PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE

AND TRADITIONAL AFFAIRS

MUNICIPAL OVERVIEW

6 SEPTEMBER 2012

Content

1. Introduction

2. Institutional Governance

3. Integrated Service Delivery

4. Disaster Management

5. Financial Management

6. Conclusion

Orientation

• Institutional Governance

• Municipal Governance

• Support and Capacity Building

• Specialised Support

• Integrated Service Delivery

• Public Participation

• Integrated Development Plans

• Intergovernmental Relations

• Community Development Workers

• Infrastructure Development

• Disaster Management

• Disaster Operations

• Disaster Risk Reduction

• Fire Services

Introduction

• Provide the Portfolio Committee with an overview of municipal performance.

• Based on the performance of municipalities from a governance perspective for the period ending 30 June 2012 (4th municipal quarter).

• Certain findings, recommendations and support provided.

AUDIT OUTCOME: DEPARTMENT OF LG

• Financially Unqualified• With matters

• 30 day payment period: R2,5 million

Institutional Governance: Municipal Governance, Support and Capacity Building

Municipal GovernanceFunctioning of Municipal Councils: •Councils are meeting as required. During the quarter there were no reports of non - attendance by councillors. The instability at the Swellendam Municipality has made it difficult to obtain a quorum for decision-making.

•Delegations (S.59): Confirm v Review

S53 Roles and Responsibilities Framework: •R&RF was adopted by all Councils except for Theewaterskloof, Prince Albert, Overberg District, Central Karoo District, Cape Winelands District and Bitou municipalities.

Litigation against Municipalities: •Property Rates challenges in Beaufort West and Bergrivier Municipalities.•Pension Fund Claims .

Code of Conduct: •Reporting to MEC.

Councillor Debt: •Debt owed by councillors has been reported for Oudtshoorn, Bitou, Saldanha Bay, Beaufort West and Stellenbosch municipalities.

Support provided to Municipalities:Governance, Support and Capacity Building

Municipal Governance: Support provided to municipalities

Assistance with Recruitment & Selection •6 Municipalities•3 MM positions•6 Sec 56 positions (Bitou, Swellendam, Cape Agulhas, Knysna, Witzenberg, Stellenbosch)

MPAC Training 2 ½ Days•CWDM, George, BWM, Laignsburg, PAM, Saldanha, Drakenstein, Oudtshoorn, Metro

Provided support ito Rules of Order •Cape Winelands District – 17 May 2012•Drakenstein – 17 June 2012•Mossel Bay – 13 June 2012•Overberg District – 18 June 2012•Metro – 18 June 2012

MPAC: PROGRESS

MPAC ESTABLISHMENT

• Detailed Presentation made to Committee on 7 August 2012

• In Oudtshoorn MPAC Chairperson appointed, Political parties still to nominate members and first meeting still to take place

CORRUPTION: SIU PROCLAMATIONS

Municipality Proclamation Status Investigations by SAPS

George R76 of 2010 Investigation Finalised awaiting sign off by SIU

1

Stellenbosch R3 of 2011 Investigation Finalised awaiting sign off by SIU

4

Oudtshoorn R6 of 2011 Investigation Finalised awaiting sign off by SIU

9

Swellendam R12 of 2012 On going – No information available N/A

• SIU presented report for the period April 2011 – September 2011 on the preliminary findings of first three proclamations to Parliament • SIU reports finalised and sent to the President • Two Anti-Corruption APP projects currently running include Anti-Corruption Workshops conducted within five District Municipalities and support to ten

municipalities in respect of their Fraud Prevention Plans and establishment of Anti – Corruption or “Ethics “ Committees.

Municipal Governance, Support and Capacity Building

Support and Capacity Building• Municipal manager positions are filled in most municipalities, (S.54A).• Senior manager positions are filled in most municipalities, (S.56).• The submission of employment contracts and annual performance

agreements are being monitored. • Municipalities have implemented performance management systems with

various levels of application.• Municipalities are implementing the MPRA and new Valuation Appeal Board

members are appointed when required.• Municipalities have submitted their annual Workplace Skills Plans by the due

date of 30 June 2012 to the LGAETA.

Support provided to MunicipalitiesGovernance, Support and Capacity BuildingSupport and Capacity Building: Support provided to municipalities

Municipalities are supported through the following strategies:

Cross cutting support programmes• Shared Services• Non-revenue Water• Revenue Enhancement Strategy• Pool of experts

Specialist support programmes• Municipal Recovery Plans• Municipal Assessments• MPRA projects• Training Initiatives• Provincial Support Task Team

Support Actions in terms of National Programmes

• MTAS/LGTAS

• MISA

Support provided to Municipalities:Governance, Support and Capacity Building

Specialised Support

•Formal Section 139 Intervention - There were no Section 139 interventions

•Formal Section 106 Investigation - There were no Section 106 interventions

•Informal Interventions included - Bergrivier Municipality •Failure to timeously approve Annual Budget - None

Governance - MTAS

Municipalities identified based on predetermined criteria:

• Swellendam LM

• Overberg DM

• Central Karoo DM

• Kannaland LM

• Oudtshoorn LM

Support provided to Municipalities:Governance, Support and Capacity Building

Specialised Support

•Late submission of Annual Financial Statements - Matzikama (late submission: 14/12/2011) - Bergrivier (late submission: 05/10/2011) - Langeberg (late submission: 30/09/2011) - Overberg (late submission: 30/09/2011) - Swellendam (late submission: 14/02/2012) - Eden (late submission: 28/09/2011) - Kannaland (late submission: 14/12/2011) - Oudtshoorn (late submission: 29/02/2012) - Bitou (late submission: 08/09/2011) - Prince Albert (late submission: 26/09/2011)

•Stalemate in the Council between political parties which adversely affect decision-making of Council - Swellendam Municipality

Support provided to MunicipalitiesGovernance, Support and Capacity Building

Specialised Support

• Swellendam MunicipalityAttended to the situation where the political instability at the Municipality has led to the inability to obtain an quorum for decision-making. Consideration was given to the issuing of a directive in terms of section 139 of the Constitution to enforce decision-making. Due to a court settlement between a Councillor and his political party whereby the Councillor was reinstated the envisaged action was not followed through. The issues included the non-approval of the adjustment budget and the filling of senior management posts.

• Bergrivier MunicipalityIn August 2011 the Cape High Court ruled on the validity of municipal property rates levied in rural areas by the Bergrivier Municipality. Property rates in respect of eight financial years (2001/02 to 2008/09) were disputed and the Court ruled against the municipality in five of these eight years.

The ruling has grave financial implications for the Municipality in terms of loss of income and the municipality has decided to take the matter on appeal. Discussions were held on a without prejudice basis with both the Applicants and the Respondents upon receiving a request for mediation. The matter was thoroughly interrogated from a provincial oversight perspective and recommendation made that the Provincial Minister be joined as a party  to the Supreme Court  of Appeal proceedings in an effort to obtain an appropriate remedy with due regard to securing the income of the municipality.

Integrated Service Delivery

Public Participation

Ward Committee Functionality

• 24 municipalities with the exception of Bitou Municipality have established their ward committees. Bitou

is in the process of establishing their ward committees.

• The City of Cape Town is in the process of ‘topping up’ ward committee membership to achieve 10

members per ward committee.

• 20 municipalities submitted their quarterly reporting template indicating that all ward committees are

functional and had one or two meetings per ward in the last quarter.

• 8 municipalities have reported that they have not paid out-of-pocket expenses to ward committee

members in the last quarter.

Integrated Service DeliverySupport provided to municipalities

Public Participation: Support provided to municipalities• Ward committee induction training was held in 6 municipalities, namely: Oudtshoorn,

Knysna, Mossel Bay, Saldanha Bay, Langeberg and Hessequa.

• Community Based Planning Training was facilitated in the George Municipality on

request.

• Meetings held with Bitou and Swellendam municipalities to advise on ward committee

establishment and policy development.

• Distribution of the Provincial Framework: Proposed Guidelines for Municipalities in the

Implementation of an Effective and Functional Ward Committee System to all

municipalities at the MinMay and Speakers Forum meetings.

• Workshopped the national funding for ward committees at the Provincial Public

Participation and Communication Forum (PPPCF) meeting.

Integrated Service Delivery

Communications

•15 municipalities have dedicated communication units/officials to manage the communication portfolio. For the remainder, communication is managed as part of the shared portfolios of officials.

•14 municipalities are in the process of drafting/revising their Communication Strategies and a further 6 have recently adopted strategies.

•11 municipalities have adopted Language Policies.

•There are 5 functional and active District Public Participation and Communication Forums.

•Support, guidelines and tools for the development/revision of Communication Strategies were provided to 18 municipalities.

•3 municipalities received support with the development of their Language Policy.

•3 municipalities received support with conducting quantitative communication research to inform their respective Communication Strategies.

Service Delivery - State of Municipal IDPs

IDP IMPLEMENTABLE OR REALISTIC:

YES

NO

City of Cape Town Stellenbosch Hessequa

West Coast District Langeberg Mossel Bay

Matzikama Breedvalley George

Cederberg Overberg District Oudtshoorn

Bergrivier Theewaterskloof Bitou

Saldanha Bay Overstrand Knysna

Swartland Cape Agulhas Central Karoo District

Cape Winelands District Swellendam Laingsburg

Witzenberg Eden District Prince Albert

Drakenstein Kannaland Beaufort West

IMPORTANT NOTE: The Department’s approach in its analysis of IDPs, gives comments on the implementability rather than credibility of IDPs!

Service Delivery - Monitoring the implementation of IDPs

All 30 Municipalities of the Western Cape have adopted IDPs

Improved Annual Reporting IDP Indabas IDP Analysis

The Department of Local Government has arranged a training session on the new Annual Report format as a joint initiative with the Western Cape Provincial Treasury to improve annual reporting in municipalities. This new Annual Report seeks to promote standardised reporting by municipalities with comparable Annual reports, alignment between financial and non-financial reporting; and consistency in the use of terminology.

IDP Indaba (1 & 2) provides a platform on an annual basis for municipalities to engage with Provincial & National Government Departments to determine how the three spheres of Government can strengthen the IDP process and to ensure the implementation of IDP objectives. Indaba 1 is a strategic dialogue between the Municipalities and Province on provincial policies that have planning implication on municipalities. Indaba 2 focuses on project implementation and alignment between the different spheres of government.

The Department however is concerned about the lack of participation of National Sector Departments at the IDP Indabas

IDP Analysis is a process through which national and provincial sector departments, state owned entities, and other relevant stakeholders engage with municipal IDPs on an annual basis, with the aim of providing comments that are aimed at improving the quality of IDPs.

Governance Intergovernmental relations

Integrated Service Delivery

Intergovernmental Relations: Eden District

• The region convened 2 DCFTech meetings on 13 April and 1 June 2012, respectively, as well as a DCF meeting on 2 May 2012.

• Strategic agenda. The following key issues emanated from discussions at the DCFTech meetings of 13 April and 1 June 2012, respectively:

• Waste to Bio Fuel• Accessibility Analysis – Thusong Service Centres• Shared Service: provision of infrastructure.• The key issues emanating from discussions at the DCF meeting of 2 May 2012 were the

following:• Integrated Waste Management• Demarcation• Upgrading of Integrated Transport Plan(ITP) Case Referrals on IGR Issues• Kannaland - Thusong Centre• Knysna - Funding Sources• Knysna - Multi-purpose projects vs Thusong Centre Case Referrals resolved• One case referral has been resolved, namely Kannaland Thusong Centre.

Integrated Service Delivery

Intergovernmental Relations: Overberg District

•The region convened a DCF meeting on 16 May 2012. No DCFTech meeting was convened. Municipality formally communicated the reasons thereofore on 4 July 2012.

•Strategic agenda. The following key issues emanated from discussions at the meeting:•Demarcation within Overberg District municipality•Migration•Coastal Management•Regional land fill sites

Case Referrals on IGR Issues

•The following 3 referrals have been recorded:•Overstrand - Aerial support for fire-fighting wildland•Cape Agulhas - New Sewerage Scheme•Cape Agulhas - Ward Plans (emanating from ward profiles created by CDWs) Case Referrals resolved

•Two case referrals have been resolved, namely Cape Agulhas new sewerage scheme and Cape Agulhas Ward plans.

Recommendations

•The Overberg DCFTech meeting should be constantly monitored and compliance, i.t.o. the IGR Framework Act, addressed through their DCF meetings.

Integrated Service Delivery

Intergovernmental Relations: Cape Winelands District

•The region convened both their DCF and DCFTech meetings on 10 May 2012.

Case Referrals on IGR IssuesNone.

Intergovernmental Relations: West Coast District

•The region convened a DCF meeting on 24 May 2012. The DCF meeting scheduled for 10 May 2012 was cancelled due to a SALGA meeting on wage negotiations.

•Strategic agenda.

 

Integrated Service Delivery

Intergovernmental Relations: Central Karoo District•The region convened a DCF meeting on 24 May 2012. No Municipal Managers Forum (DCFTech) meeting was convened. The matter was highlighted as a concern at the DCF meeting of 24 May 2012. •Strategic agenda. The following key issues emanated from discussions at the meeting:•Funding for disaster management•Proposed Skills Summit•Mayoral Works Programme (Masikhule Shonke) - Job creation strategy focusing on training of unemployed youth•Operation Clean Audit – Auditor-General audience with all councillors in the region, during June 2012

Case Referrals on IGR IssuesThe following case referral has been recorded:

•One case referral has been recorded, namely ‘regional funding for disaster management operations’. Case Referrals resolved

Pending.

Recommendation/sThe Central Karoo DCFTech meeting should be constantly monitored and compliance, i.t.o. the IGR Framework Act, addressed through their DCF meetings.

Integrated Service Delivery

Thusong Programme•Facilitated the expansion of the service offering in the Thusong Programme (e.g. SARS, IEC, Cape Access, Rural Development).•14 Government Departments are participating in the programme.•Co-ordinating a Training Course for Thusong Service Centre Staff (Provincial Training Institute).•Facilitated planning processes for the establishment of new Thusong Service Centres (i.e. Bergrivier, Cape Agulhas, Theewaterskloof & Kannalnd).•Facilitating the operationalisation of Robertson, Paarl and Prince Albert Thusong Service Centres.•Overseeing the refurbishment of Atlantis & Swartland Thusong Service Centre.•Providing support with drafting individual Business Plans for each Thusong Service Centre.•Supporting CoCT, George & Saldanha Bay Municipality with the takeover of the Thusong Service Centres managed by NGO’s.•Facilitating the conclusion of outstanding lease agreements.•Implemented 9 Thusong Mobiles reaching 11 568 citizens.

Integrated Service Delivery

Community Development Workers

• 165 CDW’s are deployed in Municipalities across the Western Cape.

• CDWs accommodated in Municipal premises and Thusong Centre's.

• 14 Socio- economic projects supported in various communities.

• 5742 Case referrals for government services.

• 95 Information sessions were facilitated in communities.

Integrated Service DeliverySupport provided to municipalities

Community Development Workers: Support provided to municipalities

• Roll-out of External Communications survey in Laingsburg.

• Mobilizing of community members for Municipal Budget Road shows in (Ward1, 3 & 4)

Laingsburg.

• Compile Community survey regarding indigent grant beneficiaries.

• Supported Touws River Traffic Enforcement Course Registration.

• Write project proposal and secure funding for Ward 6 Clean and Green project in Breede

Valley.

• Technical support to a local sewing project in the town of Abbotsdale.

• Fire Awareness Workshops in Kleinmond, Zwelihle and Hawston.

• Survey to identify community groups to be trained in various skills in Metro area.

Municipal Infrastructure

• At the end of June 2012 the Municipal Infrastructure Grant expenditure for the 2011/12 amounts to R372,735,955 (99,3%).

Support provided:• The Department was involved with the MIG projects from registration and conducted site visits and

municipal engagements to monitor progress and provide support. The Department also hosted monthly MIG provincial monitoring meetings to monitor progress on the MIG implementation at each.

• DLG initiated the process of aligning the MIG financial reporting with the CFO financial reporting (for the purposes of the Annual Financial Statements and roll-over purposes). According to the CFO financial reporting 13 municipalities underspent their MIG allocations and would have to request roll-overs. DLG initiated the process to align the MIG and CFO financial reporting . The outcome of this support is that only 2 municipalities namely Theewaterskloof and Hessequa have to request roll-overs of MIG funding. Furthermore, a basis is now established for aligned reporting to COGTA and NT going forward.

• The revised MIG DORA reporting indicates a MIG expenditure of 99,14% for the Western Cape.

Bulk Infrastructure – Progress – MIG performance

•2011/12: 99.1% of R375,358,000

•2010/11: 99.8% of R312,086,000

•2009/10: 100% of R271,363,000

Municipal Infrastructure

• The Department supports municipalities with bulk infrastructure planning and implementation through financing strategies. The Department compiled the Bulk Infrastructure Master Plan for water and sanitation for the Western Cape. From this master plan 22 priority water and sanitation projects were identified for funding through the Department of Water Affairs’ Regional Bulk Infrastructure Grant funding to the value of R380,407,000 over the next three years.

• Recommendations/support: The Department co-chair the adjudication meetings for this funding. Further support by DLG to DWA regarding RBIG funded projects is being negotiated.

• The Department supported the training of electrical artisans through a partnership with the Development Bank of Southern Africa. Through this program 138 learners received accredited training at various levels and 33 undergone trade tests.

• DBAS - Engineers

Regional Bulk Infrastructure Grant Projects: MTEF Schedule

Scheme

Budget Allocation 2011/12

including roll overs

Final budget Re-allocation 2011/12

Budget Allocation 2012/13

Budget allocation 2013/14

Budget Allocation 2014/15

Citrusdal WWTW 300 000 300 000 2 000 000 13 162 000 Clanwilliam WTW 500 000 500 000 1 000 000 8 000 000 Clanwilliam/Lambertsbaai RWS 20 000 000 10 066 545 13 330 000 West Coast BWS 3 957 000 3 957 000 6 000 000 53 000 000 Tulbagh BWS 17 000 000 12 000 000 30 000 000 Drakenstein Waste Water Treatment Plant 12 000 000 12 000 000 6 000 000 Stellenbosch WWTW 2 000 000 2 000 000 5 000 000 10 000 000 20 000 000 Worcester Bulk Water 300 000 300 000 18 000 000 18 700 000 30 000 000 Grabouw WWTW 400 000 400 000 5 500 000 8 500 000 Hermanus Bulk Water 150 000 5 233 455 11 962 000 Hermanus WWTW 14 150 000 13 100 000 5 000 000 Swellendam WWTW 300 000 300 000 10 000 000 11 600 000 Struisbaai WWTW 250 000 250 000 5 558 000 5 558 000 George BWS Augmentation 8 500 000 5 500 000 Oudtshoorn Ground Water 1 000 000 1 000 000 2 000 000 13 180 000 10 000 000 Beaufort West Bulk Water 200 000 800 000 1 900 000 2 500 000 Sub Total 66 857 000 68 757 000 131 350 000 149 200 000 60 000 000 Implementation ready studiesVanrhynsdorp Raw Water 200 000 200 000 8 900 000 Klawer Bulk Water 200 000 200 000 4 000 000 Paarl Bulk Sewer 300 000 300 000 10 000 000 16 000 000 Hermanus WWTW 150 000 Calitzdorp & Ladismith WWTW 400 000 500 000 Kannaland Dam Relocation 750 000 2 800 000 5 000 000 6 000 000 Bitou Cross Border Bulk 600 000 1 400 000 3 500 000 10 000 000 Compensation of Employees 742 000 Goods and Services 122 000 Sub Total 2 600 000 1 564 000 4 700 000 31 400 000 32 000 000 Total 69 457 000 70 321 000 136 050 000 180 600 000 92 000 000

Service Delivery – Status of Basic Service Delivery

Municipality Households BS Water % BS Electricity % BS Sanitation %BS Refuse Removal %

City of Cape Town 1 103 182 1 093 756 99% 1 064 063 96% 1 025 399 93% 1 103 182 100%

Cederberg 5 160 5 160 100% 5 160 100% 5 160 100% 5 160 100%

Bergrivier 8 551 8 202 96% 8 551 100% 6 199 72% 8 285 97%

Saldanha Bay 22 248 22 248 100% 21 359 96% 3 078 14% 22 282 100%

Matzikama 9 098 9 098 100% 9 098 100% 9 098 100% 9 098 100%

Swartland 18 448 18 448 100% 14 368 78% 17 337 94% 18 346 99%

Drakenstein 51 972 40 213 77% 51 972 100% 40 213 77% 51 972 100%

Stellenbosch 29 668 17 487 59% 25 812 87% 17 023 57% 16 860 57%

Witzenberg 13 301 13 267 100% 12 536 94% 13 301 100% 12 796 96%

Breede Valley 23 538 19 110 81% 23 282 99% 18 813 80% 19 981 85%

Langeberg 21 856 14 487 66% 15 053 69% 14 643 67% 14 598 67%

Theewaterskloof 16 676 16 676 100% 5 792 35% 15 182 91% 16 884 101%

Cape Agulhas 8 951 7 856 88% 7 810 87% 5 406 60% 8 951 100%

Overstrand 31 373 24 911 79% 19 706 63% 24 911 79% 24 911 79%

Swellendam 5 633 5 633 100% 5 241 93% 5 241 93% 5 241 93%

Kannaland 3 521 3 521 100% 3 521 100% 3 521 100% 3 521 100%

Bitou 9 316 9 316 100% 9 316 100% 9 316 100% 9 316 100%

Knysna 21 348 14 300 67% 14 707 69% 21 348 100% 18 930 89%

Hessequa 21 254 21 254 100% 21 254 100% 21 254 100% 21 254 100%

George 35 000 33448 96% 33448 96% 33448 96% 33448 96%

Mossel Bay 31 486 26 779 85% 31 487 100% 22621 72% 29497 94%

Oudtshoorn 15643 15643 100% 10007 64% 15643 100% 15643 100%

Prince Albert 2 545 2 545 100% 2 545 100% 2 545 100% 2 545 100%

Beaufort West 12 222 12 222 100% 12 222 100% 12 222 100% 12 222 100%

Laingsburg 1221 1221 100% 1221 100% 1221 100% 1221 100%

Total 1 523 211 1 456 801 96% 1 429 531 94% 1 364 143 90% 1 486 144 98%

Infrastructure: MISA Municipalities

Municipalities identified:

• Cederberg LM

• Bergrivier LM

• Witzenberg LM

• Kannaland LM

• Prince Albert LM

Disaster Management – Risk Reduction

Disaster Risk Reduction

• Reviews and updates of disaster risk assessments should be done bi annually to maintain a credible risk profile.

• Review of all District and Metro level disaster risk assessments have been completed during the 2011/12 FY.

• A standardised disaster risk assessment methodology has been developed that will be rolled out during the 2012/13 FY.

Risk Reduction: Support provided to municipalities

• Financial and Technical support will be provided to West Coast, Central Karoo and Eden DM to update their risk assessments during the 2012/13 FY.

• Support will be provided to the remaining Districts to update their risk assessments during the 2013/14 FY.

Disaster Management – Operations

Disaster Management Centres:

• Enhanced the functionality of the PDMC with the procurement of the Video Wall• Assisted Cape Winelands with the proposal for the establishment of the disaster

management centre. District allocated R800 000 for this project• In process of donating equipment to Central Karoo District

Disaster Management Plans:

• Developed a comprehensive winter readiness plan which ensured effective response and pro-active planning.

• Supported the operations relevant to the running aground of MV Eihatsu Maru at First Beach, Clifton

• Disaster Management Exercises: • Koeberg Nuclear Plant• Clanwilliam Dam Break

Disaster Management Frameworks:

• The Disaster Management Act is currently under review

Disaster Management – Operations

Disaster Advisory Forums:

• All District and City have functional advisory forums that meets quarterly or bi-annually.• PDMC Advisory Forum meets quarterly and are attended by Districts/ Metro/Provincial

Departments/SOEs/NGOs.• PDMC developed a quarterly disaster management newsletter: “Eagle’s View”.

Disaster Management Response and Recovery:

• City dealt with flooding in the Metropole.• Facilitated and coordinated the management relevant to the outbreak of avian influenza

in the Southern Cape.• Assisted with the verification of Eden District Municipality June 2011 floods assessments.

Disaster Special Events:

• Assist with the coordination of the Two Oceans Marathon & Argus Cycle Tour.

Audit Outcomes

Audit Outcome 2010/11 2009/10 2008/09

New Consolidation0 0 1

Unqualified with no Findings2 1 0

Unqualified with Findings22 21 23

Qualified3 4 1

Audit not finalised3 0 0

Adverse0 2 0

Disclaimer0 2 5

  30 30 30

Financial Management – Audit Outcomes

Number Municipality Name Audit Outcome 2010/11 Audit Outcome 2009/10 Audit Outcome 2008/09

1 City of Cape Town Financially unqualified with findings Financially unqualified with no findings Financially unqualified with findings

2 Cape Winelands District Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

3 Central Karoo District Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

4 Eden District Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

5 Overberg District Qualified Financially unqualified with findings Financially unqualified with findings

6 West Coast District Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

7 Beaufort West Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

8 Bergriver Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

9 Bitou Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

10 Breede Valley Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

11 Cape Agulhas Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

12 Cederberg Financially unqualified with findings Qualified Disclaimer

13 Drakenstein Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

14 George Financially unqualified with findings Adverse Qualified

15 Hessequa Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

16 KannalandAudit not yet finalised due to late submission of

financial statementsAdverse Disclaimer

17 Knysna Financially unqualified with findings Financially unqualified with findings New Consolidation

18 Laingsburg Qualified Qualified Financially unqualified with findings

19 Langeberg Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

20 Matzikama Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

21 Mosselbay Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

22 OudtshoornAudit not yet finalised due to late submission of

financial statementsQualified Disclaimer

23 Overstrand Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

24 Prince Albert Qualified Disclaimer Financially unqualified with findings

25 Saldanha Bay Financially unqualified with findings Qualified Disclaimer

26 Stellenbosch Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

27 Swartland Financially unqualified with no findings Financially unqualified with findings Financially unqualified with findings

28 SwellendamAudit not yet finalised due to late submission of

financial statementsDisclaimer Disclaimer

29 Theewaterskloof Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

30 Witzenberg Financially unqualified with findings Financially unqualified with findings Financially unqualified with findings

Financial Management – MGRO

• Improve the audit outcomes, initiative between the Department and Provincial Treasury.

• Assessment model, provide recommendations, capability to level 3 higher.

• Part A: Local Government: institutional governance

• Part B: Provincial Treasury: Supply Chain Management, Accounting and Budget Management.

• MGRO 1: September 2012

• MGRO 2: February 2013

Financial Management – Debt Management • The overall status of the debt in respect of the non-metro municipalities amounts to

R25.57 million at the end of June 2012. This represents a decrease in relation to the balance of R27.26 million recorded for May 2012 which equates to a decrease of R1.69 million.

 • The Departments who record the highest debt balances includes the Department of

Transport and Public Works at R10.06 million or 39.3 per cent, Department of National Public Works at R5.87 million or 23 per cent and followed by the Department of Education at R4 million or 15.7 per cent.

Thank you