Finance
With reference to the Hessequa Municipality’s allocation from the Western Cape Financial Management Capability Grant for the 2025/26 financial year:
(a) What are the objectives of the following projects funded through the grant, (i) Indigent Management, (ii) physical review and verification of all existing infrastructure assets and (iii) Long-term Financial Planning, (b)(i) what is the current implementation status of each project and (ii) are these projects on track in terms of time and budget, (c) what measurable impact has each project had to date, particularly in improving (i) financial planning accuracy, (ii) asset management or (iii) indigent service targeting, (d)(i) what tools or indicators are being used by her Department to assess the effectiveness of these projects and (b) what evidence of success or replication potential been recorded?
(1)Sub-questions (a) to (c) are responded to below with respect to each of the listed projects:
Project 1: Indigent Management
Implementation status and expected completion: Will be implemented in the 2025/26 municipal financial year (1 July 2025 to 30 June 2026).
Expected benefit: The AGSA performed identified numerous anomalies in the municipality’s indigent management. When extrapolated, the potential loss was estimated at R3.6 million. The project will procure the services of a suitable service provider that can periodically assist with the verification of the indigent register.
Project 2: Physical review and verification of all existing infrastructure assets
Implementation status and expected completion: Will be implemented in the 2025/26 municipal financial year (1 July 2025 to 30 June 2026).
Expected benefit: Hessequa Municipality aims to conduct a physical review and verification of all its infrastructure assets to ensure that the infrastructure assets are fit for purpose and viable for its intended use and that maintenance and replacement of the infrastructure assets are adequately budgeted for.
Project 3: Long-Term Financial Plan
Implementation status and expected completion: Will be implemented in the 2025/26 municipal financial year (1 July 2025 to 30 June 2026).
Expected benefit: Ensure that the municipality’s long-term financial plan and tariff modelling is updated to ensure cost-reflective tariffs and a financially sustainable municipality.
(d) Municipalities report on spending of the funds and implementation of the projects monthly and quarterly. The Provincial Treasury closely monitors these reports to ensure projects are implemented and the funds are spent in line with the approved business plan of the municipality. At the end of the project, a close-out report is submitted to the Provincial Treasury which details the outcomes of the project.
(2) As the funds are only planned to be transferred and spent in the 2025/26 municipal financial year which begins 1 July 2025, it is too early to identify such indicators of progress.
