LEKWA-TEEMANE LOCAL MUNICIPALITY MID-TERM BUDGET & PERFORMANCE ASSESSMENT REPORT. 1 P a g e

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1 LEKWA-TEEMANE LOCAL MUNICIPALITY MID-TERM BUDGET & PERFORMANCE ASSESSMENT REPORT 1 P a g e

2 TABLE OF CONTENTS PART MAYOR S REPORT 1.2. EXECUTIVE SUMMARY 1.3. RESOLUTIONS 1.4. IN-YEAR BUDGET STATEMENT TABLES PART DEBTORS ANALYSIS 2.2. CREDITORS ANALYSIS 2.3. INVESTMENT PORTFOLIO ANALYSIS 2.4. GRANTS ALLOCATION RECEIPTS AND EXPENDITURE 2.5. COUNCILLOR AND BOARD MEMBER ALLOWANCES AND EMPLOYEES BENEFITS 2.6. CAPITAL PROGRAMME PERFORMANCE 2 P a g e

3 1.1. MAYOR S REPORT Lekwa-Teemane Local Municipality is Category B municipality which is made up of two small towns namely, Christiana Bloemhof towns. Accordingly, both towns thrive mainly on small commercial, agricultural, as well as small scale diamond mining activities. As a small municipality with small economic activities, it is common cause that our economic situation is still at a very low developmental state, characterised by high unemployment rate. The effect of the above is that a greater component of the municipality s population tends to be dependent on free basic services as offered by the state, thus being unable to adequately contribute on the overall progress of the Municipality. As a local government sphere, we are a government that is at the coal-face of service delivery hence our decision as a political leadership to announce among others that we commit ourselves to work h in h with both the National Provincial spheres of government in doing so we further committed all our activities towards making service delivery a hallmark or distinguishing feature for our term of office. In doing so it has then became very imperative to include to work very close with both public private sector investors. Thus to recognise enhance service delivery as integral to the new strategic posture orientation of our approach to accelerate service delivery within the municipality characterised by the following values: More Activist-orientated Responsive On the Ground Solving Problems Directly in with Communities From the past experiences given the multiple challenges the municipality is facing, it is clear that we have no option but to also develop together with provincial government a radically new approach to restructure interface further strengthen our relations by also adopting aligning the municipality s development agenda with the five (5) development pillars as developed by the Provincial Government of Bokone Bophirima. This is done in order to help accelerate service delivery, clear service delivery backlogs improve turnaround times on attending to service delivery complaints including our intention to introduce a rapid response system towards service delivery, both proactive reactive. Despite the above through the roll out of the Municipal Infrastructure Grant (MIG) the Integrated National Electrification programmes which are aimed at eradicating alleviating basic service delivery backlogs the Municipality is continuously providing basic services to its the community. In addition as part of our continued strategy to work h in h with other spheres of government, a word of appreciation goes to the Honourable Minister of the Department of Trade, Industry (the dti) his Administration for having recently approved our funding application (Critical 3 P a g e

4 Infrastructure Programme- CIP) allocated the municipality a total Grant Funding to the tune R (100% total qualifying electricity infrastructure). This injection as it sts will go a long way to resolve many challenges facing the municipality s capacity to deliver effective sustainable electricity distribution with the Christiana Town areas. In this regard as part of our public participation programmes, the Municipality has however resolved to intensify on its communication channels with the relevant stakeholders such the business community, all spheres of government as well as the community at large. This is to ensure that both the Municipality different stakeholders are on the same wave length understing in as far the Municipal programmes their status is concerned. At this point, it is therefore a greater pleasure for me to deliver the status report on the implementation of the budget as at 31. This report measures our progress in implementing the Service Delivery Budget Implementation Plan as adopted by Council, in this report the Municipality is conducting self-introspection analysis of its performance against its predetermined targets objectives, it is from this exercise that the Municipality will be identifying areas that need improvement as well as developing measures to improve on the identified anomalies. The Council of Lekwa-Teemane Local Municipality remains committed to providing quality services to the entire community hence I now take this opportunity to extend a word of appreciation to our community in Lekwa-Teemane jurisdiction, the political leadership from all parties represented in Council the administration lead by the newly appointed Municipal Manager (Mr Ndoda Mgengo) every municipal employee who has worked hard to implement the decisions of Council as contained in the IDP SDBIP. Lastly I invite all of us to join hs work together in rebuilding our municipality turning the Lekwa-Teemane Local Municipality economy around. Honourable Cllr K.G.N. PALAGANGWE MAYOR LEKWA-TEEMANE LOCAL MUNICIPALITY 4 P a g e

5 STATEMENT BYTHE MUNICIPAL MANAGER The development of a Mid-Term Budget Performance Report is not merely a legislated requirement rather a mechanism to assess good performance identify areas challenges that require intervention mitigation. Of critical importance is for the municipality to utilise this process as an instrument to prioritise move towards sharpening moulding its delivery arm so as continue to provide quality sustainable services to its citizens. Therefore, a process of identifying challenges midway through the financial year enables the municipalities to start programmes that must allow for proper mechanisms to be put in place to address such identified challenges to achieve all planned targets by the end of the financial year. The Mid-Term Budget Performance Report covers the period from 1 July to 31 is based on the approved is based on the approved /18 Service Delivery Budget Implementation Plan (SDBIP). The SDBIP is a plan that details the implementation of service delivery the budget for the financial year as required by the Municipal Finance Management Act, Act No 56 of In addition the Mid-Term Budget Performance Report is also regarded as an important key reporting tool to advise create links between the municipality, its residents stakeholders on service delivery performance of the municipality during the review period. The report as mentioned above, is underpinned by the following two pillars informing the vision of the municipality s leadership which also form the basis of the municipality s Integrated Development Plan IDP: To render services effectively efficiently in a sustainable manner to our community To promote developmental local government through community participation. The following below is a synopsis of the municipality s performance over the review period is reflected in greater detail in this /18 Mid-Term Performance Report: 5 P a g e

6 KEY PERFORMANCE AREA ACHIEVED NOT ACHIEVED NOT APPLICABLE TOTAL KPA 1: BASIC SERVICES KPA 2: MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION KPA 3: LOCAL ECONOMIC DEVELOPMENT KPA 4: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT KPA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION SPATIAL RATIONALE OVERALL PERFORMANCE Based on the above outcomes it is imperative that the municipality must develop systems to support boost our local economic component as well as attraction of new investments to the municipality. Stimulating our economy fusing the local economy with the external investors should remain the municipality s top priority. Achieving the above alone shall give exposure for our community to learn share on the knowledge, skills experience of well-established participants in respective fields of economic development, thereby gaining the necessary required competencies to can be able to manage, grow lead their respective economic establishments. Notwithsting the above performance as reflected in this / Mid-Term Budget Performance Report which also shows that the municipality is still faced with various challenges opportunities, corrective measures has been put in place to ensure smooth administration acceleration of affordable sustainable service delivery to the community. A word of appreciation is extended to the political leadership for their guidance active participation in municipal activities to the municipal officials for their service during the review period. In this instance I call upon all officials to continue their dedication hard work in order to provide effective change development in the lives of all citizens of Lekwa-Teemane Local Municipality. NDODA MGENGO MUNICIPAL MANAGER 6 P a g e

7 1.4. IN-YEAR BUDGET STATEMENT TABLES NW396 Lekwa-Teemane - Table C1 Monthly Budget Statement Summary - M /17 Budget Year /18 Description Audited Original Adjusted Monthly YearTD YTD YTD YearTD actual Outcome Budget Budget actual budget variance variance R thouss % Financial Performance Full Year Forecast Property rates % Service charges (1 743) -3% Investment revenue (12) -80% 29 Transfers subsidies % Other own revenue (2 536) -12% Total Revenue (excluding capital transfers % contributions) Employee costs (7 438) -25% Remuneration of Councillors (920) -37% Depreciation & asset impairment (11 479) -100% Finance charges (99) -99% 200 Materials bulk purchases (10 926) -21% Other expenditure (38 446) -83% Total Expenditure (69 309) -49% Surplus/(Deficit) (43 426) (20 601) % (43 426) Transfers subsidies - capital (monetary allocations) ( % Contributions & Contributed assets Surplus/(Deficit) after capital transfers & (20 197) (10 923) % (20 197) contributions Surplus/ (Deficit) for the year (20 197) (10 923) % (20 197) Capital expenditure & funds sources Capital expenditure % Capital transfers recognised % Internally generated funds (415) -100% Total sources of capital funds % Financial position Total current assets Total non current assets (29 646) Total current liabilities Total non current liabilities Community wealth/equity Cash flows Net cash from (used) operating (41 057) (10 264) (18 286) 178% (41 057) Net cash from (used) investing (36 726) (3 370) (21 653) (9 182) % (36 726) Net cash from (used) financing (305) (1 220) Cash/cash equivalents at the month/year end (77 783) (14 850) (19 446) (4 595) 24% (77 783) Debtors Age Analysis Debtors & creditors analysis 0-30 Days Days Days Days Dys Dys 181 Dys-1 Yr Total By Income Source Creditors Age Analysis Total Creditors Over 1Yr Total 7 P a g e

8 NW396 Lekwa-Teemane - Table C2 Monthly Budget Statement - Financial Performance (functional classification) - M06 Budget Year /18 Description Original Adjusted Monthly YearTD YTD YTD YearTD actual Budget Budget actual budget variance variance R thouss % Revenue - Functional Full Year Forecast Governance administration % Executive council % Finance administration % Community public safety (201) -65% Community social services (201) -65% Housing 434 Economic environmental services (3 779) -74% Road transport (3 779) -74% Environmental protection 300 Trading services % Energy sources % Water management % Waste water management % Waste management % Total Revenue - Functional % Expenditure - Functional Governance administration (7 639) -36% Executive council % Finance administration (8 080) -49% Community public safety (1 172) -93% Community social services (1 172) -93% Sport recreation Public safety Economic environmental services (4 366) -53% Planning development % 749 Road transport (5 460) -66% Trading services % Energy sources % Water management (1 375) -11% Waste water management (2 609) -95% Waste management (4 129) -76% Total Expenditure - Functional % Surplus/ (Deficit) for the year (20 197) (4 797) % (27 546) 8 P a g e

9 NW396 Lekwa-Teemane - Table C3 Monthly Budget Statement - Financial Performance (revenue expenditure by Vote Description Budget Year /18 Original Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thouss % Revenue by Vote Vote 1 - Municipal Manager % Vote 2 - Budget Treasuary % Vote 3 - Corporate Services] (106) -31.2% 680 Vote 4 - Community Services (9 408) -86.8% Vote 5 - Technical Services % Total Revenue by Vote % Expenditure by Vote Vote 1 - Municipal Manager (3 700) -40.3% Vote 2 - Budget Treasuary (18 451) -76.6% Vote 3 - Corporate Services] (6 121) -68.7% Vote 4 - Community Services (4 545) -67.8% Vote 5 - Technical Services (36 492) -39.2% Total Expenditure by Vote (69 309) -48.9% Surplus/ (Deficit) for the year (20 197) (10 099) % (20 197) 9 P a g e

10 NW396 Lekwa-Teemane - Table C4 Monthly Budget Statement - Financial Performance (revenue expenditure) - M06 Budget Year /18 Description Original Budget Monthly actual YearTD actual YearTD budget YTD variance YTD varianc e Full Year Forecast R thouss % Revenue By Source Property rates % Service charges - electricity revenue % Service charges - water revenue (5 173) -28% Service charges - sanitation revenue % Service charges - refuse revenue (3 631) -44% Rental of facilities equipment (93) -26% 712 Interest earned - external investments (12) -80% 29 Interest earned - outsting debtors % Fines, penalties forfeits (0) (9 093) -100% Licences permits (1 112) -100% Agency services % Transfers subsidies % Other revenue % 422 Gains on disposal of PPE Total Revenue (excluding capital transfers contributions) % Expenditure By Type Employee related costs (7 438) -25% Remuneration of councillors (920) -37% Debt impairment (30 461) -98% Depreciation & asset impairment (11 479) -100% Finance charges (99) -99% 200 Bulk purchases (4 743) -11% Other materials (6 182) -75% Contracted services (3 274) -43% Other expenditure (4 711) -62% Total Expenditure (69 309) -49% Surplus/(Deficit) Transfers subsidies - capital (monetary (43 426) (20 601) (0) (43 426) allocations) (National / Provincial District) Surplus/(Deficit) after capital transfers & (20 197) (10 923) (20 197) contributions Surplus/(Deficit) after taxation (20 197) (10 923) (20 197) Attributable to minorities Surplus/(Deficit) attributable to municipality (20 197) (10 923) (20 197) Surplus/ (Deficit) for the year (20 197) (10 923) (20 197) 10 P a g e

11 NW396 Lekwa-Teemane - Table C5 Monthly Budget Statement - Capital Expenditure (municipal vote, functional classification funding) - M /17 Budget Year /18 YTD YTD Vote Description Ref Audited Original Adjusted Monthly YearTD YearTD Full Year varianc varianc Outcome Budget Budget actual actual budget Forecast e e R thouss 1 % Multi-Year expenditure appropriation 2 Vote 1 - Municipal Manager Vote 2 - Budget Treasuary 6 6 0% Vote 3 - Corporate Services] (85) -100% 340 Vote 4 - Community Services (1 139) -100% Vote 5 - Technical Services % Total Capital Multi-year expenditure 4, % Single Year expenditure appropriation 2 Vote 2 - Budget Treasuary (60) -100% 240 Total Capital single-year expenditure (60) -100% 240 Total Capital Expenditure % Capital Expenditure - Functional Classification Governance administration (109) -100% 436 Finance administration (109) -100% 436 Community public safety (914) -100% Community social services (914) -100% Sport recreation Economic environmental services % Road transport % Trading services % Energy sources % Water management (40) -100% 160 Total Capital Expenditure - Functional Classifi % Funded by: National Government % Transfers recognised - capital % Internally generated funds (415) -100% Total Capital Funding % P a g e

12 NW396 Lekwa-Teemane - Table C6 Monthly Budget Statement - Financial Position - M /17 Budget Year /18 Description Ref Audited Outcome Original Budget Adjusted Budget YearTD actual Full Year Forecast R thouss 1 ASSETS Current assets Cash Call investment deposits (23 029) Consumer debtors Other debtors Current portion of long-term receivables 1 Inventory Total current assets Non current assets Long-term receivables Investment property Investments in Associate Property, plant equipment (29 646) Intangible assets Other non-current assets Total non current assets (29 646) TOTAL ASSETS LIABILITIES Current liabilities Bank overdraft Consumer deposits (60) Trade other payables Provisions Total current liabilities Non current liabilities Borrowing Provisions Total non current liabilities TOTAL LIABILITIES NET ASSETS COMMUNITY WEALTH/EQUITY Accumulated Surplus/(Deficit) TOTAL COMMUNITY WEALTH/EQUITY P a g e

13 NW396 Lekwa-Teemane - Table C7 Monthly Budget Statement - Cash Flow - M06 Budget Year /18 Description Original Budget Monthly actual YearTD actual YearTD budget YTD YTD variance variance Full Year Forecast R thouss % CASH FLOW FROM OPERATING ACTIVITIES Receipts Property rates % Service charges % Other revenue (420) -20% Government - operating % Government - capital % Interest (3 109) -100% Dividends Payments Suppliers employees ( ) (7 103) (87 048) (57 467) % ( ) Finance charges (200) (50) (50) 100% (200) Transfers Grants NET CASH FROM/(USED) OPERATING ACTIVITIES (41 057) (10 264) (18 286) 178% (41 057) CASH FLOWS FROM INVESTING ACTIVITIES Receipts Decrease (Increase) in non-current debtors (8 000) (2 000) % Decrease (increase) other non-current receivables (8 000) Decrease (increase) in non-current investments Payments Capital assets (28 726) (3 370) (21 653) (7 182) % (28 726) NET CASH FROM/(USED) INVESTING ACTIVITIES (36 726) (3 370) (21 653) (9 182) % (36 726) CASH FLOWS FROM FINANCING ACTIVITIES Receipts Payments Repayment of borrowing (305) (1 220) % NET CASH FROM/(USED) FINANCING ACTIVITIES (305) (1 220) % NET INCREASE/ (DECREASE) IN CASH HELD (77 783) (14 850) (19 446) (77 783) Cash/cash equivalents at beginning: Cash/cash equivalents at month/year end: (77 783) (14 850) (19 446) (77 783) 13 P a g e

14 PART 2 SUPPORTING DOCUMENTATION 2.1. DEBTORS AGE ANALYSIS NW396 Lekwa-Teemane - Supporting Table SC3 Monthly Budget Statement - aged debtors - M06 Description Budget Year /18 R thouss Debtors Age Analysis By Income Source 0-30 Days Days Days Days Dys Dys 181 Dys-1 Yr Over 1Yr Total Total over 90 days Trade Other Receivables from Exchange Transactions - Water Trade Other Receivables from Exchange Transactions - Electricity Receivables from Non-exchange Transactions - Property Rates Receivables from Exchange Transactions - Waste Water Management Receivables from Exchange Transactions - Waste Management Receivables from Exchange Transactions - Property Rental Debtors Interest on Arrear Debtor Accounts Recoverable unauthorised, irregular, fruitless wasteful expenditure Other Actual Bad Debts Written Off against Debtors Impairment - Bad Debts i.t.o Council Policy Total By Income Source Debtors Age Analysis By Customer Group Organs of State Commercial Households Other Total By Customer Group A total of R544 million is owed to the Municipality by different consumers R429 million of which has been outsting for more than a year. Water service is the most owed at R181 million, followed by interest owed on the total debt at R144 million. Most debt is owed by households at R496 million, followed by business consumers as well as organs of state at R41 million R7 million respectively. The Municipality has implemented rigorous credit control measures which involves disconnection of services on consumers owing the Municipality over a long period of time, this intervention has yielded fairly satisfactory results as there was a slight improvement on collection of outsting debts. It I therefore unavoidable that the Municipality has to design, implement monitor stronger rigid measures to collect revenue from customers who are able to pay for their services are currently failing to do so. 14 P a g e

15 2.2. CREDITORS AGE ANALYSIS NW396 Lekwa-Teemane - Supporting Table SC4 Monthly Budget Statement - aged creditors - M06 Budget Year /18 Description Days Over 1 R thouss 30 Days 60 Days 90 Days 120 Days 150 Days 180 Days - Year Creditors Age Analysis By Customer Type Bulk Electricity Bulk Water PAYE deductions VAT (output less input) Trade Creditors Auditor General Other Total By Customer Type Total Prior year totals for chart The Municipality has R268 million which is owed to different creditors, R197 million of which is owed to Department of Water Sanitation is currently being disputed by the Municipality. The Municipality has is still maintaining its payment arrangement concluded with Eskom, hence to date, the Municipality owes Eskom R29 million from the R54 million which was outsting in October There are concerted efforts to conclude payment arrangements with the South African Receiver of Revenue (SARS) as well as with the Office of the Auditor General of South Africa. The Municipality has adopted is currently implementing the Cost Containment Policy as well as centralising the Supply Chain Management function, the latter will ensure that the Municipality reduces spending on non-core non-essential items, thereby reducing spending. 15 P a g e

16 2.3. INVESTMENT PORTFOLIO ANALYSIS NW396 Lekwa-Teemane - Supporting Table SC5 Monthly Budget Statement - investment portfolio - M06 Type of Investment Investments by maturity Name of institution & investment ID R thouss Municipality ABSA 32 Days Notice ABSA 32 Days Notice Ref Period of Investment Yrs/Months 32 Days 32 Days Expiry date of investment Accrued interest for the month Yield for the month 1 (%) Market value at beginning of the month Change in market value Market value at end of the month ABSA 32 Days Notice ABSA 32 Days Notice Municipality sub-total Entities Entities sub-total TOTAL INVESTMENTS AND INTEREST The Municipality has not been able to maintain sufficient investment portfolio, this is due to the heightened regular cash needs of Municipality s operations. Key strategic measures will be devised implemented to ensure increased revenue collection as well as improved savings to ultimately ensure that more cash surpluses are retained in the Municipality invested to earn more interest. 16 P a g e

17 2.4. Grant allocation, receipts expenditure NW396 Lekwa-Teemane - Supporting Table SC6 Monthly Budget Statement - transfers grant receipts - M06 Budget Year /18 Description Original Budget Monthly actual YearTD actual YearTD budget YTD variance YTD variance Full Year Forecast R thouss % RECEIPTS: Operating Transfers Grants National Government: % Local Government Equitable Share % Finance Management EPWP Incentive Provincial Government: (250) % Sport Recreation (250) % District Municipality: [insert description] Other grant providers: (74) -16.1% MIG (187) % 749 LGSETA Total Operating Transfers Grants % Capital Transfers Grants National Government: % Municipal Infrastructure Grant (MIG) % Total Capital Transfers Grants % TOTAL RECEIPTS OF TRANSFERS & GRANTS % The Municipality has implemented measures aimed at ensuring that allocated grants are optimally utilised to accelerate delivery of services to the communities. Priority focus will be directed to pronouncements of the State President in the State of the Nation Address as well as to the speech of the Premier in the State of the Province Address. 17 P a g e

18 2.5. Councillor allowances employee benefits NW396 Lekwa-Teemane - Supporting Table SC8 Monthly Budget Statement - councillor staff benefits - M06 Budget Year /18 Summary of Employee Councillor remuneration Original Monthly YearTD YTD YTD YearTD actual Budget actual budget variance variance R thouss % Councillors (Political Office Bearers plus Other) B Full Year Forecast Basic Salaries Wages % Motor Vehicle Allowance % Cellphone Allowance % Other benefits allowances % Sub Total - Councillors % Senior Managers of the Municipality Basic Salaries Wages (68) -9% Pension UIF Contributions % Motor Vehicle Allowance % Cellphone Allowance % Housing Allowances % Other benefits allowances % Sub Total - Senior Managers of Municipality % D Other Municipal Staff Basic Salaries Wages % Pension UIF Contributions % Medical Aid Contributions % Overtime % Motor Vehicle Allowance % Cellphone Allowance % 184 Housing Allowances % 518 Other benefits allowances % Long service awards % Post-retirement benefit obligations (362) -100% Sub Total - Other Municipal Staff % Total Parent Municipality % The Municipality has spent a total of R28 million on salaries benefits of councillors, senior managers as well as on the general municipal workforce. Most spending of R24, 6 million was realised on the general workforce, the latter proves that the Municipality operates on a thin upper structure, with the lower structure being bulked Spending on benefits paid to senior management has been low due to the fact that the Municipality is yet to appoint permanent senior managers. 18 P a g e

19 2.6. CAPITAL PROGRAMME PERFORMANCE North West: Lekwa-Teemane(NW396) - Table C5 Monthly Budget Statement - Capital Expenditure by Stard Classification Funding for M06 Description R thouss Original Budget M01 July Actual M02 Aug Actual Budget year /18 M03 Sept Actual M04 Oct Actual M05 Nov Actual M06 Dec Actual YTD Actual Capital Expenditure - Stard Governance Administration Budget & Treasury Office Community Public Safety Community & Social Services Sport And Recreation Economic Environmental Services Road Transport Trading Services Electricity Water Total Capital Expenditure - Stard Funded by: National Government Provincial Government District Municipality Other transfers grants Transfers recognised - capital Public contributions donations Borrowing Internally generated funds Total Capital Funding The Municipality has been allocated a total of R23 million in the form of the Municipal Infrastructure Grant the Integrated National Electrification Programme from the national government departments, a further R1, 6 million was budgeted from funds to be generated internally by the Municipality, the latter is a clear indication of the Municipality s high reliance on grant funding to further achieve its mate. Developmental focus has been placed on the construction of roads in communities that have been without proper road infrastructure over a long period of time. More effort has also been placed on providing connecting electricity to communities which have not been previously provided with access to electricity. 19 P a g e

20 2.7. Assessment of the Mid-Term Service Delivery Budget Implementation Plan OVERALL INSTITUTIONAL PERFORMANCE PER KEY PERFORMANCE AREA (Lekwa-Teemane Local Municipality) ACHIEVED NOT ACHIEVED NOT APPLICABLE TOTAL KPA 1: BASIC SERVICES KPA 2: MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION KPA 3: LOCAL ECONOMIC DEVELOPMENT KPA 4: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT KPA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION SPATIAL RATIONALE OVERALL PERFORMANCE ACHIEVED NOT ACHIEVED NOT APPLICABLE % 20 P a g e

21 OVERALL INSTITUTIONAL PERFORMANCE DEPARTMENT (Lekwa-Teemane Local Municipality) ACHIEVED NOTACHIEVED NOT APPLICABLE % MUNICIPAL MANAGER % TECHNICAL SERVICES % COMMUNITY SERVICES % BUDGET & TREASURY % CORPORATE SERVICES % OFFICE OF THE MAYOR % ACHIEVED NOTACHIEVED NOT APPLICABLE % 0 21 P a g e

22 OVERALL INSTITUTIONAL PERFORMANCE (Lekwa-Teemane Development Agency) ACHIEVED NOT ACHIEVED NOT APPLICABLE TOTAL % % Series1 0 ACHIEVED NOT ACHIEVED 0 NOT APPLICABLE 33% TOTAL % 22 P a g e

23 a) QUARTERLY PROJECTIONS OF SERVICE DELIVERY TARGETS AND PERFORMANCE INDICATORS FOR EACH VOTE T.S=Technical services C.S=Community services M.O=mayor s Office BTO=Budget And Treasury Office CP.S=Corporate Services MM=Municipal Manager s Office A. KEY PERFORMANCE AREA 1: BASIC SERVICES OBJECTIVE Performan ce Indicator Indicator definition Baseline BUDGE T ANNUAL TARGET / MIDTERM TARGET Jul-Dec 17 ACTUAL PERFORMANC E REASON FOR DEVIATION REMEDIAL ACTION POE Service Delivery Infrastructure Development approved water master plan. KPI 1 T.S Development of an annual water master plan entailing infrastructur e SWOT analysis (efficient delivery of clean water, water dem management No water master plan Opex 1 Approved water master plan by end June SWOT Analysis Report by end Dec. Not Achieved Item served in the infrastructure portfolio committee. The item will be sent to Council within the FY. Item to serve in Council before June. Minutes of the portfolio meeting Service Delivery Infrastructure Development reports on the blue drop status KPI 2 Quarterly Assessment Reports on the quality of potable No reports on the blue drop status Opex 4 reports on the blue drop status submitted to Council for period ended June 1 report on the blue drop status submitted to Council by end January Not achieved Competency of the district reports (1per quarter) on the blue drop status submitted to Council for period ending 23 P a g e

24 T.S water June Service Delivery Infrastructure Development reports on additional household s provided with water connection KPI 3 T.S Report on number of New extensions 2=1012 h/h 3, =1144 h/h 4 =477 h/h 10=1011 h/h 12= 1700 h/h =5344 New Establishme nts- without connections Geluksoord Ext 2, 3, & 4; Bloemhof Ext 10, & 12 Opex 4 reports on additional households provided with water connections (RDP Stard) for period ended June 1 report on additional household water connection submitted to Council by end January Ext.2=1012 h/h Not Achieved Item served in the infrastructure portfolio committee. The item will be sent to Council within the FY. Reports to serve in Council before June. Minutes of the portfolio meeting Ext.10=510 Service Delivery Infrastructure Development Approved sanitation master plan.kpi 4 T.S Development of an annual sanitation master plan entailing infrastructur e SWOT analysis (maintenanc e, deter No sanitation master plan in place. Opex Developme nt of a sanitation Masterplan by period ended June SWOT Analysis Report by end. Not Achieved. Item served in the infrastructure portfolio committee. The item will be sent to Council within the FY. Item to serve in Council before June. Minutes of the portfolio meeting 24 P a g e

25 spillages) Service Delivery Infrastructure Development reports on additional household s provided with sewerage connection s (RDP) KPI 5 T.S Quarterly Assessment Reports on the quality of sewer Establishme nts- with sewer network & no H/H connections Geluksoord Ext 2, 3, 4 & BHF ext.,10; Without network BHF Ext Utlwanang EXT.3 4 reports on additional households provided with sewerage connections (RDP Stard) by end June 1 report on additional household with sewer connection submitted to Council by end January Ext.2=1012 h/h Ext.10=510 Not Achieved Item served in the infrastructure portfolio committee. The item will be sent to Council within the FY. Reports to serve in Council before June. Minutes of the portfolio meeting CTA.TOWN & TOWNLAND S Service Delivery Infrastructure Development reports on the Green drop status. KPI 6 T.S Quarterly Assessment Reports on the quality of sewer No reports on green drop status Opex 12 reports on the Green drop status submitted to Council for period ended June 6 reports on the green drop status submitted to Council by end January Not Achieved Competency of the district reports on the green drop status submitted to Council for period ended June Service Delivery Hectares of Allocation of hectares of 364,9267 hectares of 364,9267 Hectares of BHF Ext.11 Not Achieved Still awaits SG number, L??????????? Reports 25 P a g e

26 Infrastructure Development municipal l released for human settlement s developme nt KPI 7 C.S l for human settlements Geluksoord Ext.=,4,5 Utlwanang ext.3 BHF ext.3,4, BHF ext.11,12 municipal l available for human settlement Existence of informal settlements at ext.4 Geluksoord & Ext.12 Bloemhof municipal l released for human settlements by end June Contour survey Geotechnical Investigation Heritage Resources Impact Assessment Environment al Impact Assessment survey, pegging EIA reports from the Town Planners. Engineering Services Investigation Utlwanang Ext.3 Develop water & sewer layout plans (BHF ext. 12 develop water & sewer layout plans pending report from maxim) BHF Ext.3,4 develop 26 P a g e

27 water & sewer layout plans by end Service Delivery Infrastructure Development Review of electrificati on master plan. KPI 8 T.S Review of old electricity master plan entailing infrastructur e SWOT analysis Old electricity master plan Approved electricity master plan for period ended June SWOT Analysis Report by end Not achieved Item served in the infrastructure portfolio committee. The item will be sent to Council within the FY. Item to serve in Council before June. Minutes of the portfolio meeting Service Delivery Infrastructure Development new household s with access to electricity KPI 09 T.S Electrificatio n of households in Geluksoord Ext.3 & 4 in order to address the current backlog Total 2136 hh-1745 electrified =Ext.3@391 +( ext4@477)= 868 backlog INEP 9 Million 470 households with access to electricity by end June 235 Connections by end Achieved Total connections of 388 completed by. Electrical connections done at Geluksoord ext. 3 & Progress reports minutes. COMMUNITY SERVICES 27 P a g e

28 Service Delivery Infrastructure Development household s with basic waste collection. KPI 10 C.S households receiving weekly refuse removal services households receive basic waste collection 3777 without refuse removal Opex households with basic waste collection by end June households with basic waste collection by end Achieved households with basic waste collection Achieved None None Daily attendance Schedules Ward committee report Service Delivery Infrastructure Development Approved Integrated Waste Managem ent Plan. KPI 11 C.S Finalization approval of the IWMP Draft Integrated Waste Managemen t Plan in place Opex Approved Integrated Waste Manageme nt Plan by end June Referral of draft IWMP to Council For Adoption by end Dec. Not Achieved Awaits council resolution. Must be refer to Council in the 3 rd quarter. IWMP & Council Resolution Service Delivery Infrastructure Development No of reports on the maintenan ce of the operationa l lfill sites. lfill sites maintaine d Quarterly maintenance Cleaning -of 2 operational existing lfill sites in Bloemhof Christiana Cleaning Not properly maintained lfill sites 4 reports on the maintenanc e of the operational lfill sites. by end June 2 Maintenance Reports of existing lfill sites by end Achieved 2 reports None None 4 Maintenance Reports of existing lfill sites KPI P a g e

29 C.S Service Delivery Infrastructure Development sports facilities maintaine d KPI 13 C.S Quarterly maintenance of 2 existing sports facilities in Coverdale Geluksoord Cleaning grass, cutting, Not properly maintained sports facilities Opex 2 sports facilities maintained by end June 2 Maintenance Report of existing sports facilities by end Achieved 2 reports None None 4 Maintenance Reports of existing sports facilities irrigation, weed control Service Delivery Infrastructure Development municipal parks maintaine d KPI 14 C.S Quarterly maintenance of 1 existing Geluksoord parks Maintenance includes cleaning, Not properly maintained parks facilities Opex 1 municipal parks maintained by end June 2 Maintenance Report of existing park by end Achieved 2 reports None None 4 Maintenance Reports of existing park irrigation, grass cutting, weed control Service Delivery Infrastructure Development Number of signboards of illegal dumping Erection of No Dumping Sites Signs on identified sites Widespread illegal dumping without no dumping Opex 40 signboards of illegal dumping erected by end June 20 signboards by end Not Achieved Delays in procurement processes Finalize procurement in 3 rd quarter. Photos / Invoices / 29 P a g e

30 erected signage KPI 15 C.S Service Delivery Infrastructure Development Road signs erected KPI 16 Erection of road signs on identified roads/streets Valized road signs. OPEX 20 road signs erected by end June 10 road signs erected by end Dec. Achieved 10 Road signs erected Achieved None None Invoices Photos C.S Service Delivery Infrastructure Development reports on revenue collected through traffic fines KPI 17 Revenue collected through speed cameras, roadworthy inspections issuing of both drivers learner licenses Not adequately reported 12 Reports on revenue collected through traffic fines by end June 6 Reports on revenue collected through traffic fines by end Achieved 6 reports on revenue collected through traffic fines None None Traffic fine reports Register C.S Service Delivery Infrastructure Development cemeteries fenced. KPI 18 Fencing of cemeteries in Coverdale, Boitumelong( X2) Geluksoord Not properly fenced maintained cemeteries READ 3. M 7 cemeteries fenced by end June Tender process by end Achieved Material delivered for fencing cemeteries procure by Due quantity of material procured by READ only 5 cemeteries will be fenced Need to adjust number of cemeteries. Completion certificates & maintenance reports. 30 P a g e

31 C.S Utlwanang READ. Delivery notes. Makweteng (BHF) Makweteng (CTA) Service Delivery Infrastructure Development Approved road master plan. KPI 19 Development of an annual road master plan entailing infrastructur e SWOT analysis No road master plan Opex Approved road master plan by end June SWOT Analysis Report by end Not achieved Item served in the infrastructure portfolio committee. The item will be sent to Council within the FY. Item to serve in Council before June. Minutes of the portfolio meeting T.S Service Delivery Infrastructure Development KMs of municipal internal roads paved. KPI 20 T.S Paving of internal road in Boiteko Str=340 m Motsemotsh a =330 Kgololosego =330 Seneke Str=387 Gravel surfaced road MIG 1,7km of municipal internal roads paved in Utlwanang by end June 774m municipal internal roads paved- Boiteko Seneke Mahumapelo by end Achieved 924m of roads paved by. Paved roads as follows: Seneke str: 387m Mahumapelo: 387m - - Progress reports 31 P a g e

32 Mahumapelo Str=387 Boiteko: 150m Service Delivery Infrastructure Development KM of municipal roads maintaine d by June KPI 21 T.S Patching of potholes, cleaning road markings Bloemhof Christiana Boitumelong Utlwanang Pothole riddled roads Opex 2 KM of municipal roads maintained by end June 1km by end Achieved 900m patching of potholes in BHF. 900m patching of potholes in CTA. - - Report Photos Geluksoord Coverdale Salamat Service Delivery Infrastructure Development KMs of storm water drainage maintaine d by June Cleaning of storm water drainage system Not properly cleaned, Maintained repaired storm water drainage system 5 km of storm water drainage maintained by end June 2.5km by end Achieved 3.5 km storm water drainage maintained. - - Report & photos KPI 22 T.S 32 P a g e

33 B. KEY PERFORMANCE AREA 2 LOCAL ECONOMIC DEVELOPMENT (LED) OBJECTIVE Performance Indicator Indicator definition Baseline BUDGET ANNUAL TARGET MIDTERM TARGET JUL. Dec 17 Actual performance Reason for deviation Remedial action POE Strengthenin g the enabling environment through more flexible regulations, better access to finance markets, improved infrastructur e facilities business support, Development of the new LED Strategy in line with Provincial National development al plan adopted. KPI 23 M.O Development Of The LED Strategy Out-dated LED strategy LED strategy developed by end June Public Consultations By End Not Achieved Technical capacity deficiency. Failure by third party to deliver on commitment. Follow-up request with FEED. Aligned strategy Correspon dence with third party. municipal LED intergovernm ental platforms convened. KPI 24 Municipal LED intergovernm ental forum meetings Inconsistent LED engagements 4 LED intergovernme ntal forums convened by June 2 LED intergovernmen tal forums convened By End Achieved 2 LED intergovernm ental forums convened 1 Meeting with DSD. None None Reports, minutes of meetings. M.O 1 Meeting with Dep. Of 33 P a g e

34 Mineral resources. business opportunities created for Local SMMEs through LED initiatives & Capital projects. KPI 25 M.O Local Emerging developing SMMEs from previously disadvantage d areas to be given opportunities through MIG & INEP other projects. Inadequate opportunities afforded to local SMMEs 16 business opportunities created by end June 8 business opportunities for Local SMMEs By End Not achieved 2 subcontractor s appointed for installation of VIP toilets. 4 SMME contractors appointed to deliver material for cemeteries. None None Appointme nt letters order numbers. 34 P a g e

35 LED initiated development al programs for Local SMMEs KPI 26 M.O Capacitation programs for local SMMEsworkshops,trainings, seminars Inadequate support to local emerging SMMEs Opex 8 4 Capacitation Programmes By End Achieved 4 Seminars on Bloemhof Dam Development initiatives to create opportunities for subcontractor s None None Invites/regi sters/minu tes /photos Communic ation to SEDA. Engaging SEDA to allocate mobile office around Lekwa- Teemane for easy access of services work opportunities created through EPWP. EPWP beneficiary recruitment 140 beneficiaries 120 work opportunities created through EPWP by June None Not achieved 55 municipal EPWP intake Budgetary constraints Made budget provision for the remaining EPWP intakes in the third quarter. Employme nt registers contracts KPI P a g e

36 M.O jobs created through LED initiatives including capital projects. KPI 28 M.O Jobs created through other municipal initiatives such as infrastructure projects. Jobs created but not reported 100 jobs created through other municipal initiatives by end June 50 By End Achieved 75 job opportunities created in ward 4 Bloemhof on the installation 425 VIP toilets at ext. 12 in Christiana Ext 2 &3 None None Employme nt registers C. KEY PERFOMANCE AREA 3 -FINANCIAL VIABILITY AND MANAGEMENT Objective Performance Indicator Baseline Indicator definition Budget Annual target / MIDTERM TARGET Jul. Dec 17 Actual performance Reason for deviation Remedial action POE financial policies reviewed adopted by council KPI 29 - Finance policies 1. Credit Control debts collection, 2. Asset management - Finance policies 1. Credit Control debts collection, 2. Asset management policy, 3. Indigent policy, 4. Property Rates 9 reviewed approved financial policies by end June 6 Policies reviewed by end Property rates Achieved 3 Policies reviewed Still awaiting portfolio approval Expedite the review of the remaining policies also engage the relevant chairperson of Attach the policies reviewed, Council Resolution 36 P a g e