BUDGET REVIEW 2005 – 06 FINANCIAL YEAR

BUDGET REVIEW2005 – 06

FINANCIAL YEAR

PORTFOLIO COMMITTEE ONPROVINCIAL AND LOCAL GOVERNMENT

AGENDA

• Introduction• Highlight Successes• Highlight Challenges• Performance against pre-determined objectives• Finances

– Revenue– Summary: Income against Budget– Summary: Expenditure against Budget

• Conclusion

INTRODUCTION

SALGA’s Mandate SALGA’s mandate derives from S169 of the Constitution of the Republic of South

Africa, Act 108 0f 1996 as amended; S2(1) (A) of the Organised Local Government Act, Act 52 of 1997 as amended; the White Paper on Local Government of 1998; Municipal Systems Act, Act 32 of 2000; and SALGA’s Constitution of September 2004 as amended.

These mandates generally define SALGA as a representative body and resource of local government at national, regional and international forum

SALGA Is entrusted with promoting and protecting the interest of local government institution

The mandate of SALGA as defined in its principal sources, comprise the following: Representative role – an Inter-governmental Relations function Support & Advise role – define needs of members; lobby for/ leverage/ demand/

provide support & advise i.t.o needs

INTRODUCTION

SALGA’s Mandate (Cont…)

Act as an employer body Act as a resource (knowledge & info centre) to municipalities Help develop capacity in municipalities Unite local government given that developmental obligations Custodian of sharing experiences within local government Partner government in driving transformation programme

INTRODUCTION

Vision; Mission & Values Vision

An association of municipalities that is at the cutting edge of quality and sustainable services

Mission

To be consultative, informed, mandated, credible & accountable to our membership, and provide value for money

Values

Responsive Innovative Dynamic Excellence

INTRODUCTION

Strategic Objectives Increase SALGA’s effectiveness and efficiency to enhance sustainability of

organised local government and quality of service to its members; To foster policy, strategy and operational integration of SALGA; To foster planning, reporting and budgetary context for the organisation as a whole; To facilitate the strengthening of the system of communication in local government; To ensure that SALGA enhances and maintains a high profile position locally,

regionally and internationally; To facilitate and support the capacity of member municipality locally and through

continental and international exchanges and peer learning in key areas; To mainstream issues of gender, youth, people with disabilities and HIV/Aids as

central cross-cutting issues in the local government developmental agenda;

INTRODUCTION

Strategic Objectives Promote a lawful governance system which will enable service delivery in a

developmental state; Promote the credibility and relevance of the local government agenda in national

policy and programmes; Promote the enhancement and mobilisation of existing capacity within the local

government sphere to share responsibility for its own development; To facilitate the implementation of a labour and human resources dispensation in

municipalities that enhances service delivery; To advocate labour peace in the sector; To ensure municipal compliance to workplace legislation;

INTRODUCTION

GOVERNANCE STRUCTURE

NATIONAL CONFERENCE

NATIONAL EXECUTIVE COMMITTEE

NATIONAL MEMBERS ASSEMBLY

IMPLEMENTATION

CHIEF EXECUTIVE OFFICER

CLUSTERS

6 x WORKING GROUPS

INTRODUCTION

OFFICE BEARERS

CHAIRPERSON

EXECUTIVE MAYOR - AMOS MASONDO

DEPUTY CHAIRPERSON

EXECUTIVE MAYOR - HAZEL JENKINS

DEPUTY CHAIRPERSON

EXECUTIVE MAYOR - OBED MLABA

DEPUTY CHAIRPERSON

EXECUTIVE MAYOR - REGINA MHAULE

INTRODUCTION

CHIEF EXECUTIVEOFFICER

Dr. Makhosi Khoza

13 March 2006

ADMINISTRATIVE STRUCTURE

EXECUTIVE DIRECTOR:

FINANCE & CORPORATESERVICES

Mr. Sabelo Wasa

EXECUTIVE DIRECTOR:

GOVERNANCE; INTER-GOVERNMENTAL

RELATIONS & MUNICIPALSERVICES

Adv. Graham Richards

EXECUTIVE DIRECTOR:

STRATEGIC AFFAIRS

Ms. Buhle Ally

ACTING EXECUTIVEDIRECTOR:

LABOUR & MUNICIPALHUMAN RESOURCES

Mr. Linda Dlamini

9 X DEPUTY CHIEFEXECUTIVE OFFICERS

(PROVINCES)

HIGHLIGHT SUCCESSES

Improved membership levies collections from only about 40% for 2004/05 financial year to more than 95% by March 2006

Improved staff turnover from 47% in years 2003-04 to 13.8% by the end of the last quarter More visibility of SALGA in IGR structures and much improved relations with stakeholders Comprehensive involvement with Cross Boundary Municipalities Bill and Constitutional 12th

Amendment Bill SALGA won some gains on behalf of municipalities for the replacement of RSC levies Ruling on dispute with unions with regard to Micro Lending deductions from payroll and

Accrued Leave were in favour of SALGA Performance Management System toolkit was launched and workshops held in seven

provinces Guidelines on HIV and AIDS in the workplace have been completed and signed by the CEO,

the launch is expected after LG elections SALGA the twinning arrangements and exchanging of best practices (eg. Johannesburg

twinning with three rural municipalities)

HIGHLIGHT SUCCESSES SALGA adopted a new strategy and new systems SALGA’s financial statements were consolidated with all its provincial structures for the first time in 2004/05 financial

statements The fully independent Audit Committee is fully functional Macro and Micro risk assessment was completed Internal Auditors developed their audit plans informed by risk assessment The CEO and her Executive Management Team visited all provinces meeting the MMs and CFOs of municipalities to

assess, amongst others: The state of affairs in municipalities SALGA’s provincial capacity to meet municipal needs Areas of immediate intervention by the CEO Cooperation with sector departments provincially and nationally

SALGA signed MOU its sister organisation in Mali Reversed all risky contracts SALGA has made some strides in finalising a single Pension Fund in Local Government SALGA was hailed for sensitising the public about the importance of Local Government institution through radio and TV

adverts in a process leading to Local Government elections

HIGHLIGHT CHALLENGES

Lack of International Relations Strategy Listing of SALGA as schedule 3A public entity, as it limits alternative revenue

generation for long term sustainability of the organisation Lack of integrated systems between SALGA national and provincial offices Poor response from donor community Disclaimer of audit opinion for 2004/05 financial year

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES

PROJECTS PERFORMANCE INDICATOR PROGRESS IN Q 1 PROGRESS IN Q 2

Risk Management Strategy -Risk assessment-Tree year rolling plan-One year audit plan

-Internal auditors (Gobodo are currently assisting management in developing risk management strategy-A risk assessment plan was discussed and approved by the Audit Committee

-Macro and micro risk assessment is complete and approved by the Audit Committee-Internal Audit plans informed by the risk assessment are complete

Audit Committee - New Audit Committee is appointed and fully functional

-The former, Audit Committee’s term expired in June-The new Audit Committee has been appointed with 3 Chartered Accountants, CFO of City of JHB and an Advocate

- The new Audit Committee is fully operational

Alternative Revenue Strategy - Alternative Revenue Strategy documented and implemented

- Draft Alternative Revenue strategy is currently being discussed by SALGA internal structures

- The finalisation of the document is stalemated by the listing of SALGA as schedule 3A public entity

CEO Provincial visits - Meet the key local government stakeholders in each province- Meet Municipal Managers and CFO’s

-Visited eThekwini Metro-Visited Nelson Mandela Metro-Visited Mpumalanga; Limpopo and Free State provinces

-Visited Eastern Cape; KZN; North West; Western Cape; Northern Cape & Gauteng and met with Municipal Managers and CFO’s-A report was developed and tabled to SALGA NEC

STRATEGIC OBJECTIVE: INCREASE SALGA’S EFFECTIVENESS AND EFFICIENCY TO ENHANCE SUSTAINABILITY OF OLG AND QUALITY OF SERVICE TO ITS MEMBERS


PROJECTS PERFORMANCE INDICATOR

PROGRESS IN Q 1 PROGRESS IN Q 2

Membership Levy Formula - Revised membership formula implemented

- An interim membership has been implemented, which improved membership levies payment from about 40% in 2004/05 financial year to about 85% in the first quarter of 2005/06Consultations are currently taking place for a permanent formula

- Membership levies collection is currently at 95% compared to 40% in the whole of 2004/05- Consultations are still underway for new and permanent formula

Protect SALGA from risky contracts

- SALGA to concentrate on delivering on its mandate

-SALGA performed a forensic audit to identify a forensic audit to identify all risky contracts-Most of the identified risky contracts biding SALGA for the lengthy of time were cancelled ad others are in the process of being cancelled

- Legal action against identified perpetrators is currently underway

Staff salary Benchmarking - Salary framework is in place -Salary benchmarking exercise has been completed and is due to be fully implemented by the end of November 2005-Negotiations with effected staff members is currently underway

- Salary benchmarking exercise was complemented in November 2005 as planned


Intranet & video conferencing facilities

- All SALGA offices are linked together and are effectively communicating

-Ensuring that equipment in different offices is compatible-Delays were experienced as result of SITA processes

-All base equipment has been procured and installed in all provinces-Intranet is being installed and will be live before end of March

Staff Rationalisation -National Office staff is cut to 60 and that more capacity is deployed to provinces

- Management levels were cut from 6 to 3 - 15 Staff deployed to provisional offices of SALGA-Provincial offices are currently appointing suitable staff to meet the needs of the provinces-Interns are currently being employed to increase capacity-Provincial offices are currently moving to new offices ( Western Cape and North West have completed the process)-SALGA NEC adopted a resolution that SALGA must utilise the services of municipal staff members more and this is being formalised

- Recruitment is being finalised in all provinces



Improve institutional memory - Properly structured registry is in place and properly operational

-- Pilot project of functional registry is currently being undertaken

-Pilot project of functional registry has been completed-A service provider has been appointed and already started

Associated Membership - Associate Members are part of SALGA structures as stipulated by the Constitution

-An Associate Membership criteria has been developed and is awaiting NEC approval

- NEC approved the Associate Membership criteria and applications are being invited

Due Diligence Audits - To gauge the control environment of the organisation

-- Western Cape; Gauteng; KZN due diligence audits were completed in mid August 2005, whilst the national office due diligence was completed at the beginning of September 2005

-- Recommendations of Due Diligence audit are continuously being implemented

Financial Reporting - Financial statements are developed timeously and submitted in two months after year end

- Financial statements are 80% complete due to consolidation of financial statements for national and provincial offices for the first time

-Consolidated financial statements were completed and submitted to the Auditor General.-A final audit report was issued with a disclaimer of audit opinion due to historical problems and the consolidation of provincial financial statements


STARTEGIC OBJECTIVE: TO FOSTER POLICY, STRATEGY AND OPERATIONAL INTEGRATION OF SALGA


Integration of SALGA as a unitary structure

- SALGA operates as one organisation

-All provincial associations are now integrated into SALGA-All Memorandums were signed-The process of transferring assets, staff, and harmonisation of systems and policies are 90% complete

- Transferring of assets is 95% complete and the challenge is transferring fixed property

Governance Structures - Governance structures are properly constituted and properly operating

-All SALGA structures are properly constituted as per its constitution-All meetings have taken place as scheduled except the NEC meeting of September 2005-National Members Assembly took place on August 5, 2005 as scheduled-All provincial governance structures are properly constituted and are properly functioning

- All meetings were held as scheduled during the quarter, except the regular NEC meetings due to Local Government Elections



Strategic Planning - Strategy is documented, organisational structure linked and resources allocated (budget)

- Strategic business plan was developed and approved by SALGA NEC and national Members Assembly-Organisational structure linked to strategy was completed and is in the process of being filled -Budget was approved timeously

-Review of strategy session as a result of CEO’s provincial visits has been done

Performance Management System

- Performance Management System is fully operational

- Scorecards, Performance Agreements and Personal Development Plants for CEO; Deputy CEOs; Executive Directors and Heads of Units are 90% complete

- Performance Management System documents have been completed and the CEO’s scorecard is awaiting the Chairperson’s signature

Performance Audit - Performance audit report - The Auditor General has completed the field work and we are awaiting a report

- Performance audit report has been finalised and discussed by the audit committee and the Auditor General will publish it in due course


STRATEGIC OBJECTIVE: TO FACILITATE THE IMPLEMENTATION OF A LABOUR AND HUMAN RESOURCES DISPENSATION IN MUNICIPALITIES THAT ENHANCES SERVICE DELIVERY.


Conditions of Service Uniform conditions of service have been implemented throughout the sector

Concluded that better benefits will terminate on 31 December 2005Discussions will continue in Divisional Bargaining on outstanding matters

•Circular clarifying the phasing out of better on benefits was issued 9 November 2005 to all municipalities to ensure uniformity and compliance•Divisional bargaining on outstanding issues has commenced

Pension Fund.Pension Fund

Uniform/single Pension Fund established for the sector.

A meeting will be held with Municipal Managers of metros and SACN on 26 October 2005 to discuss the way forward.

•A meeting was held with MM’s and CFO’s of metros during October 2005.•Task team was established to advise the broader meeting on how to take matters forward.•An appointment of the Administrator of the new fund was made•The new administrator and the Interim Principal Officer have commenced with the broad consultation




Medical Aid Restructuring Uniform/single Medical Aid implemented for the whole sector.

Implementation and compliance issues discussed. Window period begins 01 November 2005 – 31 December 2005. Managing the costs of the agreement e.g. the rising costs for municipalities. Medical Aid dependents have to be defined and limited.

Agreement signed by parties during November 2005. Accredited medical schemes reduced to six (6).Second round of accreditation to commence by March 2006. SALGA is proposing a 20 000 threshold for the next phase – moving from the current 14 000 threshold. By this we hope to reduce accredited schemes to three (3).

Salary and Wage Negotiations. Multi-year agreement reached. Unions have suspended the strike action – rejected mediator’s proposalFocus on damage assessment and corrective action subsequent to the strike.

Wage negotiation timetable was agreed to at the Bargaining Council during December 2005 Unions have already tabled their demands and negotiations have commenced.



Sector Disputes Resolution of all sector disputes. Terms of Reference for a Technical Advisory Committee have been developed and it is being set up to discuss the legal position prior to requesting lawyers to deal with issues

The following disputes were finalised: Micro lending (issue in dispute: whether deductions of micro loans from the payroll is an organisational right) – ruling in favour of SALGA (micro loan from the payroll is not an organisational right). Accrued leave (issue in dispute: interpretation and application of collective agreement; rate of pay for accrued leave) – ruling in favour of SALGA (rate of pay for accrued leave is on the basis of basic salary; excluding benefits). Appointment of non-Section 57 employees on fixed term contracts (the matter has been referred to Divisional Bargaining Councils)Interpretation and application of a collective agreement (issue in dispute: appointment of presiding officers) – ruling in favour of SALGA (employer to appoint presiding officer at own discretion).



Job Evaluation Uniform Job Evaluation system implemented in the sector.

-Completion of agreement – 31 December 2005

-No agreement reached on amendments regarding implementation date for new pay curves, the exclusion of Section 57 managers on the agreement and the categorisation of municipalities. Parties are resuming negotiations soon. Dispute on the issue of Section 57 manager’s exclusion has been declared and the Bargaining Council is to advise parties on future date to resolve the matter.

DWAF Transfers Transfer of employees completed by 1 April 2006. Transfer is done in terms of the law (as stipulated in the proposed MoA) and financial burden has been averted by municipalities

Cut-off date for transfers – 01 April 2006. Memorandum of agreement to be signed before 31 October 2005.

-Memorandum of agreement wasdrafted by SALGA and DWAFOctober 2005.-MoA submitted to DWAF tradeunions for sign off – failed toreach agreement.-Negotiations continue withunions in order to ensure sign off.-Proposed MoA submitted to theNEC of SALGA for comments andmandate




EDI Restructuring -Transfer of staff done in

accordance with law

(collective agreement on

transfer signed).

-Bargaining structure for

REDs decided.

-Inputs are being made intoElectricity Bill-Decision still pending on bargaining structures-Draft is complete and is awaitingsign-off (January 2006

-Proposed transfer agreementbefore NEC – December 2005.-Matter not finalised. To befinalised during NEC of February2006.-Negotiation on future bargainingstructures for REDs still inprogress. Agreement expected onor before end of March 2006.-The shift of the sign-off date isinformed by the process ofcontinued consultation within thestructures to the parties of the

EDI restructuring process.



Review of SALGBC’s constitution Complete constitution (to enhance and speed up decision making in the Council

-- -Parties had agreed on almost all items in the constitution, with the exception of the exclusion of Section 57 Managers and other managers from the bargaining unit. The decision making powers i.e. simple majority vs two-thirds majority. Parties are perusing an option of an advisory arbitration – finalisation expected after advisory award.

Integration with the Public Sector. Harmonisation of Conditions of Service across the Public Services.

- -SALGA task team comprising representatives from IGR and Municipal Labour and HR has been established. -Timetable for the G&A Cluster meeting has been received. -Task team consulting with municipalities on various permutations regarding the process.



Performance Management Enhanced PMS capacity in municipalities

-PMS Toolkit (Volume 1) was completed in October. -PMS Toolkit launched in KZN on 18 November 2005. -Provincial workshops conducted to explain the content and application – Nov –Dec 2005.-Free State and Limpopo were concluded during January 2006

-It is expected that municipalities with a continued need for PMS support will be identified and support interventions coordinated

– March 2006.



HIV and AIDS in the Municipal Workplace.

-Municipalities empowered to deal with, and mitigate the impact of HIV and AIDS on service delivery in the municipal workplace.

-Established a HIV and AIDS task team.-Consulted with relevant stakeholders -Workshop minimum standards to be contained in guideline document.Developed guideline document on dealing with HIV and AIDS in the workplace.Obtain administrative and political approval.

-Guidelines had been signed off by the CEO – October 2005.-Arrangement concluded with DPLG and SACN to jointly print guidelines -Launch expected after March 2006 (after elections).-Provincial workshops to commence subsequent to launch.

Consolidation of the Municipal HR and Payroll System.

Uniform and consolidated HR and Payroll System in the LG Sector.

-Conducted a survey.-Consult with stakeholders -Established task team.-Conceptualised the way forward – project.

Surveyed industry on existing types of payrolls during October 2005 Task team (comprising SALGA, DPLG, Metro, District and Local Municipalities) expected to hold the first meeting during March 2006.Task Team to invite experts to provide input on preferred approach – i.e. single payroll system, integration of systems, etc.

Section 57 Pay Scales. Pay Scales framework published by Minister

Conducted a survey Finalised categorisation of municipalities (10 categories Developed wage curves across 10 categories for MMs and direct reports.

Categorisation of municipalities: SALGA has withdrawn its intention to negotiate with labour on this matter Proposal has been prepared for the NEC to lobby DPLG for a legislative process The proposed pay scales are also expected to be submitted at the February 2006 NEC.

HR Legal Compliance. Legal compliance with all HR-related legislation.

-Conducted a survey. Identification of gaps.-Conceptualise HR Policy and Procedure Manual.

-Task team (comprising SALGA, Metro, District and Local -Municipalities) expected to hold the first meeting during March 2006

STRATEGIC OBJECTIVE: PROMOTE THE CREDIBILITY AND RELEVANCE OF THE LOCAL GOVERNMENT AGENDA IN NATIONAL POLICY AND PROGRAMMES


Municipalities Revenue Sources SALGA position paper on RSC levy replacement alternatives by 30 September 20

Finance Working Group meeting for the finalisation of the position paper to take place during the second week of October 2005 Draft position paper on RSC Levies has been developed

-Position paper on RSC Levies has been completed and submission was made to National Treasury -SALGA’s position was accepted and confirmed in the budget speech

Assignment of functions and funding

Report on unfunded mandate developed by 31 October 2005

-Research underway and draft report to be presented to the Finance Working Group for finalization in December 2005

-The assignment is still ongoing as the delay is caused by municipalities submitting irrelevant information-Developed a best practice document on identifying and handling of unfunded mandate-Developed best practice document on municipal debt recovery or reduction

Auditor General reports Provide municipalities and SALGA NEC with analysis of audit reports of all municipalities

-- Compiled an analysis of all municipal audit reports for 2005/06




Intergovernmental Relations Consistent participation and representation at IGR forums

Have a 100% attendance record at relevant national IGR forums

-100% attendance record at relevant IGR forums

Interaction with the National Assembly and NCOP

Attendance and participation at meetings and workshops

-Regular attendance of relevant Portfolio and Select Committee meetings. Participated in preparations for the NCOP Limpopo “Taking Parliament to the people” programme

-Regular attendance of relevant Portfolio and Select Committee meetings. -Participated at the NCOP “Taking Parliament to the People: sitting in Limpopo

Local Government Experts database

Developed database of local government experts to provide technical support

-Different functional areas identified for specific technical teams and proposed members identified

-Technical teams established and adopted by Governance and IGR working group



Housing Municipalities delivery of housing is properly supported

-Finalised the Social Housing Toolkit -Municipal Accreditation Process Report compiled -Participated at the Housing HODs meetings -Participated at the Housing MINMEC -Condcuted a Joint Housing / SALGA MINMEC -Participated in the National Housing Indaba for the signing of the Housing Social Compact

-Condcuted a Joint Housing /

SALGA MINMEC

-Issued a moratorium on sale of municipal land -Made inputs to the Housing Sector Planning Framework -Made inputs to Housing Municipal Accreditation Framework -Made inputs to the Discounted Housing Subsidy Benefit Scheme-Made inputs to the Framework for the provision of Emergency Housing in the areas of distress

Electricity Municipalities are properly supported through electricity restructuring

-Agreement on the establishment of the 6 REDs Participated in the REDS-Hosted the Information and-Technical Workshops on the electricity restructuring-Participation at the EDI Holdings Sectoral workshops -Participation at the Association of Municipal Electricity Undertakings

Participated in the REDS Modelling Forum



Energy Provision of Municipal services is enhanced

Participate in finalising the FBE Policy

-Incorporated the independent power producers to supply energy-Assisted with the Update of indigence policy -Monitored the implementation of indigence policy with regard to FBE

Environment Provision of Municipal services is enhanced

-Preparations for the participation in the CSD 14 -Participation in the development of the National Strategy for Sustainable Development-Conducted workshops on the Bio-diversity Act and Action Plan -Participated in the accreditation of municipalities with the Blue-Flag status

-Undertook trip to Canada to attend the World Leaders Summit and Congress of Parties on Climate Change-Attended the Climate Change Conference in Johannesburg -Partnered with the Global Community Initiative to roll out training on sustainable development initiatives and the Earth-Cat Programme -Partnered with the Joint Education Trust in conducting workshops on the Environment Education Learnership

Waste Management Provision of Municipal services is enhanced

-Participating in the development of the Waste Collection Standards -Participated in the Cleanest Town Competition

-



Local Economic Development Provision of Municipal services is enhanced

-Developed a CD on Local Economic Development -Engaged with DPLG on the preparations for the LED Road-shows -Participated in the development of Policy Guidelines for the Implementation of LEDs

-Made inputs on the study by the World Bank on Pro-Poor LED Strategies -Convened provincial LED Workshops -Participated in the Information Sharing workshop on 2010 World Cup

Tourism Provision of Municipal services is enhanced

-Participated at MIPTECH and Tourism MINMEC -Participated at the Tourism Transformation Working Group Participated at the Tourism CEOs Forum -Participated in the Tourism month activities -Participated in the Tourism Conference -Engaged in the Training of Youth in Tourism programmes

-Participated in the SA Cities Network Seminar on World Cup 2010 preparations -Participated in the National 2010 World Cup Conference -Produced a concept strategy on the participation of youth in tourism -Made inputs to Municipal tourism strategies




Water Provision of Municipal services is enhanced

-Engaged in Water Services Transfers -Participation at the Water Indaba -Engagement with DWAF on Water Policy issues -Participation in the National Institutional Reform Task Team -Participation in the National Sanitation Task Team -Conducted road-shows on the state of DWAF asset transfers -Developed a concept paper on the establishment of Water Services Provider Network

-Launched the 1st Annual Benchmarking Initiative with DWARF and WRC-Organised a national s78 Learning Conference where municipalities shared their experiences on s78 approaches and benefits




Development Planning Provision of Municipal services is enhanced

IDP Hearing Report compiled Developed and launched the Community Based Planning methodology and resource guides

Transport Provision of Municipal services is enhanced

Preparations for joint Public Transport Workshop with Transport Ministry and Mayors Indaba on Transport

Participated in the Public Transport Month

EPWP Support Municipal Infrastructure Development and Public Works

Made inputs on the migration of the Electrification Fund to MIG


STRATEGIC OBJECTIVE: PROMOTE THE ENHANCEMENT AND MOBILISATION OF EXISTING CAPACITY WITHIN THE LOCAL GOVERNMENT SPHERE TO SHARE RESPONSIBILITY FOR ITS OWN DEVELOPMENT


Municipal Budget Week Support Municipal Budget Cycle through knowledge sharing by 31

July

Workshops held between 16 July and 14 August throughout all provinces with municipalities presenting their budgets and

budgeting processes

-

Service delivery database Fully developed database Prepared questionnaire and

information gathering -



50/50 Campaign -A national summit be held and resolutions be taken to provinces through summits or workshops-Building the capacity of municipalities and communities on the 50/50 campaign-Encouraged political parties to adopt the 50/50 policy.The audit and administrative leadership in the campaign

-National Summit held 4 provinces held provincial summits-The development of a gender policy by eThekwini and uMsunduzi municipality in partnership with a civil society organisation -The launch of the Free State Voter Education in partnership with civil society organisations-Written responses have been received from five political parties. --The LG audit will take place after the LG elections and the audit on the implementation of the equity plans

-A 50/50 Campaign Booklet was developed and circulated to all political parties in all provinces in SALGA Offices and municipalities -The Women in Local Government catalogue was developed and distributed to all political parties in all provinces-Letters sent to all political parties to encourage them to ensure equal gender representation on party candidate lists -SALGA provincial offices publicly demonstrated their support for the 16 Day Campaign, Day of the Disabled and World Aids Day (Banners were displayed on public notice boards) -Developed, in partnership with DWAF and DPLG Gender Frequently asked questions

STRATEGIC OBJECTIVE: TO MAINSTREAM ISSUES OF GENDER, YOUTH, PEOPLE AND HIV/AIDS AS CENTRAL CROSS-CUTTING ISSUES IN LOCAL GOVERNMENT DEVELOPMENTAL AGENDA



Developing a municipal HIV and Aids audit

-Service provider identified -Questionnaire developed-Questionares sent to municipalities-Responses analysed -Desktop research done-Report to be submitted to SALGA

-Service Provider appointed-Questionnaire developed and sent

-Questionnaires were analysed and draft report was produced-Site visits to municipalities to verify and capture good practices

Formulating Youth Development Strategy for Local Government

Service provider identifiedQuestionnaire developedQuestionnaires sent to municipalities responses analysed desktop research done-Draft report to be submitted to SALGA Consultative workshop to be held

-Service provider was appointed-Research report was completed -Youth Indaba held to consult with municipalities and civil society organisations on the Youth Development Programmes for LG -Youth Draft Strategy developed and circulated to all government departments (national -Draft Youth Development Strategy circulated to all municipalities for input

-


STRATEGIC OBJECTIVE: TO FACILITATE AND SUPPORT THE CAPACITY OF MEMBER MUNICIPALITIES LOCALLY AND THROUGHOUT THE CONTINENTAL AND INTERNATIONAL EXCHANGES AND PEER LEARNING IN KEY AREAS


Local Learning Network (LLN) Plenary meeting

At least one plenary meeting per quarter

-Held in Matjhabeng Local Municipality in August 2005

-

Steering Committee Meetings

Bi - monthly -Held one District Learning Network meeting in August 200

-

KSP Assessment Assessment report - Ongoing -



LLN Task Teams Five Task Teams Formed in August 2005 -

Peer Review Reports Adoption of Peer Review Reports -Discussions took place at Sedibeng DM Mayoral Committee Meeting.-Discussions took place at Mogale City LM Mayoral Committee Meeting

-

Community Based Planning Community Based Planning commenced

-Community Based Planning Lesson Learning Workshop conducted

-


STRATEGIC OBJECTIVE: TO FACILITATE AND SUPPORT THE CAPACITY BUILDING OF MEMBER MUNICIPALITIES LOCALLY AND THROUGH CONTINENTAL AND INTERNATIONAL EXCHANGES AND PEER LEARNING IN KEY AREAS AND QUALITY OF SERVICES TO ITS MEMBERSPROJECTS PERFORMANCE INDICATOR PROGRESS IN Q 1 PROGRESS IN Q 2

LGSETA Activities Amendment of the ConstitutionWSP submissionDeployment of SALGA representatives to LGSETA CommitteeSSP ReviewMeeting with the Minister of Labour

Comments submitted80% submission, closed on the 30/09Work in progressProvincial Reviews doneDone quarterly

-Constitution was amended-Deployment of SALGA representatives to LGSETA-Committees was finalised -Appointment of Provincial managers(-Limpopo/ Mpumalanga and Gauteng/ NW) were made-Assessment of the CEO Done quarterly

SALA IDA Provincial preparatory visitsSigning of MOU with SALA IDALaunch of the SALA IDA Study TourStudy Tour

DoneDoneDone

First phase of the study tour was undertaken



EPWP Training of officials on managing labour intensive projects

Continuous -NQF-L5 completed-NQF-L7 Recruitment in progress

Councillor Development Programme

-Graduation ceremonies in 8 provinces -KZN graduation

-Done

-Done

-Consultative process (Speakers fora, HRMWG, etc.)-Development of Cllr induction Concept paper.-Development of funding proposal-Development of Induction Material



Executive Leadership Development Programme (LOGOLA)

-Funding Proposal developed -Registration of qualification (SAQA process)-Circulated for public comment

-Ongoing-Draft in place

-Work in progress

-Awaiting response -Registration of NQF-L5 Qualification-Busy developing implementation strategy

IDASA/UN HABITAT Preparatory meetings for the high level Training of Trainers for the sector

-Work in progress -



CIFAL Skills Development/ Experiential learning exchange program

- MoA drafted by SALGA, awaiting comments from partners

Language Policy -Consultative process (Pan- Salb, Dept. of Arts/Culture)-Draft policy for internal and external audience

- -Done

-Work in progress


STRATEGIC OBJECTIVE: TO ENSURE THAT SALGA ENHANCES AND MAINTAINS A HIGH PROFILE POSITION LOCALLY, REGIONALLY AND INTERNATIONALLY


Establish a fully-fledged SALGA’s international relations unit with dedicated resources to support SALGA’s mission

Drawing up an international relations strategy that will guide SALGA’s priorities, interventions and operations in the field.

-In the process of being compiled. - Draft is in place

Signed MOU with LGIB in June 2005 and conducted a study tour to LGIB to share strategy development in July 2005.Conducted a Municipal Audit to scan status quo on Municipal International Relations practices Information Dissemination Strategy workshop attended in UK at CLGF

Secured funding / budget to carry joint activities on IR developmentAudit Questionnaire sent to MunicipalitiesStrategic sharing of methods to use when disseminating info on CLGF programmes and commonwealth countries

-Partnership started in June 2005 and to end in Dec 2006 -Received responses and appointed consultant to analyse and submit a report on findings to SALGA-A follow-up workshop in Nov 2005 to apply and practise shared strategy to see if it works in SA

-Audit Report available

Conducted a survey to identify African Local Government Associations that can associate with SALGA on matters of Local Government Development

SALGA undertook a Study tour to Ghana, Mali and Kenya

-Completed study tour and identified areas of co-operation in three African local Government Associations (ALGEK, AMM, NALAG)

- AMM signed MOU with SALGA



Engaged in ICT workshops from Cape Town to Senegal – Dakar.

SALGA to consult SA Municipalities and assess the status quo of e-services, ICT workshop planned for 27 and 28 October 2005.

-SALGA to collate information on SA position and prepare a fundraising proposal to Global Solidarity Funding

-ICT workshop took place and South African position on ICT development shared with global players

Promotion of partnerships with Hibiscus Municipality, SAEMA – Ashanti in Ghana

Partnership proposal facilitated with Hibiscus Municipality

-Partnership proposal acceded to -


STRATEGIC OBJECTIVE: PROMOTE A LAWFUL GOVERNANCE SYSTEM WHICH WILL ENABLE SERVICE DELIVERY IN A DEVELOPMENTAL STATE


Municipal Office Bearers Handbook Fully developed Municipal Office Bearers Handbook

-First draft prepared and approved by NEC for further development

-Second draft prepared to be considered by the Governance and IGR Working Group

Standard by-laws Implementation of by-laws -Draft by-laws prepared

Project Consolidate Organised Local Government participation in Project Consolidate

-All SALGA provincial offices involved in different structures of Project Consolidate at provincial level

-Continuous involvement with structures of Project Consolidate



Councillor Support Full Review of the current system of councillor supportDeveloped SALGA views on 2005 Upper Limits Notice

-Fully developed SALGA position-Comprehensive comments on 2005 Notice prepared and submitted to DPLG

-2004/05 Notice published and forwarded to all municipalities with guidelines for adoption

Property Rates Act Implementation of the Act Participated in the development of Valuation Guidelines and preparations for provincial workshops

Full SALGA participation at the provincial workshops organised by DPLG

Intergovernmental Relations Framework Act

Implementation of the Act Made input in the development of an implementation plan



Electricity Regulation Bill SALGA participation during the parliamentary legislative process

Developed comprehensive comments on the Bill

-Full SALGA participation at both Portfolio Committee and Select Committee deliberations on the Bill.

Governance and Legal Support Development of legal opinions. Governance advice to municipalities

Regular governance and legal advice to municipalities

-Continuous governance and legal advice to municipalities-Assisted Inkwanca Municipality to put proper community participation structures in place

Cross Boundary Municipalities Bill and Constitutional 12th Amendment Bill

SALGA participates to ensure interests of local government are taken into consideration in legislative processess

- -Full SALGA participation at both Provincial and National Legislature deliberations on the Bills



Traditional Leadership Continuous interaction with Traditional Leadership

- -Participated at the National Traditional Leadership Conference -Established relationships with Traditional Leadership in North West and Limpopo

Support MFMA Implementation Develop inputs in terms of section 42(2)

- -Drafted comments on Eskom’s price increase and revenue requirement consultation

Public Private Partnerships (PPPs) Proper and effective implementation of PPPs

- -Establishment of Technical Task Team with National Treasury and DPLG to facilitate PPPs in LG


FINANCIAL REVIEW

REVENUE SALGA’s budget for 2005/06 financial year totals to R161 934 000 SALGA derives its revenue mainly from membership levies paid by municipalities Percentage distribution of budgeted income

Membership levies 49% Donor Funding 33% Grants from DPLG 11% Sponsorship 0.4% Other (interest, etc) 0.6%

FINANCIAL REVIEW

MEMBERSHIP LEVIES (UP TO MARCH 2006)

SUMMARY MEMBERSHIP LEVY 2005/2006 ONLY

PROVINCEINVOICED 2005/2006

RECEIPTED 2005/2006

BALANCE % PAID

WESTERN CAPE 13,203,738.85 13,200,647.90 3,090.59 99.98%

NORTHERN CAPE 2,605,297.51 2,142, 531.29 462,766.22 82.24%

EASTERN CAPE 14,433,903.42 7,966,873.01 6,467,030.41 55.20%

FREE STATE 6,584,683.44 5,649,343.68 935,339 85.80%

KWAZULU NATAL 15,349,127.36 12,873,393.91 2,475,733.45 83.87%

MPUMALANGA** 5,059,070.06 5,699,575.55 - 640,505.49 112.66%

LIMPOPO 4,630,563.18 4,164,268.81 466,294.37 89.93%

NORTH WEST** 4,350,299.52 5,171,564.07 -821,264.55 118.88%

GAUTENG 25,529,599.41 47,918,270.25 22,388,670 187.70%

91,746,282.75 104, 786, 468.47 -13,040,185.72

FINANCIAL REVIEW

SUMMARY OF INCOME AGAINST BUDGET

INCOME BUDGETAnnualR’000

ACTUALJuly-Sept

R’000

ACTUALOct-Dec

R’000

ACTUALJan-Feb

R’000

BALANCER’000

% of actual income received against

budgeted

Grant from DPLG 18385 6 500 - 7,924 3,961 78

Levies 79356 67 583 7 719 29,484 (25,430) 132

Donor Funding 55000 513 5 000 1,024 48,463 12

Sponsorship 50 0 0 0 50 0

Other 9143 185 360 106 8 492 7

Total Income 161 934 74 781 13 079 38,538 35,536

FINANCIAL REVIEW

PERCENTAGE DISTRIBUTION OF ACTUAL INCOME

Membership levies 132% Donor Funding 12% Grants from DPLG 78% Sponsorship 0% Other (interest, etc) 7%

FINANCIAL REVIEW

SUMMARY OF EXPENDITURE AGAINST BUDGET EXPENDITURE BUDGET

AnnualR’000

ACTUALJuly-Sept

R’000

ACTUALOct-Dec

R’000

ACTUALJan-Feb

R’000

BALANCER’000

% of actual expenditure against

budget

Personnel 49390 11912 13 574 9,486 23 904 71

Administration 12487 2531 1183 2,009 8773 46

Programme cost (Provinces)

66959 7328 3 695 3,114 55 936 21

Capital Expenditure 8 724 858 1 449 444 6 418 32

Programme Costs (National)

24 374 5609 2 400 4,896 16 365 53

Total Expenditure 161 934 28 237 22 301 19,949 91 447 44

FINANCIAL REVIEW

PROGRAMME COSTS CONSISTS MAINLY OF THE FOLLOWING:

Budget week forums CEO’s provincial visits Development of RSC levy position paper Research on unfunded mandates 50/50 gender campaign Participation in IGR Structures, NCOP, etc.

FINANCIAL REVIEW

EXPENDITURE Percentage distribution of budgeted income

Budgeted Actual Personnel Costs 31% 71% Administrative Costs 8% 46% Capital Costs 6% 21% Programme Costs (National) 20% 32% Programme Costs (Provincial) 36% 53%

CONCLUSION

Undoubtedly under the new leadership the confidence of our members has been further strengthened, this is demonstrated by the membership fees recovery rate of 132% from just 40% in the previous financial year; the frequency of EXCO and working group and the increase of municipal members visiting our resource centre.

All the DCEO in provinces have now been appointed, and capacity (both human and financial resources) has been improved and will continue to be improved at provincial level as we realise that this is where SALGA competitive advantage lies

SALGA’s checks and balance structures as well systems and controls are in place There is a comprehensive plan in place to turn the disclaimer of audit opinion around All efforts are employed to convince the Minister of Finance to de-list or favourably list SALGA

in PFMA, as we believe that long term sustainability of SALGA depends on this matter Attendance by SALGA in IGR structures has significantly improved Relations with stakeholders has significantly improves

Thank You

Documents

BUDGET REVIEW 2005 – 06 FINANCIAL YEAR