NOTICE TO MEMBERS OF THE
The following is reported in terms of Chapter 1 Section 6 (3) of the Supply Chain Management Policy for period 1 April 2017 to 30 June 2017.
Implementation of the Supply Chain Management Policy
The Policy was implemented in accordance with the MFMA and the relevant Regulations. The Policy was reviewed in terms of the new PPPF Act Regulations of 2017. Implementations commenced 1 April 2017.
Confirmation of Implementation of Delegated Powers
It can be confirmed that all delegated powers from Council are implemented to comply with responsibilities in terms of chapter 8 of the Act (MFMA). All procurement is done on updated, approved delegations and sub-delegations in terms of Section 4 and 5 of the Supply Chain Management Policy.
Implementation of the Supply Chain Management process
- Training of Supply Chain Management Officials.
- Formal Supply Chain Management training is currently held in abeyance due to budget constraints.
- Demand Management
The consolidated Procurement Plan for 2016/2017 was closed and reporting on outstanding bids will be finalized shortly. Progress has been made regarding the formalization of the Procurement Plan for 2017/18. Planned submission of the 2017/18 consolidated Procurement Plan is the second week of July 2017.
The database for suppliers was updated and maintained on a daily basis. Provision was also made to advance the designated groups pertained in Section 4 of the new PPPF Regulation.
- Acquisition Management
All procurement was made in accordance with the required thresholds and contracts as pertained in the Policy.
There were (11) eleven contracts awarded during this period.
The quarterly report for all orders placed where less than three (3) quotations were obtained will be on record shortly.
All orders placed between R30 000.00 and R200 000.00 were reported to the CFO.
Deviations from the procurement process were reported to Council on
12 April and 20 June 2017.
A total amount of R 82, 945,354-78 was paid out to Supply Chain Management suppliers of which R 62,020,272-07 was paid to local black SMME's.
- Logistics Management
All inventory levels were tested and no zero levels were recorded.
The turnover rate of stock items was monitored and no corrective actions were required.
Monthly spot checks were performed on stock items and no deviations were recorded.
The annual stock take was completed on 30 June 2017 and reconciliation is currently in process. A final report on the outcome will be available shortly.
- Disposal Management
An auction was held on 26 April 2017 to auction off redundant material and equipment. An amount of R1, 531, 751-03 was generated.
- Performance and Risk Management
No assessment was performed during this period due to staff related issues.
Finally, I declare that all transactions are recorded and can be accounted for in an appropriate accounting system.
G H Akharwaray
The Municipal Manager