Ensure a continuous and adequate supply of suitable quality fresh produce at reasonable prices, (Food Security) Ensure a continuous and adequate supply of suitable quality produce at reasonable prices fresh produce retail market facilities in marginalised areas with the proviso that products sold are from JM resilience for all improved and safeguarded Food Security Programme: Ensure a continuous and adequate supply of suitable quality fresh produce at reasonable prices Increase donations to Food Bank Improved quality of life and resilience for all Food security that is both improved and safeguarded Facilitate fresh produce retail market facilities in marginalised areas with the proviso that products sold are from Roll out of 4 units in PDA’s Food Security Programme: Ensure a continuous and adequate supply of suitable quality fresh produce at reasonable prices Introduction of a real time trading information system on mobile and alternative platforms to further streamline transparent price discovery A high performing metropolitan government that proactively contributes to and builds a sustainable, socially inclusive, locally integrated and globally competitive Gauteng City Region Meaningful citizen participation and empowerment Development of a virtual trading option Sector diversification through support for emerging and new sectors and retention of competitive economic sectors Support Implementation of Green Economy interventions Conducive Environment Improve Business Efficiency A high performing metropolitan government that proactively contributes to and builds a sustainable, socially inclusive, locally integrated and globally competitive Gauteng City Region A responsive, accountable, efficient and productive metropolitan government Converting waste to energy Establish processes to separate Organic and non-organic materials and conclusion of at least 1 operating agreement
Facilitating enterprise development and support through capacity development, strategic procurements and access to finance for micro and medium enterprises (SMMEs), including cooperatives Catalyse support and opportunities for BBEE/SMME through creative public/private partnerships Transformation Programme: Ensure greater inclusion of previously disadvantage groups and individuals across the agricultural chain Support Emerging Farmers A high performing metropolitan government that proactively contributes to and builds a sustainable, socially inclusive, locally integrated and globally competitive Gauteng City Region An active and effective citizen focused Global City Region Increase in market share of fresh produce received from emerging farmers Emerging producer support programme intensified Transformation Programme: Ensure greater inclusion of previously disadvantage groups and individuals across the agricultural value chain Support Emerging Market An inclusive, job-intensive, resilient and competitive economy that harnesses the potential of citizens Promotion and support to small businesses Introduce 1 new emerging at and enhance trading opportunities for establishment Transformation Programme: Ensure greater inclusion of previously disadvantage groups and individuals across the agricultural value chain Provide targeted groups with access to commercial and industrial property through the development of vacant land. Provide a resilient, livable, sustainable urban environment - underpinned by infrastructure supportive of a low carbon economy Sustainable and integrated delivery of water, sanitation, energy and waste Increase in market share of fresh produce sold by emerging Agents. Link emerging agents and producers and achieve support for all existing emerging agents from formal agents at
Implementation of skills development and re-skilling programmes that are linked to the needs of the market Develop a City skills strategy, focused on the skills supply/demand chain, first lends to the identification of consolidation of a list of critical scarce skills in the City to guide other initiatives Skills Development Programme: Increased number of beneficiaries reached by skills development initiatives Establish and maintain a training academy Improved quality of life and resilience for all Increased literacy, skills and lifelong learning amongst all our citizens Establish and maintain a training academy in partnership with CoJ Departments and entities. Provision of formal training during 2013/14 Skills Development Programme: Increased number of beneficiaries reached by skills development initiatives Training people over the next 5 years through the EPWP process to become employable in the job market Improved quality of life and resilience for all Reduced poverty and dependency Training people over the next 5 years through the EPWP process to become employable in the job market Intensify EPWP participation at JM The Market of the Future development as captured in the CoJ IDP aims at refining the JM and its systems to full world-class compliant facilities within which previously disadvantaged individuals can fully participate. The strategic objectives are at the following practical outcomes: All the other strategic projects are linked as support projects and programmes to enable the MotF to be activated and operated seamlessly into its new environment from the current and to ensure its long-term sustainability. Joburg Market (JM) will in developing the Market of the Future (MotF) be the first Municipal owned market on the globe to serve according to a new fresh produce trading model acceptable to all categories of clients. The sub programmes within the Market of the Future are an integral part of the economic transformation programme, will enable the following:
Disclosure: The Q1 target was forecasted at R59.3M. The Actual data is R42M. The actual figure is incorporated. 2.5 KPI: Emerging Farmers – Number of Farmers Local Gap Compliant Period Unit of measure Base- line Q1 Q2 Q3 Q4 YTD Target 13/14 No. (Cum) New 0 0 2 5 5 Actual No. (Cum) 0 0 0 Achieved Not Achieved Exceeded Project/programme leader: Charles Park The target is not due for achievement during Q2 Gap – The European Union has a food standard called “EUROGAP”. The need was identified to create a South African standard called “Local GAP”. Especially small-scale farmers will benefit from the standard, as it will enable them to participate in mainstream trading with large corporates and the food services industry.] 2.6 KPI: Food Safety – Number of traceability programmes in place Period Unit of measure Base- line Q1 Q2 Q3 Q4 YTD Target 13/14 No. (Cum) New 0 0 0 1 1 Actual No. (Cum) 0 0 0 Achieved Not Achieved Exceeded Project/programme leader: Craig Pillay The target is not due for achievement during Q2 2.7 KPI: Business Excellence – Market Share in relation to other FPM’S. Project/programme leader: Charles Hamilton
Risk activity report The entity participated in the following risk management activities: DATE PURPOSE VENUE PARTICIPANTS 2013 In-house Operational risk management training Training on JM insurance incidents Training on COID incidents October 2013 COJ: Chief Risk Compliance Officer Forum Finalising Terms Of Reference & accepted proposed changes (MOEs/Departments of CoJ) Metro Centre Municipal Entities & Departments’ Risk Managers November 2013 GRCM Reporting to the Group Risk Committee. Presentations by various departments Thuso house (Shangrilla boardroom) Municipal Entities; Departments Executives October 2013 Annual Insurance Presentation Annual insurance presentation conducted by Sipho Makhanya - (CRO Acting) November 2013 Underwriting Survey Survey of physical risks Conducted by Clive Mortimer appointed by Marsh November 2013 Underwriting Survey (Infrared Services) Survey of electrical installation risks Conducted by Carla de Sena & Service Provider appointed by Marsh and CoJ JRAS and Maintenance; Electrician December 2013 Quarterly Motor Fleet meeting Extensive meeting in motor fleet risk control measures Indwe Risk Services - Park Risk Services; COJ (JRAS); MOEs and Departments Oct-Dec 2013 Cost Recovery Motor Fleet Indwe Risk fully compensated for the loss of the Mercedes Benz Viano. Amount recovered R435,483.60 (market value) JRAS Risk C Dec
Risk Register The updated Risk Register of the entity is depicted in the risk register below: Risk Assessment Ref Objectives Risk Category Risk Back-ground to the risk Impact Risk Current controls Control Re-sidual risk Risk Owner Actions to improve of the risk Action Time scale 1 Food Security Programme: A continuous and adequate supply of suitable quality fresh produce at reasonable prices availed through compliant facilities Financial Cash flow risks Ageing Increasing operational costs; Insufficient revenue collections; Lack of diversified trading options and Abuse of proxy-sales Major 4 Likely 4 Amber 16 Fraud investiga-tions; Internal audit reviews; Agency manage-ment and Other monitoring activities Fair 0.75 Amber 12 4 3 CEO Market of the future project (which was approved) will upon minimise most of the risks COO Aug. 2014 2 Financial Litigation risk to SCM policies; Poor handling of food handling procedures; Insufficient controls Major 4 Possible 3 12 Market bylaws; Business upgrades; Segre-gation of duties; Com-pliance audit reviews; Fair 0.75 Amber 9 4 2.25 CEO Penalties for by employees On-going risk on supply chain processes; Complian-ce serving notices and reporting CFO Sept. 2014 3 External environment Food security Food insecure households in CoJ People flock to Major 4 Likely 3 Red 12 Foodbank and CoJ Human Development Food parcels Fair 0.75 Amber 9 4 2.25 CEO Implement food security strategy Manager Targeted Groups Sept. 2014
Ref Objectives Risk Category Risk Back-ground to the risk Impact Risk Current controls Control risk Risk Owner Actions to improve manage-ment of the risk Action Owner Time 4 To satisfy legitimate stakeholder expectations Reputational Stakeholder expectations Service innovations to ensure effective support to Market users Moderate 4 Possible 3 Amber 12 Stakeholder forums established Good 0.40 Green 4.80 4 1.2 CEO Refine and consolidate stakeholder forums COO Nov. 2014 5 Encourage conducive Environment Human Capital High senior manage-ment turnover Most positions are filled on acting basis due to executive manage-ment leaving the Market; Contractual appoint-ments and Working conditions Major 4 Likely 4 Red 16 Retention strategy; Succession planning; Re-muneration policies; Re-muneration committee proposals and Oc-cupational Safety and Environment policies Poor 0.90 4 3 of retention strategies; Remco to compare salaries with related sister companies CEO Sept. 2014 6 Effective prevention measures Integrity Fraud and corruption Incidences of fraud owing to insufficient internal control frameworks; Inadequate manage-ment reviews; Insufficient fraud risk ownership amongst senior manage-ment Major 4 Likely 4 Red 16 Anti-fraud policies; Internal controls; Segregation of duties; Policies and procedures; Internal auditing and reporting; Fraud hotline and Disciplinary proceedings Fair 0.75 Amber 12 4 3 CEO Promote zero tolerance to fraud; of code of ethics; Fraud workshops and awareness by service providers and Setting tone from the top by Internal and CEO Nov. 2014
Ref Objectives Risk Category Risk Back-ground to the risk Impact Risk Current controls Control risk Risk Owner Actions to improve manage-ment of the risk Action Owner Time scale 7 Transformation Greater inclusion of previously disadvantage groups and individuals across the agricultural chain Reputational Slow economic returns to the investor Growing alternative markets; Stake-holders circum-venting the trading system; Mergers amongst big corporate Availability of substitute farm products; New competitor entrants; Virtual market bilateral and Solo between retailers and farmers disabling unskilled emerging agents and emerging producers. 4 Likely 4 Red 16 Formal Key client visitations; Supplementary consignment control; Updated market by-laws; Vigorous marketing initiatives. Emerging producers and emerging agents support programme. Fair 0.75 Amber 12 4 3 CEO Accelerate the of the market of the future; manage-ment plans; Full analysis of com-petitors; revamping of JM's image and revisit and proper contrac-tual terms with market agencies. Include in new agency contracts. COO & Snr. Man. Market-ing Jan. 2015
Ref Objectives Risk Category Risk Back-ground to the risk Impact Risk Current controls Control risk Risk Actions to improve manage-ment of the risk Action Owner Time 8 Continuous availability of trading system and operational environments Process Power cuts/outages Unexpected power failures Major 4 Likely 4 Red 16 Generators installed for alternative energy supply; UPS; Revise current plan to incorporate new generators Good 0.40 Amber 6.4 4 1.6 CEO Management to review when additional supply lines should be installed COO Nov. 2014 9 Sustainable electronic sales processing system (IT) Process Business Possible failure of IT trading platform Major 4 Likely 4 Red 16 Separate data back-up room elsewhere on site Good 0.40 Amber 6.4 4 1.6 CEO IT External Audit review in progress IT Manager Aug. 2014
Auditor General 2012/13 Management Letters Issues No. Finding Internal control deficiency Corrective Measures Responsible Date to be Resolved 1 The following bank account held by the entity (JM) was not disclosed in the financial statements Financial and performance management All Bank accounts held by the entity will be adequately disclosed in the financial statements. CFO 31/12/13 2 The following sampled invoices included in the accruals balance were accounted net off vat thus understating amounts owed to suppliers: Projected misstatement: R1 500 000 Financial and performance management Review and monitor compliance with applicable accounting framework All accruals will be disclosed in the Financial statements VAT inclusive. CFO 31/12/13 3 Part A During the review of the Appropriation Statement, it was noted that management has not included any explanations for material variances between the budget and actual amounts disclosed in the annual financial statements. Financial and performance management Review and monitor compliance with applicable reporting framework The Appropriation Statement in the Annual Financial Statement has been adjusted to include explanation of material variances between the budget and actual amounts. Chief Financial Officer 30/11/13 4 Part B Furthermore, management has not disclosed in the notes to financial statements the explanations for the adjustment in the approved budget. Explanation for the adjustment of the approved budget has now been disclosed in the notes to the financial statements. Chief Financial Officer 30/11/13 5 The following suppliers were not paid within 30 days: Financial and performance management Implement controls over daily and monthly processing and reconciling of transactions to ensure payments are made within agreed terms. A register for invoices has been implemented to track invoices and ensure that it is monitored on a regular basis to make sure that overdue invoices are cleared promptly. Chief Financial Officer 31/12/13
8 Security management ensures that security controls are implemented to prevent unauthorised access to the network and information systems that generate the information used to prepare the financial statements Key audit findings identified: Network patch management was reviewed and the following weaknesses were noted: Although patches were performed, however WSUS, does not clearly generate reports, of patches pushed through for the period under review. Without formal testing and approval to validate that only approved patches are implemented is a risk that unauthorised patches or upgrades are applied to the entity’s infrastructure which can adversely impact the functioning and integrity of data The internal control deficiencies identified were categorised as (Financial and performance management: Design and implement formal controls over IT systems to ensure reliability of the systems and the availability, accuracy and protection of information) deficiency and could be ascribed to the following: WSUS system does not provide a proper audit trail of all patches performed, due to limitation on the system. The company will implement formalised policy for documenting the OS changes the purchase would be formally documented and testing evidence and approval be retained as part of the process. The Senior Manager: Information Systems 31/03/14 9 User access control is the systematic process of managing the access of users to an application. The process includes the creation, review, disabling and removal of user accounts. Key audit findings identified: Evidence of user starter forms could not be obtained for certain users that were selected for testing on the Selling Processing system (SPS). This could result to unauthorised users being created on the system without formal process and this might The internal control deficiencies identified were categorised as (Financial and performance management: Design and implement formal controls over IT systems to ensure reliability of the systems and the availability, accuracy and protection of information) deficiency and be ascribed to the following: Non-adherence and implementation of new user creation control processes by system owners and Management will ensure that the implementation of the user starter forms for SPS are adequately and effectively implemented as designed. The Senior Manager: Information Systems 31/05/14
increase the risk of unauthorised access. is no formal process for registering new users, removing access for terminated users in the system and for reviewing the activities of the system administrator for the Payday system. Inadequate user account management practices increases the risk of users with unauthorised access rights going undetected. This could result in unauthorised additions, modifications, and deletions of transactions and other data of significance to the entity. Furthermore, the following password controls relating Payday system had not been defined in the system: Minimum password length; Password complexity Number of incorrect attempts before a user is locked out and how this is reset; Without adequate controls on the application systems, there is a risk of unauthorised access to the Payday application systems, which may lead to unauthorised data manipulation. user departments. IT department also responded to informal communication for user access requests for new users, this resulted in some users not completing user starter forms. Payday has traditionally not been administered by the IT department. However full IT policies and procedures need to be followed in all systems deployed. The Payday system is a packaged system acquired from the vendor, the challenge is that password security settings cannot be changed as the system was bought off the shelve as is (limitation on the system functionality). Manager: Payroll Manager 10 IT service continuity is the process of managing the availability of hardware, system software, application software and data to enable an organisation to recover/re-establish information systems services in the of a disaster. The process includes IT The internal control deficiencies identified were categorised as (Financial and performance management: Design and implement formal controls over IT systems to ensure reliability of the systems and IT management will ensure that backup and recovery procedure document is reviewed to ensure that adequate back up processed are catered for, and outline a process of The Senior Manager: Information Systems 28/02/14
continuity planning, disaster recovery plans and backups. Key audit findings identified: Backup and recovery procedures were in place, however they did not include the following: Process of initiating the backup; Retention period of critical application requiring backups; The process of failed backups; The process of ensuring that tapes are taken offsite; No evidence was provided for ensuring that Payday backups were tested for restoration. the availability, accuracy and protection of information) deficiency and could be ascribed to the following: Management considered the current backup processes adequate. The systems and network administrator is also in a process of reviewing the backup and recovery procedure document. regular restoration and testing of backups. 11 On review of the service delivery agreement between City of Johannesburg and the entity, the following deficiencies were identified: the service level agreement has not been signed by the two parties, the service level agreement does not have key performance indicators, as a result, entity was unable to prepare and include an assessment of the entity’s performance against any measurable performance objectives (KPI’s) set in terms of the service delivery agreement between the entity and its parent Financial and Performance Management Pertinent information is not identified and captured in a form and time to support performance reporting Service Delivery agreement will be forwarded to COJ to ensure that it is properly signed, and also ensure that It has key performance indicators. Senior Manager Strategy 31/03/14
2nd Quarter 72 47 52 4.72 16 10 54 5.5 TOTAL 114 77 48 4.04 27 18 50 4.47 Stakeholder Relations (Assistance Programme) The below contains details of participation in industry related events PRODUCERS /EVENTS/MEETINGS AREA PURPOSE KPA VALUE Plantation Farms, Clearwater, Costa Farms, De Freitas, Goncalves, Lijani Boerdery, Farms, Langplaas, Van Der Merwe NIC and Seuns, Echo Berry October 2013 Gauteng Tarlton Brits To establish and maintain a sustainable relationship with commercial producers in Gauteng/Tarlton/ Brits. Business expansion Maintain a good relationship with commercial producers that send produce to Joburg Market. Issues that were discussed are: Industry related issues, market related issues, exports, MotF and Market Agents. The producers appreciated the visit by Joburg Market. Emerging Producers (Sedibeng Cluster) Oct 2013 De Deur To address the market access barriers that was raised by the Emerging producers during the workshop. Transformation – Emerging producers Information dissemination on current operations, MOTF and recent developments e.g. new gate. Strengthened communication channels in addressing producers concerns - contact details were Assisted producers in meeting quality and packing requirements Tzaneen Information Day 12-14 Nov 2013 Marigold Farms Nov 2013 Tzaneen Tarlton To address the market access barriers that was raised by the Emerging producers during the Letaba Agri Show on the 08 August 2013. Transformation – Emerging producers Information dissemination on current operations, MOTF and recent developments e.g. new gate. Strengthened communication channels in addressing producers concerns - contact details were Assisted producers in meeting quality and packing requirements Potato Industry meeting 27 Nov 2013 Tshwane To provide an open, transparent and inclusive platform for all role players in the potato industry to make inputs and take consensus decisions on the strategic Business expansion Information sharing on industry related matters
boardroom toilets. expected to be awarded by the end of January 2014. Rehabilitation of the road between 2 and 3 north 30 April 2014 R6m R60k The tender was presented at BAC and referred back to BEC for further due diligence on the recommended service provider. Rehabilitation of the road between halls 8 and 9 30 April 2014 R5m EPWP grant R0 The tender was presented at BAC and referred back to BEC for further due diligence on the recommended service provider. Foodbank sorting facility 30 April 2014 R2.5m R0 The tender closed and is awaiting BEC and BAC for finalisation. The project is expected to be awarded by the end of January 2014. . Refurbishment of a section of Hall 2 30 June 2014 R2m R0 professional engineer have been appointed and specifications have been finalised for further engineering professionals. The BSC is expected to take place in January 2014. Upgrade of storm water at the new entrance 30 April 2014 R1.3m R0 The tender closed and is awaiting BEC and BAC for finalisation. The project is expected to be awarded by the end of January 2014.