Consolidated Annual Municipal Performance Report (Section 47) 2013/14 1 November 2016 The Select Committee on Co-operative Governance and Traditional Affairs

Compilation of Section 47 report Section 47 Process Submission of financial statements by municipalities: 31 August Completion of Audit process by 30 November Completion of draft municipal annual report by 31 December Tabling to Council by 31 January (Make public after tabling for comments) After taking into account public comments and Council adoption of oversight report by 31 March (submit copy to AG, PT, MEC and provincial legislature) Compilation of Section 47 report

Methodology followed Compilation of the report involves various data gathering exercises Sources: Municipal Annual Reports/Annual Financial Statements Internal & External Information (Sector Departments) Departmental reports i.e. Annual Report, Basic Services report, Political Composition PERO & MERO Department of Human Settlements Annual Report 2013/14 Provincial Treasury Database National Treasury Quarterly report on MFMA monitoring Auditor General Report Draft 2: Submitted to municipalities for comments and inputs 20 responses came back

Structure of the report The report is structured in three parts: Part A: Introduction Part B: Analysis of municipal performance for 2013/14 FY Part C: Provincial Initiatives in supporting municipalities

Overview The Municipal Systems Act no 32 of 2000, Section 47, mandates the MEC for Local Government to annually compile and submit a consolidated report on the performance of municipalities; The purpose of the report is to account to the citizens in the province on the performance of municipalities and the status of service delivery in the Western Cape; and It upholds the principles of accountability and transparency in local government.

Part B: Analysis of Municipal Performance for 2013/14 Municipal Manager and Section 56 posts A total of 149 out of 158 posts were filled in the province; 6% vacancy – improvement from 9% in previous year. Acting arrangements were in place for the 9 vacant posts; All performance agreements were signed and submitted to MEC for Local Government; 26 women appointed at senior management level in 19 municipalities, which is a slight increase compared to the previous financial year.

Part B: Analysis of Municipal Performance for 2013/14 Skills development Workplace skills plan submitted by all municipalities to LGSETA Various capacity and skills development initiatives were provided with municipalities spending their skills budget Performance Management Systems (PMS) Performance Management Systems (PMS) frameworks were adopted by all councils; and PMS cascaded in 17 municipalities, Increase as compared to 7 of the previous year. Thusong Services New Thusong Centres established in the following municipalities: Mossel Bay; Cape Agulhas; Kannaland; and Theewaterskloof. Lease agreements were concluded with various government departments Thusong mobiles reached 31 440 citizens while Thusong Centres reached 1,2 million

Part B: Analysis of Municipal Performance for 2013/14 Ward Committees Out of 387 wards only 354 were functional 1 ward in Stellenbosch was not established Community Work Programme (CWP) Community Work Programme implemented in 13 municipalities, increase compared to 11 in previous year 7 748 work opportunities created Partnerships established with municipalities for the implementation of the programme Anti-corruption and Fraud Prevention plans 26 municipalities had Anti-corruption and fraud prevention plans adopted Bitou, Oudtshoorn, Prince Albert and Beaufort West had draft plans 13 municipalities had ethics and anti-corruption committee established

Part B: Analysis of Municipal Performance for 2013/14 Compliance Monitoring Adoption of final IDPs 29 municipalities in the Province adopted their final IDPs before 31 May 2013. Oudtshoorn Municipality did not comply with the Act. Submission of draft budget Western Cape municipalities have continued to retain the positive trend of approving and submitting the draft annual budget on time with the exception of Oudtshoorn Municipality. Submission of SDBIP 29 Municipalities submitted their SDBIPs – Oudtshoorn did not comply Submission of Mid-year assessment report All Western Cape municipalities have complied in submitting their Mid-Year assessment reports for 2013/14 financial year to the Provincial Treasury. Submission of Annual Financial Statements All Western Cape municipalities have complied in submitting their Annual Financial Statements for 2013/14 financial year to the Auditor General. Tabling of Annual Reports 27 of 30 municipalities tabled their draft annual reports on time Oudtshoorn, Beaufort West and Kannaland did not table on time

Part B: Analysis of Municipal Performance for 2013/14 Compliance Monitoring Adoption of oversight reports 28 municipalities that tabled their Annual Reports have adopted the oversight report; 25 municipalities approved their annual report without reservation; Saldanha Bay, Stellenbosch and Eden District Municipalities approved with reservations; and Kannaland and Oudtshoorn did not provide the information. Provision of Service Delivery 98% of households are serviced with water; 98% of households are serviced with electricity; 98% of households are serviced with sanitation; and 98% of households are serviced with refuse removal on site. Free basic Services All municipalities are providing FBS to their indigent households Generally municipalities provides between 6kl to 10 kl of free basic water and up to 100 kWh of free basic electricity.

Part B: Analysis of Municipal Performance for 2013/14 Municipal Infrastructure Grant MIG expenditure reached 97,8% at the end of June 2014 The decline in spending was due to the delays experienced in the construction of the Vredendal North sports facility project in Matzikama and the late transfer of funds to Bergrivier Municipality which hindered the Municipalities from spending the funds within a short period.

Part B: Analysis of Municipal Performance for 2013/14 Development of Local Economic Development Strategies All municipalities except Overberg Municipality reviewed and adopted LED strategies The following EPWP work opportunities were created:

Part B: Analysis of Municipal Performance for 2013/14 Performance against budget The total operating revenue budget amounted to R39,8 billion; and Total operating expenditure budget amounted to R37,9 billion. Capital expenditure Capital expenditure for the period ended June 2013 amounted to R6,39 billion or 81.1 per cent of the adjusted budgeted amount of R7,8 billion. Debt Management Total debtors were 8,42 billion; and Water service debtors were the highest at 2,45 billion.

Part B: Analysis of Municipal Performance for 2013/14 Audit Outcomes for last five years

Part C: Provincial initiatives in supporting municipalities Municipal Governance Review and Outlook (MGRO) Focus on clean governance and improvement of audit outcomes in municipalities; Active assistance of municipalities in raising the levels of their governance; Intention is to develop a consolidated Municipal Governance Action Plan (MGAP) incorporating strategies from municipalities, PT and DLG. Provincial Treasury assistance: PDO training; SCM interventions; and Asset management. Department of Local Government assistance: Municipal Governance assistance; Municipal support and capacity building; and Municipal performance monitoring workshops,

Summary Improvement in Governance Challenges with planning and budgeting Financial Sustainability challenges Performance Management –challenges Maintenance of infrastructure a huge challenge Public Participation challenges