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

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
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

4. 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

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. 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.

7. 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 citizens while Thusong Centres reached 1,2 million

8. 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

10. 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 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

11. 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.

12. 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.

14. 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:

15. 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.

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

17. 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,

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