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Annual Performance Plan 2011 / 12 Presentation to Portfolio Committee on CoGTA Xolile George Chief Executive Officer 19 April 2011

Annual Performance Plan 2011 / 12 Presentation to Portfolio Committee on CoGTA Xolile George Chief Executive Officer 19 April 2011

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Annual Performance Plan

2011 / 12

Presentation to Portfolio Committee on CoGTA

Xolile GeorgeChief Executive Officer

19 April 2011

Represent

Advise & Support

Employer Body

Go

vern

an

ce

& I

GR

PROGRAMMES

Infr

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SALGA’s three keymain roles cut-acrossto underpin its 5-Year Strategic Objectives &

Programmes

Str

ateg

y, P

oli

cy a

nd

R

esea

rch

Fin

ance

an

d C

orp

ora

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vice

s

VISIONTo be consultative, informed,

mandated, credible and accountable to our membership &

provide value for money

Pro

vin

cial

Pro

gra

mm

es

SALGA’S ORGANISING FRAMEWORK

Co

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un

ity

Dev

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pm

ent

OC

EO

Profile LG

SALGA’s Mandate and Strategic Priorities 2011-2012

SALGA 5 YEAR STRATEGIC PLAN

2007-2012

SALGA 5 YEAR STRATEGIC PLAN

2007-2012

SALGA CONSTITUTION1. Employer Role 2. Representative Role3. Advisory Role 4. Profiling Role

SALGA CONSTITUTION1. Employer Role 2. Representative Role3. Advisory Role 4. Profiling Role

SALGA’SMANDATESALGA’SMANDATE

LGTASLGTAS

MTSF 2009-2014MTSF 2009-2014

MDG’sMDG’s

COGTA 10-POINT PLANCOGTA 10-POINT PLAN

1 Improve SALGA’s capacity to support and advise its members.2 Improve SALGA’s capacity to engage with stakeholders, lobby and advocate them on issues in the interest of member municipalities.

1 Improve SALGA’s capacity to support and advise its members.2 Improve SALGA’s capacity to engage with stakeholders, lobby and advocate them on issues in the interest of member municipalities.

SALGA CHANGE AGENDASALGA CHANGE AGENDA

3 Improve SALGA’s capacity to effective represent members as the employer.4 Enhance and maintain a high profile position nationally, regionally and internationally.5 SALGA’s corporate governance and internal functioning.

3 Improve SALGA’s capacity to effective represent members as the employer.4 Enhance and maintain a high profile position nationally, regionally and internationally.5 SALGA’s corporate governance and internal functioning.

1. Councillor Support: High calibre, professional and effective Local Government political leadership.1. Councillor Support: High calibre, professional and effective Local Government political leadership.

SALGA 10 PRIORITY OUTCOMES2011-2012

SALGA 10 PRIORITY OUTCOMES2011-2012

2. Service Delivery: Improved access to municipal services and enhanced provision of FBS, through effective operations management and service maintenance.

2. Service Delivery: Improved access to municipal services and enhanced provision of FBS, through effective operations management and service maintenance.3. Social Cohesion: Transversal (gender, youth, children, HIV/AIDS) socio-economic issues mainstreamed.

3. Social Cohesion: Transversal (gender, youth, children, HIV/AIDS) socio-economic issues mainstreamed.4. Economic Development: Municipalities drive growth and employment creation, both in urban and rural areas.4. Economic Development: Municipalities drive growth and employment creation, both in urban and rural areas.

5. Labour Relations: A productive, stable labour environment, supported by a mutual gains approach.5. Labour Relations: A productive, stable labour environment, supported by a mutual gains approach.

6. Sound financial management and governance system: Improved financial management and financial viability of municipalities.

6. Sound financial management and governance system: Improved financial management and financial viability of municipalities.

7. Stable Municipal Governance: Stable Municipal Governance.7. Stable Municipal Governance: Stable Municipal Governance.

8. Capacity Building and Institutional Development: Enhanced skills and organisational systems and structures of municipalities towards improved service DELIVERY.

8. Capacity Building and Institutional Development: Enhanced skills and organisational systems and structures of municipalities towards improved service DELIVERY.

9. Reform Organised Local Government: A more effective, responsive and financially viable SALGA.9. Reform Organised Local Government: A more effective, responsive and financially viable SALGA.

10. Climate Change response measures at municipal level: Integrated climate change responses in development planning and management.

10. Climate Change response measures at municipal level: Integrated climate change responses in development planning and management.

HIGHLIGHT OF ACHIEVEMENTS

2010 / 11

Achievements 2010/11

Municipal Service Delivery

Achievements Impact

Developed guidelines on local regulation of water service provision

The guide will empower municipalities to regulate water services better.

SALGA successfully lobbied for Metro municipalities to be granted Level 2 Accreditation to perform human settlements development program.

Metro municipalities will now be able to manage human settlements development in manner that is integrated with other built environment functions of municipalities

The National Members Assembly (NMA) approved a position paper on EDIR

The position paper assisted role-players to understand the key issues that needed to be resolved before EDIR could be implemented and that implementation of EDIR without resolving these issues would harm municipal viability. The realization that these issues could not be resolved without causing harm to the viability of municipalities, was a key reason that could have contributed to the Cabinet decision to discontinue the process of establishing the REDs.

Achievements 2010/11

Municipal Service Delivery (Cont...)

Achievements Impact

SALGA has conducted a Disaster Risk Management Assessment and Developed a Guide on Disaster Risk Management for Local Government.

The assessment enabled the sector to take stock of the current status of Disaster Risk Management policy and practice.

It paved a way for coordinated planning and responses to disasters.

Achievements 2010/11

Social Cohesion

Achievements Impact

SALGA hosted a successful Women in Local Government Summit (WILGS) on 30 November 2010.

The SALGA Women’s Commission was launched at the WILGS and is a structure that has the primary function of driving issues of gender mainstreaming at the local government level. It presents an organised body that represents local government on gender issues and serves as a coordinating and organising body for the inclusion of gender issues in the development programmes of government.

SALGA developed a Human Development Framework (HDF) for Local Government.

The Human Development Framework will align municipalities towards a single strategy for meeting the MDGs and eradicate poverty.

Facilitated research project on migration and its implications for service delivery

A migration policy position and framework that seeks to facilitate social cohesion between communities of different origins thus ensuring all have access to municipal services

Achievements 2010/11

Economic Development

Achievements Impact

Facilitated an LED Network since February 2010. The network is the central portal and forum for exchange of knowledge and successful LED practice. It also helps to facilitate municipal peer-to-peer support.

Municipal LED practitioners have an extensive base of resource materials (Guides, toolkits, research, best practices and updates news and information) to guide them in growing their local economies and creating jobs for their local communities.

SALGA has facilitated various LED Partnership projects with international partners such as:• Swedish Association of Local Authorities SALA)• Commonwealth Local Government Forum (CLGF)• Industrial Development Corporation (IDC)

In improving the environment for doing business at a local level SALGA in partnership with the Swedish Association of Local Authorities have been piloting the establishment of business forums, conducting business enabling environment surveys and promoting red tape reduction strategies within 10 municipalities in South Africa

Ensure rural municipalities engage in activities to support local farmers – SALGA and CLGF have facilitated a partnership between Vhembe and Mopani Districts in SA with 2 Indian municipalities in this regard.

Achievements 2010/11

Economic Development (Cont...)

Achievements Impact

SALGA hosted the first National Informal Trade Summit held in Polokwane from the 10th - 12th November 2010.

The summit developed a Generic Policy and model by-laws for municipalities to direct the informal trade sector in their municipalities.

The intense dialogue at the Summit has placed SALGA in a better position to take a more proactive role in supporting good Informal Trade Management practice in municipalities

SALGA's intervention served as a catalyst to raise the profile of informal trade management as a key municipal service delivery function. The event also served to create greater awareness of the importance of informal trading management amongst senior municipal officials and thereby raise its profile as a key municipal service delivery function. This engagement also developed a generic informal trade policy and model by-laws.

Municipalities now have access to best practices in terms of informal trade management

Achievements 2010/11

Labour Relations

Achievements Impact

Collective agreement on the disciplinary procedures for employees below section 57

Regulation of employee disciplinary procedures

Developed a wage curve collective agreement.

Participated in the design and development of Disciplinary Regulations in terms of the Systems Act for section 57 employees

Pay parity in the sector.

Predictable, consistent and certain discipline regime for all employees of local government

Achievements 2010/11

Municipal Governance and IGR

Achievements Impact

Developed a framework for managing the LG transition – guidelines and circulars provided to municipalities to manage election and transition processes.

Governance processes in municipalities are managed and transitional arrangements put in place to ensure continued delivery of services and functioning of municipal administrations.

Support provided to Municipal Demarcation Board in the ward delimitation process and participation in ward delimitation process to ensure efficient processing of objections and recommendations.

All legislative requirements for 2011 local government elections have been met and a smooth local elections can now take place on 18 May 2011.

Hands-on governance support, in the form of legal opinions, workshops and seminars and guidelines were provided to a number of municipalities on municipal governance issues.

Municipal Councils are equipped to take sound governance decisions thereby contributing to strengthening effective and stable municipal governance in the sector.

Achievements 2010/11

Capacity Building and Institutional Development

Achievements Impact

SALGA host a successful Human Resource Management Policy Conference from the 6-8 September 2010 in Polokwane.

The conference resolutions will be paving the way to transform human resources policy and practices in the Local Government Sector towards better and sustainable service delivery.

Developed a 2011 Councillor Induction Programme and implementation plan

A well grounded and oriented leadership core of Municipalities for effective and efficient service delivery in the new term of office.

Trained Four hundred and fifty (450) delegates graduated on the Executive Leadership and Management Development (ELMDP)

Competent base of Management and Leadership pool to instil good governance in local government.

Conducted various learning events where municipal practitioners shared experiences of municipal delivery challenges. Examples include: HIV and AIDS, Climate Change, Migration, Public Participation etc

Municipal practitioners learn from each other’s experiences to improve their own capacity and knowledge for improved service delivery

Achievements 2010/11

Climate Change Responses

Achievements Impact

SALGA made inputs into the green paper on climate change

The role of local government in managing climate change is recognised in the Climate Change Response Green paper

Awareness has been raised among municipalities regarding climate change leading to some of them beginning to facor climate change into their plans

Summit and Expo held on Green Economy Summit and climate change innovation

SALGA contributed in organizing a Green Economy Summit and EXPO leading the Summit and Expo having as one of the areas of focus, the role of local government in greening the economy.

Achievements 2010/11

Internal Capacity / Corporate Governance

Achievements Impact

Instituted the Enquiry Management System at the National Office

A more effective and responsive tool to monitor queries by SALGA members and stakeholders. The SALGA business unit where the tool is piloted is now enabled to be responsive to enquiries from municipalities and other stakeholders. The system provides a quick turnaround to stakeholders and members queries and allows management to monitor and track how we respond as an organisation, including the turnaround time for handling queries.

Installation of the SAP Accounting Software

This is a project in which the impact will only be achieved in the long term when other modules are added to make up the complete ERP/CRM system.

Revised the SALGA 5 year Strategy (2007-12)

The revised 5 year strategy takes account of the Priorities determined by National Government particularly through CoGTA and determines the role that Local Government can play in achieving these. The revised 5 year strategy of SALGA has long term benefits for better performance in the Local Government Sector

ANNUAL PERFORMANCE PLAN

2011 / 12

Annual Performance Plan 2011/12 was submitted to the Minister: COGTA for approval on 1st March 2011

Annual Performance Plan 2011/12

• National Treasury launched a Revised Framework for Strategic Plans and Annual Performance Plans in November 2010:– The revised framework refers to the business plan as the “Annual

Performance Plan” hence SALGA 2011/12 Annual Performance Plan.

– The SALGA Annual Performance Plan 2011/12 has been aligned to the Delivery Agreement of the Minister: COGTA.

SALGA5-YEAR STRATEGY

2007-2012

Superseded by the LGTAS, but retain programmatic continuity and repackage

Retain, but much lower priority

MTSF OUTCOMES

MTSF 2010/11 OUTCOMES

1 Quality basic education.2 A long and healthy life for All 283 municipalities South Africans.3 All 283 municipalities people in South Africa are and feel safe.4 Decent employment through inclusive economic growth.5 Skilled and capable workforce to support an inclusive growth path.6 An efficient, competitive and responsive economic infrastructure network.

7 Vibrant, equitable, sustainable rural communities contributing towards food security for All 283 municipalities.

8 Sustainable human settlements and improved quality of household life.9 Responsive, accountable, effective and efficient Local Government system.10 Protect and enhance our environmental assets and natural resources.11 Create a better South Africa, a better Africa and a better world.

12 An efficient, effective and development orientated public service and an empowered, fair and inclusive citizenship.

Supersede the 09/10 Apex priorities as the centrepiece of policy & DELIVERY

Info

rmed

by t

he 2

009 E

lecti

on

M

an

ifesto

MTSF OUTCOME 9:LGTAS 10 POINT

PLAN

Provides concrete ‘outcomes’ for the LGTAS & replaces the 5YLGSA

Top 10PRIORITY OUTCOMES

20011-2012

Priority OutcomesLGTAS 10 POINT

PLAN

1. Councillor Support High calibre, professional and effective LG political leadership LGTAS OUTCOME: 9

2. Service DeliveryImproved access to services, Improved management of operation & maintenance of services, Enhanced and uniform provision of Free Basic Services

LGTAS OUTCOME: 1

3. Social CohesionMainstreaming transversal (gender, youth, children, HIV/AIDS) socio-economic issues.

LGTAS OUTCOME: 9

4. Economic Development Municipalities drive growth and employment creation, both in urban and rural areas LGTAS OUTCOME: 2 & 3

5. Labour Relations A productive, stable labour environment, supported by a ‘mutual gains’ approach. LGTAS OUTCOME: 5

6. Sound financial management & governance

Improved financial management and financial viability of municipalities; LGTAS OUTCOME: 5

7. Stable Municipal Governance Stable Municipal Governance LGTAS OUTCOME: 8 & 10

8. Capacity Building and Institutional Development

Enhanced skills and organisational systems of municipalities for improved service delivery

LGTAS OUTCOME: 5

9. Reforming Organised Local Government

A more effective, responsive and financially viable SALGA LGTAS OUTCOME:

10. Climate Change response measures at municipal level

Integration of climate change responses in development planning and management.

LGTAS OUTCOME: 1

Annual Performance Plan 2011/12

LEGEND:

CA = Change AgendaPO = Priority Outcome

Notes:1.There are no KPI’s for “CA 3: Improve SALGA’s capacity to effectively represent members as the employer” because the Change Agenda focuses on building the internal capacity of SALGA and as this was achieved in previous years the employer role emphasis has shifted to serving the membership of SALGA in terms of its priorities P0 1, P0 5 and P0 8 i.e. Councillor Support, Labour Relations and Capacity Building respectively.2.The quantities in this slide are the number of KPI’s that the entire organisation will focus on in terms of the priority areas identified and there is no correlation to the effort or resources required to undertake these programmes. Therefore, although the greatest number of KPI’s are in Social Cohesion and Internal Corporate Governance functions does not mean that most of the resources will be focused on these areas.

Annual Performance Plan 2011/12

P O1. Councillor Support - High caliber, professional and effective Local Government

Political Leadership

P O1. Councillor Support - High caliber, professional and effective Local Government

Political Leadership

1. Rollout Councillor Induction Programme

2. Support and advise municipalities after LG elections in the process of electing ward committees

3. Lobby for qualitative progress on 50/50 and agitate for broader equity in the employment of people with disabilities

4. Capacitate new Councillors to understand their roles and responsibilities

5. Municipalities advised and supported to have fully functional and effective committees of Council

LGTAS 9: Develop and strengthen a politically and administrative stable system of municipalities

P O2. Service Delivery - Improved access to municipal services and enhanced provision of FBS,

through effective operations management and service maintenance.

P O2. Service Delivery - Improved access to municipal services and enhanced provision of FBS,

through effective operations management and service maintenance.

1. Develop a position paper on the revised Emergency Housing Policy

2. Support all 10 municipalities that are participants of the Indalo Yethu Clean and Green program to submit proposals to undertake S78 processes

3. Support three identified municipalities in the housing accreditation process and on the rollout of housing rental stock

4. Develop a SALGA position on management and maintenance of roads infrastructure especially outside the metropolitan areas

5. Develop National LG comments in the Sanitation White Paper

LGTAS 1: Improve the quality and quantity of access to municipal basic services.

P O3. Social Cohesion - Transversal (gender, youth, children, HIV/AIDS) social-economic issues

mainstreamed.

P O3. Social Cohesion - Transversal (gender, youth, children, HIV/AIDS) social-economic issues

mainstreamed.

1. Develop Disaster risk management response toolkit

2. Facilitate Provincial Engagements on human development compliance

3. Develop guidelines on mainstreaming of community development issues

4. Convene the Women in Local Government Summit

5. Pilot the development of municipal Human Development in 4 municipalities

LGTAS 9: Develop and strengthen a politically and administrative stable system of municipalities

P O4. Economic Development- Municipalities drive growth and employment creation, both in urban and

rural areas

P O4. Economic Development- Municipalities drive growth and employment creation, both in urban and

rural areas

1. Make inputs into Land Use Management Bill

2. Assess the alignment of IDPs in 6 Municipalities

3. Implement Phase 2 of the LED Maturity Assessment Training including SALGA assessments of 2 Municipalities in participating SALGA provinces

4. Support 7 Municipalities in the Eastern Cape in aligning their LED strategies with key strategic plans

5. Workshop municipalities in North West on the broad band policy on communication

LGTAS 2: Enhance the municipal contribution to job creation and sustainable livelihoods through LED:LGTAS 3: Ensure the development and adoption of reliable and credible IDP’s.

P O5. Labour Relations - A productive, stable labour environment, supported by a ‘mutual gains’

approach.

P O5. Labour Relations - A productive, stable labour environment, supported by a ‘mutual gains’

approach.

1. Develop the Human Resource Strategy

2. Develop and implement a consolidated wellness strategy

3. Facilitate capacity building for Presiding Officers and Prosecutors

4. Represent municipalities in conciliations, arbitrations and disciplinary hearing.

5. Develop prioritised policies and monitor the implementation of existing policies

LGTAS 5: Build and strengthen the administrative, institutional and financial capabilities of municipalities

P O6. Sound Financial Management and Governance system - Improved financial

management and financial viability of municipalities

P O6. Sound Financial Management and Governance system - Improved financial

management and financial viability of municipalities

1. Prepare a research report on the over - and under regulation of local government.

2. Improve municipal financial performance and management practices by establishing a database with key Home Affairs and Deeds Offices information

3. Facilitate councillor’s Training on Municipal Finances and LED after Local Government Elections

4. A Position paper on various approaches to the indigent policy developed by 31 March 2012

5. Facilitate the application process on Local Business Tax for submission to National Treasury

LGTAS 5: Build and strengthen the administrative, institutional and financial capabilities of municipalities

P O7. Stable Municipal Governance - Stable municipal governance

P O7. Stable Municipal Governance - Stable municipal governance

1. Research Paper on best practices regarding enhanced oversight in municipalities.

2. Facilitate District and/or Provincial MIS IGR Forums

3. Municipalities consult members of the community, community structures and stakeholders in all its affairs and other development programs

4. Final guidelines on the roles and responsibilities approved by the NEC

5. Meaningful participation and regular representation of SALGA in key IGR Structures with clear mandated positions developed and Councillor representation in place

LGTAS 8: Develop a coherent and cohesive system of governance and more equitable intergovernmental fiscal system.LGTAS 10: Restore institutional integrity of municipalities.

P O8. Capacity Building and Institutional Development - Enhanced skills and organisational systems and structures of municipalities towards

improved service delivery. .

P O8. Capacity Building and Institutional Development - Enhanced skills and organisational systems and structures of municipalities towards

improved service delivery. .

1. Advisory Internal Audit support provided to municipalities with poor audit outcome.

2. Supporting and assisting municipalities in the implementation of Performance Management System.

3. Manage the District Learning Network (DLN)

4. Municipalities establishing capacity and integrating climate change response in their plans

5. Facilitate International Best Practice Study Tour on Human Capital Development

LGTAS 5: Build and strengthen the administrative, institutional and financial capabilities of municipalities

P O9. Reform Organised Local Government - A more effective, responsive and financial viable

SALGA

P O9. Reform Organised Local Government - A more effective, responsive and financial viable

SALGA

1. Development of a position paper on the review of Organized Local Government.

2. Municipalities consulted during the review and restructuring of Governance Structures of SALGA

3. Capacitated PEC and working group members and meaningfully participating in key IGR structures including the Provincial Legislature

P 10. Climate Change response measures at municipal level - Integration of climate change

responses in development planning and management.

P 10. Climate Change response measures at municipal level - Integration of climate change

responses in development planning and management.

1. Report on the extent to which local government fiscal frameworks makes provision for effective performance of municipal environmental functions

2. Integration of climate change response into municipal planning processes

3. Improve local government awareness of the local and international opportunities for climate change mitigation and adaptation at local level

4. Support at least five municipalities in developing climate change response plans

5. Assess policy implications of implementation of energy efficiency in municipalities

LGTAS 1: Improve the quality and quantity of access to municipal basic services.

MANAGING TRANSITION IN

LOCAL GOVERNMENT

(2011 Local Elections)

Background

• SALGA and Municipalities will be faced with a number of processes related to the elections as well as typical municipal processes which will be influenced by the elections

• The 2011 local government elections provide an opportunity for organised local government to play a proactive and leadership role in all processes related to the elections

• SALGA has developed a Transition Management Framework to support municipalities through the this period. The support provided in terms of the Framework will be coordinated internally, will be coherent from the perspective of municipalities, and is integrated into the priorities and programmes of SALGA

• The transition framework covers the period: Pre; During; Post elections

Development of guidelines/circulars in respect of:

– Budgeting, integrated development planning in the period February to May 2011

– Appointment and terms of reference for MEOs

– Continued meetings of Mayco/Exco/Council during this period

– Funding of municipal activities relating to elections

– The continuation of projects and tenders as per the SDBIP

– Preparation of a Mayco/Exco handover report on most urgent/strategic matters on municipal horizon

– Councilor support and benefits for outgoing (executive) councilors

– Protocols related to overall administration of municipalities during the transitional period

– Extent of delegation of Powers to Heads of Administration in municipalities leading up to and during the transitional period

– Cooperation in the overall administration between SALGA, municipalities and Sector Departments, leading to and during the transitional period

Pre - Elections

• Development of ongoing SALGA communication to broader LG community on SALGA role in elections, as per communications plan.

• Development of “Day 1” guidelines/circulars in respect of governance issues, such as:

– Role of municipal manager during transition – First council meeting, and matters for discussion/decision,

including nominations to SALGA internal structures, such as provincial WGs, provincial SALGBC structures

– Councilor support and benefits for incoming (executive) councilors

– Approach to budgeting and planning – Convening of an “Executive/Mayoral Lekgotla” where top

management team will brief incoming executive leadership on state of municipality, and will be briefed by incoming political executive on electoral priorities

Pre - Elections

During Elections

• Development of circular on role of (executive) councillors when new council is “declared elected”

• Development of circular on role and responsibilities of municipal manager

• Continued showcasing of LG successes

• Continued SALGA communication on SALGA role during elections

• Ensuring sustainability of municipal administration through continuous support and monitoring during the transitional period

Post Elections

• Roll-out of Councillor Induction Programme as per project plan

• Extensive communication on SALGA Councilor Induction Programme

• Guidelines/circulars on councillor support and benefits to incoming (executive) councillors

• Prepare and attend SALGA Provincial and National Conferences

• Induction of SALGA PECs and NEC (post respective Conferences)

• Advise on appointment of Section 57 Managers

• Provide advice and support on the establishment of Mayco/Exco and Portfolio Committees in municipalities

• Provision of support and advise on the sitting of Council meetings• Prioritisation of attendance of first Council meetings by SALGA,

alternatively ensuring that SALGA item features on agenda• Continued SALGA communication on SALGA’s role as organized Local

Government.• Development of a circular on the relationship between councillors and

officials in municipalities as well as the relationship between districts and local municipalities.

• Guidelines on the role of the different office bearers: office of the Mayor, office of the Speaker, office of the Chief Whip.

• Understanding the processes and procedures regarding Section 106 (MSA) and 139 of the Constitutions.

• Functioning of Committees of Councils (section 79 & Section 80 Committees)

Post Elections

BUDGET

2011/2012 to 2013/14

(MTEF)

Revenue Budget

2011/12 MTEF

Revenue streamAdjusted Budget -

2010/2011 Financial Year

Full Year Budget - 2011/2012

Full Year Budget - 2012/2013

Full Year Budget - 2013/2014

R thousand

Membership levies R 147 700 R 203 878 R 240 680 R 286 702

Government grants - Executive Authority R 50 025 R 26 102 R 27 407 R 28 914

Other grants R 3 385 R 2 385 R 0 R 0

Capacity Building income R 3 996 R 4 412 R 4 632 R 4 864

Sponsorships & Donations R 18 013 R 3 254 R 3 579 R 3 937

NMA/PMA Conference Registration Fees R 3 088 R 4 245 R 4 387 R 4 528

Other income R 1 237 R 1 296 R 1 376 R 1 451

Other Gains and Losses R 131 R 137 R 145 R 153

Donor Funds Received R 16 813 R 4 800 R 2 400 R 2 400

Total income R 244 387 R 250 508 R 284 606 R 332 949

Revenue Budget

2011/12 MTEF

% Contribution

Revenue streamAdjusted Budget -

2010/2011 Financial Year

Full Year Budget - 2011/2012

Full Year Budget - 2012/2013

Full Year Budget - 2013/2014

Percentage

Membership levies 60% 81% 85% 86%

Government grants - Executive Authority 20% 10% 10% 9%

Other grants 1% 1% 0% 0%

Capacity Building income 2% 2% 2% 1%

Sponsorships & Donations 7% 1% 1% 1%

NMA/PMA Conference Registration Fees 1% 2% 2% 1%

Other income 1% 1% 0% 0%

Other Gains and Losses 0% 0% 0% 0%

Donor Funds Received 7% 2% 1% 1%

Total income 100% 100% 100% 100%

Revenue Budget

2011/12 MTEF

Revenue Budget

2011/12 MTEF

Over-reliance on membership levies

• The organisation is primarily dependent on membership levies (about 81% of total income is derived from membership levies). The disadvantage of this state of affairs is that membership levies are unreliable in terms of collections, which may lead to a negative impact on programme implementation.

• In 2011/12 the Sponsorships & Donations revenue stream has decreased phenomenally from 7% contribution to 1%. This is clearly not a reliable revenue stream.

Budget per

Strategic Objective: (Priority Outcomes)

Budget per

Strategic Objective: (Change Agenda)

Budget per Programme /

2011/12 (MTEF)

Province / Directorate Adjusted Budget 2010/2011

Full Year Budget 2011/2012

Full Year Budget 2012/2013

Full Year Budget 2013/2014

‘000 ‘000 ‘000 ‘000

CEO R 31 420 R 27 126 R 28 924 R 30 668

COD R 5 562 R 11 288 R 12 055 R 12 802

EDP R 8 652 R 8 902 R 9 523 R 10 130

FCS R 54 969 R 57 449 R 61 543 R 65 644

IGR R 5 461 R 5 654 R 6 051 R 6 439

MID R 10 496 R 9 833 R 10 476 R 11 099

MIS R 20 622 R 18 732 R 19 959 R 21 147

SPR R 6 227 R 6 278 R 6 705 R 7 120

EC R 14 667 R 14 089 R 15 085 R 16 074

FS R 14 193 R 14 275 R 15 262 R 16 234

GP R 15 102 R 15 540 R 16 681 R 17 823

LIM R 12 034 R 12 352 R 13 248 R 14 142

MPU R 11 109 R 11 452 R 12 285 R 13 116

NC R 12 167 R 12 474 R 13 392 R 14 312

NW R 10 201 R 10 396 R 11 128 R 11 848

WC R 13 310 R 13 825 R 14 849 R 15 879

Total R 246 192 R 249 665 R 267 166 R 284 477

Directorate Budget

2011/12 MTEF

Provincial Budget

2011/12 MTEF

Provincial Budget per

Programme / Cost Centre

2011/12 MTEF

Budgetary

Challenges

• The funding required by the various programmes for specific outcomes is R96 million of which only R43 million could be availed at current funding levels.

• Over-reliance on a single source of revenue put’s the organisation’s going-concern considerations in doubt.

• SALGA is compelled to participate legislated IGR forums, and the over-reliance on membership levies hinders effective participation due to cash flow considerations.

• Due to budget constraints, the organisation is operating at 68% capacity when compared to the approved organogram of 470 personnel.

• The organisation developed a funding model that considered the abovementioned context and benchmarked against international best practice for similar organisations.

Budget per Programme /

Cost Centre 2011/12 MTEF

(cont.)

Funding Model Proposals

• The funding model must be implemented as soon as possible in order to ensure the organisations sustainability

• In the interim, programme roll-out relies on the payment levels for membership levies which are currently at 7% (as at 18 Apr 2011)

• The model has been presented to NT and CoGTA; official responses regarding its approval and implementation are awaited

Cost Component 2011/12 2012/13 2013/14R’000 R’000 R’000

Mandatory Governance costs 6,072 6,442 6,796Legislated IGR participation 76,823 81,509 85,992

Transformation /Restructuring 18,480 0 0TOTAL 101,375 87,951 92,788

Less Current government grant in financial model 24,000 26,000 27,000

TOTAL INCREASE REQUIRED 77,375 61,951 65,788

THANK YOU