= 5 : 1



7.11 PERFORMANCE AGAINST SIX (6) MUNICIPAL STRATEGIC KEY PERFORMANCE AREAS

7.11.1 Overall Performance per Municipal KPA

Overall performance per each of the six (6) KPAs is as per table.71 below.

Table.71: Overall Performance per Municipal KPA

Category Explanation MIT&D BSD LED GG&PP ESM MFV&M Total #

KPIs Total % KPIs

KPI not yet measured

KPI's with no targets or actual results for the selected period

0 0 0 0 0 0 0 0

KPI not met Actual vs. target less than 75% 5 4 3 16 0 0 28 15%

KPI almost met

Actual vs. target between 75% and 100%

1 1 1 3 0 1 7 4%

KPI met Actual vs. target 100% achieved 13 17 13 74 8 21 146 81%

KPI well met

Actual vs. target more than 100% and less than 150% achieved

0 0 0 0 0 0 0 0%

KPI extremely well met

Actual vs. target more than 150% achieved

0 0 0 0 0 0 0 0%

Total # KPI 19 22 17 93 8 22 181 100%

Indications: MIT&D = Municipal Institutional Transformation and Development BSD = Basic Service Delivery LED = Local Economic Development GG&PP = Good Governance and Public Participation SDS = Social Development Services MFV&M = Municipal Financial Viability and Management

The table above indicates that of the 181 KPIs:

146 KPIs were achieved (KPI met + KPI well met + KPI extremely well met) which is 81% of the indicators;

7 KPIs were almost achieved (KPI almost met), which is 4% of the indicators; and

28 KPIs were not achieved, which is 15% of the indicators.



Table.72: Departmental Performance Against SDBPI KPIs

Department

2016/2017 2015/2016

No. of Indicators / Targets

(KPI Met / KPI Well Met / KPI

Extremely Well Met) + KPI Almost

Met

KPI Not Met

% (KPI Met / KPI Well Met

/ KPI Extremely

Well Met) + KPI Almost

Met

No. of Indicators /

Targets

(KPI Met / KPI Well Met /

KPI Extremely Well Met) + KPI Almost

Met

KPI Not Met

% (KPI Met / KPI Well Met / KPI Extremely Well Met) + KPI Almost

Met

Office of the MM 70 49 + 7 = 56 14 80% 69 35 + 4 = 39 6 87%

Financial Services 29 27 + 1 = 28 1 97% 24 25 + 1 = 26 1 96%

Corporate Services 32 28 4 88% 24 15 + 0 = 15 3 84%

Technical Services 24 19 + 1 = 20 4 88% 25 11 + 1 = 12 1 92%

Community Services 26 20 + 1 = 21 5 81% 21 10 + 3 = 13 2 87%

Total 181 143 + 10 = 153 28 85% 163 97 + 9 = 106 18 89%

Table.72 indicates percentage of target achieved and partially achieved as 85%; which represents 94% of target met, well met and extremely well met and 6%

of almost met. Table.72 is in line with table.71



7.12 KPA 1: MUNICIPAL INSTITUTIONAL TRANSFORMATION AND DEVELOPMENT – ACTUAL ANNUAL OUTCOMES Table.73: Municipal Institutional Transformation and Development SDBIP KPIs

SDBIP Ref

IDP Ref Strategic Objective

Measurable Outputs

Unit of Performance

Measurement

Frequency / Timeline

Institutional / Ward

2015/2016 2016/2017 Performance Information

Annual

Annual Target Annual Actual

KPI Not Met / KPI

Almost Met / KPI Met / KPI Well Met

/ KPI Extremely

Met

Performance Comments / Reasons for Deviation

Corrective Action

Demand Baseline Backlog

KPA 1: Municipal Transformation and Institutional Development

Outcome 9 Indicator : Output6 - Improving Municipal Financial and Administrative Capacity & Output 1: Implement a differentiated approach to municipal financing, planning and support

OMM1 3.3.2.1 To keep the Municipal Workforce

well informed

Management committee meetings

conducted

No. of meetings

Quarterly Institutional 12 12 0 12 12 KPI Met

OMM2 3.3.2.1 Staff Meetings

conducted No. of

meetings Quarterly Institutional 4 4 0 4 4 KPI Met

OMM3 - To transform the

Dannhauser into a

performance driven

Municipality

Strategic Planning Meetings

conducted

No. of meetings

Quarter 3 & 4

Institutional 2 2 0 2 2 KPI Met

OMM4 3.5.4.5

Social Development Activities Plan developed and

adopted by ExCo

Date adopted Quarter 1 Institutional Yes New No by 31 June 2017

Social Development Plan not yet

approved nor adopted by June 2017

KPI Not Met

Social development

Plan developed but

not yet approved

To be approved in

2017/18 financial year

FIN1 7

To transform the

Dannhauser into a

performance driven

Municipality

Outsourced services

effectively managed

Monitoring and

evaluation of Service Level Agreement as per appointed

Contractors and Service providers

Quarterly Institutional New New 0 Annual Report

Annual Report is available

June 2017

KPI Met

CORP1 7

To transform the

Dannhauser into a

performance driven

Municipality

Outsourced services

effectively managed

Develop and signing of

Service Level Agreement as per appointed

Contractors and Service

Quarterly Institutional New New 0 Annual Report

Annual Report is available

June 2017

KPI Met



providers

CORP2 3.3.1.1

To provide skills

development programmes

for Staff, Councillors

Workplace Skills Plan (WSP) in line with the Employment Equity Plan

(EEP) approved

Date of approval of WSP in line

with EEP

Quarter 4 Institutional Yes No 30-Apr-17

WSP & EEP Approved

KPI Met

CORP3 3.3.2.1

Municipality's Budget actually

spent on Workplace Skills

Plan

% Spent = (actual

amount spent on WSP / budgeted

amount for WSP)*100

Annually Institutional 100% 0% 0% 100% 100%

KPI Met

CORP4 3.3.3.2

Human Resource

Development Strategy

compliance

Date of approval of the Human Resource

Development Strategy

Quarter1 Institutional Yes Draft

Strategy No 30-Sep-16

Draft Strategy Developed as at 30 September 2017

KPI Not Met

Draft document not submitted to Council as it was still being verified

To be submitted to Council in 2017/2018

CORP5 3.3.2.1

Skilled workforce

(Employees & Councillors)

Number of Employees

and Councillors

Trained

Quarterly Institutional Yes 26

employees & 18 Cllrs

No

Annual Progress report on the

Staff and Councillors

trained

100% KPI Met

CORP6 3.3.1.1

To ensure that

employment equity targets

are met

Updated EE Plan

Date submitted

Quarter 2 Institutional 10/1/2014 10/1/2014 0 by 31 Oct 2016 31 Oct 2016 KPI Met

CORP7 3.3.2

To implement a refined

organisational structure

Council Adopted

Organisational Structure

Date of adoption

Quarter 1 Institutional Yes Yes, 30 May

2016 No by 30 June 2017

30 June 2017

KPI Met

CORP8 3.3.4

To implement a refined

organisational structure

Recruitment for critical posts completed

No. of critical posts filled

Quarterly Institutional 22 5 0 22 posts filled 5 Posts Filled

KPI Not met

Posts were advertised but no suitable applicants for 17 posts. Vacant posts also affected by shortage of municipal office space.

Re-advertising of posts within the new financial year 2017/2018.

CORP9 3.3

To ensure effective record

management

Develop and implementation

of Records Management

Progress reports

Quarterly Institutional Yes None Yes since

2014

Approved Record

Management System and

4 Progress Reports In place but

record

KPI Almost

Met

Waiting for responses for department of Arts & Culture

To ensure Department of Arts & Culture



System System Implementation Reports

system not approved

responds in 2017/2018

CORP10 3.3

Finalising approval of the

Record Management

Policy by Council

Date adopted Quarter 2 Institutional Yes Draft Policy Yes 30-Nov-16 KPI Not

Met Waiting for Department of Arts & Culture

To ensure the Department of Arts & Cultiure finalizes in 2017/2018

CORP11 3.6 To transform

the Dannhauser

into a performance

driven Municipality

Monitoring and excecution of

Council, Portfolio and

EXCO resolutions

No. of Status quo Reports

Quarterly Institutional 4 New none 4 4 Reports KPI Met

CORP12 3.3.3.2 Implementation

of job evaluations

No. of progress reports

Quarterly Institutional - New - 4 4 Reports KPI Met

TECH1 7

To transform the

Dannhauser into a

performance driven

Municipality

Outsourced services

effectively managed

Monitoring and



Quarterly Institutional New New 0 Annual Report Annual

Report In Place

KPI Met

COM1 7

To transform the

Dannhauser into a

performance driven

Municipality

Outsourced services

effectively managed

Monitoring and



Quarterly Institutional New New 0 Annual Report - KPI Not

Met

No SLA’s required with service providers



7.13 KPA 2: BASIC SERVICE DELIVERY – ACTUAL ANNUAL OUTCOMES

Table.74: Basic Service Delivery SDBIP KPIs

SDBIP Ref IDP Ref Strategic Objective

Measurable Outputs

Unit of Performance

Measurement



2015/2016 2016/2017 Financial Performance

Annual


KPI Not Met / KPI

Almost Met / KPI Met /

KPI Well Met / KPI Extremely

Met


Corrective Action


KPA 2: Basic Service Delivery

Outcome 9 Indicator : Output 2 - Improving Access to Basic Services

OMM5 5.2.5 To improve expenditure

control

Grant projects' performance

monitoring and evaluation reports

submitted to relevant

stakeholders

Turnaround time (M&E reports signed 7 days

after each month-end and

submitted accordingly)

Monthly Institutional Yes New No

signed within 7 days

monthly and submitted

accordingly

Grant funded projects

monitoring and evaluation

reports signed within 7 days after month-

end on a monthly basis and submitted

to grant stakeholders

KPI Met -

TECH2 3.4.5 To facilitate the construction of

new offices

Building of New Offices

implementation of project = (work

performed/total scope of work as

per business plan)*100

Quarterly 2 - New -

The project commenced

based on Design Plans

Design Plans approved,

funding obtained from

DBSA in 2016/2017

KPI Met

TECH3 3.4.7 &

4.7

To facilitate the provision

housing in line with the

national and provincial norms and standards

Phase 1 of Buhlebomzinyathi Housing Project: Implementation

No. of the houses built

Quarter 4 9, 10 90 New 0 90 houses

built 10 houses built

KPI Not Met

10 Certficates of Completion submitted by 30 June 2017, Construction

near completion

and verification of

completed structures still

to be undertaken

To follow-up with

Department of Human

Settlements for

certificates of completion

TECH4 3.4.7 & To facilitate the Phase 2 & 3 of implementation of Ongoing 9, 10 Approval of Stage 1 - Approval of Approval of KPI Not Application To ensure



4.7 provision housing in line

with the national and

provincial norms and standards

Buhlebomzinyathi Housing Project: Planning & Data

Collected

project = (work performed/total scope of work as


Stage 2 by 30 June 2017

completed Stage 2 by 30 30 June 2017

Stage 2 by 30 30 June 2017

Met Pack for the project has

been submitted to

Department of Human

Settlements for approval of

stage 2 & 3, BUT rejected

due to outstanding documents -

that programme calendar of

Human settlements is obtained by

the municipality

and to further make

constant follow-ups for

stage 2 & 3 approvals in

2017/18

TECH5 3.4.7




Dannhauser Housing Project

Submission of stage 2 application for

approval




Quarterly 2 Approval of


Stage 1 completed

- Approval of


Approval of Stage 2 by 30

June 2017

KPI Not Met

Application pack

submitted to Human

Settlements for approval

but was rejected due

to Stage 1 still being

incomplete

To ensure that

programme calendar of

Human settlements is obtained by

the municipality

and to further make

constant follow-ups for

stage 2

TECH6 4.7




Implementation of Stand Drive Inn

Project

Implementation of project = (work performed/total scope of work as per business plan)*100

Quarter 4 2

Approval of Stage 1

applicationand land aquisation by 30 June 2017

New -

Approval of Stage 1

application and land

aquisation by 30 June 2017

No reports received from

Human Settlements

KPI Not Met

Process is external and handled by

Human Settlements

To Follow-Up with Human Settlements

TECH7 3.4.7 &

4.7

Implementation of Strijbank

Rectification Project

Implementation of project = (work



Quarter 4 3

Approval of Business plan

and construction of 180 houses by

30 June 2017

New

Approval of Business plan

and construction

of 180 houses by 30 June

2017

No reports received from

Human Settlements

KPI Not Met

Process is external and handled by

Human Settlements

To Follow-Up with Human Settlements

TECH8 3.1.14 Implementation of

Disaster relief program

Number of houses build

Quarterly All 15 15 15 15 Housing

unit constructed

15 Houses Constructed

KPI Met

TECH9 3.4.1 & 3.4.3



national and provincial norms and

Water mitigation project: Deep rural

households provided with water

through water tankers

Implementation of project = (work



Monthly All New Not

Available Not

Available

Jojo Tank acquired and

installed; Provision Reports

Jojo Tanks Installed

KPI Met



standards

TECH10

To Provide Public

Amenities

Provision Mobile Child Care Facilities

No. of Facilities provided

Quarter 3 5 and 10 3 2 8

Erection of mobile child

care facility in Ward 5 and

10

3. Mobile Child care facilities

provided KPI Met .

TECH11 3.5.4.4 Construction of Community Hall

100 % implementation of

project = (work performed/total scope of work as


Annually 2 1 3 -

Ward 2 Constructed community

Hall

Community Hall Ward 2 Construction Completed

100 %

KPI Met

TECH12 3.5.4.4 Construction of Taxi

Rank




Annually 2 New - - Dannhauser

taxi rank completed

Appointment of Service provider

occurred in February 2017, planning and designing also commenced

and completed

KPI Not Met

The magnitude of the project is large and

required proper

planning and processing to

appoint a suitabily qualified Service

Provider

Constructin to commence in

2017/2018 financial period

TECH13 3.4.6.1

To ensure safe Rural road

infrastructure networks

Road Network Constructed

No. of KM's Ongoing 10 & 11 4 Km 6km - 4 km

constructed 4 Km

constructed KPI Met

TECH14 3.4.6.1

To ensure safe Urban road

infrastructure networks

Urban road infrastructure

networks Installed No. of KM's Quarter 2 2&3 2km 4.7km 11.3km

2km constructed

Appointment of Service provider

KPI Not Met Budget

Limitation

Road constructed in

2017/2018

TECH15 3.4.5

To ensure safe environment

through installation of

Mast Lights

Electrification of the household-infills

No. of the household

electrified- In-fills Quarter 4 All 3 700 800 3 700

100% completion

(1 052 Electrified In-

fills)

100% Completion

( 623) Electrified In-

fills)

KPI Almost Met

Shortage of meters and

Eskom Process

Purchasing of meters and

engaging Eskom to catalyze process

TECH16 3.4.5

To ensure safe environment

through installation of Street Lights

Upgrade and maintenance of the

street lights

% of street lights maintained = (street lights

maintained / total no. of street lights)*100

Quarterly 1, 2 527 0 967 all street

lights maintained

All street lights maintained

KPI Met

COM2 3.4.4

To regularly provide effective

services to the

Provide Refuse Removal to the

municipal area on a weekly basis

No. of households serviced with

refuse removal Weekly 1.2 1704 1704 0 1704

1704 refuse removal’s per

week KPI Met



COM3 3.4.4

Community in order to create clean and safe environment

No of business units serviced

with refuse removal

Weekly 1, 2, 114 114 0 456 456 refuse removals per week

KPI Met

COM4 3.4.4

No of small holdings in the

outlying areas of Dannhauser

receiving refuse removal services

Weekly 1, 3, 7, 11 3034 3034 0 12136 12136 refuse removal weekly

KPI Met

COM5 3.4.4

No of indigent household with access to free basic services

(Refuse removal)

Quarterly 1,2,11 113 113 113 452 452 indigent

refuse removal KPI Met

COM6 3.5.3.4

To provide educational

and recreational

services to the community

Monitor the number of registered library

users on monthly basis

No. of Statistical Reports

Monthly All 12 12 0 12 12 KPI Met -

COM7 3.5.4.13

To direct law enforcement to improve safety

and security

Road block conducted

No. of Road Blocks Conducted

Quarterly Institutional 15 15 0 15 15 KPI Met -



7.14 KPA 3: LOCAL ECONOMIC DEVELOPMENT - ACTUAL ANNUAL OUTCOME

Table.75: Local Economic Development SDBIP KPIs


Measurable Outputs

Unit of Performance

Measurement



2015/2016 2016 / 2017 Financial Performance

Annual


KPI Not Met / KPI

Almost Met / KPI Met / KPI

Well Met / KPI

Extremely Met


Corrective Action


KPA 3: Local Economic Development

Outcome 9 Indicator : Output 3 - Implementation of the Community Work Programme

OMM6 3.5.3.1

To Create a climate

conducive for

sustainable economic

Growth and job creation

Reviewed LED Strategy adopted

by Council Date adopted Quarterly Institutional Yes New No

Adopted and Implemented LED Strategy

Draft LED Strategy under

review

KPI Almost Met

Currently stakeholder engagement

processes

LED Strategy to be adopted

with all comments from stakeholders in

2017/18 (29 November

2017)

OMM7 3.5.3.2

Develop and approved Tourism

Strategy and establishment of

Community Tourism

Organisation

Date adopted Annually Institutional Yes None No

Adopted Tourism

Strategy and Establishment

of CTO's

Tourism Strategy still

being developed and formalization

of CTO underway

KPI Not Met

Tourism Strategy

developed and CTO

establishment still in progress

Tourism Strategy

Developed and to be adopted

in 2017/18, CTO establishment to be finalized

in 2017/18

OMM8 3.5.3

Establishment and functional

Investment Committee

No. of meetings held

Quarterly Institutional 8 0 New 4 Meetings held No Meetings

held KPI Not Yet

Met

Two meetings held, initially

under MANCO but Investment Forum has been separated from

MANCO and palced under LED Forum to

enhance Stakeholder Participation

Investment Forum

established and meetings now

being convened under LED

Forumas from 2017/18

financial yae



OMM9 3.5.3.1

To Create a climate

conducive for



Implement of Rural

Development initiative

Progress Report on the

Implementation of Rural

Development Initiative

Quarterly Institutional 4 New 0 Annual

Progress Report

4 Reports and Annual Report

In place KPI met

OMM10 3.5.3 Implementation of LED project

No. of jobs created through

LED Quarterly All 112 96 112 112 112 KPI Met -

OMM11 3.5.3.5 Promotion and Support of local

SMMEs

SMME's supported and

capacitated Quarterly Institutional Yes New No

Annual progress Report

Progress Report in

place KPI Met

OMM12 3.5.2.6

Promotion and Support of Local

Information Economy

Informal traders Supported and

Capacitated Quarterly Institutional Yes New No

Number of Supported and

Capacitated informal Economy

Informal Economy

Policy

KPI Not Met

Process of developing

Informal Economy Policy commenced as community was

still being consulted

Policy to be finalized in

2017/18

OMM13 3.5.3.1

Implementation of municipal Zibambele

program and implementation

of CWP

No. of participants

employed for municipal Zibambele

(EPWP)

Quarterly All 143 121 22 143 143 Jobs Created

KPI Met

OMM14 3.5.3.10 Implementation

of municipal CWP

No. of participants

employed for CWP

Quarterly All 1010 1100 90 1100 1100 Jobs Created

KPI Met

OMM15 3.1.4.1

To eradicate poverty and

improve socio

economic condition

Finalisation of the Urban Precinct

plan Approval by Council

Date adopted Quarter 2 4 Yes None Yes since

2014

Finalisation of the Urban

Precinct plan and approval by

council

Precinct plan adopted

KPI Met -

FIN2 3.5.3.1 To Create a

climate conducive

for sustainable economic


Co-ordinate and Implementation

of LED

To provide support for LED Project as and when required

Quarterly All New New 0 4 4 KPI Met

FIN 3 3.5.3.1



of CWP

No. of participants


(EPWP)

Quarterly All 143 121 22 143 143 KPI Met



CORP13 3.5.3.1 To Create a

climate conducive

for sustainable economic


Co ordinate and Implementation

of LED



CORP 14 3.5.3.1



of CWP

No. of participants


(EPWP)


TECH17 3.5.3.1

To Create a climate

conducive for




of LED



TECH18 2.1.3

To eradicate poverty and

improve socio

economic condition

Implementation of municipal Zibambele program

No. of participants


(EPWP)


COM8 3.5.3.1

To Create a climate

conducive for




of LED





7.15 KPA 4: GOOD GOVERNANCE AND PUBLIC PARTICIPATION – ACTUAL ANNUAL OUTCOME

Table.76: Good Governance and Public Participation SDBIP KPIs


Measurable Outputs

Unit of Performance

Measurement




Annual


KPI Not Met / KPI


Well Met / KPI

Extremely Met


Corrective Action


KPA 4: Good Governance and Public Participation

Outcome 9: Output 7- Single Window of Coordination & Output 5: Deepen democracy through a refined Ward Committee model

OMM16 2.2

To ensure progressive compliance

with institutional

and governance

requirements

Institutional compliance

checklist developed and

updated quarterly

Date developed; No.

of updates Quarterly Institutional Yes, 4 New No 4

KPI Not Met

Capcity Constraints

To fill in positions to aid in achieving

compliance, positions to be advertisied in

2017/18

OMM17 3.7.2

To ensure that IGR

structures function

effectively within the

District

Mayor's Forum attended as per District

Municipality invitation

No. of meetings attended

Quarterly Institutional

(District) 4 0 0 4 4 KPI Met -

OMM18 3.7.2

MM Forum attended as per District





OMM19 3.7.2

DTAC meetings attended as per

CoGTA invitation

No. of meetings Quarterly Institutional 4 4 0 4 4 KPI Met -

OMM20 7 To transform

the Dannhauser

into a performance

driven Municipality

Reviewed PMS and adopted by

Council Date adopted Quarter 1 Institutional

Adopted by 31 Jul

PMS Framework

in place None 7/31/2016

Adopted 7/31/2016

KPI Met -

OMM21 7

Organisational PMS

implemented and reports

submitted to Council

No. of Municipal

Performance Reports

submitted to Council


OMM22 7 All Heads of No. of Quarter 1 - Institutional 5 0 5 5 signed by 30 5 Signed by 30 KPI Met -



Department in possession of

signed Performance Agreements

Performance agreements signed and

uploaded on website

30 days after beginning of financial year

July 2017 July 2017

OMM23 7 To transform the

Dannhauser into a

performance driven

Municipality

Individual Performance Assessments conducted

No. of performance assessments

held

Quarterly as per 2006

Regulations Institutional 4 0 4

4 (2 informal & 2 formal)

4 KPI Met -

OMM24 1.7

Mid-year performance

report prepared as part of Sect

72 and adopted by Council

Date adopted Quarter 3 Institutional 1/25/2015 1/23/2015 n/a by 25 Jan 2017 Adopted by 25

Jan 2017 KPI Met -

OMM25 35.4.5

To promote sports and recreation throughout the District

Effective Sports and Recreation

Council


Quarterly All 4 4 0 4 0 KPI Not

Met

Members of sports Council

Resigned

New members to be elected in 2017/18

OMM26 3.5.4.5

Sport and recreation activities organised

No. of reports of Ward inter-games hosted

Quarterly All 4 4 O 4 0 KPI Not

Met

Rearranging of programmes to

be hosted in wards

New programmes to be developed in 2017/18 with new councillors

OMM27 3.5.4.5

Participation in SALGA Games coordinated by

District

No. of reports of participation

Quarter 2 All 1 1 0 2 0 KPI Not

Met

Capacity Constraints within municipality

Games will be attended in 2017/2018 when there is capacity

OMM28 3.5.4.5

To promote youth

development within the

Municipality

Functional Youth Council


Quarterly Institutional 4 4 0 4 0 KPI Not

Met Members relocated

New members to be appointed in

2017/18

OMM29 3.5.4.5

Implementation of Youth

Programmes

No. of programmes

held Bi-annually Institutional 2 2 0 2 2 KPI Met

OMM30 3.5.4.5

Empowering youth

matriculants and post matric

Bi-annually Institutional Yes New No

Adopted Policy and progress

report and close-out report

100% KPI Met

OMM31 3.5.4.5

Awarding Busaries to the thirteen best

perfoming Matric student

within Dannhauser

Area as per 1st thirteen tertiary

aid program

No. of students sponsored

Quarter 3 All 13 9 0 13 13 KPI Met

OMM32 3.5.4.5

Implementation of the

placement programme

No. of graduates placed in different

companies

Quarter 2 All 13 15 11

Appointment of 11 students; Monitoring

Reports

11 KPI Met



OMM33 3.5.4.9 To promote Gender

equality and protect the

human rights of Senior Citizens, Women,

People with Disabilities

and Children

Coordinate Senior Citizens

Activities

No. of meeting held

Quarterly All 4 4 0 4 0 KPI Not Met

Members relocated

New members to be appointed in 2017/18

OMM34 3.5.4.9 No. of events

held Quarter 2 &

4 All 1 1 0 2 1

KPI Almost Met

Additional event not done due to members relocating

New members to be appointed in 2017/18

OMM35 3.5.4.9

Coordinate Children,

Women and Disabled People

Activities


Quarterly All 4 4 0 4 0 KPI Not

Met Members relocating


2017/18

OMM36 3.5.4.9 & 3.5.4.14

To effectively manage and Coordinate HIV/AIDS Activities

Functional HIV/AIDS Structures

No. of LAC Meeting

Coordinated Quarterly Institutional 4 4 0 4 0

KPI Not Met

Members relocating


2017/18

OMM37 3.5.4.9 & 3.5.4.14


No. of DAC Meeting

Attended as per District invite


(District) 4 4 0 4 0

KPI Not Met

Municipality capacity

constraints

Positions to be advertised in


OMM38 3.5.4.9 & 3.5.4.14

To effectively manage and Coordinate HIV/AIDS Activities


Date AIDS day held

Quarter 2 Institutional Yes 12/1/2015 No by mid-Dec

2017 0

KPI Not Met

Municipal Capcity Constraints



OMM39 3.1.12.5.7 To Promote Arts and Culture

Activities

Coordinate Cultural Event

No. of events held

Quarter 1 All 1 1 0 1 0 KPI Not Met

Municipal Capacity Constraints



OMM40 3.5.3.4 Coordinate

Umkhosi woMhlanga

Date held Quarter 1 All 1 1 0 by end-Sept

2017 1 KPI met

OMM41 3.7.2

To ensure that IGR

structures function


District

Internal Audit Forum attended as per District Municipality

invitation




KPI Not Met

No meetings convened by the

District

Can only attend if District calls for the

meeting

OMM42

3.7.6.1 & 3.7.6.2

To provide reasonable

assurance on the adequacy

and effectiveness

of internal control systems

Approval of Internal Audit Plan by Audit Committee

Date approved Quarter 1 Institutional 7/31/2014 7/31/2014 None by 31 July 2017 Approved and

adopted KPI Met

OMM43

Effective implementation of the Annual

Plan

%age implementation

= (performed audits/ planned

audits as per approved IA plan)*100

Quarterly Institutional 100% 100% None 100% of plan performed

100% KPI Met



OMM44

To Ensure Functional

Audit Committee

Coordinate Audit

Committee Meetings


Quarterly Institutional 4 4 0 4 4 KPI Met

OMM45 3.7.5

To implement

and maintain effective

enterprise-wide risk

management system

Functional Risk Management Committee

(RMC)


Quarterly Institutional 2 New 0 4 4 KPI Met

OMM46 3.7.5 Conduct Risk Assessment Workshop

No. of workshops held

Quarter 4 Institutional 2 2 0 2 2 KPI Met -

OMM47 3.7.5 To implement



management system

Reviewed and Council

approved Risk Management policies and

strategies for 2016/2017

Date adopted Quarter 4 Institutional Yes Yes, 2015 No by 30 October

2016

Adoption of approved risk management

policy

KPI Met -

OMM48 3.7.8

Implementation of Enterprise-

Wide Risk Management Action Plan

(consolidationof dept reports)

No. of EWRM reports

Quarterly Institutional 4 New 0 4 4 KPI Met -

OMM49 6 To transform

the Dannhauser

into a performance

driven Municipality

Service Delivery and

Budget Implementation Plan (SDBIP) for

2016/2017 submitted and adopted as per

legislation

Date submitted to Mayor

Q4: 14 days after budget

approval Institutional Yes

14 days after budget

approval No

14 days after budget approval

SDBIP Submitted 14

days after approval of

budget

KPI Met -

OMM50 6 Date of Council

approved

Q4: 28 days after budget

approval Institutional Yes

28 days after budget

approval No

28 days after budget approval

SDBIP approval by Council 28

days after budget

approval

KPI Met -

OMM51 7.2 To transform

the Dannhauser

into a performance

driven Municipality

2015/2016 Annual Report (AR) developed and adopted by Council as per

legislation

Date of Council adoption of

draft AR Quarter 3 Institutional 1 1 0

by 31 January 2017

Draft AR adopted 31

January 2017 KPI Met -

OMM52 7.2 Draft AR

advertised Quarter 3 Institutional Yes

21 days after draft

adoption No

advertised for 21 days after

adoption

Draft Revision AR 21 days

after adoption KPI Met -

OMM53 7.2 Date Council

approved final AR

Quarter 3 Institutional Yes 3/24/2017 No by 31 March

2017

Approved final AR 31 March

2017 KPI Met -

OMM54 7.2

To transform the

Dannhauser into a

performance

Public Comments on

Draft AR (if any) consolidated

and submitted

Date of submission

Quarter 4 Institutional Yes New No 7 days after due date of Draft AR

advert

Public Comments on Draft AR if any submitted to

Corporate

KPI Met -



driven Municipality

to Corporate Services for

MPAC to prepare

Oversight Report

Services & MPAC 7 days after draft AR

advert

OMM55 4

To transform the

Dannhauser into a

performance driven

Municipality

A credible IDP developed 2016/2017

No. of IDP Representative

Forums meetings facilitated


OMM56 3.7.1

Council adoption of the

IDP/Budget Process Plan

Quarter 1 Institutional Yes 6/26/2016 No by 28 August

2017

Council Adoption of

IDP/ Budget & Process Plan

KPI Met -

OMM57 4 Date Council adoption of

Draft IDP Quarter 3 All 3/31/2016 3/24/2017 0

by 31 March 2017

Date of Council Adoption of Draft IDP 31 March 2017

KPI Met -

OMM58 3.7.8.1

No. of IDP/Budget Roadshows Conducted

Bi-annually All 2 2 0 2 2 KPI Met

OMM59 4 Date of

approval of final IDP

Quarter 4 All 5/31/2016 5/30/2017 0 by 31 May 2017 Approval of final IDP 31 May 2017

KPI Met -

OMM60 3.7.2 To ensure that IGR

structures function


District

Planners Forum attended as per District




(District) 4 0 4 4 4 KPI Met

OMM61 3.7.2

IDP District Forum attended as per District Municipality

invitation




KPI Almost Met

Municipal Capacity Constraint caused the none attendance of final meeting


2017/18

OMM62 3.7.2

To ensure that IGR

structures function


District

AFLED Forum attended as per District





OMM63 3.7.2

Communication Forum attended as per District Municipality

invitation




KPI Not Met

Municipal Capacity

constraints





OMM64 - To improve

the image of the

Municipality

External Newsletter

through Media produced and disseminated

No. of Press Statement

Issued Quarterly All 4 2 2 4 3

KPI Almost Met

Not all Press Statements

released due to capacity

constraints



OMM65 -

No. of newsletter

publications produced

Quarterly Institutional 10,000 5,000 0 10,000 0 KPI Not

Met

No Newslaters printed due to

budget constraints

Newslaters to be printed by 2017/18

financial year

OMM66 1.3; 1.6;

3.7.1 To ensure

continuous engagement

with ward constituency

Hold ward committee meetings


Quarterly All 44 44 0 44 (4 meetings

per ward) 44 KPI Met

OMM67 3.7.7.3; 3.7.8.1;

3.7.1

Hold constituency

meetings


Bi-annually All 44 44 0 52 (4 meetings

per ward) 52 KPI Met

FIN4 3.7.2

To ensure that IGR

structures function


District

Finance Forum attended as per District




(District) 4 0 4 4

4

KPI Met -

FIN5 3.6 To transform

the Dannhauser

into a performance

driven Municipality

2016/2017 Adjustment

Budget adopted by Council

Date adopted Quarter 3 Institutional Yes 2/25/2016 0 by 28 Feb 2017

Adoption of adjustment

budget 28 Feb 2017

KPI Met -

FIN6 4.4

2016/2017 Sect 72 Report

adopted by Council

Date adopted Quarter 3 Institutional 4 1/23/2016 0 by 25 Jan 2017

Sect 72 Report Adoption by

Council 25 Jan 2017

KPI Met -

FIN7 3.6.2


with institutional

and governance

requirements

Updated and review indigent Policy Adopted

by Council

Date Adopted Annually Institutional Yes Indigent

Policy No

by end May 2017

Review of Indigent Register & Policy adopted by Council

KPI Met -

FIN8 3.6.2 To ensure

progressive compliance

with institutional

and governance

requirements

Updated, Review and

finalise indigent register in line

with the budget

Date Adopted Quarterly Institutional Yes Indigent Register

No

Updated, Review and

finalise indigent register

Review and updating of Indigent Register

KPI Met -

FIN9 3.6 2017/2018

Budget adopted by Council

Date adopted Quarter 4 Institutional Yes 5/26/2017 No by 31 May 2017 Budget

Adoption 31 May 2017

KPI Met -

FIN10 3.6.5 To improve expenditure

control

Monthly Section 71

reports No. of Sec 71 Monthly Institutional 12 12 0 12 12 KPI Met -



adopted by Council

FIN11 3.6.6

To provide reasonable

assurance on the adequacy

and effectiveness

of internal control systems

Asset Verification Register for 2016/2017 developed

Date developed Quarterly Institutional Yes New No by end-June

2017

Asset Register Verification by

June 2017 KPI Met -

FIN12 3.6

Preparation and submission AG of 2016/2017

annual financial statements

Date submitted Quarter 1 Institutional Yes Aug-2017 No by 31 Aug 2017 Submission to

AG by 31 August 2017

KPI Met -

FIN13 3.6

Preparation and submission to

Council of 2016/2017

interim financial

statements

Date submitted Quarter 3 Institutional Yes New No by 31 Jan 2017

Submission of Interim

Financial Statements

2016/2017 to Council by 31

Jan 2017

KPI Met -

FIN14 3.6.10


with institutional

and governance

requirements

SCM Policy Implementation

Reports submitted to

ExCo

No. of reports submitted

Monthly Institutional 12 12 0 12 12 KPI Met -

FIN15 3.7.8

To implement



management system

Implementation of Risk

Management Action Plan (Finance)



CORP15 3.7.2

To ensure that IGR

structures function


District

Corporate Forum attended as per District Municipality

invitation




CORP16 2.1.1

To ensure that the Animal

Pound By-Law is

developed, and enforced

within the

Animal Pound By-Law

Gazetting Fastracked

Date Gazzeted Quarter 2 All 1 0 Yes since

2014

by 30 November 2016/gazetted animal pound-

by-law

Gazetting of Animal Pound

By-Law 2016/2017

KPI Met -



prescribed jurisdiction

CORP17 3.7.3 To transform the

Dannhauser into a

performance driven

Municipality

Council and Committee

minutes produced

Time taken to produce minutes

No of days Institutional 7 days 14 days 7 days

minutes produced within

7 days after meeting

Council & Committee

Minutes produced

within 7 days after meetings

KPI Met -

CORP18 3.7.3

2016 Municipal Council

Meetings Calendar adopted

Date adopted Annually Institutional Yes 30-Sep-16 No 30 Sep 016 Calendar Adopted

KPI Met -

CORP19 3.7.3

To transform the

Dannhauser into a

performance driven

Municipality

Effective and Functional

Council

Number of Council

Meeting Held Monthly Institutional 12 12 0 12 12 KPI Met -

CORP20 3.7.3 No. of reports

on Council meetings


CORP21 3.7.3 Effective and Functional Executive

Committee

Number of EXCo Meetings

Held Monthly Institutional 10 10 0 10 10 KPI Met -

CORP22 3.7.3 No. of reports

on ExCo meetings

Every 6 months

Institutional 2 2 0 4 4 KPI Met -

CORP23 7

All Heads of Department in possession of

signed Performance Agreements

No. of Performance agreements signed and

uploaded on website

Quarter 1 - 30 days after beginning of financial year

Institutional 5 0 5 5 signed by 30

July 5 signed by 30

July 2017 KPI Met -

CORP24 3.3

Effective and Functional Municipal

Public Accounts Committee

(MPAC)

Number of MPAC Meetings

Held Monthly Institutional 10 10 0 10

KPI Not

Met

Although municipality

provided Terms of Reference to

the representatives of the MPAC to

the new Councillors, the Councillors not

appointed are in dispute stating

that they seek to be represented

The Speaker and Municipal Manager

are engaging the Councillors and will resolve the dispute

in 2017/2018 financial year



CORP25 3.3

Effective and Corporate Services Portfolio

Committee

Number of Corporate Services Portfolio

Meetings Held


CORP26 3.3

Effective and Functional Technical Services Portfolio

Committee

Number of Technical Portfolio

Meetings Held


CORP27 3.3


Community Services Portfolio

Committee

Number of Community

Services Portfolio Held


CORP28 3.3


Ward Committee Structures

Number of Ward

Committee Meetings Held

Monthly All Wards 122 122 0 103 (9 meetings

per ward) 103 KPI Met -

CORP29 3.3

Effective and Functional Land

Resource Management Committee

Number of Land Resource

Committee Meetings Held

Quarterly All Wards 10 10 0 10 10 KPI Met -

CORP30 3.3 Effective and

Functional Local Labour Forum

Number of Local Labour

Forum Meetings Held


CORP31 3.7.8

To implement



management system


Management Action Plan (Corporate)



TECH19 3.7.2 To ensure that IGR

structures function


District

Technical Forum attended as per District Municipality

invitation




TECH20 3.7.2

Planners Forum attended as per District







TECH21 3.7.2 Housing Forum meeting held

No of meetings seated

Quarterly Institutional 4 0 4 4 4

KPI Met

TECH22 3.7.8

To implement



management system


Management Action Plan (Technical)



COM9 3.7.2

To ensure that IGR

structures function


District

Community Services Forum

attended as per District





COM10 3.7.2

To ensure that IGR

structures function


District

Disaster Forum attended as per District





COM11 3.7.7.1 Functional

Sukuma Sakhe Programmes

No. of meeting held

Quarterly All 4 4 0 4 4 KPI Met -

COM12 3.4.4

To ensure safe and healthy

Environment

Develop and Approval of the

Waste Management

Plan

Date Approved Quarter 3 ALL Yes None Yes since

2014

by 31 March 2017 (Approval

by Council)

Approved and Adopted by 31

March 2017

KPI Not Met

Developed but not yet approved and adopted by

Council

To ensure that it is approved and

adopted by Council

COM13 3.1.14

To re-inforce and maintain

proactive Disaster

Management strategies

Review of Disaster

Management Plan

Date Approved Quarter 3 All Yes None No by 31 March

2017

Disaster Management Plan reviewed and adopted

KPI Met

COM14 2.1.1

To ensure that the

animal By-law is

developed and enforced

within the prescribed jurisdiction

Animal Pound By-Law

Gazetting Fast-tracked

Date of Gazette Quarterly All 1 0 Yes since

2014

by 30 November 2016/gazetted animal pound-

by-law

Animal Pound By-Law

Gazetted KPI Met



COM15 2.1.1

To ensure that the animal pound

structure is develop and functional In

the municipal

area

Facilitation for the completion of the Animal

Pound infrastructure

Progress reports

Quarterly 2 1 0 Yes since

2014 by 30 June 2017

Facilitation for the completion of the Animal

Pound Infrastructure

KPI Met

COM16 3.7.8

To implement



management system


Management Action Plan

(Community)





7.16 KPA 5: ENVIRONMENTAL AND SPATIAL MANAGEMENT – ACTUAL ANNUAL OUTCOMES Table.77: Environmental and Spatial Management SDBIP KPIs


Measurable Outputs

Unit of Performance

Measurement




Annual


KPI Not Met / KPI


Well Met / KPI

Extremely Met


Corrective Action


KPA 5: Environmental and Spatial Management

Outcome 9: Output 3: Implementation of the Community Work Programme

OMM68 4.5.1.3 To ensure that the Spatial

Development Framework is prepared and aligned with

LUMS

Review and Adopted SDF

Date adopted Quarter 4 All Yes 26-May-16 No by 31 May

2017

SDF reviewed & adopted by 31 May 2017

KPI Met -

OMM69 3.5.4.5

Enforcement of alignment between SDF

and LUMS through By-

law

Approval of Land use

Applications Quarterly Institutional New - New Annual Reports

Enforcement & Approval of

LUMS in 2016/2017 in line with the

SDF

KPI Met

COM17 3.1.14.4

To ensure functional Disaster

Management

Reported and attended

fire and other

disaster incidences managed

effectively

Number of incidents

reported and attended timeously

Quarterly Institutional Yes New No

Number of Incidents

attended to and Reports produced for

the year

Reports in place

KPI Met

COM18 3.1.14.4

To ensure functional Disaster

Management

Reported and attended

fire and other

disaster incidences managed

effectively

Number of incidents

attended to and

immediate relief

provided

Quarterly Institutional Yes New No

Number of incidents Short

term relief provided for

the year

All incidents reported and

immediate relief provided

KPI Met

COM19 3.5

To provide services to

the community

Adoption of the

Cemetery Plan

Date Approved

Quarter 3 All Yes None Yes since

2007

by 31 March 2017

(Approved Cemetery plan)

Cemetery Plan Approved by

31 March 2017 KPI Met



COM20 3.5

in developing a Cemetery

plan and maintaining

cemeteries in the Urban and Rural

Areas

Development and

Maintenance of Rural and

Urban Cemeteries on monthly

basis

No. of reports Quarterly All 13 11 0

Progress report on the

maintenance of Urban and

Rural Cemeteries for the preceding

year

11 Reports in place

KPI Met

COM21 3.4.4

To regular provide effective

services to the

Community in order to

create clean and safe

environment

Compliant landfill site (disposal

site) maintained

monthly


Quarterly 1 4 4 0 4 4 KPI Met

COM22 3.4.4 Registered landfill site

Annually 2 Yes None Yes since

2000 by 31 March

2017

Registered fully in


KPI Met



7.17 KPA 6: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT

Table.78: Municipal Financial Viability and Management SDBIP KPIs


Measurable Outputs

Unit of Performance

Measurement



2015/2016 Financial Performance

Annual


KPI Not Met / KPI


Well Met / KPI

Extremely Met


Corrective Action


KPA 6: Municipal Financial Viability and Management

Outcome 9: Output 3: Implementation of the Community Work Programme

OMM70 3.6 To improve expenditure

control

Municipal Budget actual

spent No. of reports Quarterly Institutional 4 New None 4 4 KPI Met

FIN16 3.6


with institutional

and governance

requirements

Regular producing

and submitting quarterly returns to

EXCO, Council and different Stakeholders

Date submitted

Quarterly Institutional Yes 30 June No

submitted by the 10 day

after quarter end

Quarterly returns

submitted 10 days after

quarter end

KPI Met -

FIN17 3.6

To improve expenditure

control

Monthly reconciliation of creditors

No. of reconciliations


FIN18 3.6 Payment of

creditors Creditors Age

Analysis Within 30

Days Institutional

Within 30 Days

90 days 60 days 30 days Creditors being paid within 30

days KPI Met -

FIN19 3.6

Monthly reconciliation

of bank balances

No. of reconciliations


FIN20 3.6.10

To improve the

procurement system

Develop and submit

procurement plan to MM and Council

Date submitted to

MM Quarter 1 Institutional Yes New No

Procurement Plan & 3

Status Quo Reports

Procurement plan submitted to MM and Council

KPI Met -



FIN21 3.6.10

To improve the

procurement system

No. of days to place an

order reduced

No. of days for requisition

to be converted to a purchase

order outstanding

Daily Institutional 10 days 10 days 0 10 days Orders being

processed within 10 days

KPI Met -

FIN22 3.6.10

To improve the

procurement system

No. of days to finalise

specification of Bid / Tender

reduced

No. of days Quarterly Institutional 5 days 8 days 3 days 10 days per

tender

Bid specifications

being completed in

10 days

KPI Met -

FIN23 3.6.10

To improve the

procurement system

No. of days to finalise

evaluation of Bid / Tender

reduced

No. of days from close of

tender Daily Institutional 20 days 15 days 20 days 20 days

Evaluation of Bid undertaken

with 20 days KPI met -

FIN24 3.6.10

To improve the

procurement system

No. of days between the evaluation

process and the

adjudication process reduced

No. of days Daily Institutional 5 days 5 25 days 10 days

Number of days between evaluation and adjudication is

10 days

KPI Met -

FIN25 3.6.3

To Improve Municipal Revenue

Base

Total No. customers -

database

% of customers billed/Total

No, of Customers-

database

Monthly Institutional 100% 100% 0% 100% 100% KPI Met -

FIN26 3.6.3 Debt

Collection

% of collection:

Amount collected

Monthly Institutional 100% 80% 40% 100% 80% KPI Almost

Met Indigent Debtors to be written off

Indigent Debtors to be written off in 2017/2018

FIN27 3.6.4 Debt

coverage ratio

Ratio [(Total

operating revenue

received) - (operating

grants received) /

debt service payments

due, including interest and

capital]

Quarterly Institutional 1:1 1:1 Yes 1:1 Ratio analysis

kept as 1:1 KPI met -



FIN28 3.6.4

Outstanding service

debtors to revenue

No. of days debtors are outstanding

(Total outstanding

debtors / Actual

revenue received for services) x

100

Daily Institutional 90 days 120 days 240 days 250 Days 600 days KPI Met

FIN29 3.6.4 Cost

coverage ratio

Ratio [All available

cash at a particular

time) + (Investments)-

Conditional grants)]/

Monthly fixed operating

expenditure)

Quarterly Institutional 1:1 1:1 None 1:1 1:1 KPI Met -

CORP32 3.6 To improve expenditure

control

Departmental budget

actually spent within dept

budget

No. of reports Quarterly Institutional 4 new None 4 4 KPI Met -

TECH25 3.6

To improve expenditure

control

Capital budget

actually spent on capital projects

identified in 2016/2017

IDP

% Spent = (total

spending on capital

projects / total capital budget)*100

Quarterly Institutional 100% 100% 100% 100% 100% KPI Met -

TECH26 3.6

Departmental budget


budget

No. of reports Quarterly Institutional 4 new None 4 4 KPI Met -

COM23 3.6 To improve expenditure

control

Departmental budget


budget

No. of reports Quarterly Institutional 4 new none 4 4 KPI Met -

COM24 3.6

To Invest in the

Development of the

Municipality

Revenue Generated

Through Learner

Licensing

Revenue Generated

Through Learner

Licensing

Quarterly Institutional - 120000 - R180,000 R196 920 KPI Met -



COM25 3.6

through Revenue

Enhancement

Revenue Generated

Through Drivers

Licensing

Revenue Generated

Through Drivers

Licensing (No testing since

Sept 2014 due to Road

Construction as such

projections may be

inaccurate)

Quarterly Institutional - R150 000

(2014) - R166,500 R195 808 KPI Met -

COM26 3.6.3

Revenue Generated

Through Motor

Licensing

Revenue Generated

Through Motor

Licensing (Commission /

Payment to Council)

Quarterly Institutional - 800000 - R1 125,000 KPI Met (Awaiting Final Actual figure)



COMMENTS, RECOMMENDATIONS FOR IMPROVEMENT AND CONCLUSION SDBIP

7.18 OVERALL COMMENT The progress and performance made in respect of meeting organizational and operational targets is

commended.

7.19 RECOMMENDATIONS FOR IMPROVEMENT

That additional performance monitoring and evaluation at a departmental level on at least a monthly basis be

made compulsory to encourage adherence to planned programmes particularly the capital projects. The head of

each department and responsible managers are to conduct monthly meetings to monitor compliance with all

targets and reporting requirements.

That internal co-ordination systems and processes be reviewed to ensure improved co-ordination.

That alignment of the financial system to the PMS is further enhanced.

That quarterly performance reviews must be conducted timeously as indicated in the PMS Policy review of

2015/2016; and the head of each department ensure that the performance information and the portfolio of

evidence are submitted timeously. This will in turn ensure support of internal auditing processes so that they

are value adding to the performance management process.

That evidence submitted is signed off in order to ensure accountability, validity, reliability and accuracy of

performance submitted information.

That where applicable, the department communicates with the responsible department to merge certain Key

Performance Indicators and provide information corresponding to each other for alignment purposes.

That performance management capacity be increased organization-wide to improve accountability.

That performance management be cascaded below managers in signing performance agreements.

That project task teams be established for all projects where co-ordination and integration is required. This

project task team is to develop a project management system for monitoring and evaluation of projects and this

system will in turn ensure performance monitoring and evaluation of each service provider.

That a baseline study be conducted on basic services to ensure alignment with internal statistics, Stats-SA and

other sources.

7.20 CONCLUSION

The Dannhauser Municipality served the community with distinction during the year that ended 30 June 2017. This

report clearly demonstrates the commitment of Dannhauser Municipality to ensure that its community members

have access to basic services. This report to Council and the local community demonstrates the ability of the

Dannhauser Municipality to adapt to the ever changing social needs of the local community. The budget of the top

five (5) capital projects as stated in the table 4.9 clearly demonstrates Dannhauser Municipality’s focus on improving

the socio-economic status of its community members. Due to various challenges, only 28 (15%) targets of the

planned targets could not be met while 85 % (81% met and 4 % almost met) out of 181 targets. As a Municipality, we

will respond to these outstanding targets and will duly report on the progress made to address those targets.



I wish to extend my gratitude to the Municipal Council, Executive Committee, the Management Committee as well

as to all the Employees of the Dannhauser Municipality who willingly and competently assisted to ensure that

Dannhauser Municipality continues to deliver quality services to its community members in the spirit of Batho Pele.

____________________

W.B. NKOSI MUNICIPAL MANAGER



LIST OF REFERENCES

ANNEXURES

ANNEXURE.1 – SERVICE DELIVERY BUDGET & IMPLEMENTATION PLAN ANNEXURE.2 - ANNUAL FINANCIAL STATEMENTS ANNEXURE.3 - REPORT ON THE MUNICIPAL INFRASTRUCTURE GRANT (MIG), FIVE LARGEST CAPITAL PROJECTS PER WARD, TOP FOUR SERVICE DELIVERY PRIORITIES PER WARD 2016/2017 FINANCIAL YEAR ANNEXURE.4 - REPORT OF THE AUDITOR GENERAL 2016/2017 ANNEXURE.5 - RESPONSE TO THE REPORT OF THE AUDITOR GENERAL 2016/2017 ANNEXURE.6 - REPORT OF THE AUDIT COMMITTEE & RECOMMENDATIONS OF THE AUDIT COMMITTEE 2016/2017 ANNEXURE.7 - FINANCIAL DECLARATIONS OF COUNCILLORS AND MUNICIPAL STAFF 2016/2017

ANNEXURE.8 - INTEGRATED DEVELOPMENT PLAN 2016/2017

LEGISLATIVE REFERENCES

Municipal Performance Regulations for Municipal Managers and Managers directly accountable to

Municipal Managers (2006)

Municipal Planning and Performance Regulation (2001)

Public Finance Management Act (1999)

Municipal Finance Management Act (2003)

MFMA Circular 63 (2012)

Performance Management System Framework (2016/2017)

Municipal Structures Act (1998)

Municipal Systems Act (2000)

Municipal Systems Amendment Act (2011)

Intergovernmental Relations Framework Act (2005)

Spatial Planning and Land Use Management (2013)



DANNHAUSER PROJECTS

1. DURNACOL SPORT CENTRE

EMAFUSINI HALL



TRAFFIC CENTRE TESTING GROUND – PHASE 1

MOURNE CRECHE



DANNHAUSER MUNICIPALITY ANNUAL REPORT

Dannhauser Local Municipality

8 Church Street,

Private Bag X1011,

Dannhauser

3080

Website Address: [email protected]

annual report 2016/2017 - dannhauser.gov.za ndh ar 2016... · annual report 2016/2017 dannhauser...

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