Presentation Strat Plan APP Budget Annual Report - SN

Report
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www.salga.org.za
SESSION 3
CLOSED SESSION
Presentation Special Conference
10th September 2012
www.salga.org.za
SALGA Strategic Agenda 2012-2017
Annual Performance Plan 2012/13
and MTREF Budget Framework
Presented by SALGA Deputy Chairperson:
Councillor M Nawa
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www.salga.org.za
Strategic Plan 2012 - 2017
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www.salga.org.za
• 5-Year Plan
STRATEGIC
GOALS
AND
PRIORITIES
Strategic
Plan • Linked
to the term of office of the SALGA
2012 - 2017
NEC
Past
Future
Desired State
Annual
Milestones
Outcomes
Outputs
Current State
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www.salga.org.za
STRATEGIC PLANNING PROCESS
• SALGA as a Schedule 3A Public Entity is governed by the PFMA and related National
Treasury Regulations - read in conjunction with the Framework for Strategic Plans and
Annual Performance Plans set out the legal requirements for the SALGA 5-Year
Strategic Plan.
• The SALGA 5-Year Strategic Plan 2012-2017 sets out the new PEC / NEC strategic
agenda for the duration of their term of office.
Timeframes for submission and tabling of Strategic Plans and Annual Performance Plans
PUBLIC ENTITIES
31-Aug-11
Strategic
Plans (SP)
APP 2012/13
SALGA
submit 1st
Draft SP &
APP to
COGTA
27-Sep-11
29-Sep-11
COGTA
comments
finalised &
consolidated
Comments
on 1st Draft
SP & APP
sent to
Entities
31-Oct-11
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30-Nov-11
December
2011*
SALGA
submit 2nd
Draft SP &
APP to
COGTA
COGTA
comments
on 2nd Draft
SP & APP
finalised
9-Jan-12
31-Jan-12
SALGA submit
final Strategic
Comments on
and Annual
2nd Draft SP &
Performance
APP sent to
Plans to
SALGA
COGTA
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SALGA INSTITUTIONAL
JOURNEY 2007 - 2012
NEC REFLECTED ON THE LAST 10
YEARS OF SALGA’S EXISTENCE AND
DEVELOPED
New Leadership Mandate requires New
5 YEAR STRATEGY (2012-2017)
5 YEAR STRATEGY (2007 – 2012)
B/PLAN
2007/08
Making a difference by making
local government sustainable
2007
2008
2009
CONFERENCE
New Leadership
Members
Assembly
Members
Assembly
2010
2011
Members
CONFERENCE
Assembly New Leadership
2012
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STRATEGIC PLANNING PROCESS
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SALGA MANDATE
SALGA
Mandate
Transform
local
government
to enable it to
fulfil its
development
al mandate.
Lobby,
Advocate &
Represent
Lobby,
advocate,
protect and
represent the
interest of local
government at
relevant
structures and
platforms.
Employer
Body
Act as an
employer body
representing all
municipal
members and,
by agreement,
associate
members.
Capacity
Building
Build the capacity
of the
municipality as an
institution as well
as leadership and
technical capacity
of both
Councillors and
Officials.
Support &
Advice
Support and
advise our
members on a
range of
issues to
assist
effective
execution of
their
mandate.
The Voice of Local Government
Strategic
Profiling
Build the profile
and image of
local
government
within South
Africa as well as
outside the
country.
The Voice of Local Government
Knowledge &
Information
Sharing
Serve as the
custodian of local
government
intelligence and
the knowledge
hub and centre
of local
government
intelligence for
the sector.
www.salga.org.za
MEDIUM-TERM STRATEGIC
FRAMEWORK
MTSF 2010/11 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.
8 Sustainable human settlements and improved quality of household life.
9 Responsive, accountable, effective and efficient Local Government system.
10 Protect and enhance our environmental assets and natural resources.
11 Create a better South Africa, a better Africa and a better world.
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An efficient, effective and development orientated public service and an empowered, fair and
inclusive citizenship.
OUTCOMES
COGTA 10-POINT PLAN/ LGTAS
1
Improve the quantity and quality of municipal basic services to the people in the areas 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 IDP’s.
4 Deepen democracy through a refined Ward Committee model.
5 Build and strengthen the administrative, institutional and financial capabilities of municipalise.
6 Create a single window of coordination for support, monitoring and intervention in municipalities.
Uproot fraud, corruption, nepotism and all forms of maladministration affecting Local
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Government.
Develop a coherent and cohesive system of governance and a more equitable
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intergovernmental fiscal system.
9 Develop and strengthen a politically and administratively stable system of municipalities.
10 Restore the institutional integrity of municipalities.
SALGA 5-YEAR STRATEGIC PLAN 2012-2017
7 Vibrant, equitable, sustainable rural communities contributing towards food security for all.
Millennium Development Goals
MTSF
6 An efficient, competitive and responsive economic infrastructure network.
Delivery Agreement of Minister COGTA
5 Skilled and capable workforce to support an inclusive growth path.
2011 Local Government Election Manifestos
4 Decent employment through inclusive economic growth.
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SALGA’S APPROACH
TO STRATEGIC PLANNING
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Councilor
Support
Governance,
IGR and IR
Planning and
LED
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Financial and
Fiscal
Management
Labour Relations and
Human Resources
Management
www.salga.org.za
Transversal
Issues
Municipal Service Delivery
Represent:
7 X Goals:
• Lobby
• Advocate
• Policy Formulation
• Voice of LG
SALGA
National
Employer Body
• SALGBC
• LGSETA
Strategic Profiling
•Political and administrative
•Organizational
• LG information to inform
Representation lobby,
advocacy, support and
advice
• Research & best practices
Capacity Building
Knowledge Hub:
Org
Capacity
Risk
O-PMS
Support and Advice:
• Frameworks/ Guidelines
• Peer Learning &
• Build Capacity & HRM
• Alternative Service
Delivery
• Benchmarking
APP
SALGA
Provinces
Budget
I-PMS
Annual Report
3 X APEX Priorities:
1. Review of the legislative and policy
framework.
2. Review of LG fiscal and financial
management framework.
3. Improved municipal capacity.
Underlying Philosophy:
Differentiated Approach
1)Accessible, equitable,
sustainable service
delivery by LG.
2)Safe and healthy
environment and
communities.
3)Planning and
economic
development at local
level.
4)Effective, responsive
and accountable local
governance for
communities.
5)Human capital
development in LG
6)Financially and
organizationally
capacitated
municipalities.
7)Effective and efficient
SALGA administration
www.salga.org.za
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2
3
4
5
6
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3 APEX Priorities
7 Goals
6 STRATEGIC GOALS
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STRATEGIC GOALS AND PRIORITIES
2012 - 2017
GOALS
1. LG delivering equitable and sustainable services
2. Safe and healthy environment and communities
3. Coherent Planning and Socio-economic development at the local level
4. Effective and responsive LG accountable to communities
5. Human Capital development in local government
6. Financial and organisationally capacitated municipalities
7. An effective and efficient administration
APEX PRIORITIES
1. Fiscal and Financial Management
2. Legislative and Policy Review
3. Municipal Capacity Building
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CONCLUSION
• The new 2012-17 Strategy and its accompanying structured
engagement and support initiatives gives SALGA an
opportunity to strengthen our relationship with existing
stakeholders as well as to build new ones to play our role
effectively.
• We firmly believe that if the 3 Apex Priorities as identified are
addressed, we would have gone some way to meeting the
objectives of developmental LG.
• The next 5 years will be critical to securing the long-term
sustainability and credibility of LG – SALGA must lead in
realising the constitutional imperative of developmental LG.
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CONCLUSION
SALGA will champion and contribute to the achievement of
these goals in the following manner:
• Deliver on its mandate through a set of strategic objectives
and KPA’s that aim at contributing to goal achievement.
• Implement structured partnerships (through its IGR strategy
and stakeholder management strategy) that contribute to
delivery against the goals
• Contribute to initiatives led by other stakeholders that focus
on the SALGA goals.
• Monitor the sector in terms of progress that is being
achieved against these goals
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Annual Performance Plan
2012/13
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SALGA PERFORMANCE REPORTING FRAMEWORK
Year 1
Year 2
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Year 3
Year 4
Year 5
Year 4
Year 5
5-Years
Strategic Plan
STRATEGIC GOALS AND PRIORITIES
2012 - 2017
Annual Performance Plan
Year 1
2012/13
2013/14
Year 3
Quarterly Reporting
Q1 + Q2 + Q3 + Q4 =
Annual Report
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BUILDING ON KEY SUCCESSES
•
•
•
•
•
•
Regional Electricity Distributors (REDS)
Some devolution of housing function
Restructuring of municipalities
Support in managing transition period relating to LG elections
CoP 17 (LG Climate Change Programme)
Systems Amendment Act and Regulations for minimum
competencies for senior managers
• Local Business Tax
• Review of the Local Government equitable share formula
• Local Government Week in Parliament
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DETERMINING AND ADVOCATING FOR
A POLICY AGENDA FOR LG
• Informed by Ruling Party Policy and Elective Conferences in
2012 and discussion documents:
– Many policy decisions will have profound impact on LG. It
was therefore critical that its representative voice be heard
during critical policy shaping process in order to ensure
sustainability and integrity of LG.
– SALGA (as a vanguard for its members) thus prepared a
policy response to the issues of interest to LG.
– NEC of SALGA hosted a Policy Workshop in June 2012 to
discuss the formal SALGA positions which was presented to
the Ruling Party as organised LG’s views on the key issues.
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SALGA EMERGING
POLICY AGENDA
Key Policy Issues include:
• Differentiated approach to municipal planning, financing and support;
– A policy and regulatory framework on differentiation must be adopted
by government.
– Increase the share of nationally raised revenue to LG and review the
LGES formula.
– Further devolution of functions to metropolitan municipalities.
– Infrastructure funding for cities and rural municipalities.
– Explore new revenue raising powers for some municipalities.
– Creating a new type of category A municipalities
• Demarcation issues;
• Strengthen political governance of municipalities;
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SALGA EMERGING
POLICY AGENDA
• Review of the two-tier LG system;
– Reform the Role of Districts
– Stronger category B municipalities be removed completely from
Districts Municipalities.
– Districts must focus only on strengthening coordination, planning and
support function.
– A clear model for funding Districts Municipalities must be developed.
• Improve Ward Committees and Community Participation;
• Strengthen Cooperative Governance, including role of provinces;
• Carefully examine the implications of a proposal for single elections;
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MTREF Budget Framework
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Budget Parameters
R thousand
Budget Parameters
Administrative Costs Growth Rate - Consumer Price Index (CPI)
Employee Costs Growth Rate - Consumer Price Index (CPI plus 100 basis points)
Operating Expenditure
Membership Levies (Proposed formula)
Membership Levies (Current formula)
Membership Levy Formula (proposed)
Metropolitan Municipalities
Local and District Municipalities
Medium-term estimate
2012/13
2013/14
2014/15
5.4%
5.6%
5.4%
6.4%
6.6%
6.4%
363 803
396 489
418 122
R 302 527
352 757
395 485
R 259 518
-
R 9.8 mil
0.8% of
annual
salary
budget with
a minimum
of R400,000
Membership Levy Formula (outer years proposal)
Local and District Municipalities
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R 10.2 mil
R 10.6 mil
0.8% of
0.9% of
1% of
annual
annual
annual
salary
salary
salary
budget with budget with budget with
a minimum a minimum a minimum
of R400,000 of R450,000 of R500,000
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Budget Parameters Overview
Membership levy review
• The matter of the levy formula review was also tabled at
Conference, although the membership approved the review
for 2011/2012, Conference referred the matter of the outer
years to NEC and PEC’s for consideration.
• Therefore, the budget for the MTEF period 2012/13 to
2014/15 contains the review of the membership levy
formula as depicted on the table above.
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Programme Costs per Strategic Goal
SUMMARY OF PROGRAMME SPENDING SALGA'S 7 GOALS
GOAL 1 - Accessible, equitable and sustainable municipal services delivered by
local government
2012/2013
Financial Year
8 518 203
GOAL 2 - Safe and healthy environment and communities
8 522 095
GOAL 3 - Planning and economic development at a local level
9 571 699
GOAL 4 - Effective, responsive and accountable local governance for communities
37 738 641
GOAL 5 - Human capital development in local government
11 982 450
GOAL 6 - Financially and organisationally capacitated municipalities
3 763 270
GOAL 7 - Effective and efficient administration
10 551 277
Total
90 647 634
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It is recommended that Conference:
• Adopt the SALGA Strategic Plan 2012-17 as approved by NEC
• Adopt the SALGA APP 2012/13 as approved by NEC
• Adopt the SALGA budget for 2012/2013 as approved by NEC
• Adopt the adjustment budget for 2011/2012 financial year as
approved by NEC
• Adopt the membership levy formula for 2013/14 and 2014/15
subject to consultation with PECs and approval by NEC
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SALGA Annual Report 2011/12 and
Audited Financial Statements
Presented by SALGA Deputy Chairperson:
Councillor N Sihlwayi
www.salga.org.za
Annual Report
2011/12
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SALGA Strategy: 2007-2012 (Revised in 2009 – Post National & Provincial Elections)
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MDG’s & other Global Imperatives
SALGA’S
MANDATE
SALGA CONSTITUTION
1. Employer Role
2. Representative Role
3. Support and Advisory Role
4. Profiling Role
SALGA 5 YEAR STRATEGIC
PLAN 2007-2012
5YLGSA (2006-2011)
MTSF 2009-2014
COGTA 10-POINT PLAN & LGTAS
SALGA CHANGE AGENDA
1 Improve SALGA’s capacity to support and advise its members.
2 Improve SALGA’s capacity to engage with stakeholders, lobby
and advocate them on issues in the interest of member
municipalities
3 Improve SALGA’s capacity to effectively represent members as the employer
4 Enhance and maintain a high profile position nationally, regionally and
internationally.
5 SALGA’s corporate governance and internal functioning.
SALGA 10 PRIORITY OUTCOMES
2010-2012
1. Councillor Support: High calibre, professional and effective Local
Government political leadership.
6. Sound financial management and governance system: Improved
financial management and financial viability of municipalities.
2. Service DELIVERY: Improved access to municipal services and
enhanced provision of FBS, through effective operations management
and service maintenance.
7. Stable Municipal Governance: Stable Municipal Governance.
3. Social Cohesion: Transversal (gender, youth, children, HIV/AIDS)
socio-economic issues mainstreamed.
8. Capacity Building and Institutional Development: Enhanced skills
and organisational systems and structures of municipalities towards
improved service DELIVERY.
4. Economic Development: Municipalities drive growth and
employment creation, both in urban and rural areas.
9. Reform Organised Local Government: A more effective, responsive
and financially viable SALGA.
5. Labour Relations: A productive, stable labour environment,
supported by a mutual gains approach.
10. Climate Change response measures at municipal level: Integrated
climate change responses in development planning and management.
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YEAR-ON-YEAR PERFORMANCE
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PERFORMANCE AGAINST APP 2011/12
SALGA achieved
84% of predetermined
objectives as per
the APP 2011/12.
The 16% of targets
not achieved was
mainly due to a lack
in resources and
budgetary
constraints.
www.salga.org.za
Audited Financial
Statements
2011/12
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SALGA’s 3-YEAR AUDIT
OUTCOMES
2009/2010
Financial year
2010/2011
Financial year
2011/2012
Financial year
Unqualified audit
opinion
Unqualified audit
opinion
Unqualified audit
opinion
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SALGA has consistently put in place corrective measures over the three (3) years to improve the internal control environment. A
summary of the improvement on “Matters of Emphasis” as previously reported is tabulated below:
The progress is rated based on the sections of the audit report viz. (i) Report on Financial statements; (ii) Report on other legal and
regulatory requirements (Performance information); and (iii) Compliance with laws and regulations.
(i)
Financial Statements
Financial Year
Number of “Emphasis of
Matter” items previously
reported
2011/2012
1
2010/2011
4
2009/2010
3
Percentage
improvement from
prior year
Indicator on status of
improvement in internal
control environment
2011/2012
75%
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The remaining “matter of emphasis” in the 2011/2012 financial year relates to significant uncertainties as a result of litigation matters
disclosed under contingent liabilities in note 30 to the annual financial statements, as SALGA is a defendant in two litigation matters
where the outcome of the court decision is unknown.
(i)
Performance Information
Financial Year
Number of “Findings”
previously reported
2011/2012
1
2010/2011
2
2009/2010
3
Percentage
improvement from
prior year
Indicator on status of
improvement in internal
control environment
2011/2012
50%
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The remaining “finding” in the 2011/2012 financial year relates to material adjustment to the annual performance report.
(i)
Compliance with laws and regulations
Financial Year
Number of items of “Noncompliance” previously
reported
2011/2012
4
2010/2011
7
2009/2010
1
Percentage
improvement from
prior year
Indicator on status of
improvement in internal
control environment
2011/2012
43%
The remaining aspects of non-compliance are a carry-over from the prior year as the corrective measures implemented did not cover the
rest of the financial year. These primarily relate to SCM mattes in regard to our requests for quotation (RFQ) not containing the
adjudication criteria for purchases between R30,000 and R500,000 for the first quarter of the financial year, thereby rendering the
expenditure irregular.
A summary action plan covering matters affecting the audit report is attached, hereto, as annexure A
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PLAN TO IMPLEMENT CONTROLS TO ADDRESS AG’S FINDINGS – RTM 2011/12
Process
A)
Audit Finding
Recommendations
Measures to implement in
addressing the issues
Responsibl
e Executive
Implementati
on date
Status as at 31 Jul
2012
MATTERS AFFECTING THE AUDIT REPORT
Compliance
Non
compliance
with SALGA should ensure that all deviations are properly
Practice Note 6 of 2007
motivated and proof of this should be maintained.
SALGA should ensure full compliance with legislative
requirements, in that the relevant parties should be
informed of goods or services procured in terms of
Treasury Regulations 16A6.4 within the required period.
Ensure full compliance with CFO/SCM
legislative requirements and all
deviations to be motivated
appropriately and proof to be
maintained.
Immediate
31 July 2012
All non-competitive
deviations are
rejected. SCM Policy
review
is underway.
Compliance
Non
compliance
PPPFA
Ensure that the request for CFO/SCM
quotation (RFQ) includes the
preferential
point
scoring
criteria.
Immediate
31 July 2012
Done. The RFQ have
been updated to
include the
adjudication criteria.
Also the checklist
have been updated to
ensure that all SBD’s
are part of the
payment packs,
specifically SBD 6.1.
Related Party
Related Party disclosure Management should revisit their internal control system Improve internal controls and CFO/AP/
complete and inaccurate
pertaining to related parties to ensure that related parties ensure that related party AR
and related party transactions are timeously identified.
transactions will be identified
timeously.
Immediate
31 July 2012
Policy review is
underway previously
aligned to IAS 24,
now
to IPSAS 20 since the
GRAP equivalent is
not yet effected.
with Management should ensure that the request for
quotations includes the preferential point scoring system
as required by section 51(1)(a)(iii) of the PFMA and
section 2(1)(e) of the PPPFA and should include the
evaluation criteria.
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CHALLENGES
• 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.
• 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.
In terms of planning and budgeting reporting, SALGA KZN is now part of the
SALGA Strategic Plan 2012-2017 and Annual Performance Plan 2012/13.
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CHALLENGES
• A formidable challenge is that the budget of SALGA is
inadequate to fulfil 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.
• 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.
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It is recommended that Conference:
• Adopt the SALGA Annual Report 2012/13 as approved by NEC
• Adopt the SALGA Annual Financial Statements 2012/13 as
approved by NEC
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THE END
THANK YOU
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