Oversight:%20Select%20Committee%20on%20Finance

1
Gert Sibande District

• Oversight Select Committee on Finance

Presented by Mr. M.A. Ngcobo, Pr. Tech. Eng,
MSAICE, IMESA, FMWISA (Municipal Manager) Mr.
A.Y. Singh, BCom (Acc), BCompt, CMA, IMFO
(Chief Financial Officer)
5 May 2008 Cape Town - Parliament
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PRESENTATION OVERVIEW

• The Financial, Technical Corporate Service
  quantitive and qualitative information pertains
  to Gert Sibande District Municipality, which
  renders support services to the following
  Municipalities
• Albert Luthuli Local Municipality
• Dipaleseng Local Municipality
• Govan Mbeki Local Municipality
• Lekwa Local Municipality
• Mkhondo Local Municipality
• Msukaligwa Local Municipality
• Pixley Ka Seme Local Municipality
• Total population 985 632
• Total area served by GSDM 31 842 km²

3
Intro
Budget info current financial year
Compliance With MFMA
Policies By-Laws
Relations in Collaboration with National
Provincial Depart.
Spending Performance Conditional Grants
Municipalities Relations With National
Provincial Depart.
Capacity Constraints
Monitoring Report
GSDM KPAs 1,2,3,4,5 6
Municipal IDP Alignment to PGDS
Service Delivery
Service Delivery Estimated Backlog
Service Delivery Water Prov. Backlogs
Service Delivery Sanitation Prov. Backlogs
Service Delivery Summary of funding Requirements
Service Delivery Roles Responsibilities
Service Delivery Water Quality within GSDM
Conclusion remarks
Re a leboga Thank you Siyabonga
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BUDGET INFORMATION REVENUE
  Budget Adjustment Budget Actual of Projected of
REVENUE BY SOURCE 2007/2008 2007/2008 30 Apr'08 Budget 30 Jun'08 Budget
  (R'000) (R'000) (R'000) (83,3) (R'000) (100)
Establishment Levy 0 430 543 126.3 663 154.2
Service Levy 0 187 43 23.0 62 33.2
Grants 172,638 184,433 181,393 98.4 184,433 100.0
Interest on investments 7,420 16,904 16,457 97.4 19,649 116.2
Other income 138 5,140 216 4.2 1,501 29.2
Total 180,196 207,094 198,652 95.9 206,308 99.6
Contribution Acc. Surplus 58,898 32,000 40,442 126.4 32,786 102.5
Total Revenue 239,094 239,094 239,094 100.0 239,094 100.0
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BUDGET INFORMATION INVESTMENTS
Financial Institution Amount Invested Amount Invested
Financial Institution 30 Apr 08 30 Jun 08
Financial Institution
ABSA R 48M R38M
FNB R48M R38M
Standard Bank R48M R38M
Nedbank R48M R38M
TOTAL R 192M R 152M

• Investment decrease attributed to
  expenditure on projects

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BUDGET INFORMATION EXPENDITURE ADMINISTRATION
OF THE ACT.
  Budget Adjustment Budget Actual of Projected of
EXPENDITURE 2007/2008 2007/2008 31 Apr'08 Budget 30 Jun'08 Budget
  (R'000) (R'000) (R'000) (83.3) (R'000) (100)
Salaries, Wages Allowances 42,143 35,621 19,339 54.3 24,115 67.7
Councillor Allowances 4,543 5,422 3,979 73.4 4,355 80.3
Depreciation 1,659 1,404 1,150 81.9 1,404 100.0
Collection Cost 50 50 25 50.0 49 98.0
Repairs Maintenance 723 769 473 61.5 579 75.3
Contracted Services 561 984 553 56.2 669 68.0
General Expenditure 14,601 19,288 10,096 52.3 11,584 60.1
Less Debited Out -6,449 -5,707 -4,350 76.2 -5,124 89.8
Administration of the Act 57,831 57,831 31,265 54.1 37,631 65.1

• In the process of reforming the organisational
  structure, not all budgeted positions were filled.

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BUDGET INFORMATION EXPENDITURE INDIRECT
ALLOCATIONS
Indirect Allocations to Budget
Local Municipalities  
SUPPORT SERVICE - TECHNICAL 1,808,310
MAYORAL EXCELLENCE AWARD 600,000
FIRE PREVENTION 500,000
SPORT,ARTS AND CULTURE 700,000
REGIONAL SPORT STADIUM 400,000
YOUTH DEVELOPMENT 400,000
BURSARIES 2,150,000
CO-ORDINATION HIV AND AIDS 400,000
REVENUE COLLECTION / DATA CLEANSING 5,000,000
GRAVEYARDS 1,000,000
YOUTH DESK IN MUNICIPALITIES 200,000
DISASTER MANAGEMENT 2,000,000
WOMEN'S CAUCUS 200,000
RELIGIOUS AFFAIRS(MORAL REGENERATION 200,000
TRADITIONAL AFFAIRS / PROJECTS 500,000
Indirect Allocations to Budget
Local Municipalities  
OFFICE - RIGHTS OF THE CHILD 200,000
ENVIRONMENTAL PROMOTIONS 700,000
PEOPLE WITH DISABILITIES 300,000
CO-ORDINATION OF FARM WORKERS 200,000
REGIONAL REFUSE DUMP SITE 2,000,000
INTEREST AND REDEMPTION 804,100
LED, TOURISM AND AGRICULTURAL 4,000,000
IDP - NEW AND UPDATE 1,000,000
IT FOR THE REGION 1,000,000
CAPACITY BUILDING/COMM PARTICIPATION 3,500,000
PROMOTION OF THE DISTRICT/COMMUNIC 2,500,000
EMERGENCY / CONTINGENCIES 1,500,000
DEPRECIATION 2,237,080
TRAINING - DONOR FUNDING 5,000,000
AUDIT/INVESTIGATION STP/WTP'S 500,000
TOTAL 41,499,490
Actual Expenditure to 30 April 2008 29,4
Projected expenditure to 30 June 2008 80,0
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BUDGET INFORMATION EXPENDITURE DIRECT
ALLOCATIONS
Direct Allocations to Local Municipalities Direct Allocations to Local Municipalities Direct Allocations to Local Municipalities Budget
Albert Luthuli LM Albert Luthuli LM Albert Luthuli LM 19,484,707
Msukaligwa LM Msukaligwa LM Msukaligwa LM 20,752,378
Govan Mbeki LM Govan Mbeki LM Govan Mbeki LM 11,436,013
Mkhondo LM Mkhondo LM Mkhondo LM 23,335,035
Lekwa LM Lekwa LM Lekwa LM 11,872,432
Dipaleseng LM Dipaleseng LM Dipaleseng LM 8,394,509
Pixley ka Seme LM Pixley ka Seme LM Pixley ka Seme LM 10,134,716
TOTAL TOTAL TOTAL 109,550,614


Actual Expenditure to 30 April 2008 Actual Expenditure to 30 April 2008 Actual Expenditure to 30 April 2008 38.2
Projected expenditure to 30 June 2008 Projected expenditure to 30 June 2008 Projected expenditure to 30 June 2008 62.0
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ALBERT LUTHULI LOCAL MUNICIPALITY DIRECT
ALLOCATIONS
  Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
ALBERT LUTHULI LM  
CONSTRUCTION ELUK FRESH PRODUCE MARKET 41,026 41,025 41,026
UPGRADE METHULA T/INST WATER C 2,226,968 1,792,830 2,226,968
UPGRADE EMPULUZI WATER SCHEME/ INST 1,739,361 1,739,361 1,739,361
PROVISION VIP'S SWALLOWSNEST W 453,242 453,242 453,242
UPGRADE EERSTEHOEK WATER SCHEME 698,035 698,035 698,035
INSTALLATION WATER RET/WATER BORNE 2,026,075 1,425,920 2,026,075
UPGRADING OF EMPU (METHULA)WTW (Multi yr) 1,550,000 550,000 1,450,000 3,000,000
UPGRADING OF CAROLINA WTW (Multi yr) 1,950,000 750,000 3,400,000 2,150,000 7,500,000
UPGRADING OF ELUKWATINI WTW (Multi yr) 1,500,000 500,000 1,200,000 1,300,000 4,000,000
WATER RET AT CAROPARK 650 H/HOLDS 1,100,000 650,000 1,100,000
UPGRADE OF EKULINDENI BULK SCHEME 1,250,000 1,000,000 1,250,000
COMMUNAL WATER RET 480 H/HOLDS 950,000 950,000 950,000
UPGRADE OF EMPU(MAYFLOWER)WTW 1,600,000 800,000 1,600,000
VIP TOILETS (Multi yr) 1,300,000 1,071,090 700,000 2,000,000
UPGRADING BETTIESGOED BULK SCHEME (Multi yr) 400,000 50,000 200,000 1,400,000 2,000,000
UPGRADING EKULINDENI WTW (Multi yr) 400,000 50,000 300,000 1,300,000 2,000,000
PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 300,000 50,000 700,000 1,000,000
  19,484,707 12,571,503 7,950,000 6,150,000 33,584,707
           
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ALBERT LUTHULI LOCAL MUNICIPALITYUpgrading of
Methula Water Treatment Works PMG note photos
have been removed

• Project Amount R4,5M
• Endeocon Consulting Eng.
• Caluma Construction / 27 Years Robin Island
  Construction

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DIPALESENG LOCAL MUNICIPALITY DIRECT ALLOCATIONS
  Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
DIPALESENG LM  
ERADICATION OF BUCKETS 499,870 499,870 499,870
WATER RETICULATION 934,909 467,450 934,909
PAYMENT DBSA LOAN 1,000,000 1,000,000 1,000,000 470,590 2,470,590
FORTUNA RISING MAIN TO BALFOUR (Multi yr) 2,559,730 1,279,865 4,950,000 3,755,270 11,265,000
UPGRADE OF GROOTVLEI RISING MAIN (Multi yr) 600,000 600,000 2,200,000 1,800,000 4,600,000
WATER RET INFORMAL AREA 600H/H (Multi yr) 600,000 600,000 600,000 1,200,000
PROVISION BOREHOLES WITH HANDPUMPS(Multi yr) 1,200,000 600,000 775,000 1,975,000
NEW WTP FOR GREYLINGSTAD (Multi yr) 1,000,000 50,000 560,000 1,560,000
PROVISION OF VIP'S 1,000,000 1,000,000
GREYLINGSTAD COMMUNITY HALL 1,740,207 400,000 1,740,207
  10,134,716 5,497,185 11,085,000 6,025,860 27,245,576
           
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DIPALESENG LOCAL MUNICIPALITYFortuna Rising Main
to Balfour Ph 1- PMG note photos have been
removed

• Project Amount R11.2M
• Vukani Consulting Eng.
• Qubekela Contractors

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GOVAN MBEKI LOCAL MUNICIPALITY DIRECT
ALLOCATIONS
GOVAN MBEKI LM Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
 
ELECTRICITY INSTALMENT ON LOAN 1,592,662 1,592,662 1,592,662 1,592,662 4,777,986
REFURB EMBALENHLE PUR PLANT 90ML (Multi yr) 4,617,319 2,817,319 5,500,000 3,790,019 13,907,338
REFURB BETHAL PUR PLANT 10.2ML (Multi yr) 1,350,000 750,000 1,950,000 200,000 3,500,000
REFURB EVANDER PUR PLANT 6ML (Multi yr) 1,450,000 750,000 2,900,000 1,150,000 5,500,000
CONVERSION VIP TO WATERBORNE SEWER (Multi yr) 1,826,032 770,781 3,081,306 4,907,338
PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 300,000 50,000 700,000 1,000,000
PROVISION OF VIP'S (Multi yr) 300,000 50,000 700,000 1,000,000
  11,436,013 6,780,762 16,423,968 6,732,681 34,592,662
           
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GOVAN MBEKI LOCAL MUNICIPALITY Refurbishment of
Embalenhle Sewer Purification Plant-90ML - Ph1
PMG note photos have been removed

• Project Amount R13.9M
• Afri-Infra Consulting Eng.
• Bi-Water Engineering

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LEKWA LOCAL MUNICIPALITY DIRECT ALLOCATIONS
  Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
LEKWA LM  
RURAL WATER SUPPLY 1,759,060 1,759,060 1,759,060
ZONING OF WATER NETWORKS - INVESTIGATION 253,380 253,380 253,380
INSTALLATION STANDBY PUMP VAAL RIVER 719,571 719,571 719,571
REPAIR KIESER STR WATER RESERVOIR 304,085 304,085 304,085
UPGRADE SEWER LINE VAAL RIVER 776,556 776,556 776,556
MAIN ROAD IN SIVUKILE 59,781 59,781 59,781
UPGRADE OF WTW TO 37.5ML CAPACITY (Multi yr) 1,900,000 1,000,000 4,250,000 2,850,000 9,000,000
UPGRADE MORGENZON ABSTRACTION FACILITY (Multi yr) 750,000 375,000 250,000 1,000,000
RISING MAIN WTW OLD STAN RES (Multi yr) 1,750,000 1,250,000 2,650,000 100,000 4,500,000
ERADICATION RURAL BACKLOG 53 BORE HOLES (Multi yr) 1,550,000 1,150,000 2,300,000 650,000 4,500,000
PROVISION OF VIP'S (Multi yr) 1,050,000 750,000 950,000 2,000,000
COMPLETION BULK WATER SUPPLY (Multi yr) 500,000 50,000 1,500,000 1,000,000 3,000,000
UPGRADING MORGENZON STW (Multi yr) 500,000 50,000 700,000 800,000 2,000,000
  11,872,432 8,497,432 12,600,000 5,400,000 29,872,432
           
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LEKWA LOCAL MUNICIPALITY Upgrading of WTW to a
37.5ML Capacity Ph1 PMG note photos have
been removed

• Project Amount R9.0M
• Mzala Consulting Eng.
• Jonker Construction

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MKHONDO LOCAL MUNICIPALITY DIRECT ALLOCATIONS
  Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
MKHONDO LM  
PIET RETIEF WATER TREATMENT PLANT 1,189,119 0 1,189,119
PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 1,432,194 900,000 700,000 2,132,194
INSTALL WATERBORNE TOILETS ETHANDAKUKHANYA 2,335,563 1,853,660 2,335,563
INSTALL WATERMETERS WARDS 1 2 1,886,777 1,886,777 1,886,777
PIET RETIEF STW INCREASE CAPACITY (Multi yr) 7,926,829 4,899,221 1,158,078 500,000 9,584,907
COMPLETION WATER NETW ETHANDAKUKHANYA X5 967,239 967,239 967,239
PROVISION OF VIP'S (Multi yr) 1,238,764 1,108,764 820,000 2,058,764
DRIEFONTEIN WTW INCREASE CAPACITY (Multi yr) 4,000,000 1,900,000 2,500,000 1,000,000 7,500,000
INTERNAL WATER NETWORK - WARD 6 (Multi yr) 600,000 600,000 1,437,000 2,037,000
INSTALLATION TOILETS - WARD 14 (Multi yr) 2,400,000 3,201,922 5,601,922
MKHONDO COMMUNITY HALL 1,758,550 400,000 1,758,550
  23,335,035 14,515,661 9,015,078 4,701,922 37,052,035
           
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MKHONDO LOCAL MUNICIPALITY Piet Retief Water
Treatment Plant - Ph 3 PMG note photos have
been removed

• Project Amount R20.0M
• Kwezi V3 Engineers
• Sandu/Swans Contractors

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MSUKALIGWA LOCAL MUNICIPALITY DIRECT ALLOCATIONS
  Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
MSUKALIGWA LM  
WARBURTON WATER NETW PHASE 2 550,936 550,936 550,936
UPGRADE WATER PURIFICATION PLANT 258,254 258,254 258,254
UPGRADE WATER PURIFICATION PLANT EXT 32 5,872,372 4,149,890 5,872,372
SUPPLY WATER/ REPAIR WATER NETWORK 119,261 119,261 119,261
RURAL WATER SUPPLY MSUKALIGWA 1,017,761 1,017,761 1,017,761
DEDICATED SEWER SUPPLY LINE HOUSING 500,000 500,000 500,000
REPLACEMENT HOUSE CONN/METERS (Multi yr) 1,683,000 900,000 1,852,000 3,535,000
WATER SUPPLY 5 INFORMAL SETTLEMENTS 750,000 400,000 750,000
ELEVATED TANK SUPPLY LINE HOUSEHOLDS 1,071,055 850,000 1,071,055
CONSTRUCT NEW WATER TOWER CHRISSIESMEER (Multi yr) 1,400,000 500,000 1,029,212 2,429,212
DEDICATED WATER SEWER SUPPLY 755,000 524,540 755,000
UPGRADE EXISTING PUMPSTATION BREYTEN 500,000 500,000 500,000
NGANGA SEWER RETICULATION (Multi yr) 1,941,058 1,000,000 815,492 2,756,550
BOREHOLES HANDPUMPS RURAL (Multi yr) 1,300,000 650,000 892,956 2,192,956
SHEEPMOOR PROV OF EXTERNAL TOILETS (Multi yr) 733,680 650,000 964,488 1,698,168
CONSTRUCT RAW WATER PUMPS- JER (Multi yr) 500,000 50,000 450,000 50,000 1,000,000
CONSTRUCT 20KM PIPELINE SHEEPMOOR (Multi yr) 500,000 50,000 650,000 2,850,000 4,000,000
OUTFALL SEWER LINES WESSELTON (Multi yr) 500,000 50,000 1,100,000 1,900,000 3,500,000
NEW 5ML SEWER TREATMENT PLANT (Multi yr) 500,000 50,000 400,000 1,600,000 2,500,000
PROVISION OF VIP'S (Multi yr) 300,000 50,000 700,000 1,000,000
  20,752,377 12,820,642 8,854,148 6,400,000 36,006,525
           
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MSUKALIGWA LOCAL MUNICIPALITY Upgrading of
Water Purification Plant Ext 32,33 - Ph 2
PMG note photos have been removed

• Project Amount R5.8M
• Afri-Infra Consulting Eng.
• Bishop Construction

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PIXLEY KA SEME LOCAL MUNICIPALITY DIRECT
ALLOCATIONS
  Budget Project Exp Budget Budget Total
PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost
PIXLEY KA SEME LM  
PROVISION OF VIP TOILETS (Multi yr) 2,302,891 2,152,891 700,000 3,002,891
CONSTR OF ROADS AMERSFOORT/EZAMOKUHLE 44,438 44,438 44,438
CONSTR OF ROADS DAGGAKRAAL 4,038 4,038 4,038
EXT/UPGRADING WATER TREATMENT PLAN (Multi yr) 2,364,106 1,364,106 5,198,694 2,000,000 9,562,800
UPGRADING BULK SUPPLY WATER 77,486 55,271 77,486
UPGRADING SEWER RETICULATION/TREATMENT PL ANT (Multi yr) 1,550,000 250,000 1,364,216 2,914,216
UPGRADING WEST STR/COMPL SOUTH 270,735 270,735 270,735
UPGRADE WATER NETWORK (Multi yr) 750,000 750,000 750,000 1,500,000
INSTALLATION WATER NETWORK (Multi yr) 883,502 883,502 616,498 1,500,000
CONSTRUCTION WATER RETICULATION NETWORK (Multi yr) 1,202,699 602,700 1,797,301 3,000,000
EXTENSION EZAMOKUHLE SEWER RETICULATION (Multi yr) 785,437 785,437 214,563 1,000,000
CONSTRUCTION BULK SUPPLY LINE VOLKSRUST (Multi yr) 500,000 50,000 1,200,000 1,300,000 3,000,000
UPGRADE ASBESTOS BULK SUPPLY LINE (Multi yr) 500,000 50,000 1,000,000 1,500,000 3,000,000
CONSTRUCTION 1.5ML RESERV EZAMOKUHLE (Multi yr) 500,000 50,000 957,211 1,542,789 3,000,000
UPGRADE WATER BULK ASBESTOS SUPPLY LINE (Multi yr) 500,000 50,000 600,000 900,000 2,000,000
PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 300,000 50,000 700,000 1,000,000
  12,535,332 7,413,118 15,098,483 7,242,789 34,876,604
           
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PIXLEY KA SEME LOCAL MUNICIPALITYExtension
Upgrading of Water Treatment Plant Ph 2
(Volksrust) PMG note photos have been
removed

• Project Amount R9.5M
• Utility Consulting Eng.
• LLJ Civils

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FACTORS CAUSING DELAYS IN MULTI YEAR PROJECT
IMPLIMENTATION

• Compliance with NEMA
• Township establishment restrictions
• Project life cycle confined by MFMA
• Project life cycle confined by investigation and
  design parameters
• Long procurement processes

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SPENDING AND PERFORMANCE CONDITIONAL GRANTS
CONDITIONAL GRANTS Budgeted Actual Actual Spent Projected
Income Received 30 April '08 Spent 30 Jun '08 Projected
WATER SERVICES OPERATING TRANSFER SUBSIDY GRANT        
Current Year 770,000 770,000 0 0 770,000 100
TOTAL 770,001 770,001 0 0 770,001 100
FMG        
Previoius Financial Year 348,150 348,150        
Current Year 500,000 500,000        
TOTAL 848,150 848,150 466,395 55.0 848,150 100
MSIG        
Prevous Financial Year 1,219,766 1,219,766        
Current Year 1,000,000 1,000,000        
TOTAL 2,219,766 2,219,766 966,486 43.5 2,219,766 100
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BUDGET INFORMATION CAPITAL EXPENDITURE
  Budget Adjustment Budget Actual of Projected of
EXPENDITURE BY TYPE 2007/2008 2007/2008 30 Apr '08 Budget 30 Jun '08 Budget
  (R'000) (R'000) (R'000) (75) (R'000) (83,3)
Capital Expenditure            
New Offices Alterations 8,000 15,000 2,101 14.0 13,500 90.0
Construction Vehicles Equipment 8,000 8,000 6,454 80.7 7,900 98.8
Office Furniture Equipment 100 250 202 80.8 250 100.0
Total Capital Expenditure 16,100 23,250 8,757 37.7 21,650 93.1
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COMPLIANCE WITH MUNICIPAL FINANCE MANAGEMENT ACT

• The municipality fully complies to the
  stipulations, regulations and circulars relating
  to the following chapters of the Act.
• Chapter 3 Municipal Revenue
• Chapter 4 Municipal Budgets
• Chapter 5 Co-operative Governance
• Chapter 6 Debt
• Chapter 7 Responsibilities of Mayors
• Chapter 8 Responsibilities of Municipal
  Officials
• Chapter 9 Municipal Budget and Treasury Offices
• Chapter 11 Goods and Services
• The Council do not have any entities as regulated
  by Chapter 10

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COMPLIANCE WITH MUNICIPAL FINANCE MANAGEMENT ACT

• In complying to these chapters, the municipality
• Compiled, approved and annually reviews a
  Register of Delegated Powers and Functions.
• Provides assistance to personnel to improve
  competency levels
• Created Budget and Treasury offices within the
  Finances department under control of the CFO
• Created a Supply Chain Management Unit within the
  Finance Department under control of the CFO.
• Established a three-part Bid Committee System
• Fully compliant with promulgated Supply Chain
  Management Regulations.

28
COMPLIANCE WITH MUNICIPAL FINANCE MANAGEMENT ACT

• Conformity exists within the following
  stipulations on report and reportable matters
• Section 8 to 11 Reports to National Treasury
  and the Auditor General on primary bank account
  or changes to bank account.
• Section 13 (3) and (4) Bank or investment
  balances to the Auditor- General.
• Section 52 (d) A quarterly budget and financial
  report by Executive Mayor to Council.

29
COMPLIANCE WITH MUNICIPAL FINANCE MANAGEMENT ACT

• Conformity exist within the following
  stipulations on reports and reportable matters
  (continue)
• Section 71 Monthly budget statements to
  Provincial and National Treasuries.
• Section 72 Mid-year budget and performance
  assessment by Accounting Officer.
• Section 75 Prescribed information placed on
  official website.
• Section 121 and 127 Annual Report that
  includes
• The annual financial statements
• The annual performance report (Sect 46 of MSA)
• The Auditor-General report (Sect 45 (b) of MSA)

30
POLICIES AND BY-LAWS

• The Municipal Council considered, approved and
  published the following policies as contained in
  the Municipal Code
• Financial Policies
• Budget
• Supply Chain Management
• Fixed Asset
• Fraud Prevention Plan
• Cash Management and Investment
• Risk Management
• All policies are reviewed from time to time as
  required.

31
RELATIONS AND COLLABORATION WITH NATIONAL AND
PROVINCIAL DEPARTMENTS

• CFO serves on
• SALGA Finance Committee.
• CFOs Forum within Gert Sibande District as
  Chairperson.
• Provincial MUNIMEC Forum as Provincial Treasurer.
• CFO participates in
• Annual SALGA Budget week
• Provincial IMFO branch.
• CFO provides information
• On returns of Provincial and National Treasury
• On returns of the Department of Provincial and
  Local Government
• On request by the Provincial Local Government and
  Housing
• National Department of Statistics
• Delegations from other municipalities regularly
  received and briefed on best financial practices.

32
MUNICIPALITIES RELATIONS WITH NATIONAL AND
PROVINCIAL DEPARTMENTS

• The electronic interaction with National and
  Provincial Departments on sharing of statistics
  for oversight purposes is working satisfactorily.
• The SCM training provided by National Treasury
  has been beneficial to all Municipalities.

33
MUNICIPALITIES RELATIONS WITH NATIONAL AND
PROVINCIAL DEPARTMENT
FORUMS CURRENTLY BEING HELD AT DISTRICT LEVEL-

• MUNIMEC FORUM EXECUTIVE MAYORS FORUM
• MUNICIPAL MANAGERS FORUM CHIEF FINANCIAL
  OFFICERS FORUM
• TECHNICAL MANAGERS FORUM CORPORATE SERVICES/ HR
  FORUM
• DISTRICT COMMUNICATION FORUM HIV/ AIDS COUNCIL
• IDP REPRESENTATIVE FORUM PREMIERS CO-ORDINATING
  FORUM

INTERNAL DISTRICT / LM FORUMS

• Decisions taken at other supporting Departmental
  forums are being relayed to Municipal Managers
  Forum for recommendation and implementation.

EXTERNAL DISTRICT / LM FORUMS

• These assist District/ LMs to ensure consistency
  of working relationships within the GSDMs area
  of jurisdiction.

34
CAPACITY CONSTRAINTS - CHALLENGES

• Grant income is a predetermined amount which can
  not be enhanced, while actual levy income could
  have exceeded budgeted amount.
• National Treasury guidelines limited the year on
  year increase at 7.
• Large numbers of local people moved from Rural /
  farming areas to urban areas.
• This situation resulted in services being unable
  to cope with demand resulting in huge informal
  settlements with poor services.
• Unfunded mandates With the current Government
  initiatives reform Municipalities are faced
  with taking over services without adequate
  funding being awarded e.g. Health Services.

35
CAPACITY STRENGTHS

• SKILLS ASSESSMENT IN GSDM
• Technical expertise is not viewed as a constraint
  as this municipality has ten qualified
  Engineering Technicians.
• There is however a gap between the existing
  knowledge of technicians and that specifically
  required by the municipality.
• CAPACITY BUILDING SENIOR OFFICIALS COUNCILLORS
• - Donor Funding of approx R10m Agreement to be
  signed with Canadian
• International Development Agency (CIDA).
  
• - Council currently embarking on training of
  Senior Officials Councillors of the
• LMs and GSDM.

36

• CAPACITY STRENGTHS
• Total budgeted managerial positions 29
• Total occupied positions 20 (69)
• Vacant positions 9 (31)

• STATUTORY APPOINTMENTS
• Section 57 MM, CFO, Executive Directors
  Municipal Infrastructure Service, Corporate
  Services, Office of the Mayor.
• Performance agreements signed

• INTERNAL AUDITORS Function is outsourced /
  finalising permanent employment
• SUPPLY CHAIN MANAGER Position is filled
• DIRECTOR LEGAL Position is filled
• SERVICES
• RISK MANAGEMENT Function outsourced.

37
CAPACITY STRENGTHS
STATUTORY APPOINTMENTS CONT
Manager LED - 1 Acting position Manager WSP -
Position Filled

• Action Taken by GSDM
• Capacity building to enhance better skills and
  retain skills.
• High Level Training
• Universities Engineering(3), Finance (4),
  Agriculture (1) 8
• Universities of Technology Engineering(7),
  Finance (4), Agriculture (1) 12
• FET College (Artisan Supervisors) Plumbing,
  Masonry, Electrical, Building 20
• Traffic College Traffic Officers 13

38

• GSDM BURSARY STUDENTS
• PMG note photos have been
  removed

CURRENT STUDENTS AT TERTIARY INSTITUTIONS
39
MUNICIPAL IDP ALIGNMENT TO THE PGDS

• Each of the Provincial Priorities as encapsulated
  in the PGDS are assigned Strategic Thrusts that
  serves as vehicles to ensure envisaged results.
• These Strategic Thrusts constitutes programmes
  that are implemented by the respective
  Departments within the Province with respect to
  functions therein.

40
MUNICIPAL IDP ALIGNMENT TO THE PGDS

• These Provincial Departments programmes
  subsequently constitutes part of the programmes
  and projects within the Municipal IDPs, given the
  focal point of respective Departments in a set
  period.
• Programmes of the respective Provincial
  Departments are also influenced by the issues
  emanating from the Municipal IDPs, which are
  deliberated upon during varying Public
  Participation mechanisms such as IDP Fora, IDP
  Technical Committee and other IGR Structures at
  the disposal of the District.

41
GSDM KPA3
Economic Development
Sustainable Environmental Development
Social Dev Infrastructure
GSDM KPA 3
GSDM KPA 4
MPGDS Priorities
Social Development
Good Governance
GSDM KPA 5
GSDM KPAs 2 6
Human Resource Development
GSDM KPA 1
41
Relationship between GSDMs IDP MPGDS
42
SERVICE DELIVERY MUNICIPAL SUPPORT

• Disaster Management
• Supply equipment vehicles (R3.8m)
• - 7 x Fire fighting vehicles -(Refer to photo
  A)
• - 3 x Sub-Disaster Management Centres (7 LMs)
  (R9m)
• (Mkhondo/ Dipaleseng/Albert Luthuli)
  -(Planning stage)
• Road Storm water Support
• - Supply of equipment vehicles (R23m)
• - 7 x Graders - (Refer to photo B)
• - 7 x Tripper Trucks - (Refer to photo C)
• - 7 x Back actors - (Refer to photo D)
• - 7 x Front End Loaders
• Community Participation (7 LMs)
• - Supply equipment vehicles (R1m)
• - 7 x Light Duty Vehicles
• - 115 Loud hailers (For each ward in the 7
  LMs)

43
PHOTO A FIRE ENGINES PMG note photos have
been removed
PHOTO B GRADERS PMG note photos have been
removed
PHOTO C TIPPER TRUCKS PMG note photos have
been removed
PHOTO D BACKACTORS PMG note photos have
been removed
43
44
SERVICE DELIVERY

• Refurbishment of 60 Bulk Water and Sanitation
  Plants within GSDM area of jurisdiction - (SLA
  negotiations with the LMs)
• The GSDM has started with the determination of
  the status quo (Assessment) in relation to the
  needs and functionality of bulk infrastructure
  especially that of the purification plants
  situated in the seven Local Municipalities in the
  District. This will give a good indication of the
  funding required for the refurbishment as well as
  the operation and maintenance cost of all the
  plants situated within the Districts
  jurisdictional area.
• GIS Data Cleansing
• The benefit of the district wide GIS and the data
  cleansing project will assist GSDM and its family
  of LMs to plan and manage development and
  revenue collection more efficiently and
  effectively.

45
ESTIMATED BACKLOG
SERVICE DELIVERY
Municipality No of household without Water of Total in relation to District Backlog No of household without Sanitation of Total in relation to District Backlog Estimated Rural Water Sanitation Backlog
Albert Luthuli 21,537 26 40,403 42 61,940
Msukaligwa 1,866 2 4,216 4 6,083
Mkhondo 7,812 9 14,797 15 22,609
Pixley Ka Seme 10,299 12 10,906 11 21,205
Lekwa 16,946 20 14,975 16 31,921
Dipaleseng 15,129 18 2,562 3 17,691
Govan Mbeki 10,088 12 8,047 8 18,135
GSDM 83,677 95,906 179,584
46
SERVICE DELIVERY
Summary of Funding Requirements
Financial Year GSDM Funding Secured MIG Funding Secured Total Funding Secured Funding Required Shortfall

2007/08 R 90,931,004.00 R 41,433,646.50 R 132,364,650.50 R 132,364,650.50 R 0.00

2008/09 R 92,500,000.00 R 30,801,110.50 R 123,301,110.50 R 123,301,110.50 R 0.00

2009/10 R 0.00 R 18,573,611.00 R 18,573,611.00 R 688,357,292.67 R 669,783,681.67

2010/11 R 0.00 R 14,304,611.00 R 14,304,611.00 R 340,315,115.67 R 326,010,504.67

Future R 0.00 R 172,527,171.67 R 172,527,171.67

Sub - Totals R 183,431,004.00 R 105,112,979.00
Totals R 288,543,983.00 R 1,456,865,341.00 R 1,168,321,358.00
ADD. PROJECTS REQUIRED I.T.O PCF RESOLUTION- 13 APRIL 2007 Water Loss Demand Management Study High priority interventions in terms of Water loss Demand Management Study
TOTAL R 27,563,000 R 57,305,000
WATER SANITATION
Total Households within the GDM (STATS SA) 242,936 242,936
Percentage of total Households without services 24 37
47
SERVICE DELIVERY
Estimated funding needed to ensure sustainable
Operations Maintenance of Bulk Water
Sanitation services
MUNICIPALITY POPULATION POP. Est. cost M O
  Est. April 2007 Total
  (Stats SA)    
ALBERT LUTHULI 201 861 20.48 14 805 284
DIPALESENG 41 150 4.17 3 014 553
GOVAN MBEKI 239 395 24.29 17 559 588
LEKWA 113 285 11.49 8 306 285
MKHONDO 163 456 16.58 11 985 919
MSUKALIGWA 137 822 13.98 10 106 342
PIXLEY KA SEME 88 663 9.00 6 506 229
TOTALS 985 632 100.00 72 291 428
47
48
CONCLUSION / REMARKS

• Already established partnerships are with Ugu DM
  and Mhlathuze Water Amanzi.
• Need to enhance the capacity constraints by
  exploring areas where shared services approach
  may benefit delinquent municipalities.
• Attraction of professional staff with relevant
  expertise and appropriate remuneration levels.
• Service Level Agreements should be promoted with
  constituent municipalities.
• Note be taken that GSDM is providing funding and
  support to over 60 potential students within the
  region.
• The GSDM is currently in a process of forging a
  partnership with the Traditional Leaders to
  enhance improve Co-operative Governance in
  order for municipalities, in finalising their
  compliance with the Property Rates Act, will
  receive the co-operation of the Traditional
  Leaders.

49
Re a leboga Thank you Siyabonga
Striving to Excel in Good Governance Quality
Infrastructure