JOHANNESBURG CITY PARKS
(An association incorporated under Section 21)
Registration No: 2000/028782/08
(In terms of Section 121 of the
Municipal Finance Management Act, 2003 and Section 46 of the Municipal Systems Act, 2000)
JOHANNESBURG CITY PARKS
AN ASSOCIATION INCORPORATED UNDER
SECTION 21 OF THE COMPANIES ACT
COMPANY INFORMATION:
Registration number: 2000/028782/08
Registered Address:6th Floor
UCS Building
209 Smit Street
Braamfontein
Postal Address: P O Box 2824
Johannesburg
2000
Telephone number:(011) 712-6600
Fax number:(011) 712-6796
Website:
Bankers:ABSA Bank of SA Limited
Auditors:Auditor-General
Vision
TO BE THE LEADING AFRICAN GREEN ENVIRONMENT
AND CEMETERY MANAGEMENT COMPANY.
Mission
TO DEVELOP, MAINTAIN AND CONSERVE THE
GREEN ENVIRONMENT AND CEMETERIES
FOR PRESENT AND FUTURE GENERATIONS.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION AND CORPORATE PROFILE
Section 1: Corporate Profile and Overview of the entity3
Section 2: Strategic Objectives6
Section 3: Foreword by Member of the Mayoral Committee 8
Section 4: Chairperson’s Report9
Section 5: Managing Director’s Report14
Section 6: Statement of Responsibility26
CHAPTER TWO: PERFOMANCE HIGHLIGHTS
Section 1: Highlights and Achievements27
Section 2: Financial Performance29
Section 3: Capital Projects32
Section 4: Performance against IDP and City Scorecard38
Section 5: Assessment of Arrears on municipal taxes and service charges42
Section 6: Statement on amounts owed by Government Departments and public entities44
Section 7: Recommendations and Plans for the next financial year.45
CHAPTER THREE: DIRECTOR’S REPORT AND GOVERNANCE
Section 1: Corporate Governance Statement46
Section 2: Board of Directors46
Section 3: Board Committees51
Section 4: Director’s Remuneration53
Section 5: Company Secretarial Function55
Section 6: Risk Management and Internal controls 56
Section 7: Internal Audit Function 58
Section 8: Response to the Auditor-General Report60
Section 9: Corporate Ethics and Organisational Integrity62
Section 10: Sustainability Report63
Section 11: Corporate Social Responsibility Report64
CHAPTER FOUR: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT
Section 1: Human Resource Management65
Section 2: Employment Equity 67
Section 3: Skills Development and Training69
Section 4: Performance Management70
Section 5: HIV/AIDS on the Workplace70
Section 6: Employee Benefits72
Section 7: Supply Chain Management and Black Economic Empowerment73
CHAPTER FIVE: AUDITED STATEMENTS AND RELATED FINANCIAL INFORMATION
Report of the Auditor-General77
General Information80
Directors’ Response and Approval of Annual Financial Statements82
Directors’ Report84
Report of the Company Secretary86
Statement of Financial Position87
Statement of Financial Performance88
Statement of Changes in Net Assets89
Cash Flow Statement90
Notes to the Annual Financial Statements91
Detailed Statement of Financial Performance135
Appendix A – Variance Report137
CHAPTER SIX: FUNCTIONAL AREA SERVICE DELIVERY REPORT138
CHAPTER ONE: INTRODUCTION AND CORPORATE PROFILE
Section 1: Corporate Profile and Overview of the entity
Johannesburg City Parks (JCP) is the greening, conservation and cemetery management entity for the City of Johannesburg (CoJ). It was incorporated under the seal of the Registrar of Companies on 15 November 2000 as a Section 21 (non-profit) Company and business commenced on 1 January 2001.
Johannesburg City Parks’ mandate is to provide and manage the parks, designated open spaces, environmental conservation services and cemeteries for and on behalf of the City of Johannesburg.
Accordingly Johannesburg City Parks manages the following assets:
Area of Management / QuantityNumber of Parks and Arterials / 2 333
Area of Developed Parks and Arterials / 6 574 hectares
Area of Undeveloped Parks / 3 590 hectares
Nature Reserves / 1 569 hectares
Street Verges / 5 500 hectares
Street Trees / 1,3 – 1,6 million
Number of Cemeteries / 35
Area of Cemeteries / 1 088 hectares
Number of Crematoria / 2
Number of Nurseries / 1
Water surfaces / 174 hectares
Bird sanctuaries / 24,6 hectares
Trails and River Trails / 107km
Environmental & Education Centres / 6
Size of fleet / 322 Vehicles; 135 Trailers
Total number of employees as at 30 June 2007: 1 937
Johannesburg City Parks is committed to the principles of the Jo’burg 2030 Vision as encapsulated in the strategy of the City of Johannesburg. Special focus is given to job creation, skills development and spatial planning as envisaged in the Johannesburg Metropolitan Open Space Strategy (JMOSS). Job creation is addressed through the Expanded Public Works Programme (EPWP).
Functional areas
Parks, Designated Public Open Space, Nature Conservation Areas and Cemetery Maintenance
-Horticultural Services
-Arboriculture Maintenance
-Infrastructure Maintenance
-Nursery Operations
Cemeteries Management
-Burials
-Cremations
-Archival Records
Environmental Conservation
-Biodiversity management
-Environmental awareness
-Environmental training, empowerment and capacity building
-Bio-aquatic management
-Botanic research, monitoring & information sharing
-Conservation, Rehabilitation, Enhancement of ecosystems
-Invader species control
-Open space impact management and provisioning
-Environmental Compliance and Open Space Impact Management
-Ecotourism and conservation business development
Project Management
-Planning
-Design
-Landscaping
Marketing
-Marketing and Market Research
-Stakeholder Liaison
-Communication
-Media Liaison
-Business Development
Training and Education
-Horticultural and other job related training
-Training of temporary workers through EPWP with regard to required safety and task related skills
Section 2: Strategic Objectives
JCP has aligned its strategic objectives with the City of Johannesburg’s Mayoral Priorities, strategic plans and five-year programmes as follows:
Improve Service Delivery
JCP’s service delivery mainly consists of development, maintenance and conservation of public open space and the natural environment, greening of the City (i.e. planting of trees), and securing of burial space for the future.
This strategic objective has been successfully achieved and exceeded in many ways.
Effective Financial Management
JCP addressed the Mayoral Priority of a “Well Governed and Managed City” with the strategic objectives of Sound Financial Management, Capex Implementation and the Management of Risks. Corporate Governance and MFMA assessments were also done as well as regular internal audits. The unqualified audit results proved that JCP has been well governed and managed.
A Safe, Clean and Green City
By its very nature JCP contributes to the greening of the City with special emphasis on those areas requiring attention in this regard.
To safeguard conservation areas JCP initiated areas to be re-proclaimed as nature areas. Also, areas to be rezoned as parks have been identified and advised to the CoJ.
Occupational Health, Safety and Security
The design and layout of facilities have been done with safety in mind, and the safety in our facilities has been stepped up through our Park Warden system and the involvement of other UAC’s such as Metro Police. Through compliance to the Occupational Health and Safety Act, and the SMME safety programmes, safety in the workplace and in our facilities has been enhanced.
HIV and AIDS
JCP continues to combat HIV and AIDS through the development and education of staff as well as wellness programmes to ensure staff performance. JCP complies with the City’s and its own HIV and AIDS policies.
Customer Satisfaction and Responsiveness
Through improved service delivery JCP has improved customer satisfaction. JCP’s employee satisfaction, sustainability of our service delivery and service delivery excellence also played a valuable role towards community development.
Economic Development and Job Creation
JCP continues to contribute to economic development and job creation through the implementation of the Expanded Public Works Programme. New jobs were created, people were trained and the extent of SMME procurement contributed to achieving this Mayoral Priority.
Section 3: Foreword by Councillor P. Naidoo, JCP member of the Mayoral Committee
Conserving the green environment will always be of importance to current and future generations. Johannesburg City Parks (JCP) plays an important role in conserving and the enhancement of the green environment of the City of Johannesburg. They were involved in the greening of the City by planting in excess of 20,000 trees per annum. Through the City’s capital development JCP developed and upgraded parks and cemeteries.
JCP performed well in terms of the maintenance of the parks and open spaces under their control.
A major effort has been made in the beautification of the City which has been appreciated by the community.
Section 4: Chairperson’s Report
Introduction
On behalf of the Johannesburg City Parks (JCP) Board, I am pleased to table our annual report for the financial year 2006/2007. During this financial year we have experienced a number of changes in our board which brought us new challenges. The main change was the rotation of our chairperson Ms Pumla Radebe who now chairs the board of PikitUp (Pty) L td. We acknowledge her contribution and leadership to JCP in the past years and wish her well in her new position. We know that her enthusiasm and passion will carry her new company through. The same goes to Dave Kirkby and Hugh Sutherland who were retired from the board.
In the same breadth the JCP board was complemented by the appointment of the following board members whose contribution we are already enjoying: Mr V Ramsingh, Ms K Venier, Prof H Kasan and Mr M Bahula.
Clearly the achievements that we are tabling in this report would not be possible without the dedication of our staff and management. The staff, through the leadership of management have continued to demonstrate their commitment, enthusiasm and innovation in fulfilling the JCP mandate and the CoJ’s Service Level Agreements with JCP.
Operationally, our management team with the support of the board focussed on delivering sustainable services, containing costs and providing value for money. In general we are pleased to report that the company performed well in terms of all categories of the CoJ’s Integrated Development Plan, and the JCP Corporate scorecard. Targets were met and exceeded in various areas of the JCP operations as reported in the Managing Director’s report.
Mandate
The mandate of JCP is to develop, maintain and conserve open spaces. In this financial year JCP continued to align its business plan to the Mayoral priorities and to the Environmental Sector Plan in order to meet the expectations of its customers and stakeholders. It is in this context that the performance of JCP must be viewed.
Performance Review
Since inception JCP’s portfolio has grown substantially from year to year through the development of new parks, cemeteries and conservation areas. In addition to the above the company has placed great emphasis on the greening of the City. This has been done through the planting of trees in large numbers.
As a result of this growth and the planting of trees, maintenance requirements and standards have increased across the portfolio in spite of the fact that our financial resources have remained relatively constant. Notwithstanding, through innovation by management, productivity levels were maintained by all departments who collectively performed well in order to achieve the high level of performance that the company has achieved.
One of the many examples that we as a board of JCP are proud of is the Extreme Park Makeover, where a park was developed in 24 hours. This is an African first and possibly the worlds first. A world class cemetery was developed in the financial year namely; Diepsloot. This demonstrates the continued emphasis on innovation and sound business processes that JCP always aspires towards.
Financial Performance
The Financial performance of the JCP is detailed and outlined in the report of the Chief Financial Officer. We are pleased to report yet another year of a clean audit report by JCP. Management and the Audit Committee of the Board have worked hard in ensuring that JCP remains accountable for the resources that are allocated to it by the City. Revenue grew, costs were contained and strategic cash flow management resulted in the current year operating surplus.
Corporate Governance
JCP subscribes to the notion of good Corporate Governance. We as the board are aware and conscious of the provisions and the dictates of the Municipal Finance Management Act, 56 of 2003 and the King II principles and ethics of Corporate Governance as well the provisions of the Companies Act no 61 of 1973 as amended.
Accordingly the board has at all times provided strategic direction, oversight and support to management through the regular attendance of Board meetings and the different committees that we set up as well as ongoing consultations with management as reported in the Managing Director’s report.
The Board is also responsible for the total strategic process of risk management within the organisation. Management designed, implemented and monitored the risk management process and ensured that risk management was and is embedded in the Organisation’s day to day activities. The risk management process developed and implemented by JCP ensures that risks are identified, analysed and evaluated against set criteria. These are prioritised, monitored and reviewed on an annual basis. Risk mitigation is managed through the implementation of controls. Varied options of reducing risks such as insurance are considered where necessary.
The Internal Audit function performed to expectation and provided assurance to the Board on the effectiveness of internal controls, risk management and governance processes within the Organisation. The safety, health and environmental issues were reviewed and monitored quarterly and reported on as part of risk management.
Employment Equity and Black Economic Empowerment.
JCP is committed to correcting past imbalances in terms of employment equity. In the current financial year, almost all new appointments were from the previously disadvantaged groups. Almost 50% were African females. The targets set in terms of the equity plan were continuously monitored and managed by the HR committee in a manner that resulted in the set targets being met.
The company’s commitment to Black Economic Empowerment is captured in its approved supply chain management policy. The company has continued to ensure that Black owned companies are provided opportunities by exercising the Preferential Procurement Act of 2000. This is illustrated in the amount of work that was allocated to BEE companies including women owned and controlled companies. The targets set for procurement from BEE suppliers were exceeded.
JCP looking into the future
The company is committed to the mandate of the City as well as to the alignment of its business to the Mayoral priorities and the Environmental Sector Plan and will in the next financial year focus on the following areas: The 2010 World Cup Soccer, the Greening of Soweto, the planting of 60 000 trees in three years, the Kliprivier / Klipspruit Project, the Beautification of the City, Road Island beautification, the development of more water features and the finalisation of a Landscaping Master Plan. It will also place emphasis on regular Park and Cemetery development and review initiatives to enhance Park safety as well as increase its service portfolio and provide added value in Capital projects.
Women empowerment, and the increase in job creation through the Expanded Public Works Programme as well as the development of memorable experiences for our customers and stakeholders will not escape our radar screen.
Acknowledgements
My heartfelt congratulations and thanks go to the management and employees of JCP whose commitment, loyalty and drive have been the cornerstone of these excellent results.
Thanks to all our stakeholders, customers and suppliers, your ongoing support remains instrumental to the success of City Parks. The support and encouragement of the Member of the Mayoral Committee (MMC), Councillor Prema Naidoo, the Executive Director for Environment and her staff as well as the City is acknowledged. I am proud to have been part of all the achievements and would like to thank all the Board Members for their contribution. Nangomso!!!
Section 5: Managing Director’s Report
During the year under review, we continuously focused on reinventing ourselves through innovation, learning, applying visual landscape changes and creating opportunities where strategically appropriate.
Ensuring political expediency and efficiency were critical to the organisation’s operational processes and programmes. Our approach is not that of only providing environmental management services, but focussing on green landscape engineering was critical.
The performance front provided a platform for robust delivery and targets were achieved in all spheres of the scorecard.
Performance Highlights
95% Productivity level was achieved in terms of open space maintenance.
For the period under review (2006/7), 21,653 trees’ were planted compared to 3,578 trees planted in the previous year.
Street trees enquiries for the year 2006/7 totalled 8,920, bringing a 1,76% reduction when compared to the amount of enquiries that were received for the period 2005/6, being 9,080.
6 New parks were developed in 2006/7, (50 since inception)
6 Parks were upgraded in the period 2006/7, (60 since inception)
4 Cemeteries were upgraded in the period 2006/7, (14 since inception)
Customer satisfaction index increased to 78% for the period under review.
The number of visitors to the website also increased from 176,907 in the 1st quarter to 235,150 in the 4th quarter, for the period 2006/7.
There were 344 stakeholder visits.
External Services revenue increased by 89% to R15,3 million.
BEE Procurement increased from 80% to 84%
826 Employees were trained in the period 2006/7
99% of Capital Projects were completed.
28 595 learners were reached through environmental training programmes
We placed an emphasis on job creation in that 963 jobs were created in 2006/7. This number exceeded the 727 jobs that were created in the previous year.
98% of appointments that was effected were from PDI, 44% was female, with more then half being African Black.
97% of all employees complied with JCP’s leave policy.
Extreme Park Makeover – City Parks set a record of building a park in 24 hours.
Customer satisfaction increased by 8% in the period under review. This was achieved through a better understanding of the stakeholder expectations and through the use of more efficient and effective methods of visual service delivery. Increased levels of productivity and efficiency also contributed towards the favourable results in customer satisfaction and our employee training programme served to compliment operational performance. Visitors to the City Parks website saw an increase from 176 907 in the 1st quarter to 235 150 in the 4th quarter. Added to this, customer queries reduced by 1,76%.