revenue collection 100% 98% 99,22% after write-offs have been taken into consideration and 93.
traffic fine collection rate 75% 60% 46,47% The 46,47% refers to the projected estimated income. A Turnaround Strategy has been developed to improve traffic collection rate.
Review of the SCM Policy Policy reviewed Annually Target met Administratively the target was achieved, but the policy could not be approved as the consultative process could not be finalised.
Improved turnaround time for procurement processes (tender advertisement evaluation and adjudication) relating to the directorate N/A 12 weeks 17 weeks 101 tenders were finalized in the quarter of which 56 took longer than 12 weeks to finalize. These were as a result of annual tenders for which directorates started advertising in December/January already so as to provide them with sufficient time to finalize the tenders before the end of the financial year. The actual of 17 was derived at by dividing 120 days/7days. The reporting framework does not allow for accurate comparison as it focuses on the number of tenders exceeding 60, 90 and 120 days.
Credit rating of aa3.za to be maintained Maintained aa3.za rating Aa3.
Implementation of a capital budget priority rating system Draft system in place By March 2010 Capital Budget Priority System is in place A capital budget priority rating system is in place whereby all projects are linked to the 5 IDP priorities. The Financial Services Model then determines the affordability limits. The individual Directorates then, in consultation with their portfolio councillors, need to rightsize their budgets to fall within the affordability limits. Due to the consultative nature, it has not been deemed necessary to develop the system any further.
of the Municipality's capital budget spent on capital projects identified in terms of IDP 96.60% 95% 80,14% The underperformance was due to directorates such as Infrastructure & Engineering, Public Health, EDRS, and Special Programmes Directorate.
2010/11 financial year. The expenditure levels remain the same and the bulk of the unspent funding will be spent in the initial stages of the 2010/11 financial year.
expenditure Operating (total) 95% 92% 95% 108.
of workplace skills and training budget spent 87% 95% 79% The organisation spent 79% of its training budget as at year end.
Cost coverage N/A 1 month 0.
Creditors to be paid within 30 days of date of invoice 30 days 30 days 25 days days Legal compliance requires that creditors be paid within 30 days of receipt of the invoice and not 30 days from date of invoice -paying within 30 days of receipt of invoice is more prudent in preserving the cost coverage of council-a mitigating circumstance. The target must be adjusted accordingly to be in line with the MFMA.
Towards the end of the review period, the Municipality started to experience a financial challenge, caused by a congruence of factors, amongst other things, a cash flow challenge. The Municipality is development a turnaround strategy to address these challenges.
2008/09 98% 91.7% before write-offs are taken into consideration, and 100.
2009/10 98% 99,22% after write-offs have been taken into consideration and 93.
The actual capital spending for the 2009/10 financial year amounted to R2 333 696 684 compared to a budget of R2 912 089 420, resulting in a 80,14% spending rate.
The Audited Financial Statements of the Municipality are contained in Annexure "B".
Actual income for the year amounted to R6 125 845 669, compared to the budget of R5 303 241 260. Actual expenditure for the year amounted to R5 659 559 022, compared to the budget of R5 208 008 400.
Information on grants and subsidies received by the Municipality over the review period is reflected in the table below.
This Grant is received from Provincial Government and is used for the construction of low cost housing.
Conditions still to be met -transferred to liabilities 0 2.
This grant is received from the Provincial Government and used in the Health function.
Conditions still to be met -transferred to liabilities 0 3.
In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community members.
Conditions still to be met -transferred to liabilities 0 4.
This grant is used in the financial reform project under the guidance of National Treasury.
Conditions still to be met -transferred to liabilities 0 5.
This Grant is used in the provision of books and services in the municipality's libraries.
Balance unspent at beginning of year Current year receipts Funding of Capital Projects Conditions met -transferred to revenue Conditions still to be met -transferred to liabilities 791,422 50,199 841,621 6.
This Subsidy is used for the development of Small businesses in the Metropolitan Area.
Conditions still to be met -transferred to liabilities 192,500 7.
This Grant was received from the Department of Provincial and Local Government as an initiative to improve municipal systems relating to the collection of debt.
Conditions still to be met -transferred to liabilities 84,492 8. Disaster Management Grant a This grant is being used for the establishment of a Disaster Management Centre and related infrastructure.
Conditions still to be met -transferred to liabilities 0 b This Grant is used to provide aid to those in need when disasters arise in the metropolitan area.
Conditions still to be met -transferred to liabilities 0 9.
This Grant is used for the provision of Infrastructure in the metropolitan area.
Conditions still to be met -transferred to liabilities 495,991 10.
This Grant is used to promote Economic development.
Conditions still to be met -transferred to liabilities 28,229 11.
Conditions still to be met -transferred to liabilities 7,474,054 12.
This Grant is used to promote Economic development in the Uitenhage and Despatch Development Initiative.
Conditions still to be met -transferred to liabilities 3,934,828 13.
This Grant is used for capacity building of employees in the municipality's Housing and Land Directorate.
Conditions still to be met -transferred to liabilities 3,716,666 14.
Conditions still to be met -transferred to liabilities 0 15.
This Grant is used to fund the building of the 2010 Soccer World Cup Stadium.
Conditions still to be met -transferred to liabilities 33,988,642 16.
This Grant is used for Youth Development.
Conditions still to be met -transferred to liabilities 53,623 17.
Conditions still to be met -transferred to liabilities 0 18.
This Grant is used for HIV / AIDS projects.
Conditions still to be met -transferred to liabilities 0 19.
Conditions still to be met -transferred to liabilities 0 20.
This Grant is received from National Treasury for upgrading of infrastructure to support the 2010 World Cup Stadium.
Conditions still to be met -transferred to liabilities 0 21.
This Grant is used to fund electricity connections and upon application also the upgrade of the Electricity infrastructure in order to install these electricity connections.
Conditions still to be met -transferred to liabilities 0 22.
This Grant is received from the European Union to fund various authorised developmental projects.
Conditions still to be met -transferred to liabilities 24,292,924 23.
Conditions still to be met -transferred to liabilities 21,823,720 24. Other Grants These are grants received by the municipality for various purposes.
Balance unspent at beginning of year Current year receipts Funding of Operating Projects National & Provincial Government Capex Funding Debtor Raised Conditions met -transferred to revenue Conditions still to be met -transferred to liabilities 134,813,306 122,279,388 -70,631,358 -91,813,442 89,152,363 -65,438,648 118,361,609 25.
The Municipality entered into no long-term contracts during the review period.
For annual performance information with regard to financial viability, please refer to page 134.
Additional performance information is reflected in the table below.
1 Percentage of expenditure on capital budget 2 912 089 (95%) 2 333 696 80.
2 Salary budget as a percentage of the total operating budget 1 485 352 (29.
3 Total actual trade creditors as a percentage of total actual revenue 1 063 443 (20%) 1 612 559 26.
5 Rate of municipal debt reduction 23 537 1.
The arrears in property rates and services charges over the review period are reflected in the table below.
Global economic meltdown.
Huge maintenance and service delivery backlogs.
Depletion of the Capital Replacement Reserve.
Coega IDZ infrastructure requirements.
Maintaining collection rates at targeted levels.
Financial affordability of external loan financing.
Unfunded mandates, especially around provincial road construction, lowincome housing delivery, health and libraries.
Non-gazetting of budgets by provincial departments.
Escalating cost of electricity.
Integrated political intervention to deal with the aforementioned intergovernmental challenges.
Full identification and mobilisation of all resources at the disposal of the Municipality to promote service delivery.
Review of credit control policies and revival of an integrated campaign for payment of municipal services.
Campaign to register ATTP qualifying households.
The need to enhance the Municipality's revenue base.