1. Consolidated Annual Municipal Performance Report (Section 47) /15 The Select Committee on Co-operative Governance and Traditional Affairs 1 November 2016

2. 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

3. 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
StatS SA 2011 Census data
The 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
Only 8 municipalities provided feedback and comments

4. Structure of the report
The report is structured as follows:
Background and Purpose of the Report;
Local Government Legislative Framework
Municipal Annual Report Process;
Methodology followed in compiling the report;
Demographic and socio-economic data;
Analysis of municipal performance for the 2014/2015 financial year; and
Provincial initiatives which support municipalities

5. 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.

6. Analysis of Municipal Performance for 2014/15
Municipal Manager and Section 56 posts
A total of 151 were filled in the province; 27 Municipal Managers and 124 Senior Managers
7,2 % vacancy –
Acting arrangements were in place for the11 vacant posts;
143 performance agreements were signed and submitted to MEC for Local Government;
21 women appointed at senior management level in 19 municipalities, which is a slight increase compared to the previous year

7. Analysis of Municipal Performance for 2014/15
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 25 municipalities,
Increase as compared to 17 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 citizens while Thusong Centres reached 1,2 million

8. Analysis of Municipal Performance for 2014/15
Ward Committees
Improvement in ward functionality from 354 in 2013/14 to 386 in 2014/15
Community Work Programme (CWP)
Community Work Programme implemented in 13 municipalities, increase compared to 11 in previous year
6890 work opportunities created in 2014/15 compared to in 2013/14
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

10. Analysis of Municipal Performance for 2014/15
Compliance Monitoring
Adoption of final IDPs
30 municipalities in the Province adopted their final IDPs
Submission of draft budget
Western Cape municipalities have continued to retain the positive trend of approving and submitting the draft annual budget on time
Submission of SDBIP
All 30 municipalities submitted their SDBIP’s- Oudtshoorn only submitted draft SDBIP
Submission of Mid-year assessment report
All Western Cape municipalities have complied in submitting their Mid-Year assessment reports for 2014/15 financial year to the Provincial Treasury.
Submission of Annual Financial Statements
All Western Cape municipalities have complied in submitting their Annual Financial Statements for 2014/15 financial year to the Auditor General.
Tabling of Annual Reports
All 30 municipalities tabled their Annual Reports

11. Analysis of Municipal Performance for 2014/15
Compliance Monitoring
Adoption of oversight reports
28 municipalities that tabled their Annual Reports have adopted the oversight report;
24 municipalities approved their annual report without reservation;
Saldanha Bay, Knysna and Eden District Municipalities approved with reservations; and
Witzenberg, Oudtshoorn, Bitou and Central Karoo District did not provide information
Provision of Service Delivery
95% of households are serviced with water;
94% of households are serviced with electricity;
94% of households are serviced with sanitation; and
94% 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.

12. Analysis of Municipal Performance for 2014/15
Municipal Infrastructure Grant
MIG expenditure reached 97,4% at the end of June 2015

14. Analysis of Municipal Performance for 2013/14 – 2014/2015
Performance against budget
The total operating revenue budget amounted to R39,8 billion in 2013/14 while R41,4 billion in 2014/15; and
Total operating expenditure budget amounted to R37,9 billion in 2013/14 while R38,2 billion in 2014/15.
Majority of municipalities were able to increase their operating revenue as compared to the 2013/2014 financial year.
Capital expenditure
In 2013/14, Capex amounted to R6,39 billion or 81.1 per cent of the adjusted budgeted amount of R7,8 billion.
In 2014/15, Capex amounted to R6.81 billion or 79.5 per cent of the adjusted budgeted amount of R 8.56 billion.
Debt Management
Total debtors were 8,42 billion; and
Outstanding debtors in respect of water services are the highest at R2.45 billion.
Household debt to municipalities continue to grow and constitute the greatest (77.57% or R6  ) proportion of debt owed to municipalities.

15. Analysis of Municipal Performance for 2013/14 – 2014/2015
Audit Outcomes for last five years

16. 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,

17. Summary Municipalities are under pressure to improve service delivery
Electricity provision a major challenge
Drought- Water shortages
Consultation with communities
Stakeholder Governance challenges