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CENTLEC (SOC) LTD ANNUAL REPORT
FINANCIAL YEAR 2015/16
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
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Registered name of the public entity Centlec (SOC) Ltd
Company registration number 2003/011612/30
Country of incorporation and domicile South Africa
Nature of business and principal activities Electricity distribution
Chief Executive Officer (CEO) Mr. A.N. Mgoqi
Chief Finance Officer (CFO) Mr. T.J. Ramulondi
Chief Operations Officer (COO) Mr. L.G. Kritzinger
Directors Mr. N. Mokhesi (Chairperson)
Ms. D.C Myeni (Deputy Chairperson)
Mr. K.M Moroka
Mr. C.A.K Choeu
Ms. Z.C Uwah
Ms. N.D Mochochoko
Mr. M.P Mohale
Mr. M.I Seoe
Registered office College Square Telkom Building
Bloemfontein
9324
Business address 195 Nelson Mandela Drive
College Square Telkom Building
Bloemfontein
9301
Postal address Private Bag X14
Brandhof
Bloemfontein
9324
Contact telephone numbers +27(51) 412 2613
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01 July 2015 to 30 June 2016
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Email address [email protected]
Website address www.centlec.co.za
Controlling entity Mangaung Metropolitan Municipality
Bankers ABSA
Auditors Auditor-General of South Africa
Company Secretary Phatshoane Henney Inc.
Attorneys Leepile & Mbewe Inc.
EG Cooper
Phatshoane Henney Inc.
Eugene Attorneys
Motaung attorneys
Mthembu & Mahomed
Mhlambi Attorneys
Ramothello, Raynard & Tsotetsi Inc.
Maduba Attorneys
Pedzisai Pion Attorneys
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01 July 2015 to 30 June 2016
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COMPANY SECRETARY’S CERTIFICATE TO THE SHAREHOLDER OF CENTLEC (SOC) LTD
In accordance with the provisions of the Companies Act 71 of 2008, Phatshoane Henney Inc., the
Company Secretary of Centlec State Owned Company Ltd, hereby certifies that:
In respect of the reporting period ended 30 June 2016, the Company has lodged with the
Commissioner of the Companies and Intellectual Property Commission (CIPC), all returns and notices
prescribed by the Act and that all such returns and notices are true, correct and up to date.
___________________________________________
COMPANY SECRETARY OF CENTLEC (SOC) LTD
Phatshoane Henney Inc.
Date: 30 November 2016
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01 July 2015 to 30 June 2016
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CHIEF EXECUTIVE OFFICER’S QUALITY CERTIFICATION
I, A.N. Mgoqi, Chief Executive Officer of Centlec State Owned Company Ltd, hereby certify that:
The Annual Report for the 2015/2016 financial year has been prepared in accordance with the
Municipal Systems Act and the Municipal Finance Management Act and regulations made under
these Acts.
A.N. Mgoqi
CHIEF EXECUTIVE OFFICER
Date: 30 November 2016
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
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Legislation covering financial and administrative management:
The Constitution of the Republic of South Africa 1996, No. 108 of 1996
a) Basic Conditions of Employment Act, No. 15 of 1997 and regulations thereto
b) Labour Relation Act, No. 66 of 1995
c) South African Bargaining Council Main Collective Agreement 2007/2012
d) Occupational Health and Safety Act, No. 85 of 1993 and regulations thereto.
e) Companies Act, No. 71 of 2008, (Chapter 8) and regulations thereto
f) Municipal Finance Management Act, No. 56 of 2003 and regulations thereto
g) Municipal Systems Act, No. 32 of 2000 and regulations thereto.
h) Value Added Tax Act, No. 84 of 1991.
i) Electricity Regulations Act No. 4 of 2006
j) Nationally Energy Regulator Act, No. 40 of 2004
k) King III Corporate Governance
l) NRS048 – 2:2003 Second Edition Electricity Supply – Quality of Supply
m) NRS047 – 1:2005 Third Edition Electricity Supply Quality of Service
n) Supply Chain Management: A guide for accounting officers of Municipalities and Municipal
Entities October 2005
o) National Key Point Act, No. 102 of 1980 and regulations thereto
p) Employment Equity Act, No. 55 of 1998 and regulations thereto
q) Municipal Structures Act, No. 117 of 1998 and regulations thereto
r) Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 and regulations
thereto
s) Unemployment Insurance Act, No. 63 of 2001 and regulations thereto
t) Promotion of Administrative Justice Act, No. 3 of 2000
u) Skills Development Act, No. 97 of 1998 and regulations thereto
v) Broad-based Black Economic Empowerment Act, No. 53 of 2003
w) Cross-boundary Municipalities Laws Repeal and Related Matters Act, No. 23 of 2005
x) Municipal Fiscal Powers and Functions Act, No. 12 of2007.
y) Intergovernmental Fiscal Relations Act, No. 97 of 1997.
z) Intergovernmental Fiscal Regulations Framework.
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Abbreviations/Acronyms:
a) AFS Annual Financial Statements
b) AGSA Auditor-General South Africa
c) CEO Chief Executive Officer
d) CFO Chief Financial Officer
e) CIPC Companies and Intellectual Property Commission
f) COO Chief Operations Officer
g) DEA Department of Environmental Affairs
h) EDI Electricity Distribution Industry
i) EM Executive Manager
j) EPMDS Employee Performance Management and Development System
k) EME Emerging Micro Enterprise
l) EXCO Executive Committee
m) GRAP Generally Recognised Accounting Practices
n) HDI Historically Disadvantaged Individuals
o) ICT Information and Communication Technology
p) IDP Integrated Development Plan
q) KPA Key Performance Area
r) KPI Key Performance Indicator
s) MFMA Municipal Finance Management Act
t) MFP Municipal Finance Planning
u) MMM Mangaung Metropolitan Municipality
v) MTREF Medium-Term Revenue and Expenditure Framework
w) NERSA National Energy Regulator of South Africa
x) PMS Performance Management System
y) POE Portfolio of Evidence
z) PwC PricewaterhouseCoopers
aa) RED Regional Electricity Distributor
bb) SALGA South African Local Government Association
cc) SAWMU South African Municipal Workers Union
dd) SCM Supply Chain Management
ee) SDBIP Service Delivery and Budget Implementation Plan
ff) SHREQ Safety, Health, Risk, Environment & Quality
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gg) SMME Small Medium Micro Enterprise
hh) SOC State Owned Company
ii) WSP Workplace Skills Plan
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Glossary:
a) Accessibility
indicators:
Explore whether the intended beneficiaries are able to access services
or outputs.
b) Accountability
documents:
Documents used by executive authorities to give “full and regular”
reports on the matters under their control to Parliament and provincial
legislatures as prescribed by the Constitution. These include plans,
budgets, in-year and Annual Reports.
c) Activities: The processes or actions that use a range of inputs to produce the
desired outputs and ultimately outcomes. In essence, activities
describe "what we do".
d) Adequacy
indicators:
The quantity of input or output relative to the need or demand.
e) Annual Report: A report to be prepared and submitted annually based on the
regulations set out in Section 121 of the Municipal Finance
Management Act. Such a report must include annual financial
statements as submitted to and approved by the Auditor-General.
f) Approved Budget: The annual financial statements of a municipality as audited by the
Auditor-General and approved by council or a provincial or national
executive.
g) Baseline: Current level of performance that a municipality aims to improve when
setting performance targets. The baseline relates to the level of
performance recorded in a year prior to the planning period.
h) Basic municipal
service:
A municipal service that is necessary to ensure an acceptable and
reasonable quality of life to citizens within that particular area. If not
provided, it may endanger the public health and safety or the
environment.
i) Budget year: The financial year for which an annual budget is to be approved –
means a year ending on 30 June.
j) Cost indicators: The overall cost or expenditure of producing a specified quantity of
outputs.
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k) Distribution
indicators:
The distribution of capacity to deliver services.
l) Financial
Statements:
Includes at least a statement of financial position, statement of financial
performance, cash-flow statement, notes to these statements and any
other statements that may be prescribed.
m) General Key
performance
indicators:
After consultation with MECs for local government, the Minister may
prescribe general key performance indicators that are appropriate and
applicable to local government generally.
n) Impact: The results of achieving specific outcomes, such as reducing poverty
and creating jobs.
o) Inputs: All the resources that contribute to the production and delivery of
outputs. Inputs are "what we use to do the work". They include finances,
personnel, equipment and buildings.
p) Integrated
Development Plan
(IDP):
Sets out municipal goals and development plans.
q) National Key
performance areas:
• Service delivery and infrastructure
• Economic development
• Municipal transformation and institutional development
• Financial viability and management
• Good governance and community participation
r) Outcomes: The medium-term results for specific beneficiaries that are the
consequence of achieving specific outputs. Outcomes should relate
clearly to an institution's strategic goals and objectives set out in its
plans. Outcomes are "what we wish to achieve".
s) Outputs: The final products, or goods and services produced for delivery.
Outputs may be defined as "what we produce or deliver". An output is
a concrete achievement (i.e. a product such as a passport, an action
such as a presentation or immunization, or a service such as
processing an application) that contributes to the achievement of a Key
Result Area.
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t) Performance
Indicator:
Indicators should be specified to measure performance in relation to
input, activities, outputs, outcomes and impacts. An indicator is a type
of information used to gauge the extent to which an output has been
achieved (policy developed, presentation delivered, service rendered).
u) Performance
Information:
Generic term for non-financial information about municipal services and
activities. Can also be used interchangeably with performance
measure.
v) Performance
Standards:
The minimum acceptable level of performance or the level of
performance that is generally accepted. Standards are informed by
legislative requirements and service-level agreements. Performance
standards are mutually agreed criteria to describe how well work must
be done in terms of quantity and/or quality and timeliness, to clarify the
outputs and related activities of a job by describing what the required
result should be. In this Employee Performance Management and
Development System (EPMDS), performance standards are divided
into indicators and the time factor.
w) Performance
Targets:
The level of performance that municipalities and their employees strive
to achieve. Performance Targets relate to current baselines and
express a specific level of performance that a municipality aims to
achieve within a given time period.
x) Service Delivery
and Budget
Implementation
Plan:
Detailed plan approved by the mayor for implementing the
municipality’s delivery of services; including projections of the revenue
collected and operational and capital expenditure by vote for each
month. Service delivery targets and performance indicators must also
be included.
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y) Vote: One of the main segments into which a budget of a municipality is
divided for appropriation of money for the different departments or
functional areas of the municipality. The Vote specifies the total amount
that is appropriated for the purpose of a specific department or
functional area.
Section 1 of the MFMA defines a “vote” as:
a) one of the main segments into which a budget of a municipality
is divided for the appropriation of money for the different
departments or functional areas of the municipality; and
b) which specifies the total amount that is appropriated for the
purposes of the department or functional area concerned
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Table of Contents
Legislation covering financial and administrative management:.................................... 5
Abbreviations/Acronyms: ................................................................................................... 6
Glossary: .............................................................................................................................. 8
1. CHAPTER 1: CHAIRPERSON’S FOREWORD AND EXECUTIVE SUMMARY .......... 16
1.1. OVERVIEW BY THE CHAIRPERSON ...............................................................................................................16
1.2. Chief Executive Officers’ overview .................................................................................................18
1.3. Vision ..................................................................................................................................................21
1.4. Mission ...............................................................................................................................................21
1.5. Values .................................................................................................................................................21
1.6. Organisational structure ..................................................................................................................22
1.7. Legal Requirements ..........................................................................................................................23
1.8. Purpose of an Annual Report ..........................................................................................................23
1.9. Scope of report ..................................................................................................................................23
1.10. Functions, Population and Service Delivery Overview .................................................................23
1.11. Financial Health Overview ................................................................................................................27
2. CHAPTER 2: GOVERNANCE ...................................................................................... 30
2.1. Intergovernmental relations .................................................................................................................30
2.1.1. Introduction to co-operative governance and intergovernmental relations ....................................30
2.2. Public accountability and participation ................................................................................................31
2.2.1. Overview .........................................................................................................................................31
2.2.2. Public meetings...............................................................................................................................31
2.3. Ethical Leadership ...............................................................................................................................32
2.4. Political Governance: Board of Directors ............................................................................................32
2.4.1. Board Members as at 30 June 2016 ..............................................................................................37
2.4.2. Board meetings ...............................................................................................................................37
2.4.3. Board meeting attendance ..............................................................................................................38
2.4.4. Board Committees ..........................................................................................................................39
2.4.4.6. Engineering Committee ..............................................................................................................43
2.4.4.7. Meetings of Board Committees ..................................................................................................43
2.4.5. Board decision-making ...................................................................................................................44
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2.5. Administrative Governance .................................................................................................................45
2.5.1. The Executive Management ...........................................................................................................45
2.5.2. Remuneration .................................................................................................................................47
2.6. Corporate Governance ........................................................................................................................48
2.6.1. Corporate Citizenship .....................................................................................................................48
2.6.2. Compliance with laws, rules, codes and standards ........................................................................49
2.6.3. Risk Management and Internal Audit .............................................................................................49
2.6.4. Anti-corruption and fraud strategy ..................................................................................................52
2.6.5. Supply Chain Management ............................................................................................................53
2.6.6. The following bids were awarded during the year: .........................................................................54
2.6.7. Policies ............................................................................................................................................54
2.6.8. By-laws ...........................................................................................................................................55
2.6.9. Public participation in drafting of by-laws .......................................................................................55
2.6.10. Website .......................................................................................................................................55
2.6.11. Public Satisfaction on Municipal Services ..................................................................................57
3. CHAPTER 3: SERVICE DELIVERY PERFORMANCE ................................................ 59
3.1. Objectives and strategies ....................................................................................................................59
3.2. Pre-determined Objectives ..................................................................................................................59
3.2.1. The Annual Performance Summary of Executive Managers .........................................................59
3.2.2. Office of Chief Executive .............................................................................................................61
3.2.3. Office of Company Secretary ......................................................................................................83
3.2.4. Human Resource Services ..........................................................................................................89
3.2.5. Department of Finance .................................................................................................................98
3.2.6. Department of Engineering - Wires ..........................................................................................116
3.2.7. Department of Engineering- Retail ...........................................................................................129
3.2.8. Department of Performance & Compliance .............................................................................138
4. CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE ................... 155
4.1. Introduction ........................................................................................................................................156
4.2. Workforce profile ...............................................................................................................................156
4.3. Employees with Disability ..................................................................................................................157
4.4. Workforce movement ........................................................................................................................158
4.4.1. Recruitment ...................................................................................................................................158
4.4.2. Promotion ......................................................................................................................................159
4.4.3. Terminations .................................................................................................................................160
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4.4.4. Human Resource Policies ............................................................................................................161
4.4.5. Financial Competency Development ............................................................................................161
5. CHAPTER 5: FINANCIAL PERFORMANCE ............................................................. 162
5.1. Revenue ............................................................................................................................................162
5.2. Expenditure .......................................................................................................................................162
5.3. Surplus ..............................................................................................................................................163
5.4. Financial Position ..............................................................................................................................163
5.5. Cash Flow Statement ........................................................................................................................163
5.6. Budget ...............................................................................................................................................163
6. CHAPTER 6: AUDITOR-GENERAL FINDINGS ON PRIOR YEAR ISSUES ............. 164
6.1. Purpose of the report.........................................................................................................................164
6.2. Introduction and background .............................................................................................................164
6.3. Executive summary: Implementation of the Audit Action Plan..........................................................165
6.3.1. Improvements to the internal control environment .......................................................................165
6.3.2. Progress on matters reported in the audit report ..........................................................................165
Contact details ................................................................................................................. 171
7. APPENDIXES ............................................................................................................. 173
7.1. APPENDIX A: BOARD MEMBERS; COMMITTEE ALLOCATION AND ATTENDANCE .................173
7.2. APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES ......................................................173
7.3. APPENDIX C: THIRD TIER ADMINISTRATIVE STRUCTURE........................................................173
7.4. APPENDIX D: FUNCTIONS OF ENTITY..........................................................................................173
7.5. APPENDIX E: WARD REPORTING .................................................................................................173
7.6. APPENDIX F: WARD INFORMATION ..............................................................................................173
7.7. APPENDIX G: RECOMMENDATIONS OF THE AUDIT COMMITTEE ............................................173
7.8. APPENDIX H: LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS .................173
7.9. APPENDIX I: MUNICIPAL ENTITY PERFORMANCE SCHEDULE .................................................173
7.10. APPENDIX J: DISCLOSURES OF FINANCIAL INTERESTS ..........................................................173
7.11. APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE ............173
7.12. APPENDIX L: CONDITIONAL GRANTS RECEIVED .......................................................................173
7.13. APPENDIX M and N: CAPITAL EXPENDITURE ..............................................................................173
7.14. APPENDIX O: CAPITAL PROGRAMME BY PROJECT BY WARD ................................................173
7.15. APPENDIX P: SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS ....................173
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7.16. APPENDIX Q: SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER
SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION .............................173
7.17. APPENDIX R: DECLARATION OF LOANS AND GRANTS MADE .................................................173
7.18. APPENDIX S: DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71 ....173
7.19. APPENDIX T: ANNUAL FINANCIAL STATEMENTS ......................................................................173
7.20. APPENDIX U: REPORT OF THE AUDITOR GENERAL ON CENTLEC SOC (LTD) .....................173
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1. CHAPTER 1: CHAIRPERSON’S FOREWORD AND EXECUTIVE
SUMMARY
1.1. OVERVIEW BY THE CHAIRPERSON
In order to achieve its vision to all its customers, Centlec operates
according to a clearly defined and carefully developed strategy. We have
spent extensive time and resources on developing, refining and changing
this strategy into action, so that it can form a firm foundation on which we
can work for all the people, businesses and communities of the Southern
Free State.
Centlec has delivered on a number of important strategic areas during the financial year
2015/16. Centlec has continued to align itself to the strategies and goals of its shareholder,
Mangaung Metropolitan Municipality (MMM). The organisation values its strategic
stakeholders and builds and maintains sustainable relationships with them. Great progress
has been made in solving metering problems (tampering), which resulted in the conversion
of rotational meters to pre-paid meters, and identification and replacement of faulty meters.
The major challenge experienced during the year under review was the significant decline of
revenue. Strategies have been developed to ensure that this area of concern is being
addressed going forward.
The entity has obtained an unqualified audit opinion for the year 2014/15, which was a key
focus area because of the implementation of a broad range of controls and measures to
address the issues raised in the Auditor-General’s audit opinion in the previous year.
I am pleased to report that concerns raised over management’s difficulty in stabilising the
revenue control environment have now been addressed, and additional measures have been
instituted.
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In the year ahead, I am confident that the Board and Management of Centlec will continue to
strive to be a “reliable energy utility that enables social and economic upliftment.”
I take this opportunity to thank our shareholder, as well as my colleagues at Centlec, for their
support in the last few months in leading the organisation’s journey to achieving its goals.
As the term of office for the previous Board has come to an end, I would like to extend my
appreciation for their contribution made during their term of office. I am looking forward to this
new chapter and having the opportunity to serve the organisation and the community in the
upcoming financial year.
______________________
CHAIRPERSON OF THE BOARD
Mr. N. MOKHESI
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1.2. Chief Executive Officers’ overview
As the industry is advancing from being mechanical and technology-
focused to one that recognizes that sustainability depends on a deep
understanding of our customers and their needs, we continue to
focus on strengthening our brand in the Free State. While significant
challenges still confront our city, mostly as a result of rapid growth, I
am confident that we have made significant improvements in
delivering on the objectives of the Service Delivery and Budget
Implementation Plan (SDBIP) during the year under review.
We focused on identifying problem issues as mentioned below, which affected the entity’s
performance and customer service:
- Debt collection;
- Metering (tampering);
- Copper theft; and
- Hiking electricity tariffs.
We examined what needed to be fixed in our business and established clear plans to address
the difficult issues head-on, agreeing on a common way forward and delivering on action
plans by setting measurable milestones with regular review dates to ensure that these
problem issues are addressed and improvements delivered. We also increased our focus on
the team’s ownership and accountability for segment performance, as well as speed of action
in the event of poor delivery. It is important going forward to focus on preventative measures
rather than reactive solutions.
Despite this, we were fortunate that we could continue to render high quality services to our
residents during the past year. We will continue to do so, despite the challenges we face. The
service standards set in the Customer Services Policy will remain one of the instruments
whereby we will measure our performance.
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Centlec also invested a total of R 246 229 941 in capital projects, mainly funding infrastructure
projects. A total of R 204 801 029 of the capital expenditure has been funded internally. Part
of this money helped the entity to provide electricity successfully to the following areas:
Five hundred and thirty-seven (537) connections that have been paid for are completed.
One hundred and ninety-eight (198) new connections and one thousand six hundred and
twenty (1 620) conversions (shiftings) were completed.
Two thousand and fifty-four (2,054) smart street lights have been installed in the MMM
area by 30 June 2016.
There was 100% progress on the establishment of the 132/11kV 20MVA Groenvlei
Distribution Centre by 30 June 2016, as the sub-station has been energized.
Thirty-four (34) high masts have been erected and twenty-six (26) have been energized
in Mangaung (Bloemfontein, Botshabelo and Thaba ‘Nchu).
We place our employees first as we believe that everyone should be able to return home from
work safely. We continue to strive to reduce or eliminate risks that could harm employees,
contractors, and all others affected by our business.
Centlec’s Training and Development Centre is performing at a satisfactory level. Training is
provided to internal and external stakeholders. The section continues to participate in
industry-wide activities aimed at not only improving the electrical engineering profession, but
also at protecting the integrity of the quality of training offered to the candidates.
Centlec has implemented strategies to protect our business and improve livelihoods, to
support long-term sustainable growth, and therefore to create value for shareholders. It has
been a privilege over the past financial year to witness how deeply management and
employees believe in Centlec and the immense support and assistance that is given to local
communities.
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Going into the 2016/2017 financial year, discussions with stakeholders within the energy
sector are held regularly to ensure that Centlec’s strategic direction considers the provision
of alternative sources of energy in its business model.
I would like to extend my appreciation to the Board for their guidance. I also thank the
management team, who have embraced the challenges and worked tirelessly throughout the
year to uphold Centlec’s mission and vision.
CHIEF EXECUTIVE OFFICER
Mr. A.N. MGOQI
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1.3. Vision
“To be a reliable energy utility that enables social and economic upliftment”
1.4. Mission
To provide optimal service delivery as mandated by the Mangaung Metropolitan Municipal
Council.
To strategically manage our operations in an effective, efficient and financially prudent
manner, as measured against relevant indicators.
To seek the most cost effective and innovative energy solutions in partnership with relevant
stakeholders in order to maximise shareholder value.
To train, develop, attract and retain a highly skilled workforce and to promote sound
relations with organised labour.
To ensure a safe and healthy environment for our workforce and the community.
To be a socially responsible corporate citizen that is concerned with improving the lives of
the community and the environment in which we operate.
1.5. Values
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BOARD
(VACANT)
Company
Secretary
1.6. Organisational structure
Chief Executive Officer
A.N. Mgoqi
Executive Manager:
Human Resources
G.A.S. Molefe
Chief Operations
Officer
L.G. Kritzinger
Executive Manager:
Engineering Wires
(Acting) T. Nkala
Executive Manager:
Engineering Retail
M.A.E. Pobe
Chief Financial Officer
T.J. Ramulondi
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1.7. Legal Requirements
In terms of Section 121 (1) of the MFMA, every Municipality and every municipal entity must
for each financial year prepare an annual report in accordance with this Chapter of the MFMA.
The Council of a municipality must, within nine months after the end of a financial year, deal
with the annual report of the municipality and of any municipal entity under the Municipality’s
sole or shared control in accordance with Section 129 of the MFMA.
1.8. Purpose of an Annual Report
a) To provide a record of the activities of the municipality or municipal entity during the
financial year to which the report relates;
b) To provide a report on performance against the budget of the municipality or municipal
entity for that financial year; and
c) To promote accountability to the local community for the decisions made throughout
the year by the municipality or municipal entity.
1.9. Scope of report
This annual report covers Centlec (SOC) Ltd.’s (the municipal entity) governance, financial,
service delivery performance, and environmental, broader economic and overall sustainability
performance information for the financial year 2015/16. It provides an account of the entity’s
progress as at the end of June 2016 and offers a forward-looking perspective in terms of future
plans and value generating strategies.
1.10. Functions, Population and Service Delivery Overview
The municipal entity is mandated to provide electricity services to all its customers. As the
electricity distribution service provider of the MMM, the municipal entity’s core competency is
to purchase, distribute and sell electricity within its geographical footprint.
Centlec was established as a municipal entity wholly owned by MMM in terms of the Municipal
Systems Act, No. 32 of 2000 (“Systems Act”) and the Companies Act, No. 71 of 2008
(“Companies Act”).
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Distribution map:
The municipal entity is accountable to provide network services to all its customers, which
include:
Electricity Distribution/Energy Services: the municipal entity distributes electricity to
Mangaung, Kopanong, Naledi, Mantsopa and Mohokare Municipalities. The municipal
entity purchases most of its energy from Eskom at 20 supply points in 18 towns in the
Southern Free State and the Mangaung supply area.
Construction of Electrical Networks: All new electrification networks and upgrading of
existing networks are handled by the municipal entity’s design and construction sections
and where additional capacity is required, it is done through the supply chain processes
and the appointment of private companies.
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Operation, Maintenance and Extension of Networks: The maintenance of electricity
distribution networks forms a large part of the municipal entity’s operations. A 24-hour
standby service ensures that customers are not inconvenienced by long power outages.
Ongoing evaluation is performed on existing networks to detect any overloading or failure
and this is addressed with the upgrading and/or extension of the particular network.
Metering, Pre-payment Vending and Billing Services: Modern metering systems are
employed to meter the various categories of customers. Pre-payment and credit metering
systems are in use. Extensive pre-payment vending facilities are available to customers
to ensure convenience and availability at all times. Credit meter reading and billing was
done in-house from the 1st of July 2011.
The municipal entity has approximately two hundred and sixteen thousand five hundred and
fifty (216, 550) active customers ranging from domestic to commercial and industrial properties
as detailed below: The number has dropped slightly compared to the previous year due to a
data purification exercise which resulted in non-active meters in the Mangaung area being
deactivated from the system.
Customer Base:
Customer base as per tariff group on 30 June 2016:
Tariff Group: 2015-
2016 (Baseline)
Number of Consumers
Total MMM Kopanong Naledi Mohokare Mantsopa
INCLINING BLOCK 188 626 10 816 5 442 5 229 2 208 212 321
FLAT RATE BUSINESS 4 154 664 262 218 9 5 307
BULK RESELL 2 31 31
BULK RESELL 3 179 179
BULK RESIDENTIAL 2
SFS 1 1
BULK RESIDENTIAL 3
SFS 2 5 7
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01 July 2015 to 30 June 2016
26 | P a g e
Tariff Group: 2015-
2016 (Baseline)
Number of Consumers
Total MMM Kopanong Naledi Mohokare Mantsopa
CENTLEC
DEPARTMENTAL TOU 2 2
COMFLEX - SINGLE
PHASE 7 7
COMFLEX - THREE
PHASE 103 103
COMFLEX SFS – THREE
PHASE 9 1 10
ELECFLEX 1 4 4
ELECFLEX 2 162 162
ELECFLEX 2 SFS 4 4
ELECFLEX 3 496 496
ELECFLEX 3 SFS 17 3 9 29
HOMEFLEX - SINGLE
PHASE 3 3
HOMEFLEX - THREE
PHASE 84 84
HOMEFLEX - THREE
PHASE SFS 8 8
SPORT STADIUMS 7 7
SPORT STADIUMS SFS 2 2
TOTAL 193 858 11 522 5 714 5 456 2 217 218 767
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01 July 2015 to 30 June 2016
27 | P a g e
1.11. Financial Health Overview
Although the municipal entity has been able to honour its financial commitments, financial
viability remains one of the major challenges faced by municipalities and municipal entities.
The main challenges having an impact on the financial viability of the entity are:
Debt collection;
Low revenue growth;
Above-inflation increase in bulk purchases;
Distribution losses (mainly as a result of theft);
Cable theft; and
High unemployment.
Financial health summary
Details
Original Budget Adjustment Budget Actual
Variance % ( R ) % ( R ) % ( R )
2015/16 2015/16 2015/16
Revenue 2,529,172,610 100% 2,377,871,472 100% 2,148,595,003 229,276,469 10%
Electricity 2,385,422,917 94% 2,235,384,355 94% 2,025,684,694 * 209,699,661 9%
Grants 26,315,789 1% 26,315,789 1% 26,315,789 - 0%
Other Revenue 117,433,904 5% 116,171,328 5% 96,594,520 # 19,576,808 17%
Less: 2,306,433,918 2,131,398,749 2,145,881,886
(14,483,137) -1%
Expenditure 2,306,433,918 2,131,398,749 2,144,867,523
(13,468,774) -1%
Loss on disposal on assets
- - 1,014,363 & (1,014,363) -100%
Surplus
222,738,692 9% 246,472,723 10% 2,713,117 243,759,606 99%
*: The variance results from a plea made by Eskom to inform consumers to use electricity more sparingly and this had an impact on the general
electricity consumption. Other factors include the tariffs adjustments during the course of the year and the electricity theft and meter tampering.
#: The variance is mainly due to the fact that street lights consumption revenue has been removed from the entity’s revenue following the Council
resolution that street lights be transferred from MMM to the entity. (Refer to Note 25)
&: No budget is provided for losses.
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01 July 2015 to 30 June 2016
28 | P a g e
Financial Health Summary (Continued):
Details
Capital Expenditure
2015/16 2014/15
Original Budget R 325 356 850 R 298 963 243
Adjustment Budget R 246 122 723 R 299 093 299
Actual Expenditure R 246 229 941 R 248 319 018
R 0,00
R 500 000 000,00
R 1 000 000 000,00
R 1 500 000 000,00
R 2 000 000 000,00
R 2 500 000 000,00
R 3 000 000 000,00
Original Budget Adjustment Budget Actual
Revenue 2015/16
Revenue Electricity Grants Other Revenue Less: Expenditure Surplus
R 0
R 50 000 000
R 100 000 000
R 150 000 000
R 200 000 000
R 250 000 000
R 300 000 000
R 350 000 000
2015/16 2014/15
Capital Expenditure 2015/16
Original Budget Adjustment Budget Actual Expenditure
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
29 | P a g e
CHAPTER 2: GOVERNANCE
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
30 | P a g e
2. CHAPTER 2: GOVERNANCE
2.1. Intergovernmental relations
2.1.1. Introduction to co-operative governance and intergovernmental relations
Guidance in terms of co-operative governance is achieved via structures and forums created
and functioning in terms of the Intergovernmental Fiscal Relations Act and the
Intergovernmental Fiscal Regulations Framework, Service delivery in line with National
KPAs, which ultimately become municipal KPAs and eventually KPIs.
National intergovernmental structures:
The municipal entity participates in National Forums and this assists in the appropriate
allocation of resources to address service backlogs.
Provincial intergovernmental structure:
The municipal entity entered into Service Delivery Agreements with four (4) neighbouring
municipalities on electricity distribution and maintenance which enhance service delivery to
communities.
Relationships with municipal entities:
Decisions are taken by the Board according to the IDP programmes and interventions from
municipalities as well as the allocated budget for executing these decisions. Performance
contracts are entered into with all executive managers in line with the SDBIP which forms
part of the municipal SDBIP. Progress and performance of these executive managers are
reported on in terms of Section 87 of the MFMA on both a monthly and quarterly basis.
Policies of the entity relating to budget are aligned with those similar policies of the
municipality.
District intergovernmental structures:
The South African Local Government Association (SALGA) regional office plays a key role
in ensuring that regular meetings are held including local and district municipalities, with
derived benefit of service delivery co-ordination.
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2.2. Public accountability and participation
2.2.1. Overview
In terms of Section 15(1) and (2) (b) of the Municipal System Act 32 of 2000, a municipal
entity must create bylaws. These bylaws are in place and are reviewed on a needs basis.
Section 16(1) (a) (i) of the Municipal System Act requires a municipal entity to develop a
system of governance that complements formal representative governance with a system of
participatory governance. In view of this, the municipal entity does the following:
IDP meetings;
Performance management monthly reporting; and
Community participation in the budget process.
Provision is made in terms of the budget to execute Section 16(1) (c) of the Municipal System
Act. Section 18(1) (d) of the Municipal System Act requires the municipality to make available
to the community information concerning municipal governance, management and
development. The municipal entity complies with this in that there are various public meetings
held with the community.
2.2.2. Public meetings
Communication, participation and forums:
This is coordinated by MMM in terms of legislative requirements, with MMM also
responsible for arrangements in relation to the meetings.
Ward committees:
This is contained in the combined annual report of MMM.
Effectiveness of public meetings held:
This is contained in the combined annual report of MMM.
IDP Participation and alignment:
This is contained in the combined annual report of MMM.
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32 | P a g e
2.3. Ethical Leadership
Responsible leadership, characterised by the values of responsibility, accountability, fairness
and transparency, has been a defining characteristic of the entity since the entity’s
establishment in 2003. The Board recognises the impact that the municipal entity has on the
economy and society and therefore strives to ensure that there is an ethical relationship
between the entity and all its stakeholders. The Board has taken steps to entrench ethical
leadership in the formulation of its strategy and to ensure that there are consequences for
non-adherence to these values. The Board provides effective leadership based on a
principled foundation and the municipal entity subscribes to high ethical standards. The
Board has put in place structures and controls to inculcate an ethical culture.
The fundamental objective has always been to do business ethically while building a
sustainable entity that recognises the short- and long-term impact of its activities on the
economy, society and the environment. In its deliberations, decisions and actions, the Board
is sensitive to the interests and expectations of the municipal entity’s stakeholders and to
ensure that its decisions are grounded in the municipal entity’s values.
2.4. Political Governance: Board of Directors
The Board of Directors during the reporting term consists of eight (8) non-executive directors
and was appointed with effect from 28 February 2012. The term of the previous Board ended
in November 2011. Four (4) of the previous Board members were appointed for a period of
four (4) years, while the other four (4) members were appointed for a period of three (3)
years. At a sitting on 29 January 2015, council resolved to extend the contract of three (3)
Board members with an extra year.
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01 July 2015 to 30 June 2016
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The new Board of Directors was appointed on 01 July 2016 and will serve for Four (4)
years in office.
Initials And
Surname
Designation Race Gender
N. Mokhesi
Chairperson African Male
D.C Myeni
Deputy Chairperson African Female
K.M Moroka
Non-Executive Director African Male
C.A.K Choeu
Non-Executive Director
African Male
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01 July 2015 to 30 June 2016
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Initials And
Surname
Designation Race Gender
Z.C Uwah
Non-Executive Director Coloured Female
N.D Mochochoko
Non-Executive Director African Female
M.P Mohale
Non-Executive Director African Male
M.I. Seoe
Non-Executive Director African Male
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01 July 2015 to 30 June 2016
35 | P a g e
Centlec’s out-going Board of Directors that served during the 2015/16 financial year were
as follows:
Initials And
Surname
Designation Race Gender
M.L Mbali Chairperson African Male
F.P Zitha
Deputy Chairperson African Female
Z.C Uwah
Non-Executive Director Coloured Female
N. Mokhesi
Non-Executive Director African Male
S.G Xulu
Non-Executive Director African Male
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01 July 2015 to 30 June 2016
36 | P a g e
Initials And
Surname
Designation Race Gender
M.S Zimu
Non-Executive Director African Male
T.A.J Mongake
Non-Executive Director African Male
K.M Moroka
Non-Executive Director African Male
The Board has met regularly and retains full control of the company. The Board remains
accountable to MMM (the municipal entity’s sole shareholder) and its stakeholders, the
citizens of Mangaung and the other areas where electricity is distributed.
Non-executive directors contribute an independent view to matters under consideration and
add to the depth of experience of the Board. The roles of Chairperson and Chief Executive
Officer of the company are separated, with responsibilities divided between them. The
Chairperson has no executive functions. Members of the Board have unlimited access to the
Company Secretary, who acts as an advisor to the Board and its committees on matters
including compliance with company rules and procedures, statutory regulations and best
corporate practices.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
37 | P a g e
The Board or any of its members may, in appropriate circumstances and at the expense of
the company, obtain the advice of independent professionals.
2.4.1. Board Members as at 30 June 2016
2.4.1.1. Duties of directors
Section 93H of the Municipal System Act, No. 32 of 2000, stipulates that:
(1) The Board of Directors of a municipal entity must:
(a) Provide effective, transparent, accountable and coherent corporate governance and
conduct effective oversight of the affairs of the municipal entity;
(b) Ensure that the municipal entity comply with all applicable legislation and agreements;
(c) Communicate openly and promptly with the parent municipality of the municipal entity;
and
(d) Deal with the parent municipality of the municipal entity in good faith.
2.4.1.2. Statement of Compliance
The Board of Directors and executives recognise and are committed to the principles of
transparency, integrity and accountability advocated by the King III Code on Corporate
Governance. Through this process, the shareholder and other stakeholders are assured that
the company is being managed ethically according to prudent risk parameters in compliance
with generally accepted corporate practices. The monitoring of the company’s compliance
with King III forms part of the mandate of the Audit and Risk Committee. The municipal entity
has complied with the code in all material respects during the year under review except for
cases as reported in the note on the financial statements on non-compliance with legislation.
The Board held both ordinary and special meetings during the period under review as follows,
in which a number of decisions were taken.
2.4.2. Board meetings
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01 July 2015 to 30 June 2016
38 | P a g e
Type of meeting Date Venue
Ordinary 12/08/2015 Protea Wanderers Hotel, Corlett Drive, Sandton,
Johannesburg
Special 29/08/2015 Mangaung Metro, Bram Fischer Building, Nelson
Mandela Drive, Bloemfontein
Ordinary 07/11/2015 Centlec (SOC) Ltd, Telkom Building, 195 Nelson
Mandela Drive, Bloemfontein
Special 04/12/2015 Centlec (SOC) Ltd, Telkom Building, 195 Nelson
Mandela Drive, Bloemfontein
Ordinary 26/02/2016 Centlec (SOC) Ltd, Telkom Building, 195 Nelson
Mandela Drive, Bloemfontein
Special
Teleconference
13/03/2016 Centlec (SOC) Ltd, Telkom Building, 195 Nelson
Mandela Drive, Bloemfontein
Ordinary 26/04/2016 Centlec (SOC) Ltd, Telkom Building, 195 Nelson
Mandela Drive, Bloemfontein
2.4.3. Board meeting attendance
Names of
Directors
12/0
8/2
015
29/0
8/2
01
5
07/1
1/2
01
5
04/1
2/2
01
5
26/0
2/2
01
6
13/0
3/2
01
6
26/0
4/2
01
6
Total
M.L. Mbali √ √ √ √ √ √ √ 7/7
F.P. Zitha √ x x √ x √ √ 4/7
Z.C. Uwah x √ √ √ √ √ √ 6/7
M.S. Zimu √ √ √ x x √ √ 5/7
S.G. Xulu √ √ x x x √ √ 4/7
T.A.J. Mongake x x √ √ x √ √ 4/7
K.M. Moroka x x √ √ √ √ √ 5/7
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01 July 2015 to 30 June 2016
39 | P a g e
Names of
Directors
12/0
8/2
015
29/0
8/2
01
5
07/1
1/2
01
5
04/1
2/2
01
5
26/0
2/2
01
6
13/0
3/2
01
6
26/0
4/2
01
6
Total
N. Mokhesi x x √ x √ √ x 3/7
√ = present x = apology
2.4.4. Board Committees
The Board had the following committees during the period under review:
Audit and Risk Committee;
Finance Committee;
Human Resources and Remuneration Committee;
Social Responsibility and Ethics Committee;
Information Technology Governance Committee; and
Engineering Committee.
2.4.4.1. Audit and Risk Committee
The committee is responsible for reviewing the effectiveness of the financial reporting
process, the system of internal control and management of financial risks, the assurance
process, and the entity’s process for monitoring compliance with laws and regulations and
its own code of business conduct.
Initials And Surname Designation Race Gender
T.S. Zakuza Chairperson African Male
M.C. Llale Member African Male
C.A. Choeu Member African Male
L. Majake Member African Male
N.P. Lubanga Member African Female
K.M. Moroka Board Representative African Male
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
40 | P a g e
Audit and Risk Committee attendance
Names of Members
11/0
8/2
01
5
28/0
8/2
01
5
23/1
0/2
01
5
30/1
1/2
01
5
15/0
1/2
01
6
19/0
2/2
01
6
22/0
4/2
01
6
Total
T.S. Zakuza √ √ √ √ √ √ x 6/7
M.C. Llale √ x √ √ √ √ √ 6/7
C.A. Choeu √ √ √ √ √ √ √ 7/7
L. Majake x √ √ x √ √ √ 5/7
N.P. Lubanga √ √ √ √ x x √ 5/7
2.4.4.2. Finance Committee
The role of the committee is to assist the Board in fulfilling its responsibility of oversight with
respect to all governance aspects, financial management and financial accounting, inter
alia assisting the Board in fulfilling its responsibility to oversee Centlec’s financial position,
financing plans and programmes, cash management, investment management, employee
retirement plans, insurance management and review of financial and procurement policies.
Initials And Surname Designation
N. Mokhesi Chairperson
T.A.J. Mongake Member
F.P. Zitha Member
Z.C. Uwah Member
Chief Executive Officer Prescribed Officer
Chief Financial Officer Prescribed Officer
Chief Operations Officer Prescribed Officer
EM: Corporate Services Invitee
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
41 | P a g e
2.4.4.3. Human Resources and Remuneration Committee
The role of the committee is to assist the Board in ensuring that the company remunerates
directors and executives fairly and responsibly and the disclosure of directors and
remuneration is accurate, complete and transparent.
Initials And Surname Designation
F.P. Zitha Chairperson
S.G. Xulu Member
M.S. Zimu Member
T.A.J. Mongake Member
M.L. Mbali Member
K.M. Moroka Member
Chief Executive Officer Prescribed Officer
Chief Financial Officer Prescribed Officer
Chief Operations Officer Prescribed Officer
EM: Corporate Services Invitee
EM: Engineering (Retail) Invitee
EM: Engineering (Wires) Invitee
2.4.4.4. Social Responsibility and Ethics Committee
The role of the committee is to assist the Board with the oversight of social and ethical matters
and ensuring that members of the Board of Directors and employees of the entity adhere to
the established Code of Conduct in terms of Schedule 1 and 2 of Municipal Systems Act, No.
32 of 2000, as amended, the Municipal Finance Management Act, No. 56 of 2003, any other
legislation applicable to the entity as well as good governance principles as outlined in the
King III report.
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01 July 2015 to 30 June 2016
42 | P a g e
Initials And Surname Designation
K.M. Moroka Chairperson
T.A.J. Mongake Member
F.P. Zitha Member
Chief Executive Officer Prescribed Officer
Chief Financial Officer Prescribed Officer
Chief Operations Officer Prescribed Officer
2.4.4.5. Information Technology Governance Committee
The role of the committee is to oversee the implementation, monitoring and review of the
Centlec policies, procedures, practices and guidelines aimed at meeting the Information and
Communication Technology (ICT) governance requirements as stipulated in King III.
Initials And Surname Designation
S.G. Xulu Chairperson
M.S. Zimu Member
Z.C. Uwah Member
K.M. Moroka Invitee
Chief Executive Officer Prescribed Officer
Chief Financial Officer Prescribed Officer
Chief Operations Officer Prescribed Officer
EM: Engineering (Retail) Invitee
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01 July 2015 to 30 June 2016
43 | P a g e
2.4.4.6. Engineering Committee
The committee is charged with the responsibility to oversee the implementation, monitoring
and review of the Centlec policies, procedures, practices and guidelines aimed at meeting
the requirements as stipulated in the NRS 047 and 048 documents.
Initials And Surname Designation
M.S. Zimu Chairperson
S.G. Xulu Member
N. Mokhesi Member
Chief Executive Officer Prescribed Officer
Chief Financial Officer Prescribed Officer
Chief Operations Officer Prescribed Officer
EM: Engineering (Retail) Invitee
EM: Engineering (Wires) Invitee
2.4.4.7. Meetings of Board Committees
The respective committees held meetings as follows during the period under
review:
Committee No. of meetings Dates of meetings
IT GOVERNANCE
4
07 August 2015
26 October 2015
22 February 2016
19 April 2016
ENGINEERING
4
07 August 2015
26 October 2015
22 February 2016
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44 | P a g e
Committee No. of meetings Dates of meetings
19 April 2016
HR & REMUNERATION
4
07 August 2015
26 October 2015
22 February 2016
19 April 2016
SOCIAL RESPONSIBILITY
& ETHICS
3
21 December 2015
11 March 2016
25 April 2016
FINANCE
4
12 July 2015
20 October 2015
24 February 2016
19 April 2016
AUDIT & RISK
7
11 August 2015
28 August 2015 Special
23 October 2015
30 November 2015 Special
15 January 2016 Special
19 February 2016
22 April 2016
2.4.5. Board decision-making
During the period under review, the Board has taken a number of decisions for
implementation. Decisions were taken from duly constituted meetings in line with legislation
and such decisions were minuted, the records of which are available in the office of the
Company Secretary.
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01 July 2015 to 30 June 2016
45 | P a g e
2.5. Administrative Governance
The functional areas of the municipal entity’s administration are divided into the Office of the
Chief Executive Officer, Chief Financial Officer, Compliance and Performance, Human
Resources, Engineering - Wires and Engineering - Retail. The entity employed over 506 staff
members.
The entire administration is under the leadership of the Chief Executive Officer who is
accountable to the Board of Directors.
2.5.1. The Executive Management
The Chief Executive Officer, together with his senior managers, constitutes the executive
management team of the municipal entity. The following individuals were part of the
executive management team of the municipal entity for the period under review:
Initials And
Surname
Designation Race Gender
A.N. Mgoqi Chief Executive Officer A Male
T.J. Ramulondi Chief Financial Officer A Male
L.G. Kritzinger Chief Operations Officer W Male
M.A.E. Pobe EM: Engineering Retail A Male
T. Nkala* Acting EM: Engineering Wires A Male
G.A.S. Molefe EM: Human Resource A Female
Explanatory notes on the composition of management during the current year
2015/16.
* Mr M. Sekoboto was appointed as acting EM: Engineering Wires from 01 May 2015 to 31
July 2015.
* Mr M.A.E. Pobe was appointed as acting EM: Wires from 01 August 2015 to 10 December
2015.
* Mr X.G. Faku was appointed as acting EM: Engineering Wires from 11 December 2015 to
10 March 2016.
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01 July 2015 to 30 June 2016
46 | P a g e
* Mr P. Mohapi was appointed as acting EM: Engineering Wires from 11 March 2015 to 10
June 2016.
* Mr T. Nkala was appointed as acting EM: Engineering Wires from 13 June 2016 to 12
September 2016.
The Executive Committee held various meetings during the year under review.
Type of meeting Date Particulars of
representative(s)
Ordinary 02 July 2015 None
Ordinary 08 July 2015 None
Ordinary 15 July 2015 None
Ordinary 22 July 2015 None
Ordinary 29 July 2015 None
Extended EXCO meeting 05 August 2015 Engineering GMs
Ordinary 19 August 2015 None
Ordinary 27 August 2015 None
Special 16 September 2015 None
Ordinary 30 September 2015 None
Ordinary 14 October 2015 None
Special 16 October 2015 None
Continuation of Special 21 October 2015 None
Special 04 November 2015 SAMWU
Special 11 November 2015 Trade Unions
Ordinary 18 November 2015 None
Ordinary 25 November 2015 None
Ordinary 03 December 2015 None
Ordinary 09 December 2015 None
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47 | P a g e
Type of meeting Date Particulars of
representative(s)
Special 12 January 2016 None
Ordinary 20 January 2016 None
Ordinary 19 February 2016 None
Extended EXCO meeting 24 February 2016 GMs
Ordinary 16 March 2016 None
Ordinary 30 March 2016 None
Ordinary 14 April 2016 None
Ordinary 20 April 2016 None
Special 13 May 2016 None
Ordinary 01 June 2016 None
Ordinary 08 June 2016 None
Ordinary 15 June 2016 None
Ordinary 22 June 2016 None
Special 24 June 2016 SAWMU
Ordinary 30 June 2016 None
2.5.2. Remuneration
Non-Executive Directors’ and Independent Audit and Risk Committee members’ fees are
only paid in accordance with the council’s approved fee structure. The remuneration of Non-
Executive Directors amounted to R 1,279,036 while the remuneration of Executive
Management amounted to R 8,574,711. A total of R 74, 031 was paid to officials as acting
allowances. See Notes 30 and 47 respectively for detail in the Annual Financial Statements.
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48 | P a g e
2.6. Corporate Governance
The Board of Directors has adopted a Board charter, which includes matters of ethics,
procedure and conduct of members. The charter is aligned with the MMM charter. Registers
are kept and updated on the disclosure and declaration of interests of directors and senior
management. The Board and senior management ensure that there is full material
compliance to all relevant legislation. The municipal entity’s secretary has certified that all
statutory returns have been submitted to the Companies and Intellectual Property
Commission (CIPC) in terms of Section 268(d) of the Companies Act.
The Board of Directors subscribes to the MMM corporate governance protocol which, inter
alia, regulates its relationship with MMM as its sole shareholder and parent municipality in
the interests of good corporate governance and sound ethics.
The municipal entity’s practices are, in most material instances, in line with the principles set
out in King III. The Board continually reviews the municipal entity’s progress to ensure
improvements in corporate governance. During the review period, the municipal entity
entrenched its risk management reviews. Reporting and compliance assessments were
conducted in terms of the Companies Act and the MFMA.
The annual report for the previous year was completed efficiently in accordance with the
prescripts of Section 121 of the MFMA. The compilation of this annual report was guided by
the same principles.
2.6.1. Corporate Citizenship
The Board and Executive Management recognise that the municipal entity is formed under
a political structure. As such, it has a social and moral standing in society with all the
attendant responsibilities. The Board is therefore responsible for ensuring that the municipal
entity protects, enhances and invests in the well-being of the economy, society and the
natural environment, and pursues its activities within the limits of social, political and
environmental responsibilities outlined in international conventions on human rights. The
Board has a Social Responsibility and Ethics Committee which is tasked with the
responsibility of ensuring that the entity strives to be a good corporate citizen.
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01 July 2015 to 30 June 2016
49 | P a g e
2.6.2. Compliance with laws, rules, codes and standards
The Board is responsible for ensuring that the municipal entity complies with applicable laws
and considers adhering to non-binding rules, codes and standards. The Board has an Audit
and Risk Committee which is tasked with the responsibility of exercising oversight over
compliance.
2.6.3. Risk Management and Internal Audit
The internal audit function of the entity is outsourced to PricewaterhouseCoopers (PwC) who
have continued to provide this service from the previous financial year.
Centlec’s internal audit activity underwent an external quality assessment in July 2014 of
which the outcome of the assessment was “General Conformance”. This means that the
internal audit activity of Centlec conforms to the International Standards for the Professional
Practice of Internal Auditing, which include the Definition of Internal Auditing, Code of Ethics,
and Standards.
The internal audit strategic and operational plan was prepared for the period under review
for consideration and approval by the Audit and Risk Committee. In line with the MFMA, the
plan is risk-based and determined the priorities of the internal audit activities for the period
under review.
Risk assessment workshops were conducted, and risk registers were compiled: The risk
assessment reports dated July and November 2014 identified the top risks facing Centlec.
Further risks identified during various internal audit engagements with a critical or significant
impact rating during the past 15 months were also taken into consideration as per our
summary report dated 04 August 2015. The reports were submitted to the Audit and Risk
Committee for consideration. Based on 2015/16 Internal Audit Plan, the Internal Audit Unit
prepared the following reports for submission to the Audit and Risk Committee.
Type of Report Date of the
Report
Develop internal audit strategic and operational plan 24 August 2015
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Type of Report Date of the
Report
Employee appointment date verification (ad hoc) 27 October 2015
Employee verification process internal audit (ad hoc) 21 January 2016
Knowledge and communication management internal audit 01 February 2016
Audit of Performance Information (Q1 review) 02 February 2016
Review and updating of Internal Audit Charter 29 February 2016
Review and updating of Audit and Risk Committee Charter 29 February 2016
Review and updating of Internal Audit Policy and Procedure
Manual
29 February 2016
Review and updating of Quality and Assurance Improvement
Programme
29 February 2016
Combined assurance policy, framework and implementation plan 29 February 2016
Review and update of Centlec Fraud Prevention Plan 16 March 2016
Close-up of employees files for the 2015/2016 financial year (ad
hoc)
08 April 2016
Audit of Performance Information (Q2 review) 18 April 2016
Corporate Governance internal audit 18 April 2016
Organisational health and safety internal audit 06 May 2016
Internal Audit of revised key performance indicators for 2016/2017
financial year
10 May 2016
Budgetary internal audit 23 May 2016
Supply chain and contract management 24 May 2016
Review and update of Centlec Risk Strategy and Policy 30 May 2016
Review of 2016/2017 SDBIP KPIs (ad hoc) 30 May 2016
Business risk assessment 01 June 2016
Audit of Performance Information (Q3 review) 22 June 2016
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01 July 2015 to 30 June 2016
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Type of Report Date of the
Report
Human resources management - recruitment and training 29 June 2016
Payroll management 12 July 2016
Fleet management internal audit 22 July 2016
Asset maintenance and security management 25 July 2016
Fraud risk assessment 05 August 2016
Follow-up on previous year’s external audit findings and the
proposed actions
15 August 2016
Financial year-end stock count 18 August 2016
The list below indicates internal audit projects that were in process as at year-end:
Type of Report
The internal audit projects currently in the progress of being completed are:
Internal quality review of the Internal audit division, performed by an IIA accredited
quality assessor
Sectional workshop - IT risk assessment
ICT audit
Customer service internal audit
Mid-year performance evaluation of executive management
Revenue management internal audit
Debtors management
Internal Audit projects scheduled for after year-end:
Review of Annual Financial Statements (AFS) for the 2015/2016 financial year
Leave balance internal audit
Audit of Performance Information (Q4 review)
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2.6.4. Anti-corruption and fraud strategy
Centlec subscribes to the principles of good corporate governance, which require the
conducting of business in an honest and transparent manner.
Centlec has a fully functional Audit and Risk Committee in place that executes the oversight
role in fraud prevention. Centlec further has an established and implemented Fraud
Prevention Plan (“the Plan” or “FPP”).
The plan incorporates principles contained in the King Report on Governance for South Africa
– 2009 and the King Code of Governance Principles – 2009, and outlines how Centlec will
address the identification of fraud and taking appropriate action to minimize the effect thereof
on the organisation.
Centlec is committed to fighting fraudulent behaviour at all levels within the organisation.
The policy of Centlec is zero tolerance to fraud. In addition, Centlec will investigate all
incidents of alleged fraud, followed by the application of all remedies available and the
implementation of appropriate prevention and detection controls. These prevention and
detection controls include the existing financial and other controls and checking mechanisms
as prescribed in the systems, policies and procedures of Centlec.
Throughout the financial year, internal audit facilitated several fraud awareness workshops
with employees.
Additionally, a fraud risk assessment workshop was held that incorporated the inputs from
various employees.
During this session, the participants were made aware of the key fraud risks facing Centlec.
The participants completed a survey of the significant risks after the workshop.
The ratings of the identified risks were obtained through a consensus average of the
individual votes obtained on each of these risks.
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The risk assessment process focussed on the following components of the framework:
Event identification – Internal and external events affecting the achievement of an
entity’s objectives (distinguishing between risks and opportunities);
Event categorisation – Events were categorised to individual strategic thrust
objectives; and
Risk assessment – Risks are rated on their impact on each objective, if materialised,
and the likelihood of materialising.
Centlec has an in-house fraud hotline where possible fraud, corruption or any activities
relating to illegal or unethical businesses conducted can be reported.
The in-house fraud hotline can be contacted through the switchboard by dialling
Tel 051 409 2303, and selecting the correct option.
The in-house fraud hotline is monitored and properly maintained by the Chief Security Officer
of Centlec, who will maintain a confidential register.
2.6.5. Supply Chain Management
All the bid committees as per the Supply Chain Management Policy and National Treasury
Guideline have been established by the Chief Executive Officer, and convened regularly to
perform their functions. This addresses the MFMA requirement in Section 112.
Consistent with the Supply Chain Management Policy of the entity, none of the directors or
officers entered into any commercial transaction with the entity during the period under
review.
Supply Chain and Expenditure Management reports were submitted to the Audit and Risk
Committee. The following committees administer procurement within the entity:
Bid Specification Committee
Bid Evaluation Committee
Bid Adjudication Committee
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2.6.6. The following bids were awarded during the year:
Bids Awarded for
2015/16
Black
Owned
HDI (Women/Africans
Ownership)
Local
50 29 7 32
2.6.7. Policies
Various budget-related policies were submitted to the Board and council for approval. The
table below outlines the approved policies for 2015/16:
No. Approved Policies Board
1 Value-Added Tax (VAT) Policy 25 June 2015
2 SCM Policy 25 June 2015
3 Asset Management Policy 25 June 2015
4 Budget and Reporting Policy 25 June 2015
5 Virement Policy 25 June 2015
6 Credit Control and Debt Collection Policy 25 June 2015
7 Banking and Investment Policy 25 June 2015
8 Bad Debts Policy 25 June 2015
9 Tariffs Policy 25 June 2015
10 Irregular, Fruitless and Wasteful Expenditure Policy 25 June 2015
11 Electricity Connection and Disconnection Policy 25 June 2015
12 Electricity Consumption Estimates Policy 25 June 2015
13 Revenue Policy 25 June 2015
14 Customer Care Policy 25 June 2015
15 Long-term Debtors Policy 25 June 2015
16 Sundry Income Policy 25 June 2015
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No. Approved Policies Board
17 Prepaid Electricity Vending Policy 25 June 2015
18 Petty Cash Policy 25 June 2015
19 Subsistence & Travel Policy 25 June 2015
2.6.8. By-laws
There is an Electricity by-law which was published in the Government Gazette on 28 August
1998, under notice 116.
2.6.9. Public participation in drafting of by-laws
Electricity by-laws are revised on a national basis and await supporting legislation in terms
of small scale solar generation.
2.6.10. Website
We are very excited and proud of our re-designed website that was launched during the
financial year. Visit us at our new web address www.centlec.co.za.
The site’s homepage features bright colours and an uncluttered design. We wanted to make
the new website faster, easier to navigate, and more user-friendly.
The website has been divided into the following main tabs:
Home;
Centlec (About us);
Customer care;
Media; Bids;
Services;
Careers;
Tariffs;
Prepaid; and
Contact Us.
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These main tabs were designed to provide detailed information to our appreciated
customers.
The entity’s website has been functional and accessible during the period under review.
Documents to be Published on the Entity’s Website Published / Not
Published
The previous annual reports (2012/13, 2013/14 & 2014/15) Published
All supply chain management contracts above R 100 000 (VAT included) Published
Contracts agreed in 2015/16 to which subsection (1) of Section 33 of the
MFMA applies, subject to subsection (3) of that section
Published
Service Delivery Budget Implementation Plan
SDBIP 2014/15
SDBIP 2015/16
Published
Performance Agreements for 2015/16 and 2016/17 Published
Business Plan
Multi-year Business Plan 2016/17
Published
Budgets
Medium Term Revenue and Expenditure Framework (MTREF)
2014/15 To 2016/17
MTREF 2016-17 To 2018/19
Budget Approval 2015/2016 and 2017/18 by Council
Published
Tariffs
Service Charges 2015/16
Service Charges 2016/17
Electricity Tariffs 2015/16
Electricity Tariffs 2016/17
Published
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Documents to be Published on the Entity’s Website Published / Not
Published
Policies
VAT Policy
SCM Policy
Asset Management Policy
Budget and Reporting Policy
Virement Policy
Credit Control and Debt Collection Policy
Banking and Investment Policy
Bad Debts Policy
Tariffs Policy
Irregular, Fruitless and Wasteful Expenditure Policy
Electricity Connection and Disconnection Policy
Electricity Consumption Estimates Policy
Revenue Policy
Customer Care Policy
Long-term Debtors Policy
Sundry Income Policy
Prepaid Electricity Vending Policy
Petty Cash Policy
Subsistence & Travel Policy
Published
2.6.11. Public Satisfaction on Municipal Services
This task is executed by Mangaung Metropolitan Municipality.
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01 July 2015 to 30 June 2016
58 | P a g e
CHAPTER 3: SERVICE DELIVERY
PERFORMANCE
CHAPTER 3: SERVICE DELIVERY PERFORMANCE
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59 | P a g e
3. CHAPTER 3: SERVICE DELIVERY PERFORMANCE
The parent municipality must ensure that the annual performance objectives and indicators for
the municipal entity are established in agreement with the municipal entity and included in the
municipal entity’s multi-year business plan in accordance with Section 87(5) (d) of the MFMA.
3.1. Objectives and strategies
In line with Section 87(5) (d) of the MFMA, the municipal entity developed a multi-year business
plan which reflected the objectives for the financial year 2015/16.
Therefore, the developmental strategies as espoused in the entity’s Business Plan are directly
linked to specific developmental needs and objectives which must be measured in the
organisational Performance Management System (PMS), and give effect to the targets/goals of
Service Delivery and Budget Implementation Plan (SDBIP) .
3.2. Pre-determined Objectives
Details of Pre-determined Objectives are provided in Section 3.2.2 of this report.
3.2.1. The Annual Performance Summary of Executive Managers
Centlec understands that performance information is the key to effective management,
including planning, budgeting, implementation, monitoring and reporting. Performance
information also facilitates effective accountability, enabling members of the public and other
interested parties to track progress, to identify the scope for improvement and better
understand the issues involved. Going forward Centlec will strive to achieve 100% of all KPI’S
set going forward towards a 100% achievement rate of all KPI’s set.
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The following table presents the key performance of the relevant executives.
Executive Managers Total
No. of
KPIs
Total No. of
KPIs Achieved
for Annual
Performance
Remedial Action
Chief Executive
Officer 17 13
Line managers will closely monitor
performance to ensure the targets are
achieved
Chief Financial
Officer 20 15
Line managers will closely monitor
performance to ensure the targets are
achieved
Company Secretary 6 6
Line managers will closely monitor
performance to ensure the targets are
achieved
Executive Manager:
Human Resource 9 4
Line managers will closely monitor
performance to ensure the targets are
achieved
Executive Manager:
Engineering Wires 13 6
Line managers will closely monitor
performance to ensure the targets are
achieved
Executive Manager:
Engineering Retail 10 5
Line managers will closely monitor
performance to ensure the targets are
achieved
Executive Manager:
Performance and
Compliance
13 7
Line managers will closely monitor
performance to ensure the targets are
achieved
The total No. of
KPI’s of all the
Executive Managers
88 56
For the 2015/2016 financial year Centlec
fully achieved 64% of its set targets.
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3.2.2. Office of Chief Executive
Section 93J of the Municipal Systems Act 32 of 2000: Appointment of chief executive officer.—
The chief executive officer of a municipal entity is accountable to the board of directors for the management of the municipal entity.
VOTE: OFFICE OF THE CHIEF EXECUTIVE OFFICER
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Ensure
compliance
with statutory
financial
reporting
requirements.
12 Monthly, 4
quarterly and 1
annual financial
reports in terms of
section 87, 88, and
121 of Municipal
Finance
Management Act, 56
of 2003 submitted to
12 monthly
financial reports,
4 signed
quarterly signed
off-reports, 1
Mid-term
performance &
budget
assessment
2014/15
Section
87,88 and
121
submitted
to the
parent
municipality
- 12 signed
monthly
financial reports
- 4 signed
quarterly -
reports
- 1 Mid-term
performance &
budget
- Twelve (12)
signed monthly
Section 87
financial reports
were submitted
to the parent
municipality
within seven (7)
Target
Achieved.
Not Required.
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01 July 2015 to 30 June 2016
62 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
the parent
municipality by 30
June 2016
report,1 final
draft budget for
2016/17, 1
Annual Report
for 2014/15
and 1 Annual
Financial
Statement for
2014/15
assessment
report
- 1 final draft
budget for
2016/17
- 1 Annual Report
for 2014/15
- 1 Annual
Financial
Statement for
2014/15
working days of
each quarter.
- Four (4)
quarterly signed
off reports on
the
implementation
of the SCM
Policy were
submitted to the
parent
municipality
within seven (7)
working days of
each quarter.
- One (1) Mid-
term
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63 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
performance &
budget
assessment
report was
submitted by 20
January 2016.
- One (1) mid-
term
performance
and budget
assessment
report for
2015/16 was
submitted by 20
January 2016.
- One (1) final
draft budget for
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01 July 2015 to 30 June 2016
64 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
2016/17 was
submitted by 31
March 2016.
– One (1) Annual
Report for the
2014/15 financial
year and the
financial
statement for
2014/15 was
submitted by 31
August 2015 to
AGSA.
Good
Governance &
Public
Participation
Ensure
achievement
and maintain
Audit report with
clean, unqualified
audit opinion on both
financial and non-
Signed-off
Auditor-
General’s report
2013/14
unqualified
audit
opinion
Unqualified audit
opinion on both
financial and non-
financial
Internal Findings:
Eleven (11)
Internal audit
For Sixteen
(16) Internal
findings
management
Management
actions will be
provided on all
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
65 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
clean audit
opinion
financial
(performance
information)
for 2015/16
financial year
(performance
information) for
2015/16 financial
year by 30
November 2016
engagements
completed
– Total of One
hundred and
seventy-nine
(179) findings:
Critical – Six (6)
Significant-
Seventy-five (75)
Housekeeping-
Fifty-seven (57)
Positive – Forty-
one (41)
Management
responses:
comments/
action have
not yet been
provided.
outstanding
findings.
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01 July 2015 to 30 June 2016
66 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Received – One
hundred and
twenty-two (122)
Not Received –
Sixteen (16)
Not required
(positive) – Forty-
one (41)
External Findings:
For the remaining
forty-two (42)
findings as per
the management
report, the
following took
place:
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67 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
•For thirteen (13)
findings
addressed, the
findings were
confirmed to be
resolved and the
documentation
presented were
adequate to
support this fact;
•For sixteen (16)
findings
addressed, the
findings were
confirmed to be
evaluated during
the subsequent
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01 July 2015 to 30 June 2016
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UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
external audit
process at year
end:
•For nine (9)
findings, the
documentary
proof was readily
made available
for review; and
•For seven (7)
findings, the
documentary
proof was not
made available in
a timely manner
for review.
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01 July 2015 to 30 June 2016
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UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
•For thirteen (13)
findings
addressed, the
findings were
confirmed not to
be resolved;
however,
documentary
proof of remedial
actions was
available as
follows:
For eight (8)
findings, the
documentary
proof was readily
Centlec (SOC) Ltd Annual Report
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70 | P a g e
UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
made available
for review; and
For five (5)
findings, the
documentary
proof was not
made available in
a timely manner
for review.
Infrastructure
Development &
Service
Delivery
Ensure
optimization of
business
processes
Various ICT systems
(i.e. Financial
systems, Vending
systems, etc.,
aligned to the extent
possible and
acquisition of
Internal audit
reports on the
extent of
alignment of ICT
systems and
efficiency
thereof and
relevant signed
Gap/
Situational
analysis
reports
based on
2014/15
progress on
100% alignment
and linking of
various ICT
systems and
acquisition of
automated SCM
to improve
information
The system
integration has
not yet
commenced.
The new
organogram
has been
implemented
and the
system
deliverables
are still going
The new
organogram has
been implemented
and the right
people are going
to be appointed in
the vacant
positions.
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01 July 2015 to 30 June 2016
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UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
automated SCM
system
agreements for
automated SCM
system
this
objective
efficiency of
information
processing and
reporting by 30
June 2016
to be
conducted.
The system
engineering
department
still has to be
capacitated.
Good
Governance &
Public
Participation
Ensure a
functional
Internal Audit
Unit
4 quarterly Internal
Audit reports
submitted to the
Board of Directors
and Audit and Risk
Committee
Number of
quarterly
Internal Audit
reports
submitted to the
Board of
Directors and
Audit and Risk
Committee
2014/15
Internal
Audit Plan,
related
reports and
minutes of
the Board
and Audit
and Risk
Committee
4 Internal Audit
reports submitted
to the Board of
Directors and
Audit and Risk
Committee by 30
June 2016
Three (3) Internal
Audit reports were
submitted to the
Board of Directors
and the Audit and
Risk Committee
by 30 June 2016.
Quarter 4
progress
report will only
be tabled in
July (the date
still needs to
be confirmed)
at the next
Audit and Risk
Not Required.
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01 July 2015 to 30 June 2016
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UNIT: STRATEGIC SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
meetings
where
internal
audit
reports
were
discussed
Committee
meeting.
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UNIT: SAFETY, HEALTH, RISK, ENVIRONMENT & QUALITY (SHREQ)
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Ensure
sustainable
and
responsible
approach to
business.
4 quarterly internal
Safety, Health, Risk,
Environment &
Quality (SHREQ)
compliance reports
with indicators of
highest level of
compliance with all
applicable legislation
and the company
policy on SHREQ
Number of
quarterly
internal SHREQ
reports, NOSA
reports and/or
Certificates of
Compliance
Accredited
training
intervention
s and rating
of the
company in
line with
NOSA
standards.
Less than 2% of
total workforce
reported and
confirmed to have
sustained injuries
and fatalities
while on duty by
30 June 2016
Three (3) monthly
reports for each
quarter have been
conducted that
reflect the type of
accidents that
took place
There is no
variance as
accidents are
unplanned
uncertainties
More safety talks
need to be
presented so that
employees are
abreast of safety
issues.
Employees also
need to adhere to
safety measures
in order to
eliminate injuries
and fatalities on
duty
Transformation
and
Organisational
Development.
Empower
employees
with
knowledge
Four (4) accredited
training interventions
provided to
Number of
accredited
training
interventions
2014/15
Quarterly
SHREQ
Four (4)
accredited
training
interventions
One (1)
accredited
training
interventions was
Three (3)
accredited
training
interventions
A decision was
made to arrange
training in the
third and fourth
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
74 | P a g e
UNIT: SAFETY, HEALTH, RISK, ENVIRONMENT & QUALITY (SHREQ)
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
about SHREQ
Legislation
employees regarding
SHREQ Legislation
provided to
employees
regarding
SHREQ
Legislation
training
reports
provided to
employees
regarding SHREQ
legislation by 30
June 2016
provided to
employees
regarding SHREQ
legislation by 30
June 2016
were not
provided to
employees
regarding
SHREQ
legislation.
The fourth
firefighting
training was
conducted by
the MMM Fire
Department
quarter of every
financial year
Transformation
and
Organisational
Development.
Reduce the
number of
major
environmental
incidents
4 Quarterly
monitoring of
compliance with
SHREQ legislation
and ensure
Number of
quarterly
monitoring
reports and
rating report/
3-star
rating in
line with
NOSA
standards
4 Quarterly
monitoring reports
and 3-star rating
report/certificate
in line with NOSA
Four (4) quarterly
monitoring reports
in line with NOSA
standards were
Target
Achieved
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
75 | P a g e
UNIT: SAFETY, HEALTH, RISK, ENVIRONMENT & QUALITY (SHREQ)
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
incurred and
reported
enforcement so as to
limit major
environmental
incidents in order to
maintain a 3-star
rating level by 30
June 2016
certificate in line
with NOSA
standards by 30
June 2016
conducted by 30
June 2016
Transformation
and
Organisational
Development.
Empower
employees
with
knowledge
about
HIV/AIDS
A minimum of four
(4) education/
information sessions
held with employees
regarding HIV/AIDS
by 30 June 2016
Number of
education/
information
sessions held
with employees
regarding
HIV/AIDS by 30
June 2016
Number of
information/
education
sessions
held in
2014/15
Four (4)
education/
information
sessions held with
employees
regarding
HIV/AIDS by 30
June 2016
Eleven (11)
education/
information
sessions were
held with
employees
regarding
HIV/AIDS by 30
June 2016.
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
76 | P a g e
UNIT: MARKETING & COMMUNICATION
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
To market
Centlec and
promote
access to
information on
institutional
activities.
4 marketing
initiatives undertaken
by 30 June 2016
Number of
marketing
initiatives
undertaken by
30 June 2016
2014/15
marketing
initiatives
4 marketing
initiatives
undertaken by 30
June 2016
Fourteen (14)
marketing
initiatives were
undertaken by 30
June 2016
Target
Achieved
Not Required
Transformation
and
Organisational
Development.
To enhance
good relations
with the media
(Dedicated
Communicatio
n Platform -
External)
2 media publications
and 4 media
sessions held with
the media about the
business of the entity
by 30 June 2016
Number of
media
publications and
media sessions
held with media
about the
business of the
entity by 30
June 2016
Number of
2014/15
media
publications
and media
session
held.
2 media
publications and 4
media sessions
held with media
about the
business of the
entity by 30 June
2016
Two (2) media
publications and
four (4) media
sessions were
held with the
media about the
business of the
entity by 30 June
2016
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
77 | P a g e
UNIT: MARKETING & COMMUNICATION
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
To publish
Newsletter
regarding the
business of
the entity on a
quarterly
basis.
(Dedicated
Communicatio
n Platform -
Internal)
4 quarterly
newsletters
published regarding
the business of the
entity by 30 June
2016
Number of
quarterly
newsletters
published
regarding the
business of the
entity by 30
June 2016
Number of
quarterly
newsletters
published
regarding
the
business
during
2014/15.
4 quarterly
newsletters
published
regarding the
business of the
entity by 30 June
2016
Six (6) internal
newsletters were
published
regarding the
business of the
entity by 30 June
2016
The target was
over-achieved
due to many
activities that
took place that
needed to be
reported and
published
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
78 | P a g e
UNIT: LEGAL & CONTRACT SERVICES
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Ensure
provision of
sound internal
Legal
Services.
100% of user
departments’
requests for legal
and contract services
executed by 30 June
2016
% of user
departments’
requests for
legal and
contract
services
executed by 30
June 2016
N/A 100% of user
departments’
requests for legal
and contract
services executed
by 30 June 2016
The three (3)
monthly contract
management
reports for each
quarter which
reflect legal and
contract services
were submitted by
Phatshoane
Henney by 30
June 2016
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
79 | P a g e
UNIT: AUDIT & RISK MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Ensure
effective
Internal Audit
and Risk
Management
Services
Reviewed the
Internal Audit Charter
and submitted to the
Board for approval
by 31 July 2015
Number of
reviewed
Internal Audit
Charters
submitted to the
Board for
approval by 31
July 2015
2014/15
approved
Internal
Audit
Charter
1 Reviewed the
Internal Audit
Charter and
submitted to the
Board for
approval by 31
July 2015
Internal Audit
Charters were
reviewed by the
Board by 31 July
2015
Target
Achieved
Not Required
Good
Governance &
Public
Participation
Ensure
effective
Internal Audit
and Risk
Management
Services
Develop 1 risk-based
Annual Internal Audit
Plan for the 2015/16
financial year and
submit to the Board
for approval by 31
July 2015
Number of risk-
based Annual
Internal Audit
Plan for the
2015/16
financial year
submitted to the
Board for
2014/15
Annual
Internal
Audit Plan
Develop 1-risk
based Annual
Internal Audit
Plan for the
2015/16 financial
year and submit
to the Board for
approval by 31
July 2015
The Internal Audit
plan was
approved by the
Audit Committee
on 28 August
2015
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
80 | P a g e
UNIT: AUDIT & RISK MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
approval by 31
July 2015
Good
Governance &
Public
Participation
Ensure
effective
Internal Audit
and Risk
Management
Services
Quarterly evaluate
and improve the
effectiveness of risk
management, control
and governance
processes of the
entity by 30 June
2016
Frequency of
evaluation and
improvement of
the
effectiveness of
risk
management,
control and
governance
processes of the
entity by 30
June 2016
2014/15
Internal
Audit
reports
Quarterly
evaluate and
improve the
effectiveness of
risk management,
control and
governance
processes of the
entity by 30 June
2016
The quarterly
reports for each
quarter were
submitted to the
Audit and Risk
Committee
meetings
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
81 | P a g e
UNIT: AUDIT & RISK MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Ensure
effective
Internal Audit
and Risk
Management
Services
Quarterly examining,
evaluating and
reporting on the
adequacy and
effectiveness of the
risk management
process by 30 June
2016
Frequency of
examining,
evaluating and
reporting on the
adequacy and
effectiveness of
the risk
management
process by 30
June 2016
2014/15
Internal
Audit
reports
Quarterly
examining,
evaluating and
reporting on the
adequacy and
effectiveness of
the risk
management
process by 30
June 2016
Examining,
evaluating and
reporting on the
adequacy and
effectiveness of
the risk
management
process is an
ongoing internal
audit process
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
82 | P a g e
UNIT: AUDIT & RISK MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Quarterly evaluate at
institutional level the
existing controls in
terms of their
adequacy and
effectiveness by 30
June 2016
Frequency of
evaluation at
institutional level
of the existing
controls in terms
of their
adequacy and
effectiveness
2014/15
Internal
Audit
reports
Quarterly
evaluate at
institutional level
the existing
controls in terms
of their adequacy
and effectiveness
by 30 June 2016
Quarterly
evaluating the
existing controls
in terms of their
adequacy and
effectiveness is
an ongoing
internal audit
process
Target
Achieved
Not Required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
83 | P a g e
3.2.3. Office of Company Secretary
Section 88 of the Companies Act No. 71 of 2008: Duties of company secretary.—
(1) A company’s secretary is accountable to the company’s board.
(2) A company secretary’s duties include, but are not restricted to—
(a) Providing the directors of the company collectively and individually with guidance as to their duties, responsibilities and powers;
(b) Making the directors aware of any law relevant to or affecting the company;
(c) Reporting to the company’s board any failure on the part of the company or a director to Comply with the Memorandum of
Incorporation or rules of the company or this Act;
(d) Ensuring that minutes of all shareholders meetings, board meetings and the meetings of any committees of the directors, or of the
company’s audit committee, are properly recorded in accordance with this Act;
(e) Certifying in the company’s annual financial statements whether the company has filed required returns and notices in terms of this
Act, and whether all such returns and notices appear to be true, correct and up to date;
(f) Ensuring that a copy of the company’s annual financial statements is sent, in accordance with this Act, to every person who is entitled
to it;
(g) Carrying out the functions of a person designated in terms of section 33 (3).
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
84 | P a g e
VOTE: OFFICE OF COMPANY SECRETARY
UNIT: COMPANY SECRETARY
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Ensure
compliant and
timely
submission of
the company’s
annual return.
Submit the 2016
Statutory Annual
Return of the
company to CIPC as
required by the
Companies Act by 23
May 2016
Date of
submission of
2016 Statutory
Annual Return
of the company
to CIPC as
required by the
Companies Act.
2015
Statutory
Annual
Return
Submit the 2016
Statutory Annual
Return of the
company to CIPC
as required by the
Companies Act by
23 May 2016.
The Statutory
Annual Return of
the company was
submitted to CIPC
as required by the
Companies Act by
23 May 2016.
Target
Achieved.
Not Required.
Good
Governance &
Public
Participation
Maintain an up
to date register
of interests of
directors.
Ensure that all 11
Directors (executive
and non-executive)
of the company
complete appropriate
declaration of
Number of
Directors
(executive and
non-executive)
who completed
declaration of
2014/15
Declaration
of interests
completed
Ensure that all 11
Directors
(executive and
non-executive) of
the company
complete
appropriate
All eleven (11)
(Directors
(executive and
non-executive) of
the company
have completed
the appropriate
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
85 | P a g e
UNIT: COMPANY SECRETARY
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
interest forms by 31
July 2015.
interest forms by
31 July 2015.
declaration of
interest forms by
31 July 2015.
declaration of
interest forms by
31 July 2015.
Good
Governance &
Public
Participation
Maintain an
updated
register of
Company
Directors
Ensure that details of
any incoming or
outgoing Director as
appointed from time
to time are updated
on the register for the
period 1 July 2015 to
30 June 2016.
Updated register
of Directors
2014/15
Register of
Directors
Quarterly sign-off
register of
Directors to certify
that details of any
incoming or
outgoing Director
as appointed from
time to time are
updated on the
register for the
period 1 July
2015 to 30 June
2016.
The signed off
register of
Directors to certify
that details of any
incoming or
outgoing Director
as appointed from
time to time were
updated on the
register for the
period 1 July
2015 to 30 June
2016.
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
86 | P a g e
UNIT: COMPANY SECRETARY
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Ensure that
company
records are
retained in
accordance
with the law.
Maintain a signed
register of retained
company records in
compliance with
Section 24 of the
Companies Act for
the period 1 July
2015 to 30 June
2016
Signed register
of retained
company
records in
compliance with
Section 24 of
the Companies
Act for the
period 1 July
2015 to 30 June
2016
2014/15
Register of
company
records
Quarterly signed-
off register of
retained company
records in
compliance with
Section 24 of the
Companies Act
for the period 1
July 2015 to 30
June 2016
The register of
retained company
records in
compliance with
Section 24 of the
Companies Act
for the period 1
July 2015 to 30
June have been
signed off
quarterly.
Target
Achieved.
Not Required.
Good
Governance &
Public
Participation
Ensure
compliance
with
submission of
annual
Ensuring that copies
of the company’s
signed-off pre-
audited 2014/15
annual financial
statements are
Copies of the
company’s
signed-off pre-
audited 2014/15
annual financial
statements are
2013/14
pre-audited
Annual
Financial
statements
Ensuring that
copies of the
company’s
signed-off pre-
audited 2014/15
annual financial
Copies of the
company’s
signed-off pre-
audited 2014/15
annual financial
statements were
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
87 | P a g e
UNIT: COMPANY SECRETARY
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
financial
statements.
submitted to the
parent municipality
and the Auditor-
General by 31
August 2015
submitted to the
parent
Municipality and
the Auditor-
General by 31
August 2015
statements are
submitted to the
parent
Municipality and
the Auditor-
General by 31
August 2015
submitted to the
parent
Municipality and
the Auditor-
General by 31
August 2015.
Good
Governance &
Public
Participation
Provide
guidance to the
Board as to
their statutory
responsibility.
Ensure that 100% of
the company and the
Board’s requests for
guidance to comply
with the company’s
Memorandum of
Incorporation, the
Board Charter or
rules of the company
% of the
company and
the Board’s
requests for
guidance to
comply with the
company’s
Memorandum of
Incorporation,
the Board
N/A 100% of user
departments’
requests for legal
and contract
services executed
by 30 June 2016.
100% of the
company and the
Board’s requests
for guidance to
comply with the
company’s
Memorandum of
Incorporation, the
Board Charter or
rules of the
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
88 | P a g e
UNIT: COMPANY SECRETARY
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
are executed by 30
June 2016.
Charter or rules
of the company
are executed by
30 June 2016.
company received
for this quarter
are executed by
30 June 2016.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
89 | P a g e
3.2.4. Human Resource Services
The Corporate Services Department is headed by the Executive Manager: Corporate Services and is responsible for, inter alia:
a) the development of a performance-based culture, custodian of the organisational structure; supportive role to the CEO and other
executives;
b) strengthening business structure and applying a range of business goals and overseeing the application of the best practice standards
in human resources management, centralized supports;
c) effective knowledge/information management and business process systems management.
VOTE: HUMAN RESOURCE SERVICES
UNIT: HUMAN RESOURCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Fill all
vacancies as
per request
received from
user
Ensure that
recruitment and
selection of staff is
100% competed
within a period of
Number of
months it takes
for recruitment
and selection of
staff to be 100%
N/A Ensure that
recruitment and
selection of staff
is 100%
competed within a
The recruitment
and selection of
staff was 100%
completed within
a period of three
Target
Achieved.
Not required
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
90 | P a g e
UNIT: HUMAN RESOURCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
departments
each financial
year.
three (3) months
after receipt of
approved and
signed requisition
to fill vacancies
from user
departments by
30 June 2016
completed after
receipt of
approved and
signed
requisition to fill
vacancies from
user
departments by
30 June 2016
period of three (3)
months after
receipt of
approved and
signed requisition
to fill vacancies
from user
departments by
30 June 2016
(3) months after
receipt of
approved and
signed requisition
to fill vacancies
from user
departments.
Nine (9)
appointments and
eight (8)
promotions were
made during the
year.
Transformation
and
Review
Employment
Equity Plan
Review
Employment
Equity Plan in line
Reviewed
Employment
Equity Plan in
2014/15
Employment
Equity Plan
Review
Employment
Equity Plan in line
Target not
achieved.
There was a
delay in the
appointment of
The development/
review of the
Employment
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
91 | P a g e
UNIT: HUMAN RESOURCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Organisational
Development.
with the
organisational
staff turnover by
31 May 2016 for
implementation in
the 2016/17
financial year.
line with the
organisational
staff turnover by
31 May 2016 for
implementation
in the 2016/17
financial year.
with the
organisational
staff turnover by
31 May 2016 for
implementation in
the 2016/17
financial year.
the service
provider.
Equity Plan will be
completed in Q1
of the 2016/17
financial year.
The service
provider will be
appointed to
assist with the
development/
review of the
Employment
Equity Plan.
Transformation
and
Organisational
Development.
Effective
management
of leave
records
Update leave
register 100%
monthly with all
the leave forms
received and that
% of leave
register that is
updated
monthly with all
the leave forms
2014/15
Leave
records
Update leave
register 100%
monthly with all
the leave forms
received and that
Target is 97.5%
achieved.
The reason for
the variance is
that the leave
application and
approval
The internal audit
unit has been
appointed to
review and
update the leave
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
92 | P a g e
UNIT: HUMAN RESOURCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
the register is
reconciled to the
leave forms by 30
June 2016.
received and
that the register
is reconciled to
the leave forms
by 30 June
2016.
the register is
reconciled to the
leave forms by 30
June 2016.
process was
delayed which
resulted in the
leave forms
received to be
captured late.
process to ensure
that it is complete
and accurately
captured.
Transformation
and
Organisational
Development.
Review Human
Resources
Policies
Review 20
Human Resource
policies in line
with applicable
collective
agreements and
legislation by 30
June 2016
Number of
Human
Resource
policies
reviewed in line
with applicable
collective
agreements and
legislation by 30
June 2016
20 Human
Resource
Policies
implemented
in 2014/15
Review 20
Human Resource
policies in line
with applicable
collective
agreements and
legislation by 30
June 2016
Target not
achieved.
There was a
delay in the
commencement
of the work by
the service
provider.
The training
committee has
been assigned to
review and
update human
resource policies
of the entity.
Updating will be
concluded in Q2
of the 2016/17
financial year.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
93 | P a g e
UNIT: LABOUR RELATIONS
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for the
Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Ensure Sound
Labour
Relations
12 Monthly
meetings held
with Labour
Unions by 30
June 2016
Number of
monthly
meetings with
Labour Unions
by 30 June
2016
Number of
meetings
held with
Labour
Unions in
2014/15.
12 Monthly
Meetings with
Labour Unions by
30 June 2016
Twelve (12)
meetings were
held with the
Labour Unions
during the year
under review.
Target Achieved. Not required.
Transformation
and
Organisational
Development.
Ensure Sound
Labour
Relations
Conduct 4
quarterly
workshops on
collective
agreements on
discipline with all
staff members by
30 June 2016
Conduct 4
quarterly
workshops on
collective
agreements on
discipline with
all staff
members by 30
June 2016.
N/A Conduct 4 quarterly
workshops on
collective
agreements on
discipline with all
staff members by
30 June 2016
Seventeen (17)
workshops were
conducted during
the year on
collective
agreements on
discipline with all
staff.
We strive for
excellency in
order to
contribute to the
success of the
company
successful.
Not required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
94 | P a g e
UNIT: LABOUR RELATIONS
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for the
Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Instil
Workplace
Discipline
Ensure internal
disciplinary
actions for each
case are
completed within
3 months after
initiation for the
period 1 July
2015 to 30 June
2016
Number of
months it takes
for internal
disciplinary
actions for each
case to be
completed after
initiation for the
period 1 July
2015 to 30 June
2016
N/A Ensure internal
disciplinary actions
for each case are
completed within 3
months after
initiation for the
period 1 July 2015
to 30 June 2016
There were
twenty-one (21)
cases of
misconduct
reported up to 31
March 2016 and
only twenty (20 )
of the reported
cases were
concluded by 30
June 2016.
There is one
case outstanding
pending the
investigations.
We endeavour to
finalise the cases
within prescribed
timeframes and
manage them in
terms of the
conditions of
service.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
95 | P a g e
UNIT: HUMAN RESOURCE DEVELOPMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Ensure
capacitated
and
empowered
workforce
Implement
approved
Workplace Skills
Plan 100% and
ensure quarterly
monitoring and
reporting thereof
against employees’
progress by 30
June 2016
% of Workplace
Skills Plan
implemented
and Quarterly
Workplace Skills
reports
2014/15
Workplace
Skills
reports
Implement
approved
Workplace Skills
Plan 100% and
ensure quarterly
monitoring and
reporting thereof
against
employees’
progress by 30
June 2016.
There are three (3)
courses that are
ongoing and five (5)
courses approved
as per WSP, which
are the following:
1. Municipal
Finance
Management
Programme
(MFMP),
2. Apprenticeship;
and
The service
provider for
customer
services and
project
management
courses had
not been
appointed at
the end of Q4.
The SCM
processes will be
fast-tracked to
accelerate the
appointment of
the service
provider(s) to
provide training
on customer
service and
project
management
courses.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
96 | P a g e
UNIT: HUMAN RESOURCE DEVELOPMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
3. Adult Basic
Education &
Training (ABET)
Transformation
and
Organisational
Development.
Ensure
compliance
with
Regulations on
the Minimum
Competency
Levels.
Ensure that all 6
Executives
(including the CEO)
meet the prescribed
minimum
competency levels
by 30 November
2016.
Number of
Executive
Managers who
meet the
prescribed
minimum
competency
levels by 30
November
2016.
N/A Ensure that all 6
Executives
(including the
CEO) meet the
prescribed
minimum
competency
levels by 30
November 2016.
The COO, CFO
and the Executive
Manager:
Engineering Retail
have enrolled for
the MFMP course
in 2014.
The CEO and
Executive Manager:
Human Resource
have also enrolled
for the MFMP
The MFMP
course is still
in progress.
Not required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
97 | P a g e
UNIT: HUMAN RESOURCE DEVELOPMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
course on the 04
April 2016.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
98 | P a g e
3.2.5. Department of Finance
Section 81 of Municipal Finance Management Act 56 of 2003; Role of chief financial officer: (1) the chief financial officer of a municipality.
(a) Is administratively in charge of the budget and treasury office;
(b) Must advise the accounting officer on the exercise of powers and duties assigned to the accounting officer in terms of this Act;
(c) Must assist the accounting officer in the administration of the municipality’s bank accounts and in the preparation and implementation of
the municipality’s budget;
(d) Must advise senior managers and other senior officials in the exercise of powers and duties assigned to them in terms of section 78 or
delegated to them in terms of section 79; and
(e) Must perform such budgeting, accounting, analysis, financial reporting, cash management, debt management, supply chain
management, financial management, review and other duties as may in terms of section 79 be delegated by the accounting officer to the
chief financial officer.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
99 | P a g e
VOTE: FINANCE
UNIT: REVENUE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Financial
Viability and
Management
Ensure
efficient
revenue
collection and
management.
Debt collection
improved by 50%
on arrear debt and
80% on current
accounts based
on 2014/15
figures by 30 June
2016.
% of Debt
collection
improvement on
arrear debt and
on current
accounts based
on 2014/15
figures by 30
June 2016.
2014/15
revenue
collection
reports and
debtors age
analysis.
Improve debt
collection by 50%
on arrear debt and
80% on current
accounts based
on 2014/15
figures by 30 June
2016.
Arrear Debt
80.5% and
Current Bill
80.4%.
New staff was
appointed and
that improved
performance on
accounts billing.
Not required.
Financial
Viability and
Management
Improve
allocation of
payments
received to
accounts.
95% allocation of
payments
received through
Cashiers and 90%
through Direct
deposits on a
monthly basis
% allocation of
payments
received
through
Cashiers and
through Direct
deposits on a
2014/15
reconciliation
statements
95% allocation of
payments
received through
Cashiers and 90%
through Direct
deposits on a
monthly basis
98% Cashier
allocation
95% Direct
deposit allocation.
New staff was
appointed and
that improved
performance on
allocation of
payments
Not required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
100 | P a g e
UNIT: REVENUE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
throughout the
year.
monthly basis
throughout the
year.
throughout the
year.
received and
direct deposits.
Financial
Viability and
Management
Improve
accuracy of
accounts
billing
95% accuracy in
billing based on
the number of
accounts billed on
a monthly basis
throughout the
year.
% accuracy in
billing based on
the number of
accounts billed
on a monthly
basis
throughout the
year.
2014/15
accounts
billing reports
95% accuracy in
billing based on
the number of
accounts billed on
a monthly basis
throughout the
year.
100% accurate
billing for the year
under review.
New staff was
appointed and
that improved
performance on
billing of
accounts
Not required.
Financial
Viability and
Management
Improve
efficiency of
accounts
mailing
100% mailing/
sending of printed
statements on a
monthly basis
throughout the
year.
% mailing/
sending of
printed
statements on a
monthly basis
2014/15
accounts
mailing
registers
100% mailing/
sending of printed
statements on a
monthly basis
throughout the
year.
100% sending of
printed
statements on a
monthly basis for
the year under
review.
Target
Achieved.
Not required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
101 | P a g e
UNIT: REVENUE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
throughout the
year.
Financial
Viability and
Management
Ensure billing
based on
actual readings
100% of actual
meter readings
taken are
uploaded and
billed on accounts
on a monthly basis
throughout the
year.
% of actual
meter readings
taken, uploaded
and billed on
accounts on a
monthly basis
throughout the
year.
2014/15
meter
reading
reports
100% of actual
meter readings
taken are
uploaded and
billed on accounts
on a monthly basis
throughout the
year.
100% of meter
reading taken
were uploaded
and billed for the
year under
review.
Target
Achieved.
Not required.
Financial
Viability and
Management
Ensure timely
handling of
customer
queries/
complaints.
Clear/resolve 90%
of all accounts-
related customer
queries/
complaints
received each
% of all
accounts-
related
customer
queries/
complaints
cleared/
2014/15
Helpdesk
reports.
Clear/resolve 90%
of all accounts-
related customer
queries/
complaints
received each
100% clearing/
resolving of
customer
queries/complaint
s for the year
under review.
Target
Achieved.
Not required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
102 | P a g e
UNIT: REVENUE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
week throughout
the year.
resolved as
received each
week
throughout the
year.
week throughout
the year.
Financial
Viability and
Management
Perform
periodic main
revenue-
related ledger
accounts
reconciliations
Monthly
reconciliation of
all bank, debtors,
vendors and
merchants
accounts
throughout the
year.
Frequency of
reconciliation of
all bank,
debtors,
vendors and
merchants
accounts
throughout the
year.
2014/15
reconciliation
statements.
Reconcile all
bank, debtors,
vendors and
merchants
accounts on a
monthly basis
throughout the
year.
100% of the
debtors, bank,
vendors and
merchants
accounts
reconciliations
were performed.
Target
Achieved.
Not required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
103 | P a g e
UNIT: FINANCIAL MANAGEMENT & SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Financial
Viability and
Management
Ensure
prudent cost
management
and prevent
fruitless and
wasteful
expenditure
Contain all
controllable costs
e.g. travelling
costs, pay
suppliers within
30 days of receipt
of valid invoice,
throughout
2015/16.
The period of
payment of
suppliers’
invoices
2014/15
approved
budget
Contain all
controllable costs,
pay suppliers
within 30 days of
receipt of valid
invoice with no
disputed delivery
of goods/ services
throughout
2015/16
98% of suppliers
and creditors
were paid within
30 days.
2% of suppliers’
invoices were
submitted late to
the Finance
Department for
processing of
payments.
Ensure that
project managers
and SCM officials
submit invoices
on time to the
Finance
Department for
payment
processing
according to the
stipulated
timeframes.
Financial
Viability and
Management
Maintain
sustainable
liquidity levels
Maintaining
positive cash flow
represented by
net cash flow from
operating
Bank
statements with
positive Bank
Balance month-
2014/15
Section 87
reports and
bank
statements
Maintain positive
cash flow
represented by
net cash flow from
operating
100% positive
cash flow for each
Quarter. Cash
flow statements
were submitted
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
104 | P a g e
UNIT: FINANCIAL MANAGEMENT & SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
activities after
capital
expenditure
month-on-month
for the financial
year.
on-month for the
financial year.
activities after
capital
expenditure
month–o- month
for the financial
year.
for each quarter
for the year under
review.
Financial
Viability and
Management
Ensure
retention and
safekeeping of
expenditure
documents
File and register
100% of all
monthly payment
vouchers and
accompanying
supporting
documents and
keep in safe
custody within 30
days of the end of
each month
% of monthly
payment
vouchers and
accompanying
supporting
documents filed
and registered
within 30 days
of end of each
month
throughout the
2014/15
expenditure
records
File and register
100% of all
monthly payment
vouchers and
accompanying
supporting
documents and
keep in safe
custody within 30
days of the end of
each month
98% of all
payment
vouchers and
supporting
documents are
kept in safe
custody within 30
days at the end of
each month
throughout the
2% of the
payment
vouchers and
accompanying
supporting
documents were
not sent to
storage at the
time of
reporting.
We will Ensure
that officials
requesting
payment
vouchers take
responsibility by
signing for the
vouchers when
taking them out of
the cabinet as
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
105 | P a g e
UNIT: FINANCIAL MANAGEMENT & SUPPORT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
throughout the
2015/16 financial
year.
2015/16
financial year.
throughout the
2015/16 financial
year.
2015/16 financial
year.
well as when
returning them.
Financial
Viability and
Management
Perform
periodic
creditors
ledger
reconciliations
Creditors on the
system
reconciling to
supporting
documentation on
a monthly basis
throughout the
financial year.
Creditors’
Reconciliation
Statements
2014/15
monthly
reconciliations
Reconcile all
creditors on the
system to
supporting
documentation on
a monthly basis
throughout the
financial year.
70% of the
reconciliations are
up to date as at
the time of
reporting.
As a result of
the year-end
system closure,
there is always
a time lag
between year-
end and the
system closure;
however, all
year-end sundry
creditors are
accounted for as
part of the year-
end process.
Increase effort in
purification of
database in order
to clearly identify
prospective
suppliers who
should be
reconciled
monthly.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
106 | P a g e
UNIT: ASSET MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Financial
Viability and
Management
Ensure
efficient Asset
Management &
Control
4 Quarterly
assets
verifications
performed and
asset registers
updated with all
assets
movements, and
report any
damaged/
missing items by
30 June 2016.
Number of
assets
verifications
performed and
asset registers
updated with all
assets
movements,
and report any
damaged/
missing items
by 30 June
2016.
2014/15
Asset
Registers
4 Quarterly assets
verifications
performed and
asset registers
updated with all
assets
movements, and
report any
damaged/ missing
items by 30 June
2016.
The asset register
is fully GRAP
compliant; the
infrastructure
asset register is
maintained on the
GIS database and
is up to date. The
Movable, Fleet,
Land and
Buildings
registers are
currently
maintained in the
AMS 360 system
and are in the
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
107 | P a g e
UNIT: ASSET MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
process of being
integrated with
the Solar system.
100% of assets
were verified at
year-end. For the
4th quarter, all
additions have
been verified.
Infrastructure
assets are only
recognised as
assets once the
project is
commissioned;
the work in
progress has
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
108 | P a g e
UNIT: ASSET MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
been recognised
for the 4th
quarter. There
were no disposals
in the 1st quarter;
all assets to be
written off have
been recorded as
such. Asset
compliance
checklist has also
been completed.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
109 | P a g e
UNIT: BUDGET & COMPLIANCE
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Financial
Viability and
Management
Ensure budget
preparation
and reporting
in compliance
with MFMA
and treasury
regulations
and guidelines.
Prepare 2016/17
annual budget,
2015/16
adjustment
budgets and
submit in-year
financial reports
in relation thereto
in accordance
with sections 87
and 88 of MFMA
by 30 June 2016.
Annual and
Adjustment
budgets that are
compliant with
MFMA sections
87 & 88
requirements
2014/15 In-
year reports
Prepare 2016/17
annual budget,
2015/16
adjustment
budgets and
submit in-year
financial reports in
relation thereto in
accordance with
sections 87 and
88 of MFMA by
30 June 2016.
Three (3) monthly
Section 87
Reports have
been prepared in
accordance with
the legislative
framework and
submitted to the
parent
municipality as
prescribed in the
MFMA.
Target Achieved Not Required.
Financial
Viability and
Management
Review and
update
budget-related
and
Review and
updating 25
budget-related
and accounting
Number of
budget-related
and accounting
policies
2014/15
Reviewed
budget-
related and
Review and
updating 25
budget-related
and accounting
Twenty (20)
Budget-related
polices were
submitted for
The five (5)
remaining
policies are
AFS-related
The AFS-related
policies are
currently under
review.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
110 | P a g e
UNIT: BUDGET & COMPLIANCE
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
accounting
policies
policies by 30
June 2016.
reviewed and
updated by 30
June 2016.
accounting
policies.
policies by 30
June 2016.
approval by
council on 09
June 2016.
policies that are
under review
with AFS
process
Financial
Viability and
Management
Ensure
adequacy of
financial
reporting-
related internal
controls.
4 quarterly
reviews and
updating of
financial
reporting-related
internal controls
based on the
Internal Audit
reports to enable
preparation of
Annual Financial
Statements that
are free from
Number of
quarterly
reviews and
updating of
financial
reporting-related
internal controls
based on
Internal Audit
Reports.
2015/16
Internal Audit
Reports
4 quarterly
reviews and
updating of
financial
reporting-related
internal controls
based on the
Internal Audit
reports to enable
preparation of
Annual Financial
Statements that
are free from
Monthly controls
such as
reconciliations
and allocation/
classifications are
performed.
Internal audit
reports issued are
responded to and
corrective actions
are in place.
Target Achieved Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
111 | P a g e
UNIT: BUDGET & COMPLIANCE
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
material
misstatements or
errors by 30 June
2016.
material
misstatements or
errors by 30 June
2016.
Financial
Viability and
Management
Monitor
financial
reporting-
related internal
controls
Implement
approved
financial
reporting-related
internal controls
100% and ensure
monthly
monitoring so as
to ensure that
they give effect to
adequate and
timely financial
reporting
% of Approved
financial
reporting-related
controls
implemented
and frequency
of monitoring
thereof
throughout
2015/16
N/A Implement
approved financial
reporting-related
internal controls
100% and ensure
monthly
monitoring so as
to ensure that
they give effect to
adequate and
timely financial
reporting
The quarterly
Dashboards were
prepared and
submitted to
EXCO for review
and approval and
submitted to
AGSA on a
quarterly basis.
Target Achieved Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
112 | P a g e
UNIT: BUDGET & COMPLIANCE
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
throughout
2015/16
throughout
2015/16
Financial
Viability and
Management
Ensure
preparation of
compliant
Audit File.
Prepare Audit
File for 2014/15
financial year that
is compliant with
Annexure A of
MFMA Circular
50 by 31 August
2015.
MFMA Circular
50
2014/15
Audit File
Prepare Audit File
for 2014/15
financial year that
is compliant with
Annexure A of
MFMA Circular 50
by 30 June 2016.
Audit File for
2014/15 financial
year was
prepared in
compliant with
Annexure A of
MFMA Circular 50
by 31 August
2015.
Target Achieved Not Required.
Financial
Viability and
Management
Ensure
compliant
Annual
Financial
Statements
Prepare 2015/16
Annual Financial
Statements in
accordance with
the GRAP and
section 122 of
Auditor-
General’s
Management
Letters (GRAP
Standards,
2014/15
Audited
Annual
Financial
statements.
Prepare 2015/16
Annual Financial
Statements in
accordance with
the South African
Standards of
The preparation
and compilation of
AFS for the
2015/16 financial
year has
commenced and
Target Achieved Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
113 | P a g e
UNIT: BUDGET & COMPLIANCE
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
MFMA by 31
August 2016.
Section 122 of
MFMA)
Generally
Recognised
Accounting
Practices (GRAP)
and section 122
of MFMA by 31
August 2016.
the draft will be
submitted to both
the AGSA and
National Treasury
on 31 August
2016.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
114 | P a g e
UNIT: SUPPLY CHAIN MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Ensure
compliant
procurement
processes &
procedures
0% irregular
expenditure
incurred due to
non-compliance
with the
company’s
Supply Chain
Management
Policy, Supply
Chain
Management
Regulations,
2005 and the
MFMA by 30
June 2016
% of irregular
expenditure
incurred due to
non-compliance
with the
company’s Supply
Chain
Management
Policy, Supply
Chain
Management
Regulations, 2005
and the MFMA by
30 June 2016
2014/15
Annual
Financial
Statements
0% irregular
expenditure
incurred due to
non-compliance
with the
company’s Supply
Chain
Management
Policy, Supply
Chain
Management
Regulations, 2005
and the MFMA by
30 June 2016
Irregular expenditure
amounting to
R41, 103.10 was
incurred for the
period under review.
R351, 500.00 is due
regarding previous
incidents that the
Auditor-General
recommended to be
reported as irregular
expenditure.
SCM
processes
were not
followed.
New service
provider will be
appointed
following the
correct SCM
processes.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
115 | P a g e
UNIT: SUPPLY CHAIN MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key
Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Good
Governance &
Public
Participation
Monitor
Suppliers/
Service
Providers
performance
Ensure that the
suppliers/
services
providers are
monitored
100% in line
with contracts
entered into and
submit monthly
reports
throughout
2015/16.
Frequency of
reports submitted
by suppliers
throughout
2015/16
2014/15
Suppliers’
monitoring
reports
Ensure that the
suppliers/
services providers
are monitored
100% in line with
contracts entered
into and submit
monthly reports
throughout
2015/16.
All monthly and
quarterly reports
submitted by all
service providers
were reviewed by the
finance office.
Target
Achieved
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
116 | P a g e
3.2.6. Department of Engineering - Wires
Engineering Wires is a sub-directorate of Centlec that comprises the asset creation, operations and maintenance of the electricity distribution
systems. The Engineering Wires Department carries this mandate through four division, namely Planning, Network Operations and
Maintenance, System Utilization and Process Engineering, and Southern Free State (Kopanong, Mohokare) and Mantsopa municipalities,
Thaba Nchu and Botshabelo.
The Planning Division ensures at all times that other important municipal planning outcomes (e.g. Spatial Development Framework, Sector
Plans, Integrated Development Plans, etc.) and national planning (Integrated Resource Plans, National Development Plans, etc.) are part of
the Electrical Master Plans (EMPs) for each town under review.
The Network Operation and Maintenance, Southern Free State and other municipalities as well as Thaba Nchu and Botshabelo Divisions
deliver an economic and efficient maintenance service to provide the best possible quality of supply to Centlec customers and to complete all
construction projects.
The System Utilization and Process Engineering is concerned with the control and energy management in order to maximize the served
energy and minimize the down time, planning and coordinating the distribution of electricity to meet the energy demand and render a 24-hour
service for customer complaints as well as the restoration of all power failures. It is also to ensure that the power system performance is
assessed regularly and analysed to maximize reliability and availability as well as to design and upgrade all protective and telemetry systems.
It is further concerned with the maintenance of all substations and the associated equipment such as Power Transformers, Circuit Breakers,
and Busbars, Substation buildings, Miniature substation housings and Yards.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
117 | P a g e
VOTE: ENGINEERING – WIRES
UNIT: SYSTEMS UTILISATION AND PROCESS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Infrastructure
Development &
Service
Delivery
Provide 100%
access to
electricity
Install and complete
the number of public
connection
applications
received, paid for this
financial year by 30
June 2016.
The number of
public
connection
applications
received, paid
for vs. the
number of
public
connections
installed from 1
July 2015 to 30
June 2016.
New and
upgrade
connections
in 2014/15
financial
years.
To install public
connections for all
public connection
applications
received, paid for
between 1 July
2015 to 30 May
2016 by 30 June
2016.
Five hundred and
thirty-seven (537)
connections that
have been paid
for are completed.
Target
Achieved.
Not Required.
Infrastructure
Development &
Provide 100%
access to
electricity
Investigate
servitudes and land
earmarked for
Servitudes
Investigation
Report
N/A Investigate
servitudes and
land earmarked
In quarter one (1):
Two (2)
applications were
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
118 | P a g e
UNIT: SYSTEMS UTILISATION AND PROCESS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Service
Delivery
electricity
infrastructure
expansion in the
area of the entity’s
supply so as to
broaden access to
electricity capacity by
30 June 2016
for electricity
infrastructure
expansion in the
area of the
entity’s supply so
as to broaden
access to
electricity capacity
by 30 June 2016
sent to the DEA
(Elite DC and
Maphikela DC)
and only one
response was
received for
Maphikela DC.
In quarter two (2):
Two (2)
applications were
sent to the DEA
(Elite DC and
Northern Line). A
response for Elite
DC was received.
In Quarter three
(3): One (1)
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
119 | P a g e
UNIT: SYSTEMS UTILISATION AND PROCESS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
application was
sent to DEA for
the Northern Line.
In Quarter four
(4): One (1)
applications was
sent to the DEA
(Northern Line)
and a Record of
decision has been
received. All
Records of
decisions have
been received for
all applications
that have been
sent to the DEA.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
120 | P a g e
UNIT: SYSTEMS UTILISATION AND PROCESS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Infrastructure
Development &
Service
Delivery
Provide 100%
access to
electricity
Convert and/or
replace 5 000
electricity meters in
Botshabelo by June
2016.
Number of
conversions
and/or
replacement
electricity
meters made in
Botshabelo by
30 June 2016
500 meters
converted
and/or
replaced by
2014/15
financial
year.
Convert and/or
replace 5 000
electricity meters
in Botshabelo by
June 2016.
One hundred and
ninety-eight (198)
new connections
and one thousand
six hundred and
twenty (1 620)
conversions
(shiftings) were
conducted.
The annual
target could
not be reached
due to
depletion of
the vote funds.
Management will
ensure that job
cards will be
created to ring-
fence the
Botshabelo and
Bloemfontein
expenditure.
Infrastructure
Development &
Service
Delivery
Provide
reliable public
lighting in
areas as
required by
MMM
Installation of 300
smart street lights in
the area of MMM by
30 June 2016.
Certificates of
completion
Number of
public
lighting
(high mast
lights)
installed in
2014/15
Installation of 300
smart street lights
in the area of
MMM by 30 June
2016.
Two thousand
and fifty-four
(2 054) smart
street lights have
been installed in
the MMM area by
30 June 2016.
The
performance
has been over-
achieved due
to the
efficiency and
effectiveness
of the work
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
121 | P a g e
UNIT: SYSTEMS UTILISATION AND PROCESS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
financial
year.
performed by
the service
provider in
order to reach
the target
contained in
the Service
Level
Agreement.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
122 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
132/11kV Fichardt
Park Distribution
Centre by 30 June
2016
% of progress
made on the
establishment of
132/11kV
Fichardt Park
Distribution
Centre by 30
June 2016
2014/15
performance
100% progress on
the establishment
of 132/11kV
Fichardt Park
Distribution
Centre by 30
June 2016
A tender has
been advertised
and has served in
the evaluation
committee.
There is a
delay in the
appointment of
a consultant.
SCM must speed
up the internal
processes such
that the
consultant can be
appointed.
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
132/11kV Cecilia
Distribution Centre
by 30 June 2016.
% of progress
made on the
establishment of
132/11kV
Cecilia
Distribution
Centre by 30
June 2016
2014/15
performance
50% progress on
the establishment
of 132/11kV
Cecilia
Distribution
Centre by 30
June 2016
Boundary wall
100%, Earth mat
100%, Fire wall
100%, Control
Building 90%,
Internal Pave
100%, Steel gate
90%, HV &
Gantry
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
123 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
foundations
100%, HV VT's
are 80% installed.
2x132/11kV
transformers have
been delivered on
site and
contractor is busy
assembling
transformers,
cable trench is
0% complete.
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
132/11kV 20MVA
Groenvlei
Distribution Centre
by 30 June 2016
% of progress
made on
establishment of
132/11kV
20MVA
2014/15
performance
100% progress on
establishment of
132/11kV 20MVA
Groenvlei
Distribution
There is 100%
progress on
establishment of
132/11kV 20MVA
Groenvlei
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
124 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Groenvlei
Distribution
Centre by 30
June 2016
Centre by 30
June 2016
Distribution
Centre and the
substation was
energized by 30
June 2016.
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
132kV Northern
Ring from
Noordstad to
Harvard DC (ward
44 and 48) by 30
June 2016
Milestone
progress as
indicated on
quarterly targets
on multi-phased
project 132kV
Northern Ring
from Noordstad
to Harvard DC
(ward 44) by 30
June 2016
2014/15
performance
Complete Phase
1 (Line from
Harvard DC to
Cecelia DC) of
the project and
obtain a ROD
from the DEA by
30 June 2016
Phase 1
Stringing of
overhead
conductor to
Cecilia is
completed
Phase 2
Designs have
been approved,
the contractor has
started with
relocation of a
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
125 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
coupler and
incorporation of
two feeder bays
at Harvard.
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
132/11kV Elite Sub-
station (Airport
Node) by 30 June
2016
% of progress
on the
establishment of
132/11kV Elite
Sub-station
(Airport Node)
30 June 2016
2014/15
performance
(10%)
Approved Elite
Sub-station
Design, signed
agreement
between Centlec
and land owner
completed and
approval from the
EIA for
establishment of
132/11kV Elite
Sub-station
(Airport Node)
Design drawings
have been
approved by the
engineering
department and
have proposed a
new position for a
sub-station from
the council and
the department is
currently waiting
for an approval.
We are
awaiting land
acquisition.
This is a multi-
year project and
we could not
acquire land.
Centlec opted for
a new position
which is owned by
MMM and a
request has been
sent to MMM, for
which we await a
response from the
council.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
126 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
obtained by 30
June 2016
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
Botshabelo:
132kV11kV
Distribution Centre
Sub-station in ward
27 by 30 June 2016
% of progress
on the
establishment of
Botshabelo:
132kV/11kV
Distribution
Centre Sub-
station in ward
27 by 30 June
2016
2014/15
performance
(30%)
100% progress on
the establishment
of Botshabelo:
132kV/11kV
Distribution
Centre Sub-
station in ward 27
by 30 June 2016
A tender has
been advertised
and has served in
the evaluation
committee.
There is a
delay in the
appointment of
a consultant.
SCM must speed
up the SCM
processes.
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
Botshabelo: 132kV
connection point at
Vaalkraal DC by 30
June 2016
% of progress
on the
establishment of
Botshabelo:
132kV
2014/15
performance
(30%)
100% progress on
the establishment
of Botshabelo:
132kV connection
point at Vaalkraal
A tender has
been advertised
and has served in
the evaluation
committee.
There is a
delay in the
appointment of
a consultant.
SCM must speed
up the SCM
processes.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
127 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
connection point
at Vaalkraal DC
in ward 30 by 30
June 2016
DC in ward 30 by
30 June 2016
Infrastructure
Development &
Service
Delivery
Provision for
adequate
lighting within
the residential
areas of
Mangaung
Erection of 28 high
mast lights within
Mangaung by 30
June 2016
Completed high
mast light by 30
June 2016
2014/15
performance
28 erected and
commissioned
high mast lights
within Mangaung
by 30 June 2016
Thirty-four (34)
high masts have
been erected and
twenty-six (26)
have been
commissioned.
There is a
delay of the
electricity
connection
from Eskom.
Follow up with
Eskom on
electricity
connection with
regard to
outstanding high
masts.
Infrastructure
Development &
Service
Delivery
Provide for
sufficient
electricity
distribution
infrastructure
Establishment of
new 132/11kV
Maphikela DC by 30
June 2016
% of progress
on the
establishment of
new 132/11kV
Maphikela DC
N/A 100% progress on
the establishment
of new 132/11kV
Maphikela DC by
30 June 2016
A ROD for the
construction of the
distribution centre
has been received
from the DEA and
a tender has been
There is a
delay in the
appointment of
a consultant.
SCM must speed
up the SCM
processes
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
128 | P a g e
UNIT: PLANNING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
by 30 June
2017
advertised and
has served in the
evaluation
committee.
*Note: These indicators from the Engineering Wires Department are also reported by MMM (parent municipality) as agreed upon with the municipal entity based on the business plan and SDBIP submitted.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
129 | P a g e
3.2.7. Department of Engineering- Retail
The Retail component of the municipal entity is divided into two main components, namely Network Utilization and Retail.
The Utilization Department consists of Network Control, Network Optimization, Sales Systems and Power Quality, and Customer Service. This department
is headed by the Executive Manager: Retail. Energy and Network Control is the section where most of the functions in the control room, stand by and Call
Centre are run for 24 hours.
The business unit functions include control and energy management to maximize served energy and minimize down time; plan and coordinate the distribution
of electricity to meet the energy demand; do energy management to meet the demand while minimizing the cost of energy purchased; keep records of all
incidents, power failures and statistics to measure the level of performance; render a 24-hours service for customers complaints as well as the restoration
of all power failures and do construction and maintenance of all supervisory equipment on the network.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
130 | P a g e
VOTE: ENGINEERING – RETAIL
UNIT: REVENUE & CUSTOMER MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Ensure optimal
accuracy and
performance of
all installed
meters
Conduct 12
monthly meter
audits to minimize
losses through
tampering and
illegal connections
by 30 June 2016
Number of
monthly meter
audits
conducted to
minimize losses
through
tampering and
illegal
connections by
30 June 2016
2014/15
performance
Conduct 12
monthly meter
audits to minimize
losses through
tampering and
illegal
connections by 30
June 2016
One thousand two
hundred and
seventy eight
meters (1 278)
were inspected
throughout the
twelve-month
period to minimize
losses through
tampering and
illegal
connections.
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
131 | P a g e
UNIT: REVENUE & CUSTOMER MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Improve
customer care
management
Procure and
implement
integrated customer
queries
management
system by 30 June
2016.
Progress
Reports
N/A Procure and
implement
integrated
customer queries
management
system by 30
June 2016.
90 %
Implemented.
New Customer
Centre numbers
were tested
through Vodacom
and Telkom for
inbound
System
Implementation.
There were
delays on the
project
implementation.
The project is
ongoing and will
be finalised in
Q1 of the
2016/2017
financial year.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
132 | P a g e
UNIT: TRADING SERVICES
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Ensure 100%
access to
electricity to by
all.
Ensure that 100%
of registered
indigents receive
Free Basic
Electricity (FBE) on
a monthly basis
throughout
2015/16.
% of registered
indigents who
receive FBE on a
monthly basis
throughout
2015/16.
2014/15
reports
Ensure that 100%
of registered
indigents receive
FBE on a monthly
basis throughout
2015/16.
84% of registered
indigents
collected (FBE)
for the year under
review.
16% of the
registered
indigents did not
collect FBE.
One of the
reasons for non-
collection of
FBE by
indigents might
be that they
have tampered
with the prepaid
meter box.
Prepaid Meter
Field Audit
underway for
customer
information
verification and
identification of
tampered
meters.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
133 | P a g e
UNIT: TRADING SERVICES
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Ensure
effective
vending points/
stations.
Ensure that 80% of
vending stations
are accessible at
least between
08h00-17h00
during normal
working days and
08h00-12h00
during weekends
and holidays
throughout
2015/16.
% of vending
stations that are
accessible at
least between
08h00-17h00
during normal
working days and
08h00-12h00
during weekends
and holidays
throughout
2015/16.
50% of
Vending
stations
Ensure that 80%
of vending
stations are
accessible at
least between
08h00-17h00
during normal
working days and
08h00-12h00
during weekends
and holidays
throughout
2015/16.
Ensured that at
least 80% of
vending stations
are accessible
between 08h00-
17h00 during
normal working
days and 08h00-
12h00 during
weekends and
holidays
Target
achieved.
Not required.
Infrastructure
Development &
Ensure
reliability of
Ensure 100%
management of
customers’
% of customers’
essential loads
managed on a
2014/15
reports
Ensure 100%
management of
customers’
Ensured 100%
management of
customers’
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
134 | P a g e
UNIT: TRADING SERVICES
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
Service
Delivery
electricity
supply
essential loads on a
continuous basis
throughout 2015/16
continuous basis
throughout
2015/16
essential loads on
a continuous
basis throughout
2015/16
essential loads on
a continuous
basis throughout
2015/16.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
135 | P a g e
UNIT: SYSTEMS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over/under
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Improve sales
and
communicatio
n infrastructure
30% upgrade of the
current PABX to
VOIP
telecommunication
infrastructure by 30
June 2016.
% of progress in
upgrading of the
current PABX to
VOIP
telecommunicatio
n infrastructure by
30 June 2016.
N/A 30% upgrade of
the current PABX
to VOIP
telecommunicatio
n infrastructure by
30 June 2016.
Target is 25%
achieved.
Voice PBX
Testing - Testing
of Calls Dials.
New VoIP
Systems
Implementation -
New Voice
Systems were
implemented and
users can receive
and make
outgoing calls.
Service provider
is still going to
finalise the
telephone
applications.
The project is
ongoing and will
be finalised in
Q1 of the
2016/2017
financial year.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
136 | P a g e
UNIT: SYSTEMS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over/under
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Improve sales
and
communicatio
n infrastructure
50% progress in
upgrade of vending
back office by 30
June 2016.
% of progress in
upgrading of
vending back
office by 30 June
2016.
N/A 50% progress in
upgrade of
vending back
office by 30 June
2016.
Target is 48%
achieved.
2%
Finalisation of
the existing
contract was
delayed by the
extension of
project scope.
The project is
ongoing and will
be finalised in
Q1 of the
2016/2017
financial year.
Infrastructure
Development &
Service
Delivery
Ensure
strategic risk
management
with regard to
systems
Implement 30% of
business continuity
and disaster
recovery
infrastructure by 30
June 2016.
% of business
continuity and
disaster recovery
infrastructure
implemented by
30 June 2016.
N/A Implement 30% of
business
continuity and
disaster recovery
infrastructure by
30 June 2016.
20% of business
continuity and
disaster recovery
infrastructure has
been
implemented.
There were
delays on
project
implementation.
The project is
ongoing and will
be finalised in
Q1 of the
2016/2017
financial year.
Infrastructure
Development &
Upgrading of
IT
infrastructure
100% upgrade of IT
servers and
network
% of IT servers
and network
infrastructure and
N/A 100% upgrade of
IT servers and
network
IT servers,
network
infrastructure and
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
137 | P a g e
UNIT: SYSTEMS ENGINEERING
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over/under
achieved)
Corrective
measures
taken to
improve
performance
Service
Delivery
and network in
response to
changing
needs.
infrastructure and
systems to support
SCOA
implementation
project by 30 June
2016.
systems
upgraded to
support SCOA
implementation
project by 30
June 2016.
infrastructure and
systems to
support SCOA
implementation
project by 30
June 2016.
systems to
support SCOA
implementation
project are 100%
upgraded.
Infrastructure
Development &
Service
Delivery
Upgrading of
IT
infrastructure
and network in
response to
changing
needs.
100% upgrade and
refurbishment of
the existing
computer networks
by 30 June 2016.
% of upgrade and
refurbishment of
the existing
computer
networks by 30
June 2016.
N/A 100% upgrade
and refurbishment
of the existing
computer
networks by 30
June 2016.
The existing
computer
networks are
100% upgraded
and refurbished.
Target
Achieved.
Not Required.
*Note: These indicators from the Engineering Retail Department are also reported by MMM as agreed upon with the municipal entity based on the business plan and SDBIP submitted to the parent municipality.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
138 | P a g e
3.2.8. Department of Performance & Compliance
UNIT: COMPLIANCE & PERFORMANCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Transformation
and
Organisational
Development.
Ensure
compliance
with prescribed
annual
planning
processes of
the entity
Review Multi-Year
Business Plan for
2016/17, ensure
that the related
Budget, SDBIP
Performance Plans
and Agreements of
the Executives are
compiled and
submitted for
approval by 31
March 2016.
Proof of
submission of
reviewed Multi-
Year Business
Plan, Budget,
SDBIPs,
Performance
Plans and
Agreements of
the Executives
are compiled
and submitted
for approval by
31 March 2016.
N/A Review Multi-Year
Business Plan for
2016/17, ensure
that the related
Budget, SDBIP
Performance
Plans and
Agreements of
the Executives
are compiled and
submitted for
approval by 31
March 2016.
1. Multi-Year
Business Plan
for 2016/17 and
SDBIP were
compiled and
submitted to
Mangaung
Metropolitan
Municipality on
18 March 2016
and
subsequently
approved by the
Council on 09
June 2016.
Target Achieved Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
139 | P a g e
UNIT: COMPLIANCE & PERFORMANCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
2. Performance
Agreements
have all been
signed for the
2016/17 financial
year.
Transformation
and
Organisational
Development.
Ensure
monitoring and
evaluation of
organisational
performance
Ensure that the
performance of
Executives is
assessed quarterly
as prescribed in
their respective
Performance
Agreements and
that it is internally
audited and reports
are submitted to the
Quarterly
Performance
Assessment
reports of the
performance of
Executives
N/A Ensure that the
performance of
Executives is
assessed
quarterly as
prescribed in their
respective
Performance
Agreements and
that it is internally
audited and
Target not
achieved.
Performance of
the Executives
was not
assessed bi-
annually.
Performance
assessment of
Executives for Q1
- Q2 and Q3 – Q4
will be concluded
in quarter 1 of the
2016/17 financial
year.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
140 | P a g e
UNIT: COMPLIANCE & PERFORMANCE MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Audit Committee
and the Board by 30
June 2016.
reports are
submitted to the
Audit and Risk
Committee and
the Board by 30
June 2016.
Transformation
and
Organisational
Development.
Ensure
monitoring and
evaluation of
organisational
performance
Quarterly Centlec
audit improvement
Dashboard
developed and
submitted to the
AGSA within the
prescribed
timeframes for
2015/16.
Frequency of
Centlec audit
improvement
Dashboard
developed and
submitted to the
AGSA within the
prescribed
timeframes for
2015/16.
N/A Quarterly Centlec
audit
improvement
Dashboard
developed and
submitted to the
AGSA within the
prescribed
timeframes for
2015/16.
Quarterly
Dashboard
reports were
developed and
submitted to the
AGSA within the
prescribed
timeframes.
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
141 | P a g e
UNIT: FLEET & SECURITY MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Infrastructure
Development &
Service
Delivery
Continuous
coordinated
security
management
and planning.
Four (4) Joint
Planning Committee
(JPC) meetings held
during 2015/16 to
discuss, and plan for
security
arrangements
regarding potential
security threats to
the business of the
entity.
Number of Joint
Planning
Committee
(JPC) meetings
held during
2015/16 to
discuss, and
plan for security
arrangements
regarding
potential
security threats
to the business
of the entity.
N/A Four (4) Joint
Planning
Committee (JPC)
meetings held
during 2015/16 to
discuss, and plan
for security
arrangements
regarding
potential security
threats to the
business of the
entity.
Four (4) Joint
Planning
Committee (JPC)
meetings were
held during
2015/16 to
discuss, and plan
for security
arrangements
regarding
potential security
threats to the
business of the
entity.
Target
Achieved.
Not Required.
Conduct
security threat
assessment
Ensure that security
assessment is
conducted twice (2)
Number of times
security
assessment is
N/A Ensure that
security
assessment is
One (1) security
assessment was
conducted during
State Security
Agency (SSA)
is currently
SSA and SAPS
should fast track
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
142 | P a g e
UNIT: FLEET & SECURITY MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
during 2015/16 so as
to ensure efficient
allocation of
resources to the
most vulnerable
areas.
conducted
during 2015/16
so as to ensure
efficient
allocation of
resources to the
most vulnerable
areas.
conducted twice
(2) during
2015/16 so as to
ensure efficient
allocation of
resources to the
most vulnerable
areas.
2015/16 to ensure
efficient allocation
of resources to
the most
vulnerable areas.
busy with the
second risk
assessment.
This function is
completely
dependent on
SSA
processes and
SAPS.
their internal
processes.
Conduct daily
patrols at
vulnerable
points
Ensure that three (3)
daily patrols are
conducted at
identified vulnerable
points (i.e. power
stations, exposed
power cables,
premises, etc.) so as
Number of daily
patrols
conducted at
identified
vulnerable
points (i.e.
power stations,
exposed power
N/A Ensure that three
(3) daily patrols
are conducted at
identified
vulnerable points
(i.e. power
stations, exposed
power cables,
Three (3) daily
patrols are
conducted at
identified
vulnerable points
(i.e. power
stations, exposed
power cables,
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
143 | P a g e
UNIT: FLEET & SECURITY MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
to minimize the effect
of potential losses
throughout 2015/16.
cables,
premises, etc.)
so as to
minimize the
effect of
potential losses
throughout
2015/16.
premises, etc.) so
as to minimize the
effect of potential
losses throughout
2015/16.
premises, etc.) so
as to minimize the
effect of potential
losses.
Ensure optimal
service
delivery by
procuring
requisite fleet
Procure new fleet
within two (2) months
as per requests from
the various user
departments during
2015/16.
The period it
takes to procure
new fleet as per
requests from
the various user
departments
during 2015/16.
N/A Procure new fleet
within two (2)
months as per
requests from the
various user
departments
during 2015/16.
Two (2) UD60s
vehicles were
bought during the
2015/16 financial
year.
Target
Achieved.
Not required as
requests are
dependent on
user departments.
Ensure regular
and timely
Fleet booked in for
repairs or
Number of
hours it takes
N/A Fleet booked in
for repairs or
Fleet is booked in
for repairs or
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
144 | P a g e
UNIT: FLEET & SECURITY MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
maintenance
of fleet
maintenance within
48 hour of receiving
requisitions from
user departments
throughout 2015/16
for fleet to be
booked in for
repairs or
maintenance
from receiving
requisitions from
user
departments
maintenance
within 48 hour of
receiving
requisitions from
user departments
throughout
2015/16
maintenance
within forty eight
(48) hour of
receiving
requisitions from
user departments
throughout the
four quarters.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
145 | P a g e
UNIT: BUSINESS DEVELOPMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Infrastructure
Development &
Service
Delivery
Explore and
develop
alternative
revenue
streams for the
entity
Conduct focused
research into
alternative revenue
streams for the entity
by 30 June 2016.
Research report N/A Conduct focused
research into
alternative
revenue streams
for the entity by
30 June 2016.
Target not
achieved.
The CEO has
changed the
strategic
direction on
revenue
enhancement,
therefore the
old power
station will not
be re-
energised and
as a result the
research will
not be
necessary.
New strategic
vision on revenue
enhancement will
be implemented
in the 2016/17
financial year.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
146 | P a g e
UNIT: POWER GENERATIONS
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Infrastructure
Development &
Service
Delivery
Re-
engineering of
old power
stations
Generate 30 MW
by 30 June 2016.
Number of
Megawatts
generated by 30
June 2016.
N/A Generate 30 MW
by 30 June 2016.
Target not
achieved.
The bidders
did not meet
the minimum
requirement
set in the bid
document and
as a result the
tender process
could not
escalate to the
next phase.
The tender will be
re-advertised in Q1
of the 2016/17
financial year.
Revitalisation
of old power
stations (Fort
Street) –
(Incorporation
into the
Develop and
include Phase 1 of
power station
project into the
Waaihoek precinct
Number of Project
Phases
completed by 30
June 2016.
N/A Develop and
include Phase 1
of power station
project into the
Waaihoek
Target not
achieved.
There are
ongoing
discussions
with MMM and
Centlec
Both parties
should expedite
the decision
process regarding
this matter in
order for the
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
147 | P a g e
UNIT: POWER GENERATIONS
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures taken
to improve
performance
Waaihoek
Precinct).
project by 30 June
2016.
precinct project
30 June 2016.
regarding this
matter.
project to
commence in the
next financial
year.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
148 | P a g e
UNIT: FACILITIES MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
Infrastructure
Development &
Service
Delivery
Ensure upkeep
of existing
facilities,
offices and
infrastructure
30% progress in
the project of
incorporation of old
power station at
Fort Street (non-
technical work) with
the Waaihoek
precinct by 30 June
2016
% of progress
made in the
project of
incorporation of
old power station
at Fort Street
(non-technical
work) with the
Waaihoek
precinct by 30
June 2016
N/A 30% progress in
the project of
incorporation of
old power station
at Fort Street
(non-technical
work) with the
Waaihoek
precinct by 30
June 2016
This is a MMM
project and scope
and
commencement
of the project will
be upon go-ahead
received from
MMM.
This is a MMM
project and
scope and
commencement
of the project
will be upon go-
ahead received
from MMM.
Commencement
of the project
will be upon go-
ahead received
from MMM.
Infrastructure
Development &
Service
Delivery
Ensure upkeep
of existing
facilities,
offices and
infrastructure
100% upgrade the
existing office
buildings by 30
June 2016
according to the
% of progress
made on the
upgrade of the
existing office
buildings by 30
N/A 100% upgrade
the existing office
buildings by 30
June 2016
according to the
There was a
100% upgrade of
the existing
facilities by 30
June 2016
Target
Achieved.
Not Required.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
149 | P a g e
UNIT: FACILITIES MANAGEMENT
PERFORMANCE OBJECTIVES AND INDICATORS ANNUAL PERFORMANCE TARGETS
FOR THE PERIOD 1 JULY 2015 – 30 JUNE 2016
Key
Performance
Area (KPA)
Strategic
Objective
Key Performance
Indicator (KPI)
Unit of
Measurement
Baseline Annual Target
2015/16
Actual annual
performance
achieved
Reasons for
the Variances
(Over-/under-
achieved)
Corrective
measures
taken to
improve
performance
assessed needs to
ensure conducive
working
environment for
employees
June 2016
according to the
assessed needs
to ensure
conducive
working
environment for
employees
assessed needs
to ensure
conducive
working
environment for
employees.
according to the
assessed needs
to ensure a
conducive
working
environment for
employees,
visitors and
customers.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
150 | P a g e
A detailed three year capital works plan is required to ensure sufficient detail is available to measure and monitor delivery of
planned infrastructure projects.
Project Name
MTREF ESTIMATES
War
d N
o
Project Description / Type
of Structure Outputs
Project Duration
2015/2016
R’000
2016/2017
R’000
2017/2018
R’000
Start Date Completion
Date
PROGRAMME 6: ENGINEERING RETAIL
UPGRADE OF CURRENT PABX TO VOIP TELCOMMS INFRASTRUCTURE 6 048 2 627 8 688 N/A Telecommunication Systems Telecommunication Systems 1 April 2015 30 June 2016
IMPLEMENTATION OF BUSINESS CONTINUITY AND DISASTER RECOVERY
INFRASTRUCTURE 1 491 3 825 12 651 N/A
Disaster Recovery
Infrastructure
Disaster Recovery
Infrastructure 1 April 2015 30 June 2017
WEBSITE 97 285 439 N/A Website Website 1 March 2015 30 June 2015
VENDING BACK OFFICE 4 842 9 486 4 702 All Infrastructure Infrastructure 1 April 2014 30 June 2017
UPGRADE AND REFURBISHMENT OF CENTLEC COMPUTER NETWORK 2 024 1 313 4 344 N/A Telecommunication Telecommunication 1 July 2015 30 June 2016
SCOA IMPLEMENTATION PROJECT 1 248 11 858 6 270 N/A Systems Systems 1 January 2015 30 June 2017
PROGRAMME 5: ENGINEERING WIRES
NETWORK SERIVES
PARK WEST, 132/33 T2B 45MVA 5 429 5 690 6 003 18 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF OIL PLANT 0 822 867 All Electricity Infrastructure Electricity Infrastructure
REPLACEMENT OF DECREPIT HAMILTON SUBSTATION 1 730 2 529 2 668 18 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
TIBBIE VISSER RIPPLE CONTROL 0 443 467 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
151 | P a g e
Project Name
MTREF ESTIMATES
War
d N
o
Project Description / Type
of Structure Outputs
Project Duration
2015/2016
R’000
2016/2017
R’000
2017/2018
R’000
Start Date Completion
Date
CLOVER & VISTA DC’s PARK ACCESS CONTROL (CCTV) 0 443 467 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF 110V BATTERIES FOR EAST YARD, WESTDENE,MANGAUNG B,
MARK, MASELSPOORT 0 569 600 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF 11KV SWITCHGEARS FOR MAGISTRATE SUB 0 1 517 1 601 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF 32V BATTERIES 0 443 467 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF LOW VOLTAGE DECREPIT 2,4,8 WAY BOXES 90 1 897 2 001 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF BRITTLE OVERHEAD CONNECTIONS 789 885 934 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
REMEDIAL WORK 132KV SOUTHERN LINES 3 478 5 058 5 336 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2017
AUTOMATED MAINTENANCE SYSTEM 282 632 667 1 - 45 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2017
REPLACEMENT OF 2 &4 WAY FIBREGLAS BOX IN SECTION H 527 1 264 1 334 30 Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2016
PLANNING
INSTALLATION OF PREPAID METERS (INDIGENTS) 1 100 1 150 1 213 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
ELECTRIFICATION CONNECTIONS (INEP) 26 316 26 316 23 358 27 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
SERVITUDES AND LAND (INCLUDING INVESTIGATION, REMUNERATION,
REGISTRATION) 530 1 108 1 169 45 Administrative Administrative 01 July 2015 30 June 2016
PUBLIC ELECTRICITY CONNECTIONS 20 953 22 744 24 109 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
152 | P a g e
Project Name
MTREF ESTIMATES
War
d N
o
Project Description / Type
of Structure Outputs
Project Duration
2015/2016
R’000
2016/2017
R’000
2017/2018
R’000
Start Date Completion
Date
EXTENSION AND UPGRADING OF THE 11KV OVERHEAD NETWORK IN THE PERI-
URBAN AREAS 7 003 9 315 9 827 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2017
FICHARDTPARK DC: 132KV/11KV 20MVA DC 4 000 10 000 6 800 25 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2017
CECELIA DC: 132KV/11KV 30MVA DC 13 000 12 000 5 000 26 Electricity Infrastructure Electricity Infrastructure 01 Jan 2015 30 June 2017
GROENVLEI DC: 132KV/11KV 20MVA 7 888 8 851 9 338 22,23 Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2016
132KV NORTHERN RING FROM NOORDSTAD DC TO HARVARD DC 4 000 10 000 5 000 44 Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2017
ELITE SUBSTATION (AIRPORT NODE) 21 000 23 000 25 825 30 Electricity Infrastructure Electricity Infrastructure 01 Nov 2014 30 June 2017
TRANSFORMER REPLACEMENT 8 650 21 000 22 000 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
REPLACEMENT OF DECREPIT 11KV CABLE 3 498 3 655 3 856 19 Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2019
SMART STREETLIGHTS 35 000 25 000 15 000 All Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2019
REFURBISHMENT OF THE TAP CHANGER CONTROL PANELS AT PARK WEST,
BAYSWATER AND NAVAL PARK DISTRIBUTION CENTRES 106 222 234 All Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2017
REFURBISHMENT OF PROTECTION AT BAYSWATER, CORONATION, NAVAL PARK,
DAN PIENAAR 288 602 636 All Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2019
METER PROJECT 29 042 25 000 30 000 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
NETWORK CATALYST PROJECTS 0 13 750 14 671 All Electricity Infrastructure Electricity Infrastructure 01 July 2014 30 June 2017
ELECTRIFICATION PROJECTS 6 500 10 260 10 947 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
153 | P a g e
Project Name
MTREF ESTIMATES
War
d N
o
Project Description / Type
of Structure Outputs
Project Duration
2015/2016
R’000
2016/2017
R’000
2017/2018
R’000
Start Date Completion
Date
INSTALLATION OF PUBLIC LIGHTING 5 500 16 539 17 647 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2016
MAPHIKELA DC 132/11KV 0 3 000 4 000 All Electricity Infrastructure Electricity Infrastructure 01 July 2015 30 June 2018
PROGRAMME 3: HUMAN RESOURCE SERVICES
TRAINING & DEVELOPMENT 1 773 1 400 1 400 All
Human Resource
Development
Human Resource
Development 01 July 2015 30 June 2016
PROGRAMME 7: COMPLIANCE & PERFORMANCE
OFFICE BUILDING 8 000 8 500 8 800 All Infrastructure Infrastructure 01 July 2015 30 June 2016
FURNITURE AND OFFICE EQUIPMENT 600 2 717 2 866 All Equipment Equipment 01 July 2015 30 June 2016
VEHICLES 6 000 6 000 2 000 All Acquisition of Fleet Acquisition of Fleet 01 July 2015 30 June 2016
RE-ENGINEERING OF OLD POWER STATIONS 500 5 000 10 000 All Upgrade of Infrastructure Upgrade of Infrastructure 01 July 2015 30 June 2017
REVITALIZATION OF OLD POWER STATIONS (FORTSTREET) – (Incorporation into the
Waaihoek Precinct) 3 800 3 000 1 800 All
Improvement of
Infrastructure Improvement of Infrastructure 01 July 2015 30 June 2017
PROGRAMME 1: OFFICE OF THE CEO
MARKETING COMMUNICATION – (Banding & Communication Equipment) 3 000 5 000 5 000 N/A
Communication & Marketing
Tools
Communication & Marketing
Tools 01 July 2015 30 June 2016
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
154 | P a g e
Project Name
MTREF ESTIMATES
War
d N
o
Project Description / Type
of Structure Outputs
Project Duration
2015/2016
R’000
2016/2017
R’000
2017/2018
R’000
Start Date Completion
Date
TOTAL 246 123 326 714 323 002
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
155 | P a g e
4. CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE
Centlec’s Training Centre.
Centlec (SOC) Ltd Annual Report
01 July 2015 to 30 June 2016
156 | P a g e
CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE
4.1. Introduction
The municipal entity has an appropriate system and procedures to ensure fair, transparent,
effective and efficient personnel administration in accordance with the Employment Equity
Act 1998 and other relevant labour legislation and Bargaining Council Agreements.
4.2. Workforce profile
Occupational
Levels
Male Female Foreign
Nationals
Total
A C I W A C I W MALE FEMALE
Top Management 3 0 0 1 1 0 0 0 0 0 5
Senior
Management 5 0 0 0 1 0 0 0 0 0 6
Professionally
qualified and
experienced
specialists and
mid-management 8 1 0 4 4 1 0 0 0 0 18
Skilled technical
and academically
qualified workers,
junior
management,
supervisors,
foremen and
superintendents 77 3 0 16 64 0 0 3 0 0 163
Semi-skilled and
discretionary
decision-making 59 0 0 2 49 0 0 1 0 0 111
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01 July 2015 to 30 June 2016
157 | P a g e
Occupational
Levels
Male Female Foreign
Nationals
Total
A C I W A C I W MALE FEMALE
Unskilled and
defined decision-
making 37 0 0 0 47 0 0 0 0 0 84
Total Permanent 189 4 0 23 166 1 0 4 0 0 387
Temporary
employees 11 0 0 6 12 0 0 2 0 0 31
Grand Total 200 4 0 29 178 1 0 6 0 0 418
*Please take note that this number excludes seconded employees of MMM.
4.3. Employees with Disability
Occupational
Levels
Male Female Foreign
Nationals
Total
A C I W A C I W MALE FEMALE
Top Management 0 0 0 0 0 0 0 0 0 0 0
Senior
Management 0 0 0 0 0 0 0 0 0 0 0
Professionally
qualified and
experienced
specialists and
mid-management
0 0 0 0 1 0 0 0 0 0 1
Skilled technical
and academically
qualified workers,
junior
management,
supervisors,
foremen and
superintendents
0 0 0 0 0 0 0 0 0 0 0
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01 July 2015 to 30 June 2016
158 | P a g e
Occupational
Levels
Male Female Foreign
Nationals
Total
A C I W A C I W MALE FEMALE
Semi-skilled and
discretionary
decision-making
0 0 0 0 0 0 0 0 0 0 0
Unskilled and
defined decision-
making
1 0 0 0 0 0 0 0 0 0 1
Total Permanent 1 0 0 0 1 0 0 0 0 0 2
Temporary
employees 1 0 0 0 1 0 0 0 0 0 2
Grand Total 2 0 0 0 2 0 0 0 0 0 4
4.4. Workforce movement
4.4.1. Recruitment
Occupational
Levels
Male Female Foreign Nationals Total
A C I W A C I W MALE FEMALE
Top Management 0 0 0 0 0 0 0 0 0 0 0
Senior
Management 0 0 0 0 0 0 0 0 0 0 0
Professionally
qualified and
experienced
specialists and
mid-management
1 0 0 1 0 0 0 0 0 0 2
Skilled technical
and academically
qualified workers,
junior
1 0 0 0 4 0 0 0 0 0 5
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01 July 2015 to 30 June 2016
159 | P a g e
Occupational
Levels
Male Female Foreign Nationals Total
A C I W A C I W MALE FEMALE
management,
supervisors,
foremen and
superintendents
Semi-skilled and
discretionary
decision-making
0 0 0 0 0 0 0 0 0 0 0
Unskilled and
defined decision-
making
0 0 0 0 0 0 0 0 0 0 0
Total Permanent 2 0 0 1 4 0 0 0 0 0 7
Temporary
employees 11 0 0 5 10 0 0 1 0 0 27
Grand Total 13 0 0 6 14 0 0 1 0 0 34
*Please take note that this number excludes seconded employees of MMM.
4.4.2. Promotion
Occupational
Levels
Male Female Foreign Nationals Total
A C I W A C I W MALE FEMALE
Top Management 0 0 0 0 0 0 0 0 0 0 0
Senior
Management 0 0 0 0 0 0 0 0 0 0 0
Professionally
qualified and
experienced
specialists and
mid-management
3 0 0 0 4 0 0 0 0 0 7
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01 July 2015 to 30 June 2016
160 | P a g e
Occupational
Levels
Male Female Foreign Nationals Total
A C I W A C I W MALE FEMALE
Skilled technical
and academically
qualified workers,
junior
management,
supervisors,
foremen and
superintendents
1 0 0 0 3 0 0 0 0 0 4
Semi-skilled and
discretionary
decision-making
0 0 0 0 1 0 0 0 0 0 1
Unskilled and
defined decision-
making
0 0 0 0 0 0 0 0 0 0 0
Total Permanent 4 0 0 0 8 0 0 0 0 0 12
Temporary
employees 0 0 0 0 0 0 0 0 0 0 0
Grand Total 4 0 0 0 8 0 0 0 0 0 12
*Please take note that this number excludes seconded employees of MMM.
4.4.3. Terminations
Terminations for
the period
Male Female Foreign Nationals Total
A C I W A C I W MALE FEMALE
Resignation 10 0 0 2 3 0 0 1 0 0 16
End of contract 64 0 0 60 2 0 0 0 0 126
TOTAL 74 0 0 2 63 2 0 1 0 0 146
*Please take note that this number excludes seconded employees of MMM.
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4.4.4. Human Resource Policies
The municipal entity utilised the policies of MMM for the financial year 2015/16.
4.4.5. Financial Competency Development
In terms of the Guideline for Municipal Competency Levels: Finance officials at Middle
Management Level of the entity conducted the minimum competency assessments as
required by Sections 107 and 119 of the Municipal Finance Management Act No. 56 of 2003.
Identified officials attended the MFMP training and assessment; however, as at year–end,
the process was still ongoing to ensure that all officials attend the training within the specified
period.
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5. CHAPTER 5: FINANCIAL PERFORMANCE
5.1. Revenue
The entity’s total revenue from exchange transactions increased by 0.4% to R 2 076 788 655
in 2015/16. This insignificant increase is mainly attributed to
the conversion to prepaid meters and a call from Eskom to
notify consumers to use electricity sparingly.
As highlighted above, the increase in revenue has been
adversely affected by the conversion of rotational meters to
prepaid meters, faulty meters and the tampering with the
meters by customers.
Grant income decreased by 0.7% due to a decrease in receipts from the Urban Settlements
Development Grant. In the prior year this amount related to R 26 491 228 whilst only R 26 315
789 was received during the 2015/16 year.
5.2. Expenditure
As in prior periods, the most significant expense disclosed by
the entity relates to its bulk electricity purchases. This
expenditure represents 62% of the entity’s total expense.
Expenditure increased, in total, by 2%. The entity
implemented several cost-cutting measures, in order to
ensure a low expenditure base, which would result in
affordable tariffs being charged to the end-users.
Employee related costs: New appointments, salary increase & MMM seconded
employees who moved over to Centlec payroll from MMM.
Depreciation & Amortisation: Increase due to asset revaluation in the previous financial
year which increased the asset values and which resulted in increased depreciation and
amortisation for the 2015/16 financial year in comparison to the 2014/15 financial year.
New asset acquisition during 2015/16.
Debt impairment: The main reason for the decrease is due to the transfer of MMM consumer
debtor accounts from the consumer debtors to the intercompany loan. This decrease in the
REVENUE
0.4% increase in total Revenue
Decrease in Grant Income
EXPENDITURE
44% increase in Employee Related Costs
70% increase in Depreciation and Amortisation
1117% decrease in Debt Impairment
34% decrease in the Repairs and Maintenance expense
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consumer debtor balance impacted the impairment calculation significantly as most of these
accounts fell in the category of long outstanding debt.
Repairs & maintenance: A large volume of Centlec’s assets were recently acquired and still
in a relatively new condition. This resulted in lower repairs and maintenance than initially
anticipated.
5.3. Surplus
The entity generated a surplus of R 7 000 489 for the year, compared to R 96 871 746 surplus
for the 2014/15 year. This was as a result of expenditure increasing more significantly than
the revenue generated by the entity during the year.
5.4. Financial Position
The 2015 financial year saw a decline in the municipal entity’s financial position. This is
clearly evident on the following line items on the statement of financial position:
An increase of cash and cash equivalents of R 165 634 225.
Liquidity - Current liabilities exceeded current assets by approximately R 7 525
729.
Solvency - Total assets exceeded total liabilities by R 2 291 865 808 at the end of
2015/16 financial year.
5.5. Cash Flow Statement
As referred to above in the CEO’s preview, there was a significant decrease in the cash and
cash equivalents mainly due to the utilization of the prior year investments to fund capital
projects
5.6. Budget
The municipal entity’s final approved budget for 2016 indicated a profit of R 246 472 723.
The actual amount on a comparable basis amounted to R 7 000 489.
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6. CHAPTER 6: AUDITOR-GENERAL FINDINGS ON PRIOR YEAR
ISSUES
6.1. Purpose of the report
To provide feedback on the progress made with respect to the implementation of the Audit
Action Plan as developed in response to the municipal entity’s audit and management reports
for the financial year ended 30 June 2016.
To provide feedback on the current control environment and corrective measures implemented
during the 2015/16 financial year.
6.2. Introduction and background
The municipal entity continued with the resolute effort to address the audit findings as raised
by the office of the Auditor General in the 2014/15 financial year. The focus while implementing
and monitoring the follow up on the audit action plan has been primarily the improvement on
the audit outcomes of the previous years.
This is in pursuit of the clean audit outcome as envisaged by the municipal entity’s leadership
and management.
An audit action plan was developed and has been vigorously implemented and monitored with
involvement of all directorates, internal audit, office of the Auditor General, Audit Committee
and the Board of Directors.
Furthermore, a task team was established comprising of senior management representing all
user departments. The task team meets on a weekly basis to track the overall progress made
by the entity in terms of the Audit Action Plan.
The progress report was tabled before the Audit and Risk Committee and the Board of
Directors for deliberation and consideration. This progress was further shared with the office
of the Auditor General who provided continuous feedback.
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6.3. Executive summary: Implementation of the Audit Action Plan
This section will provide an executive summary of the corrective measures implemented by
the municipal entity to deal with the audit findings as reported on by the Auditor-General.
6.3.1. Improvements to the internal control environment
The 2014/15 Management report issued by the Auditor General’s office (AGSA) covered
matters that were not resolved at the finalization of the 2014/15 audit process. However, in an
attempt to those issues resolved the management will make ensure that they are not repeated,
the action plan developed covered all issues as initially reported.
Management accordingly analysed the findings raised as per the audit report and determined
that the following matters required immediate attention in order to improve on the 2015/16
audit outcome:
Vacancies in senior management positions
Irregular expenditure management
Declaration of interest- employees in service of state
Audit of predetermined objectives- performance management framework and targets
not being smart
Incorrect interpretation of the reporting framework
Inadequate controls over ensuring that payments are made within 30 days
6.3.2. Progress on matters reported in the audit report
Auditor General Finding
6.3.2.1. Vacancies in senior management positions
At the time of the audit report the positions of the Company Secretary and Chief
Executive wires were vacant.
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Management’s response
The organizational structure was approved by the board and by council of the parent
municipality.
Critical positions will be identified and filled accordingly based on their level of urgency with
the staff possessing the required competencies and skills.
Management assessment of the status of the item:
The work done to date should be sufficient to address the reasons why the office of the
Auditor General raised concern over the existence of vacant positions at senior management
level
Auditor General Finding
6.3.2.2. Irregular expenditure management
The Auditor-General reported that the entity did not take reasonable steps to prevent
irregular expenditure as required by MFMA sec. 95(d).
Management’s response
The municipal entity has made tremendous effort to improve on the internal controls so as to
contain and manage the occurrence of irregular, fruitless and wasteful expenditure. The
impact of this has been the significant decrease in the fruitless and wasteful expenditure.
The occurrence of irregular expenditure has been contained though the decline thereof has
not been significant owing to the fact that there was one bid evaluation that did not fully
comply with the Preferential Procurement Regulations 2011.
Controls put in place include amongst others:
Improved process of reviewing all supporting documents to avoid incurring irregular
expenditure.
Monthly and quarterly reports are prepared and reported to the finance committee,
Board and council of the parent municipality as required by legislation.
Improvement on the review of the contents of the contract register and the supporting
information. Update contract register with all new developments or changes and
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submission of quarterly reports to the Chief Financial Officer on existing contracts -
expiry/extended/deviations/awarded.
Most of the major contracts reported as irregular expired towards the end of the
2014/15 financial year and procurement of new services providers has been effected
in full compliance with the supply chain management regulations and MFMA.
A large number of employees of the entity have been enrolled on to the Municipal
Finance Management programme to update their knowledge and meet the minimum
competence requirements.
However, management of contracts remains a challenge that requires some improvement.
Management assessment of the status of the item:
The work done to date should be sufficient to address the reasons why the office of the
Auditor General identified lack of effective steps to prevent irregular, fruitless and wasteful
expenditure.
Auditor General Finding
6.3.2.3. Declaration of interest- employees in service of state
The Auditor-General reported on non-compliance with the supply chain management
regulations as services were procured from suppliers in service of state who did not
make the required declaration to the entity.
Management’s response
The matter remains a challenge to the entity as all suppliers are required to complete the
SCM forms to provide the required declaration.
In the absence of access to the Government’s employee’s data, the entity has relied on the
honesty of the service provider when completing the SCM forms.
In an effort to address the matter, the entity appointed a service provider to conduct the
vetting of all existing and prospective suppliers on the data base and link to the Government’s
persal system.
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Management assessment of the status of the item:
The work done to date will significantly assist management in the identification of service
providers who may be in the service of the state.
The matter will be adequately addressed in the future as the municipal entity has started
utilising the Centralised Suppliers’ data base created by the National Treasury.
Auditor General Finding
6.3.2.4. Audit of predetermined objectives- performance management framework and targets not
being smart.
The Auditor-General raised concern over the entity not having an appropriate system
to collect, collate, verify and store performance information. Along with the above it
was also noted that the staff were not provided with the required training so as to
understand what needs to be reported.
Management’s response
The municipal entity did a review of the business plan for the 2016/17 and
- Aligned the business plan and the budget.
- Formulated SMART key performance indicators during the mid-year SDBIP review for the
2015/16 financial year.
- Considered capacitating the performance and compliance section with suitably qualified
and adequate staff.
- Collected all the supporting documents for the SDBIP reports on a quarterly basis and
reviewed it for reliability, accuracy and validity.
The internal audit unit performed a review of each quarter’s SDBIP for the 15/16 financial
year. The reports submitted in this regard have been considered by management and
corrective action taken.
A procedure manual was drafted to provide guidance on the collection and receiving of
performance information and was submitted to the Executive committee for comments.
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A large number of employees of the entity have been enrolled on to the Municipal Finance
Management programme to update their knowledge and meet the minimum competence
requirements.
However, the filling of critical vacant posts remains one of the issues that needs to be
addressed to ensure that each Directorate has an official responsible for the collection and
reporting on performance information.
Management assessment of the status of the item:
The work done to date should be sufficient to address the reasons why the AGSA identified
material audit findings on the 2014/15 annual performance report.
Auditor General Finding
6.3.2.5. Incorrect interpretation of the reporting framework
The Auditor-General reported that management’s interpretation of the financial
reporting frame was not in line with the requirements.
Management’s response
The entity secured the services of the professional training company that has provided GRAP
training to staff in the finance section to keep track with the most recent developments in the
reporting framework.
The Annual financial statements for the 2015/16 financial year have been subject to review
by an external service provider as well as the internal audit review prior to submission to the
office of the Auditor General.
Management assessment of the status of the item:
The work done to date should be sufficient to address the concern raised by the office of the
Auditor General over the entity’s incorrect interpretation of GRAP standards.
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Auditor General Finding
6.3.2.6 The Auditor General reported that money owed by the municipal entity was not always
paid within 30 days as required by section 99(2) (b) of the MFMA
Management’s response
A re-register of all payment vouchers received was created to keep track of progress and
movement of the documents within the different divisions of the entity
Management assessment of the status of the item:
The work done to date has helped to improve on the controls over the processing of payment
vouchers within time.
However, the challenge still remains as some of the factors contributing to the delays are as
a result of the entity’s diverse operations and the suppliers who in some cases do not submit
invoices with all the required information on time.
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Contact details
Registered office: 195 Nelson Mandela drive
College Square Telkom Building
Bloemfontein,
Free State
9324
Business address: 195 Nelson Mandela drive
College Square Telkom Building
Bloemfontein, 9324
Postal address: Private Bag X14
Brandhof
Bloemfontein, 9324
Tel: (051) 412 2613
Chief Executive Officer
A.N Mgoqi
(051) 412 2613
Chief Financial Officer
Jonathan Ramulondi
(051) 412 2603
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APPENDIXES
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7. APPENDIXES
7.1. APPENDIX A: BOARD MEMBERS; COMMITTEE ALLOCATION AND ATTENDANCE
- See paragraph 2.4
7.2. APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES
- See paragraph 2.4
7.3. APPENDIX C: THIRD TIER ADMINISTRATIVE STRUCTURE
- See paragraph 1.6
7.4. APPENDIX D: FUNCTIONS OF ENTITY
- See paragraphs 1.3, 1.4, 1,5 and 1.10
7.5. APPENDIX E: WARD REPORTING
- Not applicable
7.6. APPENDIX F: WARD INFORMATION
- Not applicable
7.7. APPENDIX G: RECOMMENDATIONS OF THE AUDIT COMMITTEE
- See paragraph 6.3
7.8. APPENDIX H: LONG TERM CONTRACTS AND PUBLIC PRIVATE PARTNERSHIPS
- Not applicable
7.9. APPENDIX I: MUNICIPAL ENTITY PERFORMANCE SCHEDULE
- Not done in full compliance with reporting requirements.
7.10. APPENDIX J: DISCLOSURES OF FINANCIAL INTERESTS
- See paragraph 10 of the Directors Report in the Annual Financial Statements attached as Appendix
T
7.11. APPENDIX K: REVENUE COLLECTION PERFORMANCE BY VOTE AND BY SOURCE
- See Notes 24, 25, 26, 30, 31, 32 of the Annual Financial Statements attached as Appendix T
7.12. APPENDIX L: CONDITIONAL GRANTS RECEIVED
- See Note 30 of the Annual Financial Statements attached as Appendix T
7.13. APPENDIX M and N: CAPITAL EXPENDITURE
- See Notes 9 and 10 the Annual Financial Statements attached as Appendix T
7.14. APPENDIX O: CAPITAL PROGRAMME BY PROJECT BY WARD
- Not applicable
7.15. APPENDIX P: SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS
- Not applicable
7.16. APPENDIX Q: SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE
OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION
- Not applicable
7.17. APPENDIX R: DECLARATION OF LOANS AND GRANTS MADE
- Not applicable
7.18. APPENDIX S: DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71
- Not applicable
7.19. APPENDIX T: ANNUAL FINANCIAL STATEMENTS
- Pages to follow (Pg. 121 to 236)
7.20. APPENDIX U: REPORT OF THE AUDITOR GENERAL ON CENTLEC SOC (LTD)
- Pages to follow (Pg. 238 to 244)
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Centlec (SOC) Ltd
(Registration number 2003/011612/30) Annual Report for the year ended 30 June 2016
www.centlec.co.za
Chief Executive Officer: A.N Mgoqi Tel: +27(51) 412 2613
Email: [email protected]
Chief Financial Officer: T.J. Ramulondi Tel: +27(51) 412 2603
Email: [email protected]
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