TURNAROUND PLAN: GOVERNANCE IMPLEMENTATION PLAN Impact: Municipal financial viability and sustainability
INDICATOR BASELINE TARGET
Non escalation of UIFW, lack of investigation and submission of report by MPAC
Reduction of
Unauthorized Exp by R 500 000 000 Irregular Exp by R200 000 000
Fruitless and Wasteful Exp by R100 000 000
Unauthorized Exp=R 981 805 417 Irregular Exp=R389 380 490 Fruitless and Wasteful Exp=R143 034 362
Reduction of
Unauthorized Exp by R 500 000 000 Irregular Exp by R200 000 000 Fruitless and Wasteful Exp by R100 000 000
The need to promulgate revenue anhancement by- laws
Reduction and curbing of the UIFW
Reduced UIFW Unauthorized Exp=R 981 805 417 Irregular Exp=R389
380 490 Fruitless and Wasteful Exp=R143
034 362
Reduction of UIFW by 50%
To have 12 by-laws to be promulgated Various by-laws
developed but not promulgated.
Promulgate prioritised by-laws focused on revenue
enhancement.
Municipality adhering and observing high ethical values and principles in their daily operations
Ethics strategy and plan
Implement the Ethics Strategy &
Plan
Zero tolerance enviornment of fraud and corruption.
Draft Anti-corruption Strategy
Implement the Final approved Anti- Corruption & Fraud Strategy
The need for an
Organisational Structure that can respond to operational needs
Obtain council approval of the Reviewed Organizational Structure
Current structure last approved in April 2017
Have reviewed structure approved by 30 January 2021
No Job Descriptions were developed after the merger
New job descriptions to be developed in line with rewieved structure
Only sec 56/57 have Job description
To have generic job descriptions for levels 3 - 6
The non peruance of the post-merger change management process caused the occurance of two organizational cultures, i.e.
Randfontein vs Westonaria
Initiate the change management process in the municipality
No Change management Strategy in place.
Introduce a programme of change management workshops The need to promulgate
revenue anhancement by- laws
To insitutionalise and Embed Ethical Culture within
the municipality
To have 12 by-laws to be promulgated Various by-laws
developed but not promulgated.
Promulgate prioritised by-laws focused on revenue
enhancement.
Inadequate internal controls and processes for
performance assessment of contractors.
Submission of monthly performance assesment reports of the contractors for monitoring of contractor performance
Quarterly
performance report
Monthly
performance reports.
Increasing outstanding Rand Water account
Up to date Rand Water acoount
Outstanding debt as at 30 June 2020 amounts to R111m.
Inability to service the monthly and arrears Eskom
account
Up to date Eskom account
R30.5 million reduction for the
2020/2021 FY.
Outstanding debt as at 30 June 2020 is
R422 million.
Unfunded budget Compile Balanced and funded budget
R888 thousand deficit.
Balance and funded budget with zero deficit by 30 June 2021.
Excessive contracts that are not affordable
Reviewed affordable contracts
Contracts not affordable due to financial constraints
Review of top twenty contracts
Current allocation of the library grant result in a shortfall of R7mfor salaries and R2m for library security, it therefore does not fully cover the provision of the library services
To acquire a fully funded mandate for the provison of library services
R28,862 000 R38m
The 20% agency
commission allocated by the Gauteng Department of Roads and Transport for the provision of the motor vehicle registration authority results in a shortfall of R1 200 000 which does not fully cover the operational costs of licensing services
To acquire a fully funded mandate for the provison of licensing services
20% 40%
Unfunded mandate for the payment of farm activities.
IssuingRFP for leasing out the farm
Expenditure = R592 578 Income = R20 770
To lease the out the farm to interested and qualifying tenant.
Outstanding grant transfer from human settlements
The outstanding grant transfer to the
municipality of R39m
R39m R39m
Improve revenue collection
Council approval of the Strategy upon review and input from all stakeholders
Development of the Integrated Revenue Management Strategy
Final approval of the strategy by 30 June 2021
Increasing outstanding Rand Water account
Up to date Rand Water acoount
Outstanding debt as at 30 June 2020 amounts to R111m.
Improve revenue collection: Provision of free basic services to indigent households.
4, 845 8,000 Indigents on
Register
Implementation of the LED strategy and plan.
LED strategy from previous
Municipalities (Westonaria and Randfontein not aligned)
Draft LED strategy funded by the office of the premier and UJ.
Final approval of the strategy
Improve the overall viability of the municipality
Financial viability and sustainability
Financial viability and sustainability Financial viability and
sustainability Improve revenue collection: Provision of free
basic services to indigent households.
4, 845 8,000 Indigents on
Register
ACTIVITY BUDGET TIMEFRAME RESPONSI
BILITY VARIANCE
To ensure that MPAC
investiagates and report UIFW matters to council.
0 30-Jun-21 Accounting Officer
MPAC Council
The R1.5b UIFW
investigations not concluded and tabled to Council.
Development, adoption and Implementation of preventative controls to reduce UIFW.
Deviation Committee has been established to assess compliance of all the deviations before approval by the MM.
0 30-Jun-21 Executive managers
None
Update the UIFW register for tracking the growth of UIFW
Quarterly Executive managers
None Provide quarterly progress reports
on the implementation of the controls to Province as per legislation
Quarterly Executive managers
None
Municipal Public Accounts Committee (MPAC) should appropriately investigate UIFW expenditure as per 2018/19 audit and recommend corrective measures (i.e. recovery, write off and stringent consequence measures as per the outcomes and recommendations of the investigations.
30-Jun-21 MPAC/COO None
Consulative process: EXCO to prioritise 12 by-laws for
promulgation. Publish and advertise in local newspapers.
Publish draft by-laws on the municipslity's website for public comments. Identify other
methods to enhnace consultation.
Present by-laws to council for adoption.
400,000 30-Jun-21 CoGTA and EM: CSS
Not all developed by- laws can be promulgated simultaneously
Present by-laws to Council for comments, noting and approval to proceed with public consultation process.
30-Jun-21 EM: CSS None
Consultative Process: Publish draft by-laws in government gazette, Publish advertisements in local newspapers and identify other methods to enhance consultation.
30-Jun-21 EM: CSS and CoGTA
None
Present final by-law to Council for adoption
30-Jun-21 EM: CSS None
Publish final by-laws. 30-Jun-21 EM: CSS
and CoGTA
None Implement awareness programs
on Ethics and Anti-Fraud Strategies
0 Quarterly All Executive Managers CoGTA and The Ethics Institute (TEI)
None
Training and Awareness workshop on Ethics Policies, Fraud and Corruption strategy
0 Quarterly COO, CAE, Ethics Manager
None
Implementation of Fraud Risk Assessment
0 30-Jun-21 COO, CAE, Ethics Manager
None
Regular engagements Ethics Working Committee (Each dept. is represented)
0 30-Jun-21 COO, CAE, Ethics Manager
Held two EWC Meetings
Consultations with EM's started in 13 November 2019 for reviewal of the structure. Inputs / comments were given by departments and submitted to COGTA.
OPEX 30-Jun-21 EM: CSS Current
structure not responsive to operational requirements HR to develop process plan and
roal out plan interms of prioratising Job Descriptions and also for new positions . To consult with organized Labour and employees to sign off the job descriptions.
OPEX 30-Jun-21 EM: CSS Due to
capacity challenges the process was delayed
Develop and implement Change management Strategy for RWCLM. Assign Change Management Champions
OPEX 30-Jun-21 COGTA None
Performance assessment
template to be completed monthly to assess the performance of the service provider
0 30-Jun-21 All Executive managers
None
In-depth Independent Review of Top 20 Contracts for compliance with legislation and their impact on municipal finances.
0 30-Jun-21 All Executive managers
None
Priority to be the impact of the prepaid contract, Security
contract, MBD Collections, Vehicle Fleet Leases Contracts on the municipal finances
0 30-Jun-21 All Executive managers
None
Three months notifications of expiry of contracts to contractors to prevent month to month extensions of contracts
0 30-Jun-21 All Executive managers
None
Review and table the adjustment budget. The RES and cost containment to be incorporated in the adjustment budget.
0 30-Jun-21 CFO R888 thousand deficit.
Implementation of the revenue
enhancement strategy. - Monthly CFO None Implementation of the cost
containment strategy. - Monthly CFO None Ensure alignment of Revenue
Enhancement Plan to SDBIP, Budget and IDP
-
30-Jun-21 CFO None
Improvement of the collection rate by implementing the credit control policy.
- 30-Jun-21 CFO MM
R109m short payment since as at 31 March 2021.
MEC/Mayoral regular
engagements with Department Public Enterprises and Eskom for timeous resolution of electricity provision issues.
- 30-Jun-21 CoGTA coordinate engagement s
None
Provide monthly progress reports on the implementation of the plan to the Province and affected communities.
- 30-Jun-21 CFO None
Improvement of the collection rate by implementing the credit control policy.
- 30-Jun-21 CFO MM
None
MEC/Mayoral regular engagements with DWS,
Randwater for timeous resolution of water and electricity provision issues.
- 30-Jun-21 CFO &
CoGTA
None
A letter of request for additional allocation of the library grant to be submitted to the Department of Sport, Recreation, Arts and
Culture The matter to be tabled in the
Sport and Recreation IGR Forum
R28,862 000
01-Jan-21 EM:CS The
Department of Sport,
Recreation, Arts and Culture reduced the current library grant allocation with R1.5m which then resulted to a further shortfall Table an item to council to
authorise the Accounting Officer to negotiate the revision of the current SLA with GDRT from
80/20 to 60/40 The matter to be escalated to the
Roads and Transport IGR Forum
R80 000 000
Jan-21 EM: CS Delay from
GRDT to consider the request to review the current SLA
Facilitate resolution of underfunded functions of Agriculture
R26 870 30-Jun-21 EM LED CoGTA GPT
Call for presentation around December 2020 Follow up on the outstanding
grants transfer of R39m
0 30-Jun-21 EM LED CoGTA GPT Dept. Human
settlements
None
Adoption and Council approval of the CoGTA developed Integrated Revenue Management Strategy
0
30-Jun-21 CFO and COGTA
not performed
Implementation of Indigent management Policy. Improve number of indigent registration to qualifying households within the community
0 30-Jun-21 CFO 3 199
Ensure appropriate systems to collect, collage, verify & store the indigent information
0 30-Jun-21 CFO and CoGTA
None
Implement regular Data cleansing of indigent billing data to ensure accuracy and completeness
0 30-Jun-21 CFO None
Improve communication between Finance and Social Development units of the municipality
0 30-Jun-21 CFO None
Submission of the report on the implementation of the strategy and Plan on monthly basis to the Province
0 30-Jun-21 CFO None
Develop an effective Economic Development strategy and plan.
Provide a budget for the implementation of the startegy and plan. Provide monthly progress reports on the implementation of the plan to the province
0 31-Mar-21 EM : LED Delayed public participation
Review the in-depth municipal viability assessment undertaken by CoGTA that will inform the Financial Turn Around Strategy and Plan. The assessment includes all KPAs of the Municipality (Finance, Governance, Institutional and Service Delivery)
0 30-Jun-21 CFO &
CoGTA
None
Draft a Municipal Viability Strategy and Plan. This must be linked to Back to Basics Support
Programme.
0 31-Mar-21 CFO &
CoGTA
None
Council to approve the municipal viability Strategy and Plan and related budget
0 31 April 2021 CFO &
CoGTA
None
Implementation of the municipal viability Strategy and Plan.
0 31 June 2022 CFO &
CoGTA
None
REASON FOR VARIANCE
CORRECTIVE
MEASURE PROGRESS UPDATE AS AT 30 APRIL 2021
None The R1.5b UIFW
investigations not concluded and tabled to Council.
The R1.5b UIFW investigations not concluded and tabled to Council.
None None
None None
None None
None None
Budgetary
constraints delayed promulgation
Upon availability of funds othe rby-laws are to be prioritised for
promulgation.
By laws forwarded to Cogta for their inputs and legal opinion.
None None
None None
None None
None None
None None Departmental fraud risk assessment is in progress. Two
departments are done so far.
None None 3 Municipal officials attending the training.
None None 3 Municipal officials attending the training.
None None 3 Municipal officials attending the training.
To cater for operational needs
Upon approval the filling of prioritized vacancies will commence
All the Departments have presented and the Organisational Design – Staff – Establishment – Macro
Structure to be taken to LLF for consultation on 11/03/2021.
Capacity constraints
To have job description for all positions on the rewieved structure with the assistance of COGTA.
Steering Committee to be established with
comprises of organised labour.
All Managers and Organized Labour to be trained with the intervention from CoGTA. Training to commence in
March 2021.
None Phase 2 training to be rolled out for levels 4 - 9
Phase 2 training to be rolled out for levels 4 - 9
None None The performance assessment of the service providers is submitted with the invoice.
None None A report on the review of security contract served in Maycom on the 14th of October 2020 and could not serve in the council meeting that was held on the 28th of December 2020 as it was part of the items that were removed from the agenda by the speaker . A security sepcialist was appointed on the 9th of February 2021 to conduct a security risk assessment to inform the decision on the implementation of a combination of security solution.
None None OoP appointed Deloitte to conduct an independent
review of top 10 contracts, security contract included.
We await their report to advise on the review
None None BEC meeting was held on the 9th of April 2021 to
consider the security tender. The bid has been
submitted to Internal Audit for purpose of probity on the 19th of April 2021. BAC to sit on the 23th of April 2021 to avoid delay in the appointment of the tender
Expenditure exceeds revenue.
Implementation of the revenue enhancement and cost containment.
The draft budget 2021/22 was tabled to Council on the 24th March 2021. The final budget will be tabled at the end of May. The budget is not funded with the deficit of R3 million.
None None Progress reported quarterly.
None None Progress reported quarterly.
None None The budget is aligned to the IDP.
Cash flow constraints.
Improvement of the collection rate by implementing the credit control policy.
The oustanding balance owing to the Eskom account as at 31 April 2021 is R650 million.
None None Monthly meetings are held with Eskom to monitor the
payment arrangement.
None None Monthly progress report submitted to MayCo.
None None The outstanding balance owing to Rand water account
as at 31 April 2021 amounts to R171 million.
None None The municipality is able to pay the monthly current account.
The GPT abd Cogta to intervene
The GPT and Cogta to intervene
The gazette dated 7 April 2021 indicating the grant allocation of R31m for the new financial year 2021/2022 was received on. The shortfall has now decreased to R5m
Obtain a council resolution to enable AO to negotiate the revision of the current commission from 80/20 to 60/40
Obtain a council
resolution to enable AO to negotiate the revision of the current commission from 80/20 to 60/40
The item to request council approval to negotiate the 80/20 SLA served in the Council meeting of the 24th of February 2021. The resolution was fowarded to DOT for consideration, to date there was no response received from the competent authority
Delayed
appointment due to community
uncertainity for the future of the farm.
Call for the applicants to make the presentation of the respective application proposal.
The negotiations to fund the agricultural functions are in progress.
No feedback received from CoGTA/GDHS.
Follow up with CoGTA/GDHS on the transfer of the outstanding grant.
Awaiting Provincial Treasury's progress report
The draft strategy not yet received for review
Engage COGTA through follow up to ensure draft strategy is received and reviewed
No progress
Lockdown regulations prohibited any service delivery campaigns.
Resumption of indigent registration programs and evens post covid 19 level 1 regulation
Resumption of indigent registration programs and evens post covid 19 level 3 regulation. Number of registered indigents is 8855.
None None Quartely reports are tabled on the implementation of the indigent policy
None None Data cleansing is an ongoing process
None None Departmental meetings are held monthly.
None None Quarterly reports are submitted to MayCo.
Public participation process not finalized.
To publish the draft LED strategy on the local newspaper and website for comments.
The Economic development startegy is published for public comments
None None In progress
None None In progress
None None In progress
None None In progress
