Salga Annual Report - Amazon Web Servicespmg-assets.s3-website-eu-west-1.amazonaws.com/130918... · 2015-01-27 · SALGA Annual Report | 2011/12 01 Contents CHAPTER 1: INTRODUCTION

Annual Report2011 / 2012

SALGASouth African Local Government Association

01SALGA Annual Report | 2011/12

Contents

CHAPTER 1: INTRODUCTION

Glossary of terms 21.1 Foreword by Chairperson of SALGA 41.2 Overview from the Chief Executive Offi cer 61.3 Financial results overview 91.4 SALGA Mandate 101.5 SALGA revised fi ve-year strategy 2007-2012 111.6 Organisational structure 161.7 SALGA leadership 17

CHAPTER 2: ORGANISATIONAL PERFORMANCE

2.1 Introduction 242.2 Overview of performance against pre-

determined objectives for period 1 April 2011 - 31 March 2012

27

2.3 Performance information 312.3.1 SALGA Change Agenda:

Achievements and challenges 362.3.2 10-Priority Outcomes:

Achievements and challenges:Priority Objective 1 41Priority Objective 2 43Priority Objective 3 52Priority Objective 4 64Priority Objective 5 73Priority Objective 6 77Priority Objective 7 82Priority Objective 8 86Priority Objective 9 103Priority Objective 10 104

CHAPTER 3: FINANCIAL OVERVIEW AND ANNUAL FINANCIAL STATEMENTS

3.1 Report of the Chief Finance Offi cer 1083.2 Report of the Audit Committee 1213.3 Report of the Auditor General 1243.4 Report of the Accounting Authority 1283.5 Financial statement 1363.6 Statements of gifts, donations, and sponsorships 2053.7 Performance information tables 211

CHAPTER 4: CORPORATE GOVERNANCE AND HUMAN RESOURCE OVERSIGHT REPORT

4.1 Introduction 2844.2 Business planning and performance information 2854.3 SALGA’s legislative compliance framework 2884.4 Budgeting policy 2904.5 Audit Committee 2944.6 Internal Audit 2954.7 Risk Management 2964.8 Individual performance management 2974.9 SALGA governance structures 3054.10 HR oversight report 3244.11 Stakeholder relations 348

CHAPTER 5: TRIPLE BOTTOM LINE

5.1 Introduction 3525.2 SALGA National Offi ce 3535.3 SALGA Provincial Offi ces 3555.4 Mandela Day 2011 356

02 SALGA Annual Report | 2011/12

BALA Botswana Association of Local Authorities

BREV Business Retention and Expansion Visitation

CMRA Centre for Municipal Research and Advice

CoGTA Department: Cooperative Governance and Traditional Affairs

CSO Civil Society Organisations

ELMDP Executive Leadership Municipal Development Programme

EPWP Expanded Public Works Programme

GADDEPA Government, Advocacy, and Decentralised Development Programme for Africa

GIZ German Technical

IGR Intergovernmental Relations

ISAD Information Society and Development

LED Local Economic Development

LGSETA Local Government Sector Education and Training Authority

LGTAS Local Government Turn Around Strategy

LLF Local Labour Forum

MDGs Millennium Development Goals

MOC Memorandum of Cooperation

MPAC Municipal Public Accounts Committee

MPRA Municipal Property Rates Acts

MRHG Municipal Rental Housing Guide

MTSF Medium Term Strategic Framework

PEPFAR President’s Emergency Plan for AIDS Relief

SWC SALGA Women’s Commission

UCLGA United Cities and Local Governments of Africa

WILGS Women in Local Government Summit

Glossary of Terms


INTRODUCTION

This chapter sets out a general overview of the organisation by SALGA’s Chairperson, Chief Executive Offi cer and Chief Financial Offi cer. It also outlines SALGA’s mandate, strategy for the period 2007-2012 and organisational and leadership structure.

Chapter 1


I am pleased to present my fi rst annual report as the Chairperson of SALGA, elected into offi ce in September 2011. This report is produced in accordance with the Constitution of the Republic of South Africa requiring all Government Departments and entities to account for the activities of the year in the form of an annual report. SALGA, as a public entity, hereby provides its annual fi nancial statements and organizational report, and complies with the South African, and its Organisational constitution, to be transparent and accountable in its activities.

This report provides a summary of the many activities carried out by SALGA for the period April 2011 – March 2012. The annual report also provides background to the governance of the organisation, its future operations and the role we have played as an organisation in our role as organised local government.

2011/2012 was a transitional year for local government as we saw the largest political turnover in the sector since the advent of the democratic local government sphere. The 18 of May saw 60% of the local government councillors not returning and the loss of long serving stalwarts in the sector. These elections meant that SALGA would have to elect new leadership both provincially and nationally, which led to the convening of the SALGA national and provincial conferences, held from 30 August to 01 September 2011.

In February of 2012, we adopted a new fi ve year strategic plan for the organisation, re-aligning the organisation to effectively deliver on its mandate as the voice of local government.

The sector also experienced a number of draw backs, during this transition period, as we saw a number of violent protests sprout around the country. This led to SALGA adamantly pushing for government to take the matter of risk cover for Councillor seriously and handle the matter with urgency. We will continue to urge that the risk that councillors are exposed to be treated as a matter of priority and not be trivialised and lost in the politics of the day.

Another highlight during this year was our partnership with the Department of Environmental Affairs and Cities Network in the Local Government Partnership for Climate Change. South Africa successfully hosted COP17CMP7 in eThekwini municipality and we commend our member municipality for rising to the occasion.

The 2011/2012 fi nancial year was a busy and very important year indeed for the sector. We forged partnerships and developed good relations that were established to ensure the continuity of local government. I must note that sustained engagement is a critical element in long-term political success and stability.

Cllr Thabo ManyoniSALGA Chairperson

1.1 FOREWORD BY SALGA CHAIRPERSON


Chairperson’s Acknowledgements

I express my sincerest gratitude to the President of the Republic of South Africa, His Excellency, President Jacob Zuma, under whose leadership the sphere has been acknowledged as a key player in government’s overall priorities. I acknowledge the Minister of Cooperative Governance and Traditional Affairs, Honourable Minister Richard Baloyi on the role played by the department in support of SALGA as an organisation. I thank all Government Ministers and their departments for the efforts made in partnering with municipalities to deliver better service to our citizens. The Premiers, under whose guidance provincial departments are able to give Local Government support are duly noted and appreciated.

I acknowledge and thank the SALGA NEC of 2006-2011 for the good leadership they displayed in representing municipalities provincially and nationally. I acknowledge the new political leadership of SALGA and trust that our term of offi ce will prove fruitful as a collective.

I would also like to acknowledge the late former Minister of Corporative Governance and Traditional Affairs, Honourable Sicelo Shiceka, a comrade in liberation, he will be dearly missed.

CLLR THABO MANYONI

SALGA CHAIRPERSON

1.1 FOREWORD BY SALGA CHAIRPERSON


1.2 OVERVIEW BY THE CEO

Xolile GeorgeSALGA Chief Executive Offi cer

The fi nancial year under review saw the plotting of a new path for local government and as a consequence SALGA. During this period the local government elections brought about a major leadership change and culminated in the SALGA National Conference 2011. We also witnessed the integration of SALGA KZN into the unitary SALGA structure, strengthening the single voice of organised local government. As transition is challenging in any sector, SALGA managed to provide leadership and guide its members through the transition. In line with the new fi ve year political mandate, SALGA reviewed its strategic plan taking cue from the 2011 National Conference resolutions and key developments in the national discourse.

As management, striving towards organisational excellence we decided to conduct a detailed analysis of the organisational environment and the broader context of local government. A peer review was conducted by the Local Government Association of England and Wales (LGA), and we conducted an internal organisational climate survey the results of which will assist us develop a concrete way forward with the newly adopted SALGA Strategic agenda 2012-2017.

The implementation of this plan will commence in the next fi nancial year and will assist the organisation to navigate the direction of the key deliverables of local government. The strategic plan is pillared by 3 apex priorities:

1. Review of the legislative and policy framework

2. Review of the local government fi scal and fi nancial management framework

3. Improved Municipal capacity

SALGA’s annual performance is sitting at an 84% achievement of key activities against the Annual Performance Plan 2011/2012. This steady improvement by organised local government is a tremendous achievement and refl ective of the strides SALGA has taken to ensure that municipalities are supported and represented in all sectors and spheres of government.

Some of our highlights for the year include:

Participation in the development of the Municipal Systems Amendment Act (MSA), ensuring that the municipal perspective was well represented. The organisation provided guidance to municipalities on the interpretation of the MSA Act.

Securing a once of gratuity payment for non-returning Municipal Councillors, payable from the national fi scus.

• The Local Government Partnership for Climate Change which we established with the Department of Environmental Affairs, Cities Networks and Cooperative Governance. This partnership developed the local government position on climate change and participated in COP 17, in Durban in December 2011.

• Convening a successful National Conference with approximately 2000 delegates in attendance, including the Minister for Planning, Honourable Trevor Manuel representing the Precidency; the then acting Minister for Cooperative Governance and Traditional Affairs, Honourable Nathi Mthethwa and the Premier of KwaZulu-Natal, Dr Zweli Mkhize, other members



of the KwaZulu-Natal Provincial Cabinet, provincial government, key government agencies as well as representatives of the private sector, traditional leaders and other organs of civil society.

• SALGA nationally inducted councillors through the Councillor Induction Programme (CIP) and further conducted portfolio based training. Advanced induction aimed at councillors responsible for municipal fi nances has been conducted with approximately 8600 councillors and municipal offi cials, responsible for fi nance, inducted on municipal fi nance issues, in partnership with National Treasury.

• As part of Capacity and Compliance Panel (CCAP) of the National Department of Human Settlements, SALGA has been able to support municipalities through workshops held on the expectations of CCAP, ensuring that they will be able to respond to CCAP requests timeously.

• Meeting with NERSA regarding the granting of electricity distribution licences to identifi ed municipalities.

• The training of 189 Councillors and offi cials on Disaster and Risk Management.

• SALGA created a platform for municipalities to engage with the draft Spatial Planning and Land Use Management Bill, Subsequent to that, SALGA draft comments were developed on the Bill and submitted to the Department of Rural Development and Land Reform.

• The position paper SALGA submitted outlining overall challenges on the implementation of the Municipal Property Rates Act, whilst making several proposals for improvements to the legislation and its implementation. It also commented on the Municipal Property Rates Amendment Bill.

• Final Guidelines on Roles and Responsibilities of Political Offi ce Bearers were circulated to all municipalities. Workshops were conducted in NW and NC provinces.

• The development of policies on coaching and mentoring, retention and human capital management. The aim of these policies is to assist with the reduction of staff turnover whilst helping municipalities identify (from within) and retain talent.

• Gauteng municipalities and the Gauteng Department of Local Government held a conference to look at the consequences of Acid Mine Drainage (AMD) in the province and sought to craft possible solutions to this challenge.

SALGA has been highly active in its interaction with parliament and with sector departments this year, presenting local government’s positions on matters impacting local government i.e. review of local government fi scal framework, potable bulk water tariffs.

We will continue to deliver on our mandate to adequately represent, support, advocate and profi le our members. The unifi ed effort of municipalities has a critical role to play in the development of empowered and sustainable communities and we do not take that responsibility lightly.

Acknowledgements

I would like to duly acknowledge the National Executive Committee of SALGA, who inherited this leadership responsibility mid-year and took it in their stride. We look forward to the next fi nancial year under your leadership and guidance.


I thank the National Executive Committee that led SALGA until the National Conference in September 2011. My team and I were honoured and humbled under your diligent leadership and your positive legacy has given foundation to work from.

I acknowledge the Minister of CoGTA, Honourable Richard Baloyi whose role in local government is most critical to the development of the sector.

I thank the municipalities who have tirelessly worked towards a better life for all and thank our members for the support they have provided to organised local government.

I extend my gratitude to all the sector departments that have worked side by side with SALGA in our unifi ed effort to deliver services to municipalities.

I also appreciate and extend my gratitude to the all the businesses, organisations and entities who have partnered with organised local government, believing and supporting our vision for local government.

Lastly, I thank my administrative team members, who have dedicated themselves to the realisation of the vision of SALGA.

XOLILE GEORGE

CHIEF EXECUTIVE OFFICER



1.3 FINANCIAL RESULTS OVERVIEW

Nceba MqoqiChief Finance Offi cer

Figures in Rand 2012 2011

Financial indicators

Membership levy revenue 217 872 595 145 888 126

Government grant - National Department of CoGTA (Executive Authority) 25 486 000 49 125 000

Other government grants recognised 3 394 176 4 698 924

Government grant - Free State Provincial Department of CoGTA 214 086 3 665 591

Government grant - Gauteng Department of Local Government & Housing 333 333 333 333

Government grant - Eastern Cape Dept. of Local Government & Housing 1 190 065 -

Department of Environmental Affairs 300 000 700 000

Government grant - National Treasury 1 356 692 -

Sponsorships and donations received 12 786 123 6 003 160

Donor funding income recognised 20 392 828 15 179 155

Key fi nancial ratios

2012 2011Membership levy contribution (%) 75.0% 63.2%

Government grants contribution (%) 8.7% 21.3%

Other grants contribution (%) 4.4% 2.0%

Sponsorship and donations contribution (%) 4.4% 2.6%

Donor funding contribution (%) 3.7% 6.6%

Other income contribution (%) 3.8% 4.4%

Current ratio 80.2% 54.4%Solvency ratio 116% 96%Asset coverage rate (times) 11 (7)

________________________

NCEBA MQOQI

CHIEF FINANCIAL OFFICER


1.4 SALGA MANDATE

Vision:“To be an association of municipalities

that is at the cutting-edge of quality and sustainable services.”

Mission:“To be consultative, informed,

mandated, credible, and accountable to our membership, and to provide value

for money.”

Values:Our values are as follows:

Responsive, Innovative, DynamicExcellence

The development of local government forms an essential component of the machinery of government. Local government contributes towards the national growth and development imperatives of government. In accordance with its constitutional mandate, SALGA is obliged to build a local government sector that has the capacity to drive poverty alleviation, economic development, and all socio-economic opportunities that the state has geared itself to provide all its people.

SALGA is an association of municipalities in South Africa recognised in terms of Section 163 of the Constitution of the Republic of South Africa as a Schedule 3A public entity. SALGA also serves as the representative voice for all 278 municipalities. Since its establishment 16 years ago, SALGA has endeavoured to bring focus to its mandate of supporting local government transformation in a complex environment. This environment is characterised by a highly diverse and diffuse membership base of municipalities. In terms of its amended constitution, SALGA is a unitary body that consists of a national association and nine provincial offi ces. The mandate of the organisation rests on fi ve (5) primary pillars:

SALGAMANDATE

Lobby,Advocate, and Represent

StrategicProfiling

KnowledgeSharing

CapacityBuilding

Support and Advice

Transform local govern-

ment to enable it to

fulfil its developmen-tal mandate.

Lobby, advo-cate, protect, and represent the interests of local govern-

ment at relevant

structures and platforms.

Refers to building the profile and

image of local government within South Africa as well

as outside the country.

SALGA as custodian of local govern-ment intelli-

gence and the knowledge hub for the

sector.

Refers to the role of SALGA to build the capacity of Councillors

and the bespoke skills required within

the sector.

Support and advise our

members on a range of issues to assist in the

effective execution of

their mandates.

THE VOICE OF LOCAL GOVERNMENT

1.5.1 Mission, vision, and values

Vision:

“To be an association of municipalities that is at the cutting-edge of quality and sustainable services.”

Mission:

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

Values:

Our values are as follows:

• Responsive• Innovative• Dynamic• Excellence


1.5 SALGA REVISED FIVE-YEAR STRATEGY 2007-2012

The point of departure for SALGA is to strengthen the local sphere of government in delivering a developmental agenda that is aligned to national strategic priorities. SALGA is also focused on reinforcing the work of the national and provincial spheres of government. The eradication of poverty and unemployment, along with the stimulation of growth lies at the heart of the mandate of local government. As the front-line of service delivery, local government also plays a pivotal role in consolidating and deepening democracy at a grassroots level.

The SALGA strategic plan is made up of two components: the internal change agenda focused on improving the capacity of the organisation to better perform its functions; and the external change agenda focused on the contribution of SALGA to the governance and service delivery environment in accordance with its mandate.

In 2006/7, SALGA initiated a change agenda that leveraged on the successes gained and challenges presented since its inception. The SALGA Five-Year Strategic Plan (2007 to 2012) was developed in order to facilitate the rigorous and systematic roll-out of the change agenda.

Implementation of the fi ve-year strategic plan fi nds expression in the annual business plans. These aim to build its capacity to engage with its membership and the national and provincial spheres of government. This engagement takes place on policy-formulation in areas that affect developmental local government. In 2009/10, SALGA consolidated its change agenda by building its capacity to synthesise national and provincial trends and plans and policies into accessible, understandable knowledge products able to assist municipalities in developing and implementing their own policies in the national, continental, and global context.

Subsequent to the national and provincial government elections in 2009 and 2010, Cabinet approved the comprehensive Local Government Turn-Around Strategy (LGTAS). The Department of Cooperative Governance and Traditional Affairs (CoGTA) formulated this strategy on 2 December 2009. In January 2010, Cabinet identifi ed and prioritised 12 outcomes for the remaining years of the Medium-Term Strategic Framework (MTSF):

MTS

F

OUTCOMES

1 Quality basic education.

2 A long and healthy life for all South Africans.

3 All people in South Africa are and feel safe.

4 Decent employment through inclusive economic growth.

5 A skilled and capable workforce to support an inclusive growth path.

6 An effi cient, competitive, and responsive economic infrastructure network.

7 Vibrant, equitable, and sustainable rural communities contributing towards food security for all.

8 Sustainable human settlements and improved quality of life for all households.

9 Responsive, accountable, effective, and effi cient local government.

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 effi cient, effective, and development-oriented public service and an empowered, fair, and inclusive citizenship.

While local government is committed to contributing towards the achievement of all outcomes (particularly outcomes 4, 6, 7, 8, and 10), outcome 9 is specifi cally applicable to local government. This outcome is underpinned by the Local Government Ten (10) Point Plan as presented to Cabinet at

the January 2010 Lekgotla. The plan seeks to reinforce and support the implementation of the LGTAS and comprises 10 local government outputs and 44 corresponding performance indicators.


Following the national election, that took place at the mid-point of the fi ve-year strategic plan of SALGA, which brought a new electoral mandate and profound changes in the local government environment it was deemed imperative that SALGA revise the priorities contained in its original fi ve-year strategic plan.

In conjunction with this process, SALGA took the decision to align its planning methodology with the outcomes-based approach of the Presidency. This was deemed necessary in order to ensure that SALGA remains relevant by aligning its planning practices with key stakeholders in the local government sector. The outcomes-based methodology for strategic and business planning is a departure from the traditional input-output model where targets are set only at the output level and are based on fi xed inputs. In the outcomes-based approach to planning, outcomes are at the epicentre of the planning process. These are distilled into the priority

outputs having the largest infl uence on the overall outcome.

At its national conference in April 2007, SALGA identifi ed and developed ten strategic objectives for the period July 2007 to March 2012. These objectives comprised two groups:

the fi rst group of fi ve strategic objectives gives expression to the internal change agenda of SALGA in order to enable more effective delivery of its mandate and the addressing of corporate governance problems inherited from preceding years;

the second group of fi ve strategic objectives embodies the core activities of the organisation and represents resolutions from the national conference. The latter key performance areas (KPAs) are designed to support the objectives of the 5-Year Local Government Strategic Agenda (5-YLGSA), a focus previously missing in the organisation.

CoG

TA 1

0-P

OIN

T P

LAN

/ LG

TAS

OUTCOMES

1Improve the quantity and quality of municipal basic services to the people in terms of access to water, sanitation, electricity, waste-management, roads and disaster-management.

2 Enhance the municipal contribution to job-creation and sustainable livelihoods through LED.

3 Ensure the development and adoption of reliable and credible IDPs.

4 Deepen democracy through a refi ned Ward Committee model.

5 Build and strengthen the administrative, institutional and fi nancial capabilities of municipalities.

6 Create a single window of co-ordination for support, monitoring and intervention in municipalities.

7 Eradicate fraud, corruption, nepotism and all forms of maladministration affecting local government.

8 Develop a coherent and cohesive system of governance, with a more equitable intergovernmental fi scal system.

9 Develop and strengthen a politically and administratively stable system of municipalities.

10 Restore the institutional integrity of municipalities.

THE SALGA CHANGE AGENDA STRATEGIC OBJECTIVES• Improve the capacity of SALGA to support and advise its

members.• Improve the capacity of SALGA to engage with

stakeholders and to lobby and advocate them on issues in the interests of member-municipalities.

• Improve the capacity of SALGA to effectively represent members as the employer.

• Enhance and maintain a high profi le locally, regionally, and internationally.

• Improve the corporate governance and internal functioning of SALGA.

THE SALGA 5-YLGSA-ALIGNED STRATEGIC OBJECTIVES• To contribute to municipal transformation and

organisational development.• To contribute to the effective and sustainable

delivery of municipal services.• To contribute to the stimulation of local economies

and poverty alleviation.• To contribute to the strengthening of municipal

fi nancial capacity.• To contribute to good governance and public participation in municipalities.

The SALGA 10 core strategic objectives:



Informed by the Medium-Term Strategic Framework (MTSF) for 2009-14, the Millennium Development Goals (MDGs) and the Local Government Turnaround Strategy (LGTAS), SALGA contextualised and incorporated these government priorities and their relevance to local government into its own mandated objectives, forming 10 Priority Outcomes. These 10 strategic outcomes replace the 5-YLGSA priorities, in much the same way as COGTA replaced the 5-YLGSA with the LGTAS. The SALGA Change Agenda (Five Objectives) and SALGA Priority Outcomes (10 Outcomes) now become the central components of the revised SALGA Five-Year Strategic Plan (2007-2012), underpinning all future national business plans, including those for 2011/12. The amended fi ve-year strategic plan of SALGA will provide a keen focus for its work as the organisation establishes a niche in a congested space

where resource constraints are a considerable challenge. SALGA will be better positioned to more effectively respond to the opportunities, challenges, and imperatives with which local government will grapple. These changes will also allow the organisation to effectively play its role in co-operative governance and in fostering effective partnerships with stakeholders in the local government sector, including other spheres of government.

Having laid the strategic foundation to represent, support, and advise local government, the 2011/12 annual performance plan gave expression to the ambition of SALGA to play a decisive role in policy discourse. This is done to provide the necessary conditions for local government to effectively deliver on its constitutional mandate.

THE REVISED STRATEGIC PRIORITIES OF SALGA:

1. Improve SALGA’s ability to support and advise its members.

2. Improve SALGA’s ability to engage with stakeholders,lobby and advocate them on issues in the interest ofmember municipalities.

3. Improve SALGA’s ability to effectively representmembers as an employer.

4. Enhance and mantain a high profile position nationally,regionally and internationally.

5. SALGA’s corporate gorvenance and internal functioning

SALGA’S MANDATE

SALGA CONSTITUTION1. Employer Role2. Representative Role3. Advisory Role4. Profiling Role

SALGA 5 YEAR STRATEGIC PLAN

2007-2012

5YLGSA

MTSF 2009 - 2014

MDG’s

COGTA 10 POINT PLAN

SALGA CHANGE AGENDA

SALGA PRIORITY OUTCOMES 2010 - 2012




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

2. Service Delivery: Improved access to municipal services and enhanced provision of FBS.

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.

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.

7. Stable Municipal governance: Stability, transparancy and accountability in municipal governance.

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

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

10. Climate Change Response Measures at Municipal

Level: Intergrated climate change response in development planning & mangement.

SALGA PRIORITY OUTCOMES 2010 - 2012


2007National

Conference

2008MembersAssembly

2009MembersAssembly

2010MembersAssembly

2011National

Conference

Priorities for 2007/08

1. Climate Change2. Advocacy and Lobby3. Capacity Building4. Good Governance5. Sound Financial Management6. FIFA World Cup 20107. Poverty Eradication


1. Climate Change2. Lobbying and Advocacy on all relevant policies and legislation3. Human Development Strategy4. Consolidating SALGA’s Internal Change Agenda5. Councillor Support6. Municipal Human Resource Management7. Profiling Local Government8. Stimulating Local Economies


1. Councillor Support2. Capacity Building3. Municipal Finance and Governance4. SALGA Governance Framework5. Labour relations -Represent/ Support/Advice6. Represent Members: Advocacy and Lobbying7. Knowledge Sharing8. Marketing and Communication


1. Councillor Support2. Capacity Building and Institutional Development3. Sound Financial Management & Governance4. Municipal Governance5. Labour Relations6. Reforming Organised local Government7. Service Delivery8. Social Cohesion9. Economic Development10. Climate Change

STRATEGIC EVALUATION:

STRATEGIC OBJECTIVE1 Improve SALGA’s capacity to support and

advise its members2 I mprove SALGA’s capacity to engage with

stakeholders, lobby and advocate them on issues in the interest of member municipalities.

3 Improve SALGA’s capacity to effectively represent members as the employer

4 Enhance and mantain a high profile position locally, regionally and internationally.

5 SALGA’s corporate governance and internal functioning.

STRATEGIC OBJECTIVE1 To contribute to municipal transformation and

organisational development.2 To contribute to the effective and sustainable

delivery of municipal services.3 To contribute to the stimulation of local

economies and poverty elleviation4 To contribute to the strengthening of municipal

financial capacity.5 To contribute to good governance and public

participation in municipalities.

SYL

GS

AC

HA

NG

E A

GE

ND

A

STRATEGIC OBJECTIVE1 Improve SALGA’s capacity to support and

advise its members2 Improve SALGA’s capacity to engage with

stakeholders, lobby and advocate them on issues in the interest of member municipalities.

3 Improve SALGA’s capacity to effectively represent members as the employer

4 Enhance and mantain a high profile position locally, regionally and internationally.

5 SALGA’s corporate governance and internal functioning.

PRIORITY OUTCOME1 Councillor Support2 Service Delivery3 Social Cohesion4 Economic Development5 Labour Relations6 Sound Financial Management &

Governance System7 Stable Municipal Governance8 Capacity Building and Institutional

Development9 Reforming Organised Local Governance10 Climate Change Response Measures at

Municipal Level

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PR

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Mem

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Ass

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00

8

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Ass

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9

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20

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Assembly/Conference Resolutions



Chief Executive Officer

Chief of Operations

Internal Audit

Legal Compliance and Risk

Corporate Secretariat, Governance, and Strategic Programmes

Performance Management Unit

Communications and Marketing

Provincial Offices

Governance, IGR, and

International Relations

Municipal Institutional

Development

Municipal Infrastructure and Services

Community Development

Economic Development

and Management

Planning

Strategy, Policy, and Research

Finance and Corporate Services

• International relations and protocol• Inter- governmental relations• Advocacy and lobbying• Governance support• Parliamentary affairs and research• 5-YLGSA coordination

Eastern Cape

Western Cape

Northern Cape

North West

Limpopo

Mpumalanga

Gauteng

Free State

KwaZulu-Natal

• Collective bargaining and labour relations• Municipal human resources support• Skills development and capacity- building• Single public service• Local government transformation

• Solid-waste management• Water and sanitation• Electricity and energy• Transportation and roads• Climate change and environmental management support• Sustainable human settlement

• Human development• Safety and security• Health• Social cohesion and city diplomacy• Disaster management• Special programmes mainstreaming (youth, gender, HIV, etc.)

• Development management planning• Economic development (ICT, ASGISA, IDPs, PGDS, NSPS, EPWP)• Local government finance• Municipal entity oversight• P3 country project management

• Research• Policy development and analysis• Strategy, business planning, and organisational performance• Knowledge hub and management• Monitoring and evaluation• Stakeholder relations

• Financial planning and control• Asset- management and reporting systems• Supply-chain management• Human resources• Administration• Information and communication technology• Travel coordination and management

1.6 ORGanisational Structure


SALGA NATIONAL EXECUTIVE LEADERSHIP

NEC FROM 1 MARCH 2011 UNTIL 18 MAY 2011 NEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012

Designation Name Designation Name New/Re-elected

Chairperson Mr A Masondo Chairperson Cllr Thabo Manyoni New

Deputy Chairperson Mr O Mlaba Deputy Chairperson Cllr Nancy Sihlwayi New

Deputy Chairperson Ms S Molokoane- Machika Deputy Chairperson Cllr Nombuyiselo Hermans Re-elected

Additional Members Cllr C Johnson Deputy Chairperson Cllr Mpho Nawe New

Additional Members Cllr F Maboa-Boltman Additional Members Cllr Flora Maboa-Boltman Re-elected

Additional Members Cllr B Mahlangu Additional Members Cllr Dudu Mazibuko New

Additional Members Cllr S Somyo Additional Members Cllr Speedy Mashilo Was Provincial Chair

Additional Members Cllr P Mkhonza Additional Members Cllr Chris Neethling New

Additional Members Cllr N Hermans Additional Members Cllr Joshua Matlou Re-elected

Additional Members Cllr J Matlou Additional Members Cllr Pinky Moloi Was Provincial Chair

SALGA PROVINCIAL LEADERSHIP

SALGA EASTERN CAPE

PEC FROM 1 MARCH 2011

UNTIL 18 MAY 2011

PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012

Name Designation Name Municipality New/

Re-elected

Cllr M Sigabi Chairperson Cllr Nomakhosazana Meth OR Tambo District Municipality Re-elected

Cllr M Mvoko Deputy-Chairperson Cllr Deon De Vos Cacadu District Municipality New

Cllr Sihlwayi Deputy-Chairperson Cllr Zukiswa Ncita Buffalo City Metro New

Cllr D Matika Deputy-Chairperson Cllr Mxolisi Koyo Chris Hani District Municipality New

Cllr W Tikana Additional Members Cllr Maria Hermans Nelson Mandela Bay Metro Re-elected

Cllr GG Mpumza Additional Members Cllr Nomfundo Mabunu Gariep Local Municipality Re-elected

Cllr C Williams Additional Members Cllr Makhaya Twabu Alfred Nzo District Municipality New

Cllr N Meth Additional Members Cllr Nomasikizi Konza Amatole District Municipality New

Cllr N Mabunu Additional Members Cllr Vukile Balura Cacadu District Municipality New

Cllr SV Stuurman Additional Members Cllr Thandekile Sabisa Mhlontlo Local Municipality New

Cllr Zanoxolo Wayile Nelson Mandela Bay Metro New

Cllr Nozibele. Makanda Chris Hani District Municipality New

Cllr Luleka Simon Nelson Mandela Bay Metro New

1.7 SALGA Leadership


SALGA FREE STATE


UNTIL 18 MAY 2011


Name Designation Name Municipality New/Re-elected

Cllr S Ngangelizwe Chairperson Cllr. Dr. Balekile Edward Mzangwa Thabo Mofutsanyane District

Municipality

Re-elected

Cllr J Ramokhoase Deputy Chair Cllr. Madala Louis David Ntombela Mafube Local Municipality Re-elected

Cllr (Dr) BE Mzangwa Deputy Chair Cllr. Moseme Elisa Lande Matjhabeng Local Municipality Re-elected

Cllr M Sechoaro Deputy Chair Cllr. Bhekumzi Charles Stofi le Matjhabeng Local Municipality New

Cllr M Moshodi Additional Member Cllr. Jihad Mohapi Moqhaka Local Municipality Re-elected

Cllr S Mbalo Additional Member Cllr. Nthabiseng Mokotjo Mangaung Metro Municipality Re-elected

Cllr T Khalipha Additional Member Cllr. Mongi Geolion Ntwanambi Xhariep District Municipality Re-elected

Cllr M Mokgosi Additional Member Cllr. Thandiwe Ivy Reachable Letsemeng Local Municipality Re-elected

Cllr J Sehanka Additional Member Cllr. N Rabela Mangaung Metro Municipality New

Cllr T Reachable Additional Member Cllr. Lindiwe Ursula Makgalema Dihlabeng Local Municipality New

Cllr A Noosi Additional Member Cllr. Vuyizile Mona Letsemeng Local Municipality Re-elected

Cllr E Moilwa Additional Member Cllr. Lenox Rubulana Lejweleputswa District Municipality Re-elected

Cllr L Rubulana Additional Member Vacant

SALGA GAUTENG


UNTIL 18 MAY 2011



Cllr K Dau Chairperson Tau Parks (Cllr) City of Joburg New

Cllr M Khumalo Deputy Chairperson Calvin Seerane (Cllr) West Rand District New

Cllr P Tsotetsi Deputy Chairperson Pinky Mkonza (Cllr) Ekurhuleni Re-elected

Cllr E Ndlovu Deputy Chairperson Hlongwane Greta (Cllr) Emfuleni New

Cllr K Mogotsi Additional Member Mathikge Mantsho (Cllr) Merafong City New

Cllr T Phakathi Additional Member Johnny Tsotetsi Sedibeng District Re-elected

Cllr K Baduza Additional Member Mathikge Mantsho (Cllr) Merafong City New

Cllr J Masango Additional Member Mfi koe Matshidiso(Cllr) City of Joburg New

Cllr S Maphalla Additional Member Mashego Robert (Cllr) Ekurhuleni New

Cllr P Ramurutsi Additional Member Bhayat Farouk (Cllr) Mogalecity New

Cllr SN Mndayi Additional Member Tessa Ernest (Cllr) City of Tshwane New

Additional member Modisakeng Busisiwe(Cllr) Sedibeng New



SALGA KWAZULU-NATAL


Designation Name Municipality New/Re-elected

Chairperson Sibusiso.W Mdabe Ilembe District Re-elected

Deputy Chairperson James Nxumalo eThekwini Metro Re-elected

Deputy Chairperson Jabu Khumalo Amajuba District New

Deputy Chairperson Dudu CP Mazibuko Uthukela District Re-elected

Additional Member Nigel Gumede eThekwini Metro Re-elected

Additional Member Mluleki E Ndobe Sisonke District New

Additional Member Chris Ndlela Msunduzi LM New

Additional Member Thembeka VB Mchunu Uthungulu District New

Additional Member Ntombifi kile H Gumede Ugu District New

Additional Member Yusuf Bhamjee Umgungundlovu District Re-elected

SALGA LIMPOPO


UNTIL 18 MAY 2011



Re-elected

Cllr (Dr) FP Mdaka Chairperson Cllr D Magabe Sekhukhune District Re-elected

Cllr D Magabe Deputy Chair Cllr F Dzhombere Vhembe District

New (Deployed

as an MEC

for Safety and

Security) from

March 2012

Cllr Q Mokhabela Deputy Chair Cllr D Mmetle Tzaneen Local Municipality New

Cllr R Mogotlane Deputy Chair Cllr L Mapoulo Capricorn District New

Cllr M Lerule PEC Member Cllr K Lekalakala Modimolle Local Municipality New

Cllr S Ramaremela PEC Member Cllr N Sibanda Lepelle Nkumpi Municipality Re-elected

Cllr N Sibanda PEC Member Cllr T B Matibe Mutale Local Municipality New

Cllr C Malebane PEC Member Cllr O Mafefe Sekhukhune District Municipality New

Cllr N Matlou PEC Member Cllr L Nhlapo Bela-Bela Local Municipality New

Cllr M Mokganyetsi PEC Member Cllr S Ramaremela Mopani District Municipality Re-elected

Cllr F Greaver Polokwane Local MunicipalityAdditional

member



SALGA MPUMALANGA


UNTIL 18 MAY 2011

PEC FROM 3 AUGUST 2011 UNTIL 31 MARCH 2012


Cllr SK Mashilo Chairperson Clr SK Mashilo Nkangala District Re-elected

*Cllr LM Malatjie Deputy Chairperson Clr LC Dlamini Mbombela New

Cllr CN Mkhonto Deputy Chairperson Clr M Nkosi Chief Albert Luthuli New

Cllr O Mtsweni Deputy Chairperson Clr R. Khumalo Bushbuckridge New

Cllr F Maboa-Boltman (Ex-Offi cio)

Additional Member Clr GT Mthimunye Dr JS Moroka Re-elected

Cllr A Gamede Additional Member Clr L Dikgale Nkangala District Re-elected

Cllr BM Khumalo Additional Member Clr T Shabangu Ehlanzeni District New

Cllr GT Mthimunye Additional Member Clr T Mnisi Gert Sibande District New

Cllr L Dikgale Additional Member Clr VS Magagula Thaba Chweu New

Cllr R Vilakazi Additional Member Clr L Masina Govan Mbeki New

Cllr. L Theko Co-opted member Clr. S Nxumalo Bushbuckridge New

Cllr B Kubheka Co-opted member Clr S Sithole Emalahleni New

Cllr N Ndlovu Co-opted member Clr WM Mhlanga Nkomazi New

Ex Offi cio Member Clr. F Maboa Boltman Gert Sibande Re-elected

*Cllr. LM Malatjie was a PEC member until September 2010

SALGA NORTHERN CAPE


UNTIL 18 MAY 2011



Re-elected

Cllr W Johnson PEC Member Cllr Esther Molete Joe Morolong New

Cllr D Singh PEC Member Cllr Victor Makoke John Taolo Gaetsewe New

Cllr N Hermans PEC Member Cllr Jan Tonyane Tsatsabane New

Cllr H Combrink Deputy Chair Cllr Nokhaya Mjila Siyanda New

Cllr M Eilerd PEC Member Cllr Sipho Stonga Emthanjeni New

Cllr T Seikaneng PEC Member Cllr Lorenzo Faber Namakhoi Re-elected

Cllr K Markman PEC Member Cllr Eileen Drage- Maritz Namakwa DM Re-elected

Cllr W Ngobese Deputy Chair Cllr Winnie Ngobeza Sol Plaatje Re-elected

Cllr I Drage-Maritz Deputy Chair Cllr Nombulelo Hermans Umsobomvu Re-elected

Cllr G Cloete Provincial Chairperson Cllr Willie Johnson FBDM Re-elected

Cllr L Faber

Cllr L Letebele



SALGA NORTH WEST


UNTIL 18 MAY 2011



Re-elected

Cllr BE Moloi Chairperson Cllr Kaone Lobelo Greater Taung DM New

Cllr MA Molekwa Deputy Chairperson Cllr Lenah Miga Mafi keng LM New

Cllr OR Mochware Deputy Chairperson Cllr Mbulelo Zephe Dr Kenneth Kaunda DM New

Cllr AJ Maphetle Deputy Chairperson Cllr Phaladi Saku Ngaka Modiri Molema DM New

Cllr P Mopalami Additional Member Cllr Afrika Thale Ramotshere Moiloa LM New

Cllr MW More Additional Member Cllr Moeder Makodi Lekwa Teemane LM New

Cllr P Kgosieng Additional Member Cllr Sarah Nkatlo Dr Kenneth Kaunda DM New

Cllr KB Diakanyo Additional Member Cllr Suzan Montshioagae Dr Ruth S Mompati DM New

Cllr B Moirwagale Additional Member Cllr Sheila Mabale-Huma Rustenburg LM New

Cllr B Seokamo Additional Member Cllr Ezra Mdangai Bojanala Platinum DM New

Cllr J Douw Additional Member Cllr Francis Ratlhaga Bojanala Platinum DM New

Cllr Doctor Kgosi Mohadi Maquassi Hills LM New

Cllr Meso Rosy Dassie Tlokwe LM New

SALGA WESTERN CAPE

PEC FROM

1 MARCH 2011

UNTIL 18 MAY 2011



Re-elected

Cllr S de Vries ChairpersonChairperson Ald Demitri Qually Cape TownCape Town New New

Cllr IR Iversen Deputy ChairpersonDeputy Chairperson Cllr Georlene Wolmarans KnysnaKnysna Re-electedRe-elected

Cllr WS Mxolose Deputy ChairpersonDeputy Chairperson Cllr Francois Skippers SaldanhaSaldanha NewNew

Cllr Mrs GR Wolmarans Deputy ChairpersonDeputy Chairperson Cllr Edward Njadu Central KarooCentral Karoo NewNew

Cllr Mrs CC Brink Additional MemberAdditional Member Cllr Grant Twigg Cape TownCape Town NewNew

Cllr CA de Bruyn Additional MemberAdditional Member Cllr Ian Iversen Cape TownCape Town Re-electedRe-elected

Cllr L Dunn Additional MemberAdditional Member Cllr Stephan Vuba Cape TownCape Town NewNew

Cllr B Herron Additional MemberAdditional Member Cllr Chris Hussinger SwartlandSwartland NewNew

Cllr G Pascoe Additional MemberAdditional Member Cllr Clera Meyer Cape WinelandsCape Winelands NewNew

Cllr S Piti Additional MemberAdditional Member Cllr Anton Coetsee OverstrandOverstrand NewNew

Cllr Ms E Plaatjies

Cllr Mrs EC Marthinus

Cllr Ms JJ Muller



SALGA EXECUTIVE MANAGEMENT TEAM

SALGA EXECUTIVE MANAGEMENT TEAM

PROGRAMME / PROVINCE NAME

Chief Executive Offi cer Xolile George

Chief of Operations Lance JoelLance Joel

Chief Financial Offi cer Josephine Meyer until 16 September 2011Josephine Meyer until 16 September 2011

Acting Chief Financial Offi cer Nceba Nqoqi from 19 September 2011Nceba Nqoqi from 19 September 2011

Acting Executive Director: Strategy, Policy, and Research Seana Nkhahle

Executive Director: Municipal Infrastructure Services Mthobeli Kolisa until 24 October 2011Mthobeli Kolisa until 24 October 2011

Acting Executive Director: Municipal Infrastructure Services Gratitude Booysen from 25 October 2011Gratitude Booysen from 25 October 2011

Executive Director: Municipal Institutional Development Adv Mzwanele Yawa until 31 January 2012Adv Mzwanele Yawa until 31 January 2012

Acting Executive Director: Municipal Institutional Development Zwe Ndlala from 14 February 2012

Executive Director: Governance, IGR, and International Relations Johann MettlerJohann Mettler

Executive Director: Community Development Antonette Richardson

Executive Director: Economic Development, and Development Planning Mayur MaganlalMayur Maganlal

Provincial Executive Offi cer: Eastern Cape Chris Magwangqana until 30 September 2011

Acting Provincial Executive Offi cer: Eastern Cape Mthobeli Kolisa from 3 October 2011Mthobeli Kolisa from 3 October 2011

Provincial Executive Offi cer: Free State Lulama Cele

Acting Provincial Executive Offi cer: Gauteng Mihloti MasulukeMihloti Masuluke

Provincial Executive Offi cer: Limpopo Thapelo Matlala

Provincial Executive Offi cer: Mpumalanga Gugu LangaGugu Langa

Provincial Executive Offi cer: Northern Cape Gaonyadiwe Mathobela until 30 September 2011

Acting Provincial Executive Offi cer: Northern Cape Johanner Ruiters from 1 October 2011Johanner Ruiters from 1 October 2011

Provincial Executive Offi cer: North West Nancy Ngwenya

Provincial Executive Offi cer: Western Cape Khalil MulagieKhalil Mulagie



This chapter provides a detailed overview of the organisational performance of SALGA in meeting its mandate for the period 1 April 2011 to 31 March 2012, as measured against the predetermined objectives outlined in its Five Year Strategic Plan (2007 -2012)

ORGANISATIONAL PERFORMANCE

Chapter 2


2.1 INTRODUCTION

As per the PFMA, the SALGA Annual Report is the key tool for Schedule 3A Public Entities to report against the performance targets and budgets outlined in their strategic plans. In addition to fi nancial statements and the audit report, the annual report is required to contain information on mandate execution and performance. It is meant to be a backward-looking document, focusing on performance in the fi nancial year that has just ended. It reports on how the budget for that fi nancial year was implemented. The SALGA Annual Performance Plan 2011/12, as approved by the NEC on 25 March 2011, was based on the revised SALGA 5-year Strategic Plan 2007-2012. This revision was amended in 2009 to cater for the shift in focus from objectives to outcomes and the replacement of the fi ve objectives geared towards the 5-year Local Government Strategic Agenda with the 10-Point priority outcomes of SALGA which were aligned to the Local Government Turnaround Strategy.

The Annual Report provides information on the performance of SALGA in the preceding fi nancial year for the purposes of

oversight. The Annual Report looks at its performance relative to the targets set in the Annual Performance Plan 2011/12 and provides the audited annual fi nancial statements. It reveals how the budget was implemented and the state of the fi nancial management systems of SALGA. It should include relevant background statistics and administrative data series.

The Annual Report is linked to the implementation of the Annual Performance Plan and budget, monitored through in-year reporting. Quarterly performance reports provided periodic updates on the implementation of the SALGA Annual Performance Plan 2011/12, with particular reference to monitoring delivery against quarterly performance targets. These quarterly performance reports provides SALGA management and leadership with information on performance against pre-determined objectives. The quarterly performance reports are ultimately consolidated into the performance section of the Annual Report 2011/12.

23

45

68

90

SALGA ANNUAL PERFORMANCE 2008-12

Note: For the period 2008- 09, no annual institutional performance was performed, the percentage shown is an average of the quarterly performance for the year.

SALGA ANNUAL PERFORMANCE 2008-12

60757384

2008-2009 (Average of four quarters)2009-2010 2010-20112011-2012

2009-20102008-2009 (Average of four quarters)

2010-2011 2011-2012


SALGA - ALL PROGRAMMES QUARTERLY PROGRESS

Q1 2008-09 4144

5458

82

Q2 2008-09Q3 2008-09Q4 2008-09

Q1 2009-10

Q1 2010-11

Q1 2011-12Q2 2011-12Q3 2011-12

Q2 2010-11Q3 2010-11

Q2 2009-10Q3 2009-10

2008-09

2009-10

2010-11

2011-12

8584

7589

8382

7370

4071

84

01 02 03 04 05 06 07 08 09 0

QUARTERLY PERFOMANCE 2011-12 PERCENTAGE ACHIEVED

Q1 2011-12Q2 2011-12Q3 2011-12

Total Programmes SALGA 10 Priority ItemsO

23

45

68

90

70 71

40

84

76

67

87 87

68

34

65

83

2.1 INTRODUCTION

AR 2011-12

AR 2010-11

AR 2009-10

AR 2011-12


2.1 INTRODUCTION

QUARTERLY PROGRESS CHART 2008-2012 - FULLY ACHIEVED PERCENTAGE

Q1 2008-09

Q1 2009-10

Q1 2010-11

Q1 2011-12

Q2 2008-09

Q2 2009-10

Q2 2010-11

Q2 2011-12

Q3 2008-09

Q3 2009-10

Q3 2010-11

Q3 2011-12

Q4 2008-09

41

44

54

58

82

85 84

75

89

8382

73

70

40

71

84

46

53

64

54

82

8890

8484

93

85

89

76

67

87 87

3637

43

49

838381

72

90

8081

85

68

34

65

83

0

25

50

75

100

Total Programmes Change Agenda SALGA 10 Priority Items

AR 2009-10

AR 2010-11

AR 2011-12


2.2 OVERVIEW OF PERFORMANCE AGAINST PREDETERMINED OBJECTIVES FOR THE PERIOD 1 APRIL 2011 to 31 MARCH 2012

The Annual Report 2011/12 is the culmination of quarterly reporting against the predetermined objectives as set out in the SALGA Annual Performance Plan 2011/12. The table below provides a broad overview of the organisational performance of SALGA over the 12-month period under review.

Number Percent Number Percent

CA 1: Contribution to municipal transformation and 13 100 13organisational developmentCA 2: Contribution to the effective and sustainable delivery of 8 100 8municipal servicesCA 3: Contribution to the stimulation of local economies and 0poverty alleviationCA 4: Contribution to the strengthening of municipal financial 15 100 15capacityCA 5: improve the salga corporate governance and internal 50 79 13 21 63functioningCA TOTAL 86 87 13 13 99PO 1: Councillor support - high calibre, professional, and 12 75 16effective local government political leadershipPO 2: Service delivery - improved access to municipalservices and enhanced provision of free basic services (FBS) through 45 83 54effective operations management and service maintenancePO 3: Social cohesion – mainstreaming of transversal (gender, 59 98 60youth, children, HIV/AIDS, etc.) socio-economic issues PO 4: Economic issues – drive of growth and employment 45 98 46creation by municipalities in both urban and rural areasPO 5: Labour relations – productive and stable labour 26 79 33environments supported by a ‘mutual gains’ approachPO 6: Sound financial management and governance system - 28 80 35improved municipal financial management and viabilityPO 7: Stable municipal governance 12 86 14PO 8: Capacity building and institutional development – optimising municipal skills, organisational systems, and 38 68 18 32 56structures towards improved service deliveryPO 9: Reformation of organised local government – ensuring a 36 11more effective, responsive, and financially viable SALGAPO 10: Climate change response measures - integration of climate change responses in municipal development, planning, 33 6and management.PO TOTAL 276 83 55 17 331TOTAL KEY PROGRAMMES CONTRIBUTING TO 362 84 68 16 430BUSINESS PLAN 2011-12

Fully Achieved

NotAchieved

TotalNumber of

TargetsSTRATEGIC OBJECTIVES AS PER

SALGA STRATEGIC PLAN 2007 to 2012

SALGA 2011-12: INSTITUTIONAL SCORECARD BY KEY PERFORMANCE AREA (KPA)

SALG

A C

HA

NG

E A

GEN

DA

SALG

A 1

0 P

RIO

RIT

Y O

UTC

OM

ES

0

0

0

0

4

9

1

1

7

7

12

4

7

0

0

0

0

0

25

17

2

2

21

20

14

67

64

2

4

0


Not Achieved72 KPI’s17%

Fully Achieved358 KPI’s83%

SALGA Perfomance Plan 2011-12 CONSOLIDATED ANNUAL PERFOMANCE POST AUDIT



SALGA Perfomance Plan 2011-12 CONSOLIDATED ANNUAL PERFOMANCE POST AUDIT In Terms of it’s CHANGE AGENDA

The Annual Report 2011/12 refl ects on the performance and achievements of SALGA in relation to a total of 430 key performance indicators (KPIs) with its associated targets, as per the approved SALGA Annual Performance Plan 2011/12. Each KPI has been developed in support of a particular strategic objective contained in the revised SALGA Five-Year Strategic Plan (2007-2012). These KPIs encompass all SALGA provincial offi ces (excluding SALGA KZN) and national directorates. Collectively, SALGA has achieved 84 percent (362 KPIs) of the targets as set out in the Annual Performance Plan. Overall, only 16 percent (68 KPIs) of the targets have not been achieved.

It may be noted that the annual performance of SALGA post-AG for the for 2011-12 fi nancial year stands at 84 percent. This is an 11 percent improvement on the 2010/11 performance which stood at 73 percent.



SALGA Perfomance Plan 2011-12 CONSOLIDATED ANNUAL PERFOMANCE POST AUDIT In Terms of it’s 10 PRIORITY OUTCOMES

In terms of the 16% of pre-determined objectives not achieved, the reason for varience stated in 69% (47 out of 68) of cases, is that the target could not be achieved due to a lack of capacity. SALGA has prioritised the building of capacity throughout the organisation as a prioritiy for 2012/13. The lack of capacity has been identifi ed as a signifi cant risk to the achievement of the Annual Performance Plan and building a high performance organisation.



Challenges during 2011/12

The year under review has been characterised by the transition in SALGA leadership as a result of the Local Government elections which took place on 18 May 2011. According to the SALGA Constitution, a National Conference has to be held within 90 days following the elections. The National Conference is an elective conference and the highest decision-making structure in SALGA. At the provincial conferences preceding the National Conference, provincial PECs were elected followed by the election of the new incoming SALGA NEC at the National Conference. This leadership transition impacted on the ability of SALGA to effectively convene its governance structures during the fi rst and second quarters of the fi nancial year.

At the provincial conference of SALGA KZN, a resolution was passed for SALGA KZN to be re-integrated with the rest of the unitary SALGA structure. Agreement had been reached that

2011/12 will be utilised to conduct the required due diligence to facilitate the smooth integration of SALGA KZN with the rest of the organisation. In terms of planning and budgeting reporting, SALGA KZN will form part of the SALGA Strategic Plan 2012-2017 and Annual Performance Plan 2012/13.

During 2011/12, SALGA conducted a detailed analysis of its organisational environment and the broader context of local government. A number of activities informed this process; fi rstly SALGA subjected itself to an organisational peer review process by the Local Government Association of England and Wales (LGA), secondly SALGA conducted an organisational climate survey, and lastly there were management and leadership refl ections in the form of an EMT ‘bosberaad’ and the NEC induction workshop. These processes identifi ed possible means of addressing key challenges. The organisational assessment highlighted a number of challenges as indicated in the table below.

SALGA WCSALGA NWSALGA NCSALGA MPSALGA LPSALGA GPSALGA FSSALGA EC

Programme 8: Development & PlanningProgramme 7: Community Development

Programme 6: Governace and IRProgramme 5: Municipal Institutional Development

Programme 4: Municipal Infrastructure and ServicesProgramme 3: Strategy, Policy & Research

Programme 2: Finance & Corporate ServicesProgramme 1: Office of the CEO

10098

8985

7491

7082

9294

8550

8194

7973

2010-1173%

2009-1075%

2011-1284%

SALGA 2011-12 FINAL PERFOMANCE SCORECARD BY DIRECTORATE/PROVINCE



Strategy and Performance Integration

Unable to extract true value from the SALGA brand

Structure Integration

Lack of effective internal and external communication channels

Systems Integration

• Lack of proper systems to collect outstanding membership fees

• Unsustainable SALGA funding model

• Poor ICT connectivity given the country’s geography

• Lack of effective and effi cient monitoring and evaluation system to measure performance of SALGA’s leadership

Processes Integration

• Lack of effi cient and effective business and operational processes

• Lack of proper processes to collect outstanding membership fees

• The internal mandating process of SALGA is too complex and slow

• Lack of reliable data to provide membership intelligence to develop policies and priorities

People Integration

• Limited government resources and constraints of the local government system

• Uncoordinated, ineffi cient performance management for staff

Programme and Projects (Delivery) Integration

• Lack of sector-led leadership programmes for local government addressing the training needs of the sector

• The products and services catalogue of SALGO are not clearly defi ned

Stakeholder Management Integration

• Lack of effective stakeholder management framework

• Negative perceptions of SALGA by local government stakeholders and partners

Governance Integration

• Lack of role clarity and expectations of SALGA in local government

• The operational, reporting, and funding model of SALGA managed by sector department, i.e. CoGTA rendering SALGA incapable to function independently and not advancing the interests of their members

• The role of SALGA in parliament and provincial legislatures not clearly defi ned

A formidable challenge is that the budget of SALGA is inadequate to fulfi ll its mandate. The budget is also diffi cult to determine as membership and payment of levies by municipalities are entirely voluntary. SALGA has responded by initiating a comprehensive investigation into its funding model, alongside a concerted effort to lobby national government to support a larger and more sustainable funding model.

The purpose of this assignment was to analyse the various activities currently performed by SALGA with specifi c reference to the relevant legislation and to determine a

funding model that will enhance revenue. This will ensure the sustainability of the organisation in future years. In analysing the activities undertaken, cost drivers were identifi ed. Whilst cost control was not an objective of the assignment, there are recommendations that identify possible opportunities.

SALGA has done very well in terms of giving effect to its mandate during 2011/12. This achievement invariably leads to a heightened expectation in terms of its capacity to meet the growing expectation to be the voice of local government.



2.3 PERFORMANCE INFORMATION

ENQUIRY MANAGEMENT SYSTEM

A functional Enquiry Management System has been introduced with relevant support staff trained on its implementation. This has resulted in a more responsive approach to member queries. SALGA is now able to track the nature and number of queries received by the organisation and to appropriately respond to these. This results in the organisation becoming more proactive and responsive to the needs of its members. The programme on directly assisting member municipalities in the improvement of audit outcomes and performance management systems, has allowed SALGA to expand on its internal skills and expertise (using employees that are internally focussed) to the benefi t of its member municipalities.

SALGA RESEARCH PROGRAMME

One of the core objectives of the SALGA research programme is to enhance its capacity to advise its members. Delivery on its various mandates will be enhanced signifi cantly when it is informed by robust empirical research and intelligence. Collection of best practices and innovation will be particularly useful for its advisory and support roles.

In this context, a research agenda has been identifi ed and implemented through various business units. A total of 30 research projects were concluded in 2011/12. SPR monitors delivery on the research agenda throughout the organisation and implements some cross-cutting research projects which include:

The State of Local Government and Mining: At least one quarter of South African municipalities are dependent on mining for a signifi cant part of their socio-economic activity. A research report on the state of cooperation between Mining and Local Government has been concluded in partnership with the Departments of Mineral Resources and of Co-operative Governance, Industrial Development Corporation (IDC), and GIZ. A learning network and programme for ongoing support has been developed emanating from the research.

Migration and Implications for Municipal Governance: SALGA has concluded and published a study on migration and governance in South African municipalities. The fi ndings of the study have been disseminated through numerous learning events and a learning network has been initiated in partnership with Wits University. The Local Government Migration Network is geared towards facilitating shared learning between key

CA1: Improve SALGA’s capacity to support and advise its members.

2011-12 FINAL PERFOMANCE

Fully Achieved13100%

2.3.1 SALGA CHANGE AGENDA

CHANGE AGENDA 1:IMPROVE THE CAPACITY OF SALGA TO SUPPORT AND ADVISE ITS MEMBERS

Through the continuous evaluation of the ability of SALGA to serve its membership by the provision of sound advice and pro-active support, the four targets set in this area were met. This resulted in SALGA becoming more proactive and responsive in meeting the needs of its members as per its mandate.


stakeholders on how to plan for and manage migration in South African municipalities. The network will also identify projects which can be jointly implemented by partners in the network. One of the key projects is a data management programme and building the capacity of municipalities to manage migration.

Municipal Performance benchmarking: SALGA, in collaboration with the Centre for Municipal Research and Advice, initiated three municipal benchmarking programmes on Housing, Public Participation, and Local Economic Development. These programmes have been implemented through three SALGA directorates (MIS, GIGR, EDP). A benchmarking project on HIV and Aids, which was initiated in the last fi nancial year, was concluded and published this year. A fi fth benchmarking programme was initiated separately through a different partnership with the Water Research Commission and implemented through the MIS directorate.

Municipalities in South Africa and those from around the world generally face the same challenges. These range from an ever-changing and expanding set of needs from their constituencies, the necessity to serve these needs in an effective, effi cient, and equitable manner, and to tighten fi scal spending.

In general, local governments also have the pressure to continuously improve on both the quantity and quality of service delivery in common. In South Africa, the complex mandate of developmental local government, a legacy of impoverishment and inequality inherited from the past, and rising public expectations evidenced in community protests, are some of the challenges that confront municipal leadership and management. Despite the distinctive characteristics, there are important lessons that local government in South Africa can borrow from benchmarking themselves against with international “best practice”.

Similarly, some municipalities within the country fare better than others in some respects. In these cases, benchmarking provides valuable insights for municipalities who strive to improve their performance on service delivery. With the heightened expectations from communities, municipalities will exceedingly be looking for new and improved ways in which to establish greater levels of effi ciency. An examination

of what and how other members of their peer group create this effi ciency has proven to be one of the most important and constructive strategies that a municipality could embark on.

STAKEHOLDER MANAGEMENT

Partnerships with a variety of stakeholders have been facilitated. Most of these are geared towards providing support to municipalities in various performance areas. New co-operation agreements have been concluded with the following:

• SANTAM towards supporting municipalities on Disaster Risk Management and Local Economic Development.

• GIZ: This cooperation which focuses on renewable energy support for the municipalities add on to an existing long term relationship with GIZ which has strengthened local government in South Africa in many ways.

• German Association of Cities (DST) focusing on knowledge sharing with regard to local government matters in the two countries. This is designed to further the objectives of the respective local governments.



COUNCILLOR BENEFITS

A positioning paper on pension fund and medical aid arrangements was developed to create a common understanding of institutional arrangements for pension fund and medical aid regimes. SALGA also developed a positioning on tools of the trade. It successfully lobbied the commission on remuneration and created clarity on the detailed set of tools of the trade that are applicable for councillors. Through provincial induction workshops, SALGA was able to initiate an improved and common understanding of the system of remuneration applicable to all councillors.

A comprehensive submission was made to the Minister for consideration in promulgating the Upper Limits Notice for 2011/12. The SALGA position infl uenced the fi nal Upper Limits Notice. To some extent, this responds to the challenges raised by SALGA. SALGA provided guidance during the processing and fi nalisation of pension fund claims. To improve overall governance within the Municipal Councillors Pension Fund (MCPF), SALGA made progressive proposals for rule

amendments, appointed its two Trustees to the Board of the MCPF, and facilitated the appointment of provincial trustees. This resulted in the overall improvement of the governance arrangements within the MCPF which saw increased confi dence by members in the fund.

DEVELOPMENT OF STAKEHOLDER MANAGEMENT POLICY

In 2011, the NEC approved a Stakeholder Engagement Policy for SALGA which aims to facilitate a more strategic and systematic approach to engaging its stakeholders. The policy represents the commitment of SALGA to work effectively with all its stakeholders towards mutually benefi cial relationships.

The policy highlights that the objective of all partnerships entered into would be to enhance value to member municipalities. The policy seeks to:

• Ensure a coherent approach to stakeholder engagement across the organisation and local government as a whole.



CHANGE AGENDA 2:IMPROVE THE CAPACITY OF SALGA TO ENGAGE WITH STAKEHOLDERS AND LOBBY AND ADVOCATE

THEM ON ISSUES IN THE INTEREST OF MEMBER MUNICIPALITIES

SALGA has facilitated a common understanding of the institutional arrangements for pension fund and medical aid regimes; developed a guiding framework on the tools of trade, and effectively lobbied government on the current challenges with the system of remuneration for councillors. SALGA has facilitated the appointment of a new Board of Trustees for the Municipal Councillors Pension Fund which has resulted in improving the institutional arrangements for effective councillor welfare.

CA 2:Improve SALGA’s capacity to engage withstakeholders and lobby and advocate them on

issues in the interests of member municipalities.2011-12 FINAL PERFORMANCE

Fully Achieved8100%


• Harness the collective resources towards enhancing support to the local government agenda

• Build the capacity of SALGA to guide, advise, and support municipalities in delivering on their mandate

• Build the capacity of SALGA to engage with policy-making processes in the interest of local government

• Facilitate a critical mass of voices advocating Local Government issues in its best interests

• Facilitate issue-based alliances as an advocacy tool

• Facilitate a mutually reinforcing peer learning approach to inter-governmental relations and co-operative governance

For these benefi ts to be realised, SALGA recognises that the policy implementation must be embedded within the culture and core functions of the association. Furthermore, SALGA believes that this commitment and integration will lead to better outcomes for the organisation and its member municipalities.




CHANGE AGENDA 3:IMPROVE THE CAPACITY OF SALGA TO ENGAGE WITH STAKEHOLDERS AND LOBBY AND ADVOCATE

THEM ON ISSUES IN THE INTEREST OF MEMBER MUNICIPALITIES

For these benefi ts to be realised, SALGA recognises that the policy implementation must be embedded within the culture and core functions of the association. Furthermore, SALGA believes that this commitment and integration will lead to better outcomes for the organisation and its member municipalities.




CHANGE AGENDA 4:ENHANCE AND MAINTAIN A HIGH PROFILE LOCALLY, REGIONALLY, AND INTERNATIONALLY

SALGA has increased its visibility and presence in regional, continent, and global structures; increased the opportunities for learning and sharing of best practice models for organised local government across borders; and facilitated stronger and more effective organised local government associations in the SADC region.

STRUCTURED INTERNATIONAL ENGAGEMENT

SALGA has increased its presence and visibility in UCLGA, UCLG, and CLGF due to increased participation at events held by these bodies. The securing of funding to provide direct support to the Swaziland Association of Local Government Authorities and for the regional body in the Southern African Region (SARO) have resulted in an increase in the ability of SALGA to provide support, advice, and sharing of knowledge and experience on the development and growth of organised local government in the region.

SALGA has facilitated the further strengthening of local government associations in the SADC region leading to a stronger, collective voice for local government in Africa. By participating in regional and continental events, SALGA has been able to benefi t from opportunities and platforms for the learning and sharing of best practice models for local authorities across borders.


CA 4: Enhance and mantain a high profile locally,regionally and internationally.

2011-12 FINAL PERFOMANCE

Fully Achieved15100%


Details of the structured SALGA continentals and international engagements during 2011-2012:

• Second Ordinary General Assembly of the UCLGA in Zambia, 15-16 April 2011. The President of BALA - Botswana Association of Local Authorities, Hon. Rev. Cllr Mpho Moruakgomo, was elected President of the UCLGA for a three-year term. Executive Committee members Mayor Tayeb Zitouni (Algiers) and Cllr Charles Mumena (President LGAZ) were nominated as Vice-Presidents of Northern and Southern Africa respectively.

• SALGA Study Tour to the German Association of Cities (DST), Peer Learning and Development of an Institutional Partnership (trip to Germany learning exchange on lobby advocacy/ IGR, 20-23 June).

• CLGF Dissemination Seminar, Building support for Models of local democracy within a Federal System in Pakistan, 05-08 July 2011.

• ALAN (Association of Local Authorities in Namibia) 55th congress, 20-23 July 2011 in Windhoek.

• IBSA (India Brazil South Africa) LG Dialogue on Climate Change held in Pretoria, 16 October 2011. This was attended by LG representatives of India and Brazil as well as SA councillors responsible for Climate Change in their municipalities.

• ARIAL project workshop organised by MDP-ESA (Municipal Development Partnership for Eastern and Southern Africa), Southern Africa Training on “Development Possibilities with National Institutions and Development Partners especially the EU”, 15- 16 November.

• SALGA Study visit to Korea for the 2011 KSP program with SA, Interim Reporting Session and Policy Practitioners’ Workshop – Methodologies and Tools for Integrated Infrastructure Planning and Rural Development in SA, 24-28 October 2011.

• SALGA offi cials to the KOICA (Korea International Cooperation Agency) multi-year Training Programme:

Horticultural Crop Technology for Rural Development, October 30-November 2011, Suwon and Seongnam, Korea.

• A political delegation led by the Chair of SALGA, Cllr Manyoni from Mangaung municipality and supported by the CEO represented SALGA and its member municipalities at the UCLG World Council in Florence, Italy (11 December 2011).

• Consultative Workshop with SWALGA Leadership and its Member Municipalities in Mbabane, Swaziland on the TriCo Fund Proposal, 19-20 January 2012.

• UNDP Angola, 17-20 April 2011.

• Pakistan supported by CLGF, 13-17 June 2011 under the theme ‘Building Support for Models of Local Democracy within a Federal System’.

• Japanese Economic Research Institute (JERI) on Water and Sanitation in Africa, 09 May 2011.

• UMM (Union of Municipalities of Marmara, Turkey), 29 June 2011.

• Local Government practitioners from Korea (27 July 2011) as part of the KDS programme.

• Ethiopian Cities Association, 19 October 2011

• Botswana Association of Local Authorities (BALA), December 2011.

Details of the structured SALGA local engagements during 2011-2012:

• SALGA participated regularly in CoGTA (technical) committees, (technical) MinMECS, and Municipal Demarcation Board (MDB) meetings.

• CLGF Good Practice Scheme roundtable discussion on:

° Municipal Support for Small and Medium Enterprises;



° Role of Municipalities in promoting inward investment;

° Employment creation – Job Linkage Centre in Johannesburg, 11 May 2011.

• Launch of the Publication - Africa in Focus: Governance in the 21st Century, 25 May 2011

• Oxfam Strengthening local governance in Africa: regional trends and practices, 18-19 July.

• EC ILGM provincial meeting, 09-10 October.

• CLGF Good Practice Scheme Project Phase III National Dissemination Seminar: 4-5 October.

• Participated in the SALGA/SALAR discussion: Creating the ‘right’ type of LED support programme for municipalities and the role of LGA – An International and Southern Africa Perspective, 01 December.

• UCLGA Water and Sanitation Focal Point Network (FPN) meeting, 27-28 February.

• GIZ programmes: Research on Accountability and Oversight; ToRs for the Scoping Exercise for the Implementation of Municipal Community Media partnership ( 26 Jan), Appraisal workshop on “Access to Justice” (08 March), GIZ gender strategy (15 Feb), GIZ and DoCD and J regarding the implementation of PAJA in municipalities,GIZ Thematic Workshop on Governance programme appraisal (14 March), GIZ the proposed Study Tour to Germany on Shared Services and Inter-municipal Cooperation in May 2012, and TriCo Idea: Inter-municipal TriCo Project Proposals: South Africa - Zimbabwe - Germany partnerships.

SALGA STRUCTURED ENGAGEMENTS

Ongoing structured engagements with stakeholders continued to enhance the work of SALGA. This has served to enhance the sharing of information with key stakeholders, profi le the work that SALGA does, and made opportunities available to those who want to support the sector. In the past year, SALGA facilitated roundtable discussions with the Donor and International Development Partners as well as the business sector. These roundtables have resulted in the improved relations with the targeted stakeholders and enhanced the process of identifi cation of current and new projects.

The human settlements unit at SALGA has been able to enhance and maintain a high profi le position through the cooperation agreement with VNG International in the social housing and the LOGO South Programmes. Consequently, funding was secured for the implementation of both programmes from the Kingdom of the Netherlands.

Additionally, SALGA hosted the Local Government Programme as part of COP17 in December 2011 to discuss the issues of Climate Change and also agree on the role to be playd by LG to adapt to Climate Change.

SALGA Eastern Cape participated at all Provincial Technical MUNIMECs. The region also participated in the Provincial MuniMec held at the Wild Coast Mbizana LM on March 20 – 30, TSG and PCF Lekgotla (Jan) Prov Water Forum, EC Water Committee, and the EC Energy Forum.

SALGA Free State participated in two international relations missions, one in the Republic of Korea (South Korea) in Horticulture between 29 October 2011 and 13 November 2011, and the second in China, Hainan Province from 1 to 3 December 2011, organised by BRICS. The region also received fi nancial support for fl ight and accommodation from provincial CoGTA on the BRICS meeting.




CHANGE AGENDA 5:IMPROVE THE SALGA CORPORATE GOVERNANCE AND INTERNAL FUNCTIONING

SALGA facilitated the election of a new leadership for organised local government at a provincial and national level and adopted a set of resolutions that will guide its policy direction for the next fi ve years. SALGA continues to improve on internal functions (business planning, internal audit, performance management, legal and compliance, and communications) that allows for the organisation to remain effi cient, effective, transparent, and accountable to its members and the public.

STRATEGY AND ANNUAL PERFORMANCE PLANNING

The core function of the Strategy and Business Planning unit is to ensure that SALGA complies with the required legislation and regulations governing corporate governance. It also assists the organisation to continuously improve performance against predetermined objectives through its oversight role and support to various portfolios.

During the year under review, the planning operations of SALGA have been brought in line with the Framework for Startegic Planning and Annual Performance Planning as issued by National Treasury in September 2010. To this end, SALGA embarked on the second review of its Strategic and Annual Performance Planning Policy to ensure greater alignment and compliance with the national framework. SALGA has built signifi cant capacity in terms of ongoing internal quality assurance as one of the key controls instituted towards the promotion of sound corporate governance and service excellence.

”Building Municipal and Social Cohesion for Quality and Sustainable Services: 2011 and Beyond” was the rally theme

that drove the SALGA 2011 national and provincial conferences, the highest decision making body and the structures charged with giving SALGA its strategic direction. The conference made it clear that this term of Local Government would be characterised by high expectation and a demand for leadership that responds to the urgent challenges facing the sector.

In order to respond to this, SALGA recognises that it must assert its leadership role in the sector in meaningful, effective partnership with key stakeholders. It will engage robustly with other spheres of government in defense of the interest of this critical sphere of government. The newly elected leadership of SALGA is committed towards transforming the sector and reorganising it to perform better on its key mandates.

SALGA has identifi ed cross-cutting priority areas that focus on critical impediments that have impacted negatively on the ability of Local Government to perform optimally. These are an integral part of the overall goals, objectives, and activities within the strategy. However, they have been isolated due to the potential impact they could have toward the realisation of Developmental Local Government.


Fully Achieved5079%

CA 5: Improve SALGA’s corporate governance andinternal functioning.

2011-12 FINAL PERFORMANCE

Not Achieved1321%


Addressing these issuers could fundamentally overhaul the Local Government system in South Africa and place it on a path that would enable it to perform across a range of mandates. The priorities are:

• Legislative and policy review, especially around powers and functions and intergovernmental cooperation

• Local Government Finance and Fiscal transformation

• Municipal Capacity development (institutional and human capacity: both political leadership and technical skills)

SALGA recognises the fact that it serves the interest of the Local Government sector as a whole. It is cognisant and sensitive to the different categories of municipalities with unique needs that require a differentiated approach and value proposition.

The strategic goals contained in the SALGA strategic plan represent the long-term results (outcomes and impacts) that the organisation will champion as the basis of driving service delivery, transformation, growth and development in the sector as a whole. These goals have been aligned to the national strategic agenda and mandates for the sector. Particular point of reference have been the constitutional manadate of the sector. These goals are:

Goal 1: Accessible, equitable, and sustainable municipal services

Goal 2: Safe and healthy environments and communities

Goal 3: Planning and economic development at a local level

Goal 4: Effective, responsive, and accountable local government

Goal 5: Effective human resources management in the sector

Goal 6: Financially and organisationally capacitated municipalities

Goal 7: An effective and effi cient administration

SALGA recognises that there are numerous key players in Local Government and that it cannot achieve these goals on its

own. However, through the delivery of its mandate and working on intergovernmental relations and dynamic partnership and stakeholder engagements, SALGA will champion these goals.

OPTIMISING SALGA OPERATIONS

SALGA has elected a new leadership at a national and provincial level to guide the organisation during this current term of offi ce of local government. The leadership simultaneously adopted a set of resolutions that have informed the development of a fi ve-year strategy for organised local government.

Through the convening of regular NEC and PEC meetings and conducting the induction of newly-elected NEC and PEC members, SALGA has capacitated its leadership and support staff to improve corporate governance, internal functioning, and the execution of the mandate of organised local government.

The implementation of the internal audit coverage plan for 2011/12 has resulted in improved internal controls contributing to organisational effi ciency, transparency and accountability. The regular assessment of organisational compliance with legislative requirements has improved organisational compliance, setting SALGA on a path to be exemplary to its membership and a structured response to legal matters has been maintained to protect the interest of municipalities.

SALGA has mitigated risks through the regular monitoring, evaluation, and implementation of the enterprise risk management strategy. SALGA has successfully launched the Anti Fraud Hotline to facilitate the prevention and detection of fraud and corruption. The Performance Management System continues to be rolled-out to all employees, seeking to improve both individual and organisational performance in a systematic manner.

SALGA has established an offi cial publication which is used to profi le municipalities and the work of the association. SALGA now has the ability to monitor media coverage from various sources without the time it consumes to read various publications (electronic and print), through electronic news feeds. SALGA has been able to apply a uniform corporate identity through the effective implementation of the brand management strategy.



PRIORITY OBJECTIVE 1:COUNCILLOR SUPPORT

HIGH CALIBRE, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP

COUNCILLOR INDUCTION PROGRAMME (CIP)

In terms of S24(1) of the Local Government: Municipal Structures Act, 1998 ( Act No.117 of 1998), “the term of municipal councils is fi ve years, calculated from the day following the date set for the previous elections of all municipal councils in terms of subsection (2)” of the Act.

The term of offi ce of the current municipal councils commenced on 01 March 2006 and has since expired on 28 February 2011. The elections were held within 90 days after the expiry date, which was on 18 May 2011. In bringing to fruition the mandate of playing the representative, advisory, support, and employer roles effectively, SALGA needed to ensure that the newly elected leadership were well capacitated throughout their term to enable them to play their representative, governance, management, and oversight roles effectively.

CIP took place during the period 27 June to 22 July 2011. SALGA, in partnership with the DBSA, inducted a total of 8 642 councillors across all nine provinces:

INTERVENTION CIP

Eastern Cape 1170

Free State 761

Gauteng 1265

KwaZulu-Natal 1670

Limpopo 1318

Mpumalanga 827

North West 615

Northern Cape 431

Western Cape 585

TOTAL 8 642

SECTOR SPECIFIC INDUCTION

SALGA, in partnership with sector departments, provided sector-based Cllr induction sessions in all provinces. This was conducted for MMCs responsible for water, waste

2.3.2 SALGA 10-PRIORITY OBJECTIVES

Fully Achieved1275%

PO1: Improve SALGA’s corporate governance andinternal functioning.


Not Achieved425%


management, and human settlement. New councillors have been inducted and trained to make informed decisions with regards to the delivery of water services, solid waste, and human settlement. This has been done to ensure enhanced knowledge and understanding of the role councillors play in policy, legislation, budgeting, technological choices, operations, and maintenance.

Councillors elected to SALGA structures were also inducted on the role of SALGA in parliament, in the context of its mandate as the representative body of organised local government. The training workshop held on 12 to 13 October 2011 sensitised approximately 39 councillors on the need for a structured engagement with parliament in voicing policy issues confronting municipalities.

Additionally, councillors and offi cials from North West and the Northern Cape were inducted into the roles and responsibilities of political offi ce bearers and the municipal manager. They were also inducted into the need to develop terms of reference and delegations.

COUNCILLOR SUPPORT

SALGA Mpumalanga assisted municipalities in the functionality of the committees of municipal council and the Municipal Public Accounts Committees. SALGA developed guidelines which assisted municipalities on the structuring of the committees of council and coordinated a third governance Indaba on 02 February 2012.

At the Indaba, municipalities were workshoped on the guidelines and the functionality of the committees of municipal council, the doctrine of separation of powers, public participation, section 57 employees, councillors support and benefi t, Municipal International Relations, and the Intergovernmental Relations Frame Work Act of 2005. SALGA Mpumalanga, in partnership with CoGTA, assisted all 21 municipalities to join the established MPAC. The municapilities were also inducted in September 2011 into the district municipality.



PRIORITY OBJECTIVE 2:SERVICE DELIVERY

IMPROVED ACCESS TO MUNICIPAL SERVICES AND ENHANCED PROVISION OF FBS, THROUGH EFFECTIVE OPERATIONS MANAGEMENT AND SERVICE MAINTENANCE

WASTE MANAGEMENT

SALGA advised municipalities to review their institutional arrangements for providing waste management services. This was done through awareness and presentations in different provinces. Furthermore, a motivation to fi nancially support 10 municipalities which are undertaking Clean and Green Programme (Mnquma- Eastern Cape, KSD- Eastern Cape, Thulamela- Limpopo,Giyani- Limpopo, Bushbuckridge- Limpopo City of Tshwane- Gauteng, Emfuleni- Gauteng, Ga-Segonyana- Northern Cape Mantsopa- Free State, Nkandla- Kwazulu Natal) to review their institutional arrangements was prepared for the attention of the Department of Environmental Affairs.

Advice was continuously given through presentations to the municipalities. SALGA developed a revised guideline for the appointment of Waste Management Offi cers (WMOs). Municipalities are being guided on how to designate and who should be the Waste Management Offi cers. Updated report of municipalities which have not applied for the regularisation

of their waste fi ll sites was sent to mayors of affected Eastern Cape municipalities.

Municipalities were also educated on the need to comply with the regulatory issues on management of landfi ll sites. A workshop on waste management was held in Mpumalanga on 4 November 2011 at Nkangala district municipality. The purpose of the workshop was to encourage municipalities to get their waste disposal sites authorised. It was brought to the attention of municipalities that the disposal of waste on land is one of waste management activities in respect of which licence is required in accordance with Section 20(b) of the Waste Act.

The outcome of the workshop was that municipalities were made aware that they need to apply for the environmental authorisation for their waste disposal sites. SALGA Free State Province hosted a Councillor Induction Workshop on Waste Management Services on 06 March 2012. The purpose of the workshop was to build the newly elected councillors’ capacity to actively participate in waste management processes in an informed manner in order to improve waste management as a service in municipalities.


Fully Achieved4583%

PO2. Service Delivery - Improved access to municipal services and enhanced provision of FBS, through

effective operations management and service maintenance.


Not Achieved917%


SALGA North West convened and conducted a NEMA Section 30 and IWMP working session with the focus on the most critical components of section 30 and the management of information emanating from an emergency incidents. The intention of the legislation was for this information to be proactively utilised to predict, prevent, and better manage future emergency incidents.

The working session also looked at the National Environmental Management Act: Waste Act, No: 59 of 2008 where every municipality must develop and implement an Integrated Waste Management Plan (IWMP) which outlines the management of waste generated within its area of jurisdiction.

IWMP refers to a strategic initiative for the sustained management of solid waste through the use of a comprehensive integrated format generated complementary use of a variety of practice to handle solid waste in a safe and effective manner.

HUMAN SETTLEMENTS

SALGA is part of the Capacity and Compliance Panel (CCAP) that assessed the 12 remaining priority municipalities (Sol Plaatje, John Taolo, Emthanjeni, !Khara Hais, Rustenburg, Buffalo City, Polokwane, Tlokwe, Matlosane, Steve Tshwete, Govan Mbeki and Mbombela) that were targeted for the municipal accreditation programme.

There are 27 municipalities targeted for this programme. During the past few years SALGA, in conjunction with the National Department of Human Settlements, managed to assess and recommend fourteen of these municipalities for the various levels of accreditation through the CCAP.

The objective of the CCAP is to assess the state of readiness of municipalities to take over the housing function from provincial human settlements departments. A consolidated local government position paper was developed on the Emergency Housing Programme (EHP) and will be used to advocate for the revision of the EHP and the acceleration of the municipal accreditation programme.

SALGA North West facilitated the level one accreditation that was granted to the Tlokwe Local Municipality. That led to a better understanding by the municipality that the assessment

of municipalities for accreditation does not only focus on the Housing Unit of the municipality. The entire municipality is assessed in terms of its potential to manage the housing function should it be granted to the municipality.

On 11 November 2011, SALGA Western Cape hosted an accreditation workshop for municipalities in the Western Cape that were targeted for accreditation. The objective of the workshop was to prepare municipalities for the upcoming assessments of their state of readiness for level one and two accreditation by the Capacity and Compliance Panel (CCAP) of the National Department of Human Settlements. At the end of the workshop, municipalities were assisted in the expectations of the CCAP and were in a better position to respond to requests of the CCAP.

Assistance was provided to the Sol Plaatjie Municipality with regard to its social housing programme. Implementation of the capacity development programme, as per the VROM workplan, to capacitate the 13 Provisional Restructuring Zone municipalities in the fi eld of social housing also took place. Through this intervention, Sol Plaatje Municipality was assisted to draft a social housing policy as part of its housing policy. This will be used to manage the implementation of the social housing programme.

The 13 urban municipalities that are part of the Provisional Restructuring Zones have been capacitated in the fi eld of social housing. The rest of the municipalities have been capacitated in the fi elds of social and rental housing. It allows the affected municipalities to make informed decisions in the implementation of the social and rental housing programmes.

Newsletters on recent policy developments and events on the Logo South Programme and the BZK (formerly known as VROM) were disseminated to municipalities. This was done to keep them up to date with developments in the social and rental housing sectors. Additionally, a good practices document on public participation in rental housing was developed to advise municipalities and assist them with public participation processes.

As part of a learning process for municipalities, a benchmarking project was initiated. At the end of the programme, reports were developed for all the participating municipalities on



the status of housing in each municipality. The twinning municipalities (Camdeboo – Winterswijk, Govan Mbeki – Vlissingen, Ekurhuleni – Breda, Emalahleni – Dordrecht, Tshwane – Delft, Langeberg – Rheden, Oudtshoorn – Alphen aan den Rijn) which are part of the Logo South Programme, were capacitated in the fi eld of social and rental housing to develop and implement rental housing projects.

ENERGY EFFICIENCY

An analysis that was conducted on the implications of the implementation of energy effi ciency and demand side management programmes on municipal fi nances, will provide municipalities with an understanding regarding the impact of these programmes on municipal fi nances. The fi ndings of the analysis will assist SALGA to infl uence national policy to address the implications of the implementation of energy effi ciency and demand side management programmes on municipal fi nances.

SALGA Limpopo coordinated a meeting between SALGA and Polokwane Municipality regarding the Swiss Agency for Development and Cooperation Energy Effi ciency Monitoring and Implementation Project. The meeting that was held at Polokwane municipality on 19 April 2011. Polokwane has been identifi ed as one of the pilot municipalities which will participate in the programme. The aim of the meeting was to provide Polokwane municipality with information regarding activities that will be implemented as part of the programme and to solicit the inputs of the municipality regarding these activities.

SALGA Western Cape held an Energy Effi ciency workshop on 11 November 2011 where Ms Helen Davis presented on the Draft Sustainable Energy Bill. The objective of the workshop was to inform municipalities on the objectives of the Bill and its impact on Local Government. At the end of the workshop, knowledge and understanding of the Bill were enhanced and placed the municipality in a better position to plan for the implementation of the Bill.

SALGA Noth West conducted an Energy Effi ciency, Renewable Energy, and Climate Change workshop to raise awareness on the benefi ts of related technologies to promote and encourage

the implementation of renewable energy and energy effi ciency initiatives. The workshop was also used to encourage the development of renewable and environmentally sound energy generation technologies at municipal level.

It deepened an understanding of the implications of climate change for developmental prospects in municipal areas, deliberated on climate change issues affecting local government, and identifi ed priority initiatives that must be undertaken in the municipalities in response to these common challenges for inclusion in municipal plans (IDPs and SDBIPs).

WATER AND SANITATION SERVICES

SALGA, in partnership with Department of Human Settlement, developed a South African Sanitation Policy that encompasses the sanitation value and the strategic policy direction in the provisioning of sanitation.

SALGA Gauteng, together with the Department of Water Affairs, undertook an assessment of three municipalities (one local municipality and two Metros) implementation of the Free Basic Sanitation (FBSan) Strategy. The analysis looked at the fi nance governance, health and hygiene, and how the strategy was being implemented. The outcome of the assessment showed the need for a differentiated approach when support is given to municipalities. There was a need for customised support plans to be developed for the local municipality.

Free State Municipalities were capacitated on the Sanitation Policy through a White Paper Review Workshop held on 21 November 2011. Municipalities have updated indigent policies tailor-made and relevant to their specifi c jurisdiction. Local government is now fully involved in the drafting of the National Sanitation White Paper. The roles and responsibilities of Local Government in Policy are clear as defi ned by Local Government Politicians and Offi cials in the draft White Paper. Free State municipalities were further capacitated on Sanitation Tool and guidelines on 23 and 30 March 2012. The purpose of the workshop was to promote a common approach to the implementation of sustainable sanitations service delivery in municipalities.

In 2008, SALGA submitted a concept paper to the Department of Water Affairs and Forestry calling for the development of a



coherent sanitation policy. This would be done by reviewing the White Paper on Basic Household Sanitation, 2001. This proposal was only effected in 2011 and SALGA Gauteng coordinated the regional consultations on the review of the White Paper. Workshops were held where municipalities were given the opportunity to make inputs into the review process.

SALGA is expected to respond in writing to tariff changes proposed by organs of state that provide bulk services to municipalities as required by the Municipal Financial Management Act. In line with this, the province developed a position with input from Gauteng municipalities which was responding to Rand Water’s proposed tariff amendment for the 2012/13 fi nancial year. The consolidated Gauteng position was submitted to the Department Of Water Affairs as part of the overall SALGA position on tariffs.

SALGA is developing a national water services benchmarking report on the basis of performance improvements and the tier approach. 25 water service authorities participated in the benchmarking indicators. The development of the benchmarking report seeks to set performance benchmarks to encourage peer-to-peer learning.

SALGA is also training water services managers in the 25 WSAs towards achieving the blue and green drop certifi cation. This certifi cation serves as a symbol of confi dence that the water and waste water facilities are managed according to set norms and standards.

SALGA is also developing a discussion document on bulk potable water and sanitation gaps, and the roles and responsibilities to accelerate service delivery. The roles and responsibilities of municipalities with regards to bulk water are being highlighted as a major challenge in the delivery of water services.

A provincial workshop on water conservation and water demand management was held at Nkangala district municipality (Mpumalanga) on the 21 September 2011. The following ten (10) municipalities attended: Dipaleseng; Ehlanzeni district; Emakhazeni; GovanMbeki; Mbombela; Msukaligwa; Nkangala district; Nkomazi; Pixley Ka Isaka Seme and Steve Tshwete.

SALGA Mpumalanga facilitated the appointment of a service

provider by national offi ce to develop a Water Conversation Strategy for Dipaleseng local municipality. A meeting between SALGA, Dipaleseng Local Municipality and the service provider was held on 15 November 2011 to introduce the service provider to the municipality and also to develop a project plan.

The service provider has developed the Water Conversation Strategy which was to be completed by February 2012. The Water Conservation Strategy ensures that there is suffi cient water for use by communities. This improves the provision of water as a basic service. A provincial consultation workshop on the revision of the white paper on Basic Household sanitation was held on 3 November 2011 at Steve Tshwete Local Municipality. The aim of the workshop was to share information on the importance of water conservation and water demand management as well as the performance of the local regulation function in the context of water service delivery by local municipalities.

The workshop was then informed that Dipaleseng local municipality was in dire straits. As a result, the municipality would be provided with support in the development of water conservation and demand management in the current fi nancial year.

North West Municipalities assisted towards the development of Water Conservation and Demand Management Strategies. Focused funding for the Dr. Ruth Segomotsi Mompati District municipality for the roll out of sanitation projects to reduce the backlog was made available. Additional funding is anticipated for the Moses Kotane local municipality. Following adverse outcomes of the blue and green drop assessment and certifi cation processes for the current fi nancial year in the North West, individual WSAs were visited to discuss the outcomes and put comments on remedial measures. The criteria for this exercise entailed looking at the following critical components namely:

• Blue drop criteria

• Sub requirements

• Weightings

• Overall impressions of criteria



SALGA North West continued to be part of the fi nalisation of strategies for readiness of WSAs for the next round of assessments scheduled for 2012. Following the Honourable Minister of the Department of Human Settlements, Mr Tokyo Sexwale, appointing a task team with the mandate to establish the scale of sanitation problem, its nature, geographic spread (urban or rural) and identify irregularities and malpractices in the country, SALGA NW facilitated the MSTT meetings with the identifi ed municipalities for formal meetings with political leaders and offi cials. SALGA North West formed part of the site visits to sanitation project and met with the communities.

ENVIRONMENT MANAGEMENT

SALGA conducted and assessment of local government organisational capacity and the extent to which the fi scal framework makes provision for the environmental function. Municipalities are aware of the capacity required to perform environmental function effectively. The management of information generated during and post an emergency incidents have proved to be a challenge for municipalities.

SALGA and the Department of Environmental Affairs sought to initiate discussions in the form of a workshop on the collation of quarterly statistics for all reported Emergency Incidents in the Province. On 18 November 2011, Free State Municipal offi cials and councillors were trained on the reporting of Section:30 Emergency Incidents according to the National Environmental Management Act of 1998.

On 24 February 2012, Free State Municipalities, SALGA, and the Provincial Department of Environmental Affairs engaged in a workshop to assist municipalities with their environmental plans within their IDPs. It has been an on-going challenge amongst Free State Municipal IDPs that they do not have Environmental Indicators or do not fully comply with legislation as stipulated.

The SALGA IDP managers in municipalities indicated that they receive little support from Sector Departments in terms of assistance with legislative compliance in order to produce credible IDPs as working documents. Municipal IDP Managers have little if any support from Sector Departments for their Sector Plans. SALGA is therefore in partnership with DETEA

as a Provincial Sector Department and a Custodian in the Province for Environmental Policy, Planning, Coordination, Management, and Legislation Enforcement to provide support to its Municipalities in terms of Environmental Indicators in their IDPs. The main outcome of the workshop informed a way forward with a work plan drafted by all stakeholders on how to grant hands-on support to municipalities.

INFRASTRUCTURE SERVICES

The City of Mangaung and City of Cape Town were assisted and advised on its Built Environment Performance Plans. This intervention ensured that the Cities Built Environment Performance Plans comply with the Urban Settlement Development Grant (USDG) framework and that expenditure is aligned accordingly.

Infrastucture and Service delivery assessment reports were conducted for municipalities in the Eastern Cape. SALGA better informed on service delivery mechanisms in EC municipalities, so as to advise municipalities accordingly.

A provincial (Mpumalanga) workshop on Municipal Infrastructure Grant (MIG) was convened in collaboration with the department of Cooperative Governance and Traditional Affairs (COGTA) on 4 to 5 August 2011 at Nkangala district municipality. All 18 local municipalities attended the workshop.

The aim of the workshop was to deal with the progress regarding the MIG spend during the 2010/11 fi nancial year, particularly as at the end of June 2011. The outlook was that, of the 19 municipalities in the province, only three had spend 100 percent of their 2010/11 MIG allocations. These were Ehlanzeni District Municipality, Steve Tshwete and Victor Khanye Local municipalities as of June 2011.

The following were identifi ed as challenges that lead to underperformance by municipalities on Municipal Infrastructure Grant (MIG) projects:

• Poor planning of projects and none availability of master plans Comprehensive Infrastructure Plan (CIP); Service Delivery Budget Implementation Plan (SDBIP); Integrated Development Plan (IDP); and Water Services Development Plan (WSDP).



• Late registration of projects against the MIG allocation.

• Slow municipal procurement processes.

• Poor management and support to the Project Management Units(PMUs).

• Poor fi nancial management of MIG funds by municipalities.

• Lack of capacity within Project Management Units.

• Lack of resources by the PMU staff lead to none monitoring of projects.

• Poor workmanship by the appointed service providers.

• Implementation and none availability of operation and maintenance plans.

Based on the above analysis the workshop also identifi ed a number of interventions that sector department had to be implement in an effort to turn around the situation and these were:

• The Department of Cooperation Governance and Traditional Affairs and relevant sector departments had to continue to assist struggling municipalities to compile their business plans and technical reports.

• District appraisal committees were established to expedite the process of project registration.

• The Department of Cooperative Governance and Traditional Affairs had to deploy Engineers from its Rapid Response Unit (RRU) to provide technical support to struggling municipalities.

As a way forward, the workshop also encouraged municipalities to play their respective roles in ensuring that the MIG spend improves:

• Municipalities must improve the identifi cation of projects through the Integrated Development Planning (IDP) processes.

• Technical reports and Business plans for all unregistered identifi ed projects to be implemented in the 2012/2013 fi nancial year should be submitted for evaluation and approval.

• District capacity should be utilised to enhance technical capacity in local municipalities.

• Municipalities should fast-track their procurement procedures of appointing service providers to implement the approved projects in order to expedite expenditure and service delivery.

• Municipalities must improve working conditions to attract and retain technical staff.

• Municipalities should utilise the fi ve percent of MIG allocation to provide for the procurement of additional technical services.

• Municipalities should fi ll all the vacant posts in the Project Management Unit (PMU).

• All municipalities that have not spent 100 percent of their 2010/11 fi nancial year allocation need to apply for roll-overs to National Treasury by 31 August 2011as outlined in Municipal Finance Management Act (MFMA) circular number 55.

• PMU business plans be approved based on municipal performance on the MIG programme.

TRANSPORT

SALGA Limpopo developed a draft Discussion Paper on Municipal Traffi c License Agency Fees. Presentation of the draft Discussion Paper on Municipal Traffi c License Agency Fees took place at the PEC Lekgotla, Working Group Meeting, as well as the PEC Meeting. SALGA Limpopo engaged NERSA on the distribution of licenses by municipalities. A workshop was held with Limpopo municipalities.

The objective of these initiatives was to respond to issues that affected municipalities, in particular the Municipal Traffi c License Fees and the distribution licenses. The



views of Local Government in the province were expressed and communicated to the relevant authorities. As far as the workshop was concerned, municipalities were capacitated and empowered.

Structured engagement with the District Municipalities and the Eastern Cape Provincial Department Of Transport was held to deliberate on the objectives of the workshop. Municipalities were engaged to solicit information. Training material was developed based on the presentation from the following stakeholders: National Department of Transport, Provincial Department of Transport, Provincial Department of Roads and Public Works, and SABITA.

The purpose of the engagement was to raise a profi le and build a good relationship between SALGA Eastern Cape and the Department of Transport. It was to update the Cllrs as well as the offi cials on transport issues.The outcome of the engagement was that SALGA will now be attending the Minmec and other structures within on transport.

A National Land Transport Act workshop was held on 18 October 2011 at the SALGA Western Cape offi ces. The objective of the workshop was to inform municipalities on the objectives of the Act and its impact on Local Government. At the end of the workshop, the municipalities’ knowledge and understanding of the Act was enhanced. They are now in a better position to plan for the implementation of the Act.

As a member of the provincial transport planning forum in good standing, SALGA Noth West has been jointly convening engagement sessions with the aim of establishing and adopting terms of reference. This is to deliberate and come up with a road map towards the implementation of a rural transport strategy, integrated transport plans, and strategies to establish a public transport inspectorate for the Province.

Other important matters was the identifi cation of the upgrading of the Mafi keng International airport, development of a Regional Aviation Safety Strategy (SACAA), and the fi nalisation of Air Traffi c Management Roadmap (ATNS). All these identifi ed projects were presented during the foreign investors conference for potential Public Private Partnerships (PPPs) arrangements.

ELECTRICITY

A meeting between SALGA, NERSA, and the affected Mpumalanga municipalities was held on 24 June 2011 where the matter regarding the granting of electricity distribution licences to Bushbuckridge, Dr JS Moroka, and Thembisile Hani local municipalities was discussed.

The meeting came up with steps that the municipalities would have to follow the process of applying for the electricity distribution licences. Letters advising the three municipalities on steps to be followed when applying for distribution licences and advising them to pass council resolutions were sent to them.

A provincial (Mpumalanga) workshop on farm dweller electrifi cation was held at Steve Tshwete local municipality on 27 August 2011. The following ten (10) municipalities attended: Chief Albert Luthuli; Dr JS Moroka; Ehlanzeni; Govan Mbeki; Mbombela; Msukaligwa; Thaba Chweu; Thembisile Hani and Steve Tshwete.

The aim of the workshop was to discuss:

• The current processes and practices which municipalities were following in the execution of municipality funded electrifi cation projects, which were inconsistent with the approved Eskom processes. These inconsistencies led to safety risks on Eskom networks; delays in energising completed projects and poor service to newly electrifi ed customers. The understanding in sharing the approved municipality funded and executed electrifi cation project process and practice with all stakeholders

• The establishment, through the participation of all stakeholders, of a consistent approach to monitoring and evaluation of the Integrated National Electrifi cation Programme (INEP).

• The understanding of the approach that within the current framework only municipalities with distribution licence issued by NERSA are entitled to the electrifi cation subsidy administered by the Department of Energy (DoE).



• The understanding that municipalities without the distribution licence are expected to be serviced by Eskom as an implementing agent of DoE for electrifi cation programme.

• The DoE is responsible for planning and funding and will manage municipality funded and executed electrifi cation projects.

• All assets created with electrifi cation funding are ring-fenced and belong to the state.

• The DoE as a sector leader will continue to lead the electrifi cation programme and any entity that makes funding available for electrifi cation must apply to the Minister for authorisation.

• The asset created will be included as part of the electrifi cation assets currently managed by Eskom on behalf of government

• The DoE and Eskom to discuss the issue of the 80 percent incentive of the total project cost that is charged by Eskom to Farm owners since it is not part of the existing policy.

The outcome of this engagement was the sharing of information necessary to be supplied by those municipalities who aspired to electrify certain areas within their jurisdiction, but currently being supplied by Eskom. The following criterion had to be followed:

• Approval in writing from the DoE Minister prior to electrifying within Eskom supply area.

• An undertaking from Eskom that there is capacity to accommodate the planned connections and that the created asset will be maintained and operated under its licence conditions

• A Municipality Council Resolution indicating that the created assets will be handed over to Eskom for operation and maintenance as well as revenue collection

All assets to be created, must comply with minimum Eskom standards for electrifi cation projects:

• An indication in writing that all designs as well as technical details have been approved by Eskom

• The municipality identifi es the town or village to be electrifi ed and submits a formal application letter to Eskom Electrifi cation Planning Department.

• The fi eld investigation and verifi cation of application will be undertaken by Eskom Electrifi cation Planning Department

• Eskom will conduct network capacity assessment and provide the municipality with a written response on availability or non-availability of the required capacity

• Where capacity is confi rmed to be available, the municipality will be requested to submit the proposed electrifi cation project detail design in line with Eskom standards

• The proposed detail design will be taken to the Technical Evaluation Forum (TEF) for approval

• Where the design is approved by TEF, an invoice of seven percent of the total project cost will be generated and payable by the municipality. This amount is to cover for the project overheads – administration, investigations, designs, quality inspections, and so on.

• On receipt of the required payment, a site handover/kick-off meeting will be organised with all stakeholders

• Execution of the planned electrifi cation connections by the municipality

• The municipality will submit electrifi cation connections data in the prescribed format (PCS fi le) to Eskom for verifi cation, sign-off, and updating of customer information systems (CC&B)

• An Eskom appointed Clerk of Works (COW) will conduct quality assessments on the project and will, when satisfi ed, sign-off the handing over certifi cate



• On receipt of signed-off handing over certifi cate by COW and PCS fi les, an outage to energise the electrifi cation will be conducted

• Implement the process on all municipality executed electrifi cation projects

• Ensure that all stakeholders are conversant with all the requirements

• Individual municipalities indicated their challenges regarding electrifi cation at farms

• AgriSA presented and indicated that 11 percent of black farmers are on their database

• AgriSA to get back to the meeting regarding their contribution in terms of infrastructure funding

• Delegates expressed their views regarding the DoE farm dweller policy as well as inputs regarding review of the policy itself

• There was an agreement in place which outlined the process to be undertaken with regard to farmers not cooperating in terms of services to be provided to farm dwellers (Agreement to be traced)

• The main issue was the political willingness from farm owners.



PRIORITY OBJECTIVE 3:SOCIAL COHESION

MAINSTREAMING OF TRANSVERSAL (E.G. GENDER, YOUTH, CHILDREN, HIV/AIDS, ETC.) SOCIO-ECONOMIC ISSUES

During 2011/12, SALGA focussed its programmes and initiatives towards achieving two primary outcomes:

1. Local government capacitated to strengthen social cohesion in communities; and

2. Local government supported to implement and monitor the Millennium Development Goals (MDGs)

In contributing to the fulfi lment of the role of SALGA, the directorate has played a largely supporting and advisory role to municipalities. It has also implemented initiatives to build and sustain the capacity of municipalities to make decisions on and respond to community needs in the areas of social development and cohesion. The Millennium Development Goals provide a strong backdrop for the activities of the directorate and of local government as a whole. The imperatives of the eight MDGs also directed the strategic focus for the directorate in the 2011/12 fi nancial year in the following areas:

• Poverty eradication;

• Gender mainstreaming; and

• HIV and AIDS mainstreaming.

Although all eight goals are relevant in the social and community development arena, the two strategic outcomes of the directorate address the three aforementioned areas and the eight MDGs. In summary, the following achievements have been made in the 2011/12 fi nancial year:

1. Local government capacitated to strengthen social cohesion in communities

• A Human Development Framework and Guidelines have been developed (and approved by the NEC), which aim to guide municipalities on best practices in implementing programmes on human development;

• Provincial workshops have been held on both the MDGs and the Human Development Framework and

Guidelines in an effort to capacitate municipalities and enable them to respond to the MDGs in a cohesive and effective manner. This would also enable municipalities to develop and implement effective Human Development Strategies;

• SALGA has made advances in defi ning a local government position in the rendering of sport and recreation services and facilities; and has represented local government in the solidifi cation of a position on the assignment of executive functions in relation to the provision of community library services.

• The directorate has facilitated the support of the NEC for the phasing in of Community Safety Forums and the strengthening of cooperation between Municipal Police Services and the South African Police Service (SAPS).

2. Local government supported to implement and monitor the Millennium Development Goals (MDGs)

• SALGA has entered into partnership with the Department of Rural Development and Land Reform on the War on Poverty Programme. This programme seeks to strengthen municipal responses to the challenge of poverty and build capacity by supporting municipalities to establish war rooms to adequately implement anti-poverty programmes.

• SALGA has partnered with the Gauteng Department of Local Economic Development under the auspices of the Y-AGE Programme to grow the participation of local government in youth entrepreneurship, poverty eradication, and job creation.

• The directorate has continued to provide support to local government in strengthening governance systems on transversal issues; capacity building and knowledge creation in HIV & AIDS; Children; Youth Development; and Gender Mainstreaming.



1. LOCAL GOVERNMENT CAPACITATED TO STRENGTHEN

SOCIAL COHESION IN COMMUNITIES

1.1. Community Libraries and Sport and Recreation

The execution of the functions of local government is underpinned by an effi cient fi nancial system. However, it has emerged that the funding models for a number of functions residing at the local government level have compromised the effi cacy with which such functions are executed.

As such, the directorate has sought to advocate, on behalf of local government, for the revision of funding models and mechanisms of their implementation for functions relating to Community Libraries and Sport and Recreation. Although the revision of legislative and fi nancial mechanisms is a potentially drawn out process, the directorate has developed positioning papers which, in its fulfi lment of its advisory role, seek to present a position that will be most conducive to enabling local government to fulfi l its mandate in Libraries and Sport and Recreation with adequate fi nancial capacity and in the most effi cient manner.

SALGA Northern Cape, in consultation with the Provincial Department of Sports, Arts & Culture (Library Services Unit), conducted district consultations meetings throughout the province. The core business of the consultations looked at the

following: Library Grants, Relations and support for municipal libraries, and the establishment of District Library Forums. These consultations took place from 05 to 09 September 2011.

1.1.1 SALGA Games:

The purpose of the games is to foster social cohesion between offi cials and councillors, as well as between municipalities. The impact of the games is to promote the culture of healthy lifestyle and to have a workforce that does not require sick leave at all times. The games also assist municipalities to acquire more facilities that may be used for other events.

The SALGA Games were hosted as follows:

• SALGA Gauteng on 21 October 2011.

• SALGA Northern Cape from 25 to 26 November 2011

1.1.2 Libraries

SALGA North West held a consultative meeting with municipalities to make inputs on the South African Community Library and Information Service Bill, 2010 on 14 September 2011. As a result of the meeting there is improved understanding of powers and functions in relations

Fully Achieved5998%

PO3. Social Cohesion - Transversal (gender, youth, children, HIV/AIDS) social-economic issues

mainstreamed.2011-12 FINAL PERFORMANCE

Not Achieved12%



to library services between the Provincial Department and Municipalities.

1.2. Knowledge Generation and Capacity Building

The SALGA Community Development Directorate has initiated a partnership with the University of South Africa in an effort improve the production and dissemination of the latest research to its members.

In 2011/12, the partnership allowed SALGA to produce three seminary human development research documents. SALGA, in partnership with UNISA, hosted three seminars in 2011/12 under the theme: Local Government Going Beyond The Basics.

The seminars were attended by 50 delegates from local government and provided for rigorous debate and deliberations. SALGA has facilitated the process for reviewing the funding model for sport and recreation infrastructure, through the initiation of dialogue between key stakeholders (municipalities, Department of Sport and Recreations, SRSA). SALGA has fulfi lled its advisory and advocacy roles for local government by making sure that South Africa’s fi rst National Sport Plan maps out a programme for local government and takes into account municipal challenges.

SALGA’s Community Development Directorate has initiated a series of inter-municipal learning workshops aimed at relevant municipal concerns. These would include:

• A learning Workshop on best practices of metropolitan municipalities in human development - 15 September 2011

• SALGA and SAPS Community Safety Forum Workshop on 28 to 29 March 2012 to capacitate local government on Community Safety Forum Policy Guideline developed, and to develop, a draft rollout action plan

• Three round table/seminars held on 21 February 2012 where the Local Government-CSO Network, the local government draft framework for addressing cemetery shortage, and the role of local government in poverty eradication were all discussed

• SALGA hosted a seminar on community libraries on 22 September 2011 with the objective of creating a platform for municipalities to engage on the Draft Bill and the role in funding libraries.

• SALGA held a consultative workshop on 16 September 2011 on Sport infrastructure funding

• On 5 July 2011, SALGA Free State in partnership with Centre for Economic and Governance on AIDS in Africa (CEEGA), trained 20 offi cials in eight municipalities on HIV and AIDS software programme that tracks spending on AIDS budget.

• On 8 to 9 December 2011, SALGA Free State held a capacity building workshop in partnership with women sector of South African National AIDS Council (SANAC). The purpose of the workshop was to develop an understanding of women’s issues in the HIV and AIDS National Strategic Plan 2012-2016. This would be done in preparation of the local AIDS plan that municipalities are supposed to develop from 2012/13. 23 delegates from four District Municipalities and one Mangaung Metro Municipality attended

• The Free State SALGA held an integrated mainstreaming workshop on transversal issues (Gender, Children, Youth, Disability, and HIV and AIDS) from 7 to 8 March 2012 wherein 23 councillors and offi cials attended. The purpose of the workshop was to build an understanding on key areas of mainstreaming within the Local Government sphere. The outcome of the workshop assisted in developing the proposed job description for focal persons dealing with transversal issues.

1.3. Disaster Risk Management

1.3.1 Disaster Risk Management Training and Capacity Building:

SALGA recognised that councils and local government offi cials lacked training in disaster management. Therefore, the SALGA disaster risk management training programme was initiated and various partners and universities came on board to target 100 councillors/offi cials to be trained by March



2012. This training also targeted key SALGA offi cials. In total, 188 councillors and offi cials were trained, with the following provincial disaggregation:

• Polokwane (Limpopo) – 24 councillors and offi cials were trained

• Kimberly (Northern Cape) – 16 councillors and offi cials were trained

• Springbok (Northern Cape) – 22 councillors and offi cials were trained

• Bredasdorp (Western Cape) – 13 councillors and offi cials were trained

• Witbank (Mpumalanga) – 16 councillors and offi cials were trained

• Nelspruit (Mpumalanga) – 20 councillors and offi cials were trained

• Clarens (Free State) – 23 councillors and offi cials were trained

• Kuruman (Northern Cape) – 16 councillors and offi cials were trained

• Upington (Northern Cape) – 19 councillors and offi cials were trained

• Nelspruit (Mpumalanga) – 20 councillors and offi cials were trained

• Potchefstroom (North West) – 18 councillors and offi cials were trained

• Mafi keng (North West) – 19 councillors and offi cials were trained

Final Participant Totals: 189 (this amounts to 74 percent of total respondents who expressed an interest to be trained when the circular was sent to all members).

Training in KZN was scheduled for 09 to 11 May 2012 for 23 participants in Ulundi. Two other training sessions in Pietermaritzburg took place on 22 to 24 May 2012 and 29

to 31 May 2012. SALGA –KZN offi cials are to be part of this training.

There was also a need to ensure that the learning products were accredited. This has been done on NQF Level 6. Through the funding sourced by the University of the North West, SALGA members received discounted fees for attending, resulting in a high response rate.

The training material will, in 2013/14, also be made available through open source technology. This will allow each member municipality to develop accredited disaster management training material and signifi cantly cut down on training costs as it will be able to conduct training in-house.

1.3.2 mproving capacity for responses to and planning for disasters:

In the quest to improve municipal responses to disasters and to build capacity in local government for planning for and the mitigation of incidences of disaster, SALGA has in the 2010/11 and 2011/12 fi nancial years conducted detailed studies and analyses of the status of disaster risk management in the municipalities of South Africa.

Based on the fi ndings of this enquiry, it emerged that there is a persistent need for capacity building in both conceptual and practical areas of disaster risk management. In light of such fi ndings, the directorate rolled out a training programme for both councillors and offi cials. This has seen 250 people being trained to date. The directorate intends to continue the capacity building initiative in the coming years with a particular focus on scenario-based planning.

As part of the advocating campaign towards compliance with Fire Protection Act, SALGA Free State established a Technical Task Team to assist in capacitating municipalities on disaster and veldt fi re management issues (established on the 24 June 2011).

SALGA North West worked with municipalities to conduct an assessment on Fire Safety for Old Age Homes and Early Learning Centres. The outcomes report was shared with municipalities on 14 February 2012. The assessment has led to engagements with the department of Social Development,



for purposes of ensuring that Fire Safety standards are met in all registered ECDs and Old Age Homes.

SALGA Limpopo conducted a workshop on 27 March 2012. The objective was to improve the knowledge and understanding of Disaster Risk Management, which is not purely a line function responsibility. This is an activity that is relevant to all spheres of government and requires an integrated, multi-sectoral, multi-disciplinary approach aimed at reducing the risk associated with hazards and vulnerability.

The workshop was attended by councillors, municipal offi cials, and CoGTA. Mopani district municipality shared the lesson with member municipalities on how they managed to respond to the two planes that crashed on 14 August 2011.

2. LOCAL GOVERNMENT SUPPORTED TO IMPLEMENT AND

MONITOR THE MILLENNIUM DEVELOPMENT GOALS

(MDGS)

2.1. Human Development and Poverty Eradication

SALGA seeks to ensure that its members are capacitated. To this end, provincial workshops on the Human Development Framework and Guidelines were held at provincial level:

• Mpumalanga, September 15, 2011 at Nkangala District Municipality

• North West, September 29, 2011 at Dr Kenneth Kaunda District Disaster Management Centre. The MDG event has led to establishment of working relations with Stats South Africa which is envisaged to benefi t municipalities by their data being verifi ed by StatsSA. Municipalities are also aware of the importance of reporting on the delivery of MDG.

• North-West, September 29, 2011 District Disaster Management

• Free State, October 11, 2011 at Mangaung Metropolitan Municipality

• Gauteng held on February 14, 2012 in Pretoria.

• Western Cape, October 13, 2011 at Worcester Council Chambers

• Eastern Cape, October 18 at Lukhanji Indoor Sports Complex (follow-up meeting has been planned for March 2012)

• KwaZulu-Natal, October 29, 2011 at Hillcrest

• Limpopo workshop was held on February 14, 2012 in Pretoria.

The SALGA Community Development Directorate has initiated a partnership with the Department of Rural Development and Land Reform, through the War on Poverty Programme, in order to improve human development and poverty eradication programmes of municipalities. In 2011/12, the partnership allowed SALGA to produce the fi rst baseline document for human development in local government, the Human Development Framework. The resources and capacity of the Department of Rural Development and Land Reform allowed for SALGA to facilitate workshops with SALGA members provincially on the framework. In 2012/13 and 2013/14, the partnership will provide SALGA with R6-million to ensure that municipal plans are developed and capacitated.

SALGA Free State, in partnership with Department of Public Works and Social Development, made EPWP presentations to Tokologo and Mohokare Municipalities on 7 June 2011 and 9 March 2012 respectively with the view to encourage both municipalities to register social sector projects on EPWP. Subsequent to the presentation, Tokologo registered drilling and development of boreholes (one in Boshoff and the other in Hertzogville) which created 19 jobs for residents of Tokologo.

Of the 19 jobs created by the project, two (2) benefi ciaries were women. Mohokare Municipality has identifi ed projects following the presentation in March 2012. The projects are in the process of registration. EPWP is one LED strategy that seeks to improve the socio-economic status of women, youth and people with disabilities, alleviate poverty, address the MDG on the eradication of poverty, and input on the national agenda of fi ve million jobs to be created by 2015.



SALGA North West collaborated with the Department of Social Development to hold quarterly meetings that ensured that all Districts and Local Municipalities establish War Room on Poverty Forums. 90 percent of Municipal Poverty War Rooms are functional and reporting on Poverty Eradication Interventions.

2.2. Enhancing governance capacity in gender mainstreaming

in Local Government

In its effort to ensure a capacitated and responsive local government, the directorate has embarked on developing a Work Plan for the SALGA Women’s Commission (SWC). This was approved by the national working group, which was established in the 2010/11 fi nancial year.

The work plan for the SWC seeks to ensure resonance between the operations of both the provincial and national chapters of the SWC. This willb e done by guiding the commissioners on strategic activities and engagements, articulating key outcomes, and identifying the desired results areas necessary for moving the local government sector to an inclusive, capacitated, and gender-balanced state.

SALGA Gauteng convened a Women’s Commission workshop on 22 August 2011. The purpose was to develop a fi ve-year Program of Action for the Commission, report on the outcomes of the local government elections in relation to 50/50 representation of women, and launch the Gender Based Violence indicators research fi ndings conducted by Gender-links and Gender Justice Alliance. It was clear from the discussions that the country has come a long way since its fi rst local government elections in 1995. SALGA was able to take stock of what has been achieved in terms of women representation and infl uence that Local Government has had in governance structures.

SALGA Northern Cape hosted its Women’s Summit on 26 November 2011 with 87 participants in attendance. The summit coincided with the offi cial opening of the 365 Days campaign of no violence against women, people with disabilities and children. The NC House of Traditional Leaders was also invited in to give support to municipalities especially to ensure that rural women are empowered to access traditional land.

Furthermore, SALGA Northern Cape hosted a roundtable discussion workshop with the Women’s Commission on 16 February 2012. The purpose was to report back on the outcomes of the WIPLGS 2011 as well as to pave the way for the WIPLGS 2012. The workshop was also to be used to elect the new Chairperson of the Commission. This initiative was done in partnership with the provincial Commission on Gender Equity.

SALGA Eastern Cape, through the drafting of a Concept Document for Rural Women, including medical male circumcision, uKuthwala and teenage pregnancy, supported municipalities that participated in the sitting of Women in Traditional Leadership (EC House of Traditional Leadership Chamber in Bhisho). This was done to encourage Women in Traditional Leadership to play their roles effectively in the development of traditional communities situated in poor rural communities.

SALGA Mpumalanga facilitated the establishment of the Special Programmes / Transversal Coordinating Forum on 16 August 2011 which is a forum that brings all stakeholders dealing with transversal issues to share plans and to partner in advocating and implementing transversal programmes at municipal level.

SALGA Mpumalanga developed guidelines on mainstreaming of transversal issues and a Community Development Manual for Councillors to give support to all municipal offi cials and councillors dealing with community development issue. Both documents were workshopped from 6 to 7 December 2011 with municipalities.

The aim of the Guidelines on Mainstreaming Transversal Issues is as follows:

• To assist municipalities in understanding the concept of mainstreaming of all transversal/special programmes within municipal programmes.

• To defi ne the context for the mainstreaming of transversal/special programmes in local government, highlighting specifi cally the Integrated Development Planning process.



• To outline, in detail, mainstreaming activities in the different components of the transversal/special programmes. For instance, mainstreaming youth, gender, disability, and HIV and AIDS.

The aim of the Community Development Manual for Councillors was to to appropriately equip MMCs with knowledge and expertise on areas of community development.

SALGA Free State established Provincial SALGA Women’s Commission on 9 March 2012. The structure will oversee the development of gender policy, strategies, and programmes in the province.

SALGA North West hosted the following:

• Women in Local Government Summit on 12 to 13 October 2011 in Mahikeng. This provided the platform for women councillors to share information and challenges. Information on the representation in Local Government was also shared with municipalities with a view to continue with the 50/50 campaign. SALGA women commissioners were elected at the municipalities and the provincial structure has been put in place.

• Provincial Workshop on Gender Machinery and Mainstreaming of other Transversal Issues was held on 7 to 8 September 2011 at Ramotshere Moiloa Local Municipality. The Newly appointed special programme managers benefi ted from the Capacity Building Workshop.

• Provincial Workshop on Transversal Issues for Councillors was held on 26 to 27 March 2012 at Moses Kotane Local Municipality. Councillors were exposed to understanding the concept of mainstreaming and their role of providing oversight in this regard.

SALGA Limpopo celebrate Women’s Month on 14 September 2011 by facilitating the exchange of experiences on challenges faced by elected women leaders and managers in local government. It came up with strategies for strengthening its role and leadership capacity to effectively deliver service delivery to create an environment where women councillors

can share issues pertaining to municipalities and other issues related to their empowerment (women caucuses). It would also provide an environment to assess whether the 50/50 campaign had made an impact in the 2011 elections.

On 14 March 2012, SALGA Limpopo convened a workshop with municipalities to address gender-based violence and HIV. GBV, assault, rape, assault with intent to do grievous bodily harm are social actions that have been shown to place women and children at particular risk to HIV infections. Therefore, for municipalities to deal with GBV and HIV, they need to have a multi-sectoral approach. This means that all relevant stakeholders must come together in order to understand the response to epidemic.

Municipalities also need to take into consideration the National and Provincial strategic Plan for HIV, STI and TB 2012 to 2016. This states that the main strategic objective is ‘Social and Structural Approaches to HIV and TB Prevention, Care, and Impact.’

The sub-objectives read ‘Mainstream HIV and TB and its gender- and rights-based dimensions into the core mandates of all government departments and all other sectors of the Provincial Aids Council - Ensure implementation of gender based violence action plans.’

BEST Practice model-Capricorn Municipality: The district became one of the participants at the summit and awards under institutional good practices. It received the second position in 2010 and 2011. The award made SALGA to be one of the Centres of Excellence that is committed to institutionalise gender mainstreaming within their communities. The district managed to undergo and fi nished the six stages of Centre of Excellence.

SALGA Limpopo hoped that the Men’s Indaba which took place on 10 February 2012 generated awareness and mobilised and strengthened men’s formations within municipalities. It was hoped that the indaba would move their responses towards gender equality, masculinity, and patriarchal tendencies, Gender Base Violence and HIV and Aids and the effects it has on the society. Men also believed that the indaba would assist in laying a foundation for a sustainable future programme regarding men’s issues in all municipalities.



2.3. HIV and AIDS Mainstreaming

The directorate has continued its ongoing endeavour of entrenching capacity in local government for a sustained response to the scourge of HIV and AIDS. To this end, SALGA continues to roll out capacity-building workshops on the HIV and AIDS Handbook and completed the rollout in Gauteng province which had not been covered in the previous fi nancial year.

SALGA Gauteng hosted an HIV and AIDS learning event on 23 to 24 November 2011. The purpose was to roll out the HIV and AIDS handbook that would provide guidance to municipalities on how to respond to HIV and AIDS. The workshop enjoyed attendance from participants drawn from Randfontein and Westonaria local municipalities with the former having the highest attendees. In total, 42 participants attended the workshop. Unofrtunately, the workshop did not reach the targeted attendees of senior management. Therefore, separate workshops need to be arranged for this category of municipal employees in the two municipalities.

SALGA Free State, in partnership with the Department of the Premier, Provincial Departments of Health, and CoGTA, established and re-launched the AIDS Councils (Xhariep District AIDS Council on 6 October 2011, 4 December 2011 Moqhaka Local AIDS Council, 8 December 2011 Tswelopele Local AIDS and Matjhabeng and Mantsopa Local AIDS Council). Dihlabeng, Nala, Maluti a Phofung, Mohokare and Matjhabeng Local AIDS Councils were also launched and given induction by ETU on Roles and Responsibilities of AIDS Councils.

SALGA North West in partnership with the Provincial Department of Health and the Provincial Council on AIDS (PCA) collaborated to host the 2011 World AIDS day on 01 December 2011 in Boikhutso Township in Ventersdorp (Dr Kenneth Kaunda District). SALGA developed a declaration which was signed by MEC’s and Mayors recommitting themselves to the fi ght against HIV/AIDS.

Furthermore, in January 2012 four (4) municipalities in the province were guided on the establishment and functionality of Local AIDS Council (Mamusa LM, Ratlou LM, Kgetlengrivier LM and Maquassi Hills).

SALGA Limpopo in partnership with the Offi ce of the Premier and Department of Health convened a learning event where 40 people which are municipal managers, mayors and HOD and other offi cials attended the event on 2 March 2012.

The objective of the gathering was to ensure that all municipal leaders serving in the AIDS Councils and AIDS Council Technical Committees are capacitated about their roles and responsibilities in line with the Limpopo Provincial Aids Council Framework, regarding the management and mainstreaming of HIV, AIDS and TB in the Province. The following district managed to re-estblish their aids council in line with the frame are Capricorn and its municipalities, Vhembe and its municipalities and Sekhukhune and its municipalities.

During the event, SALGA managed to present the Provincial Strategic Plan for HIV, STI and TB of 2012 to 2017 and also Operations of KZN Provincial AIDS Council and Operation Sukuma Sakhe -The origin of Masisukume Sakhe, which is the motto on the crest of the Provincial Government of KwaZulu-Natal, is taken from the Prophet Nehemiah 2:18, where he yearns to rebuild a city that has been destroyed.

SALGA Limpopo had also support Greater Tubatse and Musina Municipality with the establishment of their Aids Council because when people with HIV and tuberculosis are constantly on the move, it becomes extremely diffi cult if not impossible for them to remain adherent to treatment, especially when they are initiated in another country and carry no records with them when crossing borders.

People should not forget that Musina Municipality is in the focus of migrate activity and thus should be given attention in terms of accommodating cross border elements/challenges that might rise. Tubatse Municipality is also affected with the new development hence we know that people will be migrating from other places to Tubatse looking for better life. According to Sishana et al., 2005; Williams et al., 2000, HIV incidence and prevalence are particularly high in places where migrant workers mix with poor host communities, for example in the close vicinity of mining operations.



2.4. Youth Development: Economic Development and Entrepreneurship

Youth Development has emerged as a critical factor in the advancement of South Africa’s socio-economic growth and development path. In fulfi lling the role of SALGA as a base of support and advice to member municipalities, the Community Development directorate has in the 2011/12 fi nancial year, sought to establish strategic partnerships with organisations that have emerged as key actors in driving the youth development agenda.

SALGA, in partnership with Youth and Graduate Development Programme (Y-AGE), hosted a municipal consultative conference on youth economic development and entrepreneurship. The aim of the consultation was to bring together local government, national government departments, civil society organisations, the private sector and other interested groups to engage in constructive dialogue towards progressing youth development in the municipal space.

The Y-AGE Programme is an initiative that is based on the principle of augmenting and enhancing government efforts to make youth entrepreneurship and job creation efforts realisable with the ultimate interest of seeing young people participating in the mainstream economy.

The programme seeks to encourage role players in youth development, entrepreneurship, supplier development, Small, Medium and Micro Enterprise (SMME) funding, and so on to share resources and information to make youth development initiatives effective and sustainable.

The objectives of the conference were as follows:

• To facilitate a National Consultative Conference on youth economic development and entrepreneurship to municipalities.

• To present a multi stakeholder approach to enhance youth development and unlock local economic development

• To seek collaboration from municipalities to provide opportunities and support to local entrepreneurs.

• To promote economic diversifi cation and entrepreneurship development in South Africa

• To promote public, private partnerships among small and medium enterprises.

This and ongoing interactions with Y-AGE, the National Youth Development Agency and other stakeholders has placed SALGA at the centre of coordination efforts between role players in the fi eld of youth development and municipalities; and thus positioning SALGA as a conduit of information and learning to municipalities, thereby supporting municipalities to better integrate youth development in planning and programming.

SALGA Northern Cape held its provincial youth conference from 22to 23 March 2012 in Upington in partnership with Y–AGE and Siyanda District. Approximately 105 youth representatives from various structures attended.

The conference sought to explore areas of collaboration and cement systematic relationships among various role players. This was in order to align the strategy with the new policy imperatives and development since the development of the strategy in considering that the strategy was developed in 2007 as well as to establish functional youth units within municipalities.

Discussions between the NYDA and SALGA led to a decision to explore ways of cooperation, harmonisation, synergy and alignment in terms of both policy and action. A decision was taken to have a workshop at which exploratory discussions could be had agreements reached on areas of shared concern in the area of youth development. It was agreed that SALGA should host roundtable workshop on youth development.

The objectives of the workshop were set as:

• To jointly defi ne and have a common understanding on youth development and the role of local government in promoting the development of youth;

• To provide an opportunity for stakeholders to be informed and to discuss existing policy imperatives and strategies around youth development;



• To explore areas of collaboration and forge working relationships in advancing youth development within local government; and

• To develop a series of ‘Agreements on Action’, informed by the roles and responsibilities of the various stakeholders.

The SALGA Limpompo in partnership with Y-Age convened a Provincial Youth Economic Empowerment Consultative Conference on 7 to-8 March 2012 at Bela Bela Aventura at Waterberg District with 128 delegates.

The consultative conference was informed by the resolution taken at conference held national in December 2011 that there is a need to consult with municipalities on rolling out the youth programme in different municipalities and addressing economic development needs in line with creating entrepreneurial activity in the province and ensuring that the programmes of youth are integrated in the day to day activities of municipalities.

The consultative conference were attended by councillors and offi cials that are responsible Local Economic Development and Youth issues in the Municipalities, Department of Economic Development and other sector department.

2.5. Children

One of the functions of SALGA is to provide support and advice to member municipalities wherein this encompasses policy analysis, research and monitoring as well as knowledge exchange in order to assist them to effectively execute their mandate.

The directorate, in partnership with UNICEF, hosted the roundtable meeting on early childhood development. The purpose of providing a platform for various stakeholders to amongst others; jointly defi ne and create understanding on the Early Childhood Development (ECD) programme, to explore areas of collaboration, enhance coordination and forge partnerships.

The meeting served as a learning hub where there was dialogue and exchange of information on how to advance

the implementation of ECD programmes among various role players. The objectives of the roundtable were:

• To assess mechanisms towards bridging the gap between policy and practice, thus promoting effective coordination, implementation and accountability

• To provide a platform for stakeholders to engage and articulate their concerns as well as outline possible areas of support and coordination

• To consult with stakeholders who are working in the sector with a view of recording successes, challenges, gaps and sharing good practice

• To engage in joint participatory planning as stakeholders (including civil society organisations, NGOs and CBOs) who are often in touch with the current reality in communities

The programme consisted of a combination of presentations from key stakeholders involved in the implementation of ECD including open discussions. Overall, the programme was designed to create a platform for deliberations that will begin to formulate recommendations in response to issues and challenges facing the implementation of ECD programmes for local government. In this way, SALGA has begun to defi ne a position in which it will be able to effectively lobby for local government.

SALGA Eastern Cape supported Amathole DM in establishing the District Children’s Technical Committee for the already-established Children’s Rights Advisory Council, and to draft a District Outreach Programme on Child Traffi cking/Child Protection Mechanisms; Advocacy and Policy Development and Analysis; Early Childhood Development (ECD) and Orphans and Vulnerable Children 9O VCs); and Research and Information-sharing.

SALGA Limpopo hosted two Children’s Camps during December 2011 in partnership with Childline. The children’s camp was graced by 10 Limpopo municipalities with 47 children attend the event where they were dealing issues of service delivery and life skills.



Free State SALGA in partnership with United Nation on Children’s Fund (UNICEF), held a workshop from 20 to 21 March 2012, wherein 17 Councillors and Offi cials attended. The purpose of the workshop was to create an understanding on the Convention on the Rights of the Children and the role of the Local Government in the realization of such rights. The focus was more on Early Childhood Development and the role of Local Government.

2.6 People with disabilities

SALGA Eastern Cape supported Eastern Cape municipalities (especially DMs and the two Metros) to participate in discussions aimed at establishing the Disability Reference Group with stakeholders such as the Eastern Cape Disability Economic Empowerment Trust (ECDEET), the SA Human Rights Commission, CGE . Further, SALGA Eastern Cape provided support to Matatiele LM by facilitating Disability Leadership Skills and Economic Empowerment Workshop to mainstream and integrate disability issues into the municipal budget and IDP.

SALGA Northern Cape supported municipalities by hosting a two day capacity building workshop on the Disability Framework from 19 to 20 March 2012.The Offi ce on the Status of Persons with Disabilities (OSPD) and Disabled People South Africa (PDSA) formed part of the discussions and highlighted their roles and responsibilities in the mainstreaming of disability programs. The Disability Audit Results 2012, were also shared with the member municipalities with the aim of promoting disability friendly municipalities, proper planning and budget.

SALGA North West conducted a physical assessment in 23 municipalities and advised with regard to user friendly municipalities for people with disabilities. Individual municipalities Assessment Outcomes Report have been shared. Municipalities are to develop plans to correct shortfalls identifi ed. Further, an Assessment regarding representation (Councillors) and recruitment (Offi cials) with disabilities was conducted and information thereof, shared with municipalities. As a result municipalities are better placed and informed on how to set targets in their Equity Plans and Recruitment Plans.

SALGA Limpopo supported and implemented the resolution which is advocating for an audit to address structural barriers

in the built environment, inaccessible service points, and poor town planning including basic accessibility to facilities.

The following municipalities were audited: Fetakgomo, Ephraim Mogale, Thabazimbi, Baphalaborwa, Maruleng, and Musina Local Municipalities. The challenges in most of these municipalities are that some have the facilities which are used for other purposes because there are no people living with disability that are the facility (bathrooms) and people living with disabilities are mostly at the reception because it is easily accessible.

The intervention is that there is a serious awareness that need to be conducted in the municipalities around Reasonable accommodation.

3. OTHER PROJECTS:

3.1 Moral Degeneration:

SALGA Gauteng convened the Moral Regeneration workshop on 6 March 2012, with an aim to create a platform for member municipalities to engage on strategies that will help in addressing moral decay in communities.

Furthermore, the forum aimed at lobbying member municipalities to take a lead in driving the moral regeneration project, with all relevant stakeholders. The workshop was well received by members, and it was noted that the programme should be implemented at Merafong Municipality as a starting point.

The stakeholders emphasised that there is a need for cooperation between them and SALGA in order to spread the moral regeneration massage. The proposed initiatives were welcomed and it was agreed that communities should be the centre of the programme to ensure that all sections of the community take part in agreement of their values.

3.2 Migration:

SALGA Gauteng facilitated the Migration Round Table Discussion on the 6th of March 2012, with an aim to come up with SALGA Gauteng position paper on how to better deal with migration challenges that are faced by member municipalities,



and to create a platform for member municipalities to engage on the strategies that may help in integrating migrants with the hosting communities.

The reason to convene such as session is based on the observation that migration is not a mandate of local government, but it is for the National Government. It came out strongly on the discussion that SALGA should engage the function department on the need for legislative review, and give expression of the role that will be played by local government, within the broader policy context. Furthermore, the data collection methods have to be strengthened in ensuring that municipalities have accurate data for future planning.

3.3 Policy Development

SALGA Mpumalanga provided hands on support to fi ve (5) municipalities including one (1) district on policy development on youth, gender and People with Disabilities during the following months July and November 2011 and again in February and April 2012.

This processes assisted municipalities in developing draft municipal policies to guide the implementation of youth, gender and People with Disabilities programmes and to ensure that these programmes are considered for the inclusion in the municipal IDP.



PRIORITY OBJECTIVE 04:ECONOMIC DEVELOPMENT

MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION

BOTH IN URBAN AND RURAL AREAS

In order to gain insight into some of the practical experiences of stakeholders in rural development, SALGA and the CLGF conducted a workshop (11-12 August 2011 in Polokwane) and an information dissemination seminar (4-5 October 2011 at Birchwood) that was attended by a wide spectrum of rural development practitioners from municipalities, provincial and national governments as well as international participants from India, Ghana and the United Kingdom.

The two engagements provided a platform for the various stakeholders to share their experiences and challenges in rural development and also generated perspectives that contributed to the recommendations that are contained in the draft position paper. A draft position paper (on the role of local government in rural development) was developed and tabled at the National Working Group meeting on 24 February 2012.

The same position paper was also tabled at the EMT meeting in March 2012. With rural development being one of the key government strategies to deal with rural poverty and

unemployment, and with all rural development initiatives being implemented in “municipal space”, it is crucial that the role of the local government sector be clarifi ed on rural development. The clarifi cation of the role of municipalities in rural development will ensure that municipalities play a meaningful role in sustainable rural development initiatives.

As part of preparing the continuous engagements of SALGA on the draft Spatial Planning and Land Use Management Bill, two workshops were held 2 and 29 June, respectively. The workshops were attended by a wide spectrum of stakeholders that included municipalities, provincial and national government representatives. Municipalities engaged on the content of the Bill and also deliberated on some key issues affecting the local government sector. Subsequent to that, SALGA draft comments were developed on the Bill and submitted to the Department of Rural Development and Land Reform.

The draft comments on the Bill were later tabled at the National Working Group meeting and at the NEC of 24 February 2012 and 28 March 2012, respectively. SALGA created a platform for municipalities to engage with the draft Bill, which is one of the


FullyAchieved4598%

NotAchieved12%

PO4. Economic Issues - Municipalities drive growth andemployment creation, both in urban and rural areas



key pieces of legislation that will impact on how municipalities undertake municipal planning. The national task team that SALGA set up to deal with the Bill ensured that views of the municipalities on the Bill are addressed in a coordinated manner thereby giving a voice to the local government sector.

In the Eastern Cape the Land use planning seminar which recommended that a councillor development programme on planning to be developed was convened. A planning forum was also established on 30 September 2011 to discuss planning matters that affect municipalities, the issue of cumbersome planning legislation within the Eastern Cape Province as well as the need to develop legislation that best suit the Province.

A report detailing the support that the Department of Rural Development and Land Reform is providing to municipalities with regard to the development of Spatial Development Frameworks, land Use Management Systems and GIS was developed and submitted to the National Working Group meeting. In total, 26 municipalities were provided with fi nancial support in the development of credible Spatial Development Frameworks in line with the spatial development framework guidelines.

SALGA is partnering with the department on how support is given to municipalities. Besides coordinating the support that the Department of Rural Development and Land Reform is providing to municipalities, the facilitation of support ensured that municipalities that are in greatest need received the necessary support.

SALGA developed an input on the proposed green paper on land reform and specifi cally focused on the proposed institutional arrangements and their potential impact on the role and functions of municipalities. Besides the SALGA comments that were submitted to the Department of Rural Development and Land Reform on 8 February 2012, SALGA continues to serve on the various reference groups on the Green paper on land reform such as the Offi ce of the Valuer General, Land Rights Management Board and the Land Rights Management Commission and continuously provide input into policy proposals.

SALGA also prepared and submitted comments on the draft Simplifi ed IDP Framework for B4 municipalities, which was prepared by the Department of Cooperative Governance and Traditional Affairs. The need for continuous engagement with SALGA and the affected municipalities as well as the implications for municipalities were highlighted and should form the basis of fi nalization of the simplifi ed framework. The inputs of SALGA ensured that the issues affecting the local government sector are adequately addressed in the policy formulation process. SALGA identifi ed a number of key issues in the draft green paper that need clarifi cation as they may have a bearing on the functions of municipalities.

These key issues include the need to:

• Defi ne the terms that are used in the green paper

• Clarify the scope of application of the Green Paper especially with regard to the rural urban dichotomy.

• Defi ne the role of the local government sector in land reform.

• Provide detail on how the four tier system of land ownership will operate and what type of land will be affected.

• Clarify the functions and powers of the Land Management Committee and how they relate to those of the local government sector.

• Clarify the relationship between the OVG and the Department of Cooperative Governance (DCoG) who is the custodian of the Municipal Property Rates Act (MPRA)

A simplifi ed IDP Assessment framework for smaller municipalities is one of the requirements of the LG Turnaround Strategy. The preparation and eventual implementation of the simplifi ed IDP framework will give effect to differentiated approach to municipal planning and assist in improving service delivery.



ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND

STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED

SERVICE DELIVERY

An analysis of IDP assessments in the district and local municipalities in Mpumalanga and Limpopo was conducted and key recommendations were made with regard to areas that require improvement in order to move towards the formulation of credible IDPs. In particular, SALGA identifi ed diffi culties with some municipalities when it comes to the preparation of specialised sector plans.

In order to facilitate the development of credible IDPs, SALGA recommended the need for the IDP assessment reports to focus on reasons for the identifi ed short-comings as well as the actual content of the IDP documents. There is therefore a need for a more structured and detailed assessment process that not only focus on the substantive issues in the IDP document, but also deals with issues of the actual implementation of the IDP, given the resources that are at the disposal of the municipalities.

The identifi cation of areas in municipal IDPs that require improvement will result in better service delivery when municipalities begin to produce credible IDPs that are also aligned to the budget. In Gauteng, the assessment of LED strategies was conducted in the provincially led 2012/13 IPD review where recommendations were provided.

The assessment undertaken also focused on the functionality of LED and provincial forums. The results indicated an insignifi cant ratio of fully functional forums dedicated for local

economic planning though there are those which are sector specifi c. This was taken forth to convene a knowledge sharing session for the promotion of these forums wherein case studies, approaches to community planning facilitation were presented. The outcomes were the much knowledgeable LED practitioners, an awareness of the role which stakeholders play and having a body of knowledge base to draw from for guidance.

PROMOTE AND IMPROVE THE EFFECTIVENESS OF MUNICIPAL

LED

The South African LED Network is a dedicated project of SALGA which is supported by Gesellschaft fuer Internationale Zusammenarbeit (GIZ). The membership base of the SA LED network has increased substantially in the past few years, especially after its move to SALGA.

The more than 3 500 registered members of the SA LED Network include local, provincial and national government offi cials, consultants, the private sector, academia and other organisations working on the development of local economies. The LED Network is a Web-based platform which strives to become the leading source of knowledge and information in the area of LED by fostering the exchange of ideas and creation of synergies in and around LED at local government level in South Africa and beyond.

The SA LED Network disseminates good practice and supports dialogue on the question of “what works and how”, informing and encouraging municipal practitioners to develop their own localised strategies for economic development.



The LED Network offers the following free-of-charge services via its Web platform www.led.co.za:

• Good LED practices (through a tested case study methodology);

• A forum to exchange knowledge and successful LED practice, for municipal peer-to-peer support and learning across disciplines;

• An online space for research and collaborative working on LED-related topics, such as informal trade, tourism, small town regeneration, agriculture, SMMEs and more;

• Free access to thought leadership, news, events, tools, publications, job opportunities etc, through a large LED library, newsletters and newsfl ashes;

• A platform for networking amongst practitioners from different sectors as well as topic specifi c Communities of Practice.

In addition to these services, the SA LED Network is engaged in a wider range of other activities:

• Preparation of A councillor’s guide to LED in South Africa on the occasion of the SALGA National Conference in 2011.

• Research and write-up of 11 case studies for various partners, including the IDC and DBSA in 2011.

• Development of a Community of Practice (CoP) for Economic Development Agencies in 2011 on behalf of the IDC which will subsequently be launched in May 2012.



• In the process of developing a Community of Practice (CoP) for the Economies of Regions Learning Network (ERLN) on behalf of National Treasury.

• A cooperation project with the Local Economic Development Network of Africa (LEDNA) titled ‘Innovative local government practices and approaches towards the informal economy’. The fi nal product will be a collection of case studies from across Africa, including South Africa, published and disseminated at the Africities Conference in Dakar, Senegal in December 2012.

During the year under review, SALGA guidelines and Generic Informal/Street Trading Policy Framework was produced in January 2011 with the support of Metros and the Small Enterprise Development Agency (SEDA).

The guidelines were been updated after extensive consultation with provincial and municipal government, as well as a number of stakeholders representing the interests of the informal economy. The draft guidelines were distributed to a wide audience of stakeholders (including StreetNet, Cosatu and the ILO) as well as all SALGA provinces for input from municipalities. Three provinces (Free State, Eastern Cape and Northwest) engaged on these through workshops with municipalities. Other SALGA Provinces provided written feedback. A fi nal consultative workshop, which included over 30 stakeholders from government, labour and the informal sector, was held on 16 March 2012.

This provided for the fi nal input into the document. Municipalities face a number of challenges in developing and implementing policy that creates an enabling environment for the informal economy, and balances the needs of a diverse group of stakeholders.

SALGA wishes to encourage municipalities to embrace innovative thinking in this area, by viewing the informal economy as an important part of Government’s strategies to address unemployment, support livelihood creation and reduce vulnerability. The SALGA guidelines are designed to support the development of policy that assists municipalities to move from a fragmented to an integrated approach in respect of the informal economy.

The main activities of the LED Network in 2011 included:

• Intensive marketing and dissemination to increase membership, particularly amongst local government LED practitioners

• Improvement of website features to increase interactivity and user-friendliness

• Development of own content in the form of LED case studies (to a large extent funded by DBSA and IDC)

• Maintaining and expanding networking and information services through daily content updates, weekly newsfl ashes and 3 printed newsletters

• National Conference exhibition on LED and the launch of a Councillor Guidebook to LED for newly elected Councilors and offi cials

• Maintaining existing and developing new partnerships with key national and international organizations in the fi eld of LED

• Development of three case studies funded by the DBSA Redi programme in Theewaterskloof Local Municipality,Cacadu District Municipality and Ugu District Municipality.

• Development of a new Community of Practice online tool for economic development agencies funded by the IDC

For SALGA, the purpose of hosting the SA LED network as a dedicated and resourced project, would be to support the local government LED agenda and to use the resources of the network to address specifi c needs and interests facing LED offi cials within municipalities.

SALGA, implemented the Good Practice Scheme Project (GPS), which is targeting fi ve municipalities in South Africa. The focus of the project is Local Economic Development (LED) and it seeks to address the LED capacity challenges of targeted municipalities.



The Scheme promotes mutual exchanges, learning and good practice between partner municipalities. This was done through technical exchanges, collaborative working, pilot projects, and sharing of good practice. The project is part of the wider Commonwealth Good Practice Scheme Project (GPS) which is being implemented in six Commonwealth countries namely India, Ghana, Jamaica, Sierra Leone, South Africa, and Pakistan.

The fi ve municipal partnership projects in South Africa are as follows:

• Mbombela Local Municipality (MLM) and Sunderland City Council (SCC) (United Kingdom)

• Steve Tshwete Local Municipality (SLM), eThekwini Municipality and Leeds City Council- (SA; United Kingdom)

• Mopani District Municipality (MDM) and Trivandrum, Kerala, (India)

• Vhembe District Municipality and Gondal (VDM) Local Municipality Gujarat, (India)

• Amathole District Municipality (ADM) and Glasgow City Council (UK)

Local Government benefi ted from these partnerships through shared experiences, mentoring, and exchange of international concepts. This project brought South African Local Municipalities on the International platform with provided some of the best International experiences that benefi tted Local Municipalities.

The following key lessons were learned:

• In order to attract investors to the Municipality, the Municipality should have an Investment Incentive and Promotion policy which can lure investors into the area.

• The LED Unit in a municipality should create opportunities and an enabling environment for SMME as it can provide a number of employment opportunities to the community.

• MLM should develop its own corporate image strategy that seeks to defi ne what the Municipality is all about and how it is perceived by the external investors.

• The MLM partnership with Sunderland has exposed the municipality to a number of ways of dealing with land availability i.e. using land owned by the municipality if it is available, arranging to purchase land for development from the owner, or entering into three-way partnerships with the land-owner and the developer alongside the City Council. This combination of approaches increases the opportunities for Sunderland to attract inward investment. MLM has learnt that their spatial development framework should be revisited to identify land that can be reserved or zoned for business and make sure that the proper infrastructure is in place before attracting outside investors.

• The organisational structure of the Council and the economic unit is clearly defi ned in Sunderland, which enables them to know exactly who does what, and each fi eld has its own specialist which makes it easier to achieve their goals. MLM has also noted that Sunderland practice team work remarkably well which is a key learning point for the municipality.

• MLM has learnt that it takes time for a Municipality to be successful. For instance it took some time for SCC to get where they are today. SCC has taken their time researching the strength of the city and they formulated clear goals on what they wanted to achieve. The whole process was done in harmony with the political heads so that there could be no division between the politicians and the administration. The LED unit recommends the same for MLM to ensure its success.

• The importance of stakeholder engagement and relationships with these stakeholders is important for the success of the Municipality.

• Enhanced Integrated approach to project management:

The Integrated Development Planning (IDP) process emphasises an integrated approach to planning and implementation of government projects by all three spheres of government. The relationships between



MDMs and the Limpopo Department of Agriculture, through the GPS programme, have assisted in enhancing the integration and alignment of projects particularly the four in which the department is engaged with.

• Job security: Although other practices that are found in India (Trivandrum) may not be easily imported to South African conditions, it is important to highlight that according to MDM the Job Security model which gives locals rights to be employed for a certain number of days per annum is something that can be explored in future as it needs buy in from higher levels of government.

• The Kudumbashree model: Empowerment of women is one of the policies of the South African government’s quest to reduce inequalities among different sections of the South African society. The Indian model has assisted MDM in exploring how the Municipality can best serve the interests of women to become active and powerful actors in the mainstream economy. From the Indian model the District has learnt that it is through organised and government assisted structures that women can be assisted.

• The level of Agricultural education: Learning from their Indian counterparts, the district has learnt that agriculture is administered by highly qualifi ed government offi cials such as agricultural engineers. This has challenged the Executive Mayor of MDM, His Worship Councilor Joshua Matlou to offer three students of Selwane village, where one of the projects is located, to study Agriculture at any South African University.

SALGA Eastern Cape hosted LED roundtables within two District Municipalities. The impact was that both politicians and offi cials to create a common understanding of what LED means and also create a platform for information sharing, where municipalities were able to learn from best practices within the Province.

During the year under review, a workshop was hosted in the Eastern Cape Province on LED alignment which was the fi rst of its kind. The workshop highlighted why municipalities have to

align their LED strategies with key priority areas of government both provincially and nationally.

LED MATURITY ASSESSMENT TOOL

With fi nancial support from CMRA and the VNG-International LOGO South Program (The Dutch Municipal / SA partnership), SALGA was in a position to continue onto Phase II of the LED Maturity Assessment Tool.

The training phase had two components. Firstly the training of SALGA provincial programme managers and LED advisors and secondly the practical assessment of municipalities by SALGA provincial Programme Managers and LED advisors piloting the tool.

The following municipalities were targeted: Rustenburg, Naledi, Dr Ruth S Mompati, Ekurhuleni (Metro), City of Tshwane, Emfuleni, Oudtshoorn, Langeberg, Govan Mbeki, Camdeboo, Emalahleni, and Buffalo City. In total, 20 SALGA and Municipal offi cials were trained as assessors and 13 municipalities across all municipalities were assessed.

From a SALGA perspective, the outcomes of Phase II included empowering SALGA provincial LED offi cials with knowledge of the LED Maturity tool that they can use to assist municipalities in understanding, developing and implementing better LED strategies.

CLGF PROJECT

The Good Practice Scheme project which was a three year project ended in October 2011. This is a report of the project from March 2012 up to the end of project. The report highlights the project results. The period of reporting coincides with the end of project and the report will also cover the results of the project as a whole. While at the national level the projects were focusing mainly on completing the projects, at the national level the focus was dissemination of good practice and development of policy positions on emerging issues from the projects.

eThekwini Municipality, Steve Tshwete Local Municipality and Leeds City Council project focused on setting up tri-



partite partnerships focusing on improving the sustainability of SMMEs through increased capacity to bid for and win local tenders, and to increase the capacity of the municipalities to support SMMEs to enable them to meet this objective.

This project resulted in a number of service improvements in eThekwini Municipality including improved, accessible and transparent procurement system established, including new tender materials, to increase the number of municipal and corporate tenders awarded to local BEE SMMEs. eThekwini Municipality ran a number of SMME empowerment workshops and fairs to engage with the local SMME community and start up businesses which involved 9 300 people including 350 on a women’s empowerment workshop.

This resulted in raising awareness of municipality services and routes for future support. The municipality ran the innovative Lion’s Den competition as another way of providing business support and training, providing business exposure for new businesses and access to markets. The partners mobilised and worked with local businesses and intermediary business organisations in the city on the initiative. In Steve Tshwete the new procurement policy and processes were consulted on, designed and implemented. In addition new tendering guidelines, based on those produced in eThekwini, but tailored to local needs were developed and made available. The project signifi cantly improved relationships between the municipality, the local business community, chamber of commerce, and the Business Linkage Centre, evidenced by joint working on outreach events, and a service level agreement signed to share the database of local businesses developed through the project.

Vhembe District Municipality and Gondal District (India) project focused on poverty alleviation through creation of jobs in agriculture, handicrafts, tourism, and pro-rural development. The project partners developed and opened the fresh produce market, using the Safal Market Model which empowers farmers to deal directly with suppliers through their cooperatives, resulting in 20 new jobs.

The partners estimate that a further 2 000 jobs in farms were created due to the improved market access. Agreements were entered into with Johannesburg Market and Tshwane to buy

produce from Vhembe, and an offi cer from the Department of Agriculture was seconded to help to manage the process. The project established a seedling nursery to supply farmers and 10 direct jobs were created, this number will rise to 20 when the nursery is fully operational.

Following the master training programme in cooperative management in Junagadh University in India, a programme to train farmers in Vhembe was designed. Artists and craft workers, who were previously working independently, formed themselves into around 20 cooperatives (approx 60 jobs), and although not yet complete, there are plans to open a dedicated market facility. Based on the projects which Vhembe studied in India, e.g. check dams for irrigation, and the Amul cooperative model which introduces a value chain approach, the technologies will be refi ned for the Vhembe context and piloted in 2012 with the support of the Further Education College.

Mopani District Municipality and Thiruvanthapuram District Panchayat, India project focused on building the capacity of the local authority to support, train and facilitate the establishment of pilot projects to support LED in the agricultural sector. The LED focus of the Municipality was shifted signifi cantly towards agriculture as a result of the project with increased skills development and training for offi cials resulting in a departmental focus on working more closely with farmers and developing pilot projects in the community.

The Municipality adopted a mobile soil testing system from its partners in India and having adapted the service for local use, trained the offi cials and fi eld tested it, it is due to be rolled out shortly and it is expected that it will reduce the costs of cultivation, recommend appropriate fertiliser, improve absorption by plants, help to improve the economic status of farmers. Other pilot projects in banana cultivation, goat and pig rearing, and micro irrigation are being established on Alilai Farm and if successful will be rolled out to other parts of the Municipality.

Amathole District Municipality/Buffalo City Metropolitan Municipality and Glasgow City Council worked together to establish an integrated marketing and events bureau for ADM and BCM to assist in growth the tourism industry by providing



a platform to market and position the location and its products nationally and internationally.

The project provided support for the establishment of credit unions in the tourism sector to support disadvantaged communities and provided leverage to develop a lighting initiative. Following consultation and a detailed design process, a joint marketing bureau is being established and is expected to demonstrate result in an increase in visitor numbers to the region and job creation opportunities in the sector.

A lighting strategy was developed for the city and two pilot projects will be completed in the fi rst quarter of 2012 to demonstrate the potential for increased tourism and extension of the trading day for local businesses. The credit union policy was developed and two credit unions were set up as a result.

Mbombela Local Municipality and Sunderland City Council worked together to reduce unemployment in MLM by promoting inward investment, creating an attractive environment for business and preparing the local workforce to take up new job opportunities. An inward investment policy was developed and the Municipality has strengthened its links with the private sector.

As a result of this, they have attracted their fi rst major new investor (ZAR 44 million) resulting in 100 new jobs. A further 45 new jobs were created as part of the Tourism Ambassador Project. A business portfolio with comprehensive local business data was completed, and an arts and crafts brochure to support local beaded craft workers with marketing and business support has been developed and their work was showcased at an international conference held in Mbombela.

A central email address enables them to pick up orders. Following consultations with informal traders Mbombela built stalls and ablution facilities to improve their trading environment. Access to the area was improved and the Municipality worked transparently and with the local street committees to allocate stalls. A key output of the project was

“identifi cation of a means of identifying skills needs of local unemployed people and facilitating support and training to enable them to access employment”. The partners undertook a skills audit by ward, summarising the support they felt was needed and this helped to identify the fi rst Job Linkage Centre within the Municipality.

EPWP

In the Free State, the EPWP roundtable was convened with the fi ve municipalities that are slow on reporting on EPWP progress.

P3

P3 is a partnership project between the Swedish Association of Local Authorities and Regions (SALAR), the Botswana Association of Local Authorities (BALA), the Association for Local Authorities in Namibia (ALAN) and SALGA, the South African Local Government Association with funding support from the European Commission, and Swedish International Development Agency.

The objective of the Local Leadership for Growth and the Transparent Local Government Components of the project was to build the capacity of local associations to provide technical support to municipalities. In South Africa, the project was piloted in three provinces and 14 municipalities were selected to participate:

• Eastern Cape Province with Elundini, Lukhanji, Intsika Yethu, Senqu, Maletswai, and Emalahleni Municipalities participating.

• Free State Province with Mohokare, Setsoto, Kopanong, and Naledi Municipalities

• Western Cape Province with Mosselbay, Theewaterskloof, Cape Agulhas, and Hessequa Municipalities participating.



PRIORITY OBJECTIVE 5:LABOUR RELATIONS

A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A MUTUAL GAINS APPROACH

SUPPORT AND ADVICE PROVIDED TO MUNICICIPALITIES ON

LABOUR RELATIONS MATTERS

The following municipalities contacted SALGA National for advice: Lesedi, Amathole, City of Matlosana, Ilembe, Maquassi Hills, Aganang, Msunduzi, Greater Tzaneen and Kouga. The Mpumalanga offi ces also requested that we assist in a particular matter. Circulars were issued on JE Award and Medical Aid increase. Advice was provided to Lesedi, Amatole, City of Matlosana. Uniformity in the handling of labour relations matters within the local government sector achieved.

SALGA Western Cape assisted with 183 written advices to Municipalities for the past year.

SALGA Free State provided advice on the transfer of municipal library workers in the Province in line with section 197 of the LRA in a meeting with the Department of Sport, Arts, Culture and Technology.

SALGA Gauteng ensured that the Dispute Resolution of the divisions of the SALGBC are convened and dispense with their duties. SALGA has been chairing the EXCO of the Division and thus enforcing attendance by parties to the Division.

SALGA has also been assisting the division in communicating with member municipalities on the recovery of wasted arbitration costs. SALGA Gauteng provided labour advice to municipalities on various matters including:

• Appointment of presiding offi cer for a case in Sedibeng

• Advice on the appointment of staff: Mayoral Offi ce - Lesedi municipality.

• Appointment of presiding offi cer for Emfuleni

• Assistance with Job Evaluation - various municipalities, namely Mogale City, City of Johannesburg, Ekurhuleni, Lesedi, WRDM, Emfuleni, Sedibeng and Midvaal.


FullyAchieved2679%

NotAchieved721%

PO5. Labour Relations - A productive, stable labourenvironment, supported by a ‘mutual gains‘ approach



• Advice and appointment of prosecuting offi cer for a case in Midvaal.

SALGA Mpumalanga capcicitated 29 Presiding Offi cers on disciplinary skills during the training session which was conducted from 22-24 August 2011.

A list of trained Presiding Offi cers was distributed to all 21 municipalities for future use. Further, three workshops (one per district) were conducted on 10 and 24 November 2011 and 1 December 2011 to deal with the following:

i. Collective Agreement on Disciplinary Code

ii. Local Labour Forum

iii. Minimum Essential Services Level Agreement

A total of 18 municipalities (out of 21) in Mpumalanga have confi rmed to have established functional LLFs, whilst all 21 municipalities have confi rmed that they are implementing the Collective Agreement on Disciplinary Code. SALGA Mpumalanga assisted 7 municipalities in 17 labour dispute matters (15 disciplinary cases and two arbitration hearings) and these are:

• Mbombela;

• Nkomazi;

• Umjindi;

• Emakhazeni

• Emlahleni

• Mkhondo

• Chief Albert Luthuli

SALGA Mpumalanga conducted a workshop on Performance Management Systems on 2 February 2012, and provided hands-on support to Mkhondo, Nkomazi, and Steve Tshwete local municipalities in relation to PMS.

SALGA Free State assisted Mantsopa Local Municipality with the interpretation of the Collective Agreement dealing with

Payment of Long Service Bonus, Unpaid leave and Unfair Labour Practices. The Municipality was also assisted with the intervened after employees embarked on an unprotected industrial action and on an unfair dismissal matter on the 30 November 2011.

Mohokare Local Municipality was provided with hands-on support with matters relating to contract workers and unfair labour practices. SALGA Free State also conducted internal investigation which resulted to the written warning issued against the employee. Further, in Kopanong Local Municipality SALGA Free State provided assistance on municipal grading. The municipality was advised on salary disparities, in respect of entry levels for the employees and assisted during an arbitration hearing of the former municipal manager on 24 January 2012.

SALGA Free State also assisted Nketoana and Nala Local Municipalities with the implementation of the Circular on Salary/Wage Collective Agreement. Moqhaka Local Municipality was provided with assistance on the complaint lodged with the Public Protector about the alleged different contributions made by the municipality’s employees towards employees pension fund and unsatisfactory conditions of employment and during an arbitration in 30 January 2012.

SALGA Free State convened a meeting on 29 July 2011, constituted by all CFOs in assessing the fi nancial status of municipalities in responding to the wage /salary negotiations prior the industrial action, as envisaged in the local government sector. SALGA Free State together with the Department of Cooperative Governance and Traditional Affairs (CoGTA) and LG SETA jointly approached Central University of Technology Free State (CUT), to undertake a survey and determine the competency levels of municipal councillors in the Province.

In a quest to ensure municipal compliance with Employment Equity, SALGA FS requested draft employment equity plans from municipalities in order to assist where necessary before submission to the Department of Labour by 30 October 2011. An Employment Equity Analysis for the past ten years was conducted in consultation with the Department of Labour in Bloemfontein in October 2011 and presented to the HRM Working Group that was held on the 29 November 2011.



On strike management, SALGA North West resuscitated and engaged with strike management committees and advised municipalities on the implementation of the salary increases for 2011/12 fi nancial year on the intention by SAMWU to embark on a strike action in August 2011. This assisted municipalities in circumventing labour instability. In strengthening the LR and HR structures in municipalities.

SALGA North West capacitated and convened LRPF and HRPF meetings with Mafi keng and Ditsobotla LMs in May 2011, and provided labour advice and assistance on various other matters between April and June 2011 including:

• advice to Tswaing LM on the interpretation of the Arbitration Award HQ 100901,

• advice to Lekwa-Teemane LM on Schedule 8 of the LRA,

• advice to Maquassi Hills LM on expiry of contracts for offi cials in the Offi ce of the Mayor and Speaker and on standby allowance,

• advice to City of Matlosana’s Investigation Committee for Section 57 appointees,

• advice to Ramotshere-Moiloa LM on overtime and shift allowance,

• advice to Ratlou LM on the interpretation of the placement policy, and

• assisted Naledi LM with confl ict resolution processes, and represented it in the disciplinary hearing.

REPRESENTATION OF MUNICIPAILITIES AT CONCILIATIONS,

ARBITRATIONS, LITIGATION MATTERS, AND DISPUTE

RESOLUTION

The SALGA NEC report on the disputes SALGA handled on behalf of Municipalities was presented at the NEC meeting on 28 March 2012. The Unions referred the following dispute: Wage Interest - Case No: HQ041106. SALGA in turn raised a point in limine in the interest dispute lodged by SAMWU on the Recruitment and Selection Policy: Case no HQ011209.

SALGA represented at Conciliations on Medical aid, Retirement Fund, Recruitment and Selection, Rental allowance.

SALGA Western Cape represented all municipalities in the Western Cape, excluding the City of Cape Town, in 64 arbitrations, 44 conciliations and 12 condonation applications, and 26 Disciplinary during the 2011-12 year.

SALGA Northern Cape supported and advised municipalities with regard to dispute resolution and discipline management.

In ensuring support to municipalities on Dispute Resolution, SALGA North West all 23 municipalities at the SALGBC EXCO of the NW Division and Plenary between September 2011 and March 2012. SALGA North West represented the following municipalities on conciliations and arbitrations between April 2011 and February 2012:

• Ramotshere Moiloa LM; Tlokwe City Council; Dr Kenneth Kaunda DM; Ngaka Modiri Molema DM; Ventersdorp LM ; Maquassi Hills LM; Mafi keng LM; Moretele LM; Madibeng LM; Tswaing LM; Lekwa-Teemane LM; Rustenburg LM; Naledi LM ; Ditsobotla LM; City of Matlosana; Greater Taung LM [Conciliation & Arbitration].

• Kgetleng Rivier LM; Moses Kotane LM; Kagisano-Molopo LM; Ratlou LM [Arbitrations].

ROLL-OUT A MUTUAL GAINS COLLECTIVE BARGAINING

APPROACH

SALGA co-ordinated the training of all members of the LLF to improve the capacity of both employer and employee representatives at that level. To that end, SALGA is able to ensure better dispute resolution and prevention at municipal level, thereby creating a more stable LG.

In an attempt to strengthen the implementation of the collective bargaining agreement, SALGA North West conducted LLF training to 171 members and further developed a monitoring tool to monitor the functionality of LLFs and conducted local inspections in the following municipalities between February and March 2012:



• Rustenburg LM; Kgetlengrivier LM; Mafi keng LM; Ramotshere-Moiloa LM; Ditsobotla LM; Naledi LM; Greater Taung LM; Lekwa-Teemane LM; Mamusa LM; Ventersdorp LM; Tlokwe City Council; City of Matlosana; Madibeng LM & Moses Kotane LM.

• Ngaka Modiri-Molema DM; Dr. Ruth Segomotsi-Mompati DM & Dr. Kenneth Kaunda DM.

• Conducted training for newly elected councillors for all municipalities in the province from June to July 2011.

• Conducted training on disciplinary skills, conciliation & arbitration in August 2011 in partnership with SALGA National.



PRIORITY OBJECTIVE 06:SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM

IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

ANALYSIS OF MUNICIPAL FINANCIAL STATEMENTS

A report on the state of municipal fi nances was prepared considering the National Treasury Review of the LG Budgets and Expenditure Review 2011, the Consolidated General Report on the Local Government audit outcomes 2009/10, and MFMA Section 71 report for the fourth quarter of 2010/11.

The report highlighted key challenges in fi nancial management and performance of municipalities during the 2009/10 and 2010/11 fi nancial years and longer trends observed from National Treasury’s Review. This report also included a report on the commitments of SALGA to the AG on areas of support for municipalities towards good municipal fi nancial management and governance practices.

Based on the analysis in the report, municipal support mechanisms have been identifi ed for implementation in the next fi nancial year. A key support programme for 2012/13 involves the adoption by SALGA Provincial offi ces of at least two struggling municipalities to support them towards improvement in fi nancial performance and audit outcomes. SALGA also provide practical fi nancial management training as identifi ed in their respective provinces.

COUNCILLORS TRAINING ON MUNICIPAL FINANCES AND LED

AFTER LOCAL GOVERNMENT ELECTIONS

SALGA inducted all councillors on important aspects of municipal fi nances, budgeting and reporting during the general induction of councillors. In addition, advanced induction aimed at councillors responsible for municipal fi nances has been conducted.

Approximately 8 600 councillors where inducted on municipal fi nance issues in partnership with National Treasury. Furthermore, SALGA and NT conducted a two-day advanced induction for Mayors and councillors responsible for municipal fi nance. Workshops were convened from February to April in all provinces. About 80 percent of municipalities attended these advanced induction sessions.

The general induction on municipal fi nance for one full day provided all councillors with a basic understanding of their role in budgeting, fi nancial performance reporting, and oversight in a municipality. The advanced induction was conducted over two days and aimed at creating an in-depth understanding of municipal fi nances for councillors responsible for municipal fi nance and mayors. These induction sessions were important


FullyAchieved2880%

NotAchieved720%

PO6. Sound Financial Management and Governancesystem - Improved fi nancial management and

fi nancial viability of municipalities2011-12 FINAL PERFORMANCE


to ensure that new councillors are aware of the municipal budget process and fi nancial reporting processes so that they are able to fulfi ll their management and oversight role.

At the SALGA National Conference (August 2011), SALGA elected councillors into new leadership positions. Within this context, the Directorate convened an LED training session for the newly elected SALGA National and Provincial Working Group Chairpersons on their role and positions on LED.

The output of the training was to empower the nine EDP Working Group Provincial Chairpersons and National Working Group Chairperson on the topic of Local Economic Development. As these are all new chairpersons it was important to formulate a common understanding and position towards LED.

After developing a common understanding of the role of SALGA and its LED Programmes and Projects, the chairpersons jointly determine the vision of the SALGA Economic Development working groups, shared their knowledge, experiences by networking and teambuilding experience. Besides introducing LED to the key SALGA audience, the training programme covered important LED concepts which will impact all councillors in terms of their expectations and how SALGA needs to support them.

These included the appropriate role/expectations of local government in LED, the different roles and responsibilities of spheres of government, the insights of the building the “right” institutional capacity within LED units of municipalities, and the priorities in supporting LED with regards the role of Councillors. It is envisaged that this training material be used to develop a training/induction programme for Councillors responsible for the LED portfolio in municipalities.

SALGA 2011/12 BUDGET WEEK/ FINANCIAL WEEK

Budget Week workshops have been arranged in eight provinces where municipalities were brought together to discuss matters impacting their fi nances and fi nancial management. The Budget Week workshops provided a platform to present best practices in municipal fi nancial management and was a learning exchange between municipalities and other public and private stakeholders with an interest in local government.

SALGA 2011/12 BUDGET/FINANCIAL WEEK

Province Date

Eastern Cape 15 February 2012

Free State 28-29 November 2011

Gauteng 15 April 2011

Limpopo 28-29 March 2012

Mpumalanga 24 - 25 November 2011

Northern Cape 17 November 2011

North West 19-20 March 2012

Western Cape 24 November 2011

INDIGENT POLICY ANALYSIS

The report on the analysis of indigent policies of a sample of municipalities increased the understaninf of SALGA of municipal approaches to providing poverty relief and free basic services to poor households and the different targeting methodologies utilised. The report was intended to develop a basis for understanding municipal indigent policies and the aim is to build on this information over the medium term to develop relevant support mechanisms that will enable municipalities to improve the management of their indigent relief programmes.

SALGA PRESENTATIONS AT THE BUDGET FORUM

SALGA made a submission on revenue management and fi nancial sustainability to the Budget Forum on 6 October 2011. The SALGA delegation, led by the newly elected Chairperson, raised key external factors that are limiting and constraining effective municipal revenue management and fi nancial sustainability.

These include. amongst others, policies such as the negative impact of AARTO and rates ratios in the Municipal Property Rates Act. Other issues raised revolved around constraints on the implementation of municipal credit control policies in areas where Eskom provides electricity and proposals were made for amendments to the Municipal Systems Act to enhance municipal credit control policies.



SALGA submitted inputs on the draft Division of Revenue Bill - 2012 to National Treasury. Comments on the fi nal Division of Revenue Bill - 2012 and municipal allocations were presented in Parliament on 28 February 2012 and 16 April 2012. SALGA has also participated in an NCOP debate on the fi scal framework of the 2012/13 Budget on 7 March 2012 and on the Division of Revenue Bill on 26 April 2012.

SALGA, as organised local government, represents municipalities in the Budget Forum that is chaired by the Minister of Finance. SALGA raised key issues on national legislation and policy developments impacting on revenue management and fi nancial sustainability of municipalities. SALGA also raised local government’s views on the Division of Revenue Bill - 2012 to National Treasury and Parliamentary Committees.

FINANCE LEGISLATIVE FRAMEWORK

SALGA developed position papers on over and under regulation and started advocacy work in this regards. The papers were titled: i) Position Paper on over-regulation, refl ecting on the Status of Municipal By-Laws; and ii) Legislation to be addresses pertaining to both over and under regulation and the review of Organised Local Government.

Legislative analysis of acts that govern local government issues on municipalities was done for municipalities with a consideration on the following acts: Municipal Finance Management Act (MFMA) No 56 of 2003. It does not have a direct bearing on the collection of revenue but governs the overall management of fi nances in local government. Municipal Property Rates Acts (MPRA) No 6 of 2004 allowing municipalities to adopt and enact by-laws. It further provides a framework for liability of rates (section 24-29) of the MPRA. Municipal Systems Act of No 32 of 2000 allows a municipality to adopt credit control policy and debt collection.

Furthermore, municipalities have an obligation to collect what is owed to them. Both the above legislations give directives to municipalities in terms of formulating their own policies. In terms of National Credit Act No 34 of 2005, municipalities should collect and put corrective measures in place where consumers are not paying the debts. Municipalities will have

to develop policies which will contain an exception of section 4(6)(b) of the Act.

SALGA Gauteng provided support to municipalities in terms of the legal environment in terms of judicial decision impact directly and indirectly to municipalities in terms of municipal budgets and revenue collection. Analysis of a case study on the evictions of private land by the City of Johannesburg versus Blue Moon was made.

It was stated that when evictions are made, municipalities also needto provide alternative accommodation and that would affect the revenue of that particular municipality negatively. It was evident that if a municipality did not allow the community to access basic services due to non-payment of rates, a municipality might fi nd itself breaching the law in terms of the constitutional duty to respect the right to access water and requires constitutional justifi cation.

MUNICIPAL PROPERTY RATES ACT (MPRA) AMENDMENTS

SALGA submitted a position paper to CoGTA on 22 July 2011 outlining overall challenges on the implementation of the Municipal Property Rates Act and made several proposals for improvements to the legislation and its implementation.

The positionong paper also contained the comments of SALGA on the Municipal Property Rates Amendment Bill. Its positioning paper and comments were based on consultation with municipalities and the Institute of Municipal Finance Offi cers. The comprehensive submission of SALGA to COGTA outlined key challenges that local government experienced with the implementation of the MPRA. The submission also provided comments and inputs on the proposed amendments in the MPR Amendment Bill that would impact on municipal property rates revenue which is a key revenue source for local government.

BUDGETING

SALGA Gauteng provided support made to municipalities on credible budgets. These are central as they provide progressive plans to deliver services. Key credible criteria was on the budget links with the constitution around prioritising



and enabling basic service delivery to communities i.e. alignment of budget and basic services. The second criterion was a funded budget, to assess if municipalities are able to project revenue expenditure which they will be able to collect.

MUNICIPAL COMPETENCY REGULATIONS

SALGA Gauteng provided support provided to municipalities on competency regulations. This states that after 2013 municipal employees who do not have qualifi cations will be deemed unemployed. Local Government budget offi ce is challenging as it entails tariff setting, revenue collection, procurement procedures, and ability of municipalities to borrow. These dynamics make managing fi nances in municipalities more challenging than provincial and national government.

OPERATION CLEAN AUDIT

SALGA Gauteng conducted and assessment of readiness to achieve 2014 Operation Clean Audit in the province. This illustrated that some municipalities were improving while others were regressing and that was an indication that the oversight committees such as Municipal Public Accounts Committee (MPACs), South African Local Government Association (SALGA), department of fi nance in the province and other relevant stakeholders did not play their role effectively in terms of emphasising the importance of good fi nancial management by providing support and assistance where required, with the aim of obtaining clean audits reports by 2014.

Most municipalities are still encountering problems with the implementation of GRAP standards, hence some of them did not implement the approved GRAP standards and that resulted in them receiving poor audit reports. Municipalities and entities waste funds on the usage of consultants for implementation of GRAP standards and capabilities of the consultants are questionable as the municipalities and entities audits reports are not improving as expected, hence it was indicated that municipalities should not rely on the competency of the consultants, instead they should capacitate municipal offi cials who should be working on the standards.

SALGA Free State conducted a GRAP impact assessment in six identifi ed municipalities during the week of 3 to 14 March 2012.

SALGA North West convened the districts based workshops on Operation Clean Audit, Revenue Enhancement and Effective Debt Collection Strategies and the establishment of the MPACs between 21 and 30 September 2011 across the Province.

SALGA Northern Cape provided hands-on support to three municipalities (Magareng, Renosterberg, and Kgatelopele) on administrative procedures towards achieving clean audit during the year under review.

REVENUE MANAGEMENT

SALGA Gauteng advised municipalities on the use of debt collectors with the emphasis that all debt collectors should be registered with the exception of attorneys. The code of conduct is binding on debt collectors and should be adhered to. Only fees prescribed by the Act should be charged by debtors. The following challenges were emphasised as a matter of concern with regard to collection by debt collectors:

• Tracing of debtors

• Debtors not being cooperative

• Debtors paying directly to the creditors and debt collectors struggle to collect their fees.

• Advising creditors of prescribed debts and procedures to be followed.

The council indicated that debt collectors would not go to court without instituting legal action unless the claims have been ceded to them. Not all were legally qualifi ed persons and would only enforce the repayment of debt up to a certain point. A knowledge-sharing session with the South African Revenue Services (SARS) indicated the use of third-party data sources in data collection. SARS has improved its systems and is now able to deal with large volumes of data.

SALGA Free State conducted a Revenue Assessment Road shows to nine (9) municipalities in the Province to do an analysis on Revenue Management.

Four districts municipalities were identifi ed and prioritised by SALGA North West as the municipalities which will be assisted with the Revenue Enhancement and debt collection strategies



across the province. The identifi ed priority municipalities are the Dr Kenneth Kaunda District Municipality, Bojanala Platinum District Municipality, Ngaka Modiri Molema District Municipality, and the Dr Ruth S Mompati District Municipality.

SALGA Limpopo assisted municipalities to receive debts owed by sector departments. It engaged with the Department of Treasury, Education, and Public Works on money owed to Limpopo municipalities.

Terms of reference have been developed and the Provincial debt forum has been established. Five district debt forums have sat and issues were debated to a satisfactory level:

• Vhembe debt forum 03June 2011

• Capricorn debt forum 09June 2011

• Waterberg debt forum 21-22 June 2011

• Mopani debt forum 06-07 June 2011

• Sekhukhune debt forum 01-02 June 2011

To date, an amount of R17-million has been paid to Limpopo municipalities as a result of the debt forum by the Department Public Works (Limpopo).

SALGA Mpumalanga conducted a Revenue Enhancement Strategy workshop on 14 February 2012.

MUNICIPAL PUBLIC ACCOUNTS COMMITTEES

SALGA Free State presented the draft guidelines on the establishment of Municipal Public Accounts Committees to Mangaung Metro section 80 committee on 11 February 2012.

SALGA Gauteng hosted a workshop on MPACs on 25 November 2011. This workshop was attended by 38 participants.

SALGA NC presented the draft guidelines on the establishment of Municipal Public Accounts Committees on 17 November 2011. Twenty fi ve (78 percent) of the thirty two municipalities have established MPACs before the end of April 2011.

PREFERENTIAL PROCUREMENT REGULATIONS

SALGA, together with a group of municipalities, engaged National Treasury and the Department of Trade and Industry on 30 November 2011 to raise serious challenges that local government would be facing with the implementation of the new Preferential Procurement Regulations that becomes effective in December 2012. A letter was sent to the Minister of Finance regarding challenges in the readiness of local government for implementation of the new regulations. SALGA developed a guideline for municipalities regarding the implementation of the new regulations.

SALGA Limpopo conducted a Governance Workshop was convened on 14 November 2011 where 55 councillors from Limpopo municipalities participated. Further, SALGA Limpopo conducted a two-day induction workshop for Mayors (30) , Chairpersons of Finance Portfolio Committee (30) and MPAC chairpersons (28) was convened on 13 and 14 February 2012.

DIVISION OF REVENUE ACT BROCHURE

SALGA, in consultation with National Treasury, developed a brochure on the Division of Revenue Act 2011-12. The brochure aimed to raise awareness of the Act by defi ning salient features thereof including unconditional and conditional grants to local government. The brochure also outlines per municipality each fi scal transfer to be received from national and provincial government departments in the 2011/12 fi nancial year. In addition, the contact details of national departments responsible for transferring grant allocations to municipalities are provided.

PARTNERSHIP WITH THE GERMAN ASSOCIATION OF CITIES AND

NLC

An important SALGA partnership was negotiated and a Memorandum of Cooperation signed with the German Association of Cities at the SALGA National Conference in August/September 2011.



PRIORITY OBJECTIVE 7:STABLE MUNICIPAL GOVERNANCE

GOVERNANCE HANDS-ON-SUPPORT TO MUNICIPALITIES

A number of municipalities were provided with Governance Hands-on Support on issues of critical importance and peculiar to such municipalities. This assisted them to improve governance within their municipalities. SALGA also sent out circulars to assist municipalities on governance aspects relating to the 2011 Local Government elections. This included a guideline on the fi rst council meeting post-elections as well as circulars on amendments in legislation affecting local government.

SALGA Western Cape provided direct support to municipalities on LED and Planning Issues and support was provided to Breede Valley Local Municipality on 8 August 2011 about the GENESIS methodology and on 13 September 2011 about the GENESIS process.

Knysna Local Municipality and Bitou Local Municipality was assisted on 17 and 18 August 2011 with Councilor training provided by DBSA on their role in the IDP process. Oudtshoorn Municipality was assisted on conducting a LED Maturity Assessment Interview was held with the Acting Municipal

Manager, Manager Technical Services and Councilors on 23 September 2011.

IMPROVED GOVERNANCE

The SALGA Governance Hands-on Support Strategy was approved by the NEC and is being implemented. Municipalities in all the nine provinces have received hands-on support during this fi nancial year. Hands-on support was provided to in excess of 90 (ninety) municipalities:

Ramotshere Moiloa on Roles and Responsibilities, Baviaans on Delegations, Westonaria on SALGA Structure, Dipaleseng on Administering of oath, Cacadu on First council meeting, Maquassi Hills on Councillor remuneration, Mopani District on Election of Exco’s, Pixley ka Seme on Declaration of results, Knysna on the Return of council property by councillors, Tshwane on Budget process, Zululand on Elections of mayors, Thembesile Hani on non-returning councillors, Cape Agulhas municipality on Section 32 committee, King Sabata Dalindyebo on municipality Rules of order. Knysna and Sedibeng municipalities on circular 17 of 2011, Emfuleni on Remuneration of councillors, Bergrivier on Maternity leave of MM, Prince Albert on the Legitimacy of the Extension of


FullyAchieved1286%

NotAchieved214%

PO7. Stable Municipal Governance - Stable municipalgovernance



the Agreement between the municipality of Prince Albert and Sherpa Trade Invest 15 (Pty) Ltd and also advertisement for MMs, Bergrivier on ‘fruitless and wasteful expenditure’ vs. ‘irregular expenditure’, Gert Sibande on the provision of a mayoral residence and Offi ce Bearer’s handbook. Also Telephonic advise provided to Mafi keng, Alfred Nzo, Nkonkobe, Mogale City, Kagisano-Molopo, Zululand, Ephraim Mohale, Ruth Muphathi, Fazile Dabi, Cederberg, Greater Kokstad, Beaufort West and Vhembe District.

Ekurhuleni on MPACs, Emthanjeni on Quorum requirements, Kopanong on Upper Limits ,Merafong on Councillor allowances, Overberg District Municipality on the offi ce bearer’s handbook, Swellendam on Appointment of Appeal Committee and related matters, Mossel Bay, West Rand District Municipality on Pension Funds, Medical Aids, Tax, Maquissi Hills on Disciplinary steps for section 56 managers, Cacadu municipality on Oath of Affi rmation by a councillor, Central Karoo District on appointment of Acting MM, Breede Valley on Rules of Order, George on the use of Offi cial Transport by councillors. Advice provided to Cape Agulhas, Ramotshere Moila, Johannesburg Metropolitan municipality, OR Tambo and Sekhukhune.

OR Tambo DM on Roles and Responsabilities of political offi ce bearers, Buffalo City on Offi ce Bearers’ Handbook, Chis Hani on Appointment of section 56 managers and on the Establishment of an MPAC, Beaufort West on Special Council meeting , West Coast DM on Staff establishment , Bophirima on Upper Limits, Maquassi Hills on a legal dispute with the MM and on Election of an acting speaker , Breede Valley on the Rules of Order, Blue Crane on Ward Committee remuneration, Emthanjeni on Representation on Portfolio Committees, Alfred Nzo on Upper Limits, Laingsburg on Quorum Requirement, Overberg district on MPACs, NMBMM on Councillor Remuneration, Kagisano-Molopa on Code of conduct and ethics for councillors, Ramotshere Moila on Validity of contracts for senior managers, Cape Agulhas on Section 32 committee and Mangaung on Upper Limits.

Ehlanzeni on Upper Limits, Biavaans on UIF, JS Moroka on Councillors Travel Claims, Umzivumbu on the Remuneration of the MPAC Chair, Bergrivier on the Renewal of Contracts

of MMs, Lukhanji on the renewal of contracts for MM and directors, Mangaung on Policy for Councillor injuries and Insurance for Councillor property, Emthanjeni on Political Rights, on Representation in their Portfolio Committees and on Upper Limits Notice 2011; Kenneth Kaunda on Upper Limits Notice 2011, uMsunduzi on MPACs training documents, JS Moroka on Offi ce Bearer’s handbook , NMBM on their draft system of delegation and MPAC committees, Sisonke on Upper Limits Notice 2011, Biavans on Oversight. Disobotla, Mosselbay, Emfuleni, Ugu, Mandeni, West Coast and Alfred Nzo on payment of UIF by councillors.

SALGA GUIDELINES FOR RESTRUCTURING OF MUNICIPALITIES

SALGA Guidelines for Restructuring of Municipalities was approved by NEC and is referred to in IGR structures for consultation. The document aims to capacitate municipalities to ensure that appropriate legal and practical steps are put in place to manage the consequences of transition once the Municipal Demarcation Board (MDB) boundary re-determination process is fi nalised.

GUIDELINES ON ROLES AND RESPONSIBILITIES OF POLITICAL

OFFICE BEARERS

Final guidelines on roles and responsibilities of political offi ce bearers were circulated to all municipalities. Workshops were conducted in NW and NC provinces. Municipalities have been capacitated to clarify the roles and responsibilities of political offi ce bearers and to prepare the relevant terms of reference. This is aimed at ensuring that the council functionaries clarify and understand their roles better and that the municipality functions more effectively.

SALGA North West conducted a workshop on roles and responsibilities to understand their legislative powers and functions on 09 September 2011 at Matlosana Local Municipality. As a result of this workshop, municipalities in the province were capacitated to clarify the roles and responsibilities of political offi ce bearers and to prepare the relevant terms of reference, aimed at ensuring that the council functionaries clarifi es and understand their roles better and that the municipality therefore functions more effectively.



The Municipal Offi ce Bearers Handbook queries were distributed during the convening of District Based Workshops on Good Governance and Ethics and MPACs Establishment held on 23 and 30 September 2011. The province specifi c manual or pocket book on King III developed by PwC and SALGA was presented and distributed to all Councillors. The aim of this workshop was to support the NW municipalities in combating corruption and to provide training on the best practices with regards to oversight, aimed at enhancing the corporate governance of the municipalities, including positive and transparent accountability and audit outcomes and therefore greater public confi dence in the municipality.

A workshop was held on 07 September 2011 on the clarifi cation of roles and responsibilities of all offi ce bearers and the administration. This was aiming to assist the newly ushered councillors to municipalities. The participants were the Executive Mayors, Speakers, Chief Whips , MMCs, and Municipal Managers.

MUNICIPAL PUBLIC ACCOUNTS COMMITTEES GUIDELINES

Municipal Public Accounts Committees - MPACs Guidelines “Enhancing oversight in municipalities” were developed and approved by NEC. MPACs training conducted in WC, EC, GP, FS, and in Madibeng (NW). Best practices with regards to oversight were identifi ed and extensive MPACs training is provided to municipalities. This is done on MPACs in order to improve oversight, aimed at enhancing the corporate governance of municipalities.

SALGA Western Cape provided training on the establishment of Municipal Public Accounts Committees to the following municipalities: - Theewaterskloof: 19 January 2012, Prince Albert: 02 March 2012, Overstrand: 06 March 2012, Overberg District and Cape Alguhas: 09 March 2012, Speakersforum : 15 March 2012,Overberg District Councilors and offi cials.

WARD COMMITTEES

SALGA Gauteng conducted consultative forums for Ward Committees, CDWs, and ward Councillors to clarify roles and responsibilities for each concern parties. The forums also identifi ed impediments on the functioning of the ward

committees which were escalated to the relevant Speaker’s Offi ces.

SALGA Northern Cape assisted fi ve municipalities to establish ward committees: Joe Morolong, Nama Khoi, Sol Plaatje, Ga Segonyana, Kareeberg, and Kgatelopele.

SALGA Western Cape held Public Participation and Ward Committee Consultative Workshops at the four District Municipalities workshops on 10 May 2011 at Overberg District, 13 May 2011 at Central Karoo, 16 May 2011 at Cape Winelands, and 27 May at Eden District. Additionally, SALGA Western Cape supported Hessequa Municipality on 18 July 2011 regarding the establishment of ward committees and a delegations framework.

SALGA Mpumalanga assisted all 21 municipalities in the establishment of ward committees and coordinated three (3) district workshops on 23 September 2012 in Nkangala District Municipality, 28 September 2012 at Gert Sibande District Municipality and on 30 September at Ehlanzeni District Municipality. The targeted participants for all three districts workshops were the Ward Councillors, PR Councillors, and the Ward Committee Members.

GOOD GOVERNANCE

In partnership with IDASA and GIZ, SALGA produced a research paper titled “Understanding the current Good Practices of Local Government Accountability and Oversight in SA”. This provided recommendations on best practices with regards to Accountability and Oversight. These were identifi ed for the purpose of addressing and enhancing the corporate governance of municipalities.

The Blueprint on Effective Governance, Accountability and Resourcing was approved by the National Conference in September 2011. The Model for Effective Governance, Accountability and Resourcing of Ward Committees was approved by the NEC on 28 March 2012. This was endorsement for it to be rolled out to municipalities. Through this blueprint, municipalities are capacitated to improve Public Participation as a result of revising the ward participatory model. This will result in greater participation of communities in the affairs of local government and ultimately greater accountability.



SALGA Mpumalanga coordinated a workshop on King III Awareness Presentation on 07 September 2011 which was aiming on promoting good cooporate governance and transparency in Local Government. The participants were the Executive Mayors, Speakers, Chief Whip MMCs, and the Municipal Managers which was facilitated by PricewaterhouseCoopers. The participants were also awarded with certifi cates of attendance from PwC.

POLICY REVIEW PROCESS: WHITE PAPER ON LOCAL GOVERNMENT

AND GREEN PAPER ON COOPERATIVE GOVERNANCE

SALGA submitted comments on the DCoG Policy Review Process: White Paper on Local Government and Green paper on Cooperative Governance - A Framework for Developing a Refi ned Model for Local Government.

SALGA was represented in these IGR forums (DCoG Legislative Committee, Portfolio Committee, CoGTA Technical MinMECs and MinMECs) and the views of Organised Local Government were clearly articulated.

IGR

SALGA Free State initiated the fi rst meeting with the CEO of the Free State Provincial House of Traditional Leaders and agreed on the implementation plan of the MOU with the FSPHTL. It developed a draft provincial memorandum of understanding and an implementation plan which was endorsed by the Free State House of Traditional Leadership on 07 October 2011.

SALGA Free State also embarked on and participated in the ‘Governance Crisis’ Fact-Finding mission meeting in Thabo-Mofutsanyana District Municipality targeting Maluti-a-Phofung, Phumelela Local Municipalities, and Metsimaholo municipalities.



PRIORITY OBJECTIVE 8:CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT

ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY

MUNICIPAL HUMAN RESOURCES MANAGEMENT

In the 2011/12 fi nancial year, SALGA has developed policies on coaching and mentoring, retention and human capital management. The aim of these policies is to assist with the reduction of staff turnover whilst helping municipalities identify (from within) and retain talent. The effect of these is currently being monitored and it is hoped that its impact will be seen from the next fi nancial year onwards.

SALGA has developed a position on the proposed Human Resource Norms and Standards, proposed systems, legislation, and policies for LG Administration Integration. These positions were consolidated and submitted for consideration by National Government. The SALGA positions developed are aimed at ensuring that the sector is professional.

In order to ensure the discharge of strategic obligations in respect of capacity-building, SALGA has been appointed as a Board Member of the Local Government Sector Education Authority (LGSETA). The purpose of the LGSETA Board is to oversee the allocation of capacity building initiatives aimed

at capacitating Local Government. SALGA also chairs the Governance and Strategy Committee entrusted with the core business of the SETA. This enables SALGA to ensure that municipalities have access to the funds from the LGSETA for their capacity building programmes.

SALGA has developed the Performance Management System (PMS) Cascading Framework for municipalities. The Performance Management System Capacity Building Plan for the sector comprises of various elements such as the development of PMS guidelines, offering hands-on support, PMS implementation, and so on. A number of municipalities, particularly in the Eastern Cape, have been assisted in the implementation and cascading of the PMS to all other municipal employees.

CAPACITY BUILDING

The Centre for Municipal Research and Advice (CMRA) was appointed to facilitate the portfolio-based training in fi ve provinces. The aim of the training was to provide councillors with an in-depth knowledge of their portfolios thereby creating


FullyAchieved3868%

NotAchieved1832%

PO8. Capacity Building and Institutional Development -Enhanced skills and organisational systems and structures

of municipalities towards improved service delivery2011-12 FINAL PERFORMANCE


better skilled and knowledgeable councillors that make informed decisions.

Advisory Internal Audit Support was provided to selected municipalities on the improvement of audit outcomes. SALGA has guided these municipalities towards the achievement of improved audit outcomes. One of the core outcomes of the benchmarking programme is to complement the ability of SALGA to advise its members through peer–to-peer sharing of experiences. SALGA has facilitated partnerships with stakeholders. Most of these are geared towards providing support to municipalities in various performance areas.

A study was conducted on assessing local government capacity and the extent to which fi scal framework makes provision for the performance of environmental function.

Workshops regarding energy effi ciency and renewable energy were held in three provinces, Western Cape, North West, and Gauteng. The North West and Gauteng workshops involved knowledge sharing amongst offi cials and councilors regarding the implementation of energy effi ciency programmes in municipalities. The Western Cape Workshop involved municipalities from the Eden District Municipality. These municipalities were guided through a process of developing energy effi ciency and renewable energy strategies and action plans for their municipalities.

SALGA conducted water services master class for water services managers toward assisting municipalities to comply with the blue and green drop regulatory certifi cation requirements. The certifi cation programme aims to recognition municipalities that are managing their water and waste treatment facilities according to set norms and standards. SALGA further developed municipal benchmarking performance indicators that serve as a tool to measure municipal performance on the delivery of water services on areas as such product quality, operations and maintenance, water conservation demand management, and so on.

SALGA also conducted 30 case studies on the municipal water services institutional delivery mechanisms with the objective of understanding the performance trends in delivery of water services and the underlying reasons for such. Recommendations were further developed on how to address

the challenges highlighted in the 30 case studies. SALGA has also developed roles and responsibilities discussion document that will be used as a base in the development of bulk infrastructure fund for municipalities.

A Skills Audit was conducted in the Gauteng Province for all councillors in partnership with the Gauteng City Regions Academy during the week of the Cllr Induction. The skills audit aimed at determining the skills needed for each councillor. The outcomes of the audit now form the basis for capacity building programme identifi cation. A total of 695 councillors participated in the Audit.

MUNICIPAL ICT PRACTITIONERS NETWORK

In line with the advisory and profi ling mandate of SALGA, the LGICT Network (www.lgict.org.za) was launched and will enable local authorities, as well as other interested stakeholders, to share IT best practices, solutions, ideas and services. This will be done not only for their own mutual benefi t, but for the public they serve.

It is the exchange of actual municipal ICT practices that will lead to better networking, learning, peer-to-peer support, and collaboration within the local government sphere. There are currently more than 500 members on the site with an average of in excess of 100 hits per day. In terms of some the functions / services on the site:

• Ask an expert – where any member can ask for support or advice

• Knowledge sharing – any strategic policies, or ICT approaches / best practices can be shared for others to use

• Forum / blog – the most dynamic area of the site where lively discussions can take place.

On the SALGA ICT portal (www.lgict.org.za) all municipal ICT practitioners will be able to access, share and comment on what they feel is relevant ICT information, knowledge, ICT news, and good practice.



NATIONAL ICT LOCAL GOVERNMENT EVENT

SALGA hosted its fl agship LGICT event ‘ConnectIT’ in Johannesburg from 16 to 17 August 2011. The conference brought together key players within local government and ICT professionals to brainstorm ideas on the way ICT could be better harnessed to benefi t the municipalities and overcome common challenges.

There were more than 120 delegates. In excess of 80 percent of delegates were from municipalities across the country. All provinces were represented. Delegates had the opportunity to listen to the views and the research carried out by leaders in the fi eld including Internet Solutions, Dell, SAP, EOH, and Telkom.

The event was also fully sponsored by the private sector. Key themes which featured on the ‘ConnectIT’ agenda included how the profi le of ICT could be raised within municipalities, the issue of increasing broadband access and connectivity, incorporating IT governance into the business of local government, affordable e-participation solutions, and what South African municipalities could learn from local authorities in other developing countries.

FEASIBILITY STUDY ON SALGA FORMING AN ICT ACCREDITATION

SERVICE

When it comes to ICTs, SALGA would like to become both more supportive and proactive in transforming the local government to enable it to fulfi ll both its service delivery and developmental role.

Where possible, SALGA would be able to expand on its current role and assist municipalities in determining how best ICTs could be procured, put into practice, and given a greater profi le within municipalities. The aim would be to ensure an improving standard of municipal service delivery and administration.

SALGA developed a comprehensive feasibility study that will guide it in establishing an accreditation/ endorsement service targeted at ICT-related businesses, services, or products applied (sold) within municipalities. In terms of the SALGA ICT accreditation service as outlined in the feasibility study,

SALGA members will be supported by its efforts in focusing on challenges within the municipal procurement and management of ICTs (duplication, unaccredited / tested vendors or service providers, lack of strategy, integration, multiple systems etc).



SALGA EASTERN CAPE

NAME OF CAPACITY BUILDING INTERVENTION (SALGA MUST BE

THE LEAD)

IN PARTNERSHIP WITH: DATE NUMBER OF COUNCILLORS

NUMBER OF OFFICIALS

Generic Councillor Induction Programme

DPLTA , National Treasury and DBSA

26-15 July 2011 1117 -

Certifi cate in Local Government Law and Administration

University of Fort Hare 9 January 2012 31 10

Advanced Certifi cate in Local Government Law and Administration

University of Fort Hare 9 January 2012 25 -

Diploma in Local Government Law and Administration

University of Fort Hare 9 January 2012 32 -

Masters in Public Administration. University of Fort Hare 5 January 2012 30 -

Certifi cate in Public Administration for Community Services (NQF Level 4 programme).

University of Fort Hare 14 December 2012 87 -

Councillors attended the Rhodes Summer School on Transformation of Local Government

Rhodes university 12-15 September 2011 16 -

Councillors from KSD were trained on IDP

DBSA 21-25 November 2011 50 -

Amathole Disability Workshop DPSA 15 March 2012 15 20

LED Roundtable Events 23-24 August 2011

11-12 October 2011

20 35

Land Use and Spatial Development Planning Seminar

30 September 2011 15 30

Informal Trade Summit 15-16 November 2011 25 30

Tourism Workshop 07 December 2011 15 30

ICT Workshop 28 March 2012 5 30

LED Strategy Alignment Workshop 23 March 2012 25 10

Workshop for Disabled Youth Eastern Cape Aids Council 26 March 2012 20 9

Learning Event O.R.Tambo ATTIC 24 January 2012 14 14



SALGA EASTERN CAPE


THE LEAD)


NUMBER OF OFFICIALS

Local Economic Development (LED) Training

24-25 August 2011

International Relations (IR) Training 7-9 September 2011

Local Labour Forum (LLF) Training September 2011

Water Services Councillor Induction 27-28 February 2012

Municipal Finance Advanced Councillor Induction

29 Feb-1 March 2012

Waste Management Councillor Induction

8 March 2012

Municipal Finance Advanced Councillor Induction

14-15 March 2012

Human Settlements Councillor Induction

28-30 March 2012

MDG’s Workshop 18 October 2011 57 43

Annual Labour Law workshop 26- 28 July 2011 - 36

Presiding and Prosecution training 11-13 October 2011 15 18

Performance Management System Workshop

31 January 2012 20 38

Ingquza Hill Municipality Workshop on Conditions of Service

25 October 2011 - 50

TOTAL 1634 403

2 037



SALGA FREE STATE


THE LEAD)


NUMBER OF OFFICIALS

Training on HIV/AIDS Centre for Economics in Governance in Africa (CEEGA)

05 July 2011 30

Training of Trainers for the Councillor Induction Programme

CoGTA and LGSETA 9 – 10 June 2011 6 7

Councilors induction program CoGTA and LGSETA 27 June to the 15 July 2011

527 -

Train-the-Trainer workshop with the intention to roll-out the LLF training to all Member Municipalities

SALGBC and LGSETA 09, 10 and 11 May 2011

16 26) commissioners, managers and shop stewards

workshop on Service Improvement: Client Services

P3 Project 26 - 27 May 2011 Mohokare Local Municipality

P3 Project Tariff modelling training session

P3 Project 16 June 2011 22 Offi cials

IR Training to establish a panel of presiding chairpersons and prosecutors / initiators

SALGA , LG SETA and

IR Change

13 – 15 September 2011

16 -

Disaster management training SALGA National and NW University 5 – 7 December 2011 4 16

Training Tariff setting model P3 Project 2 February 2012

6 March 2012

8 March 2012

30 trainers for Setsoto,

Mohokare and Naledi Local

Municipalities

Training on Asset Accounting which is a requirement on compliance with GRAP and other International Standards

Akhile Management Consulting 3 - 4 August 2011 0 24

District LLF training 3 – 7 October 2011 20

Capacity building workshop for women sector to strengthen knowledge based on HIV and AIDS

SANAC 7 – 8 December 2011 10 13

MDG workshop SALGA National 11 October 2011 28 25

Disaster Risk Reduction Training North West University. 5 - 7 December 2011 4 16

BR and E workshop SALGA P3 and SALGA Western Cape

5 – 6 October 2011 17

Provincial Informal Trade Summit 13 – 14 October 2011 30 12

Leak Plugging Training SALGA P3 14–15 November 2011 7



SALGA FREE STATE


THE LEAD)


NUMBER OF OFFICIALS

Basic Sanitation White Paper Review Workshop

21 November 2011 12 18

Provincial workshop on Upper Limits of Salaries, Allowances and Benefi ts of Councillors

31 January 2012 8

Provincial workshop on the establishment of Municipal Public Accounts Committees

31 January 2012 8

Provincial workshop on the establishment of Municipal Public Accounts Committees

31 January 2012 45 8

Training on Mentoring and Coaching Water Affairs and MIS unit 6- 9 February 2012 14 5

IDP Environmental Chapter Workshop DETEA 24 February 2012 13 16

By-Laws Provincial Workshop CoGTA 29 February 2012 53 4

LED tools training 8 - 9 March 2012 18 Councillors responsible for

LED

13 LED practitioners

Waste Management Councillor Induction Programme

SALGA National and DEA 06 March 2012 12 6

Sanitation Tools and Guidelines Roll-out Workshop

Provincial Department of Human Settlements and COGTA

23 and 30 March 2012 15 17

Revenue Enhancement workshop DURCHAME Consulting 22 March 2012 - 35

Advance Councillor Induction programme for Executive / Mayors and MMC for fi nance

National Treasury 27 – 28 March 2012 31 -

Assessor Training Course focusing on the Waste Water Process Controllers

Aurecon 26 – 30 March 2012

Realisation of the Rights of Children UNICEF 19 – 20 March 2012 10 7

Integrated Mainstreaming LAMP 15 -16 March 2012 10 14

Community Library SAC and SALGA National 9 March 2012 7 8

Sports Infrastructure Funding CoGTA and SALGA National 09 March 2012 7 8

Anti-Corruption Workshop on 29 March 2012 7 4

Corporate Governance Workshop 30 March 2012 7 4

TOTAL 952 398

1 350



SALGA GAUTENG

NAME OF CAPACITY BUILDING

INTERVENTION (SALGA MUST BE

THE LEAD)

IN PARTNERSHIP WITH: DATE NUMBER OF

COUNCILLORS

NUMBER OF

OFFICIALS

Councillor Induction DLG+H and all municipalities 4-8 July 2011 803 0

Councillor Skills Audit Gauteng City Regions Academy

(GCRA)

4-8 July 2011 695 0

LED Training Gauteng City Regions Academy

(GCRA)

24-25 August 2011 3 22

IR Training SALGBC 7-9 September 2011 0 17

LLF Training SALGBC 22-24 February 2012

(Westonaria LM)

1-3 February 2012

(WRDM & Randfontein

LM)

28- 30 November 2011

(Sedibeng District)

3

0

3

12

5

16

Water Services Cllr Induction Department of Water Affairs,

DLG+H, LGSETA

27-28 February 2012 96 2

Municipal Finance Advanced Cllr

Induction

SALGA National and National

Treasury

29 Feb-1 March 2012 7 0

Waste Management Cllr Induction Department of Environmental Affairs 8 March 2012 51 2

Municipal Finance Advanced Cllr

Induction

SALGA National and National

Treasury

14-15 March 2012 22 0

Sign language introductory training

session

SALGA 20 March 2012 1 15

Human Settlements Cllr Induction DLG+H 28-30 March 2012 49 0

TOTAL 1733 91

1 824



SALGA LIMPOPO



THE LEAD)


COUNCILLORS

NUMBER OF

OFFICIALS

Councillor Induction Programme LGSETA and DBSA 27 June -16 July 2011 1117 None

Portfolio Based Induction on Water

Services

Dept. Water Affairs 06 -18 November 2011 437 35

Finance Management Training 13-14 February 2012 42 3

Disciplinary hearing skills Training LGSETA 11-13 July 2011 None 23

Labour Relations Act Training None 13-14 March 2012 26 4

Traditional Leaders Induction

Programme

None 27-29 March 2012 138 6

Executive Leadership Management

Programme

University of Pretoria 10 February 2012 32 21

Municipal Finance Management

Programme

University of Pretoria 12 October 2011- 30

May 2012

86 21

Training of Training Committees LGSETA 14 February- 20 March

2012

11 13

Ward Committee Training COGHSTA None

Disaster Management Training 27-29 February 2012 08 17

Free Basic Sanitation Workshop Department of Human Settlements 13 April 2011 12 23

Assessment of Organizational

Capacity for Environmental

Performance workshop

Department of Environmental

Affairs (National)

12 April 2011 15

SALGA / NERSA municipal

engagement workshop on Municipal

Electricity Distribution Licenses in

Limpopo Province

NERSA 03 February 2012 46

Sanitation Tools Roll Out Workshop Department of Human Settlements 27 March 2012. 50

Portfolio Based Induction For

Municipal Council on Role: Elias

Motsoaledi Local Municipality

LED Resource Centre 09 December 2011 40 03


Municipal Council on Role: Lepelle-

Nkupi Local Municipality

LED Resource Centre 66 03


Municipal Council on Role: Greater

Letaba Municipality

LED Resource Centre 07 February 2012 39 03



SALGA LIMPOPO



THE LEAD)


COUNCILLORS

NUMBER OF

OFFICIALS


Municipal Council on Role: Musina

Municipality



Municipal Council on Role: Mutale

Municipality



Municipal Council on Role:

Mookgopong Municipality

LED Resource Centre and

CoGHSTA

17 February 2012 19 03


Municipal Council on Role: Giyani

Municipality

LED Resource Centre 16 March 2012 48 03


Municipal Council on Role: Tubatse

Municipality

LED Resource Centre 20 March 2012 60 04


Municipal Council on Role: Belabela

Municipality

LED Resource Centre and

CoGHSTA

29 March 2012 7 05

Workshop On Oversight Role of

Councillors

Provincial Tresury 14 November 2011 55 05

Advance Councillor Induction on

Municipal Finance

National Treasury 13-14 February 2012 78 05

Stakeholder meeting August 2011 August 2011 33

Knowledge Management, Innovation

and Communication Seminar

SALGA alone 22-23 March 2012 80 92

Ward Committee Training and

Induction

Elias Motsoaledi LM 29 November 2011 270

Ward Committee Training and

Induction

Elias Motsoaledi LM 29 November 2011 270 12

Tubatse LM 07 December 2011 251 10

Fetakgomo LM 08-09 February 2012 110 8

Lepelle Nkumpi 30-31 March 2012 130 6

TOTAL 3481 478

3 959



SALGA MPUMALANGA



THE LEAD)


COUNCILLORS

NUMBER OF

OFFICIALS

Workshop on the Guidelines for

Mainstreaming Transversal issues

and Community Development Manual

for Councillors

CoGTA and Offi ce of the Premier –

Special Programmes ( OSDP, ORC,

OSW)

6-7 December 2011 18 39

LED Workshop COGTA 13-15 June 2011 0 40

ICT Workshop None 06 December 2011 2 11

CRDP and IDP Workshop COGTA 08 December 2011 2 09

Workshop on Revenue Enhancement PT and CGTA 14 February 2012 7 38

National Certifi cate in Municipal

Governance

University of Johannesburg and

LGSETA

March – October 2011 48

Advanced Certifi cate in Municipal

Governance


LGSETA

March – October 2011 09

Local Government Accounting

Certifi cate

SAICA and LGSETA July 2010 – November

2012

250

Integrated Development Plan (MIDP)

Learnership

DBSA and LGSETA May 2011 – May 2012 20

Integrated Development Plan, Skills

Programme

DBSA and LGSETA 12 – 16 March 2012 45 00

Local Economic Development

Learnership

DBSA and LGSETA September 2011 – July

2012

02 18

National Certifi cate: Water and Water

Waste Management

LGSETA February -2010 –

December 2011

250

Certifi cate: Occupation Directed

Education Training and Development

Practices


LGSETA

March 2011 – October

2011

18

Further Education and Training

Certifi cate: Marketing

Direct Marketing Association of

South Africa (DMASA) and Services

Seta (SSETA)

February 2011 –

October 2011

57

Workshop on Disciplinary Code and

Procedure Collective Agreement

– Dr Pixley Ka Isaka Seme Local

Municipality

None 05 May 2011 21



SALGA MPUMALANGA



THE LEAD)


COUNCILLORS

NUMBER OF

OFFICIALS

Workshop on Organisational Rights

(Main Collective Agreement) for LLF –

Mbombela Local Municipality

None 07 April 2011 34

Training for Presiding Offi cers LGSETA 22-24 August 2011 29

PMS Workshop None 03 February 2012 06 36

Training for LLF – Bushbuckridge

Local Municipality

None 22 February 2012 01 12

Workshop on Collective Agreement on

Disciplinary Code, LLF and Minimum

Essential Services Level Agreement

None 10 November 2011

(Gert Sibande District),

24 November 2011

(Ehlanzeni District) and

01 December 2011

(Nkangala District)

04 61

MIG Workshop COGTA 21 51

*Water Conversation, Water Demand

Management and local Regulation

Workshop

DWA 21 September 2011 20 participants

(Cannot be verifi ed whether

councilors or offi cials)

*Farm Dweller Electrifi cation

Workshop

Department of Energy; COGTA,

Eskom, DARDLA

27 July 2012 15 Participants

(Cannot be verifi ed whether

councilors or offi cials)

TOTAL 108 1051

Overall TOTAL 1159



SALGA NORTH WEST



THE LEAD)


COUNCILLORS

NUMBER OF

OFFICIALS

Workshop on Powers and Regulations

(Troika + 1)

SALGA 7 September 2011 14 07

District-Based Workshops on Good

Governance (King 3)

PwC, Treasury, DLGTA 22, 26 , 30 September

2011

69 18

Workshop on Cllrs’ welfare Support SALGA 28 September 2011 47 11

TOTAL 130 36

Overall TOTAL 166



SALGA NORTHERN CAPE


THE LEAD)


NUMBER OF OFFICIALS

Councilor Induction Programme National Treasury, LGSETA and DBSA

04 – 08 July 2011 407 None

Advanced Councilor Induction for Mayors and MMCs

National Treasury 22- 23 February 2012 43 None

Disability Framework Workshop 19 – 20 March 2012 30 15

Youth Development Conference Y-Age and Siyanda District Municipality

22 – 23 March 2012 19 101

Spatial Planning Seminar Department of Rural Development 25 October 2011 29 26

Disaster Management Workshop NWU and USAID 16-18 November 2011, 5-7 December 2011

Municipal Oversight Training Provincial Treasury 18 October 2011 113

Presiding Offi cers & Prosecutors Capacitated on Labour Related Issues

CoGTA

DWA

26-27 January 2012,02-03 February 2012

None 19

Main Collective Agreement and Conditions of Service

23 February 2012,28 February 2012

None 66

Institutional and Administrative Systems

29 February 2012 70 None

Councilor Development Programme Water and Sanitation

20 February to 12 March 2012

65 6

Councilor Induction Programme – Waste Management

27 March 2012 10 15

Executive Leadership Development Programme (ELDP)

LGSETAUniversity of Pretoria

15 – 16 April 201120 – 21 April 201112 – 13 May 201118 – 19 May 27 – 28 May 201121 – 22 July 201127 – 28 July 201119 – 20 July 201111 – 12 August 2011

81

TOTAL 1 115



SALGA WESTERN CAPE

NAME OF CAPACITY BUILDING INTERVENTION (SALGA MUST

BE THE LEAD)


NUMBER OF OFFICIALS

Executive Leadership Development Programme (ELDP)

UWC Group 13-7 October 2011-Mod131 October-4November 2011-Mod 228 November-2 December 2011-Mod 323-27 January 2011-Mod 420-24 February 2012-Mod 526 March 2012-Mod 6

37Was 38

Cllr Chabaan of Cape Winelands

DM excused herself from the course on 17 October 2011

0

Group 210-14 October 2011 –Mod 17-11 November 2011-Mod 25-9 December 2011-Mod 331 Jan-3 February 2012-Mod 427 February-2 March 2012 Mod 502 April 2012-Mod 6

42 0

PEPFAR HIV/AIDS Leadership Dev Program

UWC 26-30 March 2012 26 0

CIP 2011 City Of Cape Town (CoCT)

SALGA/CoCT 23 25 May 2011 Day 1 83 0

23 25 May 2011 Day 2 73 0

23 25 May 2011 Day 3 71 0

CIP 2011 Train of Trainer Vulendlela

SALGA/Treasury/DBSA 13 – 15 June 2011 2 8

CIP 2011 Training of Trainers WC SALGA/Treasury 24 June 2011 1 13

CIP 2011 Training of Trainers WC SALGA 7 July 2011 0 10

CIP 2011 WC Municipalities SALGA/Treasury 11 – 21 July 2011 Module 1 462 0

11 – 21 July 2011 Module 2 452 0

11 – 21 July 2011 Module 3 434 0

11 – 21 July 2011 Module 4 403 0

CIP 3 Mayors and MMCs for Finance Training

SALGA/Treasury 19 – 20 March 2012 Day 1 29 4

19 – 20 March 2012 Day 2 25 2

Confl ict Resolution and Mediation Training

Centre for confl ict resolution 15 February 2012 15 0



SALGA WESTERN CAPE


BE THE LEAD)


NUMBER OF OFFICIALS

Council Portfolio Training WC DLG/WC Treasury Mod 1: Rules of Procedure: Conduct at Meetings of a Municipal Council

274 0

Mod 2: The Role of the Councillor in Procurement

274 0

Mod 3: Oversight in Local Government

296 0

Mod 4: Delegation of Powers in Local Government

296 0

Mod 5: The Constitutional Mandate of Local Government

265 0

Mod 6: The Law Governing Decisions and Decision-making in Local Government

268 0

Mod 7: Code of Conduct for Councillors: Procedures for Disciplinary Hearings and Investigations

268 0

Mod 8: The Roles and Responsibilities of Municipal Councillors in terms of the Municipal Finance Management Act (MFMA)

235 0

Mod 9: The Role of the Speaker and Mayor in Local Government

235 0

Water Safety Plans Technical Training

DWA 14 -16 Nov 2011 16 0

Energy Effi ciency Workshop SALGA/SEA/DLG

23 November 2011 Day 1 6 18

24 November 2011 Day 2 3 13

Control Measure Workshop DWA 28 – 29 November 2011 16 0

Control Measure Workshop DWA 23 – 24 November 2011 17 0

National Land Transport Act Workshop

PGWC 18 October 2011 17 11

Landfi ll Site Management Workshop

Dept Environmental Affairs 7 – 11 November 2011 0 28

Process Controller training DWA/US 1 April 2011 – 31 March 2012 0 202

Municipal Accreditation Workshop DHS/CoCT/SALGA/Treasury 11 November 2011 10 6



SALGA WESTERN CAPE


BE THE LEAD)


NUMBER OF OFFICIALS

Ward Committee Training DLG Beaufort West 2-3 December 2011 (84 Total)

3 12

Breede Valley 16-17 March 2012 ( 77 Total)

4 6

Laingsburg 9-10 December 2011 (28 Total)

1 11

Prince Albert 2-3 December 2011 (56 Total)

3 4

Overstrand 24-25 February 2012 (53 Total)

1 3

Cape Agulhas 24-25 February 2012 (69 Total)

9 2

George 16-17 February 2012 (69 Total)

1 1

Theewaterskloof 11 and18/2012, 18/2/2012 (154 Total)

1 25

Service Improvement Training (SI) P3/SALGA WC 31 October -3 November 2011 0 34

and 8-9 February 2012 0 12

Roles and responsibilities of the Municipal P Accounts Committee

SALGA NATIONAL 25 November 2011 20 0

Budget Week 24 November 2011 11 0

Integrated Development Planning SALGA 17/18 August 2011 21 0

People with Disabilities SALGA 16 November 2011and 15 August 2011

12 28

HIV/AIDS SALGA 1February 2012 19 33

Youth Development SALGA 25 February 2012 4 43

Gender 24 -26 August 2011 2 21

Disaster management SALGA-ACDS 23-25 November 20112-4 April 2011

6 14

Municipal Development Goals and Human Dev Framework

SALGA 13 Oct 2011 20 26

Water Sector Councillor DWA 31 January 2012 70 Councillors 33 Offi cials

Waste Councillor Induction DBSA 20 March 2012 22 13

Waste Management TBC 28 February 2012 11 23

TOTAL 4892 659

5551



PRIORITY 9:REFORMING ORGANISED LOCAL GOVERNMENT

A MORE EFFECTIVE, RESPONSIVE, AND FINANCIALLY VIABLE SALGA

SALGA CONSTITUTIONAL AMENDMENTS

The draft proposals for the SALGA constitutional amendments documents were developed and submitted to the SALGA National Conference at the end of August 2011. The National Conference resolved that a special conference be convened in 2012 to discuss and adopt proposed amendments to the SALGA constitution. The National Executive Committee is currently considering a suitable date for this special conference.

The proposed amendments to Organised Local Government Act and other legislation were submitted to the SALGA National


Conference and to the NEC on 28 March 2012 as part of the report on legislation to be addressed pertaining to both over and under-regulation of LG and the review of OLG.

SALGA presented the proposed amendments to the Parliament Portfolio Committee on Cooperative Governance and Traditional Affairs (21 June 2011) and the DCOG (08 February 2012). The National Executive Committee of SALGA has begun engaging with the Minister of Cooperative Governance on the review, with a view to fi nding common ground on the key proposals that require priority attention.

FullyAchieved764%

NotAchieved436%

PO9. Reform Organised Local Government - A more effective, responsive and fi nancial viable SALGA



PRIORITY OBJECTIVE 10:CLIMATE CHANGE RESPONSE MEASURES AT MUNICIPAL LEVEL:

INTEGRATED CLIMATE CHANGE RESPONSES IN DEVELOPMENT PLANNING AND MANAGEMENT

ENERGY EFFICIENCY

SALGA and the SDC have signed a memorandum of understanding on energy effi ciency which is more focused on a monitoring and implementation project. Five municipalities (King Sabatha Dalindyebo, Mbombela, Polokwane, Rustenburg, and Sol Plaatje) have been nominated to pilot the project. This project will assist the nominated municipalities to reduce activities that contribute to greenhouse gas emissions. This has two positive impacts - saving energy and mitigating climate change.

As part of the project, SALGA has conducted an analysis regarding the implications of the implementation of energy effi ciency and demand-side management programmes on municipal fi nances. This analysis will provide municipalities with an understanding regarding the impact of these programmes on municipal fi nances. The fi ndings of the analysis will assist SALGA to infl uence national policy to address the implications of the implementation of energy effi ciency and demand-side management programmes on municipal fi nances.

Further to the analysis conducted, workshops were conducted in three provinces (Western Cape, North West, and Gauteng) regarding energy effi ciency and renewable energy. The North West and Gauteng workshops involved knowledge sharing between offi cials and councillors regarding the implementation of energy effi ciency programmes in municipalities.

SALGA Gauteng has partnered with University of Johannesburg and the Department of Local Government and Housing (DLG and H) under the umbrella of EnerKey to explore the possibility of the West Rand District Municipality having an energy effi ciency housing project to be the fl agship of the province.

The SALGA Western Cape workshop involved municipalities that included the Eden District Municipality. These municipalities were guided through a process of developing energy effi ciency and renewable energy strategies and action plans for their municipalities.


FullyAchieved467%

NotAchieved233%

PO10. Climate Change response measures at municipal level - Integration of climate change responses in

development planning and management2011-12 FINAL PERFORMANCE


ACID MINE DRAINAGE

Engagements with Gauteng municipalities took place during the reporting period. The fi rst engagement looked at the implications of Acid Mine Drainage (AMD) in the province and also sought to fi nd possible solutions to this challenge. This led to a follow-up event which was a joint effort between SALGA and Department of Local Government and Housing (DLG and H). The event took the form of a conference and addressed the following issues:

• Findings of the study on the impact of AMD led by the Department of Water Affairs

• The status quo on AMD

• Planned interventions

• The role of municipalities and its fi nancial implications

CLIMATE CHANGE

SALGA participated and represented the interest of Local Government at COP 17 from 29 November 2011 to 05 December 2011. Key negotiating positions were interrogated and a local government summit (as a separate event) deliberated on mitigation as opposed to adaptation with the sharing of best practices between local government being documented and presented. A detailed organisational report is to be generated by the national offi ce for adoption.

SALGA partnered with SACN, DEA and eThekwini, and led the implementation of a Local Government Programme on Climate Change (LGP4CC). The programme included a South African Mayors Conference on Climate Change, a BRICS session on Climate Change, an International Conference of Local Governments at COP 17, and a Local Government Pavilion at COP 17. This created awareness and increased the profi le of local government in the climate change response efforts. It led to the development of a guide to assist municipalities

to integrate the Climate Change programmed in their IDPs. The guide would assist municipalities to respond to the issues related to Climate Change.

As part of the response to climate change and ensuring that climate change is integrated to municipalities IDPs, Gauteng has conducted an analysis for three municipalities in the West Rand Region using their Integrated Development Plans as reference. The fi ndings indicated that these municipalities do not have Climate Change policies/strategies. However, there are some initiatives in place to mitigate climate change. Based on the outcome, SALGA has committed to assist municipalities to integrate the climate change programmes in their IDPs and has partnered with GIZ, DEA, and Cogta to produce a climate change toolkit which would assist municipalities to include climate change in their IDPs.

Along the initiative of assisting municipalities to include climate change programmes in their IDPs, SALGA is conducting workshops on climate change at a provincial level with an intention to deepen an understanding of the implications of climate change for developmental prospects in municipal areas. This is done to deliberate on climate change issues affecting local government and to identify priority initiatives that must be undertaken in the municipalities as a response to these common challenges for inclusion in municipal plans (IDPs and SDBIPs). SALGA North West conducted a Climate Change workshop on 29 September 2011 at the City of Matlosana Local Municipality in relation to the above issues.

SALGA Northern Cape convened Climate Change workshops on 16 February 2012 and 29 March 2012. The workshops aimed to report on the outcomes of COP17 which was held in Durban in December 2011. Additionally, SALGA Northern Cape assisted fi ve municipalities (Umsobomvu, Magareng, Gamagara, Kheis, and Richtersveld) to develop climate change response plans. SALGA Limpopo fi nalised the Draft District Climate Change Response Plan for the province.




FINANCIAL OVERVIEW AND ANNUAL

FINANCIAL STATEMENTS

This chapter contains reports by the SALGA Chief Financial Offi cer, Audit Committee Chairperson, Auditor-General, and Accounting Authority (Chairperson and Chief Executive Offi cer). It also contains fi nancial statements, statements of gifts, donations, sponsorship, and further detailed performance information summaries

Chapter 3


3.1 report of the chief nance of cer

3.1.1 OVERVIEW OF OPERATING RESULTS

Nceba MqoqiChief Finance Offi cer

It is an honour to present the operating results for the year ended 31 March 2012.

The organisation realised an operating surplus of R12.3 million (2011: operating defi cit of R8.3 million), thereby addressing the going-concern considerations from prior year.

The overall fi nancial performance is R2.8 million or 29.6 percent better than budget.

Total operating income increased by 27 percent to R293.3 million (2011: R231.0 million). The increase is attributable to the revision of the membership levy formula in the 2011/2012 fi nancial year as well as the buoyant sponsorship and donations received; and donor income recognised.

Operating expenditure for the year under review is R284.7 million (2011: R238.2 million) the increase of 20 percent was mainly to programmes targeted to membership support.

The organisation’s fi nancial management practices are sound as evidenced the Auditor-General expressing an unqualifi ed audit opinion on SALGA’s fi nances for a third consecutive year.



3.1.1.1 Overview of operating results

Operating revenue composition

SALGA as an association of municipalities i.e. organised local government within the Republic, is primarily funded from membership fees.

Membership levy income remains the main source of revenue for SALGA, and comprises 75 percent of total income (2011: 63 percent).

For the year under review the organisation reviewed its membership levy formula, as a result of the increased mandate from its membership to fund programmes and its operations. The applicable formula for the year under review is as follows:

Municipality Type Applicable formula 2011/2012 fi nancial year

Metropolitan municipality A fl at rate of R9.5 million subject to an annual infl ationary escalation.

District and Local municipalities 0.7% of the municipal annual salary budget with a minimum billable levy of R200 000 p.a.

Payment levels

As indicated above, SALGA is primarily dependent on membership fees for its operational sustainability, the payment levels - key performance indicator (KPI) is an important KPI in that it determines the rate at which the organisation is able to roll-out its programmes in pursuance of its mandate.

The payment levels for membership levies at 31 March 2012 remained steady at 89 percent (2011: 90 percent).

The convening of the National Conference on 29 August 2011 to 1 September 2011, which is an elective conference in terms



of the SALGA’s constitution, had buoyed the collection rate during the year, such that it peaked at 97 percent by the fi rst half of the fi nancial year. The improvement is underpinned by the fact that SALGA’s constitution requires all members to be in good standing in order to participate freely at the Conference and exercise their right to vote.

The payment levels monthly intervals for the 2011/12 fi nancial year is illustrated below.

The key feature of the payment level curve for the 2011/12 fi nancial year is that payment levels of 97 percent were achieved on the eve of convening of the National Conference on 29 August 2011 to 1 September 2011, this was subsequently watered down during the year as the organisation raised additional invoices post the conference giving effect to the revised formula after adoption by Conference.

In terms of SALGA’s constitution membership levies are billed on 1st April and payable on 1st July each year, meaning that by 1st July the payment levels should be 100 percent. However, as a result of misaligned fi nancial years between SALGA and its membership this is not always possible.



The payment levels as at 31 March 2012 per province are tabulated below:

Province Payment levelsCurrent year

Payment levelsOveral

Eastern Cape 91% 88%

Free State 88% 90%

Gauteng 88% 91%

Limpopo 104% 98%

Mpumalanga 86% 79%

North West 91% 78%

Northern Cape 82% 88%

Western Cape 91% 91%

Total 91% 89%

Operating income variance analysis by category

Operating income was better than budget by R12.0 million or 4 percent primarily as a result of donor funds recognised performing better than budgeted. The organisation’s strategy is to leverage as much external revenue to fund specifi c programmes in order to alleviate the over-reliance on membership fees.



Operating expenditure

Total operating expenditure is R12.5 million or 4 percent ahead of budget, as a direct result of donor funded programmes performing better than budget.

Operating expenditure, per business unit is tabulated below:



Province / Directorate Adjusted Budget - 2011/2012 Financial Year Actual - 2011/2012 Financial Year

R thousand

Offi ce of the Chief Executive R 35 683 R 37 574

Community Development R 5 233 R 6 583

Economic Development & Planning R 10 476 R 11 271

Finance & Corporate Services R 63 275 R 63 933

Governance, Inter-Governmental Relations R 6 420 R 6 467

Municipal Institutional Development R 7 704 R 8 191

Municipal Infrastructure & Service R 15 726 R 16 084

Strategy, Policy & Research R 5 988 R 6 201

Eastern Cape R 17 875 R 18 971

Free State R 17 759 R 18 912

Gauteng R 17 046 R 17 600

Limpopo R 13 572 R 14 340

Mpumalanga R 14 348 R 14 917

Northern Cape R 13 575 R 14 499

North West R 12 234 R 12 617

Western Cape R 15 197 R 16 552

Grand Total R 272 111 R 284 712



The graphic representation of operating expenditure by business unit is illustrated below:

Organisational structure and operating expenditure

The key activities of the organisation are categorised in terms of SALGA’s core business which is externally focused i.e. fulfi lling the employer role for member municipalities; advocate, advise and lobby for member municipalities; as well as provide support. These are represented by the following business units:

• Municipal Institutional Development;

• Strategy; Policy and Research;

• Municipal Infrastructure and Services;

• Economic Development and Planning;

• Community Development;

• Governance and Inter-Governmental Relations;

In provincial offi ces the above mentioned activities/functions are replicated throughout with a regional and geographic bias.



The activities undertaken in the two programmes (i) Offi ce of the Chief Executive; and (ii) Finance & Corporate Services are focused on organisational strategic direction; internal governance; marketing & communications; international relations and organisational support to all business units (programmes) in all facets of their activities – these range from offi ce accommodation; facilities management; ICT infrastructure & services etc. Although activities at provincial offi ces are primarily focused with programme implementation these also include though to a limited extent, activities focused on strategy and provincial governance functions:

In short, the activities that the national offi ce and the provincial offi ces perform are aligned as follows:

SALGA NATIONAL OFFICE SALGA PROVINCIAL OFFICES

• Organisation-wide strategy development.

• Function-specifi c strategic leadership and direction.

• Research and policy development.

• Special projects, and sector-related restructuring (e.g. single public service, electricity, transport).

• Serving as a sector-wide centre of knowledge and expertise.

• Organisational-wide business planning.

• Organisational-wide performance planning, monitoring and facilitation.

• International relations (at national level).

• Programme management integration and evaluation.

• Intergovernmental relations (at national level).

• Stakeholder engagement.

• Driving and co-coordinating programmes with national strategic imperatives.

• Interpretation of the SALGA strategy and ensuring alignment of provincial tactical and operational plans to the organisation-wide strategy.

• Providing input to the organisational strategic formulation process.

• Provision of business information based on geographical context.

• Programme execution in the provinces and technical support (e.g. LGTAS).

• Provincial organisational performance delivery and reporting.

• Provision of support to municipalities regarding international relations (e.g. at the level of twinning arrangements in respect of individual municipalities).

• Management of intergovernmental relations (e.g. at the provincial level).

• Facilitating and promoting knowledge exchange between municipalities.

SALGA’s core functions as outlined above account for most of the operating expenses at 64.3 percent or R183.2 million (2011: 53 percent R123.3 million), this covers the entire array of the service offering to member municipalities.

The Finance & Corporate Services function/activity which includes the provincial function of Finance & Administration is the 2nd highest activity in terms of cost and accounts for 22.5 percent or R63.9 million (2011: 34.8 percent or R83.3 million) of the total expenditure. Included in this fi gure is the non cash fl ow items such as depreciation on property, plant and equipment; amortisation of intangible assets; the provision for impairment trade receivables; as well as the normal operating expenses incurred in support of the other business units such as rent paid for offi ce accommodation; facilities management; provision of ICT infrastructure & services; human resource functions.

The activities within the Offi ce of the Chief Executive account for 13.2 percent or R37.6 million (2011: 12.7 percent or R 30.4 million) of the total operating expenditure. This programme is responsible for convening all the SALGA Governance structures such as the NEC meetings; the National Members Assembly; Audit Committee: Performance & Remuneration Panel etc. The legal and compliance function/activity also falls within this programme.



Non-operating income

Total non-operating income / (expenditure) refl ects a net non-operating income of R3.7 million for the year under review, whilst in prior year the result was a net non-operating expenditure of R1.0 million. The positive variance is attributable interest earned as a result of high positive cash balances maintained during the year.

Overview of operating results per Strategic Objective

SALGA’s annual performance plan (APP) is underpinned by the Change Agenda with its fi ve strategic objectives listed hereunder:

1) Improve SALGA’s capacity to support and advise its members.

2) Improve SALGA’s capacity to engage with stakeholders and lobby and advocate them on issues in the interests of member municipalities.

3) Improve SALGA’s capacity to effectively represent members as the employer.

4) Enhance and maintain a high profi le locally, regionally and internationally.

5) Improve SALGA’s corporate governance and internal functioning.

The change agenda strategic objectives enable the organisation to deliver more effectively on its mandate and to address corporate governance problems inherited from preceding years.



The APP is also underpinned by the ten strategic priorities – Priority Outcomes that are designed to give focus to SALGA’s work as the organisation fi nds it niche in a congested space, in a context where resource constraints are a considerable challenge.

The organisations actual expenditure against budget per strategic objectives are as follows:

Change Agenda



Priority Outcomes

3.1.1.3 Financial position

The fi nancial position of the organisation as at 31 March 2012 refl ects positive net assets of R10.2 million (31-Mar-2011: negative net assets of R2.1 million).

In terms of solvency the organisation is solvent with an adequate asset coverage rate of 11 times. Also refer to the organisations going-concern considerations / assessment included in the report of the accounting authority – part 3.4.7.

3.1.1.4 Overview of donor funded projects

The organisation has three main donor funded projects; namely:

• The Masibambane project;

• The P3 Project; and

• The SDC project.



Masibambane project

The Masibambane project is a European Union donor funded programme (funds are channelled throught DWA) aimed at capacity building, infrastructure development and ensuring viable and sustainable delivery of water and sanitation services.

2012 2011

Movement during the year - Masibambane

Opening balance 8 264 382 13 788 117

Additions during the year 4 196 073 6 526 014

Income recognition during the year (4 608 270) (12 049 749)

Deferred income 7 852 185 8 264 382

The P3 project

The P3 project is funded by the Swedish International Development Agency. The objective of this project is to provide municipalities with an analytical framework and an organisational set up that will improve dialogue between the business community and the municipality and that will also be used to promote strategy development and business related projects during the year of implementation. This project had a 24 month duration and it ended on 29 February 2012.

2012 2011

Movement during the year – P3

Opening balance (165 016) 2 955 426

Additions during the year 1 765 354 15


Amount included in Trade and other receivables - Note 9 1 189 249 165 016

Deferred income - -

The SDC project

The Swiss Agency for Development and Corporation agreed to support SALGA to build capacity in the monitoring and implementation of energy effi ciency. The project has two components: Monitoring of energy effi ciency targets in the building sector to the Department of Energy and Cooperation support to SALGA for the implementation of the capacity building component.



2012 2011

Movement during the year – SDC

Opening balance 2 185 847 2 400 000


Income recognition during the year (3 730 899) (215 843)

Amount included in Trade and other receivables - Note 8 1 538 901 -

Deferred income - 2 185 847

3.1.1.5 Conclusion and outlook for the year ahead

In an effort to alleviate the over-reliance on a single revenue source viz. membership fees, the organisation developed a funding model, that was adopted by members during the National Members Assembly (NMA) held on 11-12 May 2010 in Kimberley and presented to the Executive Authority and the National Treasury during 2010, in order to mitigate against the structural under-funding of the organisation versus its mandate vis-à-vis the mandatory participation in Inter-Governmental Relations forums. At reporting date the Executive Authority and National Treasury were still interrogating the funding model. It is still anticipated that the new funding model will be implemented in the 2013/2014 fi nancial year.

As reported on note 34 to the annual fi nancial statements; from 1st April 2012 i.e. the 2012/2013 fi nancial year SALGA KwaZulu-Natal has rejoined the SALGA fold of a unitary organisation.

In conclusion I express my sincere appreciation to the Chief Executive Offi cer, Xolile George for his continued support; leadership; and strategic direction.

I also extend my appreciation to the Finance team for the immense contribution during the year.

NCEBA MQOQI

CHIEF FINANCIAL OFFICER

31 July 2012


3.2 report of the audit committee

Temba ZakuzaAudit Committee Chairperson

The Audit Committee is pleased to present the report for the fi nancial year ended 31 March 2012.

Audit Committee Members and Attendance

The SALGA Audit Committee is constituted in terms of section 77(a) of the Public Finance Management Act (PFMA) as well as Treasury Regulations 27.1.1; 3 and 4 and meets as per its approved terms of reference.

Four meetings were held during the 2011/2012 fi nancial year. These meetings were attended by external auditors, the Chief Executive Offi cer, Chief Financial Offi cer, the Head of Internal Audit, and other relevant corporate offi cials. The Chairperson of the Audit Committee reports on committee activities to the National Executive Committee on a regular basis. All members give a declaration at each Audit Committee meeting of any personal or fi nancial interests that may confl ict with their duties in this regard.



The table below highlights the Audit Committee members and the record of attendance of Audit Committee meetings:

MemberRecord of Attendance

21/05/11 29/07/11 25/11/11 22/03/12

Mr. Temba Zakuza-

Chairperson

Ms. Octavia Matshidiso Matloa-

Memberx

Mr. Chose Andrew Kenilworth Choeu- Member

x x

Ms. Phumelele Ndumo-Vilakazi -

Memberx

Mr. Mahlatsi Phineas Malaka-

Member

Audit Committee Responsibility

The Audit Committee reported that it has complied with its responsibilities arising from Section 51(1) (a) (ii) and section 76(4) (d) of the PFMA and Treasury Regulations 27.1.The Audit Committee adopted the appropriate formal Terms of Reference as its Audit Committee Charter and has regulated its affairs in compliance with these Terms of Reference. It has discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control

The review of the effectiveness of the system of internal control by the Audit Committee is informed by the reports submitted by the Internal Audit Function and Management who are responsible for the development and maintenance of internal control system.

Signifi cant weaknesses have been reported from the reports issued by the Internal Audit Function and Auditor General. These weaknesses continue to be addressed by management.

Risk Management

An organisational risk register that identifi es the major risks and potential treats to the strategic and directorate / provincial objectives of SALGA has been developed. These risks are analysed, evaluated, and mitigated by means of suitable measures. Management has also developed action plans to reduce the severity of each risk exposure to an acceptable level. The Risk Management Unit reviews management assertions made on the status of implementation of action plans in the risk register and reports them to the Audit Committee on a quarterly basis.

Internal Audit Function followed a risk-based approach and developed an appropriate Internal Audit Coverage plan in order to provide assurance on the effectiveness of risk mitigating measures.



Evaluation of Financial Statements

The Audit Committee has:

• Evaluated the fi nancial statements of South African Local Government Association for the period ended 31 March 2012.

• Reviewed the report of the Auditor General to management and management response thereto.

The Audit Committee concurs and accepts the conclusion of the Auditor-General on the annual fi nancial statements. It is of the opinion that the audited fi nancial statements be accepted and read together with the report of the Auditor-General.

TEMBA ZAKUZA

CHAIRPERSON OF THE AUDIT COMMITTEE

Pretoria

31 July 2012


3.3 report of the auditor-general to parliament

on south african local government association (salga) for the year ended 31 March 2012

REPORT ON THE FINANCIAL STATEMENTS

I ntroduction

1. I have audited the fi nancial statements of the South African Local Government Association (SALGA) set out on pages 136 to 210, which comprise the statement of fi nancial position as at 31 March 2012, the statement of fi nancial performance, statement of changes in net assets and the cash fl ow statement for the year then ended, the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Accounting authority’s responsibility for the fi nancial statements

2. The accounting authority is responsible for the preparation and fair presentation of these fi nancial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Publ ic Finance Management Act of South Africa, 2003 (Act no. 1 of 1999) (PFMA) and for such internal control as management determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Audi tor-General’s responsibility

3. My responsibility is to express an opinion on these fi nancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2001) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of SALGA as at 31 March 2012, and its fi nancial performance and cash fl ows for the year then ended in accordance with SA Standards of GRAP and the requirements of the PFMA.

Emphasis of matters




7. I draw attention to the matters below. My opinion is not modifi ed in respect of these matters.

Signifi cant uncertainties

8. With reference to note 30 to the fi nancial statements, the entity is a defendant in various lawsuits. The outcome of these lawsuits cannot be determined at present and no provision has been made for any liability that may result.

Additional matter

9. I draw attention to the matter below. My opinion is not modifi ed in respect of this matter.

10. The supplementary information set out on pages 205 to 210 does not form part of the fi nancial statements and is presented as additional information. I have not audited this schedule and, accordingly, I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

11. In a ccordance with the PAA and the General Notice issued in terms thereof, I report the following fi ndings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

12. I per formed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 211 to 281 of the annual report.

13. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defi ned, verifi able, specifi c, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected objectives is assessed to determine whether it adequately refl ects the facts (i.e. whether it is valid, accurate and complete).

14. There were no material fi ndings on the annual performance report concerning the usefulness and reliability of the information.

Additional matter

15. Although not material fi ndings concerning the usefulness and reliability of the performance information was identifi ed in the annual performance report, I draw attention to the following matter below:




Material adjustments to the annual performance report

16. Material misstatements in the annual performance report were identifi ed during the audit, majority of which were corrected by management.

Compliance with laws and regulations

17. I perf ormed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual fi nancial statements, performance and annual report

18. The fi nancial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 55(1)(a) and (b) of the PFMA. Material misstatements of disclosure items identifi ed by the auditors were subsequently corrected, resulting in the fi nancial statements receiving an unqualifi ed audit opinion.

Expenditure management

19. The accounting authority did not take effective and/or appropriate steps to prevent irregular expenditure, as per the requirements of 51(1)(b)(ii) of the PFMA and National Treasury Regulations 16A6.3(c) and 16A6.3(e).

Procurement and contract management

20. Suffi cient appropriate audit evidence could not be obtained that goods and services of a transaction value above R500 000 were procured by means of inviting competitive bids and that deviations approved by the accounting offi cer were only if it was impractical to invite competitive bids, as required by Treasury Regulations 16A6.1 and 16A6.4.

21. The bid documentation did not specify the evaluation and adjudication criteria to be applied, as required by section 51(1)(a)(iii) of the PFMA.

Internal control

22. I cons idered internal control relevant to my audit of the fi nancial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the signifi cant defi ciencies that resulted in fi ndings on compliance with laws and regulations included in this report.

Leadership

23. The accounting authority did not exercise adequate oversight responsibility regarding fi nancial and performance reporting and compliance with related internal controls.




Financial and performance management

24. Management did not establish and communicate policies and procedure to enable and support understanding and execution of internal control objectives, processes and responsibilities.

25. Management did not review and monitor compliance with applicable laws and regulations

OTHER REPORTS

Investigations

26. An investigation initiated in 2006 by the National Prosecuting Authority to probe possible irregularities over procurement and supply chain procedures is still ongoing.

Donor funding

27. An audit as required by the funding agreement, for donor funds received to build capacity in the monitoring and implementation of energy effi ciency is currently underway

Pretoria

31 July 2012


3.4 report of the accounting authority

3.4.1 Statement of responsibility by members of the Accounting Authority (National Executive Committee)

The maintaining of accounting and other records, as well as an effective system of internal control, is the responsibility of the accounting authority. In the opinion of the accounting authority (NEC) this requirement has been complied with.

The preparing of fi nancial statements that fairly present the state of affairs of SALGA as at year-end and the operating results for the year is the responsibility of the accounting authority. The Auditors are expected to report on the annual fi nancial statements. SALGA’s annual fi nancial statements are prepared on the basis of the accounting policies set out therein. These policies have been complied with on a continuous basis.

Approval and post-balance sheet events

The National Offi ce Bearer’s (NOB) approved the 2011/12 annual fi nancial statements set out on pages 136 to 210 and the performance information set out on pages 211 to 281 on 30 May 2012. The National Executive Committee (NEC) subsequently considered these on 24 August 2012. In the NEC’s opinion the annual fi nancial statements, fairly refl ect the fi nancial position of SALGA at 31 March 2012 and the results of its operations for the period then ended.

No material facts or circumstances have arisen between the date of the balance sheet and the date of approval, which affect the fi nancial position of SALGA as refl ected in these fi nancial statements.

The NEC is of the opinion that SALGA is fi nancially sound and operates as a going concern, and it has formally documented the facts and assumptions used in its annual assessment of the organization’s status.

THABO MANYONI

SALGA CHAIRPERSON

XOLILE GEORGE

CHIEF EXECUTIVE OFFICER

Pretoria

24 August 2012



3.4.2 Composition of the Accounting Authority (National Executive Committee)

In terms of Section 49 of the PFMA, the governing body of SALGA is the accounting authority, also referred to as the National Executive Committee (NEC) in terms of the SALGA constitution.

The accounting authority of SALGA is comprised by the following councillors:

Name of member Role Provincial chairperson (where applicable)

Cllr. T. Manyoni Chairperson

Cllr. M. Nawa Deputy Chairperson

Cllr. N. Sihlwayi Deputy Chairperson

Cllr. N. Hermans Deputy Chairperson

Cllr. F. Maboa-Boltman Additional member

Cllr. D. Mazibuko Additional member

Cllr. S. Mashilo Additional member Mpumalanga

Cllr. C. Neethling Additional member

Cllr. J. Matlou Additional member

Cllr. B.P. Moloi Additional member

Cllr. S. Pillay Additional member (co-opted)

Cllr. N. Meth Ex offi cio member Eastern Cape

Cllr. B. Mdzangwa Ex offi cio member Free State

Cllr. P. Tau Ex offi cio member Gauteng

Cllr. S.W. Mdabe Ex offi cio member KwaZulu-Natal

Cllr. D. Magabe Ex offi cio member Limpopo

Cllr. W. Johnson Ex offi cio member Northern Cape

Cllr. G.K. Lobelo Ex offi cio member North West

Cllr. D. Qually Ex offi cio member Western Cape

Mr. Xolile George Ex offi cio member (CEO)

The current NEC were elected in the last National Conference held on 29 August 2011 to 1 September 2011, in terms of clause 11.1 of the SALGA constitution, where the chairperson; three (3) deputy-chairpersons; and six (6) additional members were elected.

The NEC has exercised its powers as conferred by the SALGA constitution in fi lling any vacancies in between National Conference in terms of clause 11.3 of the SALGA constitution. The NEC can co-opt up to 4 additional members as members of the NEC and as at 31 March 2012 the NEC had one confi rmed co-option.



The term of the SALGA NEC is 5 years; the current term is due to end at the conclusion of the current political term of offi ce for local government.

With the exception of Xolile George who serves as an ex offi cio member in his capacity as Chief Executive Offi cer of the organisation, all other NEC members are councillors and are deemed to be ‘independent non-executive directors’ of SALGA as defi ned for state-owned enterprises (SOEs) in the September 2002 Protocol on Corporate Governance in the Public Sector. A non-executive director is a person who has not been employed by the SOE in any executive capacity for the preceding three fi nancial years; and is (in relation to the SOE) not a signifi cant supplier or customer, has no signifi cant contractual relationship and is not a professional advisor, other than in his or her capacity as a director.

3.4.3 National Executive Committee members’ interest in contracts

All NEC members are required to complete a register of interests. This register is updated on an annual basis. Refer to note 31 which contains full disclosure on related parties.

3.4.4 Remuneration of National Executive Committee members’ and NEC sub-committees

Members of the NEC are not remunerated for the offi ce they occupy.

Non-NEC members of the audit committee and the performance and remuneration committee are reimbursed on an hourly claims basis according to professional fee schedules.

3.4.5 National Executive Committee Oversight Sub-Committees

The NEC has established sub-committees in accordance with the requirements of the King code on corporate governance. These governance committees discharge their role as oversight committees and report to the NEC.

3.4.5.1 Audit Committee

The organizations audit committee is constituted in terms of section 77(a) of the Public Finance Management Act (PFMA); as well as per regulation 27.1.1; and 27.1.4 of the PFMA Treasury Regulations (2005).

The audit committee is constituted as follows:

Name of member Role

Mr. Temba Zakuza Chairperson

Ms. Octavia Matloa Member

Mr. Phineas Malaka Member

Mr. Chose Choeu Member

Ms. Phumelele Ndumo-Vilakazi Member

The members of the audit committee have been remunerated as follows, for the year under review:

NEC members are not remunerated for the offi ce they occupy.



Name of member Attendance fees Reimbursed travel cost Total

Mr. Temba Zakuza 45 472 1 441 46 913

Ms. Octavia Matloa 30 228 295 30 523

Mr. Phineas Malaka 34 350 6 111 40 461

Mr. Chose Choeu 20 610 886 21 496

Ms. Phumelele Ndumo-Vilakazi 37 098 1 328 38 426

Total 167 758 10 061 177 819

3.4.5.2 Performance and Remuneration Committee

The organization has a performance and remuneration committee that supports implementation and institutionalisation of performance management within the organization. The Panel is an advisory body to the NEC authorised to review, guide and support SALGA in the proper implementation and strategic alignment of the organizational performance management policy and procedures, remuneration philosophy and strategy.

The performance and remuneration committee is constituted as follows:

Name of member Role

Mr. Michael J Oliver Chairperson

Ms. Elizabeth Dlamini-Khumalo Member

Mr. Blake Mosley-Lefatole Member

Dr. Faizel Randera Member

Mr. Zwelibanzi Mntambo Member

Ms. L. Machaba-Abiodum Member

Cllr T. Manyoni Ex offi cio member

Cllr. N. Hermans Ex offi cio member

Cllr. N. Sihlwayi Ex offi cio member

The members of the performance and remuneration committee have been remunerated as follows, for the year under review:



NEC members are not remunerated for the offi ce they occupy.

Name of member Attendance fees Reimbursed travel cost Total

Mr. Michael J Oliver 81 473 1 398 82 871

Ms. Elizabeth Dlamini-Khumalo 64 890 1 540 66 430

Mr. Blake Mosley-Lefatole 7 210 98 7 308

Dr. Faizel Randera 57 680 1 457 59 137

Mr. Zwelibanzi Mntambo 60 564 1 417 61 981

Ms. L. Machaba-Abiodum 11 536 295 11 831

Ms. Boitumelo L Mahlangu 11 536 5 532 17 068-

Cllr. N. Hermans - - -

Cllr. N. Sihlwayi - - -

Total 294 889 11 737 306 626

3.4.6 Remuneration of Senior Management

Senior Management includes the Chief Executive Offi cer, Executive Directors and Provincial Executive Offi cers. The breakdown of Senior Management Remuneration forms part of the annual fi nancial statements and reported on note 21.

Annual Remuneration 2012 2011

Annual Remuneration 18 024 716 16 166 781

Contribution to UIF, Medical and Pension 201 269 261 081

Subsistence and Travel Allowance 133 953 455 379

Performance related awards 1 533 403 1 410 114

Total 19 893 341 18 293 355

3.4.7 Going-concern considerations

The SALGA NOB reviewed the annual fi nancial statements for 2011/12 fi nancial year and information regarding the forthcoming fi nancial year, to assess the going concern status of SALGA. Based on this information, the NOB has every reason to believe that SALGA will remain a going concern.

• SALGA continues to receive Parliamentary grant funding. The total Parliamentary allocation for 2011/12 is R25.5 million. The projected MTEF allocation for 2012/13; 2013/14; and 2014/15 is R26.7 million; R26.2 million; and R27.4 million respectively.

• In terms of other funding SALGA has succeeded in raising R12.8 million (2011: R6.0 million) in sponsorship income (over 100 percent increase).

• The organisation has secured funding from donors to pursue its mandate inn ensuing years to the tune of R4.0 million.



• At 31 March 2012, the statement of fi nancial position shows that it has already secured R1.6 million (2011: R1.8 million as ‘income received in advance’. The amount represents membership levies paid in advance by member municipalities.

• The statement of fi nancial position refl ects total assets of the organisation at 31 March 2012 at R 72.6 million (2011: R52.9 million). This represents an increase in the net asset value.

• The organisation is solvent with total assets exceeding total liabilities by R10.2 million. Net assets of the organisation increased over the period.

• The solvency rate is 1.16 times, this means that SALGA had a liability of 100 cents for each 116 cents it holds in total assets.

• Total currents assets at R48.7 million are less than the current liabilities of R60.7 million. The current ratio is then 80.2% which means that SALGA had 80 cents in current assets to cover every 100 cents of current liabilities. However, it is worth noting that R19.2 million worth of current liabilities relate to rolled-over funds, that will reduce once the work is performed and thereby result in a favourable current ratio.

• The organisations operations resulted in an operating surplus of R12.3 million, and the MTEF budgets projects operating surpluses in terms of the organisational strategy.

• The organisation has also reviewed its membership levy formula for the 2012/2013 fi nancial year, resulting in a projected growth for membership levy income.

Other aspects considered in assessing the organisation’s going-concern are the following:

The Constitution of the Republic of South Africa in section 163 envisages an important role for organised local government and provides that an Act of Parliament must cater for the recognition of national and provincial organizations representing municipalities, and determine procedures by which local government may consult the national and provincial government, designate representatives to participate in the National Council of Provinces (NCOP) and nominate persons to the Financial and Fiscal Commission (FFC).

Hence the organisations’ existence is as a result of the Organised Local Government Act, 1997 (OLGA) that was enacted by Parliament. SALGA is recognised as the sole voice of organised local government in the Republic of South Africa.

There is no indication in the foreseeable future that the recognition granted by the Minister per the Government Gazette, regulation gazette no. 6087, volume 391 dated 30 January 1998, no. 18645 may be revoked, thus the NEC came to the conclusion that SALGA will be in existence for the next 12 months.

SALGA is constituted by its member municipalities that cover the entire land surface area of the Republic. In terms of the governance model of the Republic which creates the three spheres of government namely Local; Provincial and National there is no indication in the near future of a change in the governance model. Although the KwaZulu-Natal province has instructed the member municipalities from that province to no longer remit membership levies to SALGA, despite these developments the NEC is of the opinion that SALGA shall continue. Furthermore, there is agreement that Kwanaloga shall come back into the SALGA fold post the 18 May 2011 local government elections.



Lastly, the organisation has submitted the outcome of its revenue enhancement model to the Executive Authority (Department of Co-operative Governance and Traditional Affairs) as part of the MTEF submission for the 2011/12 to 2013/14 planning cycle, and made necessary representations relating to the adequacy of the SALGA funding from the national fi scas. The submission was followed by a formal engagement between the SALGA Chairperson and the Minister of Finance on 30 September 2010; and a further engagement between the CEO of SALGA and the Deputy Minister of Finance on 25 January 2011. However, the Funding model is not fully implemented in the MTEF cycle as the Executive Authority and National Treasury are interrogating the model. The NEC is convinced that once the interrogation process has been fi nalised, the funding model shall be implemented, hence the view that SALGA shall continue.

3.4.8 Fruitless and wasteful expenditure and Irregular expenditure

3.4.8.1 Fruitless and wasteful expenditure

No fruitless and wasteful expenditure is disclosed in the current year, as the organisation had over provided for interest and penalties in the prior year resulting in a credit balance of R287 782; also refer to note 35 to the fi nancial statements.

3.4.8.2 Irregular expenditure

The organisation incurred expenditure deemed irregular amounting to R37.0 million, due to the organisation not disclosing the adjudication criteria i.e. the 80/20 evaluation criteria in its “Requests for Quotations” (RFQ) sent to potential bidders; and the failure to notify the National Treasury within 10 days of an instant where PFMA Treasury regulation 16.A6.4 was used to procure goods or services in excess of R1 million. Disciplinary action has been taken against the affected personnel as well as implemented improvements to the control environment. (also see note 36 to the fi nancial statements).

The irregular expenditure register has an opening balance of expenditure incurred in periods prior to 2007 of R 16.8 million. Pursuant to the appearance of the organisation before SCOPA on 13 April 2010, where it was, inter alia, reported that the affected employees were placed on suspension and disciplinary hearings instituted. The expenditure was recorded in the register as a result of the affected employees not adhering to SALGA’s internal policies as well as a result of a forensic investigation instituted by the organisation, focusing on the supply chain processes. Following the legal advice obtained by the organisation this amount has been condoned.

3.4.9 Losses. Irregularities and other matters

Losses or irregularities are referred to in Section 55(2)(b) of the PFMA. The organisations Materiality and Signifi cance Framework was developed and agreed to in terms of PFMA Treasury Regulation 28.3.1.

In terms of Section 55, the following are specifi ed as matters that must be reported on in the annual report and fi nancial statements:

(i) any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful

(i) expenditure that occurred during the fi nancial year;

(ii) any criminal or disciplinary steps taken as a consequence of such losses or irregular expenditure or fruitless

(iii) and wasteful expenditure;



(iv) any losses recovered or written off;

(v) any fi nancial assistance received from the State and commitments made by the State on its behalf; and

(vi) any other matters that may be prescribed.

3.4.10 Materiality and signifi cance framework

The organisation has developed and the NEC approved the materiality and signifi cance framework; developed in terms of the PFMA Treasury Regulation 28.3.1. The framework defi nes aspects of signifi cance and materiality in terms of sections 54(2) and 55(2(b)(i) of the PFMA.

The framework, has been agreed to with the Executive Authority as required by the PFMA Treasury Regulation 28.3.1.

3.4.11 Legal proceedings

The organisation is involved in a number of litigation matters disclosed in note 30 to the fi nancial statements. These matters relate to civil matters.


3.5 Financial statements

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATIONAnnual Financial Statements for the 12 months ended March 31, 2012

STATEMENT OF FINANCIAL POSITION

Figures in Rand Note(s) 2012 2011

Assets

Current Assets

Trade and other receivables - exchange transactions 9 29 748 587 24 930 136

Cash and cash equivalents 10 18 921 901 4 496 275

48 670 488 29 426 411

Non-current Assets

Investment property 2 4 400 000 3 100 000

Property, plant and equipment 3 18 985 713 19 923 348

Intangible assets 4 23 002 99 196

Other fi nancial assets 5 536 178 328 154

23 944 893 23 450 698

Total Assets 72 615 381 52 877 109

Liabilities

Current Liabilities

Finance lease liability - exchange transactions 12 757 036 744 572

Operating lease liability - exchange transactions 7 4 994 063 2 560 408

Trade and other payables - exchange transactions 15 35 670 511 37 131 525

Unspent conditional grants and receipts 13 11 445 562 3 223 298

Deferred income - exchange transactions 14 7 852 185 10 450 229

60 719 357 54 110 032

Non-Current Liabilities

Finance lease liability - exchange transactions 12 1 055 062 274 830

Retirement benefi t obligation 8 619 604 572 832

1 674 666 847 662

Total Liabilities 62 394 023 54 957 694

Net Assets 10 221 358 (2 080 585)

Net Assets

Reserves

Revaluation reserves 11 2 259 566 2 259 566

Accumulated surplus 7 961 792 (4 340 151)

Total Net Assets 10 221 358 (2 080 585)




STATEMENT OF FINANCIAL PERFORMANCE

Figures in Rand Note(s)

for the 12 months ended 31 March

2012

for the 12 months ended 31 March

2011

Revenue from exchange transactions 17 246 752 771 199 712 050

Other operating revenue 19 46 525 260 31 278 148

Operating expenses (284 712 398) (238 234 924)

Operating (defi cit) / surplus 20 8 565 633 (7 244 726)

Investment income 22 2 888 249 1 792 085

Fair value adjustments 23 1 300 000 100 000

Finance costs 25 (451 939) (2 927 435)

Surplus / (defi cit) for the year 12 301 943 (8 280 076)




STATEMENT OF CHANGES IN NET ASSETS

Figures in Rand Revaluation reserve

Accumulated surplus Total net assets

Opening balance as previously reported 2 259 566 3 761 244 6 020 810

Adjustments

Prior year adjustments - 178 681 178 681

Balance at 1 April 2010 as restated 2 259 566 3 939 925 6 199 491

Changes in net assets

Defi cit for the year - (8 280 076) (8 280 076)

Total changes - (8 280 076) (8 280 076)

Balance at 1 April 2011 2 259 566 (4 340 151) (2 080 585)

Changes in net assets

Surplus for the year - 12 301 943 12 301 943

Total changes - 12 301 943 12 301 943

Balance at 31 March 2012 2 259 566 7 961 792 10 221 358

Note(s) 11




CASH FLOW STATEMENT

Figures in Rand Note(s) 2012 2011

Cash fl ows from operating activities

Receipts

Cash receipts from customers 288 459 580 244 372 454

Interest income 2 888 249 1 792 085

291 347 829 246 164 539

Payments

Cash paid to suppliers and employees (275 051 979) (231 397 337)

Finance costs (451 939) (2 927 435)

(275 503 918) (234 324 772)

Net cash fl ows from operating activities 28 15 843 911 11 839 767

Cash fl ows from investing activities

Purchase of property, plant and equipment 3 (2 134 495) (7 067 815)

Proceeds from sale of property, plant and equipment 3 131 535 199 133

Net movement in fi nancial assets 3 (208 024) -

Net cash fl ows from investing activities (2 210 984) (6 868 682)

Cash fl ows from fi nancing activities

Finance lease payments 792 699 (1 084 710)

Net increase / (decrease) in cash and cash equivalents 14 425 626 3 886 375

Cash and cash equivalents at the beginning of the year 4 496 275 609 900

Cash and cash equivalents at the end of the year 10 18 921 901 4 496 275





ACCOUNTING POLICIES

1. Presentation of Annual Financial Statements

The annual fi nancial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

These annual fi nancial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless specifi ed otherwise. They are presented in South African Rand.

A summary of the signifi cant accounting policies, which have been consistently applied, are disclosed below.

These accounting policies are consistent with the previous period.

1.1 Signifi cant judgements and sources of estimation uncertainty

In preparing the annual fi nancial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual fi nancial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual fi nancial statements. Signifi cant judgements include:

Trade receivables and other receivables

SALGA assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or defi cit, the surplus makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash fl ows from a fi nancial asset.

The impairment for trade receivables and loans and receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-specifi c economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled to the estimated loss emergence period.

Fair value estimation

The fair value of fi nancial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined by using valuation techniques. SALGA uses a variety of methods and makes assumptions that are based on market conditions existing at the end of each reporting period. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. Other techniques, such as estimated discounted cash fl ows, are used to determine fair value for the remaining fi nancial instruments.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.

The fair value of fi nancial liabilities for disclosure purposes is estimated by discounting the future contractual cash fl ows at the current market interest rate that is available to the entity for similar fi nancial instruments.

Impairment testing





ACCOUNTING POLICIESThe recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value-in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the impairment assumption may change which may then impact our estimations and may then require a material adjustment to the carrying value of goodwill and tangible assets.

SALGA reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable.

Provisions

Provisions for impairment of trade receivables were raised and management determined an estimate based on the information available.

Additional disclosures of these estimates of provisions are included in note 9 - Trade and other receivables.

Post retirement medical benefi ts

The present value of the post retirement medical obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement medical obligations.

The entity determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outfl ows expected to be required to settle the medical obligations. In determining the appropriate discount rate, SALGA considers the medical infl ation and that have terms to maturity approximating the terms of the related medical liability.

Other key assumptions for medical obligations are based on current market conditions. Additional information is disclosed in Note 8.

Effective interest rate

The entity used the prime interest rate to discount future cash fl ows for creditors and/or expenditure and the R157 government bond rate to discount the future cash fl ows in debtors and/or revenue.

Allowance for doubtful debts

On debtors an impairment loss is recognised in surplus and defi cit when there is objective evidence that it is impaired. The impairment is measured as the difference between the debtors carrying amount and the present value of estimated future cash fl ows discounted at the effective interest rate, computed at initial recognition.

1.2 Investment property

Investment property is property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciation or both, rather than for:





ACCOUNTING POLICIES• use in the production or supply of goods or services or for

• administrative purposes, or

• sale in the ordinary course of operations.

Owner-occupied property is property held for use in the production or supply of goods or services or for administrative purposes.

Investment property is recognised as an asset when, it is probable that the future economic benefi ts or service potential that are associated with the investment property will fl ow to the entity, and the cost or fair value of the investment property can be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired at no cost or for a nominal cost, its cost is its fair value as at the date of acquisition.

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a property. If a replacement part is recognised in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised.

Re-measurements to fair value are made annually such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

Fair value

Subsequent to initial measurement investment property is measured at fair value.

The fair value of investment property refl ects market conditions at the reporting date.

A gain or loss arising from a change in fair value is included in net surplus or defi cit for the period in which it arises.

1.3 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

Initial recognition

The cost of an item of property, plant and equipment is recognised as an asset when:

• it is probable that future economic benefi ts or service potential associated with the item will fl ow to the entity; and

• the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.





ACCOUNTING POLICIESThe cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired at no cost, or for a nominal cost, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up.

When signifi cant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

The cost of an item of property, plant and equipment is recognised as an asset if, and only if:

a. it is probable that future economic benefi ts or service potential associated with the item will fl ow to the entity, and the cost or fair value of the item can be measured reliably.

b. Where an asset is acquired at a cost that is less than one thousand Rand it’s cost is fully depreciated in the period in which it is acquired.

Subsequent expenditure

Subsequent expenditure of an item of property, plant and equipment is recognised as an asset if, and only if:

(a) it is probable that future economic benefi ts or service potential associated with the item will fl ow to the entity, and

(b) the cost or fair value of the item can be measured reliably.

Costs of the day-to-day servicing are recognised in surplus and defi cit as incurred.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

The useful lives of items of property, plant and equipment have been assessed as follows:





ACCOUNTING POLICIES

Item Average useful life

Land Indefi nite

Buildings 20 to 75 years

Furniture and fi xtures 3 to 20 years

Motor vehicles 15 years

Offi ce equipment 3 to 20 years

IT equipment 9 to 12 years

Leased assets Lease term

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

The depreciation charge for each period is recognised in surplus or defi cit unless it is included in the carrying amount of another asset.

Impairment losses (reversals) are recognised when internal sources of information are evident such as physical damage to the asset / deterioration (improvement) of asset condition.

An impairment loss is recognised when signifi cant long-term changes in the manner the asset is used, or expected to be used during the period or in the near future, that will have an adverse effect on the entity. These changes may include the asset becoming idle, plans to discontinue the asset or plans to dispose of an asset before the previously expected date. A signifi cant increase in the cost of maintaining or operating the asset or signifi cantly lower service or output levels than those originally expected.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefi ts or service potential expected from the use of the asset.

The gain or loss arising from the de-recognition of an item of property, plant and equipment is included in surplus or defi cit when the item is derecognised. The gain or loss arising from the de-recognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.4 Intangible assets

An asset is identifi ed as an intangible asset when it:

• is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, assets or liability; or

• arises from contractual rights or other legal rights, regardless whether those rights are transferable or separate from the entity or from other rights and obligations.

An intangible asset is recognised when:





ACCOUNTING POLICIES• it is probable that the expected future economic benefi ts or service potential that are attributable to the asset will fl ow to

the entity; and

• the cost or fair value of the asset can be measured reliably.

Intangible assets are initially recognised at cost.

An intangible asset acquired at no or nominal cost, the cost shall be its fair value as at the date of acquisition.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

An intangible asset arising from development (or from the development phase of an internal project) is recognised when:

• it is technically feasible to complete the asset so that it will be available for use or sale.

• there is an intention to complete and use or sell it.

• there is an ability to use or sell it.

• it will generate probable future economic benefi ts or service potential.

• there are available technical, fi nancial and other resources to complete the development and to use or sell the asset.

• the expenditure attributable to the asset during its development can be measured reliably.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefi nite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash infl ows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a fi nite useful life after it was classifi ed as indefi nite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful life

Computer software, internally generated 2 to 5 years





ACCOUNTING POLICIESIntangible assets are derecognised:

• on disposal; or

• when no future economic benefi ts or service potential are expected from its use or disposal.

The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount. It is recognised in surplus or defi cit when the asset is derecognised.

1.5 Financial instruments

Initial recognition and measurement

Financial instruments are recognised initially when the entity becomes a party to the contractual provisions of the instruments.

The entity classifi es fi nancial instruments, or their component parts, on initial recognition as a fi nancial asset, a fi nancial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial instruments are measured initially at fair value, except for equity investments for which a fair value is not determinable, which are measured at cost and are classifi ed as available-for-sale fi nancial assets.

For fi nancial instruments which are not at fair value through surplus or defi cit, transaction costs are included in the initial measurement of the instrument.

Regular way purchases of fi nancial assets are accounted for at trade date.

Impairment of fi nancial assets

At each end of the reporting period the entity assesses all fi nancial assets, other than those at fair value through surplus or defi cit, to determine whether there is objective evidence that a fi nancial asset or group of fi nancial assets has been impaired.

For amounts due to the entity, signifi cant fi nancial diffi culties of the debtor, probability that the debtor will enter bankruptcy and default of payments are all considered indicators of impairment.

Impairment losses are recognised in surplus or defi cit.

Impairment losses are reversed when an increase in the fi nancial asset’s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the fi nancial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised.

Reversals of impairment losses are recognised in surplus or defi cit except for equity investments classifi ed as available-for-sale.

Where fi nancial assets are impaired through use of an allowance account, the amount of the loss is recognised in surplus or defi cit within operating expenses. When such assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses.





ACCOUNTING POLICIESTrade and other receivables

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in surplus or defi cit when there is objective evidence that the asset is impaired. Signifi cant fi nancial diffi culties of the debtor, probability that the debtor will enter bankruptcy or fi nancial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash fl ows discounted at the effective interest rate computed at initial recognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the defi cit is recognised in surplus or defi cit within operating expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in surplus or defi cit.

Trade and other receivables are classifi ed as loans and receivables.

Trade and other payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Trade and other payables are classifi ed as fi nancial liabilities at amortised cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignifi cant risk of changes in value. These are initially and subsequently recorded at fair value.

Bank overdraft and borrowings

Bank overdrafts and borrowings are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the entity’s accounting policy for borrowing costs.

1.6 Leases

A lease is classifi ed as a fi nance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classifi ed as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of fi nancial position at amounts equal to the fair value





ACCOUNTING POLICIESof the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of fi nancial position as a fi nance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the entity’s incremental borrowing rate.

Minimum lease payments are apportioned between the fi nance charge and reduction of the outstanding liability. The fi nance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1.7 Impairment of non-cash-generating assets

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefi ts or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefi ts or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of fi nancial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding fi nance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use.

Useful life is either:

• (a) the period of time over which an asset is expected to be used by the entity; or

• (b) the number of production or similar units expected to be obtained from the asset by the entity.

Criteria developed by SALGA to distinguish non-cash-generating assets from cash-generating assets are as follows: SALGA’s mandate or intention is not in pursuit of commercial return but service delivery to its members, therefore assets acquired by SALGA are solely for service delivery or facilitate service delivery to its members (i.e. administrative in nature).





ACCOUNTING POLICIESThere is no uncertainty as to whether SALGA assets are non-cash generating assets.

SALGA does not have an asset or class of assets that operate or generate cash fl ows independently from other assets, nor does its assets form part a group of assets that generate cash fl ows independently from other assets.

Identifi cation

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also test a non-cash-generating intangible asset with an indefi nite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

Value in use of an asset is the present value of the asset’s remaining service potential.

The present value of the remaining service potential of an asset is determined using the following approach:

Service units approach

The present value of the remaining service potential of the asset is determined by reducing the current cost of the remaining service potential of the asset before impairment, to conform to the reduced number of service units expected from the asset in its impaired state. The current cost of replacing the remaining service potential of the asset before impairment is determined as the depreciated reproduction or replacement cost of the asset before impairment, whichever is lower.

1.8 Employee benefi ts

Short-term employee benefi ts

The cost of short-term employee benefi ts, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefi ts such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The organisation remunerates its employees on a total cost to company basis, this package includes the organisation’s portion of contribution in respect of retirement benefi ts and encourages the staff to invest in the retirement funds and annuities.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.





ACCOUNTING POLICIESThe expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

Defi ned benefi t plans

For defi ned benefi t plans the cost of providing the benefi ts is determined using the projected credit method.

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan.

Gains or losses on the curtailment or settlement of a defi ned benefi t plan is recognised when the entity is demonstrably committed to curtailment or settlement.

The amount recognised in the statement of fi nancial position represents the present value of the defi ned benefi t obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service costs, and reduces by the fair value of plan assets.

Other post retirement obligations

The entity provides post-retirement health care benefi ts upon retirement to some retirees.

The entitlement to post-retirement health care benefi ts is based on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefi ts are accrued over the period of employment. Independent qualifi ed actuaries carry out valuations of these obligations. The entity also provides a gratuity and housing subsidy on retirement to certain employees. An annual charge to income is made to cover both these liabilities.

1.9 Provisions and contingencies

Provisions are recognised when:

• the entity has a present obligation as a result of a past event;

• it is probable that an outfl ow of resources embodying economic benefi ts or service potential will be required to settle the obligation; and

• a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that refl ects current market assessments of the time value of money and the risks specifi c to the liability.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the





ACCOUNTING POLICIESreimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to refl ect the current best estimate. Provisions are reversed if it is no longer probable that an outfl ow of resources embodying economic benefi ts or service potential will be required, to settle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to refl ect the passage of time. This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating defi cits.

If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.

A constructive obligation to restructure arises only when an entity:

• has a detailed formal plan for the restructuring, identifying at least:

the activity/operating unit or part of a activity/operating unit concerned;

the principal locations affected;

the location, function, and approximate number of employees who will be compensated for services being terminated;

the expenditures that will be undertaken; and

when the plan will be implemented; and

• has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.

A restructuring provision includes only the direct expenditures arising from the restructuring, which are those that are both:

• necessarily entailed by the restructuring; and

• not associated with the ongoing activities of the entity

No obligation arises as a consequence of the sale or transfer of an operation until the entity is committed to the sale or transfer, that is, there is a binding agreement.

After their initial recognition contingent liabilities recognised in business combinations that are recognised separately are subsequently measured at the higher of:





ACCOUNTING POLICIES• the amount that would be recognised as a provision; and

• the amount initially recognised less cumulative amortisation.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 30.

1.10 Revenue from exchange transactions

Revenue is the gross infl ow of economic benefi ts or service potential during the reporting period when those infl ows result in an increase in net assets.

An exchange transaction is one in which the municipality receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfi ed:

• the amount of revenue can be measured reliably;

• it is probable that the economic benefi ts or service potential associated with the transaction will fl ow to the entity;

• the stage of completion of the transaction at the reporting date can be measured reliably; and

• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specifi ed time frame, revenue is recognised on a straight line basis over the specifi ed time frame unless there is evidence that some other method better represents the stage of completion. When a specifi c act is much more signifi cant than any other acts, the recognition of revenue is postponed until the signifi cant act is executed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised as revenue over the period during which the service is performed





ACCOUNTING POLICIES1.11 Revenue from non-exchange transactions

Revenue comprises gross infl ows of economic benefi ts or service potential received and receivable by an entity, which represents an increase in net assets.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Transfers are infl ows of future economic benefi ts or service potential from non-exchange transactions, other than taxes.

Recognition

An infl ow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same infl ow.

As the entity satisfi es a present obligation recognised as a liability in respect of an infl ow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability.

Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the taxable event occurs or a condition is satisfi ed, the amount of the reduction in the liability is recognised as revenue.

Transfers

Apart from Services in kind, which are not recognised, the entity recognises an asset in respect of transfers when the transferred resources meet the defi nition of an asset and satisfy the criteria for recognition as an asset.

The entity recognises an asset in respect of transfers when the transferred resources meet the defi nition of an asset and satisfy the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.





ACCOUNTING POLICIESGifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefi ts or service potential will fl ow to the entity and the fair value of the assets can be measured reliably.

1.12 Turnover

Turnover comprises of service rendered to customers. Turnover is stated at the invoice amount and is exclusive of value added taxation.

1.13 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.

1.14 Translation of foreign currencies

Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At each reporting date:

• foreign currency monetary items are translated using the closing rate;

• non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and

• non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous annual fi nancial statements are recognised in surplus or defi cit in the period in which they arise.

When a gain or loss on a non-monetary item is recognised directly in net assets, any exchange component of that gain or loss is recognised directly in net assets. When a gain or loss on a non-monetary item is recognised in surplus or defi cit, any exchange component of that gain or loss is recognised in surplus or defi cit.

Cash fl ows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash fl ow.

1.15 Comparative fi gures

Where necessary, comparative fi gures have been reclassifi ed to conform to changes in presentation in the current year.





ACCOUNTING POLICIES1.16 Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of fi nancial performance in the year that the expenditure was incurred. The expenditure is classifi ed in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of fi nancial performance.

1.17 Irregular expenditure

Irregular expenditure as defi ned in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including -

• (a) this Act; or

• (b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or

• (c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA requires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identifi ed during the current fi nancial and which was condoned before year end and/or before fi nalisation of the fi nancial statements must also be recorded appropriately in the irregular expenditure register. In such an instance, no further action is also required with the exception of updating the note to the fi nancial statements.

Irregular expenditure that was incurred and identifi ed during the current fi nancial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the fi nancial statements.

Where irregular expenditure was incurred in the previous fi nancial year and is only condoned in the following fi nancial year, the register and the disclosure note to the fi nancial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identifi ed during the current fi nancial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting offi cer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the fi nancial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the fi nancial statements and updated accordingly in the irregular expenditure register.





ACCOUNTING POLICIES1.18 Conditional grants and receipts

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the entity has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met a liability is recognised.

1.19 Budget information

General purpose fi nancial reporting by SALGA shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.

The annual fi nancial statements and the budget are on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the annual fi nancial statements.

1.20 Related party

A related party is considered to be related if one party has the ability to control the other party or exercise signifi cant infl uence over the other party in making fi nancial and operating decisions or if the related party and another entity are subject to common control.

Transactions - specifi c information with regards to related party transactions is included in the disclosure notes.

Key management personnel - compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.





NOTES TO THE ANNUAL FINANCIAL STATEMENTS


2. Investment property

2012 2011

Cost / Valuation

Accumulated depreciation

and accumulated impairment

Carrying value

Cost / Valuation



Carrying value

Investment property 4 400 000 - 4 400 000 3 100 000 - 3 100 000

Reconciliation of investment property - 2012

Opening balance

Fair value adjustments

Total

Investment property 3 100 000 1 300 000 4 400 000

Reconciliation of investment property – 2011

Opening balance

Fair value adjustments

Total

Investment property 3 000 000 100 000 3 100 000

Details of property

1. Stand 3278, Johannesburg, Gauteng

2. Stand 750, Kimberley, Northern Cape

Details of valuation

The effective date of the revaluations was 31 March 2012. Revaluations were performed by an independent valuer, Mr. William John Hewitt, NDPV, C.I.E.A., F.I.V. (SA), Appraiser of Mills Fitchet (TVL) CC. Mills Fitchet (TVL) CC are not connected to SALGA and have recent experience in location and category of the investment property being valued.

For the purpose of determining the market value of the investment properties the capitalisation of the “Nett Annual Income” method generally considered to determine the market value of an income producing property such as shopping centres, offi ces and industrial or commercial properties where the building has an earning potential.

These assumptions are based on open market value for existing use.





NOTES TO THE ANNUAL FINANCIAL STATEMENTSAmounts recognised in surplus and defi cit for the year.

Rental revenue from investment property - 36,000

Direct operating expenses from non-rental generating property (security costs) 570 262 378,191

Direct operating expenses from non-rental generating property (repairs and maintenance)

32 690 -







3. Property, plant and equipment

2012 2011

Cost / Valuation



Carrying value Cost /

Valuation



Carrying value

Furniture & fi xtures 8 372 558 (2 468 677) 5 903 881 9 379 382 (2 383 740) 6 995 642

Motor vehicles 940 919 (383 624) 557 295 940 919 (324 013) 616 906

Offi ce equipment 3 296 614 (1 114 671) 2 181 943 3 147 820 (1 189 839) 1 957 981

IT equipment 7 533 863 (1 733 586) 5 800 277 8 277 129 (1 846 422) 6 430 707

Leased assets 6 361 035 (1 818 718) 4 542 317 7 454 038 (3 531 926) 3 922 112

Total 26 504 989 (7 519 276) 18 985 713 29 199 288 (9 275 940) 19 923 348

Reconciliation of property, plant and equipment – 2012

Opening balance

Additions Disposals Depreciation Impairment

loss Total

Furniture & fi xtures 6 995 642 241 638 (267 054) (577 168) (489 177) 5 903 881

Motor vehicles 616 906 - - (59 611) - 557 295

Offi ce equipment 1 957 981 620 550 (16 056) (280 590) (99 942) 2 181 943

IT equipment 6 430 707 1 272 307 (697 374) (733 640) (471 723) 5 800 277

Leased assets 3 922 112 2 240 705 - (1 620 500) - 4 542 317

19 923 348 4 375 200 (980 484) (3 271 509) (1 060 842) 18 985 713






Reconciliation of property, plant and equipment – 2011

Opening balance Additions Disposals Depreciation Impairment

loss Total

Furniture & fi xtures 6 632 408 1 114 742 (129 649) (579 319) (42 540) 6 995 642

Motor vehicles 676 345 - - (59 439) - 616 906

Offi ce equipment 2 024 299 283 177 (36 054) (312 145) (1 296) 1 957 981

IT equipment 5 867 919 2 131 356 (364 595) (797 989) (405 984) 6 430 707

Leased assets 1 553 832 4 037 550 - (1 669 270) - 3 922 112

16 754 803 7 566 825 (530 298) (3 418 162) (449 820) 19 923 348


Compensation received for losses on property, plant and equipment – included in operating surplus

IT equipment 131 534 250 857

Assets subject to fi nance lease (Net carrying amount)

Leased assets 1 731 695 838 877

Other information

Property, plant and equipment temporarily idle (Gross carrying amount)

Offi ce equipment 59 439 57 884

Property, plant and equipment fully depreciated and still in use (Gross carrying amount)

Furniture and fi xtures 201 076 134 300

Offi ce equipment 91 760 41 198

IT equipment 56 030 48 975

348 866 224 473







4. Intangible assets

2012 2011

Cost / Valuation

Accumulated amortisation


Carrying value Cost / Valuation

Accumulated amortisation


Carrying value

Computer software 675 576 (652 574) 23 002 675 576 (576 380) 99 196

Reconciliation of intangible assets - 2012

Opening balance Amortisation Total

Computer software. Internally generated 99 196 (76 194) 23 002

Reconciliation of intangible assets - 2011

Opening balance Amortisation Total

Computer software, internally generated 120 897 (21 701) 99 196

Other information

Fully amortised intangible assets still in use 494 902 191 406

The intangible assets consist of application software and intranet software.







5. Other fi nancial assets

Deposits

Rental deposits paid to lessors 536 178 328 154

Terms and conditions

These deposits will be refunded by the lessors only on termination of the lease agreement

Non-current assets

Rental deposits paid to lessors 536 178 328 154

The organisation has paid deposits to lessor’s for rental of offi ce accommodation. The remaining lease period exceeds 12 months.

For debt securities classifi ed as at fair value through surplus or defi cit, the maximum exposure to credit risk at the reporting date is the carrying amount.







6. Financial assets by category

The accounting policies for the fi nancial instruments have been applied to the line items below:

2012

Loans and receivables Total

Trade and other receivables 29 028 506 29 028 506

Cash and cash equivalents 18 921 901 18 921 901

47 950 407 47 950 407

2011

Loans and receivables Total

Trade and other receivables 24 265 910 24 265 910

Cash and cash equivalents 4 496 275 4 496 275

28 762 185 28 762 185

7. Operating lease assets

Current liabilities (4 994 063) (2 560 408)

Operating lease liability arose due to the straight-lining of operating lease payments in accordance with GRAP 13. Refer to note 29 for detail on the non-cancellable operating lease rentals payable in future.

SALGA also leases premises which have an average lease period of 60 months. The average yearly escalation is 10% and the average remaining lease terms is 29 months.







8. Employee benefi t obligations

Defi ned benefi t plan

The plan is a post employment medical benefi t plan.

Post retirement medical aid plan

When the then Western Cape Local Government Organisation (WECLOGO) was incorporated into SALGA, forming a unitary organisation, WECLOGO had three employees for which it contributed towards a medical aid post retirement benefi t. One of the conditions of the unitary structure was that the conditions of service of any employee, in the employ of the provincial association at that date would not be affected in line with section 197 of the Labour Relations Act. The WEKPRO members were incorporated into SALGA as of 1 February 2005 and since then SALGA has inherited the post retirement medical benefi t of the two remaining pensioners.

SALGA requested Jacques Malan Consultants and Actuaries, an independent fi rm of actuaries not connected to SALGA to determine the value of the post retirement fund obligation as at 31 March 2012. The report provided by the actuaries valued the obligation at R619 604 (2011: R572,832). The increase in the medical obligation is due to a higher medical infl ation.

The amounts recognised in the statement of fi nancial position are as follows:

Carrying value

Present value of the defi ned benefi t obligation-wholly unfunded (619 604) (572 832)

Changes in the present value of the defi ned benefi t obligation are as follows:

Opening balance 572 832 356 693

Benefi ts paid (48 422) (55 310)

Net expense recognised in the statement of fi nancial performance 95 194 271 449

Closing balance 619 604 572 832

Net expense recognised in the statement of fi nancial performance

Interest cost 51 555 35 669

Actuarial (gains) losses 43 639 235 780

Total included in employee related costs 95 194 271 449







Calculation of actuarial gains and losses

Key assumptions used

Assumptions used at the reporting date.

Contributions are discounted at an interest rate 8.00 % 9.00 %

Medical infl ation per annum 7.90 % 8.00 %

Mortality is determined by the PA (90) ultimate tables

Marital status and children dependants

Medical aid options remains unchanged for the future

The pensioners medical aid contributions remains at 40% of the total contribution

Other assumptions

Assumed healthcare cost trends rates have a signifi cant effect on the amounts recognised in surplus or defi cit. A one percentage change in assumed healthcare cost trends would have the following effects:

One percentage point increase

One percentage point decrease

Effect on the aggregate of the service cost and interest cost 56 312 47 906

Effect on defi ned benefi t obligation 673 191 572 691

9. Trade and other receivables – exchange transactions

Trade debtors 29 028 506 24 265 910

Prepayments 720 081 568 454

Sundry debtors - 95 772

29 748 587 24 930 136





NOTES TO THE ANNUAL FINANCIAL STATEMENTSCredit quality of trade and other receivables

The credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to historical information about counterparty default rates. The credit qualities rating of each of these fi nancial instruments are as follows:

Low credit grade - The counter party has evidenced high occurrences of defaults and / or re-negotiations of contractual terms in prior periods. Furthermore an assessment of the fi nancial position and liquidity position of the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. As such the counter parties included in the low credit grade category pose a high credit risk to the entity.

Medium credit grade - The counter party has evidences instances of defaults and / or re-negotiations of contractual terms in prior periods on the repayment of outstanding amounts (and / or). An assessment of the fi nancial position and liquidity positions of the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. (and / or) The counter parties included in this credit grade category are active in a industry that is highly sensitive to market fl uctuations and volatility in the international economies.

High credit grade - The counter party has evidenced no instances of defaults and / or re-negotiations of contractual terms in prior periods.


Trade receivables

Trade receivables schedule

Trade receivables 33 107 914 27 786 858

Less: Provision for impairment of trade receivables (4 079 408) (3 520 948)

29 028 506 24 265 910







Trade and other receivables past due but not impaired

The ageing ofamounts past due but not impaired is as follows:

Not more than 30 days - -

More the 30 days but not more than 60 days 4 765 364 -

More than 60 days but not more than 90 days - 1 377 358

More than 90 days but not more than 120 days - 106 239

More than 120 days 24 263 142 22 782 313

29 028 506 24 265 910

Trade and other receivables impaired

As of 31 March 2012, trade and other receivables of R4 079 409 (2011: R3 520 948) were impaired and provided for.

The ageing of these loans is as follows:

Not more than 30 days (Credit rating: High) - -

More than 30 days but not more than 60 days (Credit rating: Medium) 234 604 -

More than 60 days but not more than 90 days (Credit rating: Medium) - 36 860

More than 90 days but not more than 120 days (Credit rating: Medium) - 2 687

More than 120 days (Credit rating: Medium) 3 844 805 3 481 401

4 079 409 3 520 948







Reconciliation of provision for impairment of trade and other receivables

Opening balance 3 520 948 25 756 929

Provision for impairment 1 426 037 (1 913 223)

Amounts written off as uncollectible (867 576) (20 322 758)

4 079 409 3 520 948

The creation and release of provision for impaired receivables have been included in operating expenses in surplus or defi cit (note 20).

The maximum exposure to credit risk at the reporting date is the fair value of each class of loan mentioned above. The entity does not hold any collateral as security.

SALGA is exposed to credit risk as a result of the following: Transactions entered into with customer on extended payment terms of cash and cash equivalents held with commercial banks that may not be able to produce cash on demand. SALGA manages these risks by independent checks. No changes occurred in the management of these risks from the prior year.

10. Cash and cash equivalents

The carrying value of cash and cash equivalents approximates the fair value thereof. None of the instruments included in the cash and cash equivalents were pledged as security for any fi nancial obligations.

Cash and cash equivalents consists of:

Cash on hand (Credit rating: High) 7 935 8 034

Bank balances (credit rating: High) 18 913 966 4 488 241

18 921 901 4 496 275

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings or historical information about counterparty default rates:

Low credit grade - The counter party has evidenced high occurrences of defaults and / or re-negotiations of contractual terms in prior periods. Furthermore an assessment of the fi nancial position and liquidity position of the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. As such the counter parties included in the low credit grade category pose a high credit risk to the entity.

Medium credit grade - The counter party has evidenced instances of defaults and / or re-negotiations of contractual terms in prior periods on the repayment of outstanding amounts (and / or). An assessment of the fi nancial position and liquidity positions





NOTES TO THE ANNUAL FINANCIAL STATEMENTSof the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. The counter parties included in this credit grade category are active in an industry that is highly sensitive to market fl uctuations and volatility in the international economies. As such the counter parties included in the medium credit grade category pose a medium credit risk to the entity.

High credit grade - The counter party has evidenced no instances of defaults and / or re-negotiations of contractual terms in prior periods. Furthermore an assessment of the fi nancial position of the entity has not evidenced a weakening in either the fi nancial position or liquidity of the entity. As such the counter parties included in the high credit grade category pose a low risk to the entity with the reasonability of the outstanding amounts being almost certain.


11. Revaluation reserve

Opening balance 2 259 566 2 259 566

The revaluation reserve results from the revaluation of property, plant and equipment while still owner occupied. It remains after treating the same assets as investment property since they were vacated by the entity.

12. Finance lease obligation – exchange transactions

Minimum lease payments due

• Within one year 885 528 814 679

• In second to fi fth year inclusive 1 133 362 294 453

2 018 890 1 109 132

Less: future fi nance charges (206 792) (89 730)

Present value of minimum lease payments 1 812 098 1 019 402

Present value of minimum lease payments due

Within one year 757 036 744 572

In second to fi fth year inclusive 1 055 062 274 830

1 812 098 1 019 402

Non-current liabilities 1 055 062 274 830

Current liabilities 757 036 744 572

1 812 098 1 019 402





NOTES TO THE ANNUAL FINANCIAL STATEMENTSIt is SALGA’s policy to lease certain equipment under fi nance leases. Obligations under fi nance leases are secured by the lessor’s title to the leased assets.

The average lease term was 36 months and the average effective borrowing rate was 12% (2011: 12%).

Interest rates are fi xed at the contract date. All fi nances leases have fi xed repayments.

The entity’s obligations under fi nance leases are secured by the lessor’s charge over the leased assets. Refer note 3.

13. Unspent conditional grants and receipts

From time to time, SALGA engages Provincial and National Departments for assistance in terms of building capacity in the respective provinces and funding certain programmes.

The Free State funding is split between programme support (40%) and building internal capacity in the province (60%). The Gauteng funding is for internal capacity building for LED and Municipal Finance.

SALGA has also partnered with the Department of Environment Affairs on climate change and energy projects. The partnership also included the appointment of a Climate Change Specialist, for whom the salary was funded for the prior year by the Department.

A conditional sponsorship was obtained from LA Health to fund SALGA’s redesign and rejuvenating its website. The sponsorship has the condition: that SALGA’s Webpage must bear an LA Health presence (logo on each page thereof, in a format to be agreed upon by the parties for a period of fi ve (5) years). This amount will thus be amortised over this 5 year period.

A conditional grant was obtained from the LGSETA to assist in SALGA’s programme to induct the new Councillors after the 18 May 2011 local government elections into the local government sphere.

A conditional grant was obtained from National Treasury to assist with SALGA’s programme to train new entrants to the local government sphere after the 18 May 2011 local government elections, heading up the fi nancial management portfolio in their respective municipalities.

The grant from the Eastern Cape department of local government and traditional affairs is to fund SALGA’s Councillor Induction programme; Ward committees training; and the training of Traditional leaders. A portion of the grant is for targeted support to 5 municipalities within the Eastern Cape Province.

The grant from the Gauteng department of local government and housing is assisting SALGA to build and maintain capacity in the fi eld of municipal fi nance for the province. The value of the grant subsidises the cost of maintaining the capacity to support and advise members within the province.





NOTES TO THE ANNUAL FINANCIAL STATEMENTSUnspent conditional grants and receipts comprises of:


Unspent conditional grants and receipts

Government grant – Gauteng Dept of Local Government and Housing 55 556 388 889

Government grant – Free State Dept of Co-operative Governance 1 120 323 1 334 409

Government grant – Department of Environmental Affairs - 1 300 000

Conditional sponsorship: LA Health 160 000 200 000

Government grant – Eastern Cape Dept of Local Government and Traditional Affairs 5 609 935 -

Learnership sponsor 21 600 -

Local Government SETA – Councillor Induction Programme 3 925 840 -

National Treasury – Councillor Induction Programme 498 308 -

LED Network 54 000 -

11 445 562 3 223 298

Movement during the year

Balance at the beginning of the year 3 223 298 5 722 222



11 445 562 3 223 298

The nature and extent of government grants recognised in the annual fi nancial statements and an indication of other forms of government assistance from which the entity has directly benefi ted; and unfulfi lled conditions and other contingencies attaching to government assistance that has been recognised







14. Deferred income

The entity has three donor funded projects namely, Masibambane; P3; and SDC.

Summary of Deferred income

Masibambane 7 852 185 8 264 382

P3 - -

Swiss Agency for Development and Cooperation (SDC) - 2 185 847

7 852 185 10 450 229

Masibambane is an European Union donor funded programme (funds are channelled through the Department of Water Affairs (DWA)) aimed at capacity building, infrastructure development and ensuring viable and sustainable delivery of water and sanitation services.

Movement during the year - Masibambane




7 852 185 8 264 382

P3 is project funded by the Swedish International Development Agency. The objective of this project is to provide municipalities with an analytical framework and an organisational set up that will improve dialogue between the business community and the municipality and that will also be used to promote strategy development and business related projects during the year of implementation. This project has a 24 month duration.

Movement during the year – P3 project

Balance at the beginning of the year (165 016) 2 955 426



Amount included in Trade and other receivables (note 9) 1 189 249 165 016

- -







The Swiss Agency for Development and Corporation agreed to support SALGA to build capacity in the monitoring and implementation of energy effi ciency. The project has two components: Monitoring of energy effi ciency targets in the building sector to the Department of Energy and Cooperation support to SALGA for the implementation of the capacity building component.

Movement during the year – SDC project



Income recognition during the year (3 730 899) (215 843)

Amount included in Trade and other receivables (note 9) 1 538 901 -

- 2 185 847

15. Trade and other payables – exchange transactions

Trade payables 8 897 948 13 800 306

Payments received in advance 1 627 813 3 302 493

Sundry creditors 3 475 457 8 232 505

Accrued leave pay 7 456 246 5 908 116

Accrued bonus 744 940 709 599

Accrued expenses 10 694 800 4 629 879

Lodge card 2 773 307 548 627

35 670 511 37 131 525







16. Financial liabilities by category

The accounting policies for fi nancial instruments have been applied to the line items below:

2012

Financial liabilities at

amortised cost Total

Trade and other payables 8 897 948 8 897 948



14 001 218 14 001 218

2011

Financial liabilities at

amortised cost Total

Trade and other payables 13 800 306 13 800 306



25 335 304 25 335 304

17. Revenue

Membership fees 217 872 595 145 888 126

Free State Department of Cooperative Governance 214 086 3 665 591

Eastern Cape Department of Local Government & Traditional Affairs 1 190 065 -


Gauteng Department of Local Government & Housing 333 333 333 333

National Treasury 1 356 692 -

Transfers and subsidies received – Executive Authority 25 486 000 49 125 000

246 752 771 199 712 050







The amount included in revenue arising from exchange of goods or services is as follows:

Membership levies 217 872 595 145 888 126

The amount included in revenue arising from non-exchange transactions is as follows:

Free State Department of Cooperative Governance 214 086 3 665 591

Eastern Cape Department of Local Government & Traditional Affairs 1 190 065 -


Gauteng Department of Local Government & Housing 333 333 333 333

National Treasury 1 356 692 -

Transfers and subsidies

Transfers and subsidies received – Executive Authority 25 486 000 49 125 000

18. Government grants and subsidies

Government grant – Executive Authority 25 486 000 49 125 000

19. Other income

Income from capacity building programmes 1 417 396 2 098 204

Sundry income 3 311 908 2 532 973

Delegate fees – National and Provincial Members Assembly 8 565 100 5 285 250

Sponsorship received 12 786 123 6 003 160

Commission received 12 487 10 352

Rent received 12 000 42 000

Gains of foreign exchange transactions 27 418 127 054

Income from donors 20 392 828 15 179 155

46 525 260 31 278 148







20. Operating surplus / (defi cit)

Operating surplus (defi cit) for the year is stated after accounting for the following:

Operating lease charges

Premises

• Contractual amounts 26 201 144 20 867 049

• Contingent amounts 3 436 3 273

26 204 580 20 870 322

Loss on sale of property, plant and equipment 848 949 331 165

Legal fees 1 069 004 1 672 517

Impairment on property, plant and equipment 1 060 842 449 818

Fair value adjustment on investment property 1 300 000 100 000

Amortisation of intangible assets 76 194 21 701

Depreciation on property, plant and equipment 3 271 508 3 418 163

Employee costs 138 988 145 125 626 792

Amount expenses in respect of retirement benefi t plans: 95 194 216 139

Defi ned benefi t funds 95 194 216 139

21. Employee related costs

Basic 131 198 647 119 803 116

UIF 457 481 428 431

SDL 1 379 851 1 147 111

Other payroll levies 3 420 851 2 706 142

Leave pay provision charge 2 531 315 1 541 992

138 988 145 125 626 792







Remuneration of senior management

Annual remuneration 18 024 716 16 166 781

Contribution to UIF; Medical and Pension funds 201 269 261 081

Subsistence and travel allowance 133 953 455 379

Performance related awards 1 533 403 1 410 114

19 893 341 18 293 355

22. Investment revenue

Interest revenue

Bank 1 372 996 468 176

Interest charges on trade and other receivables 1 515 253 1 323 909

2 888 249 1 792 085

23. Fair value adjustments

Investment property (Fair value model) 1 300 000 100 000

24. Impairment of assets

Impairments

Property, plant and equipment 1 060 842 449 818

25. Finance costs

Trade and other payables (287 782) 2 127 415

Finance leases 157 471 195 044

Bank 34 67 874

Fair value adjustments on payables 582 216 537 102

451 939 2 927 435







26. Taxation

No provision has been made for the 2012 tax year as SALGA is exempt from Income Tax in terms of section 10(1) of the Income Tax Act.

No Value Added Tax was applicable to SALGA as it is exempt from complying with the Value Added Tax Act.

27. Auditors’ remuneration

Fees 3 474 037 4 665 144

28. Cash generated from operations

Surplus (defi cit) 12 301 943 (8 280 076)

Adjustments for:

Depreciation and amortisation 3 347 702 3 439 836

Loss on sale of assets and liabilities 848 949 331 165

Loss / (Gain) on foreign exchange (27 418) (127 054)

Fair value adjustment to investment property (1 300 000) (100 000)

Impairment defi cit 1 060 842 449 820

Movements in operating lease assets and accruals 2 433 655 961 913

Movements in retirement benefi t assets and liabilities 46 772 216 139

Leased assets additions (non-cash item) (2 240 705) (499 011)

Changes in working capital:

Trade and other receivables – exchange transactions (4 818 451) 13 382 285

Trade and other payables – exchange transactions (1 433 598) 7 901 562

Unspent conditional grants and receipts 8 222 264 (2 498 924)

Deferred income – exchange transactions (2 598 044) (3 337 888)

15 843 911 11 839 767







29. Commitments

Operating leases – as lessee (expense)

Minimum lease payments due

- within 1 year 22 585 727 20 571 621

- in second to fi fth year inclusive 56 288 339 62 304 996

Future payments 78 874 066 82 876 617

Non-cancellable operating lease rentals are payable per above.

Operating lease payments represent rentals payable by the entity for certain of its offi ce properties. Leases are negotiated for an average term of fi ve years. Contingent rent is payable based on CPI escalation rate above 5 percentage points. The CPI increase of 5% p.a. is fi xed and the actual escalation above the fi xed rate up to the maximum of 8% annually constitutes contingent rent.

30. Contingencies

1. SALGA is defending a claim for alleged defamation which has been instituted by Akani Retirement Fund Administration. The plaintiff claims payment of R500 000, interest at a rate of 15.5% and cost of suit. The expected outcome is unknown and the legal costs incurred thus far in defending the matter forms part of legal costs as disclosed in note 20.

2. SALGA is defending a matter against alleged breach of contract which was instituted by Millionsure Insurance Brokers (Pty) Limited. The plaintiff claims payment of R8 336 250, interest at a rate of 15.5% from July 2004. SALGA has lodged a counter-claim of R6 840 000. The expected outcome is unknown and the legal costs incurred thus far in defending the matter forms part of legal costs as disclosed in note 20.






31. Related parties

Relationships

Executive authority National Department of Co-operative Governance & Traditional Affairs

National Government Department (Cabinet ultimate control) National Treasury

Provincial Government Department (Cabinet ultimate control)

Western Cape Department of Local Government and Housing


Eastern Cape Department of Local Government and Traditional Affairs


KwaZulu-Natal Department of Local Government and Traditional Affairs


Northern Cape Department of Co-operative Governance; Human Settlements and Traditional Affairs


Free State Department of Co-operative Governance and Traditional Affairs


Mpumalanga Department of Local Government and Traditional Affairs

National Government Department (Cabinet ultimate control) Department of Arts and Culture

National Government Business Enterprise (Schedule B of PFMA)

Passenger Rail Agency of South Africa

SALGA CEO member of the board South African Cities Network (Pty) Limited

SALGA CEO member of the board EDI Holdings (Pty) Limited

National Government Department (Cabinet ultimate control) Auditor General South Africa


Western Cape Department of Provincial Treasury


Gauteng Department of Local Government and Housing

National Government Department (Cabinet ultimate control) National Department of Social Development

National Government Department (Cabinet ultimate control) Government Communication and Information Systems (GCIS)

National Government Department (Cabinet ultimate control) National Department of Sports, Arts and Culture

Major Public Entity (Schedule 2 of PFMA) ESKOM

Major Public Entity (Schedule 2 of PFMA) Development Bank of Southern Africa (DBSA)

National Government Department (Cabinet ultimate control) National Department of Water Affairs

National Government Department (Cabinet ultimate control) National Department of Public Works






Relationships

National Government Department (Cabinet ultimate control) National Department of Rural Development and Land Reform

National Government Department (Cabinet ultimate control) National Department of Environmental Affairs

National Public Entity (Schedule 3A of PFMA) South African Revenue Services (SARS)

Major Public Entity (Schedule 2 of PFMA) South African Broadcasting Corporation (SABC)

Major Public Entity (Schedule 2 of PFMA) Telkom SA Limited

Chairperson of SALGA Cllr T Manyoni - Executive Mayor: Mangaung Metropolitan Municipality

Deputy Chairperson of SALGA Cllr M Nawa - Executive Mayor: West Rand District Municipality

Deputy Chairperson of SALGA Cllr N Sihlwayi - Deputy Executive Mayor: Nelson Mandela Bay Metropolitan Municipality

Deputy Chairperson of SALGA Cllr N Hermans - Mayor: Umsobomvu Local Municipality

Member of the National Executive Committee of SALGA Cllr F Maboa-Boltman - Mayor: Gert Sibande District Municipality

Member of the National Executive Committee of SALGA Cllr. D Mazibuko - Executive Mayor - Uthukela District Municipality

Member of the National Executive Committee of SALGA Cllr. S Mashilo - Executive Mayor - Enkangala District Municipality

Member of the National Executive Committee of SALGA Cllr. C Neethling - Ward Councillor - George Local Municipality

Member of the National Executive Committee of SALGA Cllr. J Matlou - Executive Mayor - Mopani District Municipality

Member of the National Executive Committee of SALGA Cllr. BP Moloi - Executive Mayor - Dr Kenneth Kaunda District Municipality

Member of the National Executive Committee of SALGA Cllr. W Johnson - Chief Whip - Frances Baard District Municipality

Member of the National Executive Committee of SALGA Cllr. P Tau - Executive Mayor - City of Johannesburg Metropolitan Municipality

Member of the National Executive Committee of SALGA Cllr. B Mdzawngwa - Executive Mayor - Thabo Mafutsanyane District Municipality

Member of the National Executive Committee of SALGA Cllr. Demetri Qually - City of Cape Town

Member of the National Executive Committee of SALGA Cllr. GK Lobelo - Mayor - Greater Taung District Municipality

Member of the National Executive Committee of SALGA Cllr. D Magabe - Executive Mayor - Sekhukhune District Municipality

Member of the National Executive Committee of SALGA Cllr. SW Mdabe - Ilembe District Municipality






Relationships

Member of the National Executive Committee of SALGA Cllr. N Meth - Speaker - OR Tambo District Municipality

Member of the National Executive Committee of SALGA Cllr. S Pillay - MMC - City of Tshwane Metropolitan Municipality

Major Public Entity (Schedule 2 of PFMA) Independent Development Trust

National Public Entity (Schedule 3A of PFMA) Local Government Sector Education and Training Authority (SETA)

National Public Entity (Schedule 3A of PFMA) National Credit Regulator (NCR)

National Public Entity (Schedule 3A of PFMA) National Energy Regulator of South Africa (NERSA)

National Government Business Enterprise (Schedule 3B of PFMA)

South African Bureau of Standards (SABS)

SALGA is a member as employer for the sector South African Local Government Bargaining Council (SALGBC)

National Government Department (Cabinet ultimate control) Statistics South Africa

National Public Entity (Schedule 3A of PFMA) State Information Technology Agency (SITA)

National Public Entity (Schedule 3A of PFMA) Water Research Commission (WRC)

Member of SALGA Cacadu District Municipality

Member of SALGA Sol Plaatjie Local Municipality

Member of SALGA Ekurhuleni Metropolitan Municipality

National Government Department (Cabinet ultimate control) Government Printing Works

Same controlling body (Cabinet) part of SA Post Offi ce Speed Courier Services

Controlling body member of SALGA (eThekwini Metropolitan Municipality)

Municipal Institute of Learning (MILE)

National Public Entity (Schedule 3A of PFMA) Human Science Research Council (HSRC)

Municipal entity controlling body member of SALGA Braamfontein Improvement District

Major Public Entity (Schedule 2 of PFMA) Industrial Development Corporation of South Africa Limited

Major Public Entity (Schedule 2 of PFMA) South African Post Offi ce

National Government Business Enterprises (Schedule 3B of PFMA)

Sedibeng Water

National Government Department (Cabinet ultimate control) Public Administration Leadership and Management Academy (PALAMA)


Umgeni Water


SASRIA Limited






Relationships

Funder conditional grant Swedish Association of Local Authorities

Funder conditional grant Swiss Agency for Development and Corporation (SDC)

SALGA is a member Commonwealth Local Government Forum (CLGF)

Funder conditional grant Local Economic Development (LED) Network

Funder conditional grant LA Health

National Public Entity (Schedule 3A of PFMA) Small Enterprise Development Agency (SEDA)

National Public Entity (Schedule 3A of PFMA) Housing Development Agency

National Public Entity (Schedule 3A of PFMA) Rural Housing Loan Fund

National Public Entity (Schedule 3A of PFMA) Universal Service and Access Agency of South Africa

Please refer to annexure A for related party transactions and balances.


32. Comparative fi gures

Certain comparative fi gures have been reclassifi ed.

Statement of fi nancial position

Other fi nancial assets – exchange transactions - 328 154

Trade and other receivables – exchange transactions - (328 154)

33. Risk management

Financial risk management

SALGA’s activities expose it to a variety of fi nancial risks: market risk (including currency risk, fair value interest rate risk, cash fl ow interest rate risk and price risk), credit risk and liquidity risk.

Liquidity risk

Prudent liquidity risk management implies maintaining suffi cient cash. SALGA receives cash in the form of levies from customers and grants from government. The entity maintains liquidity by limiting capital and operational expenditure within the approved budget.

SALGA’s risk to liquidity is a result of the funds available to cover future commitments. SALGA manages liquidity risk through an ongoing review of future commitments and credit facilities.







Maturity analysis Trade payables Other payables

Not later than one month 26 605 972

Later than one month and not later than three months 5 000 000

Later than three months and not later than one year 744 940

Later than one year and not later than fi ve years 9 053 577 8 109 251

41 404 489 8 109 251

Values presented in the maturity analysis are undiscounted according to the terms of the instrument. These amounts will all be settled in cash. Trade payables are considered to mature in 30 days after year end as these suppliers require 30 days settlement terms. No changes between the current and prior year assumptions have been made.

Interest rate risk

SALGA’s interest rate risks arises from market and economic factors, loans and other payables, cash and cash equivalents and loans and other receivables. The entity’s exposure to interest rate risk is minimal due to the following factors:

• no interest is levied on overdue trade receivables;

• interest not paid on trade payables is limited as it is the policy of the entity to settle within the credit terms, cash fl ow allowing in order to comply with the Public Finance Management Act (PFMA) requirements; and

• the PFMA does not allow for the entity to utilise bank overdrafts.

Based on the activities of SALGA the only area affected by interest rate risk is fi nance leases and investment income earned on call deposits.

At 31 March 2012, if interest rates at that date had been 200 basis points lower with all other variables held constant, surplus for the year would have been R48 726 (2011: R22 707) lower arising mainly as a result of lower interest expense on variable payables and receivables.

If interest rates had been 200 basis points higher, with all other variables held constant, surplus would have been R48 726 (2011: R22 707) higher, arising mainly as a result of higher interest expense on variable payable and receivables. The sensitivity is higher 2012 than in 2011 because of an increase in receivables

Cash fl ow interest rate risk

SALGA’s exposure to this type of risk arises when the entity has a fi nancial instrument with a fl oating interest rate. The entity is seldom exposed to this type of risk. When the need arises management employs conservative approaches with a limited risk exposure such as Call Accounts or limit the risk completely by employing fi xed deposits. The following credit facilities are available, which is payable 30 days from statement date:





NOTES TO THE ANNUAL FINANCIAL STATEMENTSLodge card R3 040 000

Rentals R4 400 000

Fleet cards R50 000

Fair value interest rate risk

SALGA’s exposure to this type of risk is slightly higher than the cash fl ow interest rate risk, primarily due to the conservative investment philosophy. Ordinarily fi xed deposits expose the entity to this type of risk. The entity manages this risk by keeping fi xed investments on short-term to mitigate the impact that this type of risk might have on the organisation.

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents, derivative fi nancial instruments and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise of municipalities which are invoiced one a year based on their budgeted salary cost. There is no independent rating, therefore management assesses the credit quality of the customer, taking into account its fi nancial position, past experience and other factors. The entity establishes an impairment that represents its estimate of incurred losses in respect of trade receivables.

Foreign exchange risk

The entity does not hedge foreign exchange fl uctuations.

The entity is seldom exposed to this type of risk, whenever it arises it is normally from Subsistence Allowance outside the Republic. SALGA’s Travel, Accommodation and Subsistence Policy provides for a subsistence allowance of USD 190 per day for each day the offi cial is outside of the Republic of the entity’s business. Since the allowance amount is denominated in a foreign currency, the entity is exposed to currency fl uctuations since these are paid on spot rate due to their infrequency.

Due to the infrequent nature of the transaction management does not employ any hedging mechanism against this risk.

The entity reviews its foreign currency exposure, including commitments on an ongoing basis. The entity expects its foreign exchange contracts to hedge foreign exchange exposure.

Price risk

The entity’s exposure to price risk is limited to the effect that infl ation has on the market prices for goods and services ordinarily procured by the organisation. The risk arises when the entity’s revenue does not escalate at a similar or better rate that the prevailing market conditions, which is rare since the entity’s major source of revenue is its membership levies which due to the basis of deriving the levy amount normally escalates at a rate higher or equivalent to the prevailing infl ationary trends.

There are no special mechanisms employed by management to manage this kind of risk other than pursuing the fair market value/price through a ‘dip-stick’ in the market viz. formal price quotations and open tenders.






34. Events after reporting date

On 1 April 2012 the KwaZulu-Natal business operation (SALGA KwaZulu-Natal) rejoined the national unitary structure of SALGA as pronounced by the National Conference held on 29 August 2011 to 1 September 2011.

Post year-end the Eastern Cape Department of Local Government and Traditional Affairs requested the return of R 5 million in conditional grant funding paid over to SALGA during March 2012 - the said funds were returned to the department on 2 May 2012.

Besides the above there are no material facts or circumstances that have arisen between the date of the balance sheet and the date of approval, which affect the fi nancial position of SALGA as refl ected in these Financial Statements.


35. Fruitless and wasteful expenditure

Opening balance - 888 221

Fruitless and wasteful expenditure – current year - 2 134 687

Fruitless and wasteful expenditure – condoned - (3 022 908)

- -

No fruitless and wasteful expenditure is disclosed, as the organisation had over provided for interest and penalties in the prior year resulting in a credit balance of R287,782 in the current year.







36. Irregular expenditure

Opening balance 16 830 392 16 830 392

Add: Irregular expenditure – current year 37 090 372 24 191 744

Less: Amounts condoned (24 191 744)

53 920 764 16 830 392

Disciplinary and other steps taken

(a) Irregular Expenditure deemed irregular was incurred in the current year amounting to R37 090 372 due to various non-compliance aspects such as not notifying National Treasury within 10 days after an award of more than R1 million; Not communicating the adjudication criteria to prospective bidders for purchases between R30,000 and R1 million; and failure to maintain proof of communicating the adjudication criteria to prospective bidders.

Besides further enhancing the control environment, disciplinary action has been taken against the affected personnel.

37. Reconciliation between budget and statement of fi nancial performance

Reconciliation of budget surplus/defi cit with the surplus/defi cit in the statement of fi nancial performance:

Net (defi cit) surplus per the statement of fi nancial performance 12 301 943 (8 280 076)

Adjusted for:

Fair value adjustments (1 300 000) (100 000)

Less/Add: (Positive) / Negative variances in revenue (11 976 071) 13 296 657

Add/Less: Negative / (Positive) in variances in expenditure 12 508 712 (8 001 689)

Less: (Positive) / Negative in non-operating expenditure (2 044 083) 1 279 641

Net (defi cit) surplus per approved budget 9 490 501 (1 805 467)







38. Standards issued but not yet effective

The following GRAP Standards have been approved but are not yet effective:

GRAP 18 - Segment reporting

GRAP 20 - Related-party disclosures

GRAP 25 - Employee Benefi ts

GRAP 105 - Transfers of functions between entities under common control

GRAP 106 - Transfers of functions between entities not under common control

GRAP 107 - Mergers

The effective dates of the above standards are not yet known. The effect of adopting these GRAP standards when they become effective is not expected to have a signifi cant impact in the fi nancial statements as the principles are similar to those already applied under the equivalent Statement of SA GAAP.





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised

Expense Relating to Bad Debts

Cllr

. Tha

bo M

anyo

niEx

ecut

ive

May

or:

City

of M

anga

ung

Met

ropo

litan

mun

icip

ality

SALG

A

Cha

irper

son

Ope

ning

Bal

ance

773

749

-

N

/AN

/AN

/AN

/A

M/le

vy &

Con

fere

nce

9 5

00 0

00

-

N

/AN

/AN

/AN

/A

Con

fere

nce

regi

stra

tion

24

500

-

N

/AN

/AN

/AN

/A

Cllr

. Nan

cy S

ihlw

ayi

Dep

uty

Exec

utiv

e M

ayor

:N

elso

n M

ande

la

Met

ropo

litan

mun

icip

ality

Dep

uty

Cha

irper

son

of

SALG

A

Ope

ning

Bal

ance

50

800

-2

300

N

ON

ON

ON

O

M/le

vy &

Con

fere

nce

9 5

00 0

00

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 1

0 50

0

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

28

000

-

N

/AN

/AN

/AN

/A

Cllr

. Num

bule

lo H

eman

sM

ayor

:Um

som

bovu

Loc

al

Mun

icip

ality

Dep

uty

Cha

irper

son

of

SALG

A

Ope

ning

Bal

ance

-12

377

-

N/A

N/A

N/A

N/A

M/le

vy &

Con

fere

nce

200

000

-

N

/AN

/AN

/AN

/A

Nat

iona

l Con

fere

nce

14

000

-

N

/AN

/AN

/AN

/A

Cou

ncill

or S

&T

clai

ms

-66

309

-23

063

N/A

N/A

N/A

N/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 4

000

-

N/A

N/A

N/A

N/A

Cllr

. Mph

o N

awa

Exec

utiv

e M

ayor

:W

est R

and

Dis

tric

t M

unic

ipal

ity

Dep

uty

Cha

irper

son

of

SALG

A

Ope

ning

Bal

ance

86

530

99

056

N

ON

ON

ON

O

M/le

vy &

Con

fere

nce

1 0

23 0

29

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 1

600

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

24

500

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Cllr

. Flo

ra M

aboa

-Bol

tman

Ger

t Sib

ande

Dis

tric

t M

unic

ipal

ity

NEC

Mem

ber

O

peni

ng B

alan

ce 6

9 00

9

76 9

25

NO

NO

NO

NO

M/le

vy &

Con

fere

nce

510

791

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 6

000

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

17

500

-

N

/AN

/AN

/AN

/A

Cllr

. Dud

u M

azib

uko

Exec

utiv

e M

ayor

:Uth

ukel

a D

istr

ict M

unic

ipal

ity

NEC

Mem

ber

N

atio

nal C

onfe

renc

e 2

1 00

0

-

N/A

N/A

N/A

N/A

Cllr

. Spe

edy

Mas

hilo

Exec

utiv

e M

ayor

Nka

ngal

a D

istr

ict M

unic

ipal

ity

NEC

Mem

ber

Ope

ning

Bal

ance

15

000

-1

4 15

6 N

ON

ON

ON

O

M/le

vy &

Con

fere

nce

604

381

-29

15

6 -

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 6

000

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

21

000

-

N

/AN

/AN

/AN

/A

Cllr

Chr

is N

eeth

ling

War

d C

ounc

illor

: Goe

rge

Loca

l Mun

icip

ality

NEC

Mem

ber

O

peni

ng B

alan

ce 1

2 17

8

68 5

52

N/A

N/A

N/A

N/A

M/le

vy &

Con

fere

nce

1 5

50 8

13

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 3

000

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

14

000

-3

500

-

N/A

N/A

N/A

N/A

Rec

ord

Man

agem

ent

Con

fere

nce

500

-

N

/AN

/AN

/AN

/A

Add

ition

al M

/levy

59

874

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Cllr

. Jos

hua

Mat

lou

Exec

utiv

e M

ayor

: Mop

ani

Dis

tric

t Mun

icip

ality

NEC

Mem

ber

O

peni

ng B

alan

ce 3

5 04

3

-

N/A

N/A

N/A

N/A

M/le

vy &

Con

fere

nce

887

729

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 9

000

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

28

000

-

N

/AN

/AN

/AN

/A

Rec

ord

Man

agem

ent

Con

fere

nce

1 0

00

-

N

/AN

/AN

/AN

/A

Cllr

Boi

tum

elo

Pin

kie

Mol

oiEx

ecut

ive

May

or:D

r K

enne

th K

aund

a D

istr

ict M

unic

ipal

ity

NEC

Mem

ber

O

peni

ng B

alan

ce -

7 63

4

-7 6

24

NO

NO

NO

NO

M/le

vy &

Con

fere

nce

521

227

-

N

/AN

/AN

/AN

/A

Nat

iona

l Con

fere

nce

24

500

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 6

000

-

N/A

N/A

N/A

N/A

Cllr

. W. J

ohns

onC

hief

Whi

p: F

ranc

is B

aard

M

unic

ipal

ity

Cha

irper

son:

SA

LGA

Nor

ther

n C

ape

Ope

ning

Bal

ance

84

878

86

807

N

ON

ON

ON

O

M/le

vy &

Con

fere

nce

305

936

1 9

29

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

10

500

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 7

000

-

N/A

N/A

N/A

N/A

Rec

ord

Man

agem

ent

Con

fere

nce

500

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

Rel

atio

nshi

pTr

ansa

ctio

n Ty

pe

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Cllr

. Par

ks T

auEx

ecut

ive

May

or: C

ity o

f Jo

hann

esbu

rg

Cha

irper

son:

SA

LGA

G

aute

ng

Ope

ning

Bal

ance

89

541

89

541

N

ON

ON

ON

O

M/le

vy &

C

onfe

renc

e 9

500

000

-

N/A

N/A

N/A

N/A

Pro

vinc

ial

Con

fere

nce

regi

stra

tion

15

000

-

N

/AN

/AN

/AN

/A

Nat

iona

l C

onfe

renc

e 4

2 00

0

N

/AN

/AN

/AN

/A

Rat

es &

Tax

es -

328

432

-2

2 92

9 N

/AN

/AN

/AN

/A

Cllr

. Bal

ekile

Edw

ard

Mza

ngw

aEx

ecut

ive

May

or:

Thab

o M

ofut

sany

ane

Dis

tric

t Mun

icip

ality

Cha

irper

son:

SA

LGA

Fr

ee S

tate

Ope

ning

Bal

ance

2 2

89

-3

800

N

ON

ON

ON

O

M/le

vy &

C

onfe

renc

e27

2 39

3 2

9 20

4 -

N

/AN

/AN

/AN

/A

Nat

iona

l C

onfe

renc

e 3

1 50

0

-

N/A

N/A

N/A

N/A

Cllr

. Dem

etri

Qua

lly

Ald

erm

an: C

ity o

f Cap

e To

wn

Cha

irper

son:

SA

LGA

W

este

rn C

ape

Ope

ning

Bal

ance

7 1

78 3

95

8

800

NO

NO

NO

NO

M/le

vy &

C

onfe

renc

e 9

500

000

-

N/A

N/A

N/A

N/A

Nat

iona

l C

onfe

renc

e 7

000

-

N/A

N/A

N/A

N/A

Pro

vinc

ial

Con

fere

nce

regi

stra

tion

6 0

00

-

N

/AN

/AN

/AN

/A

Cllr

. Gav

in K

aone

Lob

elo

May

or:G

reat

er T

aung

D

istr

ict M

unic

ipal

ity.

Cha

irper

son:

SA

LGA

N

orth

Wes

t

Ope

ning

Bal

ance

6 8

48

-

N

/AN

/AN

/AN

/A

M/le

vy &

C

onfe

renc

e38

0 13

7 3

8 71

5 -

N

/AN

/AN

/AN

/A

Nat

iona

l C

onfe

renc

e 2

8 00

0

-

N/A

N/A

N/A

N/A

Pro

vinc

ial

Con

fere

nce

regi

stra

tion

6 0

00

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Cllr

. Dav

id M

agab

eEx

ecut

ive

May

or:

Sekh

ukhu

ne D

istr

ict

Mun

icip

ality

Cha

irper

son:

SA

LGA

Lim

popo

Ope

ning

Bal

ance

378

558

-

N

/AN

/AN

/AN

/A

M/le

vy &

Con

fere

nce

1 4

40 4

12

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 9

000

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

24

500

-

N

/AN

/AN

/AN

/A

Rec

ord

Man

agem

ent

Con

fere

nce

500

5

00

NO

NO

NO

NO

Cllr

Sib

usis

o W

Mda

beM

ayor

: Ile

mbe

Dis

tric

t M

unic

ipal

ity

Cha

irper

son:

SA

LGA

KZN

Ope

ning

Bal

ance

1 5

00

1

500

NO

NO

NO

NO

Nat

iona

l Con

fere

nce

28

000

-

N

/AN

/AN

/AN

/A

Cllr

Nom

akho

saza

na M

eth

Spea

ker:

OR

Tam

bo

Dis

tric

t Mun

icip

ality

Cha

irper

son:

SA

LGA

Eas

tern

C

ape

Ope

ning

Bal

ance

-70

496

-

N/A

N/A

N/A

N/A

M/le

vy &

Con

fere

nce

1 7

54 1

45

-

N

/AN

/AN

/AN

/A

Rec

ord

Man

agem

ent

Con

fere

nce

1 5

00

1

500

NO

NO

NO

NO

Nat

iona

l Con

fere

nce

28

000

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 9

000

-

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Cllr

Sub

esh

Pill

ayM

MC

Eco

nom

ic

Dev

elop

men

t & P

lann

ing

: Ts

hwan

e M

unic

ipal

ity

City

of T

shw

ane

Co

-Opt

ed N

EC

Mem

ber

Ope

ning

Bal

ance

15

000

12

100

N

ON

ON

ON

O

M/le

vy &

Con

fere

nce

9 5

00 0

00

-

N

/AN

/AN

/AN

/A

Nat

iona

l Con

fere

nce

35

000

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e re

gist

ratio

n 6

800

-

N/A

N/A

N/A

N/A

Car

Lic

ence

&

Reg

istr

atio

n -

1 00

8

-

N/A

N/A

N/A

N/A

Rec

ord

Man

agem

ent

Con

fere

nce

1 5

00

-

N

/AN

/AN

/AN

/A

Dep

artm

ent o

f Co-

oper

ativ

e G

over

nanc

ean

d Tr

aditi

onal

Affa

irs

(CoG

TA)

Exec

utiv

e A

utho

rity

to S

ALG

A –

un

der

com

mon

go

vern

men

t con

trol

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Gov

ernm

ent g

rant

25

486

000

-

N

/AN

/AN

/AN

/A

Exhi

bitio

n 2

0 00

0

-

N/A

N/A

N/A

N/A

Pas

seng

er R

ail A

genc

y of

So

uth

Afr

ica

(PR

ASA

)

SALG

A C

EO

- H

olds

a

Dire

ctor

ship

po

sitio

n

Ope

ning

Bal

ance

- -

-

N/A

N/A

N/A

N/A

Spon

sors

hip

&

Don

atio

ns 1

000

000

1 00

0 00

0 N

/AN

/AN

/AN

/A

Sout

h A

fric

an C

ities

N

etw

ork

SALG

A C

EO

- H

olds

a

Dire

ctor

ship

po

sitio

n

Ope

ning

Bal

ance

- -

-

N/A

N/A

N/A

N/A

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


EDI H

oldi

ngs

SA

LGA

CEO

and

C

OO

- H

olds

a

Dire

ctor

ship

po

sitio

n

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Aud

itor

Gen

eral

of S

A

(AG

SA)

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Rec

ords

Man

agem

ent

500

-

N

/AN

/AN

/AN

/A

Dep

artm

ent o

f Wat

er

affa

irs (

Mas

ibam

bane

pr

ojec

t)

Nat

iona

l Dep

t -

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

68

000

-

N

/AN

/AN

/AN

/A

Ope

ning

Bal

ance

(C

ondi

tiona

l Gra

nt)

-8

264

382

-7

852

18

5 N

/AN

/AN

/AN

/A

Pro

ject

(re

venu

e re

cogn

ition

) -

4 60

8 27

0

-

N/A

N/A

N/A

N/A

Exhi

bitio

n 3

5 00

0

65 0

00

N/A

N/A

N/A

N/A

Dep

artm

ent o

f Pub

lic

Wor

ksN

atio

nal D

ept -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

bal

ance

130

000

-

N

/AN

/AN

/AN

/A

Exhi

bitio

n 3

5 00

0

130

000

N

/AN

/AN

/AN

/A

Dep

artm

ent o

f Rur

al

Dev

elop

men

t and

Lan

d R

efor

m

Nat

iona

l Dep

t -

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

35

000

-

N

/AN

/AN

/AN

/A

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Reg

istr

atio

n fe

es -

R

ecor

ds M

anag

emen

t C

onfe

renc

e50

0

-

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

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nN

atur

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R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Dep

artm

ent o

f Nat

iona

l Tr

easu

ryN

atio

nal D

ept -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Spon

sors

hip

110

980

-

N

/AN

/AN

/AN

/A

Wes

tern

Cap

e D

ept o

f Lo

cal G

over

nmen

t &

Hou

sing

Pro

vinc

ial

Gov

ernm

ent

-Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Spon

sors

hip

1 5

00 0

00

-

N

/AN

/AN

/AN

/A

East

ern

Cap

e D

ept.

of

Loca

l Gov

ernm

ent &

Tr

aditi

onal

Affa

irs

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

300

000

-

N

/AN

/AN

/AN

/A

Spon

sors

hip

6 8

00 0

00

3

00 0

00

N/A

N/A

N/A

N/A

Dep

artm

ent o

f Art

s &

C

ultu

reN

atio

nal D

ept -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Kw

aZul

u-N

atal

Dep

t. of

Loc

al G

over

nmen

t &

Trad

ition

al A

ffairs

Pro

vinc

ial

Gov

ernm

ent -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

bal

ance

-15

9 42

6

-

N/A

N/A

N/A

N/A

Seco

ndm

ent -

Em

ploy

ee 4

8 44

6

-

N/A

N/A

N/A

N/A

Nor

ther

n C

ape

Dep

artm

ent o

f Co-

oper

ativ

e G

over

nanc

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Hum

an S

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men

ts &

Tr

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onal

Affa

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Pro

vinc

ial

Gov

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ent -

U

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com

mon

G

over

nmen

t co

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l

Ope

ning

bal

ance

40

000

-

N

/AN

/AN

/AN

/A

Spon

sors

hip

500

000

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

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nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Mpu

mal

anga

Dep

artm

ent

of C

o-op

erat

ive

Gov

erna

nce

and

Trad

ition

al A

ffairs

Pro

vinc

ial

Gov

ernm

ent -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

50

0 00

0

-

N/A

N/A

N/A

N/A

80

0 05

0

-

N/A

N/A

N/A

N/A

Wes

tern

Cap

e D

epar

tmen

t of

Pro

vinc

ial T

reas

ury

Pub

lic E

ntity

(S

ched

ule

2 of

P

FMA

)

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Pro

vinc

ial C

onfe

renc

e 4

000

-

-

N/A

N/A

N/A

N/A

Dep

artm

ent o

f G

over

nmen

t C

omm

unic

atio

ns,

Info

rmat

ion

Syst

ems

(GC

IS)

Nat

iona

l Dep

t -

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

35

000

-

N

/AN

/AN

/AN

/A

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Impa

irmen

t-

35

000

-

N/A

N/A

YES

YES

Adv

ertis

ing

-33

3 25

0

-

N/A

N/A

N/A

N/A

Dep

artm

ent o

f Soc

ial

Dev

elop

men

t N

atio

nal D

ept -

U

nder

com

mon

G

over

nmen

t co

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l

Ope

ning

bal

ance

-

N

/AN

/AN

/AN

/A

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Dep

artm

ent o

f Rur

al

Dev

elop

men

t and

Lan

d R

efor

m

Und

er c

omm

on

Gov

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ent

cont

rol

Ope

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bal

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-

-

N/A

N/A

N/A

N/A

Rec

ords

Man

agem

ent

500

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Gau

teng

Dep

artm

ent

of L

ocal

Gov

ernm

ent &

H

ousi

ng

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

(C

ondi

tiona

l Gra

nt)

-38

8 88

9

-55

556

N/A

N/A

N/A

N/A

Pro

ject

(re

venu

e re

cogn

ition

)33

3 33

3

-

N/A

N/A

N/A

N/A

Rec

ords

Man

agem

ent

4 5

00

3

000

N/A

N/A

N/A

N/A

Dep

artm

ent o

f Spo

rts

&

Rec

reat

ion

Nat

iona

l Dep

t -

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Rec

ords

Man

agem

ent

1 0

00

-

N

/AN

/AN

/AN

/A

N/A

N/A

N/A

N/A

Dev

elop

men

t Ban

k of

So

uthe

rn A

fric

a (D

BSA

)M

ajor

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

933

596

-

N

/AN

/AN

/AN

/A

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Spon

sors

hip/

Don

atio

n25

0 00

0

184

N

/AN

/AN

/AN

/A

N/A

N/A

N/A

N/A

ESK

OM

Maj

or P

ublic

Ent

ity

- U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Spon

sors

hip

4 0

00 0

00

-

N

/AN

/AN

/AN

/A

N/A

N/A

N/A

N/A

Indu

stria

l Dev

elop

men

t C

orpo

ratio

n (I

DC

)M

ajor

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Spon

sors

hip

&

Don

atio

n17

5 00

0

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

30

000

-

N

/AN

/AN

/AN

/A

Spon

sors

hip

&

Don

atio

n17

5 00

0

-

N/A

N/A

N/A

N/A

Rec

ords

Man

agem

ent

500

5

00

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Inde

pend

ent D

evel

opm

ent

Trus

tM

ajor

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Pro

vinc

ial C

onfe

renc

e ex

hibi

tion

15

000

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e R

egis

trat

ion

2 0

00

16

500

N

/AN

/AN

/AN

/A

N/A

N/A

N/A

N/A

Loca

l Gov

ernm

ent S

ecto

r Ed

ucat

ion

and

Trai

ning

A

utho

rity

(SET

A)

Loca

l Gov

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

35

097

35

097

N

/AN

/AN

/AN

/A

Spon

sors

hip

&

Don

atio

n 1

0 07

4 16

0

-3 9

25

840

N/A

N/A

N/A

N/A

Con

ditio

nal G

rant

: Le

arne

rshi

p Sp

onso

r 3

6 00

0

-21

600

N/A

N/A

N/A

N/A

LGSE

TA T

rain

ing

Levy

540

034

-

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e Ex

hibi

tion

15

000

-

N

/AN

/AN

/AN

/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Nat

iona

l Cre

dit R

egul

ator

(N

CR

)P

ublic

Ent

ity -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Nat

iona

l Ene

rgy

Reg

ulat

or

of S

outh

Afr

ica

(NER

SA)

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Sout

h A

fric

an P

ost O

ffi ce

Maj

or P

ublic

Ent

ity

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com

mon

G

over

nmen

t c

ontr

ol

Ope

ning

bal

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-

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Pos

tal s

ervi

ces

-1

304

-

N

/AN

/AN

/AN

/A

Sout

h A

fric

an B

urea

u of

St

anda

rds

(SA

BS)

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Sout

h A

fric

an L

ocal

G

over

nmen

t Bar

gain

ing

Cou

ncil

(SA

LGB

C)

Loca

l Gov

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Stat

istic

s So

uth

Afr

ica

(Sta

ts S

A)

Nat

iona

l Dep

t -

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

N

/AN

/AN

/AN

/A

Pro

vinc

ial C

onfe

renc

e ex

hibi

tion

15

000

N/A

N/A

N/A

N/A

Spon

sors

hip

&

Don

atio

n 1

500

000

1 51

5 00

0 N

/AN

/AN

/AN

/A

Stat

e In

form

atio

n Te

chno

logy

Age

ncy

(SIT

A)

Maj

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Ent

ity

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com

mon

G

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nmen

t co

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l

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Spon

sors

hip

&

Don

atio

n 8

0 00

0

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Wat

er R

esea

rch

Com

mis

sion

(W

RC

) M

ajor

Pub

lic E

ntity

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Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

bal

ance

-

-

N/A

N/A

N/A

N/A

Pro

vinc

ial C

onfe

renc

e ex

hibi

tion

5 0

00

-

N

/AN

/AN

/AN

/A

Res

earc

h -

2 31

1 83

9

-

N/A

N/A

N/A

N/A

Sout

h A

fric

an

Bro

adca

stin

g C

orpo

ratio

n (S

AB

C)

Maj

or P

ublic

Ent

ity

- U

nder

com

mon

G

over

nmen

tco

ntro

l

Tele

visi

on

Adv

ertis

emen

ts a

nd

Lice

nce

-86

447

-

N/A

N/A

N/A

N/A

Gov

ernm

ent P

rintin

g W

orks

Pub

lic E

ntity

- U

nder

com

mon

G

over

nmen

t co

ntro

l

Prin

ting

Wor

ks -

64 6

71

-2

4 94

8 N

/AN

/AN

/AN

/A

Spee

d C

ourie

r Se

rvic

esSa

me

Con

trol

ling

Bod

y P

art o

f SA

P

ost O

ffi ce

Cou

rier

serv

ices

-9

204

-9

21

N/A

N/A

N/A

N/A

Telk

om S

A L

imite

dM

ajor

Pub

lic E

ntity

-

unde

r co

mm

on

cont

rol

Usa

ge o

f tel

epho

ne

lines

-1

882

513

-2

54 4

28

N/A

N/A

N/A

N/A

The

Mun

icip

al In

stitu

te o

f Le

arni

ngIs

a m

unic

ipal

en

tity

of e

Thek

win

i m

etro

polit

an

mun

icip

ality

Cat

erin

g -

19 5

00

-

N

/AN

/AN

/AN

/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Hum

an S

cien

ce R

esea

rch

Cou

ncil

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Cat

erin

g

-4

500

-

N

/AN

/AN

/AN

/A

Bra

amfo

ntei

n Im

prov

emen

t Dis

tric

tP

art o

f City

of

Joha

nnes

burg

Rat

es -

14 5

00

-

N

/AN

/AN

/AN

/A

Free

Sta

te D

epar

tmen

t of

Coo

pera

tive

Gov

erna

nce

&

Trad

ition

al A

ffairs

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

(C

ondi

tiona

l Gra

nt)

-1

334

409

-1

120

32

3 N

/AN

/AN

/AN

/A

Pro

ject

(re

venu

e re

cogn

ition

)21

4 08

6

-

LA-

Hea

lth

Fund

er C

ondi

tiona

l G

rant

:O

peni

ng B

alan

ce -

200

000

-1

60 0

00

N/A

N/A

N/A

N/A

Pro

ject

(re

venu

e re

cogn

ition

) 4

0 00

0

-

N/A

N/A

N/A

N/A

LED

Net

wor

kFu

nder

Con

ditio

nal

Gra

nt:

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Con

ditio

nal g

rant

216

000

-

N

/AN

/AN

/AN

/A

Smal

l Ent

erpr

ise

Dev

elop

men

t Age

ncy

(SED

A)

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Spon

sors

hip

&

Don

atio

n N

C 5

0 00

0

-

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Hou

sing

Dev

elop

men

t A

genc

y

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

Rur

al H

ousi

ng L

oan

Fund

P

ublic

Ent

ity -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Ope

ning

Bal

ance

-

-

N/A

N/A

N/A

N/A

Nat

iona

l Con

fere

nce

Exhi

bitio

n 3

5 00

0

-

N/A

N/A

N/A

N/A

SASR

IA

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-

N/A

N/A

N/A

N/A

Spon

sors

hip

&

Don

atio

n40

0 00

0

-

N/A

N/A

N/A

N/A

Sedi

beng

Wat

er

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

-1

220

-

N

/AN

/AN

/AN

/A

Spon

sors

hip

&

Don

atio

n 2

0 00

0

-

N/A

N/A

N/A

N/A

Rec

ogni

tion

of R

even

ue 1

220

-

N/A

N/A

N/A

N/A

Dep

artm

ent o

f Wat

er

Affa

irs

Fund

er C

ondi

tiona

l G

rant

:

Ope

ning

Bal

ance

-8

264

382

-7

852

18

5 N

/AN

/AN

/AN

/A

Pro

ject

exp

ense

-4

608

270

-

N

/AN

/AN

/AN

/A

Swed

ish

Ass

ocia

tion

of

Loca

l Aut

horit

ies

(P3)

Fund

er C

ondi

tiona

l G

rant

:

Ope

ning

Bal

ance

165

016

-

N

/AN

/AN

/AN

/A

Pro

ject

exp

ense

s -

2 78

9 58

7

-

N/A

N/A

N/A

N/A

Gra

nt c

losi

ng b

alan

ce-

1

189

249

N/A

N/A

N/A

N/A





ANNEXURES

Ann

exur

e A

- R

elat

ed P

arty

Tra

nsac

tion

and

Bal

ance

s Fi

gure

s in

Ran

d

Nam

e &

Pos

itio

nN

atur

e of

R

elat

ions

hip

Tran

sact

ion

Type

Transaction Amount

Adjustments

Outstanding Amount

Secured

Guarantees

Provision Raised


Swed

ish

Dev

elop

men

t C

oope

ratio

n A

genc

y

Fund

er C

ondi

tiona

l G

rant

:

Ope

ning

Bal

ance

-2

185

846

-

N

/AN

/AN

/AN

/A

Pro

ject

exp

ense

s -

3 73

0 89

9

-

N/A

N/A

N/A

N/A

Gra

nt c

losi

ng b

alan

ce-

1

538

901

N/A

N/A

N/A

N/A

Dep

artm

ent o

f En

viro

nmen

tal A

ffairs

Fund

er C

ondi

tiona

l G

rant

:O

peni

ng B

alan

ce -

300

000

-

N

/AN

/AN

/AN

/A

Pro

ject

exp

ense

s -

300

000

-

N

/AN

/AN

/AN

/A

Nat

iona

l Con

fere

nce

10

500

-

N

/AN

/AN

/AN

/A

Gra

nt c

losi

ng b

alan

ce-

-

N

/AN

/AN

/AN

/A

Sout

h A

fric

an R

even

ue

Serv

ices

(SA

RS)

P

ublic

Ent

ity -

U

nder

com

mon

G

over

nmen

t co

ntro

l

Empl

oyee

s Ta

x; U

IF;

and

SDL

-37

416

251

-2 5

90

893

N/A

N/A

N/A

N/A

Com

mon

wea

lth L

ocal

G

over

nmen

t For

um

(CLG

F)

Salg

a is

a m

embe

r

Mem

bers

hip

fees

-90

362

-

N/A

N/A

N/A

N/A

Pub

lic A

dmin

istr

atio

n Le

ader

ship

and

M

anag

emen

t Aca

dem

y (P

ALA

MA

)

Pub

lic E

ntity

-

Und

er c

omm

on

Gov

ernm

ent

cont

rol

Ope

ning

Bal

ance

3 0

00

1

000

N/A

N/A

N/A

N/A

Um

geni

Wat

erN

atio

nal

Gov

ernm

ent

Bus

ines

s En

terp

rise

Spon

sors

hip

20

000

-

N

/AN

/AN

/AN

/A



3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP


SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED

Name of donor Nature of gift, donation or sponsorship Actual

Wesbank Gauteng Budget Week 15 000

The Industrial Development Corporation LED Network 175 000

First National Bank Councillor Induction Programme (NC) 20 000

Trade and Investment Limpopo Limpopo Provincial Conference 50 000

Limpopo Business Support Agency Limpopo Provincial Conference 20 000

PriceWaterhouseCoopers King III Workshop 30 000

First National Bank EC Provincial Conference 50 000

Eden District Municipality WC Provincial Conference 50 000

CoGTA (NC) CIP / NC Provincial Conference 500 000

Dept of Local Govt and Housing ELDP for Councillors (WC) 1 000 000

Alexander Forbes NW Provincial Conference 5 000

Economic Development Enterprise Limpopo Provincial Conference 60 000

SupplyFIN (Pty) Ltd Limpopo Provincial Conference 30 000

Standard Bank WC Provincial Conference 100 000

Polokwane Local Municipality LP Provincial Conference 50 000

SITA NC Provincial Conference 80 000

Standard Bank NC Provincial Conference 150 000

SEDA NC Provincial Conference 50 000

Internet Solutions National Conference 300 000

Lateral Unison Insurance Brokers EC Provincial Conference 50 000

Steve Tshwete Municipality MP Provincial Conference 98 600

Vhembe District Municipality LP Provincial Conference 52 000

Standard Bank (NW) NW Provincial Conference 100 000

Department of Local Govt and Housing WC Provincial Conference 50 000

Anglo Platinum Limited Local Government Capacity Building 500 000

Lemphane Fleet Solution FS Provincial Conference 3 000

StatsSA National Conference 1 500 000

SASRIA National Conference 250 000

UMGENI Water National Conference 20 000

Bonitas Marketing EC Provincial Conference 10 000

The supplementary information presented does not form part of the fi nancial statements and is unaudited






Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED (CONTINUED)


Standard Bank National Conference 200 000

Anglo Platinum Limited NW Provincial Conference 20 000

Egis Software South Africa Records Management Conference 5 000

Development Bank of SA (DBSA) National Conference 250 000

Old Mutual - IBSA dialogue IBSA local government dialogue 109 400

National Treasury ODAP - IDC 110 980

Sedibeng Water NC PEC Lekgotla 20 000

Passenger Rail SA National Conference 1 000 000

GIZ Salary: LED Coordinator 72 000

ESKOM National Conference 4 000 000

Softline Pastel NC Budget Week 25 000

IMQS Software NC Finance Forums 2 500

Ducharme Consulting NC Finance Forums 5 000

Konica Minolta FS Budget week 50 000

GIZ Salary: LED Coordinator: Economic Dev 18 000

SASRIA EMT Lekgotla 150 000

GIZ Salary: LED Coordinator - Economic Dev 18 000

CoGTA (MP) CIP Mpumalanga 800 050

SKL International GEMLOG 46 228

SKL International LODLOG/GEMLOG Steercom Meeting 44 558

GIZ LED Newsletter Special Edition 20 000

First National Bank FS Provincial Conference 40 000

Ramabulana Management Service NC Provincial Conference 10 000

Mubesko Africa NC Provincial Conference 5 000

Industrial Development Corporation LED Network 175 000



Standard Bank (LIM) Provincial Budget Week (Limpopo) 50 000

LGSETA Contribution to Internship - IGR 7 200

African Centre for Local Govt Improvement Contribution to Travel costs 51 812







Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED (CONTINUED)


Sister Cities Network Contribution to Travel costs 10 595

Nedbank Business Bank (LIM) KMI Seminar 10 000

Altech Netstar Sponsorship: NEC Lekgotla 30 000


LGSETA Contribution to Internship - IGR 7 200

Total 12 786 123







Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND

Donor Reason for Sponsorship Type of Sponsorship Amount

SANLAM Provincial Conference (Western Cape)

180 Note Pads & Pens 1 800

SANLAM Provincial Conference (Western Cape)

180 Conference Bags 11 700

DBSA Training (Western Cape) Consultant appointed for Telematics Training - Consultant paid directly by DBSA

50 000

Gender Links Workshop Facilitation (Western Cape)

24-26 August 2011 Gender Links facilitated a Gender mainstreaming workshop to Councillors and offi cials. The R5 000 relates to Accommodation and Travel costs

5 000

IDC Mossel Bay & George (Western Cape)

Assisted municipalities with accessing funds for LED Strategies. The R400 000 (R200 000 for each municipality) was not paid to the SALGA account, but that was the worth of assistance)

400 000

Department of Water Affairs Training (Western Cape) Consultant was paid directly 250 000

National Council for Persons with Physical Disabilities

Capacity Building Workshop (Western Cape)

A Capacity Building Workshop was facilitated by The National Council for Persons with Physical Disabilities to Councillors, offi cials and Community based structures on 15 August 2011 (Includes S & T and accommodation costs)

17 630

Member municipalities Councillor training and service improvement (Western Cape)

Venue Hire 65 200

USAID - North-West University Disaster Management Capacity Building Programme (Northern Cape)

Disaster Risk Reduction Short Courses

219 000

National Treasury Training for MMC’s and Mayors (Northern Cape)

Venue, Catering, Training Materials and Facilitation

38 920

Audit Network Firm Provincial Conference (Northern Cape)

Consulting Services 48 300

Sol Plaatjie Municipality Provincial Conference (Northern Cape)

Jimmy Summers & West End Club 5 000

Sol Plaatjie Municipality Provincial Conference (Northern Cape)

Gala Dinner 37 375







Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND (CONTINUED)


SEDA Provincial Conference (Northern Cape)

Promotional Materials - 200 Branded Paper Bags, Folders, Pens & Note Pads

15 000

Department of Environmental Affairs Landfi ll Site Operators and Managers Training (Northern Cape)

Training Costs 328 000

Development Bank of Southern Africa

LED Learnership for NQF Level 4 & 5 NC Municipalities (Northern Cape)

Learnerships for NQF Level 4 & 5 for N/Cape Municipalities

1 200 000

Dept: Rural Development Spatial Planning Seminar (Northern Cape)

Payment towards the Conference Venue

14 580

First National Bank PEC Lekgotla (Northern Cape) FNB Branded Pens and Note Pads 998

Siyanda District Municipality PEC Lekgotla (Northern Cape) Dinner for Staff and PEC Members

Kai Garib Local Municipality PEC Lekgotla (Northern Cape) Dinner for PEC Lekgotla Delegates, SALGA Staff and PEC

38 380

Joe Morolong Local Municipality WIPLG Summit (Northern Cape) Live Band, Hall and Catering for the WIPLG Summit

48 000

Department of Water Affairs Councillor Development Programme (Northern Cape)

Training Costs - S & T and Accommodation

53 584

Small Enterprise Development Adra New Year Diaries (Northern Cape) 36 Diaries A4 SEDA Branded Diaries and 17 Desk Pads

5 960

Aurecon Councillor Induction Programme (North West)

950 Conference Bags 34 180

Department of Local Government Councillor Induction Programme (North West)

Catering at 4 Districts for CIP : lunches

495 918

Rustenburg Local Municipality Councillor Induction Programme (North West)

Utilization of venue 50 100

Naledi Local Municipality Councillor Induction Programme (North West)


Mafi keng Local Municipality Councillor Induction Programme (North West)


Tlokwe City Council Councillor Induction Programme (North West)

Mayoral Dinner i.r.o. Cllr Induction 17 000

Sedibeng Water Provincial Conference (North West) 200 Long Sleeve Golf shirts 36 197

Offi ce World Provincial Conference (North West) 200 PVC Envelopes, 200 Writing pads, 200 pens

2 770

Tshikovha Enviro Provincial Conference (North West) Corporate gifts 5 659







Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND (CONTINUED)


Bojanala Platinum DM Provincial Conference (North West) Gala Dinner 100 000

Rand Water Provincial Conference (North West) Conference Bags 10 000

Dr Ruth Mompati DM PEC Lekgotla (North West) Dinner 24 800

Barefoot Media Town Planning Summit (North West)

Conference Bags 2 556

NDMC & USAID Disaster Management CB Programme (North West)

Training costs 150 000

Rural Maintenance CIP (Gauteng) Glossy brochures 4 908

Rural Maintenance Provincial Conference (Gauteng) Tshwane Bus Services 1 742

Rural Maintenance Provincial Conference (Gauteng) Cultural Dance Group 3 000

Rural Maintenance Provincial Conference (Gauteng) Entertainment (Ringo) 30 000

Rural Maintenance Provincial Conference (Gauteng) 3 in 1 Wind Breakers 26 732

Rural Maintenance Provincial Conference (Gauteng) Branded 2G USB 16 459

Rural Maintenance Provincial Conference (Gauteng) Wooden mouse and mouse pads 25 057

East Rand Water Company (ERWAT) Provincial Conference (Gauteng) 350 Branded Conference bags

City of Tshwane Provincial Conference (Gauteng) Gala Dinner Venue 85 000

SAMWUMED OR Tambo Games (Gauteng) 5000 Water Bottles 58 140

COMMED Medical Aid OR Tambo Games (Gauteng) Flyman Jackets, shoulder bags, ladies golf shirts, gents golf shirts, half-moon caps

66 281

Amatole Water Board Provincial Conference 2011 (Eastern Cape)

Bottled Water / note pads/pens 800

Cacadu DM Provincial Conference 2011 (Eastern Cape)

Cocktail Function 120 000

Nelson Mandela Metro Provincial Conference 2011 (Eastern Cape)

Gala Dinner 100 000

Business Link SALGA Games (Eastern Cape) Trophy / Shield 400

Dept of Loc Govt SALGA Games (Eastern Cape) Medals 500



3.7 PERFORMANCE INFORMATION (TABLES)

CHANGE AGENDA 1:IMPROVE THE CAPACITY OF SALGA TO SUPPORT AND ADVISE ITS MEMBERS.

BUSINESS UNIT KPI/OUTPUT BASELINE TARGET KPI

NRPERFORMANCE

STATUSREASON FOR

VARIANCE

OCEO

Institutionalised and functional Enquiry Management System (EMS) in all directorates

System piloted in the OCEO including SPR and MIS/MID

All national directorates to be included on EMS by March 2012

1 ACHIEVED N/A

SPRDevelop stakeholder management policy

Draft Policy

Approved stakeholdermanagement policy by March 2012

2 ACHIEVED N/A

SPR

Facilitate structured engagements with donors, private sector and civil society

New Indicator

06 structured engagements with donors, private sector and civil society by March 2012

3 ACHIEVED N/A

IGRFinalisation of Hands-on Support Strategy

Draft strategy approved on 25 March 2011

Hands-on Support Strategy approved by 31 March 2012

4 ACHIEVED N/A

IGRProvide direct hands-on support to municipalities

Hands on support provided to more than 25 municipalities in 2010-11

Hands -on support provided to at least 25 municipalities in 2011-12 by 31 March 2012

5 ACHIEVED N/A

IGR

Draft and submit substantial policy documents on LG policy review process.

COGTA TAS and Delivery Agreement for Outcome 9

Draft submissions to DCOG by 15 July 2011.

6 ACHIEVED N/A

IGR



Participate in the DCOG seminars on the policy review process by March 2012.

7 ACHIEVED N/A

IGR



Submissions to parliament for purpose of lobbying by 31 March 2012.

8 ACHIEVED N/A

SALGA WCMigration Study disseminated to municipalities

New Indicator

Sharing research study (Migration) with two districts municipalities by September 2011

9 ACHIEVED N/A



CHANGE AGENDA 1:IMPROVE THE CAPACITY OF SALGA TO SUPPORT AND ADVISE ITS MEMBERS.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA WC

Facilitate a learning event around community development issues

New Indicator1 Learning Event on MDGs conducted by October 2011

10 ACHIEVED N/A

IGR

Development of a Blueprint for guiding future restructuring in LG

Participation in Tshwane-Metsweding merger

Blueprint approved by NEC by 31 December 2011

11 ACHIEVED N/A

IGR



Submission of Blueprint to LG Minmecs by March 2012 for purpose of lobbying

12 ACHIEVED N/A

IGR



Submission to provincial PCFs by Feb/March 2012 for purpose of lobbying

13 ACHIEVED N/A



CHANGE AGENDA 2:IMPROVE ON THE CAPACITY OF SALGA TO ENGAGE WITH STAKEHOLDERS AND LOBBY AND ADVOCATE

THEM ON ISSUES IN THE INTERESTS OF MEMBER MUNICIPALITIES.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SPR

Policy briefs disseminated to Local Government Stakeholders

New Indicator

06 Policy briefs packaged and disseminated to Local Government stakeholders by March 2012.

14 ACHIEVED N/A

IGR

Representation of SALGA in IGR structures with clear mandated positions developed and cllr representation in place.

SALGA parliamentary programme 2010-11

Delegation by NEC of representatives for participation in parliament and provincial legislatures in line with the parliamentary programme 2011-12 by March 2012.

15 ACHIEVED N/A

IGR

Development of a Capacity Building programme/tool for NEC/PEC members on Advocacy and Lobbying.


Approved SALGA Advocacy and Lobbying programme by December 2011.

16 ACHIEVED N/A

IGR

Development of a Capacity Building programme/tool for NEC/PEC members on Advocacy and Lobbying.


50 members of NEC/PECs trained in lobbying and advocacy strategies by December 2011.

17 ACHIEVED N/A

IGR

Optimising OLG participation in the IGR system by March 2012

Draft strategy approved by NEC on 25 March 2011

Final IGR Strategy approved by NEC by 31 March 2012

18 ACHIEVED N/A

SALGA WCInputs on various relevant Legislation to provincial legislature

As per 2010/2011 fi nal performance

Engage municipalities to gather inputs on various relevant legislature by March 2012.

19 ACHIEVED N/A

SALGA WC

Report on engagements with intergovernmental forums

As per the 2010/2011 fi nal performance

Report on engagements with intergovernmental forums e.g. MINMAY by end March 2012

20 ACHIEVED N/A



CHANGE AGENDA 2:IMPROVE ON THE CAPACITY OF SALGA TO ENGAGE WITH STAKEHOLDERS AND LOBBY AND ADVOCATE

THEM ON ISSUES IN THE INTERESTS OF MEMBER MUNICIPALITIES.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA WC

Engagement of three Stakeholders on the collaboration Partnerships with SALGA

New Indicator

Engagement of three Stakeholders on the collaboration Partnerships with SALGA by March 2012

21 ACHIEVED N/A



CHANGE AGENDA 4:ENHANCE AND MAINTAIN A HIGH PROFILE LOCALLY, REGIONALLY, AND INTERNATIONALLY.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

OCEO

Structured SALGA participation in key structures regionally, continentally and internationally (UCLGA; UCLG, CLGF, etc) and support provided to OLG in the Region

Assessment of SALGA Participation in regional, continental and international structures

Provide support to OLG in the region as per the MOUs that are in place by March 2012 22 ACHIEVED N/A

OCEO

Coordinated organisational input into all matters pertaining to Councillor Support

2010/11 Upper Limits Notice; SALGA Position on Councillor Support; SALGA Position and Work done on MCPF related issues

Conduct study on the Pension Fund and Medical Aid regime for councillors by March 2012

23 ACHIEVED N/A

MIS

Approved timely submissions on bulk water pricing as per section 42 of MFMA

Submission to DWA and Parliament

Approved submission on bulk water pricing made to regulators by January 2012

24 ACHIEVED N/A

IGR

Ensure effective representation of SALGA at IGR Conferences, workshops and seminars.

Active participation in conference and workshops in 2010-11

Draft fi ve speeches and 10 presentations (IGR structures) or such additional inputs as may be required by 31 March 2012.

25 ACHIEVED N/A

IGR

SALGA participating in all relevant IR structures nationally, continentally and internationally

Established linked with international stakeholders

SALGA participate and play a meaningful role in all relevant IR Structures by March 2012

26 ACHIEVED N/A

SALGA EC

SALGA EC participating in all IGR and IR Structures within the province, national and international

As per 10/11Business Plan

SALGA participate and play a meaningful role in all Munimecs and IGR District forum structures by March 2012

27 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NW

Municipalities advised towards aligning and strengthening of international partnerships and implementation of twinning agreements.

As per 2010/11 business plan

Coordinate and Support Partnership between Korean Institute for Development and Moretele Local Municipality by March 2012

28 ACHIEVED N/A

SALGA WC

Assessment on International Partnerships

New Indicator Conduct an assessment on International Partnership by December 2011

29 ACHIEVED N/A

SALGA WC

Marketing and Branding of SALGA

New Indicator Profi ling of the SALGA WC projects/programmes by means of newsletters and annual publication by March 2012.

30 ACHIEVED N/A

SALGA FS

Timely dissemination of accurate information internally and externally

New indicator Four Internal/external newsletter developed by March 2012

31 ACHIEVED N/A

OCEO


2010/11 Upper Limits Notice; SALGA Position on Councillor Support; SALGA Position and Work done on MCPF-related issues

Input into the fi nalisation of Tools of Trade by March 2012

32 ACHIEVED N/A

OCEO


2010/11 Upper Limits Notice; SALGA Position on Councillor Support; SALGA Position, and Work done on MCPF-related issues

Input into the Review of the System of Remuneration for Councillors by March 2102

33 ACHIEVED N/A

OCEO


2010/11 Upper Limits Notice; SALGA Position on Councillor Support; SALGA Position and Work done on MCPF-related issues

Conduct provincial workshops on overall Councillor Support for new and returning Councillors post the Elections by March 2012

34 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

OCEO

Coordinated organisational input

into all matters pertaining to

Councillor Support

2010/11 Upper Limits Notice;

SALGA Position on Councillor Support; SALGA Position and

Work done on MCPF-related issues

Participate in the Upper Limits process

for the 2011/12 fi nancial year by

March 2012

35 ACHIEVED N/A

OCEO

Coordinated organisational input

into all matters pertaining to

Councillor Support

2010/11 Upper Limits Notice;

SALGA Position on Councillor Support; SALGA Position and

Work done on MCPF-related issues

Co-ordinate and facilitate participation on MCPF issues as

and when required or requested by March

2012

36 ACHIEVED N/A



CHANGE AGENDA 5:IMPROVE THE SALGA CORPORATE GOVERNANCE AND INTERNAL FUNCTIONING.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

OCEO

Coordinated and Structured Governance Structures and events of SALGA

New Indicator

Coordinate support and preparation for all SALGA Governance structures and events , including NOB, NEC, NC, NWGs as per the SALGA schedule of meetings by March 2012

37 ACHIEVED N/A

OCEOImplemented Annual Audit Coverage Plan for 2011/12.

Audit Coverage Plan 2011/12

2011/12 Annual Audit Coverage plan developed and implemented as per the deadlines, including 13 internal audits by March 2012

38 NOT ACHIEVEDLack of capacity

OCEODeveloped 2012/13 Audit Plan

2010/11 Audit Plan

2012/13 Audit Plan developed and approved by March 2012

39 ACHIEVED N/A

OCEO

Developed and implemented contract management strategy.

Internal audit assessment on the contract management status of SALGA

Develop contract management strategy and fl ow chart based for National offi ce by March 2012

40 NOT ACHIEVED

No capacity, as the departure of the director of legal and compliance and the failure to appoint a contract management specialist has hampered the implementation of this KPI

OCEO

Implementation of the compliance framework for SALGA.

Compliance framework

Quarterly reports on implementation of the compliance framework developed for submission to Audit Committee and SALGA governance structures by March 2012.

41 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

OCEOProvision of ongoing legal services

Legal Register

All matters attended to as required and captured in the legal register by March 2012.

42 ACHIEVED N/A

OCEODeveloped Organisational Risk Register for 2012/13

Approved SALGA 2011/12 organisational Risk Register.

Conduct Risk Assessments of directorates and provinces for 2012/13 to develop the risk register by January 2012

43 ACHIEVEDTarget was only met by February

2012

OCEO

An institutionalised Performance Management System throughout SALGA

Performance Management System rolled-out up to employees on staff level 4

Performance Management System cascaded to employees across all staff levels by March 2012

44 NOT ACHIEVED Lack of capacity

OCEODeveloped and Implemented Behaviors Charter

New Indicator

Developed and implemented Behaviors Charter to Employee level 1 - 3 by March 2012


OCEOEstablished SALGA Fraud Hotline

Approved Fraud Prevention Plan

Establish SALGA Hotline by March 2012

46 ACHIEVED N/A

OCEO

Implemented Marketing and Communication Plan/s

Approved Marketing and Communication Strategy and Plan

Marketing and Communications Plans implemented by March 2012

47 NOT ACHIEVED Lack of Capacity

F & CS

Management and monitoring of staff movements within SALGA.

Existing staff capacity

HR Report submitted to the CEO quarterly and Municipal Finance and Corporate Services Working Group meetings during the fi nancial year by March 2012

48 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

F & CS

Fully implemented Electronic Document Records Management Systems (EDRMS) to all offi ces

National offi ce and six Provincial offi ces implemented

Roll-out of Electronic Document and Record Management System (EDRMS) for Eastern Cape and Northern Cape Provincial offi ces by March 2012.

49 ACHIEVED N/A

F & CS

Ensure that the ICT functions at both National and Provincial Offi ces are maintained at an operational level

New IndicatorMaintaining the network stability at 95% by March 2012

50 ACHIEVED N/A

F & CSImprove the liquidity of SALGA

90% collection levels

95% collection of membership levies by year end (March 2012)

51 NOT ACHIEVEDMunicipalities unable to pay

levies

F & CS

Ensure offi ce accommodation that is compliant to applicable legislation

New Indicator

25% of SALGA offi ces compliant with applicable legislation by March 2012

52 ACHIEVED N/A

F & CSReview of the Membership levy formula

Revised levy formula

Revised membership levy formula for 2011/12 year approved by NEC and adopted by National Conference by September 2011

53 ACHIEVED N/A

F & CSImplementation of the approved purchasing method

New Indicator

Implementation of Treasury Guidelines on Supply Chain by March 2012

54 ACHIEVED N/A

SPR

SALGA in-year Quarterly Performance Reports (O-PMS) submitted to the Minister: DCoG

Quarterly Reports submitted to Minister: DCoG

Four Quarterly Performance Reports on implementation of SALGA Annual Performance Plan by 31 March 2012

55 ACHIEVED N/A

SPR

Submission of the Mid-Term Review of the SALGA Business Plan 2011/12 to Minister: DCoG

Mid-Term Review APP 2011/12

Revised Performance Plan 2011/12 submitted to Minister: DCoG by December 2011

56 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SPR

Approved SALGA Performance Plan 2012/13 submitted to the Minister: DCoG

Annual Performance Plan 2011/12

Approved SALGA Annual Performance Plan 2012/13 submitted to COGTA and National Treasury by 31 January 2012

57 ACHIEVED N/A

SPR

Submission of the SALGA Annual Report 2010/11 to Minister: DCoG (Parliament)

Annual Report 2010/11

SALGA Annual Report 2010/11 submitted to Minister: COGTA (Parliament) by 31 August 2011

58 ACHIEVED N/A

SPR

SALGA 5-Year Strategic Plan 2012-2017 submitted to Minister: CoGTA and National Treasury

Strategic Plan 2007-2012

SALGA 5-Year Strategic Plan 2012-2017 submitted to COGTA and National Treasury by 31 January 2012

59 ACHIEVED N/A

SPR

Mainstreaming the Strategic and Business Planning Policy

Strategic and Business Planning Policy

Quarterly Managers: Strategic Support forum meetings by March 2012

60 ACHIEVED N/A

SALGA ECAlign strategic goals to the resources

EC Annual Performance Plan 2011/12

Develop Annual Performance plan 2012/13 for SALGA-EC by March 2012

61 ACHIEVED N/A

SALGA EC

Coordinate the hosting and functionality of all Governance Structures in line with the constitution of SALGA


Two PC, four PEC meetings, three meetings per working group coordinated by March 2012

62 NOT ACHIEVED

The Second provincial

conference could not be held since the Special Conference

(National) did not take place

SALGA FS

Units complying with prescribed business planning processes (implementation of

KPI, reporting)

2010/11 Free State Performance Plan

Four quarterly reports on the

implementation of the 2011/12

Performance Plan by March 2012

63 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA FS

Convene all Provincial

Governance Structures

SALGA Governance Framework

11 SALGA Governance

Structures convened by March 2012

64 ACHIEVED N/A

SALGA LP

Coordination of governance structures and

Hosting conferences

PMA and PEC Lekgotla, Strategic Planning Session, Municipal Awards

Provincial Conference, PEC

Lekgotla, 12 working groups, four PEC

Meetings, and two Offi ce Bearer meeting by March

2012

65 ACHIEVED N/A

SALGA LP

Develop provincial newsletter and publications of SALGA’s events

2010/11 approved Business Plan.

Develop two Provincial Newsletter

and 12 media publications/

coverage by March 2012

66 ACHIEVED N/A

SALGA MP

SALGA MP-branded and marketed locally, district and provincial

level

New indicator

SALGA profi led through electronic

media, print media, two stakeholder

engagements, and one media breakfasts

by March 2012

67 ACHIEVED N/A

SALGA MP

Municipalities rewarded

for excellent performance

As per 10/11 Business Plan

One Municipal Excellence Awards

hosted by Sept 201168 ACHIEVED N/A

SALGA MP

2011/2012 Annual Performance Plan

implemented and 2012/2013

Performance Plan developed

As per 2011/2012 Annual Performance Plan and 2010/2011

fi nal performance

One quarterly review session of 2011 /

2012 APP by March 2012

69 ACHIEVED N/A

SALGA NCSubmission of

monthly progress reports on levies

2009/10 collection 100% collection of membership levies

by March 201270 NOT ACHIEVED

Municipalities unable to pay

levies






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NC

Coordinate the hosting and

functionality of all Governance

Structures in line with the constitution

of SALGA


Coordinate provincial governance

structures as per SALGA calendar by

March 2012Two Working Group

Meetings One Provincial

Conference Four PEC Meetings

Two Strategic Planning Session

71 ACHIEVED N/A

SALGA NC

Engage identifi ed stakeholders towards

supporting SALGA programmes

New indicator

One stakeholder engagement meeting to leverage resources

by March 2012

72 ACHIEVED N/A

SALGA NW

Implementation of SALGA Governance Framework and Ad

hoc priorities

Baseline as per year ending 2010/11

Conduct one Provincial

Conference, six PEC Meetings, 2 x 6 Working Group

Meetings (two per Working Group) by March

2012

73 ACHIEVED N/A

SALGA WC

Convene SALGA provincial

governance structures as per

SALGA Year Planner

As per the 2010/2011 fi nal

performance

Convene the following SALGA

Governance Structures as per the SALGA year calendar

by March 2012Six PEC Meetings

2x6 Working Group Meetings

One Provincial Conference

74 ACHIEVED N/A

SALGA WCDevelopment of the Provincial

Performance Plan

As per 2011/2012 Business Plan and

the Performance Scorecards in terms of the New Reviewed Performance Policy

Development of the Provincial Annual

Performance Plan by January 2012.

75 ACHIEVED N/A

SALGA WCCoordinate the provincial team

buildingNew Indicator

One Teambuilding Session conducted

by March 2012 for all staff members

76 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

F & CS

Development and submission of

Proposals regarding the cost of living adjustment for

SALGA employees.

2010/ 11 Report.

Report on the proposed salary

increases submitted to the Remuneration Panel and approved

by the NEC by September 2011.

77 ACHIEVED N/A

F & CS

Development and submission of

Proposals regarding the introduction of new employment

conditions (service benefi ts) within

SALGA.

New Indicator

Report with implementation

plan on introduction of employment

conditions (service benefi ts) submitted

and approved by the Remuneration Panel by December 2011.

78 ACHIEVEDN/A

F & CS

To enhance HR compliance to

relevant legislations, regulations and

internal HR policies.

2010/ 11 Training Report.

Workplace Skills Plan for SALGA compiled and submitted to the LG-Seta as required

by March 2012

79 ACHIEVED N/A

F & CS




Approved EE Plan for SALGA.

SALGA Employment Equity Plan

implemented and Reports submitted

per EE Act by March 2012

80 ACHIEVED N/A

F & CS

Occupational Health and Safety Committee fully functional within SALGA by March

2012

New Indicator

Health and Safety Committee meetings

coordinated and compliance report

developed by March 2012

81 ACHIEVED N/A

F & CS




Approved 2011 HR Policies

Implementation and monitoring of

adherence to SALGA HR Policies by March 2012

82 ACHIEVED N/A

F & CS

Development and Implementation

of Employee Recognition

Programme within SALGA.

New IndicatorEmployee Awards implemented by December 2011

83 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

F & CS

Structured Wellness Programme

developed and implemented.

Approved Policy.

Wellness Calendar developed and

submitted to CEO by September 2011.

84 ACHIEVED N/A

F & CSMonitoring and

maintenance of the EDRMS

New Indicator

Revise and implement a

Electronic Document and Record

Management System (EDRMS) (Archive)

policy by March 2012

85 NOT ACHIEVED

Implementation pending due to postponement

of national consultation process. To ensure cost effectives National

consultation for this and other policies will be scheduled for the 2012/13

fi nancial year.

F & CSEnsure effi cient ICT solutions for SALGA

end usersNew Indicator

To maintain a desktop support

response turn-around time of two hours by

March 2012

86 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

F & CSImplementation of the SALGA funding

modelRevised levy formula

Proposals on the funding model presented to

Executive Authority (CoGTA) by

September 2011

87 ACHIEVED N/A

F & CS

Effective implementation of phase 2 of ERP

system

New Indicator

Implementation of phase 2 of the

Enterprise Resource Planning (ERP)

system by March 2012

88 ACHIEVED N/A

F & CS

Develop and implement year planner for SCM

committees

SCM Policy

Develop and implement year

planner for Supply Chain Management

(SCM) committees by 31 October 2011

89 ACHIEVED N/A

F & CSImplementation of

VIP/ESSNew Indicator

Implementation of VIP / ESS system by

March 201290 NOT ACHIEVED

Time constraints -

implementation of SAP

Procurement module took longer than anticipated

thereby leaving insuffi cient time to implement the VIP/ESS project although already

developed.

F & CSDisposal of Investment Properties

New Indicator

Disposal of Northern Cape and Gauteng

properties by March 2012

91 NOT ACHIEVED

Properties could not be disposed during the year under review.

F & CS

Improve budget control to achieve

a surplus of at least R5-million

New IndicatorR5-million surplus at

31 March 201292 ACHIEVED N/A

F & CS Integrated KZN offi ce New Indicator Integrated KZN offi ce by the 30 November

201193 NOT ACHIEVED

The Due Diligence was

concluded during May

2012.





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA FSCompliance with the Business planning

and policy

2010/11 Free State Performance Plan

Development of 2012/13

Performance Plan by December 2011

94 ACHIEVED N/A

SALGA MP

2011/2012 Annual Performance Plan

implemented and 2012/2013

Performance Plan developed

As per 2011/2012 Annual Performance Plan and 2010/2011

fi nal performance

Annual Performance Plan for 2012/2013 approved by March

2012

95 ACHIEVED N/A

SALGA NWCollection of

Membership LeviesBaseline as per year

ending 2010/12

90% Collection of all Membership Levies

by March 201296 ACHIEVED N/A

OCEOEstablished SALGA

Fraud HotlineApproved Fraud Prevention Plan

Roll out of the Fraud Prevention

Awareness campaign by March 2012

97 ACHIEVED N/A

SALGA NCFacilitation of three

wellness programmesNew Indicator

Coordinate two employee wellness programmes and

one team building by March 2012

98 ACHIEVED N/A

SALGA MP

Functional Governance

structures in line with SALGA’s Constitution

Four PEC Meetings, four meetings per

working group, one PEC Lekgotla

One PC, two Ordinary PEC meetings, two

meetings per working group coordinated by

March 2012

99 NOT ACHIEVED

The MIS working group (SALGA

MP) was scheduled for March 2012. Unfortunately,

the Programme Manager

resigned during February 2012, leaving the unit with no capacity



PRIORITY OBJECTIVE O1:COUNCILLOR SUPPORT - HIGH CALIBER, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIS

Supporting MID, in partnership

with sector departments, in

the implementation of the sector based

Cllr induction programmes

New Indicator

Conduct induction sessions in all

provinces for MMCs responsible for water, waste management,

and human settlement by March

2012

100 ACHIEVED N/A

MID

Newly elected councillors inducted after the 2011 Local

Government elections

2007 Councillor Induction

Programme/manual

Co-ordinate the induction of 8000 councillors in all provinces by 31 August 2011.

101 ACHIEVED N/A

SALGA EC

Develop and maintain database and communicate

attainment Employment Equity

targets in senior management of Eastern Cape Municipalities.

New Indicator

Updated data base and results communicated to

EC Municipalities by March 2012

102 NOT ACHIEVEDInadequate

response from municipalities





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA EC

Provide support to municipal

offi cials towards ensuring qualitative

compliance with Performance

Management System.

New Indicator

Provide PMS training to offi cials in fi ve

municipalities on the implementation of

PMS by March 2012

103 ACHIEVED N/A

SALGA GP

Coordinate consultative forums for ward committees and municipalities

As per 2010/11 status report

Ten consultative forums convened

with ward committees and municipalities by

March 2012

104 ACHIEVED N/A

SALGA LP

Councillors well informed about their councillor remuneration,

benefi ts attached to offi ce bearers and

councillor tax support matters.

As per 2010/11 business plan

Conduct fi ve district municipal

engagements and aftercare on compliance with Offi ce Bearers Handbook and

councillor welfare matters by February

2012


SALGA LP

New councillors in the Province

engaged on clarifi cation of roles and responsibilities and the political and

admin interface

New Indicator

Capacitate 200 councillors on the roles and

responsibilities by October 2011.

106 ACHIEVED

SALGA LP

Capacitate municipal offi cials and Councillors by strengthening their skills and human resources base.

Skills Audit Report/ Competency Dictionary

Enrol 200 municipal councillors and

offi cials on ELMDP and MFMP by March

2012

107 NOT ACHIEVED

Request was sent to all

municipalities but only 160 councillors and offi cials

registered for the programmes

SALGA MP

Municipalities with established and functional committees of

council and ward Committees.

Three Municipalities assisted in

having functional committees of

council

Four Municipalities supported in

establishing and in the functionality of committees of council by March

2012.

108 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MP

Municipalities advised on effective Political oversight

on Good Corporate Governance

New Indicator

21 Municipalities advised on good

corporate governance by March 2012

109 ACHIEVED N/A

SALGA NW

Municipalities capacitated on understanding

their legislative and regulatory powers

and functions

New Indicator

One Provincial Workshop conducted

on Powers and Functions of TROIKA

+ 1 by December 2011

110 ACHIEVED N/A

SALGA NW

Advice provided to municipalities on councillor support

programmes

As per 2010/11 business plan.

Conduct Provincial workshop on

councillor support programme for all Municipalities by December 2011

111 ACHIVED N/A

SALGA WCInduction of new PEC

membersNew Indicator

Induction workshop held with new PEC members by March

2012

112 ACHIEVED N/A

SALGA MP

Municipalities with established and functional committees of

council and ward Committees.

Six Municipalities supported in having

functional ward committees.

Four Municipalities supported in

establishing and functionality of

ward committees by March 2012.

113 ACHIEVED N/A

SALGA MP

Municipalities understanding their legislated roles and

responsibilities

21 Municipalities supported in

understanding their roles and responsibilities

Political Offi ce Bearers and

Administrative leadership in 21 Municipalities supported in

understanding their roles and

responsibilities by March 2012.

114 ACHIVED N/A

SALGA NC

Councillors capacitated on

the understanding of their roles and responsibilities.

New Indicator

Five municipalities assisted in

establishment of Ward Committees by

March 2012




PRIORITY OBJECTIVE O2:SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES,

THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIS

Approved position paper advocating for the revision of

Emergency Housing Policy

New Indicator

Develop a position paper advocating for the revision of

Emergency Housing Policy by March

2012

116 ACHIEVED N/A

MIS

Facilitate accreditation of 12

priority municipalities through participation

in the capacity and compliance

assessment panel.

Complete assessment of all metropolitan municipalities

Approved assessment report

for all the 12 priority municipalities by

March 2012

117 ACHIEVED N/A

MIS

Assessment of the implementation of

appropriate long term institutional delivery

mechanisms for sustainable service

delivery

New Indicator

Report outlining the service delivery

institutional arrangements

in Water Service Authorities by March

2012

118 ACHIEVED N/A

MIS

Support and assistance to any of the 13 Restructuring

Zones (RZ) municipalities

Deliverables achievedImplement VROM

programme by March 2012

119 ACHIEVED N/A

MIS

Exchange and dissemination of information and

good practices to the participating Logo

South municipalities

AS per 2010/11 APP

Implementation of the approved Logo

South programme by March 2012

120 ACHIEVED N/A

MIS

Assessment of local government

organisational capacity and the

extent to which the fi scal framework

makes provision for the environmental

function

New Indicator

Assessment report outlining municipalities’

capacity on environmental focus

areas by January 2012

121 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIS

Support Clean and Green Programme

municipalities to review their institutional

arrangements for waste management services and share lessons with other

municipalities

New Indicator

Submit a motivation to Indalo Yethu and DEA to support the 10 municipalities to undertake section

78 reviews for waste management by December 2011


MIS

Concept and plan for a national awareness campaign on waste

management

New Indicator

Partner with DEA in developing a

concept and plan for a national awareness campaign on waste

management by March 2012

123 ACHIEVED N/A

MIS

Revised guideline for the appointment of Waste Management

Offi cers (WMOs)

New Indicator

Revised guideline for the appointment of Waste Management

Offi cers (WMO) approved by March

2012.

124 ACHIEVED N/A

MIS

Assessment of implementation

of waste buyback centers and transfer

stations and development of a

best practice guide

New indicator

Initiate the assessment of

implementation of waste buy back

centres by March 2012

125 ACHIEVED N/A

MIS

Advice to municipalities on regularisation of

waste disposal sites

Report on number of municipalities

applied for landfi ll permitting

Assist municipalities to apply for

regularisation of 25 irregular waste disposal sites by

March 2012

126 ACHIEVED N/A

MIS

Develop a National water services benchmarking

report on the basis of performance improvement/

modular and tier approach

Benchmarking indicators

25 Water Service Authorities

participate in terms of the benchmarking indicators by March

2012.

127 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIS

Facilitate support and advice through

participation of municipalities in the SALGA concluded

partnerships towards achieving the blue

and green drop certifi cation.

Blue and green drop reports from DWA

Train Water Services Managers in the

25 WSAs towards achieving the blue

and green drop certifi cation by March 2012.

128 ACHIEVED N/A

MIS

Support and advise on the development

of appropriate tariff determination

methodologies

Tariff guideline

Support two Water Service Authorities to develop and approve

water services pricing policy and

procedures by March 2012.

129 NOT ACHIEVED

Delays were experienced in

the appointment of the service

provider

MIS

Defi ne appropriate institutional

arrangements for bulk water and

sanitation delivery

New indicator

Develop discussion document on bulk potable water and

sanitation gaps and roles and

responsibilities to accelerate service

delivery March 2012

130 ACHIEVED N/A

MIS

To facilitate sharing of knowledge in respect

of good practices on water services

management

Documented good practices

Document and share two best practices on the delivery of water

and sanitation by March 2012.

131 ACHIEVED N/A

MISFacilitate

consolidated municipal comments

SALGA Concept Paper on the

development of a national policy

framework

National Local Government

comments in the development of the Sanitation Policy by

March 2012.

132 ACHIEVED N/A

MIS

Development of Energy Baselines for two targeted municipalities

MoU for implementation of programme

signed with KSD municipality

Draft State of Energy Reports for two pilot

municipalities by March 2012







NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIS

Metropolitan municipalities

assisted in planning and

implementation of the urban settlement development grant

New Indicator

Participate in the National Planning

Steering Committee to support eight

metropolitan municipalities

in planning and implementation of

the urban settlement development grant by March 2012.

134 ACHIEVED N/A

SALGA EC

Provide advise to Municipalities on infrastructure and

service delivery

New Indicator

Produced a report on the status of service delivery

arrangements in EC municipalities by

March 2012

135 ACHIEVED N/A

SALGA FS

Support municipalities with the implementation of the Free Basic Services Policy

2010/11 Business Plan

Two (2) reports on Municipal Infrastructure

Policies developed and submitted by

March 2012

136 ACHIEVED N/A

SALGA GPFacilitate knowledge sharing platform on attainment of MDGs

As per 2010/11 report

One workshop convened on MDGs


SALGA GP

Facilitate municipal comments and produce timely reports on bulk

Municipal services.


One session on bulk municipal services

conducted with municipalities by

March 2012

138 ACHIEVED N/A

SALGA GP

Monitor and promote the implementation

of Free Basic Services in the

province.


Analysis on the implementation of FBS of two

municipalities by 31 March 2012.

139 ACHIEVED N/A

SALGA LP

Facilitate the roll out of the Water for Growth and Development

Framework on LG issues after Cabinet

approval

Water for Growth and Development

Framework

Conduct a provincial workshop on water

for growth and development by February 2012

140 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA LPFacilitate consultation

through SALGA structures

Proposal document on Municipal Traffi c Revenue Collection

Develop a proposal on Municipal Traffi c Revenue Collection

in Limpopo Province by December 2011

141 ACHIEVED N/A

SALGA MP

Municipalities assisted towards

the development of Water Conservation

Strategies

One Municipality assisted in 2010/11

One municipality developed Water

Conservation Strategies by March

2012

142 ACHIEVED N/A

SALGA MP

Municipalities distributing electricity

in their municipal area

New Indicator

Three municipalities with council

resolution on the application for the

granting of electricity distribution licenses

in their jurisdiction by March 2012

143 NOT ACHIEVED

Although SALGA MP assisted 3 municipalities to apply for electricity

distribution liscences, the Councils have

not passed resolutions by 31

March 2012

SALGA MP

Support Municipalities in

the delivery of basic services (water and

sanitation, electricity, waste management)

As per 2010/11 Baseline

Operations Management and

Service Maintenance strategies / plans

framework developed by March 2012


SALGA NC


the delivery of basic services (water and

sanitation, waste management)

As per 2010/11 Baseline

Coordinate and facilitate fi ve District workshops on basic services (water and

sanitation, waste management) by

March 2012

145 ACHIEVED N/A

SALGA NW



and Demand Management

Strategies


Conduct Blue and Green drop

compliance monitoring,

evaluation and interventions by

March 2012

146 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NW

23 municipalities supported towards

energy effi ciency and renewable energy

sources.

All North West municipalities

signed accession agreements and workshopped on the deal issues.

Energy effi ciency and renewable energy

sources Capacitation conducted

Conduct Energy effi ciency and

renewable energy sources provincial

workshop by March 2012.

147 ACHIEVED N/A

SALGA NW

Municipalities supported on road classifi cation and

operation and maintenance

Twenty four municipalities supported on

road classifi cation and operation and

maintenance

Provide support to all four district

municipalities in the rollout of

integrated transport management plans by November 2011


SALGA NW

Municipalities supported on road

classifi cation, operation and maintenance

Twenty four municipalities supported on

road classifi cation and operation and

maintenance

Conduct a provincial workshop on Roads

Maintenance for Councillors and

Offi cials responsible for Roads by March

2012

149 ACHIEVED N/A

SALGA NW

Three identifi ed municipalities

supported in the housing accreditation

process

Accreditation process for the three

initially identifi ed municipalities in progress and the rollout of rental housing stock in

progress

Support the three identifi ed municipalities to comply with the

housing accreditation process by March

2012

150 ACHIEVED N/A

SALGA NW

All municipalities supported and capacitated on

Free Basic Refuse removal, integrated waste management plans and NEMA

regulation

All municipalities supported and capacitated on

Free Basic Refuse removal, integrated waste management plans and NEMA

regulation

Conduct one provincial workshop

on Free Basic Refuse removal and integrated

waste management planning by March

2012

151 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA WC

Facilitate project management support

on the Integrated Water Resources

Management Project in the

Breede Overberg Management

Catchment area by March 2012

New indicator

Project Management support provided to facilitate fi nalization

of the Integrated Water Resources

Management Project in the

Breede Overberg Management

Catchment area by March 2012.

152 ACHIEVED N/A

SALGA NCAwareness created on Climate change

New Indicator

Conduct two climate change adaptation

awareness/workshop by March 2012

153 ACHIEVED N/A

SALGA EC

Support Clean and Green Programme

municipalities to review their institutional

arrangements for waste management

services

New Indicator

Municipalities that are participants

of the Indalo Yethu Clean and

Green programme supported to initiate reviews of service

delivery institutional arrangements by

March 2012


SALGA EC

Report on status of level 2 accreditation

for metropolitan municipalities

2010/11 APP

Report on the implementation of the accreditation decision in the

Metros by March 2012

155 ACHIEVED N/A

SALGA EC

Facilitated participation of

municipalities in assessment of organisational capacity and

required technical skills in respect of performance

on environmental functions

New Indicator

50% of municipalities in the province

participated in the assessment and

report reviewed and presented at WG by

March 2012


SALGA ECProvincial Transport planning workshops

for offi cialsNew Indicator

ITP workshop conducted by March

2012157 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA EC

Advice to municipalities on regularisation of

wastefi ll sites

New Indicator

Updated report of municipalities which have not applied for the

regularisation of their wastefi ll sites sent to mayors of affected municipalities by

March 2012

158 ACHIEVED N/A

SALGA EC

Supported KSD municipality to

develop an energy use baseline report

New IndicatorDraft State of energy reports for KSD by

March 2012159 NOT ACHIEVED Lack of capacity

SALGA EC

All municipalities understanding the role and selection criteria of a WMO

New Indicator

Held a workshop of MMC on the qualities and role of WMO by

March 2012

160 ACHIEVED N/A

SALGA NC

Municipality supported to develop

climate change response.

New Indicator

Develop climate change

response plan for municipalities by

March 2012

161 ACHIEVED N/A

SALGA NW



and Demand Management

Strategies


Provincial roll out on Sanitation Strategy by

June 2011162 ACHIEVED N/A

SALGA WCCapacity building/networking events

New Indicator

One subsector (water services) induction workshop convened and conducted for

councillors by March 2012

163 ACHIEVED N/A


New Indicator

One provincial workshop conducted

for Municipalities on National Land Transport Act by

March 2012

164 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE


New Indicator

One provincial workshop conducted for Municipalities on Waste Management

by March 2012

165 ACHIEVED N/A


New Indicator

Workshop hosted for Municipalities on the accreditation process

by March 2012

166 ACHIEVED N/A


New Indicator

One Municipality supported on

developing a water safety plan by March

2012

167 ACHIEVED N/A


New Indicator

Two Municipalities supported towards the development of Energy Effi ciency

Plans by March 2012

168 ACHIEVED N/A


New Indicator

In collaboration with stakeholders

convene fi ve District level mini-summits on Climate Change by December 2011

169 ACHIEVED N/A



PRIORITY OBJECTIVE O3:SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

CD

Improved capacity of municipalities to maintain sport and recreation infrastructure

National Reference Group established in

November 2010

Local government Funding Model for

sport and recreation infrastructure review processes facilitated

by March 2012

170 ACHIEVED N/A

CD

Improved capacity of municipalities to develop and

implement social cohesion programmes

Arts, Culture, Heritage and

Libraries for Local Government

Reference Group established in

November 2010

Local government role in library services reviewed and funding

model processes facilitated by March

2012

171 ACHIEVED N/A

CD






November 2010

One (1) learning event on municipal best practices in

mainstreaming arts, culture and library services held by

March 2012

172 ACHIEVED N/A

CD






November 2010

One (1) seminar on cemeteries and

culture held by March 2012

173 ACHIEVED N/A

CD

Improved capacity of municipalities to

reduce and respond to disasters

Assessment of the status of disaster risk management

in local government conducted in 2010

Disaster risk management training for 100 councillors/

offi cials facilitated by March 2012

174 ACHIEVED N/A

CD


implement public safety programmes

Assessment of the status of disaster risk management

in local government conducted in 2011

Local Government Guidelines on the Establishment of

Community Safety Forums developed by

March 2012

175 ACHIEVED N/A

CD

Municipalities capacitated

to implement and monitor

the Millennium Development Goals

Human Development Framework developed;

Guidelines for the Devolution of

Environmental Health Services developed

One (1) Learning event on best

practices in human development conducted for metropolitan

municipalities by October 2011

176 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

CD







Nine (9) Provincial Workshops on the

Human Development Framework held by

March 2012


CD







Three (3) Roundtable discussions with civil society and relevant

academic institutions on learning and best

practice sharing on topical human and community

development issues held by March 2012

178 ACHIEVED N/A

CD

The implementation of the SALGA Gender

Mainstreaming Programme

SALGA Women’s Commission launched in

November 2010; Gender Links and GEMLOG Programmes

facilitated

Resuscitation of the SALGA Women’s Commission by December 2011

179 ACHIEVED N/A

CD





facilitated

Workplan to guide the functioning of

the SALGA Women’s Commission developed by January 2012

180 ACHIEVED N/A

CD





facilitated

One (1) induction and capacity

building programme coordinated for the

NWG by March 2012

181 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

CD





facilitated

Post-election audit on gender representation conducted by February 2012

182 ACHIEVED N/A

CD

Improved local government access

to information a and knowledge

on HIV and AIDS Mainstreaming

Guideline for the establishment

and functioning of municipal AIDS

Councils

7.1. Capacity building training on HIV & AIDS conducted in

municipalities in two provinces by March

2012

183 ACHIEVED N/A

CD

Improved local government access

to information a and knowledge

on HIV and AIDS Mainstreaming

Guideline for the establishment

and functioning of municipal AIDS

Councils

Framework for the compilation

of Municipal HIV and AIDS Service

Directory developed by March 2012

184 ACHIEVED N/A

CD

Implementation of the Disability Framework for

Local Government facilitated and

monitored

M and E Plan for Disability developed and implemented

Post-election audit of disability representation

conducted by March 2012

185 ACHIEVED N/A

SALGA ECEstablish District

Aids Councils in two Districts

New Indicator

District Aids Councils established in two

Districts in the current fi nancial year in conjunction with

other stakeholders by March 2012

186 ACHIEVED N/A

SALGA EC

Conduct a status quo analysis of disaster management in the

province

New indicator

Assessment report on disaster

management in six districts and the Metro by March

2012

187 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA EC

Support municipalities in mainstreaming

gender, PwD, youth

Gender mainstreaming

workshop in BCM in 2010/11

Conduct mainstreaming workshops for

gender, PwD and youth in three

districts by March 2012.

188 ACHIEVED N/A

SALGA EC

Conduct localising of MDGs workshops in fi ve districts and one

metro

Held one workshop in BCM in 2010/11

Conduct localising of MDGs workshops in fi ve districts and

one metro by March 2012

189 ACHIEVED N/A

SALGA EC

Facilitate a provincial reference group for

arts, culture and heritage

New indicator

Facilitate provincial reference group

meetings by March 2012

190 ACHIEVED N/A

SALGA EC

Hold Provincial SALGA Municipal

games by September 2011

Held Provincial SALGA games in

2010/11

Provincial SALGA games for all


191 ACHIEVED N/A

SALGA ECSALGA EC Women’s summit will be held

Had one provincial summit in August

2010/11

SALGA EC Women’s summit in March


SALGA FS

Support and assist municipalities to

comply with human development issues.

New indicator

Two (2) provincial workshops on

human development coordinated and

convened by March 2012.

193 ACHIEVED N/A

SALGA FS

Support and assist municipalities to

comply with social development issues

Four provincial workshops

Two (2) provincial workshops on

transversal issues coordinated and

convened by March 2012.

194 ACHIEVED N/A

SALGA GP

Lobby support and advice municipalities on identifi ed Social

cohesion issues


Conduct two workshops on Social Cohesion by March

2012.

195 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA GPCoordination of

provincial women’s commissions


Coordinate two women’s commission

sessions by March 2012.

196 ACHIEVED N/A

SALGA GP

Advice given to municipalities on

mainstreaming cross-cutting issues

New indicator

Conduct one workshop on HIV/Aids handbook by

March 2012.

197 ACHIEVED N/A

SALGA GPAdvice given to

municipalities on disability initiatives


One workshop coordinated on

disability initiatives by March 2012.

198 ACHIEVED N/A

SALGA GPCoordination of

OR Tambo Inter-municipal games

2010 Inter-municipal games held in West

rand District

Inter-municipal games held by March 2012

199 ACHIEVED N/A

SALGA GPCoordination of provincial Men’s

indaba

Men’s indaba held in November 2010

Men’s Indaba held by March 2012.

200 ACHIEVED N/A

SALGA LP

Support municipalities

on HIV and Aids mainstreaming and

Improving knowledge management through the hosting of 1 HIV/AIDS learning event,

Roll out on HIV and Aids Book workshop

held

One learning event on HIV and AIDS

convened by 15 Dec 2011

201 ACHIEVED N/A

SALGA LP

Support municipalities

on HIV and Aids mainstreaming and

Improving knowledge management through

the hosting of one HIV/AIDS learning

event

Roll out on HIV and Aids Book workshop

held

Support three municipalities to

revive AIDS/ council by March 2012.

202 ACHIEVED N/A

SALGA LPWiLGS to be

convened in the province

2010 WiLGs Report

Host one Provincial Women’s Months Celebrations by

September 2011

203 ACHIEVED N/A

SALGA LP

Sharing/learning event on youth rights

per province by October 2011

Youth elections report, 2010

Children’s camp

One event for youth and one for children convened by March

2012

204 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MP

Municipalities coordinating and mainstreaming

community development issues

Gender Policy Framework, Disability

Framework,

1x Guidelines on Mainstreaming of Transversal issues

developed and distributed to all 21 Municipalities by

March 2012.

205 ACHIEVED N/A

SALGA MP

Municipalities with a structured and coordinated

relationship with all Non- Governmental

Organisations dealing with Community

Development issues.

New Indicator

Database of all NGOs dealing

with Community Development issues

developed by September 2011

206 ACHIEVED N/A

SALGA MPMunicipalities with policies on youth,

gender and disability.

As per the 2010/11 fi nal performance

One district and three local municipalities

assisted on the development of

Policies for the youth, gender, and disability

by March 2012.

207 ACHIEVED N/A

SALGA NC

Capacitated newly elected community

development working group members

New Target

One workshop for newly elected

community development working

group members convened by

December 2011.

208 ACHIEVED N/A

SALGA NC

Convene the Women in Local Government

Summit (WILGS) 2011

Report on the 2010 WIPLGS

Convene the WILGS by December 2011

209 ACHIEVED N/A

SALGA NC

Convene a workshop on the developed

Youth Development Strategy

New Target

One provincial workshop held on the SALGA youth

development strategy by December 2011

210 ACHIEVED N/A

SALGA NCRoll out the Local

Government Disability Framework

Audit Report on disability status quo

in municipalities

One workshop held to capacitate municipalities on

Disability Framework by February 2012

211 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NCTo promote social cohesion between

districts

Annual Local Government Games

One municipal sports event targeting fi ve

district municipalities by December 2011

212 ACHIEVED N/A

SALGA NWGuide municipalities in addressing Human Development issues

New Indicator

SALGA Human Development

Strategy disseminated to all municipalities

for inputs and consolidated by

March 2012

213 ACHIEVED N/A

SALGA NW

Municipalities guided on issues of provincialisation of

Primary Health Care Services

Initial assessment on PHC conducted in

2009

Convene one provincial meeting between District

Municipalities and Dept. of Health to

facilitate the signing of the SLA by January 2012)

214 ACHIEVED N/A

SALGA NWMunicipalities guided to improve delivering

on Fire Services.New Indicator

Conduct Assessment of provision of Fire

and Emergency Services in 12

Municipalities by September 2011

215 ACHIEVED N/A

SALGA NW

Capacitate municipalities on mainstreaming of transversal issues

11 municipalities with adopted Gender

Policy Framework

Conduct two Provincial workshops

on transversal issues to capacitate

Councillors and Municipal Offi cials

responsible for transversal issues by

December 2011

216 ACHIEVED N/A

SALGA NW

Platform created for women in Local

Government to share experience,

challenges, good practice

and encourage establishment of

women structures

Provincial Women in Local Government

Summit held in 2010

Host one Provincial Women In Local

Government Summit by September / October 2011.

217 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NWMayors capacitated

to take a lead on HIV and AIDS issues.

New Indicator

Convene one consultative

workshop to guide and support mayors to participate in HIV

& AIDS issues by December 2011

218 ACHIEVED N/A

SALGA NW

Municipalities assessed on

compliance with regard to user-

friendly municipal offi ce buildings for

people with disability.

Implementation Guideline for

Disability Framework for Local Government

2009-2014

Conduct Assessment of disability access in 23 Municipal Offi ces by December 2011.

219 ACHIEVED N/A

SALGA NW

Equity for people with disabilities receiving priority at municipal

level.

New Indicator

Conduct an audit in all Municipalities on

representation of women and people with disabilities by December 2011

220 ACHIEVED N/A

SALGA WCSupport on integrated approach on gender

awareness.


performance

Conduct a workshop for one municipality

on Gender awareness by December 2011.

221 ACHIEVED N/A

SALGA WCSupport on integrated

approach on youth development


performance

Conduct a workshop for one

municipality on youth development by February 2012.

222 ACHIEVED N/A

SALGA WCSupport on integrated

approach on HIV/AIDS


performance


on HIV/AIDS by September 2011

223 ACHIEVED N/A

SALGA WCSupport on integrated approach on disaster

management


performance


on disaster management by November 2011

224 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

CD

Improved local government access to information and

knowledge on Youth Development

SALGA Youth Development

Strategy developed

One Municipal Consultative

workshop on youth Economic

Development and Entrepreneurship held by December

2011

225 ACHIEVED N/A

CD

SALGA Approach to Children’s issues and Early Childhood Development (ECD) in Local Government

developed

New Indicator

One Roundtable Consultative meeting

on Municipal responses to

mainstreaming children issues coordinated by March 2012

226 ACHIEVED N/A

SALGA EC

Establish Disability Reference Group for Province by March

2012

New Indicator

Establish Disability Reference Group for Province by March

2012

227 ACHIEVED N/A

SALGA FS

Support and assistance provided to municipalities in the implementation of MDGs within the

province

Two provincial workshops

Five (5) provincial/district workshops

on Millennium Development Goals (MDGs) coordinated

and convened by March 2012.

228 ACHIEVED N/A

SALGA MP

Municipalities coordinating and mainstreaming

community development issues

Gender Policy Framework, Disability

Framework,

Provincial Coordinating Forum

established by March 2012

229 ACHIEVED N/A



PRIORITY OBJECTIVE O4:ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

ED&P

Promote and improve the effectiveness of planning and implementation

of Comprehensive Rural Development Programme (CRDP)

projects

Report on the fi ndings of the Rapid survey on CRDP pilot

projects

Position paper on role of local

government in rural development and

agricultural support by March 2012.

230 ACHIEVED N/A

ED&P

Inputs provided on the development

of Land Use Management (LUMS)

Bill.

New Indicator

The SALGA comments on LUMS

Bill developed and submitted to

DRD&LR as per the Gazette Notice by

March 2012.

231 ACHIEVED N/A

ED&P

Promote and improve effective

SDF formulation and implementation

Draft guidelines on SDF formulation

Facilitate support for 16 Municipalities on the development of

SDFs by March 2012

232 ACHIEVED N/A

ED&P

Support Municipalities

in aligning IDPs with:- Budget, other internal municipal departments and

sector departments

SALGA’s position paper on the IDP

process

Assess the alignment of IDPs in six

Municipalities by March 2012

233 ACHIEVED N/A

ED&P

Input on the National Development

Planning Initiatives on Local Government

New indicator

The SALGA input into the National Planning

Commission’s Initiatives on Local

Government by March 2012

234 ACHIEVED N/A

ED&P

Aligned Generic Policy, Model By-

laws and supporting implementation guidelines on

Informal Trading.

SALGA national informal trading

summit

National policy guidelines and

related by-laws on informal trading management

with supporting implementation

guidelines disseminated by end

of March 2012.

235 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

ED&P

Support the networking of municipal LED practitioners,

facilitate the sharing good LED practice,

and identify and document successful

LED programmes implemented in Municipalities.

LED Network portal

Increase of 10% in SA LED Network membership and

hosting of networking and information

sharing initiatives (annual roundtables, two newsletters) by

March 2012

236 ACHIEVED N/A

ED&P

Support the networking of municipal LED practitioners,

facilitate the sharing good LED practice,

and identify and document successful

LED programmes implemented in Municipalities.

LED Network portal

Showcasing all best practices through six

LED case studies, documented by end

of March 2012.

237 ACHIEVED N/A

ED&P

Implement Commonwealth Local Government Forum (CLGF) partnership

programme

Five (5) LED Partnerships

Host GPS Dissemination workshop with

LED and project stakeholders by

March 2012

238 ACHIEVED N/A

ED&P

Implement Commonwealth Local Government Forum (CLGF) partnership

programme

Five (5) LED Partnerships

Produce close-out report (including four project Good Practice Project Case Studies)

by March 2012.

239 ACHIEVED N/A

ED&P

Provide support and guidance to improve

municipal LED Practice.

LEDA Guidelines

Implement Phase 2 of the LED Maturity

Assessment Training including SALGA

assessments of two Municipalities in

participating SALGA provinces by March

2012.

240 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

ED&P

Provide support and guidance to improve

municipal LED Practice.

LED Assessment tool

Policy developed for municipalities to align SCM Strategies

with the SMME LED Strategies

through strategic procurement

approaches by March 2012

241 ACHIEVED N/A

SALGA EC

Municipalities supported to drive economic growth

through programmes that will create employment opportunities.

2010/11 baseline

Host at least two LED Roundtables with an intention of coordinating

LED initiatives and information sharing within the Province

by March 2012

242 ACHIEVED N/A

SALGA EC



2010/11 baseline

Support seven municipalities

in aligning their LED strategies

with key strategic plans ( Industrial

Development Strategy, PGDP,

Rural Development Strategy) by March

2012

243 ACHIEVED N/A

SALGA EC



2010/11 baseline

Facilitate the development of

SDF’s aligned to the Provincial SDF in

fi ve Municipalities by March 2012

244 ACHIEVED N/A

SALGA EC


implementation of ICT

2010/11 baselineWorkshop on ICT for

Municipalities by March 2012

245 ACHIEVED N/A

SALGA EC



New Indicator

Seminar for municipalities on Land Use

Management and Spatial Planning by

March 2012

246 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA EC



New Indicator

Host an informal trade sector workshop for


247 ACHIEVED N/A

SALGA FS

Advise municipalities to participate and report on EPWP

projects

2010/11 Business Plan

Four quarterly reports on participation of municipalities on

the EPWP by March 2012

248 ACHIEVED N/A

SALGA FS

Encourage municipalities to enhance tourism marketing in their

localities

New Indicator

Municipalities advised to identify and market their

tourist attractions by March 2012

249 ACHIEVED N/A

SALGA GPImproved

functionality of LED forums.


Monitor and promote the functionality of two LED forums by

March 2012.

250 ACHIEVED N/A

SALGA GPAssessment of IDP

review processNew Indicator

Two Municipalities IDPs assessed by

March 2012251 ACHIEVED N/A

SALGA GPEstablishment of Spatial Planning

forumNew Indicator

Spatial Planning forum established by


SALGA LP

To document outputs and activities

including current Donor activities in the Province, e.g. CLGF and Best Practice

Vhembe and Mopani Participating in Good

Practice Scheme Project

Develop a minimum of three case studies

of municipal good LED practice to be shared provincially by December 2011

253 ACHIEVED N/A

SALGA LP

Promote usage of ICT in municipalities

through hosting District awareness

programmes

Provincial Workshop convened

Facilitate ICT engagements with fi ve municipalities. Blouberg, Tubatse,

Mogalakwena, Tzaneen, and

Makhado by March 2012

254 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MPMunicipalities

driving growth and employment.

New Indicator

One municipality supported

in reviewing LED strategies

refl ective of Sector implementation and M&E Plans by March

2012.

255 ACHIEVED N/A


driving growth and employment.

New Indicator

Three municipalities supported in developing

LED strategies refl ective of Sector

implementation and M&E Plans by March

2012.

256 ACHIEVED N/A

SALGA MPMunicipalities with

ICT Strategies.2010/11 Baseline

21 municipalities supported to develop ICT policy by March

2012.

257 ACHIEVED N/A

SALGA MP

Municipalities playing their role in implementing

the Comprehensive Rural Development

Programme

New Indicator

Seven identifi ed municipalities supported in

implementation of the CRDP by March

2012

258 ACHIEVED N/A

SALGA NC

Develop provincial IDP process plan

to monitor the implementation of

the IDPs

Provincial IDP Analysis and engagement

One provincial IDP process plan

development to assist the monitoring and implementation of

IDP by March 2012

259 ACHIEVED N/A

SALGA NC

Support municipalities with land-use

management and town planning

Needs Analysis Report

Land Use Management and

Town Planning intervention

implemented to support


260 ACHIEVED N/A

SALGA NW

Municipal compliance and adherence with EPWP reporting

New IndicatorConduct EPWP

working session by March 2012

261 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NW

Functional municipal LED units with the potential to grow local economies

New Indicator

Rolling-out phase II of LED Maturity

Assessment Tool by March 2012

262 ACHIEVED N/A

SALGA NW

Municipalities supported towards the development of proper land

use management strategies

2010/11 SDF/LUS desktop assessment

study

Conduct a provincial Spatial Planning

summit by March 2012

263 ACHIEVED N/A

SALGA NW

Municipalities supported towards the development of proper land

use management strategies

2010/11 SDF/LUS desktop assessment

study

Capacity building for councillors on Spatial Planning by March

2012

264 ACHIEVED N/A

SALGA NW

Municipalities assisted in the development of

broad band policy on communication

New Indicator

Workshop municipalities on the broad band policy on

communication by March 2012.

265 ACHIEVED N/A

SALGA NW

Municipalities supported in their role towards the

implementation of the Comprehensive Rural Development Programme (CRDP)

New Indicator

Lobby the department of rural development to roll-out the programme (CRDP) by March

2012

266 ACHIEVED N/A

SALGA WClearning events on LED and Planning

New Indicator

Coordinate three LED, Planning, and related events by

March 2012.

267 ACHIEVED N/A

SALGA WC

Representing SALGA on IGR Forum

Technical Task Team on LED Planning

related issues

Currently representing the interests of WC

municipalities in three provincial

policy processes - all these processes will

continue into the next fi nancial year

Represent SALGA on IGR Forum specifi c

to LED and Economic Planning issues and

develop position papers where

necessary by March 2012.

268 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA WC

Enhanced ability of WC municipalities

to engage with rural development issues

New Indicator

Develop provincial inputs into the

national position paper on rural

development by March 2012

269 ACHIEVED N/A

SALGA WC

P3, LED and MF tools institutionalised

in SALGA WC programme activities

Four municipalities currently

implementing P3 tools

Workshop with municipalities on

promoting P3 LED tools by March 2012.

270 ACHIEVED N/A

SALGA WC

Raised awareness amongst

municipalities of LED best practice

New indicator

Outcome report on three case studies

written up by March 2012.

271 ACHIEVED N/A

SALGA EC


implementation of ICT

2010/11 baseline

Facilitate the development of website for four


272 ACHIEVED N/A

ED&P

Implementation of support projects to municipalities on

various approaches to LED in P3 partnership

10 municipalities in three provinces

Report on 10 Municipalities

supported across three provinces by

31 March 2012

273 ACHIEVED N/A

SALGA FS

Encourage municipalities to enhance tourism marketing in their

localities

New Indicator

A provincial tourism database developed

and circulated to municipalities by

March 2012

274 NOT ACHIEVED

Poor municipal response to popoulate tourism

database.

SALGA FS

Assist municipalities to have increased awareness around informal trading

practices

Generic Policy Document on Informal trade

One (1) provincial Informal Trade

Summit hosted by March 2012

275 ACHIEVED N/A



PRIORITY OBJECTIVE O5:LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIDDevelop and

disseminate a LG HRM Strategy

Approved HR conference

resolutions Report on the current state of LG HR practices and impact it has on developmental LG system; PSC

assessment of the state of HRM in the Public Service; The report on the Skill

Audit.

Developed HRM strategy by March


MIDDevelop and

disseminate a LG HRM Strategy

Approved HR conference

resolutions. Report on the current state of LG HR practices and impact it has on developmental LG system; PSC

assessment of the state of HRM in the Public Service; The report on the Skill

Audit.

HRM Strategy disseminated to all SALGA Provincial Offi ces by March

2012


MIDDevelop and disseminate a

Wellness Framework

HIV and Aids handbook.

Developed Employee Wellness Framework

by 30 June 2011278 ACHIEVED N/A

MIDDevelop and disseminate a

Wellness Framework

HIV and Aids handbook.

Employee Wellness Framework

disseminated to all SALGA Provincial

Offi ces by 28 February 2012

279 ACHIEVED N/A

MID

Develop prioritised policies and monitor the implementation of existing policies.

Handbook and a circular.

Developed policies on retention, coaching and

mentoring, human capital management

and performance management by July

2011






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MID

Develop prioritised policies and monitor the implementation of existing policies.

Handbook and a circular.

Report on the implementation

of the 18 policies contained in the

HRM Handbook by March 2012


MIDDevelop a monitoring

and evaluation system

New Indicator

Developed a monitoring and

evaluation system framework by 31

March 2012

282 ACHIEVED N/A

MID

Represent municipalities

in conciliations, arbitrations and

litigation matters on matters of national

interest (needs driven).

New Indicator

Report/s the representation of SALGA to

municipalities on conciliations, arbitrations and litigation matters

submitted to the NEC by 31 March 2012

283 ACHIEVED N/A

MIDRoll-out a Mutual Gains Collective

Bargaining approach

Dispute Resolution Forum

Co-ordinate the training of all

members of the LLF by March 2012

284 ACHIEVED N/A

MIDResearch proposal on restructuring of

the SALGBCNew Indicators

Developed a SALGA Proposal on restructuring

the SALGBC by 01 December 2011

285 ACHIEVED N/A

MID

SALGA position/comments on the

proposed HR Norms and standards;

proposed systems; legislation; and policies for LG Administration

Integration

Draft report of Norms and Standards;

current legislation and the SALGA HR Conference

Resolutions

Developed SALGA position/comments on the proposed HR Norms and

standards; proposed systems; legislation;

and policies for LG Administration Integration by 30 November 2011






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MID

SALGA position/comments on the

proposed HR Norms and standards;

proposed systems; legislation; and policies for LG Administration

Integration

Draft report of Norms and Standards;

current legislation and the SALGA HR Conference

Resolutions

SALGA position and comments submitted to all relevant bodies by 31 March 2012


SALGA EC

Sustain good working relationship with organized labour thus enhancing opportunities

for mutual-gains approach.

New Baseline

Conclude agreements with

unions on Transfer of Primary Health ,

Environmental Health Staff and HIV/AIDS

by March 2012

288 ACHIEVED N/A

SALGA FS

Compliance and implementation

of Collective Agreements and

legislation.

New Indicator

Annual report on compliance and

implementation of collective agreements

by March 2012

289 ACHIEVED N/A

SALGA GP


labour-related matters


All municipalities monitored by March

2012290 NOT ACHIEVED

Lack of capacity

SALGA LP

Represent municipalities in the dispute resolution

forums of the SALGBC and other SALGBC structures.

Dispute Resolution Forum

Represent municipalities

in conciliations, arbitrations and

disciplinary cases as and when requested

by March 2012.

291 ACHIEVED N/A

SALGA LPStrike Management Plan implemented

and monitored

Strike Management Plan

Implement the revised Strike

Management Plan by February 2012

292 ACHIEVED N/A

SALGA MP

Municipalities implementing the

collective agreement on the disciplinary

code

One workshop conducted

21 municipalities supported in the implementation of the collective

agreement on the disciplinary code by

March 2012

293 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MPStrengthened

Employer employee relations


performance

All 21 municipalities represented in

SALGBC negotiations by March 2012

294 ACHIEVED N/A

SALGA NC

Presiding Offi cers and Prosecutors capacitated on Labour Related

issues

New Indicator

Training held to capacitate

Presiding Offi cers and Prosecutors

on Labour Related issues by March

2012

295 ACHIEVED N/A

SALGA NC

Strengthened Employer employee

relations through Local Labour Forum

Local Labour Forums

25 municipalities with fully functional Local Labour Forum

by March 2012

296 ACHIEVED N/A

SALGA NC

Municipalities represented in

dispute resolution and discipline management


performance

Municipalities represented in conciliations,

arbitrations and disciplinary hearing

on request by March 2012.

297 ACHIEVED N/A

SALGA NW

Strengthen Employer employee relations by monitoring the

functionality of Local Labour Forum.

2010/11 LLF training outcomes

10 municipalities monitored on the

functionality of Local Labour Forums by

March 2012

298 ACHIEVED N/A

SALGA NWRepresent & advise

municipalities on HR & LR issues.

As per 2010/11 Business plan

Municipalities represented on

HR & LR issues as per request on an ongoing basis by

March 2012.

299 ACHIEVED N/A

SALGA WC

Represent Municipalities at labour related

forums, i.e. SALGBC, LGSETA and other

relevant HR, IR and Capacity Building

Structures.


performance

Report quarterly on municipalities represented on

labour related forums by March 2012.

300 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA WC

Represent and assist Municipalities

in SALGBC dispute resolution

processes and internal municipal disciplinary and

capacity processes.


performance

Quarterly Impact Report on

Municipalities represented and

assisted in SALGBC dispute resolution

processes and internal municipal disciplinary and

capacity processes by March 2012.

301 ACHIEVED N/A

SALGA WC

Provide hands on support to

municipalities on HR, LR and Collective Bargaining Issues, i.e. Local Labour Forums, Essential

Services Agreements, Collective

Agreements and any other related matters.

New Indicator

Reports on support provided to

municipalities on HR, LR, dispute

cases and Collective Bargaining Issues by

March 2012.

302 ACHIEVED N/A

SALGA WCConvene the

Human Resources Practitioners Forum


performance

Convene four Human Resources Practitioners Forum Meetings by March

2012.

303 ACHIEVED N/A

SALGA GP


labour-related matters


All municipalities advice given where required by March

2012

304 ACHIEVED N/A




performance

Six municipalities supported to have

fully-functional Local Labour Forum by

March 2012

305 ACHIEVED N/A




performance

All 21 municipalities supported in

engaging in Labour on Minimum

Essential Services level Agreement by

March 2012

306 ACHIEVED N/A





NRPERFORMANCE

STATUSREASON FOR

VARIANCE




performance

Six municipalities supported in labour dispute matters by

March 2012

307 ACHIEVED N/A

SALGA MP

Municipalities with skilled and

capacitated Presiding Offi cers

New Indicator

12 capacitated Presiding Offi cers, four per District by

July 2011

430 ACHIEVED N/A



PRIORITY OBJECTIVE O6:SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM –



NRPERFORMANCE

STATUSREASON FOR

VARIANCE

IGR

Preparing a research report on the over-

and under regulation of local government.

MSA addressed issues raised at NMA

Develop two (2) position papers on specifi c aspects

of over and under regulation by 31

March 2012

308 ACHIEVED N/A

ED&P

Analysis of Municipal Financial

Statements (database - sample)

State of local government fi nance report for 2009/10

fi nancial year

Analysis of the National Treasury

Review of LG Budget and Expenditure for 2006/07-2012/13 by

March 2012

309 ACHIEVED N/A

ED&P

Councillors Training on Municipal Finances and

LED after Local Government

Elections

New indicator

Conduct training to newly elected

Councillors responsible for

Municipal Finance by March 2012.

310 ACHIEVED N/A

ED&P

Councillors Training on Municipal Finances and

LED after Local Government

Elections

LED training manual developed

Oversee LED Training module for SALGA National and Provincial Working

Group Chairs on LED by March 2012

311 ACHIEVED N/A

ED&P

Coordination of the 2011/12 Budget

Week and a consolidated report

of budget

2010/11 Consolidated Budget

Week Report

Coordination of the 2011/12 Budget

Week and a consolidated report of budget week by

March 2012

312 ACHIEVED N/A

ED&PIndigent policy

analysis

Assessment report on municipal indigent

policies

Analysis of a sample of six indigent

policies by March 2012

313 ACHIEVED N/A

ED&P

Reports, position papers and

presentations to the Budget

Forum (including participation in the

NCOP)

2010 SALGA Budget Forum Submission

The SALGA submission to the

2011 Budget Forum by October 2011

314 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

ED&P

Facilitate the application process on Local Business

Tax for submission to National Treasury

Scoping report on Local Business Tax tabled to Budget Forum in October

2010.

Local Business Tax application submitted to National Treasury

by March 2012


ED&P

Participation in the Municipal Property Rates Act (MPRA)

Amendment process

SALGA position paper and

comments on MPRA Amendments

SALGA comments on the Municipal Property Rates

Amendment Bill by March 2012.

(Gazette No. 34357 developed and

submitted to COGTA as per the Gazette Notice No. 34357.

316 ACHIEVED N/A

SALGA EC

Municipalities supported towards

the development and implementation of improved Revenue

Enhancement Strategies

2010/11 baseline

Support six municipalities in the

development and implementation of improved Revenue

Enhancement Strategies by March

2012


SALGA FSRevenue

Enhancement Strategy developed

New indicator

Finalise the Revenue Enhancement

Strategy by March 2012

318 NOT ACHIEVED

SALGA GP

Support rendered to municipalities in strengthening sound fi nancial management

2010 Budget week outcomes

Budget week held by March 2012.

319 ACHIEVED N/A

SALGA GP

Monitor and assess implementation

of revenue enhancement strategies in

municipalities.


Four municipalities monitored and

assessed by March 2012.

320 ACHIEVED N/A

SALGA GP

Advice provided to municipalities

on fi nancing alternatives.

New Indicator

One symposium convened on

borrowings for all municipalities in the province by March

2012.

321 NOT ACHIEVED

The symposium was postponed

until further notice






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA LP 2014 clean auditAssessment

for 2010/2011 conducted.

Develop a Provincial paper on attainment

of 2014 clean audit and present to PEC Lekgotla,

Municipal Managers Forum and Premier Intergovernmental Forum by March

2012

322 NOT ACHIEVED

SALGA LP

Coordination of the Budget week to

improve Municipal Finance

Budget Week 2010/11

Coordination of the 2011/12 budget

week by February 2012

323 ACHIEVED N/A

SALGA MPImproved audit outcomes for

municipalities.2010/11 Baseline

Four municipalities with disclaimer 2009/2010 audit

outcomes supported to address issues

raised in their Management letters

by March 2012

324 ACHIEVED N/A

SALGA MP

Municipalities with improved fi nancial

management systems and processes

2010/11 Baseline

Seven fi nancial management

Systems analysed by March 2012


SALGA MP

Municipalities developing and implementing

Revenue Enhancement

Strategies

2010/11 Baseline

21 municipalities supported in the

development of revenue

enhancement strategies by March

2012

326 ACHIEVED N/A

SALGA MP

Municipalities developed and implementing

an effective Risk Management and

Internal Audit System.

New Indicator

One municipality supported in the development of an effective Risk

Management System and Internal Audit system by March

2012.

327 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NC

Support municipalities in the implementation of

phase 2 EPWP

18 Municipalities registered and

reporting

Three municipalities supported to register and report on EPWP projects by March

2012

328 ACHIEVED N/A

SALGA NC

Interventions implemented to improve Political

Oversight on municipal fi nance

reports.

Workshop held in 2010/11

Provincial workshop on political oversight

convened by December 2011

329 ACHIEVED N/A

SALGA NCEnsure functionality of (5) District Area Finance Forums

Four Forums in 5 Districts

Two DAFF Meetings convened by March


SALGA NCCoordination of Budget Week programmes

2010/11 Budget Week Report

Local Government Budget Week

Workshop conducted by December 2011

331 ACHIEVED N/A

SALGA NW

Municipalities advised on the

improved revenue enhancement

strategy

16 municipalities complied with GRAP

conversion

Convene a working session on GRAP

conversion by March 2012

332 ACHIEVED N/A

SALGA NW

Municipalities advised on the

improved revenue enhancement

strategy

New Indicator

Advise 23 Municipalities on the effective debt

collection strategies through working

session(s) by March 2012

333 ACHIEVED N/A

SALGA NW

Municipalities supported on the

improvement of Audit outcomes.

2010 Audit outcomes

Support the eight priority municipalities towards Clean Audit

2014 by March 2012.

334 ACHIEVED N/A

SALGA NW

Municipalities supported towards

the development and implementation of Improved Revenue

Enhancement strategies.

2010 Budget week report

Coordinate provincial Budget Week by







NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA WC

Support to municipalities with regard to Operation

Clean Audit

New IndicatorConvene a workshop on MPACs by March


SALGA WC

Raise awareness of Municipal Finance issues at provincial

government

Attend quarterly meetings of CFO

Forum

Four CFO Forums attended by March

2012.337 ACHIEVED N/A

SALGA GP

Support rendered to municipalities in strengthening sound fi nancial management

2011 Budget week outcomes

Support given to municipalities by

March 2012.338 ACHIEVED N/A

SALGA MP



2010/11 Baseline

21 Municipalities supported in the implementation

of the 2010/2011 Budget week

resolutions by March 2012


SALGA MP



2010/11 Baseline

One 2011/2012 budget week

coordinated by March 2012

340 ACHIEVED N/A

SALGA NC

Provincial seminar on Land Use Management,

Spatial Development Framework

guidelines and Comprehensive

Rural Development programme held

New Indicator

Convene one provincial seminar

on Land Use Management, SDF

guidelines and IDP and CRDP by December 2011

341 ACHIEVED N/A

SALGA NC

Support and assistance provided

to municipalities towards clean audit

2014

New Indicator

Adopt three municipalities by March 2012 to

provide hands on support towards

achieving clean audit

342 ACHIEVED N/A



PRIORITY OBJECTIVE O7:STABLE MUNICIPAL GOVERNANCE - STABLE MUNICIPAL GOVERNANCE


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

IGR

Final guidelines on the roles and responsibilities

approved by the NEC

Final document approved by NEC in

March 2011

Facilitate Implementation

through guidelines, one circular to all

municipalities, two provincial workshops by 31 March 2012

343 ACHIEVED N/A

IGR

Research Paper on best practices

regarding accountability oversight in

municipalities.

ToRs developed in 2010-11

Two (2) best practices proposals

on effective accountability and

oversight by 31 March 2012

344 ACHIEVED N/A

SALGA FSSupport and advise

municipalities on the role clarifi cation

Approved guidelines on Roles and

Responsibilities

Four (4) district workshops on roles and responsibilities

for Mayors, Speakers, Councillors and

Municipal offi cials by March 2012.

345 ACHIEVED N/A

SALGA FSParticipation of

SALGA in provincial IGR structures

As per 2010/11 APPSALGA participated in 12 IGR structures


SALGA FS

Assist municipalities with the

establishment of Ward Committees

New IndicatorThree (3) outstanding municipalities visited

by January 2012.347 ACHIEVED N/A

SALGA MP

Municipalities with structured and coordinated

international relations.

One District Workshopped on MIR Guidelines

Six municipalities supported on the implementation

of SALGA/DIRCO guidelines on MIR by

March 2012.

348 ACHIEVED N/A

SALGA NW

Municipalities advised on effective Political oversight on Good Governance

and Ethics

Good Governance and Ethics: King III

Manual

Conduct two workshops for four districts on Good Governance and Ethics as well as

guidelines on MPAC Establishment by

October 2011

349 ACHIEVED N/A



PRIORITY OBJECTIVE O7:STABLE MUNICIPAL GOVERNANCE - STABLE MUNICIPAL GOVERNANCE


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NW

Participation and representation by SALGA in key IGR

Structures


Participation of SALGA in key IGR

Structures by March 2012 (e.g. NCOP,

NWPCC, MuniMec, Select Committees)

350 ACHIEVED N/A

SALGA WC

Support to Municipalities

on Governance Challenges

New Indicator

Report on the support provided to municipalities on governance

challenges by March 2012

351 ACHIEVED N/A

SALGA FS

Lobby the legislative and executive arms of government for the participation of

SALGA

New indicator

Two MoUs with two spheres of government on

the participation of SALGA developed

and signed by March 2012


SALGA FSTraining conducted

for Ward CommitteesNew Indicator

10 municipalities trained by March

2012.353 NOT ACHIEVED Lack of capacity

IGR

Development of a blueprint for an

effective Ward Governance System

New indicator

Revised Governance model for ward committees by March 2012

354 ACHIEVED N/A

IGR

Development of a governance model for the separation

of powers in municipalities

New indicator

Governance model approved by NEC by

31 March 2012355 ACHIEVED N/A

IGR

Development of a governance model for the separation

of powers in municipalities

New indicator

Advisory workshops in three provinces on the development of

MPACs by 31 March 2012

356 ACHIEVED N/A



PRIORITY OBJECTIVE O8:CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND

STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SPRBuild awareness and

use of knowledge hub

New IndicatorMunicipal level data

framework developed by December 2011

357 ACHIEVED N/A



New Indicator

Local level data is made accessible through SALGA’s

website quarterly by March 2012

358 ACHIEVED N/A

SPR

Initiate and coordinate municipal

benchmarking programmes

New Indicator

Initiate and coordinate the roll out of additional benchmarking programmes on HIV/Aids, public

participation, LED, and water by March

2012

359 ACHIEVED N/A



New Indicator

Quarterly update Knowledge and

Information database and load onto SALGA

Web site by March 2012

360 ACHIEVED N/A

SALGA NC

Two districts capacitated with regard to Disaster

Management

New Indicator

Two districts meetings held to capacitate municipalities on Disaster

Management by March 2012


OCEO

Advisory Internal Audit support provided to

municipalities with poor audit outcome.

A consolidated report on the municipalities

audit outcomes.

Five municipalities in fi ve provinces

(one per province) (EC, FS, NC, MP, LP) identifi ed and assisted by March

2012


OCEO

Supporting and assisting

municipalities in the implementation

of Performance Management System.

As per fi ve municipalities assisted and supported in

2010/11.

Five (5) municipalities supported and

assisted with the implementation of Performance

Management System by March 2012

363 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SPRFacilitate theme based learning

networks and events Learning Events

Terms of Reference on learning networks

developed and approved by

December 2011 for District Learning Network, Migration, Municipal Manager’s

Forum and Mining and Local

Government

364 ACHIEVEDN/A


networks and events Learning Events

Four learning events concluded by March


MISDevelopment of

the climate change planning guide

New Indicator

Develop a draft guide on climate change planning by March

2012

366 ACHIEVED N/A

MIS

Create awareness on the importance of local regulation to relevant water

structures

Regulatory frame work and municipal

case studies

Make presentation in all nine water sector

forums by March 2012


MID

SALGA recommendations on Councillor Skills Assessment report

communicated

New Indicator

SALGA recommendations on revised capacity

building strategy distributed to

provincial offi ces by 31 January 2012


MID

SALGA recommendations on Councillor Skills Assessment report

communicated

New Indicator

Facilitate portfolio-based training in

fi ve provinces by 31 March 2012


MID

The establishment and strengthening

of partnerships with government

departments, niche institutions and

business.

MoU signed with relevant institutions

and list of key stakeholders

Established effective relations with

professional bodies and evaluated their

admission criteria by March 2012

370 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MID

The establishment and strengthening

of partnerships with government

departments, niche institutions and

business.

MoU signed with relevant institutions

and list of key stakeholders

Signed agreements with niche institutions


MID

Framework on SALGA municipal

database of available personnel in the

scarce and critical skills

International Programmes

Developed a framework for the establishment and

functionality of SALGA municipal scarce and critical

skills database by 31 March 2012


MID

Framework for the development of a SALGA sector

mentorship programme.

New Indicator

Framework for SALGA Sector Mentorship Programme

developed by 31 March 2012.


MID

Initiate knowledge sharing programme on Human Capital

Development

Micro projects completed

One knowledge sharing event on Human Capital

Development by 31 March 2012

374 ACHIEVED N/A

MID

SALGA impact assessment report on all SALGA (National)

Capacity Building

International Programmes

SALGA impact assessment report on all Capacity Building by 31 March 2012


MIDLobby and advocate for improved PMS in

the sector

Performance management toolkit.

Workshop report.

Submitted SALGA comments on PMS

Guidelines from CoGTA by June 2011

376 ACHIEVED N/A


the sector


Workshop report.

SALGA PMS cascading framework

developed by 30 October 2011

377 ACHIEVED N/A


the sector


Workshop report.

Developed PMS capacity building

plan for the sector by 31 March 2012

378 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIDLobby and advocate for LG Web-based

HRMISNew Indicator

SALGA report on Municipal HRMIS by 30 November 2011


MIDLobby and advocate for LG Web-based

HRMISNew Indicator

SALGA funding proposal submitted

to CoGTA by 31 October 2011


MID

Support and advice provided to municipalities on Labour Relations

matters

Support provided to Municipalities

Quarterly Labour bulletins by March


IGR

Continuous liaison with DIRCO/ CFIR

to learn and update IR policies and guidelines and

populate such to SALGA Directorates/

Provinces/ Municipalities

Implementation of SALGA International Relations Strategy

Draft IR Strategy approved by NEC on

25 March 2011.

Finalise IR strategy approved by NEC by

31 March 2012.382 NOT ACHIEVED Lack of capacity

IGR







25 March 2011.

Guidelines for twinning

municipalities approved by NEC

and workshopped to at least 4 provinces and distributed to all 278 municipalities by

31 March 2012.







NRPERFORMANCE

STATUSREASON FOR

VARIANCE

IGR







25 March 2011.

Project to promote the conclusion of inter-municipal partnerships or

international city-to-city cooperation

of at least two domestic cities to two international cities by

March 2012.

384 ACHIEVED N/A

IGR







25 March 2011.

At least 1 (one) above international project per twinning implemented by 31

March 2012.


ED&P

Facilitate the capacity building

of Councillors and Planning Practitioners on planning

related matters in municipalities

New indicator

Develop an introductory brochure

to planning for use by both planning practitioners and

councillors involved with planning and upload it on the

SALGA website and also disseminate it to Provinces

for distribution to municipalities by

March 2012

386 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

ED&P

Provide support and guidance to ensure that ICTs are better

leveraged to effective administration,

service delivery and socio-economic

development within Municipalities.


Implement aspects of eSkills programme from DoC MOU on eSkills by March

2012


ED&P

Provide support and guidance to ensure that ICT’s are better

leveraged to effective administration, service delivery,

and socio-economic development within

Municipalities.


Launch Municipal ICT Practitioners

Network by March 2012

388 ACHIEVED N/A

ED&P

Provide support and guidance to ensure that ICTs are better





Host a SALGA National ICT Local

Government Event by March 2012

389 ACHIEVED N/A

ED&P

Provide support and guidance to ensure that ICT’s are better





Prepare feasibility study on SALGA Forming an ICT

Accreditation Service by March 2012

390 ACHIEVED N/A

SALGA EC

Councillors and offi cials capacitated on issues of local

government

2010-11 Baseline

Conduct Generic Induction and Portfolio Based

Induction on Water Services, Human

Settlements , Waste Management and environment and

Municipal Finance by March 2012

391 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA ECHIV/ AIDS

learning events for municipalities

New indicator

One provincial HIV/ AIDS learning event for municipalities by

March 2012

392 ACHIEVED N/A

SALGA EC

Municipalities advised on knowledge

management and sharing

New Indicator

Host one learning event for knowledge management and

sharing as per National SALGA

calendar by March 2012

393 ACHIEVED N/A

SALGA FS

Co-ordinate capacity building programmes for municipal offi cials

and councillors (workshops,

accredited training, capacity building programmes etc)

As per 2010-11 Business plan

15 capacity building programmes

implemented by March 2012

394 ACHIEVED N/A

SALGA GPFacilitate targeted training to improve

service deliveryNew Indicator

1000 councillors and offi cials capacitated

on targeted programmes by March 2012.

395 ACHIEVED N/A

SALGA LP

Engage stakeholders on knowledge

management and Innovation and

coordinate Municipal Managers Forum

New Indicator

Stakeholder engagement

on Knowledge Management and

Innovation by November 2011

396 NOT ACHIEVED

Focus for fi rst three quarters

was on CIP training

SALGA MP

Integrated Development Plans refl ective of sector

plans

New Indicator

Six municipalities supported in the development of sector plans in preparation of

2012/2013 IDP annual review by

March 2012

397 ACHIEVED N/A






NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MP

Municipalities developing and implementing

the Performance Management System


performance

Three municipalities supported in the development and implementation

of PMS for Senior Management by

March 2012

398 ACHIEVED N/A

SALGA MP

Councillors, Offi cials, PEC, and WG members and Traditional leaders

orientated and capacitated on issues of local government


performance

973 councillors inducted and

orientated on LG issues by July 2011.

399 ACHIEVED N/A

SALGA MP

Capacitated municipalities on communication

issues

New indicator

21 Municipalities supported on

communication issues through the

DCFs by March 2012

400 ACHIEVED N/A

SALGA NC

Implement capacity building intervention benefi ting councillors

and offi cials

10 Workshops

10 workshops on Main Collective Agreement/HR

Policies/Disciplinary Procedure/LLF/

Divisional COS/Strike Management by

March 2012

401 ACHIEVED N/A

SALGA NCCouncillors orientated on local government

issuesNew Indicator

Councillor Induction program coordinated

to orientate councillors after the local government

elections by September 2011

402 ACHIEVED N/A

SALGA NW

Municipalities supported towards the Alignment of the Integrated

Development Plans and Sector plans

2010 IDP assessment out

comes

Provincial IDP working session on 3rd-generation IDPs

by March 2012.

403 ACHIEVED N/A







NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA NW

Conduct induction programme for newly elected councillors on the roles and responsibilities.

New Indicator

Newly elected Councillors inducted

on roles and responsibilities by

March 2012

404 ACHIEVED N/A

SALGA NW

Conduct Skills Development

and Training for municipalities

2010/11 training outcomes

300 Councillors/Offi cials Trained on

PMS; HIV/AIDS; LLF; OHS; LRPF

and HRPF by March 2012

405 ACHIEVED N/A

SALGA NW

Support municipalities in

the implementation of the Performance

Management System by monitoring the implementation

thereof.

2010/11 training outcomes

Ten (10) municipalities

within the province supported

and guided to implement PMS

and monitored on the implementation thereof by March

2012.

406 ACHIEVED N/A

SALGA WC

Facilitate general training, capacity

building and knowledge sharing for Councillors and Offi cials. (Councillor

Induction, ELDP, Confl ict Resolution, Disciplinary Hearing

Chairpersons and Initiators, Workshops.)

Three capacity-building interventions

Conduct fi ve training interventions for councillors and offi cials on local government by March 2012.

407 ACHIEVED N/A

SALGA MP

Councillors, Offi cials, PEC,

and WG members and Traditional

leaders orientated and capacitated on issues of local

government


performance

13 PEC members and 36 working group members inducted on the

mandate of SALGA by December 2011.

408 NOT ACHIEVED

Transition in SALGA

Governance Structures







NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MP

Councillors, Offi cials, PEC and WG members and Traditional leaders

orientated and capacitated on issues of local government


performance

500 Councillors, Traditional Leaders

and Offi cials trained in nine

local government programmes by March 2012.

409 ACHIEVED N/A



New Indicator

Convene one national and four provincial

workshops on municipal barometer

by March 2012

410 ACHIEVED N/A


networks and events

Local Learning Network

Quarterly outcome Reports on District Learning Networks

developed by March 2012


MIDSADC regional

collaboration strategy developed.

New IndicatorConduct a needs assessment of the strategy




PRIORITY OBJECTIVE O9:REFORM ORGANISED LOCAL GOVERNMENT –

A MORE EFFECTIVE, RESPONSIVE, AND FINANCIAL VIABLE SALGA


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA FS

Partnerships with relevant institutions of

Higher Learning and Professional bodies

or Associations concluded.

New indicator

wo partnerships with relevant institutions of higher learning and professional

bodies concluded by March 2012.


IGR

Development of a position paper on the review of Organised Local Government

Papers submitted to NMA in May 2010

Revised constitution presented at the Special National Conference on Constitutional

Amendments by 28 February 2012.

413 NOT ACHIEVED

Special Conference

was not held by February 2012

due to lack of consensus

regarding the date of the special

Conference.

IGR



Proposed amendments to

OLG Act and other legislation by 31

March 2012.

414 ACHIEVED N/A

IGR



Lobby national and provincial IGR structures

and Parliament to effect proposed

amendments by 31 March 2012.

415 ACHIEVED N/A

SALGA FSImprovement in the collection of levies

85% Collection of municipal levies.

100% Collection of municipal levies by

March 2012416 NOT ACHIEVED

Municipalities cashfl ow

challenges

SALGA GP

Effective coordination of and participation in all governance

structures


Coordination of and participation

in governance structures as per

calendar of events by 31 March 2012

417 ACHIEVED N/A

SALGA LP

Informed proposals on SALGA

Constitutional Review and OLG Review

OLGA

Conduct three workshops to solicit inputs from member

municipalities by January 2012




PRIORITY OBJECTIVE O9:REFORM ORGANISED LOCAL GOVERNMENT –

A MORE EFFECTIVE, RESPONSIVE, AND FINANCIAL VIABLE SALGA


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

SALGA MP

Municipalities consulted on the proposed

amendments to the SALGA constitution

New Indicator

21 Municipalities consulted on the

review of the SALGA constitution by March 2012

419 ACHIEVED N/A

SALGA NW

Municipalities consulted towards the Restructuring

of Governance Structures of SALGA


Establishment of SALGA Provincial

Working Groups by PEC in consultation with Municipalities

after Provincial Conference by

December 2011

420 ACHIEVED N/A

SALGA NW

Provide Capacity Building for newly elected PEC and Working Group

Members for the execution of the

mandate of SALGA in line with the


New Indicator

Conduct induction workshop for new PEC and Working

Group members on SALGA Governance

Framework by January 2012

421 ACHIEVED N/A


implementing the IGR Framework Act

New Indicator

21 Municipalities supported in the

implementation of the IGR Framework Act by March 2012

422 ACHIEVED N/A



PRIORITY OBJECTIVE 10:CLIMATE CHANGE RESPONSE MEASURES AT MUNICIPAL LEVEL –

INTEGRATION OF CLIMATE CHANGE RESPONSES IN DEVELOPMENT PLANNING AND MANAGEMENT.


NRPERFORMANCE

STATUSREASON FOR

VARIANCE

MIS

Facilitate implementation

of LGP4COP Programme

New indicator

Partner with eThekwini

Municipality, DEA, and SACN in implementing

LGP4COP Programme by

December 2011.

423 ACHIEVED N/A

MIS

Assessment of policy implications

of implementation of energy effi ciency in

municipalities



Final report on policy implications of implementation

of energy effi ciency in municipalities by

March 2012.

424 ACHIEVED N/A

SALGA FS

Climate change awareness campaign

facilitated for municipalities

New indicator

One report on municipal climate change awareness

campaign consolidated by March 2012.


SALGA GP

Analyse integration of climate change

response into municipal planning

New indicator

Two municipalities climate change

responses analysed by March 2012

426 ACHIEVED N/A

SALGA NW

All municipalities supported and capacitated on climate change

policies with emphasis on adaptation ,

mitigation and carbon footprint

All municipalities supported and capacitated on climate change

policies with emphasis on adaptation ,

mitigation and carbon footprint

Conduct a provincial workshop

on mitigation, adaptation, carbon

footprint and trading by March 2012

427 ACHIEVED N/A

MIS

Institutional capacity assessments for

pilot municipalities in relation to the role and mandate to be fulfi lled in respect of

energy effi ciency



A draft report on the Institutional capacity

assessments for pilot municipalities

in relation to the role and mandate to be fulfi lled in respect of energy effi ciency by

March 2012.

428 NOT ACHIEVED Lack of Capacity



CORPORATE GOVERNANCE

This chapter contains the SALGA Corporate Governance Report, comprising information regarding business planning and performance, legislative compliance framework, budgeting process, audit committee, internal audit, risk management, individual performance management and governance structures, as well as the SALGA Human Resources Oversight Report

CHAPTER 4


The imperative of stabilising the South African Local Government Association (SALGA), in a context where essential corporate governance systems and procedures were not in place, has found expression in the development of new policies.

These policies will guide the development and implementation of appropriate tools to cement organisational stability and promote good corporate governance. Consequently, a number of corporate governance policy frameworks were implemented during the reporting period:

• Revised Strategic Plan (2007-2012).

• Business planning template.

• Legal compliance policy.

• Budgeting policy.

• Internal audit and risk-management policy.

• Performance-management policy/procedure.

• Governance structures/mandating framework.

• Human resources management policy.

4.1 INTRODUCTION


4.2.1 BUSINESS PLANNING:

The Strategic and Annual Performance Planning Policy was developed during the 2009/10 fi nancial year. Consultative Meetings were held in the development of this Policy. The Policy was subsequently approved by NEC on 10 to 11 December 2009. The fi rst revision of the Policy took place during the 2010/11 fi nancial year to make the necessary improvements towards process optimilisation. The fi rst revision of the Strategic and Annual Performance Planning Policy was approved by the NEC during March 2011 for implimentation with effect from 1 April 2011.

The second revision of the Strategic and Annual Performance Planning Policy commenced during October 2011. One of the primary objectives of this review was to incorporate areas of improvement highlighted by the Management Report of the Auditor General of August 2011 and to incorporate the requirements of the National Treasury Framework for Strategic and Annual Performance Planning (August 2010 – but applicable as from the 2011/12 fi nancial year). The SALGA Strategic and Annual Performance Planning Policy consist of two distinct parts: (a) the policy which is refl ective of the applicable legislation guiding governance in Public Entities and (b) the procedure that guides organisational implementation.

The SALGA Executive Management Team has been engaged for inputs on 24 October 2011. The consultation process concluded with a meeting of the Managers: Strategic Support on 2 December 2011 where all inputs made by Provinces and Directorates where tabled and discussed in order to inform and conclude the second revision of the Policy.

For the purpose of this report the following changes to the Policy are highlighted:

• Strategic Planning:

- The process to inform the Strategic Plan of SALGA has to be guided by the timeframes laid down by National Treasury:

Step 1: Provincial mandating process has to inform the fi rst draft Strategic Plan to be submitted to the Minister: CoGTA by 31 August of a particular planning cycle.

Step 2: The second draft Strategic Plan has to be sophisticated with the consolidation of provincial inputs into a holistic national mandate to be submitted to the Minister: CoGTA by 30 November of a planning cycle.

Step 3: The fi nal Strategic Plan has to be refi ned and endorsed by the PECs and recommended for approval by the NEC prior to submission to the Minister: CoGTA by 31 January of a particular planning cycle.

• Annual Performance Planning

- The process to develop the Annual Performance Plan of SALGA (guided by the SALGA fi ve-year Strategic Plan) has to be guided by the timeframes laid down by National Treasury:

Step 1: Provincial mandating process has to inform the fi rst draft Annual Performance Plan to be submitted to the Minister: CoGTA by 31 August of a particular planning cycle.

4.2 BUSINESS PLANNING AND PERFORMANCE INFORMATION


Step 2: The second draft Annual Performance Plan has to be sophisticated with the consolidation of provincial inputs into a holistic national mandate to be submitted to the Minister: CoGTA by 30 November of a planning cycle.

Step 3: The fi nal Annual Performance Plan has to be refi ned and endorsed by PEC’s and recommended for approval by the NEC prior to submission to the Minister: CoGTA by 31 January of a particular planning cycle.

- The National Treasury Framework for Strategic and Annual Performance Planning does not allow for the revision of the Annual Performance plan during the mid-year. This practice had to be removed from the Policy in order to comply.

- Operational Planning as from the 2012/13 will be compulsory.

• In-Year Reporting:

- Within 30-days after the end of a quarter, SALGA has to submit a comprehensive report to the Minister: CoGTA on the organisational performance against the approved Annual Performance Plan. As per the commitment of SALGA to the Auditor-General, the Strategic and Business Planning Unit will conduct a detailed quality assurance on performance claims made against every target on a quarterly basis. Detailed feedback will be provided to line management to ensure the integrity of the information presented to the Accounting Authory.

The second revised policy was approved by the NEC during March 2012 for implementation with effect from 1 April 2012.

4.2.2 PERFORMANCE INFORMATION:

Performance information is under the administration of the Strategy, Policy and Research (SPR) directorate. SALGA has started to implement a more systematic and integrated approach to business planning, one that is institutionally aligned in all of its high-level business units. The business plan is used as a systematic framework to provide strategic clarity, direction and purposeful execution of the mandate of SALGA.

The SALGA Annual Performance Plan 2011/2012, as approved by the National Executive Committee in March 2011, was based on the revised SALGA Five-Year Strategic Plan (2007-2012). This was amended to cater for the shift in focus from objectives to outcomes and the replacement of the fi ve objectives geared towards the Five-Year Local Government Strategic Agenda (5-YLGSA) with the SALGA 10-Point Priority Outcomes. This is aligned with the Local Government Turn Around Strategy (LGTAS).

As per the Public Finance Management Act (PFMA) requirements, directorates/provinces submit quarterly progress reports to the SPR directorate. During the second quarter, the Internal Audit Unit completed its audit review of mid-term performance information. The scope of work covered the verifi cation of the existence of evidence supporting the business plan performance information reported in the mid-term ending September 2011. The scope of the audit did not duplicate the review conducted by the mid-term performance information review panel. The following directorates/provinces formed part of the audit sample:

• SALGA Eastern Cape

• SALGA Free State



• SALGA Gauteng

• SALGA Mpumalanga

• SALGA Northern Cape

• SALGA Western Cape

• Directorate: Strategy, Policy and Research

• Directorate: Municipal Infrastructure Services

• Directorate: Economic Development and Development Planning

• Directorate: Governance, IGR and International Relations

• Directorate: Community Development

• Directorate: Finance and Corporate Services

• Offi ce of the CEO



4.3.1 INTRODUCTION

SALGA has taken proactive steps to ensure that appropriate and suffi cient compliance principles are implemented. The compliance unit is responsible for ensuring that SALGA acts in accordance with good corporate governance principles and that it complies with all applicable laws, regulations, policies, and procedures. It is therefore crucial to have proper compliance implementation and monitoring procedures in place.

SALGA is obliged to comply with numerous legislation, regulations and policies and its regulatory compliance duties are divided into three categories:

• Compliance in terms of statutory requirements.

• Compliance in terms of the SALGA constitution.

• Compliance in terms of the SALGA policies and procedures.

SALGA is therefore obliged to comply with the sources arising from the three categories. Failure to do so could lead to serious reputational and fi nancial risk. The improvement of compliance activities by reducing opportunities for non-compliance is vital to the optimal operation of SALGA.

The goal of the compliance unit is to capitalise on the compliance levels of individual units and ensure that every manager and employee fully meets their offi cial obligations. The compliance unit in the offi ce of the CEO has continued to roll out and develop the SALGA compliance framework. This ongoing endeavour has substantially deepened the ability of SALGA to implement and monitor compliance throughout the organisation.

4.3.2 ACTIVITIES FOR THE YEAR UNDER REVIEW TO ENSURE COMPLIANCE

Major strides were made in the implementation of the SALGA compliance framework during 2011/2012. The key achievements in relation to the compliance framework are summarised below:

• Continued to provide training to compliance offi cers on fundamental principles of compliance.

• A quarterly compliance training newsletter was developed and distributed to all compliance offi cers, thus ensuring ongoing, on-the job compliance training and awareness.

• Continuous assistance to all compliance offi cers and interested parties on compliance, translating to an ‘open-door policy’.

• Produced a preliminary compliance scorecard quantifying compliance levels at individual segment levels.

• Attempting to create a fearless environment as regards compliance.

• Status reports can be drawn from the compliance software programme for each internally-focused business unit, province, and for SALGA overall.

• More business units and provinces have started to recognise the vital role of compliance within the organisation.

4.3 THE SALGA LEGISLATIVE COMPLIANCE FRAMEWORK


4.3.3 CHALLENGES

While much had been accomplished in relation to rolling out the compliance framework across SALGA, a number of challenges were experienced during the year under review. The most critical challenges are:

• Risk of non-compliance of legislation, leading to poor reputation.

• The lack of total buy-in by all employees, resulting in the lack of data input in the compliance register. This is used as the basis for measuring the level of compliance

4.3 THE SALGA LEGISLATIVE COMPLIANCE FRAMEWORK


SALGA’s Budget Management Policy provides a framework for the processes and procedures to be followed when compiling the annual MTEF cycle budgets for both operating and capital expenditure. The framework serves as a guideline to all business units (directorates and provinces) for the compilation of operational business plans and budgets. This Policy document is the guiding document when SALGA does its reporting to the NEC and national government department (i.e. the Executive Authority namely the Department of Cooperative Governance and Traditional Affairs (CoGTA)). The policy is aligned to the PFMA to enhance compliance with legislative and regulatory provisions.

The PFMA in section 51(1)(a)(i) requires that public entities must ensure that the public entity has and maintains effective, effi cient and transparent systems of fi nancial and risk management.

In ensuring a transparent system for resource allocation, SALGA’s budgeting process includes “Budget Panel Hearings”.

The organisation’s budget is informed primarily by the organisational Business Plan 2011/12 together with the Budget Management policy and the MTEF guidelines.

The basis of the organisational business plan 2011/12 is, inter alia, informed by:

• The local government environment;

• National and global issues and trends and their implications for local governance;

• 5YLGSA subsequently superseded by the Local Government Turnaround Strategy;

• The MTSF;

• The MGDs;

• The COGTA Ten Point Plan; and

• SALGA’s revised 5 Year Strategic Plan 2007 – 2012.

Budget parameters are set based on available resources and circulated to all business units i.e. provinces and directorates. These budget parameters are designed to ensure that the organisational budget is affordable; sustainable; realistic; and credible. SALGA is not immune to budgetary constraints that dictate the priority areas for a specifi c planning year. In order to deal equitably with competing demands from various business units for resources, the organisations budget policy established a “Budget Panel” a governance structure where the various competing needs are weighed against resources; and organisational priorities as informed by the business plan 2011/12.

The purpose of the budget panel hearings’ is to establish a formal forum where all business units are granted an equal opportunity to present their costed programme of action for the planning fi nancial year and beyond to support the budget being requested. The programme of action must focus on the planning fi nancial year (business plan) and be linked to SALGA’s strategic objectives and be linked to a clear and measurable Key Performance Indicator (KPI).

SALGA’s budgeting basis is a hybrid of incremental budgeting as well as zero base budgeting.

4.4 BUDGETING POLICY


It is SALGA’s policy to adopt a Zero Base Budgeting (ZBB) for all programme costs and capital spending. The incremental cost approach is used when budgeting for “administrative expenses” such as rental costs for rental premises used for offi ce accommodation. Employee related costs are also budgeted based on an incremental basis, except for additional increases in the base cost as a result of head count increases, which adopt the zero base budgeting approach.

Departing from the incremental cost approach for administrative expenses, is allowable, where a policy, or agreement exists that uses a pre-determined multiplier for costing purposes such policy shall formulate the basis for budgeting for such administrative expenses.

The process to develop the budget is protracted and robust, which is best described diagrammatically below (highlighting the critical governance and administrative structures).

Operational and fi nancial Sustainability

The timing of payment for membership levies from members often impacts negatively on the organisations operations and thereby its ability to service its membership better. The majority of payments for membership levies does not occur by the due date (i.e. 1 July per the SALGA Constitution). This state of affairs often impacts the organisations cash fl ows resulting in the curtailment of programme roll-out. In order to address this risk factor, the organisation has developed a funding model that has been presented to the Executive Authority (CoGTA) and National Treasury, after it was adopted by members in the National Members Assembly held on 10-11 May 2010 in Kimberley.

The purpose of developing the Funding model was to analyse the various activities currently performed by SALGA with specifi c reference to the relevant legislation and to determine a funding model that will enhance revenue thereby ensuring the sustainability of SALGA in future years. In analysing the activities undertaken by SALGA, cost drivers were identifi ed and these are also commented on in this report. Whilst cost control was not an objective of the assignment, there are recommendations that identify possible cost control opportunities.

The funding model; has determined scientifi cally the following cost components that must be funded from the national fi scals; these are (i) mandatory governance costs; (ii) legislated inter-governmental relations participation; and (iii) restructuring and transformation of local government sector.

Cost Component 2011/12 2012/13 2013/14

Mandatory Governance costs R 6,072,000 R 6,442,000 R 6,796,000

Legislated IGR participation R 76,823,000 R 81,509,000 R 85,992,000

Transformation /Restructuring R 18,480,000 0 0

TOTAL R 101,375,000 R 87,951,000 R 92,788,000

Less: Current government grant in fi nancial model (R 24,000,000) (R 26,000,000) (R 27,000,000)

TOTAL INCREASE REQUIRED R 77,375,000 R 61,951,000 R 65,788,000

The rational for each of the components is summarised below:



(i) Mandatory Governance Costs

One of the main reasons for requesting a government grant to fi nance the cost of governance is that national legislation, in the form of the Public Finance Management Act, requires SALGA as well as other public sector organisations to be audited externally, establish and implement an internal audit function and establish an audit committee (i.e. implement good governance practices).

It should be noted that similar requirements apply not only to the public sector but also to the private sector. These requirements are not considered to benefi t government per se but rather are intended to safeguard the interests of and promote accountability to stakeholders. Good governance refl ects the value system of society at a point in time, and good governance structures and mechanisms are deemed acceptable to enable the governing body and the administration to demonstrate that they have acted in the best interests of stakeholders.

It is our considered submission hat the national fi scas should fund this cost of governance as it is compliance related.

(ii) Legislated Inter-Governmental Relations Participation

The main reason for requesting government grant fi nancing is that SALGA is undertaking legislated functions regarding its mandatory participation in the various IGR structures. The extent and form of such participation, and whether representation is at a national or provincial level, is effectively required in terms of legislation. There is no opportunity for SALGA to vary its representation unless there is a change to legislation. SALGA’s participation is therefore compulsory, as per the legislative prescripts.

(iii) Restructuring and Transformation of Local Government Sector

SALGA has an objective to support the transformation of local government. This objective is to identify key transformation issues facing local government and to undertake research and advocacy work around such support. SALGA also sees itself as participating in transformation initiatives that are initiated by national government and other related parties, such as the introduction of REDS. SALGA sees its role as supportive to transformation objectives in the best interest of the Local Government sphere.

The major transformation initiatives that are occurring at present relate to electricity restructuring, introduction of a single public service and the replacement of RSC levies with a local business tax. There are also transformation issues that are driven by national departments and the participation of SALGA in national department led initiatives, whether technical, planning, governance, environmental or fi nancial management related, is often required.

There are also initiatives that SALGA itself initiates based on feedback from its members and based on challenges facing the sector. In these instances, SALGA develops a position paper and then engages with the national government sector department concerned. This entails research and consultation with members that feeds back into departmental initiatives. All these undertakings require the development of well-informed policy positions; and adequate funding is often required to realise these.

The organisation has submitted the outcome of its revenue enhancement model (Funding model) to the Executive Authority (Department of Co-operative Governance and Traditional Affairs) as part of the MTEF submission for the 2011/12 to 2013/14 planning cycle, and made necessary representations relating to the adequacy of the SALGA funding from the national fi scas. The submission was followed by a formal engagement between the SALGA Chairperson and the Minister of Finance on 30 September 2010; and a further engagement between the CEO of SALGA and the Deputy Minister of Finance on 25 January



2011. However, the Funding model is not fully implemented in the current MTEF cycle as the Executive Authority and National Treasury are still interrogating the model.



The SALGA audit committee was established in terms of the PFMA and the Treasury Regulations. Its responsibilities have been determined by the NEC and its modus operandi is outlined in the Audit Committee Charter that is reviewed annually to ensure its relevance.

In accordance with the Treasury Regulations 27.1.3 and 27.1.4, the audit committee has been constituted to ensure its independence. All members and the chairperson are outside the public service arena. The composition of the audit committee members is such that all Treasury Regulations and the Audit Committee Charter requirements are met in terms of fi nancial and legal literacy and the independence of the committee.

The audit committee of SALGA was established in terms of the PFMA and the Treasury Regulations. Its responsibilities have been determined by the National Executive Committee and its modus operandi is outlined in the Audit Committee Charter that is reviewed annually to ensure its relevance.

In accordance with the Treasury Regulations 27.1.3 and 27.1.4, the Audit Committee has been constituted to ensure its independence, with all members and the chairperson outside the public services. The composition of the Audit Committee members is such that all Treasury Regulations and Audit Committee Charter requirements are met in terms of the fi nancial and legal literacy.

Four meetings were held during the 2011/12 fi nancial year as per the following dates:

• 21 May 2011.

• 29 July 2011.

• 25 November 2011.

• 22 March 2012.

Audit Committee meetings were attended by external auditors, the Chief Executive Offi cer, the Chief Financial Offi cer, The Head of Internal Audit, and relevant corporate offi cials. The Chairperson of the Audit Committee reports on the activities of the committee to the National Executive Committee on a regular basis. All members give a declaration at each Audit Committee meeting of any personal or fi nancial interests that may confl ict with their duties in this regard.

For the period under review, the audit committee has fulfi lled all the requirements in terms of its responsibilities and functions as per the Audit Committee Charter, PFMA and Treasury Regulations.

4.5 AUDIT COMMITTEE


The Internal Audit Function of SALGA was established in terms of PFMA and the Treasury Regulations. The Head of the Internal Audit Function reports administratively to the Chief Executive Offi cer and functionally to the Audit Committee to ensure its independence. The purpose, authority, and responsibilities of Internal Audit function are formally defi ned in the Internal Audit Charter which is adopted by the Audit Committee and the National Executive Committee.

The Charter grants the Internal Audit Function access to the records, personnel and physical properties relevant to the operations of the organisation, as appropriate and as required. In terms of the Charter, Internal Audit is responsible for developing and executing the internal audit plans in order to provide assurance to management and the Audit Committee on the system of internal control, risk management and governance.

The purpose is to assist management to identify weaknesses in the aforementioned systems within SALGA. It is also to provide recommendations on how to deal with these weaknesses. This is done primarily by auditing systems and processes, as per the internal audit plan, issuing reports detailing the results of the audits to management and the Audit Committee. The approach and the methodology are based on the International Standards of the Professional Practice of Internal Auditing (ISPPIA) and are in accordance with the Treasury Regulation 27.2.6.

The annual internal audit plan for the period 2011/12 was reviewed and approved by the Audit Committee during March 2011. Input from management and the Auditor-General were considered during the compilation of the audit plan to ensure buy-in from management and to facilitate the co-ordination of audit work. The Annual Audit Plan for the period ending 31 March 2012 was fully executed except for audits that could not be performed due to expected changes to the SALGA constitution, etc. Such audits were closed in consultation with the Audit Committee.

4.6 INTERNAL AUDIT


4.7.1 INTRODUCTION

SALGA is committed to principles and values of good corporate governance of which sound risk management is a cornerstone. In this regard, SALGA endeavours to fulfi l the requirements of the Public Finance Management Act (PFMA). Risk Management is not only seen as a compliance issue but a business imperative.

The National Executive Committee (NEC), through the Audit and Risk Management Committee, is ultimately responsible for the total risk management process as well as internal controls within the organisation. The Audit and Risk Management Committees assists the NEC in fulfi lling its oversight role. The NEC approves the Risk Management strategies and policies.

Annual risk assessments are conducted to both fulfi l and, insofar as possible, exceed the requirements of the PFMA. Mitigating action plans are consistently being monitored and adapted. Periodic feedback and reports are provided by management to the Audit and Risk Management Committee on risk management processes as well as new risk exposures.

4.7.2 ENTERPRISE-WIDE RISK MANAGEMENT (ERM) FRAMEWORK

An Enterprise Wide Risk Management (ERM) framework that is aimed at effectively identifying, evaluating, and managing risk exposures within acceptable or prudent levels has been adopted. The SALGA risk management framework has been aligned to the PFMA, King III, Committee of Sponsoring Organisations of the Treadway Commission (COSO), and other international codes of best practice.

Furthermore, various supporting risk management governance structures are in place, such as the National Executive Committee (NEC), Audit Committee, and the Risk Management Committee to further strengthen the ERM process. Our focus this year included the following:

• Strengthening the risk maturity within the organisation by harnessing our risk management culture,

• Adoption of the risk management policies and strategies;

• Rigorous monitoring of action plans to mitigate identifi ed organisational risks. This process is also incorporated and managed through the performance management process.

4.7.3 MAJOR RISKS

For the period under review, the organisation was faced with the risk of Human Capital. Inadequate human capital poses a threat to the operations and performance of SALGA if this risk is not carefully managed.

This risk is related to the measurement of gap between the goals of the organisation and the skills of the workforce as well as the ability to attract and retain relevant skills.

4.7 RISK MANAGEMENT


4.8.1 BACKGROUND

The National Executive Committee of SALGA decided on 5 October 2007 to establish the Performance Management and Remuneration Panel (The Panel):

a. The Panel is required to review and ensure the proper application of organisational performance management policy and procedures, remuneration philosophies, strategies and other policies aligned to the approved organisational strategy and objectives of SALGA. In so doing, the aim is to ensure Good Governance and Compliance with the Constitution of the Republic of South Africa, Section 169 (Act 108 of 1996); Constitution of SALGA (as amended in April 2007); Organised Local Government Act, Section 2(1) (Act 52 of 1997); White Paper on Local

b. The Panel must ensure that the purpose of the SALGA Constitution; Five-Year Strategic Plan; Business Plans and Institutional Scorecard, which is to attract, retain, improve performance, assess performance, motivate, and reward SALGA staff by the application of Good Human Resource Practices, Performance Management System, Policy and Procedures, the payment of fair, competitive and appropriately structured remuneration, is achieved on a consistent basis.

c. The Panel is empowered to consider and make recommendations to the National Executive Committee on all matters relating to performance management and remuneration. All decision making powers with regard to performance management and remuneration vest with the National Executive Committee.

d. The Panel has oversight over the Performance Management Unit on the implementation of Performance Management System, Policy and Procedures as well as the remuneration policies and practices of SALGA. In this context, policy frameworks and policy decisions taken by Performance Management Panel and Remuneration Committee shall be binding to all administrative structures of SALGA.

e. The Panel present reports to and receive feedback from the SALGA National Offi ce Bearers and Executive Committees on all matters relating to their work.

4.8.2 COMPOSITION OF THE PANEL AND REPRESENTATION OF THE NEC ON THE PANEL

The Panel is comprised of 10 members, including four NEC members elected by the National Executive Committee and six independent members from the private sector and the Chief Executive Offi cer of SALGA. There is a balanced representation on the Panel to ensure that:

• A quorum can be achieved at Panel meetings, and

• The substantial work can be done by the Panel and be completed successfully.

4.8 INDIVIDUAL PERFORMANCE MANAGEMENT


The table below lists the Panel members for the period under review (2011 - 2012):

NO. NAMES OF PANEL MEMBERS BACKGROUND

1 Cllr T. Manyoni SALGA National Chairperson

2 Cllr N. Hermans SALGA Deputy Chairperson – National Offi ce Bearer

3 Cllr N. Meth SALGA Eastern Cape Provincial Chairperson

4 Cllr S. Mashilo Chairperson of the HR Development and Collective Bargaining Working Group

5 Mr Michael Olivier

• External Panel Member and current Chairperson of the Panel.

• Expert in Strategy; Performance Management; Remuneration and Governance

• Managing Director of Synchrona Leadership Strategies.

• Chair of Remuneration Committee and Member of Human Resource Committee: South African Revenue Service (SARS).

• Member of the Board and Chair of the Human Resource and Remuneration Committee: Harith Fund Managers (Pty) Ltd

• Member and Advisor of the Remuneration Committee and Board: Discovery Holdings Ltd.

• Chairperson of the Remuneration Committee: Financial Intelligence Centre (FIC)

• Member of Remuneration Committee: Interfront (Pty) Ltd

6 Mr Zwelibanzi Mntambo

• External Panel Member.

• Expert in Strategy; Performance Management; Remuneration and Governance

• Chairman of Xalam Performance Solutions (Pty).Ltd.

• Trained as a lawyer and holds the degrees LL.B, LL.M (Yale).

• Was Senior Lecturer at the Universities of the Northwest and Natal (Durban).

• Served as Director General of the Gauteng Province.

• Was Executive Director of the Independent Mediation Service of SA (IMSSA).

• Served as chairman of the governing body of the CCMA for eight years.

• Serves on the boards of Eyesizwe Mining (Pty), Mainstreet 333, (Pty), Metrobus (Pty), SA Tourism (Pty), Exxaro Ltd.

7 Ms Elizabeth Dhlamini-Khumalo


• Expert in HR; Governance; Remuneration and Performance Management

• HR Director: Sandvik AB - Southern African Companies & Vice President - Region Africa.

• Previously HR Director for Afrox, Woolworths, SA National Parks Board.

8 Mr Blake Mosley-Lefatola


• Chief Executive Offi cer of SITA.

• Municipal Practitioner and Expert in Performance Management and Remuneration

• Former Chief Executive Offi cer – Gauteng Economic Development Agency (GEDA).

• Previous experience as City Manager, newly appointed DG of DPSA



NO. NAMES OF PANEL MEMBERS BACKGROUND

9 Dr Fazel Randera

• Medical Doctor by Profession:

• Member South African National AIDS Council: Presidency

• Deputy Chair – Resource Mobilisation Committee: Presidency

• Board and Council Member: World Medical Association

• Member of Advisory Committee: Occupational Health and Safety: Department of Labour

• Member of the Compensation Board for Occupational Diseases: Department of Labour Deputy Chair – Private Security Industry Regulatory Authority Department of Safety and Security (Ministerial Appointment).

• Chairman and Trustee: South African Centre for the study of Violence and Oppression.

10 Ms Laura Machaba-Abiodun


• Group CHRO and Strategic Advisor: Alexandra Forbes

• Member of the Remuneration and Human Resource Committee : South African Revenue Service (SARS).

• Former Council Member of Institute of Directors of Southern African and Certifi ed Director

• An international business woman who held various senior and executive positions over two decades in large corporations in the USA and South Africa.

11 Mr Xolile George Chief Executive Offi cer of SALGA

a. Representation of the NEC on the Panel

NEC Members on the Panel hold the responsibility to provide a balanced perspective against the performance of Chief Executive Offi cer of SALGA and the organisation at large. They also provide support and guidance on the understanding of the organisation to external members serving on the Panel to ensure effective and effi cient functioning of the Panel.

The following rationale was used in the determination of representation of the NEC Members on the Panel:

• The National Chairperson of SALGA;

• Representation of the National Offi ce Bearers Committee;

• Representation of Provincial Chairpersons; and

• Representation of Working Groups.

Adequate representation of the NEC on the Panel assists and supports the Panel with the following:

• Maintain the integrity of the performance management system;

• Enhance the functioning of the Panel;

• Ensure that its work can be completed successfully; and



• Ensure that the quorum can be achieved at all future meetings.

• Ensures in-depth input from the local government level.

b. Appointment of external members on the Panel

External members of the Panel were appointed in accordance with the following criteria:

• Expertise in Strategy, Performance Management, Remuneration and Governance, Human Resources, and Finance.

• Sound knowledge of organisational development and change processes; and

• Comprehensive understanding of the functioning of and challenges facing Local Government.

Mr Michael Olivier is the current Chairperson of the Panel appointed by its members from among the external members as determined by Section 2.1.1.1 of the Terms of Reference of the Panel. The Chief Executive Offi cer of SALGA, Chief of Operations, and the Chief Financial Offi cer attend Panel meetings in an ex-offi cio capacity and are responsible for presenting recommendations to the Panel. The Panel functions independently of the management structures within SALGA and endeavours to remain and preserve its objectivity at all times.

The Panel is afforded secretariat services by the Offi ce of the CEO.

c. Term of offi ce of the Panel

Constitution and term of offi ce for members of the Panel is for a period of three years, subject to annual review at the end of each fi nancial year. The term of offi ce of the current committee ended in April 2011. However, this overlapped due to the transition as a result of the 2011 Local Government Elections. SALGA had to prepare for municipal elections and thereafter for the SALGA Provincial and National Conferences to elect the new SALGA leadership.

By agreement of the NEC, the term of offi ce of the external members of the Panel was extended until September 2012 to ensure continuity of the process of improving performance management application and to provide input to the newly elected NEC on the cascading of performance management scorecards within SALGA to refl ect the new strategies and plans approved by the NEC.

4.8.3 EVOLVING PROCESS AND ROLE OF THE PANEL

Since the inception of the Panel and the major Panel Induction Workshop held in April 2008, the Panel has addressed the following priorities towards assisting SALGA in improving Corporate Governance and Internal Functioning.

a. Overall Reviews:

The Panel conducted the following:

1) Regular reviews of the Performance Management Policy, Procedure, and application framework at SALGA – revisited as necessary to test relevance and to enquire how it is being applied.



2) Regular reviews of the SALGA Remuneration Philosophy, Policy and detailed structure, in the context of salary reviews and structures. This includes checking on the consistency of job evaluation and the relationship between role size and actual pay levels.

3) Regular reviews of the SALGA Five-Year strategy (as regularly updated) and related annual business plans, including the impact on SALGA of the Local Government Turnaround Strategy. This is to ensure congruence between the Strategy and the Performance Scorecards for the Organisation, the CEO and the direct reports of the CEO.

4) Detailed reviews and restructuring of the SALGA corporate scorecard for the year 2010/2011 combined with a review of the performance targets set for the 2010/2011 fi nancial year.

In all of the above, the Panel provided considerable input and coaching of the CEO and the executive team to ensure that the approach of SALGA and the execution of Performance Management refl ects:

• Strategic rigour in line with best practice in both the public and private sector

• Clear alignment of key performance areas and performance indicators from the strategy through to the individual performance scorecards of the CEO and all of his direct reports.

• The focus has been to ensure that the evolving strategy and the resultant organisational and individual scorecards contain KPAs and performance indicators that are measurable and that relate to the real impact of the efforts of SALGA at local and national government levels.

b. Performance

In the context of the above, the Panel has reviewed (and frequently suggested improvements) to the performance scorecards at the Corporate, CEO, and Senior Executive levels. The Panel has then signed off on these for submission to the CEO and the NEC respectively.

The Panel oversees the Performance Assessment process for all direct reports to the CEO and monitors this: (a) as input to annual reward decisions and (b) as learning and coaching for the individuals concerned in aligning performance with strategy.

The Panel directs the Performance Assessment of the CEO by reviewing evidence and submissions relating to all of the Key Performance Areas of the EO and related KPIs and by interviewing and coaching the CEO in intensive sessions. These reviews are done mid-term and at year-end. In all cases, the Panel assesses any requests for deviation and makes its recommendations regarding these to the NEC through the Chairperson of SALGA.

c. Remuneration

The Panel conducts an annual review of all salary adjustments and the overall increase budget and makes recommendations to the CEO regarding the fi nal outcome thereof. In doing so, the Panel reviewed the integrity of the Remuneration Policy and framework, and has monitored the application thereof.

The Panel reviews all annual performance bonus recommendations and calculations, as well as salary levels for all roles and submits its fi nal recommendations to the CEO for lower levels and to the NEC via the Chairperson of SALGA for the CEO himself and his direct reports. In all cases, the Panel assesses these in the light of:



• Affordability

• Overall assessment of organisational performance

• Consistency of adherence to approved policy

• Managing of anomalies and requests for interim increases

• And adherence to objective job evaluation.

4.8.4 COMMENTS ON PROCESS AND PROGRESS

The Panel has spent much of its time in reviewing and coaching the CEO and his direct reports on how to approach and manage performance more strategically and effectively. It is clear that the direct reports continue to need considerable support and further coaching from the Panel to enable SALGA leadership team to reach the right levels of good practice in performance management that is necessary to support the success of SALGA.

As SALGA endeavours to cascade performance management down into the organisation, there will be a need for SALGA to:

o Properly capacitate the Performance Management Unit.

o Provide extensive coaching and training at all levels of the organisation

The Panel has continued to advocate for and lead in the institutionalisation of performance management in an effort to advance the Corporate Governance and Internal Functioning of SALGA. The Panel commends the management and administration of SALGA, particularly the CEO for the excellent progress regarding performance management matters within the organisation. The Panel further recognises several factors relating to the leadership of the CEO, perseverance and development of a strong management in guiding the organisation.

During the period of its existence, the Panel found the following points to be positive:

• The CEO, Senior Executives, and the Performance Management Unit have made good progress in improving the focus and objectivity of the Performance Management process within SALGA;

• The Panel has spent much of its time in reviewing and coaching the CEO and his direct reports on how to approach and manage performance more strategically and effectively;

• Considerable support and further coaching from the Panel will be needed to enable the SALGA Executive Management Team to reach the right levels of good practice in performance management that is necessary to support the success of SALGA.

4.8.5 SPECIFIC OVERSIGHT

The Panel has conducted a range of oversight activities and has made various decisions:

• Approval of performance agreements and scorecards of the CEO and Senior Executives for the fi nancial year.



• Current review of performance scorecards for the fi nancial years as part of the process to ensure alignment with the new SALGA strategies and plans’

• Correction of salary anomalies of SALGA employees and alignment in terms of the current approved salary framework at each annual review of remuneration practice.

• Job grading and alignment of salaries of SALGA employees in terms of the proposed salary framework – monitoring consistent application.

4.8.5 SPECIFIC CHALLENGES

The key challenges facing SALGA, and as a consequence also facing the Panel in its exercising oversight of Performance Management and Remuneration, included:

1. Managing the evolution and constant improvement in the management of performance:

a. The Performance Management policy and framework was launched essentially at the time the Panel commenced its term of offi ce.

b. Recognising that Performance Management is always a “work in progress” and will improve yearly if the process is diligently applied, oversight is applied and if the CEO and his direct reports are regularly coached and supported in improving each of the following aspects of Performance Management:

i. Building logical scorecards from the strategy each year and ensuring that these can be cascaded.

ii. Ensuring that Key Performance Indicators and Targets are set that can be measured, assessed and cascaded.

iii. Ensuring that coaching occurs at regular intervals so as to monitor real performance during each year.

c. Ensuring that the fi nal performance scores for each of the direct reports of the CEOs were consistent with actual performance.

d. Conducting rigorous performance assessment and coaching sessions with the CEO to cover his performance as well as that of SALGA.

2. Recognising the transition from 2008 to 2011 whereby SALGA has moved from “getting its house in order” and instituting internal structures and governance to focusing on how it achieves and then measures its own real impact at municipal and national level. These measures represent clear indicators of development and policy impact in terms of the SALGA mandate and strategy. Thus the evolving focus of performance management must be on the effectiveness of SALGA as an organisation.

3. Remaining cognisant of the constraints that the current funding model and approaches imposes on its ability to build and maintain its own capacity and then to deliver capacity effectively at the local government level.

4. Providing input to the newly-elected NEC on performance and remuneration issues within SALGA.



4.8.7 GOING FORWARD

The Panel believes that it is incumbent on SALGA and the Panel itself to assist in the induction of new Panel members and/or a new Panel altogether, as the NEC decides, once a new Panel is appointed later in 2012.

A special meeting was held between the external members of the Panel and the Chair of the NEC and NEC representatives in Mangaung on 27 March 2012 to provide the NEC with background on the role of the Panel and to discuss the way forward for the balance of 2012.



As per the SALGA governance framework, the schedule of governance meetings at a provincial and national level facilitates the participation of all members in the governance and policy development/mandating processes of the organisation and provides for oversight on the implementation of the SALGA business plan. The successful implementation of the schedule of meetings therefore facilitates the effective, coordinated and transparent governance of the organisation.

4.9.1 SALGA GOVERNANCE STRUCTURES

In an effort to improve the coordination and alignment of the governance structures of SALGA at a provincial and national level, the SALGA National Members Assembly (NMA) of March 2008 adopted the SALGA governance framework. The framework allows for the effective consultation, mandating and reporting between structures and further allows for effective decision making by SALGA. The schedule of meetings allows for the National Executive Committee (NEC) to convene every two months and for Provincial Executive Committees (PECs) and national and provincial working groups to convene in-between meetings of the NEC.

4.9 SALGA GOVERNANCE STRUCTURES/MANDATING FRAMEWORK


4.9.1.1 SALGA National Conference

SALGA NATIONAL CONFERENCE

Date of Conference 29 SEPTEMBER TO 1 AUGUST 2011

Venue DURBAN INTERNATIONAL CONFERENCE CENTRE

The SALGA national conference is the highest decision-making body of the organisation and is held every fi ve years following the local government election. Chief among the powers vested in the national conference are to elect offi ce bearers; endorse the appointment of provincial nominees to the National Executive Committee (NEC); and approve the strategic programme and business plan of SALGA for the period up to the next conference.

The national conference is also empowered to consider the audited fi nancial statements of the previous year, approve the organisation’s budget, and review the fi nancial performance of SALGA. The national conference further presents an opportunity for local government leaders to debate issues, review and adopt strategies and plans and to seek better methodologies to optimise municipal service delivery.

SALGA held its National Conference under the theme:

“Building Municipal and Social Cohesion for quality and sustainable services: 2011 and beyond”

All 278 South African municipalities convened at the Durban International Convention Centre from 29 August to 01 September 2011. The objectives of the conference were to:

1. Refl ect on the progress made and challenges faced by the sector during the last term;

2. Critically examine current challenges facing the sector and recommend appropriate mechanisms to address the same Adopt Audited fi nancial statements in respect of the 2009/10 and 2010/11 fi nancial years;

3. Approve the programme of action, business plan/budget of SALGA as approved by the NEC for the 2011/12 fi nancial year;

4. Review the organisational fi nancial performance of SALGA;

5. Elect members of the National Executive Committee; and

6. Establish/review the oversight bodies of SALGA as may be required by law.

The National Conference was attended by approximately 2 000 delegates including the Minister for Planning, Honourable Trevor Manuel representing the Presidency; the acting Minister for Cooperative Governance and Traditional Affairs, Honourable Nathi Mthethwa, and the Premier of Kwazulu-Natal, Dr Zweli Mkhize, Deputy Minister Yunus Carrim, Deputy Speaker of parliament, Honourable Nomaindia Mfeketho, Chairperson of the Portfolio Committee on CoGTA, Mr Letchesa Letsoli, the Chairperson of the Independent Electoral Commission, Dr Brigalia Bam and members of the Kwazulu-Natal Provincial Cabinet, provincial government, key government agencies as well as representatives of the private sector, traditional leaders and other organs of civil society.

The programme of the Conference included a Round Table Public Debate, Seven Commissions focussing on the Stable Municipal Governance, Councillor Support, Municipal Service provision, Climate Change, Community Development, LED and Planning, Municipal Finance, and Labour and Capacity building and addressing issues of corruption in the public sector.

The Conference also included exhibitions, excursions and site visits and a parallel side event focussing on Climate Change and COP17. The outcomes of the conference, in addition to a newly elected leadership, is a set of resolutions that will guide the programmes and functioning of the organisation for the next fi ve years



4.9.1.2 National Executive Committee and Executive Management Meetings

The NEC meets at least once every two months. The venue of the meetings is rotated among the nine provinces to allow for engagements with municipalities in the respective provinces visited. In addition to developing and reviewing the organisation’s strategic priorities and activities, the NEC also adopts SALGA’s administrative policies. The NEC exclusively determines the SALGA representation in all intergovernmental relations (IGR) structures and other fora. Certain powers and functions of the NEC have been extended to provincial executive committees (PECs).

NEC MEETINGS

22 July 2011

23 August 2011

29 August 2011

20 September 2011

18 November 2011 (Lekgotla)

27 January 2012

28 March 2012

4.9.1.3 National Working Groups Meetings For 2011/2012 Financial Year

The SALGA working groups are responsible for developing policies, strategies, and programmes to address critical local government issues. Through the deliberations of these provincial and national structures, SALGA obtains a mandate from its members on all issues of relevance to the local government sector. The Working Groups are also responsible for facilitating the following:

• Cooperative governance between the spheres of government as mandated by the NEC or the PEC, respectively.

• Consultation, coordination, and participative decision-making between SALGA and its provincial and municipal members.

The executive committees at the national and provincial levels must establish working groups to deal with the implementation of SALGA’s programmes and any other matters of concern to local government. Competencies of national and provincial working groups:

• Within the context of the SALGA strategy and business planning process, to recommend to the NEC (as in the case of the national working groups) or the PEC (in the case of provincial working groups) short-, medium- and long-term programme priorities.

• To monitor the process of national policy research, conceptualisation and implementation.

• To identify potential problems, confl icts or gaps in current or new policies, strategies and implementation programmes affecting the sector and contribute to fi nding an appropriate solution.

• To make policy recommendations to the NEC or the PEC (as applicable) and submit regular reports on progress on programme implementation.

• To ensure that working group members participate effectively in political forums and intergovernmental structures.



The NEC determines the number of working groups based on, inter alia, the key functional areas of local government. Accordingly, the NEC then clusters the functions of the working groups at national and provincial level to facilitate strategic alignment.

Prior to the SALGA National Conference and NEC LEgptla held in August and November 2011, SALGA had established six national working groups, which were chaired by an elected NEC member as follows:

• Economic Development, Planning and Environment - Cllr B Mahlangu

• Municipal Finance and Corporate Administration -Cllr S Molokoane- Machika

• Social Development, Health and Safety - Cllr F Maboa- Boltman

• Municipal Services and Infrastructure - Cllr W Johnson

• Human Resource Development - Cllr S Mashilo

• Governance, Intergovernmental Relations and International Relations - Cllr J Matlou

The national working groups are mirrored at the provincial level to ensure synergy and coordination of the issues. The consolidation of the perspectives of the provincial working groups by the national working groups, underpins the process of arriving at a mandated position for SALGA to articulateWorking groups were reconstituted after the National Conference at the NEC Lekgotla held in November 2011.

Nine working groups were established at a national level and eight at a provincial level. The following working groups have now been established and replicated at a provincial level, apart from the one dealing with issues of councillor support and welfare.

1. Economic Development and Planning

2. Climate Change, Environmental affairs and Sustainability

3. Municipal Finance

4. Community Development

5. Municipal Trading Services

6. Municipal Infrastructure Planning

7. Human Resources Development and Collective Bargaining

8. Governance and Intergovernmental Relations

9. Councillor Welfare and Support and International Relations



The chairperson of the national working groups have been appointed as follows:

• Cllr D Mazibuko: Economic Development and Planning Working Group

• Cllr F Maboa-Boltman: Community Development Working Group

• Cllr C Neethling: Municipal Trading Services Working Group

• Cllr BE Moloi: Municipal Infrastructure Planning Working Group

• Cllr S Mashilo: Human Resources Development and Collective Bargaining Working Group.

• Cllr J Matlou: Governance and Intergovernmental Relations Working Group.

• Councillor Welfare and Support and International Relations Working Group (from the W Cape, pending the outcome of the co-option process).

• Climate Change, Environmental affairs and Sustainability Working Group (from E Cape pending the outcome of the co-option process).

• Municipal Finance Working Group (Cllr S Pillay who has been, subsequently, co-opted onto the NEC).

During the reporting period, the national working group meetings took place as follows:

DATE WORKING GROUP

20 February 2012 Human Resource Development and Collective Bargaining

22 February 2012



Municipal Finance and Corporate Administration

23 February 2012


Governance, Intergovernmental Relations and International Relations/TASK TEAM


24 February 2012


Governance, Intergovernmental Relations and International Relations

Economic Development and Planning

20 March 2012 Municipal Institutional Development



It should be noted that during the period under review:

Working group meetings were not convened as per the SALGA constitution, due to the municipal elections held in May 2011, and subsequent reconstitution of the SALGA governance structures.

1. The 2011 Local Government Elections had the following impact on the convening of meetings;

1.1 During the period, from the announcement of the election date and the actual elections, i.e. February to May 2011, the local government sector including councillors and municipalities were primarily and almost only focused on preparations and campaigning for the said elections and it was therefore not possibly to convene meetings or achieve a quorum when meetings were convened during this period.

1.2 From the election date (25 May 2011) to the point of convening SALGA provincial and national conferences (July to September), SALGA was in a leadership transition as result of non-returning councillors. The SALGA Constitution makes provision for the convening of provincial conferences (within 60 days of elections) and National Conference within 90 days of elections, to re-constitute the governance structures (PEC and NEC) of the organisation.

1.3 With regard to working groups and working group chairpersons; it is only after the convening of Provincial Conferences and National Conference that Working Group Chairpersons are appointed and Working Groups are re-constituted.

1.4 The appointment of Working Group Chairpersons was only effected at the respective Provincial Makgotla, which were held in October and November 2011

2. In addition to above the NEC Lekgotla, convened from the 16 to18 November 2011, resolved to change the number of working groups from six to eight at a provincial level and nine at a national level, with simultaneous changes to the functional areas of the new working groups.

3. The above circumstances has resulted in meetings of governance structures not being convened as per the SALGA Year-planner, specifi cally as it relates to the convening of working group meetings at a national and provincial level.

4. It should be noted that one of the objectives of the SALGA Governance Framework and the scheduling of meetings is to ensure that the organisation, consults its membership as widely as possible in the development and implementation of policies and programmes.

This objective was achieved during the 2011-12 fi nancial year through the provincial and national conferences, as the highest decision making bodies of the organisation. The conference and lekgotla processes in 2011 has resulted in a new strategic plan for SALGA as well a new working group confi gurations at a national and provincial level, that has started guiding the convening and functioning of meetings in 2012.

4.9.2.2 PROVINCIAL GOVERNANCE MEETINGS FOR 2011/2012 FINANCIAL YEAR

Each SALGA Provincial Offi ce had a Provincial Members Assembly during the year under review as per the SALGA Constitution where the provinvial leadership (PEC) was elected:



SALGA EASTERN CAPE

SALGA EASTERN CAPE PROVINCIAL CONFERENCE

DATE OF CONFERENCE 20 to 22 JULY 2011

VENUE NELSON MANDELA METRO

The conference was attended by 42 municipalities with 208 delegates from the municipalities and 32 stakeholders. The conference was addressed by the MEC of the Local Government and Traditional Affairs, Honourable Qoboshiyane, where he emphatically highlighted that the mandate of councillors and offi cials is to deliver services in a manner that encourages developmental government responding to the needs of the people, a local government that allows people to participate in full council meetings, ward committee meetings as well as IDP Processes.

The MEC also urged the conference to be a platform to discuss how best the Eastern Cape municipalities can manage their fi nances in a way to ensure potent fi nancial integrity in municipalities, to ensure proper expenditure, and ensure effective fi nancial controls and systems in all Eastern Cape municipalities. The Secretary of the ruling party, Mr Oscar Mabuyane, also addressed the conference highlighting priorities of the ruling party. These are building of local economies to create more employment and sustainable livelihoods. He urged the conference to emerge with a very clear programme for job creation at a local level, guided by the New Growth Path.

The LED should focus more on unlocking development potential through systematically building productive capability in sectors where there is a competitive advantage. Focus should be on leveraging signifi cant public (including SoEs and DFIs) and private sector resources to the underdeveloped parts of the province. He also emphasised that a stable local government is a pre-requisite for building viable municipal economies and sustainable communities.

The SALGA Eastern Cape Chairperson also gave a political overview of the association highlighting the diminished powers of PEC in matters like staff appointments, remuneration, access to fi nances, and other related staff career-incidents due incorrect implementation of centralisation. The current arrangement of centralisation is structured in the manner that the PEC cannot recommend nor prompt a review of remuneration levels of staff.

He also alluded the municipalities in their support with regard to SALGA programmes. The Chairperson also applauded the good working relations between SALGA and the MEC for DGLTA. The Provincial Executive Offi cer gave some highlights on the organisational performance, development of partnerships with different organisations, participation on IGR structures, and the progress report of SALGA Eastern Cape Directorates. The conference resolved on a number of issues which will assist local government to serve the community by delivering services to all the Eastern Cape Communities.

PEC MEETINGS IGR WORKING GROUP MIS WORKING GROUP

Dates Dates Dates

15 July 2011 23 August 2011 16 September 2011

2 August 2011 1 February 2012 14 February 2012

27 September 2011 30 March 2012

6 November 2011

12 January 2012

8 February 2012

15 March 2012



MID WORKING GROUP LED WORKING GROUP COMMUNITY DEVELOPMENTWORKING GROUP

Dates Dates Dates

02 December 2011 28 February 2012 23 June 2011

24 February 2012 07 October 2011 20 September 2011

31 January 2012

MUNICIPAL FINANCEWORKING GROUP

Dates

22 September 2011

23 February 2011

SALGA FREE STATE

SALGA FREE STATE

DATE OF CONFERENCE 15 to 16 AUGUST 2011

VENUE BLACK MOUNTAIN HOTEL, THABA NCHU

MANGAUNG METRO MUNICIPALITY

The 5th Provincial Conference of SALGA Free State held from 14 to 16 August 2011 at Black Mountain Hotel, Thaba Nchu in Mangaung Metropolitan Municipality proceeded over two days and was attended by more than 136 delegates from 24 member municipalities.

The conference had various presentations made by guests, SALGA Free State, and SALGA National which covered:

• 2011 Statistics South Africa Population Census

• SALGA Free State Organisational Report

• Proposed SALGA National Constitutional Amendments

• Proposed SALGA Free State Constitutional Amendments

• 2011/12 Business Plan and Budget and Audited Financial Statement 2010/11 by SALGA National

The provincial conference was attended by delegates from 24 member municipalities in the province, government representatives, political organisations, and formations including other civil society structures, representatives from both National SALGA, and other provincial offi ces.

The main speakers at the conference comprised of the Free State Premier, MEC Cooperative Governance, Traditional Affairs and Human Settlements, SALGA NEC representative, SALGA CEO, and Executive Mayor of the hosting Municipality. Municipalities used the Provincial Conference to review their goals and refl ect on their achievements.



The Department of Health presided over the candle-lighting ceremony and indicated that the ceremony is primarily linked to the HIV/AIDS pandemic. For the purpose of the ceremony, he requested three guests to assist him in lighting the three candles (white, red, and yellow). The hosting Mayor, the Executive Mayor of Mangaung Metropolitan Municipality welcomed all delegates and guests to the Conference.

He stated that Thaba-Nchu is a place of birth of well-known icons such as Dr. Khuzwayo and Father Clairehood. SALGA Free State received the message of support from Cllr. B Mahlangu who was representing SALGA NEC. In her opening remarks Cllr. Mahlangu provided a brief background of the word democracy. She stated that on 18 May 2011, people went out in numbers to express their democratic will and the results are indicative of overwhelming support for the principle of democracy.

The MEC of Co-operative Governance, Traditional Affairs and Human Settlements mentioned that her Department assesses and checks itself on a constant basis in terms of the work it is supposed to discharge in municipalities. She was confi dent that the Department has assisted a lot of municipalities that needed support. The keynote address was delivered by the Premier of the Free State. In his opening remarks, the Premier seized the space to welcome delegates, guests, media, and sponsors to the conference. He stated that recently the provincial leadership visited Free State Bursary holders in KwaZulu-Natal, Western Cape, and Gauteng.

There was a presentation on the CENSUS 2011 that Statistics South planned to undertake in the province in October 2011. The presenter indicated that the population census consists of collecting, compiling, evaluating, and publishing demographic information collected from the households. The Deputy Chairperson of SALGA Free State PEC, Cllr. Dr. Mzwangwa presented the organisational report of the Provincial Executive Committee to Conference.

Cllr. Dr Mzwangwa commenced by highlighting that the report is presented at a time when SALGA has just moved into the third term of its developmental local government after successful local government elections held on 18 May 2011. He stated that the report is presented at a historic moment when women’s month was celebrated in the country.

He indicated that the conference was supposed to have been held within sixty days after the local government elections. However, owing to the visit of the NCOP to the province the date was changed.

The presentation on the proposal SALGA constitutional amendment included the following areas:

• Defi nitions – Working Groups

• Role and Mandate of SALGA (new article), members’ compact (new article), code of conduct (new article)

• Membership fees and levies, Participation and voting (new article)

• National Members Assembly

• National Executive Committee

• Working Groups (new article)

• The administration (new article)

• Provincial Executive Members

• Constitutional Amendments

• Rules of Procedure (new article)



After presentations, the conference broke into six commissions to discuss the following programmatic areas:

• Commission 1: Governance and intergovernmental relations

• Commission 2: Municipal infrastructure services

• Commission 3: Municipal fi nance and internal administration

• Commission 4: Municipal institutional development

• Commission 5: Community development

• Commission 6: Economic development and planning

PEC MEETINGS Municipal Infrastructure Services WORKING GROUP

Community Development WORKING GROUP

Dates Dates Dates

30 September 2011 02 March 2012 09 December 2011

11 November 2011 09 February 2012

24 January 2012

08 March 2012

Governance and IGR WORKING GROUP

Municipal Institutional Development WORKING GROUP

Municipal Finance WORKING GROUP

Dates Dates Dates

21 February 2012 29 November 2011 06 December 2011

03 February 2012 08 February 2012

02 March 2012 Technical

Economic Development and Planning WORKING GROUP

Dates

13 October 2011

10 February 2012



SALGA GAUTENG

SALGA GAUTENG PROVINCIAL CONFERENCE


VENUE VELMORE HOTEL

Following the general local government elections which were held on 18 May 2011, the National Executive Committee resolved that National Conference to be held on 29 August to 02 September 2011 in KwaZulu Natal province. Furthermore, the NEC resolved that provincial conferences should be convened between July and August 2011. In light of the above SALGA Constitutional prescripts, the Provincial Executive Committee resolved that the provincial conference be convened on 28 and 29 July 2011 at Velmore Hotel- Erasmia in the City of Tshwane. The objectives of the provincial conference were to:

• Elect the members of the Provincial Executive Committee for the new term of offi ce

• Establish and review the SALGA oversight bodies as may be required by law

• Consider audited fi nancial statements in respect of the 2009/10 fi nancial period

• Approve the business plan and the budget of SALGA Gauteng for 2011/12 fi nancial year, and

• Review the fi nancial performance of SALGA.

Over and above the set objectives, the conference also considered other pertinent key challenges and policy development relevant to the developmental local government. Furthermore, different stakeholders presented messages of support to SALGA and provided guidance on how SALGA could perform better in improving the lives of its communities.

VELMORE DECLARATION (29 JULY 2011)

We, the members of SALGA-Gauteng, gathered here on 29 July 2011, on the occasion of the 3rd SALGA-Gauteng Provincial Conference, guided by our mission to be at the cutting edge of service delivery and further guided by the theme ‘’ Reigning the Quest for Municipal and Social Cohesion towards a better standards of living.’’ Notwithstanding the challenges faced by member municipalities within the sector, and acknowledging the recent local government election which has ushered new leadership, hereby declare to note the following key resolutions:

• That SALGA shall engage sector departments on the development of a structured planning approach.

• That SALGA shall partner with the provincial government to form a Gauteng City Region Council.

• That SALGA-Gauteng should take the proposed constitutional amendments to the National Conference as adopted by the Provincial Conference

• That SALGA-Gauteng shall lobby government to review the vertical division of revenue.

• That SALGA shall lobby for the introduction of legislation on business tax at local level.

• That SALGA shall lobby for a resolution of challenges on councillors’ remuneration to be compatible with that of the national and provincial offi ce bearers.

• That SALGA-Gauteng should collect all membership levies and allocate 50 percent to national offi ce, the remainder which shall be used for programme implementation.



• That SALGA shall engage national ministers and MECs on Section 79 committee (including MPACs) chairpersons’ remuneration and recognition.

• That SALGA shall lobby for a review of the role of district municipalities and possibly re-look at the possibility of a single tier system of local government in Gauteng.

• SALGA shall lobby for a single election system at local level.

• SALGA shall lobby for the ability of councillors’ to exercise choice in joining various pension funds.

• That SALGA shall lobby for a fund for the refurbishment of ageing infrastructure.

• Ensure more focus on energy effi ciency and renewable energy in municipalities.

• SALGA should develop a Human Resource Policy Framework to establish norms and standards.

• That the Employee Wellness programme should be extended to ensure a comprehensive programme of EAP.

• Those SALGA co-ordinates with the Department of Public Services and Administration with the view to develop a comprehensive Anti-Corruption Strategy and Peer Review mechanism for local government.

• That SALGA reaffi rms the scares and critical skills strategy done in partnership with Department of Local Government and Housing (DLG and H).

• That SALGA shall partner with a reputable body with a view to professionalise Human Resources in local government.

• That SALGA shall review the current system of appointment of arbitrators and use CCMA arbitrators.

• SALGA shall review the Collective Bargaining Strategy to ensure that the matters pertaining to the bargaining arrangements of Municipal Owned Entities are addressed.

• SALGA should enhance the role of the LLFs and ensure a mutual gains approach in all bargaining processes.

• SALGA shall convene a special workshop in the current fi nancial year to deal with all outstanding collective bargaining matters.

• SALGA should pursue the possibility of establishing an Accreditation model to be managed by an independent body for the determination of Institutional Capacity of municipalities to determine the viability of municipalities.

• SALGA should draft policies to facilitate the implementation of the Municipal Systems Amendment Act.

• SALGA should increase capacity to ensure education for both men and woman on gender mainstreaming.

• SALGA should advocate for municipalities to be funded to deal with effects of immigration.

• SALGA should encourage mayors to play an active role in AIDS Councils.

• SALGA should encourage municipalities to implement national imperatives relating to youth development.

• SALGA to advocate for funding for local municipalities planning and responses to disasters and climate change.



• SALGA to advocate for arts, culture, heritage, sports, and recreation programmes that are run through municipalities

• Review of the decision to provincialise primary health care, the province should capacitate municipalities to take their responsibilities of PHC and allocate suffi cient funding for payment of salaries.

• SALGA to assist municipalities to develop local strategies to monitor the implementation of Millennium Development Goals (MDGs).

• SALGA to assist municipalities in the formation of street committees and Community Policing Forums (CPFs).

PEC MEETINGS WORKING GROUP:

Economic and Development Planning

WORKING GROUP:

MID

Dates Dates Dates

8 April 2011 11 November 2011 11 November 2011

27 May 2011 10 February 2012 8 to 9 February 2012

19 August 2011 16 March 2012

23 September 2011

15 November 2011

20 January 2012

WORKING GROUP:Municipal Finance

WORKING GROUP:MIS

WORKING GROUP:Governance and IGR

Dates Dates Dates

11 November 2011 11 November 2011 11 November 2011

3 February 3 February 2012 10 February 2012

WORKING GROUP:Councillor Support and Welfare

WORKING GROUP:MTS

WORKING GROUPClimate change

Dates Dates Dates

10 February 2012 20 March 2012 3 February 2012

WORKING GROUP:Health and Safety

Dates

11 November 2011

3 February 2012



SALGA LIMPOPO

SALGA LIMPOPO PROVINCIAL CONFERENCE


VENUE BOLIVIA LODGE

The conference started with round table discussions on the following topics:

• Municipal audit report

• Municipal debts

• Service delivery challenges

Panel members were:

• CEO of SALGA on teleconference,

• Mr S Nkahle Acting ED

• Prof lJ Tefo, HSRC

• Mr E Muhammed, AG

• Mr J Liebbrandt, PWC

• Mr D Ngobeni, Provincial Legislature

The second day started with a prayer and candle lighting for people living with HIV and AIDS. A leadership talk was done by Dr. Tibane and presentations by the Municipal Demarcation Board, National Planning Commission, following by SALGA reports and commissions. The event was graced by four MECs, executive mayors and mayors, speakers, chief whips, councillors, traditional leaders, and private companies.

The gala dinner was held the same evening as when municipal awards were held. The provincial house addressed delegates, councellors and offi cials won prizes through different sponsorships.

The last day was a report back form commissions and elections for new Provincial Executive Committee members and presentation of the declaration.



PEC MEETINGS WORKING GROUP:COMMUNITY DEVELOPMENT

WORKING GROUP: MUNICIPAL INFRASTRUCTURE and SERVICES

Dates Dates Dates

07 July 2011 05 December 2011 25 November 2011

11 August 2011 27 January 2012 20 January 2012

06 November 2012 27 March 2012

20 January 2012

13 February 2012

WORKING GROUP: MUNICIPAL INSTITUTIONAL DEVELOPMENT

WORKING GROUP: LOCAL ECONOMIC DEVELOPMENT

WORKING GROUP: MUNICIPAL FINANCE and

ADMINISTRATION

Dates Dates Dates


27 January 2012 21 February 2012 17 February 2012

13-14 March 2012

WORKING GROUP: GOVERNANCE, IGR and IRR

Dates

28 November 2011

20 January 2012



SALGA MPUMALANGA

SALGA MPUMALANGA PROVINCIAL CONFERENCE

DATE OF CONFERENCE 02 to 03 August 2011

VENUE LOSKOP DAM, AVENTURA RESORT

The Provincial Conference was held from 02 to 03 August 2011at Aventura Resort Loskopdam, in the Steve Tshwete Municipality. The theme of the provincial conference was as follows:

“Building Municipal and Social Cohesion for quality and sustainable services: 2011 and beyond”.

The converfence was attended by 20 member municipalities who were in good standing in terms of the constitution. As provided in the constitution, all 20 members indicated which of the four delegates in attendance had the voting right. Pixley Ka Isaka Seme local municipality did not attend the conference.

The fi rst day was dedicated to speeches where the keynote address was to be delivered by the Honourable Premier of the Province. However, in his absence, this was done by the Member of the Executive Council for Cooperative Governance and Traditional Affairs, Mr. Madala Masuku. The open session saw a number of presentations being done from StatsSA, SASRIA, Municipal Councillors’ Pension Fund, and the Auditor General.

Following the completion of these presentations, the internal reports conference went into commissions until an hour before the Municipal Excellence Awards. Instead of the normal election process, the conference opted for the submission of a list of thirteen (13) candidates, including the members they are co-opting. Delegates mutually agreed to the list presented.

PEC Meetings Municipal Infrastructure and Services Working Group Community Development Working Group

Dates Dates Dates

20 July 2011 (S) 17 November 2011 17 November 2011

01 August 2011 (S) 06 March 2012

18 August 2011 (S)

26 September 2011 (S)

13 December 2011 (O)

Human Resources Development Working Group Municipal Finance Working Group Governance and Intergovernmental

Relations Working Group

Dates Dates Dates


02 March 2012 09 March 2012 08 March 2012



Economic Development Planning Working Group

Dates

29 November 2012 (Teleconference)

06 March 2012

SALGA NORTHERN CAPE

PEC MEETINGS Community Development Municipal Infrastructure and Services

Dates Dates Dates

23 September 2011

01 November 2011 15 February 2012 16 February 2012

19 January 2012

29 February 2012

ED and P G, IGR and IR MUNICIPAL FINANCE

Dates Dates Dates

13 February 2012 13 February 2012 13 February 2012

MID

Dates

27 October 2012

16 February 2012



SALGA NORTH WEST

SALGA NORTH WEST PROVINCIAL CONFERENCE

Date of Conference 3-4 August 2011

Venue Rustenburg Orion Safari Lodge

Narrative

PEC MEETINGS Community Development Working Group Economic Development and Planning Working Group

Dates Dates Dates

12 April 2011 1 February 2012 9 February 2012

14 July 2011 12 March 2012 16 March 2012

3 August 2011 (Special)

25 August 2011 (Special)

31 October 2011

20 January 2012 (Special)

22 March 2012

Municipal Finance Working Group G, IGR, and IR Working Group MIS Working Group

Dates Dates Dates

8 February 2012 8 February 2012 6 February 2012

15 March 2012 15 March 2012 9 March 2012

HRD and CB Working Group

Dates

6 February 2012

13 March 2012



SALGA WESTERN CAPE

PEC MEETINGS WORKING GROUP WORKING GROUP

Dates Dates Dates

13 April 2012Municipal Infrastructure services 18 October 2012


20 October 2012

08 July 2011Municipal Infrastructure services 01 February 2012


10 February 2012

02 August 2012

18 August 2011Human Resources Management 20 October 2012


19 October 2012

22 September 2011 (Lekgothla)Human Resources Management 15 February 2012


1 February 2012

23 September 2011

4 November 2011Municipal Finance

18 October 2011

Governance and Intergovernmental Relations

19 October 2012

31 Jan 2012Municipal Finance

08 February 2012

Governance and Intergovernmental Relations

20 February 2012

30 March 2012



4.10.1 HR SERVICE DELIVERY OUTLOOK

The Human Resources Unit acknowledges the importance of human capital and the role it plays within local government. “The value of tangible assets such as cash, land and buildings, plant and equipment, and other balance sheet items are substantially less valuable than the intangible assets not carried on the balance sheet”.

The Human Resources Unit has ensured that the value of SALGA is maximised through genuine alignment to the needs of the line functions. The overarching objective of the Human Resources Strategy is to encourage emotional engagement in order to build a high-performing and cohesive team within SALGA. In 2011/12, the following key delivery service areas were prioritised:

• Creating a learning organisation through competency development;

• Capacitate the organisation (line functions) as per the approved organogram

• Attracting and retaining critical skills;

• Enhance HR compliance to the relevant legislation, regulations, and internal HR policies

• Enhancing, respecting, and appreciating diversity;

• Enhancing employee health and wellbeing; and

• Implement organisational development initiatives to enhance employee morale.

Over the past year, the human resource development strategy has demonstrated remarkable resilience in an environment characterised by a number of constraints, such as demand for scarce skills. Given the unique nature of SALGA and the competition for scarce skills within the market, the association still attained a steady growth in the performance of its human resources sustainability.

The HR Unit has met the needs of this constantly evolving environment by ensuring that it employs the right people for the right job at the right time. Every effort was made to ensure that the skills needed to enhance the role of SALGA to Local Government are obtained and retained. The vacancy rate increased from 33 percent in the 2010/2011 fi nancial year to 34 percent in the 2011/2012 fi nancial year. The table below summarises posts on the approved staff establishment of SALGA:

4.10 HUMAN RESOURCES OVERSIGHT REPORT


Ta

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1

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Tabl

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2



NEW APPOINTMENTS

A total of 75 positions were advertised both internally and externally. Different sources were used to identify suitably qualifi ed candidates. Those sources were:

• Newspaper adverts

• Recruitment agencies

• Existing pool of applicants for similar positions.

In an effort to cut on recruitment costs, the HR Unit, in collaboration with the Marketing Unit within SALGA, made use of the SALGA Web site as a point of reference for all positions that have been advertised. What appeared in the print media was only the position titles with potential candidates being referred to the SALGA Web site. The positive returns on the new approach had been savings in the region of approximately 81 percent on recruitment costs.

Where SALGA could have paid approximately R35 000 for the advertisement of each position given that about 75 positions were advertised during the reporting period, SALGA saved approximately R2.1-million from the R2.6-million it could have spent on advertisements alone. This excluded the “placement” costs that would have been claimed by the recruitment agency as the HR Unit also handled the majority of the responses.

During the period under review, approximately thirty four (32) new employees joined SALGA. Five (5) SALGA employees were promoted to the various positions that were advertised. This is in line with the management decision to recognise the internal talent within SALGA. Due to requests received regarding transfers, two (2) employees were transferred to various offi ces. Two (2) employees with scarce and critical skills were retained into the system. The tables below show how SALGA in the fi nancial year 2011/2012 progressed in capacitating line functions:

Table 11

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Active Employees 316 307 305 310

New Employees* 1 4 6 21 32

Terminations 6 13 6 13 38

Vacancies 163 172 165 160

Approved Structure 479 479 470 470

Vacancy Rate 34% 36% 35% 34%

* Includes promotions



Ta

ble

12

NE

W A

PP

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OTA

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ALE

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Man

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and

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en, a

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As

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arch

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2



TERMINATIONS

During the 2011/12 fi nancial year, the services of a total of thirty-eight (38) employees were “terminated” for a number of reasons. Approximately 79 percent of the total terminations pertained to “resignations”, voluntary exit interviews were conducted. Below is a table showing the reasons for terminations:

Table 13

Type of Termination Number of Employees Percentage Against Staff Establishment

Contract Expiry 7 2%

Resignation 30 10%

Ill Health 0 0%

Dismissal 1 0%

Total 38 12%

The most common reason has been resignations with employees opting to leave for better benefi ts. In some instances, exit interviews were conducted with employees leaving the employ of SALGA but this was dependent on the willingness of the employees concerned as their termination reasons varied. There were employees that showed no interest in completing the exit questionnaire that would inform SALGA of any areas of improvement. Where questionnaires were completed, those were utilised to inform the HR strategy going forward. SALGA employs its employees on a fi ve year fi xed-term contract. The renewal of the employment contract is solely at the discretion of SALGA and this is informed by the value-add of the employee concerned. SALGA had to release approximately 2 percent of its employees through non-renewal of their employment contracts while one (1) employee was terminated through the disciplinary process following an act of misconduct. The other employees constituting 10 percent resigned from SALGA. During the reporting period, SALGA renewed 37 contracts of employment. A CEO memo on managing renewal and non-renewal of contracts of employment was developed and circulated to all employees. This was accompanied by the template to renew contracts of employment.The table below summarises contracts of employment renewals for the reporting period:

Table 14

PERIOD NUMBER OF RENEWALS

Quarter 1 15

Quarter 2 9

Quarter 3 12

Quarter 4 1

TOTAL 37



SKILLS DEVELOPMENT

SALGA recognises its strength to develop the knowledge and skills of its people. To keep pace with changes, people need to acquire skills to be productive. As the association grows, the demand for people with more advanced skills expands.

As per the skills development legislation, SALGA submitted a Workplace Skills Plan for 2011/2012 and an annual training report for the period 2010/2011 on the 29 June 2011. A total of 233 PDPs were received during the period under review. A total of 239 employees (unique values) were trained in various areas during the fi nancial year 2011/2012. Some employees attended more than one training, resulting in a total of 374. Three (3) employees were successfully registered with Professional Bodies.A total of 17 employees were awarded an education assistance. It is SALGA policy to deduct equal repayments from employees concerned. From the total number of initiatives stipulated on the Workplace Skills Plan, a total of 25 training initiatives were implemented.

The table below summarises how SALGA has developed its employees:



Ta

ble

15

AC

CR

ED

ITE

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24

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13

00

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The table below summarises the processes undertaken in training:

Table 16

The chart below summarises training implemented. The fi gures include duplicate values, i.e. employees attending more than one training intervention. The services of accredited training providers were used. These were sources from SALGA database:



Ta

ble

17



COMPLIANCE WITH LEGISLATION

In pursuit of ensuring that SALGA is an employer of choice, the HR Unit continues to implement HR Policies to harmonise employment conditions within SALGA. SALGA was characterised by uneven policies and regulations selectively applying to some employees and not others. This was as a result of the merger with Provincial Local Government Associations in the country.

IMPLEMENTATION OF EMPLOYMENT EQUITY WITHIN SALGA

Employment Equity is one of the key focus areas of SALGA as required in terms of the Employment Equity Act, 1998. SALGA has a well-constituted Employment Equity Consultative Forum which plays a signifi cant role in ensuring fairness in employment practices.

The SALGA EECF has four working groups which report on the following matters:

• Training and performance

• Employee wellness and disability

• Recruitment, selection, and disciplinary practices

• Communication and procurement group

The EECF held its quarterly meetings as required by the Act. SALGA is expected to submit the Employment Equity report to the EE Registrar at the Department of Labour. The SALGA EE report was submitted to the Department of Labour during the reporting period as required and confi rmation of receipt and acknowledgement of compliance was received.

All EE-related documents were circulated to SALGA staff in line with the provisions of Section 25 of the EE Act. SALGA has a target of 335 fi lled positions over a period of three years. The table below is a plan summarising its numerical targets:



Ta

ble

18



IMPLEMENTATION OF THE OCCUPATIONAL HEALTH AND SAFETY ACT WITHIN SALGA

Compliance with the Occupational Health and Safety Act is a statutory requirement. The quarterly meetings of the Occupational Health and Safety Committee were held as scheduled. No incidents were recorded. All directorates were issued with OHS charts and OHS handbooks. An accessibility and disability audit was conducted at the national offi ce.

LABOUR RELATIONS WITHIN SALGA

Like any living organisation, SALGA acknowledges that there may be areas of dissatisfaction on the part of employees. Such dissatisfaction is managed through the SALGA grievance procedure. SALGA instills discipline through its disciplinary code, in line with the Labour Relations Act. During the reporting period, SALGA handled the following cases as shown in the table below:

Table 19

Labour Relations Cases

CATEGORY NUMBER OF CASES

Grievances 2

Misconducts 15

Appeals 1

Disputes 3

JOB EVALUATION AND ORGANISATIONAL DEVELOPMENT

SALGA handled cases of employees whose salaries fell outside the approved salary framework. CEO approval was obtained and relevant salaries were corrected accordingly. A remuneration panel report on the cost of living increases for 2011 was developed and submitted to the CEO, All employee salaries were adjusted accordingly. Organograms for certain directorates and provincial offi ces were reviewed and CEO approval on the same was obtained.

EMPLOYEE WELLNESS

The HR Unit facilitated the dissemination of information relating to health awareness to employees at both head offi ce and provincial offi ces through e-mail news bulletins. A memo on International Day against Drug and Illicit Traffi cking was circulated to all staff. This was to create awareness during the SANCA Drug Awareness Week (20 to 26 June 2011). SALGA Western Cape, in the same week, held an information session on signs and effects of substance abuse. About nineteen (19) employees attended the session. Additionally, the HR Unit facilitated presentations on fi nancial management to assist employees in basic fi nancial planning and budgeting. These were attended by twenty (20) employees across SALGA National.

HR Unit facilitated the dissemination of information relating to health awareness to employees at both head offi ce and provincial offi ces through email news bulletins. The focus was on respiratory infections as part of the SALGA awareness programme. A back awareness session was facilitated at both the SALGA Northern Cape and SALGA National. A total of forty one (41) employees attended.



On 09 August 2011, SALGA employees took part in the Castle Walk. In ensuring a healthy workforce, a gymnasium was launched on 22 September 2011. Representatives from Virgin Active were invited to provide an introductory fi tness session.

In relation to fi nancial wellness, the unit coordinated a presentation on tax implications at SALGA North West. A total of nine (9) employees attended.

During the third quarter, a memo on 16 Days of Activism against Abuse of Women and Children was circulated to all staff as well as a CEO message on World Aids Day. The HR Unit facilitated the Employee Wellness Day on 24 November 2011. This was attended by 97 employees. Various health and wellness organisation were invited to share information with employees. These included Sanlam, National Credit Regulator, Men’s Clinic, Lancet Laboratories, and South African Blood Donation Services. Health screens were conducted.

In honour of dedication and hard work, SALGA introduced its Employee Recognition Awards. At its meeting held on 09 March 2011, the Evaluation Committee inter alia resolved that a “representative” panel should be elected to look at all nominations and emerge with the “Best SALGA Employee”.

Terms of Reference for the panel were developed and guidance was provided for them to objectively arrive at a fair conclusion. The awards, themed “Recognising Excellence in SALGA”, were held on 1 December 2011 at SAX Arena in Centurion. All provincial offi ces were represented by at least fi ve employees. Winners of the different categories (CEO Special Award, Best SALGA Employee, and Best Provincial / Directorate Employee) received prizes in the form of sponsored vouchers.

Pursuant to the resolution by the Employee Recognition Evaluation Committee to review the Awards framework, the Employee Recognition Awards Framework was revisited and communicated to all SALGA employees for their inputs and comments.

The SALGA Career Day / Take a Child to work campaign was organised on 23 March 2012 under the theme “Building Future Generations”. This campaign was aimed at exposing girl/boy children to local government with particular reference to the SALGA environment. This would allow them to make informed career decisions that will inspire them to pursue their goals and ambitions. Approximately 20 Grade 11 Learners from The Glen High School visited the SALGA National offi ce. The learners were exposed to a number of directorates to showcase opportunities that the local government sector has for them.



The Human Resources Unit handled the following wellness cases:

Table 21

NO OF CASES HANDLED NATURE OF PROBLEMS PRESENTED SOURCES OF REFERRAL

NO OF CASES REFERRED TO OUTSIDE SERVICE

PROVIDERS

2 Substance/ Alcohol Abuse Supervisor referral 1

3 Bereavement and grief Self-referral and supervisor referral

1

1 Post-traumatic depression Self-referral 1

1 Employee’s child behavioral problem

Employee referral 1

4 Marital/Family-related Self-referral and Supervisor referral

1

1 Family/Personal stress-related problems

Supervisor referral 1

1 Disability Self-referral 0

1 Work stress-related suspension Supervisor referral 1

1 Ill health Self-referral 0

LEAVE MANAGEMENT FOR SALGA EMPLOYEES

Leave forms were continuously received from fi nance and admin managers in the provinces as well as executive secretaries from SALGA National. Provisions of the new policy were implemented. In accordance with the Basic Conditions of Employment Act as well as the SALGA Policy on Conditions of Employment, all leave records were adjusted.

The table below summarises leave taken during the period under review:

Table 22

ANNUAL LEAVE

PERIOD DAYS TAKEN NUMBER OF EMPLOYEES WHO TOOK LEAVE

ESTIMATED COST

Quarter 1 960 221 R 1,329,768.89

Quarter 2 805 205 R 1,095,165.15

Quarter 3 1153.5 220 R 1,609,280.16

Quarter 4 2196 254 R 2,673,130.95



SICK LEAVE

PERIOD DAYS TAKEN NUMBER OF EMPLOYEES ESTIMATED COST

Quarter 1 197 62 R 234,654.12

Quarter 2 209 74 R 297,292.70

Quarter 3 213 71 R 297,895.24

Quarter 4 293.5 75 R 347,498.97



4.11 STAKEHOLDER RELATIONS

The National Executive Committee of SALGA approved the Stakeholder Management Policy in March 2012. The policy will entrust strategic direction and process towards the effective management of stakeholders and the cooperation thereof. It will build towards the capacity of the sector to deliver on its mandate.

SALGA works with many stakeholders towards advancing the interest of Local Government, harnessing collective resources towards enhancing the LG Agenda nationally and internationally.

The policy focuses mainly on the partner category as outlined above. However, it is important to note that other categories are managed more effectively through different processes driven by different directorates within SALGA.

Government, particularly from a legislative and regulatory perspective, is managed through the SALGA IGR Strategy. International Municipal Associations and other international partners are dealt with through the International Relations Strategy, both of which are driven by the Governance, International, and Inter-Governmental Relations Directorate.

SALGA fosters sustainable relationships that are mutually benefi cial to all parties concerned. It therefore structures the benefi ts and associated activities in a manner that stakeholders derive value from the partnership.

Frequent interaction and networking with selected stakeholders is essential to maintain proactive relationships while also managing expectations. A variety of mechanisms such as news briefs and roundtable discussions with key stakeholders have proven to be effective.



In the year under review, highlights include the following:

• SALGA stakeholders played a critical role in providing support for programmes that followed the ushering of the new leadership post the Local Government Elections in 2011. The development of the Councilor Induction Programme and the actual training of the new Local Government Leadership.

• The SALGA National Conference in 2011 and all provincial conferences reliant on the support from the list of stakeholders below who gave support either fi nancially or in kind.

• The multi-stakeholder co-operation for the LG Climate Change Programme contributed to the successful showcasing of Local Government Programmes for Climate Change. It also contributed to the hosting of the Local Government Convention in Durban where the Global Leadership of Local Government gathered and agreed on the Local Government Adaptation Charter.



We hereby acknowledge the valuable support and contributions received from the organisations and businesses listed below:

Alexander Forbes Anglo Platinum Limited Bonitas

Centre for Confl ict Resolution Der Deutsche Städtetag (German DST Association of Cities)

Department of Cooperative Governance Department of Environmental Affairs

Development Bank ofSouth Africa

Duchame Consulting Economic Development Enterprises

Eden District Municipality

Egis Software South Africa Eskom First National Bank

Gender Links GIZ IMQS Software

Industrial Development Cooperation Internet Solutions Konica Minolta

Lateral Unison Insurance Brokers Lemphane Fleet Solution LGSETA

Limpopo Business Support an Agency National Development Agency Nedbank

Old Mutual Passenger Rail South Africa PriceWaterhouseCoopers

SA Cities Network SADC SANLAM

SASRIA SEDA Sedibeng Water

SIEMENS Softline Pastel Standard Bank

SupplyFin Swedish Association of Local Authorities

Trade and Investment Limpopo

Umgeni Water University of Witwatersrand National League of Cities

University of South Africa War on Poverty Stats SA


This chapter details the developing philosophy of SALGA of embracing ‘corporate citizenship’ in a sustainable way. It highlights initiatives undertaken by SALGA offi ces countrywide that aim to benefi t not only the organisation and its workforce but the broader communities in which SALGA operates as well as the environment as a whole.

CHAPTER 5

TRIPPLE BOTTOM LINE


Over recent years, the development of corporate governance has shifted to a strong emphasis on the need for organisations to

behave in a responsible and ethical manner. Various concepts surrounding this premise have been focused on, including those

of ‘corporate citizenship’, ‘sustainability’ and ‘triple bottom line’ reporting. The latter of which is a business and development

philosophy that incorporates ‘the three E’s’, namely: equity, environment, and economics. This is also referred to as ‘the three

P’s’: people, planet, and profi t.

The fi rst King Report on Corporate Governance (King I) was published in 1994 and was aimed at promoting the highest

standards of corporate governance in South Africa. The second King Report on Corporate Governance (King II) acknowledged

the shift in emphasis from a mainly fi nancial focus in the past to a wider and more inclusive approach to public accountability

in the future.

With the publication of the third King Report (King III), this requirement was taken even further in that the report stated that

strategy, risk, performance, and sustainability have become inseparable and have resulted in the need for integrated reporting

which deals with economic, environmental, social and governance issues.

The trend towards greater transparency and accountability in public reporting is refl ected in a progression towards more

comprehensive disclosure of organisational performance to include the environmental, social, and economic dimensions

of the entity’s activities. This would be as either a separate report or as a dedicated section in the annual report. Accordingly,

SALGA is for the fi rst time including information regarding its sustainability and corporate citizenry efforts undertaken in the

period under review.

5.1 INTRODUCTION


In alignment with the commitment of SALGA to mitigate the impact of climate change, its new national offi ce in Garsfontein Avenue,

Pretoria (occupied on 1 November 2010) was designed and constructed in accordance with ‘green building’ principles.

A report from the developer indicates that the following elements were incorporated in designing and building the premises:

• The engagement of a Green Star Professional from the Council for Scientifi c and Industrial Research (CSIR) who assisted the project team with integration of the Green Star SA objectives.

• Commissioning initiatives ensuring optimum comfort and energy-effi cient services for occupants of the building.

• Ample amounts of outside air in order to counteract the build-up of indoor pollutants.

• The effective delivery of optimal quality air to all occupied areas of the building.

• Response monitoring of carbon dioxide levels to ensure delivery of optimal quantities of outside air.

• The avoidance of ‘low-frequency fl icker’ that may be associated with fl uorescent lighting.

• Offi ce lighting that is practical and effi cient yet not overly designed.

• The provision to occupants of a visual connection to the external environment.

• The achievement of a high level of thermal comfort.

• The facilitation of individual controls for thermal comfort.

• Interior fi nishes that minimise levels of volatile organic compounds in the building.

• The use of products with low formaldehyde emission levels.

• The minimisation of the greenhouse gas emissions associated with operational energy consumption and the maximisation of potential operational energy-effi ciency.

• Energy sub-metering to facilitate the ongoing management of energy consumption.

• The provision of artifi cial lighting with minimal energy consumption.

• Greater fl exibility for light switching to easily light occupied areas only.

• The reduction of peak demand on the energy-supply infrastructure.

• Construction adjacent to community amenities in order to reduce the overall number of automobile trips.

• The reduction and monitoring of potable water consumption, as well as the monitoring of the use of same for landscape irrigation.

• The reduction of potable water consumption from heat rejection systems.

5.2 SALGA NATIONAL


• Storage space that facilitates the recycling of resources used within the building in order to reduce disposal waste.

• The reduction of embodied energy and resource depletion occurring through the use of concrete.

• The use of timber products certifi ed in terms of environmentally responsible forest management practices.

• The use of approved refrigerants, insolvents, and other gases that do not contribute to the long-term damage of the earth’s stratospheric ozone layer.

• The minimising of discharge to the municipal sewerage system.

• The minimising of light pollution into the night sky.

• The elimination of the risk of Legionnaires’ Disease.

• The use of generators that minimise harmful emissions.

5.2 SALGA NATIONAL


SALGA WESTERN CAPE

Paper recycling: Old documents and paper are recycled. Reduced ink used in printers by using black and white as opposed to

colour. Staffs are requested to print back-to-back and even 2 by 2 to reduce paper usage. Agendas are not printed for internal

meetings. Staffs are encouraged to use electronic documents for Staff/PMT and PEC Meetings.

Courier: If someone is travelling to Pretoria, they take the hard copies instead of courier services. No water bottles are purchased

for meetings or catering. There has been increased staff awareness through a presentation on ‘2 wise 2 waste’ as well as staff

consultation on their ideas. Travelling of more than one people when going to the same destination.

Energy effi ciency: By ensuring that the offi ce lights are switched off when no one is in.

5.3 SALGA PROVINCIAL OFFICES


Mandela Day is about creating a global movement for good. It recognises that positive change begins with small, selfl ess, and

individual actions. Mandela Day serves as a catalyst for people around the world to realise that each of us has the ability to

change the world through small actions.

Mr Mandela has requested that each year his birthday present 18 July be people donate at least 67 minutes of their time in

service to their communities. The ‘67’ is a symbolic number that represents the number of years Mr Mandela was actively

involved in social activism in South Africa.

The SALGA National Members Assembly (NMA), held in Kimberley in May 2010, resolved that local government, through

SALGA, would actively support Nelson Mandela Day. The activities for 2010/2011 were appropriately themed `Make Every Day

a Mandela Day’.

In implementing these resolutions SALGA, in partnership with the Nelson Mandela Foundation and the 46664 organisation,

compiled guidelines for local government participation in Nelson Mandela Day. These guidelines incorporated the theme for the

day into the specifi c focus of Local Government of ‘Towards safe community recreational areas’.

5.4 MANDELA DAY 2011


SALGA NATIONAL

NELSON MANDELA DAY

Community Targeted Under the theme: Take action, inspire change, make every day a Mandela Day!’, SALGA National and Provincial offi ces targeted the most vulnerable members of society – the children and the elderly in poor communities. Children and the elderly were provided for in their immediate and basic needs.

Reason for choosing that particular community to

benefi t

In 2010, a resolution was made at NMA towards entrenching Mandela Day as a feature of local government. In 2011, SALGA acted on this resolution by calling on municipalities and local government stakeholders to celebrate this event through implementing community work projects that target children and elderly in poor communities.

How did the community benefi t?

At the Tender loving Care (TLC) home for the aged in Steve Bikoville, this project included the sourcing and provision of groceries, blankets, wheelchairs, accommodation quarters, massage therapy, recycling bins, and trees for the old-age home. There were generous contributions from Isiphethu Wellness, Kwalata, ACSA, City of Tshwane, and the National Dept of Environment.

In Philena Primary School (Olivenhotbosch) the aim was to (1) celebrate the values embodied in the iconic fi gure of Dr Nelson Mandela, (2) emphasise the need for physical activity, clean and safe recreational areas, (3) address the shortage of books and reading materials, (4) highlight the importance of reading and literacy among children and the youth. To this end:

• a soccer tournament was held and medals and trophies were awarded by Tshwane speaker Councillor Mosupya,

• a literacy campaign was held and book prizes and book donations were awarded by former SALGA chairperson Mr Amos Masondo

• HIV and AIDS training was facilitated by LoveLife and certifi cates were awarded by the CEO of SALGA, Mr Xolile George

•

• SALGA provincial offi ces also took part:

• SALGA - Eastern Cape: Donated books to the children’s home.

• SALGA - Gauteng: Visited an orphanage and cleaned the orphanage, cooked for the children, and donated groceries.

• SALGA - Limpopo: Provided groceries to needy families, greening of the environment, and establishing a food garden at the community centre.

• SALGA - Mpumalanga: Children’s homes in Daantjieand painted the buildings, completed repairs, and donated groceries.

• SALGA - North West: Visited an old age home with Fire Emergency services to assist with checking the safety standards and conditions of the old age homes. Books and magazines were donated.

• SALGA - Western Cape: Visited Ons Plek shelter for Girls and provided them with toiletries and stationery.



Any ongoing involvement beyond the specifi c

event?

As an ongoing initiative, this project aims to ensure that at the Tender Loving Care (TLC) home for the aged in Steve Bikoville:

• the seasonal need for blankets is addressed

• regular health checks are done

• the building of suitable shelter is completed

• the newly-built centre is used as a base for elderly care in the community

In Philena primary School:

• As a result or the intervention, the City of Tshwane has committed to ensure that the school and library are further resourced with books,

• Lovelife ground breakers have made links with the learners and the school to aid in the fi ght against crime, HIV and AIDS, and drug abuse. 150 learners in the school have gone through the Lovelife modules

• A soccer team has been started in the school and soccer balls were donated.

The National Dept of Environment has committed to further greening the school grounds and the old-age home after providing trees and recycle bins.

In partnership with City of Tshwane and its staff members, SALGA and its staff members, LoveLife, Isiphethu Wellness, Kwalata, ACSA, and the National Dept of Environment



SALGA EASTERN CAPE

NELSON MANDELA DAY

Community Targeted ILITHA OLD AGE HOME - Close to 100 elderly

Reason for choosing that particular

community to benefi t

SALGA EC identifi ed the Old Age Home as its offi ce was drawn to it through clips that were advertised

on E-TV about the work Ms. Mercy Madikane was doing with children, the youth, women, persons

with disabilities (PwDs), and the elderly. Her work includes her indefatigable efforts at turning

xenophobic attitudes into positive self-help activities of the locals in the Zwelitsha District. She

impressed on SALGA the importance of the Nelson Mandela International Day activities such as

the following:

a) Getting food parcels and ‘old’ clothes to the elderly;

b) Motivational talk to young women or the girl child and boys/young men in confl ict with the law

on a variety of value and moral-based topics such as HIV & AIDS, rape, housebreaking, GBV,

and so on;

c) Organising wheelchairs and other items for PwDs and vulnerable groups;

d) Buying or offering ‘old’ blankets to vulnerable groups during the winter season and for years to

come;

e) Getting transport for senior citizens who will have to be collected from far away to come to the

central venue on the day of the activities; and

f) Any other contribution that good samaritans and philanthropists may think of.

The above-mentioned activities were informed by the following Older Persons Rights and Responsibilities:

• Knowing their rights and accepting their responsibilities;

• Not be discriminated against because of their age;

• Have appropriate educational and training programmes;

• Have a right to belong and to form organisations of their choice;

• Must benefi t from family and community care and

• Must be treated with respect and dignity.



SALGA EASTERN CAPE

NELSON MANDELA DAY


SALGA EC CONTRIBUTION/DONATION:

• Bought cream/yellow paint for the Old Age Home walls and painted them inside and outside;

• Planted vegetable seeds in the Old Age Home vegetable garden;

• Cooked a sumptuous meal for the elderly;

• Played in-house games and sang with the elderly and the Ilitha Girl Guides;

• Gave motivational talks for the youth on crime, GBV, and the need to respect the elderly;

• Took memorable photograph moments as the elderly spoke about their happiness at being cared for by SALGA Eastern Cape;

• Presented the elderly with new face wash towels and bath soap.



SALGA FREE STATE

NELSON MANDELA DAY

Community Targeted Bolokanang Home Based Care centre

Reason for choosing that particular community to benefi t This centre is in situated at Phase 3, which is one of the most remote and impoverished areas of

Mangaung.

How did the community benefi t?Educational toys were distributed to enhance learning

Any ongoing involvement beyond the specifi c event?

Visit by the Community Development Unit



SALGA GAUTENG

NELSON MANDELA DAY

Community Targeted Alexandra Township Community


benefi t

The community has a centre that caters for small children and elderly. SALGA Gauteng has had a strong relationship with the centre since it touches the lives of many people.


The Gauteng offi ce visited the centre to clean and cook for lunch. It also left all the cleaning material used for the centre.



SALGA LIMPOPO

NELSON MANDELA DAY

Community Targeted Germark Village, Blouberg Municipality in Capricorn


benefi t

The Drop-in centre has not received funding to run its activities and yet it accommodates approximately 121 children per day. These children come the centre for services that include food, spiritual healing, and assistance with homework, laundry services, counselling remedial, and crèche.


• SALGA has greened and developed a food garden for the Drop-in Centre for food security purposes that will be sustain the project and be able to feed the children for much longer periods.

• 15 trees, seeds, and garden tools were distributed.

• Books and stationary were distributed to children to create awareness through educational programmes.

• SALGA prepared lunch for the OVCs and was served by staff members

Any ongoing involvement beyond the specifi c event? No for this particular municipality

In partnership with NEDBANK

OTHER INITIATIVES

Community Targeted Giyani Municipality

In partnership with SALGA was a part of the preparatory/working team and was tasked with the responsibility of coordinating bus routes from district municipalities in conjunction with the Department of Transport:

• SALGA managed to gather and collect all bus routes which were outstanding and its contribution was acknowledged.





SALGA MPUMALANGA

NELSON MANDELA DAY

Community Targeted Daantjie Community in Ward 29 of Mbombela Local Municipality

Reason for choosing that particular community to benefi t

This is an area which has a high teenage pregnancy rate and poverty levels. The targeted pre-school is running a programme for teenage mothers that allow young girls to go back to school without having to pay for child care. It was chosen because it is empowering youth while at the same time providing ECD services to poor families.


Two pre-schools were visited and assisted with cleaning, minor renovations, and food.

In partnership with IEC, Riverside Mall

Other detail Materials sponsored by Cashbuild. Food donated by staff members and the Riverside Mall.



SALGA NORTH WEST

NELSON MANDELA DAY

Community Targeted The Emmanuel Disabled and Old Age Centre in Jouberton Ward 9, within the City of Matlosana area of jurisdiction


SALGA North West had made a scan of the past involvement and resolved that the 2011 focus will be on drawing attention to the living conditions of the elderly and disabled. The past events of the Old Age Home being gutted by fi re and elderly losing their lives in the process, beared testimony to the need to give attention to the sector.

The Emmanuel Disabled and Old Age Centre in Jouberton Ward 9, within the City of Matlosana area of jurisdiction, was identifi ed by the community (as the centre which needed more attention and assistance) after SALGA North West had made some research on all Old Age and Disabled Centres.


Different departments made demonstrations awareness and donations:

a) How to extinguish a fi re

b) How to apply and receive Birth Certifi cates and/or Identity Documents

c) How to apply and receive Social Grants

d) How to check for blood pressure, diabetic, cholesterol, etc. and where to seek assistance

e) Donation of blankets and clothes to the centre

f) Donation of fruits and vegetables

g) Donation of big pots and big electric earn

h) Cleaning of the premises by Department of Correctional Services

i) Donation of catering for the day

j) Donation of toiletries and medication

Any ongoing involvement beyond the specifi c event?

• City of Matlosana – Fire and Rescue Services

- Capacity is done on a quarterly basis on how to use the fi re extinguishers

- Awareness is done on a quarterly basis on the dangers of paraffi n and its safety

• Department of Home Affairs

- Assistance is offered on a continuous basis to check application and issuing of Identity Documents and Birth Certifi cates

• South African Social Security Agency (SASSA)

- Assistance is offered on a continuous basis to check applications and issuing of Social Grants to people who deserve them

• Dr. Kenneth Kaunda District Health Department

- Screening of disabled and aged on different illnesses on quarterly basis

• Department of Correctional Services

- Cleaning of the premises on weekly basis



In partnership with • City of Matlosana – Fire and Rescue Services

• Department of Home Affairs

• South African Social Security Agency (SASSA)

• Dr. Kenneth Kaunda District Health Department

• Provincial Disaster Management Centre

• Red Cross

• Department of Correctional Services

• PROFERT

• Matlosana Fresh Produce Market

• AngloGoldAshanti Health Department



SALGA WESTERN CAPE

NELSON MANDELA DAY

Community Targeted Ons Plek (Delivering a service in the Cape Town business district and surrounds)


Staff members agreed that the focus should be on needy children and Ons Plek is a shelter for girl street children.

How did the community benefi t? Staff donated much needed toiletries and stationary.

Any ongoing involvement beyond the specifi c event? SALGAplanned an event for the girls in November. Throughout the year, SALGA donated

clothes, non-perishable foods, and toiletries to the shelter.

In partnership with Donations were all made by staff members.


NATIONAL OFFICETel: (012) 369 8000 Fax: (012) 369 8001291 Sprite AvenueMenlyn Wood1st Floor, Block BFaerie GlenPretoria P.O. Box 2094Pretoria 0001

EASTERN CAPETel: (043) 727 1150 Fax: (043) 727 1156/67First Floor, 3 Berea TerraceBereaEast London 5214PO Box 19511East London 5214

FREE STATETel: (051) 447 1960 Fax: (051) 430 8250SALGA Housecnr. Nelson Mandela Drive & East Burger StrBloemfontein 9300PO Box 14Bloemfontein 9300

GAUTENGTel: (011) 276 1150 Fax: (011) 276 3636/73rd Floor BraamparkForum 2, 33 Hoofd StreetBraamfontein 2017PO Box 32161Braamfontein 2017

KWAZULU NATALTel: (031) 361 1236 Fax: (031) 361 1234202 Transnet Building 3rd Floor Smith StreetDurban 4000PO Box 1525Durban 4000

LIMPOPOTel: (015) 291 1400 Fax: (015) 291 1414127 Marshall StreetPolokwane 0699Private Bag X 9523Polokwane 0700

MPUMALANGATel: (013) 752 1200 Fax: (013) 752 5595Salga House 11 van Rensburg StreetNelspruit 1200PO Box 1693Nelspruit 1200

NORTH WESTTel: (018) 462 5290 Fax: (018) 462 4662Jade Square Suite 400cnr OR Thambo & Margaretha Prinsloo StreetKlerksdorp2570 PO Box 1286Kerksdorp 2570

NORTHERN CAPETel: (053) 833 2505 Fax: (053) 833 3828Crescent House 1 & 2, D’Arcy Street, Kimberley, 8300PO Box 3183Kimberley 8300

WESTERN CAPETel: (021) 469 9800 Fax: (021) 461 1936SALGA Western Cape & Parliamentary Offices11 Adderley Street7th FloorCape Town 8000PO Box 185Cape Town 8000