Umgungundlovu District Municipality 16/17 Annual

14. I evaluated the reported performance information against the overall criteria of usefulness and
reliability.

15. I evaluated the usefulness of the reported performance information to determine whether it was
consistent with the planned objectives. I further performed tests to determine whether indicators and
targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the
National Treasury’s Framework for Managing Programme Performance Information.

16. I assessed the reliability of the reported performance information to determine whether it was valid,
accurate and complete.

17. I did not identify any material findings on the usefulness and reliability of the reported performance
information for the selected objectives.

Additional matters
18. I identified no material findings on the usefulness and reliability of the reported performance

information for the selected objectives, however, I draw attention to the following matters:

Achievement of planned targets
19. The annual performance report on pages x to x includes information on the achievement of planned

targets for the year.

Compliance with legislation

20. I performed procedures to obtain evidence that the municipality complied with applicable legislation
regarding financial matters, financial management and other related matters. I did not identify any
instances of material non-compliance with specific matters in key legislation, as set out in the general
notice issued in terms of the PAA.

Internal control
21. I considered internal control relevant to my audit of the financial statements, annual performance

report and compliance with legislation. I did not identify any significant deficiencies in internal control.

Pietermaritzburg
30 November 2016

148 | P a g e

APPENDICES
149 | P a g e

APPENDIX A

Committees and Committee purposes
The municipality has a multi-party portfolio committees being the Finance, Human Resource and Sound
Governance, Community Services, infrastructure, planning and Development and MPAC committees. The
aforementioned committees assist the executive committee in policy development and monitoring to
accelerate service delivery as well as the oversight of strategic programmes and projects.

Municipal Committee Purpose

Finance Portfolio The Portfolio Committee on Finance is a Section 80 Committee, responsible for the
Committee following functions, and making recommendations to the Executive Committee thereon:

 Familiarise, interrogate and recommend to the Committee of the budget and reports
on economic issues, statistical information, agreements, financial reports, and
reports on economic and policy statements.

 Sharpen public awareness of the budget and Government financial and economic
policies, and encourage informed debate on the budget.

 Advise the executive committee on the district municipality’s domestic borrowing
policies.

 Seek advice from all three spheres of Government, on financial and other budget
related matters.

 Drive the entire budget process as alluded to by legislation, thus ensuring that
budgets are based on priorities and realistic income and expenditure.

 Advise on processes that need to be put in place for formulating and monitoring the
budget, throughout its cycle, that will enhance the District.
Municipality’s role in appropriating and overseeing the budget, and make the
budget process more responsive to stakeholders.

 Advise on budget programmes that need to be given special treatment during
budget implementation.

 Ensure that the budget of the District Municipality is used as a primary tool for
implementing National and Provincial Policies.

 Deal with any other budget related matter referred to the Committee by the
Executive Committee.

 Develop policy proposals on all the areas of responsibility with the intention of
achieving municipal and/or general government objectives.

Human Resources  To ensure the provision of efficient, economical and effective administration of the
and Sound municipality, to co-ordinate secretarial services,
Governance to oversee the delivery of the human resource services, and to render management
and transformation services;

 To oversee the delivery of support services to the council and community; Exercise
delegated authority after considering a report from the designated officials for the
Human Resources & Sound
Governance Portfolio ,Introduce to Exco the recommendations from the Human
Resources & Sound Governance Portfolio Committee;

150 | P a g e

Municipal Committee Purpose

Community Services  Introduce departmental reports on the functions of the relevant sections to Exco,
General administration inclusive council & committee secretariat, legal, council
support, policies & procedures, facilities
Management, capacity building & training, human resources, including, Governance,
democracy and Skills development.

The Portfolio Committee on Special Programmes is a Section 80 Committee,
responsible for the following functions, and making recommendations to the Executive
Committee thereon:

Infrastructure  Oversight over the following functional areas:
Committee  Undertake the following special programmes in respect of Policy, Strategy and

Programmes.
• Youth
• HIV/Aids
• Senior Citizens
• People with Disability
• Gender
• Sports and Recreation
• Rights of the Child

 Oversee municipal infrastructure development and services to meet the needs of
the Municipality in the discharge of its responsibilities.

Economic  Oversee the commissioning of the best methods to deliver the aforementioned
Development and municipal services and facilities to the maximum benefit of the community of the
Planning municipality

 The Portfolio Committee on Local Economic Development is a Section 80
Committee, responsible for the following functions, and recommendations to the
Executive Committee thereon:

 Oversee the implementation of all applicable legislation relating to social and
economic development, national development

 Programmes, provincial development programmes, trading regulations, investment

opportunities, transport, land affairs, electrification, housing and public works.
 Oversee all aspects, programmes and activities of local economic development.
 Oversee all fiscal and other incentives designed to promote social and economic

development.
 Oversee environmental management and ensuring environmental planning,

education, sustainable development management
 Oversee the provision of efficient environmental health services through continuous

monitoring and enforcement.
 Develop policy proposals on all the areas of responsibility with the intention of

achieving municipal and/or general government objectives.

151 | P a g e

Municipal Committee Purpose

Municipal Public  Oversee municipal infrastructure development and services to meet the needs of
Accounts Committee the Municipality in the discharge of its responsibilities.

 Oversee the commissioning of the best methods to deliver the aforementioned
municipal services and facilities to the maximum

 benefit of the community of the municipality

152 | P a g e

APPENDIX B
Councillors, Committee Allocation, and Council Attendance

PRESENT P
ABSENT WITH AN APOLOGY A
ABSENT WITHOUT AN APOLOGY O

FULL

NAME PARTY 27.01.17 24.02.17 31
MAYOR – COUNCILLOR A P P
TE MAPHUMULO ANC: DIRECT
DEPUTY MAYOR – (MAYOR) PA
THANDIWE R ZUNGU
ANC: PR PP P
SPEAKER - MBUZELWA MSUNDUZI PP P
EDWARD DLADLA (DEPUTY AP P
MICHAEL S BOND MAYOR) PP A

BONANI ANGEL ANC: DIRECT PP P
MCHUNU (SPEAKER)
DORCAS SIBONGILE
MKHIZE DA: DIRECT
(EXCO)
DENNIS NDLELA
ANC: DIRECT
(EXCO)

ANC: PR
MSUNDUZI
(EXC0)

ANC DIRECT
(COUNCIL
CHIEF WHIP)

153 | P a g e

L COUNCIL 31.08.17 10.11.17 12.12.17
A P P
1.03.17 26.05.17 30.06.17 11.08.17
PAA P P P

PAP

PPP P P P

PPP P P P

AAP P A P

PAP P A P

PPP P P P

FULL

NAME PARTY 27.01.17 24.02.17 31
GUGU M DLADLA P P P
ANC: PR
BONGUMUSA MSUNDUZI P PP
NHLABATHI (EXC0)
BUKELAPHI EPHRAIM P PP
ZUMA DA: PR
MSUNDUZI
DB PHUNGULA (EXCO)

IFP: PR
MSUNDUZI
(EXCO)

ANC: MSUNDUZI
EXCO

154 | P a g e

L COUNCIL 31.08.17 10.11.17 12.12.17
A P P
1.03.17 26.05.17 30.06.17 11.08.17
PPP

AAP P P P

PPP P P A

PP

FULL

NAME PARTY 27.01.17 24.01.17 31
AMBOSIA SIBONGILE ANC: PR P P P
DLAMINI MSUNDUZI
MICHAEL ANC: PR P PP
KWENZAKUFANI IMPENDLE
DLAMINI PPP
SANDILE W DLAMINI ANC: WARD
52205035 PPP
NOMABHELU VALENCIA MSUNDUZI
DUZE ANC: DIRECT

SINDISIWE C GWALA ANC: WARD PPP
52205081
THEMBA ABRAM MSUNDUZI PPP
HLATSHWAYO DA: DIRECT PPA
JANIS E HOLMES
DA: WARD PAP
RENESHA JUGMOHAN 52202002
UMNGENI PPP
BHEKITHEMBA DA: WARD
KHUMALO 52205030 PPP
SBONELO J LUTHULI MSUNDUZI
ANC: WARD
52203002
MPOFANA
ANC: WARD
52201012
UMSHWATHI

155 | P a g e

L COUNCIL 10.11.17 12.12.17
P P
1.03.17 26.05.17 30.06.17 11.08.17 31.08.17
P APP P A

P APP

P APP P P

A PAP P A

P PAP P P

P PPA P P
P PPA P P

P PPP P P

P APP A P

P PPP P A

NOMUSA C MABHIDA ANC: DIRECT P P P

LINDA LINFORD ANC: WARD P P P

MADLALA 52205003

MSUNDUZI

S’THEMBISO D ANC: DIRECT P A P
MHLONGO

BRIGHTMAN IFP: PR P P P

KWAKHAKUNI MKHIZE UMSHWATHI

NTOMBIZONKE PHOSWA ANC: PR

RICHMOND

MOSES JABULANI ANC: DIRECT P P P
MKHIZE

MTUZA MKHIZE ANC: WARD P P P

52205021

MSUNDUZI

SIPHO MKHIZE ANC: DIRECT P P P

LC NGCOBO ANC: DIRECT P P P

NELISIWE Z NDLOVU ANC: WARD P P

52205020 P

MSUNDUZI

156 | P a g e

P PPP P P
P APP P P

A PPP P DECEASED
P PAP P A
P A
A PPP P P
P AAA P P

P PPP P A
P PPP P P
P PPP P RESIGNED

NAME PARTY 27.01.17 24.01.17 31
A P
DUDU CATHERINE IFP: DIRECT P P P
MTSHALI P P P
KHUMBULANI CS NENE EFF: DIRECT P
GUGULETHU P P
HAPPINESS NGCOBO ANC: WARD P P P
52201005 P P P
BONGINKOSI NGCONGO UMSHWATHI
ANC: WARD P P
MD NJOKWE RICHMOND P A
ANC: DIRECT P P
A P
SITHEMBISO DESMOND ANC: WARD P
NKUNA 52202004 P P P
UMNGENI P
MICHAEL VUSUMUZI P
NTSHANGASE ANC: DIRECT P
RACHEL SOOBIAH
ANC: MSUNDUZI P
BAZOLILE C SOKHELA
IFP: PR P
ROSS BRYAN
STRACHAN DA: WARD P
52205026 P
ELLIOT XABA MSUNDUZI

HAMILTON MLUNGISI DA: DIRECT
ZONDI
ANC: WARD P
NHLANHLA ZONDO 52205004 P
MSUNDUZI

ANC:
MKHAMBATHINI

157 | P a g e

1.3.17 26.05.17 30.06.17 11.08.17 31.08.17 10.11.17 21.12.17
P PAP P P
P APP P P
P PAA P P

P PPP P P
P PPP P P
A AAP P P

A PPP A P

P AAP P P
P PPP P P
P PPP P P

P PAP P P
P APA P P

P PAA P P

AM

NAME 27.01.17 24.01.17 31.3.17
P P P
INKOSI MZ
MTHULI A A P
INKOSI B NTANZI A P

INKOSI NK P P
MAPHUMULO
INKOSI NC A A
MOLEFE P A
INKOSI ES ZUMA A P

INKOSI T MKHIZE A A

INKOSI NW
ZONDI
INKOSI LZ
DLAMINI
INKOSI N
MCHUNU

158 | P a g e

MAKHOSI 30.06.17 11.08.17 31.08.17 10.11.17 12.12.17
26.05.17 A P A P P
P
A P A P A
P P A A P A
P
A P A P A
P
A A A A A
A A P A A P
P A A A A A
A
A A A A A
A
A A A
A

NAME PARTY EXECUTIVE
20.10.16 24.11.16 19.01.17 25.01.17 14.02.1

MAYOR – ANC: P PPP
COUNCILLOR DIRECT P PPP
TE (MAYOR) PPP
MAPHUMULO P PPP
DEPUTY ANC: PR P PAP
MAYOR – MSUNDUZI P PPP
THANDIWE R (DEPUTY A PPA
ZUNGU MAYOR)
CHIEF WHIP - ANC: P PPA
MBUZELWA DIRECT
EDWARD (SPEAKER)
DLADLA
MICHAEL S DA: DIRECT
BOND (EXCO)
BONANI ANC:
ANGEL DIRECT
MCHUNU (EXCO)
DORCAS ANC: PR
SIBONGILE MSUNDUZI
MKHIZE (EXC0)
DENNIS ANC
NDLELA DIRECT
(COUNCIL
CHRISTOPHE CHIEF
R JUBA WHIP)
NDLELA ANC:
DIRECT
(EXCO)

159 | P a g e

E COMMITTEE 16.05.17 20.06.17 25.07.17
17 23.02.17 22.03.17 25. 04.17 03.05.17

P PP P P AP

P PA P P PP

P PP P P PA

P PP P P PA
P AA A A AP
P PP P P PP
A AA P P PA

A RESIGN
ED

GUGU M ANC: PR P EXECUTIVE
DLADLA MSUNDUZI P PPP
(EXC0) P
BONGUMUSA PPP
NHLABATHI DA: PR
MSUNDUZI APA
BUKELAPHI (EXCO)
EPHRAIM
ZUMA IFP: PR
MSUNDUZI
(EXCO)

AMAKHOSI AMAKHOSI AMAKH AMAKH AMAKH AMAKH AMAKH
PARTY OSI OSI OSI OSI SI
NAME
20.10.16 24.11.16 19.01.17 25.01.17 14.02.1
INKOSI MNZ
MTHULI P PAA

160 | P a g e

E COMMITTEE
A PP P P PA

P PP P P PA

P PP P P PA

HO AMAKHO AMAKH

SI OSI

17 23.02.17 25.04.17 16.05.17 20.06.17 25.07.17
A PA
PA A

NAME HUMAN RESOURCES AND SOUND GOV

CLLR DB 12.10.2016 18.11.2016 08.02.2017 15.03.2017 12.0
PHUNGULA Not a member
CLLR G DLADLA
Not a member PP

Cllr RENESHA P OOP A

JUGMOHAN

Cllr LINDA LINFORD P PPPP
MADLALA

Cllr MS MTHETHWA Not a member P

Cllr KHONZIWE P PPPA
MKHIZE P PPPP
Cllr DUDU
CATHERINE P OP P P
MTSHALI P PPPP
Cllr NELISIWE Z P P OOP
NDLOVU
Cllr MD NJOKWE

Cllr ELLIOT XABA

161 | P a g e

VERNANCE PORTFOLIO OF SERVICES
04.2017 10.05.2017 14.06.2017 25.08.2017 15.09.2017 11.10.2017

P P P PP
P P P PP
P P P PP
P P A PP
A A P OO
P P P AP

P P A PP
P P P PP
P P A PP

INFRASTRUCTURE PO

NAME 06.10.2016 10.11.2016 02.02.2017 02.0
DEPUTY MAYOR – P P P P
THANDIWE R ZUNGU
(CHAIRPERSON) P P P P
MICHAEL S BOND P P P P

MELCHOR A P A P
KWENZAKUFANI DLAMINI P P P P
BHEKITHEMBA KHUMALO P P P P
P P P P
SBONELO J LUTHULI P A P P
P P P P
NOMUSA C MABHIDA A P O O
A P P O
BAZOLILE C SOKHELA A P O O

ROSS BRYAN STRACHAN

NHLANHLA ZONDO

INKOSI NC MOLEFE

INKOSI B NTANZI

INKOSI NW ZONDI

162 | P a g e

ORTFOLIO COMMITTEE

03.2017 20.04.2017 04.05.2017 01.06.2017 03.08.2017 07.09.2017
A P PP

P P PP
P P AA

P A PA
A P PO
P P PP
P P PP
P P PP
P P PO
O O PP
P P PP
O O OP

FINANCE PORTFO

NAME 13.10.16 16.11.16 09.02.2017 14.03.2017
P P PP
MAYOR – COUNCILLOR TE
MAPHUMULO P P PP
(CHAIRPERSON) P P PA
PP
NOMABHELU VALENCIA PA
DUZE PP
PP
RENESH JUGMOHAN AP

SIPHO MKHIZE PP OA
OO
GUGULETHU H. NGCOBO O P

BONGUMUSA C. P P
NHLABATHI P P

MICHAEL V NTSHANGASE

BUKELANI E ZUMA PA

NTOMBIZOZWA PHOSWA Not a member

INKOSI NK MAPHAMULO P P

INKOSI ES ZUMA OO

163 | P a g e

OLIO OF SERVICES

13.04.17 12.05.2017 15.06.2017 18.08.17 21.09.17 19.10.17
P
AP A No Meeting P

P A O No Meeting P O

AP P No Meeting P A
PP P No Meeting P P
PP P No Meeting P A
PP P No Meeting P P

PP P No Meeting A A
PA A No Meeting A P

OP P No Meeting O O
O O No Meeting O O

NAME 04.10.2016 ECONOMIC DEVELOPMENT AND PLA
P 01.11.2016 07 02.2017 07.03.2017 04.04.2017
GUGU M
DLADLA P PPPP
(CHAIRPERSON)
PP
CLIVE LOTZ

MICHAEL BOND O O P P P

SANDILE W PPPPP
DLAMINI

SBONELO J P P A P P

LUTHULI

LINDA LINFORD P P P P P

MADLALA

DORCAS PPPAA
SIBONGILE

MKHIZE

BAZOLILE C P P P P P

SOKHELA

ROSS BRYAN P P P P P
STRACHAN

HAMILTON PPPPp

MLUNGISI

ZONDI

INKOSI MZ POO p O
MTHULI

164 | P a g e

ANNING PORTFOLIO SERVICES
02.05.2017 14.06.2017 15.08.2017 05.09.2017 03.10.2017 07.11.17
P P P P PP

RESIGNED
P P A P PP
P P A P PP
P P P P PP
P P P P PP
O P O A PA

P O P P PP
A P P P PP
P P P P PP

O P P P OP

NAME 25.11.2016 MUNICIPAL PUBLIC AC
AMBROSIA SIBONGILE DLAMINI P
(CHAIRPERSON) 17.02.2016 17.03.2017
THEMBA ABRAM HLATSHWAYO P PP
P
JANIS E HOLMES P PP
AP
BRIGHTMAN KWAKHAKUNI P AP
MKHIZE
MOSES JABULANI MKHIZE P PA
P
MTUZA MKHIZE O AP
P PA
BONGINKOSI NGCONGO PP
AP
SITHEMBISO DESMOND NKUNA

RACHEL SOOBIAH

165 | P a g e

CCOUNTS COMMITTEE

7 25.05.2017 26.06.2017 23.08.2017 22.09.2017 01.11.2017
PPPP P

PPPP P
PPPP P
OPPP O

OPOP P

OAAP P
PPPP P
OPAA P
OPAP P

COMMUNITY SERVICES PORTF

NAME 16.11.16 14.10.16 07.02.2017 0
BONANI ANGEL MCHUNU
(CHAIRPERSON) PP P
CLIVE LOTS
PP P
MICHAEL S BOND
PP P
SINDISIWE C GWALA PP P
PP P
S’THEMBISO D MHLONGO PP A
PP P
DORCAS SIBONGILE MKHIZE PP P
PP P
DUDU CATHERINE MTSHALI PP P

LINDIWE C NGCOBO

MD NJOKWE

ELLIOT XABA

INKOSI T MKHIZE

166 | P a g e

FOLIO COMMITTEE

04.04.2017 09.05.17 06.06.2017 08.08.17 08.08.17
P
PAA P
P
RESIGNED P
P
PPP P A
P
PPP P P
P
PPP P P
P
PPP A

OPO P

PPP P

PPP P

PPP P

0PP P

APPENDIX C

Functions of the Municipality
The Municipal Structures Act of 1998 (as amended) makes provision for the division of powers and
functions between the District and Local municipalities. These include the following for the uMgungundlovu
District Municipality;

SERVICES RENDERED

1.
Integrated development planning for the District as a whole with alignment to the Integrated
Development Plans of the local municipalities in the District

2. Supply of water and sanitation to six of the local municipalities

3.
Sewage purification works and sewage disposal at six of the local municipalities in the District

4.
Solid waste management throughout the District

5.
Establishment and management of cemeteries and crematoria in six of the local municipalities in the
District

6.
Emergency services (Fire and Disaster Management) in six of the local municipalities

7.
Promotion of local economic development

8.
Promotion of tourism development in the District

9.
Town and Regional Planning and Geographic Information services throughout the District

10.
Municipal public works relating to any of the above services or any other functions assigned to the
District Municipality

11.
Environmental Health Services

12.
The imposition and collection of service charges, taxes, levies and duties as related to the above
functions or as may be assigned to the District

Services not yet rendered:
1. Regulation of passenger services
2. Municipal airports
3. Establishment and management of fresh produce markets and abattoirs

167 | P a g e

APPENDIX D
Assessment of the Performance of External Service Providers

Below is a list of all the tenders that were awarded for the 2016-2017 financial year. The monitoring of the
service providers performance is ensured through the general terms of the contract of the tender awarded.

Each user department reports to SCM on the performance of the service provider, and those service
providers who fail to perform necessary action are taken against them, this can include the cancellation
and or termination of the tender.

Assessment Key

Good – The Service Provider has been provided at acceptable standards and within the timeframes.

Poor – The Service Provider has provided below acceptable standards

TENDER AWARD SUCCESSFUL ASSESSMENT
No. NO. DATE BIDDER STATUS

DESCRIPTION AMOUNT Good Poor

SUPPLY OF JETTING
1 01/2016 TRUCK 21/07/2016 Tower City 41 R 2,504,906.49

SUPPLY AND SETUP OF
SCAFFOLDING FOR 
MANDELA DAY
2 25/2016 MARATHON 15/08/2016 Reinvent IT R 185,000.00 

SUPPLY START AND 
FINISHING STRUCTURE
FOR MANDELA DAY Zernnies Trading 
3 26/2016 MARATHON 26/08/2016 LTD R 419,233.65 

SUPPLY TENTS AND 

FURNITURE FOR Mavukani Trading 
MANDELA DAY 
4 28/2016 MARATHON 15/08/2016 Enterprises R 600,000.00

MLO

UPGRADE NKANYEZINI Investments/New
COMMUNITY WATER Boss/Zamisanani
5 11/2016 SUPPLY 7-Sep-16 JV R 96,916,329.77

SERVICING OF FIRE 7-Sep-16 Ocean Fire R 89,490.00
6 16/2016 EXTINGUISHERS Services

PROVISION OF Yellowdot Media R 6,882,000.00
MARKETING AND 17-Jan-17 and Risk
COMMUNICATION
7 12/2016 SERVICES

EVENTS COORDINATOR Mbusowethu
8 04/2017 FOR BUDGET IZIMBIZO 24-Apr-17 Trading R 245,000.00

EVENTS COORDINATOR Xolisisizwe Trading
9 04/2017 FOR BUDGET IZIMBIZO 24-Apr-17 and Projects R 366,880.50

PANEL OF LEGAL PER GAZETTED
10 23/2016 ADVISORS 26-Apr-17 TKN Incorporated RATES

168 | P a g e

TENDER AWARD SUCCESSFUL ASSESSMENT
No. NO. DATE BIDDER STATUS
26-Apr-17
DESCRIPTION 26-Apr-17 Taleni Godi Inc AMOUNT Good Poor
26-Apr-17 PER GAZETTED
PANEL OF LEGAL 26-Apr-17 Siyaya Attorneys RATES 
11 23/2016 ADVISORS 26-Apr-17 Poswa PER GAZETTED
Incorporated RATES
PANEL OF LEGAL 26-Apr-17 Mdledle PER GAZETTED 
12 23/2016 ADVISORS 26-Apr-17 Incorporated RATES
26-Apr-17 Hajra Patel PER GAZETTED
PANEL OF LEGAL Incoporated RATES 
13 23/2016 ADVISORS 26-Apr-17 Pravina Govender PER GAZETTED
Attorneys and RATES
PANEL OF LEGAL 26-Apr-17 Conveyances 
14 23/2016 ADVISORS 26-Apr-17 Siva Narsimaloo PER GAZETTED
26-Apr-17 Chetty RATES
PANEL OF LEGAL 26-Apr-17 Matthew Francis PER GAZETTED 
15 23/2016 ADVISORS Inc RATES
Buthelezi Mtshali PER GAZETTED
PANEL OF LEGAL Mzulwini Attorneys RATES 
16 23/2016 ADVISORS Inc 
Potgiter Kunene PER GAZETTED 
PANEL OF LEGAL Xaba (PKX) RATES
17 23/2016 ADVISORS Attorneys
Mhlanga PER GAZETTED
PANEL OF LEGAL Incorporated RATES
18 23/2016 ADVISORS PER GAZETTED
Venn Attorneys RATES
PANEL OF LEGAL Xaba Attorneys PER GAZETTED 
19 23/2016 ADVISORS Incorporated RATES
PER GAZETTED
PANEL OF LEGAL RATES 
20 23/2016 ADVISORS 

PANEL OF LEGAL 
21 23/2016 ADVISORS
28-Mar-17 Tower City Trading R 751,471.93 
PANEL OF LEGAL 28-Jun-17 MMolana Andel- R 19,116,346.37
22 23/2016 ADVISORS 28-Jun-17 Mokoena Projects R 467,205.00
CC
PANEL OF LEGAL
23 23/2016 ADVISORS Serenity Services
CC
VARIATION ORDER -
SUPPLY OF ONE
24 01/2016 JETTING TRUCK

MAQONGQO WATER 
25 01/2017 SUPPLY PHASE 5 

SHORT TERM
26 06/2017 INSURANCE

27 07/2017 PHOTOCOPY SERVICES 28-Jun-17 Nashua Maritzburg R 2,003,531.76

169 | P a g e

APPENDIX E
Revenue Collection by Source
The only income vote is budget and Treasury office. Details on such are reflected in the Annual financial
statements.

170 | P a g e

APPENDIX F
Revenue Collection by vote

REVENUE COLLECTION AGAINST SERVICE CHARGES ON WATER AND SANITATON BY AREA

COLLECTION OF REVENUE FROM SALE OF WATER AND SANITATION
SERVICE
ANNUAL 2016/2017

AREA SALES RAISED RECEIPTS % COLLECTION IMPAIRMENT R
Howick
Hilton 34 001 919,13 25 740 103,43 76% 24%
Mpophomeni
**Bulk 10 465 208,96 9 821 763,32 94% 6%
**Mpofana
Indigents 13 175 569,22 641 153,62 5% 95%
**Richmond
**uMshwathi 33 983 584,71 31 595 835,12 93% 7%
**uMkhambathini
**iMpendle 10 647 600,77 5 104 862,88 48% 52%
**Water Schemes
Total 4 570 488,00 74 867,47 2% 98%

6 303 733,81 4 604 351,13 73% 27%

8 479 476,98 4 829 611,44 57% 43%

3 478 652,41 1 778 862,74 51% 49%

1 883 583,18 535 001,95 28% 72%

15 870 693,33 3 858 295,07 24% 76%

142 860 510,50 88 584 708,17 62%

REVENUE COLLECTION AGAINST SERVICE CHARGES ON WATER ANS SANITATION BY MONTH

* Further details on revenue collection is also reflected under chapter 5 of this annual report

2015/2016 Financial Year 2016/2017 Financial Year

Month Billing Receipts Collections % Month Billing Receipts Collections %

Jul-15 13,353,380 7,297,770 55% Jul-16 10,782,267 7,240,137 67%

Aug-15 12,652,525 8,935,815 71% Aug-16 12,163,390 6,403,961 53%

Sep-15 13,578,766 7,604,358 56% Sep-16 13,220,839 10,128,682 77%

Oct-16 13,429,843 8,658,348 64% Oct-16 12,235,886 7,924,717 65%

Nov-16 11,923,000 8,458,889 70% Nov-16 11,175,258 7,230,930 65%

Dec-16 12,589,518 7,578,642 60% Dec-16 10,967,509 6,795,194 62%

Jan-16 12,649,998 7,896,985 63% Jan-17 12,561,907 7,220,506 57%

Feb-16 11,799,411 8,376,146 70% Feb-17 11,161,869 5,787,478 52%

Mar-16 11,579,421 7,624,055 66% Mar-17 11,339,077 6,428,367 57%

Apr-16 12,167,545 8,000,199 68% Apr-17 13,028,560 10,081,748 77%

May-16 12,314,049 9,304,629 76% May-17 12,665,377 6,563,473 52%

Jun-16 12,379,451 6,600,807 53% Jun-17 11,800,557

Average Collection Rate for 2015/2016 64% Average Collection Rate for 2016/2017 63%
APPENDIX G

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Conditional Grants received excl. MIG
Details on conditional grants received excluding MIG is reflected on the annual financial statements cash
flow statement and in note 28 of the AFS.

APPENDIX H
Capital Expenditure - New and Upgrades
Details on capital expenditure is reflected under service delivery chapter.

APPENDIX I
Capital Expenditure new asset programme
Details on capital expenditure is reflected under service delivery chapter.

APPENDIX J
Capital programme by Projects
Details on capital programme by project are reflected in chapter 3 under organization performance report.

APPENDIX K
Declaration of Loans and Grants
The uMgungundlovu District Municipality do not have loans to other persons or organs nor grant at this
point.

APPENDIX L
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ANNUAL REPORT OF THE AUDIT AND PERFORMANCE AUDIT COMMITTEE
FOR

UMGUNGUNDLOVU DISTRICT MUNICIPALITY
FOR THE YEAR ENDED 30 JUNE 2017

INTRODUCTION

The uMgungundlovu District Municipality Audit and Performance Audit Committee has been established by
Council as an independent committee in terms of section 166 of the Municipal Finance Management Act
(MFMA), Act No. 56 of 2003, the Municipal Systems Act (MSA), Act 32 of 2000 and the Municipal Planning
and Performance Regulations, 2001. The Committee has adopted a formal Audit Committee Charter, which
is regularly updated and approved by Council.

The Committee is honoured to present its report for the financial year ended 30 June 2017.

AUDIT COMMITTEE MEMBERS AND ATTENDANCE

The Audit Committee Charter requires the Committee to consist of a minimum of three independent
members, with a minimum of four (4) meetings to be held per annum to give effect to the responsibilities
assigned to the Audit Committee in its Charter.

Name of Member Date of Appointment Date of
Termination
Ms. N.R. Sikhakhane (Tshabalala) – 01 April 2012
Chairperson Active
Mr. D. O’Connor 01 April 2012
Mr. S.D. Gabela 01 May 2014 Active
Ms. S. Keshav 01 May 2014 Active
Active

During the year under review, the Committee held eleven (8) meetings, for both Audit and Performance Audit
Committee as listed below:

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Date N.R.Sikhakhane D. O’Connor S. Keshav S.D. Gabela
(Tshabalala)
21 November 2016 ✔ ✔ ✔
(AC) x ✔ ✔ ✔
21 November 2016 x
(PAC) ✔ ✔ ✔
23 January 2017 ✔ ✔ ✔ ✔
(AC) ✔ ✔ ✔ ✔
23 January 2017 ✔ ✔ ✔
(PAC) ✔ ✔ ✔ ✔
24 April 2017 (AC) ✔ ✔ ✔ ✔
8/8 8/8 8/8
24 April 2017 (PAC)

26 June 2017 (AC) ✔
✔
26 June 2017 6/8
(PAC)
Total

AUDIT COMMITTEE RESPONSIBILITIES

The Audit Committee has discharged its responsibilities in line with section 166 (2) of The Municipal Finance
Management Act, read with Regulation 14(3) and (4) (a) of the Municipal Planning and Performance
Management Regulations:

Regulation 14(3) and (4) (a) states the following as some of the responsibilities of performance audit
committee:
 A performance audit committee must meet at least four times during the financial year of the municipality

concerned.
 A special meeting of the performance audit committee may be called by any member of the committee.
 A performance audit committee may determine its own procedures after consultation with the executive

mayor or the executive committee of the municipality concerned, as the case may be.
 A performance audit committee must:

 review the quarterly reports submitted to it in terms of regulation 14 (1)(c)(ii) of the Municipal
Planning and Performance regulations;

 review the municipality’s performance management system and make recommendations in this
regard to the council of that municipality; and

 at least twice during a financial year submit an audit report to the municipal council concerned.

The Audit Committee adopted its Terms of Reference at its meeting held on 21 November 2016, in line with
the requirements of section 166 of the Municipal Finance Management Act, No. 56 of 2003. Furthermore,
the Committee reports that we conducted our affairs in compliance with the charter.

We have met four times during the year and have commented and noted the reports tabled by the Internal
Audit Unit. As mandated by MFMA we have approved the Internal Audit Charter for the 2016/2017 financial
year at our meeting held on 21 November 2016.

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THE EFFECTIVENESS OF INTERNAL CONTROL

The Audit Committee reviewed various reports from the Internal Audit Activity in terms of the approved audit
plan. Based on our evaluation of the work of the Internal Audit Activity as well as feedback from the Office of
the Auditor-General, the Committee is of the opinion that the adequacy and effectiveness of internal control
systems is generally sound provided all controls are properly implemented in all material aspects. These
controls must be regularly updated as the risk register, which is a live document is updated.

Furthermore, management’s commitment and interventions made in addressing the control deficiencies
identified is acknowledged.

RISK MANAGEMENT AND GOVERNANCE

The Audit Committee has reviewed the adequacy of the design, implementation and monitoring of the
municipality’s risk management processes and the integration thereof into the municipality’s day to day
activities, including:
 Reviewing the significant risks facing the municipality and the appropriateness of identified risk

responses.
 Considering the appropriateness of management’s risk appetite and risk tolerance in accordance with

the risk management strategy set by the Council.
 Ensuring that a formal risk assessment is undertaken at least annually.

The Committee acknowledges the risk management processes that management has put in place; however
the municipality needs to significantly increase its efforts in ensuring that the practice of risk management is
properly embedded in the operational processes of the municipality and monitored continuously.

PERFORMANCE MANAGEMENT

The Audit Committee has considered the quarterly reports of the Internal Audit Activity in relation to
performance management and can conclude that the performance management system in place is not
properly functional as we still have the following concerns that were raised in PREVIOUS YEAR with
management:

 Performance Information is not submitted to internal audit on time to allow for proper review and
verification of the credibility of the performance reports;

 Portfolio of evidence not always submitted for audit purposes resulting in the internal audit not being able
to ascertain the extent to which measurable outputs were achieved; and

 Incomplete Portfolio of Evidence was submitted for audit purposes.

We are concerned to report that the culture of performance management has not yet been developed within
the Municipality to the extent to which we would expect, despite the elevation of performance reporting and
monitoring to Management Committee level.

We are also noted the effort made by the Municipality to have the issue of performance information as a
standing item on MANCO Meetings we hope this will in future improve the concerns raised above.

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THE QUALITY OF IN-YEAR MANAGEMENT AND MONTHLY/ QUARTERLY REPORTS SUBMITTED IN
TERMS OF THE MFMA

The Committee has reviewed the content and quality of in-year management and monthly / quarterly report
submitted in terms of the MFMA and the Division of Revenue Act, and issues on completeness and accuracy
of the reports were raised with Management, to take the necessary corrective actions.

INTERNAL AUDIT

The Committee is satisfied that the internal audit work was conducted in accordance with the approved
annual audit plan, and with the content and quality of internal auditors quarterly reports prepared and issued
for the period under review.

EVALUATION OF FINANCIAL STATEMENTS

The Audit Committee has:
• Reviewed with concern and discussed the municipality’s annual financial statements for the year ended

30 June 2017;
• Reviewed the municipality’s compliance with legal and regulatory provisions; and
• Reviewed the Auditor-General’s report and management responses thereto.

Despite our serious disappointment with the audit opinion received, the Committee concurs with and accepts
the Auditor-General's conclusions on the municipality’s annual financial statements and performance
information for the financial year under review.

Further matters for noting:-
(a) the Municipality needs to ensure that Senior management positions are filled as a matter of
urgency as the current vacuum in certain positions is causing serious capacity issues;

(b) RE REPORTED MATTERS:-

There are a number of matters that have been reported in previous financial years that are causing serious
financial loss to the Municipality and it is of serious concern to the Audit Committee that these maters seem
to be dragging on from year to year with little or no apparent progress:

(1) Water losses
(2) Very Poor Debtors Management - resulting in significant write offs
(3) Irrecoverable Debt From Organs of State
(4) Non-compliance with SCM policies and procedures

We are of the opinion that the audited annual financial statements and performance report be accepted and
read together with the report of the Auditor-General.

APPRECIATION

The Committee wishes to express its sincere appreciation to the Mayor, Council, Municipal Manager,
management and officials of the municipality for their support and cooperation during the year under review.

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The Committee also acknowledges the support and assistance of the Office of the Auditor-General, CoGTA
and KZN Provincial Treasury.

________________________________
N.R. SIKHAKHANE (TSHABALALA)
Chairperson of the Audit Committee
30 November 2017

APPENDIX M
Annual Financial Statements 2016/2017 Financial Year
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