Vision Statement “A MUNICIPALITY THAT PROVIDES SUSTAINABLE
SERVICE DELIVERY, SOCIOECONOMIC
DEVELOPMENT AND BETTER LIFE FOR ALL.”
Mission Statement “TO BE A PROFESSIONAL, EFFECTIVE, AN EFFICIENT AND
RESULT ORIENTATED MUNICIPALITY THAT, THROUGH
INTEGRATED EFFORT, CONTINUALLY PROMOTES THE SOCIAL
WELFARE AND ECONOMIC PROSPERITY OF ALL ITS RESIDENTS,
INVESTORS AND TOURISTS”.
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TABLE OF CONTENTS CHAPTER 1 – EXECUTIVE SUMMARY 4
1.1 Mayor’s Foreword 4 1.2 Council Speaker’s Message 6 1.3 Municipal Manager’s Overview 7 1.4 STATUTORY ANNUAL REPORT PROCESS PLAN 8
CHAPTER 2 – GOVERNANCE 9
2.1 EXECUTIVE COMMITTEE 10 2.2 BACKGROUND 18 2.3 SPATIAL ANALYSIS 21 2.4 DEMOGRAPHICS 30
CHAPTER 3 – SERVICE DELIVERY PERFORMANCE REPORT 36
3 Basic Services 36 3.1 Rural roads 36 3.2 Electrification 38
3.3.1 Role of the Developer/ Jozini Local Municipality 39 3.3.2 Role of the Funder/ Department of Human Settlements (DHS) 39 3.3.3 Current projects & Challenges 40
3.3.4 Current housing back log 41 3.3.5 Proposed packaging of housing project 42 3.4 Community Facilities 42
3.4.1 Renovations of community facilities 43 3.5 Waste removal 43
3.5.1 Mkuze 43 3.5.2 UBombo 44 3.5.3 Jozini 44 3.5.4 Bhambanana 44 3.5.5 Ndumo 44 3.5.6 Ingwavuma 44 3.5.7 Recycling Centre 44 3.5.8 Dumpsites 44 3.5.9 Addressing Illegal dump sites 44
3.6 PLANNING AND DEVELOPMENT 45 3.6.1 IDP and Public Participation: 45 3.6.2 Jozini Town Nodal Expansion Plan: 45 3.6.3 Land Use Schemes for Jozini, Ingwavuma, Mkhuze, Bhambanana, Ubombo and Ndumo: 45 3.6.4 Building Plans 46
CHAPTER 4 - ORGANISATIONAL DEVELOPMENT PERFORMANCE 47
4.1 Organisational Framework 47 4.1.1 ORGANISATIONAL PERFORMANCE MANAGEMENT YSTEM 47
4.2 Total Number of Positions, Turnover and Vacancies 53 4.2.1 Senior Management 53 4.2.2 Management Services Department 54 4.2.3 Budget & Treasury Department 55 4.2.4 Corporate Services Department 56 4.2.5 Social and Economic Development Department 57 4.2.6 Technical & Planning Services Department 59
4.3 COMMENT ON VACANCIES AND STAFF TURNOVER 60 4.4 HUMAN RESOURCE POLICIES 61 4.5 BY-LAWS 62
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4.6 MANAGEMENT PRACTICES: 62 4.7 SUSPENSIONS (from Disciplinary Hearings) 62 4.8 WORKFORCE CAPACITY DEVELOPMENT 62
4.8.1 SKILLS TRAINING AND DEVELOPMENT 63 4.8.3 TOTAL INTERNS FUNDED BY THE LGSETA 66 4.8.4 TRAINING BENEFICIARIES – EMPLOYEES 67 4.8.5 TRAINING BENEFICIARIES – UNEMPLOYED 68
4.9 Jozini Library Services 76
CHAPTER 5 – FINANCIAL PERFORMANCE 91
5.1 FINANCIAL INFORMATION 91 5.4 SUPPLY CHAIN MANAGEMENT 96 5.5 GRAP COMPLIANCE 97 5.8 CREDITORS 99
CHAPTER 6 – AUDITOR GENERAL REPORT 100
CHAPTER 7 – Annexures 108
ANNEXURE A – Audited Financial Statements 108 ANNEXURE B – Auditor General Audit Report 108 ANNEXURE C – Auditor General Audit Queries - Action Plan 108 ANNEXURE D – Organisational Scorecard 108 CHAPTER 8 - ACRONYMS AND ABBREVIATIONS 108
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CHAPTER 1 – EXECUTIVE SUMMARY
1.1 Mayor’s Foreword
I have pleasure in presenting this Annual Report in line with the provisions of the relevant legislative
framework and public accountability responsibilities for the year ended June 2014.
The year 2013/14 was an eventful year in many respects. It was a year the municipality recorded
fascinating progress in many respects, yet there was also daunting negativity. Negative sentiment
against the institution was fuelled by publicity that was politically motivated to cast doubt on the
integrity of our leadership and administration. The resigning of the three top management was
catastrophic for the whole organization, but we thank the support we received from COGTA during
that period and we believe that with the new Acting Municipal Manager we are going to get an
improved audit opinion.
“April 2014 marked 20 years of our Democratic government, led by the ANC. As Jozini Mayor I am
deeply honoured and grateful to the men and women whose sweat, blood and lives were sacrificed
to have the liberties we all enjoy today. As we applaud to the great strides our country under the
ANC government has made in improving the lives of our people, at the same time we need to
acknowledge that more still needs to be done to eliminate the persistent lack of jobs, poverty and
underdevelopment in rural areas like Jozini in particular. This we cannot achieve alone. Hence we
call upon al to be the change we want wherever you are with whatever you have”.
Towards a Clean Audit
In keeping with our resolve to ensure clean government and administration that is responsive to the
needs of our communities, visitors, stakeholders and investors, we collaborated with both COGTA
and AG in conducting an investigation on the alleged allegations of maladministration, tender fraud
and corruption. COGTA subsequently made recommendations to Council to undertake corrective
actions where there was proven wrong doing.
The municipality has been facing numerous challenges one of which was the sudden resignation of
section 56/57 managers which affected the performance of the municipality. Currently the
municipality is working towards improving the audit outcome through the implementation of the
Auditor General Action plan and audit readiness plan.
Fighting Social ills
The Women’s Forum has been the most visible and hard working to help the municipality reach out
to many in our communities, including schools, orphanages and destitute families. The building of
His Worship, the Mayor Cllr. B. N. Mthethwa
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houses, food parcels, sanitary pads and sporting gear are among the noble initiatives that women
have undertaken.
Credit also goes to all sector departments, NGOs and private sector organisations and individuals
who supported us throughout the year. To the staff who continued to work tirelessly to improve the
overall functioning of the municipality and responsiveness to service delivery demands, on behalf of
Council, I do sincerely thank you.
Crime Fighting
I wish to thank law enforcement agencies, the SAPS in particular, at all levels of our government for
the unconditional support on crime issues, stable communities and safety of our communities,
visitors and property.
Synergistic Partnership
I would have failed in my duty if I did not recognise the sterling contributions made by the traditional
leadership of Jozini whose support continues to be a solid pillar of strength and support in our
service delivery planning.
I am proud to be part of Council that is the first within UMkhanyakude District to invite traditional
leaders to participate in our Council meetings on matters that relate to their respective areas.
Cooperatives Programme
Women are an integral part of the wellbeing of our communities and as such economic
empowerment pursued with the exclusion of women is not sustainable. Women cooperatives at
Jozini participated exclusively to the community centres and facilities renovation programme, which
resulted in the rehabilitation of 21 facilities at an investment of about R10m.
Dealing with Backlogs
It is common cause that the region is characterized by major backlogs in respect of social and
economic infrastructure such as roads, housing, electrification, water and sanitation. Plans have
been developed for the purpose of securing the needed finances to implement programmes to
address these challenges in our municipal area.
Available sources of funding such as the Municipal Infrastructure Grant (MIG), the human
settlement grants, electrification funds and other sources including the municipality’s own budget
have been committed within the context of the mid-term expenditure framework.
The private sector has been supportive in that they generously donated building materials to build
homes for specific cases among our poor communities.
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1.2 Council Speaker’s Message
It is for me a singular honour to serve as part of the Jozini municipality, tasked with a huge
responsibility of presiding as Chairperson of Council.
Indeed 2013/14 has had its fair share of dynamics, but was sweetened by the fact that the
municipality is in the safest hands since 2011 local government elections when the new leadership
took power.
Unlike the previous reporting period, the year ending June 2014 was far much better in terms of
unity of purpose among different political parties, which resulted in the smooth functioning of council
and its committees.
Political oversight was greatly improved with all sub-committees including MPAC meeting regularly to
ensure that the municipal administration does not only submit nice reports but practices and reality
on the ground are in agreement with what is being reported periodically by administration.
The sad part of the year 2013/14 was the resigning of 3 top Management Officials at the same time
(MM, CFO & Director Planning and Technical) at the tail end of the year, which inevitably caused
considerable hardship administratively. Among its most telling implications, the situation created an
environment of uncertainty and limitations in the municipality’s ability to provide adequate
accountability thus affecting the smooth handling of the external audit and as a result the
municipality not achieving the desired results in terms of the audit opinion. The audit outcome for
2013/2014 is a disclaimer audit opinion. The Acting Municipal Manager is working tirelessly to
ensure that the audit outcome for 2014/2015 is improved. Implementation plans have been tabled
before the Audit Committee and management is currently busy with the implementation thereof.
If we continue in this fashion in 2014/15 going forward Jozini will never be the same, but will
continue to thrive.
For that I thank all Councillors and ward committees for putting the interest of our communities,
investors and stakeholders first. My Council is blessed with the following 39 Members of the Council
with the exclusion of vacant ward 4 which the by-elections will be conducted on the 27th 0f August
2014 and we are hoping to have the new Ward Councillor in the Second Term of 2014/2015 F/Y,
which will make our Council Members to total.
Honourable Speaker, Cllr. M.Z Nyawo
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1.3 Municipal Manager’s Overview
Change is always here, there and everywhere. It has been said that change never changes. The
Jozini Municipality is not an exception to this rule as far-reaching changes have been witnessed in
the course of our reporting period.
As a struggling municipality short in supply of budget, skills and other resources, we are on the
right path to help make the dream for better lives a reality for thousands of our community
members who for centuries have been neglected and deprived of their rights to access to the
essential and basic services.
The target of 70% met last year in service delivery is testimony that we are indeed forging ahead at
an improved speed to fast-track service delivery regardless of our resources limitations.
This means we improved both our capital projects expenditure and poverty alleviation
programme. The Council, after due consideration of the material conditions facing the
community of Jozini, resolved to implement several local economic development projects in an
effort to fight poverty.
In order to deal effectively with the challenge of skills shortages, the municipality is working hard
and investing considerable amounts in improving the capabilities and abilities of its staff, the
councillors and the community in general. Staff members have been provided with opportunities to
register for courses in different fields, councillors have been registered with institutions of higher
learning to acquire qualifications relevant to local government and there are a number of training
initiatives that are in place to benefit women, youth, people with disabilities and other members of
the community.
As an institution, all efforts will be directed at ensuring that the interventions and the programmes
with which the municipality becomes involved are carried out in an environment that is regulated by
relevant policies and procedures.
A number of new policies will be developed in the new year, informed by a detailed assessment of
the policy environment finalized during the course of the year under review. It may be necessary to
review some of the existing policies, but this will depend on the recommendations emanating from
the assessment.
The administration will further be strengthened through the institutionalization of checks and
balances, primarily to promote controls and accountability in order to revive public confidence in the
functioning of the municipality.
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1.4 STATUTORY ANNUAL REPORT PROCESS PLAN
No Standing Activity Time Frame
1
Consideration of next financial year’s Budget and Integrated
Development Plan (IDP) Process Plan. Except for the legislative
content, the process plan should confirm in-year reporting formats to
ensure that the reporting and monitoring feeds seamlessly into the
Annual Report process at the end of the Budget/ IDP implementation
period.
July
2 Implementation and monitoring of approved Budget and
IDP commences
3 Finalise Q4 Report for the previous financial year
4 Audit/Performance committee considers Draft Annual Report of
Municipality (and its entities where applicable) August
5 Mayor tables the Unaudited Annual Report
6 Municipality submits Draft Annual Report including consolidated Annual
Financial Statements and Performance Report to Auditor General
7 Submit draft 2013/2014 Annual Report to Internal Audit and
Auditor-General
8 Auditor-General assesses draft Annual Report including consolidated
Annual Financial Statements and Performance Data
September –
October
9 Municipalities receive and start to address the Auditor-
General’s comments November –
December
10 Oversight Committee assesses Annual Report
11 Mayor tables Annual Report and Audited Financial Statements
to Council complete with the Auditor-General’s Report January
12 Audited Annual Report is made public and representation is invited
13 Council adopts Oversight Report March
14 Oversight Report is made public
15 Oversight Report is submitted to relevant Provincial Councils
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CHAPTER 2 – GOVERNANCE
It is necessary for a strong relationship to be maintained between the Political and Administrative
wings to promote the existence of smooth functioning of any municipality. Such a relationship
enhances the performance of the municipality as the roles and responsibilities are clarified and
confusion is averted.
The Constitution provides for the existence of three distinct and interdependent spheres of
government, namely Local, Provincial and National. S151 (3) gives municipalities the power to
govern their own affairs subject to national and provincial legislation and S151 (4) prevents
national and provincial government from impeding the exercise of municipal power.
Political and Administrative Governance
Political Leadership
His Worship the Mayor, Cllr. B.N. Mthethwa
Deputy Mayor, Cllr. T.S. Mdluli
Honourable Speaker Cllr. M.Z. Nyawo
Chief Whip, Cllr T. J. Ndlazi
The Council (headed by the Speaker) together with the Executive Committee (chaired by the
Mayor) are the 2 decisive structure within the organisation and have 3 (three) portfolio Committees
reporting thereto. Portfolio Committees, chaired by Exco members are aligned to the core
functions of the existing departments, namely the Community Development, Corporate and Human
Resources; and the Infrastructure, Planning and Development Committees. The Finance
Committee also formulated by Council is chaired by the Mayor and deals with financial
management issues focusing on compliance reporting, budgeting, income and expenditure,
systems and procedures, revenue enhancement etc.
The Audit and the Oversight/ MPAC Committee report directly to Council and the sub-committee,
the Local Labour Forum report to the Portfolio Committee.
The mentioned committees provide structural reporting to various levels to ensure extensive
interrogation before such is tabled before council or Exco and also to ensure proper monitoring
and oversight over the performance of departments.
Political governance within Jozini Municipality is comprised of 39 Councillors plus one vacancy
which adds up to the total of 40 councillors of which 20 are ordinary councillors and 20 are Party
Representative Councillors. The councillors are from the ANC, IFP and NFP political parties.
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POLITICAL DECISION TAKING
Decisions are taken through Committee meetings where reports with recommendations are
prepared and tabled by relevant Heads of Departments, and decisions are made and endorsed by
majority of members present which is 50% +1.
The decisions taken are captured in a decision Circular circulated to all Departments immediately
after the sitting of the meeting.
2.1 EXECUTIVE COMMITTEE
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Cllr. J. Siyaya Ward 6
Cllr.T.I Mthethwa Ward 7
Cllr N.S Myeni Ward 1
Cllr J.E Buthelezi Ward 2
Cllr B.N Mthethwa Ward 3
Vacant
Wards 4
Cllr. S.M Mthembu Ward 5
Cllr. T.J. Ndlazi Ward 8
Cllr. J.M Mpotshana Ward 9
Cllr. D M. Mthembu Ward 10
Ward 10
Cllr.S.S Mkhize Ward 11
Cllr. B.Q Gumede Ward 12
Cllr. B.I Msweli Award 13
Cllr.M.E Nlela Ward 14
Cllr. S.B Mathenjwa Ward 15
Cllr. K.N Khumalo Ward 16
Cllr. N.R Ndlovu Ward 17
Cllr.T.P Mbhamai Ward 18
Cllr. D.J Mthembu Ward 19
Cllr. S.M Mathenjwa Ward 20
COUNCILLORS
TOTAL: 39
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M. Mathe
K.B. Mbatha
R.H. Gumede M.Z
S. Macwele
N.L. Mathenjwa
G.P. Moodley
T.Z. Nyawo
PARTY REPRESENTATIVE COUNCILLORS:
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Administrative Governance
The critical vacant positions are occupied by managers in an acting capacity to perform
administrative and management functions so that the municipality achieve its vision.
The Municipal Manager as the accounting officer, is the administrative head responsible for the
implementation of organisational goals in line with the national key performance areas namely,
Municipal Transformation and Organizational goals; Basic Service Delivery; Local Economic
Development; Municipal Financial Viability and Management; and lastly Good Governance and
Public Participation.
The Municipal Manager provides leadership and direction through effective strategies, in order to
fulfil the objectives of local government which are provided for in the Constitution of the Republic of
South Africa, and any other legislative framework that governs local government.
At Jozini Municipality we uphold the values of integrity and honesty, promoting a culture of
collegiality throughout the municipality by delegating duties and rewarding excellence. We also
strongly adhere to the Employment Equity policies and ensure that our staff complement has a fair
representation in gender and race.
Intergovernmental Relations
In terms of the Municipal Systems Act No. 32 of 2000, all municipalities should exercise their
executive and legislative authority within the constitutional system of co-operative governance in
the Constitution S41. Jozini is one of the five (5) municipalities within UMkhanyakude District
Municipality
PUBLIC ACCOUNTABILITY AND PARTICIPATION
OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION
MSA S15 (b): requires a municipality to establish and organise its administration to facilitate a
culture of accountability amongst its staff. S16 (i): states that a municipality must develop a system
of municipal governance that compliments formal representative governance with a system of
participatory governance. S18 (i) (d): requires a municipality to supply its community with
information concerning municipal governance, management and development
Municipal Manager
(Vacant)
CFO
(Vacant)
Director: Technical
Services
(Vacant)
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WARD COMMITTEES
Jozini Municipality adheres to Sections 72 to 78 of the Municipal Structures Act, which makes legal
provisions for the elections and operations of ward committees, Section 152 of the Constitution of
the Republic of South Africa which obliges the municipalities to provide democratic and
accountable government for local communities. Ward Committees have been established to serve
as an official specialized participatory structure in the municipality.
In enhancing and developing a culture of community participation, Ward Committees co- ordinate
ward developmental initiatives and performing their function without fear, favour or prejudice. In
creating a formal unbiased communication channels these structures serves as a direct link
between Communities, Jozini Municipality and its Council, make recommendations on matters
affecting the ward, assist councillor in identifying challenges, disseminate information in the ward
concerning affairs such as budget, IDP and performance management(PMS)
Ward committee members hold monthly meetings whereby issues that are affecting the community
are discussed and presented in a form of sectorial reports. Public participation unit ensures that
these issues are forwarded to the relevant stakeholder/departments and ensuring that any
complaints raised are resolved in a proper manner.
Further more centralized ward committee meetings are convened as they serves as an enables a
platform to share challenges and achievements, where Council and its Administration are
represented. Central meetings serves as platform for one on one dialogues in which ward Council,
Administration and ward committee structures are able to fully deliberate on issues that relates to
their respective communities. Any important information that need be cascaded to the community
members is first known by community members.
CORPORATE GOVERNANCE
INTERNAL AUDIT ACTIVITY
The Internal Audit Activity complied with section 165 of the MFMA by developing a risk-based
internal audit plan and an audit program. Internal audit uses systematic processes which
determine whether established procedures are being followed and whether internal controls are
operating effectively. The internal audit observes and formally assesses governance risk and
control structural design and operational effectiveness while not being directly responsible for
operations
The risk-based internal audit plan was approved by the Audit and Performance Audit Committee
and implemented and as a result the internal audit reports were submitted to the audit and
performance audit committee quarterly for review and comments. These reports were discussed
with management and action plans to address weaknesses identified were documented.
RISK MANAGEMENT
Section 62 (1)(c )(i) of the Municipal Finance Management Act(MFMA) states that, the accounting
officer of a municipality is responsible for managing the financial administration of the municipality,
and must for this purpose take all reasonable steps to ensure that the municipality has and
maintains effective, efficient and transparent systems of financial and risk management and
internal control. The MFMA establishes responsibility for Risk Management at all levels of
management and thus becomes everybody’s responsibility.
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Jozini municipality ensures compliance with section 62(1)(c)(i) of the MFMA, enterprise risk
management framework and the risk management policy. The risk management workshop was
conducted during the year to update the municipality’s risk register.
The top five (5) risks facing the municipality are
Poor revenue collection
Illegal development of domestic and commercial structure
Lack of security measures
Poor planning and monitoring of service providers
No compliance with laws and regulations
The key risk areas which are prone to fraud in most institutions includes the procurement process,
embezzlement and theft of cash etc. Jozini has ensured that these key risk areas are properly
managed.
THE AUDIT AND PERFORMANCE COMMITTEE REPORT
REPORT OF THE AUDIT AND PERFORMANCE COMMITTEE TO THE COUNCIL OF JOZINI
LOCAL MUNICIPALITY FOR THE 2013/14 FINANCIAL YEAR
The Jozini Municipality’s Audit and Performance Committee (AUDCOM) presents its report to
Council for the year ended 30 June 2014.
The legal responsibility of AUDCOM are set out in terms of section 166 of the Municipal Finance
Management Act, No. 56 of 2003.
Members and attendance at meetings
The current AUDCOM comprises of 4 independent, external members and met at least four times
relating to the 2013/14 financial year as per the Audit Committee Charter. During the year under
review one position was filled and AUDCOM members are:
Mr I. Ngcobo (Chairperson)
Mr S. Kunene (Member)
Mr D. Mpontshane (Member)
Mr N. Dludla (Member)
Responsibility
The AUDCOM has been set up in accordance with section 166 of the Municipal Finance
Management Act, no 56 of 2003 (MFMA) and section 14(2)© and Local Government Municipal
Planning and Performance Regulations, 2001 (Regulations) and operates within the terms of the
Audit and Performance Committee Charter approved by the council.
In the conduct of its duties, the AUDCOM has performed the following statutory duties:
Reviewed internal financial control and internal audits
The internal audit (Mnotho) presented its annual audit plan for the financial year ending 30 June 2014 to the AUDCOM at its meeting on 23 July 2013. The AUDCOM resolved that the internal audit plan be approved and to prioritise Conditional Grants income and related expenditure,
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procurement and tenders, review of Financial statements and follow up to address the findings of the Auditor-General. Internal audit submitted audit reports to the Committee for the period under review Internal audit reports include recommendations to improve internal controls together with agreed
management action plans to resolve the issues reported on. To further enhance the processes in
place, internal audit conducts follow-up audits on previously reported internal audit findings and
reports progress to senior management and the AUDCOM.
Internal audit rated the effectiveness of internal controls to be inadequate. The AUDCOM has
expressed its concern and management is required to implement appropriate systems of internal
controls and corrective action to address the identified weaknesses and possible irregularities.
Although there are controls in place, the existing systems and procedures require enhancement
and continued monitoring.
Risk Management
The AUDCOM is responsible for oversight of the internal and external auditors as well as financial
reporting because the assessment of internal controls over financial reporting is risk based, the
Audit Committee is responsible for overseeing management’s risk policies and discussing the
Municipality‘s key risk exposures with management.
Management with the assistance of Provincial Treasury, has finalized the Enterprise Wide Risk
Management Process during May 2013, to identify strategic risks with the potential to impede the
Municipality’s ability to achieve its objective and programme goals. During the workshops,
management identified current controls that may be in place to mitigate risks identified and
possible action plans to be implemented to improve the mitigation of risk.
The Municipality has appointed a risk officer and Risk Committee who will facilitate the execution
of the risk management process as a key enabler to achieving the business objectives and
programme goals of the municipality. The risk officer will assist council and management to
establish and communicate the organization’s risk management objectives and direction.
The internal audit function will provide independent assurance in relation to the management’s
assertions surrounding the robustness and effectiveness of risk management (including
compliance) and may comment on the level of risk management maturity.
Review of financial statements and Accounting policies.
Accounting policies and review of the financial statements
The AUDCOM, during its review of the financial statements for the year ended 30 June 2014,
considered the appropriateness, adoption and consistent application of the South African
Statements of Generally Recognised Accounting Practices (GRAP).
Owing to time constraints the AUDCOM did only a high level review and provided management
with inputs/comments to consider before submitting to the Auditor-General. Although there is room
for improvement in the quality of the unaudited financial statements, the AUDCOM is satisfied that
the unaudited financial statements complies, in all material respects, with relevant provisions of the
MFMA and GRAP.
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Review of the Auditor-General’s management report and audit report
Meetings were held between the AUDCOM and representatives of te Auditor-General to discuss
the engagement letter and strategic audit plan for the year under review. The final management
and audit report was discussed with management and explanations were adequate. Hence the
AUDCOM confirms it is satisfied with the Auditor-Generals report.
Audit Action Plan
The AUDCOM reviewed and commented on the audit action plan for 2013/ 2014 based on the
findings 2013/14. Internal audit has provided independent assurance that the majority of corrective
actions have been implemented. The AUDCOM prioritized an updated progress evaluation in the
early part of 2014/15.
Dash Board Report
The AUDCOM has reviewed the progress with implementing key controls and recommended that
the Municipal Manager and Mayor signs the report as proof of commitments and make concerted
effort to implement commitments.
The adequacy, reliability and accuracy of financial reporting and information
Based on the results of the formal documented review of the design, implementation and
effectiveness of the Municipality’s system of internal financial controls conducted by internal audit
function during the year, considering information and explanations given by management and
discussions with external auditor on the results of their audit, the AUDCOM believes that the
Municipality’s system of internal financial controls is not yet fully effective to form a basis for the
preparation of reliable financial statements and to achieve a clean audit.
Performance Management
The AUDCOM also serves as the Performance Audit Committee for Jozini Municipality.
Internal Audit did review the Municipality’s performance for all quarters during the year.
Based on the Internal Audit reports and review of the draft annual performance report the following
concerns were raised:
Portfolio of evidence was not submitted timely for review
Targets were not always specific, measurable, attainable, realistic and time bound (SMART) and
aligned to the Integrated Development Plan (IDP)
Supporting documentation for actual performance was not always adequate.
Corrective action was not always shown or was inadequate where there was a failure to meet
targets.
The Information on the draft annual performance report was not always complete, reliable and
accurate.
Scorecards did not always reflect actual achievements.
Effective Governance
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The AUDCOM fulfils an oversight role regarding the municipality’s reporting process, including the
system of internal control. It is responsible for ensuring that the Municipality’s internal audit
function is independent and has the necessary resources, standing and authority within the
Municipality to enable it to discharge its duties. Furthermore, it oversees cooperation between the
internal and external auditors, and serves as a link between Council and these functions.
The AUDCOM has established communication with the Municipal Public Accounts Committee
(MPAC) by inviting them to all meetings and sharing minutes of meetings.
The AUDCOM is monitoring progress with special investigations in progress.
The internal and external auditors have unlimited direct access to the AUDCOM, primarily through
its chairperson.
Compliance with Legislation and Ethics
The AUDCOM has noted instances of non-compliance with policies and procedures, MFMA,
Performance Regulations and National Treasury Regulations. The progress to move to full
compliance is monitored on a quarterly basis.
Recommendations
Council should ensure that a proper, fully capacitated and competent internal audit function is in
place throughout the year.
Council should ensure that accurate, reliable and complete financial and performance information
is submitted monthly by management for review by the various committees.
Council should ensure that adequate progress is made with commitments on the quarterly Dash
Board Report.
Council should interact with the external auditors for interim audits with a view to identify and
address shortcomings timely.
Council should allocate adequate resources for compiling the annual financial statements and
performance report to be included in the draft annual report before submission to the Auditor-
General. Furthermore, the Municipal Manager should take action against section 56 employees
who did not submit portfolio of evidence as required.
On behalf of the Audit Committee
Mr I.Z Ngcobo (Chairperson)
2.2 BACKGROUND
Jozini Local Municipality is one of five municipalities within the UMkhanyakude District
Municipality. It is located in the northern portion of KwaZulu–Natal, and is bordered by
Mozambique to the north, Swaziland to the west, Umhlabuyalingana to the east, Hlabisa to the
south and Nongoma and Uphongolo to the west. It consists of four semi formalized towns viz.
Jozini, Mkhuze, Ingwavuma and Ubombo. The remaining parts of the municipality are
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characterized as being rural in nature. Jozini Municipality covers 32% (3057 Square Kilometres)
of the total area of 13859 Square Kilometres of uMkhanyakude District Municipality.
The primary investment points are Mkhuze and Jozini; secondary investment points have been
identified at Ingwavuma, Ubombo, Ndumo and Bhambanana and tertiary investment points have
been identified at Ophansi, Manyiseni, Makwakwa, Emabhanoyini. These investment points are
seen as the existing and future growth points in the municipal area and will serve as the basis for
the clustering of activities and services such as schools, shops, community halls, etc.
The municipal area is well served by major movement routes. These include a national link (N2),
the R22 links Jozini to Manguzi in the Umhlabuyalingana Municipality and the 522-1 which
extends from Ubombo in the south to Ingwavuma in the north.
Jozini local municipality consists of twenty wards. Previously it consisted of 17 wards then after
demarcation before the 2011 Local Government elections three wards were added.
The large area of Jozini jurisdiction falls under the ownership of Ingonyama Trust and some
areas are privately owned by individuals while some portions are owned by the State. The
current land ownership is one of the reasons why it is very difficult to control development in the
Municipal area of jurisdiction.
Basic facts Basic figures
Stats SA 2001 Community Survey Stats SA 2011
Total population 184 052 2007
7 22
186 502
Total number of households 33 534 38 530 38 849
UMkhanyakude District 573 341 614 046 625 846
Municipality Age profile
0-19
20-64
114 095
56 831
114 217
85 005
101 818
77 256
% Household with no income
65+
49%
13 0
47%
8 50
7 43%
42
Page 20
Investment points
Primary nodes Secondary nodes Tertiary nodes
Mkhuze
Jozini
Ingwavuma
Ubombo
Bhambanana
Ndumo
Ophansi
Manyiseni
Makwakwa
Emabhanoyini
Map showing all 20 wards
Page 21
2.3 SPATIAL ANALYSIS
Jozini Municipality is located in Northern KwaZulu Natal and borders Swaziland and
Mozambique. Jozini Municipality falls within the UMkhanyakude District Municipality and covers
an area of 3073.08 km2. This equates to approximately 32% of the area of the district. The
Lebombo Mountains and Makhatini Flats provide a diverse and beautiful terrain rich in local
resources including water features and even fossil sites. The name Jozini means place of
spears and is attributes to the many spears found in the caves in the area that were used
during ancient wars.
Jozini Municipality borders the following municipal areas as shown on the map at overleaf:
Umhlabuyalingana Local Municipality to the East
Hlabisa and the Big 5 False Bay Local Municipalities to the South
Portions of the Greater St Lucia Wetland Park to the South
The Uphongolo Local Municipality (Zululand District) to the West
Mozambique to the North
Swaziland to the West
ADMINISTRATIVE ENTITIES
The Jozini Municipality has 20 municipal wards and 7 Traditional Council Areas. The following
is a list of Traditional Councils in the Jozini Municipality:
Mathenjwa
Mngomezulu
Nyawo
Myeni-Ntsinde
Jobe
Myeni Ngwenya
Siqakatha
The Jozini Municipality also has a portion of State owned land within its area of jurisdiction as
indicated on the map herewith.
Page 22
Apart from the Administrative entities listed above, the Jozini Municipal area also boasts a
number of environmentally sensitive areas, i.e.:
. Game Farms
. Protected Environmentally Sensitive Areas
. Non-Protected Environmentally Sensitive Areas
. Ezemvelo Wildlife Protected Areas
. Areas of High Intrinsic Biodiversity Value
The location of the above are shown on the Environmental Considerations and the
Environmental and Tourism Asset maps on the following pages.
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Page 24
STRUCTURING ELEMENTS
. Pongola River
. 2 nature reserves (Ndumo which borders Jozini and Mhlabuyalingana; Mkhuze which
borders Jozini and Big Five)
. Terrain (borders Ingwavuma and Swaziland) .
Jozini Dam (Pongola Port Dam)
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EXISTING NODED AND CORRIDORS
Investment points (Nodes) are the existing and future growth points and centers of population
concentration within the municipality .They form the bases for the allocation of funding and
resources as well as the rollout of service delivery .It is crucial to build upon such investment
points we also find a clustering of certain activities such as shops, schools, churches, community
halls and clinics .The table below contains the hierarchy of investment points for Jozini:
Primary nodes Secondary nodes Tertiary nodes
Mkhuze Jozini
Ingwavuma
Ubombo
Bhambanana Ndumo
Ophansi Manyiseni Makwakwa Emabhanoyin
Mkhuze: is the economic hub of the municipal area and will remain the focus for future
development. Mkuze town is central located and it served by major road such as the N2 which
links it with Hluhluwe, Mtubatuba, Richards Bay towns. There is an influx of major services such
as offices, residential development and commercial uses has led to Mkuze being the major
investment node within the area of Jozini Municipality.
Jozini: is the second economic hub within the area of jurisdiction of the Jozini municipality,
however the topographical constraints and land tenure issues has led to flee of potential investors
to another areas.
Rural Areas: rural areas are characterized by extensive commercial and subsistence farming,
mainly crop production and cattle farming.
MOVEMENT PATTERNS AND ROUTES
Investment Links are the activity spines of the municipality as well as they provide access to
services and encourage economic development thereby improving the living conditions of local
municipalities. Such spines link areas/destinations and carry varying volumes of traffic. In the
Jozini context, the following hierarchy of investment links has been identified:
National link ( the N2)
Primary Investment link
Potential Primary Investment Link
Secondary Investment Link
Potential Secondary
Tertiary Investment Link
The above links are all shown on the accompanying spatial development framework map.
Both the potential primary and secondary investment links should be noted. The former instance
the link to Swaziland off the Bhambanana Ingwavuma road through the Cecil Mark Pass and
secondly the route parallel and to the east of the N2. The potential secondary investment link
between Ubombo and Jozini has been identified considering the route.
Page 26
UMkhanyakude District New Corridor Names
. NORTH - SOUTH CORRIDOR (N-2)
(Richards Bay – Mtuba/Habisa – Hluhluwe – Mkhuze – Golela)
. CULTURAL HERITAGE CORRIDOR
HLABISA – NONGOMA (Gateway to the Kingdom)
. BORDER HERITAGE CORRIDOR
(Cecil Mack Pass – Ingwavuma – Bambanani – Ngwanase – Kosi Bay)
. ZULU OCEAN CORRIDOR
(Richards Bay – St Lucia – Hluhluwe – Kosi Bay to Maputo)
. AILE OF KINGS HERITAGE CORRIDOR
(Liberation Route: Jozini/N2 Turnoff – Sikhandane – Kwaliweni – Ingwavuma – Cecil
Mack Pass)
. MAPUTALAND AEROTROPOLIS CORRIDOR
New City Corridor (Emabhanoyini)
BROAD LAND USES
The evident land use pattern and settlement pattern in Jozini LM greatly influenced by
topography, environmentally sensitive sites and sites of historical significance. The land use
pattern has evolved in response to settlement pattern and it relates to places where people live,
play and work. As such the following are the evident broad land uses in Jozini LM (see map)
. Settlements
. Towns
. Agricultural
. Commercial Farmlands
. Conservation Areas
LAND COVER HACTARES PERCENTAGE
Airfields 6.5 0.0
Bare rock and sand 506.2 0.1
Bushland and woodland 191521.8 55.6
Forest 7397.9 2.1
Grasslands 62511.5 18.2
Natural water bodies 2112.0 0.6
Plantations 25.3 0.0
Wetlands 5858.3 1.7
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Mines and Quarries 31.9 0.0
Dams 1066.7 0.3
Commercial-orchards 19.2 0.0
Commercial- Pineapples 78.2 0.0 Commercial- Sugarcane 7441.8 2.2 Commercial- Agriculture 972.9 0.3
Dense settlements 1191.0 0.3 Low density settlements 12079.8 3.5
Scattered low density settlements 47658.2 13.8
Railways 87.8 0.0
Roads 3612.0 1.0
TOTAL 344179.2 100
The above table illustrates in detail the extent of the various land uses. From the table it is evident
that bushland and woodland occupy the majority (55,6%) of the land in Jozini LM and settlements
occupy approximately 17,6%.
LAND OWNERSHIP
Most of the land is under Ingonyama Trust Board and the State. The municipality does not own
land and this is a huge challenge.
LAND CLAIMS
The figure to follow shows the following:
Gazetted Land Claims;
Settled Land Claims; and
Transferred Redistribution of Land
Some of the land that has been claimed and is being claimed occurs on the north western
part of Jozini Local Municipality, in Ingwavuma.
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ENVIRONMENTAL ANALYSIS The factors responsible for high levels of biodiversity present in the area are also responsible for the high levels of biodiversity present in the vegetation. The uMkhanyakude District is part of the Indian Ocean phytogeography region, and is a regional transition zone and a regional mosaic. Flora comprises a mixture of several floristic elements and communities and differs substantially from that of surrounding regions. Vegetation is exceptionally diverse and ranges from forest, thickets and woodlands to grassland and swamps depending on topography and edaphic conditions. These can be classified into 15 discrete vegetation types. Of at least 2180 vascular plant species, 225 species are endemic or near endemic to the Jozini area.
Biodiversity in the municipality is under pressure because of land conversion, climate change,
unsustainable harvesting of natural resources and the wide spread of alien species. Natural
resources provide opportunities for economic empowerment through sustained agriculture,
ecotourism, indigenous plant use etc.
HYDROLOGY
Jozini has an abundance of natural water resources. Major rivers include the Pongola River,
the Ngwavuma River, the Mkuze River, and the Usuthu River, of these only the Usuthu and
Pongola Rivers are perennial. The Pongola is the most important river in Jozini as it traverses
the full length of the area. The flooding of the Ngwavuma and the Usuthu dam up the waters of
the Pongola, resulting in an area of deep flooding during peak floods and the infilling of plains.
Local Mountain drainage comprises a number of seasonal streams that drain the dip-slope
and scarp-slope faces. Some of these streams have perennial pools. In spite of this apparent
abundance of water, there is some concern about the provision of potable water to rural areas.
Page 29
The town of Mkuze obtains its water from the Mkuze River and a small dam. The River
originates in Northern KwaZulu-Natal and flows through the Lebombo Mountains, across the
coastal plain into Lake St Lucia.
It is approximately 290km long and has a drainage basin of 4820 km2, but is not a reliable
water source. The dam referred to is privately owned and arrangements for abstraction are of
a temporary nature and it is considered to be an unstable water source. The town Ubombo
also gets its water from the Mkuze River and a number of boreholes that are not reliable. As
such, the towns of Mkuze and Ubombo do not have sufficient potable water to sustain their
respective populations. This has resulted in restrictions and the occasional total cessation of
their water supply (uPhongolo Sub-Regional Plan, 1999).
According to the Department of Water Affairs and Forestry, water from the Pongolapoort Dam is of
excellent quality, but its total dissolved solid is low which means that it is very aggressive on steel.
Floods are simulated twice a year and, if possible, synchronised with the high flows of the Usuthu
River to obtain the maximum flood effect. The Pongolapoort Dam supplies water for the
Tshongwe-Malobeni water scheme as well as scheme villages. The Pongola River Flood Plain
has a series of pans that flood seasonally. The Pongola River is a major water source supplying
the whole Shemula Scheme. The town of Jozini obtains water from the Jozini Water Treatment
plant, which is presently operating at full capacity (uPhongolo Sub-Regional Plan, 1999).
AIR QUALITY
Due to the rural nature of the municipality; air quality issues in the Jozini are less prevalent.
The presence of sugar cane farming suggests that there is a need of a seasonal check-up
and regulatory mechanisms on the burning of sugarcane farms.
CLIMATE CHANGE
Jozini area is characterised by seasonal dry winters and wet summers with periodic flooding.
The summer temperature ranges from 23° to 40°, while winter temps range from 16° to 26°.
Mean annual rainfall is 600mm and 800mm along the Lebombo Mountains which fall within a
moist belt. The annual average evaporation is approximately 1660mm with evaporation highest
during the winter and early spring months.
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2.4 DEMOGRAPHICS
POPULATION
According to the Stats SA 2011 Census Jozini Municipality has a population of 186 502
people and 38849 households. This represents 29.8% of the District’s population (625 846).
The municipality is the most populated municipality within UMkhanyakude District.
72% of the total population is under 29 years of age. Such a high number of youth requires
the municipality to put more emphasis on schools, recreation facilities and most important,
job creation.
The statistics in the following table indicate that, the population of Jozini municipal area has
increased with 17.6% between 2001 census and 2007 community survey. Between 2001
census and 2011 census the population has increased with 2%. There is a decrease of
population when comparing the 2007 Community Survey and Census 2011
KZ 272 Population Characteristics in comparison with other LMs in DC 27 (Source:
STATSA)
MUNICIPALITY PERSONS HOUSEHOLDS
Census CS 2007 Census Census CS 2007 Census
Umkhanyakude 2001
573 341
614 046 2011
625 846
2001
11 563
114 973 128 2011
195 Umhlabuyalingana 140 958 163 694 156 736 25 959 27 006 33 857
Jozini Municipality 184 052 207 250 186 502 33 534 38 530 38 849
The Big Five False
Bay
31 291 34 991 35 258 6 183 6 657 7 998
Hlabisa Municipality 176 890 150 557 91 925 26 876 27 260 12 586
Mtubatuba Municipality 33 612 46 596 175 425 7 472 11 339 34 905
The graph below illustrates a significant increase in the population figures for Jozini between
1996 and 2001 census and 2007 community survey and then a decrease between 2007
community survey and 2011 Census.
Page 31
4 0 0 0
8000
6000
2000
0 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0
Population per ward
AGE PROFILE
14000
12000
10000
Source: Stats SA DENSITY
Population densities are highest in the northern parts of the Wards 20, 2 and 7 (Umkhuze,
Ubombo and Jozini) and Ingwavuma (ward 14) have relatively high densities.
The following table indicates population per ward.
WARD POPULATION WARD POPULATION
1 7173 11 8094
2 8144 12 10401
3 9422 13 10775
4 8292 14 11634
5 13677 15 8465
6 6939 16 9494
7 9574 17 10425
8 8504 18 7939 9 9506 19 8813
10 11085 20 8148 Source: Stats SA Census 2011
Source: Stats SA (Census 2011)
In terms of 2001 statistical figures, the total figure for males and females within the age
category of 0-19 was 114 095 which was about 60% of the total population (184 052). In
2007 in the same age category the total population figure for males and females was 114
217 which was about 52% of the total population (207 722). Although not much of an
increase (i.e. an addition of 122),this age category saw a decline of around 2.5% due to the
increase in the total population number form 184 052 in 2001 to 207 722 in 2007.
In the 20-64 age category the statistics was as follows; in 2001 the figure was 56 831 (45%)
of the total population and grew to 85 004 (38%) of the total population in 2007. There was
a population increase of 28 173. In the 65+ age category in 2001 there were 13 090 of the
total population. The number decreased to 8 501 in 2007 of the total population, a decrease
of 4 589. This indicates a high mortality rate in the age group.
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30000
25000
20000
15000
10000
5000
0
Age category
00-04
05--09
10--14
15 - 19
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
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Age category Male Female Number
00 – 04 13855 13490 27345
05 – 09 12413 12166 24579
10 – 14 12725 12300 25025
15 – 19 12398 12471 24869
20 – 24 8708 10321 19029
25 – 29 5772 8443 14215
30 – 34 4084 5993 10077
35 – 39 3289 4844 8133
40 – 44 2723 4386 7109
45 – 49 2355 3898 6353
50 – 54 2264 3132 5396
55 – 59 1767 2240 4007
60 – 64 1254 1783 3037
65 – 69 803 1229 2032
70 – 74 694 1272 1966
75 – 79 342 969 1311
80 – 84 325 872 1197
85+ 246 577 823
Source: Statistics South Africa (Census 2011)
The 0-19 age group constitutes a significant amount of the total population. This is the group that holds
the key to regeneration and development efforts of any municipality. Jozini Municipality should develop
supportive interventions in collaboration with other spheres of government to improve educational and
vocational job opportunities for this group. The municipality should find ways of contributing to early
childhood development initiatives in the municipal area. The municipality should further embark on
interventions to alleviate the plight of young people who have become breadwinners as a result if
HIV/AIDS.
The second highest category is age 20 – 64 constituted 48% of the total population. This group is also
faced by various environmental stresses that expose them to vulnerability and poverty. These include
HIV/AIDS, unemployment and lack of skills. They constitute the poor and marginalised. Only 4% of the
population is over the age of 65.
GENDER
The proportion of females is marginally higher (54%) than that of males; the social implications of this
for the municipality are significant. It is likely to imply that women head most households and thus their
participation in economic activities is limited by the need to fulfil dual roles of being a provider and a
nurturer. The latter role is by its very is time intensive and emotional oriented.
Table: Age and gender profile
Age Males Females Total Males Females Total Males Females Total Group (2001) (2001) Population (2007) (2007) Population (2011) (2011) population
(2001) (2007) (2011)
0-19 55148 58947 114095 57929 56288 114217 51391 50427 101818
20-64 24311 32520 56831 35013 49991 85004 32216 45040 77256
65+ 4327 8763 13090 2220 6281 8501 2509 4919 7428
Total 83822 100230 184052 95162 112560 207722 86017 100386 186502
Source: Stats SA Census 2001 and 2011 and Community Survey 2007
Page 34
The strategy focuses on promoting comprehensive administration which is proficient and operative
that will enable the municipality to meet its development needs.
The Municipality must ensure that financial and capacity resources are provided to meet the needs of
the communities as indicated in the IDP Review, and that would also enable the adherence to the
vision, objective and strategies.
MUNICIPAL TRANSFORMATION
Jozini Municipality is an equitable employer with targeted groups represented in various layers of the
municipal structure. However, there are still a number of areas where improvement is required. Heads
of Departments (HODs) comprise of 3 black African males and 1 African woman. Women occupy 3
middle management positions.
An Employment Equity Committee has been established and will be responsible for the following:
Review of Employment Equity Plans.
Ensuring that the Employment Equity Act is being implemented.
EMPLOYMENT OF DISABLED PEOPLE
As per the requirement from the Department of Labour, employers are required to employ a total of 2%
disabled persons. The municipality also employs people living with disabilities. Council currently has 1
disabled employee. In order to attract people with disabilities, positions which are suitable for people
with disabilities are to be identified and will be stated as such on the advertisements.
The main focus of Labour Relations is to manage and strengthen relations between Organised Labour
and Management. Council is currently engaged in a facilitation process under the auspices of the South
African Local Government Bargaining Council (SALGBC).
All disciplinary processes and grievance processes are dealt with in terms of the Collective
Agreements agreed upon by SALGA and Organised Labour. Appeals are also dealt with in terms of
the same Collective Agreement until cases are referred to the Bargaining Council.
The Labour Relations (HR) section is also responsible for the following:
- Facilitation of preparation meetings for Local Labour Forum (LLF prep); -
Attending of Local Labour Forum meetings;
- Assisting Employee Assistance Programme (EAP) with drug and alcohol awareness sessions with
employees;
- Workshop disciplinary process and procedures with employees;
- Foster better relationships between management and Organised Labour;
- Assist and advise line management and employees on good line management
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ORGANISATIONAL DEVELOPMENT
The Council strives to maintain and enforce a strict workflow to ensure:-
Uniformity
Security
Accessibility
Transparency
during the reporting procedure, from report preparation to the finalization or implementation of
recommendations and resolutions.
There are 5 Portfolio Committees which are scheduled to meet every month that feed into the
1 EXCO per month.
All reports are approved by the Municipal Manager before they are placed on an agenda.
INSTITUTIONAL ARRANGEMENTS
The purpose of conducting an institutional analysis is to ensure that the municipal development strategies take existing institutional capacities into consideration and that institutional shortcomings are addressed. Jozini local municipality was established in 2000 in terms of the Municipal Structures Act, 1998 (Act No. 117 of 1998). The municipal offices are at Jozini Town. The municipality also hosts the UMkhanyakude District offices situated in Mkhuze town. There is also a satellite office in Ingwavuma
town.
MUNICIPAL COUNCIL
Jozini Local Council comprises of the political and administrative components responsible for decision-
making and implementation respectively. The Council of Jozini Municipality is comprised of 40
Councillors, with eight (8) EXCO members. The Mayor chairs the EXCO while the Speaker chairs
Council.
The Municipality has all the powers assigned to it in terms of the Constitution as well as relevant
national and provincial legislation. The executive and legislative authority is vested in the Council. The
Council must, therefore, take all the major decisions of the Municipality including delegation of powers
to political office bearer, Council committees and officials.
There are 5 portfolio Committees established for political oversight over departmental activities and
making recommendations to Council. It is in these committees where policy issues are debated
thoroughly prior to their submission to the Council for adoption.
Through Portfolio Committees, Councillors are able to give political direction to the administrative
programmes of Council. The table below highlights the Portfolio Committees that have been
established to contribute to effective decision-making in processes of governance and ensure effective
implementation of service delivery projects and monitoring thereof.
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CHAPTER 3 – SERVICE DELIVERY PERFORMANCE REPORT
3 Basic Services
The success of local economic development is tied to the provision of basic and other types of
infrastructure to the people. Infrastructure focuses on the status quo regarding water supply, sanitation
facilities, energy and housing provision, roads and waste management – all of which underpins socio-
economic development and determines people’s quality of life.
The provision of adequate municipal infrastructure remains a challenge throughout the district in
general and Jozini municipality in particular. In the municipality electricity is largely distributed by
Eskom and falls within the areas of powers and functions of the UMkhanyakude District Municipality.
Issues and Challenges faced: Backlog on basic infrastructure (housing, water, electricity, sanitation,
roads); Backlog on infrastructure maintenance in town; Land ownership and Land rights.
3.1 Rural roads
Jozini LM constructed 9 km of new roads where the access to the community was a challenge.
The following roads were completed:
Project name Ward Budget Distance
Bhanjana access gravel road
5 1 270 720.83 1.95 km
Emlotheni phase 2 access road
7 1 164 599.67 1 km
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Below is an example of Bhanjana road after completion.
Page 38
3.2 Electrification
Due to Jozini Municipality characterization by a huge backlog in electricity provision, electricity has
been identified as the second priority in the municipality through the ward participation meetings.
While such a backlog could be attributed to limited power of the available substations in relation to
demand, sparsely nature of households plays a determining factor in electricity provision as well. The
Municipality is committed to the provision of an individual house connection with 240KW/1kVA through
a card system. Grid electricity is the preferred service as compare to non-grid electricity but non-grid
should remain an option of electricity provision in the municipal areas where grid electricity is not
feasible.
The above graphs paint a realistic picture as far as access to electricity in Jozini Municipality is
concerned. The use of wood for cooking and candles for lighting remain high among households in
Jozini Municipality. About 59% of households still utilize wood for cooking, while around 57% still
relies on candles for lighting. This implies that the use of electricity remain a luxury for households.
The use of woods impacts negatively on the environment, because it intensifies deforestation.
The Municipality is only prioritising and fast tracking implementation of Electrification projects within its
jurisdiction areas. Currently the backlog in terms of electricity supply is estimated at 73.7%. This is
increasing with the development of new townships being established and village extensions.
From 2009 Jozini municipality started receiving electrification grants, since then we have managed
to provide electricity where network supply is adequate to supply households. Last financial year
(2013/14) two projects were completed.
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Project name Ward Budget Number of household connected
Majozini
electrificationproject
2 5 711 195.19 163
Ingwavuma
electrification project
11 & 14 9 000 000.00 413
Majozini electrification project
3.3 Rural Housing
3.3.1 Role of the Developer/ Jozini Local Municipality
The Jozini acts as a Developer with the following roles:
Plans the approach for the distribution of housing across the municipal area by documenting it in its Human Settlement Development Plan (HSDP).
Coordinates roles played by various stakeholders such as DHS, IA’s, Communities etc. in terms of housing delivery .
3.3.2 Role of the Funder/ Department of Human Settlements (DHS)
The DHS allocates funds for housing development according to the municipal HSDP.
The DHS further advises the municipality on whether funds are available for phasing in of housing projects etc.
Page 40
Below are photos of completed housing units for the above-mentioned project.
3.3.3 Current projects & Challenges
Project Name Number of units
Current status challenges
Kwa-Jobe phase two(2) rural housing project
800 The project is currently at construction. See photos for completed units so far.
No challenge/s at a moment.
Project Name Number of units
Current status Challenge/s
Ndumo rural housing project
1000 The project is currently at stage
1 (planning).
The IA experiences difficulties in securing development rights both from ITB and the Rural Development Department.
Page 41
Project Name Number of units
Current status Challenge/s
Ward 5 housing project
1000 The project is finalizing the pre- feasibility study
The IA experiences difficulties in securing development rights from the Rural Development Department.
Project Name Number of units
Current status Challenge/s
Siqakatha housing project
1000 The developer is waiting for the DHS to allocate funds for the continuation of the project since the municipality won the case against the IA in court.
No challenge yet until DHS allocates funds for the project.
Project Name Number of units
Current status Challenge/s
Ingwavuma housing project
132 The Conveyancers (hired by DHS) are presently transferring titles to beneficiaries. These transfers will enable the close out of the project and the subsequent application for rectification.
Transfers are coming very slowly.
Project Name Number of units
Current status Challenge/s
Jozini Housing Project
502 The project is experiencing a close out problem due to the type of ownership that will be given to beneficiaries. At a moment, the IA has applied to DHS for the change of the project from urban to rural.
Sewage and complications caused by early swapping of beneficiaries.
3.3.4 Current housing back log
Since the dawn of the new political dispensation in 2011, Jozini Municipality has only inherited the long-locked KwaJobe Phase Two (2) housing project with only 800 units. It covers areas in ward 3 & 4. This is the only project which is shows practicability in Jozini municipality.
However, below we attached (separately), a plan for provision of housing across Jozini Municipal wards. This plan may only be successful as long as the DHS allocates funds for implementation:
Page 42
3.3.5 Proposed packaging of housing project
No Project Name Wards Covered
Cluster Allocation
Allocation per ward
1 Ndumo Phase 2 16 1257
2 Siqakatha Housing Project 1000
3 Manyiseni, Nkungwini & Nyamane 15, 18, & 11 1200 400
4 Machobeni, Mamfene & Maphaya 14, 6 & 7 1200 400
5 Msiyane, Mandiyane & Mzinyeni 8, 2 & 10 1200 400
6 Ophondweni, Nondabuya & Zineshe 9, 19 & 3 1200 400
7 Gujini, Mbadleni & Mhlekazi 4, 17 & 1 1200 400
8 Shemula, Hlalanathi & Mkuze 12, 5 & 20 1200 400
9 Makhanisi 13 400 400
3.4 Community Facilities
Last financial year 2013/2014, Technical Department constructed seven community facilities. These
facilities are used for public and private events. Among the major capital projects are the constructions
of Nonjinjikazi and Thelamama community halls. Overall, the above mentioned projects will service a
household of 450 homesteads.
Nonjinjikazi Community hall Thelamama Comminity hall
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3.4.1 Renovations of community facilities
The Municipality renovated 16 community halls, two public toilets, one crèche and one official residents.
Most of them were in a dilapidated stage, through this programme jobs were created for the local
community.
The below community facilities were renovated under this programme.
Project WARD Magwazana Hall 02
Bhambanana Hall 12
Mziki Hall 17
Endabeni Hall 15
Madanishini Hall 10 Sibonokuhle Hall 04 Makhane Hall 13
Ward 5 Creche 05
Jozini Toilets 07 Msiyane Hall 08
Ezibukweni Hall 07
Makhonyeni Hall 05
Ingwavuma Toilets 14
Ingwavuma Office 14
Bhambanana Toilets 12
121 Hall & Official Resident 07
Ophondweni Hall 09
Ophansi Hall 20
Mlingo Hall 20
Jozini Sportfield 07 Mzinyeni Hall 10
Kwashukela Hall 10
3.5 Waste removal
Jozini Municipality has six towns that are currently receiving waste services from the municipality.
Those services are waste collection, street sweeping, grass cutting and storm water drains cleaning.
Having noted that the waste management had become a challenge for town and residents Council took
a decision to recruit 350 general workers for street sweeping, grass cutting and waste collection. This
has bear fruits and created job opportunities through EPWP programme.
3.5.1 Mkuze
The municipality is collecting waste at Mkuze Town (streets and other business storage cages) daily
with the municipal truck, one day a week at suburbs and two days in a week for townships and
Hotels to Mkuze Dumpsite
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3.5.2 UBombo
The municipality is collecting waste twice in a week at Ubombo with a municipal truck to Mkuze
Dumpsite.
3.5.3 Jozini
The municipality is collecting waste at Jozini Town (streets and other business storage cages) daily
with the municipal truck, one day a week at suburbs and two days in a week for township and Hotels to
Mkhuze Dumpsite
3.5.4 Bhambanana
The municipality is collecting waste twice in a week at Bhambanana with a municipal truck to Mkhuze
Dumpsite.
3.5.5 Ndumo
The municipality is collecting waste twice in a week at Ndumo with a municipal truck to Mkhuze
Dumpsite.
3.5.6 Ingwavuma
The municipality is collecting waste at Ingwavuma Town (streets and business storage cages) daily
starting from Monday to Saturday with the municipal tractor, one day a week at suburbs and two
days in a week for townships and Hotels to Ingwavuma Dumpsite.
3.5.7 Recycling Centre
Jozini Municipality has a recycling which has much equipment to function. It was established to
minimize waste that is going to dumpsites because all of them are illegal and all towns and
residential are producing 85% recyclable material. Currently the recycling centre has been
outsourced to New South Africa Recycling however it is not function up to the required potential.
3.5.8 Dumpsites
Currently the municipality has two illegal dumpsites, those are Ingwavuma and Mkuze. Mkuze need a
weekly maintenance using the TLB because of amount volume of waste disposed.
3.5.9 Addressing Illegal dump sites
AECOM SA (Pty) Ltd has been appointed by Jozini Local Municipality for the design and implementation for the rehabilitation, licensing and further development of an existing Solid Waste Disposal Facility at Mkhuze (Ward 20).
Page 45
3.6 PLANNING AND DEVELOPMENT
The Planning unit falls under the Planning and Technical Department and is responsible for the
implementation of planning requirements in terms of the applicable legislation as well as spatially
represent the spatial logistics for Jozini municipality. The planning unit is there to oversee the land use
management within the municipality. The following are some of the project administered within the
2013/14 financial year;
. Jozini town nodal expansion plan
. Land Use schemes for Jozini, Ingwavuma, Mkhuze, Bhambanana, Ubombo and Ndumo nodes.
3.6.1 IDP and Public Participation:
Jozini local municipality is engaged in the process of Integrated Development Planning as the
requirement of Chapter 5 of the Municipal Systems Act No.32 of 2000. Our IDP is the key goal for
guiding and informing all planning, budgeting, management and decision –making in the municipal area
for the period of five year.
The municipality reviews its IDP on annual basis as the requirement of section 34 of the MSA and that
is done through public participation consultative meetings and IDP representative forums. Through
proper engagement with all stakeholders the municipal IDP has improved.
The IDP is undertaken in-house by the IDP Manager and was successfully reviewed and adopted by the
Municipal Council on time i.e. end May 2014 for submission to the MEC: Corporative Governance and
Traditional Affairs [DCoGTA].
The municipality work together with Ward Committees in its public participation processes and reach
the community by disseminating information to them, by engaging with them in consultation and by
allowing community inputs in municipal decision-making regarding service delivery, developing
credible IDPs, policy formulation, budgeting processes and organisational performance. For this
purpose the Ward Committees of Jozini Municipality held various meetings with the community e.g.
IDP public consultative Meetings and Ward Based Planning Sessions. In addition to this a number of
Community Outreach Programmes were also rolled out in the different wards. During the month of
April 2014, IDP and Budgeting processes information and consultative meetings were held and all
wards were represented.
3.6.2 Jozini Town Nodal Expansion Plan:
This project was approved on the basis of the Small Towns Rehabilitation business plan that was
submitted to COGTA. The purpose of this project is to do a feasibility study and come up with a plan for
the new road that will go behind Jozini town to address the issue of traffic congestion. Layouts were
prepared, the municipality now has to do the PDA processes in order to finalise this project.
3.6.3 Land Use Schemes for Jozini, Ingwavuma, Mkhuze, Bhambanana, Ubombo and
Ndumo:
With the assistance of COGTA, the municipality began the process of preparing schemes for the six
nodes in Jozini municipality. The main purpose of formalizing the towns is to control land use and
broaden the income base of the municipality by creating a conducive environment for investors to
develop in. By generating more income through property rates, the municipality can develop towns with
a orderly and safe environment to work and live in. Layouts have been prepared and will be presented
to the Traditional council and the affected communities.
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The project is undertaken planning Consultants that were appointed by COGTA. The completion status is
at 60% as the draft layout plans have been prepared but still need to be presented before the Tribal
Councils and Communities for public consultation and necessary amendments. The Ingonyama Trust
Board is also one of the key stakeholders that still have to decide on the legal process to be followed.
3.6.4 Building Plans
Plans submitted:
19 plans were submitted
07 plans were approved
12 plans were not approved
Reason for not approving, many plans are referred back to the applicant because of insufficient
information, this leads to lengthy and costly delays in the approval of plans.
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CHAPTER 4 - ORGANISATIONAL DEVELOPMENT PERFORMANCE
The Wellness Programme, Workplace Skills Plan (WSP), Work and Play and Team Building
sessions are part and parcel of what the municipality practises to promote and ensure
organisational development
4.1 Organisational Framework
Jozini municipality comprises of five (5) Departments namely: Management Services, Corporate
and Social and Economic Services, Technical and Planning Services and Budget and Treasury.
Each Department is headed by section 56/57 managers, with a well-designed and agreed upon
performance scorecard to achieve the vision and mission of the municipality. The scorecard
becomes the key tool against which to measure and assess the performance of the municipality
on the quarterly basis.
4.1.1 ORGANISATIONAL PERFORMANCE MANAGEMENT YSTEM
Legislative requirements
Outlined in Section 40 of the Municipal Systems Act of 2000 (MSA), Municipalities must establish mechanisms to monitor and review its Performance Management System (PMS) so as to measure, monitor, review, evaluate and improve performance at organisational, departmental and employee levels. Section 34 of the MSA furthermore point out that the Integrated Development Plan (IDP) has to be reviewed on an annual basis, and that during the IDP review process the Key Performance Areas, Key Performance Indicators and Performance Targets be reviewed and this review will form the basis for the review of the Organisational Performance Management and Performance Contracts of Senior Managers.
The Municipal Planning and Performance Management Regulations (2001) stipulates that a “municipality’s performance management system entails a framework that describes and represents how the municipality’s cycle and processes of performance planning, monitoring, measurement, review, reporting and improvement will be conducted, organised and managed, including determining the roles of the different role-players” (Chapter 3, Section 7, Municipal Planning and Performance Management Regulations, 2001).
Section 46 of the Municipal Systems Act (Act 32 of 2000), stipulates the following:-
"Annual performance reports
46. (1) A municipality must prepare for each financial year a performance report
reflecting - (a) the performance of the municipality and of each external service
provider during that financial year; (b) a comparison of the performances referred to in paragraph (a) with targets
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set for and performances in the previous financial year; and (c) measures taken to improve performance.
(2) An annual performance report must form part of the municipality's annual report in terms of Chapter 12 of the Municipal Finance Management Act.”
1. Introduction
The first performance management framework was adopted by the Jozini Municipality on 26 November 2006.The framework was reviewed and amended during 2006/2007 financial year to align with the best practice guidelines suggested by the then Department of Provincial and Local Government and Traditional Affairs of Kwazulu-Natal.
The Performance Management function of Jozini Municipality was previously outsourced to an external service provider and Council resolved during the 2009/2010 financial year to create an internal Performance Management Unit within the Office of the Municipal Manager.
The Performance Management Framework and Policy review for the 2013/2014 financial year was adopted by Council per item Council resolution JMC 252 and is available on Councils Committee Officer.
2. Organisational Performance Management Process
Key performance indicators have been refined in support of the municipality’s development priorities and objectives as set out in the revised IDP framework (aligned with the organizational structure and Council’s priorities) for the new five year IDP period to ensure consistency in measuring and reporting on long terms strategies and projects. Measurable performance targets with regard to each of these development priorities and objectives were established and are reflected on the 2013/2014 OPMS Scorecard. A process to ensure regular reporting is in place and gets reported quarterly to the Council via the Performance Audit Committee.
Individual performance agreements and performance plans were prepared in line with provisions prescribed in the Performance Regulations (Notice 805, published on 1 August 2006 in the official gazette) and signed by the Municipal Manager and Heads of Departments. These agreements are fully implemented and aligned with the Service Delivery and Budget Implementation Plan as required in terms of the Municipal Finance Management Act.
The following diagram illustrates a summary of the newly developed performance management framework for the Jozini Municipality for performance measurement and reporting, adhering to the guidelines suggested by KwaZulu-Natal Province, Department for Cooperative Governance and Traditional Affairs:
Page 49
Jozini Performance Management Framework diagram
3. Performance Audit Committee The Performance Audit Committee for the 2013/2014 financial year was re-affirmed in terms of Section 14(2) (a) of the Local Government: Municipal Planning and Performance Management Regulations of 2001 and the members are as follow:
Mr Z.I. Ngcobo – Chairperson (external
member) Mr D. L Mpontshane (External Member) Mr S. Kunene (External Member) Mr N. Dludla (External Member)
The Performance Audit Committee has met quarterly on 16 August 2013, 15 November 2013, 28 March 2014 to consider the reported annual performance achievements reported on the OPMS scorecard as well as the Performance Achievements reported in terms of the Service Delivery Budget Implementation Plan on the completed 2013/2014 financial year. The minutes of meetings are available on the GroupWise electronic document management system.
4. Performance Evaluation Panels
Performance Evaluation Panels have initially been established for the assessment of performance of the Municipal Manager as well as Managers directly accountable to the
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Municipal Manager. Performance Assessment Panels for the assessment of Section 57 employees were established as follows:
For purposes of evaluating the annual performance of the municipal manager, an evaluation panel constituted of the following persons was established -
(i) Mayor – KZ272
(ii) Chairperson of the Performance /Audit Committee. (iii) Member of the Mayoral or Executive Committee. (iv) Mayor and/or Municipal Manager from another Municipality; and (v) Member of a Ward Committee as nominated by the
Mayor.
Clr B.N. Mthethwa Mayor
Clr R.H. Gumede Exco Member
Mr Z. I. Ngcobo Chairperson of the Performance/ Audit Committee
Mr A. Dhlomo A Mayor/MM from another Municipality (Big 5-False Bay) Mr L.E. Menyuka Ward Committee member (nominated by the Mayor)
For purposes of evaluating the annual performance of managers directly accountable to the Municipal Manager, an Evaluation Panel constituted of the following persons was established:
(i) Municipal Manager -KZ272 (ii) Chairperson of the Performance/ Audit Committee (iii) Executive Committee Member (iv) Municipal Manager from another Municipality- Big 5- False Bay (v ) Ward Committee Member
Mr L.C.Maka AMM-KZ272
Mr Z.I. Ngcobo Chairperson of the Performance/ Audit Committee
Clr R.H Gumede Exco Member
Mr A. Dhlomo Municipal Manager from other Municipality (Big 5 False Bay Municipality)
Mr L.E. Menyuka Ward Committee Member
Performance Evaluation sessions were performed on 5th October 2013 covering the first quarter of the 2013/2014 financial year on progress over the first three months from 1 July 2013 to 30 September 2013. Formal Evaluation sessions covering the first six month period of the covering
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the period 01 October 2013 to 31 December 2013 were held on 17th of January 2014. Performance Evaluation sessions were performed on 19th April 2014 covering the Third quarter of the 2013/2014 financial year on progress over the ninth months from 1 January 2014 to 30 March 2014.The Final Assessment 2013/2014 held on the 05th of August 2014
PMS SUMMARY OF FINAL -TERM RESULTS 13/14 FOR SECTION 56/7
NAME & DESIGNATION CCR
Results KPA Results
Final Score Score Rating
1. Municipal Manager(Organisational) 15%
55%
70%
4
2. Mr S.W.Zondo (Exc. Director Corporate and Community Services)
15% 55% 70% 4
3. Mr S.Bhengu (A Exc. Director Planning and Technical)
15% 66%
76% 4
4. Mr V.I. Gumede (Acting Chief Financial Officer)
14% 56% 70% 4
TOTAL 20% 80% Aver=70% Aver=4
APPROVED BY: Mr L.C. Maka (AMM) DATE: 05 August 2014 An informal performance evaluation was again performed on 19 April 2014 on progress on
performance over the third quarter covering the period 1 January 2014 to 31 March 2014
of the 2013/2014 financial year. The final performance evaluation sessions of the Municipal
Manager and Managers Directly accountable to the Municipal Manager covering the completed
2013/2014 financial year held on the 5th August 2014. The final performance evaluation results
and scores will be reported via the Performance Audit Committee to the Executive Committee
and Council before submission of the 2013/2014 Annual Financial Statements and the 2013/2014
Annual Report.
5. Auditing of Performance Information
The Municipal Systems Act, 2000, Section 45 requires that the results of performance measurements in terms of section 41 (1)(c), must be audited as part of the internal auditing process and annually by the Auditor-General. All auditing must comply with section 14 of the Municipal Planning and Performance Management Regulations, 2001 (Regulation 796).
Umnotho Business Consulting has been appointed by Jozini municipality as the Internal Auditors commencing their services on 01 December 2012.As part of their scope, auditing of the Performance Management System and Audit of Performance Information
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was performed and reports received for each quarter in terms of the following: Project Focus Area
Review of Performance Information - Quarter 1
• Consistency in reporting;
• Measurability and reliability;
• Performance reports reviews;
• Performance score verification (Municipal Manager and Deputy Municipal Managers);
• Compliance with relevant laws and regulations.
Review of Performance Information - Quarter 2
• Consistency in reporting;
• Measurability and reliability;
• Performance reports reviews;
• Compliance with relevant laws and regulations
Review of Performance Information - Quarter 3
• Consistency in reporting;
• Measurability and reliability;
• Performance reports reviews;
• Compliance with relevant laws and regulations
Review of Performance
Information - Quarter 4 (Annual Report)
• Consistency in reporting;
• Measurability and reliability;
• Performance reports reviews;
• Compliance with relevant laws and regulations
The Auditor General is performing a complete auditing of information submitted in this report, together with all achievements reported in the Organisational Performance Management System Scorecard is attached hereunder and Annexure D.
6. Annual Organisational Performance Information
The annual performance reporting on the 2013/2014 financial year has been completed and reflected in the Organisational Performance Scorecard in a table format (as prescribed by KwaZulu-Natal Department of Co-operative Governance and Traditional Affairs (KZN COGTA). The Draft Organisational Performance report is herewith presented to the Auditor General for auditing together with the Annual Financial Statements on 30 August 2014.
This Annual Performance Report (Tables) once finalized and approved should be read in conjunction with the Jozini Annual Report, including the Annual Financial Statements as well as Auditor General Report on the Annual Financial Statements and Performance Information for 2013/2014.
The following table reflects the organisational performance targets and achievements
as reflected in the Integrated Development Plan, in relation to the achievements of the
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previous financial year as well as reflecting corrective measures to be taken in the
2014/2015 financial year in cases of under achievement
4.2 Total Number of Positions, Turnover and Vacancies
NUMBER OF EMPLOYEES TURNOVER% TERMINATIONS
180 4.44% 8
The Organisational Framework below covers the whole municipality.
4.2.1 Senior Management
Total number of positions =5
Total number of vacancies = 3
The Municipality has got a total number of 5 positions at Senior Management level of which three(3)
is vacant whilst two(2) is filled. There is a need therefore for the municipality to ensure that these
positions are filled as soon as possible to facilitate effective and efficient administration and
management. This will also assist in promoting service delivery which is one of the key priorities of
the government .The process of recruitment and selection will kick-start as soon as the Labour court
matters are resolved.
Page 54
4.2.2 Management Services Department
Total number of positions = 10 Total number of vacancies = 0
The Municipality has got a total number of 9 positions in Management Services Department
and there are no vacant positions to be filled
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4.2.3 Budget & Treasury Department
Total number of positions = 21
Total number of vacancies = 3
The Municipality has got a
total number of 21 positions
in Budget & Treasury
Department, with two (3)
vacancies.
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4.2.4 Corporate Services Department
Total number of
positions = 90
Total number of
vacancies = 19
Page 57
Currently the Corporate Services Department has got 90 positions of which 19 of them
is vacant. This then hampers the performance of the department in that it cannot
perform optimally to support other department as a driving force or engine of the
municipality. The future plan is to advertise all the vacant positions to make the
municipality more effective and efficient.
4.2.5 Social and Economic Development Department
Total number of positions =40
Total number of vacancies =26
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Page 59
Social and Economic Services Department has thirty one (31) positions and
15 vacancies which need to be filled once approval is obtained from council.
This Department has a very important role to play regarding service delivery
since it is the face of the municipality in public participation. It is therefore vital
for the municipality to ensure that all vacancies are filled with immediate
effect.
4.2.6 Technical & Planning Services Department
The Technical and Planning Services Department has got 31 positions and 15 vacancies
which will be filled soon. This Department also needs urgent support since it deals with
infrastructural development and planning.
Page 60
VACANCIES
Designation Approved Filled Vacant
Section 56 & 57 05 02 03
Managers 16 14 02
Assistant managers 01 01 0
Superintendents 02 02 0
Officers 49 35 14
Drivers 06 06 0
Admin/Clerks 47 42 05
General Workers
(Permanent)
15 15 0
Securities 24 24 0
Waste Management 15 0 15
The critical positions of Senior Management are vacant and needs to be filled once
the matter submitted to Labour Court has been resolved. This necessitated the
temporal appointment of Acting Municipal Manager, Acting Chief Financial Officer.
4.3 COMMENT ON VACANCIES AND STAFF TURNOVER
The municipality has a turnover of 4.44%.Vacancies are normally filled as soon as
people resign to reduce vacancy rate. Due to resignations and unforeseen
circumstances filling of vacancies has delayed and will be attended to soon.
Financial Year 14-15 Total Employees
beginning of year
Terminations during
financial year
Section 56 & 57 05 03
Managers 16 01
Assistant managers 01 0
Superintendents 02 0
Officers 96 04
Drivers 06 0
General Workers 15 0
Securities 24 0
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4.4 HUMAN RESOURCE POLICIES
Retention Policy 100% 24-26 June 2014 August 2014
Sexual Harassment 100% 24-26 June 2014 August 2014
Training and Development Policy 100% 24-26 June 2014 August 2014
All the above policies were reviewed submitted to Council for approval in August
2014; the workshop was done to Councillors and Municipal Officials. The Corporate
Services (Human Resources) will further review the above policies and develop new
policies in the next Financial Year.
Name of policy Completed Date reviewed Date adopted
Recruitment Policy 100% 24-26 June 2014 August 2014
Dress code Policy 100% 24-26 June 2014 August 2014
Disciplinary Policy 100% 24-26 June 2014 August 2014
Facility Policy 100% 24-26 June 2014 August 2014
Induction Policy 100% 24-26 June 2014 August 2014
Migration Policy 100% 24-26 June 2014 August 2014
Promotion Policy 100% 24-26 June 2014 August 2014
Bursary Policy 100% 24-26 June 2014 August 2014
Code of Conduct Policy 100% 24-26 June 2014 August 2014
Municipality Staff Policy 100% 24-26 June 2014 August 2014
Stand-by Policy 100% 24-26 June 2014 August 2014
Desertion & Abscondment Policy 100% 24-26 June 2014 August 2014
Employment Equity Policy 100% 24-26 June 2014 August 2014
Housing Subsidy Policy 100% 24-26 June 2014 August 2014
Leave Policy 100% 24-26 June 2014 August 2014
OHS Policy 100% 24-26 June 2014 August 2014
Records Management Policy 100% 24-26 June 2014 August 2014
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4.5 BY-LAWS
The municipality has established and customised its Animal Pound and Cemetery By Laws
which have been sent to the Government printers and we are awaiting promulgation of
them. This was done with the assistance of the Department of Cooperative Governance
and traditional Affairs.
4.6 MANAGEMENT PRACTICES:
The Administration and management of the municipality manages the organisation through
the effective implementation of policies and regulations. All the employees of the
municipality are obliged to comply with all the policies and those that do not comply are
subjected to disciplinary proceedings. During the 2013/14 financial year, four (4) officials
were charged and disciplinary procedures were taken against them.
4.7 SUSPENSIONS (from Disciplinary Hearings)
The municipality did not have any suspensions except one official that was dismissed.
4.8 WORKFORCE CAPACITY DEVELOPMENT
MSA 2000 S68 (1) requires Municipalities to develop their Human Resource capacity
to enable the Municipality to perform its functions effectively as well as utilise its
resources in an economical way with accountability. The Municipality has implemented
the Workplace Skills Plan (WSP) in order to train and develop human resource so that
the Municipality can perform its functions to its full capacity.
STAFF TRAINING:
The budget that was spent by the municipality for staff training is R1006 995.05
STAFF BURSARIES:
The budget that was spent by the municipality for staff bursaries is 95 98.60
COMMUNITY BURSARIES: The budget that was spent by the municipality for community
bursaries is R295 000.00
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4.8.1 SKILLS TRAINING AND DEVELOPMENT
Trained
employees
Courses Name Beneficiaries
Finance
Section
1. MFMP •
•
•
Financial interns
Assistant Manager Income
Senior Payroll Clerk
• Senior Creditors Clerk
• Data Captures x 3
• SCM Manager
• SCM Clerk
• Budget Officer
• Financial Clerk
2. Basic Payroll and • Finance Manager
Advance Payroll
Administration
Section
56/57 1. MFMP ( Municipal • Municipal Manager
Manager) • Chief Financial Officer
2. Sage VIP Payroll (
CFO)
LEGISLATORS
1. Councillors • Executive Committee members Development • All Councillors
Programme • The Speaker, Mayor and Chief Whip 2. Councillors
Induction
3. MFMP
Page 64
Management 1. 2.
MFMP
Performance
Management System
•
•
Internal
Auditor
PMS Officer
Corporate and 1. Health and Safety • HR Clerk
Community 2. Public Participation • Committee officer
Services 3. MFMP • Thusong Manager
4. Human Resource Job
and employee • HR Manager, HR Clerk and HR Officer
management • Secretary to ED Corporate and
5. Minutes Taking and Community Services
Report Writing • Thusong administration Clerks
Receptionist(Ingwavuma)
Technical and 1. Road Construction • Technical Officer
Planning Maintenance and • Junior Town Planner
Repairs • Technical Manager
The Municipal employees attended different courses as indicated below
Municipal Manager attended the Municipal Finance Management Programme
All Finance Section employees has undergone the training of Municipal Finance Management
Programme with an exception of Finance Manager and Manager Reporting and Compliance
The Chief Financial Officer submitted the proof of attendance of the MFMP
Three legislators attended the MFMP and there are no results received
In Management Section, only the Internal Auditor attended the MFMP
Thusong Manager in Corporate and Community Services has attended the MFMP
Page 65
WORKPLACE SKILLS PLAN SUMMARY-2013/ 2014
TOTAL EMPLOYEES
OCCUPATION CATEGORY
FEMALE MALE
TO
TA
L
AGE
GROUPS
TO
TA
L A
G E
PWD
NO
N-
SA
A C I W A C I W
35
a
nd
be
low
35
- 5
5
> 5
5 A C I W
1 3 1
11 - LEGISLATORS 1 0 0 0 5 0 0 0 46 7 29 0 46 0 0 0 0 0
12 - MANAGERS 3 0 0 0 5 0 0 0 8 4 4 0 8 0 0 0 0 0
1
2 - PROFESSIONALS 4 0 0 0 1 0 0 0 15 5 10 0 15 0 0 0 0 0
3 - TECHNICIANS AND
TRADE WORKERS 1 0 0 0 3 0 0 0 4 2 2 0 4 0 0 0 0 0
4 - COMMUNITY AND
PERSONAL SERVICE
WORKERS 1 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0
5 - CLERICAL AND
ADMINISTRATIVE 1 1
WORKERS 5 0 0 0 5 0 0 0 30 18 10 2 30 2 0 0 0 0
6 - SALES AND SERVICE
WORKERS 4 0 0 0 9 0 0 0 13 7 5 1 13 0 0 0 0 0
7 - MACHINERY
OPERATORS AND DRIVERS 0 0 0 0 9 0 0 0 9 4 5 0 9 0 0 0 0 0
2 1
8 – ELEMENTARY 3 1 14
WORKERS 8 0 0 0 2 0 0 0 350 200 8 2 350 0 0 0 0 0
2 1
7 9 21 1
TOTAL 7 0 0 0 9 0 0 0 476 248 3 5 476 2 0 0 0 0
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4.8.2 TOTAL INTERNS FUNDED BY OTHERS
OCCUPATION CATEGORY
FEMALE MALE
TO
TA
L
AGE
GROUPS
TO
TA
L A
G E
PWD
NO
N-
SA
A C I W A C I W
35
and
belo
w
35 -
55
> 5
5
A C I W
2 – PROFESSIONALS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 - TECHNICIANS AND TRADE WORKERS
1 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0
4 - COMMUNITY AND PERSONAL SERVICE WORKERS
1 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0
5 - CLERICAL AND ADMINISTRATIVE WORKERS
9 0 0 0 0 0 0 0 9 9 0 0 9 0 0 0 0 0
6 - SALES AND SERVICE WORKERS
2 0 0 0 2 0 0 0 4 4 0 0 4 0 0 0 0 0
7 – MACHINERY 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
OPERATORS AND DRIVERS 8 – ELEMENTARY WORKERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 TOTAL 3 0 0 0 2 0 0 0 15 15 0 0 15 0 0 0 0 0
4.8.3 TOTAL INTERNS FUNDED BY THE LGSETA
OCCUPATION CATEGORY
FEMALE MALE
TO
TA
L
AGE
GROUPS
TO
TA
L A
GE
PWD
NO
N -
SA
A C I W A C I W
35
and
belo
w
35 -
55
>5
5
A C I w
2 – PROFESSIONALS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 - TECHNICIANS AND TRADE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 - COMMUNITY AND PERSONAL SERVICE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 - CLERICAL AND ADMINISTRATIVE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
6 - SALES AND SERVICE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7 – MACHINERY OPERATORS AND DRIVERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 - ELEMENTARY WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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4.8.4 TRAINING BENEFICIARIES – EMPLOYEES
OCCUPATION CATEGORY
FEMALE MALE
TO
TA
L
AGE
GROUPS
T
TO
TA
L A
GE
PWD
NO
N –
SA
A C I W A C I W
35
and
belo
w
35 -
55
>5
5
A C I W
11 – LEGISLATORS
10 0 0 0
29 0 0 0 39 7 27 5 39 0 0 0 0 0
12 – MANAGERS 2 0 0 0 3 0 0 0 5 1 4 0 5 0 0 0 0 0
2 – PROFESSIONALS 2 0 0 0 5 0 0 0 7 2 5 0 7 0 0 0 0 0
3 - TECHNICIANS AND TRADE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 - COMMUNITY AND PERSONAL SERVICE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 - CLERICAL AND 1 0 0 0 3 0 0 0 14 13 1 0 14 0 0 0 0 0
ADMINISTRATIVE WORKERS
1
6 - SALES AND SERVICE WORKERS
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7 - MACHINERY
OPERATORS AND DRIVERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 - ELEMENTARY WORKERS
1 0 0 0 3 0 0 0 4 0 4 0 4 0 0 0 0 0
TOTAL
2
6 0 0 0
4
3 0 0 0 69 23 41
5 69 0 0 0 0 0
Page 68
4.8.5 TRAINING BENEFICIARIES – UNEMPLOYED
OCCUPATION CATEGORY
FEMALE MALE
TO
TA
L
AGE
GROUPS
TO
TA
L A
G E
PWD
NO
N-S
A
A C I W A C I W
35
and
belo
w
35
- 55
>
>5
5
5
A C I W
1 9 0 2 11 – LEGISLATORS 7 0 0 0 3 0 0 0 200 112 68 0 200 0 0 0 0 0
12 – MANAGERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 – PROFESSIONALS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 - TECHNICIANS AND TRADE WORKERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 - COMMUNITY AND PERSONAL SERVICE WORKERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
5 - CLERICAL AND ADMINISTRATIVE WORKERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 6 - SALES AND SERVICE 9 4 14 6 WORKERS 8 0 0 0 2 0 0 0 240 25 8 7 240 0 0 0 0 0 7 - MACHINERY OPERATORS AND DRIVERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 - ELEMENTARY WORKERS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 1 9 4 21 8 TOTAL 5 0 0 0 5 0 0 0 440 137 6 7 440 0 0 0 0 0
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INFORMATION AND COMMUNICATION TECHNOLOGY
In this unit, there is only one ICT Officer and one ICT Assistant that deals with information
technology for the whole organization; they are also assisted by an external service provider
that has appointed by the Municipality
ADMINISTRATION AND REGISTRY
Administration and Registry is a unit that deals with the general administration of the
municipality. It involves Registry which is solely responsible for records keeping and disposal
to create space for the new records .This is where all incoming and outgoing mail is recorded.
Fleet management is also part of general administration which with management of municipal
fleet to promote effective and efficient service delivery. Our municipality has got one reception
area to direct internal and external communication.
Our Registry has got a challenge water leaking from the roof as well as from the ground which
makes it difficult for the employees to perform their duties during the rainy season. It is also
unhealthy for the documents kept in the registry in the sense that they get damaged. The
management has proposed establishment of a new registry office to protect documents and
employees. There is also a shortage of municipal fleet to satisfy all municipal service delivery
programmes and projects.
DEPARTMENT OF SOCIAL AND ECONOMIC DEVELOPMENT SERVICES
The Department comprises of the following units namely: Thusong Centre, Special Programmes unit, Animal Pound and Cemeteries, Local Economic Development (LED), Tourism and Public
Participation. These units are the face of the municipality when it come s to service delivery in the community although we still have some challenges regarding resourcing in terms of financial, physical and human resource. There is still a shortage of resources to effectively deliver services to the community as well as budget constraints.
ANIMAL POUND AND CEMETERIES
This is the unit that deals with collection of stray animals from public roads and towns for
protection and safe keeping in the animal pound. On arrival at the animal pound all stray
animals get registered in the register. They are well taken care of by the animal pound staff for a
period legislated in the Act No 3 of 2006 as well as Animal By Laws. On release of the animals
they are all paid for and receipts are issued by Cashier.
Cemeteries are but one part of the unit. The municipality has got two cemeteries namely
Mkhuze and Ingwavuma as per the requirement from KwaZulu -Natal Cemetery Act of
1996.The municipality still has four more proposed cemeteries in the following small towns,
namely Ubombo, Jozini, Bhambanana and Ndumo. There is a shortage of human resource to
support the function and land ownership. Transport for stray animals is also a challenge.
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JOZINI THUSONG SERVICE CENTRE
The Jozini Thusong Service Centre is set within the development communication change, which
reflect a democratic approach to a public communication and information system. As it aims to put
the information needs of citizens first in the communication process, this system is to empower the
poor and disadvantaged. Jozini Thusong Service Centre is viewed as a means to operationalize the
development communication approach as well as address information and service imbalances at
local level by bringing government closer to the people.
THE FOLLOWING GOVERNMENT DEPARTMENTS OPERATE AT JOZINI THUSONG SERVICE
CENTRE WHICH WAS LAUNCH ON THE 05 MAY 2011.
DATE OF OCCUPATION NAME OF DEPARTMENT SERVICES RENDERED
JANUARY 2011 INDIPENDENT ELECTORAL COMMISSION
To render free and fair elections, also provide voter education.
APRIL 2011 DEPARTMENT OF LABOUR To provide unemployment related services and other.
MARCH 2012 DEPARTMENT OF SOCIAL DEVELOPMENT
To render developmental social welfare services to the community.
MAY 2012 SOUTH AFRICAN SOCIAL SERVICES AGENCY (SASSA)
To provide child support grant, old age grant and other related services.
THE FOLLOWING DEPARTMENTS OR INSTITUTIONS THAT RENDER MOBILE SERVICES AT
THE CENTRE.
1. SOUTH AFRICAN REVENUE SERVICE (SARS) 2. GOVERNMENT EMPLOYEE PENSION FUND (GEPF).
ACHIEVEMENTS
Since the launch of the Jozini Thusong Service Centres the community of Jozini has
experienced easy access to the most needed services.
People need not have to travel long distances to acquire government services hence the
welfare of this communities has also improved.
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CHALLENGES
The sustainability of the Centre is in question because of the non-availability of lease
agreements for some of this department which Impact negatively on the collection of rent.
2. Limited space at the Centre is compromising the service delivery to the
community. Since all the offices are full now we are unable to attract more
services to the centre.
DEPT OF LABOUR
STATS DEPARTMENT OF HOME AFFAIRS
STATS
Application UIF Ordinary 97 First issue 50
Payments (6A) 402 Passports application 06
Applications (Maternity) 07 ID Collected 109
Applications (illness) 03 Re-issue 20
Applications( Deceased) 03 Birth applications 98
Payments (UI-3) 13 LBB Application for interview 69
Payments (U-I 4) 14 Finger prints taken 106
BMD issued 30
TOTAL 539 TOTAL 488
SOCIAL DEVELOPMENT STATS SASSA STATS
Foster care placement finalized 25 Old age grant 05
Individuals benefited from social relief 84 Child support grant 19
Child placed in foster care with Section
159
01 Foster care grant 05
Clients referred to Home Affairs 07
Clients referred to SASSA 28
ECD closing functions attended by social workers
10
ECD closing function attended by social
worker
03
TOTAL 158 TOTAL 29
Public Participation Unit
Jozini Municipality has a unit called public participation unit. This unit is mainly responsible
for the day to day running of the Speaker’s offices and councillors. Its main purpose is to
build a working relationship between the council and the communities; this relationship is
through the ward councillors and the ward committees. Ward committees serve as the
vehicles of information from the council to the community and from the community to the
council. Jozini Municipality has got 20 wards and under each ward 10 ward committee
members are elected to serve on the structure.
Jozini municipality has trained all the ward committees on 8 skills development modules.
And on day to day they get support from the office of the Speaker. They are also getting
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a stipend of R1000 00 each monthly for easy and smooth running of their programs in
their respective wards.
This unit has developed a public participation plan that the council adopted. This plan
plays a great deal in the IDP processes. It has also developed a ward committee support
plan. This plan serves as a guiding document that the council needs to follows when
dealing with public participation matters.
Forums
This unit is also part and parcel of three forums under uMkhanyakude district and the province
1. Speakers Forum (where the Speakers of 5 sister municipalities meet to discuss
public participation matters since they are the champions of it.)
2. Public participation practitioner’s forum ( 5 sister municipalities under the district)
3. Provincial public participation Forum ( where all KZ municipalities meet to discuss
public participation related matters)
Community satisfactory survey
- Jozini Municipality through this Unit has conducted a community satisfaction survey in all wards.
Ward based plans
- For the IDP to be in line with provincial guide lines this Unit has developed ward based plans for each ward.
SPECIAL PROGRAMMES
The Special Programmes unit deals with a variety of programmes and forums to fast track service
delivery. The unit has a severe shortage of manpower drive different programmes such that
officials run with more than one programme to cover for the needs and demands of the
community in the surrounding. The future plan is that the municipality needs to employ more
employees to improve performance of the special programmes unit . The following are the
Special Programmes
1. HIV/AIDS PROGRAMME
This programme deals mainly with HIV/Aids pandemic that adversely affect socio-
economic conditions of people residing in our municipality and outside the jurisdiction of
the municipality. It deals with the ways and means in which to deal with the pandemic
such that different structures have been established in the municipality to deal with it.
This is done under the auspices of the National, Provincial and municipalities policies
dealing with HIV/Aids. A variety of structures exist such as Ward Aids Councils and Local
Aids Council and these structures report on a monthly basis to inform District(District
Aids Council) and Provincial reports(Provincial Aids Council)
The municipality has in consultation with other stakeholders done different activities to
advocate and promote awareness in order to combat the spread of the disease. Such
activities include Heroes Walk, Prayer Day, and World Aids day.
Operation Sukuma Sakhe (OSS) is also part of Special Programmes as initiated by the
Premier of KZN. This structure is composed of virus sector departments where they all
come together to provide for all community needs) service delivery). The Municipality fully
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supports OSS through the local task team structure. Monthly reports are always submitted
to the District task team (DTT)
War rooms in all wards have been established to promote service delivery
The Municipality has got eight different Forums that assist in the performance of the
municipality as well service delivery.
The women forum as well as youth forum have interalia performed well in satisfying
community needs
Arts & Cultural activities are fully supported by the municipality in promoting cultural values
amongst the community.
Among the activities in which the municipality participate is the Reed Dance ceremony
during the month of September and Amarula (amaganu) which is normally celebrated at
Emachobeni (isigodlo seSilo) during the month of February. We also have the growing
Sakhisizwe ingoma that is attracted many cultural groups from the District and is also
supported by the Municipality.
SALGA games
These games are usually held at different levels extending from ward level up to the
Provincial level, there is a growing number of youth that are keen to participate and develop
their talent in various sport codes. Through SALGA games they get exposed to bigger
teams.
Mayoral Cup
The Mayoral cup starts from Ward level up to the Municipal level and the Teams are
awarded for good performance.
1.PUBLIC SAFETY DEPARTMENT:
Chief Traffic officer
Mr Thabani Mthembu
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Public Safety Department
Emergency Services (Fire Fighters)
Public Safety department is divided into two sections namely: Traffic Law Enforcement and Driving Licence
1.1 TRAFFIC LAW ENFORCEMENT:
This section is responsible for the following activities:
1.1.1 General Law Enforcement e.g. Issuing of Traffic fines and Municipal Bylaws 1.1.2 Ensuring Free Flow of Traffic within the area of jurisdiction
1.1.3 Attending to Traffic Congestions, Obstructions and Accidents
1.1.4 Attending to public complains
1.1.5 Attending to Court proceeding
1.1.6 Safety and Security within the area of jurisdiction
1.1.7 General admin work and daily returns
There is a Shortage of Staff, Traffic Officers and Traffic Wardens.
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SUMMARY FOR 2013/ 2014:
Our Traffic Law enforcement section has performed the following activities during this Period:
Number of Roadblocks 20 Multidisciplinary Road with other stakeholder RTI & SAPS
Number of Fines Issued 2392 Traffic Fines were issued during this PERIOD
Number of Warrants Executed 45 Warrants were successfully executed and paid for Number of Vehicle Suspended 21 Vehicles were suspended
Number of Motorist arrested 47 Motorist were arrested for Drinking & Driving
Total Revenue Generated R 255 570.00
DRIVING LICENCE TESTING CENTRE
Jozini Driving Licence Testing Centre is responsible for the following transactions:
1.1.1 Booking and Testing the applicants for learners licences Oral & Computerised Test
1.1.2 Issuing of Learners Licences to the applicant who has passed their test
1.1.3 Renewal of Driving Licences
1.1.4 Issuing of Temporal Driving Licences
1.1.5 Conversion of International Driving Licence into RSA Driving Licences
1.1.6 Application and issuing of Professional Driving Permits
1.1.7 Application for Traffic Register number
1. BOOKING
ITEMS
LEARNERS LICENCE BOOKINGS
DRIVERS LICENCE CARD RENEWALS AND PRDP RENEWALS
APPLICATION OF PRDP
2. LEARNERS LICENCES
DISCRIPTION NUMBER ORAL
NO. OF
APPLICATIONS
2114 40
PASSED 995 33 FAILED 1038 7
FTA 81 0
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3. DRIVERS LICENCE RENEWALS
DRIVERS LICENCE CARD& PRDP RENEWALS
1348
PRDP APPLICATION 681
TEMPORAL DRIVERS LICENCE ISSUED
660
LEANERS LICENCE DUPLICATES 50
AMOUNT GENERATED R 877 240.00
4.9 Jozini Library Services Information Literacy
Inter- Library Loan
Short Loans
Mobile Library
E-learning
Video Library
Book Club
Gaming @ Library
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1. Information Literacy
Its contains information resource such as: dictionaries
: Encyclopedias
: Atlases
: Books
: Periodicals
: Maps
: Internet
: Archived materials
Legal and ethical use of materials : Copyright act
: Plagiarism
Displays & Exhibitions: eye catching with relevant topics/ subjects
Library Orientation, covers the following : In-house activities
: References
: Library orientation vide
2. E-learning
To retrieve on-line learning materials (include old exam papers)
To develop the use of educational technology tools
To help on development of patrons in educational use of technology strategies and tools
Helping patrons on how to electronic mails and other social networks
Library user doing online searching
Below is one of our regular user at Jozini library learning basic computer skills, she is taught by
library Cyber Cadet.
We also had students from Unisa who doing online registration (+/-200). We also had +/-150
students of North West (open learning programme) who were doing online examinations. 10
learners were assisted to apply online in NFSAS bursary scheme
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Library assistant with grade 6 learners during the outreach programme at Majozini Primary
School. He encourages the learners about importance of education. The visits took place in
June 2014.
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Library during opening hours
TEACHERS FROM DIFFERENT SCHOOLS ARE ALSO PART OF OUR LIBRARY
Ms. Anitta van der Merwe (Jozini Primary School) visited our library to check library materials for her
school projects.
Library during open hours
Library users during weekends whereby local school visits the library to do their school
project, the picture below shows library patrons during examination period in November
2014. Most of the patrons were grade 12 learners.
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3. Video Library
Video tapes of variety subjects for purpose of learning, teaching, research and recreation.
Big screen viewing for bigger groups. (book in advanced members only)
Headphones for individual usage also available
In October 2014 Mhlekazi Primary School visited library to use these facilities about 160
learners whereby library orientation programme, which includes the services that are being
provided by Jozini Library
4. Short Loans
This is for specifically academic students and grade 12 learners. These materials are tertiary
books, journals CD ROMs etc.
Duration of these materials on has the maximum of 2 days
5. Inter –Library Loan
It’s the request of the material from other sister libraries, academic libraries, regional depot
and reference depot.
Its take 2 weeks to receive books from these libraries
It has the duration of 4 weeks to patron
NB: no payments for this services
6. Mobile Library
Information literacy training in local schools
Marketing and promoting of library services
Database searches
General enquiries
7. Gaming @ your Library
Below picture are Imbuyiselo Primary School learners doing the following activities in
the library as part of ECD (early childhood development)
Color-in activity
Informative snake & ladder
Story telling
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Book club
Reading club ( encourages culture of reading & writing in the community)
It also encourages study groups amongst learners
It also helps socio development on literacy among its members
Fun reading activities are also encouraged
Photocopying & printing
Photocopying & printing for patrons are done
Copyright
All users who make photocopies are expected to adhere to the SA Copyright Act 98 of 1978 (as
amended). Complying with copyright law at self-service machines is the responsibility of the library
user and not the Library
"Plagiarism is the theft and use of the ideas, material and other intellectual property of others
that are passed off as one’s own.
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13. Information Communication Technology
Cyber cadet (Mr Sihle Zulu) helps the general community members to understand the
technological concepts of computers such as Wi-fi, social networks, internet etc
Cyber cadet also teach the organized groups basic computer skills i.e MS Word, Excel &
Power Point
The picture below shows Jozini library during school visits at Ifalethu High School in
KwaJobe area. Library staff visited Zwilenkosi Secondary School and Siqakatha Primary
School as part of community outreach.
CAO forms and tertiary handbooks were given to grade 12 learner and other educational
activities were done with learners. We also assist the learners on how access information
easily at Jozini Public library.
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Library Outreach Programme
Library material usage
During the period of 2013/ 2014 in Jozini, the library usage by patrons increased, in
particular the youth on non-fiction section and adult section, and some members of the
community are doing distance learning education
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Library also provides career guidance in particular on grade 12 learners on the
following fields by providing information in these fields
Engineering –aeronautical, agricultural engineer, biomedical engineer, chemical engineer,
civil engineer, electrical engineer, industrial engineer, information engineer, mechanical
engineer, metallurgical engineer, mining engineer & artisan
Mathematics -actuary, bio-methematician, chartered accountant, cost estimator, computer
system analyst, lecturer, insurer, statistician, meteorologist, software engineer, research
scientist & teacher
Earth sciences -climatologist, ecologist, geologist, rock engineer, paleontologist,
oceanographer, soil scientist, water & environmental scientist
Other –librarian, lawyer, police, nurse, social worker, doctor, IT officer, psychologist,
therapist, pharmacist, school teacher, administrators, civil engineer, millwright, welder etc
Mini Library for Blind
On the 14th October 2014 Ms Lindiwe Chirwa from South African Library for Blind
trained 8 blind people did training on how to use Victor Reader Machine, Document
Reader, Braille Books . These are local people who have sight impaired.
NB : library provide braille books, Victor machine and talking books for blind people.
New Books
In 2014 about 1300 new books that were received from Department of Arts & Culture, on the
following classes.
Zulu Fiction books , Adult Afrikaans Fiction books , Adult English Fiction books , Young Adult
English Fiction book , Large Print English fiction was , Large Print Afrikaans was , Easy
0100200300400500600700
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Reading English were , Picture books were , Juvenile English Fiction were , Juvenile Zulu
Fiction was , Non Fiction books were ( incl. academics books ), DVD .
Challenges
Satisfying the information needs of the community
Reaching out to the marginalized sectors of our community.
Consistent update of the community and organizations about library matters
Latest editions of academic books
Library staff structure
Librarian
Library assistant
Library assistant
General worker
(cleaner)
General worker
(cleaner)
General worker
(gardener)
Library Cyber Cadet
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Jozini Public Library
DISASTER MANAGEMENT UNIT.
Disaster management deals mainly with incidents that occur in various communities within the
jurisdiction of the municipality and it comprises of Disaster management and Fire Fighters. There is
one Disaster Officer, and eight (8) Fire Fighters to assist the municipality in case of incidents. The
unit has minimal resources to manage disaster incidents and this supposes that we need a well-
resourced store room with highly skilled human resource to face the ever increasing disaster
incidents as well as to keep relief stock. Awareness campaigns during IDP processes are conducted
to educate communities about disaster issues and how to survive disasters as well as veld fires and
drowning. The municipality is sensitive and normally respond positively to disaster incidents to
support the affected communities .The Department of Cooperative Governance and Traditional
Affairs (Cogta) and District municipality also support the municipality to deal with incidents. They
also provide capacity building.
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DISASTER INCIDENTS
ward 14 veld fire ward 11 candle fire
Ward 13 unknown cause Ward 5 candle fire
Ward 9 fire incident ward 13 unknown cause of fire
ward 2 fire incident Ward 2 fire incident
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Ward 2 affected room Ward 2 survived and affected room
Ward 14 affected room Ward14 affected and survived room
Ward 8 affected room Ward 8 survived rooms
Ward 18 affected room ward 18 affected room and place
Ward 18 affected room ward 18 survived rooms
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Ward 18 affected room and survived room
Ward 18 affected area by veld fire ward 18 affected area
Ward 17 damaged house by unknown cause of fire
Ward 5, Gina family affected by house fire and four children died on the spot
Ward4, Nkwanyana family affected by house fire. There was no injury
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LOCAL ECONOMIC DEVELOPMENT (LED)
Local Economic Development comprises of three focus areas, namely Agriculture, Tourism and
Business to improve the socio economic conditions of the people and eradicate poverty. It is the
cornerstone for creating a conducive environment for economic growth of the municipality.
Programmes that compose the unit are Poverty Alleviation projects that are implemented in all wards,
Tourism projects and programmes and Business development programmes.
In Tourism projects and programmes there is Tourism awareness, Community Tourism
organisations, Tourism Fora and Tourism marketing and Promotion under the Business and
development programme we have Cooperative development and support, SMME’s and the Informal
Economy
The unit is composed of five staff members and three Interns. The challenge faced by the unit
regarding catalytic projects is funding.
There are challenges that impact negatively on performance of the unit such as capacity building
programme, shortage of human resource.
The future plans are to source funding and organize capacity building programmes as well as filling
all the vacant positions.
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CHAPTER 5 – FINANCIAL PERFORMANCE
5.1 FINANCIAL INFORMATION
Statement of Financial Performance
Figures in Rand Note(s) 2014 2013
Revenue
Revenue from exchange transactions
Service charges 13 3 389 418 1 992 983 Rental of facilities and equipment 765 640 595 073 Licences and permits 863 361 730 650 Interest earned on overdue account 6 095 894 5 118 552 Other income 15 2 806 517 2 018 841 Interest received – investment 2 011 226 2 715 312
Total revenue from exchange transactions 15 932 056 13 171 411
Revenue from non-exchange transactions
Taxation revenue
Property rates
12
12 904 241
11 910 914 Transfer revenue
Government grants & subsidies
14
129 984 515
118 420 966 Fines 1 199 370 236 875 Transfer of halls - 5 839 066
Total revenue from non-exchange transactions 144 088 126 136 407 821
Total revenue 11 160 020 182 149 579 232
Expenditure
Personnel
17
(29 730 493)
(30 465 754) Remuneration of councilors 18 (9 811 181) (7 660 908) Depreciation and amortization 32 (12 697 832) (11 213 362) Finance costs 19 (125 000) (470 125) Debt impairment 30 (2 540 008) (563 124) Allowance for Debt Impairement (14 553 603) (15 985 944) Repairs and maintenance (10 063 317) (3 033 845) Contracted services 33 (4 799 086) (3 191 815) Grants and subsidies paid 21 (4 609 770) (12 581 756) Cost of housing sold - (407 772) General Expenses 16 (55 666 173) (36 533 247)
Total expenditure (144 596 463) (122 107 652)
Operating surplus 15 423 719 27 471 580 Acturial (Gain)/Loss 550 000 -
Surplus for the year 15 973 719 27 471 580
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The surplus for the year is R15,973,719. This represents a 41.85% decrease when compared to the previous year. The significant decrease is primarily due to 220% increase in repairs and maintenance. The Municipality engaged in renovation of halls . Another notable increase in expenses is general expenses which constitute among other expenses, poverty alleviation projects of R12,000,000. Employee related costs decreased from R30,465,754 to R29,730,493 in the current year. GRANTS
The municipality has received grant funding from the National Treasury as well as COGTA.
These grants can be classified as follows: Non-Conditional Grant, Equitable Share and Conditional Grants
(i) Municipal Infrastructure Grant (ii) Finance Management Grant (iii) Municipal Systems Improvement Grant (iv) Small Towns Rehabilitation Grant (v) Sports field Maintenance Grant (vi) Fresh Produce Market (vii) Library Grant (viii) Expanded Public Works Programme (ix) Department of Human Settlement (x) National Electrification Program Grant (xi) Sports and Recreation The following unspent grants remain liabilities but the project was completed and an application was submitted to COGTA to utilize the balance of funds for the project of the similar nature, and will be followed up.
(i) Area 17 water schemes (ii) Ndumo Sportsfield (iii) Establishment of internal control unit (iv) Ward committee induction meeting (v) Municipal housing sector plan (vi) Jozini upgrading project (vii) Jozini value adding (viii) Bhambanana town formalization (ix) Synergistic approach (x) Ubuhle besiko cultural village (xi) Bhajana Road (xii) Umnothophansi Ndumo and maize milling project (xiii) Library grant (xiv) IDP Grant (xv) Development of recycling centre (xvi) LG Expert (xvii) DBSA Contribution (xviii) Implementation of pound (xix) Supply of solar, water, and gyser (xx) Housing Grant
Page 93
The total unspent grants with no movement from the last financial year amounts to R2 896 605
With the exception of MSIG, FMG and electrification; most of grants were spent to 100% as at 30 June 2014. This is a huge
improvement within the municipality. The 100% expenditure on the MIG grant specifically speaks directly to improved service
delivery.
Figures in Rand 2014 2013
Government grants and subsidies
Operating grants
Equitable share 83 913 176 70 314 944 FMG 1 601 754 1 636 381 Fresh produce market 632 331 780 196 LGWSETA - 317 128 Library grant 1 081 683 1 150 116 MSIG 870 860 939 095 Supply of water - 1 753 097 School crossing - 13 740 Synergetic services - 3 658 Jozini Town formalization 2 163 599 849 236 Implementation of KZN Pound Act 23 102 775 558 EPWP 1 000 000 -
91 286 505 78 533 149
Capital grants
National Electrification Program Grant
4 449 504
7 385 690 MIG 31 761 175 32 495 354 Sports and Recreation 2 487 331 6 773
38 698 010 39 887 817
129 984 515 118 420 966
GRANT PERCENTAGE OF BUDGET SPENT
MSIG 98%
FMG 97%
EPWP 100%
LIBRARY 75%
MIG 100%
INEG 52%
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UNSPENT GRANTS
Figures in Rand 2014 2013
Unspent conditional grants and receipts
Unspent conditional grants and receipts comprises of:
Unspent conditional grants and receipts
Housing grant 83 492 83 492 MIG - 81 364 Area 17 water scheme 521 807 521 807 Ndumo sport field 721 230 1 203 736 Internal control unit 150 000 150 000 Ward committee induction training 23 355 23 355 Municipal housing sector plan 11 775 11 775 Jozini upgrading projects 107 606 107 606 Fresh produce market 234 683 867 014 Bhambanana town formalization 69 365 69 365 Synegistic program 7 224 7 224 Ubuhle besiko cultural village 69 700 69 700 Bhanjana road 624 412 624 412 Umnothophansi 1 184 150 1 184 150 Library grant 222 306 416 789 IDP Grant 240 240 MSIG 19 140 269 FMG 48 246 404 National electrification grant 164 807 9 671 450 Development of recycling centre 10 730 10 730 LG Expert 22 384 22 384 Jozini town formalization 1 758 152 3 921 752 DBSA contribution for plan 10 365 10 365 Implemantation of pound 51 652 74 754 Supply of solar water gyser 2 312 102 2 312 102
8 428 923 21 446 239
Above is the list of unspent grants for 2013 2014 and 2014 2015.
5.2 DEBTORS
Debtors have increased from the prior year; 2013. Debt collection is still a problem within the municipality
emanating from a general culture of none payment within the South African Communities. A vast majority of
the municipality’s debtors are businesses, individual households and Ingonyama Trust Board.
The municipality is grappling with generating its own revenue and hence relies heavily on grants.
Land under the jurisdiction of Jozini Municipality is owned by the Ingonyama Trust Board and
ratepayers are reluctant to pay and are complaining of having to pay both the ITB and the
Municipality. We are in a process of developing a revenue enhancement strategy to enhance our
self-generated revenue, we will also embark on a process of data cleansing exercise and
thereafter we will consider engaging the services of the debt collector to improve our collection
rate.
Page 95
Figures in Rand 2014 2013
Receivables from exchange transactions
Trade debtors 11 305 756 10 643 030 Rentals debtors 943 926 520 716 Allowance for debt impairment (12 109 203) (8 369 308)
140 479 2 794 438
Receivables from non-exchange transactions
Rates Debtors
35 591 317
25 832 003 Councilors Debtors 9 000 9 000 Staff Debtors 3 832 3 832 Traffic Debtors 943 650 - Allowance for debt impairment (29 784 096) (20 148 962)
6 763 703 5 695 873
Rates Current (0 -30 days)
2 231 725
1 619 775
31 - 60 days 1 255 777 911 437 61 - 90 days 1 168 981 848 441 91 - 120 days 2 102 810 1 526 209 121 - 365 days 28 832 024 20 926 141
35 591 317 25 832 003
Refuse removal Current (0 -30 days)
263 426
379 947
31 - 60 days 13 332 213 794 61 - 90 days 157 225 199 017 91 - 120 days 284 178 197 444 121 - 365 days 408 085 3 986 873 > 365 days 12 746 137 5 665 955
13 872 383 10 643 030
Councillors debtors > 365 days
3 832
3 832
Summary of debtors by customer classification
Balance at beginning of the year
(20 148 962)
(9 702 735) Contributions to allowance - (10 446 227)
VAT receivable
VAT
1 511 623
2 502 866
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TOP 5 DEBTORS
Account Number Property Describtion Balance
405001162 Ingonyama Trust- Trustees R 6 531 768.78
405001161 Ingonyama Trust-Trustees R 4 496 679.34
405001155 Ingonyama Trust-Trustees R 2 117 706.23
508031016 Regional Land Affairs R 1 602 413.59
600020035 Tiger Lodge R 1 361 161.79
ASSESSMENT BY THE ACCOUNTING OFFICER ON ANY ARREARS ON MUNICIPAL
TAXES AND SERVICE CHARGES
Debt collection has improved over the past two financial years within Jozini Municipality. However
much still needs to be done in order to eliminate long outstanding debts. More than 70% of the
outstanding debtors are more than 180 days in age.
The municipality will engage strategies and the services of debt collectors in order to recoup the
long outstanding debts. This will somewhat improve revenue collection.
5.4 SUPPLY CHAIN MANAGEMENT
The supply chain Management Policy was not in line with Treasury Regulations and hence some of the
Municipality procurements were irregular. We have revised the supply chain policy, with the assistance
of Provincial Treasury to align it to Treasury regulations in particular the thresholds. Bid committees
were also not properly constituted and we have reshuffled especially the Bid Adjudication Committee.
We have also embarked on the intensive training and workshop that relates to SCM compliance issues
for Councillors and Officials to ensure the procurement processes that is in line with SCM Regulations
and policies. The SCM registers will be updated on the monthly basis and also proper control will be
put in place to curb irregular, fruitless &wasteful expenditure and unauthorized expenditure. The
information will be submitted to Council for noting and a formal application for condonation will be
lodged with the MEC for COGTA.
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5.5 GRAP COMPLIANCE In the current year, the municipality has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations:
Standard/ Interpretation:
Effective date:
Years beginning on or after
• GRAP 25: Employee benefits 01 April 2013
• GRAP 1 (as revised 2012): Presentation of
Financial
01 April 2013
Statements
• GRAP 3 (as revised 2012): Accounting Policies,
Change in
01 April 2013
Accounting Estimates and Errors
• GRAP 9 (as revised 2012): Revenue from
Exchange
01 April 2013
Transactions
• GRAP 13 (as revised 2012): Leases 01 April 2013
• GRAP 16 (as revised 2012): Investment Property 01 April 2013
• GRAP 17 (as revised 2012): Property, Plant and
Equipment
01 April 2013
• GRAP 31 (as revised 2012): Intangible Assets
(Replaces
01 April 2013
GRAP 102)
• IGRAP16: Intangible assets website costs 01 April 2013
•
87IGRAP1 (as revised 2012):Applying the
probability test on initial recognition of revenue
01 April 2013
The municipality has not applied the following standards and interpretations, which have been published and are mandatory for the municipality’s accounting periods beginning on or after 01 July 2014 or later periods:
Standard/ Interpretation: Effective date:
Years beginning on or after
GRAP 20: Related parties 01 April 2014
GRAP108: Statutory Receivables 01 April 2015
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5.6 CASH FLOW MANAGEMENT
Cash Flow Statement
Figures in Rand Note(s) 2014 2013
Restated*
Receipts
Sale of goods and services 1 296 735 1 992 983 Grants 126 097 766 118 497 743 Interest income 2 011 226 2 715 312 Other receipts 17 948 333 14 982 460
147 354 060 138 188 498
Payments
Employee costs (37 355 859) (40 245 884) Suppliers (61 449 213) (7 321 860) Finance costs (125 000) (470 125) Other payments (11 379 604) (12 852 783) Other cash item (12 153 222) (23 824 281)
(122 462 898) (84 714 933)
Net cash flows from operating activities 25 24 891 162 53 473 565
Cash flows from investing activities
Purchase of property, plant and equipment
6
(46 278 954)
(60 768 924)
Proceeds from sale of property, plant and equipment 6 - 591 690 Purchase of other intangible assets 7 (77 510) (233 139)
Net cash flows from investing activities (46 356 464) (60 410 373)
Cash flows from financing activities
Deposit & Refund
18 044
-
Net increase/(decrease) in cash and cash equivalents
(21 447 258)
(6 936 808)
Cash and cash equivalents at the beginning of the year 30 088 577 37 025 385
Cash and cash equivalents at the end of the year 5 8 641 319 30 088 577
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Cash and cash equivalents has decreased from R30, 088,577 to R8,641, 319 in the current year. This is primarily due to an increase in payments to suppliers from R7, 321,860 to R61,449,213 in the current year. 5.7 ASSET MANAGEMENT
Each Head of Department is responsible for the safe keeping of any fixed asset
controlled by his or her Department. The Budget and Treasury office is responsible
for keeping a fixed asset register which has all details of the assets of the
Municipality. The Municipality has employed an Asset Management Officer who is
responsible for updating the fixed asset register. The asset Management officer
reports to the Manager for Reporting and compliance, who in turn reports to the Chief
Financial Officer. The Municipality has consultants, AB projects, who assist the
Municipality in among other things, the valuation of assets and keeping an updated
and GRAP compliant fixed asset register. The Municipality is also guided by the its
asset management policy on issues related to assets, particularly the recognition of
assets, procedures to be followed in a case of a loss, theft, destruction or impairment
of assets.
All the fixed assets of the Municipality are insured by Indwe Risk.
5.8 CREDITORS
To ensure efficiency in payment of creditors, the municipality pays twice per month, the
15th and 30th of every month to comply with section 65 of the MFMA.
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CHAPTER 6 – AUDITOR GENERAL REPORT
AUDIT OPINION
The Municipality has regressed from an unqualified with findings audit opinion to a
disclaimer audit opinion. An action plan to address audit findings has been
developed and its attached and we have already started with the implementation to
improve the audit outcome. Our target is an improved audit opinion in the year
2014/2015.
REPORT OF THE AUDITOR-GENERAL TO THE KWAZULU – NATAL PROVINCIAL
LEGISLATURE AND COUNCIL ON JOZINI MUNICIPALITY
REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I was engaged to audit the financial statements of the Jozini Municipality set out on pages … to …, which comprise the statement of financial position as at 30 June 2014, the statement of financial performance, statement of changes in net assets, the cash flow statement and the statement of comparison of budget information with actual information for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.
Accounting officer’s responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Local Government: Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2013 (Act No. 2 of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility
3. My responsibility is to express an opinion on the financial statements based on conducting the audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Because of the matters described in the basis for disclaimer of opinion paragraphs, however, I was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
Basis for disclaimer opinion
Property, plant and equipment
4. The municipality did not review the residual values and useful lives of property, plant and equipment (PPE) in accordance with GRAP 17 Property, plant and equipment. Consequently, PPE stated at R212,39 million and its related expenditure was misstated by an undetermined amount. I was not able to determine the correct net carrying amount of PPE, as it was impracticable to do so.
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Revenue from non-exchange transactions
5. I was unable to obtain sufficient appropriate audit evidence that management had properly accounted for all grant revenue for the current and prior year, due to the status of the accounting records. I was unable to confirm the grant revenue by alternative means. Consequently, I was unable to determine whether any adjustment to grant revenue stated at R131,13 million and the related unspent conditional grant liability stated at R8,43 million in the financial statements was necessary.
6. The municipality did not recognise all outstanding amounts meeting the definition of revenue, in accordance with GRAP 23 Revenue from non-exchange transactions. As the municipality did not maintain adequate records of property rates charged, I was not able to determine the full extent of the misstatement of revenue, as it was impracticable to do so.
Irregular expenditure
7. The municipality made payments in contravention of the supply chain management requirements that were not included in irregular expenditure amounting to R93,04 million in note 27 to the financial statements. As the municipality did not have adequate controls in place and did not maintain complete records and schedules, misstatements were identified during the audit. These misstatements were not adequately adjusted and no evidence was provided that the entire population had been evaluated. I was not able to determine the full extent of the impact on irregular expenditure, as it was impracticable to do so.
Expenditure
8. I was unable to obtain sufficient appropriate audit evidence that management had properly accounted for all expenditure for the current year, due to the status of the accounting records. I was unable to confirm the expenditure by alternative means. Consequently, I was unable to determine whether any adjustment to expenditure stated at R75,14 million in the financial statements was necessary.
Employee Costs
9. System errors resulted in material differences between the payroll system, general ledger, trial balance and the financial statements of the municipality Consequently, I was unable to confirm whether the financial statements are fairly presented due to the effect of the errors. Furthermore, I was unable to obtain sufficient appropriate audit evidence that management had properly accounted for all employee costs for the current year, due to the status of the accounting records. I was unable to confirm the employee costs by alternative means. Consequently, I was unable to determine whether any adjustment to employee costs stated at R29,73 million in the financial statements was necessary.
Payables
10. The municipality did not recognise all outstanding amounts meeting the definition of a liability, in accordance with GRAP 1 Presentation of financial statements. As the municipality did not maintain adequate records of retentions held at year-end. Consequently, retentions of R14,51 million disclosed as part of payables in note 8 to the financial statements was misstated by an undetermined amount. I was not able to determine the full extent of the misstatement of payables, as it was impracticable to do so.
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Receivables and impairment
11. Included in trade receivables is an impairment provision of R41,89 million as disclosed in note 2 and 3 to the financial statements, which does not agree to the schedule amounting to R43,07 million. The municipality did not calculate the provision based on the risk profile of each debtor. I was unable to confirm the impairment provision by alternative means. Consequently I was unable to determine whether any adjustment to the trade receivables stated at R6,90 million in the financial statements was necessary.
12. The municipality did not recognise value added tax (VAT) on the accrual basis as required by GRAP 1 Presentation of Financial Statements. VAT was incorrectly recognised on the payments basis. As the municipality did not maintain adequate records of VAT, I was not able to determine the full extent of the misstatement of receivables, as it was impracticable to do so.
Commitments
13. I was unable to obtain sufficient appropriate audit evidence that management had properly accounted for all commitments for the current year, due to the status of the accounting records. I was unable to confirm the commitments by alternative means. Consequently, I was unable to determine whether any adjustment to commitments stated at R4,15 million in note 34 to the financial statements was necessary.
Employee benefit obligation
14. I was unable to obtain sufficient appropriate audit evidence that management had properly accounted for the employee benefit obligation, due to the status of the accounting records as information was not provided to support the valuation calculation prepared by the management expert. I was unable to confirm the employee benefit obligation, by alternative means. Consequently, I was unable to determine whether any adjustment to the employee benefit obligation, stated at R1,30 million in the financial statements was necessary.
Disclaimer of opinion
15. Because of the significance of the matters described in the basis for disclaimer of opinion paragraphs, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, I do not express an opinion on the financial statements.
Additional matter
16. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited disclosure notes
17. In terms of section 125(2)(e) of the MFMA the municipality is required to disclose particulars of non-compliance with the MFMA. This disclosure requirement did not form part of the audit of the financial statements and accordingly I do not express an opinion thereon.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
18. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings on the reported performance information against predetermined objectives for selected objectives presented in the annual performance report, non-
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compliance with legislation as well as internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.
Predetermined objectives
19. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected objectives presented in the annual performance report of the municipality for the year ended 30 June 2014:
KPA2: Improved Service Delivery and Infrastructure Investment on pages x to x
KPA3: Sustainable Economic Development on pages x to x
KPA5: Municipal Financial Viability and Management on pages x to x
KPA6: Spatial Planning and Environmental Management on pages x to x
20. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
21. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned objectives. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).
22. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
23. The material findings in respect of the selected objectives are as follows:
Improved Service Delivery and Infrastructure Investment, Sustainable Economic
Development, Municipal Financial Viability and Management and Spatial Planning
and Environmental Management
Usefulness of reported performance information
Consistency of objectives, indicators and targets
24. Section 41(c) of the Municipal Systems Act, 2000 (Act No. 32 of 2000 (MSA) requires the integrated development plan (IDP) to form the basis for the annual report, therefore requiring consistency of objectives, indicators and targets between planning and reporting documents. A total of 100% of the reported objectives, indicators and targets were not consistent with those in the approved IDP. This was due to senior staff at the municipality not being aware of the contents of the IDP, their responsibilities in terms of performance reporting and the lack of understanding and implementation of the performance management system, MSA and the National Treasury Framework for Managing Programme Performance Information (FMPPI).
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Measurability of indicators and targets
Performance targets not specific, measurable and time bound and indicators not
well defined and verifiable
25. The FMPPI requires the following:
Performance targets must be specific in clearly identifying the nature and required level of performance. A total of 100% of the targets were not specific.
Performance targets must be measurable. I could not measure the required performance for 100% of the targets.
The period or deadline for delivery of targets must be specified. A total of 100% of the targets were not time bound.
Performance indicators must be well defined by having clear data definitions so that data can be collected consistently and is easy to understand and use. A total of 100% of the indicators were not well defined.
Performance indicator must be verifiable, meaning that it must be possible to validate the processes and systems that produced the indicator. A total of 100% of the indicators were not verifiable.
26. This was due to a lack of proper systems and processes and formal standard operating procedures or documented system descriptions.
Relevance of indicators
Performance indicators not relevant
27. The FMPPI requires indicators to relate logically and directly to an aspect of the auditee’s mandate and the realisation of strategic goals and objectives. A total of 100% of the indicators did not relate logically and directly to an aspect of the auditee’s mandate and the realisation of strategic goals and objectives as per the five-year IDP. This was because proper performance planning and management practices had not been developed and implemented to provide for the development of performance indicators and targets included in the IDP.
Reliability of reported performance information
Validity, accuracy and completeness
28. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. I was unable to obtain the information and explanations as to the selected indicators and targets I considered necessary to satisfy myself as to the reliability of the reported performance information. The auditee’s records did not permit the application of alternative audit procedures. This was due to limitations placed on the scope of our work by the absence of information systems, lack of proper record keeping and no employee responsible for managing performance information.
Additional matter
29. I draw attention to the following matter below. This matter does not have an impact on the predetermined objectives audit findings reported above.
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Achievement of planned targets
30. Refer to the annual performance report on pages x to x for information on the achievement of the planned targets for the year. This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information for the selected objectives reported in paragraphs x to x of this report.
Compliance with legislation
31. I performed procedures to obtain evidence that the municipality had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:
Strategic planning and performance management
32. The annual performance report for the year under review did not include a comparison with the previous financial year as required by section 46 (1)(b) of the MSA.
Annual financial statements
33. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 122 of the MFMA. Material misstatements identified by the auditors in the submitted financial statements were not adequately corrected and the supporting records could not be provided subsequently, which resulted in the financial statements receiving a disclaimer audit opinion.
Procurement and contract management
34. Sufficient appropriate audit evidence could not be obtained that goods and services with a transaction value of below R200 000 were procured by means of obtaining the required price quotations, as required by Supply Chain Management (SCM) regulation 17(a) and (c).
35. Sufficient appropriate audit evidence could not be obtained that goods and services of a transaction value above R200 000 were procured by means of inviting competitive bids, as required by SCM regulation 19(a).
36. Invitations for competitive bidding were not always advertised for a required minimum period of days, as required by SCM regulation 22(1) and 22(2).
37. Sufficient appropriate audit evidence could not be obtained that contracts and quotations were awarded only to bidders who submitted a declaration on whether they are employed by the state or connected to any person employed by the state, as required by SCM regulation 13(c).
38. The performance of contractors or providers was not monitored on a monthly basis, as required by section 116(2)(b) of the MFMA.
39. The contract performance and monitoring measures and methods were insufficient to ensure effective contract management, as required by section 116(2)(c) of the MFMA.
40. Persons in the service of the municipality who had a private or business interest in contracts awarded by the municipality did not disclose such interest, as required by SCM regulation 46(2)(e) and the code of conduct for councillors issued in terms of the MSA.
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Human resource management and compensation
41. Sufficient appropriate audit evidence could not be obtained that the annual report of the municipality reflected information on compliance with prescribed minimum competencies as required by the Regulations on Minimum Competency Levels regulation 14(2)(b).
42. Sufficient appropriate audit evidence could not be obtained that the competencies of financial and supply chain management officials were assessed in a timely manner in order to identify and address gaps in competency levels as required by the Municipal Regulations on Minimum Competency Levels regulation 13.
43. Sufficient appropriate audit evidence could not be obtained that the municipality submitted a report on compliance with prescribed competency levels to the National Treasury and relevant provincial treasury as required by the Regulations on Minimum Competency Levels regulation 14(2)(a).
Expenditure management
44. Sufficient appropriate audit evidence could not be obtained that payments from the municipality's bank account were approved by the accounting officer and the chief financial officer, as required by section 11(1) of the MFMA.
Conditional grants received
45. Sufficient appropriate audit evidence could not be obtained that the Municipal Infrastructure Grant (MIG), Municipal Systems Improvement Grant (MSIG) and Local Government Financial Management Grant (LGFMG) allocations, were spent in accordance with the applicable grant framework, section 16(1) of the DoRA.
Consequence management
46. Unauthorised and irregular expenditure incurred by the municipality was not investigated to determine if any person is liable for the expenditure, as required by section 32(2)(a)(ii) of the MFMA.
47. Irregular expenditure was not always recovered from the liable person, as required by section 32(2) of the MFMA.
48. Council certified irregular expenditure as irrecoverable without having conducted an investigation to determine the recoverability of the expenditure, in contravention of section 32(2)(a)(ii) of the MFMA.
49. Allegations of fraud, corruption, favouritism, unfair or irregular practice and failure to comply with the supply chain management system laid against officials were not investigated by the accounting officer, as required by Municipal supply chain management regulation 38(1)(b).
Waste management
50. The municipality operated their waste disposal site without a waste management licence or permit in contravention of section 20(b) of the National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEMWA) and section 20(1) of the Environmental Conservation Act, 1989 (Act No. 73 of 1989).
Internal control
51. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the basis for disclaimer of opinion, the findings on the
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annual performance report and the findings on compliance with laws and regulations included in this report.
Leadership
52. The leadership did not implement effective oversight over the review of the financial statements and annual performance report prior to submission for audit. Furthermore, compliance with laws and regulations was not effectively monitored by leadership throughout the financial year.
Financial and performance management
53. Senior management did not implement proper record keeping to ensure that information was accessible and available to support financial and performance reporting. The ineffective monitoring of compliance with laws and regulations and with municipal policies and procedures resulted in errors in daily and monthly processing and reconciling of financial and performance information. These errors were not detected and corrected on a timely basis, resulting in material misstatements in the financial statements and the annual performance report.
Governance
54. The municipality did not effectively implement the recommendations of internal audit and audit committee.
OTHER REPORT
Investigation
55. The municipality performed an investigation which covered the period 1 July 2013 to 30 June 2014. The investigation was initiated based on an allegation of possible misappropriation of the municipality’s assets. The outcome of the investigation is expected by January 2015.
Pietermaritzburg
28 November 2014
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CHAPTER 7 – Annexures
ANNEXURE A – Audited Financial Statements
ANNEXURE B – Auditor General Audit Report
ANNEXURE C – Auditor General Audit Queries - Action Plan
ANNEXURE D – Organisational Scorecard
CHAPTER 8 - ACRONYMS AND ABBREVIATIONS
AFS - Annual Financial Statements AG Auditor -General
CIP - Consolidated Infrastructure Plan COGTA Corporative Governance and
Traditional Affairs
CPMD - Certificate Programme in Management Development DOT Department Of
Transport
EXCO - Executive Committee IDP Integrated Development Plan
IGR - Intergovernmental Relations LGSETA Local Government Sectoral
Education and Training Authorities
MFMA - Municipal Finance Management Act MIG Municipal Infrastructure Grant
MSA - Municipal Systems Act MTAS Municipal Turnaround Strategy
PMS - Performance Management Systems SCM Supply Chain Management
MPAC - Municipal Public Accounts Committee SDBIP Service Delivery and
Budget Implementation Plan
SMME - Small Medium Micro Enterprise ODETD Occupation Directed Education and Training Development Programme
WSP - Workplace Skills Plan APAC Audit & Performance Audit Committee
