ADJUSTMENT BUDGET 2017/18

Transcription

1 SOL PLAATJE LOCAL MUNICIPALITY (NC091) ADJUSTMENT BUDGET 2017/18 27 February 2018

2 Table of Contents PART 1 - ADJUSTMENT BUDGET Executive Mayor s Report Resolutions Executive Summary Adjustment budget tables and narratives PART 2 - SUPPORITNG DOCUMENTATION Adjustment budget assumptions Adjustments to budget funding Adjustments to expenditure allocations and grant programme Adjustments to allocations and grants made by the municipality Adjustments to Councillor allowances and Employee benefits Adjustments to Service Delivery and Implementation Adjustments to Capital expenditure Conclusion Other Supporting Documentation Municipal Manager s Quality Certification ANNEXURE A : B-SCHEDULES

3 LIST OF ABBREVIATIONS AND ACRONYMS USED IN THE ADJUSTMENT BUDGET AGSA - Auditor-General South Africa BTO - and Treasury Office CAPEX Capital Expenditure CFO - Chief Financial Officer COGHSTA - Department of Co-operative Governance, Human Settlement and Traditional Affairs DBSA - Development Bank of South Africa DoRA - Division of Revenue Act DPW Department of Public Works DWA - Department of Water Affairs ED - Executive Director EEDG - Energy Efficiency and Demand Side Management Grant EPWP - Expanded Public Works Programme FBDM Frances Baard District Municipality GG Government Gazette GRAP - Generally Recognised Accounting Practices GURP - Galeshewe Urban Renewal Programme IDP - Integrated Development Plan INEP - Integrated National Electrification Programme ISDG - Infrastructure Skills Development Grant IT - Information Technology KPA - Key Performance Area KPI - Key Performance Indicator MBRR - Municipal and Reporting Regulations (GG of 17 April 2009) MBS Monthly Statement MFMA - Municipal Finance Management Act (Act 56 of 2003) MIG - Municipal Infrastructure Grant MM - Municipal Manager MSA - Municipal Systems Act MSIG - Municipal Systems Improvement Grant MTREF - Medium Term Revenue and Expenditure Framework NDPG - Neighbourhood Development Partnership Grant NERSA - National Energy Regulator of South Africa ( the Regulator ) NT - National Treasury OPEX Operational Expenditure PPE - Property, Plant and Equipment R&M - Repairs and Maintenance SCM - Supply Chain Management SCOA Standard Charts of Accounts SDBIP - Service Delivery and Implementation Plan SEDP - Strategic Economic Development and Planning SLA -Service Level Agreement SMME -Small, Medium and Micro Enterprises SPLM - Sol Plaatje Local Municipality VAT Value Added Tax YTD Year-to-date

4 PART 1 - ADJUSTMENT BUDGET 4

5 1. Executive Mayor s Report Speech to be delivered at the tabling of the Adjustment 2017/ Resolutions Approval of Adjustments for the year ending 30 June 2018 Mrs ZL Mahloko) 28 February 2017 Purpose The purpose of this report is to obtain approval of the additional adjustments to the approved 2017/18 Medium Term Revenue and Expenditure Framework (2017/18 MTREF) in terms of Section 28 of the Municipal Finance Management Act 56 of 2003 for the year ending 30 June For noting / for decision by For decision by: Council (to approve) The item/report has NOT been considered by a portfolio committee. This item is for decision by Council. Background The 2017/18 MTREF was approved by Council on the 31 of May 2017 in accordance with MFMA Section 24 (1). Section 28 of MFMA requires a municipality to revise an approved annual budget through an adjustment, and section 28 (4) requires that only the mayor may table an adjustment budget in the municipal council. After careful consideration of the actual year to date performance of the approved original capital and operational budgets, it became necessary that the municipality s budgets be adjusted to reflect the actual performance as well as the projected performance for the rest of the financial year. In terms of section 23 (1) of the Municipal and Reporting Regulations Government Gazette No April 2009, the following is required; An adjustment budget may be tabled in council at any time after the mid-year budget and performance assessment has been tabled in council, but not later than 28 February of the current financial year. There are various factors that played a role in the revision of the approved budget as detailed in the annexure. Operational Revenue Adjustment: The operational revenue budget for 2017/18 has been adjusted in line with the full year forecast for service charges for the year, which indicate a below target billing of R50 million, as well as the reduced full year forecast of revenue from other sources, in the amount of R6,7 million, whilst transfers recognised See Table B1-Sum. The impact. The final budget for operational revenue accordingly is R

6 Operational Expenditure Adjustment The net effect of all adjustment on operational expenditure budget amount to R with approximately R17 million adjustment on other expenditure, see Table B1 Sum. With regards to capital budget, overall effect of adjustments is an increase in funds available of R The major adjustment is the increase of the NDPG allocation for the Installation and Upgrade of Roads and Storm Water Project covering various areas in the whole of the city. The final capital budget as proposed is R Annexures Schedule B tables and charts Adjustment 2017/18 MTREF Motivation None Personnel Implications None Financial Implications There are no further financial implications other than as indicated in the annexure. Legal Authority and Implications Section 28 of MFMA and Municipal and Reporting Regulations 2009 Consultation The Municipal Manager, all Executive Directors and Senior Managers, the Steering Committee (Chaired by the Executive Mayor) and the Mayoral Committee. Contact Person Ald O.M Matika Chairperson of the Steering Committee G.H. Akharwaray Municipal Manager Z.L. Mahloko Chief Financial Officer 6

7 RECOMMENDATION: 1. That the operational and capital adjustment budget as tabled in Schedule B tables and charts be approved as listed below: 1.1 Table B1 Adjustment Summary 1.2 Table B2 Adjustment Financial Performance (functional classification) 1.3 Table B3 Adjustment Financial Performance (revenue and expenditure by municipal vote) 1.4 Table B4 Adjustment Financial Performance (revenue and expenditure) 1.5 Table B5 Adjustment Capital Expenditure by vote and funding 1.6 Table B6 Adjustments Financial Position 1.7 Table B7 Adjustment Cash Flows 1.8 Table B8 Cash back reserves and accumulated surplus reconciliation 1.9 Table B9 - Asset Management 1.10 Table B10 Basic Service Delivery Measurement 1.11 Table SB1 SB19 Supporting tables 2. That due to mscoa Reporting requirements, the schedules may change from what is presented here, with the totals remaining the same, that Council gives the Municipal Manager and the CFO permission to effect, all necessary corrections as a result of reporting requirements and report to the Executive Mayor. The Executive Mayor will report accordingly to Council when necessary. 3. That the adjusted budget be submitted to the relevant stakeholders accordingly. 7

8 3. Executive Summary 3.1 Adjustment Overview The level of compliance in the organisation is remarkable, taking into account the reporting obligations as a result of Municipal Standard Chart of Accounts (mscoa) Regulations. We must acknowledge challenges emanating from seamless integration of all systems at a detailed level on the core financial system. This part of the mscoa implementation will continue into the next foreseeable future. Despite this challenge, the municipality has been up to date thus far with all the reporting obligations. Since the submission of the mid-term budget performance assessment report to Council, the Steering Committee convened to guide the process and finalisation of the adjustment budget. Meetings were also held with government departments, such as the Department of Minerals (DoE) and Energy with regards to the Integrated National Electrification Program (INEP) as well as with National Treasury (NT) on Municipal Infrastructure Grant (MIG) and the Neighbourhood Development and Partnership Grant (NDPG). Performance reporting is also critical as it is based on the outcomes of the effectiveness of planning and execution that the people will receive services. The Municipal Manager had set up a committee that assists with the review of reported performance against the portfolio of evidence for each Key Performance Indicator. There are still areas of struggle but with the consistency of reviews and holding officials accountable, auditing of performance information is not expected to be cumbersome both for internal auditors and external auditors. The municipality experienced a number of protests and carefully not labelled as service delivery related but instigated elsewhere in the communities. The Executive Mayor, supported by the Mayoral Committee and Administration have met with the affected communities in an effort to provide clarity or resolve the issues amicably. The operational budgets of the municipality did not show significant variances, however, the slightest that are reported necessitated the adjustment of both the operational revenue and expenditure budgets. This has applied to the capital budget where additional funding received had to be taken into account as well as the outcomes of discussions with NT and DoE regarding MIG, NDPG and INEP grant adjustments had to find expression in the adjustment. There are also projects that needed to be brought back into the capital budget to deal with works as agreed upon, for the completion of projects. These required an increase in contribution from internally generated funds (CRR) to cover the required budget for these projects. 8

9 The additional funding from CRR will put more pressure on already pressured cash flow position which in terms of the mid-term liquidity assessment, the municipality stood at 2 months coverage versus a healthy position of three months. Debtors management remains the biggest challenge with debtor s book growing at over 15% per month with debtors collection days soaring at 414 days as per the debtors balances for December 2017 and Creditors Payment days 57, a drastic action is required to preserve liquidity, sustainability and going concern ability of the municipality. Despite the above, the financial performance indicators reflect that the municipality is in a healthy fiscal position notwithstanding the threats and risks of the economy. ary control ensures that spending is within affordability parameters in order for the city to deliver on its core mandate and achieve its developmental goals. The 2017/18 additional adjustments budget does not affect the long-term financial sustainability of the municipality. Due to various indicators as per the mid-term budget assessment results, it became clear that the approved operational and capital budget for the 2017/18 MTREF needed revision. Some of the material underlying reasons include the following; Lower than projected revenue from service charges sale of electricity and sale of water. 1. Decrease of revenue derived from Disconnections/reconnections. 2. Increase in general expenses (municipal running and operating costs) 3. Increase in maintenance costs as well as Contracted services. 4. Final expenditure on capital budget at year end resulting in rolling over of projects and funds to the next financial year 5. New budget allocations that became known after the approval of the MTREF 6. New needs identified after the approval of the MTREF NC091 Sol Plaatje - Table B1 Adjustments Summary - 28 February 2018 Year 2017/18 Year Year / /20 Description Original Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A E F G H Total Revenue (excluding capital transfers and 1,944,729 (1,965) (52,649) (54,614) 1,890,115 2,075,346 2,205,841 contributions) Total Expenditure 1,936,491 (140) 21,461 21,321 1,957,812 2,066,096 2,196,444 Surplus/(Deficit) 8,238 (1,825) (74,110) (75,935) (67,697) 9,251 9,397 Transfers recognised - capital 159,589 63,543 63, ,132 90, ,553 Surplus/ (Deficit) for the year 167,827 61,718 (74,110) (12,392) 155, , ,950 9

10 The table and chart above indicates an adjustment budget overview with a downward adjustment on total operational revenue of R resulting in the final budget of R for the 2017/18 MTREF. The total revenue for the outer years has not been adjusted as it is currently in the process of preparation and consolidation for tabling to Council in March. The total operating expenditure moved upwards by R , resulting in the final adjusted budget of R for the 2017/18 MTREF. The surplus for the year is estimated at R for the period, after taking into account the capital transfers and contributions of R The capital expenditure budget increased by over R as a result of unspent grants at year end 30 June 2017, as well as rolled over funds and projects funded from internally generated funds. The final capital expenditure budget funding is presented in the table and charts below. Transfers recognised capital increased by R from R to R which constitutes an increase 39%. Internally generated funds increased by R from R to R which constitutes an increase of 25%. 10

11 Year 2017/18 Year Year / /20 Description Original Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A E F G H Capital expenditure & funds sources Capital expenditure 232,066 63,543 18,333 81, , , ,553 Transfers recognised - capital 159,589 63,543 63, ,132 90, ,553 Public contributions & donations Borrow ing Internally generated funds 72,476 18,333 18,333 90,809 91,071 35,000 Total sources of capital funds 232,066 63,543 18,333 81, , , ,553 11

12 The final capital expenditure budget is R for the 2017/18 MTREF of which 71% is funded from Transfers recognised capital and 29% from Internally generated funds. This is a commendable improvement in funding from own sources for the municipality compared to prior financial years. We anticipate 100% spending on capital budget by 30 June Within these adjustments, the INEP funding has been reduced by R5 million in line with cash flow projections of earmarked projects, whilst MIG has been reduced by R15 million. The NDPG has been increased by over R60 million as per the correspondence received from National Treasury in this regard. 4. Adjustment budget tables and narratives 4.1 Adjustment Revenue Framework The municipality relies heavily on successful collection of billed revenue to finance its operations. It very important that monthly cash expenditure is measured against monthly billed revenue and collected revenue at the same time. The collection rate is one of the critical key performance indicators that are reported on, on a monthly basis. It is becoming more and more challenging to collect revenue and recover debt as a result of economic conditions that are not favourable for both businesses and residential customers. The indigent register is growing, and the situation is exacerbated by demand for land for informal settlement purposes which put more pressure on demand for services with no new income being realised from these developments. The municipality is now pursuing development of land for middle income earners to balance non-revenue developments with possible revenue generation developments. Electricity remains the main revenue source for the municipality and revenue protection measures are being implemented to minimise nonrevenue customers, theft, illegal connections and customers escaping the grid and opting for alternative energy sources such as small scale embedded energy generation and/or photovoltaic installations. Overall service charges contribute 55% of total revenue of the municipality, whilst rates and taxes contribute 27% and other revenue sources make up 18% including revenue from grants and subsidies received. 12

13 NC091 Sol Plaatje - Table B1 Adjustments Summary - 28 February 2018 Year 2017/18 Year Year / /20 Description Original Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A E F G H Financial Performance Property rates 511, , , ,579 Service charges 1,078,943 (48,900) (48,900) 1,030,043 1,155,962 1,234,434 Inv estment rev enue 20,000 20,000 22,000 23,000 Transfers recognised - operational 173,256 (1,965) 4,051 2, , , ,615 Other own revenue 160,934 (7,800) (7,800) 153, , ,213 Total Revenue (excluding capital transfers and contributions) 1,944,729 (1,965) (52,649) (54,614) 1,890,115 2,075,346 2,205, /18 Revenue By Source (R'000) Service charges % Investment revenue % Property rates % Transfers recognised - operational % Other own revenue % From the table and chart above, Property rates income has not been adjusted With regards to service charges in total, a net negative movement of R has been effected. This is as a result of average billing and demand for service charges that is on average, below the original estimate. The downward adjustment of service charges has resulted in the final budget for service charges being reduced from R to R , which constitute a 4.63% reduction from the original budget. Service charges: electricity has been adjusted downwards by R and Service charges: water has been adjusted downwards by R Service charges: sanitation has been adjusted upwards by R as a result of a mscoa classification change. Lower electricity demand is estimated during summer months and the impact on consumers opting to make use of renewable energy. The exact impact of the latter issue cannot be realistically estimated or determined due to base data not being readily available 13

14 Disconnection and reconnection fees has been adjusted downwards by R Building plan approvals has been adjusted downwards by R due to various factors, whilst Market dues has also been adjusted downwards by R as a result of the drought and less agents being active at the market. Income for Agency services has also been adjusted upwards by R NC091 Sol Plaatje - Table B4 Adjustments Financial Performance (revenue and expenditure) - 28 February 2018 Year Year Year 2017/ / /20 Description Original Nat. or Prov. Other Total Govt Adjusts. Adjusts R thousands A E F G H Revenue By Source Property rates 511, , , ,579 Property rates - penalties & collection charges Serv ice charges - electricity rev enue 711,106 (40,000) (40,000) 671, , ,502 Serv ice charges - water rev enue 264,046 (10,000) (10,000) 254, , ,625 Serv ice charges - sanitation rev enue 59,482 1,100 1,100 60,582 65,402 69,329 Serv ice charges - refuse rev enue 44,309 44,309 47,197 49,977 Serv ice charges - other Rental of facilities and equipment 11,115 11,115 11,833 12,541 Interest earned - external inv estments 20,000 20,000 22,000 23,000 Interest earned - outstanding debtors 97,629 97,629 87,619 77,604 Dividends receiv ed Fines 22,430 (7,000) (7,000) 15,430 23,721 24,967 Licences and permits 2,905 2,905 3,050 3,218 Agency serv ices 4,000 4,000 4,000 Transfers recognised - operating 173,256 (1,965) 4,051 2, , , ,615 Other rev enue 26,855 (4,800) (4,800) 22,055 28,339 29,883 Gains on disposal of PPE Total Revenue (excluding capital transfers and contributions) 1,944,729 (1,965) (52,649) (54,614) 1,890,115 2,075,346 2,205,841 The net effect of all the revenue adjustments is a net negative adjustment of R , excluding capital grants. 14

15 NC091 Sol Plaatje - Table B3 Adjustments Financial Performance (revenue and expenditure by municipal vote) - 28 February 2018 Year Year Year 2017/ / /20 Vote Description Original Nat. or Prov. Other Total Govt Adjusts. Adjusts. [Insert departmental structure etc] R thousands A E F G H Revenue by Vote Vote 1 - EXECUTIVE AND COUNCIL Vote 2 - MUNICIPAL AND GENERAL 412,281 63,543 4,051 67, , , ,266 Vote 3 - MUNICIPAL MANAGER 2,214 2,214 2,335 2,452 Vote 4 - CORPORATE SERVICES 7,724 7,724 8,076 8,531 Vote 5 - COMMUNITY SERVICES 87,904 (600) 3,000 2,400 90,304 94,628 98,198 Vote 6 - FINANCIAL SERVICES 526,681 (1,365) (7,000) (8,365) 518, , ,587 Vote 7 - STRATEGY ECON DEVELOPMENT AND PLANNING 9,467 (2,700) (2,700) 6,767 10,034 10,612 Vote 8 - INFRASTRUCTURE AND SERVICES 1,058,047 (50,000) (50,000) 1,008,047 1,133,635 1,210,748 Total Revenue by Vote 2,104,318 61,578 (52,649) 8,929 2,113,247 2,166,216 2,351,394 Senior Managers are charged with the responsibilities of sound financial management and as such, the assets and resources assigned to the votes generates revenue for the municipality. Financial services vote has the full responsibility of billing and collecting on all services rendered by the municipality. The Municipal and General vote deals with council wide revenue generation including the unconditional grants, interest received from investments etc. it is for this reason that revenue has been increased by R to a final budget of R Executive and Council vote generates R0 income and the final budget remained unadjusted. Municipal Manager and Corporate Services revenues remain unadjusted for the period under review. Community Services has been adjusted downwards by a net of R to R Resorts - Camping fees were adjusted downwards by R Income from Agency Services increased by R , whilst provincial grants for Libraries was adjusted downwards by R Financial Services was adjusted downwards by R which is attributable to the decrease on Disconnection/Reconnection fees. Strategy, Economic Development and Planning has also been adjusted downwards by R due to Market income and Building plan approvals not materialising. Infrastructure and Services revenue has been reduced by R and this is attributable to the downward adjustment on Service charges: Electricity of R and Sale of Water R The table below presents revenue adjustment by functional classification, and the movements are indicated in the relevant column, Nat or Prov Govt and Other Adjusts. 15

16 NC091 Sol Plaatje - Table B2 Adjustments Financial Performance (functional classification) - 28/02/2018 Year Year Year 2017/ / /20 Standard Description Original Nat. or Prov. Other Total Govt Adjusts. Adjusts R thousands A E F G H Revenue - Functional Governance and administration 947,066 62,178 (2,949) 59,229 1,006, ,986 1,029,809 Ex ecutiv e and council 412,281 63,543 4,051 67, , , ,266 Finance and administration 534,785 (1,365) (7,000) (8,365) 526, , ,543 Internal audit Community and public safety 26,536 (600) (900) (1,500) 25,036 29,494 29,419 Community and social serv ices 11,213 (600) (600) 10,613 13,243 12,219 Sport and recreation 5,002 (1,000) (1,000) 4,002 5,260 5,549 Public safety Housing 10,201 10,201 10,864 11,516 Health Economic and environmental services 17,821 (1,300) (1,300) 16,521 18,879 19,906 Planning and dev elopment 6,349 (1,200) (1,200) 5,149 6,719 7,076 Road transport 11,472 (100) (100) 11,372 12,161 12,830 Env ironmental protection Trading services 1,104,777 (50,000) (50,000) 1,054,777 1,183,283 1,263,191 Energy sources 711,106 (40,000) (40,000) 671, , ,502 Water management 264,326 (10,000) (10,000) 254, , ,938 Waste w ater management 72,382 72,382 79,076 83,755 Waste management 56,963 56,963 60,547 63,995 Other 8,118 2,500 2,500 10,618 8,573 9,070 Total Revenue - Functional 2,104,318 61,578 (52,649) 8,929 2,113,247 2,166,216 2,351,394 The full year forecast for revenue generated from sale of water indicates an under-billing of R which reduces the annual sales revenue to R against total expenditure for water services in the amount of R as per Table B2 of annexures. The sale of electricity also indicates an under-billing of R for the year, thus reducing income from the estimated amount of R to R the reduction in the full year budget can be attributed to a 0% increase in tariffs for electricity for the year, as resolved by Council and NERSA. The total cost for electricity is estimated at R for the year. 16

17 4.2 Adjustment Expenditure Framework There are no significant adjustments in the operational expenditure budget. The municipality is currently busy considering the review of the organisational and align this to the commitment of becoming a service-delivery oriented organisation in line with our vision of Towards a leading and a modern city. The municipality has implemented the upper limit gazette for the remuneration of public office bearers (municipal councillors). NC091 Sol Plaatje - Table B1 Adjustments Summary - 28 February 2018 Year 2017/18 Year Year / /20 Description Original Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A E F G H Financial Performance Employee costs 679, , , ,613 Remuneration of councillors 27,675 27,675 29,474 31,242 Depreciation & asset impairment 67,510 67,510 74,520 78,648 Finance charges 26,812 26,812 25,799 24,665 Materials and bulk purchases 663,921 (840) 4,035 3, , , ,531 Transfers and grants 9, ,490 9,530 9,587 Other expenditure 461, ,406 18, , , ,158 Total Expenditure 1,936,491 (140) 21,461 21,321 1,957,812 2,066,096 2,196,444 Indicated in the table above are the adjustments made to Expenditure by Type. Other expenditure has been increased as well by R , increasing the full year budget to R the increase is necessitated by additional funding required to complete the installation of security system in various key points in the municipality including Treasury, Supply Chain, Strong-rooms/safes, printing room and other facilities and plants of the municipality. The Finance Department is currently busy preparing for General Valuation Roll 2019, and additional funding was required to fund outsourced service of valuation that could not be done by internal staff. This is in relation to property that requires certain knowledge and experience in the valuation of such. 17

18 NC091 Sol Plaatje - Table B4 Adjustments Financial Performance (revenue and expenditure) - 28 February 2018 Year Year Year 2017/ / /20 Description Original Nat. or Prov. Other Total Govt Adjusts. Adjusts R thousands A E F G H Expenditure By Type Employee related costs 679, , , ,613 Remuneration of councillors 27,675 27,675 29,474 31,242 Debt impairment 203, , , ,795 Depreciation & asset impairment 67,510 67,510 74,520 78,648 Finance charges 26,812 26,812 25,799 24,665 Bulk purchases 524, , , ,682 Other materials 139,921 (840) 4,035 3, , , ,850 Contracted serv ices 44,219 12,955 12,955 57,174 46,784 49,276 Transfers and grants 9, ,490 9,530 9,587 Other expenditure 214, ,451 5, , , ,086 Total Expenditure 1,936,491 (140) 21,461 21,321 1,957,812 2,066,096 2,196,444 The net effect of all these movements is a net increase of R , thus increasing the operational expenditure budget from R to R Indicated in the chart below is the weighting of each expenditure category: 18

19 The table below indicates adjustment budget of operational expenditure by functional classification for the 2017/18 MTREF. The adjustment budget assumptions had been limited to the current MTREF as the municipality is currently busy with 2018/19 MTREF which will be tabled to Council in March 2018 as per the IDP and Process Plan. To ensure an easy understanding of the movements, amounts in brackets indicate a reduction in original budget allocated, thus the final budget is expected to be lower with the amount. reductions are informed by year to date expenditure, the previous year s actual and the progress made to date in executing programmes as planned for the year. NC091 Sol Plaatje - Table B2 Adjustments Financial Performance (functional classification) - 28/02/2018 Year Year Year 2017/ / /20 Standard Description Original Nat. or Prov. Other Total Govt Adjusts. Adjusts R thousands A E F G H Expenditure - Functional Governance and administration 613,208 (1,365) 8,354 6, , , ,839 Ex ecutiv e and council 374,830 10,882 10, , , ,144 Finance and administration 232,905 (1,365) (2,728) (4,093) 228, , ,633 Internal audit 5, ,673 5,774 6,063 Community and public safety 162, ,422 3, , , ,237 Community and social serv ices 35, ,775 40,681 41,593 Sport and recreation 52, ,026 55,201 58,237 Public safety 33,476 1,447 1,447 34,923 35,306 37,085 Housing 24, ,110 25,966 27,523 Health 16, ,976 17,851 18,799 Economic and environmental services 121, (47) , , ,145 Planning and dev elopment 45, ,716 47,868 50,465 Road transport 75,437 (47) (47) 75,390 80,270 85,014 Env ironmental protection Trading services 1,017,279 10,532 10,532 1,027,810 1,094,488 1,172,618 Energy sources 666,189 1,500 1, , , ,233 Water management 223,230 5,600 5, , , ,230 Waste w ater management 70,996 3,432 3,432 74,428 77,474 81,460 Waste management 56,863 56,863 60,347 63,695 Other 22, ,292 23,287 24,605 Total Expenditure - Functional 1,936,491 (140) 21,461 21,321 1,957,812 2,066,096 2,196,444 The table above is a detailed expenditure adjustment budget according to the Functional Classification. The table below presents the final expenditure budget per vote after taking into account the movements as indicated in the adjustments by expenditure type and by functional classifications as explained above. As part of implementing mscoa and keeping control on municipal spending on software license fees an additional funding is required for licences 19

20 fees accordingly. All these are directly relating directly to other expenditure as alluded above. NC091 Sol Plaatje - Table B3 Adjustments Financial Performance (revenue and expenditure by municipal vote) - 28 February 2018 Year Year Year 2017/ / /20 Vote Description Original Nat. or Prov. Other Total Govt Adjusts. Adjusts. [Insert departmental structure etc] R thousands A E F G H Expenditure by Vote Vote 1 - EXECUTIVE AND COUNCIL 43,808 43,808 46,520 49,168 Vote 2 - MUNICIPAL AND GENERAL 322,418 8,136 8, , , ,444 Vote 3 - MUNICIPAL MANAGER 20,539 1,700 1,700 22,239 21,668 22,752 Vote 4 - CORPORATE SERVICES 65,620 65,620 69,346 73,065 Vote 5 - COMMUNITY SERVICES 249,676 1,275 1, , , ,277 Vote 6 - FINANCIAL SERVICES 127,796 (1,365) 750 (615) 127, , ,244 Vote 7 - STRATEGY ECON DEVELOPMENT AND PLANNING 54, ,709 57,401 60,581 Vote 8 - INFRASTRUCTURE AND SERVICES 1,052, ,600 10,300 1,062,750 1,132,187 1,212,913 Total Expenditure by Vote 1,936,491 (140) 21,461 21,321 1,957,812 2,066,096 2,196, Adjustment Capital Expenditure The capital budget of the municipality comprises of various projects that are aimed at refurbishing and upgrading the existing service delivery infrastructure as well as creation of new infrastructure to meet current and future demand. On an annual basis, the IDP of the municipality is reviewed with an intent to agree on programmes and projects identified for implementation during a three-year period as per the Reporting Regulations requirements. At the project planning stage, it may be anticipated that the project will be implemented over a single or multi-year with projected start and completion date. It also happens that during the implementation of the project, unforeseen and other contingencies lead to project delays or change of scope, thus resulting in project plan being amended to accommodate all the above circumstances. New funds also become available during the course of the financial year, after the approval of the MTREF, and for these to be incorporated into the capital budget of the municipality, and adjustment of capital expenditure budget becomes necessary. It is for these and other reasons as will be elaborated on that the capital expenditure budget is adjusted. 20

21 NC091 Sol Plaatje - Table B1 Adjustments Summary - 28 February 2018 Year 2017/18 Year Year / /20 Description Original Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A E F G H Capital expenditure & funds sources Capital expenditure 232,066 63,543 18,333 81, , , ,553 Transfers recognised - capital 159,589 63,543 63, ,132 90, ,553 Public contributions & donations Borrow ing Internally generated funds 72,476 18,333 18,333 90,809 91,071 35,000 Total sources of capital funds 232,066 63,543 18,333 81, , , ,553 The table above indicates a summary of capital expenditure budget and the source of the funds. The approved capital budget for the 2017/18 MTREF is R This budget is adjusted upwards by R funded from Capital Grants and Subsidies recognised of R and internally generated funds in the amount of R The final capital expenditure budget amounts to R The MIG has been reduced by R and the final amount for 2017/18 is accordingly R for capex. - The INEP has been reduced by R5 million, with the final budget being R26 million - The NDPG has been adjusted upwards by R NC091 Sol Plaatje - Supporting Table SB8 Adjustments - expenditure on transfers and grant programme - 28/02/2018 Year 2017/18 Year Year / /20 Description Ref Original Prior Multi-year capital Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A A1 B C D E F Capital expenditure of Transfers and Grants National Government: 159,589 49,237 49, ,826 90, ,553 Municipal Infrastructure Grant (MIG) 55,289 (15,000) (15,000) 40,289 51,130 53,999 Neighbourhood Dev elopment Partnership 28,300 69,237 69,237 97,537 21,200 21,200 EDSM INEP 31,000 (5,000) (5,000) 26,000 7,989 50,354 Department of Water Affairs 45,000 45,000 10,551 INEP (Eskom) 20,000 Provincial Government: 10,306 10,306 10,306 Department of Water Affairs DHLG (GURP) DSAC 10,306 10,306 10,306 District Municipality: Frances Baard District Municipality Other grant providers: 4,000 4,000 4,000 Swimming South Africa Other grant providers: 4,000 4,000 4,000 Total capital expenditure of Transfers and Grants 159,589 59,543 4,000 63, ,132 90, ,553 21

22 NC091 Sol Plaatje - Table B5 Adjustments Capital Expenditure by vote and funding - 28 February 2018 Year 2017/18 Description Ref Original Nat. or Prov. Other Total Govt Adjusts. Adjusts R thousands A E F G H Capital expenditure - Vote Year /19 Year /20 Multi-year expenditure to be adjusted 2 Vote 1 - EXECUTIVE AND COUNCIL 3,000 3,000 3,000 3,000 Vote 2 - MUNICIPAL AND GENERAL Vote 3 - MUNICIPAL MANAGER Vote 4 - CORPORATE SERVICES Vote 5 - COMMUNITY SERVICES Vote 6 - FINANCIAL SERVICES 2,000 2,593 2,593 4,593 27,000 7,000 Vote 7 - STRATEGY ECON DEVELOPMENT AND PLANNING 24,100 24,100 27,400 25,400 Vote 8 - INFRASTRUCTURE SERVICES 73,482 66,499 15,981 82, ,963 96, ,153 Capital multi-year expenditure sub-total 3 102,582 66,499 18,574 85, , , ,553 Single-year expenditure to be adjusted 2 Vote 1 - EXECUTIVE AND COUNCIL 7,000 8,154 (9,000) (846) 6,154 Vote 2 - MUNICIPAL AND GENERAL Vote 3 - MUNICIPAL MANAGER Vote 4 - CORPORATE SERVICES Vote 5 - COMMUNITY SERVICES 16,695 (2,898) 3, ,389 Vote 6 - FINANCIAL SERVICES 2,300 2,300 2,300 Vote 7 - STRATEGY ECON DEVELOPMENT AND PLANNING (800) 2,000 1,200 1,200 Vote 8 - INFRASTRUCTURE SERVICES 105,788 (7,412) 866 (6,546) 99,243 28,071 12,000 Capital single-year expenditure sub-total 129,483 (2,956) (241) (3,198) 126,286 28,071 12,000 Total Capital Expenditure - Vote 232,066 63,543 18,333 81, , , ,553 The budget is committed to a list of identified projects as per supporting table SB19 as per Annexure A. Multi-year projects have been adjusted downwards by R whilst single year projects have been adjusted downwards by R Most of the projects under implementation are multi-year and a total of R is allocated to such. R is infrastructure and services related projects in the water and sanitation as well as in electricity sections. This includes the roads and storm-water project implemented under the NDPG facilitated through SEDP Directorate 22

23 Indicated in the chart below is the adjustment to capex per Municipal Vote. The municipal fiscal planning centres around allocation of budget per vote, and these are linked to SDF, the IUDF, the Key Performance Areas and the Municipal Strategic Objectives as contained in the IDP. The Senior Managers are responsible for timely and cost-effective delivery projects within the approved budgets and/or amounts awarded at as per the supply chain processes of acquisition and contracts management. Compliance with the conditions of grants is the responsibility of the Chief Financial Officer as the Municipal Receiving Officer, and all in-year reporting returns are prepared and submitted by the Finance Department in consultation with the Project Implementers and Senior Managers responsible. 23

24 Adjustments were effected under Vote 1 Executive and Council with an downward adjustment of R Vote 8 Infrastructure services was adjusted upwards by R and it also constitutes 81% of the total adjusted capital budget. The chart and table below represents capital expenditure budget by functional classification. The majority of funds are allocated to Water with a weighting of 28%, followed by Waste Water Management 11% and Electricity 10%, 24

25 NC091 Sol Plaatje - Table B5 Adjustments Capital Expenditure by vote and funding - 28 February 2018 Year Year Year 2017/ / /20 Description Ref Original Nat. or Prov. Other Total Govt Adjusts. Adjusts R thousands A E F G H Capital Expenditure - Functional Governance and administration 12,000 8,154 (2,107) 6,046 18,046 30,000 10,000 Executive and council 10,000 8,154 (7,000) 1,154 11,154 3,000 3,000 and treasury office 2,000 4,893 4,893 6,893 27,000 7,000 Corporate services Community and public safety 16,695 (746) 3,593 2,847 19,542 Community and social services 9,809 (2,898) 3, ,279 Sport and recreation 6,886 2, ,377 9,263 Health Economic and environmental services 53,726 63,547 (1,834) 61, ,439 62,991 80,199 Planning and development 2,800 (800) (800) 2,000 6,200 4,200 Road transport 50,926 64,347 (1,834) 62, ,439 56,791 75,999 Environmental protection Trading services 143,644 (7,412) 18,681 11, ,914 84,950 86,354 Electricity 49,000 (5,000) (12,000) (17,000) 32,000 48,989 73,354 Water 58, ,633 29,032 87,855 34,570 13,000 Waste water management 35,821 (2,811) 2,048 (762) 35,058 1,391 Waste management Other 6,000 6,000 4,000 4,000 Total Capital Expenditure - Functional 3 232,066 63,543 18,333 81, , , ,553 From the total budget of R R is allocated to economic and environmental services, with roads transport R In as far trading services, a total of R with electricity receiving R , water management R and waste management R These infrastructures are critical for service delivery and revenue generation capabilities of the municipalities and also attract investment as result of available capacity and state of infrastructure. 25

26 4.4 Adjustment Financial Position NC091 Sol Plaatje - Table B6 Adjustments Financial Position - 28/02/2018 Year 2017/18 Year Year / /20 Description Ref Original Prior Accum. Funds Multi-year capital Unfore. Unavoid. Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A A1 B C D E F G H ASSETS Current assets Cash Call inv estment deposits 1 267, , , ,732 Consumer debtors 1 352, , , ,743 Other debtors 591, , , ,776 Current portion of long-term receiv ables Inv entory 36,865 36,865 39,077 41,422 Total current assets 1,248,887 1,248,887 1,317,991 1,405,674 Non current assets Long-term receivables 1,722 1,722 1,705 1,688 Inv estments Inv estment property 190, , , ,728 Inv estment in Associate Property, plant and equipment 1 1,721,544 1,721,544 1,785,964 1,887,869 Agricultural Biological Intangible 6,521 6,521 6,587 6,653 Other non-current assets 8,648 8,648 8,648 8,648 Total non current assets 1,928,956 1,928,956 1,991,519 2,091,586 TOTAL ASSETS 3,177,843 3,177,843 3,309,510 3,497,260 LIABILITIES Current liabilities Bank overdraft Borrow ing 9,251 9,251 9,397 9,530 Consumer deposits 34,555 34,555 37,665 40,679 Trade and other payables 214, , , ,155 Prov isions 10,516 10,516 11,200 11,872 Total current liabilities 268, , , ,236 Non current liabilities Borrow ing 1 192, , , ,374 Prov isions 1 313, , , ,039 Total non current liabilities 506, , , ,413 TOTAL LIABILITIES 775, , , ,648 NET ASSETS 2 2,402,541 2,402,541 2,502,662 2,657,612 COMMUNITY WEALTH/EQUITY Accumulated Surplus/(Deficit) 2,307,541 2,307,541 2,416,962 2,576,162 Reserv es 95,000 95,000 85,700 81,450 Minorities' interests TOTAL COMMUNITY WEALTH/EQUITY 2,402,541 2,402,541 2,502,662 2,657,612 Due to the projects anticipated to be work in progress as at year end, the statement of financial position has not been adjusted. It is anticipated that the net community wealth will remain at R2,402,541 billion. 26

27 4.5 Adjustment Cash flow Position NC091 Sol Plaatje - Table B7 Adjustments Cash Flows - 28/02/2018 Year 2017/18 Year Year / /20 Description Ref Original Prior Accum. Funds Multi-year capital Unfore. Unavoid. Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A A1 B C D E F G H CASH FLOW FROM OPERATING ACTIVITIES Receipts Property rates 464, , , ,111 Service charges 980, ,652 1,056,781 1,139,876 Other revenue 63,305 63,305 66,943 70,610 Gov ernment - operating 1 173,256 (1,965) 4,051 2, , , ,615 Gov ernment - capital 1 159,589 63,543 63, ,132 90, ,553 Interest 44,407 44,407 43,905 42,401 Div idends Payments Suppliers and employ ees (1,603,777) 24,705 24,705 (1,579,072) (1,711,531) (1,812,102) Finance charges (26,812) (26,812) (25,799) (24,665) Transfers and Grants 1 (9,470) (20) (20) (9,490) (9,530) (9,587) NET CASH FROM/(USED) OPERATING ACTIVITIES 246,139 61,578 28,736 90, , , ,811 CASH FLOWS FROM INVESTING ACTIVITIES Receipts Proceeds on disposal of PPE Decrease (Increase) in non-current debtors Decrease (increase) other non-current receiv ables Decrease (increase) in non-current inv estments Payments Capital assets (232,066) (63,543) (18,333) (81,875) (313,941) (181,941) (180,553) NET CASH FROM/(USED) INVESTING ACTIVITIES (232,066) (63,543) (18,333) (81,875) (313,941) (181,941) (180,553) CASH FLOWS FROM FINANCING ACTIVITIES Receipts Short term loans Borrowing long term/refinancing Increase (decrease) in consumer deposits 2,853 2,853 3,110 3,013 Payments Repay ment of borrow ing (8,238) (8,238) (9,251) (9,397) NET CASH FROM/(USED) FINANCING ACTIVITIES (5,385) (5,385) (6,141) (6,384) NET INCREASE/ (DECREASE) IN CASH HELD 8,689 (1,965) 10,404 8,439 17,128 19, ,874 Cash/cash equiv alents at the y ear begin: 2 235,000 (8,439) (8,439) 226, , ,858 Cash/cash equiv alents at the y ear end: 2 243,689 (1,965) 1, , , ,732 It is anticipated that the net cash flow from operating activities will be favourable. It is expected that 100% of the capital budget will be spent at year end but we provided for the full adjustment to include the total capex for the period. All conditional grants both capital and operational are fully provided for. No amendments have been made to the Repayment of borrowing. The year-end cash and cash equivalents is estimated at R

28 PART 2 - SUPPORITNG DOCUMENTATION 28

29 5. Adjustment budget assumptions The adjustment budget assumptions are based on the original assumptions made during the preparation of the 2017/18 MTREF with slight adjustments based on the mid-year results. The following are the key assumptions made in adjusting revenue framework; 1. The downward adjustment on Service charges for both Electricity and Water. 2. That approved development plans shall also remain at the development phase for the current financial year, with no real impact on the revenue base of the municipality Therefore, the full year forecast on revenue sources has been based on actual billings as at 31 December 2017, after taking into account the seasonal fluctuations of summer and winter demand. With regards to the expenditure framework, adjustments were made to Other materials, Contracted services, Grants and subsidies paid as well as Other expenditure. The major costs drivers at vote and trading service level had been reviewed, and no major changes were identified that informed the adjustment budget. 6. Adjustments to budget funding Operational expenditure is mainly funded from service charges as well as other revenue sources. Unconditional grants contribute between 10%-12% to the operating revenue of the municipality. Unconditional grants are allocated to fund social package granted to indigent households, and no changes had been proposed in the quantum of free basic services provided. Internally generated funds are based on actual cash and cash equivalents from prior years with rolled over funds still available, and these are used to fund the capital expenditure budget. Only conditional grants gazetted by the province or national are considered in the adjustment budget. Unspent conditional grants at year end are applied to be rolled-over into the new financial year. Once the approval is obtained, such grants form part of funding available for capital expenditure budget. Indicated in the table and pie chart below is the summary of the revenue and financing activities of the municipality for operational and capital expenditure Sol Plaatje Local Municipality Adjustment 2017/18 29

30 Summary of Revenues and Financing Activities ed Standard Item Original Adjustments Adjustment R 000 R 000 R 000 Service Charges 1,078,943 (48,900) 1,030,043 Other Own Revenue 692,529 (7,800) 684,729 Transfer recognised - Operational 173,256 2, ,342 Total Operational 1,944,729 (54,614) 1,890,115 Transfer recognised - Capital 159,589 63, ,132 Borrowing Internally generated funds 72,476 18,333 90,809 Total Capital 232,066 81, ,941 Total Revenue and Financing 2,176,794 27,262 2,204,056 Sol Plaatje Local Municipality Adjustment 2017/18 30

31 7. Adjustments to expenditure allocations and grant programme NC091 Sol Plaatje - Supporting Table SB8 Adjustments - expenditure on transfers and grant programme - 28/02/2018 Year 2017/18 Description Ref Original Prior Multi-year Nat. or Prov. Other Total capital Govt Adjusts. Adjusts R thousands A A1 B C D E F EXPENDITURE ON TRANSFERS AND GRANT PROGRAM: 1 Year /19 Year /20 Operating expenditure of Transfers and Grants National Government: (1 365) (1 365) Local Gov ernment Equitable Share Finance Management Municipal Systems Improvement (1 365) (1 365) EPWP Incentive Infrastructure Skills Development Provincial Government: Health subsidy COGHSTA DWA Library (600) (600) Department of Economic Dev elopment & Tourism (NDA) District Municipality: Frances Baard District Municipality Other grant providers: MIG ops Other grant providers: Total operating expenditure of Transfers and Grants: (740) Capital expenditure of Transfers and Grants National Government: Municipal Infrastructure Grant (MIG) (15 000) (15 000) Neighbourhood Dev elopment Partnership EDSM INEP (5 000) (5 000) Department of Water Affairs INEP (Eskom) Provincial Government: Department of Water Affairs DHLG (GURP) DSAC District Municipality: Frances Baard District Municipality Other grant providers: Swimming South Africa Other grant providers: Total capital expenditure of Transfers and Grants Total capital expenditure of Transfers and Grants Operational grants increased by R Funds were withdrawn from Department of Sports, Arts and Culture for the libraries amounting to R An amount of R2, was allocated from Frances Baard District Municipality for maintenance. Sewerage and Roads maintenance received R1,200 and R1, respectively, after the internal consideration as to how the funds will be allocated per service. MSIG was adjusted downwards by R , due to non-expenditure. The unconditional grants, increased by R , resulting in a total adjustment of R as per the capital expenditure budget funding. Sol Plaatje Local Municipality Adjustment 2017/18 31

32 As indicated in the table above, the adjustment of capital expenditure budget focused on critical service delivery projects, especially projects that commenced already during the previous year and had been rolled over into the new financial year. Project status reports were also considered to estimate the cost of work that can be completed during the remaining months of the financial year, after taking into account any procurement processes that needed to be followed. The municipality was allocated an amount of R grant from the Provincial Department of Sports, Arts and Culture for the Nelson Mandela Memorial Project which is rolled over from 2016/2017. An amount of R2, was availed for the upgrading of the lifts at the new building which was rolled over from 2016/2017. The budget of the Homevale Satellite Fire station was adjusted downwards by R2, from R9, to a final allocation of R6, The upgrade of Florianville swimming pools budget has been adjusted by R2, and the budget is now R5, The Roads Resealing project was adjusted from R8, to nil as a result of the reduction of the R15, MIG funding. An amount of R2, was allocated to paving of streets. NDPG grant funding on the Roads Stormwater project in Galeshewe have received an additional R70, was adjusted from R27, to R97, The following projects were also allocated funding through own funding: Upgrade of Test Station R , Landfill site R2, , Refurbishment of Gogga Pump Station R , Replacement of Pumps at Newton Waterworks R11, ,and Water Zone Metering R8, Sol Plaatje University will co-fund the Newton Waterworks project by R4, The Riverton Highlift Pump budget was adjusted to R6, and the Pump Station budget was adjusted from R22, to R31, which reflected an adjustment of R9, funded through cash backed reserve. Roodepan Ivory Park electrification project budget was increased from R5, to R17, Project funded through INEP. The Carter s Glen / Galeshewe Substation was adjusted downwards from R24, to R7, reflecting an adjustment of R17, Sol Plaatje Local Municipality Adjustment 2017/18 32

33 NC091 Sol Plaatje - Supporting Table SB19 List of capital programmes and projects affected by Adjustments - 28/02/2018 Municipal Vote/Capital project Program/Project description IDP Goal Project Code number Individually Approved Yes/No Asset Class Asset Sub-Class GPS co-ordinates Medium Term Revenue and Expenditure Framework Year 2017/18 Year /19 Year /20 R thousand Original Original Original Parent municipality: List all capital programs/projects grouped by Municipal Vote Municipal and General Refurbish lifts at new building No Other Buildings Various 2,000 Loose Equipment Loose Equipment G No Computer Equipment Computer Software and Applications Various 3,000 3,000 3,000 3,000 Community Upgrade of Florianv ille sw imming pool D No Sport and Recreation Facilities Outdoor Facilities , ,886 5,184 Community Upgrade of ex isting Test Station Community Buildings 750 Community Upgrade of Galeshew e Stadium D No Sport and Recreation Facilities Outdoor Facilities , ,000 1,337 Community Upgrade Ablution at De Beers Stadium D No Sport and Recreation Facilities Public Ablution Facilities , ,000 2,742 Community Refurbish Landfill Site No Community Waste Management 2,617 Information Technology Replacement of Hardw are G No Computer Equipment Computer Software and Applications Various 2,000 4,593 27,000 7,000 Information Technology Software Acquisitions No Computer Equipment Computer Software and Applications Various 2,300 NDPG Neighbourhood Dev elopment Partnership Grant (Te A No Capital Spares Capital Spares Various 800 1,200 1,200 NDPG Taxi Lay By 's Galashewe A No Roads Roads -29,44, ,000 NDPG Stormw ater Upgrade Galeshewe A No Roads Roads -29,48, ,500 97,537 20,000 20,000 GURP projects Installation of Serv ices A No Capital Spares Capital Spares Various 2,000 2,000 5,000 3,000 Fire, Security Homevale Satelite Fire Station D No Community Facilities Fire/Ambulance Stations , ,809 6,762 Integrated National Electricity Program Electrification of Iv ory Park J Yes Electrical Infrastructure Capital Spares Various 7,000 19,000 7,989 70,354 Electricity Replacement of Prepaid Meters J Yes Electrical Infrastructure Capital Spares Various 3,000 2,000 3,000 3,000 Electricity Transformer Carters Glen/Galashewe substation J Yes Electrical Infrastructure HV Substations -29,48, ,000 7,000 Electricity Transformer Riverton substation J Yes Electrical Infrastructure HV Substations Various 8,000 4,000 3,000 Electricity Herlear 66kWa J No Electrical Infrastructure HV Substations Various 25,000 Electricity Herlear 11kWa J No Electrical Infrastructure HV Substations Various 7,000 10,000 Infrastructure - Other -Transport Fleet Replacement Program F Yes Transport Assets Unspecified Various 6,000 6,000 4,000 4,000 Water Ritchie Bulk Supply H Yes Water Supply Infrastructure Bulk Mains , ,000 20,000 14,890 Water Lerato Park Water H Yes Water Supply Infrastructure Distribution , ,824 8,402 1,680 Water Replacement of Water Meters H Yes Water Supply Infrastructure Distribution Various 3,000 2,000 3,000 3,000 Water Riv erton High Lift Pumps H Yes Water Supply Infrastructure Pump Stations ,2470 6,096 Water Riverton Pump Station H No Water Supply Infrastructure Pump Stations Various 22,000 31,657 Water Thlageng Dam H No Water Supply Infrastructure Dams and Weirs -29,52, ,000 10,000 Water Alternative water resources H No Water Supply Infrastructure Dams and Weirs Various 5,000 Water Replacement of pipes at New ton Reserv oir No Water Supply Infrastructure Dams and Reservoirs Various 11,200 Water Water Zone Metering No Water Supply Infrastructure Reticulation 8,500 Sanitation Upgrade of Lerato Park Sew er Line H Yes Sanitation Infrastructure Reticulation , ,821 6,558 1,391 Sanitation Civ il Works Gogga Pump station H Yes Sanitation Infrastructure Pump Station -29,48, ,000 25,000 Sanitation Refurbish of Gogga Pump Station No Sanitation Infrastructure Pump Station -29,48, ,500 Roads and Stormw ater Resealing of Roads E Yes Roads Infrastructure Roads Various 13,397 36,791 55,999 Roads and Stormw ater Pav ing of Roads No Roads Infrastructure Roads Various 2,667 Roads and Stormw ater Roads and Stormw ater Projek 1 (Roodepan) E Yes Roads Infrastructure Road Structures Various 4,817 4,378 Roads and Stormw ater Roads and Stormw ater Projek 2 (Galeshewe) E Yes Roads Infrastructure Road Structures Various 5,212 7,006 Heritage Assets Mandela Memorial Statue A Yes Heritage assets Other Heritage -29,48, ,000 8,154 Heritage Assets Monuments A No Heritage assets Other Heritage Various 2,000 TOTAL 232, , , ,553 Sol Plaatje Local Municipality Adjustment 2017/18 33

34 8. Adjustments to allocations and grants made by the municipality NC091 Sol Plaatje - Supporting Table SB10 Adjustments - transfers and grants made by the municipality - 28/02/2018 Year 2017/18 Year Year / /20 Description Ref Original Prior Accum. Funds Multi-year capital Unfore. Unavoid. Nat. or Prov. Govt Other Adjusts. Total Adjusts R thousands A A1 B C D E F G H Cash transfers to other Organisations SPCA 4 1,600 1,600 1,600 1,600 Donation Keep Kimberley Clean Sol Plaatje Educational trust Gariep Festival 1,600 1,600 1,600 1,600 Diamond and Dorings Festival 2,900 2,900 2,900 2,900 Wildeklawer Tournament (Mayoral Gala) GOSHA 1,000 1,000 1,000 1,000 Grant in aid individuals 1,070 (400) (400) 670 1,130 1,188 Grant Griqua Diamonds (Cricket) Meals on wheels Other , TOTAL CASH TRANSFERS TO OTHER ORGANISATIONS: 9, ,490 9,530 9,587 Indicated in the table above is the adjustment to grants paid by the municipality. The adjustment amounts to R with the full year allocation totalling R The municipality allocates grants and subsidies to various organisations and events. Other grants and subsidies refer to various adhoc grants paid through the financial year as and when proposals are received by the LED Committee and considered to be mutually beneficial. Sol Plaatje Local Municipality Adjustment 2017/18 34

35 9. Adjustments to Councillor allowances and Employee benefits 9.1 Adjustments to Councillor Benefits No Adjustments were deemed necessary in respect of Councillor s Remuneration. 9.2 ADJUSTMENTS TO EMPLOYEE ALLOWANCES No Adjustments were deemed necessary in respect of Employee Related Costs. 10. Adjustments to Service Delivery and Implementation The audit of reporting on predetermined objectives takes place on an annual basis as part of the regulatory audit process. The criteria against which the reporting is measured are as follows: Usefulness of information Reliability of information In addition to the above criteria, the compliance with relevant laws and regulations pertaining to the reporting on predetermined objectives is also audited and reported on in the final management report issued by the Office of the Auditor General. For the past two financial years the municipality has managed to obtain an unqualified audit opinion in this area. It should be noted that the audit for 2016/17 covered both the basic Service Delivery as well as the Local Economic Development KPA s. Specific reviews were also performed on the compliance of the new IDP ( ) with all relevant requirements. No findings were raised in this regard. A concerning factor, however, is that material adjustments were required to both of the selected KPA s reporting in order to achieve the unqualified opinion. The municipality must make every effort to ensure that the submitted Annual Performance Report contains information that is accurate and complete, and that requires no audit-related changes. To maintain the unqualified opinion and to achieve the above-mentioned goal, the municipality continuously reviews the key performance indicators for measurability, relevance and timeliness. For this purpose, a performance review committee has been established. The committee sits on a regular basis to discuss issues relating to the reporting on targets and also to discuss and inspect supporting documentation. It is during this process that certain adjustments were identified. The alignment between the capital budget of the municipality and the service delivery and budget implementation reporting is of the utmost importance. In order to achieve better alignment between the mentioned documents, Sol Plaatje Local Municipality Adjustment 2017/18 35

36 a number of additional key performance indicators were added as part of the midterm adjustments. The SDBIP is also directly affected by the adjustments made in the budget, in as far as outputs and outcomes are concerned. It is for this reason that the SDBIP is submitted. A detailed SDBIP is submitted as Annexure B of this report ADJUSTMENT OF PRE-DETERMINED OBJECTIVES The Top-Layer SDBIP has been reviewed to ensure that the pre-determined objectives indicated as key performance indicators are specific, measureable, achievable, realistic and time-bound. Efforts have also been made to define the KPI itself to avoid ambiguities during the assessment period, the unit of measurement as well as the frequency of measurement. The adjustments made to the key performance indicators for the 2017/18 financial year are listed below per key performance area. Sol Plaatje Local Municipality Adjustment 2017/18 36

37 Sol Plaatje Municipality PROPOSED DRAFT TL SDBIP ADJUSTMENTS 2017/18 Basic and Sustainable Service Delivery and Infrastructure Development Ref Strategic Objective KPI KPI Updated (Adjustment) Reason for Adjustment Unit of Measurement KPI Owner Baseline Source of Evidence Annual Target Revised Target Actual Target Quarter 3 Quarter 4 Revised Target Actual Target Revised Target TL7 TL11 To address the poor condition of the roads in the Sol Plaatje area through maintenance and upgrading projects To address the poor condition of the roads in the Sol Plaatje area through maintenance and upgrading projects To reseal at least 10 km of tarred roads by 30 June 2018 To complete the Integrated Transport Plan by 30 June 2018 TO BE REMOVED TO BE REMOVED FUNDING HAS BEEN REPRIORITIZED FOR OTHER CRUCIAL PROJECTS ROADS AND STORM WATER MASTER PLAN MUST FIRST BE COMPLETED BEFORE THE TRANSPORT PLAN CAN BE COMPLETED Distance of km resealed % Completion as per project progress reports City Engineer: Roads and Storm water City Engineer: Roads and Storm water New Project reports and actual measurement on the ground Project progress reports km 2.5 km 2.5 km 2.5 km 100% 100% 75% 75% 100% 100% To address the poor condition of the roads in the Sol Plaatje area through maintenance and upgrading projects To commence with the expansion of Dalham Road (procurement phase complete) by 30 June 2018 TO BE REMOVED FUNDING HAS BEEN REPRIORITIZED FOR OTHER CRUCIAL PROJECTS % Completion of the process as per tender document, appointment letter and minutes City Engineer: Roads and Storm water New Tender document, appointment letter and minutes 100% 100% 75% 75% 100% 100% TL15 To ensure the adequate provision, upgrading and maintenance of electricity services infrastructure To upgrade the Carters Glen substation with 1 x 20 MVA transformers by 30 June 2018 To complete the procurement process for the upgrading of Carters Glen substation with 1 x 20 MVA transformers by 30 June 2018 WORDING CHANGED % Completion of the process as per tender document, appointment letter and minutes City Engineer: Electricity New Tender document, appointment letter and minutes 100% 100% 75% 75% 100% 100% Sol Plaatje Local Municipality Adjustment 2017/18 37

38 TL18 TL19 TL20 To ensure the adequate provision, upgrading and maintenance of electricity services infrastructure To ensure the adequate provision, upgrading and maintenance of electricity services infrastructure To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure To replace the 66KV oil circuit breakers at the Herlear substation with SF6 by 30 June 2018 To complete 45% of the upgrading of Riverton substation equipment with 2 x 10 MVA transformers by 30 June 2018 To complete at least 50% of the construction of the new Riverton Pump Station building by 30 June 2018 To complete the procurement process for the replacement of the 66KV oil circuit breakers at the Herlear substation with SF6 by 30 June 2018 To complete the procurement process for the upgrading of Riverton substation equipment with 2 x 10 MVA transformers by 30 June 2018 To complete the construction of the new Riverton Pump Station building by 30 June 2018 WORDING CHANGED WORDING CHANGED WORDING CHANGED % Completion of the process as per tender document, appointment letter and minutes % Completion of the process as per tender document, appointment letter and minutes % Completion as per project progress reports City Engineer: Electricity City Engineer: Electricity City Engineer: Water and Sanitation New New Tender document, appointment letter and minutes Tender document, appointment letter and minutes Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 75% 100% 100% 45% 100% 33% 75% 45% 100% 50% 100% 45% 75% 50% 100% TL22 To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure To complete the water connections for the Lerato Park development by 30 June 2018 To complete 40% of the project to install bulk water connections for the Lerato Park development by 30 June 2018 WORDING CHANGED % Completion as per project progress reports City Engineer: Water and Sanitation New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 20% 40% 40% TL23 To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure To complete the sewer connections for the Lerato Park development by 30 June 2018 To complete 40% of the project to install bulk sewer connections for the Lerato Park development by 30 June 2018 WORDING CHANGED % Completion as per project progress reports City Engineer: Water and Sanitation New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 20% 40% 40% Sol Plaatje Local Municipality Adjustment 2017/18 38

39 TL24 To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure To progress at least 40% with the implementation of the Ritchie Bulk Water Implementation project To complete Phase 2 of the Rithie Bulk Water Implementation Project by 30 June 2018 WORDING CHANGED % Completion as per project progress reports City Engineer: Water and Sanitation New Project progress reports, minutes of site meetings, physical site visits 40% 100% 30% 75% 40% 100% TL25 To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure To complete phase 2 of the security project To complete phase 2 of the security project by 30 June 2018 TIME FRAME ADDED % Completion as per project progress reports Compliance Man : Water and Sanitation Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 75% 100% 100% NEW To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure NEW To complete the manufacturing of all 4 high lift pumps for the Riverton Waste Water Treatment Plant by 30 June 2018 NEW % Completion as per project progress reports City Engineer: Water and Sanitation New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 75% 100% 100% NEW TL29 To ensure the adequate provision, upgrading and maintenance of water and sanitation services infrastructure To ensure a basic standard of living for all through the provision of basic sanitation, water, electricity and refuse delivery services NEW To complete the electrification of Ivory Park by 30 June 2018 To complete the waterpipe replacement projects at the following areas: Newton, Community, Adam Namakola, Nobengula, Bultfontein Road and Gogga Pump Station by 30 June 2018 To provide 1175 households in Ivory Park with electrical connections by 30 June 2018 NEW WORDING CHANGED % Completion as per project progress reports No of houses connected to electricity network City Engineer: Water and Sanitation City Engineer: Electricity New Project progress reports, minutes of site meetings, physical site visits Approved layout plans, signed off completion certificates of the various engineers/project managers (COC), annexure detailing erven connected 100% 100% 75% 75% 100% 100% 100% % % 588 Sol Plaatje Local Municipality Adjustment 2017/18 39

40 TL73 TL80 NEW TL81 To ensure a basic standard of living for all through the provision of basic sanitation, water, electricity and refuse delivery services Develop suitable located and affordable housing (shelter) and decent human settlements Develop suitable located and affordable housing (shelter) and decent human settlements To improve the public transport system and services To ensure that 60 erven in the informal settlements Moghul Park, Phomolong and Homestead are resold by 30 June 2018 To identify suitable land for the upgrade of at least 3 informal settlements in order to ensure security of land tenure for community To complete the taxi lay-by project in Galeshewe by 30 June 2018 To ensure that the installation of water and sanitation services in Phomolong are completed by 30 June 2018 TO BE REMOVED To ensure that 200 erven in the informal settlements Witdam and Ramorwa are planned and surveyed by 30 June 2018 To complete the procurement process for the taxi lay-by project in Galeshewe by 30 June 2018 WORDING, KPA AND STRATEGIC OBJECTIVE CHANGED REFER TO NEW INDICATOR NEW WORDING CHANGED % project progress as per project reports Evidence/study indicating suitable land identified Erven planned, surveyed on approved SG diagramme % Completion of the process as per tender document, appointment letter and minutes Manager: Urban Planning Manager: Urban Planning Manager: Urban Planning GURP Manager New New New New Project progress reports, minutes of site meetings, physical site visits Evidence/study indicating suitable land identified Layout Plans completed and approved General Plans Tender document, appointment letter and minutes % 5 75% 5 100% % 100% 75% 75% 100% 100% TL82 To ensure sustainable delivery of community services (personal including environmental health, library, emergency and traffic services) to all residents of SPM Complete the first phase of the construction of the Homevale Fire Station by 30 June 2018 To complete at least 40% of the first phase of the construction of the Homevale Fire Station by 30 June 2018 WORDING CHANGED % Completion as per project progress reports Chief Emergency Services New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 30% 100% 40% Sol Plaatje Local Municipality Adjustment 2017/18 40

41 TL83 To ensure sustainable delivery of community services (personal including environmental health, library, emergency and traffic services) to all residents of SPM Respond to 85% of emergency callouts within time limits as prescribed in table 1 and table 2 of SANS Respond to 85% of emergency callouts within time limits as prescribed in table 1 and table 2 of SANS by 30 June 2018 TIME FRAME ADDED % call-outs that were responded to within the time limits Chief Emergency Services Evidence of response times, reports, etc. 85% 85% 60% 60% 85% 85% TL84 To ensure sustainable delivery of community services (personal including environmental health, library, emergency and traffic services) to all residents of SPM Ensure 70% compliance with the National Disaster Management Tool by Ensure 70% compliance with the National Disaster Management Tool by 30 June 2018 TIME FRAME ADDED % compliance with the National Disaster Management Tool Chief Emergency Services Evidence of compliance 70% 70% 60% 60% 70% 70% TL87 To build equitable, cohesive, sustainable and caring communities with improved access to work and social amenities, including sports and recreational facilities (community development and optimal access/inclusion) To complete the upgrading of the ablution facilities at the De Beers Stadium by 30 June 2018 To complete the upgrading of various facilities at the De Beers Stadium by 30 June 2018 WORDING CHANGED % Completion as per project progress reports Chief: Parks and Recreation New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 75% 100% 100% Sol Plaatje Local Municipality Adjustment 2017/18 41

42 TL88 To build equitable, cohesive, sustainable and caring communities with improved access to work and social amenities, including sports and recreational facilities (community development and optimal access/inclusion) To complete the upgrade of the Galeshewe Sport Stadium by 30 June 2018 To complete Phase 1 of the upgrade of the Galeshewe Sport Stadium by 30 June 2018 WORDING CHANGED % Completion as per project progress reports Chief: Parks and Recreation New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 75% 100% 100% TL89 To address the poor condition of the roads in the Sol Plaatje area through maintenance and upgrading projects To complete the upgrading of storm water channels in Galeshewe by 30 June 2018 To complete phase 1 for the upgrading of storm water channels in Galeshewe by 30 June 2018 WORDING CHANGED % Completion as per project progress report GURP Manager New Project reports and actual measurement on the ground 100% 0% 75% 75% 100% 100% NEW To address the poor condition of the roads in the Sol Plaatje area through maintenance and upgrading projects To progress at least 40% with the construction in terms of Priority 1 for the upgrading of storm water channels in Galeshewe by 30 June 2018 NEW % Completion as per project progress reports GURP Manager New Project reports and actual measurement on the ground 40% 40% 20% 20% 40% 40% Good Governance and Public Participation Ref Strategic Objective KPI KPI Updated (Adjustment) Reason for Adjustment Unit of Measurement KPI Owner Baseline Source of Evidence Annual Target Revised Target Actual Target Quarter 3 Quarter 4 Revised Target Actual Target Revised Target Promote community participation and communication To communicate to the informal residential areas by issuing quarterly news letters TO BE REMOVED All communications to informal settelements to be handled directly by the Political Office Number of newsletters issued Number of newsletters issued 4 Number of news letters issued Local Economic Development Sol Plaatje Local Municipality Adjustment 2017/18 42

43 Ref Strategic Objective KPI KPI Updated (Adjustment) Reason for Adjustment Unit of Measurement KPI Owner Baseline Source of Evidence Annual Target Revised Target Actual Target Quarter 3 Quarter 4 Revised Target Actual Target Revised Target TL1 To develop sustainable living through job creation (EPWP and other initiatives) Create 300 FTE jobs through EPWP initiatives of the SPM by 30 June 2018 CHANGE OF STRATEGIC OBJECTIVE No of FTE jobs created PMU Manager FTE Register and reports of jobs created through EPWP TL36 To capacitate SMME's and local entrepreneurs Ensure that at least 60% of the municipality's own procurement for goods and services are sourced from Local Black SMME's (category D2 suppliers TO BE REMOVED REFER TO NEW INDICATOR Average % of the Municipality's own procurement for goods and services sourced from local black SMME's Manager : SCM Average % of the municipality's own procurement for goods and services sourced from local black SMME's 60% 60% 60% 60% 60% 60% NEW To capacitate SMME's and local entrepreneurs To successfully implement the PPPFA Regulations to achieve BBBEE and radical economic transformation through local procurement by ensuring at least 60% of the municipality s tenders are awarded to EME's, OSE's and from the businesses in the rural areas within the municipal jurisdiction by 30 June 2018 NEW Percentage of tenders and value thereof awarded to EME, OSE, local and from business in the rural areas within the municipal jurisdiction Manager : SCM New Percentage of tenders and value thereof awarded to EME, OSE, local and from business in the rural areas within the municipal jurisdiction 60% 60% 60% 60% 60% 60% Sol Plaatje Local Municipality Adjustment 2017/18 43

44 NEW TL68 TL69 TL70 To capacitate SMME's and local entrepreneurs To ensure effective spatial planning and development in order to establish a competitive economic position To ensure effective spatial planning and development in order to establish a competitive economic position To ensure effective spatial planning and development in order to establish a competitive economic position Ensure a turnaround time for building plan approval of 10 weeks by 30 June 2018 for buildings or architectural buildings greater than 500m² in accordance with NBRBSA - 103/1977 Ensure a turnaround time for building plan approval of 6 weeks by 30 June 2018 for buildings or architectural buildings less than 500m² in accordance with NBRBSA - 103/1977 To reduce the backlogs (plans received before 1 July 2017) for building plan approvals by 50% by 30 June 2018 To implement Standards for Infrastructure Procurement and Demand Management by ensuring compliance with predetermined timeframes by 30 June 2018 Ensure a response time of 10 weeks for building plan submissions received in the current financial year for buildings or architectural buildings greater than 500m² Ensure a response time 6 of weeks for building plan submissions received in the current financial year for buildings or architectural buildings less than 500m² annually To process at least 100 building plans that were received before 1 July 2017 by the end of the current financial year (30 June 2018) NEW WORDING CHANGED WORDING CHANGED WORDING CHANGED Compliance with the predetermined timeframes Average response time in weeks to approve building plans Average response time in weeks to approve building plans % of building plans approved Manager: SCM Manager: Urban Planning Manager: Urban Planning Manager: Urban Planning New Records and reports to this effect Register indicating the steps for approval and dates when each step was signed off - from submission of plan to final approval Register indicating the steps for approval and dates when each step was signed off - from submission of plan to final approval Register indicating the number of building plans approved which were received before 1 July 2017, numbers and dates when plans were addressed 100% 100% 75% 75% 100% 100% 10 WEEKS 6 WEEKS 10 WEEKS 6 WEEKS 10 WEEKS 6 WEEKS 10 WEEKS 6 WEEKS 10 WEEKS 6 WEEKS 10 WEEKS 6 WEEKS 50% 100% 40% 75% 50% 100% Sol Plaatje Local Municipality Adjustment 2017/18 44

45 TL71 TL72 To ensure effective spatial planning and development in order to establish a competitive economic position To ensure effective spatial planning and development in order to establish a competitive economic position Improving the turnaround time for development applications (rezoning) from receipt of all sectional comments, submission to Development and Planning Committee and Council to 10 weeks by 30 June 2018 To approve all land use applications received until 30 April of the current financial year through MPT (Municipal Planning Tribunal) by 30 June 2017 Ensure that all development applications received for rezoning in terms of the NCPDA have been processed by 30 June 2018 To process all category 1 land use applications received until 30 April of the current financial year through MPT (Municipal Planning Tribunal) by 30 June 2018 in terms of the SPLUM bylaw (2015) WORDING CHANGED WORDING CHANGED % of development applications approved % of land use applications approved Manager: Urban Planning Manager: Urban Planning Register indicating the steps for approval and dates when each step was signed off - from submission of application to final approval Minutes of meetings of approved land use applications 10 WEEKS 100% 10 WEEKS 75% 10 WEEKS 100% 100% 100% 75% 75% 100% 100% TL74 To ensure effective spatial planning and development in order to establish a competitive economic position To implement the technical assistance project identified through the NDPG grant by 30 June 2018 TO BE REMOVED FUNDING HAS BEEN REPRIORITIZED % project progress as per project reports GURP Manager New Project progress reports, minutes of site meetings, physical site visits 100% 100% 100% 100% 100% 100% TL76 TL79 Marketing the municipality as premier destination for tourism and investment To position the market as a productive and profitable section of the municipality To complete the 1st phase of the project to construct the Nelson Mandela Monument in Galeshewe by 30 June 2018 Complete a feasibility study in relation to profitability of the fresh produce market of the TO BE REMOVED Complete a business plan in relation to profitability of the fresh produce market of the FUNDING HAS BEEN REPRIORITIZED WORDING AND STRATEGIC OBJECTIVE CHANGED % project progress as per project reports Business plan ED: Financial Services Market Manager New Project progress reports, minutes of site meetings, physical site visits 100% 100% 75% 75% 100% 100% New Business Plan Sol Plaatje Local Municipality Adjustment 2017/18 45

46 municipality by 30 June 2018 municipality by 30 June 2018 Municipal Financial Viability and Management Ref Strategic Objective KPI KPI Updated (Adjustment) Reason for Adjustment Unit of Measurement KPI Owner Baseline Source of Evidence Annual Target Revised Target Actual Target Quarter 3 Quarter 4 Revised Target Actual Target Revised Target TL46 Promote sound financial management and financial sustainability of Sol Plaatje Municipality through prudent fiscal management Maintain the cost coverage ratio of at least 3 months annually ADJUST TARGET OVERSIGHT Cost coverage ratio (available cash + investments/monthly fixed operating expenditure) ED: Financial Services Financial and audit reports Municipal Institutional Development and Transformation Ref Strategic Objective KPI KPI Updated (Adjustment) Reason for Adjustment Unit of Measurement KPI Owner Baseline Source of Evidence Annual Target Revised Target Actual Target Quarter 3 Quarter 4 Revised Target Actual Target Revised Target TL5 To provide a basis for sustainable municipal performance improvement Submit quarterly organisational performance reports to the Executive Mayor by the 20th of the month following the end of each Quarter for 2016/17 Submit quarterly organisational performance reports to the Executive Mayor by the 20th of the month following the end of each Quarter for 2017/18 TIME FRAME AMENDED Number of reports submitted IDP Manager 4 Actual report submitted and signed off by EM NEW To ensure continuous maintenance and replacement of furniture, office and computer equipment and create a secure environment within the municipality To conduct at least 4 IT Steering Committee meetings by 30 June 2018 NEW Number of meetings held and attendance registers Manager : IT New Minutes of meeting Sol Plaatje Local Municipality Adjustment 2017/18 46

47 NEW NEW TL51 TL52 To ensure continuous maintenance and replacement of furniture, office and computer equipment and create a secure environment within the municipality To ensure continuous maintenance and replacement of furniture, office and computer equipment and create a secure environment within the municipality To provide a basis for sustainable municipal performance improvement To provide a basis for sustainable municipal performance improvement Co-ordinate biannual performance assessments of the municipal manager and managers reporting directly to the municipal manager by 30 June 2017 Fill at least 2% of the vacancies in the technical and service delivery departments by 30 June 2018 To review and finalise the IT Governance Framework and related policies (Business Continuity Plan) by 30 June 2018 To review municipal documents (letterheads) designs and ensure that they reflect the new vision of the municipality by 30 June 2018 Co-ordinate biannual performance assessments of the municipal manager and managers reporting directly to the municipal manager by 30 June 2018 On a quarterly basis communicate the funded vacant positions in each directorate to the relevant Executive Director NEW NEW TIME FRAME AMENDED WORDING CHANGED - SMARTER Evidence of reviewed framework All municipal documents Number of assessments conducted Number of communications provided Manager: IT Manager: IT Manager: Human Resources Manager: Human Resources New New 2 New Minutes of meetings and reviewed document Each department to present their stationery/ documents Assessment reports Letters and s sent by the HR Manager % 100% 75% 75% 100% 100% % TL54 To enable effective training and skills development through various initiatives and partnering with the private sector Perform a corporate climate survey and obtain a rating by 30 June 2018 TO BE REMOVED Survey will be performed in future Completed survey results report ED: Corporate Services New Completed survey results report Sol Plaatje Local Municipality Adjustment 2017/18 47

48 11. Adjustments to Capital expenditure Adjustments to the capital budget have been as a result of rolled over funds, new and additional funding that became available since the approval of the MTREF. Detailed capital expenditure is presented in terms of Table SB19 of Annexure A. The total upwards adjustments on capex amounted to R as a result of roll-over projects, new project and increases or decreases in currently approved projects which bring the total projected capex budget to R As indicated in the chart below capex expenditure is fully funded as per S18 of the MFMA by capital grants R (71%) and internally generated funds R (29%). Please refer to paragraph 4.3 for further detail. 12. Conclusion The municipality has received significant favour from National Treasury under NDPG to address the storm water challenges experienced in various areas in Galeshewe and other areas within the city. This is welcome. This further demonstrates that project readiness has a potential to attract funding. The implementation of the Policy of Procurement of Infrastructure and Delivery Management effective from 1 July 2018 will enforce project readiness before the approval of the budget. The municipality continues on the right path in the implementation of mscoa. The Executive Mayor on behalf of Council and the Municipal Manager are the project sponsors are responsible for resource allocation and oversight in the successful implementation and compliance in this area. Sol Plaatje Local Municipality Adjustment 2017/18 48

49 The honours is on the Executive Mayor and the Municipal Manager to ensure that this budget is implemented and delivers the expected outcomes as per the adjusted SDBIP attached as annexure B of this report. None 13. Other Supporting Documentation Sol Plaatje Local Municipality Adjustment 2017/18 49

50

51 ANNEXURE A: B-SCHEDULES

52 NC091 Sol Plaatje mscoa Version 6.1 Click for Instructions! Contact details: Technical enquiries to the MFMA Helpline at: Data submission enquiries: Elsabé Rossouw National Treasury Tel: (012) Electronic documents: Queries on formats:

53 2020 Preparation Instructions Municipality Name: CFO Name: Tel: ZL Mahloko Fax: Date of Adjustments 28/02/2018 MTREF: Year: Does this municipality have Entities? If YES: Identify type of report: Name Votes & Sub-Votes Printing Instructions Important documents which provide essential assistance Showing / Hiding Columns Show Reference columns on all sheets MFMA Circulars MBRR Formats Guide Click to view Click to view Show Pre-audit columns on all sheets Showing / Clearing Highlights Show Highlights on all sheets Dummy Guide Funding Compliance Guide MFMA Return Forms Click to view Click to view Click to view