2016/17

DRAFT ANNUAL REPORT GREATER TZANEEN MUNICIPALITY

OFFICE OF THE MUNICIPAL MANAGER

Civic Centre

38 Agatha Street

Tzaneen

Contact no: 015-307 8002

CONTENTS

CONTENTS	2

LIST OF ABBREVIATIONS	6

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY	10

COMPONENT A: MAYOR’S FOREWORD	10

COMPONENT B: EXECUTIVE SUMMARY	13

1.1.	MUNICIPAL MANAGER’S OVERVIEW	13

1.2.	MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW	14

1.3.	SERVICE DELIVERY OVERVIEW	18

1.4.	FINANCIAL HEALTH OVERVIEW	19

1.5.	ORGANISATIONAL DEVELOPMENT OVERVIEW	22

1.6.	AUDITOR GENERAL REPORT (2016/17)	23

1.7.	STATUTORY ANNUAL REPORT PROCESS	23

CHAPTER 2 – GOVERNANCE	25

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE	25

2.1	POLITICAL GOVERNANCE	26

2.2	ADMINISTRATIVE GOVERNANCE	30

COMPONENT B: INTERGOVERNMENTAL RELATIONS	32

2.3	INTERGOVERNMENTAL RELATIONS	32

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION	34

2.4	PUBLIC MEETINGS	35

2.5	IDP PARTICIPATION AND ALIGNMENT	44

COMPONENT D: CORPORATE GOVERNANCE	45

2.6	RISK MANAGEMENT	45

2.7	ANTI-CORRUPTION AND FRAUD	46

2.8	SUPPLY CHAIN MANAGEMENT	47

2.9	BY-LAWS	48

2.10	WEBSITES	49

2.11	PUBLIC SATISFACTION ON MUNICIPAL SERVICES	50

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)	51

COMPONENT A: BASIC SERVICES	51

3.1.	WATER PROVISION	51

3.2	WASTE WATER (SANITATION) PROVISION	56

3.3	ELECTRICITY	58

3.4	SOLID WASTE MANAGEMENT	66

3.5	HOUSING & BUILDING CONTROL	71

3.6	FREE BASIC SERVICES AND INDIGENT SUPPORT	78

COMPONENT B: ROADS & TRANSPORT	82

3.7	ROADS & STORMWATER	82

3.8	LICENSING	91

COMPONENT C: PLANNING AND DEVELOPMENT	95

3.9	TOWN PLANNING	96

3.10	LAND MANAGEMENT	99

3.11	LOCAL ECONOMIC DEVELOPMENT	105

COMPONENT D: COMMUNITY & SOCIAL SERVICES	110

3.12	LIBRARIES; MUSEUM; COMMUNITY FACILITIES	110

3.13	CEMETERIES	116

3.14	CHILD CARE; AGED CARE; SOCIAL PROGRAMMES	118

COMPONENT E: ENVIRONMENTAL HEALTH SERVICES	121

3.15	ENVIRONMENTAL HEALTH SERVICES	121

COMPONENT F: SECURITY AND SAFETY	126

3.16	TRAFFIC LAW ENFORCEMENT	127

3.17	DISASTER MANAGEMENT	129

COMPONENT G: SPORT AND RECREATION	133

3.18	SPORT, RECREATION, ARTS and CULTURE	133

COMPONENT H: CORPORATE POLICY OFFICES AND OTHER SERVICES	135

3.19	EXECUTIVE AND COUNCIL	135

3.20	FINANCIAL SERVICES	137

3.21	HUMAN RESOURCE SERVICES	145

3.22	INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES	148

3.23	LEGAL SERVICES	152

COMPONENT I: ORGANISATIONAL PERFOMANCE SCORECARD	156

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT & PERFORMANCE MANAGEMENT	157

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL	157

4.1	EMPLOYEE TOTALS, TURNOVER AND VACANCIES	157

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE	161

4.2	POLICIES	161

4.3	INJURIES, SICKNESS AND SUSPENSIONS	162

4.4	PERFORMANCE MANAGEMENT	166

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE	167

4.5	SKILLS DEVELOPMENT AND TRAINING	171

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE	176

4.6	EMPLOYEE EXPENDITURE	176

CHAPTER 5 – FINANCIAL PERFORMANCE	181

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE	181

5.1	FINANCIAL SUMMARY	183

5.2	GRANTS	188

5.3	ASSET MANAGEMENT	190

5.4	FLEET MANAGEMENT	192

5.5	FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS	193

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET	200

5.6	CAPITAL EXPENDITURE	200

5.7	SOURCES OF FINANCE	201

5.8	CAPITAL SPENDING ON 5 LARGEST PROJECTS	203

5.9	BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW	204

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS	206

5.10	CASH FLOW	206

5.11	BORROWING AND INVESTMENTS	208

5.12	PUBLIC PRIVATE PARTNERSHIPS	211

COMPONENT D: OTHER FINANCIAL MATTERS	211

5.13	SUPPLY CHAIN MANAGEMENT	211

5.14	GRAP & MSCOA COMPLIANCE	212

5.15	Debt OWED BY COUNCILLORS AND officials	212

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS	213

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2015/16 & 2016/17	213

6.1 AUDITOR GENERAL REPORTS 2015/16	213

COMPONENT B: AUDITOR-GENERAL OPINION 2016/17	215

6.2 AUDITOR GENERAL REPORT 2016/17	215

GLOSSARY	218

ADDENDUMS	220

ADDENDUM A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE	220

ADDENDUM B – COMMITTEES AND COMMITTEE PURPOSES	224

ADDENDUM C –THIRD TIER ADMINISTRATIVE STRUCTURE	228

ADDENDUM D – FUNCTIONS OF MUNICIPALITY / ENTITY	229

ADDENDUM E – WARD REPORTING	231

ADDENDUM F – WARD INFORMATION	243

ADDENDUM G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 2016/17	244

ADDENDUM H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS	246

ADDENDUM I– PERFORMANCE OF SERVICE PROVIDERS	249

ADDENDUM J: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE	269

ADDENDUM J (I): REVENUE COLLECTION PERFORMANCE BY VOTE	269

ADDENDUM J (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE	270

ADDENDUM K: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES	271

ADDENDUM K (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME	271

ADDENDUM K (ii): CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME	275

ADDENDUM L – CAPITAL PROGRAMME BY PROJECT 2016/17	276

ADDENDUM M – CAPITAL PROGRAMME BY PROJECT BY WARD 2016/17	279

ADDENDUM N – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS	280

ADDENDUM O – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION	281

ADDENDUM P – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY	282

ADDENDUM Q – DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71	282

VOLUME II: ANNUAL FINANCIAL STATEMENTS 2016/17	283

LIST OF ABBREVIATIONS

ABET	Adult Basic Education and Training

AFS	Annual Financial Statements

APR	Annual Performance Report

BDS	Blue Drop Status

CBO	Community Based Organisation

CCMA	Council for Conciliation, Mediation and Arbitration

CDW	Community Development Worker

CFO	Chief Financial Officer

COGHSTA	Department of Cooperative Governance, Housing, Settlements and Traditional Affairs

COIDA	Compensation for Injury Act

CPMD	Certificate Programme in Management Development

DEAT	Department of Environmental Affairs and Tourism

DLTC	Driver License Testing Centre

DoC	Drop off Centre (waste)

DSAC	Department of Sports, Arts and Culture

EPWP	Expanded Public Works Programme

ESD	Engineering Services Department

EXCO	Executive Committee

GAMAP	Generally Accepted Municipal Account Principles

GTEDA	Greater Tzaneen Economic Development Agency

GTM	Greater Tzaneen Municipality

GRAP	Generally Recognised Accounting Principles

HDA	Housing Development Agency

HIV	Human Immunodeficiency Virus

IDP	Integrated Development Plan

KPI	Key Performance Indicator

LED	Local Economic Development

LTA	Local Tourism Association

MDM	Mopani District Municipality

MEC	Member of the Executive Committee

MFMA	Municipal Finance Management Act

MFMP	Municipal Finance Management Programme

MIG	Municipal Infrastructure Grant

MPAC	Municipal Public Accounts Committee

MSA	Municipal Systems Act

NDPG	Neighbourhood Development Partnership Grant

NERSA	National Energy Regulator of South Africa

NGO	Non-Governmental Organisation

NMC	National Moderation Committee

NYDA	National Youth Development Agency

OHS	Occupational Health and Safety

PA	Personal Assistant

PMS	Performance Management System

PDP	Professional Drivers Permit

PTH	Personal to Holder

RDP	Reconstruction and Development Programme

SAIMSA	Southern African Inter Municipal Sport Association

SALGA	South African Local Government Association

SALGBC	South African Local Government Bargaining Council

SANS	South African National Standards

SCM	Supply Chain Management

SDBIP	Service Delivery and Budget Implementation Plan

SDF	Spatial Development Framework

VIP	Ventilated Improved Pit (toilet)

WACCA	Wage Curve Collective Agreement

WSA	Water Service Authority

WSP	Water Service Provider

YGD	Youth Gender and Disability (Programme/ office)

CHAPTER 1 – MAYOR’S FOREWORD AND EXECUTIVE SUMMARY

COMPONENT A: MAYOR’S FOREWORD

The Municipality actively reaffirmed its commitment to the 2016 ANC Local Government Elections Manifesto which is the Programme of Action of Council for the 2016-2021 political term of office. This report also comes at the conclusion of twenty (24) years of democracy and will show that we are continuing to make a significant impact on the triple challenges of poverty, unemployment and inequality in Greater Tzaneen Jurisdiction on a sustainable basis.

The Municipality continues to make substantial infrastructure investments to build an environment conducive for business to get-about their daily operations and to plan for the future. This report will show that our investor-friendly policies and connection with business yields over time the results we desire as our local economy expands despite the odds that face smaller and bigger local economies. The mood is made all the more buoyant by the Statistics South Africa report of 2011 to which we referred in our 2017 State of the municipality address: (SOMA) “Statistics SA data shows that our unemployment rate was 33.6% in 2011 and has reduced to 24.6% in 2014 which is lower than the provincial unemployment rate which Stats SA puts at 26.3% whilst the national rate is at 29.8%. This resilience happened despite the fact that our population has grown by 22% over the same period, and more importantly, it occurs against the world economic downturn that we are slowly emerging from. We still place a high premium on the tried-and-tested equalizer that is the principles of Expanded Public Works Programme (EPWP), which more than any programme helps us to absorb many of our communities into putting food on their tables working together with Public Works Department. We also adopted an aggressive approach through GTEDA to encourage establishment of cooperatives as an easy-to-create business entity that can help huge numbers of people to get out of the ranks of the unemployed to self-employment.

The report will show that the municipality has continued to implement its Municipal Strategy in a manner that builds confidence of residence. The people of Greater Tzaneen expect the municipality to be well managed and to be accountable for the prudent stewardship of public funds, the safeguarding of public assets, and the effective, efficient and economical use of public resources. We will show how we have managed to mitigate risks; make improvements in our ICT infrastructure; bettered municipal financial management which all culminated in us receiving a successive Unqualified Audit Opinion from the Auditor-General.

In its preamble, the Freedom Charter (1955) cautions us that “no government can justly claim authority unless it is based on the will of the people.” The Charter being the blueprint, upon which our democratic future is established, our municipality ensures that public participation remains the hallmark of all government work. The report will show that the municipality has joined others in this sphere of government in strengthening ward committees by reimbursing them for costs related to work they do in communities, whilst assisting ward Councillors. It will also show that the municipality has not lost the connection with communities in relation to projects it implements in their name. Furthermore, we had held numerous Mayoral Outreach programs or Mayoral IMBIZOS throughout the clusters of our Municipality.

Our emphasis in the coming year and beyond is to reinforce public participation processes by introducing focused sector meetings on regular basis, which will sit to assess community impressions about the work of different municipal departments. In the interest of a sound living environment, we will address on an urgent basis, and in collaboration with the other spheres of government, the agricultural legacy which affects our town and our villages in particular. Already, in our engagements with our farmers, we noticed that as long as many young and old people struggle in the villages/townships, farmers in our jurisdiction highlights that they run short of labourers with regards to seasonal jobs they can offer annually hence they end up resorting to employ our brothers from outside the borders of our country. To deal with housing delivery backlog, the municipality will embark on the urban site and service approach, as well as acceleration of the implementation of the social housing policy. The township regeneration and inner city renewal programmes will also be vigorously implemented. A concerted effort including massive campaigns will be made to address the scourge of crime across the municipality, having recently started with Dan, Mamitwa and Lenyenye by means of campaigns against crime. The priorities outlined in the local economic development strategy will receive the necessary attention to ensure that they are indeed realized.

We will also revise our organizational structure to ensure that it is responsive to the new imperatives of national and provincial executive that will come in the near future, which will include the strengthening of a dedicated Water and Sanitation department to give new impetus to this service delivery area. In the year under review, we encourage local municipal procurement to Greater Tzaneen-based business entities, in order to boost our local economy. We also support the 2017 raising of the Tzaneen Dam wall to which we believe it will resolve challenges of water scarcity in and around Tzaneen town. This report will show how we are working in collaboration with government departments and private business in the provision of services to our communities.

The central message of our work remains that we are single-minded and willing to forge ahead with building a better city, while conforming to all and sundry that the Greater Tzaneen we live in today is better than the one we lived in before 1994.

COMPONENT B: EXECUTIVE SUMMARY

MUNICIPAL MANAGER’S OVERVIEW

The 2016/17 financial year commenced with the Local Government elections and the resulting inauguration of a new political leadership. Although the GTM IDP for 2016/17 was adopted already in May of 2016, the new Council supported the implementation of the programmes as prioritised and actively assisted in ensuring that service delivery is aligned to the priorities of the community.

Various service delivery initiatives improved the lives of the GTM community, these include the tarring of roads, albeit some of them on behalf of the Road Agency Limpopo but targeted to the neediest areas. The electrification of households in rural areas have progressed to a level where 96% of households now have access to electricity and only new extensions to villages needs to be covered in future years. GTM continued to perform well in ensuring that our community have a clean and safe environment to live and work in. Solid waste management services together with environmental health and parks management initiatives once again resulted in the Greenest Town Competition rating us very high.

GTM sourced funding from DME to fund energy efficiency initiatives which resulted in the replacement of electrical equipment at water pump stations, the main offices etc. This, in a bid to reduce our energy consumption.

The financial sustainability of council improved slightly with the liquidity ration improving from 1.3 in 2013/14 to 1.7 in 2016/17. However the decline in the cost coverage from 0.7 in 15/16 to 0.4 in 2016/17 is cause for concern as Treasury requires 3 months reserves. GTM however manages its own financial and human resource services with the exception of Asset Management which has been outsourced.

MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

Greater Tzaneen Municipality has functions bestowed upon it by the Constitution of the Republic of South Africa (Act no 108 of 1996), as follows:

As a water service provider, the authority being Mopani District Municipality, Greater Tzaneen Municipality provides water through tankers to villages and areas where there is a shortage.

The Municipality also provides refuse removal services.

Provision of electricity.

Provision of sanitation, in partnership with Mopani District Municipality.

Provision of road and storm water infrastructure.

Consideration of building plans and town planning applications

According to the Statistics South Africa (Census 2011), the Greater Tzaneen Municipality has increased its population from 375 588 to 390, 092 (an increase of 14 504) comprising of 181 558 males (Census 2001, 171 119) and 208 536 females (Census 2001, 204 469). Females still outnumber males as they comprise 53% of the population (54% during Census 2001). Young people between the ages of 14 – 35 constitute 40% (156 900) of the total population of the Municipality (See Table 1).

Table 1: GTM Population by gender and age
2001	2011
Age Group	Male	Female	% of Total	Male	Female	% of Total
Age 0-4	19086	19489	10.3%	24007	24002	13%
Age 5-9	23135	23624	12.4%	18877	18989	10%
Age 10-19	48442	49172	26.0%	40526	39299	21%
Age 20-29	29315	35811	17.3%	35280	37141	19%
Age 30-39	19388	28009	12.6%	20795	26950	13%
Age 40-49	13766	19780	8.9%	15236	22583	10%
Age 50-59	9142	10854	5.3%	10241	14761	7%
Age 60-69	4892	8936	3.7%	6220	8763	4%
Age 70-79	3956	8784	3.4%	2856	6335	2.4%
Total	171122	204459	100%	174038	198823	100%

Source: Stats SA Census 2011

Socio-economic statistics for the municipal area is limited to the unemployment rate as established during the 2011 Census.

Table 2: Socio Economic status 2011-2016
Year	Housing backlog as proportion of current demand	Unemployment rate	% of Households with no income	HIV/AIDS prevalence
2015	12565	16%	13.4%	6,9%
2016	12590	16%	13.4%	5,0%

Table 3: Overview of the Towns and Villages within Greater Tzaneen Municipality
Settlement Type	Households	Population
Towns: (Tzaneen, Letsitele, Lenyenye, Nkowankowa & Haenertsburg)	16433	65734
Villages (131 villages)	63 468	317 344
12 Informal settlements	Not known	Not known
Total	79 901	383 078

A map of the Greater Tzaneen municipal area is presented in Figure 1.

Table 4: Natural Resources in Greater Tzaneen municipal area (2016/17)
Major Natural Resource	Relevance to the Community	GTM activities to promote resource optimisation
Land	Agricultural development Mining and quarrying Property development Grazing land for domestic and wild animals	Revitalisation of Agricultural Scheme Implement Agro-Processing and value chain Address illegal sand mining in rural areas
Rivers, waterfalls and dams	Water for agriculture Human consumption Tourism development/promotion	Manage rivers, streams and wetland Develop adventure tourism
Forests	Manufacturing/sawmills Improve biodiversity and biosphere Soil conservation	Implementation of the forestry value chain Veld management Solar power in new development
Nature Reserves	Environmental management Improvement of the eco-system Preservation of indigenous species and animals Tourism	Harvest rain water for irrigation Compost production from farm Environmental management to reduce soil erosion and degradation Conservation of protected area e.g. Tzaneen nature reserve, Lekgalametse etc Promote anti-tourism Tourism route development

GTM has a high level of unemployment coupled with a large youthful component of the population. The implementation of the Expanded Public Works Programme has contributed to job creation. Along with support provided for the Community Works Programme, targeting rural areas and providing temporary relief to the unemployed.

Figure 1: Map of GTM Area

SERVICE DELIVERY OVERVIEW

Greater Tzaneen Municipality has a responsibility to provide services to its people. During the 2016/2017 financial year, projects aimed at improving the lives of the local people were implemented in various wards and the Municipality; these are presented in Table 5.

Table 5: Key Service delivery initiatives 2016/17
Service	Activities
1. Water	Ongoing maintenance activities
2. Sanitation	Ongoing maintenance activities
3. Electricity	Energy Efficiency and Demand site Management funded by DoE Electrification of Khopo villages Electrification of Sunnyside/Myakayaka/Sepacheng Electrification of Thabina Valley Electrification of Xihoko/Radoo/Mavele/Thapane Electrification of Dan/Lusaka Electrification of KhayalamC/Legobareng/Shiluvane Electrification of Serare/Tshidinko/Serare
4. Roads and Storm water	Development of Roads Master Plan Development of Integrated Road Master Plan Construction of Rikhotso Low level Bridge Construction of Mokonyane Low Level Bridge Moruji to Maswi Tar Road Mafarana to Burgersdorp Tar Road Rita to Mariveni Tar Raod
5. Waste Management	8 537 households in 5 towns waste removal done once a week 33 600 rural households served by central collection point
6. Building and Maintenance	Construction of new ablution block, change rooms and upgrading of the existing ablution block at the Parks Employees camp
7. Land, Property and Housing	Land procured at Letsitele for development All RDP housing projects completed
8. Library Services	The GTM operates 5 vibrant libraries: At Tzaneen; Letsitele; Haenertsburg; Shiluvane and Mulati 139653 Users visited the libraries 66 356 Books were issued 117 School groups were hosted in the libraries 40 Schools were visited by library staff 773 Assignment topics were assisted with 141 Displays were exhibited 77 Book related arts and crafts activities/events were held 7 Holiday programmes were hosted

A summary of access to basic services is presented in Table 6:

Table 6: Percentage of Households with access to basic services
Financial Year	Service
Electricity	Water	Sanitation	Waste collection
2012/2013	89%	72%	44.6%	12%
2013/2014	91%	49%	26.22%	8%
2014/2015	93%	49%	26.22%	39%
2015/2016	94%	48.5%	13.6%	39%
2016/2017	96%	16.3%	76.8%	41%

FINANCIAL HEALTH OVERVIEW

Although GTM performs well with revenue and expenditure management, it experiences serious cash flow constraints during certain months of the year. The cash flow constraints can mainly be attributed to poor payment for services in some areas of the municipality and secondly the municipality’s electricity tariff structure is not a seasonal tariff structure as in the case of Eskom. The tariff structure of Eskom is based on maximum demand which results in high electricity bills for the municipality during winter months.

The Constitution of the Republic of South Africa (Act 108 of 1996) determines that a municipality must conduct its business in such a manner that services are rendered sustainably. Sound financial management principals have therefor been adhered to, to ensure that services are provided economically, sustainably and equitably to all communities. To promote sustainable service delivery Council embarked on the implementation of a range of revenue collection strategies which also optimized the collection of outstanding debts. An amount of R102 million has been levied by way of property tax and R449 million was sourced from services charges.

Apart from revenue collection the Municipality also placed high emphases on the delivery of basic service and the maintaining of infrastructure. An amount R1 114 billion has been spent on operating activities of which R35 million excluding labour was used to maintain Council’s assets. Council ended the financial year with a cash book balance of R31.8 million, but conditional grant allocations to the amount of R19 million have not been spent during the financial year. The cost containment measures issued by National Treasury and highlighted in the 2016 state of the nation speech of 24 February 2016 have also been implemented to reduce excessive expenditure and eliminate wasteful expenditure

Table 7: Financial Overview 2016/17 (R'000)
Details	Original budget	Adjustment budget	Actual
Income
Grants	416 697	499 393	464 786
Taxes, Levies and tariffs	596 953	596 953	538 311
Other	78 416	78 416	119 334
Sub Total	1 092 066	1 174 762	1 122 431
Less Expenditure	1 040 202	1 049 698	1 114 624
Net Total*	51 864	125 064	7 807
*Note: surplus/deficit

It is evident from the figures contained in Table 7 that there are variances between the budgeted and actual figures. With regard to the expenditure, it is confirmed that overspending on the Budget is mainly the result of the R34 million overspending on the provision for Bad Debts which is a non-cash item and R16 million on legal fees. Grants and subsidies exceeded the budget by R78 million, due to the projects that were budgeted for under capital and were transferred to RAL after completion. The difference between total budget and total actual expenditure amounts to R52 million or 4.4%.

Table 8: Actual Operating Ratios (%)
Detail	2013/2014	2014/2015	2015/16	2016/17
Employee Cost	33.7%	30.6%	26.83%	24.59%
Repairs and Maintenance	2.61%	4.00%	2.61%	3.22%
Finance Charges and Depreciation	12.6%	16.0%	17.40%	12.78%

As presented in Table 8, employee cost represents 24.6% of the total revenue which is below the acceptable norm of 35%. Repairs and maintenance represent only 3.2% of the total expenditure, this is due to the fact that the employee cost allocated to operating activities has been taken out of repairs and maintenance cost. If the labour cost is included in the repairs and maintenance cost, it would represent 11.04% of the total actual expenditure. Finance charges and depreciation represent 12.78% of the total revenue which is acceptable.

Table 9: Total Capital Expenditure (2013/14 - 2016/17) (R'000)
Detail	2013/14	2014/15	2015/16	2016/17
Original Budget	165 630	170 904	144 684	133 453
Adjustment Budget	217 482	232 738	200 256	220 547
Actual	380 673	138 659	89 143	76 411

The 2016/17 financial year ended with an actual capital expenditure of R76.1 million, compared to the budget of R220,5 million (also see Figure 2), due to the roll-over of projects and also the donated assets as per Gazette no 2372.

National Treasury approved a request for roll-over of some of the capital projects (to the value of R15, 8 million), which have not been finalized during the 2016/2017 financial year.

ORGANISATIONAL DEVELOPMENT OVERVIEW

As on 30 June 2017 a total of 1442 positions were approved of which 664 were filled with 781 vacancies. The organisational structure (attached as Annexure A ) for 2016/2017 was approved by Council (Council Resolution: A 43 C 2017 05 12) with effective from 1 July 2017. This was done in order for the Municipality to comply with Section 66 of the Municipal System Act (Act 32 of 2000). Although posts are being filled, there is insufficient budget provision to reduce the vacancy rate significantly.

AUDITOR GENERAL REPORT (2016/17)

The Council is responsible for the preparation of the Annual Financial Statement which fairly presents the state of affairs of Council for each financial year. The 2016/17 Annual Financial Statements of Council were prepared in accordance with Generally Recognised Accounting Practice (GRAP) prescribed in terms of section 126(1)/ 126(2) of the Municipal Finance Management Act (MFMA).

The Annual Financial Statement as well as the consolidated Annual Financial Statements, see Annexure B, (including GTEDA) for 2016/2017 Financial year have been audited by the Auditor General and their Consolidated audit report on GTM & GTEDA was issued to the Mayor and Municipal Manager during December 2017 (attached as Annexure C). The GTM received an unqualified opinion.

STATUTORY ANNUAL REPORT PROCESS

Greater Tzaneen Municipality annually comply with the reporting process as outlined below in Table 10.

Table 10: Annual reporting process
No.	Activity	Timeframe
1	Consideration of next financial year’s Budget and IDP process plan. Except for the legislative content, the process plan should confirm in-year reporting formats to ensure that reporting and monitoring feed 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 (In-year financial reporting).
3	Finalise 4th quarter SDBIP Report for previous financial year
4	Submit draft Annual Performance Report to Internal Audit and Auditor-General
5	Municipal entities submit draft annual performance reports to MM
6	Audit/Performance Committee considers draft Annual Performance Report of Municipality and entities (where relevant)	August
8	Mayor tables the unaudited Annual Performance Report
9	Municipality submits draft Annual Performance Report including consolidated annual financial statements to Auditor General.
10	Annual Performance Report as submitted to Auditor General to be provided as input to the IDP Analysis Phase
11	Auditor General assesses draft Annual Performance Report including consolidated Annual Financial Statements and Performance data	September - October
12	Municipalities receive and start to address the Auditor General’s comments	November
13	Mayor tables Audited Financial Statements to Council complete with the Auditor- General’s Report
14	Audited Annual Report is tabled to Council by the Mayor made public	January
15	Annual Report is made public and inputs/comments are invited
16	Municipal Public Accounts Committee (MPAC) assesses Annual Report	February
17	Council adopts Oversight report from MPAC	March
18	Oversight report is made public
19	Oversight report is submitted to relevant provincial Council

The adherence to the timeframes as outlined above is dependent on the alignment between the IDP, Budget and Performance Management content and processes. During 2016/17 GTM submitted the Annual Performance Report to the Auditor General on time but quarterly performance reports were not approved by Council on the advice by the Municipal Oversight Committee. The Annual Performance Report and the 4 quarterly reports had to be corrected before re-submission to Council, upon the completion of the audit by the Auditor General.

CHAPTER 2 – GOVERNANCE

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

The Municipal Structures Act defines a Municipality amongst other as a structure with political office bearers and administration components; a geographic area; and the community of the Municipality. The Municipality consists of a municipal institution (political and administrative structures), and the people who live in the local area. The term can also be used to refer to a local area which falls within a municipal boundary.

Roles

The roles of these two components can briefly be defined by generally outlining key responsibilities mandated by various legislations thereto, without specifically dealing with the provisions of these pieces of law.

Rights and duties of municipal Councils (political component):

The Council of a Municipality has the right to govern, on its own initiative, the local government affairs of our local communities; and to exercise the Municipality’s executive and legislative authority without interference. Council must respect the rights of citizens in the way in which they exercise their powers. Council may finance the affairs of the Municipality by charging fees for services, imposing surcharges on fees or property rates, and (when allowed by national legislation) imposing surcharges on other taxes, levies and duties. Council has duties as well as rights that, amongst others, include the duties to:

Exercise their powers and use their resources in the best interests of our communities;

Provide, without favour or prejudice, democratic and accountable government

Encourage the participation of the communities;

Ensure that municipal services are provided to the communities in an equitable, and financially and environmentally sustainable manner;

Promote development in the Municipality;

Promote gender equity;

Promote a safe and healthy environment in the Municipality; and

Contribute to the progressive realisation of the fundamental rights contained in the Constitution.

The Municipal Systems Act obliges Council to consult the local community about municipal services. Communities should have a say in the way in which services are delivered; the level of services; the quality of services; and the range of services which are provided.

Duties of Municipal Administrations

The Municipal administration has a number of duties towards our communities, which could be summarised as follows:

Being responsible for the general administration and accounting of the functionaries of the Municipality;

Being responsive to the needs of the local community;

Establishing clear channels of communication with all sectors of the society and governance;

Informing the local communities about the services which they are entitled to receive; and

Informing the local community how the Municipality is managed, what it spends its money on, and who is in charge.

The Municipal administration also has the duty to facilitate a culture of public service and accountability amongst staff, and taking measures to prevent corruption. It is therefore expected that the Municipality must fulfil these duties as far as possible, taking into account the budget and capacity they have available.

POLITICAL GOVERNANCE

The key functions of the political component in the administration of the Municipality are as briefly explained above and the functions of the main offices are provided below.

Oversight Function.

The Municipal Council remains responsible for the specific oversight of all municipal activities and in particular fiscal matters. In as far as specific requirements are concerned, the Municipality did establish the following Committees to play an oversight role:

Executive Committee

Finance Committee

Municipal Public Account Committee (MPAC)

Audit Committee

POLITICAL STRUCTURE MAYOR Mr. Maripe Mangena	Function The Mayor provides political guidance, monitors and oversees the exercise of responsibilities assigned to the Municipal Manager (accounting officer) and the Chief Financial Officer without interfering in the exercise of those responsibilities. Take the reasonable steps to ensure that the Municipality performs its constitutional and statutory functions within the limits of the Municipality’s approved budget.
SPEAKER Mrs. DJ Mmetle	The Speaker presides over meetings of the Council, perform the duties and exercises the powers delegated in terms of Section 59 of the Municipal System Act. Ensures that the Council meets at least quarterly, maintains order during meetings. Ensures compliance in the Council and Council Committees with the Code of Conduct set out in Schedule 1 of the Municipal System Act, and ensures that Council meetings are conducted in accordance with the rules and orders of Council.
CHIEF WHIP	The Chief Whip ensures that the strategic direction adopted by the Municipality is in line with the mandate and policy directives of the ruling party. Discusses with the Office of the Speaker the order of the Council. Arranges caucus for the EXCO and Council meetings. Receives and considers applications for leave of absence by Councillors for caucus meetings. Ensures that majority party Councillors submit their programmes to the office of the Speaker and of the Chief Whip for monitoring purposes. Provides political support to the Committee Chairs, to carry out Party political functions in Committees.
EXECUTIVE COMMITTEE C Machimana S Mbhalati T Maunatlala E Ntimbane S Tiba L Hlangwane M Letsoalo M Sekhwela M Prinsloo	The Executive Committee gives political direction to the executive management team. Provides recommendation to Council in respective of its executive and legislative powers. Works closely in a co-ordinated and co-operative relation with the Municipal Manager. The EXCO and Mayor, within the legislative framework provided by the Municipal Structures Act, the Municipal Systems Act, and the Municipal Finance Management Act and subject to Council resolutions, direct and drive the transformation and development of the Municipality.

Greater Tzaneen Municipality has 69 Councillors, 35 Ward Councillors who are directly elected and 34 proportional representation Councillors. The ANC has 52 seats, the DA 7 seats; EFF 8 seats, Cope and APC each have a seat. The ANC is in charge of 33 of the 35 wards and the rest is led by the DA (attendance of Councillors in Council meetings are available in Addendum A). The Executive Committee consists of 10 members, which is chaired by the Mayor. 7 members of the Committee are Head of Portfolios reporting to the Portfolio Committees chaired by non-executive chairpersons. The Mayor, Speaker, Chief Whip, MPAC Chairperson and four other Councillors, who are also part of EXCO, are fulltime Councillors.

Council established a Municipal Oversight Committee, consisting of the following non-executive members of Council:

Cllr. G Mkhabela (Chairperson)

Cllr. K Rapatsa

Cllr. N Mohonone

Cllr. J Mokgoloboto

Cllr. N Maunatlala

Cllr. M Mafokwane

Cllr. E Ngobeni

Cllr. T Mushwana

Cllr. D Malemela

Table 11: MPAC Members attendance during 2016/17
Councillor Name	No of meetings attended	No of meetings apology submitted	Total No of MPAC meetings
Derick Mkhabela	13	1	14
Thomas Mushwana	12	2	14
Ngwako Maunatlala	13	1	14
Malesela Mafokwane	12	2	14
Josephine Mokgoloboto	14	0	14
Irene Rapatsa	11	3	14
Ngwako Mohonone	13	1	14
Dumisani Malemela	10	4	14
Edward Ngobeni	13	1	14

The roles and responsibilities of each committee of Council is outlined in Addendum B.

It should be noted that GTM has a functional Audit Committee that provides opinions and recommendations on financial processes and performance to Council.

GTM Audit Committee comprise of the following independent members:

Stanley Ace Ngobeni ( Chairperson)

Hazel Nurse Masedi

Leon Lankalebalela

Jan Moitswadi Mofokeng

The Audit Committee advise Council, Accounting Officer and Management staff of GTM and GTEDA on matters relating to:

Internal financial control and internal audits

Risk management

Accounting policies

The adequacy, reliability and accuracy of financial reporting and information

Performance management

Effective governance

Compliance with applicable legislation and

Other issues referred to it by the municipality or the municipal entity

The Audit Committee also reviewed the Annual Financial Statements to provide Council with an authoritative and credible view of the financial position of the municipality and the municipal entity.

2.2	ADMINISTRATIVE GOVERNANCE

The Municipal Manager is the Accounting Officer of the Municipality for the purpose of the MFMA and must provide guidance on compliance with this Act to political structures; political office bearers, and officials of the Municipality and any entity under the sole or shared control of the Municipality. GTM had 8 directorates during 2016/17 being:

Office of the Municipal Manager

Office of the Budget and Treasury

Corporate Services

Community Services

Electrical Engineering

Engineering Services

Planning and Economic Development

Office of the Mayor

The top administrative structure is presented below:

TOP ADMINISTRATIVE STRUCTURE TIER 1 MUNICIPAL MANAGER Mr. SR Monakedi TIERS 2 AND 3	Function Accounting Officer, Also managing, Integrated Development Planning, Performance Management, Disaster Management, Internal Audit and Risk Management.
VACANT	CHIEF FINANCIAL OFFICER Mrs. N Lion DIRECTOR: COMMUNITY SERVICES Mr OZ Mkhombo DIRECTOR: ELECTRICAL ENGINEERING Mr. MS Lelope DIRECTOR: PLANNING & ECONOMIC DEVELOPMENT Mr. B Mathebula DIRECTOR: CORPORATE SERVICES Vacant DIRECTOR: ENGINEERING SERVICES Ms. D Malatji	Manages Revenue, Expenditure, Supply Chain, Financial Services (budget and reporting), Assets, Fleet and Stores. Manages Environmental Health, Cleaning services, waste removal, licensing and testing, law enforcement, parks, cemeteries, recreational facilities, libraries and sports, art and culture Manages Electricity service provision and infrastructure maintenance in service area Manages Town Planning, Housing, Land development, Local Economic Development and tourism Manages Legal services, Human Resource, Public Participation, Communication, Administration and Record Management, Marketing, IT and Special Programmes Manages Water, Sanitation, Roads and storm water service provision and maintenance, fleet and municipal buildings.

COMPONENT B: INTERGOVERNMENTAL RELATIONS

2.3	INTERGOVERNMENTAL RELATIONS

Greater Tzaneen Municipality participates in a number of national fora which enhance management practices for quality service. Councillors and management participate in various SALGA forums which benefit Council in areas of running various Council structures and meetings. Participation in meetings of the Local Government Management Improvement Model (LGMIM) assist the municipality to keep focus on improvement of management and delivery in the key performance areas. IMASA is another structure the municipality participate in which contributes in capacity building of municipal administrators.

The municipality participates in Back to Basics forums, amongst others, where certain key focus areas are discussed and best practices shared. The meetings are attended by municipalities in Mopani District area and the Department of Cooperative Governance. The meetings which are held on a regular basis provide platforms for enhancement of service delivery.

The Municipality has on entity called Greater Tzaneen Economic Development Agency (GTEDA). The agency has a board which is the decision making body. The board report the activities of the agency to Council. The agency has a Chief Executive Officer who attends to its day to day affairs.

There are a number of district forums which assist in promotion of good relations with other municipalities in the district. Given the issues discussed in the district forums, the Municipality gets interact with other municipalities on a range of issues. Depending on the nature of issues, bilateral meetings are held with other municipalities.

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

The Municipality is demarcated into 35 Wards and has a Ward Councillor in each. Ward Committees have been established in all the wards. Their main responsibility is to ensure participation by communities in matters of governance. Ward Committees are required to have meetings with communities to register their concerns or suggestions as well as to give information on issues of governance and development. The communication approach that Greater Tzaneen Municipality has adopted for encouraging community to participate in the developmental planning, service delivery and council decisions include the following processes.

Administrative structure: Clustering of wards in order for the encouragement of public participation and also allocating officials who will support the community by encouraging effective and efficient Public Participation.

Political structure: Full time councillors are deployed to the clusters in order to act as support and monitoring structures to ward and PR councillors on political issues.

Community structures: Establishment of ward committee (the ward committees re-established through stakeholders). Sub committees (committees that are dealing specifically with portfolios allocated within ward committees). Cluster forum (traditional authority, civil society organisation and CBO’s).

Communication from communities through:

Community Development Leaders

Ward Committee Meetings

Road shows

Petitions

Public hearings

Consultative meetings

IDP representative forums

2.4	PUBLIC MEETINGS

The ward committees serve as the primary link between the municipality and the community. Purpose of ward committee is to enhance participatory democracy (Section 72(3) of the structures Act). The functions of the ward committees are:

To be a formal communication channel between the community and the council. The Local Government: Municipal Structures Act, 1998 specifies that a ward committee may make recommendations on any matter affecting the ward to the ward councillor or through that councillor to the council (Section 74(a)).

A ward committee is the appropriate channel through which communities can lodge their complaints and it is obliged to forward such complaints to council in the most effective manner.

Ward committees can also be a forum for communication between the ward councillor and the ward community about:

General municipal issues

Development

Service options.

Ward committees are an important channel to mobilise, educate and empower people to have their say in matters that affect them.

The ward committees generates monthly reports which is consolidated and submitted to Council on a quarterly basis. Challenges do exist with the convening of community feedback meetings and clusters. These are not able to hold cluster meetings due to the unavailability of critical stakeholders. This leads to ward committee reports not tabled to Council. The major issues that ward committee system have dealt within during the year are as follows:

The largest part of the period under review, were spent establishing and inducting new ward committees.

The new Ward committees were inducted

Monthly meeting are held as per the establishment notice

Monthly report written and monthly activities of ward committees are outlined to Council through departmental reports

Ward committees participated in:

IDP public hearing meetings

Portfolios activities

Table 12: Top 4 service delivery priorities per ward
Ward Number	Main villages	Top four service delivery priorities
1	Moloko Pelana Mantswa	Grading of sports and recreational fields Grading of internal streets Water reticulation at Moloko, Pelana and Mantswa Completion of blocked houses
2	Mawa Block 9 and 12 Mokhwatsi	Bridges Mawa Block 9 (Mmakefora road) and Block 12 Speed humps and internal streets Mawa block 12 boreholes and Reservoir at Mokgwathi village Apollo lights At Khesethwane village
3	Ramotshinyadi Radoo Mokhwatsi	Upgrading of Wally to Ramotshinyadi and Xihoko via Joppie, Babanana-N’wamitwa connector road. Water at Ramotshinyadi, Wally and Radoo Apollo light at Mokgwathi and Ramotshinyadi Paving of internal streets
4	Rikhotso Mookgo Block 6 Morapalala	Addition of DOC at Molokwane, Xirhulurhulu and Gwambeni schools Regravelling of Rikhotso via Xihoko to Mookgo Block 6 to Morapalala road Emergency RDP house for orphans
5	Nkambako Musiphane Maweni Akanani Malubana Makheri	Water reticulation in all villages Upgrading on Nkambako to Musiphane roads Renovation of Mahwahwa hall Culverts at Maweni to Akanani road
6	Water supply at N’waHorwhani new extension, Halahala, Goxela, New Canada and Mukhosani Morutsi-Mavele unfinished road Internal streets maintenance and opening at new extensions Low level bridges at New Canada next Vasasele, Daniel Mathebula and Mkhawani areas
7	No Public participation took place
8	No Public participation took place
9	Sefolwe Moleketla Mopye Thako Jokong Sebabane Setoni	Water pipelines from Ebenezar to Ward 9 villages and Reservoir at Makaba, Kgwekgwe and Sefolwe High rate of crime at Moleketla, Mopye, Kgwekgwe, Thako & Jokong New grounds at Kgwekgwe, Thako, Jokong and Moleketla Renovations at Kelekeshe High School Unfinished roads from Mopye-Sebabane-Setoni
10	Kubjana	Youth employment Apollo lights installation at Kubjana hot spots Construction of Shopping complex at Mokete Ward information centre
11	No Public participation took place
12	No Public participation took place
13	Mandlakazi Mieliekloof	Upgrading of road D3248 road to tar Construction Mandlakazi Clinic Construction of sports and recreation centre and community hall Boreholes for areas without access to water
14	No Public participation took place
15	No Public participation took place
16	Haenertsburg Khujwana	Repairs of roads and Regraveling of roads to the cemetery Maintenance equipment for parks Municipal account Internet link Renovations and repairs at the community centre
17	Mokgolobtho Nkowankowa Dan	Low level bridge at Nceve street in Mokgolobotho and Upgrading of visiting point in Mokgolobotho Construction of the Reservoir in Mokgolobotho RDP Houses and VIP toilets in Mokgolobotho and Nkowankowa section Apollo lights
18	No Public participation took place
19	Nkowankowa A,B Dan	Conversion of Nkowankowa offices into library Maintenance and security at parks in Nkowankowa Maintenance of street lights and community hall Equipment for Nkowankowa indoor sports centre
20	No Public participation took place
21	Nkowankowa C Dan	Addition of Cricket pitch and in the Nkowankowa Indoor sports centre Completion of first bus stop at Nkowankowa-Mariveni road Completion of Nkowankowa sewer Speed humps in section C
22	Mhangweni Mafarana	Mhangweni to Mafarana road Renovation of Mhangweni Training Centre Appointment of pump operators on permanent basis Borehole drilling at Mhangweni Primary school
23	No Public participation took place
24	No Public participation took place
25	Bonn Mulati	Water, Boreholes & Diesel Pumps and Water and Roads in new extensions Apollo lights Construction of Bonn Comprehensive school & renovations in Professor High School Mafarana –Mulati road to support the library
26	Rhulani Julesburg	Construction of road on Rhulani village Internal streets Renovation of Dumela High
27	Pulaneng Myakayaka Shoromone Bokgaga Shilubane Mineview	Road from Pulaneng, Myakayaka via Kings to Shoromone Maintenance of boreholes and reservoirs, Burgersdorp old mine and pipeline valves and reticulation at Shiluvane reservoirs Overhead bridge at Masehlane to Bokgaga high school Street lights at strategic areas, Mogapeng, Sonkwane, Shoromone, Shilubane, Mmalekeke, Makhubidung, CN Hospital, Matselapa and Mineview.
28	New Phephene Mokgapeng Gabaza Burgersdorp	Upgrading of CN Phatudi road via New Phephene to Mokgapeng clinic to tar Culverts at Burgersdorp Boreholes installation at Gabaza and water tanks at Burgersdorp and Gabaza Electricity at extensions
29	No Public participation took place
30	No Public participation took place
31	No Public participation took place
32	Mohlaba Cross	Job opportunities RDP houses and Toilets Borehole at Ramodike bar lounge Clinic at Mohlaba cross and Special school
33	No Public participation took place
34	Matap Leseke Lephepane Topanama	Low level bridge at Mokhapa, Mogabe, Matapa, Leseka, Ramoshaba, Mahlogwe, Serurubele and Topanama Upgrading of Marakeng to Lephepane to Craighead and ga Makhokho from gravel to tar Ablution facilities at Mahlane and Ramoba schools Water
35	N/A	N/A

Table 13: Public meetings held during 2016/17
Nature & purpose of meeting	Date	Number of Councillors in attendance	Number of Municipal Officials in attendance	Number of Community Members in attendance	Dates and manner of feedback given to the community
Mayoral Public Participation
None held due to Local Government Elections
IDP/Budget Consultative Meetings (to secure inputs into the draft IDP and Budget for 15/16)
Public Participation meeting for Ward 1-Draft IDP and Budget consultations	23-04-2017	1	2	178	Oral and documented presentation
Public Participation meeting for Ward 2-Draft IDP and Budget consultations	23-04-2017	2	2	80	Oral and documented presentation
Public Participation meeting for Ward 3-Draft IDP and Budget consultations	30-04-2017	2	2	66	Oral and documented presentation
Public Participation meeting for Ward 4-Draft IDP and Budget consultations	30-04-2017	2	2	157	Oral and documented presentation
Public Participation meeting for Ward 5-Draft IDP and Budget consultations	30-04-2017	2	2	154	Oral and documented presentation
Public Participation meeting for Ward 7-Draft IDP and Budget consultations	30-04-2017	1	1	73	Oral and documented presentation
Public Participation meeting for Ward 8-Draft IDP and Budget consultations	23-04-2017	2	2	68	Oral and documented presentation
Public Participation meeting for Ward 9-Draft IDP and Budget consultations	19-04-2015 27-04-2015	2	2	104	Oral and documented presentation
Public Participation meeting for Ward 10-Draft IDP and Budget consultations	22-04-2017	2	2	105	Oral and documented presentation
Public Participation meeting for Ward 13-Draft IDP and Budget consultations	27-04-2017	2	2	183	Oral and documented presentation
Public Participation meeting for Ward 14-Draft IDP and Budget consultations	21-05-2017	1	2	3	Oral and documented presentation
Public Participation meeting for Ward 15-Draft IDP and Budget consultations	16-05-2017	3	4	35	Oral and documented presentation
Public Participation meeting for Ward 16-Draft IDP and Budget consultations	08-04-2017 12-04-2017	2 2	2 2	94 12	Oral and documented presentation
Public Participation meeting for Ward 17-Draft IDP and Budget consultations	07-05-2017	2	2	63	Oral and documented presentation
Public Participation meeting for Ward 18-Draft IDP and Budget consultations	06-04-2017	1	1	92	Oral and documented presentation
Public Participation meeting for Ward 19-Draft IDP and Budget consultations	26-04-2017	2	2	192	Oral and documented presentation
Public Participation meeting for Ward 20-Draft IDP and Budget consultations	17-05-2017	1	1	77	Oral and documented presentation
Public Participation meeting for Ward 21-Draft IDP and Budget consultations	19-04-2017	1	0	85	Oral and documented presentation
Public Participation meeting for Ward 24-Draft IDP and Budget consultations	21-05-2017	1	2	35	Oral and documented presentation
Public Participation meeting for Ward 27-Draft IDP and Budget consultations	30-04-2017	2	1	119	Oral and documented presentation
Public Participation meeting for Ward 29-Draft IDP and Budget consultations	29-04-2017	1	1	43	Oral and documented presentation
Public Participation meeting for Ward 30-Draft IDP and Budget consultations	30-04-2017	2	2	119	Oral and documented presentation
Public Participation meeting for Ward 32-Draft IDP and Budget consultations	30-04-2017	2	2	58	Oral and documented presentation
Public Participation meeting for Ward 33-Draft IDP and Budget consultations	23-04-2017	2	2	71	Oral and documented presentation
Public Participation meeting for Ward 34-Draft IDP and Budget consultations	30-04-2017	1	2	63	Oral and documented presentation
Public Participation meeting for Ward 35-Draft IDP and Budget consultations	01-05-2017	2	2	108	Oral and documented presentation
IDP Representative Forum	1	2	63	Oral and documented presentation
06/10/2016	11	16	64	Oral and documented presentation -Process Plan & Analysis Phase
06/02/2017	25	31	107	Oral and documented presentation -IDP Strategies Phase and Second Quarter SDBIP Report
24/03/2017	49	10	141	Oral and documented presentation -Projects, Integration and Draft IDP and Budget
17/05/2017	11	23	113	Oral and documented presentation -Final IDP and Budget
COMMUNITY OUTREACH PROGRAMME
None held due to Local Government elections

2.5	IDP PARTICIPATION AND ALIGNMENT

Table 14: IDP participation and alignment criteria
Criteria	Yes/no
Does the Municipality have impact, outcome, input and output indicators?	Yes
Does the IDP have priorities, objectives, KPIs, development strategies?	Yes
Does the IDP have multi-year targets?	Yes
Are the above aligned and can they calculate into a score?	Yes
Does the budget align directly to the KPIs in the strategic plan?	No
Do the IDP KPIs align to that of the Senior Managers?	Yes
Do the IDP KPIs lead to functional area KPIs as per the SDBIP?	Yes
Do the IDP KPIS align with the provincial KPIs on the 12 Outcomes?	Yes
Were the indicators communicated to the public?	Yes
Were the four quarter aligned reports submitted within the stipulated timeframes?	No

Although the 2016/17 IDP and Budget were aligned during approval in May 2016, the roll-over of projects from 2015/16 was only approved in Council by end August of 2016. In addition to this, GTM received a Municipal Infrastructure Grant (MIG) bonus in April of 2017, both of these resulted in changes to the 2016/17 Capital budget, while the IDP and SDBIP were not adjusted accordingly.

COMPONENT D: CORPORATE GOVERNANCE

2.6	RISK MANAGEMENT

The municipality must implement and maintain effective, efficient and transparent systems of risk management and internal control.

The municipality through risk management process achieve, among others, the following outcomes:

more sustainable and reliable service delivery

informed decisions

prevention of fraud and corruption

better value for money through efficient use of resources

Table 15: Top five risks for 2016/17
Risks	Root Cause	Mitigation/Required Action	Department Responsible
1	Increasing/abnormal power outages	Ageing infrastructure; Inadequate repairs and maintenance of electrical infrastructure,	Implement maintenance crisis recovery and master plans	ESD
2	Failure to recover Systems data	Lack of Disaster Recovery facilities (site and storage), Collapse in ICT infrastructure & systems failure.	Purchase of DRP equipment and approval of BCP.	Corporate Services
3	Abuse of overtime/Excessive overtime worked	Non Compliance with basic conditions of employment Act, Lack of consequence management, Poor management control	Implement overtime policy, Adherence to National Treasury threshold on overtime, Strengthen internal controls, Implement cost containment measure as guided by National Treasury. To consider developing compliance register	Corporate Services
4	Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIF)	Non-compliance with legislation	The municipality is in the process of developing UIF policy as per National Treasury guidelines.	MM
5	Non-alignment of IDP, Budget & SDBIP	Adjustments to Budget not reflected in IDP, Poor integration of programs, No synergy between Budget and IDP steering committees	IDP must precede budget processes, IDP and budget office must meet after submission of projects, Ensuring that IDP, Budget, & PMS process plan is properly followed. Further alignment to be done during adjustment budget, Implementation of mSCOA project plan.	MM

Quarterly progress reports, based on the strategic and operational risk registers were submitted to the Risk Committee and Council.

2.7	ANTI-CORRUPTION AND FRAUD

The municipality has established anti-corruption committee to strengthen and enhance the anti-corruption capacity and coordinate the implementation of anti-corruption strategy. The committee will perform the following duties,

To oversee the Municipal approach to fraud prevention, detection strategies and response to fraud and corruption incidents reported by employees or external parties.

Ensure that the fight against corruption is fully coordinated and integrated, with synergies between the elements of prevention, detection, investigation, prosecution and monitoring in all municipal departments.

Advice the municipality in all fraud and corruption related matters.

Establish a system for information collection, coordination, dissemination including management.

Make recommendations to the Council as per National anti-corruption strategy

Recommendations of audit Committee are contained in ADDENDUM G. The Annual Report of the Audit Committee for 2016/17 is attached as Annexure F. The table below presents the cases of fraud and corruption addressed during the 2016/17 financial year:

Table 16: Cases of fraud and corruption for 2016/17
Type of offence	Date reported	Investigation conducted (yes/no)	Intervention / Sanction	Financial loss incurred by Council	Repeated offence (yes/no)
Gross dishonesty and forgery	JUNE 2017	YES	10 days suspension without pay and final written notice.	NO	NO
Misrepresentation of information	JUNE 2017	YES	Verbal warning in writing	NO	NO

2.8	SUPPLY CHAIN MANAGEMENT

The Constitution, MFMA Chapter 11, SCM Regulations 2011, PPPFA as incorporated by BBBBEEA 2011 and relevant Treasury practice notes and circulars as set out are used by the municipality to comply with the prescripts. They all contribute to the successful procurement of goods and services, and minimize the opportunities for fraud and corruption. In the financial year 2016/2017 Council approved the SCM Policy as required by prescripts, and will annually review and implement the Policy. It should also be noted that the Policy covers all aspects required by prescripts relevant to the same. The Policy covers all elements that should form part of the policy, these include:

Demand Management

Acquisition Management

Logistics Management

Disposal Management

Risk Management and

Performance Management

It should further be noted that in terms of corporate governance the unit is compliant and that during 2016/17 the policy was subjected to a review.

Other Financial Matters

The function of requesting for quotations has been centralised within the SCM Unit to avoid abuse of the system.

2.9	BY-LAWS

During the 2016/2017 Financial Year the By-Laws mentioned below were introduced.

Table 17: By-laws introduced during 2016/17
By-law	Revised or Newly Developed	Public participation conducted prior to adoption (yes/no)	Date of public participation	By-Law gazetted	Date of publication
Cemetery	Revised	Yes	25 / 09 / 2015	No	None
Health For Pre-Schools	Revised	Yes	25 / 09 / 2015	No	None
Keeping of Animals	Revised	Yes	25 / 09 / 2015	No	None
Dog Licence	Revised	Yes	25 / 09 / 2015	No	None
Electricity	Revised	Yes	25 / 09 / 2015	No	None
Street Trading	Revised	Yes	25 / 09 / 2015	No	None
SPLUMA	Newly Developed	Yes	15 / 11 / 2015	Yes	25 / 08 / 2017
Environmental	Revised	Yes	15 / 11 / 2015	No	None
Control of Outdoor Advertising	Revised	Yes	15 / 11 / 2015	No	None
Parking	Newly Developed	Yes	15 / 11 / 2015	No	None
Property Rates	Revised	Yes	15 / 11 / 2015	No	None
Public Transport	Newly Developed	Yes	15 / 11 / 2015	No	None
Sports & Recreation	Revised	Yes	15 / 11 / 2015	No	None
Liquor Trading Days & Hours	Newly Developed	Yes	15 / 11 / 2015	No	None
Credit Control	Revised	Yes	15 / 11 / 2015	No	None
Drainage	Revised	Yes	15 / 11 / 2015	No	None
Refuse	Revised	Yes	15 / 11 / 2015	No	None
Tariff	Revised	Yes	15 / 11 / 2015	No	None

The gazetting of by-laws is delayed by the non-availability of funds to do so. It should be noted that the Municipal Systems Act (Act 32 of 2000) Sec. 11 (3) (m) provides municipal councils with the legislative authority to pass and implement by-laws for the betterment of the community within the terms of the legislation.

2.10	WEBSITES

The website is updated regularly to ensure compliance with the MFMA by continuously liaising with all divisions responsible for posting information in the website, as reflected in Table 17.

Table 18: Municipal Website: Content and Currency of Material
Documents published on GTM website	Yes/No	Publishing date
Current and annual adjustment budget related documents	yes	07/03/2016
All current budget related documents	Yes	07/03/2016
2015/16 Annual Report	Yes	15/05/2017
2016/17 performance agreements and plans for Section 57 Managers	Yes	15/07/2017
All service delivery agreements for 2016/17	Yes	17/05/2017
All long-term borrowing contracts for 2016/17	No
All Supply Chain Management contracts above a prescribed value (given value) for 2016/17	Yes	08/05/2017
An information statement containing a list of assets over a prescribed value that have been disposed of in terms of Section 14(2) or (4) during 2016/17	No
Contracts agreed on in 2016/17 to which subsection (1) of Section 33 apply, subject to Subsection (3) of that Section	Yes	17/05/2017
Public-private partnership agreements referred to in Section 120 made in 2016/17	No
All quarterly reports tabled in Council in terms of Section 52(d) during 2016/17	Yes	26/01/2017

2.11	PUBLIC SATISFACTION ON MUNICIPAL SERVICES

During 2016/17 a questionnaire was developed to determine public satisfaction but the process was not finalised due to resource constraints.

CHAPTER 3 – SERVICE DELIVERY PERFORMANCE (PERFORMANCE REPORT PART I)

The key service delivery achievements for 2016/17 is contained in Table 5. The detail pertaining to those achievement are contained in this chapter.

COMPONENT A: BASIC SERVICES

This component includes: water; waste water (sanitation); electricity; waste management; housing services; and a summary of free basic services.

3.1.	WATER PROVISION

Greater Tzaneen Municipality (GTM) signed a Water Services Provider contract with Mopani District Municipality (MDM) in April 2016. MDM is the Water Services Authority (WSA) and according to this contract MDM will provide bulk water services to GTM while GTM will provide water services to the consumers and collect revenue. Approximately 70% of the GTM area consists of rural villages where water provision is not yet on the acceptable level. It should be noted that, since all water assets have been transferred to MDM, a detailed report regarding the expenditure on water will be contained in their Annual Report. This section will only reflect on those aspects managed by GTM, on behalf of the WSA.

Table 19: Total use of water by Sector (cubic meters)
Financial Year	Residential	Business	Industrial	State & Dept	Water Distribution Losses
2016/17	10381	540	220	135	0.084%

Table 20: Water provided during 2016/17
No	Water Works	Water Quota in m3	Abstracted in m3	Pumped in m3	Plant loss in %	R/ m3
1	Georges Valley	2,370,000	2700000	2556000	5.3	R 0.22
2	Tzaneen Dam	1,230,000	3077656	3233461	5.0	R 0. 28
3	Letsitele	418 269,96	166326	333936	1.2	R 0. 21
Total	4 918 269	6110308	6123397	11.5	R0.71

There are eleven Water Treatment Works within the jurisdiction of Greater Tzaneen Municipality. These are managed and operated as follows: Three (3) waterworks operated by GTM, three (3) water works operated by Lepelle Northern Water and five (5) operated by MDM. These waterworks as well as boreholes are unable to provide basic water to 108 926 households evenly in GTM. The majority of the households are in rural areas (126 villages) where water is to be supplied through boreholes and waterworks which are either dry of not receiving regular maintenance or not maintained at all. Some waterworks were designed for a small community and now, with the current growth rate, the works cannot cope with the demands. Dysfunctional boreholes and waterworks compelled GTM to provide water, especially in villages, through water tankers. This arrangement was made as a temporary measure but eventually extended as various boreholes in villages, clinics and schools were found to be dry.

GTM has been allocated 3,600,000 m³ of water from Tzaneen and Ebernezer dams. Letsitele Water works has an allocation of 418 290 m³ per annum. The population growth rate from 2007 has seen the allocation being insuffient. Application for an increase to 6,000,000 m³ from both Ebernezer and Tzaneen dams was not successful since the both dams are said to be over allocated. The capacity of the waterworks is also at its maximum.

Table 21: Household access to water 2014/15 – 2016/17
Level of access	2014/15	2015/2016	2016/17
No of Households	% of Total	No of Households	% of Total	No of Households	% of Total
Piped water inside house	17452	16.02	17611	16.2%	17 723	16.3%
Piped water inside yard	21148	19.42	17611	16.2%	37579	34.5%
Public standpipe within 200m	15305	14.05	17515	16.1%
Public standpipe further than 200m	23248	21.34	23511	21.6%
Other (Below minimum level)	31631	29.03	32678	30%
No water supply	245	0.2	0	0	53 577	49.2%
Total Households	109029	100	108926	100.1%	108926	100%
No of Households receiving Free Basic water	1 743	2382	1418

Table 22: Households receiving Free Basic Water,
Year	Total Households	Receiving Water	Backlog	Free Basic Water
2012/2013	99 117	70 187	28 930	1 743
2013/2014	108 926	80 078	28 848	1 743
2014/2015	108 926	80 078	28 848	1 743
2015/2016	108 926	91 159	17 767	2 382
2016/17	108 926	100 112	8 814	909

Table 23: Employees – Water Services 2016/17
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	0	100%	1	0	0%
Level 4-6	27	11	59%	26	10	62%
Level 7-9	0	0	0%	0	0	0%
Level 10-15	252	70	72%	146	45	69%
Level 16-17	0	103	15	85%
Total	280	81	71%	276	70	75%

Greater Tzaneen Municipality is devoted to ensuring that the consumers are given the main values of service delivery which are commitment, accountability and professionalism. By so doing the greatest success of the municipality are listed below:

Two water supply systems were awarded Blue Drop Certificate in 2010: Plain with: (95.14% for Tzaneen and 95.02 for Letsitele)

Blue Drop Certificate 2011 : Silver with 95.08% ( Tzaneen and Letsitele)

Blue Drop Certificate :2012 Gold with 95.63% ( Tzaneen and Letsitele)

In 2014 Tzaneen got 77.39% and Letsitele got 73.44% blue drop score

Green Drop Certificate 2013: Plain with 94.14%

No assessment has been done since 2014

Table 24: Averaged water sample outcome - Tzaneen Central Laboratory 2016/17
Determinants	Tzaneen	Nkowankowa	Letsitele	Haenertsburg	Recommended-Class1
Ph (-logH)	8.28	7.29	7.5	7.95	5.0-9.7
Turbidity (NTU)	0.57	0.98	0.55	0.62	<1
Colour (as Pt)	5.33	7.34	6.02	5.21	<20
Conductivity (mS/m)	7.59	12.53	19.28	5.37	<150
Temperature 0C	23.08	24.13	23.89	23.21
Total Dissolved Solids (mg/l)	36.11	59.76	90.74	24.89	<1000
Total Alkalinity (mg/l)	23.76	46.68	70.5	20
Total Hardness (mg/l)	49.80	66.68	86.69	40
Calcium Hardness as CaCO3 (mg/l)	46.98	62.98	83.8	36.58
Calcium as Ca (mg/l)	18.81	25.23	33.56	14.64	<150
Magnesium Hardness as CaCO3 (mg/l)	2.82	3.68	2.89	3.43
Magnesium as Mg (mg/l)	0.69	0.9	0.7	0.83	<70
Sodium as (Na) (mg/l)	1.76	7.68	9.93	1.41	<200
Potassium as K (mg/l)	1.29	2.3	1.38	2.63	<50
Chloride as Cl (mg/l)	4.22	8.7	8.58	5.06	<200
Fluoride as F (mg/l )	0.17	0.18	0.14	0.15	<1
Sulphate as SO4 (mg/l)	0.35	1.18	3.19	0	<400
Nitrate as N (mg/)	0.07	0.48	0.84	0.04	<10
Iron as Fe (mg/l)	0.04	0.1	0.05	0.08	<0.2
Manganese as Mn (mg/l)	0.00	0	0	0.01	<0.1
Ammonia as N (mg/l)	0.15	0.05	0.11	0.04	<1.0
Aluminium as Al (mg/l)	0.04	0	0.02	0.02	<300
Zinc as Zn (mg/l)	0.10	0.1	0.12	0.15	<5.0
Langelier Sat. Index	-0.43	-0.98	-0.59	-1.23
Ryznar Index	9.29	9.55	8.68	10.22
Corrosively Ratio	0.28	0.3	0.22	0.36
Free Res. Chlorine (mg/l)	0.43	0.51	0.18	0.6
E.Coli (count/100ml)	0.00	31.39	0	0	0
Total Coliform Bacteria(count/100ml)	0.00	11.53	1.42	0	10

Samples are collected in different sampling points and analysed in a laboratory to ensure that water quality meets the requirements as per SANS 241 2011. An independent laboratory is also appointed to do verification of water quality to ensure safety of drinking water before distribution. The table above summarise the average water samples for different determinants which are within the recommended class as per the standards.

3.2	WASTE WATER (SANITATION) PROVISION

Greater Tzaneen Municipality act as Water Service Provider (WSP) responsible for the provisioning of water services both water supply and sanitation services and Mopani District Municipality is the Water Service Authority (WSA). GTM is responsible for operation and maintenance of Tzaneen Sewage Plant which has the design capacity of 8ML/day coupled with thirty sewer pump stations. GTM is also responsible for the maintenance of sewer reticulation in Nkowankowa and Lenyenye. The other town (Haenertsburg) is serviced by septic tanks, which are drained by municipality honey suckers, while bulk sanitation services for Nkowankowa, Lenyenye and rural settlements are managed by MDM as WSA.

Table 25: Household access to sanitation 2014/2015 to 2016/17
Level of access	2014/15	2015/2016	2016/17
No of Households	% of Total	No of Households	% of Total	No of Households	% of Total
Flush toilet (connected to sewerage)	14 344	13.1	14 456	13.3	14480	13.29
Flush toilet (with septic tank)	284	0.3	284	0.3	284	0.3
Chemical Toilet	0	0	0	0	0	0
Ventilated Pit Toilet	67 104	61.60	67104	61.6	67 104	61.6
Other Toilet below minimum level	0	0	0	0	0	0
No toilet provision	27 231	25	27082	25	27058	24.8
Total Households	108 926	100	108 926	100	108 926	100
No of Households receiving Free Basic sanitation	1 743	1 743	1 743

Irradicating the backlog in terms of household access to sanitation has been a challenge as can be seen in Figure 5 below.

Table 26: Employees – Sanitation Services 2016/17
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	0	0	0%	0	0	0%
Level 4-6	1	1	0%	3	2	33%
Level 7-9	0	0	0%	0	0	0%
Level 10-15	24	6	75%	8	4	50%
Level 16-17	0	0	0	25	4	84%
Total	25	7	72%	36	10	72%

ELECTRICITY

The Electrical Department accessed funds from Department of Energy to implement an Energy Efficiency and Demand Site Management Project. This project stretched from 2013/14 to 2016/17 with a total Expenditure of R19.3 Million. This included various replacement technologies on Streetlights, Aircons, Building lights and Pump stations that realised an annual saving per annum of 2,392MWh. This, calculated, saved the Municipality R3,5 Million per annum. GTM also received R25 million in 2016/17 from Department of Energy for the electrification of villages and 1539 houholds benefited through this programme.

Table 27: Household access to electricity 2014/15 - 2016/17
Level of access	2014/2015	2015/16	2016/17
No of Households	No of Households	No of Households	% of Total	No of Households	% of Total
Electricity connection (at least minimum level)	101 004	93%	102004	94%	105 097	96%
Electricity connection - prepaid	761	1000	0.99%	1 172	1%
Electricity below minimum level	0	0	0	0	0	0
No access to electricity	7922	7%	6 922	6%	3 829	4%
Total Households	109687	108926	105 097
No of Households receiving Free Basic Electricity	31 129	28.38%	36 427	33.4%	36 427	34.7%
Budget allocation for Electricity services	R6 000 000	R30 000 000	R25 000 000

Table 28: Service Delivery Targets for Electricity as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D133	Electricity Infrastructure	% of households with access to electricity	Percentage	98%	98%	99%	G2	Project completed and energized. outstanding house connections in progress
D134	Electricity Infrastructure	# of households with access to electricity	Number	107,878	107,878	107,628	O	Project completed and energized except Dan/ Lusaka and Sunnyside/ Myakayaka/ Sepacheng. Physical construction for phase1 of the project completed. project to continue in 2017/18 financial year
D135	Cost Recovery	% Electricity loss (Kwh)	Percentage	18%	18%	21.92%	R	% percentage losses determined to be 21.92%
D136	Cost Recovery	Kilow Watt Hour Electricity loss (Kwh)	Kilow Watt Hour	42,540,860	42,540,860	99,452,442	R	Due to the increase in the Losses the Rand value will increase as well R 99 452 442.85 This value is determined as per attached excel spread sheet
D137	Electricity network upgrade and maintenance	Km of overhead lines rebuilt	Kilometres	16	16	43	B	Rebuilding of 20km line completed
D138	Asset Management	R-value spent on maintenance of electricity infrastructure as % of asset value	Percentage	2.70%	2.70%	2.13%	O	Assets report
D139	Electricity network upgrade and maintenance	R-value electricity maintenance	R-value	R 51,083,568	R 51,083,568	R 26,641,947	R	Expenditure report not yet finalized
D140	Electricity Infrastructure Development	High mast lights at Traditional Authorities offices	Q1: Tender process for appointment of contractor finalised. (5%) Q2: Construction of Apollo lights, physical progress at 5% (10%) Q3: Construction of Apollo lights, physical progress at 40% (50%) Q4: Apollo lights at Traditional Authorities completed (100%)	100%	100%	95%	O	All 5 high mast is erected by the contractor Capotex, Eskom connections paid, We are waiting for Eskom to construct and install the transformers once that is done then Capotex contractor will do the final connection and COC and hand over to council
D141	Electricity Infrastructure Development	Electrification of Khopo(Civic)	Q1: Appointment of service provider finalised (5%) Q2: Designs approved by ESKOM (10%) Q3: Construction 50% (60%) Q4: Electrification of 350 households at Khopo/civic completed (100%)	100%	100%	100%	G	Project completed and energized.
D142	Electricity Infrastructure Development	Electrification of Sunnyside/ Myakayaka/ Sepacheng	Q1: Appointment of service provider finalised (5%) Q2: Designs approved by ESKOM (10%) Q3: Construction 50% (60%) Q4: Electrification of 160 households Sunnyside/ Myakayaka/ Sepacheng completed (100%)	100%	100%	97%	O	Physical construction completed. PCS file captured. Eskom busy finalizing updating of ENS.
D143	Electricity Infrastructure Development	Electrification of Thabina Valley	Q1: Appointment of service provider finalised (5%) Q2: Designs approved by ESKOM (10%) Q3: Construction 50% (60%) Q4: Electrification of 685 households in Thabina Valley completed (100%)	100%	100%	100%	G	Project completed and energized. 398 households connected. Infrastructure also provided for 268 empty stands.
D144	Electricity Infrastructure Development	Electrification of Xihoko/ Radoo/ Thapana/ Mavele Phase1	Q1: Appointment of service provider finalised (5%) Q2: Designs approved by ESKOM (10%) Q3: Construction 50% (60%) Q4: Electrification of 247 households in Xihoko/ Radoo/ Thapana/ Mavele Phase1 completed (100%)	100%	100%	100%	G	Project completed and energized. 247 households connected
D145	Electricity Infrastructure Development	Electrification of KhayalamC/ Legobareng/ Shiluvane Ext15	Q1: Designs approved by ESKOM (10%) Q2: Appointment of contractor finalised (20%) Q3: Construction 50% (60%) Q4: Electrification of 190 households in KhayalamC/ Legobareng/ Shiluvane Ext15 completed (100%)	100%	100%	100%	G	Project completed and energized. 136 households connected.
D146	Electricity Infrastructure Development	Electrification of Leolo/ Legobareng/Serare/ Mogabe/ Tshidinko Phase1	Q1: Designs approved by ESKOM (10%) Q2: Appointment of contractor finalised (20%) Q3: Construction 50% (60%) Q4: Electrification of 83 households in Leolo/ Legobareng/Serare/ Mogabe/ Tshidinko Phase1 completed (100%)	100%	100%	100%	G	Phase1 of the project completed. Phase2 of the project will continue in 2017/18 financial year.
D147	Electricity Infrastructure Development	Electrification of Dan/ Lusaka	Q1: Designs approved by ESKOM (10%) Q2: Appointment of contractor finalised (20%) Q3: Construction 50% (60%) Q4: Electrification of 130 households in Dan/ Lusaka completed (100%)	100%	100%	94%	O	Physical construction completed. Eskom busy finalizing updating of ENS. Awaiting Energization
D148	Electricity network upgrade and maintenance	Energy efficiency and demandside management (Tzaneen, Nkowankowa & Lenyenye)	Q1: Finalisation of appointment of consultant and contractor (10%) Q2: Installation and retrofitting of water purification equipment and aircons (20%) Q3: Installation and retrofitting of water purification equipment and aircons (70%) Q4: Installation and retrofitting of water purification equipment and aircons completed (100%)	100%	100%	100%	G	Project completed
D149	Electricity network upgrade and maintenance	Electrical Master Plan Development	Q1: Consultant appointed field work conducted (25%) Q2: Draft Master Plan developed (50%) Q3: Final Master Plan available for submission to Council (100%) Q4: Not applicable this quarter	100%	100%	100%	G	Project completed
D150	Electricity network upgrade and maintenance	Provision of Capital Tools (Urban)	Q1: Procurement of capital tools as and when required, report acquisitions to Council (25%) Q2: Procurement of capital tools as and when required, report acquisitions to Council (50%) Q3: Procurement of capital tools as and when required, report acquisitions to Council (75%) Q4: Procurement of capital tools as and when required, report acquisitions to Council (100%)	100%	100%	100%	G	Capital tools and equipment is only purchased when it is needed
D151	Electricity network upgrade and maintenance	Provision of Capital Tools (outlying)	Q1: Procurement of capital tools as and when required, report acquisitions to Council (25%) Q2: Procurement of capital tools as and when required, report acquisitions to Council (50%) Q3: Procurement of capital tools as and when required, report acquisitions to Council (75%) Q4: Procurement of capital tools as and when required, report acquisitions to Council (100%)	100%	100%	100%	G	Tools purchased as and when required
D152	Electricity network upgrade and maintenance	Rebuilding of Lalapanzi 33 kv line (2km)	Q1: Determine scope of work and source quotations (10%) Q2: Issue orders to service providers, physical construction at 10% (20%) Q3: Physical progress at 50% (60%) Q4: Rebuilding of Lines- Greenfog - Haenertsburg (12km) completed (100%)	100%	100%	100%	G	Rebuilding of line completed
D153	Electricity network upgrade and maintenance	Rebuilding of Mashutti 11kv line (4km)	Q1: Determine scope of work and source quotations (10%) Q2: Issue orders to service providers, physical construction at 10% (20%) Q3: Physical progress at 50% (70%) Q4: Rebuilding of Mashutti 11kv line (4km) completed (100%)	100%	100%	100%	G	Rebuilding of 5km line at Mashuti Completed.
D154	Electricity network upgrade and maintenance	Rebuilding of Deeside 11kv line from Red Arc to Rooster and Woodside Farm (2.5km) Phase 1 of 2	Q1: Determine scope of work and source quotations (10%) Q2: Issue orders to service providers, physical construction at 50% (60%) Q3: Rebuilding of Deeside 11kv line from Red Arc to Rooster and Woodside Farm (2.5km) completed (100%) Q4: Not applicable this quarter (100%)	100%	100%	100%	G	Rebuilding of 3.5km line completed
D155	Electricity network upgrade and maintenance	Rebuilding of Yamorna/ Shivurali 11kv line (4km)	Q1: Determine scope of work and source quotations (10%) Q2: Issue orders to service providers, physical construction at 10% (20%) Q3: Physical progress at 50% (70%) Q4: Rebuilding of Yamorna/ Shivurali 11kv line (4km) completed (100%)	100%	100%	100%	G	Rebuilding of 5km line completed
D156	Electricity network upgrade and maintenance	Rebuilding of Ledzee 11kv line from LZ44 to Vandergrey Farm (3.5km)	Q1: Determine scope of work and source quotations (10%) Q2: Issue orders to service providers, physical construction at 10% (20%) Q3: Physical progress at 50% (70%) Q4: Rebuilding of Ledzee 11kv line from LZ44 to Vandergrey Farm (3.5km) completed (100%)	100%	100%	100%	G	Rebuilding of 4.5 km line completed
D157	Electricity network upgrade and maintenance	Replacing of old SS1 electrical substation circuit breakers with compact switchgear	Q1: Initiate the appointment of a consultant (10%) Q2: Appointment of consultant and contractor finalised. (25%) Q3: Construction of Switching station 1 commencing, physical progress at 50%. (50%) Q4: Construction of Switching station 1 completed (100%)	100%	100%	25%	R	Project in Tender stage: Tenders exceeded the budget amount. The Budget will be utilized for a much needed crane and Project SS1 to be moved to the next financial year with increased budget.
D158	Electricity network upgrade and maintenance	Replacement of auto-reclosers (11kv and 33kv)	Q1: Identify strategic location of auto-reclosers (10%) Q2: Order for Delivery of auto-reclosers (20%) Q3: Auto Reclosers delivered (30%) Q4: Installation of Auto Reclosers completed (100%)	100%	100%	40%	R	Autoreclosers withdrawn from stores. Awaiting outage to install A/R
D159	Electricity network upgrade and maintenance	Renewal, Repairs and Maintenance on pre-paid meters	Q1: Acquire quotations for the procurement of pre-paid meters and data concentrators (10%) Q2: Placing of orders by end November (35%) Q3: Meters and data concentrators received (50%) Q4: Installation of data concentrators and meters as and when required (100%)	100%	100%	100%	G	158 Conversions done to date. 8 new 20Amp customers done at Tarentaalrand. Stores received meters from ACTOM that was on backorder
D160	Electricity network upgrade and maintenance	New electricity Connections (Consumer contributions)	Q1: Funds received for services contributions spent on re-capitalisation of the network (10%) Q2: Funds received for services contributions spent on re-capitalisation of the network (20%) Q3: Funds received for services contributions spent on re-capitalisation of the network (30%) Q4: Funds received for services contributions spent on re-capitalisation of the network (100%)	100%	100%	100%	G	New connections in progress. Ongoing
D161	Office Administration	Purchase of office furniture (EED)	Q1: Not applicable this quarter (0%) Q2: Not applicable this quarter (0%) Q3: Procurement process for the acquisition of furniture (10%) Q4: Furniture procured and delivered (100%)	100%	100%	100%	G	Furniture to be purchased as and when required. Not applicable this financial year. Budget not available.
D162	Sound Governance	% of Departmental Internal Audit findings resolved (EED)	Percentage	100%	100%	100%	G	No outstanding internal findings
D163	Human Resource Management	# of employees with technical skills/capacity (engineers & technicians - EED)	Number	20	20	19	O	Manager Outlying areas promoted to Director Electrical Engineering services

The ability of the Electricity Department to maintain the network was severely affected by the high number of vacancies on a technical level (see Table 29).

Table 29: Employees - Electricity Services
Job level	2015/16	2015/16
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	4	3	25%	4	2	50%
Level 4-6	32	18	43%	32	19	41%
Level 7-9	30	12	60%	30	14	53%
Level 10-15	120	70	41%	51	28	45%
Level 16-17	0	0	0%	69	40	42%
Total	186	103	44%	186	103	44%

Table 30: Financial Performance 2016/17: Electricity Services (R'000)
Detail	2015/2016	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	442 159	523 701	533 197	463 631	69 565
Expenditure:
Employees	39 077	48 954	48 954	43 786	5 168
Repairs & Maintenance	8 241	13 798	16 798	15 841	957
Other	409 742	422 642	432 788	422 393	10 394
Total Operational Expenditure	457 060	485 394	498 540	482 020	16 520
Net Operational (Service) Expenditure	(14 901)	38 307	34 657	(18 388)	53 045

Table 31: Capital Expenditure 2016/17: Electricity Services
Capital Projects	2016/2017
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
Prepaid Renewal Repairs and Maintenance	R250,000	R250,000	R95,986	61.6%	R1,053,200
Energy Efficiency and Demand Site Management	R7,000,000	R7,000,000	R6,986,891	0.19%	R19,303,445
Electrical Master Plan Development	R750,000	R750,000	R648,532	13.5%	R648,532
Replacing of old SS1 electrical substation circuit breakers with compact switchgear	R2,500,000	R2,500,000	R0	100%	R0
Rebuilding of lines - Mashuti 11kv (4km)	R 600,000	R 600,000	R568.351.51	94.73	R568.351.51
Rebuilding of lines - Lalapanzi to Waterbok (2 km)	R 400,000	R 400,000	R 369,775.98	92%	R 421,544.62
Rebuilding of Deeside 11kv line from Red ARC to Rooister and Woodside Farm (2.5 km)	R 435,000	R 435,000	R 434,291.49	99.8%	R 434,291.49
Rebuilding Of Yamorna /Shivurali 11kv line ( 4 km)	R 665,000	R 665,000	R 664,727.92	99.96%	R 664,727.92
Rebuilding of Ledzee 11kv line from LZ 44 to Van der Gryp Farm (3.5 KM)	R 525,000	R 525,000	R 524,026.34	99.8%	R 524,026.34
Replace 10 x 11 kV and 6 x 33 kV Auto Reclosers per annum	R 2,025,000	R 2,025,000	R 941,338.36	45.92%	R 941,338.36

* Including past and future expenditure as planned for the next 3 years

SOLID WASTE MANAGEMENT

Waste-collections from household at 2012; achievements and challenges faced in 2016/17.

The mandate of GTM is to provide all households with a basic removal service to protect the environment for the benefit of future and present generations. This is done through legislative and other measures to prevent pollution and ecological degradation and promoting conservation to secure sustainable development. Waste Management Services is rendered as follows:

8,537 (8%) urban households receive a full kerbside-collection service at high density settlements with more than 40 dwellings per hectare.

33,600 (31%) households in rural-areas receive a basic removal service from a central collection point at medium density settlements with 10 - 40 dwellings per hectare.

66,550 households using communal dump or own refuse dump in remote rural areas.

Progress with waste recycling; street cleaning& disposal

Recycling at source from business & industrial premises is undertaken in Tzaneen; Nkowankowa; Letsitele. Composting-Organic waste (garden) is treated at a basic technology composting site while the re-use of firewood (tree-stumps and -logs) from the Landfill are delivered to various rural areas. Urban streets, main roads & urban taxi / bus ranks are cleaned on a regular and period schedule from all debris and solid waste. Disposal takes place at an 11 hectare permitted landfill - site, which is managed in compliance with specifications. The expected life-span of the site is ± 15 years. The top three service delivery priorities and the impact we have had on them during the year:

Composting - 100% of all incoming Organic waste (garden) is treated at a basic technology composting plant

Rural Waste Management EPWP Job-creation - 465 EPWP Beneficiaries for the programme were appointed.

Sanitary Land filling at a permitted site.

Measures taken to improve performance include:

Waste Minimization - Procurement of Contractors to collect & transport recyclable-materials

Composting - The procurement of a Contractor with appropriate equipment to operate compost-making, as part of Landfill management was finalized

Rural Waste Management through the declaration of demarcated localities for basic refuse removal services, the financing basic refuse removal services and the appointment of community-based Service-Providers.

GTM responds to the provision of waste collection services in the rural areas mainly through the EPWP programme with 465 EPWP Rural Waste Management beneficiaries as temporary workers for the programme, conditionally as per the Ministerial determination

Table 32: Household access to solid waste collection services 2014/15 - 2016/17
Level of access	2014/2015	2015/16	2016/17
No of Households	% of Total	No of Households	% of Total	No of Households	% of Total
Solid waste removal once a week (level 1)	8,537	8%	8,537	8%	8,537	8%
Removal less frequently than once a week (level 2)	33,600	31%	33,600	31%	36,038	33%
Using communal dump + own refuse dump	66,550	61%	66,550	61%	64,112	59%
Total Households	108,687	100%	108,687	100%	108,687	100%
No of Households receiving Free Basic Waste services	993	1,193	1,201
Budget allocation for Solid waste collection services	R 55,137,406	R 71,017, 213	R 85,088,886

Table 33: Service Delivery targets for Waste as set out in SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D120	Waste Management	# of households with collection of waste once per week	Number	8,537	8,537	8,648.33	G2	The Category-Tariff-Report from C.F.O. is only available on hard-copy
D121	Waste Management	R-value spent on waste management	R-value	R 77,560,766	R 77,560,766	R 52,302,721.55	R	(1) The C.F.O.`s office dealing with expenditure report did forward as per arrangement the exp.-report in time. (2) The Divisional Waste Manager is accountable for less than 40% of expenditure-line-items. (3) The control of the other 60 % of such line-items is vested @ Dept. of the C.F.O.
D122	Waste Management	# of Rural Waste Service Areas serviced (waste management)	Number	30	30	30	G	1) Oversight function is being done by Ward Cllrs. and Traditional Leader to ensure the Temp. Workers (T.o.w.`s) are working according to schedule (2) Fleet Management fail service delivery at present as only 3 of the 7 x R.E.L.`s is functional
D123	Waste Management	# of Urban Waste Service Areas serviced (waste management)	Number	5	5	5	G	To ensure more accurate P.o.E.`s an electronic route sheet / tracking-system need to be installed in each vehicle with a sustainable monitoring as per a "unique-route" for each area
D124	Waste Management	% Households with access to basic level of solid waste management services	Percentage	41%	41%	41%	G	(1) Urban numbers is validated by Category-Tariff-Billing-Report (2) Rural is validated by Maps (by Digicap) of which the nu. of H/h`s is not validated due to no-formalized villages

Table 34: Employees - Solid Waste Services
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	3	3	0%	13	3	76%
Level 7-9	1	1	0%	2	1	50%
Level 10-15	136	96	29%	12	11	8%
Level 16-17	0	0	0%	124	90	27
Total	141	101	28%	152	106	30%

Table 35: Financial Performance 2016/17: Solid Waste Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	28 344	46 802	46 802	30 028	16 774
Expenditure:
Employees	14 543	19 426	19 426	16 487	2 939
Repairs & Maintenance	2 281	4 399	4 249	3 565	684
Other	14 034	22 639	22 789	23 321	(532)
Total Operational Expenditure	30 858	46 464	46 464	43 373	3 090
Net Operational (Service) Expenditure	(2 514)	338	338	(13 345)	13 683

Table 36 below presents the progress made with the implementation of capital projects allocated for the Solid Waste Collection during 2016/17.

Table 36: Capital Expenditure 2016/17: Solid Waste Services (R'000)
Capital Projects	2016/2017
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
<None>
Total

* Including past and future expenditure as planned for the next 3 years

The Largest solid waste management projects are:

8,537 households received collection of waste once per week

30 Rural Waste Service Areas serviced (waste management) received a ON-CALL removal services

5 Urban Waste Service Areas serviced (waste management) received a KERBSIDE removal services

41 % of Households got access to a basic level of solid waste management

The performance of the service is constrained by the lack of sufficient increase in budget allocation to fund the replacement of vehicles, filling of vacancies, review of the organisational structure for the service, as well as the expansion of the service to the rural areas in a sustainable manner.

3.5	HOUSING & BUILDING CONTROL

3.5.1	HOUSING

All projects are developed in terms of the approved Integrated Residential Development Programme. Rural projects are implemented in terms of the Rural Housing Subsidy Programme. The Greater Tzaneen Municipality prioritise the development areas for wards with least low cost housing subsidy/RDP houses. The following Villages were prioritized for 2016/17: Myakayaka (15), Pulaneng (16), Thako (15), Lerejeng (10), Mhangweni (13), Mafarana (11), Rita (14), Pelane (1), Senakwe (1), Senopelwa (1), Nkambako (4), Mandlakazi (3), Khujwana (10), Mbambamencisi (2), Nkowankowa (1) Lefara (17), Mariveni (21) Bordeaux (4), Shikwambana (15), Mokgwathi Block 11 (1), Moloketla (12), Mopye (12), Nwamitwa (1), Rwanda (3), Shipungu (15), Sunnyside (16), Burgersdorp (15), Sharpville (14), Mokomotsi (14), Mohlaba Headkraal (8), Sasekane (12), Mookgo Block 7 (1), Mookgo block 6 (1), Wally (4), Runnymade (2), Mothomeng (3), Relela (1), Lwandlamuni (2), Mogapeng (1), Shiluvane (1), Marumofase (1), Serare (1), Leolo (1), Khopo (15), Mshongoville (9), Mohlava-cross (2), Sebabane (15), Mokgolobotho (10), Dan (1) . The total allocation was 600 units for 2016/17 financial year and 392 units are completed. 208 units were rolled over to 2017/18 financial year. No emergency units allocated for 2016/17. See Table 37 for the progress with regard to the implementation of RDP houses.

Table 37: Percentage of households with access to basic housing
Year	Total Households	Households in informal houses**	% of HH in formal settlements
2011/2012*	108 926*	7 729	7.01%
2012/2013	108 926*	7 729	7.01%
2013/2014	108 926	7 729**	7.01%
2014/2015	108 926	7 729**	7.01%
2015/2016	101420	2 756	3%
2016/2017	101420	2756	3%

*Number of Households as established through Census 2011 (Stats SA, 2011)

**GTM is a predominantly rural municipality, the definition of informal houses in a rural context has not been clarified and therefore figure represents the Stats SA definition which only includes houses with an informal structure (not referring to the town planning context thereof)

Table 38: Housing Service Delivery targets for 2015/16 as set out in the SDBIP
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D187	Spatial Development	Integrated Sustainable Human Settlements Plan (ISHSP) reviewed by 30 May '17	Percentage	100%	100%	100%	G	ISHSP completed.
D188	Spatial Development	# of land parcels acquired for development	Number	1	1	1	G	Community resolution signed and money transferred.
D189	Integrated Human Settlements	Land Acquisition at Letsitele	Q1: Negotiations with land owners for GTM to buy land (50%) Q2: Agreement on sale of land, contract finalised. (75%) Q3: Budgeted amount transferred. (85%) Q 4: Budget for the payment of the outstanding balance on land at Letsitele. (100%)	100%	100%	100%	G	Deed of sale signed and money is paid to the Attorneys trust account.

Table 39: RDP Housing projects 2016/17
Village (Location)	Commencement date	Units allocated	Units completed	Challenges/Achievements
Myakayaka	April 2016	15	Completed	None
Pulaneng	April 2016	16	Completed	None
Thako	April 2016	15	Completed	None
Lerejeng	April 2016	10	Completed	None
Mhangweni	April 2016	13	Completed	None
Mafarana	April 2016	11	Completed	None
Rita	April 2016	14	Completed	None
Pelane	April 2016	2	Completed	None
Senakwe	April 2016	1	Completed	None
Senopelwa	April 2016	1	Completed	None
Nkambako	April 2016	4	Completed	None
Mandlakazi	April 2016	3	Completed	None
Khujwana	April 2016	10	Completed	None
Mbambamencisi	April 2016	2	Completed	None
Nkowankowa	April 2016	1	Completed	None
Lefara	April 2016	17	Completed	None
Mariveni	April 2016	21	Completed	None
Bordeaux	April 2016	4	Completed	None
Shikwambana	April 2016	15	Completed	None
Mokgwathi block 11	April 2016	1	Completed	None
Moleketla	April 2016	12	Completed	None
Mopye	April 2016	12	Completed	None
Nwamitwa	April 2016	1	Completed	None
Rwanda	April 2016	3	Completed	None
Shipungu	April 2016	15	Completed	None
Sunnyside	April 2016	16	Completed	None
Burgersdorp	April 2016	15	Completed	None
Sharpville	April 2016	14	Completed	None
Mokomotsi	April 2016	14	Completed	None
Mohlaba Headkraal	April 2016	8	Completed	None
Sasekane	April 2016	12	Completed	None
Mookgo Block 7	April 2016	1	Completed	None
Mookgo Block 6	April 2016	1	Completed	None
Wally	April 2016	4	Completed	None
Runnymade	April 2016	2	Completed	None
Mothomeng	April 2016	3	Completed	None
Relela	April 2016	1	Completed	None
Lwandlamuni	April 2016	2	Completed	None
Mogapeng	April 2016	1	Completed	None
Shiluvane	April 2016	1	Completed	None
Marumofase	April 2016	1	Completed	None
Serare	April 2016	1	Completed	None
Leolo	April 2016	1	Completed	None
Khopo	April 2016	15	Completed	None
Mshongoville	April 2016	9	Completed	None
Mohlava-cross	April 2016	2	Completed	None
Sebabane	April 2016	15	Completed	None
Mokgolobotho	April 2016	10	Completed	None
Dan	April 2016	11	Completed	None

Challenges Experienced on RDP Housing:

Allocation of houses from CoGHSTA does not meet the demands of the community

No delegated powers for the Municipality on the provision of housing

Backlog figures are not reflected in terms of income levels and special needs.

Waiting lists are not in accordance to the National Criteria, no Housing Subsidy System (HSS)

Not all stakeholders involved in the identification of beneficiaries are familiar with the National requirements to qualify for a housing subsidy.

The public complains about identified beneficiaries but do not submit comments or objections during publication of lists.

The unauthorised selling and demolishing of RDP units.

Emergency lists submitted are scattered and this has a negative cost implication.

Minimal participation of beneficiaries/ownership of projects.

Greater Tzaneen Municipality is predominantly rural and this poses problems in balancing backlogs vs. spatial growth patterns through the provision of low cost housing.

The non-availability of land for development in the townships and some villages.

An integrated approach in addressing the needs of communities is still lacking

Stand numbers in some villages are not easily detected.

Housing Consumer Education

2016/17 Housing Consumer Education was successfully conducted on the 10th of November 2016 at Nkowankowa Community Hall for beneficiaries at Section A & B then for section C & D was conducted on the 11 November 2016 at Masungulo Primary School. The total number of beneficiaries targeted was 700.

Housing Backlog

The Municipal housing backlog is 12,565 but pending the review of beneficiaries for 2013 to 2017.

The middle income backlog is 1762.

3.5.2	BUILDING CONTROL

The unit is responsible for enforcing compliance to the National Building Regulation and building standards (Act no 103 of 1977), including the SANS10400. The unit is responsible for approval of building plans, conducting inspections, issuing of occupation certificates. The division is receiving +_ 50 plans a month and almost half of that is approved monthly and the rest is returned back to the owners to correct errors. The main challenge is the absence of an electronic building control system improve the turnaround time for responding to the public.

Table 40: Square meters and value of building plans approved 2013/14 – 2016/17
2013/14	2014/15	2015/16	2016/17
Area (m²)	Value (R)	Area (m²)	Value (R)	Area (m²)	Value (R)	Area (m²)	Value (R)
New houses approved	18 836	84 762 000	22 972	126 346 000	24043	125 023 600	22 112	114 982 400
Additions to existing houses approved	3 733	16 798 500	3 904	21 472 000	5704	29 660 800	4478	23 285 600
New shops approved	0	0	484	2 662 500	1609	8 366 800	2652	13 790 400
Additions to existing shops approved	1445	6 502 500	0	0	0	0	175	910 000
Additions to existing industrial approved	5521	24 844500	2463	13 546 500	0	0	630	3 276 000
New churches approved	0	0	2242	12 331 000	0	0	1166	6 063 200
New townhouses approved	0	0	300	1 650 000	1031	5 361 200	4891	25 433 200
New other ( cell phone towers ) approved	0	0	0	0	310	1 612 000	656	3 411 200

During 2016/17 there was a significant increase in the applications for approval of building plans for townhouses, see Figure 2 below.

The staff compliment of the building and maintenance division is presented below in Table 41 below:

Table 41: Employees – Building and Maintenance (2016/17)
Job level	2015/16	2016/17
No of Posts	No of Posts	No of Posts	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	1	1	1	0%
Level 4-6	11	13	11	14	12	14%
Level 7-9	3	3	3	3	2	33%
Level 10-15	16	28	16	15	5	66%
Level 16-17	0	0	0	13	5	38%
Total	31	45	31	46	25	45%

The Capital allocation for Building and Maintenance is presented in Table 42 below.

Table 42: Capital Project Expenditure 2016/17: Building and Maintenance (R'000)
Capital Projects	2016/17
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
Replacement of roof in the civic Centre in Tzaneen	R500,000	R 500,000	R 143,147	R 356,853	R500 000

The financial performance of the Building and Maintenance Division is presented in Table 43.

Table 43: Financial Performance 2016/17: Building and Maintenance (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	1 804	1 495	1 495	2 154	(659)
Expenditure:
Employees	8 286	10 180	10 180	8 994	1 186
Repairs & Maintenance	1 167	1 851	1 341	1 072	270
Other	1 140	4 033	4 003	874	3 129
Total Operational Expenditure	10 593	16 064	15 524	10 940	4 585
Net Operational (Service) Expenditure	(8 789)	(14 569)	(14 029)	(8 786)	(5 243)

The under expenditure reflected in Table 43 is due to delays in filling of vacant positions.

3.6	FREE BASIC SERVICES AND INDIGENT SUPPORT

The Municipal Council gives priority to the basic needs of the community, promotes the social and economic development of the community and ensures that all residents and communities in the Municipality have access to at least the minimum level of basic municipal services, in terms of Section 152 (1) (b) and 153 (b) of the Constitution. Basic services are generally regarded as electricity, clean water within reasonable distance, basic sanitation, solid waste removal and access to and availability of roads.

The key purpose of an Indigent Subsidy Policy, adopted by Council, is to ensure that households with no or a low income are not denied a reasonable service, while the municipality is not financially burdened with non-payment of services. Provided that grants are received and funds are available, the Indigent Subsidy Policy should remain intact. To achieve this, a threshold income level of a maximum of the approved pension amount for old age i.e. R1 260 per individual or R2 520 per household applies. The consumer, in order to qualify as an indigent, needs to complete the necessary documentation as required and agree to regulations and restrictions stipulated by Greater Tzaneen Municipality.

Table 44: Financial Performance 2016/17: Cost to the Municipality of Free Basic Services Delivered (R'000)
Service	2015/16	2016/17
Actual Expenditure	Budget	Adjustment Budget	Actual Exp	Variance to budget
Electricity	2 856	4 000	2 994	25%
Waste Collection	1 542	1 620	1 510	7%
Property rates	21 606	23 000	21 659	6%
Total	26 004	28 620	26 163	9%

The variance to budget is the result of the indigent register that was not approved by Council due to non- verification through an external scan of applicants. Provision is also made on our Credit Control and Debt Collection Policy for indigent debtors in line with our rates and tariffs and any national policies on indigents. The Equitable Share Grant and the free basic electrical grant assist in financing the benefits that the registered indigents are to receive, in the form of discounted tariffs for services consumed. The cost incurred by GTM to provide free basic services are presented in Table 43.

Table 45: Free Basic Services provision to Low Income Households*
Registered Indigents	Free Basic Water	Free Basic Sanitation	Free Basic Electricity	Free Basic Waste Removal
Year	Total HH	HH Receiving	% of indigents[1]	HH Receiving	% of indigents	HH Receiving	% of indigents	HH Receiving	% of indigents
2011/2012	11 161	1 560	MDM	1 367	MDM	7 350	66%	1 385	12%
2012/2013	22 998	1 549	MDM	1 357	MDM	7 231	31%	1 377	6%
2013/2014	31 129	1 666	MDM	861	MDM	5 565	18%	917	3%
2014/2015	31 129	2 733	MDM	2 733	MDM	31 129	100%	933	3%
2015/2016	36 427	1 408	MDM	1 408	MDM	36 427	100%	1 193	3%
2016/20 17	36427	1 418	MDM	1 418	MDM	36 427	100%	1 201	3%

Table 46: Free Basic Service Delivery targets as contained in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D54	Free Basic Services	R-value of Free Basic Electricity to Households	R-value	R 4,000,000	R 4,000,000	R 2,991,664.50	R	June invoice from Eskom paid only in July
D55	Free Basic Services	% of households earning less than R 1100 served with free basic electricity (total registered as indigents)	Percentage	100%	100%	100%	G	All indigents registered on Promis are receiving free basic electricity.
D56	Free Basic Services	% households earning less than R 1100 with access to free basic waste removal (total registered as indigents)	Percentage	7%	7%	11.83%	B	All registered indigents on Promis do receive rebate. Villages included in indigent register but not measurable.
D57	Free Basic Services	Total number of registered indigent households who received free basic water and sanitation (5 formal towns)	Number	1,380	1,380	1,387.92	G2	Indigents registered on Promis receiving rebate

COMPONENT B: ROADS & TRANSPORT

Greater Tzaneen Municipality is responsible for the provision and maintenance of the municipal roads falling within the various towns in the Municipal area, as stated in Schedule 5B of the Constitution of the Republic of South Africa. The Greater Tzaneen Municipality manages the municipal road network that comprises of district /connector and municipal / access roads in terms of road classification. The municipality is tasked with the planning, design, maintenance, construction and usage of these roads. It is also required to prevent the deterioration of surfaced roads by conducting preventative maintenance, control of storm water and provision of drainage structures and to surface priority roads.

Public transport services within the Greater Tzaneen Municipality is limited to bus, minibus-taxi and Limited metered taxi operations. The operations is typically characterised by relatively high directional splits, with the dominant travel pattern of passengers being “home to work” in the morning with a return trip in the evening. On most routes the demand peak during the morning forward trip and evening return trip. According to the NHTS more than 50% of general trips are undertaken by public transport, with more than 60% of all public transport trips made with minibus taxi and almost 20% of public transport trips by bus. Greater Tzaneen Municipality has just developed the Integrated Development Plan which is waiting for approval by Council.

3.7	ROADS & STORMWATER

Greater Tzaneen Municipality road network consist of 3 091 km of which 256 km is paved (asphalt and single seals) and 2 834 km is unpaved (gravel, earth). GTM is responsible for providing and maintaining local roads as stated in Schedule 5B of the Constitution of the Republic of South Africa. Roads maintenance services includes maintenance of gravel roads, tarred roads patching and maintenance of stormwater drainage systems. During 2016/17 financial year we were able to construct 2.8km of tarred roads and the other roads are multiyear projects that are going to be completed in the next financial year. We were able to assist communities living in poverty by hiring 30 temporary labourers through EPWP for three months. Greater Tzaneen Municipality has developed a Road Master plan which is waiting for approval by Council.

Table 47: Road infrastructure 2011/12 – 2015/16
Year	Gravel	Tar/Asphalted
Total km	Newly constructed	Upgraded to tar	Maintained	Total km	Newly constructed	Re-sheeted	Maintained
2011/2012	1610	0	0	1824	690	0	0	56 727 m2
2012/2013	1610	0	0	2355	690	0	0	7 594 m2
2013/2014	1595	0	15	67.7	705	15	0	14 051 m2
2014/2015	1577.5	0	17.5	2909	722.5	17.5	0	14 890 m2
2015/2016	1569	0	8.5	3136	731	8.5	0	11 636 m2
2016/2017	3091	0	2.8	1493	733.8	2.8	0	12 574 m2

After the development of the road master plan, it was discovered that Greater Tzaneen Municipality owns 3091km which is more than 2300km, which was just an estimate before the development of the road master plan. Tarred roads are 256 km and not 733.8km which was also just an estimate.

During 2016/17 Only 2.8 km was upgraded from gravel to tar because other roads which are under construction are multiyear projects which are going to be completed in the next financial year. 12 574m² potholes patched and 4518km graded. Please note that some of the roads were graded more than once because they need grading after heavy rains and there is no stormwater drainage systems in place.

Table 48: Cost of construction & Maintenance of roads (2011/12 - 2016/17)
Year	Gravel	Tar/ Asphalt
Maintained (Km)	Expenditure (R'000)	Newly Constructed (Km)	Expenditure (R'000)	Maintained (m2)	Expenditure (R'000)	Newly Constructed (Km)	Expenditure (R'000)
2012/2013	2355	5 388 907	0	0	7 594	5 013 946	0	0
2013/2014	67.7	6 517 059	0	0	14 051	4 248 879	2.55km	13 394 036
2014/2015	2909	9 175 441	0	0	14 890	8 501 942	17.5	8 103 335
2015/2016	3136	8 920 313	0	0	11 636	9 375 697	8.5	80 590 684
2016/2017	1493	8 795 187	0	0	12 574	8 597 526	2.8	16 474 173

Table 49: Service Delivery targets for Roads & Stormwater as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D165	Budget management	% MIG funding spent	Percentage	100%	100%	102%	G2	Because of the received bonus the total allocation for 2016/17 fy increased.
D171	Roads and Storm water Infrastructure Development	Km of roads tarred	Kilometers	12	12	2.98	R	2.98km tarred on Tickyline to Makhwibidung Road. Target not met due to some of our projects which were relying on being litigated which are Moruji to Kheshokholwe Road and Tickyline to Burgersdorp road. Multiyear projects which will be completed in the next financial year.
D172	Roads and Storm water Infrastructure Development	Kwekhwe Low Level Bridge	Q1: Advertisement for the appointment of a contractor (15%) Q2: Appointment finalised, contractor on site. (25%) Q3: Physical construction at 50% (75%) Q4: Construction of Kwekhwe low level bridge completed (100%)	100%	100%	25%	R	Contractor's appointment was delayed and was only appointed in June.
D173	Roads and Storm water Infrastructure Development	Rikhotso low level bridge	Q1: Construction of low level bridge, physical progress at 50% (50%) Q2: Construction of low level bridge at Rikhotso completed (100%) Q3: Not applicable this quarter Q4: Not applicable this quarter	100%	100%	100%	G	Bridge completed
D174	Roads and Storm water Infrastructure Development	Mokonyane low level bridge	Q1: Construction of low level bridge, physical progress at 50% (50%) Q2: Construction of low level bridge at Mokonyane completed (100%) Q3: Not applicable this quarter Q4: Not applicable this quarter	100%	100%	100%	G	Bridge completed
D175	Roads and Storm water Infrastructure Development	Khubu to Lwandlamuni low level bridge	Q1: Advertisement for the appointment of a contractor (15%) Q2: Appointment finalised, contractor on site. (25%) Q3: Physical construction at 50% (75%) Q4: Construction of Khubu to Lwandlamuni low level bridge completed (100%)	100%	100%	90%	O	Contractor's physical project is 90%. Target was not met due to additional scope of works which was identified during practical completion.
D176	Roads and Storm water Infrastructure Development	Moruji to Matswi, Kheshokolwe Tar Road	Q1: Physical construction at 9% (25%) Q2: Physical construction at 18% (50%) Q3: Physical construction at 27% (75%) Q4: Physical construction at 35% (100%)	100%	100%	74%	R	The contractor delayed by rock blasting at 4km.
D177	Roads and Storm water Infrastructure Development	Rita, Khopo, Lefara, Zanghoma, Uhuru, Xipungu to Mariveni Tar Road (Phase 3 of 4)	Q1: Physical construction at 53% (25%) Q2: Physical construction at 71% (60%) Q3: Physical construction at 90% (80%) Q4: Physical construction at 100%, 12km completed (100%)	100%	100%	69%	R	A minor group in the community of Zanghoma is stopping the contractor to work through the village.
D178	Roads and Storm water Infrastructure Development	Tickyline, Myakayaka, Burgersdorp, Gavaza to Mafarana Tar Road	Q1: Physical construction at 30% (25%) Q2: Physical construction at 50% (50%) Q3: Physical construction at 75% (75%) Q4: Physical construction at 100% (100%)	100%	100%	85%	O	The project was delayed by non-delivery of storm water pipes.
D180	Maintenance and upgrading of municipal road infrastructure	Tzaneen Airfield Refurbishment	Q1: Finalise specifications. (5%) Q2: Appointment of contractor finalised (10%) Q3: Physical construction underway at 50% (50%) Q4: Refurbishment of runway at airfield completed (100%)	100%	100%	10%	R	Contractor's appointment was delayed due to supply chain processes and the contractor was only appointed in June 2017.

Table 50: Employees - Roads & Stormwater Services
Job level	2015/2016	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	10	3	70%	10	3	70%
Level 7-9	0	0	0%	1	0	100%
Level 10-15	182	34	81%	67	20	70%
Level 16-17	0	0	0%	146	13	91%
Total	193	38	82%	225	37	83%

Table 51: Financial Performance 2016/17: Roads & storm water Services (R'000)
Detail	2015/16	2016/2017
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	150	150	150
Expenditure:
Employees	13 853	16 331	16 331	14 433	1 898
Repairs & Maintenance	21 302	27 026	26 996	24 949	2 047
Other	91 652	69 487	69 452	94 889	(25 438)
Total Operational Expenditure	126 808	112 843	112 778	134 271	(21 493)
Net Operational (Service) Expenditure	(126 808)	(112 693)	(112 628)	(134 271)	21 643

R14 433 000 was spent on employees related cost and R24 949 000 on repairs and maintenance. R94 889 000 was spent on the upgrading of roads from gravel to tar which were transferred to RAL.

Table 52: Capital Expenditure 2016/17: Roads and storm water Services (R'000)
Capital Projects	2016/17
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
Rita, Khopo, Lefara, Zanghoma, Uhuru, Xipungu to Mariveni Tar Road (Phase 3 of 4)	20 153 138	20 153 138	14 836 764	5 316 374	90 945 015
Tickyline, Myakayaka, Burgersdorp, Gavaza to Mafarana Tar Road	19 599 882	19 599 882	57 184 387	-37 584 505	134 827 924
Moruji to Matswi, Kheshokolwe Tar Road	22 839 889	22 839 889	7 684 346	15 155 543	127 904 236
Rikhotso low level bridge	2 000	2 000	1 077	923	1 370
Mokonyane low level of bridging	500	500	738	(238)	1 196
Khwekhwe low level of bridge	1 300	1 300	0	1300	2 207 307
Refurbishment of Tzaneen airfield runway	2 500	2 500	469	2 031	2 500
Agatha Cemetery low level bridge	0	1 881	260	(260)	1 881
Marumofase Pedestrian bridge	0	5 936	6 212	(6212)	3 283
Khubu to Lwandlamuni low level bridge	2 600	5 781	1 193	(1 407)	5 781
Speed Humps	0	1 595	684	(684)	1 595
Total	62 602	62 614	79 716	-17 116
* Including past and future expenditure as planned for the next 3 years

Table 53: 2017/18 Planned Targets for road infrastructure development
Project name	MIG Fund	Counter Fund	Total
Rita to Mariveni: Upgrading of Road from Gravel to Tar: Phase 4 of 4	R3,173,183	R0	R3,173,183
Moruji to Maswi: Upgrading of Road from Gravel to Tar: Phase 4 of 5	R34,839,965	R4,744,614	R39,584,579
Tickyline to Mafarana: Upgrading of Road from Gravel to Tar: Phase 4 of 4	R27,307,026	R5,372,558	R32,697,584
TOTAL	R65,320,174	R10,117,172	R75,455,346

Table 54: 2018/19 Planned Targets for road infrastructure development
Project name	MIG Fund	Counter Fund	Total
Moruji to Matswi: Upgrading of Road from Gravel to Tar: Phase 5 of 5	R32,689,259	R0	R32,689,259
Mawa Block 12 Low Level bridge	R3,100,234	R0	R3,100,234
Upgrading of CODESA to Hani street paving	R13,211,232	R0	R13,211,232
Nelson Ramodike High school Access Road: Phase 1 of 2	R7,120,787.99	R0	R7,120,787.99
Mopye Access Road Paving	R10,500,000	R0	R10,500,000
Mulati Access Road Paving: Phase 1of 3	R6,000,000	R0	R6,000,000
Upgrading of Khujwana to Lenyenye Access Road: Phase 1 of 2	R6,000,000	R0	R6,000,000
Upgrading of Mbambamencisi	R8,768,065	R0	R8,768,065
Upgrading of Juliesburg Sports Ground: Phase 2 of 2	R7,106,334	R0	R7,106,334
Lenyenye Taxi Rank	R3,584,088	R3,993,234.60	R3,584,088
Tickyline to Makhwibidung Stormwater Management	R0	R3,500,000	R0
PMU Management	R3,500,000	R0	R3,500,000
TOTAL	R101,580,000	R7,493,234.60	R109,073,234.60

Table 55: 2019/20 Planned Targets for road infrastructure development
Project name	MIG Fund	Counter Fund	Total
Nelson Ramodike Street Paving: Phase 2 of 2	R25,519,21	R0	R25,519,212
Mopye High School Access Road : Phase 2 of 2	R3,100,000	R0	R3,100,000
Mulati Access Road Paving: Phase 2 of 2	R24,090,609.92	R0	R24,090,609.92
Upgrading of Khujwana to Lenyenye Access Road: Phase 2 of 2	R35,942,728.08	R0	R35,942,728.08
Lenyenye Taxi Rank	R6,963,067.40	R0	R6,963,067.40
Refurbishment of Lenyenye Stadium	R13,007,714	R1,200,000	R14,207,714.
Thapane Cross, Mandlakazi to Nwamitwa Road	R17,095,668	R0	R17,095,668.60
PMU Management	R3,500,000	R0	R3,500,000
TOTAL	R107,529,000	R1,200,000	R108,729,000

3.8	LICENSING

Greater Tzaneen Municipality has 2 GTM Testing Stations. The Tzaneen Testing Station is a Grade A while the Nkowankowa station is Grade B. At these testing stations applications for learner and driver licenses are tested and processed. These office also assist with the renewal of driver licenses and the applications for professional driving permits. The licensing offices at the Civic Centre in Tzaneen processes registration and renewal of vehicle licenses.

Table 56: Licensing and Testing services 2012/13 - 2016/17
Year	Number of vehicle licenses issued	Number of drivers licenses issued	Number of professional driving permits	Revenue collected (R)
2012/2013	54202	18415	3618	R 20,463,353
2013/2013	52768	18441	3569	R32,303,810
2014/2015	57246	20097	4125	R28 185 551
2015/2016	52147	19383	3795	R19 016 770
2016/2017	53022	20733	4342	R21 029 021

Figure 7 presents the R-value revenue generated through the licensing of vehicles and drivers, showing a marked decline since 2012/13 to 2015/16 but this improved during 2016/17.

Table 57: Number of new vehicles registered
Year	Number
2012/13	12287
2013/14	12333
2014/15	12726
2015/16	12363
2016/17	13014

Table 58: Licensing Service Delivery targets for 2016/17 as contained in the SDBIP
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D132	Licensing and Testing services	% compliance with ENATIS legislative compliance (ad-hoc audits)	Percentage	100%	100%	100%	G	No report received

Table 59: Employees - Licensing and Testing Services
Job level	2015/16
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	23	10	56%	23	9	60%
Level 7-9	25	14	44%	25	13	48%
Level 10-15	11	4	64%	6	3	50%
Level 16-17	0	0	0%	7	2	71%
Total	60	29	51%	62	28	54%

Table 60: Financial Performance 2016/17: Licensing and Testing Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	6 416	49 285	49 285	53 354	(4 069)
Expenditure:
Employees	15 439	16 039	16 039	15 995	44
Repairs & Maintenance	1	47	21	21
Other	545	22 523	22 523	38 552	(16 029)
Total Operational Expenditure	15 985	38 609	38 583	54 546	(15 963)
Net Operational (Service) Expenditure	(9 569)	10 677	10 703	(1 192)	11 894

GTM provides a vehicle and drivers licensing service on behalf of the Provincial Department of Transport. 80% of the income generated must be paid to the province.

COMPONENT C: PLANNING AND DEVELOPMENT

As per the Greater Tzaneen Municipality Spatial Development Framework 2017 – 2022 (SDF) the following opportunities exist:

Land Availability in both Urban and Rural Areas; increases in the Population which leads to an Expansion and development of nodes;

Provision of affordable housing within urban areas, mostly towns; as well as densification of these areas (Nodal Plan Policy).

Rural Strategy and other policies

Restructuring of rural settlements through the NDP 2030 vision incorporated into SDF

Alignment of densification strategy with bulk infrastructure service delivery within Greater Tzaneen Municipality

The challenges facing spatial development however includes:

Strategic land in private hands which is therefore difficult for the municipality to access for urban expansion for urban development

Restriction of urban expansion due to being landlocked by commercial farms and environmentally sensitive areas, these include all the urban areas in GTM.

Conflict in allocation of land for settlement purposes between municipality and traditional leadership.

Constraints in the Civil infrastructure (water, sewage), demand is greater than supply, and the infrastructure is old

Pending finalisation of LUMS

Economic development opportunities exist in the following areas:

Agriculture and tourism

GTM is in the process of developing an Agrihub with the support from the Provincial Department of Economic Development, Environment and Tourism

Retail/Commercial business opportunities and re-industrialisation of nodes

Review of Property Rates Policy

Locating residents close to economic and employment opportunities.

3.9	TOWN PLANNING

The aim of the Town Planning function is to implement SPLUMA to achieve the following

Establishment of Tribunals; GTM has established and have a functioning Greater Tzaneen Municipal Planning Tribunal, and is in the process of establishing an Appeal Tribunal.

GTM has a Rural Backlog (in development Applications) which we are systematically processing and considering at approximately 30% per annum.

The SDF 2017 – 2022 was approved and is being implemented as per SPLUMA

Table 61: Employees - Town Planning services
Job level	2015/16	2016/17
Positions Filled	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	6	3	50%	6	3	50%
Level 7-9	1	1	0%	1	1	0%
Level 10-15	0	0	0%	0	0	0%
Level 16-17	0	0	0%	0	0	0%
Total	8	4	50%	8	4	50%

The financial performance of the Town Planning Service is presented in Table 67 below:

Table 62: Financial Performance 2016/17 Town Planning Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	91	100	100	151	(51)
Expenditure:
Employees	4 015	4 532	4 532	4 306	226
Repairs & Maintenance
Other	803	1 884	1 884	1 319	565
Total Operational Expenditure	4 099	6 415	6 415	5 625	790
Net Operational (Service) Expenditure	(3 947)	(6 315)	(6 315)	(5 474)	(841)

Table 63: Applications for Land use Development 2013/14 - 2016/17
Formalisation of Townships	Rezoning	Built Environment
2013/14	2014/15	2015/16	2016/17	2013/14	2014/15	2015/16	2016/17	2013/14	2014/15	2015/16	2016/17
Planning application received	1	1	0	1	19	19	18	29	640	524	572	502
Determination made in year of receipt	1	0	1	1	8	2	10	8	640	524	572	502
Determination made in following year	1	1	1	3	8	16	6	16	0	0	0	0
Applications withdrawn	0	0	0	0	1	1	3	1	0	0	0	0
Applications outstanding at year end	2	0	1	1	2	16	7	16	0	0	0	0

3.10	LAND MANAGEMENT

Land Use and Land Claims

Approximately 66% of the total land area of GTM is privately owned while 33% is owned by the state, mainly in Traditional Authority areas (Tribal land). A negligible extent is municipal commonage. Tribal land is not under controlled by the municipality. Currently there are almost 45 claims that have been lodged with the Land Claims Commission within Greater Tzaneen Municipality. The number of these claims provides an indication of the extent and potential impact these claims may have on the SDF planning proposals. The Land & Human Settlement Division has an approved organogram of ten positions, of which eight have been filled.

Table 64: Employees for Land and Human Settlement function
JOB LEVEL	2015/2016	2016/17
No of posts	Positions filled	Vacancy rate	No of posts	Positions filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	4	3	25%	4	3	25%
Level 7-9	5	2	60%	5	2	60%
Level 10-15	2	1	50%	2	1	50%
Level 16-17	0	0	0%	0	0	0%
Total	11	7	36%	11	7	36%

Table 65: Financial Performance 2016/17: Land and Human Settlements (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)
Expenditure:
Employees	4 613	5 247	5 247	5 086	161
Repairs & Maintenance	44	45	20	20
Other	4 455	1 021	1 021	1 416	(394)
Total Operational Expenditure	9 111	6 313	6 288	6 502	(214)
Net Operational (Service) Expenditure	(9 111)	(6 313)	(6 288)	(6 502)	214

Challenges on Land Management

Illegal occupation of state own land held in trust of traditional Councils

No serviced stands to meet the demand.

Land Management Activities for 2016/17 included continued to lead negotiations with land owners, concluding the signing of deeds of sale, appointment of conveyancers and managed the Transfer and registration of the property in the name of Greater Tzaneen Municipality on 6 October 2014. Other major activities were:

Talana Hostel: Township Establishment was budgeted for R400 000, but the project could not be concluded since the budget was revoked with the adjustment. COGHSTA has advertised the tender in 2017 to do the project packaging at Talana, however the tender was not awarded to anyone due to non compliance.

Land identification for social housing: Portion 6 of the Farm Pusela 555-LT was identified the Township Establishment and Portion 292 and 293 were identified for social housing and the property is enrolled on the Provincial pipeline for funding by COGHSTA. HDA has appointed Rifumo Town and Regional Planning to the Township establishment at portion 292 and 293 and the report was submitted to Council for inputs.

Regional Cemeteries: Three farm portions were identified for regional cemeteries, namely the Remainder Portion of Mohlaba’s Location 557-LT and the Farm Dusseldorp 23-KT. A letter of request to release the land was submitted to the Department of Rural Development & Land Reform. The Lenyenye Regional Cemetery, all the process were followed and the final payment was made to Nkuna Traditional Council, the Cemetery is now being utilised.

Purchasing of the farm, Portion 2 of the farm Novengilla in Letsitele – the purchasing of the farm is completed and the payments was made, waiting for the transfer by Joubert and May Attorneys

Progress with the development of identified areas are presented below in Table 63.

Table 66: Land Developments 2016/17
Town	Developer	Year appointed	Progress (Activities completed)	Challenges
Dan and Dan Extension 1 (number of ern Dan 98 and Dan 1 227 )	Dewcon	2006	Water and Sewer reticulation was installed and completed in 2011 100% Outstanding: Eviction of brickyard Stormwater & internal streets Connection point for electricity was finalised by ESKOM	Delay on approval of connection point and provision of cost by Eskom. Lack of integration by Municipality Departments in implementing of Council Resolutions. Delay in eviction of the Brickyard.
Tzaneen Extension 60 (60 erven)	Solidarity	2006	Service level agreement was only signed in 2013 Environmental impact assessment was completed in 2015. Contractor is on site contractor is on site clearing the street and pegging the site. Municipality only provided connection points in December 2015. Planning to install water & sewer reticulation beginning of February 2016. Water & sewer designs approved in 2014. Roads & storm water designs approved in 2014. Electricity designs not yet approved. COGHSTA planning to assist in installing water	Delay on signing of land availability agreement and service level agreement both agreements were signed in 2013. Lack of integration by Municipal Departments in implementing Council Resolutions. Delay in providing water & sewer connection points by GTM.
Tzaneen Extension 78 (957 Erven )	Ngoma Trading	2006	Water & sewer reticulation was completed in 2013. Roads & storm water designs was only approved in 2015. Electricity designs not yet approved. The contractor is on site clearing roads in preparation for construction of internal streets and storm water control. Phase 1 has been completed for road and electricity	Transfer of site to Ngoma Trading CC without consultation with the user Departments. Delay in approval of designs Insufficient water to proceed with the project as water allocation of Tzaneen Ext 78 diverted to new private development. The project is moving very slow and this lead to the theft of electric cables
Tzaneen Extension 53 (94 erven)	Phadima	2006	-The Municipality has won the court case and the land has been returned back to GTM	Delays of the case lead to the delays of the development
Tzaneen Extension 13 (240 erven)	Phethego	2006	Water & sewer completed 100% Electricity completed 100% Street lights installed but there are few challenges which resulted into takeover by Internal Electricity Service Department. Roads 75% completed	Roads not completed Street lights not done in accordance with the standard of GTM. Generally the project is completed, however there is lack of integration by Municipality Departments in implementing Council Resolutions. Extension of SLA without the involvement of the user Department.

Table 67 presents all the key deliverables for Land Management as was included in the 2016/17 IDP.

Table 67: Service Delivery targets for Land Management & Town Planning as contained in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D200	Integrated Development Planning	Spatial Development Framework review	Q1: Status quo report available from Service Provider. Public Participation process concluded (40%) Q2: Analysis and proposals for draft SDF ready for consideration by Council. (60%) Q3: Public Participation on the draft SDF and adoption by Council (80%) Q4: Identification of programmes and projects for implementation by Council (100%)	100%	100%	95%	O	Final Draft Spatial Development Framework and secondary policies ready for adoption by council Steering committee in place for facilitation of SDF, secondary policies and land use scheme
D201	Spatial Development	SPLUMA implementation	Q1: Gazetting of By-laws ito SPLUMA. (25%) Q2: Finalisation of specifications for appointment of service provider to formulate a Land Use Management Scheme (50%) Q3: Appointment of service provider (75%) Q4: Status quo report available for consultations (100%)	100%	100%	90%	O	Greater Tzaneen Municipal Planning Tribunal Interviews conducted, waiting for item adoption by council By-Law review finalised to accommodate changes, pending gazetting

The capital expenditure for Land Management is presented in Table 68 below;

Table 68: Capital Expenditure 2016/17: Land Management (R'000)
Capital Projects	2016/17
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
None
Total
* Including past and future expenditure as planned

3.11	LOCAL ECONOMIC DEVELOPMENT

The Greater Tzaneen Municipality in its review of the LED Strategy, need to focus on creating an enabling environment to attract new businesses and investment and development of the value chain in the following three sectors; agriculture, Manufactring and Tourism. During the 2016/17 financial year Agriculture and Manufacturing have not being given enough attention thus contribution in the GVA remained low, compared to other sectors at 7 and 5 % respectively. The 2017/ 18 LED strategy clearly states that the Municipality depends on agriculture, wherein agro processing serves as the main sub-sector which has potential to create more jobs and ensure sutainable economic growth. GTEDA has been established to implement some of the mega projects contributing to job creation and attraction of investment for projects identified in the strategy.

Table 69: Community Work Programme 2016/17
Wards participating	Number of cooperatives	Number of jobs	Output (work done)
Ward 16	0	249	School support programme HIV/AIDS Crime prevention Construction Cemetery cleaning Agriculture Road maintenance Early childhood development
Ward 18	0	227
Ward 22	0	127
Ward 29	0	93
Ward 30	0	116
Ward 32	0	332
Ward 33	0	484
Ward 34	2	452
Ward 35	0	99
Total no of Participants	2062
Total no of Coordinators	117
Total no of site staff	8
Total no of CWP members	2187

Partnerships:

The Municipality established amongst others the following partnerships:

Table: 70: LED partnerships for 2016/17
Stakeholder	Type of relationship
SALGA	Financial Support and facilitation of economic development activities
AgriLetaba	Participation and support during Agricultural events
Tzaneen Community Foundation	Linkage for international relations and exhibitions
Banks	Sponsorship, Exhibitions and information sharing
Tertiary Institutions	Exhibitions and Knowledge sharing

Expanded Public Works Programme

The 2016/17 EPWP Incentive Grant allocation was R 1 949 000. Table 71 below, depicts job creation achievements.

Table 71: Jobs creation through EPWP projects
Year	Work opportunities	FTE,s	Beneficiaries	Percentage performance per financial year
2012/2013	960	331	566	59%
2013/2014	1 291	445	588	45%
2014/2015	803	282	629	78.3%
2015/2016	712	232	892	125%
2016/2017	860	282	1025	119%

The project for EPWP was done through Construction of Tar roads, electrification of households and rural and urban waste collection projects. The community now have access road, electricity and living in a healthy and clean environment.

Greater Tzaneen Economic Development Agency (GTEDA)

The 2016/17 Annual Report for the Greater Tzaneen Economic Development Agency is herewith attached as Annexure D. The 2016/17 Audit Opinion for GTEDA can be found as a part of the GTEDA Annual Report.

Table 72: Targets for LED as contained in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D186	Marketing and Investor Targeting	Investment Incentive Policy.	Q 1: Finalise TOR with GTEDA. (25%) Q 2: Consultations with internal and external stakeholders (50%) Q3: Draft Investor Incentive Policy ready for Management consideration (75%) Q 4: Investor Incentive Policy submitted to Cluster and Council for approval (100%)	100%	100%	75%	O	No Performance Comment
D190	Community Works Programme	No of cooperatives established and still functional in wards where the CWP is implemented	Number	2	2	2	G	No Performance Comment
D191	Community Works Programme	Number of job opportunities created through the CWP	Number	3,400	3,400	2,153.83	R	No Performance Comment
D192	Marketing and Investor Targeting	# of Agricultural Expos held	Number	1	1	1	G
D193	Marketing and Investor Targeting	# of jobs created through agricultural programmes	Number	200	200	398	B	No Performance Comment
D194	Marketing and Investor Targeting	# of jobs created through municipal LED initiatives including Capital Projects	Number	400	400	1,237	B	No Performance Comment
D195	Marketing and Investor Targeting	LED strategy revised by 30 June 2017	Q1: Develop terms of reference and submission to SCM for advertisement by July (10%) Q2: Evaluation and Adjudication of tenders. Appointment of Service provider. (20%) Q3: Review of the LED strategy in consultation with stakeholders. (75%) Q4: LED strategy submitted to Cluster and Council for approval by 30 June '17 (100%)	100%	100%	100%	G	No Performance Comment
D196	Marketing and Investor Targeting	# of GTM LED forum meetings arranged	Number	4	4	4	G	No Performance Comment
D197	SMME support	# of meetings held with informal traders	Number	4	4	6	B	No Performance Comment
D198	SMME support	# of Local Tourism Association Meetings	Number	4	4	6	B	No Performance Comment
D199	Tourism	# of Tourism SMMEs exposed to the market	Number	40	40	64	B	No Performance Comment

The major LED initiatives were:

Agricultural Expo which attracts more than 800 farmers and more than 200 guests including officials. This attracts interest and support from the following stakeholders: SALGA, SEDA, GTEDA, MDM, Banks, Farmer Organizations etc. The event had a budget of R500 000 and attracted sponsorship of more than R200 000. In order to promote tourism we attended the following events: Marula Festival, Rand Easter Show, Letaba Show, Durban Indaba, Getaway show which exposed almost 42 SMMEs.

GTM supported the CWP project which registered 2187 beneficiaries.

GTM supported more than 6 CPI by attending their meeting and giving advice and facilitate interventions by the DRDLR.

The EPWP was implemented with a budget of R1, 949m and benefitted 1025 people. Implementation of the projects above had an impact in job creation and skills and knowledge transfer. Some of the SMME’s during interactions at shows and Expo would establish relationships which improve their businesses.

Table 73: Employees - Local Economic Development services
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	3	2	33.3%	3	2	33.3%
Level 7-9	1	1	0%	1	1	0%
Level 10-15	5	3	40%	5	3	40%
Level 16-17	0	0	0%	0	0	0%
Total	10	7	30%	10	7	30%

Table 74: Financial Performance 2016/17: Local Economic Development Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	91	100	100	151	(51)
Expenditure:
Employees	4 015	4 532	4 532	4 306	226
Repairs & Maintenance
Other	803	1 884	1 884	1 319	565
Total Operational Expenditure	4 099	6 415	6 415	5 625	790
Net Operational (Service) Expenditure	(3 947)	(6 315)	(6 315)	(5 474)	(841)

COMPONENT D: COMMUNITY & SOCIAL SERVICES

This component includes: libraries and archives; museums arts and galleries; community halls; cemeteries and crematoria; child care; aged care; social programmes, theatres.

3.12	LIBRARIES; MUSEUM; COMMUNITY FACILITIES

LIBRARIES

The GTM delivers library services in the Tzaneen Library (Main library) and the following branch libraries: Haenertsburg-; Letsitele-; Shiluvane-; and Mulati Library. The top priorities are to provide information; to arrange book-related activities and outreach projects and to facilitate the establishment of additional libraries. 139653 People visited the libraries; 66356 books were circulated; 117 school groups hosted and 40 schools visited; 773 school assignment topics were assisted with; 141 topical, informative displays were exhibited; 77 book related arts and crafts activities and events were held and 7 holiday programmes hosted. The DSAC was lobbied to build an additional library in the Runnymede cluster and a public/private partnership was established to facilitate the building of a library in the Relela cluster area. To improve performance all libraries are closely monitored and personnel encouraged to use innovative ideas to encourage information sharing and engaging the community. Library Services, including project information assistance; book-related activities; holiday programmes and the internet are free of charge, thus supporting communities that are living in poverty.

The first two priority projects in Library Services are Library development and reading promotion and Book related events are aimed at improving education, improving the quality of life of community members and facilitating life-long learning. Targets to increase the numbers in both projects should be attained within the approved budget as Library Services are supported by both the GTM and the DSAC.

The third priority project in Library Services is to establish new libraries within the GTM area. This is aimed at improving the accessibility of libraries to the community. The impact of quality Library Services on the community is that through good information provision, free internet provision and fun educational activities, as well as the provision of safe comfortable spaces to study, education is improved and quality of life enhanced. This can only be attained with the assistance of public/private partnerships and the DSAC, which builds new libraries using the National Conditional Library Grant. Additional operational funding for new libraries is yet to be approved following applicable EXCO items and approval thereof.

MUSEUM

Greater Tzaneen Municipality has a museum that is visited by international, provincial, district and local visitors. It is very small and have some artefacts (belonging to a private Curator) displayed while others are kept in boxes due to the limited space. The municipality owns only the building and engagements to compensate the curator for the collection is in place.

Entrance to the museum is free to everyone with details regarding the artefacts shared with all visiting. Schools visit the museum by appointment only since the size of the building limits the number of kids that can be accommodated. There is visitor’s book for comments and those who can afford may give a donation.

Community facilities:

Stadiums which are municipality owned are five are called Burgersdorp, Julesburg, Lenyenye, Nkowankowa and Runnymede with 1 indoor sport center with gymnasium at Nkowankowa C Section. There is one at Rhelela Cluster that Mopani District developed 1st stage and then abandoned the project. The municipality possesses 4 community halls which are at Lenyenye, Nkowankowa, Rhelela and Runnymede.

The communities living in poverty are allowed to utilise the community facilities for free if the ward councillor writes a letter and support that they be given the facility because they cannot afford to pay. This is allowed on condition that the facilitiy is left clean after use . Also, the community facilities cannot be booked to generate an income. If an event is held where entrance fees are paid, a 20% levy is payable to the municipality.

Table 75: Library and Parks Service Delivery Targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D126	Library Services	# of library users	Number	95,200	95,200	139,653	G2	Users in June 2017: 12307 Library items circulated in June 2017: 6545

The figures in Table 76 represent the number of posts for all GTM libraries.

Table 76: Employees – Libraries (2016/17)
Job level	2015/16	2016/17
No of Posts	No of Posts	No of Posts	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	0	0	0%	0	0	0%
Level 7-9	28	13	53%	28	13	53%
Level 10-15	2	0	100%
Level 16-17	0	0	0%	2	0	100%
Total	31	14	54%	31	14	54%

Table 77 represents the number of posts for Parks & Community Facility management.

Table 77: Employees – Parks & Community Facilities (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	4	2	50%	4	2	50%
Level 7-9	3	3	0%	3	3	0%
Level 10-15	89	67	25%	14	8	42%
Level 16-17	0	0	0%	75	56	25%
Total	97	73	25%	97	70	27%

Table 78: Financial Performance 2016/17: Libraries (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	78	70	70	78	(9)
Expenditure:
Employees	7 378	8 176	8 176	7 310	866
Repairs & Maintenance	13	13	13
Other	312	602	602	336	266
Total Operational Expenditure	7 689	8 791	8 791	7 646	1 145
Net Operational (Service) Expenditure	(7 611)	(8 721)	(7 889)	(7 568)	(321)

Table 79: Financial Performance 2016/17: Parks, Sports and Community Facilities (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	13 830	528	528	161	366
Expenditure:
Employees	16 589	17 780	17 780	17 530	251
Repairs & Maintenance	756	1 181	1 161	1 010	151
Other	3 877	6 263	6 413	4 681	1 733
Total Operational Expenditure	21 222	25 225	25 355	23 221	2 134
Net Operational (Service) Expenditure	(7 393)	(24 697)	(24 827)	(23 060)	(1 768)

In the Parks Division, grass cutting and garden maintenance are out sourced because the municipality does not have sufficient resources in terms of personnel, tools and equipment, vehicles. Portions of grass cutting is done by Municipal personnel on specified routes.

Table 80: Capital Expenditure 2016/17: Parks & Community Facilities (R'000)
Capital Projects	2016/17
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
Upgrading of Lenyenye Stadium	R 16 675 030	R16,493,010	R16,493,010	-R182,020	R16,493,010
Runnymede Sports Complex	R 27,972,000	R 34,751,143	R 28,368,475	+R6,779,143	R 34,751,143
Julesburg Sports Field	R 13,640,613	R 13,640,613	R 9,312,660	None	R 13,640,613
Burgersdorp Sports Ground	R13,593,764	R13,593,764	R11,282,951	None	R13,593,764
Total	R71,834,407	R78,478,529.70	R65,457,096.50	+R6,597,123.00	R78,478,529.70

3.13	CEMETERIES

Greater Tzaneen Municipality develop, manage and maintain cemeteries in its jurisdiction. 136 public cemetries are found in rural areas of Tzaneen municipality and 8 cemeteries in townships i.e four at Tzaneen, one at Nkowankowa, one at Lenyenye (filled to capacity) and one between Moime and Mhlaba Cross. The intension is to name it Lesedi Cluster cemetery. There is also a cemetery at Haenertsburg and several private cemetries which are managed by the land owners.

Table 81: Cemetery service delivery targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
None

The Agatha Cemetery Environmental Impact Assessment (EIA) was undertaken and the study took long as it had to wait for studies concerning the impact of the low level bridge construction at the cemetery. These assessment were done simultaneously to save cost. The cost for the cemetery layout plans were added to the cost of the low level bridge and internal road construction costs. For both the Nkowankowa & Lenyenye cemeteries the acquisition of land (to extend the cemeteries) are a challenge due to land ownership disputes. GTM has insufficient resources to assist rural cemeteries with extension, fencing, constructing ablution facilities, improving layout of graves to save space, internal road construction and maintenance.

Table 82: Capital Expenditure 2016/17: Cemetery services (R'000)
Capital Projects	2016/17
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
None	0	0	0	0	0
Total	0	0	0	0	0

.

3.14	CHILD CARE; AGED CARE; SOCIAL PROGRAMMES

Special programmes provides social services and support to the community of Greater Tzaneen Municipality through the following:

HIV Awareness/ Counselling testing: The HIV awareness programmes has ensured that the National target for HIV testing was reached. It assists people to understand that HIV is not a death sentence.

The Local AIDS Council and ward level AIDS Committees assist the community to gain knowledge on HIV.

Women’s day celebration: Women sit under the same roof and interacted on issues affecting women. Women are able to understand that they are not alone.

16 days of activism-Survivors of abuse share their experience. Victims who are unable to report abuse are encouraged to report. It gives them an opportunity to open up.

Men’s indaba: Men have always been unable to report abuse in relationships and the Indaba brings men together and gives them an opportunity to openly talk about what they are going through and how to address this.

Table 83: Employees - Youth, Gender, Disability & Social programmes (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	0	0	0%	0	0	0%
Level 4-6	4	1	75%	4	3	25%
Level 7-9	0	0	0%	0	0	0%
Level 10-15	0	0	0%	0	0	0%
Level 16-17	0	0	0%	0	0	0%
Total	4	1	75%	4	3	25%

Table 84: Financial Performance 2016/17: Youth, Gender, Disability & Social programmes (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)
Expenditure:
Employees
Repairs & Maintenance
Other	194	250	250	317	(67)
Total Operational Expenditure	194	250	250	317	(67)
Net Operational (Service) Expenditure	(194)	(250)	(250)	(317)	67

Table 85: Youth, Gender & Disability programmes targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D84	Youth, Gender & Disability support	# of Jobs created by Municipal Capital projects for youth	Number	473	473	1,015	B	Target met above the expectation.
D85	Youth, Gender & Disability support	# of Jobs created by Municipal Capital projects for women	Number	473	473	2,407	B	Target met.
D86	Youth, Gender & Disability support	# of Jobs created by Municipal Capital projects for disabled persons	Number	17	17	35	B	There were no projects suitable for people with disability.

COMPONENT E: ENVIRONMENTAL HEALTH SERVICES

Environmental Health Service focuses on the social determinants of health in the juristic area of Greater Tzaneen Municipality. We also discharge responsibilities that are assigned to Category B municipalities, such as the abatement of public nuisances. We focus on the social determinants of health as well as environmental impact management within the juristic area of Greater Tzaneen Municipality.

This service includes the identification, evaluation, monitoring and control of environmental health hazards and risks regarding but not limited to the following:

Water Quality monitoring;

Food control

Occupational hygiene

Vector control

Environmental management; and

Facility cleaning services.

Compliance monitoring and enforcement is done in order to promote environmental sustainability. A total of 281 contravention notices were issued. 60% of these notices were relating to public nuisances and the remainder to contraventions in food handling premises.

3.15	ENVIRONMENTAL HEALTH SERVICES

Environmental education and awareness was conducted during the period under review. A workshop on Climate Change Adaptation was conducted for School Principals. Compliance monitoring and enforcement is done in order to promote environmental sustainability. A total of 281 contravention notices were issued. 60% of these notices were relating to public nuisances and the remainder to contraventions in food handling premises.

Table 86: Average rating for food handling premises, 2012/13 – 2016/17
2012/13	2013/14	2014/15	2015/16	2016/17
Haenertsburg	86	87	90	90.4	93,5
Lenyenye	75	77	76.4	77.1	75,4
Letsitele	83	83.4	85	84.4	82,8
Nkowankowa	82.12	82.4	80	83.1	83,4
Tzaneen North	89.37	92	93,3	93	94
Tzaneen South	91.37	93	94.2	94.1	94,4
Tzaneen East	95	95.4	95,1	95.2	95,4

Health education is one of the tools used to improve the level of hygiene in food handling premises. The graph above, shows continued improvement and in some instances, sustained maintenance of standards. Over and above monitoring of formal food handling premises, we monitor mass catering at events to prevent the spread of food borne diseases.

Table 87: Outcome of Water samples taken during 2016/17
Result	Jul	Aug	Sept	Oct	Nov	Dec	Jan	Feb	Mar	April	May	June
Complying	24	27	26	23	23	24	25	24	26	27	26	19
Not complying	4	2	4	3	5	4	3	3	2	4	5	2
Total	28	29	30	26	28	28	28	27	28	31	31	21

* Incidental contamination of water due to motor and locomotive accidents.

Table 88: Environmental Health Service Delivery targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D117	Environmental Health Management	# of contravention notices issued to improve level compliance to Environmental Management legislation (5 formal towns)	Number	112	112	281	B	More notices were written due to the autumn rains resulting in a number of overgrown stands.
D118	Environmental Health Management	% compliance to the environmental legislation checklist	Percentage	90%	90%	177.40%	B	The landfill site is audited to check compliance to the license conditions as stipulated in the Record of Decision. A team is assembled to ensure balanced auditing.
D119	Environmental Health Management	% of water samples that comply with SANS 0241	Percentage	85%	85%	86.48%	G2	Implementation of a water quality monitoring schedule.

Table 89: Employees - Environmental Health services (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	6	3	50%	6	3	50%
Level 7-9	0	0	0%	0	0	0%
Level 10-15	32	18	43%	5	2	60%
Level 16-17	0	0	0%	27	18	33%
Total	39	22	43%	39	24	38%

Table 90: Financial Performance 2016/17: Environmental Health services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	57	25	25	46	(21)
Expenditure:
Employees	6 195	9 118	9 118	7 578	1 540
Repairs & Maintenance	26	26	5	21
Other	403	931	931	460	471
Total Operational Expenditure	6 598	10 075	10 075	8 043	2 032
Net Operational (Service) Expenditure	(6 541)	(10 050)	(10 050)	(7 997)	(2 053)

Table 91 : Capital Expenditure 2016/17: Environmental Health services (R'000)
Capital Projects	2015/16
Budget	Adjustment budget	Actual Expenditure	Variance from original budget	Total Project value*
None	n/a	n/a	n/a	n/a	n/a
Total	n/a	n/a	n/a	n/a	n/a

There was no capital allocation for Environmental Health services during 16/17.

COMPONENT F: SECURITY AND SAFETY

The Safety and Security division is responsible for all Safety and Security aspects of the Greater Tzaneen Municipality. This component provides Physical Security, Technical surveillance Systems and Community Safety. The Primary focus of the division is to support all the Justice Crime Prevention and Security Cluster departments to ensure all Residents, Business, and Tourists live in peace and harmony, thus increasing economic investment to the municipality in order to alleviate poverty.

Table 92 : Infrastructure theft cases for 2016/17
Infrastructure theft	Date	Estimated R-value	Case reported to SAPD Case number	Successful prosecutions (yes/no)
All
Money was stolen from Cash In Transit Vehicle as the Fidelity Cash Solution vehicle was involved in a fatal robbery outside the municipality, at the time the robbery took place the CIT was making collections in other business area.	04/06/2017	R484 233,05	Case 04/06/2017	Investigation continues
Electricity Infrastructure
Theft of Electrical Cable Drum at the Tzaneen Municipal Stores	11/06/2017	R1m	Case 135/06/2017 Tzaneen SAPS	Investigations continues
OTHER
Theft of Trucks batteries at the Parks Office in Tzaneen. Registration of Trucks involved are as follows CPR 551 L CMN 471 L CMN 322 L	17/05/2017	R15000	Case 235/05/2017 Tzaneen SAPS	There was no conviction as the investigation continues

The main cause of theft of electrical infrastructure is the availability of market for copper in the Municipal area. The Municipality, in conjunction with the SAPS, is working hard to reduce the crime and also conduct Crime Awareness Campaigns to sensitize communities not to buy stolen goods. A Safety and Security Colloquium was hosted on the 31/05/2017 at the Tzaneen Hotel.

3.16	TRAFFIC LAW ENFORCEMENT

The division main activities is speed law enforcement to reduce accidents. We do road blocks to curb illegal driving and un-roadworthy vehicles etc. Foot patrols are also done to check parking compliance and vehicles registration validity. We further do traffic control at strategic junctions for pedestrian safety and schooler patrols

Table 93: Traffic Law Enforcement service data (2012/13- 2016/17)
2012/2013	2013/2014	2014/2015	2015/16	2016/17
Number of road traffic accidents	79	69	111	50	94
Number of by-law infringements attended	100	182	225	4121	147780
Number of traffic officers on duty on an average day	13	12	14	13	12
R-value revenue from traffic fines	R5 559 480	R19 565 630	R38 560 880	R37 814 250	4917654

The number of accidents are due to increasing traffic volume and the aging road infrastructure. The high number of bylaw infringement attended, is due to high concentration of vehicles in town. The traffic officers are giving themselves more time to do on-foot patrols while the speed camera is operating automatically in strategic positions. The number of traffic officers half of what we require for our service area. Revenue collection is negatively affected by non-cooperation from the Magistrate court in processing warrants of arrest.

Table 94: Law Enforcement targets as set out in the SDBIP for 2016/2017
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D125	Traffic Services	Traffic fine collection rate [(Rand value received for fines/ R value of fines issued as %]	Percentage	70%	70%	30.64%	R	No deviation

Table 95: Employees - Law Enforcement (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	5	2	60%	5	2	60%
Level 7-9	30	12	60%	30	12	60%
Level 10-15	5	2	60%	2	0	100%
Level 16-17	0	0	0%	3	1	66%
Total	41	17	58%	41	16	60%

Table 96: Financial Performance 2016/17: Law Enforcement (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	34 984	3 301	3 301	43 444	(40 143)
Expenditure:
Employees	12 828	16 149	16 149	13 645	2 504
Repairs & Maintenance	12	51	51	22	29
Other (Security Services)	11 558	13 056	12 996	12 317	679
Total Operational Expenditure	24 399	29 257	29 197	25 984	3 213
Net Operational (Service) Expenditure	10 585	(25 956)	(25 896)	17 460	(43 355)

3.17	DISASTER MANAGEMENT

Disaster Management is a continous and integrated multi-sectoral and disciplinary process of planning and implementation of measures aimed at disaster prevention, mitigation, preparedness, response, recovery and rehabilitation (Disaster Management Act no.16 of 2015 as ammended). For Disaster Management to be effective, it is important that all concerned parties be made aware of its position and that every official, role player, department and personnel be prepared to carry out the assigned functions and responsibilites before, during and after an emergency. Disaster Management serves to confirm the arrangements in the Greater Tzaneen Municipality.Disaster Management approach is to effectively prevent disasters from occuring and to lessen the impact of those hazards tha can be avoided.Emergencies are defined as situations or the threat of impeding situations abnormally affecting the lives and property of societies.

Most peacetime natural man made disasters/emergencies that occur in the geological areas of responsibility of Greater Tzaneen Municipality are amongst others Storms (wind and Hail), floods, epidemics, transportation accidents, air and rail crashes, electrical power blackouts, uncontrallable fires, toxic or flammbable gas leaks, building or structural collapse, explosions as well as breakdown of essential service, supplies or any combination thereof.

The Role of Disaster Management is to:

Save lives

Reduce risks

Protect property and

Provide safety and health of all responders and reduce economic and social losses.

Disaster Management institutes preventative and mitigation measures. Specialises in issues concerning disasters in the municipal area and promote an integrated and co-ordinated approach with emphasis on mitigation and prevention. Awareness campaigns on man made and natural disasters are conducted as sources of preventative and mitigation measures, and to capacitate communities on what to do before, during and after an emergency situation.

Main Challenges:

Delays in the reporting of incidents by Councillors.

Communities building houses on flood lines and drownings during heavy rainfall.

Uncontrolled fires at unserviced municipal land.

Late responding of fire and rescue services to communities.

Table 97: Disaster management targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D37	Disaster Management	Annual Disaster Management report submitted to Mopani District by 30 Sept	Number	1	1	1	G
D38	Disaster Management	Annual Disaster Management report submitted to Council by 31 Aug	Number	1	1	1	G
D39	Disaster Management	% Disaster incidences responded to (relieved) within 72-hours	Percentage	100%	100%	100%	G	All the disaster incidences were attended to
D40	Disaster Management	# of disaster awareness campaigns conducted	Number	9	9	9	G

Table 98: Employees - Disaster Management (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	0	0	0%	0	0	0%
Level 4-6	4	1	75%	4	1	75%
Level 7-9	1	1	0%	1	1	0%
Level 10-15	0	0	0%	0	0	0%
Level 16-17	0	0	0%	0	0	0%
Total	5	2	60%	5	2	60%

Table 99: Financial Performance 2016/17: Disaster Management (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)
Expenditure:
Employees	1 318	1 403	1 403	1 588	(186)
Repairs & Maintenance	5	5	5
Other	277	681	681	633	48
Total Operational Expenditure	1 595	2 089	2 089	2 221	(132)
Net Operational (Service) Expenditure	(1 595)	(2 089)	(2 089)	(2 221)	132

COMPONENT G: SPORT AND RECREATION

The role of the Sports, Arts and Culture office in GTM is to facilitate, coordinate and manage sport activities. There is a Sport and Recreation Council in GTM that assists with coordinating all sport related matters in GTM communities. There is a Service Level Agreement signed between the Department of Sport Arts and Culture and the Greater Tzaneen Municipality that assists in making sure that sport development takes place in GTM from grass root levels.

3.18	SPORT, RECREATION, ARTS and CULTURE

Table 100: Employees - Sport, Arts & Culture (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	0	0	0%	0	0	0%
Level 4-6	0	0	0%	0	0	0%
Level 7-9	3	3	0%	3	3	0%
Level 10-15	0	0	0%	0	0	0%
Level 16-17	0	0	0%	0	0	0%
Total	3	3	0%	3	3	0%

The budget for the Sport, Arts and Culture section forms part of the budget for Parks and Recreation (See Table 79 & 80).

Table 101: Sports and recreation targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D167	Sport and Recreation	Burgersdorp Sports Facility	Q1: Designs completed (5%) Q2: Specifications completed (25%) Q3: Appointment of contractor finalised (50%) Q4: Physical Construction at 15% (100%)	100%	100%	90%	O	The Supply chain processes were slow and the contractor was appointed late.
D168	Sport and Recreation	Relela Community Hall	Q1: Physical progress at 5% Q2: Construction, Physical Progress at 30% (50%) Q3: Construction, Physical Progress at 100% (100%) Q4: Not applicable this quarter	100%	100%	95%	O
D169	Sport and Recreation	New Runnymede Sports facility	Q1: Physical construction at 25% (25%) Q2: Physical construction at 40% (40%) Q3: Physical construction at 75% (75%) Q4: Sports facility at Runnymede completed (100%)	100%	100%	75%	O	Delay was due to re-alignment of layout which resulted in in increased earthworks and blasting

COMPONENT H: CORPORATE POLICY OFFICES AND OTHER SERVICES

This component includes: corporate policy offices, financial services, human resource services and ICT services.

3.19	EXECUTIVE AND COUNCIL

Greater Tzaneen Municipality is categorized in terms of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) as a Category B local municipality. It has an Executive Committee members are listed in Chapter 2 of this report. The Accounting Officer (Municipal Manager) is appointed in accordance with the Municipal Systems and Procedures contemplated in Section 54A and is supported by a Senior Management Team as described in

Chapter 2 under Administrative Governance. The functions performed and coordinated by the office of the Municipal Manager are governance related. The office of the Director: Corporate Services monitors and oversees the administrative components of the following political offices:

The office of the Mayor

The office of the Speaker, and

The office of the Chief Whip.

Table 102: Executive and Council targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D2	Council Support	% of GTM Council resolutions implemented vs number passed	Percentage	100%	100%	64.90%	R	Out of 38 resolutions, 37 were implemented and only one was outstanding.
D91	Council Support	# of days taken to make MPAC oversight reports available to the public following Council approval	Number	7	7	5.4	B
D92	Council Support	# of Council meetings held	Number	4	4	16	B
D93	Council Support	# of Exco meetings held	Number	26	26	17	R	1 EXCO meeting was held during the month of June.
D94	Council Support	# of Portfolio Committee meetings held	Number	99	99	95	O	9 Portfolio committee meetings were held during the month of June 2017.

Table 103: Employees – Executive and Council (Mayor & MM offices) (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	4	2	50%	4	3	25%
Level 4-6	19	9	52%	11	5	54%
Level 7-9	10	4	60%	10	4	60%
Level 10-15	1	1	0%	2	2	0%
Level 16-17	0	0	0%	0	0	0%
Total	34	16	52%	27	14	48%

Table 104: Financial Performance 2016/17: Executive & Council (MM & Mayor office) (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue (excluding tariffs)	1	1	1
Expenditure:
Employees	8 481	8 718	8 718	7 112	1 606
Repairs & Maintenance	659	840	840	258	582
Other	27 345	28 059	26 802	26 968	(166)
Total Operational Expenditure	36 484	37 617	36 360	34 338	2 022
Net Operational (Service) Expenditure	(36 484)	(37 616)	(36 359)	(34 338)	(2 021)

3.20	FINANCIAL SERVICES

The three main priorities of Financial Services are the following:

Procurement: The implementation of SCM policies and regulations has improved in terms of compliance, which resulted in that no SCM activity has been qualified by the Auditor General. A general assessment of the supply chain unit activities has been performed and procedures and controls have been put in place to ensure general compliance of all the divisions’ activities. The supply chain committees met on a regular basis and delays in the recommendation of service providers have been minimized

Debt recovery: To recover debt owed to the Municipality by residents but also by other Government institution. During the 2016/2017 financial year Provincial Government accounts were successfully addressed.

Credit control and debt collection: The appointment of debt collectors took place during 2016/2017 financial year which already yields good results.

Other activities that the municipality embarked on are:

Capturing of new connections on council’s financial system and bill accordingly.

Continuous in-house data verification.

Day to day follow up on outstanding accounts.

Continuous adjusting of deposits.

A debt collection register has been drafted.

Management of debtors handed over for collection.

Expenditure Management remains a priority since Greater Tzaneen Municipality experienced excessive expenditure on overtime and Legal/fees during the 2016/2017 financial year. Actions have been taken to determine the route course of the high expenditure after which the concern will be addressed i.e.:

Overtime: With regard to overtime expenditure it is confirmed that a system through which pre- approval must be obtained has been put in place to curb this concern. An internal committee was also established to investigate the overtime payments. The committee made recommendations which will be considered and approved.

Legal fees: With regard to the legal fees the excessive expenditure is under investigation.

Other expenditure: activities that the municipality embarked on were:

Payments of Service providers were made within 30 days with the exception of Eskom due to financial constraints.

Implementation of cost containment measures

External VAT reconciliations to ensure VAT owed to council is maximised

Table 105: Debt Recovery (R'000)
Details of the types of account raised and recovered	2014/2015	2015/16	2016/17
Billed in year	Actual for accounts billed in year	% of accounts value billed that were collected in the year	Billed in year	Actual for accounts billed in year	% of accounts value billed that were collected in the year	Billed in year	Actual for accounts billed in year	% of accounts value billed that were collected in the year
Property Rates	74071	65004	87.75%	74052	59258	80.02%	80788	69153	85.60%
Electricity Consumption	396898	410014	103.30%	392618	411464	104.80%	417248	459628	110.16%
Refuse	25998	27407	105.42%	26475	24663	93.15%	27782	27368	98.51%
Other	13052	15001	114.93%	15082	16273	107.89%	13332	12612	94.60%

Electricity recovery rate were more than 100% due to continued credit control and disconnection of services. The property rates, refuse and other arrears could only be addressed by debt collection policy and debt collectors were appointed in October 2015. The average collection rate is 11%, on debt handed over.

Electricity Service

The proposed revisions to the tariffs have been formulated in accordance with Section 74 of the Municipal Systems Act as well as the recommendations of the National Energy Regulator of South Africa (NERSA). Guidelines for the Municipal Electricity tariff increases in July are normally published by NERSA in the previous December. National Treasury has indicated that Municipalities must prepare their budgets using ESKOM bulk increases of 8.06 % on the previous year's bulk purchases and advised municipalities to structure their 2016/1017 electricity tariffs based on the percentage guideline indicated in National Treasury Budget Circular no. 70 for the MTREF.

Refuse Removal Service

According to the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) a Municipality must ensure a safe and healthy environment for its residents. Greater Tzaneen Municipality is therefore responsible to adequately maintain its refuse removal service. We must also maintain our refuse sites and solid waste disposal efforts. The top priority of revenue collection in all three service areas is to improve payment rate through the approved revenue enhancement strategy.

Table 106: Financial Services targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D53	Fleet Management	Fleet management policy revised and approved by Council by 30 December 2016	Percentage	100%	100%	160%	B	Draft Policy Developed but not approved and finalised because of a lack of segregation and allocation of duties between Engineering Services where currently is situated and Budget and Treasury where a portion of the activities is supposed to go
D58	Regulatory Framework	# of finance related policies revised annually	Number	17	17	17	G
D59	Asset Management	Annual Asset verification report concluded by 30 August	Number	1	1	1	G
D60	Budget management	Draft Budget submitted to Council by 31 March	Number	1	1	1	G
D61	Budget management	Annual Budget tabled by 31 May annually	Number	1	1	1	G
D62	Budget management	Annual Adjustment budget approved by Council by 28 Feb	Number	1	1	1	G
D63	Budget management	Cost coverage	Ratio	1.6	1.6	0.34	R	The cost coverage demonstrates how many times the monthly fixed operating expenditure can be met. The actual is lower than the target which means that the target has not been met
D64	Budget management	Debt coverage	Ratio	18.3	18.3	24.51	G2	The debt coverage demonstrates how many times debt service payments can be accommodated. The actual is higher than the target which means that the target has been met. The debt payment on the INEP project resulted in the high actual.
D65	Budget management	% of debt collected	Percentage	8%	8%	9.46%	G2	Service providers appointed collecting on a monthly basis
D66	Expenditure Management	% creditors paid within 30 days	Percentage	100%	100%	99.59%	O	Performance Target not achieved
D67	Financial Reporting	# of Section 71 (MFMA) reports submitted to NT & PT by no later than 10 working days after the end of the month	Number	12	12	12	G	The sect 71 reports were submitted to the Gov. Departments on 14 June 2017 . The reports were submitted within 10 working days
D68	Financial Reporting	Annual Financial statements submitted to AG, PT and NT by 31 August annually	Number	1	1	1	G
D69	Revenue Management	# of Households billed	Number	23,500	23,500	22,811.58	O	Accounts consolidated and development not as planned
D70	Revenue Management	# of revenue generation policies reviewed and approved	Number	5	5	15	B	not applicable
D71	Revenue Management	% of revenue collected monthly	Percentage	92%	92%	86.42%	O	Lower due to non-payment and economic climate
D72	Revenue Management	Outstanding service debtors to revenue	Ratio	48	48	12.65	B	Payment rate 90%, debtors increase monthly
D73	Expenditure Management	% of Finance Management Grant Spent	Percentage	100%	100.00%	100.95%	G2	Performance target achieved
D74	Supply Chain Management	# of SCM reports submitted to national treasury	Number	12	12	15	G2	not applicable
D75	Supply Chain Management	# of contract management reports submitted to Council	Number	12	12	12	G	not applicable
D76	Revenue Management	# of indigents registered	Number	36,732	36,732	36,732	G	Indigent register submitted to Council but referred back

Table 107: Employees -Financial Services (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	6	6	0%	6	6	0%
Level 4-6	20	13	35%	20	11	45%
Level 7-9	46	28	39%	46	34	26%
Level 10-15	3	2	33%	0	0	0%
Level 16-17	0	0	0%	3	2	33%
Total	75	49	34%	75	53	30%

Table 108: Financial Performance 2016/17: Financial Services (R'000)
Detail	2015/16
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	425 398	376 397	376 397	443 107	(66 710)
Expenditure:
Employees	28 272	36 025	36 025	30 211	5 814
Repairs & Maintenance	21	235	187	12	175
Other	57 406	46 131	46 332	64 426	(18 093)
Total Operational Expenditure	85 698	82 392	82 545	94 649	(12 104)
Net Operational (Service) Expenditure	339 700	294 005	293 852	348 458	(54 606)

The actual operational revenue amounts to R443 million, whilst the actual operating expenditure amounts to R94 million (see Table 116). This represents a surplus of R348 million. Operating revenue.

The R66 million variance between budget and actual revenue amounts is mainly the result of higher actual amounts than budgeted on the following items.

Property rates:	R7, 4 million

Operating grants and subsidies:	R19, 0 million

Other revenue	R27, 3 million

The actual income of R443 million includes a grant allocation of R293 million.

The variance between the budgeted and actual expenditure, on the operational budget, amounts to R12 million. This overspending on the total operating expenditure is mainly due to the overspending on provision for bad debt, which is a non-cash item.

3.21	HUMAN RESOURCE SERVICES

The Human Resources Division which reports to the Director: Corporate Services’ mission is to provide quality Human Resource services to attract, develop, motivate and retain a diverse workforce within a supportive work environment both internally and externally. In terms of section 67 (1) of the Local Government Municipal System Act , a Municipality must develop and adopt appropriate systems and procedures, consisting of uniform standards prescribed in terms of section 72(1) to ensure fair, efficient, effective and transparent personnel administration. All the components prescribed by the MSA are covered within the Human Resources Division.

Human resources managed to successfully appoint 50% of vacant positions. The remaining 50% was not filled in order to save costs to cover the redress of the salary disparity existing at job level 15. At least 22 Employees were enrolled for MFMA training, in order to capacitate and to comply with regulations issued by Provincial Treasury.

Table 109: Human Resource Management targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D79	Capacity building and Training	# of employees successfully trained	Number	90	90	95	G2	Internal Audit and councillor’s attendance training for the month of June. MFMP programme is ongoing and it will be finalized by August 2017
D80	Capacity building and Training	Work place skills plan submitted to LGSETA by 30 Apr	Number	1	1	1	G
D81	Capacity building and Training	% of municipal budget spent on implementing the Work Place Skills Plan	Percentage	1%	1%	0.12%	R	The actual percentage for training for the month of June is 79.2 %.
D83	Labour Relations	# of Local Labour Forum meetings	Number	12	12	4	R	The Local Labour Forum scheduled for the 30th June 2017, was postponed due to special council to be held the same time with planned LLF Meeting.
D87	Human Resource Management	# of people from employment equity target groups employed in the 3 highest levels of management in compliance with EE plan	Number	27	27	24.92	O	The appointment of section 56/ 57 managers will determine an increase or decrease in the next financial year.
D88	Human Resource Management	Number of MM & Director posts vacant for more than three months	Number	0	0	4	R	The position of MM, Director ESD and CFO are vacant.
D89	Human Resource Management	Review of Institutional Plan finalised by 30 May	Number	1	1	1	G
D90	Human Resource Management	# of employees complying with financial minimum competency requirements	Number	22	22	0	R	The 22 Employees currently enrolled for the competency assessment complete the course end of August 2017. The result will only be released after all POE submitted. The dates will only be announced end of September 2017.
D98	Human Resource Management	% of budgeted positions on the organogram filled by end June 2017	Percentage	100%	100%	88%	O	746 is the total number of positions budgeted for 2016/ 17 including filled positions. Total number of 659 is the workforce ending June 2017.
D99	Human Resource Management	% of personnel budget spent	Percentage	100%	100.00%	194.70%	B	The total positions budgeted was 746. Total filled is 659.
D100	Occupational Health and Safety	# of OHS committee meetings	Number	4	4	3	O	Community Services Department held their meeting. But Electrical and Engineering Services Department does not hold meeting.
D108	Human Resource Management	% Staff turnover	Percentage	1.80%	1.80%	3.50%	B	The turnover is due to pension, death and 2 resignation.
D109	Human Resource Management	% Employees that are female	Percentage	45%	45%	76.54%	B	The target set was not met due to interviews outcome.
D110	Human Resource Management	% Employees that are youth	Percentage	28%	28%	43.70%	B	The statistics for youth is regressing due to age progression.
D111	Human Resource Management	% Employees that are disabled	Percentage	2%	2%	4.55%	B	The status of disability is stable but there is room for improvement.

Table 110: Employees - Human Resource Services for 2016/17
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	7	7	0%	7	6	14%
Level 7-9	4	2	50%	4	2	50%
Level 10-15	3	3	0%	3	3	0%
Level 16-17	0	0	0%	0	0	0%
Total	15	13	13%	15	12	20%

Table 111: Financial Performance 2016/17: Human Resource Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue	20	1
Expenditure:
Employees	16 687	16 687	7 830	7 830	6 101
Repairs & Maintenance	5	5
Other	2 485	2 485	4 235	3 935	2 684
Total Operational Expenditure	19 172	19 172	12 070	11 770	8 784
Net Operational (Service) Expenditure	(19 172)	(19 152)	(12 070)	(11 770)	(8 784)

3.22	INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

The Information Technology (IT) Division is responsible for the management of ICT Services in the Greater Tzaneen Municipality under the Corporate Services Department. The major roles of IT Division are to:

Align IT Services with the GTM’s Business Objectives;

Foster compliance with IT Standards, Frameworks, best practices and other related legislations and requirements;

Manage Enterprise wide IT Risks and deliver services in accordance with Council’s business requirements.

To ensure that the Municipality Complies with legislation, standards and frameworks, the IT Division developed ICT Policies, ICT Plan and Disaster Recovery Plan as key enablers, through which Council realise value for IT and IT risk optimisation for effective and efficient management of IT. The following goods and service were acquired during the financial year:

Telephone System: which has call centre, anti-corruption and mayoral hotline capabilities;

Disaster Recovery Equipment;

Tools of Trade (23 Laptops & 8 Desktops Computers and 76 Tablets for Paperless Council Meetings).

Managed Printing Services.

Obsolete ICT Infrastructure and the Rural Broadband Network are major challenges as the equipment exceeded their lifespan. The challenges will be resolved by prioritising, investing in the ICT Infrastructure and considering using cloud services that will transfer costs of hardware and security to the Cloud Service Provider.

Table 112: Information Technology targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D95	Information Technology	Disaster Recovery Equipment	Q1: Specifications completed. Procurement process initiated (10%) Q2: Appointment of service provider finalised (20%) Q3: Delivery of Disaster Recovery equipment completed (100%) Q4: Not applicable	100%	100%	100%	G	Late Approval of Procurement
D96	Information Technology	Computers for employees	Q1: Specifications completed. Appointment of service provider finalised (20%) Q2: Delivery of computers as per SLA (100%) Q3: Not applicable Q4: Not applicable	100%	100%	100%	G	Laptops and Desktop Computers Delivered.

Table 113: Employees - Information Technology Services for 2016/17
Job level	2015/16	2016/17
Positions Filled	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	1	1	1	1
Level 4-6	2	2	2	2	2	2
Level 7-9	3	3	3	3	3	3
Level 10-15	0	0	0	0	0	0
Level 16-17	0	0	0	0	0	0
Total	6	6	6	6	6	6

Table 114: Financial Performance 2016/17: Information Technology Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue
Expenditure:
Employees	3 937	4 023	4 023	4 215	(191)
Repairs & Maintenance	203	511	511	552	(41)
Other	7 345	6 971	6 971	6 962	9
Total Operational Expenditure	11 484	11 505	11 505	11 729	(224)
Net Operational (Service) Expenditure	(11 484)	(11 505)	(11 505)	(11 729)	224

During 2016/17 two (2) IDP Capital Projects were prioritised and achieved. These projects were:

Procurement of Disaster Recovery Equipment, and

Procurement of Tools of Trade (Desktop & Laptop Computers)

Three (3) other Operational Projects that were achieved in the 2016/17 were:

Securing a service provider for outsourced Printing services

Upgrade of the Telephone system (PABX)

Procurement of tablets for Councillors (Paperless Council initiative)

Operational Projects listed above were achieved successfully and will run year-after-year taking into account that they are operational in nature and that these services support service delivery activities in the Municipality and its community at large. Variations will always occur in the Operational Projects due to increase in service prices, change in technology and the economy of the Republic of South Africa. Variations can be addressed by increasing line item budget allocations, after conducting feasibilities studies.

3.23	LEGAL SERVICES

The Legal Division has the responsibility and duty to administer and manage flow of litigation within the Municipality for all the Departments in the Municipality. The task is executed through various Attorneys, Courts of law and Alternative Dispute Resolution. The cause of action emanates from the Municipality and private companies and private individuals, whenever there are legal disputes involved for or against the Municipality. Service Delivery targets for the division include creation, management and implementation of By-Laws, Policies and protecting the interests of the Council on any legal matter. The division has taken the following measures to improve service delivery and reduce risks to avoid litigation.

Reduction of Legal Fees to save expenses through the creation of Legal Tariffs to control fees charged by attorneys.

Introduced Legal Compliance Workshop for Councillors and extended management in order to provide basic knowledge about legal compliance and procedures to protect the interests of the Council when taken important decisions.

Introduced a compulsory standard for municipal projects and key decision making initiatives to go through the legal division for legal scrutiny before any implementation of the projects and decisions may be made to avoid risks associated with possibilities of contravening the law.

Table 115: Litigations handled during 2016/17
Type of legal case	Name of Case	Date Registered	Status at 30 June '17	Total Cost to Council to date
Civil	Mapheto // GTM	05/ 04 / 2015	Pending	R2 337 890.00
Civil	Hlimbyi // GTM	09 / 09 / 2015	Pending	R2 298 786.00
Civil	Siphiwe Engineering // GTM	02/ 03 / 2016	Pending	R352 078.42
Civil	PK Financials // GTM	08 / 09 / 2017	Pending	R397 315.52
Civil	Malunga Tax Consultants // GTM	07 / 11 / 2015	Pending	R422 609.46
Civil	SML Projects // GTM	12 / 07 / 2016	Pending	R253 815.19

Table 116: Contract Management for 2016/17
No of Service Providers appointed	No of Contracts concluded	No of Contracts extended	No of Contracts Withdrawn by Service Providers
49	14	0	0

Table 117: Service Delivery protests 2016/17
Date	Stakeholder/Ward	Reason for protest	Office Protested against	Approved / Not Approved
<none>

GTM established a Rapid Response Team under the leadership of the Speaker, this team was highly effective in addressing service delivery challenges and thereby avoided protests.

Table 118: Legal support targets as set out in the SDBIP for 2016/17
Ref	Programme	KPI	Unit of Measurement	Annual Target	Year-To-Date As At June 2017
Target	Actual	R	Reason for deviation
D97	Legal support	% SLAs signed within 10 days after information is provided	Percentage	100%	100%	8.33%	R

Table 119: Employees – Legal Services (2016/17)
Job level	2015/16	2016/17
No of Posts	Positions Filled	Vacancy rate	No of Posts	Positions Filled	Vacancy rate
Level 0-3	1	1	0%	1	1	0%
Level 4-6	1	1	0%	1	1	0%
Level 7-9	1	1	0%	1	1	0%
Level 10-15	0	0	0%	0	0	0%
Level 16-17	0	0	0%	0	0	0%
Total	3	3	0%	3	3	0%

Table 120: Financial Performance 2016/17: Legal Services (R'000)
Detail	2015/16	2016/17
Actual	Budgeted	Adjustment Budget	Actual	Variance
Total Operational Revenue
Expenditure:
Employees	1 451	2 066	2 066	2 098	(32)
Repairs & Maintenance
Other	17 824	9 432	9 382	25 656	(16 274)
Total Operational Expenditure	19 276	11 498	11 448	27 753	(16 306)
Net Operational (Service) Expenditure	(19 276)	(11 498)	(11 448)	(27 753)	16 306

No capital projects were planned or implemented for Legal Services during the 2016/17 financial year.

COMPONENT I: ORGANISATIONAL PERFOMANCE SCORECARD

The full Annual Performance Report for 2016/17 is included as Annexure E.

CHAPTER 4 – ORGANISATIONAL DEVELOPMENT & PERFORMANCE MANAGEMENT

The organisational development function aims to develop organisational structure annually, in terms of section 66 of Municipal System Act 2000, coordinate the development of job descriptions/profiles, and conduct job evaluation at a District level using a prescribed TASK software. Also, to conduct overall organisational development investigations of the different departments of the Municipality and to identify the needs and formulate solutions for problems through analytical, creative and rational thinking. Currently Greater Tzaneen Municipality is in the process of Job Evaluation and alignment of Job Description through Mopani Job Evaluation Unit. To-date a total of 183 jobs have been evaluated across the municipality. All 183 jobs evaluated must still be moderated by Provincial Audit Committee chaired by SALGA.

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNEL

4.1	EMPLOYEE TOTALS, TURNOVER AND VACANCIES

Council have high vacancy rate due to Organisational Structure with many vacancies without budget. The Municipality cannot afford to provide budget for these vacancies. Management resolved to conduct a work study to determine the workforce required against the organisational structure. Council utilised budget vacancy to redress the salary disparities on level 15, which caused non -appointment of positions in the 2016/17 financial year. The 54% vacancy rate does not really reflect crisis in the municipality as some of the positions were never filled since creation neither budgeted for.

Table 121: Employee turnover 2016/17
Department (functions)	2015/16	2016/17
No of Employees	Approved positions	No of Employees	No of Vacancies	% Vacant
Engineering Services (Roads& Stormwater, Water & Sanitation, PMU, Building & Fleet Maintenance)	153	602	153	449	74%
Electrical Services	104	186	104	82	44%
Community Services (Waste management, Libraries, Parks & Cemeteries, Sports & Recreation, Environmental Health & HIV/AIDS, Licensing, Traffic)	260	438	262	176	40%
Planning & Economic Development (LED, Town Planning, Housing, Youth, Gender & Disability)	20	33	20	13	39%
Chief Financial Officer (Expenditure, Revenue, Financial Services and budgeting, Supply Chain Management)	50	77	53	24	31%
Corporate Services (Legal, Communication, Archives & Records, HR, Public Participation & IT, Council Admin Support)	51	72	54	18	25%
Municipal Manager (Disaster Management, Internal Audit, IDP, Performance Management)	17	26	11	15	57%
Office of the Mayor (Administration and Special Programs)	5	11	7	4	54
Total	660	1445	664	781	54%

Table 122: Vacancy Rate - managerial (2016/2017)
Designation	Total Approved posts	Vacancies	Variances (as % of total posts in each category)
Municipal Manager	1	1	100%
CFO	1	1	100%
Other Section 57 Posts	6	4	66%
Middle Management: Financial (Level 3 & 4)	13	1	7%
Middle Management: non-Financial (Level 3 & 4)	49	12	24%
Highly skilled supervision: Financial (Level 5-6)	14	6	42%
Highly skilled supervision: Non-Financial (Level 4-6)	167	83	49%
Total	251	108	43%

Table 123: Employee Turnover rate 2012/13 – 2016/17
Year	Total No of posts filled at the beginning of the financial year	Terminations during the financial year	Turnover Rate*
2012/2013	660	19	2.8
2013/2014	681	19	2.8
2014/2015	687	41	5.7
2015/2016	655	24	2.7
2016/17	659	26	3.94

From the data above, it can be seen that the turnover rate of the Greater Tzaneen Municipality is in the region of 2.7 %. This rate is acceptable bearing in mind that about 87.5% of this rate can be attributed to deaths and retirements over which the Municipality has no control. The turnover rate is also affected by the filling of vacancies; therefore the increase from 15/16 may be attributed to the none-filling of vacancies, due to the labour disputes (see Figure 10). Section 57 managers were filled within the financial year, however the Municipal Manager, Electrical Director and Chief Financial Officer resigned in the middle of the financial year, however the position of Electrical Director was filled in April 2017.

Table 124: Employment Equity Plan Progress 30 June 2017.
Occupational Categories Levels	Male	Female	Total Posts per Level
African	Coloured	Indian	White	African	Coloured	Indian	White
1	4	0	4
2	0
3	12	6	10	2	30
4	8	2	7	3	20
5	15	4	9	4	32
6	37	6	14	5	62
7	5	0	7	1	1	3	17
8	35	1	52	1	7	96
9	8	10	1	19
10	8	3	11
11	14	2	16
12	38	3	41
13	15	12	27
14	18	1	1	20
15	168	2	96	266
TOTAL PERMANENT	385	0	1	21	226	1	2	25	661
Non-permanent employees	0	0	1	0	0	0	0	0	1
TOTAL	385	0	2	21	226	1	2	25	662

According to the Employment Equity Plan there is an improvement as compared to the last financial year. The Department of Labour issued a notice for Council to review its Employment Equity plan to comply with the EAP targets. The disability status is stable at 2.4% which is acceptable. Top management constitute 16.6 of female with 50% male and the acceptable EAP target for males is 52.4%. On professionally qualified African male constitute, 58% which is not acceptable as the target is 52.4%. Semi-skilled constitute 82.6 % males, which is highly unacceptable, the target must reduce to 52.4. Overall, women must be appointed in all levels to redress the imbalance.

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

Council has policies, procedures and systems which enable management to operate effectively and efficiently. Management appointed a compliance Officer whose responsibility it is to monitor compliance on implementation of policies and procedures developed. The municipality strive to maintain audit opinion outcome and working towards clean audit through compliance.

4.2	POLICIES

Policy development and review is very crucial in order to comply with regulations as and when they are amended. Council adopted a good strategy for development of policy and review through consultative workshops. The availability of key stakeholders are however at times a challenge and delays the approval of these policies.

Table 132: Corporate Services Policies and Plans (2016/17)
Name of Policy	% Completed	Date adopted by Council (or comment on failure to adopt)
1	Career Management and Retention	100%	A45 of 29/05/2012
2	Code of Conduct for Employees	100%	As per Schedule to System Act
3	Delegations, Authorisation and Responsibility	100%	30 April 2014 (A 24 of 2014)
4	Disciplinary Code and Procedures	100%	As per SALGBC Agreement however currently is under subdued care due to dispute. Labour Relations Act is applied.
5	Essential Services	40%	Agreement under review due to new organogram
6	Employee Assistance/ Wellness	100%	A29, 2013 June 28
7	Employment Equity	100%	A29, 2013 June 28, under Director General review. Waiting for DOL to approve.
8	Exit management	0%	No policy
9	HIV/AIDS for Employees	100%	HR competency (B126 of 26/11/2002
10	Human Resources Development	100%	B77 of 26/8/2008
11	Information Technology	50%	Drafts ready for consultations
12	Job Evaluation	100%	Approved by National Executive committee of SALGA, 2012
13	Leave	100%	A21, 1 April 2015
14	Occupational Health and Safety	100%	A29, 1 July 2013
15	Official Housing	100%	B158 of 31/8/2004
16	Official Journeys	100%	B172 of 31/8/2004
17	Official transport to attend funerals	100%	Bereavement Guidelines
18	Official Working Hours and overtime	100%	A21, 1 April 2015
19	Organisational Rights	100%	As per ORA in Main Agreement
20	Payroll deductions	0%	No Policy
21	Performance Management and Development	100%	A29, 28 June 2013
22	Personnel Provisioning	100%	A29, 1 July 2013, currently under review.
23	Remuneration Scales and Allowances	100%	B240 of 30/11/2004
24	Sexual Harassment	100%	A21, 1 April 2015
25	Training and Development	100%	A21, 1 April 2015
26	Smoking	100%	A21, 1 April 2015
27	Special skills	0%	Not developed
28	Work organisation	0%	Not developed
29	Uniforms and Protective Clothing	100%	A29, 28 June 2013
30	Policy on Granting of Bursaries to Employees	100%	A21, 1 April 2015
31	Policy on Temporary Employment of Students	100%	A21, 1 April 2015
32	Anti-Corruption Policy	100%	A30 of 18 June 2013
33	Policy for Labour Relations	100%	A21, 1 April 2015
34	Language Policy	0%	No Policy
35	Risk Management Policy	100%	A30 of 18 June 2013
36	COIDA	100%	A44 of 28 August 2012 (New Policy)

4.3	INJURIES, SICKNESS AND SUSPENSIONS

The Compensation for Occupational Injuries and Diseases Act, Act 130 of 1993, is the governing Act that deals with occupational injuries and diseases. The aim of the COIDA is to provide for Compensation in the case of disablement caused by occupational injuries or diseases, sustained or contracted by employees in the course of their employment, or death resulting from such injuries or disease; and to provide for matters connected therewith. An accident must be reported when an employee meets with an accident arising out of and in the course of employment resulting in a personal injury for which medical treatment is required. The number of injuries on duty during 2016/17 is presented in Table 133.

Table 126: Number and cost of injuries on duty (2016/17)
Type of Injury	Days Injury leave taken	No of employees	% of Employees using sick leave	Average injury leave per employee
Required basic medical attention only	20	12	1.81	2
Temporary total disablement	33	1	0.15	33
Permanent Disablement	0	0	0	0
Fatal	0	1	0	0
Total	53	14	1.96	35

From Table 133 above it will be observed that a total of 53 days sick leave occurred due to injury-on-duty cases, which are lower than the 80 days of the previous year. This constitutes a decrease of 66% of employees who were involved in such incidences. The OHS and EWP Section are continuously conducting awareness campaigns regarding safe working conditions and the role that each and every individual can play in limiting incidences of injury-on-duty. The three OHS Committees are also used as a platform to propagate a safe working environment within the OHS System which is in place. Inspections of workplaces are being done throughout the year and where necessary, follow-ups are being done to monitor compliance. The internal newsletter is also being used to place articles relating to OHS matters and to conscientise workmen/women. During the induction program of new entrants, time is being spent on OHS and EWP matters.

Table 127: Number of days and cost of sick leave (excluding injuries on duty) for 2016/17
Designation	Total sick leave (days)	% of sick leave without medical certification	Employees using sick leave*	Estimated cost@ basic salary	Average per job category
Unskilled and defined decision making (level 16-15)	1725	13.39%	173	R967 860	R322 620
Semi-skilled - discretionary decision making (level 10-14)	625	8.48%	62	R470 458	R94 091
Skilled, technical and academically qualified workers (7-9)	997	12.43%	96	R1 312 159	R437 386
Professionally qualified and experienced specialists (middle management) level 4-6	791	13.14%	81	R1 414 872	R471 624
Management (level 3)	187	14.70%	22	R582 806	R582 806
Senior Management (level 0-2)	21	4.76%	2	R88 822	R88 822
Total	4346	N/A	436	R4 836 977

Table 134 represents only normal sick leave taken by employees and not injury on duty sick leave taken. Management has identified a weakness in the OHS processes and a service providers will be appointed to conduct an extensive evaluation aimed at prevention and reduction of injuries on duty and ensure compliance to the OHS Act.

Table 128: Number and Period of Suspensions, 2016/2017
Position	Nature of Alleged Misconduct	Date of Suspension	Details of Disciplinary Action taken or Status of Case and Reasons why not Finalised (as at 30 June ’17)	Date Finalised
Cashier	Fraud and Gross dishonesty	n/a	Employee found guilty Final Written Warning plus 10 Days suspension without pay	2/10/2017
Control Operator	Misrepresentation of information	n/a	No disciplinary enquiry held on the basis that the employee advanced valid reasons why disciplinary steps should not be taken against him. A verbal warning in writing was issued	2/10/2017
General Worker Electrical	Fraud and Gross dishonesty	n/a	Under investigation, investigation report is being compiled	In process
General Worker	Fraud and Gross dishonesty	n/a	Under investigation, investigation report is being compiled	In process
Sports, Arts and Culture Officer	Fraud and Gross dishonesty	n/a	Under investigation	In process
Artisan assistant	Non-compliance with OHS prescript	n/a	Under investigation	In process

The root cause of the cases presented in the Table above is mostly associated with ignorance of principles and prescripts. All four (4) cases pending finalisation are as result of delay caused by statement taking, interviews and a thorough analysis of such information to ensure that a comprehensive investigation report is compiled. There were no precautionary suspensions. There were no financial misconduct cases reported.

4.4	PERFORMANCE MANAGEMENT

During the 2016/17 financial year a process was undertaken to review the Performance Monitoring and Evaluation Framework of Council. This was necessitated by the following:

Previous policy framework was outdated

Salary disparities required the cascading of assessments to lower level staff to be put on hold and an approach to rewarding exceptional performance not linked to the basic salary was required.

New developments and requirements in terms of programme performance monitoring and evaluation.

Shortcomings in the regulation of performance information, as identified by the Auditor General.

Council cancelled the performance assessments for the MM and Directors for 2015/16 as well as 2016/17. This due to instability in Management during 2015/16 and a high number of vacancies by the end of 2016/17. This, since the contracts for these positions were expiring at this time. Once the Performance Monitoring and Evaluation Framework is approved by Council an Incentive Policy will be developed to guide the cascading of the PMS. It should however be noted that GTM currently do not have the human resource capacity to manage individual PMS. The Human Resource Division still needs to be capacitated in this regard.

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

The Greater Tzaneen Municipality accepted legislative requirements of the Skill Development Act 97, 1998 to develop and improve the Skills of the South African workforce in capacitating municipal workforce in performing their functions and exercise their powers in an economic, effective and accountable way. To enhance the workforce in adult education training and learnership programmes that lead to recognized occupational qualifications. For the financial year 2016/2017 an amount of R 1 686 325.00 was allocated for the implementation of the training needs projected and approved. The WSP for 2016/2017 was submitted to LGSeta by 23 April 2016. The bulk of the training funds were spent on the (MFMA) for compliance with the National Treasury’s Regulations on Minimum Competency levels. Other training initiatives were therefore limited to:

Employees projected to be trained was 135

Actual training 104

77.03% of WSP implemented

A summary of the beneficiaries trained during the financial year, per occupational category, is presented in Table 136.

Table 129: Training interventions by occupational category, gender and race for 2016/17
Occupational Categories	Male	Female
African	Coloured	Indian	White	African	Coloured	Indian	White	Total
Legislators, Snr officials and managers	9	0	0	2	9	0	0	0	20
Professionals	8	0	0	0	10	0	0	2	20
Technicians and associate professionals	6	0	0	3	3	0	1	0	13
Clerks	13	0	0	0	11	1	0	2	27
Service and sales workers	0	0	0	0	0	0	0	0	0
Skilled agricultural and fishery workers	0	0	0	0	0	0	0	0	0
Craft and related trades workers	0	0	0	0	0	0	0	0	0
Plant and machine operators and assemblers	0	0	0	0	0	0	0	0	0
Elementary occupations	11	0	0	1	12	0	0	0	24
Total Permanent	47	1	45	1	1	4	104
Non-permanent employees	0	0	0	0	0	0	0	0	0
Total	47	0	0	6	45	1	1	4	104

Experiential training: As per approved temporary employment of student policy, the objectives outlined are to afford students a chance to get practical exposure in those directions, which may have application value for them and to optimise their services to the benefit of Council and the student. Twenty Seven (27) learners were appointed in five (5) departments to gain experience for the final year, to acquire their qualifications. The students are paid a stipend of R1 500.00 per month as per the Policy on Temporary Employment of Students. The following (see Table 137) is comprehensive data of learners who were assisted through the experiential programme in the Municipality to acquire their qualifications for the 2016/2017 financial year:

Table 130: Students trained through experiential programme (2016/17)
No	Surname & initials	Stream/qualification	Department	Period
1	Ngobeni L	National Diploma Journalist	Corporate Services	2015/02/01 –31/07/2016
2	Manzini MX	National Diploma Events Management	Corporate Services	2015/02/01 –31/07/2016
3	Gaveni k	youth Development	Office of the Mayor	2016/04/01- 2016/09/30
4	Mkhawana A	N6 Public management	MM’s Office	09/05/2016 – 30/04/2017
5	bayana n	n6 hr	Corporate Services	01/09/2016 – 31/10/2016
6	Makgoba W	N6 Public Management	corporate Services	01/11/2016- 31/12/2016
7	Makumbila M	N6 HR	corporate Services	01/11/2016- 31/12/2016
8	Nkwinika V	N6 HR	corporate Services	01/11/2016- 31/12/2016
9	baloyi S	National Diploma HR	corporate Services	2017/01/01 – 2018/06/30
10	Mateta P	N6 HR	corporate Services	01/03/2017 – 31/08/2018
11	Maswanganye W	Diploma Journalism	Office of the Mayor	01/03/2017 – 31/05/2017
12	chauke t	N6 Public management	Office of the Mayor	01/03/2017 – 31/05/2017
13	nkhwashu t	n6 engineering studies	engineering services	01/02/2017-31/01/2018
14	Maponya S	N6 HR	corporate Services	01/04/2017- 31/12/2018
15	Mkharhi W	N6 HR	corporate Services	01/04/2017- 31/10/2018
16	Letsoalo k	N6 HR	Communication and Marketing	01/04/2017-31/12/2018
17	Shikwambane T	N6 Public Management	Office of the Mayor	01/11/2016-31/01/2017
18	Mpiti N	N6 HR	Corporate services	10/02/2017-17/02/2017
19	Nogiela N	NCV Level 4 Office Practice	Corporate Services	09/5/2016 – 30/09/2016
20	Malema DS	N6 Business Management	budget and Treasury	03/07/2017 – 31/12/2018
21	Mashale RS	N6 Financial Management	budget and Treasury	03/07/2017 – 31/12/2018
22	Seimela K	N6 Public Management	municipal manager’s Office	15/05/2017-31/10/2018
23	Ngobeni E	N6 Business Management	budget and Treasury	01/07/2017- 31/07/2017
24	Mahasha L	N6 Business Management	budget and Treasury	01/06/2017 – 30/11/2017
25	Mpofana AS	National Diploma Chemical Engineering	Engineering services	01/06/2016 – 31/05/2017
26	Manyama T	National Diploma Chemical Engineering	Engineering services	01/06/2016 – 31/05/2017
27	Mbhalati KA	Diploma Accountancy	Budget and treasury	26/06/2017 – 31/08/2017

Challenges occurred during 2016/17 financial year for implementation:

Insufficient funds for implementation of WSP training needs. The bulk of the training funds were spent on the (MFMA) for compliance with the National Treasury’s Regulations on Minimum Competency levels.

Delay in Supply Chain Management to source quotes for training interventions

4.5	SKILLS DEVELOPMENT AND TRAINING

The GTM Skills Matrix is presented in Table 138.

Table 131: Skills Matrix
Management level	Gender	Employees in post as at 30 June 20167	Number of skilled employees required and actual as at 30 June 2017
Learnerships	Skills programmes & other short courses	Other forms of training	Total
No.	Actual 30 June 2016	Actual 30 June 2017	Target 17/18	Actual 30 June 2016	Actual 30 June 2017	Target 17/18	Actual 30 June 2016	Actual 30 June 2017	Target 17/18	Actual 30 June 2016	Actual 30 June 2017	Target 17/18
MM and S57	Female	0	0	0	0	2	0	0	0	0	0	2	0	0
Male	3	0	0	0	4	0	1	0	0	0	4	0	1
Councillors, senior officials and managers	Female	40	0	0	0	11	0	3	0	0	0	11	0	3
Male	50	0	0	0	13	0	4	0	0	0	13	0	4
Technicians and associate professionals	Female	11	0	0	0	18	18	18	1	1	1	18	19	19
Male	38	0	0	0	6	24	38	0	0	0	7	24	38
Professionals	Female	29	0	0	0	6	0	29	0	0	0	6	0	29
Male	51	0	0	6	1	30	0	0	0	6	1	30
Sub total	Female	83	0	0	0	31	28	50	0	1	1	31	29	51
Male	142	0	0	0	22	45	73	0	0	0	22	45	73
Total	225	0	0	0	119	116	123	1	1	1	120	74	124

Table 132: Financial Competency Development: Progress Report (2016/17)*
Description	A. Total number of officials employed by Municipality (Regulation 14(4)(a) and (c))	Competency assessments completed (Regulation 14(4)(b) and (d))	Total number of officials whose performance agreements comply with Regulation 16 (Regulation 14(4)(f))	Total number of officials that meet prescribed competency levels (Regulation 14(4)(e))
Financial Officials
Accounting officer	1	0	1	1
Chief financial officer	1	1	1	1
Senior managers	2	2	2	2
Any other financial officials	48	22	0	22
Supply Chain Management Officials
Heads of supply chain management units	1	1	0	1
Supply chain management senior managers	0	0	0	0
TOTAL	53	26	4	27

The municipality conducted Skill Audit with the assistance of COGHSTA Limpopo. However the final results are not yet available. The training needs request are annually submitted by various departments in order to develop Workplace Skills Plan (WSP) as per requirements of the Skill Development Act (Act 97 of 1998). The training interventions for the financial year 2016/17 are tabled for reference. It must be noted that the bulk of the money for training was utilised to cater MFMP programme as per legislation.

Table 133: Training interventions during 2016/17
No	Course Name	Type of Intervention	Occupational Category	Department	Number of Employees Trained
1	MFMA	Learnership	Managers and finance officials	All Departments	25
2	Invasive Species Training	Short Course	Manager: Parks and Horticulturist	Community Services	2
3	ORG-PLUS Training	Skills Programme	Work Study Officer and Jnr HR Officer	Corporate Services	2
4	Operating Regulations for High Voltage System	Skills Programme	Electricians	Electrical Engineering	10
5	Advanced Archive and Record Management	Short Course	Admin Officer	Corporate Services	1
6	Intermediate Archive and Record Management	Short Course	Clerk Records	Corporate Services	4
7	Occupational Health and Safety Awareness	Short Course	General Workers, Team Leaders, Electricians	Electrical Engineering	22
8	VMWARE VSPHERE: install, Configure, Manage v6.5 Training	Skills Programme	Database Administrator	Corporate Services	1
9	Municipal Governance Training for Councillors	Short Course	Councillors	Office of the Mayor	9
10	Office Management	Short Course	Secretaries	MM’S Office and Mayor’s Office	2
11	Report Writing and Minutes Taking	Short Course	Training Officer, Jnr HR Officer, EAP Clerk	Corporate Services	3
12	Records Management, Minutes taking and Report Writing	Short Course	Librarians , Library Assistants	Community Services	13
13	COBIT 5 Foundation and Implementation	Skills Programme	Manager : IT	Corporate Services	1
14	Operating Regulations for High Voltage System	Skills Programme	Electricians	Electrical Engineering	4
15	Auditing the process utilized by management to improve their external audit opinion on their financial statement in the public sector.	Short Course	Internal Auditor	Municipal Manager’s Office	1
16	Environmental Auditing for non-environmental auditors	Short Course	Internal Auditor	Municipal Manager’s Office	1
17	Performance auditing for the public sector	Short Course	Manager: Internal Audit	1
18	Auditing the process utilized by management to improve their external audit opinion on their financial statement in the public sector.	Short Course	Manager: Internal Audit	Municipal Manager’s Office	1
19	General Conditions of Contract (GCC)	Short Course	Manager : Legal Services	Municipal Manager’s Office	1
20	Community Water Health and Sanitation monitoring Learnership	Learnership	Process Controller	Engineering Services	15

Table 134: Skills Development Expenditure (R'000) for 2016/17
Management level	Gender	Employees as at the beginning of the financial year	Original Budget and Actual Expenditure on skills development 2016/2017
Learnerships	Skills programmes & other short courses	Other forms of training	Total
No.	Original Budget	Actual	Original Budget	Actual	Original Budget	Actual	Original Budget	Actual
Top management (level 0-2)	Female	2	0	0	R45 000	R44 348	0	0	R45 000	R44 348
Male	4	0	0	R50 000	R49 674	0	0	R50 000	R49 674
Senior Management (level 3)	Female	9	0	0	R20 000	R 9 550	0	0	R20 000	R 9 550
Male	17	0	0	R30 800	R20 700	0	0	R30 800	R20 700
Professionally qualified and experienced specialists (middle management) level 4-6	Female	23	0	0	R120 000	R100 870	0	0	R120 000	R100 870
Male	31	0	0	R598 000	R489 235	0	0	R598 000	R489 235
Skilled, technical and academically qualified workers (7-10)	Female	68	0	0	R598 000	R30 942	0	0	R598 000	R30 942
Male	74	0	0	R55 000	R20 148	0	0	R55 000	R20 148
Semi-skilled - discretionary decision making (level 10-15)	Female	29	0	0	R29 000	R20 809	0	0	R29 000	R20 809
Male	90	0	0	R120 000	R21 603	0	0	R120 000	R21 603
Unskilled and defined decision making (level 16-17)	Female	167	0	0	R20 002	R12 002	0	0	R20 002	R12 002
Male	149	0	0	R20 002	R12 002	0	0	R20 002	R12 002
Sub total	Female	299	0	0	R289 923	R218 521	0	0	R289 923	R218 521
Male	365	0	0	R873 802	R613 362	0	0	R873 802	R613 362
Total	660	0	0	R1 163 725	R831 883	0	0	R1 163 725	R831 883
*% and *R value of municipal salaries (original budget) allocated for workplace skills plan.	R1 486 800.00	3.03%

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

It is important that thorough planning is undertaken to ensure that workforce or personnel expenditure is within available resources and should not be such that mandate areas of Council are compromised. Endeavours are made to synergise and integrate organogram reviews with both the IDP and Budget Processes to ensure alignment. Council has been seized with overtime work high expenditure which erode much needed financial resources. Endeavours are being made to bring expenditure in that regard to acceptable levels. Initiatives are at their early stages to develop performance management system which will ensure that the municipality derive maximum value for money from the personnel expenditure.

4.6	EMPLOYEE EXPENDITURE

Table 134 and Figure 5 below presents the expenditure on the workforce during the past 5 years. Although the total number of employees have remained fairly constant during this period the expenditure on the workforce did increase due to annual salary increases. However, the workforce expenditure, as a percentage of the total operational budget, showed a steady decline during the past 3 years. This, mainly due the fact that vacancies were not filled as the funds were required to address salary disparities at lower salary levels.

Table 135: Workforce Expenditure (R'000)
Year	Total No of Employees	Total Workforce Expenditure	% of total budget
2012/2013	660	198 337 670	26.30%
2013/2014	681	247 063 144	30.42%
2014/2015	671	244 723 266	28.65%
2015/2016	655	258 534 208	26.06%
2016/2017	661	267 338 994	22.76%

Table 136: Number of employees whose salaries were increased due to their positions being upgraded during 2016/17
Beneficiaries	Gender	Total
Senior management (level 0-2)	Female	0
Male	0
Management (level 3)	Female	0
Male	0
Professionally qualified and experienced specialists (middle management) level 4-6	Female	0
Male	0
Skilled, technical and academically qualified workers (7-10)	Female	0
Male	0
Semi-skilled - discretionary decision making (level 10-15)	Female	0
Male	0
Unskilled and defined decision making (level 16-17)	Female	0
Male	0
Total	0

Table 137: Financial Interests declared 2016/17
Position	Name	Description of Financial Interest
Municipal Manager	SR Monakedi	Membership: Limpopo Housing Advisory Panel – Government. Dalse Trading – General Trading Kodimela Management Consulting Monakedi Consulting – General Trading. Directorship – Resima Housing Finance Corporation. Semonye Investment Tsendze Investments Interest in Property – Residential Property 65 Springbok Street, Fauna Park, Polokwane 0699 Residential Property, 2319, Kqwane Nkadimeng Street, Marble Hall, 0450 Stand 451, Savannah Estate Pretoria, 0001 Residential Property, Tzaneen
CFO	NM Lion	100% Shares Nona Consulting and Projects. Membership, SAIPA, SAIT, ACCA Consultancies Nona Consulting and project. Selling Furniture, Sanitation and lights, Rental of Properties. 9 Mill Street, olifants, 8981 Ivory Park 663 Celtis Ridge
Director Engineering Services	DS Malatji	Own Private Business, selling Chickens Own Private Business, Rental Business. House under Construction 3141/15 Medi Park, Tzaneen House 1051 Crescent Wood Lowlands Drive Midrand Town House No. 9 Echo Ekhaya , 3 Kew Street Tzaneen.
Director Corporate Services	W Shibamba	Land and Property: Stand 7296, Pretoria West Lotus Gardens.
Director Electrical Engineering	MS Lelope	Membership, Ature Electrical (Contract Dormant) Land and Property Dwelling House
Director Planning and Economic Development	BM Mathebula	Shares, BMM Consulting Services. House Tzangeni
Director Community Services	OZ Mkhombo	Mkhombo Family Trust Ozzee Trading Farming and Projects (PTY) LTD Land and Property 4398 Ext. 76 Sler Malan Street, Tzaneen Flat – Gezina Pretoria
Councillors
Councillor	DF Kgafane	Child Grant
Mayor	MG Mangena	House Rural Villages 14b, Dayalami, Shiluvane 0873
Speaker	DJ Mmetle	Golden Acres 3 3277 Nkowankowa 2919B Riverside Department of Health Pension Fund
Councillor	M Prinsloo	Member, BEC Construction Registration No. 1991/028478/23 Close Corporation, in Business. Member, BEC Management Services Registration No.1998/061049/23, Close Corporation, in Business. Member, BEC Developments Registration No. 1988/023255/23 Conversion CO/CC or CC/CO Director, BEC Developments Registration No. 2015/294503/07 Private Company in Business. Incorporator, BEC Developments Registration No. 2015/294503/07 Private Company, In Business. Director, Cross Atlantic properties 0018, Registration No. 2004/004878/07, Private Company in Business. Die Vossiebond Registration No. 2009/018020/08, Non Profit Company, in Business. Director, Erf 1824 Phalaborwa Investments, 1983/011811/07, Private Company in Business. Director HENTIQ 2587, Registration No. 2000/012412/07, Private Company in Business. Director, Kingdom Air, Registration No. 2004/010009/07, Private Company in Business. Company Share, Kingdom Share, Registration No. 2004/010009/07, Private Company in Business. Member Laagwater Beleggings, Registration No. 2003/046340/23, Close Corporation in Business. Director, Princes’s Grant ERF/103, Registration No. 2003/004283/07, Private Company in Business. Director, TZANAIR, Registration No. 2001/013193/07, Private Company in Business. Director, TZANEEN STAAL INDUSTRIEE, Registration No. 1973/008672/07, Private Company in Business.
Councillor	MC Morwatshehla	Bokone General Construction Morwamasilu Trading and Project , SK214/071237/67 Pension Fund from Deceased
Councillor	SB Ramoshaba	Kgopi Trading Enterprise Fiance’s Business- Germiwa Construction.
Councillor	MS Baloyi	Balwantwa Community Health Worker (CCW)
Councillor	NM Mahasha	Liberty Life Annuity Fund. Chairperson (NPO) Barotswi Cultural & Heritage.
Councillor	TH Mushwana	GEPF Sanlam sky, Avbob, Safrican, Old Mutual group Scheme
Councillor	MS Tiba	Avon Sales Leader GEPF
Councillor	MM Mathekga	Manareng Day Care Centre Fosyer Care Grant
Councillor	MJ Maake	Phuthuma Nathi GEPF
Chief Chip	CS Nhemo	LG – Seta House Nkowanoka – 271B MEPF
Councillor	Mc Clintock	Member Devenco Investments 14, Registration No. 2006/073520/23, Close Corporation in Business Representative Trustee (Resigned) COUP DE TAA 2007, Registration No. 2007/180282/23, and Close Corporation in Business. Member, Active, COUP DE TAA 2007, Registration No. 2007/180282/23, Close Corporation, in Business. Director, Active DEVENCO INVESTMENTS 14, Registration No. 2002/005970/07, Private Company, Conversion CO/CC or CC/CO Doornhoek Equestrian Estate Home Owners Association, Registration No. 2007/004715/08, Non Profit Company in Business. Member (Resigned) Tosama Properties, Registration No. 2006/104357/23, Close Corporation, Deregistration Final. Director, Tourist Solutions, Registration No. 2012/098732/07, Private Company, in Business. Member, (Resigned) Tzaneen Portfolio Management, Registration No.2003/069301/23, Close Corporation, in Business. Representative Trustee, Active, Tzaneen Portfolio Management, Registration No. 2003/069301/23, Close Corporation, in Business.
Councillor	TL Matita	Matita Business Investment Grace Network (NPO)

Declarations of interest forms are attached to salary advices yearly at the end of June. After completion and signature of employee forms must be taken to relevant department for Directors Approval. Forms are then sent to Human Resources for capturing and filing. The captured list and copies of the forms are submitted to the CFO by February.

CHAPTER 5 – FINANCIAL PERFORMANCE

Chapter 5 contains information regarding financial performance and highlights specific accomplishments. The chapter comprises of three components:

Component A: Statement of Financial Performance

Component B: Spending Against Capital Budget

Component C: Other Financial Matters

Inflationary pressures will be curbed through expenditure management and with the increase in payment levels care will be taken to ensure that expenditure is kept within the actual income received and not the budget income. The most expensive consultancy arrangements include the following:

Asset Management through ARMS Audit: institutional capacity to manage assets still needs to be created, the consultant was appointed to facilitate asset management. No audit findings on assets during 15/16 and 2016/17.

MSCOA through SEBATA: necessitated by the requirement that all municipalities implement the new Municipal Standard Charter of Accounts as prescribed by Treasury.

VAT consultancy services through PK Consulting: GTM in the process of trying to end the contract as it is not proving beneficial to Council.

Electrical Engineering Services through Rhino consulting Engineers: Appointed to comply with NERSA requirement that an Electrical Engineer with Government ticket be available on site to retain operating license.

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE

Introduction to financial statements

This component provides an overview of the financial performance of the Municipality and focuses on the financial health of the Municipality. The Statements of Revenue Collection Performance by vote and by source are included in Addendum K.

5.1	FINANCIAL SUMMARY

Table 138: Financial Summary 2016/17 (R'000)
Description	2015/16	Current year 2016/2017	2016/2017 Variance to actual
Actual	Original Budget	Adjusted Budget	Actual	Original Budget	Adjustment Budget
Financial Performance
Property rates	79 333	77 000	77 000	88 946	13%	13%
Service charges	450 104	518 881	518 881	447 721	-16%	-16%
Investment revenue	6 850	2 101	2 101	8 253	75%	75%
Transfers recognised - operational	398 843	324 390	333 885	424 921	24%	21%
Other own revenue	91 731	77 387	77 387	112 725	31%	31%
Total Revenue (excluding Capital transfers & contributions)	1 026 861	999 759	1 009 255	1 082 566	8%	7%
Employee costs	261 193	293 508	293 508	267 339	-10%	-10%
Remuneration of Councillors	21 090	23 036	23 036	22 457	-3%	-3%
Depreciation & asset impairment	121 080	128 675	128 675	126 139	-2%	-2%
Finance charges	11 035	14 854	14 854	12 802	-16%	-16%
Materials and bulk purchases	301 975	332 500	332 500	321 520	-3%	-3%
Transfers and grants	130 746	35 673	45 169	123 609	71%	63%
Other expenditure	240 191	211 956	211 956	240 758	12%	12%
Total Expenditure	1 087 310	1 040 202	1 049 698	1 114 624	7%	6%
Surplus/(Deficit)	-60 449	-40 443	-40 443	-32 059	-26%	-26%
Transfers recognised - capital	37 203	92 307	165 507	39 865	-132%	-315%
Contributions recognised - capital & contributed assets	20 407
Surplus/(Deficit) after capital transfers & contributions	-2 840	51 864	125 064	7 807	-564%	-1502%
Share of surplus/ (deficit) of associate
Surplus/(Deficit) for the year	-2 840	51 864	125 064	7 807	-564%	-1502%
Capital expenditure & funds sources
Capital expenditure	89 143	133 453	220 547	76 411	-75%	-189%
Transfers recognised - capital	37 203	92 307	165 507	35 069	-163%	-372%
Public contributions and donations	20 407	–	–
Borrowing	20 000	16 807	12 192	-64%	-38%
Internally generated funds	31 533	21 146	38 234	29 149	27%	-31%
Total sources of capital funds	89 143	133 453	220 547	76 411	-75%	-189%
Financial position
Total current assets	418 403	328 119	338 503	453 616	28%	25%
Total noncurrent assets	1 833 319	2 010 921	2 098 015	1 735 864	-16%	-21%
Total current liabilities	271 291	229 266	225 151	273 252	16%	18%
Total noncurrent liabilities	217 214	204 125	204 125	194 405	-5%	-5%
Community wealth/Equity	1 763 218	1 905 649	2 007 241	1 721 823	-11%	-17%
Cash flows
Net cash from (used) operating	176 684	119 824	184 824	144 181	17%	-28%
Net cash from (used) investing	-197 244	-138 602	-225 696	-135 333	-2%	-67%
Net cash from (used) financing	46 953	8 121	8 121	-31 378	126%	126%
Cash/cash equivalents at year end	26 392	12 343	22 727	31 839	61%	29%
Cash backing/surplus reconciliation
Cash and investments available	75 309	27 731	38 115	57 013	51%	33%
Application of cash and investments	140 989	75 108	79 223	138 038	46%	43%
Balance - surplus (shortfall)	216 298	102 839	117 338	195 051	47%	40%
Asset management
Asset register summary (WDV)	1 780 440	1 995 533	2 082 627	1 710 690	-17%	-22%
Depreciation and asset impairment	121 080	128 675	128 675	126 139	-2%	-2%
Renewal of Existing Assets	708	10 000	8 600	3 030	-230%	-184%
Repairs and Maintenance	25 111	42 130	42 130	35 019	-20%	-20%
Free services
Cost of Free Basic Services provided	4 000	4 000	2 994	-34%	-34%
Revenue cost of free services provided	24 620	24 620	23 170	-6%	-6%
No. of Households below minimum service level
Water	–	–
Sanitation/sewerage	–	–
Energy	13	13	13	0%	0%
Refuse	100	100	100	0%	0%
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual. This table is aligned to MBRR table A1

From Table 144 it can be seen that the financial performance results for the Municipality closed with a surplus of R7 Million.

The total Capital Expenditure for the year is less than the Budgeted amount due to the projects that were constructed on behalf of RAL. The amount of R90 Million RAL projects constructed by the Municipality was transferred to RAL as grants from the operational Expenses.

The Financial position of the Municipality is positive as the total Assets exceeds the total liabilities. It can therefore be assumed that the Liabilities of the Municipality can be settled.

The Municipality closed the 2016/2017 financial year with a positive Bank balance of R31 Million. If the unspent conditional grants of R19 million is taken into consideration, the Municipality still closed the year with a positive bank balance of R12 Million.

The actual Asset additions is less than the budgeted amount due to the projects constructed on behalf of RAL. These projects have been transferred from the Capital Budget to operating expenses and transferred to RAL. The expenditure on renewal of assets is also less than budgeted and the Municipality was advised by the Provincial Treasury to increase repairs and maintenance on the renewal of assets to ensure that the assets are properly maintained.

Table 139: Financial Performance of Operational Services (R'000) for 2016/2017
Description	2015/16	Current year 2016/17	2016/17 Variance
Actual	Original Budget	Adjustment Budget	Actual	Original Budget	Adjustments Budget
Operating Cost
Water
Waste Water
Electricity	455 652	485 394	498 540	482 020	3 374	16 520
Waste Management	61 945	69 773	69 773	69 658	114	114
Housing	10 593	16 064	15 524	10 940	5 125	4 585
Component A: sub-total	528 190	571 231	583 837	562 618	8 613	21 219
Waste Water
Roads	206 847	122 990	122 905	218 497	(95 507)	(95 592)
Transport	19 877	41 663	41 637	20 258	21 405	21 379
Component B: sub-total	226 724	164 653	164 542	238 755	(74 102)	(74 213)
Planning	17 713	26 705	21 005	20 301	6 404	704
Local Economic Development
Component B: sub-total	17 713	26 705	21 005	20 301	6 404	704
executive & council	36 484	36 417	35 160	34 338	2 079	822
budget & treasury office	86 295	82 310	82 463	94 649	(12 339)	(12 186)
corporate services	126 029	80 489	77 624	89 899	(9 411)	(12 276)
Component C: sub-total	248 808	199 216	195 247	218 887	(19 671)	(23 640)
Community & Social Services	7 689	8 791	8 791	7 646	1 145	1 145
Environmental Protection	–	–
Health	6 663	10 299	10 299	8 171	2 128	2 128
Public safety	25 994	32 545	32 485	28 205	4 340	4 280
Sport and Recreation	21 222	25 225	25 355	23 221	2 004	2 134
Waste water	6 805	8 038	8 138	6 821	1 217	1 317
Component D: sub-total	68 374	84 898	85 068	74 064	10 833	11 003
Total Expenditure	1 089 809	1 046 702	1 049 698	1 114 625	(67 922)	(64 927)

5.2	GRANTS

The performance of GTM on the expenditure on grants is presented in Table 146 below:

Table 140: Grant Performance 2016/17 (R'000)
Description	2015/16	2016/17	2016/17 Variance
Actual	Budget	Adjustments Budget	Actual	Original Budget (%)	Adjustments Budget (%)
Operating Transfers and Grants
National Government:
Equitable share	288 643	291 141	291 141	291 113	100%	100%
Municipal Systems Improvement	Nil	Nil	Nil	Nil	Nil
Integrated National Electrification	30 000	25 000	25 000	25 000	100%	100%
EPWP	1 842	1 949	1 949	1 949	100%	100%
Financial management grant	1 675	1 810	1 810	1 810	100%	100%
Provincial Government:
Health subsidy
Housing
Ambulance subsidy
Sports and Recreation
Seta	26	26	1	4%	4%
District Municipality:
[insert description]
Other grant providers:
[insert description]
Total Operating Transfers and Grants	322 160	319 926	319 926	319 873	100%	100%
Variances are calculated by dividing the difference between actual and original/adjustments budget by the actual.	T5.2.1

An amount of R319 Million was allocated to the Municipality by National Treasury for the 2016/2017 financial year. This amount was allocated in terms of the Division of Revenue Act promulgated every financial year.

With regard to the spending against these grant allocation it is reported that the Municipality complied with the criteria, conditions and obligations embodied in the agreement. The under spending of the Municipal Infrastructure Grant came as a result of GTM having to acquire approval from the Department of Roads and Transport (Limpopo) to upgrade 3 roads owned by the Department. Delays in securing approval, received in during December 2014 from RAL, resulted in the funds not being spent as planned.

Table 141: Conditional Grants: excluding MIG (R'000) - 2016/17
Details	Budget	Adjustment Budget	Actual	Variance	Major conditions applied by donor (continue below if necessary)
Budget	Adjustment Budget
Neighbourhood Development Partnership Grant	8 200	5 361	100%	-53%	Grant to be utilised for the purpose that it was acquired for. It must be counter funded by the Municipality. This grant is for previously disadvantage communities and must be spent in the specified financial year.
Finance Management Grant	1 810	1 810	1 810	0%	0%	The grant is utilised for capacity building, minimum competency level, financial training as well as the remuneration of Interns
Municipal Systems Improvement	1 949	1 949	1 949	0%	0%	The grant is used to upgrade the financial systems of the municipality and to provide training to officials.
National Electrification (INEP) & Neighbourhood	25 000	25 000	25 000	0%	0%	INEP funds must be utilised within the allocated period and the network must comply with ESKOM standards
Total	28 759	36 959	34 120	16%	-8%

5.3	ASSET MANAGEMENT

GTM has an approved Asset Management Policy but since no in-house capacity exists to administer assets a consultant (ARMS) was appointed to assist.

Table 142: Treatment of the three largest assets acquired 2016/17
Asset 1
Name	Electrical Energy and Efficiency (Cable type A)
Description	Cable
Asset Type	Infrastructure
Key Staff Involved	Electrical department
Staff Responsibilities	Maintenance
Asset Value	2013/2014	2014/15	2015/16	2016/17
R2 966 492.72
Capital Implications	Item is not a revenue generating project
Future Purpose of Asset	Better supply of electricity
Describe Key Issues	Improved service delivery
Policies in Place to Manage Asset	Asset policy in place
Asset 2
Name	Relela community hall
Description	Community hall
Asset Type	Buildings (Infrastructure).
Key Staff Involved	Buildings
Staff Responsibilities	Maintenance
Asset Value	2013/2014	2014/15	2015/16	2016/17
R11 4 02 678.54
Capital Implications	Item is not a revenue generating project
Future Purpose of Asset	Direct service delivery (meetings and events).
Describe Key Issues	Access to a community facility
Policies in Place to Manage Asset	Asset policy in place
Asset 3
Name	Nkowankowa taxi rank
Description	Taxi Rank
Asset Type	Building (Infrastructure).
Key Staff Involved	Buildings
Staff Responsibilities	Maintenance
Asset Value	2013/2014	2014/15	2015/16	2016/17
R5 505 630.37
Capital Implications	Item is not a revenue generating project
Future Purpose of Asset	Direct service delivery (meetings and events).
Describe Key Issues	Improved access to taxi services
Policies in Place to Manage Asset	Asset policy in place

Table 143: Repairs and Maintenance Expenditure (R'000)
Year	Original Budget	Adjustment Budget	Actual Exp (Including labour costs)	Budget variance
2015/2016	23 877	23 581	25 111	(1 530)
2016/2017	31 214	33 255	35 019	-1 763

The actual expenditure on repairs and maintenance represents 3.14% of the total expenditure. It must however be emphasized that this spending does not include employee related cost allocated to repairs and maintenance. If the employee cost is included in this allocation, it represents 10.79% of total expenditure. The budget amount over the pasts three years increased from R7.9 Million to R33.3 Million, with an actual spending of R35 Million for the 2016/2017 financial year. According to Table 143 above the actual repairs and maintenance cost differ only R1.7 Million with the budgeted amount. This represents only a 5% variance on the budget.

FLEET MANAGEMENT

Fleet Management is critical to ensure sustained service delivery. During 2016/17 fleet management was identified as an area that require intervention since the aging fleet and equipment is negatively impacting on the ability of service departments to function. GTM is therefore in the process of reviewing the organisational arrangements in this regard and is also reviewing the Fleet Management Policy.

Table 144: Fleet Management Expenditure
Financial Year	No of vehicles	Asset value of fleet	R-value spent on maintenance	R-value spent on procurement of new vehicles	Challenges
2014/15	152	15 274 910.09	2 473 202	820 987	No funding for replacement of fleet
2015/16	152	11 637 394.88	2 426 143	0.00
2016/17	153	8 984378.73	2 758 860	1 180 900

From Table 144 it is evident that during the past 3 years the number of vehicles remained consistent and while the asset value of these vehicles declined little funds were spent on the replacement of the fleet. Although a request for replacement of the fleet was submitted to the IDP for prioritisation, no funds were made available. Only one vehicle was purchased in 14/15 and 16/17 respectively. The expenditure on the maintenance of the fleet remains fairly constant but replacement of vehicles will have to be budgeted for, to ensure sustained service delivery.

5.5	FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

The financial rations presented below presents the financial health of the municipality.

The liquidity ratio, as demonstrated for Greater Tzaneen Municipality in the figure above, measures the Municipality’s ability to pay its bills and is calculated by dividing the monetary assets by the Municipality’s current liabilities. A higher ratio is better. Greater Tzaneen Municipality has a positive liquidity ratio which increased from 1.5 in the previous year to 1.7 in the current financial year. (See Figure 10 above)

The Cost Coverage, as demonstrated for Greater Tzaneen Municipality in Figure 11 above, explains how many months expenditure can be covered by the cash and other liquid assets available to the Municipality excluding utilisation of grants. This graph indicates that Greater Tzaneen Municipality's fixed monthly operational costs are covered by available cash and investments and remained the same over the past two years. This is a matter of concern seeing that the guideline set by National Treasury is 3 months, whilst Greater Tzaneen Municipality has less than 1 month available cash and investments.

The baseline score as per the 2015/2016 LGMIM results identified weaknesses of the municipality which includes the cost coverage. The municipality scored level 1 against the initial self-assessment score of level 4. The weakness identified is that the municipality did not ensure that the cash/cost coverage ratio remains between 1 and 3 months as per the MFMA circular 71. The municipality will have to address this issue during its next budget process.

The outstanding service debtors, as expressed for Greater Tzaneen Municipality in the figure above, measure how much money is still owed by the community for services i.e. electricity, and waste removal compared to how much money has been paid for these services. It is calculated by dividing the total outstanding service debtors by the total annual revenue received for services. A lower score is better. It is evident from this graph that 75.7% of services billed are not recovered on time. This is a serious matter of concern and special attention will have to be given to outstanding service debtors to ensure an affordable rate.

Debt coverage, as expressed for Greater Tzaneen Municipality in Figure 13 above, is the number of times debt payments can be accommodated within Council Operating revenue (excluding grants). This, in turn represents the ease with which payments can be accommodated by the Municipality. The current operating revenue of Greater Tzaneen Municipality covers all payments due for debt services within 17 days.

The Creditor System Efficiency, as demonstrated for Greater Tzaneen Municipality in Figure 14 above, is the proportion of creditors paid within terms (30 days). This ratio is calculated by outstanding trade creditors divided by credit purchases. The fact that 95% of Councils creditors are paid within 30 days is proof that good expenditure management is exercised.

The capital charges to operating expenditure ratio are calculated by dividing the sum of capital interest and principle by the total operating expenditure. Figure 15 presents the percentage expenditure spent on the repayment of loans against total expenditure. Only 4% of the expenses were spent on the repayment of loans during the 2016/2017 financial year. The increase is due to the following loans that were taken up during the 2015/2016 financial year.

Annuity loan from DBSA: A loan of R31 300 000 has been allocated to the municipality during May 2016 by DBSA. The loan bears interest at 9% and will be fully redeemed on 30 June 2018. The loan is in respect of the DBSA, INEP frontloading programme as proposed by the department of Energy (DOE)

Loan stock from Standard Bank: A loan of R30 000 000 has been taken up to finance capital projects. The loan bears interest at a rate of 12.09% per annum and will be redeemed on 16 October 2025.

Employee costs, as expressed for Greater Tzaneen Municipality in the figure above, measures what proportion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between the total revenue and capital revenue. The employee cost ratio of 24.6% (also see Figure 16) for Greater Tzaneen Municipality is well within the acceptable ratio.

The repairs and maintenance ratio, as demonstrated for Greater Tzaneen Municipality in Figure 17 above, represents the proportion of operating revenue against repairs and maintenance. The ratio of 3.2% is far below the target of 13% which is an indication that Council assets have not been maintained adequately during the financial year under review.

It must however be emphasised that this amount does not include the labour cost and will increase to 11.04% if the labour cost is added to this amount.

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

Capital expenditure relates to the investment in major initiatives, the benefit of which is going to last for more than one financial year. Section 19 of the MFMA determines that a Municipality may spend money on a capital project only if the money for the project has been appropriated in the capital budget. It also determines that the total cost of the project must be approved by Council and that the sources of funding for the project are available and has not been committed for other purposes. The five largest projects can be summarized as follows:

Thapane to Moruji tar road

Senakwe to Morapalala road

Upgrading of Tzaneen Swimming Pool

Lenyenye Stadium

Moruji to Matswi/ Kheshikolwe Tar Road

These projects contribute 87% of the total capital expenditure for the year.

5.6	CAPITAL EXPENDITURE

The capital expenditure for 2016/17 is presented below in Table 145 and in Figure 20.

Table 145: Budget Expenditure 2016/17 (’000)
Original Budget	Adjustment Budget	Full Year Total	% of Expenditure Budget
15/16	16/17	15/16	16/17	15/16	16/17	15/16	16/17
Capital Expenditure	145	133	200	221	89	76	7.54%	6.42%
Operating Expenditure	960	1 040	992	1 050	1091	1 114	92.46%	93.58%
Total expenditure	1 104	1 174	1 192	1 270	1180	1 191	100%	100%

As can be seen in Figure 6, less than 8% of the expenditure budget is spent on capital items.

5.7	SOURCES OF FINANCE

The Capital budget for the year 2016/2017 Financial year of R 133, 6 million was financed as follows: Budgeted amounts.

Own sources	R 21,3 Million

Loans	R20 Million

Grants	R 92,3 Million

Total:	R 133,6 Million

Although the municipality applied for an R 20 million loan, it was not approved in time and no loan has been taken up to finance Capital projects. An amount of R130 million was spent on capital projects. A request for the roll-over of the capital projects, which were not finalized during the 2015/2016 financial year, was submitted to National Treasury.

The funding of the operational budget can be summarized as follows: Budgeted amounts

Rates and Service Charges	R 616 Million

Grants and subsidies	R 423 Million

Sundry Income	R 60 Million

Budgeted Revenue	R 1099 Million

Table 151: Capital Expenditure - Funding Sources 2015/16 – 2016/17 (R'000)
Details	2015/16	2016/17
Actual	Original Budget (OB)	Adjustment Budget	Actual	Adjustment to OB Variance (%)	Actual to OB Variance (%)
Source of finance
External loans	20 000	16 807	12 192	-64.04%	-37.85%
Public contributions and donations	20 407
Grants and subsidies	37 203	92 307	165 507	35 069	-163.21%	-371.94%
Other	31 533	21 146	38 234	29 149	27.45%	-31.17%
Total	89 143	133 453	220 547	76 411	-74.65%	-188.63%
Percentage of finance
External loans
Public contributions and donations	22.9%	0.00%	0.00%	0.00%
Grants and subsidies	41.7%	69.17%	75.04%	45.90%	-50.71%	-63.51%
Other	35.4%	15.85%	17.34%	38.15%	58.46%	54.56%
Capital expenditure
Electricity	27 609	29 700	28 900	13 160	-125.69%	-119.61%
Housing	858	300
Roads and storm water	34 147	96 953	176 079	41 958	-131.07%	-319.65%
Other	26 529	6 800	15 269	21 293	68.06%	28.29%
Total	89 143	133 453	220 547	76 411	-74.65%	-188.63%
Percentage of expenditure
Electricity	30.97%	22.25%	13.10%	17.22%	-29.22%	23.91%
Housing	0.96%	0.00%	0.14%	0.00%
Roads and storm water	38.31%	72.65%	79.84%	54.91%	-32.30%	-45.39%
Other	29.76%	5.10%	6.92%	27.87%	81.71%	75.16%

5.8	CAPITAL SPENDING ON 5 LARGEST PROJECTS

The details regarding the five largest capital projects are presented in Table 152.

Table 147: Capital Expenditure of 5 largest projects*R'000) 2016/17
Name of Project	Current Year	Variance Current Year
Original Budget	Adjustment Budget	Actual Expenditure	Original Variance (%)	Adjustment variance (%)
A: Rita to Mariveni tar road	20 153	26 013	14 837	27	42
B: Moruji to Matshwi tar road	22 839	24 705	11 269	50	54
C: Tickyline to Mafarana tar road	19 600	42 978	46 041	(134.90)	(7,12)
D: Upgrading of Runnymede Sports ground	15 972	22 472	18 662	(16)	16
E: Julesburg Sports Ground	11 561	11 561	Nil	0	0
Project details below:
A - Rita to Mariveni tar road
Objective of Project	Construction of 12km Tar road
Delays	Zangoma community refusing construction of internal streets
Future Challenges	None
Anticipated citizen benefits	Improved access to transport services and infrastructure
B - - Moruji to Matshwi tar road
Objective of Project	Construction of 12km Tar road
Delays	Deep cuts and fills
Future Challenges	None
Anticipated citizen benefits	Improved access to transport services and infrastructure
C - Tickyline to Mafarana tar road
Objective of Project	Construction of 12km Tar road
Delays	None
Future Challenges	None
Anticipated citizen benefits	Improved access to transport services and infrastructure
D - Upgrading of Runnymede Cluster
Objective of Project	Construction of Sports Facility
Delays	Delivery and placing of concrete pavilion, Rock blasting
Future Challenges	None
Anticipated citizen benefits	Sports Facility for use by surrounding community
E Julesburg Sports Ground
Objective of Project	Construction of Sports Facility
Delays	None
Future Challenges	None
Anticipated citizen benefits	Sports Facility for use by surrounding community

5.9	BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW

The current demand for infrastructure exceeds Councils ability to fund the required R400 million costs (electricity network alone) to renew and upgrade infrastructure. Various funding solutions are being sought.

Table 148: Service Backlogs as at 30 June 2017
Service level above minimum standard	Service level below minimum standard
No. HHs	% HHs	No. HHs	% HHs
Water	17 723	16%	53 577	49%
Sanitation	14 480	13.29%	27 058	24.8%
Electricity	3829	96%	3 829	4%0
Waste management	8 537	8%	64 112	59%

* GTM does not supply Electricity Below minimum standard, these signify no access

Table 149: Municipal Infrastructure Grant (MIG)* Expenditure 2016/17 on Service backlogs (R'000)
Details	Budget	Adjustment Budget	Actual	Variance	Major conditions applied by donor (continue below if necessary)
Budget	Adjustment Budget
Infrastructure - Road transport	MIG only to be spent on eradicating backlogs
Roads, Pavements & Bridges	65 193	96 697	72 147	(6 954 )	24 550
Community Halls	0	9 257	8 474	(8 474)	783
Infrastructure - Other
Sports Grounds	673	35 214	18 662	(17 989)	16 552
Total	65 866	141 168	99 283	(33 417)	41 885

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

In the environment that Greater Tzaneen Municipality is operating, cash flow management is important to ensure that funds are available, when needed to pay for services and to ensure that all money, owed to the Municipality, are recovered. It also provides information with regard to access fund which are invested to increase Council’s revenue through interest.

5.10	CASH FLOW

Table 150: Cash Flow Outcomes (R'000)
Description	2015/16	2016/17
Audited Outcome	Original Budget	Adjusted Budget	Actual
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Ratepayers and other	561 787	557 773	557 773	577 998
Government - operating	337 295	324 390	324 390	320 673
Government - capital	91 631	92 307	157 307	157 307
Interest	6 850	10 501	10 501	8 253
Dividends
Payments
Suppliers and employees	(773 164)	(814 597)	(814 597)	(784 082)
Finance charges	(10 705)	(14 876)	(14 876)	(12 359)
Transfers and Grants	(130 746)	(35 673)	(35 673)	(123 609)
NET CASH FROM/(USED) OPERATING ACTIVITIES	82 948	119 824	184 824	144 181
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE	2 006	2 006	185
Decrease (Increase) in non-current debtors
Decrease (increase) other non-current receivables
Decrease (increase) in non-current investments	(14 044)	(6 920)	(6 920)	(4 997)
Decrease (increase) in Financial Assets
Payments
Capital assets	(88 987)	(133 688)	(220 782)	(130 521)
NET CASH FROM/(USED) INVESTING ACTIVITIES	(103 031)	(138 602)	(225 696)	(135 333)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans
Borrowing long term/refinancing	20 000	20 000
Increase (decrease) in consumer deposits	3 000	3 000
Payments
Repayment of borrowing	46 953	(14 879)	(14 879)	(31 378)
NET CASH FROM/(USED) FINANCING ACTIVITIES	46 953	8 121	8 121	(31 378)
NET INCREASE/ (DECREASE) IN CASH HELD	26 392	(10 657)	(32 750)	(22 530)
Cash/cash equivalents at the year begin:	27 977	23 000	55 477	54 369
Cash/cash equivalents at the yearend:	54 369	12 343	22 727	31 839

It is evident from Table 155 above that Councils' cash flow status has deteriorated from R54, 369 at the beginning of the year under review to R31, 839 at the end of the year. Although a decrease of R 22,530 in the cash position of council is registered, financial management is essential since this amount should be viewed in the light of the fact that R19 million grant funds received were not spent, compared to the amount of R60 million grant funding not spent the previous financial year.

5.11	BORROWING AND INVESTMENTS

Section 18 of the MFMA determines, inter alia, that a Municipality may make use of borrowed funds, but only to finance capital expenditure. External borrowing represent capital funding. It must, however, be emphasised that although external borrowing represents capital funding, it has a negative effect on the operational budget in the form of interest and depreciation. The result of this is less funds available for maintenance and general administration costs. The current outstanding external loans of Greater Tzaneen Municipality amounts to R119,5 million. This amount includes R45 million loan stock and R74, 5 million annuity loans.

Investments

Adequate provision has been made by way of external investments to ensure that cash is available on the maturity date, to repay a loan of R15 Million and R30 Million which has been borrowed from DBSA and Standard Bank respectively. Investment income on the other hand is utilised to fund the operational budget. Details of the investments of Greater Tzaneen Municipality are disclosed in the Annual Financial Statements, note 4 to the annual financial statements. The valuation of unlisted investments are as follows:

Liberty	R 9 635 115

Standard Bank	R 15 539 163

Excelsior 1000 Investment

An annual investment of R855 619 has been made with Liberty to repay a loan of R15 million on maturity date. The loan bears interest on variable rate and the value of the investment amounts to R 9 635 115. The investment has been ceded to Liberty as security to repay the loan on 30 September 2019.

Loan stock: Standard Bank

An investment of R11 350 000 has been made with Standard Bank to repay a loan of R 30 Million on maturity date. The loan bears interest at a rate of 12.09% per annum and the value of the investment amounts to R 15 539 163. The investment has been ceded to standard Bank as security to repay the loan on 16 October 2025.

Table 151: Actual Borrowings 2011/12-2016/17 (R'000)
Instrument	2011/2012	2012/13	2013/14	2014/15	2015/16	2016/17
Municipality
Long-Term Loans (annuity/reducing balance)	125 304	115 470	104 646	92 631	110 491	74 493
Long-Term Loans (non-annuity)	11 600	-
Local registered stock	15 000	15 000	15 000	15 000	45 000	45 000
Instalment Credit
Financial Leases	3 935
PPP liabilities
Finance Granted By Cap Equipment Supplier
Marketable Bonds
Non-Marketable Bonds
Bankers Acceptances
Financial derivatives
Other Securities
Municipality Total	155 839	130 470	119 646	107 631	155 491	119 493

Loans were taken up only to finance capital expenditure as presented in Table156 above. To ensure that all loans will be repaid on maturity date, investments have been made in the form of sinking fund which will be withdrawn on the maturity date to repay the loan.

Table 152: Municipal Investments (R'000)
Investment* type	Actual
Dec-11	2012/13	2013/14	2014/15	2015/16	2016/17
Municipality
Securities - National Government	-
Listed Corporate Bonds	-
Deposits - Bank	23 677	4 953	6 646	7 557	20 940	25 174
Deposits - Public Investment Commissioners	-	-	-
Deposits - Corporation for Public Deposits	-	-	-
Bankers Acceptance Certificates	-	-	-
Negotiable Certificates of Deposit - Banks	-	-	-
Guaranteed Endowment Policies (sinking)	-	-	-
Repurchase Agreements - Banks	-	-	-
Municipal Bonds	-	-	-
Other	-	-	-
Municipality sub-total	23 677	4 953	6 646	7 557	20 940	25 174
Consolidated total:	23 677	4 953	6 646	7 557	20 940	25 174

It is evident from Table 157 above that investment increased from R20.9 Million to R25.1 Million in the 2016/2017 financial year. The increase is inter alia a result of annual investments made to repay loans. The investments are summarized as follows

Liberty: An amount of R855 619 is invested with Liberty on an annual basis to repay a loan of R15 Million on maturity loan. The loan (stock) has been taken up with DBSA and will be redeemed on 30 September 2019.

Standard Bank: The municipality also made an investment of R11 350 000 on 13 October 2015 with Standard bank to repay a loan (stock) of R30 million on the 16th of October 2025.

5.12	PUBLIC PRIVATE PARTNERSHIPS

For the financial year concerned no PPP’s have been entered into.

COMPONENT D: OTHER FINANCIAL MATTERS

5.13	SUPPLY CHAIN MANAGEMENT

The Supply Chain policy was reviewed and further amendments were made in April for CSD and point scoring system. Councillors are not members of any committee handling Supply Chain processes. No remarks made in the previous Auditor-General’s report concerning the quality of Supply Chain Management. All 4 Supply Chain officials have reached the prescribed levels required for their positions.

5.14	GRAP & MSCOA COMPLIANCE

GRAP is the acronym for Generally Recognized Accounting Practice and it provides the rules by which municipalities are required to maintain their financial accounts. Successful GRAP compliance will ensure that municipal accounts are comparable and more informative for the Municipality. It will also ensure that the Municipality is more accountable to its citizens and other stakeholders. GTM has changed from fund accounting to GAMAP during the 2003/2004 financial year and since then gradually changed over to GRAP as approved by Accounting Standard Board. Currently GTM is fully GRAP compliant and there is no deviation from GRAP standard.

5.15	Debt OWED BY COUNCILLORS AND officials

The table below presents the arrears owed to Council by Councillors and officials:

Table 153: Arrears owed to the municipality by Councillors and Officials 2016/17
Name	Position	30 Days +	60 Days +	90 Days +
Councillors
None
Senior officials
None

Accounts in the name of Councillors and other employees of the Municipality are deducted from salaries every month, preventing any arrears to accumulate.

CHAPTER 6 – AUDITOR GENERAL AUDIT FINDINGS

Section 131 of the Municipal Finance Management Act no.56 of 2002 determines the following:

“A Municipality must address any issue raised by the Auditor General in an audit report. The Mayor of a Municipality must ensure compliance by the Municipality with this sub-section.”

COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2015/16 & 2016/17

6.1 AUDITOR GENERAL REPORTS 2015/16

Greater Tzaneen Municipality submitted its Annual Financial Statements to the Auditor General on 31 August 2016. Council received an unqualified Audit Opinion for the 2015/2016 financial year and the progress with correcting the findings of the Auditor General for 2015/16 is presented in Table 154 below:

Table 154: Auditor-General Report on Financial Performance 2015/16
Audit Report Status*:UNQUALIFIED
Non-Compliance Issues	Remedial Action Taken
Strategic planning and performance management Financial statements, performance and annual reports Procurement and contract management Expenditure management Consequence management Asset management	Audit action plan was drafted and implementation monitored through the Audit Steering Committee.

Table 155: Auditor-General Report on Service Delivery Performance 2015/16
Audit Report Status*: None expressed
Non-Compliance Issues	Remedial Action Taken
Reported targets not consistent with planned targets	16/17 IDP & SDBIP were not adjusted and the AG raised the issue again
Reported information are not reliable when compared with the evidence provided	Finding remained for 2016/17 since accurate evidence was not available for all reported information
Performance targets not specific, measurable and indicators not well defined	IDP & SDBIP were not adjusted as planned the matter remains a problem
Performance Management System and related controls are not adequate	Standard Operating Procedures were developed. PMS Framework was revised

COMPONENT B: AUDITOR-GENERAL OPINION 2016/17

6.2 AUDITOR GENERAL REPORT 2016/17

Greater Tzaneen Municipality submitted its Annual Financial Statements to the Auditor General on 31 August 2017. The municipality received an unqualified Audit Opinion for the 2016/2017 financial year. The progress with correcting the findings of the Auditor General for 2016/17 is presented in Table 156 below:

Table 156: Auditor-General Report on Financial Performance 2016/17
Audit Report Status*: Unqualified
Non-Compliance Issues	Remedial Action to be taken
Annual financial statements, performance and annual reports Material misstatements of non-current assets identified by the auditors in the submitted financial statement were subsequently corrected	Audit action plan will be drafted to address the non-compliance matters. For approval by Council by end January 2018.
Procurement and contract management Some of the goods and services of a transaction value above R200 000 were procured without inviting competitive bids, as required by Supply chain management regulations (SCM regulation) 19(a). Deviations were approved by the accounting officer even though it was not impractical to invite competitive bids. Awards were made to providers who are in the service of other state institutions or whose directors were in the service of other state institutions
Expenditure management Effective steps were not taken to prevent irregular expenditure amounting to R 26 024 000, as required by section 62(1)(d) of the MFMA. Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R 6 060 000, as required by section 62(1)(d) of the MFMA. Reasonable steps were not taken to prevent unauthorised expenditure to the amount of R 32 399 991, as prescribed by section 62(1) (d) of the MFMA
Consequence management Losses resulting from unauthorised, Irregular as well as fruitless expenditure were not recovered from the liable person, as required by section 32(2) of the MFMA
Asset management An effective system of internal control for assets was not in place, as required by section 96(2)(b) of the MFMA
Liability management An effective system of internal control for liabilities including a liability register was not in place as required by section 63(2)( c) of the MFMA
Revenue management An adequate management, accounting and information system which accounts for revenue was not in place, as required by section 64(2)(e) of the MFMA

Table 157: Auditor-General Report on Service Delivery Performance 2016/17
Audit Report Status*: No opinion expressed
Non-Compliance Issues	Remedial Action to be Taken
Indicators not clearly defined (method of calculation not clear)	Audit Action Plan will be drafted to address the matters, for approval by Council by end January 2018.
Inadequate record keeping to support claimed performance
Inaccurate reporting
Indicator Target not specific (project names)
PMS controls inadequate and performance monitoring is not taking place

Section 71 of the MFMA (Act 56 of 2003) requires municipalities to return a series of financial performance data to the National Treasury at specified intervals throughout the year. The Chief Financial Officer states that these data sets have been returned by GTM according to the reporting requirements, with the exception of C6 to C7 (refer to Addendum P).

GLOSSARY

Accessibility indicators	Explore whether the intended beneficiaries are able to access services or outputs.
Accountability documents	Documents used by executive authorities to give “full and regular” reports on the matters under their control to Parliament and provincial legislatures as prescribed by the Constitution. This includes plans, budgets, in-year and Annual Reports.
Activities	The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes. In essence, activities describe "what we do".
Adequacy indicators	The quantity of input or output relative to the need or demand.
Annual Report	A report to be prepared and submitted annually based on the regulations set out in Section 121 of the Municipal Finance Management Act. Such a report must include annual financial statements as submitted to and approved by the Auditor-General.
Approved Budget	The annual budget of a Municipality as audited by the Auditor General and approved by Council or a provincial or national executive.
Baseline	Current level of performance that a Municipality aims to improve when setting performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period.
Basic municipal service	A municipal service that is necessary to ensure an acceptable and reasonable quality of life to citizens within that particular area. If not provided it may endanger the public health and safety or the environment.
Budget year	The financial year for which an annual budget is to be approved – means a year ending on 30 June.
Cost indicators	The overall cost or expenditure of producing a specified quantity of outputs.
Distribution indicators	The distribution of capacity to deliver services.
Financial Statements	Includes at least a statement of financial position, statement of financial performance, cash-flow statement, notes to these statements and any other statements that may be prescribed.
General Key performance indicators	After consultation with MECs for local government, the Minister may prescribe general key performance indicators that are appropriate and applicable to local government generally.
Impact	The results of achieving specific outcomes, such as reducing poverty and creating jobs.
Inputs	All the resources that contribute to the production and delivery of outputs. Inputs are "what we use to do the work". They include finances, personnel, equipment and buildings.
Integrated Development Plan (IDP)	Set out municipal goals and development plans.
National Key performance areas	Service delivery & infrastructure Economic development Municipal transformation and institutional development Financial viability and management Good governance and community participation
Outcomes	The medium-term results for specific beneficiaries that are the consequence of achieving specific outputs. Outcomes should relate clearly to an institution's strategic goals and objectives set out in its plans. Outcomes are "what we wish to achieve".
Outputs	The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver". An output is a concrete achievement (i.e. a product such as a passport, an action such as a presentation or immunization, or a service such as processing an application) that contributes to the achievement of a Key Result Area.
Performance Indicator	Indicators should be specified to measure performance in relation to input, activities, outputs, outcomes and impacts. An indicator is a type of information used to gauge the extent to which an output has been achieved (policy developed, presentation delivered, service rendered)
Performance Information	Generic term for non-financial information about municipal services and activities. Can also be used interchangeably with performance measure.
Performance Standards:	The minimum acceptable level of performance or the level of performance that is generally accepted. Standards are informed by legislative requirements and service-level agreements. Performance standards are mutually agreed criteria to describe how well work must be done in terms of quantity and/or quality and timeliness, to clarify the outputs and related activities of a job by describing what the required result should be. In this EPMDS performance standards are divided into indicators and the time factor.
Performance Targets:	The level of performance that municipalities and its employees strive to achieve. Performance Targets relate to current baselines and express a specific level of performance that a Municipality aims to achieve within a given time period.
Service Delivery Budget Implementation Plan	Detailed plan approved by the Mayor for implementing the Municipality’s delivery of services; including projections of the revenue collected and operational and capital expenditure by vote for each month. Service delivery targets and performance indicators must also be included.
Vote:	One of the main segments into which a budget of a Municipality is divided for appropriation of money for the different departments or functional areas of the Municipality. The Vote specifies the total amount that is appropriated for the purpose of a specific department or functional area.

ADDENDUMS

ADDENDUM A – COUNCILLORS; COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE

Table 158: Councillors, Committees Allocated And Council Attendance (2016/17)
Council Members	Full Time / Part Time (Ft/Pt)	Committees Allocated	*Ward And/ Or Party Represented	Percentage Council Meetings Attendance	Percentage Apologies For Non-Attendance
Cllr MG Kgatla	Pt	Council, Corporate Governance, Economic Development	Pr/ ANC	100	0
Cllr LK Lepulana	Pt	Council, Health & Social	Ward 28 And ANC	100	0
Cllr MJ Maake	Pt	Council, Public Transport, Safety & Security, Infrastructure	PR/ ANC	100	0
Cllr MH Mafokwane	Pt	Council, MPAC	Ward 2 And ANC	64.29	35.71
Cllr NM Mahasha	Pt	Council, Chair Of Chairs, Special Programme	PR/ANC	92.86	7.14
Cllr JT Makhubele	Pt	Council, Health & Social & Sports	Ward 17 And ANC	92.86	7.14
Cllr GP Makhubele	Pt	Council,	Ward 27 And ANC	92.86	7.14
Cllr MM Makwala	Pt	Council, Sports	PR And ANC	78.57	21.43
Cllr SC Makwala	Pt	Council, Public Transport, Safety & Security	Ward 22 And ANC	100	0
Cllr MA Makwela	Pt	Council, Programming, Rules & Ethics	PR/ Cope	57.14	42.86
Cllr MM Makwela	Pt	Council, Budget & Treasury	Ward 9 And ANC	92.86	7.14
Cllr TE Malatji	Pt	Council, Infrastructure	Ward 26 And ANC	78.57	21.43
Cllr GM Malatji	Pt	Council, Health & Social, Budget & Treasury	Ward 23 And ANC	92.86	7.14
Cllr D Malemela	Pt	Council, MPAC	PR/ EFF	64.29	35.71
Cllr SM Mapitja	Pt	Council, Public Transport, Safety & Security, Infrastructure	Ward 4 And ANC	92.86	7.14
Cllr SP Masetla	Pt	Council, Corporate Governance	Ward 3 And ANC	64.29	35.71
Cllr NA Masila	Pt	Council, Budget And Treasury	Ward 35 And ANC	92.86	7.14
Cllr NP Mathebula	Pt	Council, Infrastructure	PR/ANC	78.57	21.43
Cllr MM Mathekga	Pt	Council, Economic Development, Special Programme	Ward 8 And ANC	85.71	14.29
Cllr TL Matita	Pt	Council, Sports	Ward 7 And ANC	71.43	28.57
Cllr NG Maunatlala	Pt	Council, MPAC	Ward 1 And ANC	85.71	14.29
Cllr MF Mbhalati	Pt	Council, Special Programme	PR/ ANC	85.71	14.29
Cllr TJ McClintock	Pt	Council, Budget & Treasury	PR/ Da	92.86	7.14
Cllr DG Mkhabele	Pt	Council, MPAC	PR/ ANC	64.29	35.71
Cllr MF Mochabela	Pt	Council, Corporate Governance	PR/ EFF	85.71	14.29
Cllr F Mohlaba	Pt	Council, Public Transport, Safety & Security And Economic Development	PR/ DA	100	0
Cllr SN Mohonone	Pt	Council, MPAC	PR/ DA	85.71	14.29
Cllr MJ Mokgoloboto	Pt	Council, MPAC	PR/ ANC	85.71	14.29
Cllr MC Morwatshehla	Pt	Council, Public Transport, Safety & Security, Budget & Treasury	PR/ ANC	92.86	7.14
Cllr T Mpenyana	Pt	Council, Corporate Governance	Ward 21 And ANC	100	0
Cllr NG Mukansi	Pt	Council, Health & Social	Ward 18 And ANC	64.29	35.71
Cllr TH Mushwana	Pt	Council, MPAC	Ward 24 And ANC	64.29	35.71
Cllr ET Ngobeni	Pt	Council, MPAC	Ward 13 And ANC	85.71	14.29
Cllr SE Ngobeni	Pt	Council,	Ward 6 And ANC	78.57	21.43
Cllr JL Ngobeni	Pt	Council, Corporate Governance	Ward 5 And ANC	100	0
Cllr MC Nkhwashu	Pt	Council, Infrastructure, Budget & Treasury, Special Programme	PR/ ANC	71.43	28.57
Cllr N Nkhwashu	Pt	Council, Public Transport, Safety & Security, Rules And Ethics, Programming	PR/ ANC	71.43	28.57
Cllr ME Phakula	Pt	Council, Budget & Treasury	Ward 29 And ANC	78.57	21.43
Cllr RE Pohl	Pt	Council, Corporate Governance, Programming, Rules And Ethics	PR / DA	78.57	21.43
Cllr ML Pudikabekwa	Pt	Council, Economic Development	PR/ ANC	92.86	7.14
Cllr MS Rakganya	Pt	Council, Infrastructure	Ward 33 And ANC	85.71	14.29
Cllr PJ Ramodipa	Pt	Council, Rules And Ethics, Sports	Ward 31 And ANC	71.43	28.57
Cllr SB Ramoshaba	Pt	Council, Corporate Governance	PR/ ANC	64.29	35.71
Cllr KI Rapatsa	Pt	Council, MPAC	PR / ANC	78.57	21.43
Cllr RS Rapitsi	Pt	Council, Public Transport, Safety & Security, Infrastructure, Special Programme	Ward 30 And ANC	92.86	7.14
Cllr O Raolane	Pt	Council, Special Programme	PR/ EFF	71.43	28.57
Cllr JM Ratopola	Pt	Council, Health & Social	PR /EFF	100	0
Cllr NR Rikhotso	Pt	Council, Public Transport, Safety & Security, Economic Development	PR/EFF	92.86	7.14
Cllr CT Shisinga	Pt	Council, Programming, Rules & Ethics & Sports	PR/EFF	78.57	21.43
Cllr O Sithole	Pt	Council, Infrastructure	PR/EFF	71.43	28.57
Cllr NH Zandamela	Pt	Council, Infrastructure	Ward 19/ANC	78.57	21.43

ADDENDUM B – COMMITTEES AND COMMITTEE PURPOSES

Table 159: Committees (other than Mayoral / Executive Committee) and Purposes of Committees
Municipal Committees	Purpose of Committee	Name of Councillor	Percentage of meetings attended
Finance Committee	To discuss matters concerning the Revenue and Debt Management, Procurement and Stock Management, Expenditure, Budgets and Budgetary Control, Accounting, Finance, Financial Administration, Insurance and Housing Finance and any other matter related to finance thereto.	Maunatlala TT	100%
Masila NA	88.88%
Makwela MM	88.88%
Phakula E	0%
Morwatshehla C	100%
Malatji G	22.22%
Kgafane F	77.77%
Baloyi S	100%
Nkhwashu MC	44.44%
McClintock T	77.77%
Infrastructure Committee	To discuss matters related to Electricity and Energy including network operations, distribution, sales and customer services.	Ntimbana EG	63.63%
Nkhwashu MC	81.81%
Malatji E	63.63%
Rapitsi R	90.90%
Rakganya S	72.72%
Mapitsa MM	45.45%
Maake J	63.63%
Mathebula N	81.81%
Sithole O	81.81%
Prinsloo M	72.72%
Zandamela NH	40%
Economic Development, Housing and Spatial Development Plan	To discuss matters related to SMME, empowerment support and job creation, the support and regulation of informal trading, sector support, investment and export, trade promotion and facilitation, the facilitation of partnerships between the Council and public, private and community groups, economic co-ordination and facilitation, business area management and community skills development and Tourism. The housing and informal settlement, the spatial planning and growth management, design services, land use management, building development management, development projects, land information and planning legislation and enforcement.	Tiba MS	83.33%
Pudikabekwa L	75%
Kgatla M	83.33%
Mathekga M	58.33%
Rikhotso R	58.33%
Sekhwela M	58.33%
Mohlaba F	83.33%
Banyini J	33.33%
Corporate Governance & Shared Services	To discuss matters related to Human Resource Administration, Labour Relations, Recruitment and Selection, Training and Development, Occupational Health and Safety, Employment Equity, Skills Development, Grading and Remuneration, Performance management and Transformation. The General Administration. Auxiliary Services, Committee Secretariat, Councillor Support, Printing and Graphic Services. The Internal Communication, Public Participation and Information Technology matters.	Mbhalati NS	83.33%
Banyini O	41.66%
Ngobeni J	83.33%
Ramoshaba B	41.66%
Masetla P	58.33%
Mpenyana T	83.33%
Mochabela F	83.33%
Kgatla M	83.33%
Kgatla R	75%
Pohl R	83.33%
Public Transport & Roads	To discuss on Transportation planning, systems monitoring and information management, Traffic infrastructure management, public transport, passenger security. Traffic signs and robot maintenance. Decide on the permanent closure of all streets and roads.	Machimana C	87.5%
Makwala SC	81.25%
Nkhwashu N	43.75%
Mohlaba F	87.50%
Rapitsi R	93.75%
Mapitja MM	81.25%
Rikhotso NR	75%
Maake J	81.25%
Morwatshehla M	57.14%
Sports Recreation, Arts & Culture	To discuss matters concerning sports and recreation, arts and culture.	Letsoalo MM	90%
Makwala MM	90%
Cronje P	60%
Matita L	40%
Shisinga C	60%
Makhubele J	80%
Ramodipa PJ	70%
Health & Social Development	To discuss matters concerning the Libraries, the Community facilities, cemeteries and crematoria, health services, refuse removal; refuse disposal, illegal dumping and street cleansing.	Hlangwane ML	85.71%
Malatji G	71.42%
Mkansi N	42.85%
Baloyi S	85.71%
Makhubele TJ	0%
Lepulana K	28.57%
Ratopola J	100%
Cronje P	71.42%
Special Programmes	To discuss matters related to youth, elderly, gender and disabilities including HIV/AIDS programmes.	Machimana C	100%
Mbhalati MF	100%
Mahasha NM	33.33%
Nkhwashu MC	33.33%
Mathekga M	0%
Raolane O	33.33%
Rapitsi R	66.66%
Prinsloo M	33.33%
Kgatla MR	66.66%
Municipal Public Account Committee	To consider and evaluate the annual report, to examine the financial statements and audit reports, to promote good governance, transparency and accountability on the municipal resources, to undertake any investigation in its area of responsibility and to perform any other function assigned to it through a resolution of Council within its area of responsibility.	Derick Mkhabela	93%
Thomas Mushwana	86%
Ngwako Maunatlala	93%
Malesela Mafokwane	86%
Josephine Mokgoloboto	100%
Irene Rapatsa	79%
Ngwako Mohonone	93%
Dumisani Malemela	71%
Edward Ngobeni	93%
Rules & Ethics Committee	To enforce Council’s Rules of Order and the Code of Conduct for Councillors in terms of Schedule 1 of the Municipal Systems Act	Ramodipa PJ	70%
Nhemo SC	68%
Maunatlala TT	50%
Mahasha NM	80%
Pohl R	68%
Shising C	80%
Makwela A	16.66%
Nkhwashu N	66.66%
Programming Committee	Responsible for considering and routing items/motions to Council Committees for oversight purposes and ultimately to Council. Agreeing on the allocation of speaking time for the items and motions contained in the Council Agenda.	Mmetle DJ	90.90%
Maunatlala TT	90.90%
Nhemo CS	63.63%
Shisinga C	63.63%
Pohl R	54.54%
Mahasha NM	90.90%
Makwela A	33.33%
Nkhwashu N	33.33%

ADDENDUM C –THIRD TIER ADMINISTRATIVE STRUCTURE

Table 160: Third Tier Administrative Structure (2016/17)
Directorate	Director/Manager (State title and name)
Office of the Mayor	Manager (Office of the Mayor) Ms SN Ngobeni
Office of the Municipal Manager	Manager (Internal Audit) Ms HS Manyike
Senior Officer (Disaster Management) Mr MM Rabothata
Manager (Strategic Support) Vacant
Manager (Risk Management) Mrs. MM Mpyana
Corporate Services	Manager (Human Resources) Mrs. NMH Maake
Manager (Adm. Support & Records Management) Mrs MW Baloyi
Manager (Legal Services) Adv. MS Monyela
Manager (IT) Mr. TG Maluleke
Manager (Community Participation and Project Support) ) Mr. F Malale
Manager (Communications) Vacant
Planning and Economic Development	Manager (Social Economic Dev) Mr. DF Rammalo
Manager (Land & Housing) Mr. NH Phakula
Manager (Town Planning) Mr. NJ Mathye
Office of Chief Financial Officer	Manager (Supply Chain) Mr. NL Mashao
Manager (Finance) Mr. J. Biewenga
Manager (Asset Management) Mr. TA Ramokgano
Manager (Income) Mrs. PM Viljoen
Manager (Expenditure) Mrs. ME Sono
Electrical Engineering Services	Manager (Stores and Fleet Management) Mr A le Grange
Manager (Operations and Maintenance) Mr. AG Laubscher
Manager (Operations and Maintenance) Vacant
Snr Electrical Engineering Technician Mr. NG Fourie
Engineering Services	Manager (Protection, Testing and Metering) New Post
Manager (Building Maintenance and Fleet) Mr. ML Mahayi
Manager (Water & Sanitation) Vacant
Manager (Roads and Storm Water) Mrs. H.O. Tshisevhe
Community Services	Manager (PMU) Mr. MJ Matlala
Manager (Solid Waste) Mr. HL Mienie
Manager (Library Services) Mrs. CJ Nel
Manager (Environmental Health) Mrs. TM Machumele
Manager (Licensing and Testing) Mr. CAJ Liversage
Manager (Law Enforcement) Mr. MJ Malatji

ADDENDUM D – FUNCTIONS OF MUNICIPALITY / ENTITY

Table 161: Municipal Functions
MUNICIPAL FUNCTIONS	Function Applicable to Municipality (Yes / No)*	Function Applicable to Entity (Yes / No)
Constitution Schedule 4, Part B functions:
Air pollution	Yes	No
Building regulations	Yes	No
Child care facilities	No	No
Electricity and gas reticulation	Yes	No
Firefighting services	No	No
Local tourism	Yes	No
Municipal airports	Yes	No
Municipal planning	Yes	No
Municipal health services	No	No
Municipal public transport	No	No
Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law	Yes	No
Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto	No	No
Stormwater management systems in built-up areas	Yes	No
Trading regulations	Yes	No
Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems	Yes	No
Beaches and amusement facilities	Yes	No
Billboards and the display of advertisements in public places	Yes	No
Cemeteries, funeral parlours and crematoria	Yes	No
Cleansing	Yes	No
Control of public nuisances	Yes	No
Control of undertakings that sell liquor to the public	Yes	No
Facilities for the accommodation, care and burial of animals	No	No
Fencing and fences	No	No
Licensing of dogs	Yes	No
Licensing and control of undertakings that sell food to the public	Yes	No
Local amenities	Yes	No
Local sport facilities	Yes	No
Markets	No	No
Municipal abattoirs	No	No
Municipal parks and recreation	Yes	No
Municipal roads	Yes	No
Noise pollution	Yes	No
Pounds	Yes	No
Public places	Yes	No
Refuse removal, refuse dumps and solid waste disposal	Yes	No
Street trading	Yes	No
Street lighting	Yes	No
Traffic and parking	Yes	No

ADDENDUM E – WARD REPORTING

Table 162: Functionality of Ward Committees (2016/17)
Ward	Name of Ward Councillor & Elected Committee members	Committee established (y/n)	Number of monthly meetings	Number of Monthly reports submitted to Speakers office	Number of quarterly public ward meetings held
1	Ngwako Maunatlala (wcllr) Ward committee 1. Cedrick Kgobane 2. Mohlatlego Kgatla 3. Pikisile Manyama 4. Thabang Mogale 5.Amos Mkansi 6. Meriam Selowa 7. Hellen Mashao 8. Jeaneth Senyolo 9. Ramonyathi Modjadji 10., Molele Justice	Yes	07	07	03
2	Malesela Mafokwane (wcllr) Ward committee Sontaga Reuben Sebashe Dipuo Phaladi Marcia Xalati Mhlongo Matshidiso Agnes Mohale Thembi Lucia Rikhotso Refilwe Reginah Manyama Thupedi David Shai Nkhashaka Tompson Shikhwapane Sarah Thakho Isaac Saki Mohale	Yes	07	07	03
3	Pessyna Masetla (wcllr) Ward committee Richard Thomas Mongwe Phetole Velly Machaba Mpheri Rakgwale Mmatlala Patricia Machete Michael Magezi Masinge Nwahloma Evelyn Khosa Mhanani Fridah Nkuna Rejoyce Mokgadi Rampedi Modibe Wiseman Sekgule Dikeledi sehlwane	Yes	07	07	03
4	Mavis MMapitja (wcllr) Ward committee Jabulani Vincent Shiburi Mmabsalwa Tiny Manyemula Pontsho Jane Mokgwathi Sesana Violet Mpenyana Thulani Mapfumari Matsie Victoria Mahasha George Mokgwakgwa Molokwane Weldar Pronkie Mongwe Nwajajani Winny Bvuma Regina Sewape	Yes	07	07	03
5	Jele Ngobeni (wcllr) Ward committee Derrick Tonny Ngobeng Nurse Tinyiko Mabunda Honisi Kenett Mamitwa Boy Wilson Zitha Jopi Daisy Malubana Gloria Nukeri Gezani Hansie Usiba Melta Katekani Mathebula Tennyson Ngobeni Lucy Makumbila	Yes	07	07	03
6	Emma Ngobeni (wcllr) Ward committee Ntwanano Khosa Mfundhisi James Ngobeni Joyce Ramawila Sonia Mhlongo Ntsikiwane Victor Ngobene Gwevani Jonas Mathebula Masenyani George Makhubela Mkhensani Christinah ManyikI Masangu Maggie Mathebula Mavis Mnisi	Yes	07	07	03
7	LEON MATITA (wcllr) Ward committee 1. Justice Malatji 2. Mamaila Ratlabala 3. Christina Mametja 4. Semosa Edward 5. Lesego Malatji 6. Rose Sekhula 7. Eddy Makgobatlou 8. Benjamin Mokwena 9.Mailula Cecilia 10. Ramalepe Mapula	Yes	07	07	03
8	MOKGADI MATHEKGA (wcllr) Ward committee 1. MV Leshoka 2. Grace Sekgobela 3. Evans Lebea 4. Chaos Makgobatlou (deceased) 5.Makoma Selowa 6. Ngwako Sebetola 7. Ngwako Mopai 8. Richard Malatji 9. Josephina Raolane 10.Kate Makgoakgoa	Yes	07	07	03
9	MARTHA MOHALE (wcllr) Ward committee 1.Meshack Rabotha 2. Ignatius Masedi 3. Lawrence MOkgwathi 4. Mohale Samuel 5. Pinky Mamokhere 6. Forence Maenetja 7. Edna Rapelwana 8.Sophy Lepebe 9. Johanna Maenetja 10. Freddy Pilusa	Yes	07	07	03
10	SARA BALOYI (wcllr) Ward committee 1. Sello Maake`` 2 .Agnes Mokhabukhi 3 .Mosebudi Machaba 4. Aaron Monyela 5 .Dikeledi Maake 6 .Moshe Sebopetsa 8 .Mokgadi Mabulana 9. Moses Maake 10. Malabela Petunia	Yes	07	07	03
11	LYDIA HLANGWANI (wcllr) Ward committee 1.P Ramoshaba 2.Matome Machethe 3. E Malatji 4. S Nkuna 5. M B Sathekge (deceased) 6. E Baloyi 7. Themba Baloyi 8. S Mashayi 9. H Peta 10. Mathews Malatji	Yes	07	07	03
12	Edney Ntimbane (wcllr) Ward committee Stoney Maluleke Agnes Sevengwana Tivana Rivalani Christinah Mathebula Thelani Jameson Mathonsi Grace Tintswalo Sambo Annah Agreeneth Chauke Edwin John Mongwe Patience Tsakani Ngomane Gezani Joseph Nwamitwa Rinehilwe Kwetsima Sithole	Yes	07	07	0
13	Edward Ngobeni (wcllr) Ward committee Elizabeth Nwamabundz Mthombeni Denderemuka Daniel Rikhotso Alfred Maringa Rhulani Casswell Baloyi Thomas Baloyi Esther Fanisa Mayimele Clara Biswick Tlangelani Mboweni Rapson Nkuna Monica Manthonsi (resigned November)	Yes	07	07	03
14	Pierre Cronje (wcllr) Ward committee Constance Sally Shingange Matome Strike Motloutsi Malephoto Gloria Mabapa Mapule Lydia Maenetje Maite Sylvia Mashao Mohale Peter Ramoshaba Letheba Raolane Mantsi Malebate Matome Silas Phoshoko Skokie Michael Makgoba	Yes	07	07	0
15	Marthinus Prinsloo (wcllr) Ward committee David Ramatsoma Paul Zeenyman Isac Mohale Marius Jacobs Pertunia Manti Sebela Jan Mashele Kholofelo Shai Oupa Nathaniel Sedibe Godfrey Ndlovu Thereza Majozi	Yes	07	07	0
16	Roniel Rikhotso (wcllr) Ward committee 1. Suzan Ramoreti 2. Doreen Shilembe 3. Phineas Mocheki 4. Densile Mhlarhi 5. Yvonne Tshelane 6. Petrus Thobejane 7. Stemere Makwela 8. Emely Sathekge 9. Irene Mboweni 10.Mmutle Mogoboya	Yes	07	07	03
17	Tsakani Makhubele (wcllr) Ward committee Sipho Mhlongo Nyiko Mickin Mkhabele Jan Justice Sekhobela Tintswalo Lizzy Sambo Thelma Sesma Mushwana Thanyani Norman Munyai Samaria Precious Mkhabela Hilda Masesi Ngobeni	Yes	07	07	03
18	Norman Mukansi (wcllr) Ward committee Leslina Mhlarhi Makaepea Maria Johan Shiluvane Mmathari Anna Raburabu Masilo Peter Mokhalabone Gladys Mushwana Masale Melita Makete Cecilia Mhlari Mihloti Euphelia Ramalepe Mphahlela George Mbhaalati Phakula RP	Yes	07	07	03
19	Homegirl Zandamela (wcllr) Ward committee Tivoni Suzan Chauke Sammy Sello Bulala (resigned) Patience Margareth Tshibeyahobe Benjamin William Pilusa Mokgadi Elsie Moyana Nonhlanhla Benedicto Mathabela Mallale Elizabeth Makwela Iris Mhikane Matcheke Dannis Shingange Wisani Mathoblela	Yes	07	07	03
20	Orgaine Banyini (wcllr) Ward committee Aubrey Modiba Wisani Tracy Phiri Thabo Maluleke Khanyisa Victoria Chuma Andries Matume Makhubele Masesana Nomsa Nhlangwini Zaria Makana Nkhensani Betty Baloyi Eddie Makasana Nhlangwini Ngobeni Norah	Yes	07	07	03
21	Thandy Mpyenyana (wcllr) Ward committee Mfana Gideon Sambo Tengani Geoffrey Ndhuna Mafemani Livas Shipalana Thabo Manghezi Mhlongo Agnes Mularisi Mnisi Violet Tsakani Mhlongo Mumsy Mihloti Mathye Joy Mpenyama Hellen Mthombeni Sekhwari P	Yes	07	07	03
22	Christopher Makwala (wcllr) Ward committee 1.Edwin Ramalepe 2.Mankwana Letsoalo 3.Michael Rabothata 4.Micheal Maponya 5.Millicent Mopai 6.Princess Shebodze 7.Tsakani Risiba 8.Jim Khunwane 9.Daniel Maenetja 10.Malatji Charles	Yes	07	07	03
23	Given Malatjie (wcllr) Ward committee 1. Norman Monyai 2.Samaria Mkhabele 3. Not Yet Elected 4. Lizzy Sambo 5. Sipho Mhlongo 6. Hildah Ngobeni 7. Not Yet Elected 8. Thelma Mushwana 9. Jan Sekgobela 10.Nyiko Mkhabele	Yes	07	07	03
24	Thomas Mushwana (wcllr) Ward committee Nomsa Ntsako Mathonsi Constance Tinyiko Mlondobozi Linah Mkhari Khomisani George Malungana Percy Cukumetani Mabunda Noel Maakana Marth Malatji Mmoye Ronny Sebele Beaty Alletah Mathye Heti Hilguard Muhlava	Yes	07	07	03
25	Josta Banyini (wcllr) Ward committee Topisa Sylvia Muhlari Tibiya Erick Makhubela Harris Bill Tinyiko Joyce Mongwe Hetisani Alwyn Baloyi Masilo Alfred Ramaano Theo Namloti Mongwe Tiyeni Ngomane Mukhavhana Samuel Shikwambana Berthron Mechabe	Yes	07	07	03
26	Elias Malatji (wcllr) Ward committee 1.Nelly Gana 2.Peter Rikhotso 3.Gilbert Ncha 4.Emelia Malatji 5.Sanneth Mbhalati 6. Ephodia Maila 7.Michael Ramphadi 8.Stephina Rakgoale 9.Constance Shipalana 10.Ishmael Nkhwashu	Yes	07	07	03
27	Gezani Makhubele (wcllr) Ward committee 1.Bethuel Mmola 2.Walter Monyela 3.Ireen Mailula 4.Collen Masete 5.John Seoka 6.Tinny Mpholoane 7.Selina Molewa 8.Rebecca Moropana 9.Phumzile Maatla 10.Maleke Mangena	Yes	07	07	03
28	Klaas Lepulana (wcllr) Ward committee 1.Nkhesani Sithole 2.Alex Mateta 3.Dumisani Shamango 4.Tlangelani Mlangeni 5.Paulina Masia 6.Vincent Moropane 7.Pertunia Makhubela 8.Rulf Mangena 9.Mapula Malatji 10.Professor Nkgapele	Yes	07	07	03
29	Erick Phakula (wcllr) Ward committee 1.Charmaine Myakayaka 2.Albert Ramapuputa 3.Maria Ramoshaba 4.Rose Mahlare 5.Gloria Mboweni 6.Willy Nkhwashu 7.Rejoice Mathonsi 8.Ephraim Maake 9.Peter Hlokwe 10.Sophy Ramatseba	03
30	Ramothibi Rapitsi (wcllr) Ward committee 1.Solly Moagi 2.Prince Hlokwe 3.Sipho Molepo 4.Dimakatso Khunwane 5.Emmah Ralepele 6.Andrew Mahudu 7.Methews Machete 8.Janneth Seokoma 9.Christina Manyama 10.Melita Bopape	Yes	07	07	03
31	Justice Ramodipa (wcllr) Ward committee Maropeng Albert Mogale Soro Alice Rakgoale Sikedi Amission Lefothe Prince Shingweyana Boitumelo Joy Makwela Venia Mangena Phetole Peter Mmola Yoby Jairos Gama Maite Nurse Mmola Makomela R	Yes	07	07	03
32	Rachel Kgatla (wcllr) Ward committee Mpho Violet Kekana Matome Phineas Mokwena Mmasape Joyce Matlou Mmamere Marywell Maenetja Dan Jacob Machimana Percy Brianely Mashabana Puleng Johannes Ramatsoma Jabulani Brian Mashabana Maake S Mlondobozi b	Yes	07	07	03
33	Sophy Raganya (wcllr) Ward committee Masilo Jeffrey Leseilana Thibedi Jeremiah Phalane Mokhenethe Silas Mogoboya Mmamatlhola Dinah Peu Mmabjala Florence Patji Mogotlo Lucky Sekgotlaboraga Marusane Julia Ralepelle Matale Bridgette Maake Moore Winny Seerane Mmamodike Althea Matsebatlela	Yes	07	07	03
34	Margeret Letsoalo (wcllr) Ward committee Cheyeza Ritah Bvuma Mapula Racheal Shoka Shokane Thato Amon Letsoalo Makoma Magdeline Malatji Mapula Linda Letsoalo Mosibudi Ireen Magoro Mmakole Rosina Ragedi Thabe Abel Mogoboya Matsidiso Lucy Moagi	Yes	07	07	03
35	Abram Masila (wcllr) Ward committee 1.Oscar Maenetja 2.Ngwako Ratopola 3.Millicent Mangena 4.Nkabaneng Sebopetja 5.Kagiso Rakomana 6.Mokgadi Bopape 7.Peter Mokoena 8.Kedibone Batji 9.Rachel Maake 10.Maria Moagi	Yes	07	07	03

ADDENDUM F – WARD INFORMATION

Table 163: Capital Projects: Seven Largest in 2016/17 - R' 000
Ward No.	Project Name and detail	Start Date	Estimated/ End Date	Actual Expenditure	Progress by 30 June ‘17
22; 23; 24	Rita to Mariveni Tar road	22/09/15	22/08/18	14 837	Physical construction at 75%
7	Moruji to Matshwi tar road	05/09/16	04/09/18	11 269	Physical progress at 27%
28; 29	Tickyline to Mafarana tar road	08/08/16	18/03/18	46 041	Physical progress at 85%
6	Upgrading of Runnymede Sports facility	14/03/16	30/12/2017	18 662	Physical construction at 75%
26	Julesburg Sports Ground	2017/12/06	2017/01/08	14 837	Physical construction at 45.2%
14; 15; 16; 17; 19; 21; 31	Energy efficiency and demandside management (Tzaneen, Nkowankowa & Lenyenye)	01/07/2016	30/06/2017	7 000 000	Installation and retrofitting of water purification equipment and aircons completed
8	Relela Community Hall	14/04/16	13/10/17	6 068 805	Physical progress at 97%

ADDENDUM G – RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 2016/17

TABLE 164: Municipal Audit Committee Recommendations (2016/17)
Date of Committee	Committee recommendations	Recommendations adopted (enter Yes); not adopted (provide explanation)	Implemented (Yes/No)
04/11/2016	Performance reporting must form part of the critical risks	Y	Y
Adhoc audit hours must be reduced to add more hours to the asset management audit.	Y	Y
SCM must perform service provider evaluation to avoid having service providers not giving the service required and paying them without receiving the service.	Y	N
24/03/2017	Consequence management must be implemented for Directors and Managers not responding on the AC resolution register.	Y	N
Interns must be appointed to assist the Risk and Performance Management units	Y	N
The adjusted SDBIP together with the list of challenges must be submitted to the AC members before end of April	Y	N
There must be tracking of the progress of the recommendations of the performance report. The previous quarter recommendations progress report must be a standing item in AC meetings	Y	Y
Identified emerging risks must be registered every month on the blank risk register.	Y	Y
Risk Management framework must be submitted to Council for approval.	Y	Y
Internal Audit must get the results of the Financial Management Capability Model from Treasury.	Y	Y
AC Chairperson and Internal Audit Manager must engage the CFO’s office to discuss the Expenditure procedure manual.	Y	Y
The Municipality must develop an action plan to address the challenges or findings raised by National Treasury in the Financial Management Capability Model.	Y	N
SCM Manager must submit a separate contract register in the next AC meeting	Y	N
05/07/2017	The Municipality must consider rewarding excellent performance of duties done on time as a way of managing overtime	Y	N
Each Department must submit report on how they manage overtime during AC meetings.	Y	N
MSCOA circulars and King IV report must be submitted to Council for approval	Y	N
Councillors must be trained on the King IV report.	Y	N
Risk Report for GTM and GTEDA must be separated.	Y	Y
The Acting CFO must investigate the debt collectors’ payment report and report back in the next Audit Committee meeting.
A report on the performance of the VAT consultants must be submitted in the next Audit Committee meeting.	Y	N
The MSCOA skills transfer report must be submitted in the next AC meeting	Y	N
A year-end preparation plan with the progress attached to it must be submitted in the next Audit Committee meeting	Y	Y
In the 4th quarter Audit Committee meeting overspending on the budget must be reported.	Y	N
The quarterly financial performance report must show actual amount for the quarter versus budget and variances and then year to date actual versus budget.	Y	N

ADDENDUM H – LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS

Table 165: Long Term Contracts (20 Largest Contracts Entered into 2016/17) - R' 000
Name of Service Provider (Entity or Municipal Department)	Bid number	Description of Services Rendered by the Service Provider	Start Date of Contract	Expiry date of Contract	Project manager	Contract Value	Performance rating for 2016/17
Phinnet Communication	SCMU 01/2015	supply of managed printing services	01 August 2016	31 July 2019	Mr T.G Maluleke	Rates	2
Fedility Cash Solution	SCMU 02/2016	Cash in Transit and banking services	01 August 2016	31 August 2019	Mr K. Makhubele	R665 750.88	4
Selby Construction	SCMU 06/2015: PROJECT 01	Upgrading of Mafarana to Burgersdorp road from gravel to tar	08 August 2016	16 March 2018	Mr M.J Matlala	R59 376 006.75	4
Quality Plant Hire/ Expectra 388 JV	SCMU 02/2015	Moruji to Matswi tar road	05 SEPTEMBER 2016	04 SEPTEMBER 2018	Mr M.J Matlala	R127 904 235	4
Rhino Consulting Engineering	SCMU 29/2016	Specialist and Emergency Services	01 MARCH 2017	01 FEBRUARY 2020	Mr N Fourie	R 4 628 000	4
Least Cost Communication t/a Call Save	SCMU 11/2016	Request for Proposal on Unified Communication System Lease (Telephone System)	13 FEBRUARY 2017 (Acceptance date)	13 JANUARY 2020	Mr T.G Maluleke	R 2 593 938.60	n/a
RB82 heights trading and projects	SCMU 25/2016	Maintenance of air conditioners	20 MARCH 2017 (Acceptance date)	20 MARCH 2020	Mr A.G. Laubscher	Rates	n/a
Yeneliswa construction civil engineering & project cc	SCMU 24/2016	Maintenance of railway lines	21 APRIL 2017	21 MARCH 2020	Mr M.J Matlala	Rates	n/a
1. Makasana construction	SCMU 07/2016	Maintenance of tarred road (rotational basis)	21 APRIL 2017	21 MARCH 2020	Ms H.O Tshisevhe	Rates	4
2. Selby construction	Maintenance of tarred road (rotational basis)	19 APRIL 2017 (Acceptance date)	19 MARCH 2020	RATES	4
3. Kamajou Trading and projects (pty) Ltd	Maintenance of tarred road (rotational basis)	19 April 2017 (Acceptance Date)	19 MARCH 2020	RATES	N/a
4. Moepeng trading 40cc	Maintenance of tarred road (rotational basis)	19 April 2017 (Acceptance Date)	19 MARCH 2020	RATES	N/a
1. Bukuta Bk construction and plant hire	SCMU 09/2016	Hiring of water tankers (rotational basis)	25 April 2017 (Acceptance Date)	19 MARCH 2020	Ms H.O Tshisevhe	Rates	N/a
2. Selby construction	Hiring of water tankers (rotational basis)	18 April 2017 (Acceptance Date)	18 MARCH 2020	Rates	4
3.Hulelasi construction and projects	Hiring of water tankers (rotational basis)	20 April 2017 (Acceptance Date)	20 MARCH 2020	Rates	N/a
4. Mathothokha Trading	Hiring of water tankers (rotational basis)	18 April 2017 (Acceptance Date)	18 MARCH 2020	Rates	N/a
1. Kamajou Trading and projects (pty) Ltd	SCMU 10/2016	Maintenance of stormwater drainage (Pool use on rotational basis)	19 April 2017 Acceptance Date	19 MARCH 2020	Ms H.O Tshisevhe	Rates	N/a
2. Selby construction	Maintenance of stormwater drainage (Pool use on rotational basis)	18 April 2017 Acceptance Date	18 MARCH 2020	Rates	4
3. Modulaodira	Maintenance of stormwater drainage (Pool use on rotational basis)	25 JUNE 2017 Acceptance Date	25 MAY 2020	Rates	N/a
4. Rekhuditse construction and cleaning services	Maintenance of stormwater drainage (Pool use on rotational basis)	25 APRIL 2017 Acceptance Date	24 MARCH 2020	Rates	N/a
1. Kamajou Trading and projects (pty) Ltd	SCMU 08/2016	Machine and equipment hire (Pool utilised on rotational basis)	19 April 2017 (Acceptance Date)	18 MARCH 2020	Ms H.O Tshisevhe	Rates	N/a
2. Selby construction	Machine and equipment hire (Pool utilised on rotational basis)	18 April 2017 Acceptance Date	18 MARCH 2020	Rates	4
3. Bukuta construction and plant hire	Machine and equipment hire (Pool utilised on rotational basis)	25 April 2017 Acceptance Date	25 MARCH 2020	Rates	N/a
4. Selema plant hire construction	Machine and equipment hire (Pool utilised on rotational basis)	18 April 2017 Acceptance Date	18 MARCH 2020	Rates	N/a
ARMS Audit	SCMU 06/2017	Request for proposals on asset management for Greater Tzaneen	25 April 2017	18 MARCH 2020	Mr. T.A Ramokgano	R7 199 291	N/a

ADDENDUM I– PERFORMANCE OF SERVICE PROVIDERS

Table 166: 4th Quarter Evaluation of Service Provider Performance for 2016/17
Dept	Project name	Name of Service provider	Source of funding	Start date	End date	Physical Progress to date - Narrative required	Challenges and interventions	Assessment of service provider (Scale 1-5) 1 - Poor 2 - Fair 3 -Average 4 - Good 5 - Excellent	Assessment comments (future utilisation of service provider)
Qtr 1	Qtr 2	Qtr 3	Qtr 4
MM	Electronic Performance Reporting System	ActionIT	Own funds	1/07/2015	1/04/2018	SDBIP & Individual PM modules being utilised	None	4	4	4	4	System supports Performance Reporting and auditing. Other modules may be considered for future use
MM	Travel agency services	Uniglobe travel agency	Own funds	1/02/2017	31/01/2020	Providing travel agency services to GTM	Quotations received from the service provider more expensive than when sourcing self. Contract will exhaust S&T votes if not managed since agency adds own levy	n/a	n/a	2	2	Outsourcing of service is not affordable and should be reconsidered in future.
CFO	Credit control and debt collection	Physon Business solutions	Own funds	4/2015	3/2018	Continuous credit control actions	Supplier not professional	1	1	2	3	Service improved, reports are received regularly. The professionalism still to be addressed by the supplier.
CFO	Debt collection	Altimax Zandile Monene Business	Own funds	10/2015	9/2018	Altimax withdrawn pending dispute resolution	Reporting system to be re-defined internally by the Revenue division.	4	3	3	3	Will continue with the service provider with manually updated report on debtor’s payments.
CFO	Meter reading	Electrocuts	Own funds	7/2015	7/2018	updated readings monthly	Meter readers went on strike, late receiving of information, inconsistent reading dates.	4	4	4	2	Reconsider appointment
CFO	Valuation roll	DDP Valuers	Own funds	7/2012	6/2017	Valuations done on request within time frames	None, contract ended	4	4	4	4	Contract ended
CFO	Valuation roll	Uniqueco	Own funds	1/2017	6/2022	General Valuation roll submitted	None	n/a	n/a	4	4	Will continue with the service provider
CFO	Insurance	Lateral Unison ( Insurance Brokers)	Own funds	7/2015	6/2018	Lateral Unison handle claims as received with regular feedback	Due late premium payment, no claims will be paid out from the 1/07/16 - 26/04/17	4	4	2	3	Report to Council to be tabled to the next EXCO and Council meetings.
CFO	Assets Management Consultants	ARMS	Own funds	04/2017	04/2020	The audit outcome is Unqualified Company was re-appointed	Contract ended in November	4	4	n/a	4	The service provider was re-appointed.
CFO	MSCOA	SEBATA	Own funds	06/2017	06/2020	Start-up of MSCOA process, convert on budget and submission of budget strings to be MSCOA compliant	Late appointment of service provider and therefore project is far behind schedule	n/a	n/a	n/a	4	Late appointment made the process difficult
CFO	VAT Consultants	PK Consulting	Own funds	02/2017	01/2020	Compile and submit VAT claims on behalf of GTM	No advice provided on optimising claims, claims submitted omits items causing a loss of VAT income to Council.	2	2	2	2	Outsourcing of this service should be reconsidered
CORP	Telephone Exchange System	Gijima	GTM	1-Dec-00	30-Nov-05	Services Terminated	Contract ended in 30 June 2016	4	3	2	1	The service at the end of the Contract was inadequate as the switchboard and many extensions were not operational.
CORP	Managed printing service	Nashua Limpopo	GTM	2012/07/01	2015/06/30	Printing Services contract was extended until the 30th of October 2016. The Services were also terminated with effect from the 1st of November 2016	None.	3	3	n/a	n/a	None
CORP	Managed printing service	Phinnet Communications	GTM	2016-11-01	30-Oct-19	The service provider has since promised to change the MFPs at Records and Administration office and to date that was not done. Some of the MFPs take time to be maintained due slow supply of parts and toners.	Records and Administration staff cannot perform their duties as required.	n/a	n/a	3	2	The service are fair but there is room for improvement if the service provider can delivered required printers and services.
CORP	Paperless Council Meetings	Telkom Mobile	GTM	1-Apr-15	31-Mar-17	Mobile services provided. The Contract was upgraded with another 24 Months.	Some simcards were not activated.	4	4	4	3	Services average as some of the simcards were not activated.
CORP	Mimecast : Unified Email Management System	EOH	GTM	1-Jun-15	30-Jun-17	Services are rendered effectively.	None	4	4	4	3	To consider utilizing other security feature of the system in the coming financial years.
CORP	Website Services	SITA	GTM	1-May-15	31-May-17	The website is up to date with the relevant information that the municipality send to SITA for publication.	The service provider did not submit reports are required.	4	4	4	3	Services provided by SITA are good as they respond promptly to requests for publications, their problem is submission of monthly reports.
CORP	Provision of Legal Services	Mahowa Inc Attorney	GTM	1-Feb-13	28-Feb-17	The law firm has date performed satisfactorily and has exhausted all the mandate given to it	no challenges have been encountered	4	4	4	3	Service provider may be used in future
CORP	Provision of Legal Services	Magabe Inc Attorneys	GTM	1-Feb-13	28-Feb-17	The services rendered are professional and all the mandate has been satisfactorily executed	no challenges to date	4	4	4	3	Service provider may be used in future
CORP	Provision of Legal Services	Mushwana Inc Attorneys	GTM	1-Feb-13	28-Feb-17	All work assigned to them has been well executed	no challenges	4	4	4	3	Service provider may be used in future
CORP	Provision of Legal Services	Talane & Ass	GTM	01-Feb-13	28-Feb-17	All mandate given has been well executed	no challenges encountered	4	4	4	3	Service provider may be used in future
CORP	Provision of Legal Services	Baloyi Shirinda Inc	GTM	1-Feb-13	28-Feb-17	All work assigned has been well executed	no challenges	4	4	4	3	Service provider may be used in future
CORP	Provision of Legal Services	Ramothwala M. attorneys	GTM	1-Feb-13	28-Feb-17	Mandate well carried	no challenges	4	4	4	3	Service provider may be used in future
CORP	Provision of Legal Services	Modjadji Raphesu Attorneys	GTM	1-Feb-13	28-Feb-17	All work assigned has been well executed	no challenges to date	4	4	4	3	Service provider may be used in future
CORP	MFMA Training	Kamanga Skills Projects	GTM	28-Jun-16	18-Aug-17	In progress	None	4	4	4	4	Service provider may be used in future
CORP	PowerPoint Training	Avuxeni Computer Academy	GTM	10-Oct-16	15-Oct-16	Completed	None	4	4	4	N/A	Service provider may be used in future
CORP	Electronic Records Management System (Collaborator)	Business Engineering	GTM	01-Aug-06	Automatic renewal after 3 years	Day-to-day support is provided to the users. The system is well maintained and functional.	None	4	4	4	4	Support is provided as per the SLA and the services of the service provider are still required.
CORP	VMWARE VSPHERE: install, Configure, Manage v6.5 Training	Torque IT	GTM	13-Mar-17	17-Mar-17	Training Completed	None	N/A	N/A	4	N/A	Service provider may be used in future
CORP	Municipal Governance Training For Councillors	South African Institute of Learning	GTM	29-Mar-17	17-Feb-18	Training Completed	None	N/A	N/A	4	N/A	Service provider may be used in future
CORP	Office Management Training	Staff Training	GTM	29-Mar-17	30-Mar-17	Training Completed	None	N/A	N/A	4	N/A	Service provider may be used in future
CORP	Auditing the process utilized by Management to improve their External Audit Opinion on the Financial statement of the public Training	Institute of Internal Auditors South Africa	GTM	8-Mar-17	9-Mar-17	Training Completed	None	N/A	N/A	4	N/A	Service provider may be used in future
CORP	Fundamental of Internal AuditING Supply Chain Process Training	Institute of Internal Auditors South Africa	GTM	23-Mar-17	24-Mar-17	Training Completed	None	N/A	N/A	4	N/A	Service provider may be used in future
CORP	Purchase of office furniture	Cathu Holdings	GTM	30-Jun-17	30-Jun-17	Furniture supplied	None	N/A	N/A	N/A	4	Service provider may be used in future
CORP	Purchase of office furniture	Red Pencil Group	GTM	30-Jul-17	30-Jul-17	Awaiting for delivery of furniture	The Service Provider is still to order some of the furniture which was not clearly specified.	N/A	N/A	N/A	3	There are delays experienced from the Service Provider's site, hence uncertain to use the service provider in future.
CSD	Treatment & Disposal Management	Mmatshepe J.V. Theuwedi C.C.	GTM	1/08/2014	31/07/2017	Service is being provided, regular penalties applied in areas of underperformance.	Constant supervision and training required from GTM personnel to ensure that service is sustainable.	3	3	3	3	Service provider must be subjected to a "Waste Management Skills-rating" by the B.A.C. during procurement. Awaiting regulations by Minister i.t.o.Section 7 of Act 59/2008 (Nat. Waste Act)
CSD	Litterpicking Region-North	Molebogeng Trading Enterprise C.C.	GTM	1/08/2015	31/07/2018	Service is being provided, regular penalties applied in areas of underperformance.	Constant supervision and training required from GTM personnel to ensure that service is sustainable.	3	3	3	3	Service provider must be subjected to a "Waste Management Skills-rating" by the B.A.C. during procurement. Awaiting regulations by Minister i.t.o.Section 7 of Act 59/2008 (Nat. Waste Act)
CSD	Litterpicking Region-South	Selema Planthire Construction C.C.	GTM	1/08/2015	31/07/2018	Service is being provided, regular penalties applied in areas of underperformance.	Constant supervision and training required from GTM personnel to ensure that service is sustainable.	3	3	3	3	Service provider must be subjected to a "Waste Management Skills-rating" by the B.A.C. during procurement. Awaiting regulations by Minister i.t.o.Section 7 of Act 59/2008 (Nat. Waste Act)
CSD	Collection & Transportation Nkowankowa	Ingwe Waste Management	GTM	1/08/2014	31/07/2017	Service is being provided, regular penalties applied in areas of underperformance.	Constant supervision and training required from GTM personnel to ensure that service is sustainable.	3	3	3	3	Service provider must be subjected to a "Waste Management Skills-rating" by the B.A.C. during procurement. Awaiting regulations by Minister i.t.o.Section 7 of Act 59/2008 (Nat. Waste Act)
CSD	Collection & Transportation Lenyenye	Selema Planthire Construction C.C.	GTM	1/08/2015	31/07/2018	Service is being provided, regular penalties applied in areas of underperformance.	Constant supervision and training required from GTM personnel to ensure that service is sustainable.	3	3	3	3	Service provider must be subjected to a "Waste Management Skills-rating" by the B.A.C. during procurement. Awaiting regulations by Minister i.t.o.Section 7 of Act 59/2008 (Nat. Waste Act)
CSD	Grass Cutting	Shidila Trading Enterprise	GTM	1/08/2015	31/07/2018	Grass cutting is done on areas where order is issued.	Grass cutting is done when order is issued	4	4	4	4	They can be utilised, they doing great work.
CSD	Garden Maintenance	Tshandukos Consultation and Projects	GTM	1/08/2015	31/07/2018	Garden maintenance is done weekly	Work is done weekly	4	4	4	4	They can be utilised.
CSD	Physical Security	Mapheto Business Services CC	GTM	01/01/2016	31 /12/2018	Contract terminated	Breach of SLA and several thefts of Council assets	2	2	2	1	No Firearms as per Tender Specifications and some guards do not report for duty. No penalties despite several requests to impose by the department. Conducted an unlawful act by protesting against the Municipality on the 7th June 2017 and 11th July 2017. Locking employees out and blocking Council clients who wanted to do business with the Municipality.
CSD	Physical Security	Malwandla Security Services CC	GTM	01/02/2017	31 /04/2017	3 months contract expired	no challenges	5	5	n/a	n/a	All Tools of trade provided.
CSD	Cash In Transit	Letaba Security	GTM	01/10/2009	31/12/2015	Contract expired	Contract expired	3	3	4	n/a	Service provider can be utilised in future
CSD	Surveillance Cameras	Bravospan	GTM	01/10/2014	31/10/2016	Contract expired and service provider left site in November 2016.	Contract expired and left premises	5	3	n/a	n/a	There is no Monitoring of sites and no evidence will be provided if there are thefts in Council buildings
CSD	Electronic Morpho Access Control	Prosatelite	GTM	01/07/2013	to date	No Contract, service provider maintains system on request	Delays in payment after Call Up which is frustrating the service provider and the department	5	5	5	5	Maintenance Service Agreement must be entered into asap
CSD	Parking	BCIT	GTM	31/09/2013	01/08/2017	Managing parking in CBD	Work satisfactory. Work on the project began almost a year after the signing of the service level agreement.	3	3	3	3	Contractor performs well
CSD	Speed Law Enforcement	Mavamboits	GTM	01/04/2017	30/06/2017	Daily speed law-enforcement	Work satisfactory. Contract ended in June 2017 and has been extended until 31st September 2017	4	4	4	4	Contractor performs well with own back office
CSD	Physical Security	Letaba Security	GTM	12/07/2017	31/08/2017	Service delivery conducted as expected in the SLA	Work satisfactory	n/a	n/a	n/a	5	Contractor performs well
CSD	Cash In Transit	Fidelity Cash Solutions	GTM	01/03/2017	31/03/2020	Service satisfactory	Service satisfactory	n/a	n/a	n/a	4	Contractor performs well and can be recommended for future service
EEM	Specialist emergency services for GTM (electrical department)	Motla	GTM	02/12/2013	1/12/2016	Service satisfactory - Contract expired December 2016	Service satisfactory	5	5	n/a	n/a	Service Provider performed above standard
EEM	Specialist emergency services for GTM (electrical department)	Rhino Consulting Engineers	GTM	2017/03/22	2020/03/22	Service satisfactory	Service satisfactory	n/a	n/a	4	4	Service Provider performed on standard
EEM	Energy and Efficiency and Demand Side Management Phase3	MVM Africa Consulting Engineers	DOE	2016/08/01	2017/06/30	Construction phase, material ordered.	None	4	4	4	4	Performance above standard. Services may be utilised in future
EEM	Energy and Efficiency and Demand Side Management Phase3	Rivisi Electrical Contractors	DOE	2016/08/01	2017/06/30	Construction phase, material ordered.	None	4	4	4	4	Performance above standard. Services may be utilised in future
EEM	Electrical Master Plan Phase 2	Royal Haskoning Consulting Engineers	Own Funds	2016/07/01	2017/06/30	Inception report completed for phase 1 and phase 2 report due end November 2016	None	4	4	5	5	Performance above standard. Services may be utilised in future
EEM	Electrification of Sunnyside/Myakayaka/Spacheng	Bawelile Consulting Engineers And MPTJ Construction	DOE	01-07-2016	30-06-2017	Physical construction completed (96%). Meters installed. Busy with updating of ENS and capturing of PCS file	Delays with delivery of meters. GTM personnel to intervene and ensure that the meters are delivered.	4	4	3	3	Average performance due to delays with delivery of meters purchased directly from Eskom. Service providers may be utilised in future.
EEM	Electrification of Khopo Civil	Mogalemole Consulting Engineers and Rivisi Electrical	DOE	01-07-2016	30-06-2017	Physical construction completed (95%) Busy with updating of ENS and capturing of PCS file	Delays with procurement of meters	4	4	3	4	Good performance. Service providers may be utilised in future.
EEM	Electrification of Thabina Valley	Superior Quality Engineering & Technologies And Mdina Engineering	DOE	01-07-2016	30-06-2017	Project completed and energised on 23 December 2016(100%). 398 households connected. Infrastructure also provided for 268 empty stands.	None	4	5	4	4	Good performance. Service providers may be utilised in future.
EEM	Electrification of Xihoko/Radoo/Thapane/Mavele Phase 1 & 2	Calibre Consulting Engineers And Tshabalala Multipurpose Workshop	DOE	01-07-2016	30-06-2017	Project competed and energized (100%).737 households connected. Infrastructure provided for empty stands and unfinished households.	None	4	5	5	5	Outstanding Performance. Service providers may be utilised in future.
EEM	Electrification of Leolo/Serare	Izwe Engineering and Investments	DOE	01-07-2016	30-06-2017	Project at construction phase (40%)	None	4	4	4	4	Good Performance. Service providers may be utilised in future.
EEM	Electrification of Leolo/Serare	Kedibone Construction	DOE	01-07-2016	30-06-2017	Project at construction phase (40%)	None	n/a	n/a	4	4	Good Performance. Service providers may be utilised in future.
EEM	Electrification of Dan/Lusaka	Izwe Engineering and Investments	DOE	01-07-2016	30-06-2017	Project at construction phase (45%)	None	4	4	4	4	Good Performance. Service providers may be utilised in future...
EEM	Electrification of Dan/Lusaka	Modikeng Electrical	DOE	01-07-2016	30-06-2017	Project at construction phase (45%)	None	n/a	n/a	4	4	Good Performance. Service providers may be utilised in future...
EEM	Electrification of Khayalam/Legobareng/Shiluvane Ext	Izwe Engineering and Investments	DOE	01-07-2016	30-06-2017	Project at construction phase (71%)	None	4	4	5	5	Outstanding Performance. Service providers may be utilised in future.
EEM	Electrification of Khayalam/Legobareng/Shiluvane Ext	Omphile Electrical	DOE	01-07-2016	30-06-2017	Project at construction Phase (71%)	None	n/a	n/a	5	5	Outstanding Performance. Service providers may be utilised in future.
EEM	Rebuilding of lines-Mashuti 11kv (4km)	Rivisi Electrical Contractors	Own Funds	01-07-2016	30-06-2017	Scope of work determined. Quotation received. Order issued to Service Provider. Bush clearing completed. Awaiting delivery of material to start with rebuilding of line	Delay with delivery of material	n/a	n/a	3	4	Good Performance. Service providers may be utilised in future...
EEM	Rebuilding of lines-Lalapanzi to Waterbok (2km)	Rivisi Electrical Contractors	Own Funds	01-07-2016	30-06-2017	Rebuilding of lines in progress (75%)	None	n/a	n/a	4	4	Good Performance. Service providers may be utilised in future...
EEM	Rebuilding of Deeside 11kv line from Red ARC to Rooister and Woodside Farm (2.5km)	Rivisi Electrical Contractors	Own Funds	01-07-2016	30-06-2017	Rebuilding of line completed	None	n/a	5	5	5	Outstanding Performance. Service providers may be utilised in future...
EEM	Rebuilding of Yamorma/ Shivurali 11kv line (4km)	Rivisi Electrical Contractors	Own Funds	01-07-2016	30-06-2017	Scope of work determined. Quotation received. Order issued to Service Provider. Bush clearing completed. Awaiting delivery of material to start with rebuilding of line	Delays with delivery of material	n/a	n/a	3	4	Good Performance. Service providers may be utilised in future...
EEM	Rebuilding of Ledzee 11kv line from LZ 44 to Van der Gryp Farm (3.5km)	Rivisi Electrical Contractors	Own Funds	01-07-2016	30-06-2017	Scope of work determined. Quotation received. Order issued to Service Provider. Bush clearing completed. Awaiting delivery of material to start with rebuilding of line	Delays with delivery of material	n/a	n/a	3	4	Good Performance. Service providers may be utilised in future...
EEM	Highmast Lights , Motupa, Moruji, Moloko, Pelana Mawa Block 8 & 9	Simmolola Engineering Services	Own Funds	01-07-2016	30-06-2017	All High mast are up and working except Mawa Block 9 waiting for Eskom to build Connection	Eskom connections are time consuming, Consultant not always helpful	3	3	3	3	Performance are below standard for a Consultant, needs to gain more exposure, can be recommended
EEM	Highmast Lights , Motupa, Moruji, Moloko, Pelana Mawa Block 8 & 9	Lefamafa Electrical and Construction	Own Funds	01-07-2016	30-06-2017	All High mast are up and working except Mawa Block 9 waiting for Eskom to build Connection	Eskom connections are time consuming, Consultant not always helpful	5	5	5	5	Excellent Performance Contractor can be recommended in the future
EEM	Highmast Lights , Dan, Nyagalani, Tickyline, Burgersdorp, Khopo	AES Consulting engineers	Own Funds	01-07-2016	30-06-2017	All High mast are up and working except Nyagalani waiting for Eskom to build Connection	Eskom connections are time consuming, Consultant not always helpful	3	3	3	3	Performance are below standard for a Consultant, needs to gain more exposure, can be recommended
EEM	Highmast Lights , Dan, Nyagalani, Tickyline, Burgersdorp, Khopo	Ettshipota Contractors	Own Funds	01-07-2016	30-06-2017	All High mast are up and working except Nyagalani waiting for Eskom to build Connection	Eskom connections are time consuming, Consultant not always helpful	3	3	3	3	Performance are below standard for a Contractor but can improve with proper management and can be recommended
ESD	Supply and delivery of water treatment chemicals	Zamangwane	GTM	01/04/2016	30/04/2019	Supply and delivery	none	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Supply and delivery of water treatment chemicals	Zamandlambili Trading	GTM	01/04/2016	30/04/2019	Supply and delivery	none	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Supply and delivery of water treatment chemicals	Indlela Construction	GTM	01/04/2016	30/04/2019	Supply and delivery	none	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Supply and delivery of water treatment chemicals	Ifa Lethu	GTM	01/04/2016	30/04/2019	Supply and delivery	none	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Re Advert- Construction of Mokonyane low level bridge	Muavuli Trading	GTM	20/06/2016	20/10/2016	Completed	Contractor's progress was initially very slow	1	1	1	3	The performance of the service is poor and it only improved in the 4th quarter
ESD	Re Advert-Construction of Rikhotso low level bridge.	Zacks Business	GTM	24/05/2016	24/09/2016	Completed	None	4	4	4	N/A	We are happy with the performance of the service provider and can be utilised in future
ESD	Construction of Agatha Cemetery low-level bridge	Mosomo Consulting Engineers	GTM	28/07/2015	Depends on the contractor's appointment	Awaiting EIA approval	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Construction of Khubu to Lwandlamuni low-level bridge	Sky High	GTM	30/03/2015	14/06/2017	75%. The Contractor is busy with placing of prefabricated culverts	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Construction of Khubu to Lwandlamuni low-level bridge	Ndoni Properties	MIG	2-Feb-17	14/06/2017	75%. The Contractor is busy with placing of prefabricated culverts	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Refurbishment of Tzaneen Airfield runway	AES Consulting Engineers	GTM	08/2016	Depends on the contractor's appointment	Contractor has just been appointed	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Rita to Mariveni: Upgrading of Road from Gravel to Tar: Phase 3 of 4	Tangos Engineering Consultant	MIG	22/09/2015	31/09/2018	The supervision team of the consultants is executing duties well as the contractor is well ahead of schedule at 65%.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Rita to Mariveni: Upgrading of Road from Gravel to Tar: Phase 3 of 4	Selby Construction	MIG	22/09/2015	31/09/2018	65%-The Contractor is busy with Asphalt surfacing for another 1.5km and the Contractor is ahead of schedule. And awaits	The community of Zangoma had interdicted the implementation of the 6.7km of the internal streets in Zangoma. The court ruled in favour of the Municipality. The Contractor will resume the works on Thursday as there were still some challenges withe the disgruntled members of the community.	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Moruji to Maswi: Upgrading of Road from Gravel to Tar: Phase 3 of 4	Mtema Mashao Engineering Consultants	MIG	05/09/2016	04/09/2018	The Supervision team couldn’t supervise the works as the SLA wasn't signed.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Moruji to Maswi: Upgrading of Road from Gravel to Tar: Phase 3 of 4	Quality Plant Hire/Expectra 388 CC JV	MIG	05/09/2016	04/09/2018	18%- The Contractor has done site establishment and busy with bypasses.	Rainfall and deep cuts and fills	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Mafarana to Burgersdorp Road From Gravel to Tar	Southern Ambition Consulting Engineers	MIG	28/02/2018	28/02/2018	The supervision team of the consultants is executing duties well as the contractor is well ahead of schedule at 70%.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Mafarana to Burgersdorp Road From Gravel to Tar	Selby Construction	MIG	28/02/2018	28/02/2018	70%-The Contractor is busy with construction of the base, subbase and prime coat.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Tickyline to Makhwibidung Tar Road	Southern Ambition Consulting Engineers	MIG	23/11/2015	03/06/2016	Complete	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Tickyline to Makhwibidung Tar Road	Makasana Construction	MIG	23/11/2015	03/06/2016	Complete	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Runnymade Cluster Sports Facility: Phase 2 of 2	Uranus Consulting ENGINEERS CC	MIG	14/03/2016	12/03/2017	70% Progress- Contractor is busy with brickwork for ablution facilities under the grandstands	excessive blasting and the realignment of the soccer pitch has caused delays	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Runnymade Cluster Sports Facility: Phase 2 of 2	Selby Construction	MIG	14/03/2016	12/03/2017	70% Progress- Contractor is busy with brickwork for ablution facilities under the grandstands	excessive blasting and the realignment of the soccer pitch has caused delays	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Relela Community Hall: Phase 2 of 2	Melco Consulting and Projects	MIG	24/11/2016	24/11/2016	Complete	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Relela Community Hall: Phase 2 of 2	Masrik Social Development Consultancy	MIG	24/11/2016	24/11/2016	Complete	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Nkowankowa Taxi Rank	Ryntex /G&C Consulting Engineers JV	NDPG	04/05/2016	06/12/2016	Complete- the contractor is attending to the snag list	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Nkowankowa Taxi Rank	Uyapo Engineering	NDPG	04/05/2016	06/12/2016	Complete- the contractor is attending to the snag list	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Marumofase Pedestrian Bridge	Sky High Consulting Engineers	Own Funds	29/07/2016	29/11/2016	The supervision team of the consultants is executing duties well.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Marumofase Pedestrian Bridge	Versatex jv Cttj Properties	Own Funds	29/07/2016	29/11/2016	85%-The Contractor is waiting for the subcontractor to complete the outstanding works	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Refurbishment and Upgrading of Lenyenye Stadium	SSA Consultants	MIG	08/09/2014	30/11/2016	The supervision team of the consultants is executing duties well.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Refurbishment and Upgrading of Lenyenye Stadium	Makgetsi Construction	MIG	08/09/2014	30/11/2016	The Contractor is completing the outstanding works.	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Juliesburg Sports Complex	Sky High Consulting Engineers	MIG	13/01/2014	to be determined	Newly appointed contractor, consultant in the process of drafting of contractual documentation	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Juliesburg Sports Complex	Moepeng Trading 40	MIG	29/06/2017	to be determined	Newly appointed contractor	Appointed late in June '17	n/a	n/a	n/a	n/a	Implementation not yet commenced
ESD	Upgrading of Burgersdorp Sports Complex	Sky High Consulting Engineers	MIG	13/01/2014	to be determined	Newly appointed contractor, consultant in the process of drafting of contractual documentation	None	4	4	4	4	We are happy with the performance of the service provider and can be utilised in future
ESD	Upgrading of Burgersdorp Sports Complex	Leb P	MIG	29/06/2017	to be determined	Newly appointed contractor	Appointed late in June '17	n/a	n/a	n/a	n/a	Implementation not yet commenced
ESD	New ablution block and upgrading of existing at parks	F And A Consulting engineers	own	24/07/2017	24/10/2017	Consultant is monitoring of the contractor	none	n/a	n/a	n/a	4	The performance is good up to so far
ESD	New ablution block and upgrading of existing at parks	Mandebele and family	own	24/07/2017	24/10/2017	physical progress is at 10%	The project will require a roll over, due to late appointment of service providers	n/a	n/a	n/a	4	The performance is good up to so far
P E D	Review of the SDF	Dludla Development Consultant	Own	01/04/2016	01/03/2017	SDF review completed	None	4	4	4	4	May be considered for future appointment if need arises.
PED	Review of the LED Strategy	Urban-Econ	Own	15/03\2017	30/06/2017	LED Strategy review completed	None	n/a	n/a	5	n/a	Yes highly recommended

ADDENDUM J: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE

ADDENDUM J (I): REVENUE COLLECTION PERFORMANCE BY VOTE

Table 167: Revenue Collection Performance by Vote (R' 000) - 2016/17
Vote Description	2015/16	2016/17 Current year	2016/17 Variance
Actual	Original Budget	Adjusted Budget	Actual	Original Budget	Adjustments Budget
Vote 1: Municipal Manager
Vote 2: Planning & Economic Development	12 529	514	8 714	5 512	91%	-58%
Vote 3: Financial Services	427 507	376 397	376 397	443 107	15%	15%
Vote 4: Corporate Services	–	1	1	1	-40%	-40%
Vote 5: Community Services	83 708	100 011	100 011	89 277	-12%	-12%
Vote 6: Electrical Engineering Services	442 159	523 701	533 197	463 631	-13%	-15%
Vote 7: Engineering Services	118 567	91 442	156 442	120 904	24%	-29%
Total Revenue	1 084 470	1 092 066	1 174 762	1 122 431	3%	-5%

ADDENDUM J (ii): REVENUE COLLECTION PERFORMANCE BY SOURCE

Table 168: Revenue Collection Performance by Source - R '000 (2016/17)
Description	2015/16	2016/17	2016/17 Variance
Actual	Original Budget	Adjustments Budget	Actual	Original Budget	Adjustments Budget
Property rates	74 146	72 000	72 000	80 788	11%	11%
Property rates - penalties & collection charges	5 187	5 000	5 000	8 158	39%	39%
Service Charges - electricity revenue	421 447	491 701	491 701	417 829	-18%	-18%
Service Charges - water revenue
Service Charges - sanitation revenue
Service Charges - refuse revenue	26 476	25 853	25 853	27 526	6%	6%
Service Charges - other	2 182	1 327	1 327	2 366	44%	44%
Rentals of facilities and equipment	1 334	1 072	1 072	1 644	35%	35%
Interest earned - external investments	6 850	2 101	2 101	8 253	75%	75%
Interest earned - outstanding debtors	12 328	12 000	12 000	15 321	22%	22%
Dividends received
Fines	35 497	3 805	3 805	43 914	91%	91%
Licences and permits	722	651	651	824	21%	21%
Agency services	8 004	49 264	49 264	6 305	-681%	-681%
Transfers recognised - operational	309 530	324 390	333 885	424 921	24%	21%
Other revenue	33 846	8 465	8 465	44 717	81%	81%
Gains on disposal of PPE	2 129	2 129
Environmental Protection
Total Revenue (excluding capital transfers and contributions)	937 549	999 759	1 009 255	1 082 566	8%	7%

ADDENDUM K: CAPITAL EXPENDITURE – NEW & UPGRADE/RENEWAL PROGRAMMES

ADDENDUM K (i): CAPITAL EXPENDITURE - NEW ASSETS PROGRAMME

Table 169: Capital Expenditure - New Assets Programme*( R'000)
Description	2014/15	2016/2017	Planned Capital expenditure
Actual	Original Budget	Adjustment Budget	Actual Expenditure	2017/2018	2018/19	2019/2020
Capital expenditure by Asset Class
Infrastructure - Total	99 428	114 607	192 172	49 738	57 850	54 232	102 459
Infrastructure: Road transport - Total	82 030	91 707	168 672	39 931	42 850	38 347	85 653
Roads, Pavements & Bridges	82 030	91 707	168 672	39 931	39 350	38 347	85 653
Storm water	3 500
Infrastructure: Electricity - Total	17 397	22 000	22 300	9 728	15 000	15 885	16 806
Generation
Transmission & Reticulation	17 397	22 000	22 300	9 728	15 000	15 885	16 806
Street Lighting
Apollo Lights	-
Infrastructure: Other - Total	420	900	1 200	80	–	–	–
Waste Management
Transportation
Gas
Other	420	900	1 200	80
Community - Total	34 383	3 000	12 635	12 503	–	–	–
Parks & gardens	8 013
Sports fields & stadia	11 102
Swimming pools	11 887
Community halls
Libraries
Recreational facilities	8 200	5 361
Security and policing
Buses
Museums & Art Galleries
Cemeteries	3 000	4 435	7 142
Social rental housing	3 382
Other
Heritage assets - Total	-
Buildings
Other
Investment properties - Total
Housing development	-
Other
Other assets	4 284	5 846	6 440	10 508	235	235	235
General vehicles	479	1 043	1 181
Specialised vehicles
Plant & equipment
Computers - hardware/equipment	95
Furniture and other office equipment	149	3 100	1 650	7 889
Civic Land and Buildings
Other Buildings
Other Land
Surplus Assets - (Investment or Inventory)
Other	3 562	2 746	3 746	1 438	235	235	235
Agricultural assets	-
NONE
Biological assets
NONE
Intangibles	-	700	700	631	–	–	–
Computers - software & programming	700	700	631
Other (list sub-class)
Total Capital Expenditure on new assets	231 272	124 153	211 947	73 381	58 085	54 467	102 694
Specialised vehicles	–
Refuse

ADDENDUM K (ii): CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME

Table 170: Capital Expenditure - Upgrade/Renewal Programme*- R '000
Description	2014/15	2016/2017	Planned Capital expenditure
Actual	Original Budget	Adjustment Budget	Actual Expenditure	2017/2018	2018/2019	2019/2020
Capital expenditure by Asset Class
Infrastructure - Total	–	10 000	8 600	3 030	83 039	89 342	46 500
Infrastructure: Road transport -Total	–	2 500	3 100	469	53 039	59 342	16 500
Roads, Pavements & Bridges	2 500	3 100	469	53 039	59 342	16 500
Storm water
Infrastructure: Electricity - Total	–	7 500	5 500	2 561	30 000	30 000	30 000
Transmission & Reticulation	7 500	5 500	2 561	30 000	30 000	30 000
Street Lighting
Community	-
Other	–
Infrastructure: Other - Total
Waste Management
Transportation
Other assets	564
Computers - hardware/equipment	-
Furniture and other office equipment	564
Total Capital Expenditure on renewal of existing assets	564	10 000	8 600	3 030	83 039	89 342	46 500

ADDENDUM L – CAPITAL PROGRAMME BY PROJECT 2016/17

Table 171: Capital Programme by Project 2016/17 (R'000)
Capital Project	Original Budget	Adjustment Budget	Actual	Variance (Act - Adj) %	Variance (Act - OB) %
WATER	No capital projects implemented as Mopani District is the Water Service Authority
SANITATION/SEWERAGE	No capital projects implemented as Mopani District is the Water Service Authority
ELECTRICITY
New electricity connections	15 000	13 000	6 402	(6598)	888
Energy efficiency demand management	7 000	7 000	5 873	(1 127)
R and M on pre-paid meters	250	250	27	(223)
Provision of Capital Tools (Urban)	100	100	17	(83)
Provision of Capital Tools (outlying)	100	100	0.00	(100)
Rebuilding of 33kv lines Lalapanzi	400	400	0.00	(400)
Rebuilding of Mashutti 11kv	600 000	600 000	0.00	(600)
Rebuilding of Deeside 11kv line	400 000	400 000	0.00	(400)
Rebuilding of Yarmona Shivulani 11kv	600 000	600 000	0.00	(600)
Rebuilding of Ledzee 11kv	525 000	525 000	0.00	(525)
Rebuilding of old SS1 electrical substation circuit	2 500 000	500 000	0.00	(500)
ROADS & STORMWATER
Rita , Khopo, Lefara to Mariveni from gravel to tar	20 153	26 013	14 837	(11 176)	00
Tickyline, Glass work, Mafarana road from gravel to tar	19 600	64 074	46 041	(18 033)
Moruji to Matshwi road from gravel to tar	22 840	24 705	11 269	(13 436)
Rikhotso low level bridge	2 000	2 000	1 077	(9 230)
Mokonyane low level of bridging	500	500	850	(350)
Khwekhwe low level of bridge	1 300	1 300	0	(1 300)
Khubu to Lwandlamuni low level bridge	2 600	5 781	308	(5 473)
Refurbishment of Tzaneen airfield runway	2 500	2 500	0	(2 500)
install high mast lights in Traditional Authorities Office	2 546	2 546	525	(2 021)
Parks ablution facilities at Parks	900	900	80	(820)
Upgrading of Burgersdorp sports ground phase 1 of 2	673	4 673	0	(4 673)
Upgrading of New Runnymede cluster sports facility phase 2 of 2	15 972	22 472	18 662	(2 690)
Upgrading of Juliesburg sports ground	673	2 000	0	(2000)
Relela community hall phase 2 of 2	6 069	9 257	7 521	(1 452)
Marumofase Pedestrian bridge	7 031	5 936	3 283	(2 653)
Agatha Cemetery low level bridge	0	1 881	0	(1 881)
PARKS & CEMETERIES
N/A
MUNICIPAL BUILDINGS
N/A
FLEET
N/A
ECONOMIC DEVELOPMENT & TOWN PLANNING
N/A
SPORTS, ARTS & CULTURE
N/A
ENVIRONMENTAL HEALTH
N/A
ICT AND OTHER
N/A
TOTAL

ADDENDUM M – CAPITAL PROGRAMME BY PROJECT BY WARD 2016/17

Table 172: Capital Programme by Project by Ward 2016/17*
Capital Project	Ward(s) affected	Works completed (Yes/No)
ELECTRICITY
Replacing of old SS1 electrical substation circuit breakers with compact switchgear	15	No
Rebuilding of lines - Mashuti 11kv (4km)	16	Yes
Rebuilding of lines - Lalapanzi to Waterbok (2 km)	35	Yes
Rebuilding of Deeside 11kv line from Red ARC to Rooister and Woodside Farm (2.5 km)	13	Yes
Rebuilding Of Yamorna /Shivurali 11kv line ( 4 km)	13	Yes
Rebuilding of Ledzee 11kv line from LZ 44 to Van der Gryp Farm (3.5 KM)	13	Yes
Replace 10 x 11 kV and 6 x 33 kV Auto Reclosers per annum	13 &16	Yes
ROADS & STORMWATER
Rita, Khopo, Lefara, Zanghoma, Uhuru, Xipungu to Mariveni Tar Road (Phase 3 of 4)	22; 23; 24	No
Tickyline, Myakayaka, Burgersdorp, Gavaza to Mafarana Tar Road	28 & 29	No
Moruji to Matswi, Kheshokolwe Tar Road	7	No
Rikhotso low level bridge	4	Yes
Mokonyane low level of bridging	32	Yes
Khwekhwe low level of bridge	8	Yes
Refurbishment of Tzaneen airfield runway	13	No
Agatha Cemetery low level bridge	15	No
Marumofase Pedestrian bridge	30	Yes
Khubu to Lwandlamuni low level bridge	26	Yes
Speed Humps	All	Yes
TOWN PLANNING
<None>
SPORTS & RECREATION FACILITIES
Upgrading of Lenyenye Stadium	31	Yes
Runnymede Sports Complex	6	No
Julesburg Sports Field	26	No
Burgersdorp Sports Ground	28	No
WASTE MANAGEMENT
<None>

ADDENDUM N – SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS

Table 173: Service Backlogs: Schools and Clinics (2016/17)
Establishments lacking basic services	Water	Sanitation	Electricity	Solid Waste Collection
Schools (NAMES, LOCATIONS)
N/a	No backlog	No backlog	No backlog	Backlog at all rural-areas No backlog in urban areas
Clinics (NAMES, LOCATIONS)
N/A	No backlog	No backlog	No backlog	No backlog –clinics are serviced by a Provincial service provider for H.CR.W. Urban clinics serviced by GTM

All Schools and Clinics have access to water and sanitation. In some instances water are supplied through boreholes, which may run dry at time.

ADDENDUM O – SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION

Table 174: Service Backlogs Experienced by the Community where another Sphere of Government is the Service Provider (where the Municipality whether or not act on agency basis)
Services and Locations	Scale of backlogs	Impact of backlogs
Waste Management: All Wards	Absence of a Regional Landfill space for waste in the Mopani District Area	Regionalization of Landfill-Sites ito of Sec.84 of the Municipal Structures Act (Act 117 of 1998), is required from the District Municipality
Clinics: Ward 1, 2, 3, 4, 7, 8, 9, 10, 11, 13, 14, 16, 17, 18, 19, 21, 22, 24, 25, 26, 28, 29, 30, 31, 32 and 34	Health facilities are far from the mentioned wards and their respective constituencies	The lack of health facilities within reach of the people contribute to an increase in curable diseases
Housing: Ward 1, 2, 4, 13, and 14	The mentioned wards have not received all housing units’ allocations while some received just portions.	Lack of housing impacts on the lives of people in terms of shelter and family relationship. (Social security)
Licensing and Testing Centre: Ward 31 (Lenyenye) and Bolobedu area	The Municipality has only two licensing and testing centres	Lack of extra licensing and testing centres in within the jurisdiction of the Municipality leads to overcrowding in the existing two centres
Reservoirs: Various wards	Most villages in various wards have a need for new reservoirs and their upgrades	Lack of reservoirs leads to shortage of piped water in villages
Schools (Primary and High): Ward 1, 3, 4, 5, 7, 8, 9, 10, 11, 12, 14, 16, 18, 21, 22, 25, 27, 28, 29, 32, 34	There is a great need for new schools (primary and secondary) in the mentioned wards	Lack of schools in the mentioned wards leads to lack of access to education for children and overcrowding in the existing ones
Sports Fields: Wards 1, 4, 7, 8, 9, 11, 12, 15, 16, 17, 19, 21, 24, 25, 26 and 28	There is a need for sport and recreation facilities in the mentioned villages	Lack of sport and recreation facilities leads to young people becoming involved in criminal activities and indulging in substance abuse
Safety and Security: Wards 1, 2, 3, 4, 7, 8, 9, 11, 13, 14, 16, 17, 18, 21, 24, 25, 27, 28, 32 and 34	There is a need for construction of new police stations in the mentioned wards	Lack of police stations leads to escalation of crime in communities

ADDENDUM P – DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY

Table 175: Declaration of Loans and Grants made by the Municipality 2016/17
All Organisation or Person in receipt of Loans */Grants* provided by the Municipality	Nature of project	Conditions attached to funding	Value 2016/17	Total Amount committed over previous and future years
Museum	Assistance to Museum	Submission of Financial statements at year end	33 326	Annual agreement
Eskom EBSST	Indigent register	Approved indigent register	2 994 052	Annual agreement
Mayor Special account	Assistance to poor families	Reserved for indigent households & vulnerable people	267 929	Annual agreement
SPCA	Animal Care	Submission of Financial statements at year end	102 500	Annual agreement
Mayor Bursary Account	Financial assistance to learners from poor families	Learners from indigent families may apply. Must have passed Grade 12.	375 157	Annual agreement
Sport & Council	Assistance to Sports Council for operational activities	Submission of Financial statements at year end	106 644	Annual agreement

ADDENDUM Q – DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71

Table 176: MFMA Section 71 Returns Not Made During 2016/17 According to Reporting Requirements
Return	Reason Return has not been properly made on due date
C6-Monthly Budgeted Statement - Financial Position	Caseware financial system was purchased, which will be able to produce monthly statements. This will be done during 2017/18

VOLUME II: ANNUAL FINANCIAL STATEMENTS 2016/17

Audited Annual Financial Statements attached as Annexure B.

<The end>

Salaries as percentage of Total Revenue

Note: Recent legislation includes the Water Services Act 1997 and the General Enabling Act 2005

It should be noted that GTM is not a Water Service Authority and therefore not providing water and sanitation in the entire municipal area, making it impossible to provide figures on the provision of free basic services in this regard.

Payments made are deposited into a general account and not ring-fenced for parks and community facilities

Not determinable

Complaints regarding schools and clinics without electricity use to be submitted to GTM by Ward Councilors. No such complaints was received during 2016/17