Salga Annual Report.indd

Transcription

Annual Report
2011 / 2012
SALGA
South African Local Government Association
Contents
CHAPTER 1: INTRODUCTION
Glossary of terms
1.1 Foreword by Chairperson of SALGA
1.2 Overview from the Chief Executive Officer
1.3 Financial results overview
1.4 SALGA Mandate
1.5 SALGA revised five-year strategy 2007-2012
1.6 Organisational structure
1.7 SALGA leadership
2
4
6
9
10
11
16
17
CHAPTER 2: ORGANISATIONAL PERFORMANCE
2.1
2.2
Introduction
Overview of performance against predetermined objectives for period 1 April 2011
- 31 March 2012
2.3 Performance information
2.3.1 SALGA Change Agenda:
Achievements and challenges
2.3.2 10-Priority Outcomes:
Achievements and challenges:
Priority Objective 1
24
27
CHAPTER 4: CORPORATE GOVERNANCE AND
HUMAN RESOURCE OVERSIGHT REPORT
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
Introduction
Business planning and performance information
SALGA’s legislative compliance framework
Budgeting policy
Audit Committee
Internal Audit
Risk Management
Individual performance management
SALGA governance structures
HR oversight report
Stakeholder relations
284
285
288
290
294
295
296
297
305
324
348
CHAPTER 5: TRIPLE BOTTOM LINE
31
36
5.1
5.2
5.3
5.4
Introduction
SALGA National Office
SALGA Provincial Offices
Mandela Day 2011
352
353
355
356
41
43
52
64
73
77
82
86
103
104
CHAPTER 3: FINANCIAL OVERVIEW AND ANNUAL
FINANCIAL STATEMENTS
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Report of the Chief Finance Officer
Report of the Audit Committee
Report of the Auditor General
Report of the Accounting Authority
Financial statement
Statements of gifts, donations, and sponsorships
Performance information tables
108
121
124
128
136
205
211
SALGA Annual Report | 2011/12
01
Glossary of Terms
02
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
Chapter 1
INTRODUCTION
This chapter sets out a general overview of the organisation
by SALGA’s Chairperson, Chief Executive Officer and Chief
Financial Officer. It also outlines SALGA’s mandate, strategy
for the period 2007-2012 and organisational and leadership
structure.
03
1.1 FOREWORD BY SALGA
CHAIRPERSON
I am pleased to present my first annual report as the Chairperson of SALGA, elected
into office 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 financial 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.
Cllr Thabo Manyoni
SALGA Chairperson
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 five 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 financial 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.
04
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 office 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
05
1.2 OVERVIEW BY THE CEO
The financial 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 five 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 financial 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:
Xolile George
SALGA Chief Executive Officer
1.
Review of the legislative and policy framework
2.
Review of the local government fiscal and financial 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 reflective 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 fiscus.
•
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
06
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 finances has been conducted with
approximately 8600 councillors and municipal officials, responsible for finance, inducted on municipal finance 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 identified municipalities.
•
The training of 189 Councillors and officials 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 Office 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 fiscal framework, potable bulk
water tariffs.
We will continue to deliver on our mandate to adequately represent, support, advocate and profile our members. The unified
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 midyear and took it in their stride. We look forward to the next financial year under your leadership and guidance.
07
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 unified 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
08
1.3 FINANCIAL RESULTS
OVERVIEW
________________________
NCEBA MQOQI
CHIEF FINANCIAL OFFICER
Nceba Mqoqi
Chief Finance Officer
Figures in Rand
Financial indicators Membership levy revenue
Government grant - National Department of CoGTA (Executive Authority)
Other government grants recognised
Government grant - Free State Provincial Department of CoGTA
Government grant - Gauteng Department of Local Government & Housing
Government grant - Eastern Cape Dept. of Local Government & Housing
Department of Environmental Affairs
Government grant - National Treasury
Sponsorships and donations received
Donor funding income recognised
2012
2011
217 872 595
25 486 000
3 394 176
214 086
333 333
1 190 065
300 000
1 356 692
12 786 123
20 392 828
145 888 126
49 125 000
4 698 924
3 665 591
333 333
700 000
6 003 160
15 179 155
2012
75.0%
8.7%
4.4%
4.4%
3.7%
3.8%
80.2%
116%
11
2011
63.2%
21.3%
2.0%
2.6%
6.6%
4.4%
54.4%
96%
(7)
Key financial ratios
Membership levy contribution (%)
Government grants contribution (%)
Other grants contribution (%)
Sponsorship and donations contribution (%)
Donor funding contribution (%)
Other income contribution (%)
Current ratio
Solvency ratio
Asset coverage rate (times)
09
1.4 SALGA MANDATE
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 offices. The mandate of the organisation rests on five (5) primary pillars:
Lobby,
Advocate, and
Represent
SALGA
MANDATE
Transform
local government to
enable it to
fulfil its
developmental mandate.
Lobby, advocate, protect,
and represent
the interests of
local government at
relevant
structures and
platforms.
Strategic
Profiling
Refers to
building the
profile and
image of local
government
within South
Africa as well
as outside
the country.
Knowledge
Sharing
SALGA as
custodian of
local government intelligence and the
knowledge
hub for the
sector.
Capacity
Building
Refers to the
role of SALGA
to build the
capacity of
Councillors
and the
bespoke skills
required within
the sector.
Support
and Advice
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.”
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:
Values:
Our values are as follows:
Responsive, Innovative, Dynamic
Excellence
Our values are as follows:
•
•
•
•
10
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 five-year strategic plan finds 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 identified and prioritised 12 outcomes for the
remaining years of the Medium-Term Strategic Framework
(MTSF):
MTSF
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 efficient, 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 efficient 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 efficient, 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 specifically 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.
11
STRATEGY 2007-2012
CoGTA 10-POINT PLAN/ LGTAS
OUTCOMES
1
Improve 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 refined Ward Committee model.
5
Build and strengthen the administrative, institutional and financial 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 fiscal system.
9
Develop and strengthen a politically and administratively stable system of municipalities.
10 Restore the institutional integrity of municipalities.
Following the national election, that took place at the midpoint of the five-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 five-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 fixed inputs. In the outcomesbased approach to planning, outcomes are at the epicentre
of the planning process. These are distilled into the priority
outputs having the largest influence on the overall outcome.
At its national conference in April 2007, SALGA identified and
developed ten strategic objectives for the period July 2007 to
March 2012. These objectives comprised two groups:
the first group of five 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 five 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.
The SALGA 10 core strategic objectives:
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 profile locally, regionally,
and internationally.
• Improve the corporate governance and internal
functioning of SALGA.
12
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
financial capacity.
• To contribute to good governance and public
participation in municipalities.
STRATEGY 2007-2012
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 five-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:
5YLGSA
SALGA’S
MANDATE
SALGA CONSTITUTION
1. Employer Role
2. Representative Role
3. Advisory Role
4. Profiling Role
SALGA 5 YEAR
STRATEGIC PLAN
2007-2012
MTSF 2009 - 2014
MDG’s
COGTA 10 POINT PLAN
SALGA CHANGE AGENDA
1.
2.
Improve SALGA’s ability to support and advise its
members.
Improve SALGA’s ability to engage with stakeholders,
lobby and advocate them on issues in the interest of
member municipalities.
3.
4.
5.
Improve SALGA’s ability to effectively represent
members as an employer.
Enhance and mantain a high profile position nationally,
regionally and internationally.
SALGA’s corporate gorvenance and internal functioning
SALGA PRIORITY OUTCOMES 2010 - 2012
13
STRATEGY 2007-2012
SALGA PRIORITY OUTCOMES 2010 - 2012
1.
Councillor Support: High calibre, professional and
effective Local Government political leadership
7.
Stable Municipal governance: Stability, transparancy
and accountability in municipal governance.
2.
Service Delivery: Improved access to municipal
services and enhanced provision of FBS.
8.
Capacity Building and Institutional Development:
Enhanced skills and organisational systems and
structures towards improved service delivery.
3.
Social Cohesion: Transversal (gender, youth children
HIV/AIDS) socio-economic issues mainstreamed
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.
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.
14
STRATEGY 2007-2012
STRATEGIC EVALUATION:
2
3
4
5
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 elleviation
To contribute to the strengthening of municipal
financial capacity.
To contribute to good governance and public
participation in municipalities.
CHANGE AGENDA
1
2
3
4
5
Improve SALGA’s capacity to support and
advise its members
Improve SALGA’s capacity to engage with
stakeholders, lobby and advocate them on
issues in the interest of member municipalities.
Improve SALGA’s capacity to effectively
represent members as the employer
Enhance and mantain a high profile position
locally, regionally and internationally.
SALGA’s corporate governance and internal
functioning.
PRIORITY OUTCOME
PRIORITY OUTCOMES
STRATEGIC OBJECTIVE
1
Members Assembly 2010
4
3
STRATEGIC OBJECTIVE
Improve SALGA’s capacity to support and
advise its members
mprove SALGA’s capacity to engage with
stakeholders, lobby and advocate them on
issues in the interest of member municipalities.
Improve SALGA’s capacity to effectively
represent members as the employer
Enhance and mantain a high profile position
locally, regionally and internationally.
SALGA’s corporate governance and internal
functioning.
CHANGE AGENDA
2I
5
SYLGSA
National Conference 2007
STRATEGIC OBJECTIVE
1
1
2
3
4
5
6
7
8
9
10
Councillor Support
Service Delivery
Social Cohesion
Economic Development
Labour Relations
Sound Financial Management &
Governance System
Stable Municipal Governance
Capacity Building and Institutional
Development
Reforming Organised Local Governance
Climate Change Response Measures at
Municipal Level
Assembly/Conference Resolutions
2007
National
Conference
2008
Members
Assembly
2009
Members
Assembly
2010
Members
Assembly
2011
National
Conference
Priorities for 2007/08
1. Climate Change
2. Advocacy and Lobby
3. Capacity Building
4. Good Governance
5. Sound Financial
Management
6. FIFA World Cup 2010
7. Poverty Eradication
1. Climate Change
2. Lobbying and Advocacy on all
relevant policies and legislation
3. Human Development Strategy
4. Consolidating SALGA’s Internal
Change Agenda
5. Councillor Support
6. Municipal Human Resource
Management
7. Profiling Local Government
8. Stimulating Local Economies
2. Capacity Building and Institutional
Development
3. Sound Financial Management &
Governance
4. Municipal Governance
5. Labour Relations
6. Reforming Organised local
Government
7. Service Delivery
8. Social Cohesion
9. Economic Development
10. Climate Change
2. Capacity Building
3. Municipal Finance and
Governance
4. SALGA Governance Framework
5. Labour relations -Represent/
Support/Advice
6. Represent Members:
Advocacy and Lobbying
7. Knowledge Sharing
8. Marketing and Communication
15
1.6 ORGanisational Structure
Legal Compliance and Risk
Chief Executive Officer
Corporate Secretariat, Governance,
and Strategic Programmes
Performance Management Unit
Chief of Operations
Communications and Marketing
Internal Audit
Provincial Offices
Eastern Cape
Western Cape
Northern Cape
North West
Limpopo
Mpumalanga
Gauteng
Free State
KwaZulu-Natal
16
Governance,
IGR, and
International
Relations
Municipal
Institutional
Development
Municipal
Infrastructure
and Services
Community
Development
• International
relations and
protocol
• Intergovernmental
relations
• Advocacy
and lobbying
• Governance
support
• Parliamentary
affairs and
research
• 5-YLGSA
coordination
• Collective
bargaining
and labour
relations
• Municipal
human
resources
support
• Skills
development
and capacitybuilding
• 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.)
Economic
Development
and
Management
Planning
Strategy,
Policy, and
Research
• 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
Finance and
Corporate
Services
• Financial
planning and
control
• Assetmanagement
and reporting
systems
• Supply-chain
management
• Human
resources
• Administration
• Information
and
communication
technology
• Travel
coordination
and
management
1.7 SALGA Leadership
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
Name
PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012
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
New
Cllr SV Stuurman
Additional Members
Cllr Thandekile Sabisa
Mhlontlo Local Municipality
New
Cllr Zanoxolo Wayile
New
Cllr Nozibele. Makanda
Chris Hani District Municipality
New
Cllr Luleka Simon
New
17
SALGA FREE STATE
PEC FROM
1 MARCH 2011
UNTIL 18 MAY 2011
Name
Designation
Name
Municipality
New/
Re-elected
Cllr S Ngangelizwe
Chairperson
Cllr. Dr. Balekile Edward Mzangwa
Thabo Mofutsanyane District
Re-elected
Municipality
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 Stofile
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
PEC FROM
1 MARCH 2011
UNTIL 18 MAY 2011
Name
Designation
Name
Municipality
New/
Re-elected
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
Mfikoe 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
18
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
Ntombifikile H Gumede
Ugu District
New
Additional Member
Yusuf Bhamjee
Umgungundlovu District
Re-elected
SALGA LIMPOPO
PEC FROM
1 MARCH 2011
UNTIL 18 MAY 2011
Name
Designation
Name
Municipality
New/
Re-elected
Cllr (Dr) FP Mdaka
Chairperson
Cllr D Magabe
Sekhukhune District
Re-elected
New (Deployed
as an MEC
Cllr D Magabe
Deputy Chair
Cllr F Dzhombere
Vhembe District
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 Municipality
Additional
member
19
SALGA MPUMALANGA
PEC FROM 3 AUGUST 2011 UNTIL 31 MARCH 2012
PEC FROM
1 MARCH 2011
UNTIL 18 MAY 2011
Name
Designation
Name
Municipality
New/
Re-elected
Cllr SK Mashilo
*Cllr LM Malatjie
Cllr CN Mkhonto
Cllr O Mtsweni
Cllr F MaboaBoltman (Ex-Officio)
Cllr A Gamede
Cllr BM Khumalo
Cllr GT Mthimunye
Cllr L Dikgale
Cllr R Vilakazi
Cllr. L Theko
Cllr B Kubheka
Cllr N Ndlovu
Chairperson
Deputy Chairperson
Deputy Chairperson
Deputy Chairperson
Additional Member
Clr SK Mashilo
Clr LC Dlamini
Clr M Nkosi
Clr R. Khumalo
Clr GT Mthimunye
Nkangala District
Mbombela
Chief Albert Luthuli
Bushbuckridge
Dr JS Moroka
Re-elected
New
New
New
Re-elected
Additional Member
Additional Member
Additional Member
Additional Member
Additional Member
Co-opted member
Co-opted member
Co-opted member
Ex Officio Member
Clr L Dikgale
Clr T Shabangu
Clr T Mnisi
Clr VS Magagula
Clr L Masina
Clr. S Nxumalo
Clr S Sithole
Clr WM Mhlanga
Clr. F Maboa Boltman
Nkangala District
Ehlanzeni District
Gert Sibande District
Thaba Chweu
Govan Mbeki
Bushbuckridge
Emalahleni
Nkomazi
Gert Sibande
Re-elected
New
New
New
New
New
New
New
Re-elected
*Cllr. LM Malatjie was a PEC member until September 2010
SALGA NORTHERN CAPE
PEC FROM
1 MARCH 2011
UNTIL 18 MAY 2011
Name
Designation
Name
Municipality
New/
Re-elected
Cllr W Johnson
PEC Member
Joe Morolong
New
Cllr Victor Makoke
John Taolo Gaetsewe
New
Cllr Jan Tonyane
Tsatsabane
New
Cllr Nokhaya Mjila
Siyanda
New
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 D Singh
PEC Member
Cllr N Hermans
PEC Member
Cllr H Combrink
Deputy Chair
Cllr M Eilerd
Cllr Esther Molete
Cllr L Faber
Cllr L Letebele
20
SALGA NORTH WEST
PEC FROM
1 MARCH 2011
UNTIL 18 MAY 2011
Name
Designation
Name
Municipality
New/
Re-elected
Cllr BE Moloi
Chairperson
Cllr Kaone Lobelo
Greater Taung DM
New
Cllr MA Molekwa
Deputy Chairperson
Cllr Lenah Miga
Mafikeng 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
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
Name
Designation
Name
Municipality
New/
Re-elected
Cllr S de Vries
Chairperson
Ald Demitri Qually
Cape Town
New
Cllr IR Iversen
Deputy Chairperson
Cllr Georlene Wolmarans
Knysna
Re-elected
Cllr WS Mxolose
Deputy Chairperson
Cllr Francois Skippers
Saldanha
New
Cllr Mrs GR Wolmarans
Deputy Chairperson
Cllr Edward Njadu
Central Karoo
New
Cllr Mrs CC Brink
Additional Member
Cllr Grant Twigg
Cape Town
New
Cllr CA de Bruyn
Additional Member
Cllr Ian Iversen
Cape Town
Re-elected
Cllr L Dunn
Additional Member
Cllr Stephan Vuba
Cape Town
New
Cllr B Herron
Additional Member
Cllr Chris Hussinger
Swartland
New
Cllr G Pascoe
Additional Member
Cllr Clera Meyer
Cape Winelands
New
Cllr S Piti
Additional Member
Cllr Anton Coetsee
Overstrand
New
Cllr Ms E Plaatjies
Cllr Mrs EC Marthinus
Cllr Ms JJ Muller
21
SALGA EXECUTIVE MANAGEMENT TEAM
SALGA EXECUTIVE MANAGEMENT TEAM
PROGRAMME / PROVINCE
NAME
Chief Executive Officer
Xolile George
Chief of Operations
Lance Joel
Chief Financial Officer
Josephine Meyer until 16 September 2011
Acting Chief Financial Officer
Nceba Nqoqi from 19 September 2011
Acting Executive Director: Strategy, Policy, and Research
Seana Nkhahle
Executive Director: Municipal Infrastructure Services
Mthobeli Kolisa until 24 October 2011
Acting Executive Director: Municipal Infrastructure Services
Gratitude Booysen from 25 October 2011
Executive Director: Municipal Institutional Development
Adv 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 Mettler
Executive Director: Community Development
Antonette Richardson
Executive Director: Economic Development, and Development Planning
Mayur Maganlal
Provincial Executive Officer: Eastern Cape
Chris Magwangqana until 30 September 2011
Acting Provincial Executive Officer: Eastern Cape
Mthobeli Kolisa from 3 October 2011
Provincial Executive Officer: Free State
Lulama Cele
Acting Provincial Executive Officer: Gauteng
Mihloti Masuluke
Provincial Executive Officer: Limpopo
Thapelo Matlala
Provincial Executive Officer: Mpumalanga
Gugu Langa
Provincial Executive Officer: Northern Cape
Gaonyadiwe Mathobela until 30 September 2011
Acting Provincial Executive Officer: Northern Cape
Johanner Ruiters from 1 October 2011
Provincial Executive Officer: North West
Nancy Ngwenya
Provincial Executive Officer: Western Cape
Khalil Mulagie
22
Chapter 2
ORGANISATIONAL PERFORMANCE
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)
23
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 financial 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 financial year that has just ended. It reports on how the
budget for that financial 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 five 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.
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 financial statements. It
reveals how the budget was implemented and the state of the
financial 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.
The Annual Report provides information on the performance
of SALGA in the preceding financial year for the purposes of
SALGA ANNUAL PERFORMANCE 2008-12
90
68
45
23
2008-2009 (Average of four
quarters)
2009-2010
2010-2011
2011-2012
SALGA ANNUAL PERFORMANCE 2008-12
2008-2009 (Average of four quarters)
2009-2010
2010-2011
2011-2012
60
75
73
84
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.
24
2.1 INTRODUCTION
SALGA - ALL PROGRAMMES QUARTERLY PROGRESS
AR 2011-12
84
Q3 2011-12
Q2 2011-12
Q1 2011-12
71
2011-12
40
70
73
AR 2010-11
Q3 2010-11
Q2 2010-11
Q1 2010-11
82
83
89
AR 2009-10
75
Q3 2009-10
Q2 2009-10
Q1 2009-10
Q4
Q3
Q2
Q1
2010-11
84
85
82
2008-09
2008-09
2008-09
2008-09
58
54
2008-09
44
41
01
02
03
04
05
06
07
2009-10
08
09
0
QUARTERLY PERFOMANCE 2011-12 PERCENTAGE ACHIEVED
90
87 87
84
83
76
71
70
68
45
67
68
65
40
34
23
Q1 2011-12
Q2 2011-12
Q3 2011-12
AR 2011-12
O
Total Programmes
SALGA 10 Priority Items
25
2.1 INTRODUCTION
QUARTERLY PROGRESS CHART 2008-2012 - FULLY ACHIEVED PERCENTAGE
100
93
90
89
85
84
82
88
84
83
82
87 87
8484
85
85
83 83
82
83
81
81
80
76
75
75
90
89
73
70
72
71
68
67
65
64
58
54
53
54
50
49
46
44
43
41
40
36
37
34
25
0
26
Total Programmes
Change Agenda
SALGA 10 Priority Items
Q1 2008-09
Q2 2008-09
Q3 2008-09
Q4 2008-09
Q1 2009-10
Q2 2009-10
Q3 2009-10
Q1 2010-11
Q2 2010-11
Q3 2010-11
Q1 2011-12
Q2 2011-12
Q3 2011-12
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.
SALGA 2011-12: INSTITUTIONAL SCORECARD BY KEY PERFORMANCE AREA (KPA)
STRATEGIC OBJECTIVES AS PER
SALGA STRATEGIC PLAN 2007 to 2012
Fully
Achieved
Not
Achieved
Total
Number of
Targets
SALGA 10 PRIORITY OUTCOMES
SALGA CHANGE AGENDA
Number Percent Number Percent
CA 1: Contribution to municipal transformation and
organisational development
CA 2: Contribution to the effective and sustainable delivery of
municipal services
CA 3: Contribution to the stimulation of local economies and
poverty alleviation
CA 4: Contribution to the strengthening of municipal financial
capacity
CA 5: improve the salga corporate governance and internal
functioning
CA TOTAL
PO 1: Councillor support - high calibre, professional, and
effective local government political leadership
PO 2: Service delivery - improved access to municipal
services and enhanced provision of free basic services (FBS) through
effective operations management and service maintenance
PO 3: Social cohesion – mainstreaming of transversal (gender,
youth, children, HIV/AIDS, etc.) socio-economic issues
PO 4: Economic issues – drive of growth and employment
creation by municipalities in both urban and rural areas
PO 5: Labour relations – productive and stable labour
environments supported by a ‘mutual gains’ approach
PO 6: Sound financial management and governance system improved municipal financial management and viability
PO 7: Stable municipal governance
PO 8: Capacity building and institutional development –
optimising municipal skills, organisational systems, and
structures towards improved service delivery
PO 9: Reformation of organised local government – ensuring a
more effective, responsive, and financially viable SALGA
PO 10: Climate change response measures - integration of
climate change responses in municipal development, planning,
and management.
PO TOTAL
TOTAL KEY PROGRAMMES CONTRIBUTING TO
BUSINESS PLAN 2011-12
13
100
0
0
13
8
100
0
0
8
0
0
0
0
0
15
100
0
0
15
50
79
13
21
63
86
12
87
75
13
4
13
25
99
16
45
83
9
17
54
59
98
1
2
60
45
98
1
2
46
26
79
7
21
33
28
80
7
20
35
12
86
12
14
14
38
68
18
32
56
7
64
4
36
11
4
67
2
33
6
276
362
83
84
55
68
17
16
331
430
27
SALGA Perfomance Plan 2011-12
CONSOLIDATED ANNUAL PERFOMANCE
POST AUDIT
Not Achieved
72 KPI’s
17%
Fully Achieved
358 KPI’s
83%
The Annual Report 2011/12 reflects 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 offices
(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 financial year stands at
84 percent. This is an 11 percent improvement on the
2010/11 performance which stood at 73 percent.
CONSOLIDATED ANNUAL PERFOMANCE POST
AUDIT In Terms of it’s CHANGE AGENDA
CONSOLIDATED ANNUAL PERFOMANCE POST
AUDIT In Terms of it’s 10 PRIORITY OUTCOMES
Not Achieved
55 KPI’s
17%
Not Achieved
17 KPI’s
17%
Fully Achieved
82 KPI’s
83%
Fully Achieved
276 KPI’s
83%
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
identified as a significant risk to the achievement of
the Annual Performance Plan and building a high
performance organisation.
28
SALGA 2011-12 FINAL PERFOMANCE SCORECARD BY DIRECTORATE/PROVINCE
2009-10
2010-11 75%
73%
2011-12
84%
SALGA WC
SALGA NW
SALGA NC
SALGA MP
SALGA LP
SALGA GP
SALGA FS
SALGA EC
Programme 8: Development & Planning
Programme 7: Community Development
Programme 6: Governace and IR
Programme 5: Municipal Institutional Development
Programme 4: Municipal Infrastructure and Services
Programme 3: Strategy, Policy & Research
Programme 2: Finance & Corporate Services
Programme 1: Office of the CEO
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 decisionmaking 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 first and second quarters of
the financial 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
100
98
89
85
74
91
70
82
92
94
85
50
81
94
79
73
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;
firstly 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 reflections in the form of an EMT ‘bosberaad’ and the
NEC induction workshop. These processes identified possible
means of addressing key challenges. The organisational
assessment highlighted a number of challenges as indicated
in the table below.
29
Strategy and Performance Integration
Structure Integration
Unable to extract true value from the SALGA brand
Lack of effective internal and external communication
channels
Systems Integration
Processes Integration
• Lack of proper systems to collect outstanding
membership fees
• Lack of efficient and effective business and operational
processes
• Unsustainable SALGA funding model
• Lack of proper processes to collect outstanding
membership fees
• Poor ICT connectivity given the country’s geography
• Lack of effective and efficient monitoring and evaluation
system to measure performance of SALGA’s leadership
• 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
Programme and Projects (Delivery) Integration
• Limited government resources and constraints of the
local government system
• Lack of sector-led leadership programmes for local
government addressing the training needs of the sector
• Uncoordinated, inefficient performance management for
staff
• The products and services catalogue of SALGO are not
clearly defined
Stakeholder Management Integration
Governance Integration
• Lack of effective stakeholder management framework
• Lack of role clarity and expectations of SALGA in local
government
• Negative perceptions of SALGA by local government
stakeholders and partners
• 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 defined
A formidable challenge is that the budget of SALGA is
inadequate to fulfill its mandate. The budget is also difficult
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 specific
reference to the relevant legislation and to determine a
30
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 identified. 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
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.
CA1: Improve SALGA’s capacity to support and
advise its members.
2011-12 FINAL PERFOMANCE
Fully
Achieved
13
100%
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 benefit 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 significantly 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 identified 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 significant 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 findings 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
31
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.
of what and how other members of their peer group create
this efficiency has proven to be one of the most important and
constructive strategies that a municipality could embark on.
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
financial year, was concluded and published this year. A fifth
benchmarking programme was initiated separately through
a different partnership with the Water Research Commission
and implemented through the MIS directorate.
Partnerships with a variety of stakeholders have been
facilitated. Most of these are geared towards providing support
to municipalities in various performance areas. New cooperation agreements have been concluded with the following:
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, efficient, and equitable manner, and to tighten fiscal
spending.
STAKEHOLDER MANAGEMENT
•
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.
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 efficiency. An examination
32
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 with
stakeholders and lobby and advocate them on
issues in the interests of member municipalities.
2011-12 FINAL PERFORMANCE
Fully
Achieved
8
100%
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 influenced the final Upper
Limits Notice. To some extent, this responds to the challenges
raised by SALGA. SALGA provided guidance during the
processing and finalisation 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
confidence 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 beneficial 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.
33
•
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 policymaking processes in the interest of local government
•
Facilitate a critical mass of voices advocating Local
Government issues in its best interests
34
•
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 benefits 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 benefits 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.
35
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.
CA 4: Enhance and mantain a high profile locally,
regionally and internationally.
2011-12 FINAL PERFOMANCE
Fully
Achieved
15
100%
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 benefit from opportunities and platforms for
the learning and sharing of best practice models for local
authorities across borders.
36
Details of the structured SALGA continentals
international engagements during 2011-2012:
•
Horticultural Crop Technology for Rural Development,
October 30-November 2011, Suwon and Seongnam,
Korea.
and
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.
•
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.
•
CLGF Dissemination Seminar, Building support for
Models of local democracy within a Federal System in
Pakistan, 05-08 July 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.
•
ALAN (Association of Local Authorities in Namibia)
55th congress, 20-23 July 2011 in Windhoek.
•
UMM (Union of Municipalities of Marmara, Turkey), 29
June 2011.
•
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.
•
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.
•
•
•
•
•
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).
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.
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
Enterprises;
for
Small
and
Medium
SALGA officials to the KOICA (Korea International
Cooperation Agency) multi-year Training Programme:
37
°
Role of Municipalities
investment;
in
promoting
inward
°
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.
38
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, profile 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 identification of current and new projects.
The human settlements unit at SALGA has been able to enhance
and maintain a high profile 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 financial support for flight 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 five 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 efficient, 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 significant 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
CA 5: Improve SALGA’s corporate governance and
internal functioning.
Not
Achieved
13
21%
Fully
Achieved
50
79%
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 identified 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.
39
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,
municipal services
equitable,
Goal 2:
Safe
communities
healthy
and
and
sustainable
environments
and
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 efficient administration
SALGA recognises that there are numerous key players in
Local Government and that it cannot achieve these goals on its
40
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 office
of local government. The leadership simultaneously adopted
a set of resolutions that have informed the development of a
five-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 efficiency, 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 official publication which is used
to profile 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.
2.3.2 SALGA 10-PRIORITY OBJECTIVES
PRIORITY OBJECTIVE 1:
COUNCILLOR SUPPORT
HIGH CALIBRE, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP
PO1: Improve SALGA’s corporate governance and
internal functioning.
Not
Achieved
4
25%
Fully
Achieved
12
75%
COUNCILLOR INDUCTION PROGRAMME (CIP)
INTERVENTION
In terms of S24(1) of the Local Government: Municipal
Structures Act, 1998 ( Act No.117 of 1998), “the term of
municipal councils is five 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 office 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.
Eastern Cape
Free State
CIP
1170
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
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:
SALGA, in partnership with sector departments, provided
sector-based Cllr induction sessions in all provinces. This
was conducted for MMCs responsible for water, waste
41
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 officials from North West and the
Northern Cape were inducted into the roles and responsibilities
of political office bearers and the municipal manager. They
were also inducted into the need to develop terms of reference
and delegations.
42
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 benefit,
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.
SERVICE DELIVERY
IMPROVED ACCESS TO MUNICIPAL SERVICES AND ENHANCED PROVISION OF FBS, THROUGH EFFECTIVE
OPERATIONS MANAGEMENT AND SERVICE MAINTENANCE
PO2. Service Delivery - Improved access to municipal
services and enhanced provision of FBS, through
effective operations management and service
maintenance.
Not
Achieved
9
17%
Fully
Achieved
45
83%
of their waste fill sites was sent to mayors of affected Eastern
Cape municipalities.
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 financially support
10 municipalities which are undertaking Clean and Green
Programme (Mnquma- Eastern Cape, KSD- Eastern Cape,
Thulamela- Limpopo,Giyani- Limpopo, BushbuckridgeLimpopo City of Tshwane- Gauteng, Emfuleni- Gauteng, GaSegonyana- Northern Cape Mantsopa- Free State, NkandlaKwazulu 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 Officers (WMOs).
Municipalities are being guided on how to designate and who
should be the Waste Management Officers. Updated report
of municipalities which have not applied for the regularisation
Municipalities were also educated on the need to comply
with the regulatory issues on management of landfill 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.
43
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.
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 field 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 field
of social housing. The rest of the municipalities have been
capacitated in the fields of social and rental housing. It allows
the affected municipalities to make informed decisions in the
implementation of the social and rental housing programmes.
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.
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.
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
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
44
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 field 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 efficiency and demand side
management programmes on municipal finances, will provide
municipalities with an understanding regarding the impact
of these programmes on municipal finances. The findings
of the analysis will assist SALGA to influence national policy
to address the implications of the implementation of energy
efficiency and demand side management programmes on
municipal finances.
SALGA Limpopo coordinated a meeting between SALGA
and Polokwane Municipality regarding the Swiss Agency for
Development and Cooperation Energy Efficiency Monitoring
and Implementation Project. The meeting that was held at
Polokwane municipality on 19 April 2011. Polokwane has
been identified 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 Efficiency 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 Efficiency, Renewable
Energy, and Climate Change workshop to raise awareness on
the benefits of related technologies to promote and encourage
the implementation of renewable energy and energy efficiency
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 identified 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
finance 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 specific 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 defined by Local
Government Politicians and Officials 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
45
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 financial 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 certification.
This certification serves as a symbol of confidence 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
46
provider by national office 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 sufficient
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
financial 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 certification processes for the current financial 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 finalisation
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 identified municipalities for formal meetings with political
leaders and officials. 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 fiscal
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
officials 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 financial 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 identified 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).
47
•
Late registration of projects against the MIG allocation.
•
Slow municipal procurement processes.
•
•
•
Poor management and support to the Project
Management Units(PMUs).
Technical reports and Business plans for all unregistered
identified projects to be implemented in the 2012/2013
financial year should be submitted for evaluation and
approval.
•
Poor financial
municipalities.
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 five percent of MIG
allocation to provide for the procurement of additional
technical services.
•
Municipalities should fill all the vacant posts in the
Project Management Unit (PMU).
•
All municipalities that have not spent 100 percent of
their 2010/11 financial 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.
management
of
MIG
funds
by
•
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 identified 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:
•
48
Municipalities must improve the identification of
projects through the Integrated Development Planning
(IDP) processes.
TRANSPORT
SALGA Limpopo developed a draft Discussion Paper on
Municipal Traffic License Agency Fees. Presentation of the
draft Discussion Paper on Municipal Traffic 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
Traffic 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 profile and
build a good relationship between SALGA Eastern Cape
and the Department of Transport. It was to update the Cllrs
as well as the officials 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 offices. 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 identification of the
upgrading of the Mafikeng International airport, development
of a Regional Aviation Safety Strategy (SACAA), and the
finalisation of Air Traffic Management Roadmap (ATNS). All
these identified 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
electrification 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 electrification 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 electrified customers. The
understanding in sharing the approved municipality
funded and executed electrification 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 Electrification
Programme (INEP).
•
The understanding of the approach that within
the current framework only municipalities with
distribution licence issued by NERSA are entitled to the
electrification subsidy administered by the Department
of Energy (DoE).
49
•
The understanding that municipalities without the
distribution licence are expected to be serviced
by Eskom as an implementing agent of DoE for
electrification programme.
All assets to be created, must comply with minimum Eskom
standards for electrification projects:
•
An indication in writing that all designs as well as
technical details have been approved by Eskom
•
The municipality identifies the town or village to be
electrified and submits a formal application letter to
Eskom Electrification Planning Department.
•
The field investigation and verification of application
will be undertaken by Eskom Electrification 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 confirmed to be available, the
municipality will be requested to submit the proposed
electrification project detail design in line with Eskom
standards
•
The proposed detail design will be taken to the Technical
Evaluation Forum (TEF) for approval
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:
•
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.
•
Approval in writing from the DoE Minister prior to
electrifying within Eskom supply area.
•
On receipt of the required payment, a site handover/
kick-off meeting will be organised with all stakeholders
•
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
•
Execution of the planned electrification connections by
the municipality
•
The municipality will submit electrification connections
data in the prescribed format (PCS file) to Eskom
for verification, 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
satisfied, sign-off the handing over certificate
•
•
•
•
•
•
50
The DoE is responsible for planning and funding
and will manage municipality funded and executed
electrification projects.
All assets created with electrification funding are ringfenced and belong to the state.
The DoE as a sector leader will continue to lead the
electrification programme and any entity that makes
funding available for electrification must apply to the
Minister for authorisation.
The asset created will be included as part of the
electrification 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.
A Municipality Council Resolution indicating that
the created assets will be handed over to Eskom
for operation and maintenance as well as revenue
collection
•
On receipt of signed-off handing over certificate by COW
and PCS files, an outage to energise the electrification
will be conducted
•
Implement the process on all municipality executed
electrification projects
•
Ensure that all stakeholders are conversant with all the
requirements
•
Individual municipalities indicated their challenges
regarding electrification 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.
51
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:
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;
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 fulfilment 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 financial year in the following areas:
SALGA has made advances in defining a local
government position in the rendering of sport and
recreation services and facilities; and has represented
local government in the solidification 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 antipoverty 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.
•
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 financial 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;
•
52
Provincial workshops have been held on both the
MDGs and the Human Development Framework and
PO3. Social Cohesion - Transversal (gender, youth,
children, HIV/AIDS) social-economic issues
mainstreamed.
Not
Achieved
1
2%
Fully
Achieved
59
98%
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 efficient financial system. However, it has
emerged that the funding models for a number of functions
residing at the local government level have compromised the
efficacy 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 financial mechanisms is a potentially
drawn out process, the directorate has developed positioning
papers which, in its fulfilment of its advisory role, seek to
present a position that will be most conducive to enabling local
government to fulfil its mandate in Libraries and Sport and
Recreation with adequate financial capacity and in the most
efficient 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
officials 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
53
to library services between the Provincial Department and
Municipalities.
•
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
•
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.
On 5 July 2011, SALGA Free State in partnership with
Centre for Economic and Governance on AIDS in Africa
(CEEGA), trained 20 officials in eight municipalities on
HIV and AIDS software programme that tracks spending
on AIDS budget.
•
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 fulfilled its advisory and advocacy roles for local
government by making sure that South Africa’s first National
Sport Plan maps out a programme for local government and
takes into account municipal challenges.
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 officials 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
1.2.
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.
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
•
54
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
1.3.1 Disaster Risk Management Training and Capacity
Building:
SALGA recognised that councils and local government
officials 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/officials to be trained by March
2012. This training also targeted key SALGA officials. In total,
188 councillors and officials were trained, with the following
provincial disaggregation:
•
Polokwane (Limpopo) – 24 councillors and officials
were trained
•
Kimberly (Northern Cape) – 16 councillors and officials
were trained
•
Springbok (Northern Cape) – 22 councillors and
officials were trained
•
Bredasdorp (Western Cape) – 13 councillors and
•
Witbank (Mpumalanga) – 16 councillors and officials
were trained
•
Nelspruit (Mpumalanga) – 20 councillors and officials
were trained
•
Clarens (Free State) – 23 councillors and officials were
trained
•
Kuruman (Northern Cape) – 16 councillors and officials
were trained
•
Upington (Northern Cape) – 19 councillors and officials
were trained
•
Nelspruit (Mpumalanga) – 20 councillors and officials
were trained
•
Potchefstroom (North West) – 18 councillors and
•
Mafikeng (North West) – 19 councillors and officials
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 officials 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 significantly 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 financial years conducted detailed studies and
analyses of the status of disaster risk management in the
municipalities of South Africa.
Based on the findings 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 findings, the directorate rolled out a training programme
for both councillors and officials. 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 fire 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,
55
for purposes of ensuring that Fire Safety standards are met in
all registered ECDs and Old Age Homes.
•
Western Cape, October 13, 2011 at Worcester Council
Chambers
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, multidisciplinary approach aimed at reducing the risk associated
with hazards and vulnerability.
•
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 workshop was attended by councillors, municipal officials,
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 benefit municipalities
by their data being verified 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.
56
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 first 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) beneficiaries
were women. Mohokare Municipality has identified 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 five 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 financial 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 fiveyear 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 findings conducted by
Gender-links and Gender Justice Alliance. It was clear from
the discussions that the country has come a long way since
its first local government elections in 1995. SALGA was able
to take stock of what has been achieved in terms of women
representation and influence 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 official 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 officials 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 define the context for the mainstreaming of
transversal/special programmes in local government,
highlighting specifically the Integrated Development
Planning process.
57
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.
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.
The aim of the Community Development Manual for Councillors
was to to appropriately equip MMCs with knowledge and
expertise on areas of community development.
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.
•
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 benefited 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
58
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 finished 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 financial
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 fight against HIV/AIDS.
SALGA Limpopo in partnership with the Office of the Premier
and Department of Health convened a learning event where
40 people which are municipal managers, mayors and HOD
and other officials 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 KwaZuluNatal, 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 difficult 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.
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).
59
Youth Development: Economic Development and
Entrepreneurship
•
To
promote
economic
diversification
entrepreneurship development in South Africa
Youth Development has emerged as a critical factor in the
advancement of South Africa’s socio-economic growth and
development path. In fulfilling the role of SALGA as a base of
support and advice to member municipalities, the Community
Development directorate has in the 2011/12 financial year,
sought to establish strategic partnerships with organisations
that have emerged as key actors in driving the youth
development agenda.
•
To promote public, private partnerships among small
and medium enterprises.
2.4.
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:
•
•
•
60
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.
and
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 field 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 define 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 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
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
officials that are responsible Local Economic Development and
Youth issues in the Municipalities, Department of Economic
Development and other sector department.
2.5.
the implementation of ECD programmes among various role
players. The objectives of the roundtable were:
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 define 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 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 define 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 alreadyestablished Children’s Rights Advisory Council, and to draft
a District Outreach Programme on Child Trafficking/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.
61
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 Officials 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 Office 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
identified. Further, an Assessment regarding representation
(Councillors) and recruitment (Officials) 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
62
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 five (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.
63
ECONOMIC DEVELOPMENT
MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS
PO4. Economic Issues - Municipalities drive growth and
employment creation, both in urban and rural areas
Not
Achieved
1
2%
Fully
Achieved
45
98%
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
64
unemployment, and with all rural development initiatives
being implemented in “municipal space”, it is crucial that
the role of the local government sector be clarified on rural
development. The clarification 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
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.
SALGA also prepared and submitted comments on the draft
Simplified 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 finalization of the simplified framework. The
inputs of SALGA ensured that the issues affecting the local
government sector are adequately addressed in the policy
formulation process. SALGA identified a number of key issues
in the draft green paper that need clarification as they may
have a bearing on the functions of municipalities.
These key issues include the need to:
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 financial
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 specifically 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 Office of the Valuer
General, Land Rights Management Board and the Land Rights
Management Commission and continuously provide input into
policy proposals.
•
Define 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.
•
Define 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 simplified IDP Assessment framework for smaller
municipalities is one of the requirements of the LG Turnaround
Strategy. The preparation and eventual implementation of
the simplified IDP framework will give effect to differentiated
approach to municipal planning and assist in improving
service delivery.
65
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 identified difficulties
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 identified 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 identification 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
insignificant ratio of fully functional forums dedicated for local
66
economic planning though there are those which are sector
specific. 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
officials, 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 platform for networking amongst practitioners from
different sectors as well as topic specific Communities
of Practice.
In addition to these services, the SA LED Network is engaged
in a wider range of other activities:
A forum to exchange knowledge and successful LED
practice, for municipal peer-to-peer support and
learning across disciplines;
•
Preparation of A councillor’s guide to LED in South Africa
on the occasion of the SALGA National Conference in
2011.
An online space for research and collaborative working
on LED-related topics, such as informal trade, tourism,
small town regeneration, agriculture, SMMEs and more;
•
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.
Free access to thought leadership, news, events, tools,
publications, job opportunities etc, through a large LED
library, newsletters and newsflashes;
67
•
•
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 final 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 final consultative workshop, which included over
30 stakeholders from government, labour and the informal
sector, was held on 16 March 2012.
This provided for the final 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.
68
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
newsflashes and 3 printed newsletters
•
National Conference exhibition on LED and the launch
of a Councillor Guidebook to LED for newly elected
Councilors and officials
•
Maintaining existing and developing new partnerships
with key national and international organizations in the
field 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 specific needs and interests facing LED
officials within municipalities.
SALGA, implemented the Good Practice Scheme Project
(GPS), which is targeting five 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.
•
MLM should develop its own corporate image strategy
that seeks to define 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 defined in Sunderland,
which enables them to know exactly who does what,
and each field 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 five 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 benefited 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 benefitted
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 importance of stakeholder engagement and
relationships with these stakeholders is important for
the success of the Municipality.
•
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.
•
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
69
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 qualified
government officials 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 officials 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 first of
its kind. The workshop highlighted why municipalities have to
70
align their LED strategies with key priority areas of government
both provincially and nationally.
LED MATURITY ASSESSMENT TOOL
With financial 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 officials 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 officials 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
significantly 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 officer 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 refined 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 significantly
towards agriculture as a result of the project with increased
skills development and training for officials 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 officials and field 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
71
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 first 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 first 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
72
“identification 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 first Job Linkage Centre
within the Municipality.
EPWP
In the Free State, the EPWP roundtable was convened with
the five 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.
LABOUR RELATIONS
A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A MUTUAL GAINS APPROACH
PO5. Labour Relations - A productive, stable labour
environment, supported by a ‘mutual gains‘ approach
Not
Achieved
7
21%
Fully
Achieved
26
79%
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 offices 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 officer for a case in Sedibeng
•
Advice on the appointment of staff: Mayoral Office Lesedi municipality.
•
Appointment of presiding officer for Emfuleni
•
Assistance with Job Evaluation - various municipalities,
namely Mogale City, City of Johannesburg, Ekurhuleni,
Lesedi, WRDM, Emfuleni, Sedibeng and Midvaal.
73
•
Advice and appointment of prosecuting officer for a
case in Midvaal.
SALGA Mpumalanga capcicitated 29 Presiding Officers
on disciplinary skills during the training session which was
conducted from 22-24 August 2011.
A list of trained Presiding Officers 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
confirmed to have established functional LLFs, whilst all 21
municipalities have confirmed 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:
•
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.
Mbombela;
•
Nkomazi;
•
Umjindi;
•
Emakhazeni
•
Emlahleni
•
Mkhondo
•
Chief Albert Luthuli
SALGA Free State convened a meeting on 29 July 2011,
constituted by all CFOs in assessing the financial 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.
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
74
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.
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 financial 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 represented at Conciliations on Medical aid, Retirement
Fund, Recruitment and Selection, Rental allowance.
SALGA North West capacitated and convened LRPF and
HRPF meetings with Mafikeng and Ditsobotla LMs in May
2011, and provided labour advice and assistance on various
other matters between April and June 2011 including:
SALGA Northern Cape supported and advised municipalities
with regard to dispute resolution and discipline management.
•
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
officials in the Office 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 conflict 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 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.
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; Mafikeng LM;
Moretele LM; Madibeng LM; Tswaing LM; LekwaTeemane LM; Rustenburg LM; Naledi LM ; Ditsobotla
LM; City of Matlosana; Greater Taung LM [Conciliation
& Arbitration].
•
Kgetleng Rivier LM; Moses Kotane LM; KagisanoMolopo 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:
75
•
Rustenburg LM; Kgetlengrivier LM; Mafikeng 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 SegomotsiMompati 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.
76
SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM
IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES
PO6. Sound Financial Management and Governance
system - Improved financial management and
financial viability of municipalities
Not
Achieved
7
20%
Fully
Achieved
28
80%
ANALYSIS OF MUNICIPAL FINANCIAL STATEMENTS
A report on the state of municipal finances 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 financial management
and performance of municipalities during the 2009/10 and
2010/11 financial 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 financial management
and governance practices.
Based on the analysis in the report, municipal support
mechanisms have been identified for implementation in the
next financial year. A key support programme for 2012/13
involves the adoption by SALGA Provincial offices of at
least two struggling municipalities to support them towards
improvement in financial performance and audit outcomes.
SALGA also provide practical financial management training
as identified in their respective provinces.
COUNCILLORS TRAINING ON MUNICIPAL FINANCES AND LED
AFTER LOCAL GOVERNMENT ELECTIONS
SALGA inducted all councillors on important aspects of
municipal finances, budgeting and reporting during the
general induction of councillors. In addition, advanced
induction aimed at councillors responsible for municipal
finances has been conducted.
Approximately 8 600 councillors where inducted on municipal
finance issues in partnership with National Treasury.
Furthermore, SALGA and NT conducted a two-day advanced
induction for Mayors and councillors responsible for municipal
finance. 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 finance for one full day
provided all councillors with a basic understanding of their role
in budgeting, financial 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 finances for councillors responsible for municipal
finance and mayors. These induction sessions were important
77
to ensure that new councillors are aware of the municipal
budget process and financial reporting processes so that they
are able to fulfill 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 finances and financial management. The
Budget Week workshops provided a platform to present
best practices in municipal financial management and was
a learning exchange between municipalities and other public
and private stakeholders with an interest in local government.
78
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
financial 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
financial 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 final 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 fiscal
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 financial 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
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 find itself breaching the law in terms of the
constitutional duty to respect the right to access water and
requires constitutional justification.
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, reflecting 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.
MUNICIPAL PROPERTY RATES ACT (MPRA) AMENDMENTS
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 finances 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.
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
Officers. 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.
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
BUDGETING
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.
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
79
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.
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.
MUNICIPAL COMPETENCY REGULATIONS
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.
SALGA Gauteng provided support provided to municipalities on
competency regulations. This states that after 2013 municipal
employees who do not have qualifications will be deemed
unemployed. Local Government budget office is challenging
as it entails tariff setting, revenue collection, procurement
procedures, and ability of municipalities to borrow. These
dynamics make managing finances 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 finance in the province and other
relevant stakeholders did not play their role effectively in terms
of emphasising the importance of good financial 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
officials who should be working on the standards.
SALGA Free State conducted a GRAP impact assessment in
six identified municipalities during the week of 3 to 14 March
2012.
80
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 qualified 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 identified 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 identified 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
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
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 five (78 percent) of the thirty two municipalities
have established MPACs before the end of April 2011.
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 defining
salient features thereof including unconditional and conditional
grants to local government. The brochure also outlines per
municipality each fiscal transfer to be received from national
and provincial government departments in the 2011/12
financial 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.
81
STABLE MUNICIPAL GOVERNANCE
PO7. Stable Municipal Governance - Stable municipal
governance
Not
Achieved
2
14%
Fully
Achieved
12
86%
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 first 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
82
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 financial 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
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 Office Bearer’s handbook.
Also Telephonic advise provided to Mafikeng, 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 office
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 Affirmation by a councillor,
Central Karoo District on appointment of Acting MM, Breede
Valley on Rules of Order, George on the use of Official 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
office bearers, Buffalo City on Office 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 Office 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 redetermination process is finalised.
GUIDELINES ON ROLES AND RESPONSIBILITIES OF POLITICAL
OFFICE BEARERS
Final guidelines on roles and responsibilities of political office
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
office 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 office bearers and to prepare the
relevant terms of reference, aimed at ensuring that the council
functionaries clarifies and understand their roles better and
that the municipality therefore functions more effectively.
83
The Municipal Office 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 specific
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 confidence in the municipality.
A workshop was held on 07 September 2011 on the
clarification of roles and responsibilities of all office 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 identified 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 officials.
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 identified impediments on the functioning of the ward
84
committees which were escalated to the relevant Speaker’s
Offices.
SALGA Northern Cape assisted five 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 identified
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 certificates 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
Refined 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 first 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-aPhofung, Phumelela Local Municipalities, and Metsimaholo
municipalities.
85
CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT
ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS
IMPROVED SERVICE DELIVERY
PO8. Capacity Building and Institutional Development Enhanced skills and organisational systems and structures
of municipalities towards improved service delivery
Not
Achieved
18
32%
Fully
Achieved
38
68%
MUNICIPAL HUMAN RESOURCES MANAGEMENT
In the 2011/12 financial 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 financial 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.
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
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
86
The Centre for Municipal Research and Advice (CMRA) was
appointed to facilitate the portfolio-based training in five
provinces. The aim of the training was to provide councillors
with an in-depth knowledge of their portfolios thereby creating
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 fiscal framework makes provision for
the performance of environmental function.
Workshops regarding energy efficiency and renewable energy
were held in three provinces, Western Cape, North West, and
Gauteng. The North West and Gauteng workshops involved
knowledge sharing amongst officials and councilors regarding
the implementation of energy efficiency programmes in
municipalities. The Western Cape Workshop involved
municipalities from the Eden District Municipality. These
municipalities were guided through a process of developing
energy efficiency 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 certification requirements. The
certification 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 identification. A total of 695 councillors
participated in the Audit.
MUNICIPAL ICT PRACTITIONERS NETWORK
In line with the advisory and profiling 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 benefit, 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.
87
NATIONAL ICT LOCAL GOVERNMENT EVENT
SALGA hosted its flagship 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 benefit the municipalities and overcome
common challenges.
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).
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 field 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 profile 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 fulfill 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
profile 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,
88
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
-
Certificate in Local Government Law
and Administration
University of Fort Hare
9 January 2012
31
10
Advanced Certificate in Local
Government Law and Administration
9 January 2012
25
-
Diploma in Local Government Law
and Administration
9 January 2012
32
-
Masters in Public Administration.
5 January 2012
30
-
Certificate in Public Administration
for Community Services (NQF Level 4
programme).
14 December 2012
87
-
Councillors attended the Rhodes
Rhodes university
Summer School on Transformation of
Local Government
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
23-24 August 2011
20
35
LED Roundtable Events
11-12 October 2011
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
89
SALGA EASTERN CAPE
THE LEAD)
DATE
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
Councillor Induction
Advanced
29 Feb-1 March 2012
Waste
Management
Induction
Councillor
8 March 2012
Municipal
Finance
Advanced
14-15 March 2012
Human
Settlements
Induction
Councillor
28-30 March 2012
NUMBER OF
COUNCILLORS
NUMBER OF
OFFICIALS
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
1634
403
TOTAL
2 037
90
SALGA FREE STATE
THE LEAD)
DATE
Training on HIV/AIDS
Centre for Economics in
Governance in Africa (CEEGA)
05 July 2011
Training of Trainers for the Councillor
Induction Programme
CoGTA and LGSETA
9 – 10 June 2011
Councilors induction program
CoGTA and LGSETA
NUMBER OF
COUNCILLORS
NUMBER OF
OFFICIALS
30
6
7
27 June to the 15 July
2011
527
-
Train-the-Trainer workshop with the
SALGBC and LGSETA
intention to roll-out the LLF training to
all Member Municipalities
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
P3 Project Tariff modelling training
session
P3 Project
16 June 2011
IR Training to establish a panel
of presiding chairpersons and
prosecutors / initiators
SALGA , LG SETA and
13 – 15 September
2011
Disaster management training
SALGA National and NW University 5 – 7 December 2011
Training Tariff setting model
P3 Project
IR Change
Mohokare Local
Municipality
22 Officials
16
-
4
16
30
trainers
for Setsoto,
Mohokare and
Naledi Local
Municipalities
3 - 4 August 2011
0
24
3 – 7 October 2011
20
2 February 2012
6 March 2012
8 March 2012
Training on Asset Accounting which
is a requirement on compliance
with GRAP and other International
Standards
Akhile Management Consulting
District LLF training
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
Provincial Informal Trade Summit
Leak Plugging Training
13 – 14 October 2011
SALGA P3
14–15 November 2011
17
30
12
7
91
SALGA FREE STATE
THE LEAD)
DATE
NUMBER OF
COUNCILLORS
NUMBER OF
OFFICIALS
12
18
Basic Sanitation White Paper Review
Workshop
21 November 2011
Provincial workshop on Upper Limits
of Salaries, Allowances and Benefits
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
6- 9 February 2012
14
5
IDP Environmental Chapter Workshop DETEA
24 February 2012
13
16
By-Laws Provincial Workshop
29 February 2012
53
4
8 - 9 March 2012
18 Councillors
responsible for
LED
13 LED
practitioners
Training on Mentoring and Coaching
Water Affairs and MIS unit
CoGTA
LED tools training
Waste Management Councillor
Induction Programme
SALGA National and DEA
06 March 2012
12
6
Sanitation Tools and Guidelines Rollout 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 finance
National Treasury
27 – 28 March 2012
31
-
Assessor Training Course focusing on Aurecon
the Waste Water Process Controllers
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
952
398
TOTAL
1 350
92
SALGA GAUTENG
DATE
NUMBER OF
NUMBER OF
COUNCILLORS
OFFICIALS
THE LEAD)
DLG+H and all municipalities
4-8 July 2011
803
0
Councillor Skills Audit
Gauteng City Regions Academy 4-8 July 2011
695
0
3
22
(GCRA)
LED Training
Gauteng City Regions Academy 24-25 August 2011
(GCRA)
IR Training
SALGBC
7-9 September 2011
0
17
LLF Training
SALGBC
22-24 February 2012
3
12
0
5
3
16
(Westonaria LM)
1-3
February
2012
(WRDM & Randfontein
LM)
28- 30 November 2011
(Sedibeng District)
Water Services Cllr Induction
Department
of
Water
Affairs, 27-28 February 2012
96
2
and
National 29 Feb-1 March 2012
7
0
51
2
22
0
20 March 2012
1
15
28-30 March 2012
49
0
1733
91
DLG+H, LGSETA
Municipal Finance Advanced Cllr SALGA
National
Induction
Treasury
Waste Management Cllr Induction
Department of Environmental Affairs 8 March 2012
Municipal Finance Advanced Cllr SALGA
Induction
National
and
National 14-15 March 2012
Treasury
Sign language introductory training SALGA
session
Human Settlements Cllr Induction
DLG+H
TOTAL
1 824
93
SALGA LIMPOPO
DATE
NUMBER OF
NUMBER OF
COUNCILLORS
OFFICIALS
THE LEAD)
Councillor Induction Programme
LGSETA and DBSA
27 June -16 July 2011
1117
None
Portfolio Based Induction on Water
Dept. Water Affairs
06 -18 November 2011
437
35
13-14 February 2012
42
3
None
23
Services
Finance Management Training
Disciplinary hearing skills Training
LGSETA
11-13 July 2011
Labour Relations Act Training
None
13-14 March 2012
26
4
Traditional Leaders Induction
None
27-29 March 2012
138
6
University of Pretoria
10 February 2012
32
21
12 October 2011- 30
86
21
11
13
Programme
Executive Leadership Management
Programme
Municipal Finance Management
Programme
Training of Training Committees
May 2012
LGSETA
14 February- 20 March
2012
Ward Committee Training
COGHSTA
Disaster Management Training
None
27-29 February 2012
08
17
12
23
Free Basic Sanitation Workshop
Department of Human Settlements
13 April 2011
Assessment of Organizational
Department of Environmental
12 April 2011
15
Capacity for Environmental
Affairs (National)
NERSA
03 February 2012
46
Sanitation Tools Roll Out Workshop
Department of Human Settlements
27 March 2012.
50
Portfolio Based Induction For
LED Resource Centre
09 December 2011
Performance workshop
SALGA / NERSA municipal
engagement workshop on Municipal
Electricity Distribution Licenses in
Limpopo Province
40
03
66
03
39
03
Municipal Council on Role: Elias
Motsoaledi Local Municipality
LED Resource Centre
Municipal Council on Role: LepelleNkupi Local Municipality
LED Resource Centre
07 February 2012
Municipal Council on Role: Greater
Letaba Municipality
94
SALGA LIMPOPO
DATE
NUMBER OF
NUMBER OF
COUNCILLORS
OFFICIALS
THE LEAD)
LED Resource Centre
08 February 2012
11
03
LED Resource Centre
09 February 2012
38
03
LED Resource Centre and
17 February 2012
19
03
Municipal Council on Role:
CoGHSTA
LED Resource Centre
16 March 2012
48
03
LED Resource Centre
20 March 2012
60
04
LED Resource Centre and
29 March 2012
7
05
Municipal Council on Role: Belabela
CoGHSTA
Provincial Tresury
14 November 2011
55
05
National Treasury
13-14 February 2012
78
05
Stakeholder meeting
August 2011
August 2011
Knowledge Management, Innovation
SALGA alone
22-23 March 2012
80
Elias Motsoaledi LM
29 November 2011
270
Ward Committee Training and
Elias Motsoaledi LM
29 November 2011
270
12
Induction
Tubatse LM
07 December 2011
251
10
Fetakgomo LM
08-09 February 2012
110
8
Lepelle Nkumpi
30-31 March 2012
130
6
3481
478
Municipal Council on Role: Musina
Municipality
Municipal Council on Role: Mutale
Municipality
Mookgopong Municipality
Municipal Council on Role: Giyani
Municipality
Municipal Council on Role: Tubatse
Municipality
Municipality
Workshop On Oversight Role of
Councillors
Advance Councillor Induction on
Municipal Finance
33
92
and Communication Seminar
Ward Committee Training and
Induction
TOTAL
3 959
95
SALGA MPUMALANGA
DATE
NUMBER OF
NUMBER OF
COUNCILLORS
OFFICIALS
6-7 December 2011
18
39
THE LEAD)
Workshop on the Guidelines for
CoGTA and Office of the Premier –
Mainstreaming Transversal issues
Special Programmes ( OSDP, ORC,
and Community Development Manual OSW)
for Councillors
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 Certificate in Municipal
University of Johannesburg and
March – October 2011
48
Governance
LGSETA
Advanced Certificate in Municipal
March – October 2011
09
Governance
LGSETA
Local Government Accounting
SAICA and LGSETA
July 2010 – November
250
Certificate
Integrated Development Plan (MIDP)
2012
DBSA and LGSETA
May 2011 – May 2012
20
DBSA and LGSETA
12 – 16 March 2012
45
00
DBSA and LGSETA
September 2011 – July
02
18
Learnership
Integrated Development Plan, Skills
Programme
Local Economic Development
Learnership
National Certificate: Water and Water
2012
LGSETA
Waste Management
February -2010 –
250
December 2011
Certificate: Occupation Directed
March 2011 – October
Education Training and Development
LGSETA
2011
Further Education and Training
Direct Marketing Association of
February 2011 –
Certificate: Marketing
South Africa (DMASA) and Services October 2011
18
Practices
57
Seta (SSETA)
Workshop on Disciplinary Code and
None
05 May 2011
Procedure Collective Agreement
– Dr Pixley Ka Isaka Seme Local
Municipality
96
21
SALGA MPUMALANGA
DATE
NUMBER OF
NUMBER OF
COUNCILLORS
OFFICIALS
THE LEAD)
Workshop on Organisational Rights
None
07 April 2011
34
Training for Presiding Officers
LGSETA
22-24 August 2011
29
PMS Workshop
None
03 February 2012
06
36
Training for LLF – Bushbuckridge
None
22 February 2012
01
12
Workshop on Collective Agreement on None
10 November 2011
04
61
Disciplinary Code, LLF and Minimum
(Gert Sibande District),
Essential Services Level Agreement
24 November 2011
21
51
(Main Collective Agreement) for LLF –
Mbombela Local Municipality
Local Municipality
(Ehlanzeni District) and
01 December 2011
(Nkangala District)
MIG Workshop
COGTA
*Water Conversation, Water Demand
DWA
21 September 2011
20 participants
Management and local Regulation
(Cannot be verified whether
Workshop
councilors or officials)
*Farm Dweller Electrification
Department of Energy; COGTA,
Workshop
Eskom, DARDLA
27 July 2012
15 Participants
(Cannot be verified whether
councilors or officials)
TOTAL
108
Overall TOTAL
1051
1159
97
SALGA NORTH WEST
DATE
NUMBER OF
NUMBER OF
COUNCILLORS
OFFICIALS
7 September 2011
14
07
22, 26 , 30 September
69
18
47
11
130
36
THE LEAD)
Workshop on Powers and Regulations SALGA
(Troika + 1)
District-Based Workshops on Good
PwC, Treasury, DLGTA
Governance (King 3)
Workshop on Cllrs’ welfare Support
2011
SALGA
28 September 2011
TOTAL
Overall TOTAL
98
166
SALGA NORTHERN CAPE
THE LEAD)
DATE
NUMBER OF
COUNCILLORS
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
19 – 20 March 2012
30
15
Disability Framework Workshop
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
Presiding Officers & Prosecutors
Capacitated on Labour Related Issues
113
26-27 January 2012,
02-03 February 2012
None
19
23 February 2012,
28 February 2012
None
66
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
Main Collective Agreement and
Conditions of Service
CoGTA
Institutional and Administrative
Systems
DWA
Executive Leadership Development
Programme (ELDP)
LGSETA
15 – 16 April 2011
20 – 21 April 2011
12 – 13 May 2011
18 – 19 May
27 – 28 May 2011
21 – 22 July 2011
27 – 28 July 2011
19 – 20 July 2011
11 – 12 August 2011
TOTAL
81
1 115
99
SALGA WESTERN CAPE
INTERVENTION (SALGA MUST
BE THE LEAD)
Executive Leadership
Development Programme (ELDP)
UWC
DATE
NUMBER OF
COUNCILLORS
NUMBER OF
OFFICIALS
Group 1
3-7 October 2011-Mod1
31 October-4November 2011-Mod
2
28 November-2 December 2011Mod 3
23-27 January 2011-Mod 4
20-24 February 2012-Mod 5
26 March 2012-Mod 6
37
Was 38
Cllr Chabaan of
Cape Winelands
DM excused
herself from the
course on 17
October 2011
0
Group 2
10-14 October 2011 –Mod 1
7-11 November 2011-Mod 2
5-9 December 2011-Mod 3
31 Jan-3 February 2012-Mod 4
27 February-2 March 2012 Mod 5
02 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
19 – 20 March 2012 Day 1
29
4
19 – 20 March 2012 Day 2
25
2
15
0
CIP 3 Mayors and MMCs for
Finance Training
SALGA/Treasury
Conflict Resolution and Mediation Centre for conflict resolution 15 February 2012
Training
100
SALGA WESTERN CAPE
BE THE LEAD)
Council Portfolio Training
WC DLG/WC Treasury
DATE
NUMBER OF
COUNCILLORS
NUMBER OF
OFFICIALS
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 Efficiency 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
Landfill 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
11 November 2011
10
6
Municipal Accreditation Workshop DHS/CoCT/SALGA/Treasury
101
SALGA WESTERN CAPE
BE THE LEAD)
Ward Committee Training
DLG
Service Improvement Training (SI) P3/SALGA WC
Roles and responsibilities of the
Municipal P Accounts Committee
SALGA NATIONAL
Budget Week
DATE
NUMBER OF
COUNCILLORS
NUMBER OF
OFFICIALS
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
31 October -3 November 2011
0
34
and 8-9 February 2012
0
12
25 November 2011
20
0
24 November 2011
11
0
Integrated Development Planning
SALGA
17/18 August 2011
21
0
People with Disabilities
SALGA
16 November 2011
and 15 August 2011
12
28
HIV/AIDS
SALGA
1February 2012
19
33
Youth Development
SALGA
25 February 2012
4
43
24 -26 August 2011
2
21
23-25 November 2011
2-4 April 2011
6
14
Municipal Development Goals and SALGA
Human Dev Framework
13 Oct 2011
20
26
Water Sector Councillor
DWA
31 January 2012
70 Councillors
33 Officials
Waste Councillor Induction
DBSA
20 March 2012
22
13
Waste Management
TBC
28 February 2012
11
23
4892
659
Gender
Disaster management
SALGA-ACDS
TOTAL
5551
102
PRIORITY 9:
REFORMING ORGANISED LOCAL GOVERNMENT
A MORE EFFECTIVE, RESPONSIVE, AND FINANCIALLY VIABLE SALGA
PO9. Reform Organised Local Government - A more
effective, responsive and financial viable SALGA
Not
Achieved
4
36%
Fully
Achieved
7
64%
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.
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 finding common ground on the key proposals
that require priority attention.
The proposed amendments to Organised Local Government
Act and other legislation were submitted to the SALGA National
103
CLIMATE CHANGE RESPONSE MEASURES AT MUNICIPAL LEVEL:
INTEGRATED CLIMATE CHANGE RESPONSES IN DEVELOPMENT PLANNING AND MANAGEMENT
PO10. Climate Change response measures at municipal
level - Integration of climate change responses in
development planning and management
Not
Achieved
2
33%
Fully
Achieved
4
67%
ENERGY EFFICIENCY
SALGA and the SDC have signed a memorandum of
understanding on energy efficiency 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
efficiency and demand-side management programmes on
municipal finances. This analysis will provide municipalities with
an understanding regarding the impact of these programmes
on municipal finances. The findings of the analysis will assist
SALGA to influence national policy to address the implications
of the implementation of energy efficiency and demand-side
management programmes on municipal finances.
104
Further to the analysis conducted, workshops were conducted
in three provinces (Western Cape, North West, and Gauteng)
regarding energy efficiency and renewable energy. The North
West and Gauteng workshops involved knowledge sharing
between officials and councillors regarding the implementation
of energy efficiency 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
efficiency housing project to be the flagship 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 efficiency and renewable energy strategies and action
plans for their municipalities.
ACID MINE DRAINAGE
Engagements with Gauteng municipalities took place during
the reporting period. The first engagement looked at the
implications of Acid Mine Drainage (AMD) in the province
and also sought to find 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 financial 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 office 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 profile
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 findings 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 five municipalities (Umsobomvu, Magareng,
Gamagara, Kheis, and Richtersveld) to develop climate
change response plans. SALGA Limpopo finalised the Draft
District Climate Change Response Plan for the province.
105
106
Chapter 3
FINANCIAL OVERVIEW AND ANNUAL
FINANCIAL STATEMENTS
This chapter contains reports by the SALGA Chief Financial
Officer, Audit Committee Chairperson, Auditor-General,
and Accounting Authority (Chairperson and Chief Executive
Officer). It also contains financial statements, statements of
gifts, donations, sponsorship, and further detailed performance
information summaries
107
3.1 report of the chief Änance ofÄcer
3.1.1 OVERVIEW OF OPERATING RESULTS
Nceba Mqoqi
Chief Finance Officer
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 deficit of R8.3 million), thereby addressing the
going-concern considerations from prior year.
The overall financial 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 financial 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 financial management practices are sound as evidenced the Auditor-General expressing an unqualified audit
opinion on SALGA’s finances for a third consecutive year.
108
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 financial year
Metropolitan municipality
A flat rate of R9.5 million subject to an annual inflationary
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
109
of the SALGA’s constitution, had buoyed the collection rate during the year, such that it peaked at 97 percent by the first half
of the financial 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 financial year is illustrated below.
The key feature of the payment level curve for the 2011/12 financial 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 financial years between SALGA and its
membership this is not always possible.
110
The payment levels as at 31 March 2012 per province are tabulated below:
Payment levels
Current year
Province
Payment levels
Overal
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 specific programmes in order
to alleviate the over-reliance on membership fees.
111
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:
112
Province / Directorate
Adjusted Budget - 2011/2012
Financial Year
Actual - 2011/2012 Financial Year
R thousand
Office of the Chief Executive
R 35 683
R 37 574
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
R 15 726
R 16 084
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
R 272 111
R 284 712
Community Development
Municipal Infrastructure & Service
Strategy, Policy & Research
Grand Total
113
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. fulfilling
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 offices the above mentioned activities/functions are replicated throughout with a regional and geographic bias.
114
The activities undertaken in the two programmes (i) Office 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 office accommodation;
facilities management; ICT infrastructure & services etc. Although activities at provincial offices 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 office and the provincial offices perform are aligned as follows:
SALGA NATIONAL OFFICE
•
Organisation-wide strategy development.
•
Function-specific 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.
•
•
SALGA PROVINCIAL OFFICES
•
Interpretation of the SALGA strategy and ensuring alignment
of provincial tactical and operational plans to the organisationwide strategy.
•
Providing input to the organisational strategic formulation
process.
•
Provision of business information based on geographical
context.
Organisational-wide business planning.
•
Organisational-wide performance planning, monitoring and
facilitation.
Programme execution in the provinces and technical support
(e.g. LGTAS).
•
Provincial organisational performance delivery and reporting.
•
International relations (at national level).
•
•
Programme management integration and evaluation.
Provision of support to municipalities regarding international
relations (e.g. at the level of twinning arrangements in respect
of individual municipalities).
•
Intergovernmental relations (at national level).
•
•
Stakeholder engagement.
Management of intergovernmental relations (e.g. at the
provincial level).
•
Driving and co-coordinating programmes with national strategic
imperatives.
•
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 figure is the non cash flow 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 office accommodation; facilities management; provision of
ICT infrastructure & services; human resource functions.
The activities within the Office 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.
115
Non-operating income
Total non-operating income / (expenditure) reflects 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 five 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
3)
Improve SALGA’s capacity to effectively represent members as the employer.
4)
Enhance and maintain a high profile 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.
116
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 finds 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
117
Priority Outcomes
3.1.1.3 Financial position
The financial position of the organisation as at 31 March 2012 reflects 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.
118
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
1 765 354
15
(2 789 587)
(3 120 457)
1 189 249
165 016
-
-
Amount included in Trade and other receivables - Note 9
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 efficiency. The project has two components: Monitoring of energy efficiency targets in the building
sector to the Department of Energy and Cooperation support to SALGA for the implementation of the capacity building component.
119
2012
2011
Movement during the year – SDC
Opening balance
2 185 847
2 400 000
6 151
1 690
(3 730 899)
(215 843)
1 538 901
-
-
2 185 847
Amount included in Trade and other receivables - Note 8
Deferred income
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 financial year.
As reported on note 34 to the annual financial statements; from 1st April 2012 i.e. the 2012/2013 financial year SALGA
KwaZulu-Natal has rejoined the SALGA fold of a unitary organisation.
In conclusion I express my sincere appreciation to the Chief Executive Officer, 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
120
3.2 report of the audit committee
Temba Zakuza
Audit Committee Chairperson
The Audit Committee is pleased to present the report for the financial 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 financial year. These meetings were attended by external auditors, the Chief
Executive Officer, Chief Financial Officer, the Head of Internal Audit, and other relevant corporate officials. 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 financial interests that may conflict with their duties in this
regard.
121
The table below highlights the Audit Committee members and the record of attendance of Audit Committee meetings:
Record of Attendance
Member
Mr. Temba ZakuzaChairperson
Ms. Octavia Matshidiso MatloaMember
Mr. Chose Andrew Kenilworth ChoeuMember
21/05/11
29/07/11
25/11/11
22/03/12
9
9
9
9
9
9
x
9
9
9
x
x
x
9
9
9
9
9
9
9
Ms. Phumelele Ndumo-Vilakazi Member
Mr. Mahlatsi Phineas MalakaMember
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.
Significant 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 identifies 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.
122
Evaluation of Financial Statements
The Audit Committee has:
•
Evaluated the financial 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 financial statements. It is of the
opinion that the audited financial statements be accepted and read together with the report of the Auditor-General.
TEMBA ZAKUZA
CHAIRPERSON OF THE AUDIT COMMITTEE
Pretoria
31 July 2012
123
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
Introduction
1.
I have audited the financial statements of the South African Local Government Association (SALGA) set out on pages 136
to 210, which comprise the statement of financial position as at 31 March 2012, the statement of financial performance,
statement of changes in net assets and the cash flow statement for the year then ended, the notes, comprising a
summary of significant accounting policies and other explanatory information.
Accounting authority’s responsibility for the financial statements
2.
The accounting authority is responsible for the preparation and fair presentation of these financial statements in
accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and
the requirements of the Public 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 financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility
3.
My responsibility is to express an opinion on these financial 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 financial statements are free from
material misstatement.
4.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial 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 financial 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 financial statements.
5.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
6.
In my opinion, the financial statements present fairly, in all material respects, the financial position of SALGA as at
31 March 2012, and its financial performance and cash flows for the year then ended in accordance with SA Standards
of GRAP and the requirements of the PFMA.
Emphasis of matters
124
7.
I draw attention to the matters below. My opinion is not modified in respect of these matters.
Significant uncertainties
8.
With reference to note 30 to the financial 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 modified in respect of this matter.
10.
The supplementary information set out on pages 205 to 210 does not form part of the financial 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 accordance with the PAA and the General Notice issued in terms thereof, I report the following findings 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 performed 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 defined, verifiable, specific, 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
reflects the facts (i.e. whether it is valid, accurate and complete).
14.
There were no material findings on the annual performance report concerning the usefulness and reliability of the
information.
Additional matter
15.
Although not material findings concerning the usefulness and reliability of the performance information was identified in
the annual performance report, I draw attention to the following matter below:
125
Material adjustments to the annual performance report
16.
Material misstatements in the annual performance report were identified during the audit, majority of which were corrected
by management.
Compliance with laws and regulations
17.
I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding
financial matters, financial management and other related matters. My findings on material non-compliance with specific
matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:
Annual financial statements, performance and annual report
18.
The financial 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 identified by the
auditors were subsequently corrected, resulting in the financial statements receiving an unqualified 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.
Sufficient 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 officer 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 considered internal control relevant to my audit of the financial statements, annual performance report and compliance
with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the
significant deficiencies that resulted in findings on compliance with laws and regulations included in this report.
Leadership
23.
126
The accounting authority did not exercise adequate oversight responsibility regarding financial 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 efficiency is currently underway
Pretoria
31 July 2012
127
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 financial 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 financial statements.
SALGA’s annual financial 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 Office Bearer’s (NOB) approved the 2011/12 annual financial 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 financial statements, fairly reflect the financial 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
financial position of SALGA as reflected in these financial statements.
The NEC is of the opinion that SALGA is financially 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
128
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
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 officio member
Eastern Cape
Cllr. B. Mdzangwa
Ex officio member
Free State
Cllr. P. Tau
Ex officio member
Gauteng
Cllr. S.W. Mdabe
Ex officio member
KwaZulu-Natal
Cllr. D. Magabe
Ex officio member
Limpopo
Cllr. W. Johnson
Ex officio member
Northern Cape
Cllr. G.K. Lobelo
Ex officio member
North West
Cllr. D. Qually
Ex officio member
Western Cape
Mr. Xolile George
Ex officio member (CEO)
Mpumalanga
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 filling 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 confirmed co-option.
129
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 office for
local government.
With the exception of Xolile George who serves as an ex officio member in his capacity as Chief Executive Officer of the
organisation, all other NEC members are councillors and are deemed to be ‘independent non-executive directors’ of SALGA as
defined 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
financial years; and is (in relation to the SOE) not a significant supplier or customer, has no significant 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 office 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 office they occupy.
130
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
167 758
10 061
177 819
Total
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 officio member
Cllr. N. Hermans
Ex officio member
Cllr. N. Sihlwayi
Ex officio member
The members of the performance and remuneration committee have been remunerated as follows, for the year under review:
131
NEC members are not remunerated for the office 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
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
-
-
-
294 889
11 737
306 626
Mr. Blake Mosley-Lefatole
Total
3.4.6
Remuneration of Senior Management
Senior Management includes the Chief Executive Officer, Executive Directors and Provincial Executive Officers. The breakdown
of Senior Management Remuneration forms part of the annual financial statements and reported on note 21.
Annual Remuneration
2012
Annual Remuneration
2011
18 024 716
16 166 781
Contribution to UIF, Medical and Pension
201 269
261 081
Subsistence and Travel Allowance
133 953
455 379
1 533 403
1 410 114
19 893 341
18 293 355
Performance related awards
Total
3.4.7
Going-concern considerations
The SALGA NOB reviewed the annual financial statements for 2011/12 financial year and information regarding the forthcoming
financial 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.
132
•
At 31 March 2012, the statement of financial 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 financial position reflects 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 financial 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.
133
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 fiscas. 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 finalised, 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 financial 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 financial 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 Significance Framework
was developed and agreed to in terms of PFMA Treasury Regulation 28.3.1.
In terms of Section 55, the following are specified as matters that must be reported on in the annual report and financial
statements:
(i)
any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful
(i)
expenditure that occurred during the financial year;
(ii)
any criminal or disciplinary steps taken as a consequence of such losses or irregular expenditure or fruitless
(iii)
and wasteful expenditure;
134
(iv)
any losses recovered or written off;
(v)
any financial 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 significance framework
The organisation has developed and the NEC approved the materiality and significance framework; developed in terms of the
PFMA Treasury Regulation 28.3.1. The framework defines aspects of significance 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 financial statements. These matters
relate to civil matters.
135
3.5 Financial statements
SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION
Annual 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 financial assets
5
536 178
328 154
23 944 893
23 450 698
72 615 381
52 877 109
Total Assets
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 benefit 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)
2 259 566
2 259 566
7 961 792
(4 340 151)
10 221 358
(2 080 585)
Net Assets
Reserves
Revaluation reserves
11
Accumulated surplus
Total Net Assets
136
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
(284 712 398)
(238 234 924)
Operating expenses
Operating (deficit) / 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)
12 301 943
(8 280 076)
Surplus / (deficit) for the year
137
STATEMENT OF CHANGES IN NET ASSETS
Figures in Rand
Opening balance as previously reported
Revaluation
reserve
Accumulated
surplus
Total net assets
2 259 566
3 761 244
6 020 810
-
178 681
178 681
2 259 566
3 939 925
6 199 491
Deficit for the year
-
(8 280 076)
(8 280 076)
Total changes
-
(8 280 076)
(8 280 076)
2 259 566
(4 340 151)
(2 080 585)
Surplus for the year
-
12 301 943
12 301 943
Total changes
-
12 301 943
12 301 943
2 259 566
7 961 792
10 221 358
Adjustments
Prior year adjustments
Balance at 1 April 2010 as restated
Changes in net assets
Balance at 1 April 2011
Changes in net assets
Balance at 31 March 2012
Note(s)
138
11
CASH FLOW STATEMENT
Figures in Rand
Note(s)
2012
2011
Cash flows from operating activities
Receipts
Cash receipts from customers
288 459 580
244 372 454
2 888 249
1 792 085
291 347 829
246 164 539
(275 051 979)
(231 397 337)
(451 939)
(2 927 435)
(275 503 918)
(234 324 772)
28
15 843 911
11 839 767
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 financial assets
3
(208 024)
-
(2 210 984)
(6 868 682)
792 699
(1 084 710)
14 425 626
3 886 375
4 496 275
609 900
18 921 901
4 496 275
Interest income
Payments
Cash paid to suppliers and employees
Finance costs
Net cash flows from operating activities
Cash flows from investing activities
Net cash flows from investing activities
Cash flows from financing activities
Finance lease payments
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
10
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ACCOUNTING POLICIES
1. Presentation of Annual Financial Statements
The annual financial 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 financial statements have been prepared on an accrual basis of accounting and are in accordance with historical
cost convention unless specified otherwise. They are presented in South African Rand.
A summary of the significant accounting policies, which have been consistently applied, are disclosed below.
These accounting policies are consistent with the previous period.
1.1 Significant judgements and sources of estimation uncertainty
In preparing the annual financial statements, management is required to make estimates and assumptions that affect the
amounts represented in the annual financial 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 financial statements. Significant 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 deficit, the surplus makes judgements as to whether there is observable data indicating a
measurable decrease in the estimated future cash flows from a financial 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-specific 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 financial 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 flows, are used to determine fair value for the
remaining financial instruments.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the
current market interest rate that is available to the entity for similar financial instruments.
Impairment testing
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ACCOUNTING POLICIES
The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of valuein-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 benefits
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 outflows expected to be required to settle the medical obligations. In
determining the appropriate discount rate, SALGA considers the medical inflation 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 flows for creditors and/or expenditure and the R157 government
bond rate to discount the future cash flows in debtors and/or revenue.
Allowance for doubtful debts
On debtors an impairment loss is recognised in surplus and deficit 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
flows 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:
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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 benefits or service potential that
are associated with the investment property will flow 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 reflects market conditions at the reporting date.
A gain or loss arising from a change in fair value is included in net surplus or deficit 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 benefits or service potential associated with the item will flow to the entity; and
•
the cost of the item can be measured reliably.
Property, plant and equipment is initially measured at cost.
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ACCOUNTING POLICIES
The 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 significant 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 benefits or service potential associated with the item will flow 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 benefits or service potential associated with the item will flow 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 deficit 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:
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ACCOUNTING POLICIES
Item
Average useful life
Land
Indefinite
Buildings
20 to 75 years
Furniture and fixtures
3 to 20 years
Motor vehicles
15 years
Office 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 deficit 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 significant 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 significant
increase in the cost of maintaining or operating the asset or significantly 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
benefits 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 deficit
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 identified 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:
144
ACCOUNTING POLICIES
•
it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow 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 benefits or service potential.
•
there are available technical, financial 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 indefinite 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 inflows 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 finite useful life after it was classified as indefinite 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
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ACCOUNTING POLICIES
Intangible assets are derecognised:
•
on disposal; or
•
when no future economic benefits 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 deficit 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 classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial 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 classified as available-for-sale financial assets.
For financial instruments which are not at fair value through surplus or deficit, transaction costs are included in the initial
measurement of the instrument.
Regular way purchases of financial assets are accounted for at trade date.
Impairment of financial assets
At each end of the reporting period the entity assesses all financial assets, other than those at fair value through surplus or
deficit, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired.
For amounts due to the entity, significant financial difficulties 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 deficit.
Impairment losses are reversed when an increase in the financial 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 financial 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 deficit except for equity investments classified as available-for-sale.
Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in surplus or
deficit 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.
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ACCOUNTING POLICIES
Trade 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 deficit
when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the
debtor will enter bankruptcy or financial 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 flows 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 deficit is
recognised in surplus or deficit 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 deficit.
Trade and other receivables are classified 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 classified as financial liabilities at amortised cost.
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 insignificant 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 classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is
classified 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 financial position at amounts equal to the fair value
147
ACCOUNTING POLICIES
of 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 financial position as a finance 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 finance charge and reduction of the outstanding liability. The finance
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 benefits or service potential of an asset, over and above the systematic recognition
of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).
Carrying amount is the amount at which an asset is recognised in the statement of financial 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 finance 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).
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ACCOUNTING POLICIES
There 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 flows independently from other assets, nor does
its assets form part a group of assets that generate cash flows independently from other assets.
Identification
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
indefinite 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 benefits
Short-term employee benefits
The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation
leave and sick leave, bonuses, and non-monetary benefits 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 benefits 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.
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ACCOUNTING POLICIES
The 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.
Defined benefit plans
For defined benefit plans the cost of providing the benefits 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 defined benefit plan is recognised when the entity is demonstrably
committed to curtailment or settlement.
The amount recognised in the statement of financial position represents the present value of the defined benefit 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 benefits upon retirement to some retirees.
The entitlement to post-retirement health care benefits 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 benefits are accrued over the period of employment.
Independent qualified 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 outflow of resources embodying economic benefits 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 reflects current market assessments of the time value of money and the risks specific to
the liability.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the
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ACCOUNTING POLICIES
reimbursement 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 reflect the current best estimate. Provisions are reversed if it is
no longer probable that an outflow of resources embodying economic benefits 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 reflect 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 deficits.
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:
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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 inflow of economic benefits or service potential during the reporting period when those inflows 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 satisfied:
•
the amount of revenue can be measured reliably;
•
it is probable that the economic benefits or service potential associated with the transaction will flow 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 specified time frame, revenue is recognised on a
straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of
completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the
significant 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
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ACCOUNTING POLICIES
1.11 Revenue from non-exchange transactions
Revenue comprises gross inflows of economic benefits 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 inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.
Recognition
An inflow 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 inflow.
As the entity satisfies a present obligation recognised as a liability in respect of an inflow 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 satisfied, 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 definition 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 definition 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.
153
ACCOUNTING POLICIES
Gifts 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
benefits or service potential will flow 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 financial statements are recognised
in surplus or deficit 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 deficit, any exchange
component of that gain or loss is recognised in surplus or deficit.
Cash flows 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 flow.
1.15 Comparative figures
Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.
154
ACCOUNTING POLICIES
1.16 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 financial performance
in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and
where recovered, it is subsequently accounted for as revenue in the statement of financial performance.
1.17 Irregular expenditure
Irregular expenditure as defined 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 identified during the current financial and which was condoned before year end
and/or before finalisation of the financial 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 financial statements.
Irregular expenditure that was incurred and identified during the current financial 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 financial statements.
Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the
register and the disclosure note to the financial statements must be updated with the amount condoned.
Irregular expenditure that was incurred and identified during the current financial 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 officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note
to the financial 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 financial statements and updated accordingly in the
irregular expenditure register.
155
ACCOUNTING POLICIES
1.18 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 financial reporting by SALGA shall provide information on whether resources were obtained and used in
accordance with the legally adopted budget.
The annual financial 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 financial 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 significant influence
over the other party in making financial and operating decisions or if the related party and another entity are subject to common
control.
Transactions - specific 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.
156
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
Figures in Rand
2012
2011
2. Investment property
Cost /
Valuation
Investment property
2012
2011
Accumulated
depreciation
and
accumulated
impairment
Accumulated
depreciation
and
accumulated
impairment
4 400 000
-
Carrying
value
4 400 000
Cost /
Valuation
3 100 000
-
Carrying
value
3 100 000
Reconciliation of investment property - 2012
Opening
balance
Investment property
3 100 000
Fair value
adjustments
1 300 000
Total
4 400 000
Reconciliation of investment property – 2011
Opening
balance
Investment property
3 000 000
Fair value
adjustments
100 000
Total
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, offices
and industrial or commercial properties where the building has an earning potential.
These assumptions are based on open market value for existing use.
157
Amounts recognised in surplus and deficit for the year.
Rental revenue from investment property
Direct operating expenses from non-rental generating property (security costs)
Direct operating expenses from non-rental generating property (repairs and
maintenance)
158
-
36,000
570 262
378,191
32 690
-
Figures in Rand
2012
2011
3. Property, plant and equipment
Cost /
Valuation
Furniture & fixtures
2012
2011
Accumulated
depreciation
and
accumulated
impairment
Accumulated
depreciation
and
accumulated
impairment
Carrying value
Cost /
Valuation
Carrying value
8 372 558
(2 468 677)
5 903 881
9 379 382
(2 383 740)
6 995 642
940 919
(383 624)
557 295
940 919
(324 013)
616 906
Office 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
26 504 989
(7 519 276)
18 985 713
29 199 288
(9 275 940)
19 923 348
Motor vehicles
Total
Reconciliation of property, plant and equipment – 2012
Opening
balance
Additions
Disposals
Depreciation
Impairment
loss
Total
6 995 642
241 638
(267 054)
(577 168)
(489 177)
5 903 881
616 906
-
-
(59 611)
-
557 295
Office 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
Motor vehicles
159
Reconciliation of property, plant and equipment – 2011
Opening
balance
Additions
Disposals
Depreciation
Impairment
loss
Total
6 632 408
1 114 742
(129 649)
(579 319)
(42 540)
6 995 642
676 345
-
-
(59 439)
-
616 906
Office 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
Motor vehicles
Figures in Rand
2012
2011
Compensation received for losses on property, plant and equipment – included in operating surplus
IT equipment
131 534
250 857
1 731 695
838 877
59 439
57 884
201 076
134 300
Office equipment
91 760
41 198
IT equipment
56 030
48 975
348 866
224 473
Assets subject to finance lease (Net carrying amount)
Leased assets
Other information
Property, plant and equipment temporarily idle (Gross carrying amount)
Office equipment
Property, plant and equipment fully depreciated and still in use (Gross carrying amount)
Furniture and fixtures
160
Figures in Rand
2012
2011
4. Intangible assets
Cost /
Valuation
Computer software
2012
2011
Accumulated
amortisation
and
accumulated
impairment
Carrying value
Accumulated
amortisation
and
accumulated
impairment
Carrying value
(652 574)
23 002
(576 380)
99 196
675 576
Cost /
Valuation
675 576
Reconciliation of intangible assets - 2012
Opening balance
Computer software. Internally generated
99 196
Amortisation
(76 194)
Total
23 002
Reconciliation of intangible assets - 2011
Opening balance
Computer software, internally generated
120 897
Amortisation
(21 701)
Total
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.
161
Figures in Rand
2012
2011
5. Other financial assets
Deposits
Rental deposits paid to lessors
536 178
328 154
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
The organisation has paid deposits to lessor’s for rental of office accommodation. The remaining lease period exceeds 12
months.
For debt securities classified as at fair value through surplus or deficit, the maximum exposure to credit risk at the reporting date
is the carrying amount.
162
Figures in Rand
2012
2011
6. Financial assets by category
The accounting policies for the financial instruments have been applied to the line items below:
2012
Loans and
receivables
Total
29 028 506
29 028 506
18 921 901
18 921 901
47 950 407
47 950 407
2011
Loans and
receivables
Total
24 265 910
24 265 910
4 496 275
4 496 275
28 762 185
28 762 185
(4 994 063)
(2 560 408)
7. Operating lease assets
Current liabilities
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.
163
Figures in Rand
2012
2011
8. Employee benefit obligations
Defined benefit plan
The plan is a post employment medical benefit 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 benefit. 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 benefit of the
two remaining pensioners.
SALGA requested Jacques Malan Consultants and Actuaries, an independent firm 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 inflation.
The amounts recognised in the statement of financial position are as follows:
Carrying value
Present value of the defined benefit obligation-wholly unfunded
(619 604)
(572 832)
Opening balance
572 832
356 693
Benefits paid
(48 422)
(55 310)
95 194
271 449
619 604
572 832
Interest cost
51 555
35 669
Actuarial (gains) losses
43 639
235 780
95 194
271 449
Changes in the present value of the defined benefit obligation are as follows:
Net expense recognised in the statement of financial performance
Closing balance
Net expense recognised in the statement of financial performance
Total included in employee related costs
164
Figures in Rand
2012
2011
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 inflation 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 significant effect on the amounts recognised in surplus or deficit. A one percentage
change in assumed healthcare cost trends would have the following effects:
One percentage
point increase
Effect on the aggregate of the service cost and interest cost
One percentage
point decrease
56 312
47 906
673 191
572 691
Trade debtors
29 028 506
24 265 910
Prepayments
720 081
568 454
-
95 772
29 748 587
24 930 136
Effect on defined benefit obligation
9. Trade and other receivables – exchange transactions
Sundry debtors
165
Credit 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 financial 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 financial position and liquidity position of the party has provided evidence of
financial difficulties 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 financial position and liquidity positions
of the party has provided evidence of financial difficulties 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 fluctuations
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.
Figures in Rand
2012
2011
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 receivables
Trade receivables schedule
166
Figures in Rand
2012
2011
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
-
-
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
24 263 142
22 782 313
29 028 506
24 265 910
More the 30 days but not more than 60 days
More than 120 days
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
-
-
36 860
-
2 687
3 844 805
3 481 401
4 079 409
3 520 948
More than 120 days (Credit rating: Medium)
167
Figures in Rand
2012
2011
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 deficit
(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 financial 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 financial position and liquidity position of the party has provided evidence of
financial difficulties 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 financial position and liquidity positions
168
of the party has provided evidence of financial difficulties 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 fluctuations
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 financial position of the entity has not evidenced a weakening in either the
financial 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.
Figures in Rand
2012
2011
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
•
In second to fifth year inclusive
Less: future finance charges
Present value of minimum lease payments
885 528
814 679
1 133 362
294 453
2 018 890
1 109 132
(206 792)
(89 730)
1 812 098
1 019 402
757 036
744 572
1 055 062
274 830
1 812 098
1 019 402
1 055 062
274 830
757 036
744 572
1 812 098
1 019 402
Present value of minimum lease payments due
<
Within one year
<
In second to fifth year inclusive
Non-current liabilities
Current liabilities
169
It is SALGA’s policy to lease certain equipment under finance leases. Obligations under finance 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 fixed at the contract date. All finances leases have fixed repayments.
The entity’s obligations under finance 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 five (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 financial 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 field of municipal finance for the province. The value of the grant subsidises the cost of maintaining the capacity to support
and advise members within the province.
170
Unspent conditional grants and receipts comprises of:
Figures in Rand
2012
2011
Government grant – Gauteng Dept of Local Government and Housing
Government grant – Free State Dept of Co-operative Governance
Government grant – Department of Environmental Affairs
Conditional sponsorship: LA Health
Government grant – Eastern Cape Dept of Local Government and Traditional
Affairs
Learnership sponsor
Local Government SETA – Councillor Induction Programme
National Treasury – Councillor Induction Programme
LED Network
55 556
388 889
1 120 323
1 334 409
-
1 300 000
160 000
200 000
5 609 935
-
21 600
-
3 925 840
-
498 308
-
54 000
-
11 445 562
3 223 298
3 223 298
5 722 222
22 346 800
2 200 000
(14 124 536)
(4 698 924)
11 445 562
3 223 298
Movement during the year
Balance at the beginning of the year
The nature and extent of government grants recognised in the annual financial statements and an indication of other forms
of government assistance from which the entity has directly benefited; and unfulfilled conditions and other contingencies
attaching to government assistance that has been recognised
171
Figures in Rand
2012
2011
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
8 264 382
13 788 117
4 196 073
6 526 014
(4 608 270)
(12 049 749)
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
(165 016)
2 955 426
1 765 354
15
(2 789 587)
(3 120 457)
1 189 249
165 016
-
-
Amount included in Trade and other receivables (note 9)
172
Figures in Rand
2012
2011
The Swiss Agency for Development and Corporation agreed to support SALGA to build capacity in the monitoring and
implementation of energy efficiency. The project has two components: Monitoring of energy efficiency 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
2 185 847
2 400 000
6 151
1 690
(3 730 899)
(215 843)
1 538 901
-
-
2 185 847
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
744 940
709 599
10 694 800
4 629 879
2 773 307
548 627
35 670 511
37 131 525
Amount included in Trade and other receivables (note 9)
15. Trade and other payables – exchange transactions
Accrued bonus
Accrued expenses
Lodge card
173
Figures in Rand
2012
2011
16. Financial liabilities by category
The accounting policies for financial instruments have been applied to the line items below:
2012
Financial
liabilities at
amortised cost
Total
8 897 948
8 897 948
1 627 813
1 627 813
Sundry creditors
3 475 457
3 475 457
14 001 218
14 001 218
2011
Financial
liabilities at
amortised cost
Total
13 800 306
13 800 306
3 302 493
3 302 493
Sundry creditors
8 232 505
8 232 505
25 335 304
25 335 304
217 872 595
145 888 126
214 086
3 665 591
1 190 065
-
300 000
700 000
Gauteng Department of Local Government & Housing
333 333
333 333
1 356 692
-
25 486 000
49 125 000
246 752 771
199 712 050
17. Revenue
Membership fees
Free State Department of Cooperative Governance
Eastern Cape Department of Local Government & Traditional Affairs
National Treasury
Transfers and subsidies received – Executive Authority
174
Figures in Rand
2012
2011
The amount included in revenue arising from exchange of goods or services is as follows:
Membership levies
217 872 595
145 888 126
214 086
3 665 591
1 190 065
-
300 000
700 000
Gauteng Department of Local Government & Housing
333 333
333 333
1 356 692
-
25 486 000
49 125 000
25 486 000
49 125 000
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
20 392 828
15 179 155
46 525 260
31 278 148
The amount included in revenue arising from non-exchange transactions is as follows:
Free State Department of Cooperative Governance
Eastern Cape Department of Local Government & Traditional Affairs
National Treasury
Transfers and subsidies
Transfers and subsidies received – Executive Authority
18. Government grants and subsidies
Government grant – Executive Authority
19. Other income
Income from donors
175
Figures in Rand
2012
2011
20. Operating surplus / (deficit)
Operating surplus (deficit) 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
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
76 194
21 701
3 271 508
3 418 163
138 988 145
125 626 792
Amount expenses in respect of retirement benefit plans:
95 194
216 139
Defined benefit funds
95 194
216 139
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
Loss on sale of property, plant and equipment
Amortisation of intangible assets
Depreciation on property, plant and equipment
Employee costs
21. Employee related costs
Basic
176
Figures in Rand
2012
2011
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
1 533 403
1 410 114
19 893 341
18 293 355
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
1 300 000
100 000
1 060 842
449 818
(287 782)
2 127 415
157 471
195 044
34
67 874
582 216
537 102
451 939
2 927 435
Remuneration of senior management
Annual remuneration
Performance related awards
22. Investment revenue
Interest revenue
23. Fair value adjustments
Investment property (Fair value model)
24. Impairment of assets
Impairments
Property, plant and equipment
25. Finance costs
Finance leases
Bank
Fair value adjustments on payables
177
Figures in Rand
2012
2011
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
12 301 943
(8 280 076)
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)
(1 300 000)
(100 000)
Impairment deficit
1 060 842
449 820
Movements in operating lease assets and accruals
2 433 655
961 913
46 772
216 139
(2 240 705)
(499 011)
Trade and other receivables – exchange transactions
(4 818 451)
13 382 285
Trade and other payables – exchange transactions
(1 433 598)
7 901 562
8 222 264
(2 498 924)
(2 598 044)
(3 337 888)
15 843 911
11 839 767
28. Cash generated from operations
Surplus (deficit)
Adjustments for:
Depreciation and amortisation
Fair value adjustment to investment property
Movements in retirement benefit assets and liabilities
Leased assets additions (non-cash item)
Changes in working capital:
Deferred income – exchange transactions
178
Figures in Rand
2012
2011
29. Commitments
Operating leases – as lessee (expense)
Minimum lease payments due
-
within 1 year
22 585 727
20 571 621
-
in second to fifth year inclusive
56 288 339
62 304 996
78 874 066
82 876 617
Future payments
Non-cancellable operating lease rentals are payable per above.
Operating lease payments represent rentals payable by the entity for certain of its office properties. Leases are negotiated for an
average term of five years. Contingent rent is payable based on CPI escalation rate above 5 percentage points. The CPI increase
of 5% p.a. is fixed and the actual escalation above the fixed 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.
179
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
control)
Eastern Cape Department of Local Government and
Traditional Affairs
control)
KwaZulu-Natal Department of Local Government and
Traditional Affairs
control)
Northern Cape Department of Co-operative Governance;
Human Settlements and Traditional Affairs
control)
Free State Department of Co-operative Governance and
Traditional Affairs
control)
Mpumalanga Department of Local Government and
Traditional Affairs
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
Auditor General South Africa
control)
Western Cape Department of Provincial Treasury
control)
Gauteng Department of Local Government and Housing
National Department of Social Development
Government Communication and Information Systems
(GCIS)
National Department of Sports, Arts and Culture
Major Public Entity (Schedule 2 of PFMA)
ESKOM
Development Bank of Southern Africa (DBSA)
National Department of Water Affairs
National Department of Public Works
180
Relationships
National Department of Rural Development and Land
Reform
National Department of Environmental Affairs
National Public Entity (Schedule 3A of PFMA)
South African Revenue Services (SARS)
South African Broadcasting Corporation (SABC)
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
Cllr N Sihlwayi - Deputy Executive Mayor: Nelson Mandela
Bay Metropolitan Municipality
Cllr N Hermans - Mayor: Umsobomvu Local Municipality
Member of the National Executive Committee of SALGA
Cllr F Maboa-Boltman - Mayor: Gert Sibande District
Municipality
Cllr. D Mazibuko - Executive Mayor - Uthukela District
Municipality
Cllr. S Mashilo - Executive Mayor - Enkangala District
Municipality
Cllr. C Neethling - Ward Councillor - George Local
Municipality
Cllr. J Matlou - Executive Mayor - Mopani District
Municipality
Cllr. BP Moloi - Executive Mayor - Dr Kenneth Kaunda
District Municipality
Cllr. W Johnson - Chief Whip - Frances Baard District
Municipality
Cllr. P Tau - Executive Mayor - City of Johannesburg
Metropolitan Municipality
Cllr. B Mdzawngwa - Executive Mayor - Thabo Mafutsanyane
Cllr. Demetri Qually - City of Cape Town
Cllr. GK Lobelo - Mayor - Greater Taung District Municipality
Cllr. D Magabe - Executive Mayor - Sekhukhune District
Municipality
Cllr. SW Mdabe - Ilembe District Municipality
181
Relationships
Cllr. N Meth - Speaker - OR Tambo District Municipality
Cllr. S Pillay - MMC - City of Tshwane Metropolitan
Municipality
Independent Development Trust
Local Government Sector Education and Training Authority
(SETA)
National Credit Regulator (NCR)
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)
Statistics South Africa
State Information Technology Agency (SITA)
Water Research Commission (WRC)
Member of SALGA
Member of SALGA
Sol Plaatjie Local Municipality
Member of SALGA
Ekurhuleni Metropolitan Municipality
Government Printing Works
Same controlling body (Cabinet) part of SA Post Office
Speed Courier Services
Controlling body member of SALGA (eThekwini Metropolitan
Municipality)
Municipal Institute of Learning (MILE)
Human Science Research Council (HSRC)
Municipal entity controlling body member of SALGA
Braamfontein Improvement District
Industrial Development Corporation of South Africa Limited
South African Post Office
National Government Business Enterprises (Schedule 3B of
PFMA)
Sedibeng Water
Public Administration Leadership and Management
Academy (PALAMA)
PFMA)
Umgeni Water
PFMA)
SASRIA Limited
182
Relationships
Funder conditional grant
Swedish Association of Local Authorities
Swiss Agency for Development and Corporation (SDC)
SALGA is a member
Commonwealth Local Government Forum (CLGF)
Local Economic Development (LED) Network
LA Health
Small Enterprise Development Agency (SEDA)
Housing Development Agency
Rural Housing Loan Fund
Universal Service and Access Agency of South Africa
Please refer to annexure A for related party transactions and balances.
Figures in Rand
2012
2011
32. Comparative figures
Certain comparative figures have been reclassified.
Statement of financial position
Other financial 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 financial risks: market risk (including currency risk, fair value interest rate risk, cash
flow interest rate risk and price risk), credit risk and liquidity risk.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient 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.
183
Figures in Rand
2012
2011
Maturity analysis
Trade payables
Other payables
Not later than one month
26 605 972
Later than one month and not later than three months
Later than three months and not later than one year
Later than one year and not later than five years
5 000 000
744 940
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 flow
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 finance 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 flow interest rate risk
SALGA’s exposure to this type of risk arises when the entity has a financial instrument with a floating 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 fixed deposits. The following credit facilities are
available, which is payable 30 days from statement date:
184
Lodge 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 flow interest rate risk, primarily due to the conservative
investment philosophy. Ordinarily fixed deposits expose the entity to this type of risk. The entity manages this risk by keeping
fixed 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 financial 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 financial 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 fluctuations.
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 official 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 fluctuations 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 inflation 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 inflationary 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.
185
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 financial position of SALGA as reflected in these Financial Statements.
Figures in Rand
2012
2011
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.
186
Figures in Rand
2012
2011
Opening balance
16 830 392
16 830 392
Add: Irregular expenditure – current year
37 090 372
24 191 744
36. Irregular expenditure
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 noncompliance 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 financial performance
Reconciliation of budget surplus/deficit with the surplus/deficit in the statement of financial performance:
Net (deficit) surplus per the statement of financial performance
12 301 943
(8 280 076)
(1 300 000)
(100 000)
(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 (deficit) surplus per approved budget
9 490 501
(1 805 467)
Adjusted for:
Fair value adjustments
Less/Add: (Positive) / Negative variances in revenue
187
Figures in Rand
2012
2011
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 Benefits
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 significant impact in the financial statements as the principles are similar to those already
applied under the equivalent Statement of SA GAAP.
188
Deputy
Chairperson of
SALGA
Deputy
Chairperson of
SALGA
Deputy
Chairperson of
SALGA
Cllr. Numbulelo Hemans
Mayor:Umsombovu Local
Municipality
Cllr. Mpho Nawa
Executive Mayor:
West Rand District
Municipality
SALGA
Chairperson
Nature of
Relationship
Cllr. Nancy Sihlwayi
Deputy Executive Mayor:
Nelson Mandela
Cllr. Thabo Manyoni
Executive Mayor:
City of Mangaung
Name & Position
Figures in Rand
-66 309
4 000
Councillor S&T claims
Provincial Conference
registration
1 023 029
1 600
24 500
M/levy & Conference
registration
National Conference
86 530
14 000
National Conference
Opening Balance
200 000
M/levy & Conference
28 000
National Conference
-12 377
10 500
registration
Opening Balance
9 500 000
50 800
24 500
9 500 000
773 749
M/levy & Conference
Opening Balance
Conference registration
M/levy & Conference
Opening Balance
Transaction Type
Transaction
Amount
Annexure A - Related Party Transaction and Balances
Outstanding
Amount
-
-
-
99 056
-
-23 063
-
-
-
-
-
-
-2 300
-
-
-
Secured
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
ANNEXURES
189
Adjustments
190
NEC Member
NEC Member
NEC Member
Cllr. Speedy Mashilo
Executive Mayor Nkangala
Cllr Chris Neethling
Ward Councillor: Goerge
Local Municipality
NEC Member
Nature of
Relationship
Cllr. Dudu Mazibuko
Executive Mayor:Uthukela
Cllr. Flora Maboa-Boltman
Gert Sibande District
Municipality
Name & Position
Figures in Rand
17 500
National Conference
21 000
National Conference
14 000
500
National Conference
Record Management
Conference
59 874
3 000
registration
Additional M/levy
1 550 813
M/levy & Conference
12 178
6 000
registration
Opening Balance
604 381
15 000
M/levy & Conference
Opening Balance
21 000
6 000
registration
National Conference
510 791
69 009
M/levy & Conference
Opening Balance
Transaction Type
Transaction
Amount
Adjustments
-3 500
-29
156
Outstanding
Amount
-
-
-
-
-
68 552
-
-
-
-14 156
-
-
-
-
76 925
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
ANNEXURES
NEC Member
Chairperson:
SALGA Northern
Cape
Cllr. W. Johnson
Chief Whip: Francis Baard
Municipality
NEC Member
Nature of
Relationship
Cllr Boitumelo Pinkie
Moloi
Executive Mayor:Dr
Kenneth Kaunda
Cllr. Joshua Matlou
Executive Mayor: Mopani
Name & Position
Figures in Rand
1 000
Record Management
Conference
6 000
registration
305 936
10 500
7 000
500
M/levy & Conference
National Conference
registration
Record Management
Conference
84 878
24 500
National Conference
Opening Balance
521 227
M/levy & Conference
-7 634
28 000
National Conference
Opening Balance
9 000
887 729
35 043
registration
M/levy & Conference
Opening Balance
Transaction Type
Transaction
Amount
Adjustments
1 929
Outstanding
Amount
-
-
-
-
86 807
-
-
-
-7 624
-
-
-
-
-
Secured
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
NO
N/A
N/A
N/A
NO
N/A
N/A
N/A
N/A
N/A
ANNEXURES
191
192
Chairperson: SALGA
Free State
Chairperson: SALGA
Western Cape
Chairperson: SALGA
North West
Cllr. Demetri Qually
Alderman: City of Cape
Town
Cllr. Gavin Kaone Lobelo
Mayor:Greater Taung
District Municipality.
Chairperson: SALGA
Gauteng
Nature of Relationship
Cllr. Balekile Edward
Mzangwa
Executive Mayor:
Thabo Mofutsanyane
Cllr. Parks Tau
Executive Mayor: City of
Johannesburg
Name & Position
Figures in Rand
7 000
6 000
National
Conference
Provincial
Conference
registration
380 137
28 000
6 000
M/levy &
Conference
National
Conference
Provincial
Conference
registration
6 848
9 500 000
Opening Balance
7 178 395
M/levy &
Conference
31 500
National
Conference
Opening Balance
272 393
2 289
M/levy &
Conference
Opening Balance
-328 432
42 000
National
Conference
Rates & Taxes
15 000
9 500 000
89 541
Provincial
Conference
registration
M/levy &
Conference
Opening Balance
Transaction Type
Transaction
Amount
Adjustments
38 715
29 204
Outstanding
Amount
-
-
-
-
-
-
-
8 800
-
-
-3 800
-22 929
-
-
89 541
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
N/A
N/A
NO
N/A
N/A
N/A
N/A
NO
ANNEXURES
Chairperson:
SALGA KZN
Chairperson:
SALGA Eastern
Cape
Cllr Nomakhosazana Meth
Speaker: OR Tambo
Chairperson:
SALGA Limpopo
Nature of
Relationship
Cllr Sibusiso W Mdabe
Mayor: Ilembe District
Municipality
Cllr. David Magabe
Executive Mayor:
Sekhukhune District
Municipality
Name & Position
Figures in Rand
500
Record Management
Conference
1 754 145
1 500
28 000
9 000
Record Management
Conference
National Conference
registration
-70 496
Opening Balance
M/levy & Conference
28 000
National Conference
1 500
24 500
National Conference
Opening Balance
9 000
1 440 412
378 558
registration
M/levy & Conference
Opening Balance
Transaction Type
Transaction
Amount
Outstanding
Amount
-
-
1 500
-
-
-
1 500
500
-
-
-
-
Secured
N/A
N/A
NO
N/A
N/A
N/A
NO
NO
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
NO
N/A
N/A
N/A
NO
NO
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
NO
N/A
N/A
N/A
NO
NO
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
NO
N/A
N/A
N/A
NO
NO
N/A
N/A
N/A
N/A
ANNEXURES
193
Adjustments
194
Executive Authority
to SALGA –
under common
government control
SALGA CEO
- Holds a
Directorship
position
SALGA CEO
- Holds a
Directorship
position
Passenger Rail Agency of
South Africa (PRASA)
South African Cities
Network
Co -Opted NEC
Member
Nature of
Relationship
Department of Cooperative Governance
and Traditional Affairs
(CoGTA)
Cllr Subesh Pillay
MMC Economic
Development & Planning :
Tshwane Municipality
City of Tshwane
Name & Position
Figures in Rand
1 500
Record Management
Conference
Opening Balance
Sponsorship &
Donations
Opening Balance
Exhibition
-
1 000 000
-
20 000
25 486 000
-1 008
Car Licence &
Registration
Government grant
6 800
registration
-
35 000
National Conference
Opening Balance
9 500 000
15 000
M/levy & Conference
Opening Balance
Transaction Type
Transaction
Amount
-
-
Outstanding
Amount
-
1 000 000
-
-
-
-
-
-
-
-
-
12 100
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
NO
ANNEXURES
Adjustments
SALGA CEO and
COO - Holds
a Directorship
position
Public Entity Under common
Government
control
National Dept Under common
Government
control
Government
control
Government
control
Auditor General of SA
(AGSA)
Department of Water
affairs (Masibambane
project)
Department of Public
Works
Department of Rural
Development and Land
Reform
Nature of
Relationship
EDI Holdings
Name & Position
Figures in Rand
35 000
Exhibition
500
35 000
Opening balance
Registration fees Records Management
Conference
35 000
130 000
Exhibition
Opening balance
35 000
-4 608 270
Project (revenue
recognition)
Exhibition
-8 264 382
68 000
500
35 000
-
-
Opening Balance
(Conditional Grant)
Opening balance
Records Management
Exhibition
Opening Balance
Opening Balance
Transaction Type
Transaction
Amount
Outstanding
Amount
-
-
-
130 000
-
65 000
-
-7 852
185
-
-
-
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
195
Adjustments
196
Government
control
Provincial
Government
-Under common
Government
control
Under common
Government
control
Government
control
Provincial
Government Under common
Government
control
Provincial
Government
control
Western Cape Dept of
Local Government &
Housing
Eastern Cape Dept. of
Local Government &
Traditional Affairs
Department of Arts &
Culture
KwaZulu-Natal Dept.
of Local Government &
Traditional Affairs
Northern Cape
Department of Cooperative Governance,
Human Settlements &
Traditional Affairs
Nature of
Relationship
Department of National
Treasury
Name & Position
Figures in Rand
Sponsorship
Opening balance
Secondment Employee
Opening balance
Exhibition
Opening balance
Sponsorship
Opening balance
Sponsorship
Opening balance
Sponsorship
Opening balance
Transaction Type
-
500 000
40 000
48 446
-159 426
35 000
-
6 800 000
300 000
1 500 000
-
110 980
Transaction
Amount
Outstanding
Amount
-
-
-
-
-
-
300 000
-
-
-
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
Adjustments
Provincial
Government
control
Public Entity
(Schedule 2 of
PFMA)
Government
control
Government
control
Under common
Government
control
Western Cape Department
of Provincial Treasury
Department of
Government
Communications,
Information Systems
(GCIS)
Department of Social
Development
Department of Rural
Development and Land
Reform
Nature of
Relationship
Mpumalanga Department
of Co-operative
Governance and
Traditional Affairs
Name & Position
Figures in Rand
Records Management
Opening balance
Exhibition
500
-
35 000
-
-333 250
Advertising
Opening balance
-
35 000
Exhibition
Impairment
35 000
4 000
-
800 050
-
35
000
-
-
-
-
-
-
-
-
-
-
-
500 000
Adjustments
-
Outstanding
Amount
-
Opening balance
Opening balance
Opening balance
Transaction Type
Transaction
Amount
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
YES
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
YES
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
197
198
Government
control
Major Public Entity
- Under common
Government
control
Major Public Entity
- Under common
Government
control
Major Public Entity
- Under common
Government
control
Development Bank of
Southern Africa (DBSA)
ESKOM
Industrial Development
Corporation (IDC)
Under common
Government
control
Gauteng Department
of Local Government &
Housing
Department of Sports &
Recreation
Nature of
Relationship
Name & Position
Figures in Rand
Records Management
Sponsorship &
Donation
National Conference
Sponsorship &
Donation
Opening Balance
Sponsorship
Opening Balance
Sponsorship/Donation
Exhibition
Opening balance
Records Management
Opening balance
500
175 000
30 000
175 000
-
4 000 000
-
250 000
35 000
933 596
1 000
-
4 500
333 333
Project (revenue
recognition)
Records Management
-388 889
Opening Balance
(Conditional Grant)
Transaction Type
Transaction
Amount
Outstanding
Amount
500
-
-
-
-
-
-
184
-
-
-
-
3 000
-
-55 556
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
Adjustments
Major Public Entity
- Under common
Government
control
Local Gov Under common
Government
control
Government
control
Government
control
Local Government Sector
Education and Training
Authority (SETA)
National Credit Regulator
(NCR)
National Energy Regulator
of South Africa (NERSA)
Nature of
Relationship
Independent Development
Trust
Name & Position
Figures in Rand
15 000
35 000
Exhibition
National Conference
Exhibition
National Conference
Exhibition
Opening balance
National Conference
Exhibition
35 000
-
35 000
-
540 034
LGSETA Training Levy
Opening balance
36 000
10 074 160
Conditional Grant:
Learnership Sponsor
Sponsorship &
Donation
35 097
2 000
Registration
Opening balance
15 000
-
exhibition
Opening Balance
Transaction Type
Transaction
Amount
Outstanding
Amount
-
-
-
-
-
-
-
-21 600
-3 925
840
35 097
16 500
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
199
Adjustments
200
Major Public Entity
- Under common
Government
control
Government
control
Local Gov Under common
Government
control
Government
control
Major Public Entity
- Under common
Government
control
South African Bureau of
Standards (SABS)
South African Local
Government Bargaining
Council (SALGBC)
Statistics South Africa
(Stats SA)
State Information
Technology Agency (SITA)
Nature of
Relationship
South African Post Office
Name & Position
Figures in Rand
-
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
N/A
80 000
35 000
National Conference
Exhibition
-
1 500 000
Sponsorship &
Donation
Opening balance
Sponsorship &
Donation
-
-
-
N/A
N/A
N/A
N/A
N/A
Adjustments
exhibition
1 515 000
Outstanding
Amount
N/A
15 000
-
35 000
-
-1 304
35 000
-
Secured
Opening balance
Opening balance
National Conference
Exhibition
Opening balance
Postal services
National Conference
Exhibition
Opening balance
Transaction Type
Transaction
Amount
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
Major Public Entity
- Under common
Government
control
Major Public Entity
- Under common
Government
control
Public EntityUnder common
Government
control
Same Controlling
Body Part of SA
Post Office
Major Public Entity
- under common
control
Is a municipal
entity of eThekwini
metropolitan
municipality
South African
Broadcasting Corporation
(SABC)
Government Printing
Works
Speed Courier Services
Telkom SA Limited
The Municipal Institute of
Learning
Nature of
Relationship
Water Research
Commission (WRC)
Name & Position
Figures in Rand
Catering
Usage of telephone
lines
Courier services
Printing Works
Television
Advertisements and
Licence
Research
exhibition
Opening balance
Transaction Type
-
-19 500
-1 882 513
-9 204
-64 671
-86 447
-2 311 839
5 000
Transaction
Amount
Outstanding
Amount
-
-254 428
-921
-24 948
-
-
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
201
Adjustments
202
Government
control
Part of City of
Johannesburg
Under common
Government
control
Funder Conditional
Grant:
Funder Conditional
Grant:
Government
control
Braamfontein
Improvement District
Free State Department of
Cooperative Governance &
Traditional Affairs
LA- Health
LED Network
Small Enterprise
Development Agency
(SEDA)
Nature of
Relationship
Human Science Research
Council
Name & Position
Figures in Rand
50 000
-
Opening Balance
Sponsorship &
Donation NC
216 000
Conditional grant
-
40 000
Project (revenue
recognition)
Opening Balance
-200 000
214 086
-1 334 409
-14 500
-4 500
Opening Balance
Project (revenue
recognition)
Opening Balance
(Conditional Grant)
Rates
Catering
Transaction Type
Transaction
Amount
Outstanding
Amount
-
-
-
-
-
-160 000
-
-1 120
323
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
Adjustments
Government
control
Government
control
Government
control
Government
control
Funder Conditional
Grant:
Funder Conditional
Grant:
Rural Housing Loan Fund
SASRIA
Sedibeng Water
Department of Water
Affairs
Swedish Association of
Local Authorities (P3)
Nature of
Relationship
Housing Development
Agency
Name & Position
Figures in Rand
-
-2 789 587
Project expenses
Grant closing balance
165 016
-4 608 270
-8 264 382
Opening Balance
Project expense
Opening Balance
1 220
20 000
Sponsorship &
Donation
Recognition of Revenue
-1 220
400 000
35 000
-
35 000
-
Opening Balance
Sponsorship &
Donation
Opening Balance
National Conference
Exhibition
Opening Balance
National Conference
Exhibition
Opening Balance
Transaction Type
Transaction
Amount
Outstanding
Amount
1 189 249
-
-
-
-7 852
185
-
-
-
-
-
-
-
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
203
Adjustments
204
Membership fees
Opening Balance
Government
control
Salga is a member
Government
control
National
Government
Business
Enterprise
South African Revenue
Services (SARS)
Commonwealth Local
Government Forum
(CLGF)
Public Administration
Leadership and
Management Academy
(PALAMA)
Umgeni Water
Sponsorship
Employees Tax; UIF;
and SDL
20 000
3 000
-90 362
-37 416 251
-
10 500
-300 000
Project expenses
National Conference
-300 000
Opening Balance
-
-3 730 899
Project expenses
-2 185 846
Opening Balance
Transaction Type
Funder Conditional
Grant:
Funder Conditional
Grant:
Nature of
Relationship
Department of
Environmental Affairs
Swedish Development
Cooperation Agency
Name & Position
Figures in Rand
Transaction
Amount
Outstanding
Amount
-
1 000
-
-2 590
893
-
-
-
-
1 538 901
-
-
Secured
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Guarantees
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Provision Raised
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Expense Relating
to Bad Debts
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ANNEXURES
Adjustments
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
First National Bank
Councillor Induction Programme (NC)
20 000
Trade and Investment Limpopo
Limpopo Provincial Conference
50 000
Limpopo Business Support Agency
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
Dept of Local Govt and Housing
ELDP for Councillors (WC)
1 000 000
Alexander Forbes
NW Provincial Conference
5 000
Economic Development Enterprise
60 000
SupplyFIN (Pty) Ltd
30 000
Standard Bank
100 000
Polokwane Local Municipality
LP Provincial Conference
50 000
SITA
NC Provincial Conference
80 000
Standard Bank
150 000
SEDA
50 000
Internet Solutions
National Conference
Lateral Unison Insurance Brokers
50 000
Steve Tshwete Municipality
MP Provincial Conference
98 600
Vhembe District Municipality
LP Provincial Conference
52 000
Standard Bank (NW)
100 000
Department of Local Govt and Housing
50 000
Anglo Platinum Limited
Local Government Capacity Building
Lemphane Fleet Solution
FS Provincial Conference
StatsSA
National Conference
1 500 000
SASRIA
National Conference
250 000
UMGENI Water
National Conference
20 000
Bonitas Marketing
10 000
175 000
500 000
300 000
500 000
3 000
The supplementary information presented does not form part of the financial statements and is unaudited
205
Figures in Rand
STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED (CONTINUED)
Name of donor
Actual
Standard Bank
National Conference
200 000
Egis Software South Africa
Records Management Conference
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
Passenger Rail SA
National Conference
GIZ
Salary: LED Coordinator
ESKOM
National Conference
Softline Pastel
NC Budget Week
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
GIZ
Salary: LED Coordinator - Economic Dev
CoGTA (MP)
CIP Mpumalanga
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
10 000
Mubesko Africa
5 000
Industrial Development Corporation
LED Network
GIZ
18 000
GIZ
18 000
Standard Bank (LIM)
Provincial Budget Week (Limpopo)
50 000
LGSETA
Contribution to Internship - IGR
African Centre for Local Govt Improvement
Contribution to Travel costs
20 000
5 000
20 000
1 000 000
72 000
4 000 000
206
25 000
150 000
18 000
800 050
175 000
7 200
51 812
Figures in Rand
STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED (CONTINUED)
Name of donor
Actual
Sister Cities Network
Contribution to Travel costs
10 595
Nedbank Business Bank (LIM)
KMI Seminar
10 000
Altech Netstar
Sponsorship: NEC Lekgotla
30 000
GIZ
18 000
LGSETA
Contribution to Internship - IGR
Total
7 200
12 786 123
207
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
officials. 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
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, officials
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
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
Cape)
Jimmy Summers & West End Club
Sol Plaatjie Municipality
Cape)
Gala Dinner
208
219 000
5 000
37 375
Figures in Rand
STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND (CONTINUED)
Donor
Type of Sponsorship
Amount
SEDA
Cape)
Promotional Materials - 200
Branded Paper Bags, Folders, Pens
& Note Pads
15 000
Landfill Site Operators and
Managers Training (Northern Cape)
Training Costs
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
Siyanda District Municipality
Dinner for Staff and PEC Members
Kai Garib Local Municipality
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
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
Aurecon
(North West)
950 Conference Bags
Department of Local Government
(North West)
Catering at 4 Districts for CIP :
lunches
Rustenburg Local Municipality
(North West)
Utilization of venue
50 100
Naledi Local Municipality
(North West)
8 468
Mafikeng Local Municipality
(North West)
37 531
Tlokwe City Council
(North West)
Mayoral Dinner i.r.o. Cllr Induction
17 000
Sedibeng Water
Provincial Conference (North West)
200 Long Sleeve Golf shirts
36 197
Office World
200 PVC Envelopes, 200 Writing
pads, 200 pens
2 770
Tshikovha Enviro
Corporate gifts
5 659
328 000
998
5 960
34 180
495 918
209
Figures in Rand
STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND (CONTINUED)
Donor
Type of Sponsorship
Amount
Gala Dinner
Rand Water
Conference Bags
10 000
Dr Ruth Mompati DM
PEC Lekgotla (North West)
Dinner
24 800
Barefoot Media
Town Planning Summit (North
West)
Conference Bags
NDMC & USAID
Disaster Management CB
Programme (North West)
Training costs
Rural Maintenance
CIP (Gauteng)
Glossy brochures
4 908
Rural Maintenance
Provincial Conference (Gauteng)
Tshwane Bus Services
1 742
Rural Maintenance
Cultural Dance Group
3 000
Rural Maintenance
Entertainment (Ringo)
30 000
Rural Maintenance
3 in 1 Wind Breakers
26 732
Rural Maintenance
Branded 2G USB
16 459
Rural Maintenance
Wooden mouse and mouse pads
25 057
East Rand Water Company (ERWAT)
350 Branded Conference bags
City of Tshwane
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
Cacadu DM
(Eastern Cape)
Cocktail Function
120 000
Nelson Mandela Metro
(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
210
100 000
2 556
150 000
800
(TABLES)
CHANGE AGENDA 1:
IMPROVE THE CAPACITY OF SALGA TO SUPPORT AND ADVISE ITS MEMBERS.
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
OCEO
Institutionalised and
functional Enquiry
Management
System (EMS) in all
directorates
SPR
Develop stakeholder
management policy
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
IGR
Finalisation 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
IGR
Provide 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
Draft and submit
substantial policy
documents on
LG policy review
process.
COGTA TAS and
Delivery Agreement
for Outcome 10
Participate in the
DCOG seminars on
the policy review
process by March
2012.
7
ACHIEVED
N/A
IGR
Draft and submit
substantial policy
documents on
LG policy review
process.
COGTA TAS and
Delivery Agreement
for Outcome 11
Submissions to
parliament for
purpose of lobbying
by 31 March 2012.
8
ACHIEVED
N/A
New Indicator
Sharing research
study (Migration)
with two districts
municipalities by
September 2011
9
ACHIEVED
N/A
SALGA WC
Migration Study
disseminated to
municipalities
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
Draft Policy
Approved
stakeholder
management policy
by March 2012
2
ACHIEVED
N/A
3
ACHIEVED
N/A
211
(TABLES)
CHANGE AGENDA 1:
IMPROVE THE CAPACITY OF SALGA TO SUPPORT AND ADVISE ITS MEMBERS.
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA WC
Facilitate a
learning event
around community
development issues
New Indicator
1 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
Development of a
in LG
Participation in
Tshwane-Metsweding
merger
Submission of
Blueprint to LG
Minmecs by March
2012 for purpose of
lobbying
12
ACHIEVED
N/A
IGR
Development of a
in LG
Participation in
Tshwane-Metsweding
merger
Submission to
provincial PCFs by
Feb/March 2012 for
purpose of lobbying
13
ACHIEVED
N/A
212
(TABLES)
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.
BUSINESS
UNIT
KPI/OUTPUT
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
New Indicator
06 Policy briefs
packaged and
disseminated to
Local Government
stakeholders by
March 2012.
14
ACHIEVED
N/A
15
ACHIEVED
N/A
BASELINE
TARGET
SPR
Policy briefs
disseminated to
Local Government
Stakeholders
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.
IGR
Development of a
Capacity Building
programme/tool for
NEC/PEC members
on Advocacy and
Lobbying.
SALGA parliamentary
programme 2010-12
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.
SALGA parliamentary
programme 2010-13
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
19
ACHIEVED
N/A
20
ACHIEVED
N/A
SALGA WC
Inputs on various
relevant Legislation to
provincial legislature
As per 2010/2011
final performance
Engage
municipalities to
gather inputs on
various relevant
legislature by March
2012.
SALGA WC
Report on
engagements with
intergovernmental
forums
As per the
2010/2011 final
performance
Report on
engagements with
intergovernmental
forums e.g. MINMAY
by end March 2012
213
(TABLES)
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.
BUSINESS
UNIT
SALGA WC
214
KPI/OUTPUT
Engagement of
three Stakeholders
on the collaboration
Partnerships with
SALGA
BASELINE
New Indicator
TARGET
Engagement of
three Stakeholders
on the collaboration
Partnerships with
SALGA by March
2012
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
21
ACHIEVED
N/A
(TABLES)
CHANGE AGENDA 4:
ENHANCE AND MAINTAIN A HIGH PROFILE LOCALLY, REGIONALLY, AND INTERNATIONALLY.
BUSINESS
UNIT
KPI/OUTPUT
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
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
Approved timely
submissions on bulk
water pricing as per
section 42 of MFMA
Submission to DWA
and Parliament
Ensure effective
representation
of SALGA at IGR
Conferences,
workshops and
seminars.
OCEO
MIS
IGR
IGR
SALGA EC
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
22
ACHIEVED
N/A
23
ACHIEVED
N/A
Approved submission
on bulk water pricing
made to regulators
by January 2012
24
ACHIEVED
N/A
Active participation
in conference and
workshops in 201011
Draft five speeches
and 10 presentations
(IGR structures)
or such additional
inputs as may be
required by 31
March 2012.
25
ACHIEVED
N/A
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
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
BASELINE
TARGET
215
(TABLES)
CHANGE AGENDA 4:
BUSINESS
UNIT
KPI/OUTPUT
As per 2010/11
business plan
SALGA NW
Municipalities
advised towards
aligning and
strengthening
of international
partnerships and
implementation of
twinning agreements.
Assessment on
International
Partnerships
New Indicator
Marketing and
Branding of SALGA
New Indicator
SALGA WC
BASELINE
SALGA WC
SALGA FS
OCEO
OCEO
OCEO
216
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
Coordinate and
Support Partnership
between Korean
Institute for
Development and
Moretele Local
Municipality by
March 2012
28
ACHIEVED
N/A
Conduct an
assessment on
International
Partnership by
December 2011
29
ACHIEVED
N/A
Profiling of the
SALGA WC projects/
programmes by
means of newsletters
and annual
publication by March
2012.
30
ACHIEVED
N/A
31
ACHIEVED
N/A
32
ACHIEVED
N/A
33
ACHIEVED
N/A
34
ACHIEVED
N/A
TARGET
Timely dissemination
of accurate
information internally
and externally
New indicator
Coordinated
into all matters
pertaining to
Councillor Support
2010/11 Upper
Limits Notice;
SALGA Position on
Councillor Support;
SALGA Position and
Work done on MCPFrelated issues
Input into the
finalisation of Tools of
Trade by March 2012
Coordinated
into all matters
pertaining to
Councillor Support
2010/11 Upper
Limits Notice;
SALGA Position on
Councillor Support;
SALGA Position, and
Input into the Review
of the System of
Remuneration for
Councillors by March
2102
2010/11 Upper
Limits Notice;
SALGA Position on
Councillor Support;
SALGA Position and
Conduct provincial
workshops on overall
Councillor Support
for new and returning
Councillors post the
Elections by March
2012
Coordinated
into all matters
pertaining to
Councillor Support
Four Internal/external
newsletter developed
by March 2012
(TABLES)
CHANGE AGENDA 4:
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
OCEO
Coordinated
into all matters
pertaining to
Councillor Support
2010/11 Upper
Limits Notice;
SALGA Position on
Councillor Support;
SALGA Position and
Participate in the
Upper Limits process
for the 2011/12
financial year by
March 2012
35
ACHIEVED
N/A
OCEO
Coordinated
into all matters
pertaining to
Councillor Support
2010/11 Upper
Limits Notice;
SALGA Position on
Councillor Support;
SALGA Position and
Co-ordinate and
facilitate participation
on MCPF issues as
and when required or
requested by March
2012
36
ACHIEVED
N/A
217
(TABLES)
CHANGE AGENDA 5:
IMPROVE THE SALGA CORPORATE GOVERNANCE AND INTERNAL FUNCTIONING.
BUSINESS
UNIT
OCEO
KPI/OUTPUT
Coordinated
and Structured
Governance
Structures and
events of SALGA
OCEO
Implemented Annual
Audit Coverage Plan
for 2011/12.
OCEO
Developed 2012/13
Audit Plan
OCEO
OCEO
218
Developed and
implemented
contract
management
strategy.
Implementation
of the compliance
framework for
SALGA.
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
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 ACHIEVED
2010/11 Audit Plan
2012/13 Audit Plan
developed and
approved by March
2012
39
ACHIEVED
BASELINE
Internal audit
assessment on
the contract
management status
of SALGA
Develop contract
management strategy
and flow chart based
for National office by
March 2012
40
NOT ACHIEVED
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
Lack of capacity
N/A
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
N/A
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
Legal Register
All matters attended
to as required and
captured in the legal
register by March
2012.
42
ACHIEVED
N/A
OCEO
Developed
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
ACHIEVED
Target 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
OCEO
Developed and
Implemented
Behaviors Charter
New Indicator
Developed and
implemented
Behaviors Charter to
Employee level 1 - 3
by March 2012
45
NOT ACHIEVED
Lack of capacity
OCEO
Established 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
Existing staff capacity
HR Report submitted
to the CEO quarterly
and Municipal
Finance and
Corporate Services
Working Group
meetings during the
financial year by
March 2012
48
ACHIEVED
N/A
OCEO
F & CS
KPI/OUTPUT
Provision of ongoing
legal services
Management and
monitoring of staff
movements within
SALGA.
BASELINE
219
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
F & CS
Fully implemented
Electronic
Document Records
Management
Systems (EDRMS) to
all offices
F & CS
Ensure that the
ICT functions at
both National and
Provincial Offices
are maintained at an
operational level
F & CS
Improve the liquidity
of SALGA
F & CS
Ensure office
accommodation
that is compliant to
applicable legislation
F & CS
Review of the
Membership levy
formula
F & CS
Implementation
of the approved
purchasing method
SPR
SALGA inyear Quarterly
Performance Reports
(O-PMS) submitted
to the Minister: DCoG
SPR
Submission of the
Mid-Term Review of
the SALGA Business
Plan 2011/12 to
Minister: DCoG
220
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
National office and
six Provincial offices
implemented
Roll-out of Electronic
Document and
Record Management
System (EDRMS)
for Eastern Cape
and Northern Cape
Provincial offices by
March 2012.
49
ACHIEVED
N/A
New Indicator
Maintaining the
network stability at
95% by March 2012
50
ACHIEVED
N/A
90% collection levels
95% collection of
membership levies
by year end (March
2012)
51
NOT ACHIEVED
Municipalities
unable to pay
levies
New Indicator
25% of SALGA
offices compliant with
applicable legislation
by March 2012
52
ACHIEVED
N/A
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
New Indicator
Implementation of
Treasury Guidelines
on Supply Chain by
March 2012
54
ACHIEVED
N/A
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
Mid-Term Review
APP 2011/12
Revised Performance
Plan 2011/12
submitted to
Minister: DCoG by
December 2011
56
ACHIEVED
N/A
BASELINE
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
Annual Report
2010/11
SALGA Annual
Report 2010/11
submitted to
Minister: COGTA
(Parliament) by 31
August 2011
58
ACHIEVED
N/A
59
ACHIEVED
N/A
SPR
Approved SALGA
Performance Plan
2012/13 submitted
to the Minister: DCoG
SPR
Submission of the
SALGA Annual
Report 2010/11
to Minister: DCoG
(Parliament)
SPR
SALGA 5-Year
Strategic Plan 20122017 submitted to
Minister: CoGTA and
National Treasury
Strategic Plan
2007-2012
SALGA 5-Year
Strategic Plan 20122017 submitted to
COGTA and National
Treasury by 31
January 2012
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 EC
Align strategic goals
to the resources
EC Annual
Performance Plan
2011/12
Develop Annual
Performance plan
2012/13 for SALGAEC 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
SALGA FS
Units complying with
prescribed business
planning processes
(implementation of
KPI, reporting)
As per
10/11Business Plan
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
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
221
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA FS
Convene all
Provincial
Governance
Structures
SALGA Governance
Framework
11 SALGA
Governance
Structures convened
by March 2012
64
ACHIEVED
N/A
PMA and PEC
Lekgotla, Strategic
Planning Session,
Municipal Awards
Provincial
Conference, PEC
Lekgotla, 12 working
groups, four PEC
Meetings, and
two Office Bearer
meeting by March
2012
65
ACHIEVED
N/A
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 profiled
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 2011
68
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
final performance
One quarterly review
session of 2011 /
2012 APP by March
2012
69
ACHIEVED
N/A
SALGA NC
Submission of
monthly progress
reports on levies
2009/10 collection
100% collection of
membership levies
by March 2012
70
NOT ACHIEVED
Municipalities
unable to pay
levies
SALGA LP
Coordination
of governance
structures and
Hosting conferences
SALGA LP
Develop provincial
newsletter and
publications of
SALGA’s events
222
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
As per
10/11Business Plan
Coordinate provincial
governance
structures as per
SALGA calendar by
March 2012
Two Working Group
Meetings
One Provincial
Conference
Four PEC Meetings
Two Strategic
Planning Session
71
ACHIEVED
N/A
New indicator
One stakeholder
engagement meeting
to leverage resources
by March 2012
72
ACHIEVED
N/A
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
Convene SALGA
provincial
governance
structures as per
SALGA Year Planner
As per the
2010/2011 final
performance
Convene the
following SALGA
Governance
Structures as per the
SALGA year calendar
by March 2012
Six PEC Meetings
2x6 Working Group
Meetings
One Provincial
Conference
74
ACHIEVED
N/A
SALGA WC
Development 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 WC
Coordinate the
provincial team
building
New Indicator
One Teambuilding
Session conducted
by March 2012 for all
staff members
76
ACHIEVED
N/A
KPI/OUTPUT
SALGA NC
Coordinate the
hosting and
functionality of
all Governance
Structures in line
with the constitution
of SALGA
SALGA NC
Engage identified
stakeholders towards
supporting SALGA
programmes
SALGA NW
SALGA WC
Implementation of
SALGA Governance
Framework and Ad
hoc priorities
223
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
benefits) within
SALGA.
New Indicator
Report with
implementation
plan on introduction
of employment
conditions (service
benefits) submitted
and approved by the
Remuneration Panel
by December 2011.
78
ACHIEVED
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
To enhance HR
compliance to
regulations and
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
To enhance HR
compliance to
regulations and
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 Indicator
Employee Awards
implemented by
December 2011
83
ACHIEVED
N/A
224
N/A
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
F & CS
Structured Wellness
Programme
developed and
implemented.
F & CS
Monitoring and
maintenance of the
EDRMS
F & CS
Ensure efficient ICT
solutions for SALGA
end users
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
Approved Policy.
Wellness Calendar
developed and
submitted to CEO by
September 2011.
84
ACHIEVED
N/A
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
financial year.
New Indicator
To maintain a
desktop support
response turn-around
time of two hours by
March 2012
86
ACHIEVED
N/A
225
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
F & CS
Implementation of
the SALGA funding
model
F & CS
Effective
implementation of
phase 2 of ERP
system
F & CS
Develop and
implement year
planner for SCM
committees
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
Revised levy formula
Proposals on the
funding model
presented to
Executive Authority
(CoGTA) by
September 2011
87
ACHIEVED
N/A
New Indicator
Implementation
of phase 2 of the
Enterprise Resource
Planning (ERP)
system by March
2012
88
ACHIEVED
N/A
SCM Policy
Develop and
implement year
planner for Supply
Chain Management
(SCM) committees by
31 October 2011
89
ACHIEVED
N/A
NOT ACHIEVED
Time
constraints implementation
of SAP
Procurement
module took
longer than
anticipated
thereby leaving
insufficient time
to implement the
VIP/ESS project
although already
developed.
New Indicator
Implementation of
VIP / ESS system by
March 2012
F & CS
Disposal 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 Indicator
R5-million surplus at
31 March 2012
92
ACHIEVED
N/A
New Indicator
Integrated KZN office
by the 30 November
2011
NOT ACHIEVED
The Due
Diligence was
concluded
during May
2012.
F & CS
Implementation of
VIP/ESS
F & CS
226
Integrated KZN office
90
93
(TABLES)
CHANGE AGENDA 5:
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA FS
Compliance 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
final performance
Annual Performance
Plan for 2012/2013
approved by March
2012
95
ACHIEVED
N/A
SALGA NW
Collection of
Membership Levies
Baseline as per year
ending 2010/12
90% Collection of all
Membership Levies
by March 2012
96
ACHIEVED
N/A
OCEO
Established SALGA
Fraud Hotline
Approved Fraud
Prevention Plan
Roll out of the
Fraud Prevention
Awareness campaign
by March 2012
97
ACHIEVED
N/A
New Indicator
Coordinate two
employee wellness
programmes and
one team building by
March 2012
98
ACHIEVED
N/A
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
SALGA NC
SALGA MP
Facilitation of three
wellness programmes
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
227
(TABLES)
PRIORITY OBJECTIVE O1:
COUNCILLOR SUPPORT - HIGH CALIBER, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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 ACHIEVED
Inadequate
response from
municipalities
228
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA EC
Provide support
to municipal
officials towards
ensuring qualitative
compliance with
Performance
Management System.
New Indicator
Provide PMS training
to officials in five
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,
benefits attached to
office bearers and
councillor tax support
matters.
As per 2010/11
business plan
Conduct five
district municipal
engagements
and aftercare on
compliance with
Office Bearers
Handbook and
councillor welfare
matters by February
2012
105
NOT ACHIEVED
Lack of capacity
SALGA LP
New councillors
in the Province
engaged on
clarification 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 officials
and Councillors by
strengthening their
skills and human
resources base.
Skills Audit Report/
Competency
Dictionary
Enrol 200 municipal
councillors and
officials on ELMDP
and MFMP by March
2012
107
NOT ACHIEVED
Request was
sent to all
municipalities
but only 160
councillors
and officials
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
229
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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 WC
Induction of new PEC
members
New 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
21 Municipalities
supported in
understanding
their roles and
responsibilities
Political Office
Bearers and
Administrative
leadership in 21
Municipalities
supported in
understanding
their roles and
responsibilities by
March 2012.
114
ACHIVED
N/A
New Indicator
Five municipalities
assisted in
establishment of
Ward Committees by
March 2012
115
NOT ACHIEVED
SALGA MP
Municipalities
understanding their
legislated roles and
responsibilities
SALGA NC
Councillors
capacitated on
the understanding
of their roles and
responsibilities.
230
Lack of capacity
(TABLES)
SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES,
THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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 achieved
Implement 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
fiscal 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
231
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
MIS
Support Clean and
Green Programme
municipalities
to review their
institutional
arrangements for
waste management
services and share
lessons with other
municipalities
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
122
NOT ACHIEVED
Lack of capacity
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
New Indicator
Revised guideline for
the appointment of
Waste Management
Officers (WMO)
approved by March
2012.
124
ACHIEVED
N/A
125
ACHIEVED
N/A
MIS
Concept and plan for
a national awareness
campaign on waste
management
MIS
Revised guideline for
the appointment of
Waste Management
Officers (WMOs)
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
MIS
Advice to
municipalities on
regularisation of
waste disposal sites
Report on number
of municipalities
applied for landfill
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
232
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
MIS
Facilitate support
and advice through
participation of
municipalities in the
SALGA concluded
partnerships towards
achieving the blue
and green drop
certification.
MIS
Support and advise
on the development
of appropriate
tariff determination
methodologies
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
Blue and green drop
reports from DWA
Train Water Services
Managers in the
25 WSAs towards
achieving the blue
and green drop
certification by
March 2012.
128
ACHIEVED
N/A
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
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
131
ACHIEVED
N/A
MIS
Define appropriate
institutional
arrangements for
bulk water and
sanitation delivery
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.
MIS
Facilitate
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
133
NOT ACHIEVED
Lack of capacity
233
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
New Indicator
Produced a report
on the status of
service delivery
arrangements in EC
municipalities by
March 2012
135
ACHIEVED
N/A
136
ACHIEVED
N/A
MIS
Metropolitan
municipalities
assisted in
planning and
implementation of
the urban settlement
development grant
SALGA EC
Provide advise to
Municipalities on
infrastructure and
service delivery
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
SALGA GP
Facilitate knowledge
sharing platform on
attainment of MDGs
As per 2010/11
report
One workshop
convened on MDGs
by March 2012
137
ACHIEVED
N/A
SALGA GP
Facilitate municipal
comments and
produce timely
reports on bulk
Municipal services.
As per 2010/11
report
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.
As per 2010/11
report
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
234
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA LP
Facilitate consultation
through SALGA
structures
Proposal document
on Municipal Traffic
Revenue Collection
Develop a proposal
on Municipal Traffic
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
SALGA MP
Support
Municipalities in
the delivery of basic
services (water and
sanitation, electricity,
waste management)
SALGA NC
Support
Municipalities in
the delivery of basic
services (water and
sanitation, waste
management)
SALGA NW
Municipalities
assisted towards
the development of
Water Conservation
and Demand
Management
Strategies
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
As per 2010/11
Baseline
Operations
Management and
Service Maintenance
strategies / plans
framework developed
by March 2012
144
NOT ACHIEVED
Lack of capacity
As per 2010/11
Baseline
Coordinate and
facilitate five District
workshops on basic
services (water and
sanitation, waste
management) by
March 2012
145
ACHIEVED
N/A
One Municipality
assisted in 2010/11
Conduct Blue
and Green drop
compliance
monitoring,
evaluation and
interventions by
March 2012
146
ACHIEVED
N/A
235
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA NW
23 municipalities
supported towards
energy efficiency and
renewable energy
sources.
All North West
municipalities
signed accession
agreements and
workshopped on
the deal issues.
Energy efficiency and
renewable energy
sources Capacitation
conducted
Conduct Energy
efficiency and
renewable energy
sources provincial
workshop by March
2012.
147
ACHIEVED
N/A
SALGA NW
Municipalities
supported on road
classification and
operation and
maintenance
Twenty four
municipalities
supported on
road classification
and operation and
maintenance
Provide support
to all four district
municipalities
in the rollout of
integrated transport
management plans
by November 2011
148
NOT ACHIEVED
Lack of capacity
SALGA NW
Municipalities
supported on road
classification,
operation and
maintenance
Twenty four
municipalities
supported on
road classification
and operation and
maintenance
workshop on Roads
Maintenance for
Councillors and
Officials responsible
for Roads by March
2012
149
ACHIEVED
N/A
SALGA NW
Three identified
municipalities
supported in the
housing accreditation
process
Accreditation
process for the three
initially identified
municipalities in
progress and the
rollout of rental
housing stock in
progress
Support the
three identified
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
236
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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 finalization
of the Integrated
Water Resources
Management
Project in the
Breede Overberg
Management
Catchment area by
March 2012.
152
ACHIEVED
N/A
SALGA NC
Awareness 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
154
NOT ACHIEVED
Lack of capacity
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
156
NOT ACHIEVED
Lack of capacity
SALGA EC
Provincial Transport
planning workshops
for officials
New Indicator
ITP workshop
conducted by March
2012
157
ACHIEVED
N/A
237
(TABLES)
BUSINESS
UNIT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA EC
Advice to
municipalities on
regularisation of
wastefill sites
New Indicator
Updated report
of municipalities
which have not
applied for the
regularisation of their
wastefill 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 Indicator
Draft State of energy
reports for KSD by
March 2012
159
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
Municipalities
assisted towards
the development of
Water Conservation
and Demand
Management
Strategies
One Municipality
assisted in 2010/11
Provincial roll out on
Sanitation Strategy by
June 2011
162
ACHIEVED
N/A
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
SALGA WC
SALGA WC
238
KPI/OUTPUT
Capacity building/
networking events
Capacity building/
networking events
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
SALGA WC
Capacity building/
networking events
SALGA WC
Capacity building/
networking events
SALGA WC
SALGA WC
SALGA WC
Capacity building/
networking events
Capacity building/
networking events
Capacity building/
networking events
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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 Efficiency
Plans by March 2012
168
ACHIEVED
N/A
New Indicator
In collaboration
with stakeholders
convene five District
level mini-summits
on Climate Change
by December 2011
169
ACHIEVED
N/A
239
(TABLES)
SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
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
One (1) learning
event on municipal
best practices in
mainstreaming arts,
culture and library
services held by
March 2012
172
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
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/
officials facilitated by
March 2012
174
ACHIEVED
N/A
CD
Improved capacity
of municipalities
to develop and
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
240
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
CD
Municipalities
capacitated
to implement
and monitor
the Millennium
Development Goals
Human Development
Framework
developed;
Guidelines for
the Devolution of
Services developed
Nine (9) Provincial
Workshops on the
Human Development
Framework held by
March 2012
177
NOT ACHIEVED
Municipalities
capacitated
to implement
and monitor
the Millennium
Development Goals
Human Development
Framework
developed;
Guidelines for
the Devolution of
Services developed
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
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
The implementation
of the SALGA Gender
Mainstreaming
Programme
SALGA Women’s
Commission
launched in
November 2010;
Gender Links
and GEMLOG
Programmes
facilitated
Workplan to guide
the functioning of
the SALGA Women’s
Commission
developed by
January 2012
180
ACHIEVED
N/A
The implementation
of the SALGA Gender
Mainstreaming
Programme
SALGA Women’s
Commission
launched in
November 2010;
Gender Links
and GEMLOG
Programmes
facilitated
One (1) induction
and capacity
building programme
coordinated for the
NWG by March 2012
181
ACHIEVED
N/A
CD
CD
CD
CD
REASON FOR
VARIANCE
Lack of capacity
241
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
CD
The implementation
of the SALGA Gender
Mainstreaming
Programme
SALGA Women’s
Commission
launched in
November 2010;
Gender Links
and GEMLOG
Programmes
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
New Indicator
District Aids Councils
established in two
Districts in the
current financial year
in conjunction with
other stakeholders by
March 2012
186
ACHIEVED
N/A
New indicator
Assessment
report on disaster
management in six
districts and the
Metro by March
2012
187
ACHIEVED
N/A
SALGA EC
Establish District
Aids Councils in two
Districts
SALGA EC
Conduct a status quo
analysis of disaster
management in the
province
242
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
Held one workshop
in BCM in 2010/11
Conduct localising
of MDGs workshops
in five districts and
one metro by March
2012
189
ACHIEVED
N/A
190
ACHIEVED
N/A
SALGA EC
Support
municipalities in
mainstreaming
gender, PwD, youth
SALGA EC
Conduct localising of
MDGs workshops in
five districts and one
metro
SALGA EC
Facilitate a provincial
reference group for
arts, culture and
heritage
New indicator
Facilitate provincial
reference group
meetings by March
2012
SALGA EC
Hold Provincial
SALGA Municipal
games by September
2011
Held Provincial
SALGA games in
2010/11
Provincial SALGA
games for all
municipalities by
March 2012
191
ACHIEVED
N/A
SALGA EC
SALGA EC Women’s
summit will be held
Had one provincial
summit in August
2010/11
SALGA EC Women’s
summit in March
2012
192
ACHIEVED
N/A
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 identified Social
cohesion issues
As per 2010/11
report
Conduct two
workshops on Social
Cohesion by March
2012.
195
ACHIEVED
N/A
243
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA GP
Coordination of
provincial women’s
commissions
As per 2010/11
report
Coordinate two
women’s commission
sessions by March
2012.
196
ACHIEVED
N/A
SALGA GP
Advice given to
municipalities on
mainstreaming crosscutting issues
New indicator
Conduct one
workshop on HIV/
Aids handbook by
March 2012.
197
ACHIEVED
N/A
SALGA GP
Advice given to
municipalities on
disability initiatives
As per 2010/11
report
One workshop
coordinated on
disability initiatives by
March 2012.
198
ACHIEVED
N/A
SALGA GP
Coordination of
OR Tambo Intermunicipal games
2010 Inter-municipal
games held in West
rand District
Inter-municipal
games held by
March 2012
199
ACHIEVED
N/A
SALGA GP
Coordination 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 LP
WiLGS 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
244
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
As per the 2010/11
final 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 NC
Roll out the Local
Government
Disability Framework
Audit Report on
disability status quo
in municipalities
One workshop
held to capacitate
municipalities on
by February 2012
211
ACHIEVED
N/A
SALGA MP
Municipalities with
policies on youth,
gender and disability.
245
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA NC
To promote social
cohesion between
districts
Annual Local
Government Games
One municipal sports
event targeting five
district municipalities
by December 2011
212
ACHIEVED
N/A
New Indicator
SALGA Human
Development
Strategy
disseminated to
all municipalities
for inputs and
consolidated by
March 2012
213
ACHIEVED
N/A
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
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 Officials
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
SALGA NW
SALGA NW
SALGA NW
246
Guide municipalities
in addressing Human
Development issues
Municipalities
guided on issues of
provincialisation of
Primary Health Care
Services
Municipalities guided
to improve delivering
on Fire Services.
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
218
ACHIEVED
N/A
SALGA NW
Mayors 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
SALGA NW
Municipalities
assessed on
compliance with
regard to userfriendly municipal
office buildings for
people with disability.
Implementation
Guideline for
for Local Government
2009-2014
Conduct Assessment
of disability access in
23 Municipal Offices
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 WC
Support on integrated
approach on gender
awareness.
As per the
2010/2011 final
performance
Conduct a workshop
for one municipality
on Gender awareness
by December 2011.
221
ACHIEVED
N/A
SALGA WC
approach on youth
development
As per the
2010/2011 final
performance
Conduct a
workshop for one
municipality on youth
development by
February 2012.
222
ACHIEVED
N/A
SALGA WC
approach on HIV/
AIDS
As per the
2010/2011 final
performance
Conduct a workshop
on HIV/AIDS by
September 2011
223
ACHIEVED
N/A
SALGA WC
approach on disaster
management
As per the
2010/2011 final
performance
Conduct a workshop
on disaster
management by
November 2011
224
ACHIEVED
N/A
247
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA Youth
Development
Strategy developed
One Municipal
Consultative
workshop on
youth Economic
Development and
Entrepreneurship
held by December
2011
225
ACHIEVED
N/A
New Indicator
One Roundtable
Consultative meeting
on Municipal
responses to
mainstreaming
children issues
coordinated by
March 2012
226
ACHIEVED
N/A
New Indicator
Establish Disability
Reference Group for
Province by March
2012
227
ACHIEVED
N/A
228
ACHIEVED
N/A
229
ACHIEVED
N/A
CD
Improved local
government access
to information and
knowledge on Youth
Development
CD
SALGA Approach
to Children’s issues
and Early Childhood
Development (ECD)
in Local Government
developed
SALGA EC
Establish Disability
Reference Group for
Province by March
2012
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.
SALGA MP
Municipalities
coordinating and
mainstreaming
community
development issues
Gender Policy
Framework, Disability
Framework,
Provincial
Coordinating Forum
established by March
2012
248
(TABLES)
ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
ED&P
Promote and improve
the effectiveness
of planning and
implementation
of Comprehensive
Rural Development
Programme (CRDP)
projects
Report on the
findings 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
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
ED&P
Aligned Generic
Policy, Model Bylaws and supporting
implementation
guidelines on
Informal Trading.
249
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
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.
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.
ED&P
Implement
Commonwealth Local
Government Forum
(CLGF) partnership
programme
ED&P
Implement
Commonwealth Local
Government Forum
(CLGF) partnership
programme
ED&P
250
Provide support and
guidance to improve
municipal LED
Practice.
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
LED Network portal
Showcasing all best
practices through six
LED case studies,
documented by end
of March 2012.
237
ACHIEVED
N/A
Five (5) LED
Partnerships
Host GPS
Dissemination
workshop with
LED and project
stakeholders by
March 2012
238
ACHIEVED
N/A
Five (5) LED
Partnerships
Produce close-out
report (including four
project Good Practice
Project Case Studies)
by March 2012.
239
ACHIEVED
N/A
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
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
ED&P
Provide support and
guidance to improve
municipal LED
Practice.
SALGA EC
Municipalities
supported to drive
economic growth
through programmes
that will create
employment
opportunities.
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
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
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
244
ACHIEVED
N/A
SALGA EC
Municipalities
supported to drive
economic growth
through programmes
that will create
employment
opportunities.
SALGA EC
Municipalities
supported to drive
economic growth
through programmes
that will create
employment
opportunities.
2010/11 baseline
Facilitate the
development of
SDF’s aligned to the
Provincial SDF in
five Municipalities by
March 2012
SALGA EC
Support
Municipalities in
implementation of
ICT
2010/11 baseline
Workshop on ICT for
Municipalities by
March 2012
245
ACHIEVED
N/A
SALGA EC
Municipalities
supported to drive
economic growth
through programmes
that will create
employment
opportunities.
New Indicator
Seminar for
municipalities
on Land Use
Management and
Spatial Planning by
March 2012
246
ACHIEVED
N/A
251
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA EC
Municipalities
supported to drive
economic growth
through programmes
that will create
employment
opportunities.
New Indicator
Host an informal
trade sector
workshop for
municipalities by
March 2012
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 GP
Improved
functionality of LED
forums.
As per 2010/11
report
Monitor and promote
the functionality of
two LED forums by
March 2012.
250
ACHIEVED
N/A
SALGA GP
Assessment of IDP
review process
New Indicator
Two Municipalities
IDPs assessed by
March 2012
251
ACHIEVED
N/A
SALGA GP
Establishment of
Spatial Planning
forum
New Indicator
Spatial Planning
forum established by
March 2012
252
ACHIEVED
N/A
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
Provincial Workshop
convened
Facilitate ICT
engagements with
five municipalities.
Blouberg, Tubatse,
Mogalakwena,
Tzaneen, and
Makhado by March
2012
254
ACHIEVED
N/A
SALGA LP
252
Promote usage of
ICT in municipalities
through hosting
District awareness
programmes
(TABLES)
BUSINESS
UNIT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
New Indicator
One municipality
supported
in reviewing
LED strategies
reflective of Sector
implementation and
M&E Plans by March
2012.
255
ACHIEVED
N/A
New Indicator
supported in
developing
LED strategies
reflective of Sector
implementation and
M&E Plans by March
2012.
256
ACHIEVED
N/A
2010/11 Baseline
21 municipalities
supported to develop
ICT policy by March
2012.
257
ACHIEVED
N/A
New Indicator
Seven identified
municipalities
supported in
implementation of
the CRDP by March
2012
258
ACHIEVED
N/A
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
municipalities by
March 2012
260
ACHIEVED
N/A
SALGA NW
Municipal
compliance and
adherence with
EPWP reporting
New Indicator
Conduct EPWP
working session by
March 2012
261
ACHIEVED
N/A
SALGA MP
KPI/OUTPUT
Municipalities
driving growth and
employment.
SALGA MP
Municipalities
driving growth and
employment.
SALGA MP
Municipalities with
ICT Strategies.
SALGA MP
Municipalities
playing their role
in implementing
the Comprehensive
Rural Development
Programme
SALGA NC
Develop provincial
IDP process plan
to monitor the
implementation of
the IDPs
253
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
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
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 rollout the programme
(CRDP) by March
2012
266
ACHIEVED
N/A
SALGA WC
learning events on
LED and Planning
New Indicator
Coordinate three
LED, Planning, and
related events by
March 2012.
267
ACHIEVED
N/A
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 financial year
Represent SALGA on
IGR Forum specific
to LED and Economic
Planning issues and
develop position
papers where
necessary by March
2012.
268
ACHIEVED
N/A
SALGA WC
254
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
Support
Municipalities in
implementation of
ICT
2010/11 baseline
Facilitate the
development of
website for four
municipalities by
March 2012
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
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
255
(TABLES)
LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
Develop 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
2012
276
NOT ACHIEVED
Lack of capacity
MID
Develop 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
Offices by March
2012
277
NOT ACHIEVED
Lack of capacity
MID
Develop and
disseminate a
Wellness Framework
HIV and Aids
handbook.
Developed Employee
Wellness Framework
by 30 June 2011
278
ACHIEVED
N/A
HIV and Aids
handbook.
Employee Wellness
Framework
disseminated to all
SALGA Provincial
Offices by 28
February 2012
279
ACHIEVED
N/A
Handbook and a
circular.
Developed policies
on retention,
coaching and
mentoring, human
capital management
and performance
management by July
2011
280
NOT ACHIEVED
Lack of capacity
MID
MID
MID
256
Develop and
disseminate a
Wellness Framework
Develop prioritised
policies and monitor
the implementation
of existing policies.
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
281
NOT ACHIEVED
Lack of capacity
MID
Develop 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
MID
Roll-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
MID
Research proposal
on restructuring of
the SALGBC
New 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
286
NOT ACHIEVED
Lack of capacity
257
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
287
NOT ACHIEVED
Lack of capacity
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 ,
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
Advice given to
municipalities on
labour-related
matters
As per 2010/11
report
All municipalities
monitored by March
2012
290
NOT ACHIEVED
SALGA LP
Represent
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 LP
Strike 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
258
Lack of capacity
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA MP
Strengthened
Employer employee
relations
As per the
2010/2011 final
performance
All 21 municipalities
represented in
SALGBC negotiations
by March 2012
294
ACHIEVED
N/A
SALGA NC
Presiding Officers
and Prosecutors
capacitated on
Labour Related
issues
New Indicator
Training held
to capacitate
Presiding Officers
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
As per the
2010/2011 final
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
299
ACHIEVED
N/A
300
ACHIEVED
N/A
SALGA NW
Represent & 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.
SALGA WC
Represent
Municipalities at
labour related
forums, i.e. SALGBC,
LGSETA and other
relevant HR, IR and
Capacity Building
Structures.
As per the
2010/2011 final
performance
Report quarterly
on municipalities
represented on
labour related forums
by March 2012.
259
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
As per the
2010/2011 final
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
302
ACHIEVED
N/A
SALGA WC
Represent and
assist Municipalities
in SALGBC
dispute resolution
processes and
internal municipal
disciplinary and
capacity processes.
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.
SALGA WC
Convene the
Human Resources
Practitioners Forum
As per the
2010/2011 final
performance
Convene four
Human Resources
Practitioners Forum
Meetings by March
2012.
303
ACHIEVED
N/A
SALGA GP
Advice given to
municipalities on
labour-related
matters
As per 2010/11
report
All municipalities
advice given where
required by March
2012
304
ACHIEVED
N/A
SALGA MP
Strengthened
Employer employee
relations
As per the
2010/2011 final
performance
Six municipalities
supported to have
fully-functional Local
Labour Forum by
March 2012
305
ACHIEVED
N/A
As per the
2010/2011 final
performance
All 21 municipalities
supported in
engaging in Labour
on Minimum
Essential Services
level Agreement by
March 2012
306
ACHIEVED
N/A
SALGA MP
260
Strengthened
Employer employee
relations
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA MP
Strengthened
Employer employee
relations
As per the
2010/2011 final
performance
Six municipalities
supported in labour
dispute matters by
March 2012
307
ACHIEVED
N/A
SALGA MP
Municipalities
with skilled and
capacitated Presiding
Officers
New Indicator
12 capacitated
Presiding Officers,
four per District by
July 2011
430
ACHIEVED
N/A
261
(TABLES)
SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM –
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
IGR
Preparing a research
report on the overand under regulation
of local government.
MSA addressed
issues raised at NMA
Develop two (2)
position papers on
specific 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 finance
report for 2009/10
financial 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&P
Indigent 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
262
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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
315
NOT ACHIEVED
Lack of capacity
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
2010/11 baseline
Support six
development and
implementation of
improved Revenue
Enhancement
Strategies by March
2012
317
NOT ACHIEVED
Lack of capacity
318
NOT ACHIEVED
ED&P
Participation in the
Municipal Property
Rates Act (MPRA)
Amendment process
SALGA EC
Municipalities
supported towards
the development and
implementation of
improved Revenue
Enhancement
Strategies
SALGA FS
Revenue
Enhancement
Strategy developed
New indicator
Finalise the Revenue
Enhancement
Strategy by March
2012
SALGA GP
Support rendered
to municipalities
in strengthening
sound financial
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.
As per 2010/11
status report
Four municipalities
monitored and
assessed by March
2012.
320
ACHIEVED
N/A
SALGA GP
Advice provided
to municipalities
on financing
alternatives.
New Indicator
One symposium
convened on
borrowings for all
province by March
2012.
NOT ACHIEVED
The symposium
was postponed
until further
notice
321
263
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
322
NOT ACHIEVED
REASON FOR
VARIANCE
SALGA LP
2014 clean audit
Assessment
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
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
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
2010/11 Baseline
Seven financial
management
Systems analysed by
March 2012
325
NOT ACHIEVED
Lack of capacity
2010/11 Baseline
21 municipalities
supported in the
development
of revenue
enhancement
strategies by March
2012
326
ACHIEVED
N/A
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
SALGA MP
Improved audit
outcomes for
municipalities.
SALGA MP
Municipalities with
improved financial
management
systems and
processes
SALGA MP
Municipalities
developing and
implementing
Revenue
Enhancement
Strategies
SALGA MP
Municipalities
developed and
implementing
an effective Risk
Management and
Internal Audit
System.
264
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA NC
Support
implementation of
phase 2 EPWP
18 Municipalities
registered and
reporting
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 finance
reports.
Workshop held in
2010/11
Provincial workshop
on political oversight
convened by
December 2011
329
ACHIEVED
N/A
SALGA NC
Ensure functionality
of (5) District Area
Finance Forums
Four Forums in 5
Districts
Two DAFF Meetings
convened by March
2012
330
ACHIEVED
N/A
SALGA NC
Coordination 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
March 2012
335
ACHIEVED
N/A
265
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA WC
Support to
municipalities with
regard to Operation
Clean Audit
New Indicator
Convene a workshop
on MPACs by March
2012
336
ACHIEVED
N/A
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 financial
management
2011 Budget week
outcomes
Support given to
municipalities by
March 2012.
338
ACHIEVED
N/A
SALGA MP
Municipalities with
improved financial
management
systems and
processes
2010/11 Baseline
21 Municipalities
supported in the
implementation
of the 2010/2011
Budget week
resolutions by March
2012
339
NOT ACHIEVED
Lack of capacity
SALGA MP
Municipalities with
improved financial
management
systems and
processes
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
266
(TABLES)
STABLE MUNICIPAL GOVERNANCE - STABLE MUNICIPAL GOVERNANCE
BUSINESS
UNIT
KPI/OUTPUT
IGR
Final guidelines
on the roles and
responsibilities
approved by the NEC
IGR
Research Paper
on best practices
regarding
accountability
oversight in
municipalities.
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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
ToRs developed in
2010-11
Two (2) best
practices proposals
on effective
accountability and
oversight by 31
March 2012
344
ACHIEVED
N/A
345
ACHIEVED
N/A
SALGA FS
Support and advise
role clarification
Approved guidelines
on Roles and
Responsibilities
Four (4) district
workshops on roles
and responsibilities
for Mayors, Speakers,
Councillors and
Municipal officials by
March 2012.
SALGA FS
Participation of
SALGA in provincial
IGR structures
As per 2010/11 APP
SALGA participated
in 12 IGR structures
by March 2012
346
ACHIEVED
N/A
SALGA FS
with the
establishment of
Ward Committees
New Indicator
Three (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
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
SALGA NW
Municipalities
advised on effective
Political oversight on
Good Governance
and Ethics
267
(TABLES)
STABLE MUNICIPAL GOVERNANCE - STABLE MUNICIPAL GOVERNANCE
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA NW
Participation and
representation by
SALGA in key IGR
Structures
SALGA Governance
Framework
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
352
NOT ACHIEVED
Lack of capacity
SALGA FS
Training conducted
for Ward Committees
New 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
355
ACHIEVED
N/A
IGR
Development of a
governance model
for the separation
of powers in
municipalities
356
ACHIEVED
N/A
268
New indicator
New indicator
Governance model
approved by NEC by
31 March 2012
Advisory workshops
in three provinces on
the development of
MPACs by 31 March
2012
(TABLES)
CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND
STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SPR
Build awareness and
use of knowledge
hub
New Indicator
Municipal level data
framework developed
by December 2011
357
ACHIEVED
N/A
SPR
Build awareness and
use of knowledge
hub
New Indicator
Local level data is
made accessible
through SALGA’s
website quarterly by
March 2012
358
ACHIEVED
N/A
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
New Indicator
Two districts
meetings held
to capacitate
municipalities
on Disaster
Management by
March 2012
361
NOT ACHIEVED
Lack of capacity
A consolidated report
on the municipalities
audit outcomes.
Five municipalities
in five provinces
(one per province)
(EC, FS, NC, MP,
LP) identified and
assisted by March
2012
362
NOT ACHIEVED
Lack of capacity
As per five
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
SPR
SPR
Initiate and
coordinate municipal
benchmarking
programmes
Build awareness and
use of knowledge
hub
SALGA NC
Two districts
capacitated with
regard to Disaster
Management
OCEO
Advisory Internal
Audit support
provided to
municipalities with
poor audit outcome.
OCEO
Supporting
and assisting
municipalities in
the implementation
of Performance
Management System.
269
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
364
ACHIEVED
REASON FOR
VARIANCE
SPR
Facilitate 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
SPR
Facilitate theme
based learning
networks and events
Learning Events
Four learning events
concluded by March
2012
365
ACHIEVED
N/A
MIS
Development 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
367
NOT ACHIEVED
Lack of capacity
MID
SALGA
recommendations
on Councillor Skills
Assessment report
communicated
New Indicator
SALGA
recommendations
on revised capacity
building strategy
distributed to
provincial offices by
31 January 2012
368
NOT ACHIEVED
Lack of capacity
MID
SALGA
recommendations
on Councillor Skills
Assessment report
communicated
New Indicator
Facilitate portfoliobased training in
five provinces by 31
March 2012
369
NOT ACHIEVED
Lack of capacity
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
270
N/A
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
MID
The establishment
and strengthening
of partnerships
with government
departments, niche
institutions and
business.
MoU signed with
and list of key
stakeholders
Signed agreements
with niche institutions
by March 2012
371
ACHIEVED
N/A
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
372
NOT ACHIEVED
Lack of capacity
MID
Framework for the
development of
a SALGA sector
mentorship
programme.
New Indicator
Framework for
SALGA Sector
Mentorship
Programme
developed by 31
March 2012.
373
NOT ACHIEVED
Lack of capacity
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
375
NOT ACHIEVED
Lack of capacity
MID
Lobby 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
MID
Lobby and advocate
for improved PMS in
the sector
Performance
management toolkit.
Workshop report.
SALGA PMS
cascading framework
developed by 30
October 2011
377
ACHIEVED
N/A
MID
Lobby and advocate
for improved PMS in
the sector
Performance
management toolkit.
Workshop report.
Developed PMS
capacity building
plan for the sector by
31 March 2012
378
ACHIEVED
N/A
271
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
MID
Lobby and advocate
for LG Web-based
HRMIS
New Indicator
SALGA report on
Municipal HRMIS by
30 November 2011
379
NOT ACHIEVED
Lack of capacity
MID
Lobby and advocate
for LG Web-based
HRMIS
New Indicator
SALGA funding
proposal submitted
to CoGTA by 31
October 2011
380
NOT ACHIEVED
Lack of capacity
MID
Support and
advice provided to
municipalities on
Labour Relations
matters
Support provided to
Municipalities
Quarterly Labour
bulletins by March
2012
381
ACHIEVED
N/A
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
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.
Guidelines
for twinning
municipalities
approved by NEC
and workshopped to
at least 4 provinces
and distributed to all
278 municipalities by
31 March 2012.
383
NOT ACHIEVED
Lack of capacity
272
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
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.
Project to promote
the conclusion of
inter-municipal
partnerships or
international cityto-city cooperation
of at least two
domestic cities to two
international cities by
March 2012.
384
ACHIEVED
N/A
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.
At least 1 (one)
above international
project per twinning
implemented by 31
March 2012.
385
NOT ACHIEVED
Lack of capacity
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
ED&P
Facilitate the
capacity building
of Councillors
and Planning
Practitioners
on planning
related matters in
municipalities
273
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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.
As per 2010/11
Business Plan
Implement aspects
of eSkills programme
from DoC MOU on
eSkills by March
2012
387
NOT ACHIEVED
Lack of capacity
ED&P
Provide support and
guidance to ensure
that ICT’s are better
administration,
service delivery,
and socio-economic
development within
Municipalities.
As per 2010/11
Business Plan
Launch Municipal
ICT Practitioners
Network by March
2012
388
ACHIEVED
N/A
ED&P
Provide support and
guidance to ensure
that ICTs are better
administration,
socio-economic
development within
Municipalities.
As per 2010/11
Business Plan
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
administration,
socio-economic
development within
Municipalities.
As per 2010/11
Business Plan
Prepare feasibility
study on SALGA
Forming an ICT
Accreditation Service
by March 2012
390
ACHIEVED
N/A
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
SALGA EC
274
Councillors and
officials capacitated
on issues of local
government
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA EC
HIV/ 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 officials
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 GP
Facilitate targeted
training to improve
service delivery
New Indicator
1000 councillors and
officials 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 first
three quarters
was on CIP
training
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
SALGA MP
Integrated
Development Plans
reflective of sector
plans
275
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA MP
Municipalities
developing and
implementing
the Performance
Management System
As per the
2010/2011 final
performance
supported in the
development and
implementation
of PMS for Senior
Management by
March 2012
398
ACHIEVED
N/A
SALGA MP
Councillors,
Officials, PEC, and
WG members and
Traditional leaders
orientated and
capacitated on issues
of local government
As per the
2010/2011 final
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
10 Workshops
10 workshops on
Main Collective
Agreement/HR
Policies/Disciplinary
Procedure/LLF/
Divisional COS/Strike
Management by
March 2012
401
ACHIEVED
N/A
402
ACHIEVED
N/A
403
ACHIEVED
N/A
SALGA NC
Implement capacity
building intervention
benefiting councillors
and officials
SALGA NC
Councillors orientated
on local government
issues
New Indicator
program coordinated
to orientate
councillors after the
local government
elections by
September 2011
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.
276
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
SALGA NW
Conduct induction
programme for newly
elected councillors
on the roles and
responsibilities.
SALGA NW
Conduct Skills
Development
and Training for
municipalities
SALGA NW
Support
municipalities in
the implementation
of the Performance
Management System
by monitoring the
implementation
thereof.
SALGA WC
Facilitate general
training, capacity
building and
knowledge sharing
for Councillors and
Officials. (Councillor
Induction, ELDP,
Conflict Resolution,
Disciplinary Hearing
Chairpersons
and Initiators,
Workshops.)
SALGA MP
Councillors,
Officials, PEC,
and WG members
and Traditional
leaders orientated
and capacitated
on issues of local
government
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
New Indicator
Newly elected
Councillors inducted
on roles and
responsibilities by
March 2012
404
ACHIEVED
N/A
2010/11 training
outcomes
300 Councillors/
Officials Trained on
PMS; HIV/AIDS;
LLF; OHS; LRPF
and HRPF by March
2012
405
ACHIEVED
N/A
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
Three capacitybuilding interventions
Conduct five training
interventions for
councillors and
officials on local
government by
March 2012.
407
ACHIEVED
N/A
As per the
2010/2011 final
performance
13 PEC members
and 36 working
group members
inducted on the
mandate of SALGA
by December 2011.
NOT ACHIEVED
Transition
in SALGA
Governance
Structures
408
277
(TABLES)
BUSINESS
UNIT
KPI/OUTPUT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
SALGA MP
Councillors,
Officials, PEC and
WG members and
Traditional leaders
orientated and
capacitated on
issues of local
government
As per the
2010/2011 final
performance
500 Councillors,
Traditional Leaders
and Officials
trained in nine
local government
programmes by
March 2012.
409
ACHIEVED
N/A
SPR
Build awareness and
use of knowledge
hub
New Indicator
Convene one national
and four provincial
workshops on
municipal barometer
by March 2012
410
ACHIEVED
N/A
SPR
Facilitate theme
based learning
networks and events
Local Learning
Network
Quarterly outcome
Reports on District
Learning Networks
developed by March
2012
411
NOT ACHIEVED
Lack of capacity
MID
SADC regional
collaboration strategy
developed.
New Indicator
Conduct a needs
assessment of the
strategy
429
NOT ACHIEVED
278
Lack of capacity
(TABLES)
REFORM ORGANISED LOCAL GOVERNMENT –
A MORE EFFECTIVE, RESPONSIVE, AND FINANCIAL VIABLE SALGA
BUSINESS
UNIT
KPI/OUTPUT
SALGA FS
Partnerships
with relevant
institutions of
Higher Learning and
Professional bodies
or Associations
concluded.
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
New indicator
wo partnerships with
of higher learning
and professional
bodies concluded by
March 2012.
412
NOT ACHIEVED
Lack of capacity
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.
Papers submitted to
NMA in May 2011
Proposed
amendments to
OLG Act and other
legislation by 31
March 2012.
414
ACHIEVED
N/A
IGR
Development of a
position paper on the
review of Organised
Local Government
Papers submitted to
NMA in May 2012
Lobby national
and provincial
IGR structures
and Parliament to
effect proposed
amendments by 31
March 2012.
415
ACHIEVED
N/A
SALGA FS
Improvement in the
collection of levies
85% Collection of
municipal levies.
100% Collection of
municipal levies by
March 2012
416
NOT ACHIEVED
Municipalities
cashflow
challenges
SALGA GP
Effective coordination
of and participation
in all governance
structures
As per 2010/11
status report
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
418
NOT ACHIEVED
Lack of capacity
IGR
Development of a
review of Organised
Local Government
IGR
Development of a
review of Organised
Local Government
279
(TABLES)
REFORM ORGANISED LOCAL GOVERNMENT –
A MORE EFFECTIVE, RESPONSIVE, AND FINANCIAL VIABLE SALGA
BUSINESS
UNIT
KPI/OUTPUT
SALGA MP
Municipalities
consulted on
the proposed
amendments to the
SALGA constitution
SALGA NW
Municipalities
consulted towards
the Restructuring
of Governance
Structures of SALGA
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
SALGA Governance
Framework
SALGA MP
Municipalities
implementing the
IGR Framework Act
280
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON FOR
VARIANCE
New Indicator
21 Municipalities
consulted on the
review of the SALGA
constitution by
March 2012
419
ACHIEVED
N/A
SALGA Governance
Framework
Establishment of
SALGA Provincial
Working Groups by
PEC in consultation
with Municipalities
after Provincial
Conference by
December 2011
420
ACHIEVED
N/A
New Indicator
Conduct induction
workshop for new
PEC and Working
Group members on
SALGA Governance
Framework by
January 2012
421
ACHIEVED
N/A
New Indicator
21 Municipalities
supported in the
implementation of
the IGR Framework
Act by March 2012
422
ACHIEVED
N/A
(TABLES)
CLIMATE CHANGE RESPONSE MEASURES AT MUNICIPAL LEVEL –
INTEGRATION OF CLIMATE CHANGE RESPONSES IN DEVELOPMENT PLANNING AND MANAGEMENT.
BUSINESS
UNIT
BASELINE
TARGET
KPI
NR
PERFORMANCE
STATUS
REASON 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 efficiency in
municipalities
MoU for
implementation
of programme
signed with KSD
municipality
Final report on
policy implications
of implementation
of energy efficiency
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.
425
NOT ACHIEVED
Lack of capacity
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
fulfilled in respect of
energy efficiency
MoU for
implementation
of programme
signed with KSD
municipality
A draft report on the
Institutional capacity
assessments for
pilot municipalities
in relation to the role
and mandate to be
fulfilled in respect of
energy efficiency by
March 2012.
428
NOT ACHIEVED
Lack of Capacity
KPI/OUTPUT
281
282
CHAPTER 4
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
283
4.1 INTRODUCTION
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.
284
4.2 BUSINESS PLANNING AND
PERFORMANCE INFORMATION
4.2.1 BUSINESS PLANNING:
The Strategic and Annual Performance Planning Policy was developed during the 2009/10 financial 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
first revision of the Policy took place during the 2010/11 financial year to make the necessary improvements towards process
optimilisation. The first 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 financial year). The SALGA Strategic and Annual
Performance Planning Policy consist of two distinct parts: (a) the policy which is reflective 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 first 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 final Strategic Plan has to be refined 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 five-year Strategic Plan) has
to be guided by the timeframes laid down by National Treasury:
Step 1:
Provincial mandating process has to inform the first draft Annual Performance Plan to be submitted
to the Minister: CoGTA by 31 August of a particular planning cycle.
285
•
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 final Annual Performance Plan has to be refined 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 highlevel 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 five 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 verification 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
286
•
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
•
Office of the CEO
287
4.3 THE SALGA LEGISLATIVE
COMPLIANCE FRAMEWORK
4.3.1 INTRODUCTION
SALGA has taken proactive steps to ensure that appropriate and sufficient 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 financial 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 official obligations. The compliance unit in the office 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 officers on fundamental principles of compliance.
•
A quarterly compliance training newsletter was developed and distributed to all compliance officers, thus ensuring
ongoing, on-the job compliance training and awareness.
•
Continuous assistance to all compliance officers 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.
288
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
289
4.4 BUDGETING POLICY
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,
efficient and transparent systems of financial 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 specific 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 financial year and beyond to support the budget being requested.
The programme of action must focus on the planning financial 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.
290
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 office
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 financial 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 flows 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
specific 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 identified 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 scientifically the following cost components that must be funded from the national fiscals;
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
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
R 101,375,000
R 87,951,000
R 92,788,000
Less: Current government grant in financial 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
Mandatory Governance costs
TOTAL
The rational for each of the components is summarised below:
291
(i)
Mandatory Governance Costs
One of the main reasons for requesting a government grant to finance 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 benefit government per se but rather are intended to safeguard the interests of and promote accountability
to stakeholders. Good governance reflects 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 fiscas should fund this cost of governance as it is compliance related.
(ii)
Legislated Inter-Governmental Relations Participation
The main reason for requesting government grant financing 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 financial 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 fiscas.
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
292
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.
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4.5 AUDIT COMMITTEE
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 financial 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 financial and
legal literacy.
Four meetings were held during the 2011/12 financial 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 Officer, the Chief Financial Officer, The
Head of Internal Audit, and relevant corporate officials. 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 financial interests that may conflict with their duties in this regard.
For the period under review, the audit committee has fulfilled all the requirements in terms of its responsibilities and functions
as per the Audit Committee Charter, PFMA and Treasury Regulations.
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4.6 INTERNAL AUDIT
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 Officer and functionally to the Audit Committee to ensure its
independence. The purpose, authority, and responsibilities of Internal Audit function are formally defined 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.
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4.7 RISK MANAGEMENT
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 fulfil 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 fulfilling its oversight role. The NEC approves the Risk Management strategies and policies.
Annual risk assessments are conducted to both fulfil 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 identified 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.
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4.8 INDIVIDUAL PERFORMANCE
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 Office 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 Officer 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.
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MANAGEMENT
The table below lists the Panel members for the period under review (2011 - 2012):
NO.
NAMES OF PANEL MEMBERS
1
Cllr T. Manyoni
SALGA National Chairperson
2
Cllr N. Hermans
SALGA Deputy Chairperson – National Office Bearer
3
Cllr N. Meth
4
Cllr S. Mashilo
5
6
7
8
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Mr Michael Olivier
Mr Zwelibanzi Mntambo
Ms Elizabeth Dhlamini-Khumalo
Mr Blake Mosley-Lefatola
BACKGROUND
SALGA Eastern Cape Provincial Chairperson
Chairperson of the HR Development and Collective Bargaining Working Group
•
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
•
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.
•
•
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.
•
•
Chief Executive Officer of SITA.
•
Municipal Practitioner and Expert in Performance Management and Remuneration
•
Former Chief Executive Officer – Gauteng Economic Development Agency (GEDA).
•
Previous experience as City Manager, newly appointed DG of DPSA
MANAGEMENT
NO.
9
10
11
a.
NAMES OF PANEL MEMBERS
BACKGROUND
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.
•
•
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 Certified
Director
•
An international business woman who held various senior and executive positions over
two decades in large corporations in the USA and South Africa.
Ms Laura Machaba-Abiodun
Mr Xolile George
Chief Executive Officer of SALGA
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
Officer 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 efficient 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 Office 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
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MANAGEMENT
•
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 Officer of SALGA, Chief of
Operations, and the Chief Financial Officer attend Panel meetings in an ex-officio 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 Office of the CEO.
c.
Term of office of the Panel
Constitution and term of office for members of the Panel is for a period of three years, subject to annual review at the end of each
financial year. The term of office 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 office 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 reflect 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)
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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.
MANAGEMENT
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 financial 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 reflects:
•
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 final 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 final 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:
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MANAGEMENT
•
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:
•
302
Approval of performance agreements and scorecards of the CEO and Senior Executives for the financial year.
MANAGEMENT
•
Current review of performance scorecards for the financial 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 office.
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 final 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.
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MANAGEMENT
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.
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4.9 SALGA GOVERNANCE STRUCTURES/
MANDATING FRAMEWORK
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.
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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 five years following
the local government election. Chief among the powers vested in the national conference are to elect office 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 financial statements of the previous year, approve the
organisation’s budget, and review the financial 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. Reflect 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 financial statements in respect of the 2009/10 and 2010/11 financial years;
3. Approve the programme of action, business plan/budget of SALGA as approved by the NEC for the 2011/12 financial year;
4. Review the organisational financial 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 five years
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MANDATING FRAMEWORK
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).
22 July 2011
23 August 2011
29 August 2011
NEC MEETINGS
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, conflicts or gaps in current or new policies, strategies and implementation programmes
affecting the sector and contribute to finding 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.
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MANDATING FRAMEWORK
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.
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
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MANDATING FRAMEWORK
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 cooption 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
20 February 2012
WORKING GROUP
Human Resource Development and Collective Bargaining
Municipal Infrastructure and Services
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
20 March 2012
309
MANDATING FRAMEWORK
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 Yearplanner, specifically 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 financial 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 configurations 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 Office had a Provincial Members Assembly during the year under review as per the SALGA
Constitution where the provinvial leadership (PEC) was elected:
310
MANDATING FRAMEWORK
SALGA EASTERN CAPE
SALGA EASTERN CAPE PROVINCIAL CONFERENCE
DATE OF CONFERENCE
VENUE
20 to 22 JULY 2011
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 officials 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
finances in a way to ensure potent financial integrity in municipalities, to ensure proper expenditure, and ensure effective
financial 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 significant 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 finances, 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 Officer 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
311
MANDATING FRAMEWORK
MID WORKING GROUP
LED WORKING GROUP
COMMUNITY DEVELOPMENT
WORKING 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 FINANCE
WORKING GROUP
Dates
22 September 2011
23 February 2011
SALGA FREE STATE
SALGA FREE STATE
DATE OF CONFERENCE
VENUE
15 to 16 AUGUST 2011
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
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 offices.
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 reflect on their achievements.
312
MANDATING FRAMEWORK
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 confident 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:
•
Definitions – 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)
313
MANDATING FRAMEWORK
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 finance 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
WORKING GROUP
Dates
Dates
Dates
30 September 2011
02 March 2012
09 December 2011
09 February 2012
11 November 2011
24 January 2012
08 March 2012
Governance and IGR
WORKING GROUP
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
WORKING GROUP
Dates
13 October 2011
10 February 2012
314
MANDATING FRAMEWORK
SALGA GAUTENG
SALGA GAUTENG PROVINCIAL CONFERENCE
DATE OF CONFERENCE
VENUE
28 to 29 JULY 2011
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 office
•
Establish and review the SALGA oversight bodies as may be required by law
•
Consider audited financial statements in respect of the 2009/10 financial period
•
Approve the business plan and the budget of SALGA Gauteng for 2011/12 financial year, and
•
Review the financial 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
•
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 office bearers.
•
That SALGA-Gauteng should collect all membership levies and allocate 50 percent to national office, the remainder which
shall be used for programme implementation.
315
MANDATING FRAMEWORK
•
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 efficiency 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 reaffirms 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 financial 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.
316
MANDATING FRAMEWORK
•
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 sufficient 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:
WORKING GROUP:
Economic and Development Planning
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 GROUP
Climate 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
317
MANDATING FRAMEWORK
SALGA LIMPOPO
SALGA LIMPOPO PROVINCIAL CONFERENCE
DATE OF CONFERENCE
VENUE
27 to 29 JULY 2011
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 officials 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.
318
MANDATING FRAMEWORK
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
11 November 2011
16 November 2011
30 November 2011
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
319
MANDATING FRAMEWORK
SALGA MPUMALANGA
SALGA MPUMALANGA PROVINCIAL CONFERENCE
DATE OF CONFERENCE
VENUE
02 to 03 August 2011
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 first 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
Working Group
Community Development Working Group
Dates
Dates
Dates
20 July 2011 (S)
17 November 2011
17 November 2011
06 March 2012
01 August 2011 (S)
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
16 November 2011
18 November 2011
29 November 2011
02 March 2012
09 March 2012
08 March 2012
320
MANDATING FRAMEWORK
Economic Development Planning Working Group
Dates
29 November 2012 (Teleconference)
06 March 2012
SALGA NORTHERN CAPE
PEC MEETINGS
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
321
MANDATING FRAMEWORK
SALGA NORTH WEST
SALGA NORTH WEST PROVINCIAL CONFERENCE
Date of Conference
Venue
3-4 August 2011
Rustenburg Orion Safari Lodge
Narrative
PEC MEETINGS
Community Development Working Group
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
322
MANDATING FRAMEWORK
SALGA WESTERN CAPE
PEC MEETINGS
WORKING GROUP
WORKING GROUP
Dates
Dates
Dates
13 April 2012
08 July 2011
Municipal Infrastructure services 18
October 2012
Municipal Infrastructure services 01
February 2012
Human Resources Management 20
October 2012
Human Resources Management 15
February 2012
20 October 2012
10 February 2012
02 August 2012
18 August 2011
22 September 2011 (Lekgothla)
19 October 2012
1 February 2012
23 September 2011
Municipal Finance
4 November 2011
18 October 2011
Municipal Finance
31 Jan 2012
08 February 2012
Relations
19 October 2012
Relations
20 February 2012
30 March 2012
323
4.10 HUMAN RESOURCES OVERSIGHT
REPORT
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 financial year to 34 percent in the
2011/2012 financial year. The table below summarises posts on the approved staff establishment of SALGA:
324
97
1
8
8
35
33
9
3
13
1
4
3
3
2
4
0
0
0
2
2
I
8
0
0
2
4
2
0
W
0
0
0
0
0
0
0
122
1
8
9
41
42
14
7
Sub
-Total
Males
310
2
13
84
100
79
21
11
Total
As at 31 March 2012
34%
188
1
5
75
59
37
7
4
C
Foreign
Nationals
Vacancy Rate
1
0
0
0
1
0
0
A
Males
160
19
10
4
3
2
W
Sub
-Total
Females
Number of Vacancies
5
1
1
2
1
I
Foreign
Nationals
470
9
1
3
3
1
1
0
C
Females
Approved Positions
154
Grand Total
4
1
Messengers, Drivers,
and Cleaners
Unskilled and Defined
Decision-Making
61
51
30
4
3
A
Temporary Employees
Executive
Secretaries, and
Admin Assistants
Programme
Manager, Managers,
and Specialists
Professionally Qualified
and Experienced
Specialists and MidManagement
Semi-Skilled and
Discretionary DecisionMaking
Directors, Specialists
Senior Management
Advisors,
Consultants,
Practitioners,
Coordinators,
PAs, Officers, and
Specialists
CEO, COO, CFO,
Executive Directors,
and PEOs
Top Management
Skilled Technical
and Academically
Qualified Workers,
Junior Management,
Supervisors, Foremen,
and Superintendents
SALGA
Occupational
Categories
Occupational Levels
Table 1
REPORT
325
326
Advisors, Consultants, Practitioners,
Coordinators, PAs, Officers, and
Specialists
Executive Secretaries, Admin
Assistants
Messengers, Drivers, and Cleaners
Skilled Technical and
Academically Qualified Workers,
Junior Management, Supervisors,
Foremen, and Superintendents
Semi-Skilled and Discretionary
Decision-Making
Decision-Making
3
26
17
12
7
0
0
1
1
3
2
3
0
0
0
2
0
1
I
4
0
0
1
1
2
0
W
0
0
0
0
0
0
0
Foreign
Nationals
133
5
8
35
30
28
21
6
Total
As at 31 March 2012
37%
41
3
5
4
9
9
9
2
C
Vacancy Rate
1
0
0
0
0
1
0
0
A
79
8
1
0
4
1
0
2
0
W
Males
Number of Vacancies
2
0
0
0
1
1
0
0
I
Foreign
Nationals
212
3
0
0
1
0
1
1
0
C
Females
Approved Positions
64
Programme Manager, Managers,
and Specialists
Professionally Qualified and
Experienced Specialists and
Mid-Management
4
Grand Total
Senior Management
1
1
CEO, COO, CFO, Executive
Directors, and PEOs
Top Management
A
Temporary Employees
SALGA Occupational Categories
Occupational Levels
SALGA NATIONAL OFFICE
Table 2
SALGA operates from the national office in Pretoria with additional offices in all provinces. These offices had to be capacitated during the reporting
period. The tables below summarise the breakdown of filled positions per office (national office and eight provinces, excluding KwaZulu-Natal) as
at 31 March 2012:
STAFF COMPLEMENT CATEGORISED
REPORT
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I
0
0
0
0
0
0
0
W
0
0
0
0
0
0
0
22
1
0
5
10
6
0
0
Total
As at 31 March 2012
31%
4
0
0
0
2
2
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
10
1
0
0
0
1
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
32
1
0
1
0
0
0
0
C
Females
Approved Positions
16
Grand Total
0
1
Decision-Making
4
8
3
0
A
Temporary Employees
Executive Secretaries, and Admin
Assistants
and Specialists
Mid-Management
Decision-Making
Senior Management
Specialists
Directors, and PEOs
Top Management
Skilled Technical and Academically
Qualified Workers, Junior
Management, Supervisors,
Occupational Levels
SALGA EASTERN CAPE
Table 3
REPORT
327
328
Specialists
Assistants
Decision-Making
Decision-Making
0
5
6
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I
0
0
0
0
0
0
0
W
0
0
0
0
0
0
0
27
0
0
6
12
8
0
1
Total
As at 31 March 2012
18%
12
0
0
1
6
5
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
6
0
0
0
0
0
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
33
0
0
0
0
0
0
0
C
Females
Approved Positions
15
and Specialists
Experienced Specialists and MidManagement
0
Grand Total
Senior Management
1
0
Directors, and PEOs
Top Management
A
Temporary Employees
Occupational Levels
SALGA FREE STATE
Table 4
REPORT
Specialists
Assistants
Decision-Making
Unskilled and Defined DecisionMaking
1
6
5
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I
0
0
0
0
0
0
0
W
0
0
0
0
0
0
0
25
0
2
7
9
7
0
0
Total
As at 31 March 2012
26%
9
0
1
1
3
4
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
9
1
0
0
1
0
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
34
0
0
0
0
0
0
0
C
Females
Approved Positions
15
and Specialists
0
Grand Total
Senior Management
0
0
Directors, and PEOs
Top Management
A
Temporary Employees
Occupational Levels
SALGA GAUTENG
Table 5
REPORT
329
330
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I
0
0
0
0
0
0
0
W
0
0
0
0
0
0
0
19
0
0
4
7
7
0
1
Total
As at 31 March 2012
41%
8
0
0
0
3
4
0
1
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
13
0
0
0
0
0
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
32
0
0
0
0
0
0
0
C
Females
Approved Positions
11
Grand Total
0
0
4
4
3
0
0
A
Temporary Employees
Assistants
and Specialists
Decision-Making
Senior Management
Specialists
Directors, and PEOs
Top Management
Occupational Levels
SALGA LIMPOPO
Table 6
REPORT
Specialists
Assistants
Decision-Making
0
5
3
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I
1
0
0
0
1
0
0
W
0
0
0
0
0
0
0
20
0
0
6
8
5
0
1
Total
As at 31 March 2012
35%
6
0
0
0
4
2
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
11
2
0
1
1
0
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
31
0
0
0
0
0
0
0
C
Females
Approved Positions
11
Specialists
0
Grand Total
Senior Management
1
0
Directors, and PEOs
Top Management
A
Temporary Employees
Occupational Levels
SALGA MPUMALANGA
Table 7
REPORT
331
332
Specialists
Assistants
Decision-Making
Decision-Making
0
3
4
2
1
0
0
0
1
0
0
0
0
0
0
0
0
0
I
0
0
0
0
0
0
0
W
0
0
0
0
0
0
0
19
0
0
6
7
6
0
0
Total
As at 31 March 2012
39%
8
0
0
3
2
3
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
12
0
0
0
0
0
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
31
1
0
0
1
0
0
0
C
Females
Approved Positions
9
and Specialists
Mid-Management
0
Grand Total
Senior Management
0
0
Directors, and PEOs
Top Management
A
Temporary Employees
Occupational Levels
SALGA NORTHERN CAPE
Table 8
REPORT
0
0
0
0
0
0
0
0
0
0
0
0
0
0
I
0
0
0
0
0
0
0
W
0
0
0
0
0
0
22
0
0
5
9
7
0
1
Total
As at 31 March 2012
29%
9
0
0
0
5
4
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
9
2
0
1
0
1
0
0
W
Males
Number of Vacancies
0
0
0
0
0
0
0
I
Foreign
Nationals
31
0
0
0
0
0
0
0
C
Females
Approved Positions
11
Grand Total
0
0
Decision-Making
4
4
2
0
1
A
Temporary Employees
Assistants
and Specialists
Mid-Management
Decision-Making
Senior Management
Coordinators, PA’s, Officers, and
Specialists
Directors, and PEOs
Top Management
Occupational Levels
SALGA NORTH WEST
Table 9
REPORT
333
334
Specialists
Assistants
Decision-Making
0
2
0
0
5
0
1
3
1
0
0
1
0
0
0
0
0
1
I
2
0
0
0
2
0
0
W
0
0
0
0
0
0
0
23
1
1
7
6
7
0
1
Total
As at 31 March 2012
32%
3
1
0
0
0
2
0
0
C
Vacancy Rate
0
0
0
0
0
0
0
A
Foreign
Nationals
11
5
0
3
1
1
0
0
W
Males
Number of Vacancies
1
0
0
0
1
0
0
I
Foreign
Nationals
34
4
1
1
2
0
0
0
C
Females
Approved Positions
2
Specialists
0
Grand Total
Senior Management
0
0
Directors, and PEOs
Top Management
A
Temporary Employees
Occupational Levels
SALGA WESTERN CAPE
Table 10
REPORT
REPORT
NEW APPOINTMENTS
A total of 75 positions were advertised both internally and externally. Different sources were used to identify suitably qualified
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 offices. Two
(2) employees with scarce and critical skills were retained into the system. The tables below show how SALGA in the financial
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
335
336
Programme
Manager,
Managers, and
Specialists
Advisors,
Consultants,
Practitioners,
Coordinators,
PAs, Officers, and
Specialists
Executive
Secretaries, and
Admin Assistants
Messengers,
Drivers, and
Cleaners
Senior
Management
Professionally
qualified and
experienced
specialists, and
mid-management
Skilled technical
and academically
qualified
workers, junior
management,
supervisors,
foremen, and
superintendents
Semi-skilled and
discretionary
decision-making
Unskilled and
defined decisionmaking
As at 31 March 2012
GRAND TOTAL
Directors,
Specialists
Top Management
SALGA
OCCUPATIONAL
CATEGORIES
CEO, COO,
CFO, Executive
Directors, and
PEOs
OCCUPATIONAL
LEVELS
NEW APPOINTMENTS
Table 12
17
0
6
5
5
1
0
A
1
0
1
0
0
0
0
C
0
0
0
0
0
0
0
I
FEMALES
1
0
1
0
0
0
0
W
0
0
0
0
0
0
0
FOREIGN
NATIONALS
19
0
8
5
5
1
0
SUB
TOTAL
FEMALES
9
2
2
2
2
0
1
A
4
0
0
4
0
0
0
C
0
0
0
0
0
0
0
I
MALES
0
0
0
0
0
0
0
W
0
0
0
0
0
0
0
FOREIGN
NATIONALS
13
2
2
6
2
0
1
SUB TOTAL
MALES
32
2
10
11
7
1
1
TOTAL
REPORT
REPORT
TERMINATIONS
During the 2011/12 financial 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 benefits. 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 five year fixed-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
337
REPORT
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 financial 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:
338
Messengers, Drivers, and
Cleaners
Unskilled and defined decision-making
66
66
3
7
30
25
1
0
A
4
4
0
0
1
2
1
0
C
I
3
3
0
0
0
2
0
1
Male
7
7
0
0
2
4
1
0
W
134
134
2
47
60
21
3
1
A
7
7
1
1
5
0
0
0
C
4
4
0
1
2
1
0
0
I
Female
14
14
0
5
5
3
1
0
W
0
0
0
0
0
0
0
0
Male
0
0
0
0
0
0
0
0
Female
Foreign Nationals
239
239
6
61
105
58
7
2
Total
From the table above, it can be deduced that training was offered equitably across all levels at SALGA. Much effort was put in the reporting period
to ensure that employees are skilled and developed.
GRAND TOTAL
Temporary employees
TOTAL PERMANENT
Executive Secretaries, and
Admin Assistants
Semi-skilled and discretionary decisionmaking
Programme Manager,
Managers, Specialists
Professionally qualified and
experienced specialists and midmanagement
Advisors, Consultants,
Practitioners, Coordinators,
PA’s, Officers, and Specialists
Senior management
Skilled technical and academically
qualified workers, junior management,
supervisors, foremen, and
superintendents
Directors, and PEOs
SALGA Occupational
Categories
Top management
Occupational Levels
ACCREDITED TRAINING
Table 15
REPORT
339
REPORT
The table below summarises the processes undertaken in training:
Table 16
The chart below summarises training implemented. The figures 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:
340
Table 17
REPORT
341
REPORT
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 significant 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 confirmation 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 filled positions over a period of three years. The table below is a plan summarising its numerical targets:
342
Table 18
REPORT
343
REPORT
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 office.
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
offices 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 office and
provincial offices through e-mail news bulletins. A memo on International Day against Drug and Illicit Trafficking 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 financial management to assist employees in basic
financial 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 office and provincial
offices 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.
344
REPORT
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 fitness session.
In relation to financial 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 offices were represented by at least five 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 office. The learners were
exposed to a number of directorates to showcase opportunities that the local government sector has for them.
345
REPORT
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 finance 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
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
346
ESTIMATED COST
REPORT
SICK LEAVE
PERIOD
DAYS TAKEN
NUMBER OF EMPLOYEES
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
ESTIMATED COST
347
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 beneficial to all parties concerned. It therefore structures the benefits
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.
348
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 financially 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.
349
We hereby acknowledge the valuable support and contributions received from the organisations and businesses listed below:
Alexander Forbes
Centre for Conflict Resolution
Der Deutsche Städtetag (German
DST Association of Cities)
Department of Cooperative Governance
Department of Environmental
Affairs
Development Bank of
South Africa
Duchame Consulting
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
350
Bonitas
Stats SA
CHAPTER 5
TRIPPLE BOTTOM LINE
This chapter details the developing philosophy of SALGA
of embracing ‘corporate citizenship’ in a sustainable way. It
highlights initiatives undertaken by SALGA offices countrywide
that aim to benefit not only the organisation and its workforce
but the broader communities in which SALGA operates as well
as the environment as a whole.
351
5.1 INTRODUCTION
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 profit.
The first 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 financial 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 reflected 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 first time including information regarding its sustainability and corporate citizenry efforts undertaken in the
period under review.
352
5.2 SALGA NATIONAL
In alignment with the commitment of SALGA to mitigate the impact of climate change, its new national office 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 Scientific and Industrial Research (CSIR) who assisted
the project team with integration of the Green Star SA objectives.
•
Commissioning initiatives ensuring optimum comfort and energy-efficient 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 flicker’ that may be associated with fluorescent lighting.
•
Office lighting that is practical and efficient 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 finishes 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-efficiency.
•
Energy sub-metering to facilitate the ongoing management of energy consumption.
•
The provision of artificial lighting with minimal energy consumption.
•
Greater flexibility 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.
353
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 certified 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.
354
5.3 SALGA PROVINCIAL OFFICES
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 efficiency: By ensuring that the office lights are switched off when no one is in.
355
5.4 MANDELA DAY 2011
Mandela Day is about creating a global movement for good. It recognises that positive change begins with small, selfless, 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 specific focus of Local Government of ‘Towards safe community recreational areas’.
356
SALGA NATIONAL
NELSON MANDELA DAY
Community Targeted
Under the theme: Take action, inspire change, make every day a Mandela Day!’, SALGA National and Provincial
offices 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
benefit
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
benefit?
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
figure 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 certificates were awarded by the CEO of SALGA, Mr
Xolile George
•
•
SALGA provincial offices 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.
357
Any ongoing involvement
beyond the specific
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 fight 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
358
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
SALGA EC identified the Old Age Home as its office 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:
community to benefit
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 conflict 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 benefit from family and community care and
•
Must be treated with respect and dignity.
359
SALGA EASTERN CAPE
NELSON MANDELA DAY
How did the
community benefit?
360
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
particular community to benefit
How did the community benefit?
Any ongoing involvement beyond
the specific event?
Bolokanang Home Based Care centre
This centre is in situated at Phase 3, which is one of the most remote and impoverished areas of
Mangaung.
Educational toys were distributed to enhance learning
Visit by the Community Development Unit
361
SALGA GAUTENG
NELSON MANDELA DAY
Community Targeted
Alexandra Township Community
benefit
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.
benefit?
The Gauteng office visited the centre to clean and cook for lunch. It also left all the cleaning
material used for the centre.
362
SALGA LIMPOPO
NELSON MANDELA DAY
Community Targeted
Germark Village, Blouberg Municipality in Capricorn
benefit
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.
benefit?
•
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
beyond the specific event?
In partnership with
No for this particular municipality
NEDBANK
OTHER INITIATIVES
Community Targeted
In partnership with
Giyani Municipality
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.
363
364
SALGA MPUMALANGA
NELSON MANDELA DAY
Community Targeted
Daantjie Community in Ward 29 of Mbombela Local Municipality
benefit
This is an area which has a high teenage pregnancy rate and poverty levels. The targeted preschool 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.
benefit?
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.
365
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
benefit
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 fire 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 identified 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.
benefit?
Different departments made demonstrations awareness and donations:
a) How to extinguish a fire
b) How to apply and receive Birth Certificates 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
•
City of Matlosana – Fire and Rescue Services
•
-
Capacity is done on a quarterly basis on how to use the fire extinguishers
-
Awareness is done on a quarterly basis on the dangers of paraffin and its safety
Department of Home Affairs
-
•
South African Social Security Agency (SASSA)
-
•
Screening of disabled and aged on different illnesses on quarterly basis
Department of Correctional Services
-
366
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
-
•
Assistance is offered on a continuous basis to check application and issuing of Identity
Documents and Birth Certificates
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
367
SALGA WESTERN CAPE
NELSON MANDELA DAY
Community Targeted
Ons Plek (Delivering a service in the Cape Town business district and surrounds)
benefit
Staff members agreed that the focus should be on needy children and Ons Plek is a shelter
for girl street children.
benefit?
Staff donated much needed toiletries and stationary.
In partnership with
368
SALGAplanned an event for the girls in November. Throughout the year, SALGA donated
clothes, non-perishable foods, and toiletries to the shelter.
Donations were all made by staff members.
NATIONAL OFFICE
Tel: (012) 369 8000 Fax: (012) 369 8001
291 Sprite Avenue
Menlyn Wood
1st Floor, Block B
Faerie Glen
Pretoria P.O. Box 2094
Pretoria 0001
EASTERN CAPE
Tel: (043) 727 1150 Fax: (043) 727 1156/67
First Floor, 3 Berea Terrace
Berea
East London 5214
PO Box 19511
East London 5214
FREE STATE
Tel: (051) 447 1960 Fax: (051) 430 8250
SALGA House
cnr. Nelson Mandela Drive & East Burger Str
Bloemfontein 9300
PO Box 14
Bloemfontein 9300
GAUTENG
Tel: (011) 276 1150 Fax: (011) 276 3636/7
3rd Floor Braampark
Forum 2, 33 Hoofd Street
Braamfontein 2017
PO Box 32161
Braamfontein 2017
KWAZULU NATAL
Tel: (031) 361 1236 Fax: (031) 361 1234
202 Transnet Building 3rd Floor Smith Street
Durban 4000
PO Box 1525
Durban 4000
LIMPOPO
Tel: (015) 291 1400 Fax: (015) 291 1414
127 Marshall Street
Polokwane 0699
Private Bag X 9523
Polokwane 0700
MPUMALANGA
Tel: (013) 752 1200 Fax: (013) 752 5595
Salga House 11 van Rensburg Street
Nelspruit 1200
PO Box 1693
Nelspruit 1200
NORTH WEST
Tel: (018) 462 5290 Fax: (018) 462 4662
Jade Square Suite 400
cnr OR Thambo & Margaretha Prinsloo Street
Klerksdorp
2570 PO Box 1286
Kerksdorp 2570
NORTHERN CAPE
Tel: (053) 833 2505 Fax: (053) 833 3828
Crescent House 1 & 2, D’Arcy Street, Kimberley, 8300
PO Box 3183
Kimberley 8300
WESTERN CAPE
Tel: (021) 469 9800 Fax: (021) 461 1936
SALGA Western Cape & Parliamentary Offices
11 Adderley Street
7th Floor
Cape Town 8000
PO Box 185
Cape Town 8000

Salga Annual Report.indd

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