UMDONI MUNICIPALITY (KWA-ZULU NATAL) NCOP LOCAL GOVERNMENT WEEK

1. UMDONI MUNICIPALITY (KWA-ZULU NATAL) NCOP LOCAL GOVERNMENT WEEK 31st JULY 2012 to 03rd AUGUST 2012 DATE: 02nd AUGUST 2012, THURSDAY VENUE: OLD ASSEMBLY CHAMBER, PARLIAMENT TIME: 09H00 to 11H00 PRESENTATION BY: His Worship, The Mayor, Cllr SSI Khwela

2. UMDONI MUNICIPALITY TOPIC ATTAINING CLEAN AUDITS & THE SUSTAINABILITY OF FUNDING FOR SMALLER LOCAL MUNICIPALITIES (LM’S)

3. THEME: ACCELERATING SERVICE DELVERY & ADDRESSING CHALLENGES THROUGH EFFECTIVE CO-OPERATIVE GOVERNANCE OVER-VIEW LEADERSHIP GOVERNANCE PERFORMANCE MANAGEMENT FINANCIAL MANAGEMENT • Mission • Principles • Values • Locality • Challenges • Strengths • Opportunities • Free Basic Serv • Population • Demographic • Ward Resp. • Council • Oversight Role • Council Rep. • Admin - Functionality • Admin – Functionality • Internal Audit • Audit Comm. • Fraud Prev. • Risk Mang. • MPAC • Cllr Inherited • Cllr Hand-Over • Dashboard • Future Priorities • Debt Recovery Proc. • Fin. Ratios • Income • Debtors • Investments • Assets • Grants • SCM • Fin. Chall. COLLECTIVE RESPONSIBILITY

4. VISION “By 2020 Umdoni will be the J.E.W.E.L of the South Coast”

5. MISSION “Working together in contributing to Job creation, Economic viability through sustained Local economic development to ensure the Well being of our community in Eco friendly environment.”

6. PRINCIPLES Job Creation Economic Viability Wellbeing of the Community Environmentally friendly environment Local Economic Development VALUES

7. ABOUT UMDONI AND IT’S SURROUNDS / LOCALITY The Umdoni Municipality KZ 212 is situated in the Ugu District Municipality DC21 on the Kwa-Zulu Natal South Coast. The Municipality is conveniently located about 50 km from Durban and 65 km from Port Shepstone. Umdoni has an approximate coastline of 40 km and stretches inland with 3 Traditional Authorities. It abuts the Umzumbe Municipality to the south, the Vulamehlo Municipality to the west and Ethekwini Municipality to the north. The Municipality can be divided into three major land use zones, which are commercial agriculture dominated by sugar cane, the traditional authority areas located in the north of the municipal area and coastal urban nodes forming part of the ribbon development stretching from Amanzimtoti down to the South Coast. The Urban nodes include Scottburgh, Park Rynie, Kelso, Pennington, Bazley, Ifafa Beach, Elysium, Mtwalume and the historic town of Umzinto. The Municipality has 10 wards. The Umdoni Municipality, according to the 2007 Community Survey by Statistics South Africa has a population of 76 010.

8. KEY CHALLENGES The Umdoni Municipality is a small municipality and is faced with many challenges, some of which are indicated below: Unemployment and Poverty: large percentage of the population is not economically active and lack skills. Backlog on the provision of basic services in rural areas Limited financial resources/income and a limited rates base. Limited available, suitable Land for housing development. Limited available, suitable Land for expansion and industrial development. Negative Impacts of certain social issues e.g. HIV/AIDS, poverty, unemployment etc. Lack of the provision of social services throughout the area eg. health, education Participation in the economy, and benefits, by previously disadvantaged groups. Lack of necessary skills to contribute to economic growth, and address unemployment in the area.

9. KEY CHALLENGES cont.... • 10. Lack of certain key established, partnerships with stakeholders. • 11. Public Participation is considered an area where improvement is required, especially to include the entire geographical area. • 12. Inter-governmental non-alignment challenges persist. • Increase in Crime levels are considered a challenge; • 14. Lack of trade. • 15. Outstanding debt to the municipality is considered a challenge. • 16. Eskom, energy is a challenge. • 17. Skillsmigrations. • Low industrial base, with limited industrial economic activity and over reliance on primary products in agriculture and tourism sectors. • Disparity and inequality: including rural and urban dichotomies.

10. KEY STRENGTHS • The municipal strengths include the following: • The area has natural assets: a natural coastline, good quality soils, temperate climate: these can be harnessed to contribute to economic development imperatives through the tourism and agriculture sectors; • The area has a diversity of cultural assets: which are currently not harnessed to contribute towards economic imperatives; • Umdoni is easily accessible by air, road and rail: it is located along the primary movement corridor of the N2, and has an existing railway infrastructure and is located in close proximity to Durban with • it’s harbor, airport, markets and logistics. • Umdoni has established tourism infrastructure and an existing tourism market for coastal, golf and diving adventure tourism. Diversification of tourism products will improve the market share of Umdoni. • Umdoni has a reasonable level of existing infrastructure along the coastline, and is considered a “going concern”

11. KEY OPPORTUNITIES • Opportunitiesinclude the following: • Tourism can be grown and diversified due to the existing market, infrastructural development, natural products, going concern of the area, and location to transportation; • Agriculture can be diversified and niche as well as value add considered in product diversification due to Umdoni’s location, soils and climate which portend well for agricultural development; • With a human capital resource, jobs and employment provide opportunities for investors and economic growth interventions; • Existing agricultural products grown lend themselves to explore by-products being utilized for energy production i.e. Ethanol, and in terms of its location, possibly even a processing plan for ethanol; • There is great potential for development in Umdoni.

12. LEADERSHIP OVERSIGHT ROLE:

13. UMDONI’S REGISTER OF OPINIONS: OFFICE OF THE AUDITOR-GENERAL (SA) Umdoni Dashboard Report - June 2012 docx (3).doc

14. FUTURE PRIORITIESFINANCIAL YEAR 2011-2014, Focal Area

15. FUTURE PRIORITIESFINANCIAL YEAR 2011-2014, Targeted Focal Area

16. FUTURE PRIORITIESFINANCIAL YEAR 2011-2014 Streamline Strategic PlanningStratPlan Report 2011 .doc Clean Audit Opinion MTAS - Annual Report - Internal Audit.doc Municipal Turnaround Strategy (MTAS)….Outcome 9 (Efficient, Effective and Economical Local Government) Back to Basic02 SEPT BACK TO BASIC CONSOLIDATED REPORT (2).doc Enhance Inter Governmental Relations & Sector Interaction

17. FINANCIAL SUSTAINAILITY Guidance and Legislative Provisions MFMA MFMA Circulars Budget Regulations Revised reporting tools to National Treasury All the above highlight the focus on financial sustainability.

18. FINANCIAL SUSTAINAILITY Major Sustainability Factors Political Leadership Need to balance communities needs with funding available to ensure greatest efficiency and effectiveness of allocation of resources. Hard decisions are required as funding is not sufficient to cater for all backlogs. Focus must be on collection of outstanding funds due.

19. FINANCIAL SUSTAINAILITY Major Sustainability Factors, cont… Socio-Economic Factors Unemployment and Poverty of Population. Stimulation of Local Economy. Migration of Skilled and Semi Skilled Population leaving aged and unskilled constituents. Population access to minimum basic services.

20. FINANCIAL SUSTAINAILITY Major Sustainability Factors, cont… Administration Provide accurate and timely information to allow informed decisions to be taken. Must clearly indicate the available cash reserves in addition to accrual and committed funding. Must advise council on total asset/project costing. Focus on core-mandate. Reduction of Un-authorised expenditure. Efficient & Effective use of asset base

21. FINANCIAL SUSTAINAILITY Other Sustainability Factors Ensuring all services are billed and debtors are collected timeously. Revenue Enhancement Strategies must be initiated. Ensuring staff costs are reflective of needs required for service delivery. Need to investigate/invest new technologies to reduce operating costs. Ensuring a balance between new capital projects and repairs and maintenance.

22. FINANCIAL SUSTAINAILITY Critical Success Factors of Sustainability The IDP must be representative of needs and utilize accurate data. The budget must be realistic and funded and aligned to the IDP. In year Monitoring and Evaluation must be entrenched as part of the oversight process. Whilst the backlogs remain , financial discipline must prevail to ensure that in the long term sustainability for all our communities.

23. A SOUND STRUCTURE (1) COUNCIL (2) Oversight Committee (3) Audit Committee (5)EXCO, Mayor (6) Finance /Adm Committee (7) Chief Accounting Officer (MM) (4) External Audit Function (A-G) (10) Internal Audit Function (9) All HOD’s(Sec57 Emp) (8) Chief Financial Officer (CFO)

24. COLLECTIVE RESPONSIBILITY 1.Control Environment Create a control Environment that is conducive. 8. Accountability MUNICIPAL MANAGER (Administratively) & MAYOR (Politically) 2.Objective Setting Set objectives that encompass the vision and mission of the municipality CLEAN AUDIT REPORT (“The Achievable Target”) 3.Control Identification Identify threats & opportunities that may result in objective not being achieved. 7. Oversight & Compliance Control INTERAL AUDIT for Independence & Alignment to A-G 6.Management Control CFO for Implementation – AFS & Working Papers & Snr MANAGEMENT 4.Situational Analysis Assess and measure challenges and obstacles 5.Roleplayers AUDIT COMMITTEE, COUNCIL & A-G (for intervention)

25. THE END “THANK YOU – NGIYABONGA” QUESTIONS, COMMENTS and CLARIFICATION “THANK YOU – NGIYABONGA” QUESTIONS, COMMENTS and CLARIFICATION