Registration No: 2000/029899/07 2015/16 Integrated …

1 PIKITUP JOHANNESBURG (SOC) LIMITED. Registration No: 2000 / 029899 /07. 2015 /16 Integrated report (In terms of Section 121 of the Municipal Finance Management Act, 2003 and Section 46 of the Municipal Systems Act, 2000 ). PIKITUP JOHANNESBURG SOC LTD. COMPANY INFORMATION: Registration number: 2000 / 029899 /07. Registered Address: Pikitup Head Office, Jorissen Place, 66 Jorissen Street Braamfontein Postal Address: Private Bag X 74 Braamfontein 2017. Telephone number (011) 712-5200. Website Bankers Standard Bank of South Africa Limited Auditors Auditor-General of South Africa Contents OUR report .

2 1. 1. report structure .. 1. 2. Scope and boundary ..1. 3. 1. 4. Our reporting journey .. 2. 5. Assurance .. 2. CHAPTER ONE: LEADERSHIP AND CORPORATE 3. 1. Corporate profile and overview .. 4. Who are we .. 4. What guides our business .. 4. Company 5. Changing course .. 5. 2. Foreword by the Member of the Mayoral Committee .. 7. 3. Chairperson's foreword .. 8. 4. Managing Director's report .. 9. 5. Chief Financial Officer's report .. 10. 6. Company Secretary's Certification .. 10. 7. Mayoral priorities .. 11. 8. Strategic goals .. 14. 9. Material issues.

3 21. CHAPTER TWO: GOVERNANCE .. 22. 1. Corporate governance statement .. 23. 2. Board of Directors .. 24. 3. Board committees .. 30. 4. Stakeholder Engagement .. 30. Stakeholder mapping and analysis .. 31. 5. Company secretarial function .. 31. 6. Risk, Opportunities and Internal Controls .. 32. 7. Internal audit function .. 37. 8. Information Technology Governance .. 38. 9. 38. Statutory Requirements .. 38. Legislation .. 38. Codes and 10. Corporate Ethics and Organisational Integrity .. 40. Corporate Citizenship .. 40. Anti-Fraud and Corruption .. 40.

4 Ethical Leadership & Management .. 40. 11. Sustainability overview .. 41. Value creation .. 41. Environmental .. 43. Health and safety .. 43. Social Development .. 44. 12. Supply chain management and black economic empowerment .. 44. CHAPTER THREE: SERVICE DELIVERY PERFORMANCE .. 47. 1. Key achievements .. 48. 2. Core business .. 49. 3. Capital projects .. 49. 4. Performance against SDBIP and the CoJ's IDP 5. Key Performance Areas .. 66. Integrated Waste Management .. 66. Realisation of Value throughout the Waste Value Chain .. 67. Provide Effective and Efficient Waste Management Services.

5 68. Ensuring the Effective Delivery of Waste Services .. 69. 6. Assessment of arrears on municipal taxes and service charges .. 71. Assessment of Municipal Taxes and Service Charges owed to the entity ( 000) .. 71. Amounts owed by entity for service charges .. 71. 7. Recommendations and action plans for 2016/17 .. 71. CHAPTER FOUR: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT .. 72. 1. Human Resource Management .. 73. High level organisational structure of Pikitup .. 74. 2. Employment Equity .. 75. 3. Skills development and training .. 75. 4. Performance management.

6 75. 5. Employee wellness .. 76. Incapacity and Absenteeism .. 76. HIV, TB and STI Programme .. 76. Debt Management .. 77. Substance Abuse Program .. 77. 6. Staff costs .. 77. Payroll Administration .. 77. Employee Benefits .. 77. 7. Human Capital Movement in the Year under Review .. 78. CHAPTER FIVE: FINANCIAL PERFORMANCE .. 80. 1. Director's Responsibilities and Approval ..84. 2. Audit and Risk Committee report ..85. 3. Statement of Financial Position ..93. 4. Statement of Financial Performance ..94. 5. Cashflow Statement .. 97. 6. Notes to Financial Statements.

7 115. 7. Fruitless, Wasteful and Irregular Expenditure ..136. CHAPTER SIX: AUDITOR GENERAL FINDINGS .. 140. 1. Auditor-General's report for the current year .. 141. Additional matters .. 143. 2. Historical audit findings and remedial action .. 145. 3. Board responsibility and approval .. 146. OUR report . The purpose of the Integrated Annual report is to promote accountability to stakeholders and communities for decisions taken by Pikitup. The Integrated Annual report also sets out Pikitup's objectives, strategies and risks and demonstrates the impact of and value Pikitup's activities have created for its stakeholders.

8 The report also sets out what stakeholders should expect from Pikitup going forward in relation to the implementation of its strategies and creating value for its stakeholders. 1. report structure National Treasury's Municipal Finance Management Act (MFMA) Annual report Circular 63 requires that Pikitup adopt the following format for the Integrated Annual report : Chapter 1: Leadership and corporate profile Chapter 2: Governance Chapter 3: Service Delivery Performance Chapter 4: Organisational development performance Chapter 5: Financial performance Chapter 6: Auditor General's findings 2.

9 Scope and boundary This Integrated annual report covers Pikitup's economic, environmental, social and technical performance during the 2015 /16 financial year spanning 1 July 2015 to 30 June 2016. Unless otherwise stated, the figures and commentary included in the report apply to the whole municipal entity. The report reflects our performance against the financial and non-financial issues most critical to the organisation. These are encapsulated in our material themes: waste minimisation; extracting value from waste; service delivery; and financial sustainability (our material themes are discussed on page 26).

10 3. Frameworks Pikitup takes its reporting guidance from the following regulations, codes and frameworks Section 46 (1) on the Municipal Systems Act (MSA). Municipal Finance Management Act (MFMA). Public Finance Management Act ( PFMA). Millennium Development Goals (MDG). Sustainable Development Goals (SDG). Joburg 2040 Growth and Development Strategy (GDS). 2012/16 Integrated Development Plan (IDP). Generally Recognised Accounting Principles ( GAAP). International Financial Reporting Standards (IFRS). King III Code on Corporate Governance (King III). International Integrated Reporting Council's (IIRC) International <IR> Framework The Global Reporting Initiative (GRI) G4 Framework 1 of 146.