Salga Annual Report.Indd

Contents

CHAPTER 1: INTRODUCTION CHAPTER 4: CORPORATE GOVERNANCE AND Glossary of terms 2 HUMAN RESOURCE OVERSIGHT REPORT 1.1 Foreword by Chairperson of SALGA 4 4.1 Introduction 284 1.2 Overview from the Chief Executive Offi cer 6 4.2 Business planning and performance information 285 1.3 Financial results overview 9 4.3 SALGA’s legislative compliance framework 288 1.4 SALGA Mandate 10 4.4 Budgeting policy 290 1.5 SALGA revised fi ve-year strategy 2007-2012 11 4.5 Audit Committee 294 1.6 Organisational structure 16 4.6 Internal Audit 295 1.7 SALGA leadership 17 4.7 Risk Management 296 4.8 Individual performance management 297 CHAPTER 2: ORGANISATIONAL PERFORMANCE 4.9 SALGA governance structures 305 4.10 HR oversight report 324 2.1 Introduction 24 4.11 Stakeholder relations 348 2.2 Overview of performance against pre- 27 determined objectives for period 1 April 2011 CHAPTER 5: TRIPLE BOTTOM LINE - 31 March 2012 2.3 Performance information 31 5.1 Introduction 352 2.3.1 SALGA Change Agenda: 5.2 SALGA National Offi ce 353 Achievements and challenges 36 5.3 SALGA Provincial Offi ces 355 2.3.2 10-Priority Outcomes: 5.4 Mandela Day 2011 356 Achievements and challenges: Priority Objective 1 41 Priority Objective 2 43 Priority Objective 3 52 Priority Objective 4 64 Priority Objective 5 73 Priority Objective 6 77 Priority Objective 7 82 Priority Objective 8 86 Priority Objective 9 103 Priority Objective 10 104

CHAPTER 3: FINANCIAL OVERVIEW AND ANNUAL FINANCIAL STATEMENTS 3.1 Report of the Chief Finance Ofﬁ cer 108 3.2 Report of the Audit Committee 121 3.3 Report of the Auditor General 124 3.4 Report of the Accounting Authority 128 3.5 Financial statement 136 3.6 Statements of gifts, donations, and sponsorships 205 3.7 Performance information tables 211

SALGA Annual Report | 2011/12 01 Glossary of Terms

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

02 SALGA Annual Report | 2011/12 Chapter 1

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

SALGA Annual Report | 2011/12 03 1.1 FOREWORD BY SALGA CHAIRPERSON

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

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

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

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

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

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

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

04 SALGA Annual Report | 2011/12 1.1 FOREWORD BY SALGA CHAIRPERSON

Chairperson’s Acknowledgements

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

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

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

CLLR THABO MANYONI SALGA CHAIRPERSON

SALGA Annual Report | 2011/12 05 1.2 OVERVIEW BY THE CEO

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

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

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

1. Review of the legislative and policy framework

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

3. Improved Municipal capacity

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

Some of our highlights for the year include:

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

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

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

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

06 SALGA Annual Report | 2011/12 1.2 OVERVIEW BY THE CEO

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

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

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

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

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

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

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

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

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

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

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

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

Acknowledgements

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

SALGA Annual Report | 2011/12 07 1.2 OVERVIEW BY THE CEO

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

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

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

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

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

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

XOLILE GEORGE CHIEF EXECUTIVE OFFICER

08 SALGA Annual Report | 2011/12 1.3 FINANCIAL RESULTS OVERVIEW

______

Nceba Mqoqi NCEBA MQOQI Chief Finance Ofﬁ cer CHIEF FINANCIAL OFFICER

Figures in Rand 2012 2011

Financial indicators Membership levy revenue 217 872 595 145 888 126 Government grant - National Department of CoGTA (Executive Authority) 25 486 000 49 125 000 Other government grants recognised 3 394 176 4 698 924 Government grant - Free State Provincial Department of CoGTA 214 086 3 665 591 Government grant - Gauteng Department of Local Government & Housing 333 333 333 333 Government grant - Eastern Cape Dept. of Local Government & Housing 1 190 065 - Department of Environmental Affairs 300 000 700 000 Government grant - National Treasury 1 356 692 - Sponsorships and donations received 12 786 123 6 003 160 Donor funding income recognised 20 392 828 15 179 155

Key ﬁ nancial ratios 2012 2011 Membership levy contribution (%) 75.0% 63.2% Government grants contribution (%) 8.7% 21.3% Other grants contribution (%) 4.4% 2.0% Sponsorship and donations contribution (%) 4.4% 2.6% Donor funding contribution (%) 3.7% 6.6% Other income contribution (%) 3.8% 4.4% Current ratio 80.2% 54.4% Solvency ratio 116% 96% Asset coverage rate (times) 11 (7)

SALGA Annual Report | 2011/12 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 ofﬁ ces. The mandate of the organisation rests on ﬁ ve (5) primary pillars:

Lobby, SALGA Advocate, and Strategic Knowledge Capacity Support MANDATE Represent Profiling Sharing Building and Advice

Transform Lobby, advo- Refers to SALGA as Refers to the Support and local govern- cate, protect, building the custodian of role of SALGA advise our ment to and represent profile and local govern- to build the members on a enable it to the interests of image of local ment intelli- capacity of range of issues fulfil its local govern- government gence and the Councillors to assist in the developmen- ment at within South knowledge and the effective tal mandate. relevant Africa as well hub for the bespoke skills execution of structures and as outside sector. required within their platforms. the country. the sector. mandates.

THE VOICE OF LOCAL GOVERNMENT

1.5.1 Mission, vision, and values

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

Mission: Mission: “To be consultative, informed, “To be consultative, informed, mandated, credible, and accountable mandated, credible, and accountable to to our membership, and to provide value for money.” our membership, and to provide value for money.” Values: Values: Our values are as follows: Our values are as follows: • Responsive Responsive, Innovative, Dynamic • Innovative Excellence • Dynamic • Excellence

10 SALGA Annual Report | 2011/12 1.5 SALGA REVISED FIVE-YEAR STRATEGY 2007-2012

The point of departure for SALGA is to strengthen the local Implementation of the fi ve-year strategic plan fi nds expression sphere of government in delivering a developmental agenda in the annual business plans. These aim to build its capacity that is aligned to national strategic priorities. SALGA is also to engage with its membership and the national and provincial focused on reinforcing the work of the national and provincial spheres of government. This engagement takes place on spheres of government. The eradication of poverty and policy-formulation in areas that affect developmental local unemployment, along with the stimulation of growth lies at the government. In 2009/10, SALGA consolidated its change heart of the mandate of local government. As the front-line of agenda by building its capacity to synthesise national and service delivery, local government also plays a pivotal role in provincial trends and plans and policies into accessible, consolidating and deepening democracy at a grassroots level. understandable knowledge products able to assist municipalities in developing and implementing their own The SALGA strategic plan is made up of two components: the policies in the national, continental, and global context. internal change agenda focused on improving the capacity of the organisation to better perform its functions; and the Subsequent to the national and provincial government elections external change agenda focused on the contribution of in 2009 and 2010, Cabinet approved the comprehensive Local SALGA to the governance and service delivery environment in Government Turn-Around Strategy (LGTAS). The Department accordance with its mandate. of Cooperative Governance and Traditional Affairs (CoGTA) formulated this strategy on 2 December 2009. In January In 2006/7, SALGA initiated a change agenda that leveraged 2010, Cabinet identifi ed and prioritised 12 outcomes for the on the successes gained and challenges presented since its remaining years of the Medium-Term Strategic Framework inception. The SALGA Five-Year Strategic Plan (2007 to 2012) (MTSF): was developed in order to facilitate the rigorous and systematic roll-out of the change agenda.

OUTCOMES 1 Quality basic education. 2 A long and healthy life for all South Africans. 3 All people in South Africa are and feel safe. 4 Decent employment through inclusive economic growth. 5 A skilled and capable workforce to support an inclusive growth path. 6 An effi cient, competitive, and responsive economic infrastructure network. MTSF 7 Vibrant, equitable, and sustainable rural communities contributing towards food security for all. 8 Sustainable human settlements and improved quality of life for all households. 9 Responsive, accountable, effective, and effi cient local government. 10 Protect and enhance our environmental assets and natural resources. 11 Create a better South Africa, a better Africa, and a better world. 12 An effi cient, effective, and development-oriented public service and an empowered, fair, and inclusive citizenship.

While local government is committed to contributing towards the January 2010 Lekgotla. The plan seeks to reinforce and the achievement of all outcomes (particularly outcomes 4, 6, support the implementation of the LGTAS and comprises 10 7, 8, and 10), outcome 9 is speciﬁ cally applicable to local local government outputs and 44 corresponding performance government. This outcome is underpinned by the Local indicators. Government Ten (10) Point Plan as presented to Cabinet at

SALGA Annual Report | 2011/12 11 1.5 SALGA REVISED FIVE-YEAR STRATEGY 2007-2012

OUTCOMES Improve the quantity and quality of municipal basic services to the people in terms of access to water, sanitation, 1 electricity, waste-management, roads and disaster-management. 2 Enhance the municipal contribution to job-creation and sustainable livelihoods through LED. 3 Ensure the development and adoption of reliable and credible IDPs. 4 Deepen democracy through a refi ned Ward Committee model. 5 Build and strengthen the administrative, institutional and fi nancial capabilities of municipalities. 6 Create a single window of co-ordination for support, monitoring and intervention in municipalities. 7 Eradicate fraud, corruption, nepotism and all forms of maladministration affecting local government. 8 Develop a coherent and cohesive system of governance, with a more equitable intergovernmental fi scal system. CoGTA 10-POINT PLAN/ LGTAS CoGTA 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 mid- outputs having the largest infl uence on the overall outcome. point of the fi ve-year strategic plan of SALGA, which brought a new electoral mandate and profound changes in the local At its national conference in April 2007, SALGA identifi ed and government environment it was deemed imperative that developed ten strategic objectives for the period July 2007 to SALGA revise the priorities contained in its original fi ve-year March 2012. These objectives comprised two groups: strategic plan. the fi rst group of fi ve strategic objectives gives expression In conjunction with this process, SALGA took the decision to the internal change agenda of SALGA in order to enable to align its planning methodology with the outcomes-based more effective delivery of its mandate and the addressing approach of the Presidency. This was deemed necessary of corporate governance problems inherited from preceding in order to ensure that SALGA remains relevant by aligning years; its planning practices with key stakeholders in the local the second group of fi ve strategic objectives embodies the government sector. The outcomes-based methodology for core activities of the organisation and represents resolutions strategic and business planning is a departure from the from the national conference. The latter key performance traditional input-output model where targets are set only at the areas (KPAs) are designed to support the objectives of the output level and are based on fi xed inputs. In the outcomes- 5-Year Local Government Strategic Agenda (5-YLGSA), a based approach to planning, outcomes are at the epicentre focus previously missing in the organisation. of the planning process. These are distilled into the priority

The SALGA 10 core strategic objectives: THE SALGA CHANGE AGENDA STRATEGIC OBJECTIVES THE SALGA 5-YLGSA-ALIGNED STRATEGIC OBJECTIVES • Improve the capacity of SALGA to support and advise its • To contribute to municipal transformation and members. organisational development. • Improve the capacity of SALGA to engage with • To contribute to the effective and sustainable stakeholders and to lobby and advocate them on issues delivery of municipal services. in the interests of member-municipalities. • To contribute to the stimulation of local economies • Improve the capacity of SALGA to effectively represent and poverty alleviation. members as the employer. • To contribute to the strengthening of municipal • Enhance and maintain a high proﬁ le locally, regionally, ﬁ nancial capacity. and internationally. • To contribute to good governance and public • Improve the corporate governance and internal participation in municipalities. functioning of SALGA.

12 SALGA Annual Report | 2011/12 1.5 SALGA REVISED FIVE-YEAR STRATEGY 2007-2012

Informed by the Medium-Term Strategic Framework (MTSF) where resource constraints are a considerable challenge. for 2009-14, the Millennium Development Goals (MDGs) SALGA will be better positioned to more effectively respond and the Local Government Turnaround Strategy (LGTAS), to the opportunities, challenges, and imperatives with which SALGA contextualised and incorporated these government local government will grapple. These changes will also allow priorities and their relevance to local government into its own the organisation to effectively play its role in co-operative mandated objectives, forming 10 Priority Outcomes. These governance and in fostering effective partnerships with 10 strategic outcomes replace the 5-YLGSA priorities, in stakeholders in the local government sector, including other much the same way as COGTA replaced the 5-YLGSA with spheres of government. the LGTAS. The SALGA Change Agenda (Five Objectives) and SALGA Priority Outcomes (10 Outcomes) now become the Having laid the strategic foundation to represent, support, and central components of the revised SALGA Five-Year Strategic advise local government, the 2011/12 annual performance Plan (2007-2012), underpinning all future national business plan gave expression to the ambition of SALGA to play a plans, including those for 2011/12. The amended ﬁ ve-year decisive role in policy discourse. This is done to provide the strategic plan of SALGA will provide a keen focus for its work necessary conditions for local government to effectively deliver as the organisation establishes a niche in a congested space on its constitutional mandate.

THE REVISED STRATEGIC PRIORITIES OF SALGA:

5YLGSA

SALGA CONSTITUTION SALGA’S 1. Employer Role SALGA 5 YEAR MTSF 2009 - 2014 MANDATE 2. Representative Role STRATEGIC PLAN 3. Advisory Role 2007-2012 MDG’s 4. Profiling Role

COGTA 10 POINT PLAN

SALGA CHANGE AGENDA

1. Improve SALGA’s ability to support and advise its 3. Improve SALGA’s ability to effectively represent members. members as an employer. 2. Improve SALGA’s ability to engage with stakeholders, 4. Enhance and mantain a high profile position nationally, lobby and advocate them on issues in the interest of regionally and internationally. member municipalities. 5. SALGA’s corporate gorvenance and internal functioning

SALGA PRIORITY OUTCOMES 2010 - 2012

SALGA Annual Report | 2011/12 13 1.5 SALGA REVISED FIVE-YEAR STRATEGY 2007-2012

SALGA PRIORITY OUTCOMES 2010 - 2012

1. Councillor Support: High calibre, professional and 7. Stable Municipal governance: Stability, transparancy effective Local Government political leadership and accountability in municipal governance.

2. Service Delivery: Improved access to municipal 8. Capacity Building and Institutional Development: services and enhanced provision of FBS. 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. 4. Economic Development: Municipalities drive growth and employment creation both in urban and rural 10. Climate Change Response Measures at Municipal areas. Level: Intergrated climate change response in development planning & mangement. 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 SALGA Annual Report | 2011/12 1.5 SALGA REVISED FIVE-YEAR STRATEGY 2007-2012

STRATEGIC EVALUATION:

STRATEGIC OBJECTIVE STRATEGIC OBJECTIVE 1 Improve SALGA’s capacity to support and 1 Improve SALGA’s capacity to support and advise its members advise its members 2 I mprove SALGA’s capacity to engage with 2 Improve SALGA’s capacity to engage with stakeholders, lobby and advocate them on stakeholders, lobby and advocate them on issues in the interest of member municipalities. issues in the interest of member municipalities. 3 Improve SALGA’s capacity to effectively 3 Improve SALGA’s capacity to effectively represent members as the employer represent members as the employer 4 Enhance and mantain a high profile position 4 Enhance and mantain a high profile position

CHANGE AGENDA locally, regionally and internationally. CHANGE AGENDA locally, regionally and internationally. 5 SALGA’s corporate governance and internal 5 SALGA’s corporate governance and internal functioning. functioning.

STRATEGIC OBJECTIVE PRIORITY OUTCOME 1 To contribute to municipal transformation and 1 Councillor Support organisational development. 2 Service Delivery 2 To contribute to the effective and sustainable 3 Social Cohesion Members Assembly 2008 Members Assembly 2009 Members Assembly 2010 National Conference 2007 delivery of municipal services. 4 Economic Development 3 To contribute to the stimulation of local 5 Labour Relations economies and poverty elleviation 6 Sound Financial Management &

SYLGSA 4 To contribute to the strengthening of municipal Governance System financial capacity. 7 Stable Municipal Governance 5 To contribute to good governance and public 8 Capacity Building and Institutional participation in municipalities. Development

PRIORITY OUTCOMES 9 Reforming Organised Local Governance 10 Climate Change Response Measures at Municipal Level Assembly/Conference Resolutions

2007 2008 2009 2010 2011 National Members Members Members National Conference Assembly Assembly Assembly Conference

Priorities for 2007/08 Priorities for 2009/10 Priorities for 2010/11 Priorities for 2011/12

1. Climate Change 1. Climate Change 1. Councillor Support 1. Councillor Support 2. Advocacy and Lobby 2. Lobbying and Advocacy on all 2. Capacity Building and Institutional 2. Capacity Building 3. Capacity Building relevant policies and legislation Development 3. Municipal Finance and 4. Good Governance 3. Human Development Strategy 3. Sound Financial Management & Governance 5. Sound Financial 4. Consolidating SALGA’s Internal Governance 4. SALGA Governance Framework Management Change Agenda 4. Municipal Governance 5. Labour relations -Represent/ 6. FIFA World Cup 2010 5. Councillor Support 5. Labour Relations Support/Advice 7. Poverty Eradication 6. Municipal Human Resource 6. Reforming Organised local 6. Represent Members: Management Government Advocacy and Lobbying 7. Profiling Local Government 7. Service Delivery 7. Knowledge Sharing 8. Stimulating Local Economies 8. Social Cohesion 8. Marketing and Communication 9. Economic Development 10. Climate Change

SALGA Annual Report | 2011/12 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

Economic Governance, Municipal Municipal Community Development Strategy, Finance and IGR, and Institutional Infrastructure Development Provincial Offices and Policy, and Corporate International Development and Services Management Research Services Relations Planning

Eastern Cape • International • Collective • Solid-waste • Human • Development • Research • Financial relations and bargaining management development management • Policy planning and Western Cape protocol and labour • Water and • Safety and planning development control • Inter- relations sanitation security • Economic and analysis • Asset- Northern Cape governmental • Municipal • Electricity • Health development • Strategy, management North West relations human and energy • Social (ICT, ASGISA, business and reporting • Advocacy resources • Transportation cohesion and IDPs, PGDS, planning, and systems Limpopo and lobbying support and roads city diplomacy NSPS, EPWP) organisational • Supply-chain • Governance • Skills • Climate • Disaster • Local performance management Mpumalanga support development change and management government • Knowledge • Human • Parliamentary and capacity- environmental • Special finance hub and resources Gauteng affairs and building management programmes • Municipal management • Administration Free State research • Single public support mainstreaming entity • Monitoring • Information • 5-YLGSA service • Sustainable (youth, gender, oversight and and KwaZulu-Natal coordination • Local human HIV, etc.) • P3 country evaluation communication government settlement project • Stakeholder technology transformation management relations • Travel coordination and management

16 SALGA Annual Report | 2011/12 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 PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012 1 MARCH 2011 UNTIL 18 MAY 2011 Name Designation Name Municipality New/ Re-elected Cllr M Sigabi Chairperson Cllr Nomakhosazana Meth OR Tambo District Municipality Re-elected Cllr M Mvoko Deputy-Chairperson Cllr Deon De Vos Cacadu District Municipality New Cllr Sihlwayi Deputy-Chairperson Cllr Zukiswa Ncita Buffalo City Metro New Cllr D Matika Deputy-Chairperson Cllr Mxolisi Koyo Chris Hani District Municipality New Cllr W Tikana Additional Members Cllr Maria Hermans Nelson Mandela Bay Metro Re-elected Cllr GG Mpumza Additional Members Cllr Nomfundo Mabunu Gariep Local Municipality Re-elected Cllr C Williams Additional Members Cllr Makhaya Twabu Alfred Nzo District Municipality New Cllr N Meth Additional Members Cllr Nomasikizi Konza Amatole District Municipality New Cllr N Mabunu Additional Members Cllr Vukile Balura Cacadu District Municipality New Cllr SV Stuurman Additional Members Cllr Thandekile Sabisa Mhlontlo Local Municipality New Cllr Zanoxolo Wayile Nelson Mandela Bay Metro New Cllr Nozibele. Makanda Chris Hani District Municipality New Cllr Luleka Simon Nelson Mandela Bay Metro New

SALGA Annual Report | 2011/12 17 1.7 SALGA Leadership

SALGA FREE STATE

PEC FROM PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012 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 Stoﬁ le Matjhabeng Local Municipality New Cllr M Moshodi Additional Member Cllr. Jihad Mohapi Moqhaka Local Municipality Re-elected Cllr S Mbalo Additional Member Cllr. Nthabiseng Mokotjo Mangaung Metro Municipality Re-elected Cllr T Khalipha Additional Member Cllr. Mongi Geolion Ntwanambi Xhariep District Municipality Re-elected Cllr M Mokgosi Additional Member Cllr. Thandiwe Ivy Reachable Letsemeng Local Municipality Re-elected Cllr J Sehanka Additional Member Cllr. N Rabela Mangaung Metro Municipality New Cllr T Reachable Additional Member Cllr. Lindiwe Ursula Makgalema Dihlabeng Local Municipality New Cllr A Noosi Additional Member Cllr. Vuyizile Mona Letsemeng Local Municipality Re-elected Cllr E Moilwa Additional Member Cllr. Lenox Rubulana Lejweleputswa District Municipality Re-elected Cllr L Rubulana Additional Member Vacant

SALGA GAUTENG

PEC FROM PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012 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 Mﬁ koe Matshidiso(Cllr) City of Joburg New Cllr S Maphalla Additional Member Mashego Robert (Cllr) Ekurhuleni New Cllr P Ramurutsi Additional Member Bhayat Farouk (Cllr) Mogalecity New Cllr SN Mndayi Additional Member Tessa Ernest (Cllr) City of Tshwane New Additional member Modisakeng Busisiwe(Cllr) Sedibeng New

18 SALGA Annual Report | 2011/12 1.7 SALGA Leadership

SALGA KWAZULU-NATAL

PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012 Designation Name Municipality New/Re-elected Chairperson Sibusiso.W Mdabe Ilembe District Re-elected Deputy Chairperson James Nxumalo eThekwini Metro Re-elected Deputy Chairperson Jabu Khumalo Amajuba District New Deputy Chairperson Dudu CP Mazibuko Uthukela District Re-elected Additional Member Nigel Gumede eThekwini Metro Re-elected Additional Member Mluleki E Ndobe Sisonke District New Additional Member Chris Ndlela Msunduzi LM New Additional Member Thembeka VB Mchunu Uthungulu District New Additional Member Ntombiﬁ kile H Gumede Ugu District New Additional Member Yusuf Bhamjee Umgungundlovu District Re-elected

SALGA LIMPOPO

PEC FROM PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012 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 Additional Cllr F Greaver Polokwane Local Municipality member

SALGA Annual Report | 2011/12 19 1.7 SALGA Leadership

SALGA MPUMALANGA

PEC FROM PEC FROM 3 AUGUST 2011 UNTIL 31 MARCH 2012 1 MARCH 2011 UNTIL 18 MAY 2011 Name Designation Name Municipality New/ Re-elected Cllr SK Mashilo Chairperson Clr SK Mashilo Nkangala District Re-elected *Cllr LM Malatjie Deputy Chairperson Clr LC Dlamini Mbombela New Cllr CN Mkhonto Deputy Chairperson Clr M Nkosi Chief Albert Luthuli New Cllr O Mtsweni Deputy Chairperson Clr R. Khumalo Bushbuckridge New Cllr F Maboa- Additional Member Clr GT Mthimunye Dr JS Moroka Re-elected Boltman (Ex-Ofﬁ cio) Cllr A Gamede Additional Member Clr L Dikgale Nkangala District Re-elected Cllr BM Khumalo Additional Member Clr T Shabangu Ehlanzeni District New Cllr GT Mthimunye Additional Member Clr T Mnisi Gert Sibande District New Cllr L Dikgale Additional Member Clr VS Magagula Thaba Chweu New Cllr R Vilakazi Additional Member Clr L Masina Govan Mbeki New Cllr. L Theko Co-opted member Clr. S Nxumalo Bushbuckridge New Cllr B Kubheka Co-opted member Clr S Sithole Emalahleni New Cllr N Ndlovu Co-opted member Clr WM Mhlanga Nkomazi New Ex Ofﬁ cio Member Clr. F Maboa Boltman Gert Sibande Re-elected

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

SALGA NORTHERN CAPE

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

Name Designation Name Municipality New/ Re-elected Cllr W Johnson PEC Member Cllr Esther Molete Joe Morolong New Cllr D Singh PEC Member Cllr Victor Makoke John Taolo Gaetsewe New Cllr N Hermans PEC Member Cllr Jan Tonyane Tsatsabane New Cllr H Combrink Deputy Chair Cllr Nokhaya Mjila Siyanda New Cllr M Eilerd PEC Member Cllr Sipho Stonga Emthanjeni New Cllr T Seikaneng PEC Member Cllr Lorenzo Faber Namakhoi Re-elected Cllr K Markman PEC Member Cllr Eileen Drage- Maritz Namakwa DM Re-elected Cllr W Ngobese Deputy Chair Cllr Winnie Ngobeza Sol Plaatje Re-elected Cllr I Drage-Maritz Deputy Chair Cllr Nombulelo Hermans Umsobomvu Re-elected Cllr G Cloete Provincial Chairperson Cllr Willie Johnson FBDM Re-elected Cllr L Faber Cllr L Letebele

20 SALGA Annual Report | 2011/12 1.7 SALGA Leadership

SALGA NORTH WEST

PEC FROM PEC FROM 19 MAY 2011 UNTIL 31 MARCH 2012 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 Maﬁ keng LM New Cllr OR Mochware Deputy Chairperson Cllr Mbulelo Zephe Dr Kenneth Kaunda DM New Cllr AJ Maphetle Deputy Chairperson Cllr Phaladi Saku Ngaka Modiri Molema DM New Cllr P Mopalami Additional Member Cllr Afrika Thale Ramotshere Moiloa LM New Cllr MW More Additional Member Cllr Moeder Makodi Lekwa Teemane LM New Cllr P Kgosieng Additional Member Cllr Sarah Nkatlo Dr Kenneth Kaunda DM New Cllr KB Diakanyo Additional Member Cllr Suzan Montshioagae Dr Ruth S Mompati DM New Cllr B Moirwagale Additional Member Cllr Sheila Mabale-Huma Rustenburg LM New Cllr B Seokamo Additional Member Cllr Ezra Mdangai Bojanala Platinum DM New Cllr J Douw Additional Member Cllr Francis Ratlhaga Bojanala Platinum DM New Cllr Doctor Kgosi Mohadi Maquassi Hills LM New Cllr Meso Rosy Dassie Tlokwe LM New

SALGA WESTERN CAPE

PPECEC FFROMROM PPECEC FROMFROM 1919 MAYMAY 20112011 UNTILUNTIL 3131 MARCHMARCH 20122012 1 MMARCHARCH 22011011 UUNTILNTIL 1188 MMAYAY 20112011 NNameame DDesignationesignation NNameame MMunicipalityunicipality NNew/ew/ RRe-electede-elected CCllrllr S ddee VVriesries CChairpersonhairperson AAldld DDemitriemitri QQuallyually CCapeape TownTown NNewew CCllrllr IIRR IIversenversen DDeputyeputy ChairpersonChairperson CCllrllr GGeorleneeorlene WWolmaransolmarans KKnysnanysna RRe-electede-elected CCllrllr WWSS MMxolosexolose DDeputyeputy ChairpersonChairperson CCllrllr FFrancoisrancois SSkipperskippers SSaldanhaaldanha NNewew CCllrllr MMrsrs GGRR WWolmaransolmarans DDeputyeputy ChairpersonChairperson CCllrllr EEdwarddward NjaduNjadu CCentralentral KarooKaroo NNewew CCllrllr MMrsrs CCCC BBrinkrink AAdditionaldditional MMemberember CCllrllr GGrantrant TTwiggwigg CCapeape TownTown NNewew CCllrllr CCAA ddee BBruynruyn AAdditionaldditional MMemberember CCllrllr IIanan IIversenversen CCapeape TownTown RRe-electede-elected CCllrllr L DDunnunn AAdditionaldditional MMemberember CCllrllr SStephantephan VubaVuba CCapeape TownTown NNewew CCllrllr B HHerronerron AAdditionaldditional MMemberember CCllrllr CChrishris HHussingerussinger SSwartlandwartland NNewew CCllrllr G PPascoeascoe AAdditionaldditional MMemberember CCllrllr CCleralera MMeyereyer CCapeape WinelandsWinelands NNewew CCllrllr S PPitiiti AAdditionaldditional MMemberember CCllrllr AAntonnton CoetseeCoetsee OOverstrandverstrand NNewew CCllrllr MMss E PPlaatjieslaatjies CCllrllr MMrsrs EECC MMarthinusarthinus CCllrllr MMss JJJJ MMulleruller

SALGA Annual Report | 2011/12 21 1.7 SALGA Leadership

SALGA EXECUTIVE MANAGEMENT TEAM

PROGRAMME / PROVINCE NNAMEAME

Chief Executive Ofﬁ cer XXolileolile GGeorgeeorge

Chief of Operations LLanceance JJoeloel

Chief Financial Ofﬁ cer JJosephineosephine MMeyereyer uuntilntil 1616 SeptemberSeptember 22011011

Acting Chief Financial Ofﬁ cer NNcebaceba NNqoqiqoqi fromfrom 1919 SeptemberSeptember 20112011

Acting Executive Director: Strategy, Policy, and Research SSeanaeana NkhahleNkhahle

Executive Director: Municipal Infrastructure Services MMthobelithobeli KolisaKolisa untiluntil 2424 OctoberOctober 20112011

Acting Executive Director: Municipal Infrastructure Services GGratituderatitude BooysenBooysen fromfrom 2525 OctoberOctober 22011011

Executive Director: Municipal Institutional Development AAdvdv MzwaneleMzwanele YawaYawa untiluntil 3131 JanuaryJanuary 20122012

Acting Executive Director: Municipal Institutional Development ZZwewe NNdlaladlala ffromrom 1414 FebruaryFebruary 20122012

Executive Director: Governance, IGR, and International Relations JJohannohann MettlerMettler

Executive Director: Community Development AAntonettentonette RichardsonRichardson

Executive Director: Economic Development, and Development Planning MMayurayur MaganlalMaganlal

Provincial Executive Ofﬁ cer: Eastern Cape CChrishris MagwangqanaMagwangqana untiluntil 3030 SeptemberSeptember 20112011

Acting Provincial Executive Ofﬁ cer: Eastern Cape MMthobelithobeli KolisaKolisa fromfrom 3 OctoberOctober 20112011

Provincial Executive Ofﬁ cer: Free State LLulamaulama CeleCele

Acting Provincial Executive Ofﬁ cer: Gauteng MMihlotiihloti MMasulukeasuluke

Provincial Executive Ofﬁ cer: Limpopo TThapelohapelo MatlalaMatlala

Provincial Executive Ofﬁ cer: Mpumalanga GGuguugu LangaLanga

Provincial Executive Ofﬁ cer: Northern Cape GGaonyadiweaonyadiwe MMathobelaathobela untiluntil 3030 SeptemberSeptember 20112011

Acting Provincial Executive Ofﬁ cer: Northern Cape JJohannerohanner RuitersRuiters fromfrom 1 OctoberOctober 22011011

Provincial Executive Ofﬁ cer: North West NNancyancy NNgwenyagwenya

Provincial Executive Ofﬁ cer: Western Cape KKhalilhalil MMulagieulagie

22 SALGA Annual Report | 2011/12 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)

SALGA Annual Report | 2011/12 23 2.1 INTRODUCTION

As per the PFMA, the SALGA Annual Report is the key oversight. The Annual Report looks at its performance relative tool for Schedule 3A Public Entities to report against the to the targets set in the Annual Performance Plan 2011/12 performance targets and budgets outlined in their strategic and provides the audited annual fi nancial statements. It plans. In addition to fi nancial statements and the audit reveals how the budget was implemented and the state of the report, the annual report is required to contain information fi nancial management systems of SALGA. It should include on mandate execution and performance. It is meant to be relevant background statistics and administrative data series. a backward-looking document, focusing on performance in the fi nancial year that has just ended. It reports on how the The Annual Report is linked to the implementation of the budget for that fi nancial year was implemented. The SALGA Annual Performance Plan and budget, monitored through Annual Performance Plan 2011/12, as approved by the NEC in-year reporting. Quarterly performance reports provided on 25 March 2011, was based on the revised SALGA 5-year periodic updates on the implementation of the SALGA Annual Strategic Plan 2007-2012. This revision was amended in Performance Plan 2011/12, with particular reference to 2009 to cater for the shift in focus from objectives to outcomes monitoring delivery against quarterly performance targets. and the replacement of the fi ve objectives geared towards the These quarterly performance reports provides SALGA 5-year Local Government Strategic Agenda with the 10-Point management and leadership with information on performance priority outcomes of SALGA which were aligned to the Local against pre-determined objectives. The quarterly performance Government Turnaround Strategy. 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 fi nancial year for the purposes of

SALGA ANNUAL PERFORMANCE 2008-12 90

2008-2009 (Average of four 2009-2010 2010-2011 2011-2012 quarters)

SALGA ANNUAL PERFORMANCE 2008-12

2008-2009 (Average of four quarters) 60 2009-2010 75 2010-2011 73 2011-2012 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 SALGA Annual Report | 2011/12 2.1 INTRODUCTION

SALGA - ALL PROGRAMMES QUARTERLY PROGRESS

AR 2011-12 84 Q3 2011-12 71 2011-12 Q2 2011-12 40 Q1 2011-12 70 AR 2010-11 73 Q3 2010-11 82 2010-11 Q2 2010-11 83 Q1 2010-11 89 AR 2009-10 75 Q3 2009-10 84 2009-10 Q2 2009-10 85 Q1 2009-10 82 Q4 2008-09 58 Q3 2008-09 54 2008-09 Q2 2008-09 44 Q1 2008-09 41 01 02 03 04 05 06 07 08 09 0

QUARTERLY PERFOMANCE 2011-12 PERCENTAGE ACHIEVED

90 87 87 84 83 76 70 71 67 68 68 65

45 40 34

23 Q1 2011-12 Q2 2011-12 Q3 2011-12 AR 2011-12 O Total Programmes SALGA 10 Priority Items

SALGA Annual Report | 2011/12 25 2.1 INTRODUCTION

QUARTERLY PROGRESS CHART 2008-2012 - FULLY ACHIEVED PERCENTAGE

100

93 90 90 89 89 88 87 87 85 85 85 84 84 8484 83 8383 83 82 82 82 81 81 80

76 75 75 73 71 72 70 68 67 65 64

54 53 54

50 49 46 44 43 41 40 37 36 34

0 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 AR 2009-10 Q1 2010-11 Q2 2010-11 Q3 2010-11 AR 2010-11 Q1 2011-12 Q2 2011-12 Q3 2011-12 AR 2011-12

26 SALGA Annual Report | 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) Fully Not Total STRATEGIC OBJECTIVES AS PER Achieved Achieved Number of SALGA STRATEGIC PLAN 2007 to 2012 Targets Number Percent Number Percent

CA 1: Contribution to municipal transformation and 13 100 0 0 13 organisational development CA 2: Contribution to the effective and sustainable delivery of 8 100 0 0 8 municipal services CA 3: Contribution to the stimulation of local economies and 0 0 0 0 0 poverty alleviation CA 4: Contribution to the strengthening of municipal financial 15 100 0 0 15 capacity CA 5: improve the salga corporate governance and internal 50 79 13 21 63 SALGA CHANGE AGENDA functioning CA TOTAL 86 87 13 13 99 PO 1: Councillor support - high calibre, professional, and 12 75 4 25 16 effective local government political leadership PO 2: Service delivery - improved access to municipal services and enhanced provision of free basic services (FBS) through 45 83 9 17 54 effective operations management and service maintenance PO 3: Social cohesion – mainstreaming of transversal (gender, 59 98 1 2 60 youth, children, HIV/AIDS, etc.) socio-economic issues PO 4: Economic issues – drive of growth and employment 45 98 1 2 46 creation by municipalities in both urban and rural areas PO 5: Labour relations – productive and stable labour 26 79 7 21 33 environments supported by a ‘mutual gains’ approach PO 6: Sound financial management and governance system - 28 80 7 20 35 improved municipal financial management and viability PO 7: Stable municipal governance 12 86 12 14 14 PO 8: Capacity building and institutional development – optimising municipal skills, organisational systems, and 38 68 18 32 56

SALGA 10 PRIORITY OUTCOMES structures towards improved service delivery PO 9: Reformation of organised local government – ensuring a 7 64 4 36 11 more effective, responsive, and financially viable SALGA PO 10: Climate change response measures - integration of climate change responses in municipal development, planning, 4 67 2 33 6 and management. PO TOTAL 276 83 55 17 331 TOTAL KEY PROGRAMMES CONTRIBUTING TO 362 84 68 16 430 BUSINESS PLAN 2011-12

SALGA Annual Report | 2011/12 27 2.2 OVERVIEW OF PERFORMANCE AGAINST PREDETERMINED OBJECTIVES FOR THE PERIOD 1 APRIL 2011 to 31 MARCH 2012

The Annual Report 2011/12 refl ects on the performance SALGA Perfomance Plan 2011-12 and achievements of SALGA in relation to a total of 430 CONSOLIDATED ANNUAL PERFOMANCE key performance indicators (KPIs) with its associated POST AUDIT 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 Not Achieved revised SALGA Five-Year Strategic Plan (2007-2012). 72 KPI’s These KPIs encompass all SALGA provincial offi ces 17% (excluding SALGA KZN) and national directorates. Collectively, SALGA has achieved 84 percent (362 KPIs) of the targets as set out in the Annual Performance Fully Achieved Plan. Overall, only 16 percent (68 KPIs) of the targets 358 KPI’s have not been achieved. 83% It may be noted that the annual performance of SALGA post-AG for the for 2011-12 fi nancial year stands at 84 percent. This is an 11 percent improvement on the 2010/11 performance which stood at 73 percent.

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

Not Achieved 55 KPI’s Not Achieved 17% 17 KPI’s 17% Fully Achieved 276 KPI’s Fully Achieved 83% 82 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 identiﬁ ed as a signiﬁ cant risk to the achievement of the Annual Performance Plan and building a high performance organisation.

28 SALGA Annual Report | 2011/12 2.2 OVERVIEW OF PERFORMANCE AGAINST PREDETERMINED OBJECTIVES FOR THE PERIOD 1 APRIL 2011 to 31 MARCH 2012

SALGA 2011-12 FINAL PERFOMANCE SCORECARD BY DIRECTORATE/PROVINCE

2011-12 2009-10 84% 2010-11 75% 73%

SALGA WC 100 SALGA NW 98 SALGA NC 89 SALGA MP 85 SALGA LP 74 SALGA GP 91 SALGA FS 70 SALGA EC 82 Programme 8: Development & Planning 92 Programme 7: Community Development 94 Programme 6: Governace and IR 85 Programme 5: Municipal Institutional Development 50 Programme 4: Municipal Infrastructure and Services 81 Programme 3: Strategy, Policy & Research 94 Programme 2: Finance & Corporate Services 79 Programme 1: Office of the CEO 73

Challenges during 2011/12 2011/12 will be utilised to conduct the required due diligence to facilitate the smooth integration of SALGA KZN with the The year under review has been characterised by the transition rest of the organisation. In terms of planning and budgeting in SALGA leadership as a result of the Local Government reporting, SALGA KZN will form part of the SALGA Strategic elections which took place on 18 May 2011. According to Plan 2012-2017 and Annual Performance Plan 2012/13. the SALGA Constitution, a National Conference has to be held within 90 days following the elections. The National During 2011/12, SALGA conducted a detailed analysis of its Conference is an elective conference and the highest decision- organisational environment and the broader context of local making structure in SALGA. At the provincial conferences government. A number of activities informed this process; preceding the National Conference, provincial PECs were fi rstly SALGA subjected itself to an organisational peer review elected followed by the election of the new incoming SALGA process by the Local Government Association of England and NEC at the National Conference. This leadership transition Wales (LGA), secondly SALGA conducted an organisational impacted on the ability of SALGA to effectively convene its climate survey, and lastly there were management and governance structures during the fi rst and second quarters of leadership refl ections in the form of an EMT ‘bosberaad’ and the the fi nancial year. NEC induction workshop. These processes identifi ed possible means of addressing key challenges. The organisational At the provincial conference of SALGA KZN, a resolution was assessment highlighted a number of challenges as indicated passed for SALGA KZN to be re-integrated with the rest of the in the table below. unitary SALGA structure. Agreement had been reached that

SALGA Annual Report | 2011/12 29 2.2 OVERVIEW OF PERFORMANCE AGAINST PREDETERMINED OBJECTIVES FOR THE PERIOD 1 APRIL 2011 to 31 MARCH 2012

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 • Lack of efﬁ cient and effective business and operational membership fees processes • Lack of proper processes to collect outstanding Unsustainable SALGA funding model • membership fees

• Poor ICT connectivity given the country’s geography • The internal mandating process of SALGA is too complex and slow • Lack of effective and efﬁ cient monitoring and evaluation Lack of reliable data to provide membership intelligence system to measure performance of SALGA’s leadership • to develop policies and priorities People Integration Programme and Projects (Delivery) Integration

• Limited government resources and constraints of the • Lack of sector-led leadership programmes for local local government system government addressing the training needs of the sector

• Uncoordinated, inefﬁ cient performance management for • The products and services catalogue of SALGO are not staff clearly deﬁ ned 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 deﬁ ned

A formidable challenge is that the budget of SALGA is funding model that will enhance revenue. This will ensure the inadequate to fulfi ll its mandate. The budget is also diffi cult sustainability of the organisation in future years. In analysing to determine as membership and payment of levies by the activities undertaken, cost drivers were identifi ed. Whilst municipalities are entirely voluntary. SALGA has responded by cost control was not an objective of the assignment, there are initiating a comprehensive investigation into its funding model, recommendations that identify possible opportunities. 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 The purpose of this assignment was to analyse the various to a heightened expectation in terms of its capacity to meet activities currently performed by SALGA with specifi c the growing expectation to be the voice of local government. reference to the relevant legislation and to determine a

30 SALGA Annual Report | 2011/12 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 CA1: Improve SALGA’s capacity to support and to serve its membership by the provision of sound advice advise its members. 2011-12 FINAL PERFOMANCE 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.

Fully Achieved 13 100%

ENQUIRY MANAGEMENT SYSTEM In this context, a research agenda has been identifi ed and implemented through various business units. A total of 30 A functional Enquiry Management System has been introduced research projects were concluded in 2011/12. SPR monitors with relevant support staff trained on its implementation. delivery on the research agenda throughout the organisation This has resulted in a more responsive approach to member and implements some cross-cutting research projects which queries. SALGA is now able to track the nature and number include: of queries received by the organisation and to appropriately respond to these. This results in the organisation becoming The State of Local Government and Mining: At least one quarter more proactive and responsive to the needs of its members. of South African municipalities are dependent on mining for The programme on directly assisting member municipalities a signifi cant part of their socio-economic activity. A research in the improvement of audit outcomes and performance report on the state of cooperation between Mining and management systems, has allowed SALGA to expand on its Local Government has been concluded in partnership with internal skills and expertise (using employees that are internally the Departments of Mineral Resources and of Co-operative focussed) to the benefi t of its member municipalities. Governance, Industrial Development Corporation (IDC), and GIZ. A learning network and programme for ongoing support SALGA RESEARCH PROGRAMME has been developed emanating from the research.

Migration and Implications for Municipal Governance: SALGA One of the core objectives of the SALGA research programme has concluded and published a study on migration and is to enhance its capacity to advise its members. Delivery on governance in South African municipalities. The ﬁ ndings of its various mandates will be enhanced signiﬁ cantly when it the study have been disseminated through numerous learning is informed by robust empirical research and intelligence. events and a learning network has been initiated in partnership Collection of best practices and innovation will be particularly with Wits University. The Local Government Migration Network useful for its advisory and support roles. is geared towards facilitating shared learning between key

SALGA Annual Report | 2011/12 31 2.3 PERFORMANCE INFORMATION

stakeholders on how to plan for and manage migration in South of what and how other members of their peer group create African municipalities. The network will also identify projects this efﬁ ciency has proven to be one of the most important and which can be jointly implemented by partners in the network. constructive strategies that a municipality could embark on. One of the key projects is a data management programme and building the capacity of municipalities to manage migration. STAKEHOLDER MANAGEMENT

Municipal Performance benchmarking: SALGA, in collaboration Partnerships with a variety of stakeholders have been with the Centre for Municipal Research and Advice, initiated facilitated. Most of these are geared towards providing support three municipal benchmarking programmes on Housing, to municipalities in various performance areas. New co- Public Participation, and Local Economic Development. operation agreements have been concluded with the following: These programmes have been implemented through three SALGA directorates (MIS, GIGR, EDP). A benchmarking • SANTAM towards supporting municipalities on Disaster project on HIV and Aids, which was initiated in the last Risk Management and Local Economic Development. fi nancial year, was concluded and published this year. A fi fth benchmarking programme was initiated separately through • GIZ: This cooperation which focuses on renewable a different partnership with the Water Research Commission energy support for the municipalities add on to an and implemented through the MIS directorate. existing long term relationship with GIZ which has strengthened local government in South Africa in many Municipalities in South Africa and those from around the ways. world generally face the same challenges. These range from an ever-changing and expanding set of needs from their • German Association of Cities (DST) focusing on constituencies, the necessity to serve these needs in an knowledge sharing with regard to local government effective, effi cient, and equitable manner, and to tighten fi scal matters in the two countries. This is designed to further spending. 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 efﬁ ciency. An examination

32 SALGA Annual Report | 2011/12 2.3 PERFORMANCE INFORMATION

2.3.1 SALGA CHANGE AGENDA

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 CA 2:Improve SALGA’s capacity to engage with institutional arrangements for pension fund and medical stakeholders and lobby and advocate them on aid regimes; developed a guiding framework on the tools issues in the interests of member municipalities. of trade, and effectively lobbied government on the current 2011-12 FINAL PERFORMANCE 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. Fully Achieved 8 100%

COUNCILLOR BENEFITS amendments, appointed its two Trustees to the Board of the MCPF, and facilitated the appointment of provincial trustees. A positioning paper on pension fund and medical aid This resulted in the overall improvement of the governance arrangements was developed to create a common arrangements within the MCPF which saw increased understanding of institutional arrangements for pension fund confi dence by members in the fund. and medical aid regimes. SALGA also developed a positioning on tools of the trade. It successfully lobbied the commission DEVELOPMENT OF STAKEHOLDER MANAGEMENT POLICY on remuneration and created clarity on the detailed set of tools of the trade that are applicable for councillors. Through In 2011, the NEC approved a Stakeholder Engagement provincial induction workshops, SALGA was able to initiate Policy for SALGA which aims to facilitate a more strategic and an improved and common understanding of the system of systematic approach to engaging its stakeholders. The policy remuneration applicable to all councillors. represents the commitment of SALGA to work effectively with all its stakeholders towards mutually benefi cial relationships. A comprehensive submission was made to the Minister for consideration in promulgating the Upper Limits Notice for The policy highlights that the objective of all partnerships 2011/12. The SALGA position infl uenced the fi nal Upper entered into would be to enhance value to member Limits Notice. To some extent, this responds to the challenges municipalities. The policy seeks to: raised by SALGA. SALGA provided guidance during the processing and fi nalisation of pension fund claims. To improve • Ensure a coherent approach to stakeholder engagement overall governance within the Municipal Councillors Pension across the organisation and local government as a Fund (MCPF), SALGA made progressive proposals for rule whole.

SALGA Annual Report | 2011/12 33 2.3 PERFORMANCE INFORMATION

• Harness the collective resources towards enhancing • Facilitate issue-based alliances as an advocacy tool support to the local government agenda • Facilitate a mutually reinforcing peer learning approach • Build the capacity of SALGA to guide, advise, and to inter-governmental relations and co-operative support municipalities in delivering on their mandate governance

• Build the capacity of SALGA to engage with policy- For these beneﬁ ts to be realised, SALGA recognises that the making processes in the interest of local government policy implementation must be embedded within the culture and core functions of the association. Furthermore, SALGA • Facilitate a critical mass of voices advocating Local believes that this commitment and integration will lead to better Government issues in its best interests outcomes for the organisation and its member municipalities.

34 SALGA Annual Report | 2011/12 2.3 PERFORMANCE INFORMATION

2.3.1 SALGA CHANGE AGENDA

CHANGE AGENDA 3: IMPROVE THE CAPACITY OF SALGA TO ENGAGE WITH STAKEHOLDERS AND LOBBY AND ADVOCATE THEM ON ISSUES IN THE INTEREST OF MEMBER MUNICIPALITIES

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

SALGA Annual Report | 2011/12 35 2.3 PERFORMANCE INFORMATION

2.3.1 SALGA CHANGE AGENDA

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

SALGA has increased its visibility and presence in CA 4: Enhance and mantain a high profile locally, regional, continent, and global structures; increased the regionally and internationally. opportunities for learning and sharing of best practice 2011-12 FINAL PERFOMANCE models for organised local government across borders; and facilitated stronger and more effective organised local government associations in the SADC region.

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 beneﬁ t from opportunities and platforms for the learning and sharing of best practice models for local authorities across borders.

36 SALGA Annual Report | 2011/12 2.3 PERFORMANCE INFORMATION

Details of the structured SALGA continentals and Horticultural Crop Technology for Rural Development, international engagements during 2011-2012: October 30-November 2011, Suwon and Seongnam, Korea. • Second Ordinary General Assembly of the UCLGA in Zambia, 15-16 April 2011. The President of BALA - • A political delegation led by the Chair of SALGA, Cllr Botswana Association of Local Authorities, Hon. Rev. Manyoni from Mangaung municipality and supported Cllr Mpho Moruakgomo, was elected President of the by the CEO represented SALGA and its member UCLGA for a three-year term. Executive Committee municipalities at the UCLG World Council in Florence, members Mayor Tayeb Zitouni (Algiers) and Cllr Italy (11 December 2011). Charles Mumena (President LGAZ) were nominated as Vice-Presidents of Northern and Southern Africa • Consultative Workshop with SWALGA Leadership and respectively. its Member Municipalities in Mbabane, Swaziland on the TriCo Fund Proposal, 19-20 January 2012. • SALGA Study Tour to the German Association of Cities (DST), Peer Learning and Development of an • UNDP Angola, 17-20 April 2011. Institutional Partnership (trip to Germany learning Pakistan supported by CLGF, 13-17 June 2011 under exchange on lobby advocacy/ IGR, 20-23 June). • the theme ‘Building Support for Models of Local • CLGF Dissemination Seminar, Building support for Democracy within a Federal System’. Models of local democracy within a Federal System in Japanese Economic Research Institute (JERI) on Water Pakistan, 05-08 July 2011. • and Sanitation in Africa, 09 May 2011. • ALAN (Association of Local Authorities in Namibia) UMM (Union of Municipalities of Marmara, Turkey), 29 55th congress, 20-23 July 2011 in Windhoek. • June 2011. • IBSA (India Brazil South Africa) LG Dialogue on Climate Local Government practitioners from Korea (27 July Change held in Pretoria, 16 October 2011. This was • 2011) as part of the KDS programme. attended by LG representatives of India and Brazil as well as SA councillors responsible for Climate Change • Ethiopian Cities Association, 19 October 2011 in their municipalities. • Botswana Association of Local Authorities (BALA), ARIAL project workshop organised by MDP-ESA • December 2011. (Municipal Development Partnership for Eastern and Southern Africa), Southern Africa Training on Details of the structured SALGA local engagements during “Development Possibilities with National Institutions 2011-2012: and Development Partners especially the EU”, 15- 16 November. • SALGA participated regularly in CoGTA (technical) committees, (technical) MinMECS, and Municipal • SALGA Study visit to Korea for the 2011 KSP program Demarcation Board (MDB) meetings. with SA, Interim Reporting Session and Policy Practitioners’ Workshop – Methodologies and Tools • CLGF Good Practice Scheme roundtable discussion on: for Integrated Infrastructure Planning and Rural Development in SA, 24-28 October 2011. ° Municipal Support for Small and Medium Enterprises; • SALGA ofﬁ cials to the KOICA (Korea International Cooperation Agency) multi-year Training Programme:

SALGA Annual Report | 2011/12 37 2.3 PERFORMANCE INFORMATION

° Role of Municipalities in promoting inward SALGA STRUCTURED ENGAGEMENTS investment; Ongoing structured engagements with stakeholders continued ° Employment creation – Job Linkage Centre in to enhance the work of SALGA. This has served to enhance Johannesburg, 11 May 2011. the sharing of information with key stakeholders, proﬁ le the work that SALGA does, and made opportunities available Launch of the Publication - Africa in Focus: Governance • to those who want to support the sector. In the past year, in the 21st Century, 25 May 2011 SALGA facilitated roundtable discussions with the Donor and International Development Partners as well as the business • Oxfam Strengthening local governance in Africa: sector. These roundtables have resulted in the improved regional trends and practices, 18-19 July. relations with the targeted stakeholders and enhanced the • EC ILGM provincial meeting, 09-10 October. process of identiﬁ cation of current and new projects.

• CLGF Good Practice Scheme Project Phase III National The human settlements unit at SALGA has been able to enhance Dissemination Seminar: 4-5 October. and maintain a high profi le position through the cooperation agreement with VNG International in the social housing and • Participated in the SALGA/SALAR discussion: the LOGO South Programmes. Consequently, funding was Creating the ‘right’ type of LED support programme for secured for the implementation of both programmes from the municipalities and the role of LGA – An International Kingdom of the Netherlands. and Southern Africa Perspective, 01 December. Additionally, SALGA hosted the Local Government Programme • UCLGA Water and Sanitation Focal Point Network as part of COP17 in December 2011 to discuss the issues of (FPN) meeting, 27-28 February. Climate Change and also agree on the role to be playd by LG to adapt to Climate Change. • GIZ programmes: Research on Accountability and Oversight; ToRs for the Scoping Exercise for the SALGA Eastern Cape participated at all Provincial Technical Implementation of Municipal Community Media MUNIMECs. The region also participated in the Provincial partnership ( 26 Jan), Appraisal workshop on “Access MuniMec held at the Wild Coast Mbizana LM on March 20 – to Justice” (08 March), GIZ gender strategy (15 Feb), 30, TSG and PCF Lekgotla (Jan) Prov Water Forum, EC Water GIZ and DoCD and J regarding the implementation Committee, and the EC Energy Forum. of PAJA in municipalities,GIZ Thematic Workshop on Governance programme appraisal (14 March), GIZ the SALGA Free State participated in two international relations proposed Study Tour to Germany on Shared Services missions, one in the Republic of Korea (South Korea) in and Inter-municipal Cooperation in May 2012, and Horticulture between 29 October 2011 and 13 November TriCo Idea: Inter-municipal TriCo Project Proposals: 2011, and the second in China, Hainan Province from 1 South Africa - Zimbabwe - Germany partnerships. to 3 December 2011, organised by BRICS. The region also received fi nancial support for fl ight and accommodation from provincial CoGTA on the BRICS meeting.

38 SALGA Annual Report | 2011/12 2.3 PERFORMANCE INFORMATION

2.3.1 SALGA CHANGE AGENDA

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

SALGA facilitated the election of a new leadership for CA 5: Improve SALGA’s corporate governance and organised local government at a provincial and national internal functioning. level and adopted a set of resolutions that will guide its 2011-12 FINAL PERFORMANCE policy direction for the next ﬁ ve years. SALGA continues to improve on internal functions (business planning, internal Not audit, performance management, legal and compliance, Achieved and communications) that allows for the organisation to 13 21% remain efﬁ cient, effective, transparent, and accountable to its members and the public. Fully Achieved 50 79%

STRATEGY AND ANNUAL PERFORMANCE PLANNING that drove the SALGA 2011 national and provincial conferences, the highest decision making body and the structures charged The core function of the Strategy and Business Planning unit with giving SALGA its strategic direction. The conference is to ensure that SALGA complies with the required legislation made it clear that this term of Local Government would be and regulations governing corporate governance. It also characterised by high expectation and a demand for leadership assists the organisation to continuously improve performance that responds to the urgent challenges facing the sector. against predetermined objectives through its oversight role and support to various portfolios. In order to respond to this, SALGA recognises that it must assert its leadership role in the sector in meaningful, effective During the year under review, the planning operations of partnership with key stakeholders. It will engage robustly with SALGA have been brought in line with the Framework for other spheres of government in defense of the interest of this Startegic Planning and Annual Performance Planning as critical sphere of government. The newly elected leadership issued by National Treasury in September 2010. To this of SALGA is committed towards transforming the sector and end, SALGA embarked on the second review of its Strategic reorganising it to perform better on its key mandates. and Annual Performance Planning Policy to ensure greater alignment and compliance with the national framework. SALGA has identiﬁ ed cross-cutting priority areas that focus SALGA has built signiﬁ cant capacity in terms of ongoing on critical impediments that have impacted negatively on the internal quality assurance as one of the key controls instituted ability of Local Government to perform optimally. These are towards the promotion of sound corporate governance and an integral part of the overall goals, objectives, and activities service excellence. within the strategy. However, they have been isolated due to the potential impact they could have toward the realisation of ”Building Municipal and Social Cohesion for Quality and Developmental Local Government. Sustainable Services: 2011 and Beyond” was the rally theme

SALGA Annual Report | 2011/12 39 2.3 PERFORMANCE INFORMATION

Addressing these issuers could fundamentally overhaul own. However, through the delivery of its mandate and working the Local Government system in South Africa and place it on intergovernmental relations and dynamic partnership and on a path that would enable it to perform across a range of stakeholder engagements, SALGA will champion these goals. mandates. The priorities are: OPTIMISING SALGA OPERATIONS • Legislative and policy review, especially around powers and functions and intergovernmental cooperation SALGA has elected a new leadership at a national and provincial • Local Government Finance and Fiscal transformation level to guide the organisation during this current term of ofﬁ ce of local government. The leadership simultaneously adopted • Municipal Capacity development (institutional and a set of resolutions that have informed the development of a human capacity: both political leadership and technical ﬁ ve-year strategy for organised local government. skills)

SALGA recognises the fact that it serves the interest of the Local Through the convening of regular NEC and PEC meetings Government sector as a whole. It is cognisant and sensitive to and conducting the induction of newly-elected NEC and the different categories of municipalities with unique needs PEC members, SALGA has capacitated its leadership and that require a differentiated approach and value proposition. support staff to improve corporate governance, internal functioning, and the execution of the mandate of organised The strategic goals contained in the SALGA strategic plan local government. represent the long-term results (outcomes and impacts) that the organisation will champion as the basis of driving service The implementation of the internal audit coverage plan for delivery, transformation, growth and development in the sector 2011/12 has resulted in improved internal controls contributing as a whole. These goals have been aligned to the national to organisational effi ciency, transparency and accountability. strategic agenda and mandates for the sector. Particular point The regular assessment of organisational compliance of reference have been the constitutional manadate of the with legislative requirements has improved organisational sector. These goals are: compliance, setting SALGA on a path to be exemplary to its membership and a structured response to legal matters has Goal 1: Accessible, equitable, and sustainable been maintained to protect the interest of municipalities. municipal services SALGA has mitigated risks through the regular monitoring, Goal 2: Safe and healthy environments and evaluation, and implementation of the enterprise risk communities management strategy. SALGA has successfully launched the Goal 3: Planning and economic development at a Anti Fraud Hotline to facilitate the prevention and detection local level of fraud and corruption. The Performance Management Goal 4: Effective, responsive, and accountable local System continues to be rolled-out to all employees, seeking to government improve both individual and organisational performance in a systematic manner. Goal 5: Effective human resources management in the sector SALGA has established an offi cial publication which is used Goal 6: Financially and organisationally capacitated to profi le municipalities and the work of the association. municipalities SALGA now has the ability to monitor media coverage from various sources without the time it consumes to read various Goal 7: An effective and effi cient administration publications (electronic and print), through electronic news SALGA recognises that there are numerous key players in feeds. SALGA has been able to apply a uniform corporate Local Government and that it cannot achieve these goals on its identity through the effective implementation of the brand management strategy.

40 SALGA Annual Report | 2011/12 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. 2011-12 FINAL PERFORMANCE

Not Achieved 4 25%

Fully Achieved 12 75%

COUNCILLOR INDUCTION PROGRAMME (CIP) INTERVENTION CIP In terms of S24(1) of the Local Government: Municipal Eastern Cape 1170 Structures Act, 1998 ( Act No.117 of 1998), “the term of Free State 761 municipal councils is ﬁ ve years, calculated from the day following the date set for the previous elections of all municipal Gauteng 1265 councils in terms of subsection (2)” of the Act. KwaZulu-Natal 1670

The term of ofﬁ ce of the current municipal councils commenced Limpopo 1318 on 01 March 2006 and has since expired on 28 February Mpumalanga 827 2011. The elections were held within 90 days after the expiry North West 615 date, which was on 18 May 2011. In bringing to fruition the mandate of playing the representative, advisory, support, and Northern Cape 431 employer roles effectively, SALGA needed to ensure that the Western Cape 585 newly elected leadership were well capacitated throughout TOTAL 8 642 their term to enable them to play their representative, governance, management, and oversight roles effectively. 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 SALGA, in partnership with sector departments, provided 8 642 councillors across all nine provinces: sector-based Cllr induction sessions in all provinces. This was conducted for MMCs responsible for water, waste

SALGA Annual Report | 2011/12 41 2.3.2 SALGA 10-PRIORITY OBJECTIVES

management, and human settlement. New councillors have COUNCILLOR SUPPORT been inducted and trained to make informed decisions with regards to the delivery of water services, solid waste, and SALGA Mpumalanga assisted municipalities in the human settlement. This has been done to ensure enhanced functionality of the committees of municipal council and the knowledge and understanding of the role councillors play Municipal Public Accounts Committees. SALGA developed in policy, legislation, budgeting, technological choices, guidelines which assisted municipalities on the structuring of operations, and maintenance. the committees of council and coordinated a third governance Indaba on 02 February 2012. Councillors elected to SALGA structures were also inducted on the role of SALGA in parliament, in the context of its mandate At the Indaba, municipalities were workshoped on the guidelines as the representative body of organised local government. The and the functionality of the committees of municipal council, training workshop held on 12 to 13 October 2011 sensitised the doctrine of separation of powers, public participation, approximately 39 councillors on the need for a structured section 57 employees, councillors support and benefi t, engagement with parliament in voicing policy issues Municipal International Relations, and the Intergovernmental confronting municipalities. Relations Frame Work Act of 2005. SALGA Mpumalanga, in partnership with CoGTA, assisted all 21 municipalities to join Additionally, councillors and offi cials from North West and the the established MPAC. The municapilities were also inducted Northern Cape were inducted into the roles and responsibilities in September 2011 into the district municipality. of political offi ce bearers and the municipal manager. They were also inducted into the need to develop terms of reference and delegations.

42 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 2: 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. 2011-12 FINAL PERFORMANCE

Not Achieved 9 17%

Fully Achieved 45 83%

WASTE MANAGEMENT of their waste fi ll sites was sent to mayors of affected Eastern Cape municipalities. SALGA advised municipalities to review their institutional arrangements for providing waste management services. This Municipalities were also educated on the need to comply was done through awareness and presentations in different with the regulatory issues on management of landfi ll sites. A provinces. Furthermore, a motivation to fi nancially support workshop on waste management was held in Mpumalanga 10 municipalities which are undertaking Clean and Green on 4 November 2011 at Nkangala district municipality. The Programme (Mnquma- Eastern Cape, KSD- Eastern Cape, purpose of the workshop was to encourage municipalities to Thulamela- Limpopo,Giyani- Limpopo, Bushbuckridge- get their waste disposal sites authorised. It was brought to the Limpopo City of Tshwane- Gauteng, Emfuleni- Gauteng, Ga- attention of municipalities that the disposal of waste on land is Segonyana- Northern Cape Mantsopa- Free State, Nkandla- one of waste management activities in respect of which licence Kwazulu Natal) to review their institutional arrangements was is required in accordance with Section 20(b) of the Waste Act. prepared for the attention of the Department of Environmental The outcome of the workshop was that municipalities were Affairs. made aware that they need to apply for the environmental Advice was continuously given through presentations to the authorisation for their waste disposal sites. SALGA Free State municipalities. SALGA developed a revised guideline for Province hosted a Councillor Induction Workshop on Waste the appointment of Waste Management Offi cers (WMOs). Management Services on 06 March 2012. The purpose of the Municipalities are being guided on how to designate and who workshop was to build the newly elected councillors’ capacity should be the Waste Management Offi cers. Updated report to actively participate in waste management processes in an of municipalities which have not applied for the regularisation informed manner in order to improve waste management as a service in municipalities.

SALGA Annual Report | 2011/12 43 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA North West convened and conducted a NEMA Section of municipalities for accreditation does not only focus on the 30 and IWMP working session with the focus on the most Housing Unit of the municipality. The entire municipality critical components of section 30 and the management of is assessed in terms of its potential to manage the housing information emanating from an emergency incidents. The function should it be granted to the municipality. intention of the legislation was for this information to be proactively utilised to predict, prevent, and better manage On 11 November 2011, SALGA Western Cape hosted an future emergency incidents. accreditation workshop for municipalities in the Western Cape that were targeted for accreditation. The objective of The working session also looked at the National Environmental the workshop was to prepare municipalities for the upcoming Management Act: Waste Act, No: 59 of 2008 where every assessments of their state of readiness for level one and municipality must develop and implement an Integrated Waste two accreditation by the Capacity and Compliance Panel Management Plan (IWMP) which outlines the management of (CCAP) of the National Department of Human Settlements. waste generated within its area of jurisdiction. At the end of the workshop, municipalities were assisted in the expectations of the CCAP and were in a better position to IWMP refers to a strategic initiative for the sustained respond to requests of the CCAP. management of solid waste through the use of a comprehensive integrated format generated complementary use of a variety of Assistance was provided to the Sol Plaatjie Municipality with practice to handle solid waste in a safe and effective manner. regard to its social housing programme. Implementation of the capacity development programme, as per the VROM HUMAN SETTLEMENTS workplan, to capacitate the 13 Provisional Restructuring Zone municipalities in the fi eld of social housing also took SALGA is part of the Capacity and Compliance Panel (CCAP) place. Through this intervention, Sol Plaatje Municipality was that assessed the 12 remaining priority municipalities (Sol assisted to draft a social housing policy as part of its housing Plaatje, John Taolo, Emthanjeni, !Khara Hais, Rustenburg, policy. This will be used to manage the implementation of the Buffalo City, Polokwane, Tlokwe, Matlosane, Steve Tshwete, social housing programme. Govan Mbeki and Mbombela) that were targeted for the municipal accreditation programme. The 13 urban municipalities that are part of the Provisional Restructuring Zones have been capacitated in the fi eld There are 27 municipalities targeted for this programme. of social housing. The rest of the municipalities have been During the past few years SALGA, in conjunction with the capacitated in the fi elds of social and rental housing. It allows National Department of Human Settlements, managed to the affected municipalities to make informed decisions in the assess and recommend fourteen of these municipalities for implementation of the social and rental housing programmes. the various levels of accreditation through the CCAP. Newsletters on recent policy developments and events on The objective of the CCAP is to assess the state of readiness of the Logo South Programme and the BZK (formerly known as municipalities to take over the housing function from provincial VROM) were disseminated to municipalities. This was done human settlements departments. A consolidated local to keep them up to date with developments in the social government position paper was developed on the Emergency and rental housing sectors. Additionally, a good practices Housing Programme (EHP) and will be used to advocate for document on public participation in rental housing was the revision of the EHP and the acceleration of the municipal developed to advise municipalities and assist them with public accreditation programme. participation processes.

SALGA North West facilitated the level one accreditation that As part of a learning process for municipalities, a benchmarking was granted to the Tlokwe Local Municipality. That led to a project was initiated. At the end of the programme, reports better understanding by the municipality that the assessment were developed for all the participating municipalities on

44 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

the status of housing in each municipality. The twinning the implementation of renewable energy and energy effi ciency municipalities (Camdeboo – Winterswijk, Govan Mbeki – initiatives. The workshop was also used to encourage the Vlissingen, Ekurhuleni – Breda, Emalahleni – Dordrecht, development of renewable and environmentally sound energy Tshwane – Delft, Langeberg – Rheden, Oudtshoorn – Alphen generation technologies at municipal level. aan den Rijn) which are part of the Logo South Programme, were capacitated in the fi eld of social and rental housing to It deepened an understanding of the implications of develop and implement rental housing projects. climate change for developmental prospects in municipal areas, deliberated on climate change issues affecting local ENERGY EFFICIENCY government, and identifi ed priority initiatives that must be undertaken in the municipalities in response to these common An analysis that was conducted on the implications of challenges for inclusion in municipal plans (IDPs and SDBIPs). the implementation of energy effi ciency and demand side management programmes on municipal fi nances, will provide WATER AND SANITATION SERVICES municipalities with an understanding regarding the impact of these programmes on municipal fi nances. The fi ndings SALGA, in partnership with Department of Human Settlement, of the analysis will assist SALGA to infl uence national policy developed a South African Sanitation Policy that encompasses to address the implications of the implementation of energy the sanitation value and the strategic policy direction in the effi ciency and demand side management programmes on provisioning of sanitation. municipal fi nances. SALGA Gauteng, together with the Department of Water SALGA Limpopo coordinated a meeting between SALGA Affairs, undertook an assessment of three municipalities (one and Polokwane Municipality regarding the Swiss Agency for local municipality and two Metros) implementation of the Free Development and Cooperation Energy Effi ciency Monitoring Basic Sanitation (FBSan) Strategy. The analysis looked at the and Implementation Project. The meeting that was held at fi nance governance, health and hygiene, and how the strategy Polokwane municipality on 19 April 2011. Polokwane has was being implemented. The outcome of the assessment been identifi ed as one of the pilot municipalities which will showed the need for a differentiated approach when support participate in the programme. The aim of the meeting was is given to municipalities. There was a need for customised to provide Polokwane municipality with information regarding support plans to be developed for the local municipality. activities that will be implemented as part of the programme Free State Municipalities were capacitated on the Sanitation and to solicit the inputs of the municipality regarding these Policy through a White Paper Review Workshop held on activities. 21 November 2011. Municipalities have updated indigent SALGA Western Cape held an Energy Effi ciency workshop on policies tailor-made and relevant to their specifi c jurisdiction. 11 November 2011 where Ms Helen Davis presented on the Local government is now fully involved in the drafting of the Draft Sustainable Energy Bill. The objective of the workshop National Sanitation White Paper. The roles and responsibilities was to inform municipalities on the objectives of the Bill and of Local Government in Policy are clear as defi ned by Local its impact on Local Government. At the end of the workshop, Government Politicians and Offi cials in the draft White Paper. knowledge and understanding of the Bill were enhanced and Free State municipalities were further capacitated on Sanitation placed the municipality in a better position to plan for the Tool and guidelines on 23 and 30 March 2012. The purpose implementation of the Bill. of the workshop was to promote a common approach to the implementation of sustainable sanitations service delivery in SALGA Noth West conducted an Energy Effi ciency, Renewable municipalities. Energy, and Climate Change workshop to raise awareness on the benefi ts of related technologies to promote and encourage In 2008, SALGA submitted a concept paper to the Department of Water Affairs and Forestry calling for the development of a

SALGA Annual Report | 2011/12 45 2.3.2 SALGA 10-PRIORITY OBJECTIVES

coherent sanitation policy. This would be done by reviewing provider by national offi ce to develop a Water Conversation the White Paper on Basic Household Sanitation, 2001. This Strategy for Dipaleseng local municipality. A meeting between proposal was only effected in 2011 and SALGA Gauteng SALGA, Dipaleseng Local Municipality and the service provider coordinated the regional consultations on the review of the was held on 15 November 2011 to introduce the service White Paper. Workshops were held where municipalities were provider to the municipality and also to develop a project plan. given the opportunity to make inputs into the review process. The service provider has developed the Water Conversation SALGA is expected to respond in writing to tariff changes Strategy which was to be completed by February 2012. The proposed by organs of state that provide bulk services Water Conservation Strategy ensures that there is suffi cient to municipalities as required by the Municipal Financial water for use by communities. This improves the provision of Management Act. In line with this, the province developed water as a basic service. A provincial consultation workshop a position with input from Gauteng municipalities which was on the revision of the white paper on Basic Household responding to Rand Water’s proposed tariff amendment for sanitation was held on 3 November 2011 at Steve Tshwete the 2012/13 fi nancial year. The consolidated Gauteng position Local Municipality. The aim of the workshop was to share was submitted to the Department Of Water Affairs as part of information on the importance of water conservation and water the overall SALGA position on tariffs. demand management as well as the performance of the local regulation function in the context of water service delivery by SALGA is developing a national water services benchmarking local municipalities. report on the basis of performance improvements and the tier approach. 25 water service authorities participated The workshop was then informed that Dipaleseng local in the benchmarking indicators. The development of the municipality was in dire straits. As a result, the municipality benchmarking report seeks to set performance benchmarks would be provided with support in the development of water to encourage peer-to-peer learning. conservation and demand management in the current fi nancial year. SALGA is also training water services managers in the 25 WSAs towards achieving the blue and green drop certifi cation. North West Municipalities assisted towards the development This certifi cation serves as a symbol of confi dence that the of Water Conservation and Demand Management Strategies. water and waste water facilities are managed according to set Focused funding for the Dr. Ruth Segomotsi Mompati District norms and standards. municipality for the roll out of sanitation projects to reduce the backlog was made available. Additional funding is SALGA is also developing a discussion document on bulk anticipated for the Moses Kotane local municipality. Following potable water and sanitation gaps, and the roles and adverse outcomes of the blue and green drop assessment responsibilities to accelerate service delivery. The roles and and certifi cation processes for the current fi nancial year in responsibilities of municipalities with regards to bulk water are the North West, individual WSAs were visited to discuss the being highlighted as a major challenge in the delivery of water outcomes and put comments on remedial measures. The services. criteria for this exercise entailed looking at the following critical components namely: A provincial workshop on water conservation and water demand management was held at Nkangala district municipality • Blue drop criteria (Mpumalanga) on the 21 September 2011. The following ten (10) municipalities attended: Dipaleseng; Ehlanzeni district; • Sub requirements Emakhazeni; GovanMbeki; Mbombela; Msukaligwa; Nkangala district; Nkomazi; Pixley Ka Isaka Seme and Steve Tshwete. • Weightings

SALGA Mpumalanga facilitated the appointment of a service • Overall impressions of criteria

46 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA North West continued to be part of the fi nalisation as a Provincial Sector Department and a Custodian in the of strategies for readiness of WSAs for the next round of Province for Environmental Policy, Planning, Coordination, assessments scheduled for 2012. Following the Honourable Management, and Legislation Enforcement to provide support Minister of the Department of Human Settlements, Mr Tokyo to its Municipalities in terms of Environmental Indicators in Sexwale, appointing a task team with the mandate to establish their IDPs. The main outcome of the workshop informed a way the scale of sanitation problem, its nature, geographic spread forward with a work plan drafted by all stakeholders on how to (urban or rural) and identify irregularities and malpractices in grant hands-on support to municipalities. the country, SALGA NW facilitated the MSTT meetings with the identifi ed municipalities for formal meetings with political INFRASTRUCTURE SERVICES leaders and offi cials. SALGA North West formed part of the site visits to sanitation project and met with the communities. The City of Mangaung and City of Cape Town were assisted and advised on its Built Environment Performance Plans. ENVIRONMENT MANAGEMENT This intervention ensured that the Cities Built Environment Performance Plans comply with the Urban Settlement SALGA conducted and assessment of local government Development Grant (USDG) framework and that expenditure organisational capacity and the extent to which the fi scal is aligned accordingly. framework makes provision for the environmental function. Municipalities are aware of the capacity required to perform Infrastucture and Service delivery assessment reports were environmental function effectively. The management of conducted for municipalities in the Eastern Cape. SALGA information generated during and post an emergency incidents better informed on service delivery mechanisms in EC have proved to be a challenge for municipalities. municipalities, so as to advise municipalities accordingly.

SALGA and the Department of Environmental Affairs sought to A provincial (Mpumalanga) workshop on Municipal initiate discussions in the form of a workshop on the collation Infrastructure Grant (MIG) was convened in collaboration with of quarterly statistics for all reported Emergency Incidents in the department of Cooperative Governance and Traditional the Province. On 18 November 2011, Free State Municipal Affairs (COGTA) on 4 to 5 August 2011 at Nkangala district offi cials and councillors were trained on the reporting of municipality. All 18 local municipalities attended the workshop. Section:30 Emergency Incidents according to the National The aim of the workshop was to deal with the progress Environmental Management Act of 1998. regarding the MIG spend during the 2010/11 fi nancial year, On 24 February 2012, Free State Municipalities, SALGA, and particularly as at the end of June 2011. The outlook was the Provincial Department of Environmental Affairs engaged that, of the 19 municipalities in the province, only three had in a workshop to assist municipalities with their environmental spend 100 percent of their 2010/11 MIG allocations. These plans within their IDPs. It has been an on-going challenge were Ehlanzeni District Municipality, Steve Tshwete and Victor amongst Free State Municipal IDPs that they do not have Khanye Local municipalities as of June 2011. Environmental Indicators or do not fully comply with legislation The following were identifi ed as challenges that lead as stipulated. to underperformance by municipalities on Municipal The SALGA IDP managers in municipalities indicated that Infrastructure Grant (MIG) projects: they receive little support from Sector Departments in terms Poor planning of projects and none availability of of assistance with legislative compliance in order to produce • master plans Comprehensive Infrastructure Plan (CIP); credible IDPs as working documents. Municipal IDP Managers Service Delivery Budget Implementation Plan (SDBIP); have little if any support from Sector Departments for their Integrated Development Plan (IDP); and Water Services Sector Plans. SALGA is therefore in partnership with DETEA Development Plan (WSDP).

SALGA Annual Report | 2011/12 47 2.3.2 SALGA 10-PRIORITY OBJECTIVES

• Late registration of projects against the MIG allocation. • Technical reports and Business plans for all unregistered identifi ed projects to be implemented in the 2012/2013 • Slow municipal procurement processes. fi nancial year should be submitted for evaluation and approval. • Poor management and support to the Project Management Units(PMUs). • District capacity should be utilised to enhance technical capacity in local municipalities. • Poor fi nancial management of MIG funds by municipalities. • Municipalities should fast-track their procurement procedures of appointing service providers to implement Lack of capacity within Project Management Units. • the approved projects in order to expedite expenditure and service delivery. • Lack of resources by the PMU staff lead to none monitoring of projects. • Municipalities must improve working conditions to attract and retain technical staff. • Poor workmanship by the appointed service providers. • Municipalities should utilise the fi ve percent of MIG • Implementation and none availability of operation and allocation to provide for the procurement of additional maintenance plans. technical services. Based on the above analysis the workshop also identifi ed a Municipalities should fi ll all the vacant posts in the number of interventions that sector department had to be • Project Management Unit (PMU). implement in an effort to turn around the situation and these were: • All municipalities that have not spent 100 percent of their 2010/11 fi nancial year allocation need to apply • The Department of Cooperation Governance and for roll-overs to National Treasury by 31 August 2011as Traditional Affairs and relevant sector departments had outlined in Municipal Finance Management Act to continue to assist struggling municipalities to compile (MFMA) circular number 55. their business plans and technical reports.

• PMU business plans be approved based on municipal • District appraisal committees were established to performance on the MIG programme. expedite the process of project registration.

• The Department of Cooperative Governance and TRANSPORT Traditional Affairs had to deploy Engineers from its Rapid Response Unit (RRU) to provide technical SALGA Limpopo developed a draft Discussion Paper on support to struggling municipalities. Municipal Traffi c License Agency Fees. Presentation of the draft Discussion Paper on Municipal Traffi c License Agency As a way forward, the workshop also encouraged municipalities Fees took place at the PEC Lekgotla, Working Group Meeting, to play their respective roles in ensuring that the MIG spend as well as the PEC Meeting. SALGA Limpopo engaged NERSA improves: on the distribution of licenses by municipalities. A workshop was held with Limpopo municipalities. • Municipalities must improve the identifi cation of projects through the Integrated Development Planning The objective of these initiatives was to respond to issues (IDP) processes. that affected municipalities, in particular the Municipal Traffi c License Fees and the distribution licenses. The

48 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

views of Local Government in the province were expressed ELECTRICITY and communicated to the relevant authorities. As far as the workshop was concerned, municipalities were capacitated A meeting between SALGA, NERSA, and the affected and empowered. Mpumalanga municipalities was held on 24 June 2011 where the matter regarding the granting of electricity distribution Structured engagement with the District Municipalities and licences to Bushbuckridge, Dr JS Moroka, and Thembisile the Eastern Cape Provincial Department Of Transport was held Hani local municipalities was discussed. to deliberate on the objectives of the workshop. Municipalities were engaged to solicit information. Training material was The meeting came up with steps that the municipalities developed based on the presentation from the following would have to follow the process of applying for the electricity stakeholders: National Department of Transport, Provincial distribution licences. Letters advising the three municipalities Department of Transport, Provincial Department of Roads and on steps to be followed when applying for distribution licences Public Works, and SABITA. and advising them to pass council resolutions were sent to them. The purpose of the engagement was to raise a profi le and build a good relationship between SALGA Eastern Cape A provincial (Mpumalanga) workshop on farm dweller and the Department of Transport. It was to update the Cllrs electrifi cation was held at Steve Tshwete local municipality as well as the offi cials on transport issues.The outcome of on 27 August 2011. The following ten (10) municipalities the engagement was that SALGA will now be attending the attended: Chief Albert Luthuli; Dr JS Moroka; Ehlanzeni; Govan Minmec and other structures within on transport. Mbeki; Mbombela; Msukaligwa; Thaba Chweu; Thembisile Hani and Steve Tshwete. A National Land Transport Act workshop was held on 18 October 2011 at the SALGA Western Cape offi ces. The The aim of the workshop was to discuss: objective of the workshop was to inform municipalities on the objectives of the Act and its impact on Local Government. At • The current processes and practices which the end of the workshop, the municipalities’ knowledge and municipalities were following in the execution of understanding of the Act was enhanced. They are now in a municipality funded electrifi cation projects, which better position to plan for the implementation of the Act. were inconsistent with the approved Eskom processes. These inconsistencies led to safety risks on Eskom As a member of the provincial transport planning forum in networks; delays in energising completed projects good standing, SALGA Noth West has been jointly convening and poor service to newly electrifi ed customers. The engagement sessions with the aim of establishing and adopting understanding in sharing the approved municipality terms of reference. This is to deliberate and come up with funded and executed electrifi cation project process a road map towards the implementation of a rural transport and practice with all stakeholders strategy, integrated transport plans, and strategies to establish a public transport inspectorate for the Province. • The establishment, through the participation of all stakeholders, of a consistent approach to monitoring Other important matters was the identifi cation of the and evaluation of the Integrated National Electrifi cation upgrading of the Mafi keng International airport, development Programme (INEP). of a Regional Aviation Safety Strategy (SACAA), and the fi nalisation of Air Traffi c Management Roadmap (ATNS). All • The understanding of the approach that within these identifi ed projects were presented during the foreign the current framework only municipalities with investors conference for potential Public Private Partnerships distribution licence issued by NERSA are entitled to the (PPPs) arrangements. electrifi cation subsidy administered by the Department of Energy (DoE).

SALGA Annual Report | 2011/12 49 2.3.2 SALGA 10-PRIORITY OBJECTIVES

• The understanding that municipalities without the All assets to be created, must comply with minimum Eskom distribution licence are expected to be serviced standards for electrifi cation projects: by Eskom as an implementing agent of DoE for electrifi cation programme. • An indication in writing that all designs as well as technical details have been approved by Eskom • The DoE is responsible for planning and funding and will manage municipality funded and executed • The municipality identifi es the town or village to be electrifi cation projects. electrifi ed and submits a formal application letter to Eskom Electrifi cation Planning Department. • All assets created with electrifi cation funding are ring- fenced and belong to the state. • The fi eld investigation and verifi cation of application will be undertaken by Eskom Electrifi cation Planning • The DoE as a sector leader will continue to lead the Department electrifi cation programme and any entity that makes funding available for electrifi cation must apply to the • Eskom will conduct network capacity assessment and Minister for authorisation. provide the municipality with a written response on availability or non-availability of the required capacity • The asset created will be included as part of the electrifi cation assets currently managed by Eskom on • Where capacity is confi rmed to be available, the behalf of government municipality will be requested to submit the proposed electrifi cation project detail design in line with Eskom • The DoE and Eskom to discuss the issue of the 80 standards percent incentive of the total project cost that is charged by Eskom to Farm owners since it is not part of the • The proposed detail design will be taken to the Technical existing policy. Evaluation Forum (TEF) for approval

The outcome of this engagement was the sharing of information • Where the design is approved by TEF, an invoice of necessary to be supplied by those municipalities who aspired seven percent of the total project cost will be generated to electrify certain areas within their jurisdiction, but currently and payable by the municipality. This amount is to being supplied by Eskom. The following criterion had to be cover for the project overheads – administration, followed: investigations, designs, quality inspections, and so on.

• Approval in writing from the DoE Minister prior to • On receipt of the required payment, a site handover/ electrifying within Eskom supply area. kick-off meeting will be organised with all stakeholders

• An undertaking from Eskom that there is capacity to • Execution of the planned electrifi cation connections by accommodate the planned connections and that the the municipality created asset will be maintained and operated under The municipality will submit electrifi cation connections its licence conditions • data in the prescribed format (PCS fi le) to Eskom • A Municipality Council Resolution indicating that for verifi cation, sign-off, and updating of customer the created assets will be handed over to Eskom information systems (CC&B) for operation and maintenance as well as revenue An Eskom appointed Clerk of Works (COW) will conduct collection • quality assessments on the project and will, when satisfi ed, sign-off the handing over certifi cate

50 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

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

• Implement the process on all municipality executed electriﬁ cation projects

• Ensure that all stakeholders are conversant with all the requirements

• Individual municipalities indicated their challenges regarding electriﬁ cation at farms

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

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

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

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

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

SALGA Annual Report | 2011/12 51 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 3: SOCIAL COHESION MAINSTREAMING OF TRANSVERSAL (E.G. GENDER, YOUTH, CHILDREN, HIV/AIDS, ETC.) SOCIO-ECONOMIC ISSUES

During 2011/12, SALGA focussed its programmes and Guidelines in an effort to capacitate municipalities initiatives towards achieving two primary outcomes: and enable them to respond to the MDGs in a cohesive and effective manner. This would also enable 1. Local government capacitated to strengthen social municipalities to develop and implement effective cohesion in communities; and Human Development Strategies;

2. Local government supported to implement and monitor • SALGA has made advances in defi ning a local the Millennium Development Goals (MDGs) government position in the rendering of sport and recreation services and facilities; and has represented In contributing to the fulfi lment of the role of SALGA, the local government in the solidifi cation of a position on directorate has played a largely supporting and advisory role the assignment of executive functions in relation to the to municipalities. It has also implemented initiatives to build provision of community library services. and sustain the capacity of municipalities to make decisions on and respond to community needs in the areas of social • The directorate has facilitated the support of the NEC development and cohesion. The Millennium Development for the phasing in of Community Safety Forums and the Goals provide a strong backdrop for the activities of the strengthening of cooperation between Municipal Police directorate and of local government as a whole. The imperatives Services and the South African Police Service (SAPS). of the eight MDGs also directed the strategic focus for the directorate in the 2011/12 fi nancial year in the following areas: 2. Local government supported to implement and monitor the Millennium Development Goals (MDGs) • Poverty eradication; • SALGA has entered into partnership with the • Gender mainstreaming; and Department of Rural Development and Land Reform on the War on Poverty Programme. This programme seeks • HIV and AIDS mainstreaming. to strengthen municipal responses to the challenge of Although all eight goals are relevant in the social and poverty and build capacity by supporting municipalities community development arena, the two strategic outcomes to establish war rooms to adequately implement anti- of the directorate address the three aforementioned areas and poverty programmes. the eight MDGs. In summary, the following achievements have • SALGA has partnered with the Gauteng Department been made in the 2011/12 fi nancial year: of Local Economic Development under the auspices 1. Local government capacitated to strengthen social of the Y-AGE Programme to grow the participation of cohesion in communities local government in youth entrepreneurship, poverty eradication, and job creation. • A Human Development Framework and Guidelines have been developed (and approved by the NEC), • The directorate has continued to provide support to which aim to guide municipalities on best practices in local government in strengthening governance systems implementing programmes on human development; on transversal issues; capacity building and knowledge creation in HIV & AIDS; Children; Youth Development; • Provincial workshops have been held on both the and Gender Mainstreaming. MDGs and the Human Development Framework and

52 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PO3. Social Cohesion - Transversal (gender, youth, children, HIV/AIDS) social-economic issues mainstreamed. 2011-12 FINAL PERFORMANCE

Not Achieved 1 2%

Fully Achieved 59 98%

1. LOCAL GOVERNMENT CAPACITATED TO STRENGTHEN following: Library Grants, Relations and support for municipal SOCIAL COHESION IN COMMUNITIES libraries, and the establishment of District Library Forums. These consultations took place from 05 to 09 September 1.1. Community Libraries and Sport and Recreation 2011.

The execution of the functions of local government is 1.1.1 SALGA Games: underpinned by an effi cient fi nancial system. However, it has emerged that the funding models for a number of functions The purpose of the games is to foster social cohesion between residing at the local government level have compromised the offi cials and councillors, as well as between municipalities. effi cacy with which such functions are executed. The impact of the games is to promote the culture of healthy lifestyle and to have a workforce that does not require sick As such, the directorate has sought to advocate, on behalf leave at all times. The games also assist municipalities to of local government, for the revision of funding models and acquire more facilities that may be used for other events. mechanisms of their implementation for functions relating to Community Libraries and Sport and Recreation. Although the The SALGA Games were hosted as follows: revision of legislative and fi nancial mechanisms is a potentially SALGA Gauteng on 21 October 2011. drawn out process, the directorate has developed positioning • papers which, in its fulfi lment of its advisory role, seek to • SALGA Northern Cape from 25 to 26 November 2011 present a position that will be most conducive to enabling local government to fulfi l its mandate in Libraries and Sport and 1.1.2 Libraries Recreation with adequate fi nancial capacity and in the most effi cient manner. SALGA North West held a consultative meeting with municipalities to make inputs on the South African SALGA Northern Cape, in consultation with the Provincial Community Library and Information Service Bill, 2010 on Department of Sports, Arts & Culture (Library Services Unit), 14 September 2011. As a result of the meeting there is conducted district consultations meetings throughout the improved understanding of powers and functions in relations province. The core business of the consultations looked at the

SALGA Annual Report | 2011/12 53 2.3.2 SALGA 10-PRIORITY OBJECTIVES

to library services between the Provincial Department and • SALGA hosted a seminar on community libraries on Municipalities. 22 September 2011 with the objective of creating a platform for municipalities to engage on the Draft Bill 1.2. Knowledge Generation and Capacity Building and the role in funding libraries.

The SALGA Community Development Directorate has initiated • SALGA held a consultative workshop on 16 September a partnership with the University of South Africa in an effort 2011 on Sport infrastructure funding improve the production and dissemination of the latest research to its members. • On 5 July 2011, SALGA Free State in partnership with Centre for Economic and Governance on AIDS in Africa In 2011/12, the partnership allowed SALGA to produce three (CEEGA), trained 20 offi cials in eight municipalities on seminary human development research documents. SALGA, HIV and AIDS software programme that tracks spending in partnership with UNISA, hosted three seminars in 2011/12 on AIDS budget. under the theme: Local Government Going Beyond The Basics. • On 8 to 9 December 2011, SALGA Free State held a capacity building workshop in partnership with The seminars were attended by 50 delegates from women sector of South African National AIDS Council local government and provided for rigorous debate and (SANAC). The purpose of the workshop was to develop deliberations. SALGA has facilitated the process for reviewing an understanding of women’s issues in the HIV and the funding model for sport and recreation infrastructure, AIDS National Strategic Plan 2012-2016. This would through the initiation of dialogue between key stakeholders be done in preparation of the local AIDS plan that (municipalities, Department of Sport and Recreations, SRSA). municipalities are supposed to develop from 2012/13. SALGA has fulfi lled its advisory and advocacy roles for local 23 delegates from four District Municipalities and one government by making sure that South Africa’s fi rst National Mangaung Metro Municipality attended Sport Plan maps out a programme for local government and takes into account municipal challenges. • The Free State SALGA held an integrated mainstreaming workshop on transversal issues (Gender, Children, SALGA’s Community Development Directorate has initiated a Youth, Disability, and HIV and AIDS) from 7 to 8 March series of inter-municipal learning workshops aimed at relevant 2012 wherein 23 councillors and offi cials attended. The municipal concerns. These would include: purpose of the workshop was to build an understanding on key areas of mainstreaming within the Local A learning Workshop on best practices of metropolitan • Government sphere. The outcome of the workshop municipalities in human development - 15 September assisted in developing the proposed job description for 2011 focal persons dealing with transversal issues.

SALGA and SAPS Community Safety Forum Workshop • 1.3. Disaster Risk Management on 28 to 29 March 2012 to capacitate local government on Community Safety Forum Policy Guideline 1.3.1 Disaster Risk Management Training and Capacity developed, and to develop, a draft rollout action plan Building:

• Three round table/seminars held on 21 February 2012 SALGA recognised that councils and local government where the Local Government-CSO Network, the local ofﬁ cials lacked training in disaster management. Therefore, government draft framework for addressing cemetery the SALGA disaster risk management training programme shortage, and the role of local government in poverty was initiated and various partners and universities came on eradication were all discussed board to target 100 councillors/ofﬁ cials to be trained by March

54 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

2012. This training also targeted key SALGA offi cials. In total, to 31 May 2012. SALGA –KZN offi cials are to be part of this 188 councillors and offi cials were trained, with the following training. provincial disaggregation: There was also a need to ensure that the learning products were • Polokwane (Limpopo) – 24 councillors and offi cials accredited. This has been done on NQF Level 6. Through the were trained funding sourced by the University of the North West, SALGA members received discounted fees for attending, resulting in • Kimberly (Northern Cape) – 16 councillors and offi cials a high response rate. were trained The training material will, in 2013/14, also be made available • Springbok (Northern Cape) – 22 councillors and through open source technology. This will allow each member offi cials were trained municipality to develop accredited disaster management training material and signifi cantly cut down on training costs Bredasdorp (Western Cape) – 13 councillors and • as it will be able to conduct training in-house. offi cials were trained 1.3.2 mproving capacity for responses to and planning for Witbank (Mpumalanga) – 16 councillors and offi cials • disasters: were trained In the quest to improve municipal responses to disasters and Nelspruit (Mpumalanga) – 20 councillors and offi cials • to build capacity in local government for planning for and the were trained mitigation of incidences of disaster, SALGA has in the 2010/11 and 2011/12 fi nancial years conducted detailed studies and • Clarens (Free State) – 23 councillors and offi cials were analyses of the status of disaster risk management in the trained municipalities of South Africa. • Kuruman (Northern Cape) – 16 councillors and offi cials Based on the fi ndings of this enquiry, it emerged that there were trained is a persistent need for capacity building in both conceptual • Upington (Northern Cape) – 19 councillors and offi cials and practical areas of disaster risk management. In light of were trained such fi ndings, the directorate rolled out a training programme for both councillors and offi cials. This has seen 250 people • Nelspruit (Mpumalanga) – 20 councillors and offi cials being trained to date. The directorate intends to continue the were trained capacity building initiative in the coming years with a particular focus on scenario-based planning. • Potchefstroom (North West) – 18 councillors and offi cials were trained As part of the advocating campaign towards compliance with Fire Protection Act, SALGA Free State established a Technical • Mafi keng (North West) – 19 councillors and offi cials Task Team to assist in capacitating municipalities on disaster were trained and veldt fi re management issues (established on the 24 June 2011). Final Participant Totals: 189 (this amounts to 74 percent of total respondents who expressed an interest to be trained SALGA North West worked with municipalities to conduct when the circular was sent to all members). an assessment on Fire Safety for Old Age Homes and Early Learning Centres. The outcomes report was shared with Training in KZN was scheduled for 09 to 11 May 2012 for municipalities on 14 February 2012. The assessment has led 23 participants in Ulundi. Two other training sessions in to engagements with the department of Social Development, Pietermaritzburg took place on 22 to 24 May 2012 and 29

SALGA Annual Report | 2011/12 55 2.3.2 SALGA 10-PRIORITY OBJECTIVES

for purposes of ensuring that Fire Safety standards are met in • Western Cape, October 13, 2011 at Worcester Council all registered ECDs and Old Age Homes. Chambers

SALGA Limpopo conducted a workshop on 27 March 2012. The • Eastern Cape, October 18 at Lukhanji Indoor Sports objective was to improve the knowledge and understanding of Complex (follow-up meeting has been planned for Disaster Risk Management, which is not purely a line function March 2012) responsibility. This is an activity that is relevant to all spheres of government and requires an integrated, multi-sectoral, multi- • KwaZulu-Natal, October 29, 2011 at Hillcrest disciplinary approach aimed at reducing the risk associated Limpopo workshop was held on February 14, 2012 in with hazards and vulnerability. • Pretoria. The workshop was attended by councillors, municipal ofﬁ cials, The SALGA Community Development Directorate has initiated and CoGTA. Mopani district municipality shared the lesson a partnership with the Department of Rural Development and with member municipalities on how they managed to respond Land Reform, through the War on Poverty Programme, in to the two planes that crashed on 14 August 2011. order to improve human development and poverty eradication programmes of municipalities. In 2011/12, the partnership 2. LOCAL GOVERNMENT SUPPORTED TO IMPLEMENT AND allowed SALGA to produce the ﬁ rst baseline document MONITOR THE MILLENNIUM DEVELOPMENT GOALS for human development in local government, the Human (MDGS) Development Framework. The resources and capacity of the Department of Rural Development and Land Reform allowed 2.1. Human Development and Poverty Eradication for SALGA to facilitate workshops with SALGA members SALGA seeks to ensure that its members are capacitated. To provincially on the framework. In 2012/13 and 2013/14, the this end, provincial workshops on the Human Development partnership will provide SALGA with R6-million to ensure that Framework and Guidelines were held at provincial level: municipal plans are developed and capacitated.

• Mpumalanga, September 15, 2011 at Nkangala District SALGA Free State, in partnership with Department of Public Municipality Works and Social Development, made EPWP presentations to Tokologo and Mohokare Municipalities on 7 June 2011 • North West, September 29, 2011 at Dr Kenneth Kaunda and 9 March 2012 respectively with the view to encourage District Disaster Management Centre. The MDG event both municipalities to register social sector projects on EPWP. has led to establishment of working relations with Stats Subsequent to the presentation, Tokologo registered drilling South Africa which is envisaged to benefi t municipalities and development of boreholes (one in Boshoff and the other in by their data being verifi ed by StatsSA. Municipalities Hertzogville) which created 19 jobs for residents of Tokologo. are also aware of the importance of reporting on the delivery of MDG. Of the 19 jobs created by the project, two (2) benefi ciaries were women. Mohokare Municipality has identifi ed projects • North-West, September 29, 2011 District Disaster following the presentation in March 2012. The projects are Management in the process of registration. EPWP is one LED strategy that seeks to improve the socio-economic status of women, youth • Free State, October 11, 2011 at Mangaung Metropolitan and people with disabilities, alleviate poverty, address the Municipality MDG on the eradication of poverty, and input on the national agenda of fi ve million jobs to be created by 2015. • Gauteng held on February 14, 2012 in Pretoria.

56 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA North West collaborated with the Department of Furthermore, SALGA Northern Cape hosted a roundtable Social Development to hold quarterly meetings that ensured discussion workshop with the Women’s Commission on that all Districts and Local Municipalities establish War Room 16 February 2012. The purpose was to report back on the on Poverty Forums. 90 percent of Municipal Poverty War outcomes of the WIPLGS 2011 as well as to pave the way Rooms are functional and reporting on Poverty Eradication for the WIPLGS 2012. The workshop was also to be used to Interventions. elect the new Chairperson of the Commission. This initiative was done in partnership with the provincial Commission on 2.2. Enhancing governance capacity in gender mainstreaming Gender Equity. in Local Government SALGA Eastern Cape, through the drafting of a Concept In its effort to ensure a capacitated and responsive local Document for Rural Women, including medical male government, the directorate has embarked on developing a circumcision, uKuthwala and teenage pregnancy, supported Work Plan for the SALGA Women’s Commission (SWC). This municipalities that participated in the sitting of Women in was approved by the national working group, which was Traditional Leadership (EC House of Traditional Leadership established in the 2010/11 fi nancial year. Chamber in Bhisho). This was done to encourage Women in Traditional Leadership to play their roles effectively in the The work plan for the SWC seeks to ensure resonance between development of traditional communities situated in poor rural the operations of both the provincial and national chapters communities. of the SWC. This willb e done by guiding the commissioners on strategic activities and engagements, articulating key SALGA Mpumalanga facilitated the establishment of the outcomes, and identifying the desired results areas necessary Special Programmes / Transversal Coordinating Forum on for moving the local government sector to an inclusive, 16 August 2011 which is a forum that brings all stakeholders capacitated, and gender-balanced state. dealing with transversal issues to share plans and to partner in advocating and implementing transversal programmes at SALGA Gauteng convened a Women’s Commission workshop municipal level. on 22 August 2011. The purpose was to develop a fi ve- year Program of Action for the Commission, report on the SALGA Mpumalanga developed guidelines on mainstreaming outcomes of the local government elections in relation to of transversal issues and a Community Development Manual 50/50 representation of women, and launch the Gender for Councillors to give support to all municipal offi cials and Based Violence indicators research fi ndings conducted by councillors dealing with community development issue. Both Gender-links and Gender Justice Alliance. It was clear from documents were workshopped from 6 to 7 December 2011 the discussions that the country has come a long way since with municipalities. its fi rst local government elections in 1995. SALGA was able The aim of the Guidelines on Mainstreaming Transversal to take stock of what has been achieved in terms of women Issues is as follows: representation and infl uence that Local Government has had in governance structures. • To assist municipalities in understanding the concept of mainstreaming of all transversal/special programmes SALGA Northern Cape hosted its Women’s Summit on 26 within municipal programmes. November 2011 with 87 participants in attendance. The summit coincided with the offi cial opening of the 365 Days • To defi ne the context for the mainstreaming of campaign of no violence against women, people with disabilities transversal/special programmes in local government, and children. The NC House of Traditional Leaders was also highlighting specifi cally the Integrated Development invited in to give support to municipalities especially to ensure Planning process. that rural women are empowered to access traditional land.

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• To outline, in detail, mainstreaming activities in can share issues pertaining to municipalities and other issues the different components of the transversal/special related to their empowerment (women caucuses). It would programmes. For instance, mainstreaming youth, also provide an environment to assess whether the 50/50 gender, disability, and HIV and AIDS. campaign had made an impact in the 2011 elections.

The aim of the Community Development Manual for Councillors On 14 March 2012, SALGA Limpopo convened a workshop was to to appropriately equip MMCs with knowledge and with municipalities to address gender-based violence and HIV. expertise on areas of community development. GBV, assault, rape, assault with intent to do grievous bodily harm are social actions that have been shown to place women SALGA Free State established Provincial SALGA Women’s and children at particular risk to HIV infections. Therefore, Commission on 9 March 2012. The structure will oversee the for municipalities to deal with GBV and HIV, they need to development of gender policy, strategies, and programmes in have a multi-sectoral approach. This means that all relevant the province. stakeholders must come together in order to understand the response to epidemic. SALGA North West hosted the following: Municipalities also need to take into consideration the National Women in Local Government Summit on 12 to • and Provincial strategic Plan for HIV, STI and TB 2012 to 13 October 2011 in Mahikeng. This provided the 2016. This states that the main strategic objective is ‘Social platform for women councillors to share information and Structural Approaches to HIV and TB Prevention, Care, and challenges. Information on the representation in and Impact.’ Local Government was also shared with municipalities with a view to continue with the 50/50 campaign. The sub-objectives read ‘Mainstream HIV and TB and its SALGA women commissioners were elected at the gender- and rights-based dimensions into the core mandates municipalities and the provincial structure has been of all government departments and all other sectors of the put in place. Provincial Aids Council - Ensure implementation of gender based violence action plans.’ • Provincial Workshop on Gender Machinery and Mainstreaming of other Transversal Issues was held on BEST Practice model-Capricorn Municipality: The district 7 to 8 September 2011 at Ramotshere Moiloa Local became one of the participants at the summit and awards Municipality. The Newly appointed special programme under institutional good practices. It received the second managers beneﬁ ted from the Capacity Building position in 2010 and 2011. The award made SALGA to be one Workshop. of the Centres of Excellence that is committed to institutionalise gender mainstreaming within their communities. The district Provincial Workshop on Transversal Issues for • managed to undergo and ﬁ nished the six stages of Centre of Councillors was held on 26 to 27 March 2012 at Moses Excellence. Kotane Local Municipality. Councillors were exposed to understanding the concept of mainstreaming and their SALGA Limpopo hoped that the Men’s Indaba which took place role of providing oversight in this regard. on 10 February 2012 generated awareness and mobilised and strengthened men’s formations within municipalities. It was SALGA Limpopo celebrate Women’s Month on 14 September hoped that the indaba would move their responses towards 2011 by facilitating the exchange of experiences on gender equality, masculinity, and patriarchal tendencies, challenges faced by elected women leaders and managers in Gender Base Violence and HIV and Aids and the effects it has local government. It came up with strategies for strengthening on the society. Men also believed that the indaba would assist its role and leadership capacity to effectively deliver service in laying a foundation for a sustainable future programme delivery to create an environment where women councillors regarding men’s issues in all municipalities.

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2.3. HIV and AIDS Mainstreaming SALGA Limpopo in partnership with the Offi ce of the Premier and Department of Health convened a learning event where The directorate has continued its ongoing endeavour of 40 people which are municipal managers, mayors and HOD entrenching capacity in local government for a sustained and other offi cials attended the event on 2 March 2012. response to the scourge of HIV and AIDS. To this end, SALGA continues to roll out capacity-building workshops on the HIV The objective of the gathering was to ensure that all municipal and AIDS Handbook and completed the rollout in Gauteng leaders serving in the AIDS Councils and AIDS Council province which had not been covered in the previous fi nancial Technical Committees are capacitated about their roles and year. responsibilities in line with the Limpopo Provincial Aids Council Framework, regarding the management and mainstreaming SALGA Gauteng hosted an HIV and AIDS learning event on 23 of HIV, AIDS and TB in the Province. The following district to 24 November 2011. The purpose was to roll out the HIV and managed to re-estblish their aids council in line with the AIDS handbook that would provide guidance to municipalities frame are Capricorn and its municipalities, Vhembe and its on how to respond to HIV and AIDS. The workshop enjoyed municipalities and Sekhukhune and its municipalities. attendance from participants drawn from Randfontein and Westonaria local municipalities with the former having the During the event, SALGA managed to present the Provincial highest attendees. In total, 42 participants attended the Strategic Plan for HIV, STI and TB of 2012 to 2017 and also workshop. Unofrtunately, the workshop did not reach the Operations of KZN Provincial AIDS Council and Operation targeted attendees of senior management. Therefore, separate Sukuma Sakhe -The origin of Masisukume Sakhe, which is the workshops need to be arranged for this category of municipal motto on the crest of the Provincial Government of KwaZulu- employees in the two municipalities. Natal, is taken from the Prophet Nehemiah 2:18, where he yearns to rebuild a city that has been destroyed. SALGA Free State, in partnership with the Department of the Premier, Provincial Departments of Health, and CoGTA, SALGA Limpopo had also support Greater Tubatse and Musina established and re-launched the AIDS Councils (Xhariep Municipality with the establishment of their Aids Council District AIDS Council on 6 October 2011, 4 December 2011 because when people with HIV and tuberculosis are constantly Moqhaka Local AIDS Council, 8 December 2011 Tswelopele on the move, it becomes extremely diffi cult if not impossible Local AIDS and Matjhabeng and Mantsopa Local AIDS for them to remain adherent to treatment, especially when Council). Dihlabeng, Nala, Maluti a Phofung, Mohokare and they are initiated in another country and carry no records with Matjhabeng Local AIDS Councils were also launched and them when crossing borders. given induction by ETU on Roles and Responsibilities of AIDS Councils. People should not forget that Musina Municipality is in the focus of migrate activity and thus should be given attention SALGA North West in partnership with the Provincial in terms of accommodating cross border elements/challenges Department of Health and the Provincial Council on AIDS that might rise. Tubatse Municipality is also affected with the (PCA) collaborated to host the 2011 World AIDS day on 01 new development hence we know that people will be migrating December 2011 in Boikhutso Township in Ventersdorp (Dr from other places to Tubatse looking for better life. According Kenneth Kaunda District). SALGA developed a declaration to Sishana et al., 2005; Williams et al., 2000, HIV incidence which was signed by MEC’s and Mayors recommitting and prevalence are particularly high in places where migrant themselves to the fi ght against HIV/AIDS. 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).

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2.4. Youth Development: Economic Development and • To promote economic diversiﬁ cation and Entrepreneurship entrepreneurship development in South Africa

Youth Development has emerged as a critical factor in the • To promote public, private partnerships among small advancement of South Africa’s socio-economic growth and and medium enterprises. development path. In fulfi lling the role of SALGA as a base of support and advice to member municipalities, the Community This and ongoing interactions with Y-AGE, the National Youth Development directorate has in the 2011/12 fi nancial year, Development Agency and other stakeholders has placed sought to establish strategic partnerships with organisations SALGA at the centre of coordination efforts between role players that have emerged as key actors in driving the youth in the fi eld of youth development and municipalities; and thus development agenda. positioning SALGA as a conduit of information and learning to municipalities, thereby supporting municipalities to better SALGA, in partnership with Youth and Graduate Development integrate youth development in planning and programming. Programme (Y-AGE), hosted a municipal consultative conference on youth economic development and SALGA Northern Cape held its provincial youth conference entrepreneurship. The aim of the consultation was to bring from 22to 23 March 2012 in Upington in partnership with together local government, national government departments, Y–AGE and Siyanda District. Approximately 105 youth civil society organisations, the private sector and other representatives from various structures attended. interested groups to engage in constructive dialogue towards The conference sought to explore areas of collaboration and progressing youth development in the municipal space. cement systematic relationships among various role players. The Y-AGE Programme is an initiative that is based on the This was in order to align the strategy with the new policy principle of augmenting and enhancing government efforts imperatives and development since the development of to make youth entrepreneurship and job creation efforts the strategy in considering that the strategy was developed realisable with the ultimate interest of seeing young people in 2007 as well as to establish functional youth units within participating in the mainstream economy. municipalities.

The programme seeks to encourage role players in youth Discussions between the NYDA and SALGA led to a decision development, entrepreneurship, supplier development, Small, to explore ways of cooperation, harmonisation, synergy and Medium and Micro Enterprise (SMME) funding, and so on to alignment in terms of both policy and action. A decision was share resources and information to make youth development taken to have a workshop at which exploratory discussions initiatives effective and sustainable. could be had agreements reached on areas of shared concern in the area of youth development. It was agreed that SALGA The objectives of the conference were as follows: should host roundtable workshop on youth development.

• To facilitate a National Consultative Conference on The objectives of the workshop were set as: youth economic development and entrepreneurship to municipalities. • To jointly deﬁ ne and have a common understanding on youth development and the role of local government in • To present a multi stakeholder approach to enhance promoting the development of youth; youth development and unlock local economic development • To provide an opportunity for stakeholders to be informed and to discuss existing policy imperatives and • To seek collaboration from municipalities to provide strategies around youth development; opportunities and support to local entrepreneurs.

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• To explore areas of collaboration and forge working the implementation of ECD programmes among various role relationships in advancing youth development within players. The objectives of the roundtable were: local government; and • To assess mechanisms towards bridging the gap • To develop a series of ‘Agreements on Action’, between policy and practice, thus promoting effective informed by the roles and responsibilities of the various coordination, implementation and accountability stakeholders. • To provide a platform for stakeholders to engage and The SALGA Limpompo in partnership with Y-Age convened articulate their concerns as well as outline possible a Provincial Youth Economic Empowerment Consultative areas of support and coordination Conference on 7 to-8 March 2012 at Bela Bela Aventura at Waterberg District with 128 delegates. • To consult with stakeholders who are working in the sector with a view of recording successes, challenges, The consultative conference was informed by the resolution gaps and sharing good practice taken at conference held national in December 2011 that there is a need to consult with municipalities on rolling • To engage in joint participatory planning as stakeholders out the youth programme in different municipalities and (including civil society organisations, NGOs and CBOs) addressing economic development needs in line with creating who are often in touch with the current reality in entrepreneurial activity in the province and ensuring that the communities programmes of youth are integrated in the day to day activities The programme consisted of a combination of presentations of municipalities. from key stakeholders involved in the implementation of ECD The consultative conference were attended by councillors and including open discussions. Overall, the programme was offi cials that are responsible Local Economic Development and designed to create a platform for deliberations that will begin Youth issues in the Municipalities, Department of Economic to formulate recommendations in response to issues and Development and other sector department. challenges facing the implementation of ECD programmes for local government. In this way, SALGA has begun to defi ne a 2.5. Children position in which it will be able to effectively lobby for local government. One of the functions of SALGA is to provide support and advice to member municipalities wherein this encompasses SALGA Eastern Cape supported Amathole DM in establishing policy analysis, research and monitoring as well as knowledge the District Children’s Technical Committee for the already- exchange in order to assist them to effectively execute their established Children’s Rights Advisory Council, and to draft mandate. a District Outreach Programme on Child Traffi cking/Child Protection Mechanisms; Advocacy and Policy Development The directorate, in partnership with UNICEF, hosted the and Analysis; Early Childhood Development (ECD) and roundtable meeting on early childhood development. The Orphans and Vulnerable Children 9O VCs); and Research and purpose of providing a platform for various stakeholders to Information-sharing. amongst others; jointly defi ne and create understanding on the Early Childhood Development (ECD) programme, to SALGA Limpopo hosted two Children’s Camps during explore areas of collaboration, enhance coordination and December 2011 in partnership with Childline. The children’s forge partnerships. camp was graced by 10 Limpopo municipalities with 47 children attend the event where they were dealing issues of The meeting served as a learning hub where there was service delivery and life skills. dialogue and exchange of information on how to advance

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Free State SALGA in partnership with United Nation on in the built environment, inaccessible service points, and poor Children’s Fund (UNICEF), held a workshop from 20 to 21 town planning including basic accessibility to facilities. March 2012, wherein 17 Councillors and Ofﬁ cials attended. The purpose of the workshop was to create an understanding The following municipalities were audited: Fetakgomo, on the Convention on the Rights of the Children and the role Ephraim Mogale, Thabazimbi, Baphalaborwa, Maruleng, and of the Local Government in the realization of such rights. The Musina Local Municipalities. The challenges in most of these focus was more on Early Childhood Development and the role municipalities are that some have the facilities which are used of Local Government. for other purposes because there are no people living with disability that are the facility (bathrooms) and people living 2.6 People with disabilities with disabilities are mostly at the reception because it is easily accessible. SALGA Eastern Cape supported Eastern Cape municipalities (especially DMs and the two Metros) to participate in The intervention is that there is a serious awareness that need discussions aimed at establishing the Disability Reference to be conducted in the municipalities around Reasonable Group with stakeholders such as the Eastern Cape Disability accommodation. Economic Empowerment Trust (ECDEET), the SA Human Rights Commission, CGE . Further, SALGA Eastern Cape 3. OTHER PROJECTS: provided support to Matatiele LM by facilitating Disability Leadership Skills and Economic Empowerment Workshop to 3.1 Moral Degeneration: mainstream and integrate disability issues into the municipal budget and IDP. SALGA Gauteng convened the Moral Regeneration workshop on 6 March 2012, with an aim to create a platform for SALGA Northern Cape supported municipalities by hosting a member municipalities to engage on strategies that will help two day capacity building workshop on the Disability Framework in addressing moral decay in communities. from 19 to 20 March 2012.The Ofﬁ ce on the Status of Persons with Disabilities (OSPD) and Disabled People South Africa Furthermore, the forum aimed at lobbying member (PDSA) formed part of the discussions and highlighted their municipalities to take a lead in driving the moral regeneration roles and responsibilities in the mainstreaming of disability project, with all relevant stakeholders. The workshop was well programs. The Disability Audit Results 2012, were also shared received by members, and it was noted that the programme with the member municipalities with the aim of promoting should be implemented at Merafong Municipality as a starting disability friendly municipalities, proper planning and budget. point.

SALGA North West conducted a physical assessment in The stakeholders emphasised that there is a need for 23 municipalities and advised with regard to user friendly cooperation between them and SALGA in order to spread the municipalities for people with disabilities. Individual moral regeneration massage. The proposed initiatives were municipalities Assessment Outcomes Report have been welcomed and it was agreed that communities should be the shared. Municipalities are to develop plans to correct shortfalls centre of the programme to ensure that all sections of the identiﬁ ed. Further, an Assessment regarding representation community take part in agreement of their values. (Councillors) and recruitment (Ofﬁ cials) with disabilities was conducted and information thereof, shared with municipalities. 3.2 Migration: As a result municipalities are better placed and informed on SALGA Gauteng facilitated the Migration Round Table how to set targets in their Equity Plans and Recruitment Plans. Discussion on the 6th of March 2012, with an aim to come up SALGA Limpopo supported and implemented the resolution with SALGA Gauteng position paper on how to better deal with which is advocating for an audit to address structural barriers migration challenges that are faced by member municipalities,

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

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

3.3 Policy Development

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

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

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PRIORITY OBJECTIVE 04: 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 2011-12 FINAL PERFORMANCE

Not Achieved 1 2%

Fully Achieved 45 98%

unemployment, and with all rural development initiatives MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION being implemented in “municipal space”, it is crucial that BOTH IN URBAN AND RURAL AREAS the role of the local government sector be clariﬁ ed on rural development. The clariﬁ cation of the role of municipalities In order to gain insight into some of the practical experiences in rural development will ensure that municipalities play a of stakeholders in rural development, SALGA and the CLGF meaningful role in sustainable rural development initiatives. conducted a workshop (11-12 August 2011 in Polokwane) and an information dissemination seminar (4-5 October 2011 As part of preparing the continuous engagements of SALGA at Birchwood) that was attended by a wide spectrum of rural on the draft Spatial Planning and Land Use Management development practitioners from municipalities, provincial and Bill, two workshops were held 2 and 29 June, respectively. national governments as well as international participants from The workshops were attended by a wide spectrum of India, Ghana and the United Kingdom. stakeholders that included municipalities, provincial and national government representatives. Municipalities engaged The two engagements provided a platform for the various on the content of the Bill and also deliberated on some key stakeholders to share their experiences and challenges in issues affecting the local government sector. Subsequent to rural development and also generated perspectives that that, SALGA draft comments were developed on the Bill and contributed to the recommendations that are contained in the submitted to the Department of Rural Development and Land draft position paper. A draft position paper (on the role of local Reform. government in rural development) was developed and tabled at the National Working Group meeting on 24 February 2012. The draft comments on the Bill were later tabled at the National Working Group meeting and at the NEC of 24 February 2012 The same position paper was also tabled at the EMT meeting and 28 March 2012, respectively. SALGA created a platform for in March 2012. With rural development being one of the municipalities to engage with the draft Bill, which is one of the key government strategies to deal with rural poverty and

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key pieces of legislation that will impact on how municipalities SALGA also prepared and submitted comments on the draft undertake municipal planning. The national task team that Simplifi ed IDP Framework for B4 municipalities, which was SALGA set up to deal with the Bill ensured that views of the prepared by the Department of Cooperative Governance and municipalities on the Bill are addressed in a coordinated Traditional Affairs. The need for continuous engagement manner thereby giving a voice to the local government sector. with SALGA and the affected municipalities as well as the implications for municipalities were highlighted and should In the Eastern Cape the Land use planning seminar which form the basis of fi nalization of the simplifi ed framework. The recommended that a councillor development programme on inputs of SALGA ensured that the issues affecting the local planning to be developed was convened. A planning forum was government sector are adequately addressed in the policy also established on 30 September 2011 to discuss planning formulation process. SALGA identifi ed a number of key issues matters that affect municipalities, the issue of cumbersome in the draft green paper that need clarifi cation as they may planning legislation within the Eastern Cape Province as well have a bearing on the functions of municipalities. as the need to develop legislation that best suit the Province. 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 • Defi ne the terms that are used in the green paper with regard to the development of Spatial Development Frameworks, land Use Management Systems and GIS was • Clarify the scope of application of the Green Paper developed and submitted to the National Working Group especially with regard to the rural urban dichotomy. meeting. In total, 26 municipalities were provided with fi nancial Defi ne the role of the local government sector in land support in the development of credible Spatial Development • reform. Frameworks in line with the spatial development framework guidelines. • Provide detail on how the four tier system of land ownership will operate and what type of land will be SALGA is partnering with the department on how support is affected. given to municipalities. Besides coordinating the support that the Department of Rural Development and Land Reform is • Clarify the functions and powers of the Land providing to municipalities, the facilitation of support ensured Management Committee and how they relate to those that municipalities that are in greatest need received the of the local government sector. necessary support. • Clarify the relationship between the OVG and the SALGA developed an input on the proposed green paper Department of Cooperative Governance (DCoG) who on land reform and specifi cally focused on the proposed is the custodian of the Municipal Property Rates Act institutional arrangements and their potential impact on the (MPRA) role and functions of municipalities. Besides the SALGA comments that were submitted to the Department of Rural A simplifi ed IDP Assessment framework for smaller Development and Land Reform on 8 February 2012, SALGA municipalities is one of the requirements of the LG Turnaround continues to serve on the various reference groups on the Strategy. The preparation and eventual implementation of Green paper on land reform such as the Offi ce of the Valuer the simplifi ed IDP framework will give effect to differentiated General, Land Rights Management Board and the Land Rights approach to municipal planning and assist in improving Management Commission and continuously provide input into service delivery. policy proposals.

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ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND economic planning though there are those which are sector STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED specifi c. This was taken forth to convene a knowledge sharing SERVICE DELIVERY session for the promotion of these forums wherein case studies, approaches to community planning facilitation were An analysis of IDP assessments in the district and local presented. The outcomes were the much knowledgeable LED municipalities in Mpumalanga and Limpopo was conducted practitioners, an awareness of the role which stakeholders and key recommendations were made with regard to areas that play and having a body of knowledge base to draw from for require improvement in order to move towards the formulation guidance. of credible IDPs. In particular, SALGA identifi ed diffi culties with some municipalities when it comes to the preparation of PROMOTE AND IMPROVE THE EFFECTIVENESS OF MUNICIPAL specialised sector plans. LED

In order to facilitate the development of credible IDPs, SALGA The South African LED Network is a dedicated project of recommended the need for the IDP assessment reports to SALGA which is supported by Gesellschaft fuer Internationale focus on reasons for the identifi ed short-comings as well as the Zusammenarbeit (GIZ). The membership base of the SA LED actual content of the IDP documents. There is therefore a need network has increased substantially in the past few years, for a more structured and detailed assessment process that especially after its move to SALGA. not only focus on the substantive issues in the IDP document, but also deals with issues of the actual implementation of The more than 3 500 registered members of the SA LED the IDP, given the resources that are at the disposal of the Network include local, provincial and national government municipalities. offi cials, consultants, the private sector, academia and other organisations working on the development of local economies. The identifi cation of areas in municipal IDPs that require The LED Network is a Web-based platform which strives to improvement will result in better service delivery when become the leading source of knowledge and information municipalities begin to produce credible IDPs that are also in the area of LED by fostering the exchange of ideas and aligned to the budget. In Gauteng, the assessment of LED creation of synergies in and around LED at local government strategies was conducted in the provincially led 2012/13 IPD level in South Africa and beyond. review where recommendations were provided. The SA LED Network disseminates good practice and supports The assessment undertaken also focused on the functionality dialogue on the question of “what works and how”, informing of LED and provincial forums. The results indicated an and encouraging municipal practitioners to develop their own insignifi cant ratio of fully functional forums dedicated for local localised strategies for economic development.

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The LED Network offers the following free-of-charge services • A platform for networking amongst practitioners from via its Web platform www.led.co.za: different sectors as well as topic speciﬁ c Communities of Practice. • Good LED practices (through a tested case study methodology); 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 • Preparation of A councillor’s guide to LED in South Africa learning across disciplines; 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, • Research and write-up of 11 case studies for various small town regeneration, agriculture, SMMEs and more; partners, including the IDC and DBSA in 2011.

• Free access to thought leadership, news, events, tools, • Development of a Community of Practice (CoP) for publications, job opportunities etc, through a large LED Economic Development Agencies in 2011 on behalf of library, newsletters and newsﬂ ashes; the IDC which will subsequently be launched in May 2012.

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• In the process of developing a Community of Practice The main activities of the LED Network in 2011 included: (CoP) for the Economies of Regions Learning Network (ERLN) on behalf of National Treasury. • Intensive marketing and dissemination to increase membership, particularly amongst local government • A cooperation project with the Local Economic LED practitioners Development Network of Africa (LEDNA) titled ‘Innovative local government practices and approaches • Improvement of website features to increase interactivity towards the informal economy’. The fi nal product will and user-friendliness be a collection of case studies from across Africa, Development of own content in the form of LED case including South Africa, published and disseminated at • studies (to a large extent funded by DBSA and IDC) the Africities Conference in Dakar, Senegal in December 2012. • Maintaining and expanding networking and information services through daily content updates, weekly During the year under review, SALGA guidelines and Generic newsfl ashes and 3 printed newsletters Informal/Street Trading Policy Framework was produced in January 2011 with the support of Metros and the Small • National Conference exhibition on LED and the launch Enterprise Development Agency (SEDA). of a Councillor Guidebook to LED for newly elected Councilors and offi cials The guidelines were been updated after extensive consultation with provincial and municipal government, as well as a • Maintaining existing and developing new partnerships number of stakeholders representing the interests of the with key national and international organizations in the informal economy. The draft guidelines were distributed to a fi eld of LED wide audience of stakeholders (including StreetNet, Cosatu and the ILO) as well as all SALGA provinces for input from • Development of three case studies funded by the municipalities. Three provinces (Free State, Eastern Cape DBSA Redi programme in Theewaterskloof Local and Northwest) engaged on these through workshops with Municipality,Cacadu District Municipality and Ugu municipalities. Other SALGA Provinces provided written District Municipality. feedback. A fi nal consultative workshop, which included over 30 stakeholders from government, labour and the informal • Development of a new Community of Practice online sector, was held on 16 March 2012. tool for economic development agencies funded by the IDC This provided for the fi nal input into the document. Municipalities face a number of challenges in developing and For SALGA, the purpose of hosting the SA LED network as implementing policy that creates an enabling environment for a dedicated and resourced project, would be to support the the informal economy, and balances the needs of a diverse local government LED agenda and to use the resources of the group of stakeholders. network to address specifi c needs and interests facing LED offi cials within municipalities. SALGA wishes to encourage municipalities to embrace innovative thinking in this area, by viewing the informal SALGA, implemented the Good Practice Scheme Project economy as an important part of Government’s strategies (GPS), which is targeting fi ve municipalities in South Africa. to address unemployment, support livelihood creation and The focus of the project is Local Economic Development reduce vulnerability. The SALGA guidelines are designed to (LED) and it seeks to address the LED capacity challenges of support the development of policy that assists municipalities targeted municipalities. to move from a fragmented to an integrated approach in respect of the informal economy.

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The Scheme promotes mutual exchanges, learning and • MLM should develop its own corporate image strategy good practice between partner municipalities. This was done that seeks to defi ne what the Municipality is all about through technical exchanges, collaborative working, pilot and how it is perceived by the external investors. projects, and sharing of good practice. The project is part of the wider Commonwealth Good Practice Scheme Project • The MLM partnership with Sunderland has exposed the (GPS) which is being implemented in six Commonwealth municipality to a number of ways of dealing with land countries namely India, Ghana, Jamaica, Sierra Leone, South availability i.e. using land owned by the municipality if it Africa, and Pakistan. is available, arranging to purchase land for development from the owner, or entering into three-way partnerships The fi ve municipal partnership projects in South Africa are as with the land-owner and the developer alongside follows: the City Council. This combination of approaches increases the opportunities for Sunderland to attract • Mbombela Local Municipality (MLM) and Sunderland inward investment. MLM has learnt that their spatial City Council (SCC) (United Kingdom) development framework should be revisited to identify land that can be reserved or zoned for business and Steve Tshwete Local Municipality (SLM), eThekwini • make sure that the proper infrastructure is in place Municipality and Leeds City Council- (SA; United before attracting outside investors. Kingdom) • The organisational structure of the Council and the Mopani District Municipality (MDM) and Trivandrum, • economic unit is clearly defi ned in Sunderland, Kerala, (India) which enables them to know exactly who does what, and each fi eld has its own specialist which makes it • Vhembe District Municipality and Gondal (VDM) Local easier to achieve their goals. MLM has also noted that Municipality Gujarat, (India) Sunderland practice team work remarkably well which • Amathole District Municipality (ADM) and Glasgow City is a key learning point for the municipality. Council (UK) • MLM has learnt that it takes time for a Municipality to Local Government benefi ted from these partnerships through be successful. For instance it took some time for SCC shared experiences, mentoring, and exchange of international to get where they are today. SCC has taken their time concepts. This project brought South African Local researching the strength of the city and they formulated Municipalities on the International platform with provided clear goals on what they wanted to achieve. The whole some of the best International experiences that benefi tted process was done in harmony with the political heads so Local Municipalities. that there could be no division between the politicians and the administration. The LED unit recommends the The following key lessons were learned: same for MLM to ensure its success.

• In order to attract investors to the Municipality, the • The importance of stakeholder engagement and Municipality should have an Investment Incentive and relationships with these stakeholders is important for Promotion policy which can lure investors into the area. the success of the Municipality.

• The LED Unit in a municipality should create • Enhanced Integrated approach to project management: opportunities and an enabling environment for SMME The Integrated Development Planning (IDP) process as it can provide a number of employment opportunities emphasises an integrated approach to planning and to the community. implementation of government projects by all three spheres of government. The relationships between

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MDMs and the Limpopo Department of Agriculture, align their LED strategies with key priority areas of government through the GPS programme, have assisted in both provincially and nationally. enhancing the integration and alignment of projects particularly the four in which the department is engaged LED MATURITY ASSESSMENT TOOL with. With fi nancial support from CMRA and the VNG-International • Job security: Although other practices that are found LOGO South Program (The Dutch Municipal / SA partnership), in India (Trivandrum) may not be easily imported to SALGA was in a position to continue onto Phase II of the LED South African conditions, it is important to highlight that Maturity Assessment Tool. according to MDM the Job Security model which gives locals rights to be employed for a certain number of days The training phase had two components. Firstly the training per annum is something that can be explored in future of SALGA provincial programme managers and LED advisors as it needs buy in from higher levels of government. and secondly the practical assessment of municipalities by SALGA provincial Programme Managers and LED advisors • The Kudumbashree model: Empowerment of women is piloting the tool. one of the policies of the South African government’s quest to reduce inequalities among different sections The following municipalities were targeted: Rustenburg, of the South African society. The Indian model has Naledi, Dr Ruth S Mompati, Ekurhuleni (Metro), City of assisted MDM in exploring how the Municipality can Tshwane, Emfuleni, Oudtshoorn, Langeberg, Govan Mbeki, best serve the interests of women to become active and Camdeboo, Emalahleni, and Buffalo City. In total, 20 SALGA powerful actors in the mainstream economy. From the and Municipal offi cials were trained as assessors and 13 Indian model the District has learnt that it is through municipalities across all municipalities were assessed. organised and government assisted structures that women can be assisted. From a SALGA perspective, the outcomes of Phase II included empowering SALGA provincial LED offi cials with knowledge of • The level of Agricultural education: Learning from the LED Maturity tool that they can use to assist municipalities their Indian counterparts, the district has learnt in understanding, developing and implementing better LED that agriculture is administered by highly qualifi ed strategies. government offi cials such as agricultural engineers. This has challenged the Executive Mayor of MDM, His CLGF PROJECT Worship Councilor Joshua Matlou to offer three students of Selwane village, where one of the projects is located, The Good Practice Scheme project which was a three year to study Agriculture at any South African University. project ended in October 2011. This is a report of the project from March 2012 up to the end of project. The report highlights SALGA Eastern Cape hosted LED roundtables within two the project results. The period of reporting coincides with the District Municipalities. The impact was that both politicians end of project and the report will also cover the results of the and offi cials to create a common understanding of what LED project as a whole. While at the national level the projects were means and also create a platform for information sharing, focusing mainly on completing the projects, at the national where municipalities were able to learn from best practices level the focus was dissemination of good practice and within the Province. development of policy positions on emerging issues from the projects. During the year under review, a workshop was hosted in the Eastern Cape Province on LED alignment which was the fi rst of eThekwini Municipality, Steve Tshwete Local Municipality its kind. The workshop highlighted why municipalities have to and Leeds City Council project focused on setting up tri-

70 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

partite partnerships focusing on improving the sustainability produce from Vhembe, and an offi cer from the Department of of SMMEs through increased capacity to bid for and win local Agriculture was seconded to help to manage the process. The tenders, and to increase the capacity of the municipalities to project established a seedling nursery to supply farmers and support SMMEs to enable them to meet this objective. 10 direct jobs were created, this number will rise to 20 when the nursery is fully operational. This project resulted in a number of service improvements in eThekwini Municipality including improved, accessible and Following the master training programme in cooperative transparent procurement system established, including new management in Junagadh University in India, a programme tender materials, to increase the number of municipal and to train farmers in Vhembe was designed. Artists and craft corporate tenders awarded to local BEE SMMEs. eThekwini workers, who were previously working independently, formed Municipality ran a number of SMME empowerment workshops themselves into around 20 cooperatives (approx 60 jobs), and fairs to engage with the local SMME community and start and although not yet complete, there are plans to open up businesses which involved 9 300 people including 350 on a dedicated market facility. Based on the projects which a women’s empowerment workshop. Vhembe studied in India, e.g. check dams for irrigation, and the Amul cooperative model which introduces a value chain This resulted in raising awareness of municipality services and approach, the technologies will be refi ned for the Vhembe routes for future support. The municipality ran the innovative context and piloted in 2012 with the support of the Further Lion’s Den competition as another way of providing business Education College. support and training, providing business exposure for new businesses and access to markets. The partners mobilised Mopani District Municipality and Thiruvanthapuram District and worked with local businesses and intermediary business Panchayat, India project focused on building the capacity of the organisations in the city on the initiative. In Steve Tshwete local authority to support, train and facilitate the establishment the new procurement policy and processes were consulted of pilot projects to support LED in the agricultural sector. on, designed and implemented. In addition new tendering The LED focus of the Municipality was shifted signifi cantly guidelines, based on those produced in eThekwini, but tailored towards agriculture as a result of the project with increased to local needs were developed and made available. The project skills development and training for offi cials resulting in a signifi cantly improved relationships between the municipality, departmental focus on working more closely with farmers and the local business community, chamber of commerce, and developing pilot projects in the community. the Business Linkage Centre, evidenced by joint working on outreach events, and a service level agreement signed to The Municipality adopted a mobile soil testing system from share the database of local businesses developed through the its partners in India and having adapted the service for local project. use, trained the offi cials and fi eld tested it, it is due to be rolled out shortly and it is expected that it will reduce the Vhembe District Municipality and Gondal District (India) costs of cultivation, recommend appropriate fertiliser, improve project focused on poverty alleviation through creation absorption by plants, help to improve the economic status of of jobs in agriculture, handicrafts, tourism, and pro-rural farmers. Other pilot projects in banana cultivation, goat and development. The project partners developed and opened the pig rearing, and micro irrigation are being established on Alilai fresh produce market, using the Safal Market Model which Farm and if successful will be rolled out to other parts of the empowers farmers to deal directly with suppliers through their Municipality. cooperatives, resulting in 20 new jobs. Amathole District Municipality/Buffalo City Metropolitan The partners estimate that a further 2 000 jobs in farms were Municipality and Glasgow City Council worked together to created due to the improved market access. Agreements were establish an integrated marketing and events bureau for ADM entered into with Johannesburg Market and Tshwane to buy and BCM to assist in growth the tourism industry by providing

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a platform to market and position the location and its products “identifi cation of a means of identifying skills needs of local nationally and internationally. unemployed people and facilitating support and training to enable them to access employment”. The partners undertook The project provided support for the establishment of credit a skills audit by ward, summarising the support they felt was unions in the tourism sector to support disadvantaged needed and this helped to identify the fi rst Job Linkage Centre communities and provided leverage to develop a lighting within the Municipality. initiative. Following consultation and a detailed design process, a joint marketing bureau is being established and is expected EPWP to demonstrate result in an increase in visitor numbers to the region and job creation opportunities in the sector. In the Free State, the EPWP roundtable was convened with the fi ve municipalities that are slow on reporting on EPWP A lighting strategy was developed for the city and two pilot progress. projects will be completed in the fi rst quarter of 2012 to demonstrate the potential for increased tourism and extension P3 of the trading day for local businesses. The credit union policy was developed and two credit unions were set up as a result. P3 is a partnership project between the Swedish Association of Local Authorities and Regions (SALAR), the Botswana Mbombela Local Municipality and Sunderland City Council Association of Local Authorities (BALA), the Association for worked together to reduce unemployment in MLM by promoting Local Authorities in Namibia (ALAN) and SALGA, the South inward investment, creating an attractive environment for African Local Government Association with funding support business and preparing the local workforce to take up new from the European Commission, and Swedish International job opportunities. An inward investment policy was developed Development Agency. and the Municipality has strengthened its links with the private sector. The objective of the Local Leadership for Growth and the Transparent Local Government Components of the project was As a result of this, they have attracted their fi rst major to build the capacity of local associations to provide technical new investor (ZAR 44 million) resulting in 100 new jobs. support to municipalities. In South Africa, the project was A further 45 new jobs were created as part of the Tourism piloted in three provinces and 14 municipalities were selected Ambassador Project. A business portfolio with comprehensive to participate: local business data was completed, and an arts and crafts brochure to support local beaded craft workers with marketing • Eastern Cape Province with Elundini, Lukhanji, Intsika and business support has been developed and their work was Yethu, Senqu, Maletswai, and Emalahleni Municipalities showcased at an international conference held in Mbombela. participating. A central email address enables them to pick up orders. • Free State Province with Mohokare, Setsoto, Kopanong, Following consultations with informal traders Mbombela and Naledi Municipalities built stalls and ablution facilities to improve their trading environment. Access to the area was improved and the • Western Cape Province with Mosselbay, Municipality worked transparently and with the local street Theewaterskloof, Cape Agulhas, and Hessequa committees to allocate stalls. A key output of the project was Municipalities participating.

72 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 5: 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 2011-12 FINAL PERFORMANCE

Not Achieved 7 21%

Fully Achieved 26 79%

SUPPORT AND ADVICE PROVIDED TO MUNICICIPALITIES ON SALGA Gauteng ensured that the Dispute Resolution of the LABOUR RELATIONS MATTERS divisions of the SALGBC are convened and dispense with their duties. SALGA has been chairing the EXCO of the Division and The following municipalities contacted SALGA National thus enforcing attendance by parties to the Division. for advice: Lesedi, Amathole, City of Matlosana, Ilembe, Maquassi Hills, Aganang, Msunduzi, Greater Tzaneen and SALGA has also been assisting the division in communicating Kouga. The Mpumalanga offi ces also requested that we assist with member municipalities on the recovery of wasted in a particular matter. Circulars were issued on JE Award arbitration costs. SALGA Gauteng provided labour advice to and Medical Aid increase. Advice was provided to Lesedi, municipalities on various matters including: Amatole, City of Matlosana. Uniformity in the handling of Appointment of presiding offi cer for a case in Sedibeng labour relations matters within the local government sector • achieved. • Advice on the appointment of staff: Mayoral Offi ce - Lesedi municipality. SALGA Western Cape assisted with 183 written advices to Municipalities for the past year. • Appointment of presiding offi cer for Emfuleni SALGA Free State provided advice on the transfer of municipal • Assistance with Job Evaluation - various municipalities, library workers in the Province in line with section 197 of the namely Mogale City, City of Johannesburg, Ekurhuleni, LRA in a meeting with the Department of Sport, Arts, Culture Lesedi, WRDM, Emfuleni, Sedibeng and Midvaal. and Technology.

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• Advice and appointment of prosecuting offi cer for a Payment of Long Service Bonus, Unpaid leave and Unfair case in Midvaal. Labour Practices. The Municipality was also assisted with the intervened after employees embarked on an unprotected SALGA Mpumalanga capcicitated 29 Presiding Offi cers industrial action and on an unfair dismissal matter on the 30 on disciplinary skills during the training session which was November 2011. conducted from 22-24 August 2011. Mohokare Local Municipality was provided with hands-on A list of trained Presiding Offi cers was distributed to all 21 support with matters relating to contract workers and unfair municipalities for future use. Further, three workshops (one labour practices. SALGA Free State also conducted internal per district) were conducted on 10 and 24 November 2011 investigation which resulted to the written warning issued and 1 December 2011 to deal with the following: against the employee. Further, in Kopanong Local Municipality SALGA Free State provided assistance on municipal grading. i. Collective Agreement on Disciplinary Code The municipality was advised on salary disparities, in respect of entry levels for the employees and assisted during an ii. Local Labour Forum arbitration hearing of the former municipal manager on 24 iii. Minimum Essential Services Level Agreement January 2012.

A total of 18 municipalities (out of 21) in Mpumalanga have SALGA Free State also assisted Nketoana and Nala Local confi rmed to have established functional LLFs, whilst all 21 Municipalities with the implementation of the Circular municipalities have confi rmed that they are implementing on Salary/Wage Collective Agreement. Moqhaka Local the Collective Agreement on Disciplinary Code. SALGA Municipality was provided with assistance on the complaint Mpumalanga assisted 7 municipalities in 17 labour dispute lodged with the Public Protector about the alleged different matters (15 disciplinary cases and two arbitration hearings) contributions made by the municipality’s employees towards and these are: employees pension fund and unsatisfactory conditions of employment and during an arbitration in 30 January 2012. • Mbombela; SALGA Free State convened a meeting on 29 July 2011, • Nkomazi; constituted by all CFOs in assessing the fi nancial status of municipalities in responding to the wage /salary negotiations • Umjindi; prior the industrial action, as envisaged in the local government sector. SALGA Free State together with the Department of • Emakhazeni Cooperative Governance and Traditional Affairs (CoGTA) and LG SETA jointly approached Central University of Technology • Emlahleni Free State (CUT), to undertake a survey and determine the competency levels of municipal councillors in the Province. • Mkhondo

In a quest to ensure municipal compliance with Employment • Chief Albert Luthuli Equity, SALGA FS requested draft employment equity plans SALGA Mpumalanga conducted a workshop on Performance from municipalities in order to assist where necessary before Management Systems on 2 February 2012, and provided submission to the Department of Labour by 30 October 2011. hands-on support to Mkhondo, Nkomazi, and Steve Tshwete An Employment Equity Analysis for the past ten years was local municipalities in relation to PMS. conducted in consultation with the Department of Labour in Bloemfontein in October 2011 and presented to the HRM SALGA Free State assisted Mantsopa Local Municipality with Working Group that was held on the 29 November 2011. the interpretation of the Collective Agreement dealing with

74 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

On strike management, SALGA North West resuscitated and SALGA represented at Conciliations on Medical aid, Retirement engaged with strike management committees and advised Fund, Recruitment and Selection, Rental allowance. municipalities on the implementation of the salary increases for 2011/12 ﬁ nancial year on the intention by SAMWU to embark SALGA Western Cape represented all municipalities in on a strike action in August 2011. This assisted municipalities the Western Cape, excluding the City of Cape Town, in 64 in circumventing labour instability. In strengthening the LR arbitrations, 44 conciliations and 12 condonation applications, and HR structures in municipalities. and 26 Disciplinary during the 2011-12 year.

SALGA North West capacitated and convened LRPF and SALGA Northern Cape supported and advised municipalities HRPF meetings with Mafi keng and Ditsobotla LMs in May with regard to dispute resolution and discipline management. 2011, and provided labour advice and assistance on various In ensuring support to municipalities on Dispute Resolution, other matters between April and June 2011 including: SALGA North West all 23 municipalities at the SALGBC EXCO • advice to Tswaing LM on the interpretation of the of the NW Division and Plenary between September 2011 and Arbitration Award HQ 100901, March 2012. SALGA North West represented the following municipalities on conciliations and arbitrations between April • advice to Lekwa-Teemane LM on Schedule 8 of the 2011 and February 2012: LRA, • Ramotshere Moiloa LM; Tlokwe City Council; Dr • advice to Maquassi Hills LM on expiry of contracts for Kenneth Kaunda DM; Ngaka Modiri Molema DM; offi cials in the Offi ce of the Mayor and Speaker and on Ventersdorp LM ; Maquassi Hills LM; Mafi keng LM; standby allowance, Moretele LM; Madibeng LM; Tswaing LM; Lekwa- Teemane LM; Rustenburg LM; Naledi LM ; Ditsobotla • advice to City of Matlosana’s Investigation Committee LM; City of Matlosana; Greater Taung LM [Conciliation for Section 57 appointees, & Arbitration].

• advice to Ramotshere-Moiloa LM on overtime and shift • Kgetleng Rivier LM; Moses Kotane LM; Kagisano- allowance, Molopo LM; Ratlou LM [Arbitrations].

advice to Ratlou LM on the interpretation of the • ROLL-OUT A MUTUAL GAINS COLLECTIVE BARGAINING placement policy, and APPROACH

• assisted Naledi LM with conﬂ ict resolution processes, SALGA co-ordinated the training of all members of the LLF and represented it in the disciplinary hearing. to improve the capacity of both employer and employee representatives at that level. To that end, SALGA is able to REPRESENTATION OF MUNICIPAILITIES AT CONCILIATIONS, ensure better dispute resolution and prevention at municipal ARBITRATIONS, LITIGATION MATTERS, AND DISPUTE level, thereby creating a more stable LG. RESOLUTION In an attempt to strengthen the implementation of the collective The SALGA NEC report on the disputes SALGA handled on bargaining agreement, SALGA North West conducted LLF behalf of Municipalities was presented at the NEC meeting on training to 171 members and further developed a monitoring 28 March 2012. The Unions referred the following dispute: tool to monitor the functionality of LLFs and conducted local Wage Interest - Case No: HQ041106. SALGA in turn raised a inspections in the following municipalities between February point in limine in the interest dispute lodged by SAMWU on and March 2012: the Recruitment and Selection Policy: Case no HQ011209.

SALGA Annual Report | 2011/12 75 2.3.2 SALGA 10-PRIORITY OBJECTIVES

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

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

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

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

76 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 06: SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

PO6. Sound Financial Management and Governance system - Improved ﬁ nancial management and ﬁ nancial viability of municipalities 2011-12 FINAL PERFORMANCE

Not Achieved 7 20%

Fully Achieved 28 80%

ANALYSIS OF MUNICIPAL FINANCIAL STATEMENTS COUNCILLORS TRAINING ON MUNICIPAL FINANCES AND LED AFTER LOCAL GOVERNMENT ELECTIONS A report on the state of municipal fi nances was prepared considering the National Treasury Review of the LG Budgets SALGA inducted all councillors on important aspects of and Expenditure Review 2011, the Consolidated General municipal fi nances, budgeting and reporting during the Report on the Local Government audit outcomes 2009/10, general induction of councillors. In addition, advanced and MFMA Section 71 report for the fourth quarter of 2010/11. induction aimed at councillors responsible for municipal fi nances has been conducted. The report highlighted key challenges in fi nancial management and performance of municipalities during the 2009/10 and Approximately 8 600 councillors where inducted on municipal 2010/11 fi nancial years and longer trends observed from fi nance issues in partnership with National Treasury. National Treasury’s Review. This report also included a report Furthermore, SALGA and NT conducted a two-day advanced on the commitments of SALGA to the AG on areas of support for induction for Mayors and councillors responsible for municipal municipalities towards good municipal fi nancial management fi nance. Workshops were convened from February to April in and governance practices. all provinces. About 80 percent of municipalities attended these advanced induction sessions. Based on the analysis in the report, municipal support mechanisms have been identifi ed for implementation in the The general induction on municipal fi nance for one full day next fi nancial year. A key support programme for 2012/13 provided all councillors with a basic understanding of their role involves the adoption by SALGA Provincial offi ces of at in budgeting, fi nancial performance reporting, and oversight least two struggling municipalities to support them towards in a municipality. The advanced induction was conducted over improvement in fi nancial performance and audit outcomes. two days and aimed at creating an in-depth understanding of SALGA also provide practical fi nancial management training municipal fi nances for councillors responsible for municipal as identifi ed in their respective provinces. fi nance and mayors. These induction sessions were important

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to ensure that new councillors are aware of the municipal SSALGAALGA 2011/122011/12 BUDGET/FINANCIALBUDGET/FINANCIAL WEEKWEEK budget process and fi nancial reporting processes so that they are able to fulfi ll their management and oversight role. PProvincerovince DDateate Eastern Cape 15 February 2012 At the SALGA National Conference (August 2011), SALGA elected councillors into new leadership positions. Within this Free State 28-29 November 2011 context, the Directorate convened an LED training session for Gauteng 15 April 2011 the newly elected SALGA National and Provincial Working Limpopo 28-29 March 2012 Group Chairpersons on their role and positions on LED. Mpumalanga 24 - 25 November 2011 The output of the training was to empower the nine EDP Working Northern Cape 17 November 2011 Group Provincial Chairpersons and National Working Group Chairperson on the topic of Local Economic Development. As North West 19-20 March 2012 these are all new chairpersons it was important to formulate a Western Cape 24 November 2011 common understanding and position towards LED. INDIGENT POLICY ANALYSIS After developing a common understanding of the role of SALGA and its LED Programmes and Projects, the chairpersons jointly The report on the analysis of indigent policies of a sample determine the vision of the SALGA Economic Development of municipalities increased the understaninf of SALGA of working groups, shared their knowledge, experiences by municipal approaches to providing poverty relief and free networking and teambuilding experience. Besides introducing basic services to poor households and the different targeting LED to the key SALGA audience, the training programme methodologies utilised. The report was intended to develop covered important LED concepts which will impact all a basis for understanding municipal indigent policies and councillors in terms of their expectations and how SALGA the aim is to build on this information over the medium term needs to support them. to develop relevant support mechanisms that will enable These included the appropriate role/expectations of local municipalities to improve the management of their indigent government in LED, the different roles and responsibilities relief programmes. of spheres of government, the insights of the building the “right” institutional capacity within LED units of municipalities, SALGA PRESENTATIONS AT THE BUDGET FORUM and the priorities in supporting LED with regards the role of Councillors. It is envisaged that this training material be used SALGA made a submission on revenue management and to develop a training/induction programme for Councillors fi nancial sustainability to the Budget Forum on 6 October responsible for the LED portfolio in municipalities. 2011. The SALGA delegation, led by the newly elected Chairperson, raised key external factors that are limiting and SALGA 2011/12 BUDGET WEEK/ FINANCIAL WEEK constraining effective municipal revenue management and fi nancial sustainability. Budget Week workshops have been arranged in eight provinces These include. amongst others, policies such as the negative where municipalities were brought together to discuss matters impact of AARTO and rates ratios in the Municipal Property impacting their fi nances and fi nancial management. The Rates Act. Other issues raised revolved around constraints Budget Week workshops provided a platform to present on the implementation of municipal credit control policies in best practices in municipal fi nancial management and was areas where Eskom provides electricity and proposals were a learning exchange between municipalities and other public made for amendments to the Municipal Systems Act to and private stakeholders with an interest in local government. enhance municipal credit control policies.

78 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA submitted inputs on the draft Division of Revenue Bill to develop policies which will contain an exception of section - 2012 to National Treasury. Comments on the fi nal Division of 4(6)(b) of the Act. Revenue Bill - 2012 and municipal allocations were presented in Parliament on 28 February 2012 and 16 April 2012. SALGA Gauteng provided support to municipalities in terms SALGA has also participated in an NCOP debate on the fi scal of the legal environment in terms of judicial decision impact framework of the 2012/13 Budget on 7 March 2012 and on directly and indirectly to municipalities in terms of municipal the Division of Revenue Bill on 26 April 2012. budgets and revenue collection. Analysis of a case study on the evictions of private land by the City of Johannesburg SALGA, as organised local government, represents versus Blue Moon was made. municipalities in the Budget Forum that is chaired by the Minister of Finance. SALGA raised key issues on national It was stated that when evictions are made, municipalities also legislation and policy developments impacting on revenue needto provide alternative accommodation and that would management and fi nancial sustainability of municipalities. affect the revenue of that particular municipality negatively. It SALGA also raised local government’s views on the Division of was evident that if a municipality did not allow the community Revenue Bill - 2012 to National Treasury and Parliamentary to access basic services due to non-payment of rates, a Committees. municipality might fi nd itself breaching the law in terms of the constitutional duty to respect the right to access water and FINANCE LEGISLATIVE FRAMEWORK requires constitutional justifi cation.

SALGA developed position papers on over and under regulation MUNICIPAL PROPERTY RATES ACT (MPRA) AMENDMENTS and started advocacy work in this regards. The papers were titled: i) Position Paper on over-regulation, reﬂ ecting on SALGA submitted a position paper to CoGTA on 22 July 2011 the Status of Municipal By-Laws; and ii) Legislation to be outlining overall challenges on the implementation of the addresses pertaining to both over and under regulation and Municipal Property Rates Act and made several proposals for the review of Organised Local Government. improvements to the legislation and its implementation.

Legislative analysis of acts that govern local government The positionong paper also contained the comments of issues on municipalities was done for municipalities with SALGA on the Municipal Property Rates Amendment Bill. Its a consideration on the following acts: Municipal Finance positioning paper and comments were based on consultation Management Act (MFMA) No 56 of 2003. It does not have with municipalities and the Institute of Municipal Finance a direct bearing on the collection of revenue but governs Ofﬁ cers. The comprehensive submission of SALGA to COGTA the overall management of ﬁ nances in local government. outlined key challenges that local government experienced Municipal Property Rates Acts (MPRA) No 6 of 2004 allowing with the implementation of the MPRA. The submission also municipalities to adopt and enact by-laws. It further provides provided comments and inputs on the proposed amendments a framework for liability of rates (section 24-29) of the MPRA. in the MPR Amendment Bill that would impact on municipal Municipal Systems Act of No 32 of 2000 allows a municipality property rates revenue which is a key revenue source for local to adopt credit control policy and debt collection. government.

Furthermore, municipalities have an obligation to collect what BUDGETING is owed to them. Both the above legislations give directives to municipalities in terms of formulating their own policies. SALGA Gauteng provided support made to municipalities In terms of National Credit Act No 34 of 2005, municipalities on credible budgets. These are central as they provide should collect and put corrective measures in place where progressive plans to deliver services. Key credible criteria was consumers are not paying the debts. Municipalities will have on the budget links with the constitution around prioritising

SALGA Annual Report | 2011/12 79 2.3.2 SALGA 10-PRIORITY OBJECTIVES

and enabling basic service delivery to communities i.e. SALGA North West convened the districts based workshops on alignment of budget and basic services. The second criterion Operation Clean Audit, Revenue Enhancement and Effective was a funded budget, to assess if municipalities are able to Debt Collection Strategies and the establishment of the MPACs project revenue expenditure which they will be able to collect. 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) SALGA Gauteng provided support provided to municipalities on on administrative procedures towards achieving clean audit competency regulations. This states that after 2013 municipal during the year under review. employees who do not have qualifi cations will be deemed unemployed. Local Government budget offi ce is challenging REVENUE MANAGEMENT as it entails tariff setting, revenue collection, procurement procedures, and ability of municipalities to borrow. These SALGA Gauteng advised municipalities on the use of debt dynamics make managing fi nances in municipalities more collectors with the emphasis that all debt collectors should be challenging than provincial and national government. registered with the exception of attorneys. The code of conduct is binding on debt collectors and should be adhered to. Only OPERATION CLEAN AUDIT fees prescribed by the Act should be charged by debtors. The following challenges were emphasised as a matter of concern SALGA Gauteng conducted and assessment of readiness to with regard to collection by debt collectors: achieve 2014 Operation Clean Audit in the province. This Tracing of debtors illustrated that some municipalities were improving while others • were regressing and that was an indication that the oversight • Debtors not being cooperative committees such as Municipal Public Accounts Committee (MPACs), South African Local Government Association • Debtors paying directly to the creditors and debt (SALGA), department of fi nance in the province and other collectors struggle to collect their fees. relevant stakeholders did not play their role effectively in terms of emphasising the importance of good fi nancial management • Advising creditors of prescribed debts and procedures by providing support and assistance where required, with the to be followed. aim of obtaining clean audits reports by 2014. The council indicated that debt collectors would not go to Most municipalities are still encountering problems with the court without instituting legal action unless the claims have implementation of GRAP standards, hence some of them been ceded to them. Not all were legally qualifi ed persons and did not implement the approved GRAP standards and that would only enforce the repayment of debt up to a certain point. resulted in them receiving poor audit reports. Municipalities A knowledge-sharing session with the South African Revenue and entities waste funds on the usage of consultants for Services (SARS) indicated the use of third-party data sources implementation of GRAP standards and capabilities of the in data collection. SARS has improved its systems and is now consultants are questionable as the municipalities and entities able to deal with large volumes of data. audits reports are not improving as expected, hence it was indicated that municipalities should not rely on the competency SALGA Free State conducted a Revenue Assessment Road of the consultants, instead they should capacitate municipal shows to nine (9) municipalities in the Province to do an offi cials who should be working on the standards. analysis on Revenue Management.

SALGA Free State conducted a GRAP impact assessment in Four districts municipalities were identiﬁ ed and prioritised by six identiﬁ ed municipalities during the week of 3 to 14 March SALGA North West as the municipalities which will be assisted 2012. with the Revenue Enhancement and debt collection strategies

80 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

across the province. The identifi ed priority municipalities PREFERENTIAL PROCUREMENT REGULATIONS are the Dr Kenneth Kaunda District Municipality, Bojanala Platinum District Municipality, Ngaka Modiri Molema District SALGA, together with a group of municipalities, engaged Municipality, and the Dr Ruth S Mompati District Municipality. National Treasury and the Department of Trade and Industry on 30 November 2011 to raise serious challenges that local SALGA Limpopo assisted municipalities to receive debts owed government would be facing with the implementation of the new by sector departments. It engaged with the Department of Preferential Procurement Regulations that becomes effective Treasury, Education, and Public Works on money owed to in December 2012. A letter was sent to the Minister of Finance Limpopo municipalities. regarding challenges in the readiness of local government for implementation of the new regulations. SALGA developed a Terms of reference have been developed and the Provincial guideline for municipalities regarding the implementation of debt forum has been established. Five district debt forums the new regulations. have sat and issues were debated to a satisfactory level: SALGA Limpopo conducted a Governance Workshop was Vhembe debt forum 03June 2011 • convened on 14 November 2011 where 55 councillors from Limpopo municipalities participated. Further, SALGA Limpopo • Capricorn debt forum 09June 2011 conducted a two-day induction workshop for Mayors (30) , • Waterberg debt forum 21-22 June 2011 Chairpersons of Finance Portfolio Committee (30) and MPAC chairpersons (28) was convened on 13 and 14 February 2012. • Mopani debt forum 06-07 June 2011 DIVISION OF REVENUE ACT BROCHURE • Sekhukhune debt forum 01-02 June 2011 SALGA, in consultation with National Treasury, developed To date, an amount of R17-million has been paid to Limpopo a brochure on the Division of Revenue Act 2011-12. The municipalities as a result of the debt forum by the Department brochure aimed to raise awareness of the Act by defi ning Public Works (Limpopo). salient features thereof including unconditional and conditional grants to local government. The brochure also outlines per SALGA Mpumalanga conducted a Revenue Enhancement municipality each fi scal transfer to be received from national Strategy workshop on 14 February 2012. and provincial government departments in the 2011/12 fi nancial year. In addition, the contact details of national MUNICIPAL PUBLIC ACCOUNTS COMMITTEES departments responsible for transferring grant allocations to municipalities are provided. SALGA Free State presented the draft guidelines on the establishment of Municipal Public Accounts Committees to PARTNERSHIP WITH THE GERMAN ASSOCIATION OF CITIES AND Mangaung Metro section 80 committee on 11 February 2012. NLC SALGA Gauteng hosted a workshop on MPACs on 25 November 2011. This workshop was attended by 38 participants. An important SALGA partnership was negotiated and a Memorandum of Cooperation signed with the German SALGA NC presented the draft guidelines on the establishment Association of Cities at the SALGA National Conference in of Municipal Public Accounts Committees on 17 November August/September 2011. 2011. Twenty fi ve (78 percent) of the thirty two municipalities have established MPACs before the end of April 2011.

SALGA Annual Report | 2011/12 81 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 7: STABLE MUNICIPAL GOVERNANCE

PO7. Stable Municipal Governance - Stable municipal governance 2011-12 FINAL PERFORMANCE

Not Achieved 2 14%

Fully Achieved 12 86%

GOVERNANCE HANDS-ON-SUPPORT TO MUNICIPALITIES Manager, Manager Technical Services and Councilors on 23 September 2011. A number of municipalities were provided with Governance Hands-on Support on issues of critical importance and IMPROVED GOVERNANCE peculiar to such municipalities. This assisted them to improve governance within their municipalities. SALGA also sent The SALGA Governance Hands-on Support Strategy was out circulars to assist municipalities on governance aspects approved by the NEC and is being implemented. Municipalities relating to the 2011 Local Government elections. This included in all the nine provinces have received hands-on support a guideline on the ﬁ rst council meeting post-elections as well during this ﬁ nancial year. Hands-on support was provided to as circulars on amendments in legislation affecting local in excess of 90 (ninety) municipalities: government. Ramotshere Moiloa on Roles and Responsibilities, Baviaans SALGA Western Cape provided direct support to municipalities on Delegations, Westonaria on SALGA Structure, Dipaleseng on LED and Planning Issues and support was provided to on Administering of oath, Cacadu on First council meeting, Breede Valley Local Municipality on 8 August 2011 about the Maquassi Hills on Councillor remuneration, Mopani District on GENESIS methodology and on 13 September 2011 about the Election of Exco’s, Pixley ka Seme on Declaration of results, GENESIS process. Knysna on the Return of council property by councillors, Tshwane on Budget process, Zululand on Elections of Knysna Local Municipality and Bitou Local Municipality was mayors, Thembesile Hani on non-returning councillors, Cape assisted on 17 and 18 August 2011 with Councilor training Agulhas municipality on Section 32 committee, King Sabata provided by DBSA on their role in the IDP process. Oudtshoorn Dalindyebo on municipality Rules of order. Knysna and Municipality was assisted on conducting a LED Maturity Sedibeng municipalities on circular 17 of 2011, Emfuleni on Assessment Interview was held with the Acting Municipal Remuneration of councillors, Bergrivier on Maternity leave of MM, Prince Albert on the Legitimacy of the Extension of

82 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

the Agreement between the municipality of Prince Albert of MMs, Lukhanji on the renewal of contracts for MM and and Sherpa Trade Invest 15 (Pty) Ltd and also advertisement directors, Mangaung on Policy for Councillor injuries and for MMs, Bergrivier on ‘fruitless and wasteful expenditure’ Insurance for Councillor property, Emthanjeni on Political vs. ‘irregular expenditure’, Gert Sibande on the provision Rights, on Representation in their Portfolio Committees and on of a mayoral residence and Offi ce Bearer’s handbook. Upper Limits Notice 2011; Kenneth Kaunda on Upper Limits Also Telephonic advise provided to Mafi keng, Alfred Nzo, Notice 2011, uMsunduzi on MPACs training documents, JS Nkonkobe, Mogale City, Kagisano-Molopo, Zululand, Ephraim Moroka on Offi ce Bearer’s handbook , NMBM on their draft Mohale, Ruth Muphathi, Fazile Dabi, Cederberg, Greater system of delegation and MPAC committees, Sisonke on Kokstad, Beaufort West and Vhembe District. Upper Limits Notice 2011, Biavans on Oversight. Disobotla, Mosselbay, Emfuleni, Ugu, Mandeni, West Coast and Alfred Ekurhuleni on MPACs, Emthanjeni on Quorum requirements, Nzo on payment of UIF by councillors. Kopanong on Upper Limits ,Merafong on Councillor allowances, Overberg District Municipality on the offi ce SALGA GUIDELINES FOR RESTRUCTURING OF MUNICIPALITIES bearer’s handbook, Swellendam on Appointment of Appeal Committee and related matters, Mossel Bay, West Rand SALGA Guidelines for Restructuring of Municipalities was District Municipality on Pension Funds, Medical Aids, Tax, approved by NEC and is referred to in IGR structures for Maquissi Hills on Disciplinary steps for section 56 managers, consultation. The document aims to capacitate municipalities Cacadu municipality on Oath of Affi rmation by a councillor, to ensure that appropriate legal and practical steps are put Central Karoo District on appointment of Acting MM, Breede in place to manage the consequences of transition once Valley on Rules of Order, George on the use of Offi cial Transport the Municipal Demarcation Board (MDB) boundary re- by councillors. Advice provided to Cape Agulhas, Ramotshere determination process is fi nalised. Moila, Johannesburg Metropolitan municipality, OR Tambo and Sekhukhune. GUIDELINES ON ROLES AND RESPONSIBILITIES OF POLITICAL OFFICE BEARERS OR Tambo DM on Roles and Responsabilities of political offi ce bearers, Buffalo City on Offi ce Bearers’ Handbook, Final guidelines on roles and responsibilities of political offi ce Chis Hani on Appointment of section 56 managers and on bearers were circulated to all municipalities. Workshops were the Establishment of an MPAC, Beaufort West on Special conducted in NW and NC provinces. Municipalities have been Council meeting , West Coast DM on Staff establishment , capacitated to clarify the roles and responsibilities of political Bophirima on Upper Limits, Maquassi Hills on a legal dispute offi ce bearers and to prepare the relevant terms of reference. with the MM and on Election of an acting speaker , Breede This is aimed at ensuring that the council functionaries clarify Valley on the Rules of Order, Blue Crane on Ward Committee and understand their roles better and that the municipality remuneration, Emthanjeni on Representation on Portfolio functions more effectively. Committees, Alfred Nzo on Upper Limits, Laingsburg on Quorum Requirement, Overberg district on MPACs, NMBMM SALGA North West conducted a workshop on roles and on Councillor Remuneration, Kagisano-Molopa on Code of responsibilities to understand their legislative powers and conduct and ethics for councillors, Ramotshere Moila on functions on 09 September 2011 at Matlosana Local Validity of contracts for senior managers, Cape Agulhas on Municipality. As a result of this workshop, municipalities Section 32 committee and Mangaung on Upper Limits. in the province were capacitated to clarify the roles and responsibilities of political offi ce bearers and to prepare the Ehlanzeni on Upper Limits, Biavaans on UIF, JS Moroka on relevant terms of reference, aimed at ensuring that the council Councillors Travel Claims, Umzivumbu on the Remuneration functionaries clarifi es and understand their roles better and of the MPAC Chair, Bergrivier on the Renewal of Contracts that the municipality therefore functions more effectively.

SALGA Annual Report | 2011/12 83 2.3.2 SALGA 10-PRIORITY OBJECTIVES

The Municipal Offi ce Bearers Handbook queries were committees which were escalated to the relevant Speaker’s distributed during the convening of District Based Workshops Offi ces. on Good Governance and Ethics and MPACs Establishment held on 23 and 30 September 2011. The province specifi c SALGA Northern Cape assisted fi ve municipalities to establish manual or pocket book on King III developed by PwC and ward committees: Joe Morolong, Nama Khoi, Sol Plaatje, Ga SALGA was presented and distributed to all Councillors. The Segonyana, Kareeberg, and Kgatelopele. aim of this workshop was to support the NW municipalities SALGA Western Cape held Public Participation and Ward in combating corruption and to provide training on the best Committee Consultative Workshops at the four District practices with regards to oversight, aimed at enhancing the Municipalities workshops on 10 May 2011 at Overberg corporate governance of the municipalities, including positive District, 13 May 2011 at Central Karoo, 16 May 2011 at Cape and transparent accountability and audit outcomes and Winelands, and 27 May at Eden District. Additionally, SALGA therefore greater public confi dence in the municipality. Western Cape supported Hessequa Municipality on 18 July A workshop was held on 07 September 2011 on the 2011 regarding the establishment of ward committees and a clarifi cation of roles and responsibilities of all offi ce bearers delegations framework. and the administration. This was aiming to assist the newly SALGA Mpumalanga assisted all 21 municipalities in the ushered councillors to municipalities. The participants were establishment of ward committees and coordinated three (3) the Executive Mayors, Speakers, Chief Whips , MMCs, and district workshops on 23 September 2012 in Nkangala District Municipal Managers. Municipality, 28 September 2012 at Gert Sibande District Municipality and on 30 September at Ehlanzeni District MUNICIPAL PUBLIC ACCOUNTS COMMITTEES GUIDELINES Municipality. The targeted participants for all three districts workshops were the Ward Councillors, PR Councillors, and Municipal Public Accounts Committees - MPACs Guidelines the Ward Committee Members. “Enhancing oversight in municipalities” were developed and approved by NEC. MPACs training conducted in WC, EC, GOOD GOVERNANCE GP, FS, and in Madibeng (NW). Best practices with regards to oversight were identifi ed and extensive MPACs training is In partnership with IDASA and GIZ, SALGA produced a provided to municipalities. This is done on MPACs in order research paper titled “Understanding the current Good to improve oversight, aimed at enhancing the corporate Practices of Local Government Accountability and Oversight governance of municipalities. in SA”. This provided recommendations on best practices with SALGA Western Cape provided training on the establishment regards to Accountability and Oversight. These were identifi ed of Municipal Public Accounts Committees to the following for the purpose of addressing and enhancing the corporate municipalities: - Theewaterskloof: 19 January 2012, Prince governance of municipalities. Albert: 02 March 2012, Overstrand: 06 March 2012, Overberg The Blueprint on Effective Governance, Accountability and District and Cape Alguhas: 09 March 2012, Speakersforum : Resourcing was approved by the National Conference in 15 March 2012,Overberg District Councilors and offi cials. September 2011. The Model for Effective Governance, Accountability and Resourcing of Ward Committees was WARD COMMITTEES approved by the NEC on 28 March 2012. This was endorsement for it to be rolled out to municipalities. Through this blueprint, SALGA Gauteng conducted consultative forums for Ward municipalities are capacitated to improve Public Participation Committees, CDWs, and ward Councillors to clarify roles as a result of revising the ward participatory model. This will and responsibilities for each concern parties. The forums result in greater participation of communities in the affairs of also identifi ed impediments on the functioning of the ward local government and ultimately greater accountability.

84 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA Mpumalanga coordinated a workshop on King III Awareness Presentation on 07 September 2011 which was aiming on promoting good cooporate governance and transparency in Local Government. The participants were the Executive Mayors, Speakers, Chief Whip MMCs, and the Municipal Managers which was facilitated by PricewaterhouseCoopers. The participants were also awarded with certiﬁ cates of attendance from PwC.

POLICY REVIEW PROCESS: WHITE PAPER ON LOCAL GOVERNMENT AND GREEN PAPER ON COOPERATIVE GOVERNANCE

SALGA submitted comments on the DCoG Policy Review Process: White Paper on Local Government and Green paper on Cooperative Governance - A Framework for Developing a Reﬁ ned Model for Local Government.

SALGA was represented in these IGR forums (DCoG Legislative Committee, Portfolio Committee, CoGTA Technical MinMECs and MinMECs) and the views of Organised Local Government were clearly articulated.

IGR

SALGA Free State initiated the ﬁ rst meeting with the CEO of the Free State Provincial House of Traditional Leaders and agreed on the implementation plan of the MOU with the FSPHTL. It developed a draft provincial memorandum of understanding and an implementation plan which was endorsed by the Free State House of Traditional Leadership on 07 October 2011.

SALGA Free State also embarked on and participated in the ‘Governance Crisis’ Fact-Finding mission meeting in Thabo-Mofutsanyana District Municipality targeting Maluti-a- Phofung, Phumelela Local Municipalities, and Metsimaholo municipalities.

SALGA Annual Report | 2011/12 85 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 8: 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 2011-12 FINAL PERFORMANCE

Not Achieved 18 32%

Fully Achieved 38 68%

MUNICIPAL HUMAN RESOURCES MANAGEMENT at capacitating Local Government. SALGA also chairs the Governance and Strategy Committee entrusted with the core In the 2011/12 fi nancial year, SALGA has developed policies business of the SETA. This enables SALGA to ensure that on coaching and mentoring, retention and human capital municipalities have access to the funds from the LGSETA for management. The aim of these policies is to assist with the their capacity building programmes. reduction of staff turnover whilst helping municipalities identify (from within) and retain talent. The effect of these is currently SALGA has developed the Performance Management being monitored and it is hoped that its impact will be seen System (PMS) Cascading Framework for municipalities. The from the next fi nancial year onwards. Performance Management System Capacity Building Plan for the sector comprises of various elements such as the SALGA has developed a position on the proposed Human development of PMS guidelines, offering hands-on support, Resource Norms and Standards, proposed systems, legislation, PMS implementation, and so on. A number of municipalities, and policies for LG Administration Integration. These positions particularly in the Eastern Cape, have been assisted in the were consolidated and submitted for consideration by National implementation and cascading of the PMS to all other Government. The SALGA positions developed are aimed at municipal employees. ensuring that the sector is professional. CAPACITY BUILDING In order to ensure the discharge of strategic obligations in respect of capacity-building, SALGA has been appointed as The Centre for Municipal Research and Advice (CMRA) was a Board Member of the Local Government Sector Education appointed to facilitate the portfolio-based training in fi ve Authority (LGSETA). The purpose of the LGSETA Board is to provinces. The aim of the training was to provide councillors oversee the allocation of capacity building initiatives aimed with an in-depth knowledge of their portfolios thereby creating

86 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

better skilled and knowledgeable councillors that make the challenges highlighted in the 30 case studies. SALGA informed decisions. has also developed roles and responsibilities discussion document that will be used as a base in the development of Advisory Internal Audit Support was provided to selected bulk infrastructure fund for municipalities. municipalities on the improvement of audit outcomes. SALGA has guided these municipalities towards the achievement of A Skills Audit was conducted in the Gauteng Province for improved audit outcomes. One of the core outcomes of the all councillors in partnership with the Gauteng City Regions benchmarking programme is to complement the ability of Academy during the week of the Cllr Induction. The skills audit SALGA to advise its members through peer–to-peer sharing aimed at determining the skills needed for each councillor. of experiences. SALGA has facilitated partnerships with The outcomes of the audit now form the basis for capacity stakeholders. Most of these are geared towards providing building programme identiﬁ cation. A total of 695 councillors support to municipalities in various performance areas. participated in the Audit.

A study was conducted on assessing local government capacity MUNICIPAL ICT PRACTITIONERS NETWORK and the extent to which fi scal framework makes provision for the performance of environmental function. In line with the advisory and profi ling mandate of SALGA, the LGICT Network (www.lgict.org.za) was launched and will enable Workshops regarding energy effi ciency and renewable energy local authorities, as well as other interested stakeholders, to were held in three provinces, Western Cape, North West, and share IT best practices, solutions, ideas and services. This Gauteng. The North West and Gauteng workshops involved will be done not only for their own mutual benefi t, but for the knowledge sharing amongst offi cials and councilors regarding public they serve. the implementation of energy effi ciency programmes in municipalities. The Western Cape Workshop involved It is the exchange of actual municipal ICT practices that will municipalities from the Eden District Municipality. These lead to better networking, learning, peer-to-peer support, and municipalities were guided through a process of developing collaboration within the local government sphere. There are energy effi ciency and renewable energy strategies and action currently more than 500 members on the site with an average plans for their municipalities. of in excess of 100 hits per day. In terms of some the functions / services on the site: SALGA conducted water services master class for water services managers toward assisting municipalities to comply with the • Ask an expert – where any member can ask for support blue and green drop regulatory certifi cation requirements. The or advice certifi cation programme aims to recognition municipalities that are managing their water and waste treatment facilities • Knowledge sharing – any strategic policies, or ICT according to set norms and standards. SALGA further approaches / best practices can be shared for others developed municipal benchmarking performance indicators to use that serve as a tool to measure municipal performance on the delivery of water services on areas as such product quality, • Forum / blog – the most dynamic area of the site where operations and maintenance, water conservation demand lively discussions can take place. management, and so on. On the SALGA ICT portal (www.lgict.org.za) all municipal ICT SALGA also conducted 30 case studies on the municipal practitioners will be able to access, share and comment on water services institutional delivery mechanisms with the what they feel is relevant ICT information, knowledge, ICT objective of understanding the performance trends in delivery news, and good practice. of water services and the underlying reasons for such. Recommendations were further developed on how to address

SALGA Annual Report | 2011/12 87 2.3.2 SALGA 10-PRIORITY OBJECTIVES

NATIONAL ICT LOCAL GOVERNMENT EVENT SALGA members will be supported by its efforts in focusing on challenges within the municipal procurement and management SALGA hosted its ﬂ agship LGICT event ‘ConnectIT’ in of ICTs (duplication, unaccredited / tested vendors or service Johannesburg from 16 to 17 August 2011. The conference providers, lack of strategy, integration, multiple systems etc). brought together key players within local government and ICT professionals to brainstorm ideas on the way ICT could be better harnessed to beneﬁ t the municipalities and overcome common challenges.

There were more than 120 delegates. In excess of 80 percent of delegates were from municipalities across the country. All provinces were represented. Delegates had the opportunity to listen to the views and the research carried out by leaders in the ﬁ eld including Internet Solutions, Dell, SAP, EOH, and Telkom.

The event was also fully sponsored by the private sector. Key themes which featured on the ‘ConnectIT’ agenda included how the proﬁ le of ICT could be raised within municipalities, the issue of increasing broadband access and connectivity, incorporating IT governance into the business of local government, affordable e-participation solutions, and what South African municipalities could learn from local authorities in other developing countries.

FEASIBILITY STUDY ON SALGA FORMING AN ICT ACCREDITATION SERVICE

When it comes to ICTs, SALGA would like to become both more supportive and proactive in transforming the local government to enable it to fulﬁ ll both its service delivery and developmental role.

Where possible, SALGA would be able to expand on its current role and assist municipalities in determining how best ICTs could be procured, put into practice, and given a greater proﬁ le within municipalities. The aim would be to ensure an improving standard of municipal service delivery and administration.

SALGA developed a comprehensive feasibility study that will guide it in establishing an accreditation/ endorsement service targeted at ICT-related businesses, services, or products applied (sold) within municipalities. In terms of the SALGA ICT accreditation service as outlined in the feasibility study,

88 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA EASTERN CAPE

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Generic Councillor Induction DPLTA , National Treasury and 26-15 July 2011 1117 - Programme DBSA

Certiﬁ cate in Local Government Law University of Fort Hare 9 January 2012 31 10 and Administration

Advanced Certiﬁ cate in Local University of Fort Hare 9 January 2012 25 - Government Law and Administration

Diploma in Local Government Law University of Fort Hare 9 January 2012 32 - and Administration

Masters in Public Administration. University of Fort Hare 5 January 2012 30 -

Certiﬁ cate in Public Administration University of Fort Hare 14 December 2012 87 - for Community Services (NQF Level 4 programme).

Councillors attended the Rhodes Rhodes university 12-15 September 2011 16 - Summer School on Transformation of Local Government

Councillors from KSD were trained DBSA 21-25 November 2011 50 - on IDP

Amathole Disability Workshop DPSA 15 March 2012 15 20

LED Roundtable Events 23-24 August 2011 20 35

11-12 October 2011

Land Use and Spatial Development 30 September 2011 15 30 Planning Seminar

Informal Trade Summit 15-16 November 2011 25 30

Tourism Workshop 07 December 2011 15 30

ICT Workshop 28 March 2012 5 30

LED Strategy Alignment Workshop 23 March 2012 25 10

Workshop for Disabled Youth Eastern Cape Aids Council 26 March 2012 20 9

Learning Event O.R.Tambo ATTIC 24 January 2012 14 14

SALGA Annual Report | 2011/12 89 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA EASTERN CAPE

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Local Economic Development (LED) 24-25 August 2011 Training

International Relations (IR) Training 7-9 September 2011

Local Labour Forum (LLF) Training September 2011

Water Services Councillor Induction 27-28 February 2012

Municipal Finance Advanced 29 Feb-1 March 2012 Councillor Induction

Waste Management Councillor 8 March 2012 Induction

Municipal Finance Advanced 14-15 March 2012 Councillor Induction

Human Settlements Councillor 28-30 March 2012 Induction

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 31 January 2012 20 38 Workshop

Ingquza Hill Municipality Workshop 25 October 2011 - 50 on Conditions of Service

TOTAL 1634 403

2 037

90 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA FREE STATE

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Training on HIV/AIDS Centre for Economics in 05 July 2011 30 Governance in Africa (CEEGA)

Training of Trainers for the Councillor CoGTA and LGSETA 9 – 10 June 2011 6 7 Induction Programme

Councilors induction program CoGTA and LGSETA 27 June to the 15 July 527 - 2011

Train-the-Trainer workshop with the SALGBC and LGSETA 09, 10 and 11 May 16 26) intention to roll-out the LLF training to 2011 commissioners, all Member Municipalities managers and shop stewards

workshop on Service Improvement: P3 Project 26 - 27 May 2011 Mohokare Local Client Services Municipality

P3 Project Tariff modelling training P3 Project 16 June 2011 22 Ofﬁ cials session

IR Training to establish a panel SALGA , LG SETA and 13 – 15 September 16 - of presiding chairpersons and 2011 IR Change prosecutors / initiators

Disaster management training SALGA National and NW University 5 – 7 December 2011 4 16

Training Tariff setting model P3 Project 2 February 2012 30 trainers for Setsoto, 6 March 2012 Mohokare and 8 March 2012 Naledi Local Municipalities

Training on Asset Accounting which Akhile Management Consulting 3 - 4 August 2011 0 24 is a requirement on compliance with GRAP and other International Standards

District LLF training 3 – 7 October 2011 20

Capacity building workshop for SANAC 7 – 8 December 2011 10 13 women sector to strengthen knowledge based on HIV and AIDS

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 5 – 6 October 2011 17 Cape

Provincial Informal Trade Summit 13 – 14 October 2011 30 12

Leak Plugging Training SALGA P3 14–15 November 2011 7

SALGA Annual Report | 2011/12 91 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA FREE STATE

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Basic Sanitation White Paper Review 21 November 2011 12 18 Workshop

Provincial workshop on Upper Limits 31 January 2012 8 of Salaries, Allowances and Beneﬁ ts of Councillors

Provincial workshop on the 31 January 2012 8 establishment of Municipal Public Accounts Committees

Provincial workshop on the 31 January 2012 45 8 establishment of Municipal Public Accounts Committees

Training on Mentoring and Coaching Water Affairs and MIS unit 6- 9 February 2012 14 5

IDP Environmental Chapter Workshop DETEA 24 February 2012 13 16

By-Laws Provincial Workshop CoGTA 29 February 2012 53 4

LED tools training 8 - 9 March 2012 18 Councillors 13 LED responsible for practitioners LED

Waste Management Councillor SALGA National and DEA 06 March 2012 12 6 Induction Programme

Sanitation Tools and Guidelines Roll- Provincial Department of Human 23 and 30 March 2012 15 17 out Workshop Settlements and COGTA

Revenue Enhancement workshop DURCHAME Consulting 22 March 2012 - 35

Advance Councillor Induction National Treasury 27 – 28 March 2012 31 - programme for Executive / Mayors and MMC for ﬁ nance

Assessor Training Course focusing on Aurecon 26 – 30 March 2012 the Waste Water Process Controllers

Realisation of the Rights of Children UNICEF 19 – 20 March 2012 10 7

Integrated Mainstreaming LAMP 15 -16 March 2012 10 14

Community Library SAC and SALGA National 9 March 2012 7 8

Sports Infrastructure Funding CoGTA and SALGA National 09 March 2012 7 8

Anti-Corruption Workshop on 29 March 2012 7 4

Corporate Governance Workshop 30 March 2012 7 4

TOTAL 952 398

1 350

92 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA GAUTENG

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Councillor Induction DLG+H and all municipalities 4-8 July 2011 803 0

Councillor Skills Audit Gauteng City Regions Academy 4-8 July 2011 695 0 (GCRA)

LED Training Gauteng City Regions Academy 24-25 August 2011 3 22 (GCRA)

IR Training SALGBC 7-9 September 2011 0 17

LLF Training SALGBC 22-24 February 2012 3 12 (Westonaria LM)

1-3 February 2012 (WRDM & Randfontein 0 5 LM)

28- 30 November 2011 3 16 (Sedibeng District)

Water Services Cllr Induction Department of Water Affairs, 27-28 February 2012 96 2 DLG+H, LGSETA

Municipal Finance Advanced Cllr SALGA National and National 29 Feb-1 March 2012 7 0 Induction Treasury

Waste Management Cllr Induction Department of Environmental Affairs 8 March 2012 51 2

Municipal Finance Advanced Cllr SALGA National and National 14-15 March 2012 22 0 Induction Treasury

Sign language introductory training SALGA 20 March 2012 1 15 session

Human Settlements Cllr Induction DLG+H 28-30 March 2012 49 0

TOTAL 1733 91

1 824

SALGA Annual Report | 2011/12 93 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA LIMPOPO

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE 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 Services

Finance Management Training 13-14 February 2012 42 3

Disciplinary hearing skills Training LGSETA 11-13 July 2011 None 23

Labour Relations Act Training None 13-14 March 2012 26 4

Traditional Leaders Induction None 27-29 March 2012 138 6 Programme

Executive Leadership Management University of Pretoria 10 February 2012 32 21 Programme

Municipal Finance Management University of Pretoria 12 October 2011- 30 86 21 Programme May 2012

Training of Training Committees LGSETA 14 February- 20 March 11 13 2012

Ward Committee Training COGHSTA None

Disaster Management Training 27-29 February 2012 08 17

Free Basic Sanitation Workshop Department of Human Settlements 13 April 2011 12 23

Assessment of Organizational Department of Environmental 12 April 2011 15 Capacity for Environmental Affairs (National) Performance workshop

SALGA / NERSA municipal NERSA 03 February 2012 46 engagement workshop on Municipal Electricity Distribution Licenses in Limpopo Province

Sanitation Tools Roll Out Workshop Department of Human Settlements 27 March 2012. 50

Portfolio Based Induction For LED Resource Centre 09 December 2011 40 03 Municipal Council on Role: Elias Motsoaledi Local Municipality

Portfolio Based Induction For LED Resource Centre 66 03 Municipal Council on Role: Lepelle- Nkupi Local Municipality

Portfolio Based Induction For LED Resource Centre 07 February 2012 39 03 Municipal Council on Role: Greater Letaba Municipality

94 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA LIMPOPO

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Portfolio Based Induction For LED Resource Centre 08 February 2012 11 03 Municipal Council on Role: Musina Municipality

Portfolio Based Induction For LED Resource Centre 09 February 2012 38 03 Municipal Council on Role: Mutale Municipality

Portfolio Based Induction For LED Resource Centre and 17 February 2012 19 03 Municipal Council on Role: CoGHSTA Mookgopong Municipality

Portfolio Based Induction For LED Resource Centre 16 March 2012 48 03 Municipal Council on Role: Giyani Municipality

Portfolio Based Induction For LED Resource Centre 20 March 2012 60 04 Municipal Council on Role: Tubatse Municipality

Portfolio Based Induction For LED Resource Centre and 29 March 2012 7 05 Municipal Council on Role: Belabela CoGHSTA Municipality

Workshop On Oversight Role of Provincial Tresury 14 November 2011 55 05 Councillors

Advance Councillor Induction on National Treasury 13-14 February 2012 78 05 Municipal Finance

Stakeholder meeting August 2011 August 2011 33

Knowledge Management, Innovation SALGA alone 22-23 March 2012 80 92 and Communication Seminar

Ward Committee Training and Elias Motsoaledi LM 29 November 2011 270 Induction

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

TOTAL 3481 478

3 959

SALGA Annual Report | 2011/12 95 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA MPUMALANGA

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Workshop on the Guidelines for CoGTA and Ofﬁ ce of the Premier – 6-7 December 2011 18 39 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 Certiﬁ cate in Municipal University of Johannesburg and March – October 2011 48 Governance LGSETA

Advanced Certiﬁ cate in Municipal University of Johannesburg and March – October 2011 09 Governance LGSETA

Local Government Accounting SAICA and LGSETA July 2010 – November 250 Certiﬁ cate 2012

Integrated Development Plan (MIDP) DBSA and LGSETA May 2011 – May 2012 20 Learnership

Integrated Development Plan, Skills DBSA and LGSETA 12 – 16 March 2012 45 00 Programme

Local Economic Development DBSA and LGSETA September 2011 – July 02 18 Learnership 2012

National Certiﬁ cate: Water and Water LGSETA February -2010 – 250 Waste Management December 2011

Certiﬁ cate: Occupation Directed University of Johannesburg and March 2011 – October 18 Education Training and Development LGSETA 2011 Practices

Further Education and Training Direct Marketing Association of February 2011 – 57 Certiﬁ cate: Marketing South Africa (DMASA) and Services October 2011 Seta (SSETA)

Workshop on Disciplinary Code and None 05 May 2011 21 Procedure Collective Agreement – Dr Pixley Ka Isaka Seme Local Municipality

96 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA MPUMALANGA

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Workshop on Organisational Rights None 07 April 2011 34 (Main Collective Agreement) for LLF – Mbombela Local Municipality

Training for Presiding Ofﬁ cers LGSETA 22-24 August 2011 29

PMS Workshop None 03 February 2012 06 36

Training for LLF – Bushbuckridge None 22 February 2012 01 12 Local Municipality

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 (Ehlanzeni District) and 01 December 2011 (Nkangala District)

MIG Workshop COGTA 21 51

*Water Conversation, Water Demand DWA 21 September 2011 20 participants Management and local Regulation Workshop (Cannot be veriﬁ ed whether councilors or ofﬁ cials)

*Farm Dweller Electrifi cation Department of Energy; COGTA, 27 July 2012 15 Participants Workshop Eskom, DARDLA (Cannot be verifi ed whether councilors or offi cials)

TOTAL 108 1051

Overall TOTAL 1159

SALGA Annual Report | 2011/12 97 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA NORTH WEST

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Workshop on Powers and Regulations SALGA 7 September 2011 14 07 (Troika + 1)

District-Based Workshops on Good PwC, Treasury, DLGTA 22, 26 , 30 September 69 18 Governance (King 3) 2011

Workshop on Cllrs’ welfare Support SALGA 28 September 2011 47 11

TOTAL 130 36

Overall TOTAL 166

98 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA NORTHERN CAPE

NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST BE COUNCILLORS OFFICIALS THE LEAD)

Councilor Induction Programme National Treasury, LGSETA and 04 – 08 July 2011 407 None DBSA

Advanced Councilor Induction for National Treasury 22- 23 February 2012 43 None Mayors and MMCs

Disability Framework Workshop 19 – 20 March 2012 30 15

Youth Development Conference Y-Age and Siyanda District 22 – 23 March 2012 19 101 Municipality

Spatial Planning Seminar Department of Rural Development 25 October 2011 29 26

Disaster Management Workshop NWU and USAID 16-18 November 2011, 5-7 December 2011

Municipal Oversight Training Provincial Treasury 18 October 2011 113

Presiding Ofﬁ cers & Prosecutors 26-27 January 2012, None 19 Capacitated on Labour Related Issues 02-03 February 2012

Main Collective Agreement and CoGTA 23 February 2012, None 66 Conditions of Service 28 February 2012

Institutional and Administrative 29 February 2012 70 None Systems DWA

Councilor Development Programme 20 February to 12 65 6 Water and Sanitation March 2012

Councilor Induction Programme – 27 March 2012 10 15 Waste Management

Executive Leadership Development LGSETA 15 – 16 April 2011 81 Programme (ELDP) University of Pretoria 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 1 115

SALGA Annual Report | 2011/12 99 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA WESTERN CAPE NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST COUNCILLORS OFFICIALS BE THE LEAD) Executive Leadership UWC Group 1 37 0 Development Programme (ELDP) 3-7 October 2011-Mod1 Was 38 31 October-4November 2011-Mod Cllr Chabaan of 2 Cape Winelands 28 November-2 December 2011- DM excused Mod 3 herself from the 23-27 January 2011-Mod 4 course on 17 20-24 February 2012-Mod 5 October 2011 26 March 2012-Mod 6 Group 2 42 0 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 PEPFAR HIV/AIDS Leadership UWC 26-30 March 2012 26 0 Dev Program CIP 2011 City Of Cape Town SALGA/CoCT 23 25 May 2011 Day 1 83 0 (CoCT) 23 25 May 2011 Day 2 73 0 23 25 May 2011 Day 3 71 0 CIP 2011 Train of Trainer SALGA/Treasury/DBSA 13 – 15 June 2011 2 8 Vulendlela CIP 2011 Training of Trainers WC SALGA/Treasury 24 June 2011 1 13 CIP 2011 Training of Trainers WC SALGA 7 July 2011 0 10 CIP 2011 WC Municipalities SALGA/Treasury 11 – 21 July 2011 Module 1 462 0 11 – 21 July 2011 Module 2 452 0 11 – 21 July 2011 Module 3 434 0 11 – 21 July 2011 Module 4 403 0 CIP 3 Mayors and MMCs for SALGA/Treasury 19 – 20 March 2012 Day 1 29 4 Finance Training 19 – 20 March 2012 Day 2 25 2 Conﬂ ict Resolution and Mediation Centre for conﬂ ict resolution 15 February 2012 15 0 Training

100 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA WESTERN CAPE NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST COUNCILLORS OFFICIALS BE THE LEAD) Council Portfolio Training WC DLG/WC Treasury Mod 1: Rules of Procedure: 274 0 Conduct at Meetings of a Municipal Council Mod 2: The Role of the Councillor 274 0 in Procurement Mod 3: Oversight in Local 296 0 Government Mod 4: Delegation of Powers in 296 0 Local Government Mod 5: The Constitutional Mandate 265 0 of Local Government Mod 6: The Law Governing 268 0 Decisions and Decision-making in Local Government Mod 7: Code of Conduct for 268 0 Councillors: Procedures for Disciplinary Hearings and Investigations Mod 8: The Roles and 235 0 Responsibilities of Municipal Councillors in terms of the Municipal Finance Management Act (MFMA) Mod 9: The Role of the Speaker 235 0 and Mayor in Local Government Water Safety Plans Technical DWA 14 -16 Nov 2011 16 0 Training Energy Efﬁ ciency Workshop SALGA/SEA/ 23 November 2011 Day 1 6 18 DLG 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 PGWC 18 October 2011 17 11 Workshop Landﬁ ll Site Management Dept Environmental Affairs 7 – 11 November 2011 0 28 Workshop Process Controller training DWA/US 1 April 2011 – 31 March 2012 0 202 Municipal Accreditation Workshop DHS/CoCT/SALGA/Treasury 11 November 2011 10 6

SALGA Annual Report | 2011/12 101 2.3.2 SALGA 10-PRIORITY OBJECTIVES

SALGA WESTERN CAPE NAME OF CAPACITY BUILDING IN PARTNERSHIP WITH: DATE NUMBER OF NUMBER OF INTERVENTION (SALGA MUST COUNCILLORS OFFICIALS BE THE LEAD) Ward Committee Training DLG Beaufort West 2-3 December 312 2011 (84 Total) Breede Valley 16-17 March 46 2012 ( 77 Total) Laingsburg 9-10 December 111 2011 (28 Total) Prince Albert 2-3 December 34 2011 (56 Total) Overstrand 24-25 February 13 2012 (53 Total) Cape Agulhas 24-25 February 92 2012 (69 Total) George 16-17 February 11 2012 (69 Total) Theewaterskloof 11 and18/2012, 125 18/2/2012 (154 Total) Service Improvement Training (SI) P3/SALGA WC 31 October -3 November 2011 0 34 and 8-9 February 2012 0 12 Roles and responsibilities of the SALGA NATIONAL 25 November 2011 20 0 Municipal P Accounts Committee Budget Week 24 November 2011 11 0 Integrated Development Planning SALGA 17/18 August 2011 21 0 People with Disabilities SALGA 16 November 2011 12 28 and 15 August 2011 HIV/AIDS SALGA 1February 2012 19 33 Youth Development SALGA 25 February 2012 4 43 Gender 24 -26 August 2011 2 21 Disaster management SALGA-ACDS 23-25 November 2011 614 2-4 April 2011 Municipal Development Goals and SALGA 13 Oct 2011 20 26 Human Dev Framework Water Sector Councillor DWA 31 January 2012 70 Councillors 33 Ofﬁ cials Waste Councillor Induction DBSA 20 March 2012 22 13 Waste Management TBC 28 February 2012 11 23 TOTAL 4892 659 5551

102 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY 9: REFORMING ORGANISED LOCAL GOVERNMENT A MORE EFFECTIVE, RESPONSIVE, AND FINANCIALLY VIABLE SALGA

PO9. Reform Organised Local Government - A more effective, responsive and ﬁ nancial viable SALGA 2011-12 FINAL PERFORMANCE

Not Achieved 4 36%

Fully Achieved 7 64%

SALGA CONSTITUTIONAL AMENDMENTS Conference and to the NEC on 28 March 2012 as part of the report on legislation to be addressed pertaining to both over The draft proposals for the SALGA constitutional amendments and under-regulation of LG and the review of OLG. documents were developed and submitted to the SALGA National Conference at the end of August 2011. The National SALGA presented the proposed amendments to the Parliament Conference resolved that a special conference be convened Portfolio Committee on Cooperative Governance and Traditional in 2012 to discuss and adopt proposed amendments to Affairs (21 June 2011) and the DCOG (08 February 2012). The the SALGA constitution. The National Executive Committee National Executive Committee of SALGA has begun engaging is currently considering a suitable date for this special with the Minister of Cooperative Governance on the review, conference. with a view to ﬁ nding 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

SALGA Annual Report | 2011/12 103 2.3.2 SALGA 10-PRIORITY OBJECTIVES

PRIORITY OBJECTIVE 10: 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 2011-12 FINAL PERFORMANCE

Not Achieved 2 33%

Fully Achieved 4 67%

ENERGY EFFICIENCY Further to the analysis conducted, workshops were conducted in three provinces (Western Cape, North West, and Gauteng) SALGA and the SDC have signed a memorandum of regarding energy effi ciency and renewable energy. The North understanding on energy effi ciency which is more focused on West and Gauteng workshops involved knowledge sharing a monitoring and implementation project. Five municipalities between offi cials and councillors regarding the implementation (King Sabatha Dalindyebo, Mbombela, Polokwane, of energy effi ciency programmes in municipalities. Rustenburg, and Sol Plaatje) have been nominated to pilot the project. This project will assist the nominated municipalities to SALGA Gauteng has partnered with University of Johannesburg reduce activities that contribute to greenhouse gas emissions. and the Department of Local Government and Housing (DLG This has two positive impacts - saving energy and mitigating and H) under the umbrella of EnerKey to explore the possibility climate change. of the West Rand District Municipality having an energy effi ciency housing project to be the fl agship of the province. As part of the project, SALGA has conducted an analysis regarding the implications of the implementation of energy The SALGA Western Cape workshop involved municipalities effi ciency and demand-side management programmes on that included the Eden District Municipality. These municipal fi nances. This analysis will provide municipalities with municipalities were guided through a process of developing an understanding regarding the impact of these programmes energy effi ciency and renewable energy strategies and action on municipal fi nances. The fi ndings of the analysis will assist plans for their municipalities. SALGA to infl uence national policy to address the implications of the implementation of energy effi ciency and demand-side management programmes on municipal fi nances.

104 SALGA Annual Report | 2011/12 2.3.2 SALGA 10-PRIORITY OBJECTIVES

ACID MINE DRAINAGE to integrate the Climate Change programmed in their IDPs. The guide would assist municipalities to respond to the issues Engagements with Gauteng municipalities took place during related to Climate Change. the reporting period. The fi rst engagement looked at the implications of Acid Mine Drainage (AMD) in the province As part of the response to climate change and ensuring that and also sought to fi nd possible solutions to this challenge. climate change is integrated to municipalities IDPs, Gauteng This led to a follow-up event which was a joint effort between has conducted an analysis for three municipalities in the West SALGA and Department of Local Government and Housing Rand Region using their Integrated Development Plans as (DLG and H). The event took the form of a conference and reference. The fi ndings indicated that these municipalities do addressed the following issues: not have Climate Change policies/strategies. However, there are some initiatives in place to mitigate climate change. Based • Findings of the study on the impact of AMD led by the on the outcome, SALGA has committed to assist municipalities Department of Water Affairs to integrate the climate change programmes in their IDPs and has partnered with GIZ, DEA, and Cogta to produce a climate • The status quo on AMD change toolkit which would assist municipalities to include climate change in their IDPs. • Planned interventions Along the initiative of assisting municipalities to include climate The role of municipalities and its fi nancial implications • change programmes in their IDPs, SALGA is conducting workshops on climate change at a provincial level with an CLIMATE CHANGE intention to deepen an understanding of the implications of climate change for developmental prospects in municipal SALGA participated and represented the interest of Local areas. This is done to deliberate on climate change issues Government at COP 17 from 29 November 2011 to 05 affecting local government and to identify priority initiatives December 2011. Key negotiating positions were interrogated that must be undertaken in the municipalities as a response and a local government summit (as a separate event) to these common challenges for inclusion in municipal plans deliberated on mitigation as opposed to adaptation with the (IDPs and SDBIPs). SALGA North West conducted a Climate sharing of best practices between local government being Change workshop on 29 September 2011 at the City of documented and presented. A detailed organisational report Matlosana Local Municipality in relation to the above issues. is to be generated by the national offi ce for adoption. SALGA Northern Cape convened Climate Change workshops SALGA partnered with SACN, DEA and eThekwini, and led the on 16 February 2012 and 29 March 2012. The workshops implementation of a Local Government Programme on Climate aimed to report on the outcomes of COP17 which was held Change (LGP4CC). The programme included a South African in Durban in December 2011. Additionally, SALGA Northern Mayors Conference on Climate Change, a BRICS session Cape assisted fi ve municipalities (Umsobomvu, Magareng, on Climate Change, an International Conference of Local Gamagara, Kheis, and Richtersveld) to develop climate Governments at COP 17, and a Local Government Pavilion change response plans. SALGA Limpopo fi nalised the Draft at COP 17. This created awareness and increased the profi le District Climate Change Response Plan for the province. of local government in the climate change response efforts. It led to the development of a guide to assist municipalities

SALGA Annual Report | 2011/12 105

106 SALGA Annual Report | 2011/12 Chapter 3

FINANCIAL OVERVIEW AND ANNUAL FINANCIAL STATEMENTS

This chapter contains reports by the SALGA Chief Financial Offi cer, Audit Committee Chairperson, Auditor-General, and Accounting Authority (Chairperson and Chief Executive Offi cer). It also contains fi nancial statements, statements of gifts, donations, sponsorship, and further detailed performance information summaries

SALGA Annual Report | 2011/12 107 3.1 report of the chief ﬁ nance ofﬁ cer

3.1.1 OVERVIEW OF OPERATING RESULTS

Nceba Mqoqi Chief Finance Ofﬁ cer

It is an honour to present the operating results for the year ended 31 March 2012.

The organisation realised an operating surplus of R12.3 million (2011: operating deﬁ cit of R8.3 million), thereby addressing the going-concern considerations from prior year.

The overall ﬁ nancial performance is R2.8 million or 29.6 percent better than budget.

Total operating income increased by 27 percent to R293.3 million (2011: R231.0 million). The increase is attributable to the revision of the membership levy formula in the 2011/2012 ﬁ nancial year as well as the buoyant sponsorship and donations received; and donor income recognised.

Operating expenditure for the year under review is R284.7 million (2011: R238.2 million) the increase of 20 percent was mainly to programmes targeted to membership support.

The organisation’s fi nancial management practices are sound as evidenced the Auditor-General expressing an unqualifi ed audit opinion on SALGA’s fi nances for a third consecutive year.

108 SALGA Annual Report | 2011/12 3.1 report of the chief ﬁ nance ofﬁ cer

3.1.1.1 Overview of operating results

Operating revenue composition

SALGA as an association of municipalities i.e. organised local government within the Republic, is primarily funded from membership fees.

Membership levy income remains the main source of revenue for SALGA, and comprises 75 percent of total income (2011: 63 percent).

For the year under review the organisation reviewed its membership levy formula, as a result of the increased mandate from its membership to fund programmes and its operations. The applicable formula for the year under review is as follows:

Municipality Type Applicable formula 2011/2012 ﬁ nancial year

Metropolitan municipality A ﬂ at rate of R9.5 million subject to an annual inﬂ ationary escalation.

District and Local municipalities 0.7% of the municipal annual salary budget with a minimum billable levy of R200 000 p.a.

Payment levels

As indicated above, SALGA is primarily dependent on membership fees for its operational sustainability, the payment levels - key performance indicator (KPI) is an important KPI in that it determines the rate at which the organisation is able to roll-out its programmes in pursuance of its mandate.

The payment levels for membership levies at 31 March 2012 remained steady at 89 percent (2011: 90 percent).

The convening of the National Conference on 29 August 2011 to 1 September 2011, which is an elective conference in terms

SALGA Annual Report | 2011/12 109 3.1 report of the chief ﬁ nance ofﬁ cer

of the SALGA’s constitution, had buoyed the collection rate during the year, such that it peaked at 97 percent by the ﬁ rst half of the ﬁ nancial year. The improvement is underpinned by the fact that SALGA’s constitution requires all members to be in good standing in order to participate freely at the Conference and exercise their right to vote.

The payment levels monthly intervals for the 2011/12 ﬁ nancial year is illustrated below.

The key feature of the payment level curve for the 2011/12 ﬁ nancial year is that payment levels of 97 percent were achieved on the eve of convening of the National Conference on 29 August 2011 to 1 September 2011, this was subsequently watered down during the year as the organisation raised additional invoices post the conference giving effect to the revised formula after adoption by Conference.

In terms of SALGA’s constitution membership levies are billed on 1st April and payable on 1st July each year, meaning that by 1st July the payment levels should be 100 percent. However, as a result of misaligned ﬁ nancial years between SALGA and its membership this is not always possible.

110 SALGA Annual Report | 2011/12 3.1 report of the chief ﬁ nance ofﬁ cer

The payment levels as at 31 March 2012 per province are tabulated below:

Payment levels Payment levels Province Current year 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 speciﬁ c programmes in order to alleviate the over-reliance on membership fees.

SALGA Annual Report | 2011/12 111 3.1 report of the chief ﬁ nance ofﬁ cer

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 SALGA Annual Report | 2011/12 3.1 report of the chief ﬁ nance ofﬁ cer

Adjusted Budget - 2011/2012 Province / Directorate Actual - 2011/2012 Financial Year Financial Year

R thousand

Ofﬁ ce of the Chief Executive R 35 683 R 37 574

Community Development R 5 233 R 6 583

Economic Development & Planning R 10 476 R 11 271

Finance & Corporate Services R 63 275 R 63 933

Governance, Inter-Governmental Relations R 6 420 R 6 467

Municipal Institutional Development R 7 704 R 8 191

Municipal Infrastructure & Service R 15 726 R 16 084

Strategy, Policy & Research R 5 988 R 6 201

Eastern Cape R 17 875 R 18 971

Free State R 17 759 R 18 912

Gauteng R 17 046 R 17 600

Limpopo R 13 572 R 14 340

Mpumalanga R 14 348 R 14 917

Northern Cape R 13 575 R 14 499

North West R 12 234 R 12 617

Western Cape R 15 197 R 16 552

Grand Total R 272 111 R 284 712

SALGA Annual Report | 2011/12 113 3.1 report of the chief ﬁ nance ofﬁ cer

The graphic representation of operating expenditure by business unit is illustrated below:

Organisational structure and operating expenditure

The key activities of the organisation are categorised in terms of SALGA’s core business which is externally focused i.e. fulﬁ lling the employer role for member municipalities; advocate, advise and lobby for member municipalities; as well as provide support. These are represented by the following business units:

• Municipal Institutional Development;

• Strategy; Policy and Research;

• Municipal Infrastructure and Services;

• Economic Development and Planning;

• Community Development;

• Governance and Inter-Governmental Relations;

In provincial ofﬁ ces the above mentioned activities/functions are replicated throughout with a regional and geographic bias.

114 SALGA Annual Report | 2011/12 3.1 report of the chief ﬁ nance ofﬁ cer

The activities undertaken in the two programmes (i) Offi ce of the Chief Executive; and (ii) Finance & Corporate Services are focused on organisational strategic direction; internal governance; marketing & communications; international relations and organisational support to all business units (programmes) in all facets of their activities – these range from offi ce accommodation; facilities management; ICT infrastructure & services etc. Although activities at provincial offi ces are primarily focused with programme implementation these also include though to a limited extent, activities focused on strategy and provincial governance functions:

In short, the activities that the national ofﬁ ce and the provincial ofﬁ ces perform are aligned as follows:

SALGA NATIONAL OFFICE SALGA PROVINCIAL OFFICES

• Organisation-wide strategy development. • Interpretation of the SALGA strategy and ensuring alignment of provincial tactical and operational plans to the organisation- • Function-speciﬁ c strategic leadership and direction. wide strategy. • Research and policy development. • Providing input to the organisational strategic formulation • Special projects, and sector-related restructuring (e.g. single process. public service, electricity, transport). • Provision of business information based on geographical • Serving as a sector-wide centre of knowledge and expertise. context. • Organisational-wide business planning. • Programme execution in the provinces and technical support (e.g. LGTAS). • Organisational-wide performance planning, monitoring and facilitation. • Provincial organisational performance delivery and reporting. • International relations (at national level). • Provision of support to municipalities regarding international relations (e.g. at the level of twinning arrangements in respect • Programme management integration and evaluation. of individual municipalities). • Intergovernmental relations (at national level). • Management of intergovernmental relations (e.g. at the • Stakeholder engagement. provincial level). • Driving and co-coordinating programmes with national strategic • Facilitating and promoting knowledge exchange between imperatives. municipalities.

SALGA’s core functions as outlined above account for most of the operating expenses at 64.3 percent or R183.2 million (2011: 53 percent R123.3 million), this covers the entire array of the service offering to member municipalities.

The Finance & Corporate Services function/activity which includes the provincial function of Finance & Administration is the 2nd highest activity in terms of cost and accounts for 22.5 percent or R63.9 million (2011: 34.8 percent or R83.3 million) of the total expenditure. Included in this fi gure is the non cash fl ow items such as depreciation on property, plant and equipment; amortisation of intangible assets; the provision for impairment trade receivables; as well as the normal operating expenses incurred in support of the other business units such as rent paid for offi ce accommodation; facilities management; provision of ICT infrastructure & services; human resource functions.

The activities within the Ofﬁ ce of the Chief Executive account for 13.2 percent or R37.6 million (2011: 12.7 percent or R 30.4 million) of the total operating expenditure. This programme is responsible for convening all the SALGA Governance structures such as the NEC meetings; the National Members Assembly; Audit Committee: Performance & Remuneration Panel etc. The legal and compliance function/activity also falls within this programme.

SALGA Annual Report | 2011/12 115 3.1 report of the chief ﬁ nance ofﬁ cer

Non-operating income

Total non-operating income / (expenditure) reﬂ ects a net non-operating income of R3.7 million for the year under review, whilst in prior year the result was a net non-operating expenditure of R1.0 million. The positive variance is attributable interest earned as a result of high positive cash balances maintained during the year.

Overview of operating results per Strategic Objective

SALGA’s annual performance plan (APP) is underpinned by the Change Agenda with its ﬁ ve strategic objectives listed hereunder:

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

2) Improve SALGA’s capacity to engage with stakeholders and lobby and advocate them on issues in the interests of member municipalities.

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

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

5) Improve SALGA’s corporate governance and internal functioning.

The change agenda strategic objectives enable the organisation to deliver more effectively on its mandate and to address corporate governance problems inherited from preceding years.

116 SALGA Annual Report | 2011/12 3.1 report of the chief ﬁ nance ofﬁ cer

The APP is also underpinned by the ten strategic priorities – Priority Outcomes that are designed to give focus to SALGA’s work as the organisation ﬁ nds it niche in a congested space, in a context where resource constraints are a considerable challenge.

The organisations actual expenditure against budget per strategic objectives are as follows:

Change Agenda

SALGA Annual Report | 2011/12 117 3.1 report of the chief ﬁ nance ofﬁ cer

Priority Outcomes

3.1.1.3 Financial position

The ﬁ nancial position of the organisation as at 31 March 2012 reﬂ ects positive net assets of R10.2 million (31-Mar-2011: negative net assets of R2.1 million).

In terms of solvency the organisation is solvent with an adequate asset coverage rate of 11 times. Also refer to the organisations going-concern considerations / assessment included in the report of the accounting authority – part 3.4.7.

3.1.1.4 Overview of donor funded projects

The organisation has three main donor funded projects; namely:

• The Masibambane project;

• The P3 Project; and

• The SDC project.

118 SALGA Annual Report | 2011/12 3.1 report of the chief ﬁ nance ofﬁ cer

Masibambane project

The Masibambane project is a European Union donor funded programme (funds are channelled throught DWA) aimed at capacity building, infrastructure development and ensuring viable and sustainable delivery of water and sanitation services.

2012 2011

Movement during the year - Masibambane

Opening balance 8 264 382 13 788 117

Additions during the year 4 196 073 6 526 014

Income recognition during the year (4 608 270) (12 049 749)

Deferred income 7 852 185 8 264 382

The P3 project

The P3 project is funded by the Swedish International Development Agency. The objective of this project is to provide municipalities with an analytical framework and an organisational set up that will improve dialogue between the business community and the municipality and that will also be used to promote strategy development and business related projects during the year of implementation. This project had a 24 month duration and it ended on 29 February 2012.

2012 2011

Movement during the year – P3

Opening balance (165 016) 2 955 426

Additions during the year 1 765 354 15

Income recognition during the year (2 789 587) (3 120 457)

Amount included in Trade and other receivables - Note 9 1 189 249 165 016

Deferred income --

The SDC project

The Swiss Agency for Development and Corporation agreed to support SALGA to build capacity in the monitoring and implementation of energy efﬁ ciency. The project has two components: Monitoring of energy efﬁ ciency targets in the building sector to the Department of Energy and Cooperation support to SALGA for the implementation of the capacity building component.

SALGA Annual Report | 2011/12 119 3.1 report of the chief ﬁ nance ofﬁ cer

2012 2011

Movement during the year – SDC

Opening balance 2 185 847 2 400 000

Additions during the year 6 151 1 690

Income recognition during the year (3 730 899) (215 843)

Amount included in Trade and other receivables - Note 8 1 538 901 -

Deferred income - 2 185 847

3.1.1.5 Conclusion and outlook for the year ahead

In an effort to alleviate the over-reliance on a single revenue source viz. membership fees, the organisation developed a funding model, that was adopted by members during the National Members Assembly (NMA) held on 11-12 May 2010 in Kimberley and presented to the Executive Authority and the National Treasury during 2010, in order to mitigate against the structural under-funding of the organisation versus its mandate vis-à-vis the mandatory participation in Inter-Governmental Relations forums. At reporting date the Executive Authority and National Treasury were still interrogating the funding model. It is still anticipated that the new funding model will be implemented in the 2013/2014 ﬁ nancial year.

As reported on note 34 to the annual ﬁ nancial statements; from 1st April 2012 i.e. the 2012/2013 ﬁ nancial year SALGA KwaZulu-Natal has rejoined the SALGA fold of a unitary organisation.

In conclusion I express my sincere appreciation to the Chief Executive Ofﬁ cer, Xolile George for his continued support; leadership; and strategic direction.

I also extend my appreciation to the Finance team for the immense contribution during the year.

NCEBA MQOQI

CHIEF FINANCIAL OFFICER

31 July 2012

120 SALGA Annual Report | 2011/12 3.2 report of the audit committee

Temba Zakuza Audit Committee Chairperson

The Audit Committee is pleased to present the report for the ﬁ nancial year ended 31 March 2012.

Audit Committee Members and Attendance

The SALGA Audit Committee is constituted in terms of section 77(a) of the Public Finance Management Act (PFMA) as well as Treasury Regulations 27.1.1; 3 and 4 and meets as per its approved terms of reference.

Four meetings were held during the 2011/2012 fi nancial year. These meetings were attended by external auditors, the Chief Executive Offi cer, Chief Financial Offi cer, the Head of Internal Audit, and other relevant corporate offi cials. The Chairperson of the Audit Committee reports on committee activities to the National Executive Committee on a regular basis. All members give a declaration at each Audit Committee meeting of any personal or fi nancial interests that may confl ict with their duties in this regard.

SALGA Annual Report | 2011/12 121 3.2 report of the audit committee

The table below highlights the Audit Committee members and the record of attendance of Audit Committee meetings:

Record of Attendance Member 21/05/11 29/07/11 25/11/11 22/03/12

Mr. Temba Zakuza- 9999 Chairperson

Ms. Octavia Matshidiso Matloa- 99 x 9 Member

Mr. Chose Andrew Kenilworth Choeu- 99 xx Member

Ms. Phumelele Ndumo-Vilakazi - x 999 Member

Mr. Mahlatsi Phineas Malaka- 9999 Member

Audit Committee Responsibility

The Audit Committee reported that it has complied with its responsibilities arising from Section 51(1) (a) (ii) and section 76(4) (d) of the PFMA and Treasury Regulations 27.1.The Audit Committee adopted the appropriate formal Terms of Reference as its Audit Committee Charter and has regulated its affairs in compliance with these Terms of Reference. It has discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control

The review of the effectiveness of the system of internal control by the Audit Committee is informed by the reports submitted by the Internal Audit Function and Management who are responsible for the development and maintenance of internal control system.

Signiﬁ cant weaknesses have been reported from the reports issued by the Internal Audit Function and Auditor General. These weaknesses continue to be addressed by management.

Risk Management

An organisational risk register that identiﬁ es the major risks and potential treats to the strategic and directorate / provincial objectives of SALGA has been developed. These risks are analysed, evaluated, and mitigated by means of suitable measures. Management has also developed action plans to reduce the severity of each risk exposure to an acceptable level. The Risk Management Unit reviews management assertions made on the status of implementation of action plans in the risk register and reports them to the Audit Committee on a quarterly basis.

Internal Audit Function followed a risk-based approach and developed an appropriate Internal Audit Coverage plan in order to provide assurance on the effectiveness of risk mitigating measures.

122 SALGA Annual Report | 2011/12 3.2 report of the audit committee

Evaluation of Financial Statements

The Audit Committee has:

• Evaluated the ﬁ nancial statements of South African Local Government Association for the period ended 31 March 2012.

• Reviewed the report of the Auditor General to management and management response thereto.

The Audit Committee concurs and accepts the conclusion of the Auditor-General on the annual ﬁ nancial statements. It is of the opinion that the audited ﬁ nancial statements be accepted and read together with the report of the Auditor-General.

TEMBA ZAKUZA CHAIRPERSON OF THE AUDIT COMMITTEE Pretoria 31 July 2012

SALGA Annual Report | 2011/12 123 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

I ntroduction

1. I have audited the fi nancial statements of the South African Local Government Association (SALGA) set out on pages 136 to 210, which comprise the statement of fi nancial position as at 31 March 2012, the statement of fi nancial performance, statement of changes in net assets and the cash fl ow statement for the year then ended, the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Accounting authority’s responsibility for the ﬁ nancial statements

2. The accounting authority is responsible for the preparation and fair presentation of these ﬁ nancial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the 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 ﬁ nancial 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 ﬁ nancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2001) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the ﬁ nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

5. I believe that the audit evidence I have obtained is sufﬁ cient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of SALGA as at 31 March 2012, and its fi nancial performance and cash fl ows for the year then ended in accordance with SA Standards of GRAP and the requirements of the PFMA.

Emphasis of matters

124 SALGA Annual Report | 2011/12 3.3 report of the auditor-general to parliament on south african local government association (salga) for the year ended 31 March 2012

7. I draw attention to the matters below. My opinion is not modiﬁ ed in respect of these matters.

Signiﬁ cant uncertainties

8. With reference to note 30 to the ﬁ nancial statements, the entity is a defendant in various lawsuits. The outcome of these lawsuits cannot be determined at present and no provision has been made for any liability that may result.

Additional matter

9. I draw attention to the matter below. My opinion is not modiﬁ ed in respect of this matter.

10. The supplementary information set out on pages 205 to 210 does not form part of the ﬁ nancial statements and is presented as additional information. I have not audited this schedule and, accordingly, I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

11. In a ccordance with the PAA and the General Notice issued in terms thereof, I report the following ﬁ ndings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

12. I 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 defi ned, verifi able, specifi c, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected objectives is assessed to determine whether it adequately reﬂ ects the facts (i.e. whether it is valid, accurate and complete).

14. There were no material ﬁ ndings on the annual performance report concerning the usefulness and reliability of the information.

Additional matter

15. Although not material ﬁ ndings concerning the usefulness and reliability of the performance information was identiﬁ ed in the annual performance report, I draw attention to the following matter below:

SALGA Annual Report | 2011/12 125 3.3 report of the auditor-general to parliament on south african local government association (salga) for the year ended 31 March 2012

Material adjustments to the annual performance report

16. Material misstatements in the annual performance report were identiﬁ ed during the audit, majority of which were corrected by management.

Compliance with laws and regulations

17. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual ﬁ nancial statements, performance and annual report

18. The fi nancial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 55(1)(a) and (b) of the PFMA. Material misstatements of disclosure items identifi ed by the auditors were subsequently corrected, resulting in the fi nancial statements receiving an unqualifi ed audit opinion.

Expenditure management

19. The accounting authority did not take effective and/or appropriate steps to prevent irregular expenditure, as per the requirements of 51(1)(b)(ii) of the PFMA and National Treasury Regulations 16A6.3(c) and 16A6.3(e).

Procurement and contract management

20. Sufﬁ cient appropriate audit evidence could not be obtained that goods and services of a transaction value above R500 000 were procured by means of inviting competitive bids and that deviations approved by the accounting ofﬁ cer were only if it was impractical to invite competitive bids, as required by Treasury Regulations 16A6.1 and 16A6.4.

21. The bid documentation did not specify the evaluation and adjudication criteria to be applied, as required by section 51(1) (a)(iii) of the PFMA.

Internal control

22. I cons idered internal control relevant to my audit of the fi nancial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the signifi cant defi ciencies that resulted in fi ndings on compliance with laws and regulations included in this report.

Leadership

23. The accounting authority did not exercise adequate oversight responsibility regarding ﬁ nancial and performance reporting and compliance with related internal controls.

126 SALGA Annual Report | 2011/12 3.3 report of the auditor-general to parliament on south african local government association (salga) for the year ended 31 March 2012

Financial and performance management

24. Management did not establish and communicate policies and procedure to enable and support understanding and execution of internal control objectives, processes and responsibilities.

25. Management did not review and monitor compliance with applicable laws and regulations

OTHER REPORTS

Investigations

26. An investigation initiated in 2006 by the National Prosecuting Authority to probe possible irregularities over procurement and supply chain procedures is still ongoing.

Donor funding

27. An audit as required by the funding agreement, for donor funds received to build capacity in the monitoring and implementation of energy efﬁ ciency is currently underway

Pretoria

31 July 2012

SALGA Annual Report | 2011/12 127 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 fi nancial statements that fairly present the state of affairs of SALGA as at year-end and the operating results for the year is the responsibility of the accounting authority. The Auditors are expected to report on the annual fi nancial statements. SALGA’s annual fi nancial statements are prepared on the basis of the accounting policies set out therein. These policies have been complied with on a continuous basis.

Approval and post-balance sheet events

The National Offi ce Bearer’s (NOB) approved the 2011/12 annual fi nancial statements set out on pages 136 to 210 and the performance information set out on pages 211 to 281 on 30 May 2012. The National Executive Committee (NEC) subsequently considered these on 24 August 2012. In the NEC’s opinion the annual fi nancial statements, fairly refl ect the fi nancial position of SALGA at 31 March 2012 and the results of its operations for the period then ended.

No material facts or circumstances have arisen between the date of the balance sheet and the date of approval, which affect the fi nancial position of SALGA as refl ected in these fi nancial statements.

The NEC is of the opinion that SALGA is ﬁ nancially sound and operates as a going concern, and it has formally documented the facts and assumptions used in its annual assessment of the organization’s status.

THABO MANYONI XOLILE GEORGE SALGA CHAIRPERSON CHIEF EXECUTIVE OFFICER

Pretoria

24 August 2012

128 SALGA Annual Report | 2011/12 3.4 report of the accounting authority

3.4.2 Composition of the Accounting Authority (National Executive Committee)

In terms of Section 49 of the PFMA, the governing body of SALGA is the accounting authority, also referred to as the National Executive Committee (NEC) in terms of the SALGA constitution.

The accounting authority of SALGA is comprised by the following councillors:

Name of member Role Provincial chairperson (where applicable)

Cllr. T. Manyoni Chairperson

Cllr. M. Nawa Deputy Chairperson

Cllr. N. Sihlwayi Deputy Chairperson

Cllr. N. Hermans Deputy Chairperson

Cllr. F. Maboa-Boltman Additional member

Cllr. D. Mazibuko Additional member

Cllr. S. Mashilo Additional member Mpumalanga

Cllr. C. Neethling Additional member

Cllr. J. Matlou Additional member

Cllr. B.P. Moloi Additional member

Cllr. S. Pillay Additional member (co-opted)

Cllr. N. Meth Ex ofﬁ cio member Eastern Cape

Cllr. B. Mdzangwa Ex ofﬁ cio member Free State

Cllr. P. Tau Ex ofﬁ cio member Gauteng

Cllr. S.W. Mdabe Ex ofﬁ cio member KwaZulu-Natal

Cllr. D. Magabe Ex ofﬁ cio member Limpopo

Cllr. W. Johnson Ex ofﬁ cio member Northern Cape

Cllr. G.K. Lobelo Ex ofﬁ cio member North West

Cllr. D. Qually Ex ofﬁ cio member Western Cape

Mr. Xolile George Ex ofﬁ cio member (CEO)

The current NEC were elected in the last National Conference held on 29 August 2011 to 1 September 2011, in terms of clause 11.1 of the SALGA constitution, where the chairperson; three (3) deputy-chairpersons; and six (6) additional members were elected. The NEC has exercised its powers as conferred by the SALGA constitution in ﬁ lling any vacancies in between National Conference in terms of clause 11.3 of the SALGA constitution. The NEC can co-opt up to 4 additional members as members of the NEC and as at 31 March 2012 the NEC had one conﬁ rmed co-option.

SALGA Annual Report | 2011/12 129 3.4 report of the accounting authority

The term of the SALGA NEC is 5 years; the current term is due to end at the conclusion of the current political term of ofﬁ ce for local government.

With the exception of Xolile George who serves as an ex offi cio member in his capacity as Chief Executive Offi cer of the organisation, all other NEC members are councillors and are deemed to be ‘independent non-executive directors’ of SALGA as defi ned for state-owned enterprises (SOEs) in the September 2002 Protocol on Corporate Governance in the Public Sector. A non-executive director is a person who has not been employed by the SOE in any executive capacity for the preceding three fi nancial years; and is (in relation to the SOE) not a signifi cant supplier or customer, has no signifi cant contractual relationship and is not a professional advisor, other than in his or her capacity as a director. 3.4.3 National Executive Committee members’ interest in contracts

All NEC members are required to complete a register of interests. This register is updated on an annual basis. Refer to note 31 which contains full disclosure on related parties. 3.4.4 Remuneration of National Executive Committee members’ and NEC sub-committees

Members of the NEC are not remunerated for the ofﬁ ce they occupy.

Non-NEC members of the audit committee and the performance and remuneration committee are reimbursed on an hourly claims basis according to professional fee schedules. 3.4.5 National Executive Committee Oversight Sub-Committees

The NEC has established sub-committees in accordance with the requirements of the King code on corporate governance. These governance committees discharge their role as oversight committees and report to the NEC.

3.4.5.1 Audit Committee

The organizations audit committee is constituted in terms of section 77(a) of the Public Finance Management Act (PFMA); as well as per regulation 27.1.1; and 27.1.4 of the PFMA Treasury Regulations (2005).

The audit committee is constituted as follows:

Name of member Role

Mr. Temba Zakuza Chairperson

Ms. Octavia Matloa Member

Mr. Phineas Malaka Member

Mr. Chose Choeu Member

Ms. Phumelele Ndumo-Vilakazi Member

The members of the audit committee have been remunerated as follows, for the year under review:

NEC members are not remunerated for the ofﬁ ce they occupy.

130 SALGA Annual Report | 2011/12 3.4 report of the accounting authority

Name of member Attendance fees Reimbursed travel cost Total

Mr. Temba Zakuza 45 472 1 441 46 913

Ms. Octavia Matloa 30 228 295 30 523

Mr. Phineas Malaka 34 350 6 111 40 461

Mr. Chose Choeu 20 610 886 21 496

Ms. Phumelele Ndumo-Vilakazi 37 098 1 328 38 426

Total 167 758 10 061 177 819

3.4.5.2 Performance and Remuneration Committee

The organization has a performance and remuneration committee that supports implementation and institutionalisation of performance management within the organization. The Panel is an advisory body to the NEC authorised to review, guide and support SALGA in the proper implementation and strategic alignment of the organizational performance management policy and procedures, remuneration philosophy and strategy.

The performance and remuneration committee is constituted as follows:

Name of member Role

Mr. Michael J Oliver Chairperson

Ms. Elizabeth Dlamini-Khumalo Member

Mr. Blake Mosley-Lefatole Member

Dr. Faizel Randera Member

Mr. Zwelibanzi Mntambo Member

Ms. L. Machaba-Abiodum Member

Cllr T. Manyoni Ex ofﬁ cio member

Cllr. N. Hermans Ex ofﬁ cio member

Cllr. N. Sihlwayi Ex ofﬁ cio member

The members of the performance and remuneration committee have been remunerated as follows, for the year under review:

SALGA Annual Report | 2011/12 131 3.4 report of the accounting authority

NEC members are not remunerated for the ofﬁ ce they occupy.

Name of member Attendance fees Reimbursed travel cost Total

Mr. Michael J Oliver 81 473 1 398 82 871

Ms. Elizabeth Dlamini-Khumalo 64 890 1 540 66 430

Mr. Blake Mosley-Lefatole 7 210 98 7 308

Dr. Faizel Randera 57 680 1 457 59 137

Mr. Zwelibanzi Mntambo 60 564 1 417 61 981

Ms. L. Machaba-Abiodum 11 536 295 11 831

Ms. Boitumelo L Mahlangu 11 536 5 532 17 068-

Cllr. N. Hermans - - -

Cllr. N. Sihlwayi - - -

Total 294 889 11 737 306 626 3.4.6 Remuneration of Senior Management

Senior Management includes the Chief Executive Offi cer, Executive Directors and Provincial Executive Offi cers. The breakdown of Senior Management Remuneration forms part of the annual fi nancial statements and reported on note 21.

Annual Remuneration 2012 2011

Annual Remuneration 18 024 716 16 166 781

Contribution to UIF, Medical and Pension 201 269 261 081

Subsistence and Travel Allowance 133 953 455 379

Performance related awards 1 533 403 1 410 114

Total 19 893 341 18 293 355 3.4.7 Going-concern considerations

The SALGA NOB reviewed the annual fi nancial statements for 2011/12 fi nancial year and information regarding the forthcoming fi nancial year, to assess the going concern status of SALGA. Based on this information, the NOB has every reason to believe that SALGA will remain a going concern.

• SALGA continues to receive Parliamentary grant funding. The total Parliamentary allocation for 2011/12 is R25.5 million. The projected MTEF allocation for 2012/13; 2013/14; and 2014/15 is R26.7 million; R26.2 million; and R27.4 million respectively.

• In terms of other funding SALGA has succeeded in raising R12.8 million (2011: R6.0 million) in sponsorship income (over 100 percent increase).

• The organisation has secured funding from donors to pursue its mandate inn ensuing years to the tune of R4.0 million.

132 SALGA Annual Report | 2011/12 3.4 report of the accounting authority

• At 31 March 2012, the statement of ﬁ nancial position shows that it has already secured R1.6 million (2011: R1.8 million as ‘income received in advance’. The amount represents membership levies paid in advance by member municipalities.

• The statement of ﬁ nancial position reﬂ ects total assets of the organisation at 31 March 2012 at R 72.6 million (2011: R52.9 million). This represents an increase in the net asset value.

• The organisation is solvent with total assets exceeding total liabilities by R10.2 million. Net assets of the organisation increased over the period.

• The solvency rate is 1.16 times, this means that SALGA had a liability of 100 cents for each 116 cents it holds in total assets.

• Total currents assets at R48.7 million are less than the current liabilities of R60.7 million. The current ratio is then 80.2% which means that SALGA had 80 cents in current assets to cover every 100 cents of current liabilities. However, it is worth noting that R19.2 million worth of current liabilities relate to rolled-over funds, that will reduce once the work is performed and thereby result in a favourable current ratio.

• The organisations operations resulted in an operating surplus of R12.3 million, and the MTEF budgets projects operating surpluses in terms of the organisational strategy.

• The organisation has also reviewed its membership levy formula for the 2012/2013 ﬁ nancial year, resulting in a projected growth for membership levy income.

Other aspects considered in assessing the organisation’s going-concern are the following:

The Constitution of the Republic of South Africa in section 163 envisages an important role for organised local government and provides that an Act of Parliament must cater for the recognition of national and provincial organizations representing municipalities, and determine procedures by which local government may consult the national and provincial government, designate representatives to participate in the National Council of Provinces (NCOP) and nominate persons to the Financial and Fiscal Commission (FFC).

Hence the organisations’ existence is as a result of the Organised Local Government Act, 1997 (OLGA) that was enacted by Parliament. SALGA is recognised as the sole voice of organised local government in the Republic of South Africa.

There is no indication in the foreseeable future that the recognition granted by the Minister per the Government Gazette, regulation gazette no. 6087, volume 391 dated 30 January 1998, no. 18645 may be revoked, thus the NEC came to the conclusion that SALGA will be in existence for the next 12 months.

SALGA is constituted by its member municipalities that cover the entire land surface area of the Republic. In terms of the governance model of the Republic which creates the three spheres of government namely Local; Provincial and National there is no indication in the near future of a change in the governance model. Although the KwaZulu-Natal province has instructed the member municipalities from that province to no longer remit membership levies to SALGA, despite these developments the NEC is of the opinion that SALGA shall continue. Furthermore, there is agreement that Kwanaloga shall come back into the SALGA fold post the 18 May 2011 local government elections.

SALGA Annual Report | 2011/12 133 3.4 report of the accounting authority

Lastly, the organisation has submitted the outcome of its revenue enhancement model to the Executive Authority (Department of Co-operative Governance and Traditional Affairs) as part of the MTEF submission for the 2011/12 to 2013/14 planning cycle, and made necessary representations relating to the adequacy of the SALGA funding from the national ﬁ scas. The submission was followed by a formal engagement between the SALGA Chairperson and the Minister of Finance on 30 September 2010; and a further engagement between the CEO of SALGA and the Deputy Minister of Finance on 25 January 2011. However, the Funding model is not fully implemented in the MTEF cycle as the Executive Authority and National Treasury are interrogating the model. The NEC is convinced that once the interrogation process has been ﬁ nalised, the funding model shall be implemented, hence the view that SALGA shall continue. 3.4.8 Fruitless and wasteful expenditure and Irregular expenditure

3.4.8.1 Fruitless and wasteful expenditure

No fruitless and wasteful expenditure is disclosed in the current year, as the organisation had over provided for interest and penalties in the prior year resulting in a credit balance of R287 782; also refer to note 35 to the ﬁ nancial statements.

3.4.8.2 Irregular expenditure

The organisation incurred expenditure deemed irregular amounting to R37.0 million, due to the organisation not disclosing the adjudication criteria i.e. the 80/20 evaluation criteria in its “Requests for Quotations” (RFQ) sent to potential bidders; and the failure to notify the National Treasury within 10 days of an instant where PFMA Treasury regulation 16.A6.4 was used to procure goods or services in excess of R1 million. Disciplinary action has been taken against the affected personnel as well as implemented improvements to the control environment. (also see note 36 to the ﬁ nancial statements).

The irregular expenditure register has an opening balance of expenditure incurred in periods prior to 2007 of R 16.8 million. Pursuant to the appearance of the organisation before SCOPA on 13 April 2010, where it was, inter alia, reported that the affected employees were placed on suspension and disciplinary hearings instituted. The expenditure was recorded in the register as a result of the affected employees not adhering to SALGA’s internal policies as well as a result of a forensic investigation instituted by the organisation, focusing on the supply chain processes. Following the legal advice obtained by the organisation this amount has been condoned. 3.4.9 Losses. Irregularities and other matters

Losses or irregularities are referred to in Section 55(2)(b) of the PFMA. The organisations Materiality and Signiﬁ cance Framework was developed and agreed to in terms of PFMA Treasury Regulation 28.3.1.

In terms of Section 55, the following are speciﬁ ed as matters that must be reported on in the annual report and ﬁ nancial statements:

(i) any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful

(i) expenditure that occurred during the ﬁ nancial year;

(ii) any criminal or disciplinary steps taken as a consequence of such losses or irregular expenditure or fruitless

(iii) and wasteful expenditure;

134 SALGA Annual Report | 2011/12 3.4 report of the accounting authority

(iv) any losses recovered or written off;

(v) any ﬁ nancial assistance received from the State and commitments made by the State on its behalf; and

(vi) any other matters that may be prescribed. 3.4.10 Materiality and signiﬁ cance framework

The organisation has developed and the NEC approved the materiality and signifi cance framework; developed in terms of the PFMA Treasury Regulation 28.3.1. The framework defi nes aspects of signifi cance and materiality in terms of sections 54(2) and 55(2(b)(i) of the PFMA.

The framework, has been agreed to with the Executive Authority as required by the PFMA Treasury Regulation 28.3.1. 3.4.11 Legal proceedings

The organisation is involved in a number of litigation matters disclosed in note 30 to the ﬁ nancial statements. These matters relate to civil matters.

SALGA Annual Report | 2011/12 135 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 ﬁ nancial assets 5 536 178 328 154 23 944 893 23 450 698 Total Assets 72 615 381 52 877 109

Liabilities Current Liabilities Finance lease liability - exchange transactions 12 757 036 744 572 Operating lease liability - exchange transactions 7 4 994 063 2 560 408 Trade and other payables - exchange transactions 15 35 670 511 37 131 525 Unspent conditional grants and receipts 13 11 445 562 3 223 298 Deferred income - exchange transactions 14 7 852 185 10 450 229 60 719 357 54 110 032 Non-Current Liabilities Finance lease liability - exchange transactions 12 1 055 062 274 830 Retirement beneﬁ t obligation 8 619 604 572 832 1 674 666 847 662 Total Liabilities 62 394 023 54 957 694 Net Assets 10 221 358 (2 080 585)

Net Assets Reserves Revaluation reserves 11 2 259 566 2 259 566 Accumulated surplus 7 961 792 (4 340 151) Total Net Assets 10 221 358 (2 080 585)

136 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

STATEMENT OF FINANCIAL PERFORMANCE for the 12 months for the 12 months ended 31 March ended 31 March Figures in Rand Note(s) 2012 2011

Revenue from exchange transactions 17 246 752 771 199 712 050 Other operating revenue 19 46 525 260 31 278 148 Operating expenses (284 712 398) (238 234 924) Operating (deﬁ cit) / surplus 20 8 565 633 (7 244 726) Investment income 22 2 888 249 1 792 085 Fair value adjustments 23 1 300 000 100 000 Finance costs 25 (451 939) (2 927 435) Surplus / (deﬁ cit) for the year 12 301 943 (8 280 076)

SALGA Annual Report | 2011/12 137 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

STATEMENT OF CHANGES IN NET ASSETS Revaluation Accumulated Figures in Rand Total net assets reserve surplus

Opening balance as previously reported 2 259 566 3 761 244 6 020 810 Adjustments Prior year adjustments - 178 681 178 681

Balance at 1 April 2010 as restated 2 259 566 3 939 925 6 199 491 Changes in net assets Deﬁ cit for the year - (8 280 076) (8 280 076) Total changes - (8 280 076) (8 280 076) Balance at 1 April 2011 2 259 566 (4 340 151) (2 080 585) Changes in net assets Surplus for the year - 12 301 943 12 301 943 Total changes - 12 301 943 12 301 943 Balance at 31 March 2012 2 259 566 7 961 792 10 221 358 Note(s) 11

138 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

CASH FLOW STATEMENT Figures in Rand Note(s) 2012 2011

Cash ﬂ ows from operating activities Receipts Cash receipts from customers 288 459 580 244 372 454 Interest income 2 888 249 1 792 085 291 347 829 246 164 539 Payments Cash paid to suppliers and employees (275 051 979) (231 397 337) Finance costs (451 939) (2 927 435) (275 503 918) (234 324 772) Net cash ﬂ ows from operating activities 28 15 843 911 11 839 767

Cash ﬂ ows from investing activities

Purchase of property, plant and equipment 3 (2 134 495) (7 067 815) Proceeds from sale of property, plant and equipment 3 131 535 199 133 Net movement in ﬁ nancial assets 3 (208 024) - Net cash ﬂ ows from investing activities (2 210 984) (6 868 682)

Cash ﬂ ows from ﬁ nancing activities Finance lease payments 792 699 (1 084 710)

Net increase / (decrease) in cash and cash equivalents 14 425 626 3 886 375 Cash and cash equivalents at the beginning of the year 4 496 275 609 900 Cash and cash equivalents at the end of the year 10 18 921 901 4 496 275

SALGA Annual Report | 2011/12 139 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES 1. Presentation of Annual Financial Statements

The annual ﬁ nancial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

These annual ﬁ nancial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless speciﬁ ed otherwise. They are presented in South African Rand.

A summary of the signiﬁ cant accounting policies, which have been consistently applied, are disclosed below.

These accounting policies are consistent with the previous period.

1.1 Signiﬁ cant judgements and sources of estimation uncertainty

In preparing the annual fi nancial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual fi nancial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual fi nancial statements. Signifi cant judgements include:

Trade receivables and other receivables

SALGA assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or defi cit, the surplus makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash fl ows from a fi nancial asset.

The impairment for trade receivables and loans and receivables is calculated on a portfolio basis, based on historical loss ratios, adjusted for national and industry-speciﬁ c economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled to the estimated loss emergence period.

Fair value estimation

The fair value of fi nancial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined by using valuation techniques. SALGA uses a variety of methods and makes assumptions that are based on market conditions existing at the end of each reporting period. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. Other techniques, such as estimated discounted cash fl ows, are used to determine fair value for the remaining fi nancial instruments.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.

The fair value of fi nancial liabilities for disclosure purposes is estimated by discounting the future contractual cash fl ows at the current market interest rate that is available to the entity for similar fi nancial instruments.

Impairment testing

140 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES The recoverable amounts of cash-generating units and individual assets have been determined based on the higher of value- in-use calculations and fair values less costs to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the impairment assumption may change which may then impact our estimations and may then require a material adjustment to the carrying value of goodwill and tangible assets.

SALGA reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable.

Provisions

Provisions for impairment of trade receivables were raised and management determined an estimate based on the information available.

Additional disclosures of these estimates of provisions are included in note 9 - Trade and other receivables.

Post retirement medical beneﬁ ts

The present value of the post retirement medical obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement medical obligations.

The entity determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outﬂ ows expected to be required to settle the medical obligations. In determining the appropriate discount rate, SALGA considers the medical inﬂ ation and that have terms to maturity approximating the terms of the related medical liability.

Other key assumptions for medical obligations are based on current market conditions. Additional information is disclosed in Note 8.

Effective interest rate

The entity used the prime interest rate to discount future cash ﬂ ows for creditors and/or expenditure and the R157 government bond rate to discount the future cash ﬂ ows in debtors and/or revenue.

Allowance for doubtful debts

On debtors an impairment loss is recognised in surplus and deﬁ cit when there is objective evidence that it is impaired. The impairment is measured as the difference between the debtors carrying amount and the present value of estimated future cash ﬂ ows discounted at the effective interest rate, computed at initial recognition.

1.2 Investment property

Investment property is property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciation or both, rather than for:

SALGA Annual Report | 2011/12 141 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES • use in the production or supply of goods or services or for

• administrative purposes, or

• sale in the ordinary course of operations.

Owner-occupied property is property held for use in the production or supply of goods or services or for administrative purposes.

Investment property is recognised as an asset when, it is probable that the future economic beneﬁ ts or service potential that are associated with the investment property will ﬂ ow to the entity, and the cost or fair value of the investment property can be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired at no cost or for a nominal cost, its cost is its fair value as at the date of acquisition.

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a property. If a replacement part is recognised in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised.

Re-measurements to fair value are made annually such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

Fair value

Subsequent to initial measurement investment property is measured at fair value.

The fair value of investment property reﬂ ects market conditions at the reporting date.

A gain or loss arising from a change in fair value is included in net surplus or deﬁ cit for the period in which it arises.

1.3 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

Initial recognition

The cost of an item of property, plant and equipment is recognised as an asset when:

• it is probable that future economic beneﬁ ts or service potential associated with the item will ﬂ ow to the entity; and

• the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

142 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 signiﬁ cant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

The cost of an item of property, plant and equipment is recognised as an asset if, and only if: a. it is probable that future economic beneﬁ ts or service potential associated with the item will ﬂ ow to the entity, and the cost or fair value of the item can be measured reliably. b. Where an asset is acquired at a cost that is less than one thousand Rand it’s cost is fully depreciated in the period in which it is acquired.

Subsequent expenditure

Subsequent expenditure of an item of property, plant and equipment is recognised as an asset if, and only if:

(a) it is probable that future economic beneﬁ ts or service potential associated with the item will ﬂ ow to the entity, and

(b) the cost or fair value of the item can be measured reliably.

Costs of the day-to-day servicing are recognised in surplus and deﬁ cit as incurred.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

The useful lives of items of property, plant and equipment have been assessed as follows:

SALGA Annual Report | 2011/12 143 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES

Item Average useful life Land Indefi nite Buildings 20 to 75 years Furniture and fi xtures 3 to 20 years Motor vehicles 15 years Offi ce equipment 3 to 20 years IT equipment 9 to 12 years Leased assets Lease term

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

The depreciation charge for each period is recognised in surplus or deﬁ cit unless it is included in the carrying amount of another asset.

Impairment losses (reversals) are recognised when internal sources of information are evident such as physical damage to the asset / deterioration (improvement) of asset condition.

An impairment loss is recognised when signifi cant long-term changes in the manner the asset is used, or expected to be used during the period or in the near future, that will have an adverse effect on the entity. These changes may include the asset becoming idle, plans to discontinue the asset or plans to dispose of an asset before the previously expected date. A signifi cant increase in the cost of maintaining or operating the asset or signifi cantly lower service or output levels than those originally expected.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic beneﬁ ts or service potential expected from the use of the asset.

The gain or loss arising from the de-recognition of an item of property, plant and equipment is included in surplus or deﬁ cit when the item is derecognised. The gain or loss arising from the de-recognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.4 Intangible assets

An asset is identiﬁ ed as an intangible asset when it:

• is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, assets or liability; or

• arises from contractual rights or other legal rights, regardless whether those rights are transferable or separate from the entity or from other rights and obligations.

An intangible asset is recognised when:

144 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES • it is probable that the expected future economic beneﬁ ts or service potential that are attributable to the asset will ﬂ ow to the entity; and

• the cost or fair value of the asset can be measured reliably.

Intangible assets are initially recognised at cost.

An intangible asset acquired at no or nominal cost, the cost shall be its fair value as at the date of acquisition.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

An intangible asset arising from development (or from the development phase of an internal project) is recognised when:

• it is technically feasible to complete the asset so that it will be available for use or sale.

• there is an intention to complete and use or sell it.

• there is an ability to use or sell it.

• it will generate probable future economic beneﬁ ts or service potential.

• there are available technical, ﬁ nancial and other resources to complete the development and to use or sell the asset.

• the expenditure attributable to the asset during its development can be measured reliably.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indeﬁ nite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inﬂ ows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a fi nite useful life after it was classifi ed as indefi nite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful life Computer software, internally generated 2 to 5 years

SALGA Annual Report | 2011/12 145 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES Intangible assets are derecognised:

• on disposal; or

• when no future economic beneﬁ ts or service potential are expected from its use or disposal.

The gain or loss is the difference between the net disposal proceeds, if any, and the carrying amount. It is recognised in surplus or deﬁ cit when the asset is derecognised.

1.5 Financial instruments

Initial recognition and measurement

Financial instruments are recognised initially when the entity becomes a party to the contractual provisions of the instruments.

The entity classifi es fi nancial instruments, or their component parts, on initial recognition as a fi nancial asset, a fi nancial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial instruments are measured initially at fair value, except for equity investments for which a fair value is not determinable, which are measured at cost and are classiﬁ ed as available-for-sale ﬁ nancial assets.

For ﬁ nancial instruments which are not at fair value through surplus or deﬁ cit, transaction costs are included in the initial measurement of the instrument.

Regular way purchases of ﬁ nancial assets are accounted for at trade date.

Impairment of ﬁ nancial assets

At each end of the reporting period the entity assesses all fi nancial assets, other than those at fair value through surplus or defi cit, to determine whether there is objective evidence that a fi nancial asset or group of fi nancial assets has been impaired.

For amounts due to the entity, signifi cant fi nancial diffi culties of the debtor, probability that the debtor will enter bankruptcy and default of payments are all considered indicators of impairment.

Impairment losses are recognised in surplus or deﬁ cit.

Impairment losses are reversed when an increase in the ﬁ nancial asset’s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the ﬁ nancial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised.

Reversals of impairment losses are recognised in surplus or deﬁ cit except for equity investments classiﬁ ed as available-for-sale.

Where ﬁ nancial assets are impaired through use of an allowance account, the amount of the loss is recognised in surplus or deﬁ cit within operating expenses. When such assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses.

146 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 defi cit when there is objective evidence that the asset is impaired. Signifi cant fi nancial diffi culties of the debtor, probability that the debtor will enter bankruptcy or fi nancial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash fl ows discounted at the effective interest rate computed at initial recognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the defi cit is recognised in surplus or defi cit within operating expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in surplus or defi cit.

Trade and other receivables are classiﬁ ed as loans and receivables.

Trade and other payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Trade and other payables are classiﬁ ed as ﬁ nancial liabilities at amortised cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insigniﬁ cant risk of changes in value. These are initially and subsequently recorded at fair value.

Bank overdraft and borrowings

Bank overdrafts and borrowings are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the entity’s accounting policy for borrowing costs.

1.6 Leases

A lease is classifi ed as a fi nance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classifi ed as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of ﬁ nancial position at amounts equal to the fair value

SALGA Annual Report | 2011/12 147 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 ﬁ nancial position as a ﬁ nance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the entity’s incremental borrowing rate.

Minimum lease payments are apportioned between the ﬁ nance charge and reduction of the outstanding liability. The ﬁ nance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1.7 Impairment of non-cash-generating assets

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic beneﬁ ts or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic beneﬁ ts or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of ﬁ nancial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding ﬁ nance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use.

Useful life is either:

• (a) the period of time over which an asset is expected to be used by the entity; or

• (b) the number of production or similar units expected to be obtained from the asset by the entity.

Criteria developed by SALGA to distinguish non-cash-generating assets from cash-generating assets are as follows: SALGA’s mandate or intention is not in pursuit of commercial return but service delivery to its members, therefore assets acquired by SALGA are solely for service delivery or facilitate service delivery to its members (i.e. administrative in nature).

148 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 ﬂ ows independently from other assets, nor does its assets form part a group of assets that generate cash ﬂ ows independently from other assets.

Identiﬁ cation

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also test a non-cash-generating intangible asset with an indeﬁ nite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

Value in use of an asset is the present value of the asset’s remaining service potential.

The present value of the remaining service potential of an asset is determined using the following approach:

Service units approach

The present value of the remaining service potential of the asset is determined by reducing the current cost of the remaining service potential of the asset before impairment, to conform to the reduced number of service units expected from the asset in its impaired state. The current cost of replacing the remaining service potential of the asset before impairment is determined as the depreciated reproduction or replacement cost of the asset before impairment, whichever is lower.

1.8 Employee beneﬁ ts

Short-term employee beneﬁ ts

The cost of short-term employee beneﬁ ts, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary beneﬁ ts such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The organisation remunerates its employees on a total cost to company basis, this package includes the organisation’s portion of contribution in respect of retirement beneﬁ ts and encourages the staff to invest in the retirement funds and annuities.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.

SALGA Annual Report | 2011/12 149 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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.

Deﬁ ned beneﬁ t plans

For defi ned benefi t plans the cost of providing the benefi ts is determined using the projected credit method.

Actuarial valuations are conducted on an annual basis by independent actuaries separately for each plan.

Gains or losses on the curtailment or settlement of a deﬁ ned beneﬁ t plan is recognised when the entity is demonstrably committed to curtailment or settlement.

The amount recognised in the statement of fi nancial position represents the present value of the defi ned benefi t obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service costs, and reduces by the fair value of plan assets.

Other post retirement obligations

The entity provides post-retirement health care beneﬁ ts upon retirement to some retirees.

The entitlement to post-retirement health care benefi ts is based on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefi ts are accrued over the period of employment. Independent qualifi ed actuaries carry out valuations of these obligations. The entity also provides a gratuity and housing subsidy on retirement to certain employees. An annual charge to income is made to cover both these liabilities.

1.9 Provisions and contingencies

Provisions are recognised when:

• the entity has a present obligation as a result of a past event;

• it is probable that an outﬂ ow of resources embodying economic beneﬁ ts or service potential will be required to settle the obligation; and

• a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reﬂ ects current market assessments of the time value of money and the risks speciﬁ c to the liability.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the

150 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 refl ect the current best estimate. Provisions are reversed if it is no longer probable that an outfl ow of resources embodying economic benefi ts or service potential will be required, to settle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to reﬂ ect the passage of time. This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating deﬁ cits.

If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.

A constructive obligation to restructure arises only when an entity:

• has a detailed formal plan for the restructuring, identifying at least:

− the activity/operating unit or part of a activity/operating unit concerned;

− the principal locations affected;

− the location, function, and approximate number of employees who will be compensated for services being terminated;

− the expenditures that will be undertaken; and

− when the plan will be implemented; and

• has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.

A restructuring provision includes only the direct expenditures arising from the restructuring, which are those that are both:

• necessarily entailed by the restructuring; and

• not associated with the ongoing activities of the entity

No obligation arises as a consequence of the sale or transfer of an operation until the entity is committed to the sale or transfer, that is, there is a binding agreement.

After their initial recognition contingent liabilities recognised in business combinations that are recognised separately are subsequently measured at the higher of:

SALGA Annual Report | 2011/12 151 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES • the amount that would be recognised as a provision; and

• the amount initially recognised less cumulative amortisation.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 30.

1.10 Revenue from exchange transactions

Revenue is the gross infl ow of economic benefi ts or service potential during the reporting period when those infl ows result in an increase in net assets.

An exchange transaction is one in which the municipality receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisﬁ ed:

• the amount of revenue can be measured reliably;

• it is probable that the economic beneﬁ ts or service potential associated with the transaction will ﬂ ow to the entity;

• the stage of completion of the transaction at the reporting date can be measured reliably; and

• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specifi ed time frame, revenue is recognised on a straight line basis over the specifi ed time frame unless there is evidence that some other method better represents the stage of completion. When a specifi c act is much more signifi cant than any other acts, the recognition of revenue is postponed until the signifi cant act is executed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised as revenue over the period during which the service is performed

152 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 ACCOUNTING POLICIES 1.11 Revenue from non-exchange transactions

Revenue comprises gross inﬂ ows of economic beneﬁ ts or service potential received and receivable by an entity, which represents an increase in net assets.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Transfers are inﬂ ows of future economic beneﬁ ts or service potential from non-exchange transactions, other than taxes.

Recognition

An inﬂ ow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inﬂ ow.

As the entity satisﬁ es a present obligation recognised as a liability in respect of an inﬂ ow of resources from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability.

Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the taxable event occurs or a condition is satisﬁ ed, the amount of the reduction in the liability is recognised as revenue.

Transfers

Apart from Services in kind, which are not recognised, the entity recognises an asset in respect of transfers when the transferred resources meet the deﬁ nition of an asset and satisfy the criteria for recognition as an asset.

The entity recognises an asset in respect of transfers when the transferred resources meet the deﬁ nition of an asset and satisfy the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

SALGA Annual Report | 2011/12 153 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 beneﬁ ts or service potential will ﬂ ow to the entity and the fair value of the assets can be measured reliably.

1.12 Turnover

Turnover comprises of service rendered to customers. Turnover is stated at the invoice amount and is exclusive of value added taxation.

1.13 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.

1.14 Translation of foreign currencies

Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At each reporting date:

• foreign currency monetary items are translated using the closing rate;

• non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and

• non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous annual ﬁ nancial statements are recognised in surplus or deﬁ cit in the period in which they arise.

When a gain or loss on a non-monetary item is recognised directly in net assets, any exchange component of that gain or loss is recognised directly in net assets. When a gain or loss on a non-monetary item is recognised in surplus or deﬁ cit, any exchange component of that gain or loss is recognised in surplus or deﬁ cit.

Cash ﬂ ows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash ﬂ ow.

1.15 Comparative ﬁ gures

Where necessary, comparative ﬁ gures have been reclassiﬁ ed to conform to changes in presentation in the current year.

154 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 fi nancial performance in the year that the expenditure was incurred. The expenditure is classifi ed in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of fi nancial performance.

1.17 Irregular expenditure

Irregular expenditure as deﬁ ned in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including -

• (a) this Act; or

• (b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or

• (c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA requires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identifi ed during the current fi nancial and which was condoned before year end and/or before fi nalisation of the fi nancial statements must also be recorded appropriately in the irregular expenditure register. In such an instance, no further action is also required with the exception of updating the note to the fi nancial statements.

Irregular expenditure that was incurred and identifi ed during the current fi nancial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the fi nancial statements.

Where irregular expenditure was incurred in the previous fi nancial year and is only condoned in the following fi nancial year, the register and the disclosure note to the fi nancial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identifi ed during the current fi nancial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting offi cer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the fi nancial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the fi nancial statements and updated accordingly in the irregular expenditure register.

SALGA Annual Report | 2011/12 155 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 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 ﬁ nancial reporting by SALGA shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.

The annual ﬁ nancial statements and the budget are on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the annual ﬁ nancial statements.

1.20 Related party

A related party is considered to be related if one party has the ability to control the other party or exercise signifi cant infl uence over the other party in making fi nancial and operating decisions or if the related party and another entity are subject to common control.

Transactions - speciﬁ c information with regards to related party transactions is included in the disclosure notes.

Key management personnel - compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

156 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 2. Investment property

2012 2011 Accumulated Accumulated depreciation depreciation Cost / Carrying Cost / Carrying and and Valuation value Valuation value accumulated accumulated impairment impairment Investment property 4 400 000 - 4 400 000 3 100 000 - 3 100 000

Reconciliation of investment property - 2012 Opening Fair value Total balance adjustments Investment property 3 100 000 1 300 000 4 400 000

Reconciliation of investment property – 2011 Opening Fair value Total balance adjustments Investment property 3 000 000 100 000 3 100 000

Details of property

1. Stand 3278, Johannesburg, Gauteng

2. Stand 750, Kimberley, Northern Cape

Details of valuation

The effective date of the revaluations was 31 March 2012. Revaluations were performed by an independent valuer, Mr. William John Hewitt, NDPV, C.I.E.A., F.I.V. (SA), Appraiser of Mills Fitchet (TVL) CC. Mills Fitchet (TVL) CC are not connected to SALGA and have recent experience in location and category of the investment property being valued.

For the purpose of determining the market value of the investment properties the capitalisation of the “Nett Annual Income” method generally considered to determine the market value of an income producing property such as shopping centres, ofﬁ ces and industrial or commercial properties where the building has an earning potential.

These assumptions are based on open market value for existing use.

SALGA Annual Report | 2011/12 157 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS Amounts recognised in surplus and deﬁ cit for the year.

Rental revenue from investment property - 36,000 Direct operating expenses from non-rental generating property (security costs) 570 262 378,191 Direct operating expenses from non-rental generating property (repairs and 32 690 - maintenance)

158 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 3. Property, plant and equipment

2012 2011 Accumulated Accumulated depreciation depreciation Cost / Cost / and Carrying value and Carrying value Valuation Valuation accumulated accumulated impairment impairment Furniture & ﬁ xtures 8 372 558 (2 468 677) 5 903 881 9 379 382 (2 383 740) 6 995 642 Motor vehicles 940 919 (383 624) 557 295 940 919 (324 013) 616 906 Ofﬁ ce equipment 3 296 614 (1 114 671) 2 181 943 3 147 820 (1 189 839) 1 957 981 IT equipment 7 533 863 (1 733 586) 5 800 277 8 277 129 (1 846 422) 6 430 707 Leased assets 6 361 035 (1 818 718) 4 542 317 7 454 038 (3 531 926) 3 922 112 Total 26 504 989 (7 519 276) 18 985 713 29 199 288 (9 275 940) 19 923 348

Reconciliation of property, plant and equipment – 2012 Opening Impairment Additions Disposals Depreciation Total balance loss Furniture & ﬁ xtures 6 995 642 241 638 (267 054) (577 168) (489 177) 5 903 881 Motor vehicles 616 906 - - (59 611) - 557 295 Ofﬁ ce equipment 1 957 981 620 550 (16 056) (280 590) (99 942) 2 181 943 IT equipment 6 430 707 1 272 307 (697 374) (733 640) (471 723) 5 800 277 Leased assets 3 922 112 2 240 705 - (1 620 500) - 4 542 317 19 923 348 4 375 200 (980 484) (3 271 509) (1 060 842) 18 985 713

SALGA Annual Report | 2011/12 159 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Reconciliation of property, plant and equipment – 2011 Opening Impairment Additions Disposals Depreciation Total balance loss Furniture & ﬁ xtures 6 632 408 1 114 742 (129 649) (579 319) (42 540) 6 995 642 Motor vehicles 676 345 - - (59 439) - 616 906 Ofﬁ ce equipment 2 024 299 283 177 (36 054) (312 145) (1 296) 1 957 981 IT equipment 5 867 919 2 131 356 (364 595) (797 989) (405 984) 6 430 707 Leased assets 1 553 832 4 037 550 - (1 669 270) - 3 922 112 16 754 803 7 566 825 (530 298) (3 418 162) (449 820) 19 923 348

Figures in Rand 2012 2011

Compensation received for losses on property, plant and equipment – included in operating surplus

IT equipment 131 534 250 857

Assets subject to ﬁ nance lease (Net carrying amount)

Leased assets 1 731 695 838 877

Other information

Property, plant and equipment temporarily idle (Gross carrying amount)

Ofﬁ ce equipment 59 439 57 884

Property, plant and equipment fully depreciated and still in use (Gross carrying amount)

Furniture and ﬁ xtures 201 076 134 300 Ofﬁ ce equipment 91 760 41 198 IT equipment 56 030 48 975 348 866 224 473

160 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 4. Intangible assets

2012 2011 Accumulated Accumulated amortisation amortisation Cost / Cost / and Carrying value and Carrying value Valuation Valuation accumulated accumulated impairment impairment Computer software 675 576 (652 574) 23 002 675 576 (576 380) 99 196

Reconciliation of intangible assets - 2012

Opening balance Amortisation Total

Computer software. Internally generated 99 196 (76 194) 23 002

Reconciliation of intangible assets - 2011

Opening balance Amortisation Total

Computer software, internally generated 120 897 (21 701) 99 196

Other information

Fully amortised intangible assets still in use 494 902 191 406

The intangible assets consist of application software and intranet software.

SALGA Annual Report | 2011/12 161 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 5. Other ﬁ nancial assets

Deposits

Rental deposits paid to lessors 536 178 328 154 Terms and conditions These deposits will be refunded by the lessors only on termination of the lease agreement

Non-current assets

Rental deposits paid to lessors 536 178 328 154

The organisation has paid deposits to lessor’s for rental of ofﬁ ce accommodation. The remaining lease period exceeds 12 months.

For debt securities classiﬁ ed as at fair value through surplus or deﬁ cit, the maximum exposure to credit risk at the reporting date is the carrying amount.

162 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 6. Financial assets by category

The accounting policies for the ﬁ nancial instruments have been applied to the line items below:

2012

Loans and Total receivables Trade and other receivables 29 028 506 29 028 506 Cash and cash equivalents 18 921 901 18 921 901 47 950 407 47 950 407

2011

Loans and Total receivables Trade and other receivables 24 265 910 24 265 910 Cash and cash equivalents 4 496 275 4 496 275 28 762 185 28 762 185 7. Operating lease assets

Current liabilities (4 994 063) (2 560 408)

Operating lease liability arose due to the straight-lining of operating lease payments in accordance with GRAP 13. Refer to note 29 for detail on the non-cancellable operating lease rentals payable in future.

SALGA also leases premises which have an average lease period of 60 months. The average yearly escalation is 10% and the average remaining lease terms is 29 months.

SALGA Annual Report | 2011/12 163 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 8. Employee beneﬁ t obligations

Deﬁ ned beneﬁ t plan

The plan is a post employment medical beneﬁ t plan.

Post retirement medical aid plan

When the then Western Cape Local Government Organisation (WECLOGO) was incorporated into SALGA, forming a unitary organisation, WECLOGO had three employees for which it contributed towards a medical aid post retirement beneﬁ t. One of the conditions of the unitary structure was that the conditions of service of any employee, in the employ of the provincial association at that date would not be affected in line with section 197 of the Labour Relations Act. The WEKPRO members were incorporated into SALGA as of 1 February 2005 and since then SALGA has inherited the post retirement medical beneﬁ t of the two remaining pensioners.

SALGA requested Jacques Malan Consultants and Actuaries, an independent ﬁ rm of actuaries not connected to SALGA to determine the value of the post retirement fund obligation as at 31 March 2012. The report provided by the actuaries valued the obligation at R619 604 (2011: R572,832). The increase in the medical obligation is due to a higher medical inﬂ ation.

The amounts recognised in the statement of ﬁ nancial position are as follows:

Carrying value

Present value of the deﬁ ned beneﬁ t obligation-wholly unfunded (619 604) (572 832)

Changes in the present value of the deﬁ ned beneﬁ t obligation are as follows:

Opening balance 572 832 356 693 Beneﬁ ts paid (48 422) (55 310) Net expense recognised in the statement of ﬁ nancial performance 95 194 271 449 Closing balance 619 604 572 832

Net expense recognised in the statement of ﬁ nancial performance

Interest cost 51 555 35 669 Actuarial (gains) losses 43 639 235 780 Total included in employee related costs 95 194 271 449

164 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 inﬂ ation per annum 7.90 % 8.00 % Mortality is determined by the PA (90) ultimate tables Marital status and children dependants Medical aid options remains unchanged for the future The pensioners medical aid contributions remains at 40% of the total contribution

Other assumptions

Assumed healthcare cost trends rates have a signiﬁ cant effect on the amounts recognised in surplus or deﬁ cit. A one percentage change in assumed healthcare cost trends would have the following effects:

One percentage One percentage point increase point decrease Effect on the aggregate of the service cost and interest cost 56 312 47 906 Effect on deﬁ ned beneﬁ t obligation 673 191 572 691 9. Trade and other receivables – exchange transactions

Trade debtors 29 028 506 24 265 910 Prepayments 720 081 568 454 Sundry debtors - 95 772 29 748 587 24 930 136

SALGA Annual Report | 2011/12 165 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 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 ﬁ nancial instruments are as follows:

Low credit grade - The counter party has evidenced high occurrences of defaults and / or re-negotiations of contractual terms in prior periods. Furthermore an assessment of the fi nancial position and liquidity position of the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. As such the counter parties included in the low credit grade category pose a high credit risk to the entity.

Medium credit grade - The counter party has evidences instances of defaults and / or re-negotiations of contractual terms in prior periods on the repayment of outstanding amounts (and / or). An assessment of the fi nancial position and liquidity positions of the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. (and / or) The counter parties included in this credit grade category are active in a industry that is highly sensitive to market fl uctuations and volatility in the international economies.

High credit grade - The counter party has evidenced no instances of defaults and / or re-negotiations of contractual terms in prior periods.

Figures in Rand 2012 2011

Trade receivables

Trade receivables schedule

Trade receivables 33 107 914 27 786 858 Less: Provision for impairment of trade receivables (4 079 408) (3 520 948) 29 028 506 24 265 910

166 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 -- More the 30 days but not more than 60 days 4 765 364 - More than 60 days but not more than 90 days - 1 377 358 More than 90 days but not more than 120 days - 106 239 More than 120 days 24 263 142 22 782 313

29 028 506 24 265 910

Trade and other receivables impaired

As of 31 March 2012, trade and other receivables of R4 079 409 (2011: R3 520 948) were impaired and provided for.

The ageing of these loans is as follows:

Not more than 30 days (Credit rating: High) - - More than 30 days but not more than 60 days (Credit rating: Medium) 234 604 - More than 60 days but not more than 90 days (Credit rating: Medium) - 36 860 More than 90 days but not more than 120 days (Credit rating: Medium) - 2 687 More than 120 days (Credit rating: Medium) 3 844 805 3 481 401

4 079 409 3 520 948

SALGA Annual Report | 2011/12 167 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 deﬁ cit (note 20).

The maximum exposure to credit risk at the reporting date is the fair value of each class of loan mentioned above. The entity does not hold any collateral as security.

SALGA is exposed to credit risk as a result of the following: Transactions entered into with customer on extended payment terms of cash and cash equivalents held with commercial banks that may not be able to produce cash on demand. SALGA manages these risks by independent checks. No changes occurred in the management of these risks from the prior year. 10. Cash and cash equivalents

The carrying value of cash and cash equivalents approximates the fair value thereof. None of the instruments included in the cash and cash equivalents were pledged as security for any ﬁ nancial obligations.

Cash and cash equivalents consists of:

Cash on hand (Credit rating: High) 7 935 8 034 Bank balances (credit rating: High) 18 913 966 4 488 241 18 921 901 4 496 275

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings or historical information about counterparty default rates:

Medium credit grade - The counter party has evidenced instances of defaults and / or re-negotiations of contractual terms in prior periods on the repayment of outstanding amounts (and / or). An assessment of the ﬁ nancial position and liquidity positions

168 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS of the party has provided evidence of fi nancial diffi culties that may impede the recoverability of the outstanding amounts. The counter parties included in this credit grade category are active in an industry that is highly sensitive to market fl uctuations and volatility in the international economies. As such the counter parties included in the medium credit grade category pose a medium credit risk to the entity.

High credit grade - The counter party has evidenced no instances of defaults and / or re-negotiations of contractual terms in prior periods. Furthermore an assessment of the ﬁ nancial position of the entity has not evidenced a weakening in either the ﬁ nancial position or liquidity of the entity. As such the counter parties included in the high credit grade category pose a low risk to the entity with the reasonability of the outstanding amounts being almost certain.

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 885 528 814 679 • In second to ﬁ fth year inclusive 1 133 362 294 453 2 018 890 1 109 132 Less: future ﬁ nance charges (206 792) (89 730) Present value of minimum lease payments 1 812 098 1 019 402

Present value of minimum lease payments due

− Within one year 757 036 744 572 − In second to ﬁ fth year inclusive 1 055 062 274 830 1 812 098 1 019 402

Non-current liabilities 1 055 062 274 830 Current liabilities 757 036 744 572 1 812 098 1 019 402

SALGA Annual Report | 2011/12 169 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS It is SALGA’s policy to lease certain equipment under ﬁ nance leases. Obligations under ﬁ nance leases are secured by the lessor’s title to the leased assets.

The average lease term was 36 months and the average effective borrowing rate was 12% (2011: 12%).

Interest rates are fi xed at the contract date. All fi nances leases have fi xed repayments.

The entity’s obligations under ﬁ nance leases are secured by the lessor’s charge over the leased assets. Refer note 3. 13. Unspent conditional grants and receipts

From time to time, SALGA engages Provincial and National Departments for assistance in terms of building capacity in the respective provinces and funding certain programmes.

The Free State funding is split between programme support (40%) and building internal capacity in the province (60%). The Gauteng funding is for internal capacity building for LED and Municipal Finance.

SALGA has also partnered with the Department of Environment Affairs on climate change and energy projects. The partnership also included the appointment of a Climate Change Specialist, for whom the salary was funded for the prior year by the Department.

A conditional sponsorship was obtained from LA Health to fund SALGA’s redesign and rejuvenating its website. The sponsorship has the condition: that SALGA’s Webpage must bear an LA Health presence (logo on each page thereof, in a format to be agreed upon by the parties for a period of ﬁ ve (5) years). This amount will thus be amortised over this 5 year period.

A conditional grant was obtained from the LGSETA to assist in SALGA’s programme to induct the new Councillors after the 18 May 2011 local government elections into the local government sphere.

A conditional grant was obtained from National Treasury to assist with SALGA’s programme to train new entrants to the local government sphere after the 18 May 2011 local government elections, heading up the ﬁ nancial management portfolio in their respective municipalities.

The grant from the Eastern Cape department of local government and traditional affairs is to fund SALGA’s Councillor Induction programme; Ward committees training; and the training of Traditional leaders. A portion of the grant is for targeted support to 5 municipalities within the Eastern Cape Province.

The grant from the Gauteng department of local government and housing is assisting SALGA to build and maintain capacity in the ﬁ eld of municipal ﬁ nance for the province. The value of the grant subsidises the cost of maintaining the capacity to support and advise members within the province.

170 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS Unspent conditional grants and receipts comprises of:

Figures in Rand 2012 2011

Unspent conditional grants and receipts Government grant – Gauteng Dept of Local Government and Housing 55 556 388 889 Government grant – Free State Dept of Co-operative Governance 1 120 323 1 334 409 Government grant – Department of Environmental Affairs - 1 300 000 Conditional sponsorship: LA Health 160 000 200 000 Government grant – Eastern Cape Dept of Local Government and Traditional Affairs 5 609 935 - Learnership sponsor 21 600 - Local Government SETA – Councillor Induction Programme 3 925 840 - National Treasury – Councillor Induction Programme 498 308 - LED Network 54 000 - 11 445 562 3 223 298

Movement during the year

Balance at the beginning of the year 3 223 298 5 722 222 Additions during the year 22 346 800 2 200 000 Income recognition during the year (14 124 536) (4 698 924) 11 445 562 3 223 298

The nature and extent of government grants recognised in the annual fi nancial statements and an indication of other forms of government assistance from which the entity has directly benefi ted; and unfulfi lled conditions and other contingencies attaching to government assistance that has been recognised

SALGA Annual Report | 2011/12 171 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 Balance at the beginning of the year 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) 7 852 185 8 264 382

P3 is project funded by the Swedish International Development Agency. The objective of this project is to provide municipalities with an analytical framework and an organisational set up that will improve dialogue between the business community and the municipality and that will also be used to promote strategy development and business related projects during the year of implementation. This project has a 24 month duration.

Movement during the year – P3 project Balance at the beginning of the year (165 016) 2 955 426 Additions during the year 1 765 354 15 Income recognition during the year (2 789 587) (3 120 457) Amount included in Trade and other receivables (note 9) 1 189 249 165 016 --

172 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011

Movement during the year – SDC project Balance at the beginning of the year 2 185 847 2 400 000 Additions during the year 6 151 1 690 Income recognition during the year (3 730 899) (215 843) Amount included in Trade and other receivables (note 9) 1 538 901 - - 2 185 847 15. Trade and other payables – exchange transactions

Trade payables 8 897 948 13 800 306 Payments received in advance 1 627 813 3 302 493 Sundry creditors 3 475 457 8 232 505 Accrued leave pay 7 456 246 5 908 116 Accrued bonus 744 940 709 599 Accrued expenses 10 694 800 4 629 879 Lodge card 2 773 307 548 627

35 670 511 37 131 525

SALGA Annual Report | 2011/12 173 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 16. Financial liabilities by category

The accounting policies for ﬁ nancial instruments have been applied to the line items below:

2012 Financial liabilities at amortised cost Total Trade and other payables 8 897 948 8 897 948 Payments received in advance 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 Trade and other payables 13 800 306 13 800 306 Payments received in advance 3 302 493 3 302 493 Sundry creditors 8 232 505 8 232 505 25 335 304 25 335 304 17. Revenue

Membership fees 217 872 595 145 888 126 Free State Department of Cooperative Governance 214 086 3 665 591 Eastern Cape Department of Local Government & Traditional Affairs 1 190 065 - Department of Environmental Affairs 300 000 700 000 Gauteng Department of Local Government & Housing 333 333 333 333 National Treasury 1 356 692 - Transfers and subsidies received – Executive Authority 25 486 000 49 125 000 246 752 771 199 712 050

174 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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

The amount included in revenue arising from non-exchange transactions is as follows:

Free State Department of Cooperative Governance 214 086 3 665 591 Eastern Cape Department of Local Government & Traditional Affairs 1 190 065 - Department of Environmental Affairs 300 000 700 000 Gauteng Department of Local Government & Housing 333 333 333 333 National Treasury 1 356 692 -

Transfers and subsidies Transfers and subsidies received – Executive Authority 25 486 000 49 125 000 18. Government grants and subsidies

Government grant – Executive Authority 25 486 000 49 125 000 19. Other income

Income from capacity building programmes 1 417 396 2 098 204 Sundry income 3 311 908 2 532 973 Delegate fees – National and Provincial Members Assembly 8 565 100 5 285 250 Sponsorship received 12 786 123 6 003 160 Commission received 12 487 10 352 Rent received 12 000 42 000 Gains of foreign exchange transactions 27 418 127 054 Income from donors 20 392 828 15 179 155 46 525 260 31 278 148

SALGA Annual Report | 2011/12 175 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 20. Operating surplus / (deﬁ cit)

Operating surplus (deﬁ cit) for the year is stated after accounting for the following:

Operating lease charges Premises

• Contractual amounts 26 201 144 20 867 049 • Contingent amounts 3 436 3 273 26 204 580 20 870 322

Loss on sale of property, plant and equipment 848 949 331 165 Legal fees 1 069 004 1 672 517 Impairment on property, plant and equipment 1 060 842 449 818 Fair value adjustment on investment property 1 300 000 100 000 Amortisation of intangible assets 76 194 21 701 Depreciation on property, plant and equipment 3 271 508 3 418 163 Employee costs 138 988 145 125 626 792 Amount expenses in respect of retirement benefi t plans: 95 194 216 139 Defi ned benefi t funds 95 194 216 139 21. Employee related costs

Basic 131 198 647 119 803 116 UIF 457 481 428 431 SDL 1 379 851 1 147 111 Other payroll levies 3 420 851 2 706 142 Leave pay provision charge 2 531 315 1 541 992 138 988 145 125 626 792

176 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011

Remuneration of senior management

Annual remuneration 18 024 716 16 166 781 Contribution to UIF; Medical and Pension funds 201 269 261 081 Subsistence and travel allowance 133 953 455 379 Performance related awards 1 533 403 1 410 114

19 893 341 18 293 355 22. Investment revenue

Interest revenue Bank 1 372 996 468 176 Interest charges on trade and other receivables 1 515 253 1 323 909

2 888 249 1 792 085 23. Fair value adjustments

Investment property (Fair value model) 1 300 000 100 000 24. Impairment of assets

Impairments Property, plant and equipment 1 060 842 449 818 25. Finance costs

Trade and other payables (287 782) 2 127 415 Finance leases 157 471 195 044 Bank 34 67 874 Fair value adjustments on payables 582 216 537 102

451 939 2 927 435

SALGA Annual Report | 2011/12 177 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 28. Cash generated from operations

Surplus (defi cit) 12 301 943 (8 280 076) Adjustments for: Depreciation and amortisation 3 347 702 3 439 836 Loss on sale of assets and liabilities 848 949 331 165 Loss / (Gain) on foreign exchange (27 418) (127 054) Fair value adjustment to investment property (1 300 000) (100 000) Impairment defi cit 1 060 842 449 820 Movements in operating lease assets and accruals 2 433 655 961 913 Movements in retirement benefi t assets and liabilities 46 772 216 139 Leased assets additions (non-cash item) (2 240 705) (499 011) Changes in working capital: Trade and other receivables – exchange transactions (4 818 451) 13 382 285 Trade and other payables – exchange transactions (1 433 598) 7 901 562 Unspent conditional grants and receipts 8 222 264 (2 498 924) Deferred income – exchange transactions (2 598 044) (3 337 888) 15 843 911 11 839 767

178 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 ﬁ fth year inclusive 56 288 339 62 304 996 Future payments 78 874 066 82 876 617

Non-cancellable operating lease rentals are payable per above.

Operating lease payments represent rentals payable by the entity for certain of its offi ce properties. Leases are negotiated for an average term of fi ve years. Contingent rent is payable based on CPI escalation rate above 5 percentage points. The CPI increase of 5% p.a. is fi xed and the actual escalation above the fi xed rate up to the maximum of 8% annually constitutes contingent rent. 30. Contingencies

1. SALGA is defending a claim for alleged defamation which has been instituted by Akani Retirement Fund Administration. The plaintiff claims payment of R500 000, interest at a rate of 15.5% and cost of suit. The expected outcome is unknown and the legal costs incurred thus far in defending the matter forms part of legal costs as disclosed in note 20.

2. SALGA is defending a matter against alleged breach of contract which was instituted by Millionsure Insurance Brokers (Pty) Limited. The plaintiff claims payment of R8 336 250, interest at a rate of 15.5% from July 2004. SALGA has lodged a counter-claim of R6 840 000. The expected outcome is unknown and the legal costs incurred thus far in defending the matter forms part of legal costs as disclosed in note 20.

SALGA Annual Report | 2011/12 179 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 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 Western Cape Department of Local Government and control) Housing Provincial Government Department (Cabinet ultimate Eastern Cape Department of Local Government and control) Traditional Affairs Provincial Government Department (Cabinet ultimate KwaZulu-Natal Department of Local Government and control) Traditional Affairs Provincial Government Department (Cabinet ultimate Northern Cape Department of Co-operative Governance; control) Human Settlements and Traditional Affairs Provincial Government Department (Cabinet ultimate Free State Department of Co-operative Governance and control) Traditional Affairs Provincial Government Department (Cabinet ultimate Mpumalanga Department of Local Government and control) Traditional Affairs National Government Department (Cabinet ultimate control) Department of Arts and Culture National Government Business Enterprise (Schedule B of Passenger Rail Agency of South Africa PFMA) SALGA CEO member of the board South African Cities Network (Pty) Limited SALGA CEO member of the board EDI Holdings (Pty) Limited National Government Department (Cabinet ultimate control) Auditor General South Africa Provincial Government Department (Cabinet ultimate Western Cape Department of Provincial Treasury control) Provincial Government Department (Cabinet ultimate Gauteng Department of Local Government and Housing control) National Government Department (Cabinet ultimate control) National Department of Social Development National Government Department (Cabinet ultimate control) Government Communication and Information Systems (GCIS) National Government Department (Cabinet ultimate control) National Department of Sports, Arts and Culture Major Public Entity (Schedule 2 of PFMA) ESKOM Major Public Entity (Schedule 2 of PFMA) Development Bank of Southern Africa (DBSA) National Government Department (Cabinet ultimate control) National Department of Water Affairs National Government Department (Cabinet ultimate control) National Department of Public Works

180 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Relationships National Government Department (Cabinet ultimate control) National Department of Rural Development and Land Reform National Government Department (Cabinet ultimate control) National Department of Environmental Affairs National Public Entity (Schedule 3A of PFMA) South African Revenue Services (SARS) Major Public Entity (Schedule 2 of PFMA) South African Broadcasting Corporation (SABC) Major Public Entity (Schedule 2 of PFMA) Telkom SA Limited Chairperson of SALGA Cllr T Manyoni - Executive Mayor: Mangaung Metropolitan Municipality Deputy Chairperson of SALGA Cllr M Nawa - Executive Mayor: West Rand District Municipality Deputy Chairperson of SALGA Cllr N Sihlwayi - Deputy Executive Mayor: Nelson Mandela Bay Metropolitan Municipality Deputy Chairperson of SALGA Cllr N Hermans - Mayor: Umsobomvu Local Municipality Member of the National Executive Committee of SALGA Cllr F Maboa-Boltman - Mayor: Gert Sibande District Municipality Member of the National Executive Committee of SALGA Cllr. D Mazibuko - Executive Mayor - Uthukela District Municipality Member of the National Executive Committee of SALGA Cllr. S Mashilo - Executive Mayor - Enkangala District Municipality Member of the National Executive Committee of SALGA Cllr. C Neethling - Ward Councillor - George Local Municipality Member of the National Executive Committee of SALGA Cllr. J Matlou - Executive Mayor - Mopani District Municipality Member of the National Executive Committee of SALGA Cllr. BP Moloi - Executive Mayor - Dr Kenneth Kaunda District Municipality Member of the National Executive Committee of SALGA Cllr. W Johnson - Chief Whip - Frances Baard District Municipality Member of the National Executive Committee of SALGA Cllr. P Tau - Executive Mayor - City of Johannesburg Metropolitan Municipality Member of the National Executive Committee of SALGA Cllr. B Mdzawngwa - Executive Mayor - Thabo Mafutsanyane District Municipality Member of the National Executive Committee of SALGA Cllr. Demetri Qually - City of Cape Town Member of the National Executive Committee of SALGA Cllr. GK Lobelo - Mayor - Greater Taung District Municipality Member of the National Executive Committee of SALGA Cllr. D Magabe - Executive Mayor - Sekhukhune District Municipality Member of the National Executive Committee of SALGA Cllr. SW Mdabe - Ilembe District Municipality

SALGA Annual Report | 2011/12 181 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Relationships Member of the National Executive Committee of SALGA Cllr. N Meth - Speaker - OR Tambo District Municipality Member of the National Executive Committee of SALGA Cllr. S Pillay - MMC - City of Tshwane Metropolitan Municipality Major Public Entity (Schedule 2 of PFMA) Independent Development Trust National Public Entity (Schedule 3A of PFMA) Local Government Sector Education and Training Authority (SETA) National Public Entity (Schedule 3A of PFMA) National Credit Regulator (NCR) National Public Entity (Schedule 3A of PFMA) National Energy Regulator of South Africa (NERSA) National Government Business Enterprise (Schedule 3B of South African Bureau of Standards (SABS) PFMA) SALGA is a member as employer for the sector South African Local Government Bargaining Council (SALGBC) National Government Department (Cabinet ultimate control) Statistics South Africa National Public Entity (Schedule 3A of PFMA) State Information Technology Agency (SITA) National Public Entity (Schedule 3A of PFMA) Water Research Commission (WRC) Member of SALGA Cacadu District Municipality Member of SALGA Sol Plaatjie Local Municipality Member of SALGA Ekurhuleni Metropolitan Municipality National Government Department (Cabinet ultimate control) Government Printing Works Same controlling body (Cabinet) part of SA Post Ofﬁ ce Speed Courier Services Controlling body member of SALGA (eThekwini Metropolitan Municipal Institute of Learning (MILE) Municipality) National Public Entity (Schedule 3A of PFMA) Human Science Research Council (HSRC) Municipal entity controlling body member of SALGA Braamfontein Improvement District Major Public Entity (Schedule 2 of PFMA) Industrial Development Corporation of South Africa Limited Major Public Entity (Schedule 2 of PFMA) South African Post Ofﬁ ce National Government Business Enterprises (Schedule 3B of Sedibeng Water PFMA) National Government Department (Cabinet ultimate control) Public Administration Leadership and Management Academy (PALAMA) National Government Business Enterprises (Schedule 3B of Umgeni Water PFMA) National Government Business Enterprises (Schedule 3B of SASRIA Limited PFMA)

182 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Relationships Funder conditional grant Swedish Association of Local Authorities Funder conditional grant Swiss Agency for Development and Corporation (SDC) SALGA is a member Commonwealth Local Government Forum (CLGF) Funder conditional grant Local Economic Development (LED) Network Funder conditional grant LA Health National Public Entity (Schedule 3A of PFMA) Small Enterprise Development Agency (SEDA) National Public Entity (Schedule 3A of PFMA) Housing Development Agency National Public Entity (Schedule 3A of PFMA) Rural Housing Loan Fund National Public Entity (Schedule 3A of PFMA) Universal Service and Access Agency of South Africa

Please refer to annexure A for related party transactions and balances.

Figures in Rand 2012 2011 32. Comparative ﬁ gures

Certain comparative ﬁ gures have been reclassiﬁ ed.

Statement of ﬁ nancial position

Other ﬁ nancial assets – exchange transactions - 328 154 Trade and other receivables – exchange transactions - (328 154) 33. Risk management

Financial risk management

SALGA’s activities expose it to a variety of ﬁ nancial risks: market risk (including currency risk, fair value interest rate risk, cash ﬂ ow interest rate risk and price risk), credit risk and liquidity risk.

Liquidity risk

Prudent liquidity risk management implies maintaining sufﬁ cient cash. SALGA receives cash in the form of levies from customers and grants from government. The entity maintains liquidity by limiting capital and operational expenditure within the approved budget.

SALGA’s risk to liquidity is a result of the funds available to cover future commitments. SALGA manages liquidity risk through an ongoing review of future commitments and credit facilities.

SALGA Annual Report | 2011/12 183 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 5 000 000 Later than three months and not later than one year 744 940 Later than one year and not later than ﬁ ve years 9 053 577 8 109 251 41 404 489 8 109 251

Values presented in the maturity analysis are undiscounted according to the terms of the instrument. These amounts will all be settled in cash. Trade payables are considered to mature in 30 days after year end as these suppliers require 30 days settlement terms. No changes between the current and prior year assumptions have been made.

Interest rate risk

SALGA’s interest rate risks arises from market and economic factors, loans and other payables, cash and cash equivalents and loans and other receivables. The entity’s exposure to interest rate risk is minimal due to the following factors:

• no interest is levied on overdue trade receivables;

• interest not paid on trade payables is limited as it is the policy of the entity to settle within the credit terms, cash ﬂ ow allowing in order to comply with the Public Finance Management Act (PFMA) requirements; and

• the PFMA does not allow for the entity to utilise bank overdrafts.

Based on the activities of SALGA the only area affected by interest rate risk is ﬁ nance leases and investment income earned on call deposits.

At 31 March 2012, if interest rates at that date had been 200 basis points lower with all other variables held constant, surplus for the year would have been R48 726 (2011: R22 707) lower arising mainly as a result of lower interest expense on variable payables and receivables.

If interest rates had been 200 basis points higher, with all other variables held constant, surplus would have been R48 726 (2011: R22 707) higher, arising mainly as a result of higher interest expense on variable payable and receivables. The sensitivity is higher 2012 than in 2011 because of an increase in receivables

Cash ﬂ ow interest rate risk

SALGA’s exposure to this type of risk arises when the entity has a fi nancial instrument with a fl oating interest rate. The entity is seldom exposed to this type of risk. When the need arises management employs conservative approaches with a limited risk exposure such as Call Accounts or limit the risk completely by employing fi xed deposits. The following credit facilities are available, which is payable 30 days from statement date:

184 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 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 fl ow interest rate risk, primarily due to the conservative investment philosophy. Ordinarily fi xed deposits expose the entity to this type of risk. The entity manages this risk by keeping fi xed investments on short-term to mitigate the impact that this type of risk might have on the organisation.

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents, derivative ﬁ nancial instruments and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise of municipalities which are invoiced one a year based on their budgeted salary cost. There is no independent rating, therefore management assesses the credit quality of the customer, taking into account its ﬁ nancial position, past experience and other factors. The entity establishes an impairment that represents its estimate of incurred losses in respect of trade receivables.

Foreign exchange risk

The entity does not hedge foreign exchange ﬂ uctuations.

The entity is seldom exposed to this type of risk, whenever it arises it is normally from Subsistence Allowance outside the Republic. SALGA’s Travel, Accommodation and Subsistence Policy provides for a subsistence allowance of USD 190 per day for each day the ofﬁ cial is outside of the Republic of the entity’s business. Since the allowance amount is denominated in a foreign currency, the entity is exposed to currency ﬂ uctuations since these are paid on spot rate due to their infrequency.

Due to the infrequent nature of the transaction management does not employ any hedging mechanism against this risk.

The entity reviews its foreign currency exposure, including commitments on an ongoing basis. The entity expects its foreign exchange contracts to hedge foreign exchange exposure.

Price risk

The entity’s exposure to price risk is limited to the effect that inﬂ ation has on the market prices for goods and services ordinarily procured by the organisation. The risk arises when the entity’s revenue does not escalate at a similar or better rate that the prevailing market conditions, which is rare since the entity’s major source of revenue is its membership levies which due to the basis of deriving the levy amount normally escalates at a rate higher or equivalent to the prevailing inﬂ ationary trends.

There are no special mechanisms employed by management to manage this kind of risk other than pursuing the fair market value/price through a ‘dip-stick’ in the market viz. formal price quotations and open tenders.

SALGA Annual Report | 2011/12 185 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 34. Events after reporting date

On 1 April 2012 the KwaZulu-Natal business operation (SALGA KwaZulu-Natal) rejoined the national unitary structure of SALGA as pronounced by the National Conference held on 29 August 2011 to 1 September 2011.

Post year-end the Eastern Cape Department of Local Government and Traditional Affairs requested the return of R 5 million in conditional grant funding paid over to SALGA during March 2012 - the said funds were returned to the department on 2 May 2012.

Besides the above there are no material facts or circumstances that have arisen between the date of the balance sheet and the date of approval, which affect the ﬁ nancial position of SALGA as reﬂ ected in these Financial Statements.

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 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

Figures in Rand 2012 2011 36. Irregular expenditure

Opening balance 16 830 392 16 830 392 Add: Irregular expenditure – current year 37 090 372 24 191 744 Less: Amounts condoned (24 191 744) 53 920 764 16 830 392

Disciplinary and other steps taken

(a) Irregular Expenditure deemed irregular was incurred in the Besides further enhancing the control environment, disciplinary current year amounting to R37 090 372 due to various non- action has been taken against the affected personnel. compliance aspects such as not notifying National Treasury within 10 days after an award of more than R1 million; Not communicating the adjudication criteria to prospective bidders for purchases between R30,000 and R1 million; and failure to maintain proof of communicating the adjudication criteria to prospective bidders. 37. Reconciliation between budget and statement of ﬁ nancial performance

Reconciliation of budget surplus/defi cit with the surplus/defi cit in the statement of fi nancial performance:

Net (deﬁ cit) surplus per the statement of ﬁ nancial performance 12 301 943 (8 280 076)

Adjusted for:

Fair value adjustments (1 300 000) (100 000)

Less/Add: (Positive) / Negative variances in revenue (11 976 071) 13 296 657

Add/Less: Negative / (Positive) in variances in expenditure 12 508 712 (8 001 689)

Less: (Positive) / Negative in non-operating expenditure (2 044 083) 1 279 641

Net (deﬁ cit) surplus per approved budget 9 490 501 (1 805 467)

SALGA Annual Report | 2011/12 187 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 NOTES TO THE ANNUAL FINANCIAL STATEMENTS

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 Beneﬁ ts

GRAP 105 - Transfers of functions between entities under common control

GRAP 106 - Transfers of functions between entities not under common control

GRAP 107 - Mergers

The effective dates of the above standards are not yet known. The effect of adopting these GRAP standards when they become effective is not expected to have a signiﬁ cant impact in the ﬁ nancial statements as the principles are similar to those already applied under the equivalent Statement of SA GAAP.

188 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

ANNEXURES

to Bad Debts Bad to

Expense Relating Relating Expense

Provision Raised Provision

Guarantees

Secured

Amount Amount

Outstanding Outstanding

Adjustments Adjustments Amount Amount

1 600 - N/A N/A N/A N/A 4 000 - N/A N/A N/A N/A Transaction Transaction 10 500 - N/A N/A N/A N/A Transaction Type Transaction Opening BalanceM/levy & ConferenceProvincial Conference registration 1 023 029 86 530 National Conference 99 056 24 500 - NO N/A NO N/A - NO N/A N/A NO N/A N/A N/A N/A Opening BalanceM/levy & ConferenceConference registration 9 500 000 773 749 Opening Balance 24 500 M/levy & Conference Provincial Conference registration 9 500 000 50 800 National Conference - - N/AOpening Balance N/A - M/levy & Conference N/A -2 300 N/A 28 000 N/ANational Conference - NO N/A N/A N/A -12 377 Councillor S&T claims N/A 200 000 NOProvincial Conference N/A N/A N/A 14 000 registration N/A -66 309 - NO N/A N/A N/A - NO - N/A -23 063 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 Nature of Relationship Deputy Chairperson of SALGA SALGA Chairperson Deputy Chairperson of SALGA Deputy Chairperson of SALGA

Name & Position Cllr. Thabo Manyoni Cllr. Executive Mayor: City of Mangaung Metropolitan municipality Nancy Sihlwayi Cllr. Deputy Executive Mayor: Nelson Mandela Metropolitan municipality Numbulelo Hemans Cllr. Mayor:Umsombovu Local Municipality Cllr. Mpho Nawa Cllr. Executive Mayor: Rand District West Municipality Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 189 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

ANNEXURES

to Bad Debts Bad to

Expense Relating Relating Expense

Provision Raised Provision

Guarantees

Secured

Amount Amount - N/A N/A N/A N/A

Outstanding Outstanding

Adjustments Adjustments

156 -29 Amount Amount N/A- N/A500 N/A N/A

6 000 - N/A N/A 6 000 N/A N/A - 3 000 N/A N/A N/A - N/A N/A N/A N/A N/A Transaction Transaction Transaction Type Transaction Opening BalanceM/levy & ConferenceProvincial Conference registration 69 009 510 791 76 925 NO - N/A NOProvincial Conference N/Aregistration NO N/A NO N/A National Conference 17 500 M/levy & Conference - 604 381 National Conference N/AOpening Balance N/AM/levy & Conference 21 000 Provincial Conference N/Aregistration 1 550 813 12 178 N/A National Conference Record Management Conference - 68 552 14 000 Additional M/levy N/A -3 500 - N/A N/A N/A N/A - N/A 59 874 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 Nature of Relationship NEC Member NEC Member NEC Member Opening Balance National Conference 15 000 NEC Member 21 000 -14 156 NO - NO N/A NO N/A N/A NO N/A Name & Position Cllr. Flora Maboa-Boltman Cllr. Gert Sibande District Municipality Cllr. Speedy Mashilo Cllr. Executive Mayor Nkangala District Municipality Cllr. Dudu Mazibuko Cllr. Executive Mayor:Uthukela District Municipality Cllr Chris Neethling Councillor: Goerge Ward Local Municipality Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

190 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

ANNEXURES

to Bad Debts Bad to

Expense Relating Relating Expense

Provision Raised Provision

Guarantees

Secured

Amount Amount

Outstanding Outstanding

Adjustments Adjustments Amount Amount N/A- N/A500 N/A N/A

9 000 1 000 - N/A N/A - 6 000 N/A N/A N/A N/A N/A - 7 000 N/A N/A N/A N/A - N/A N/A N/A N/A N/A Transaction Transaction Transaction Type Transaction Opening BalanceM/levy & ConferenceProvincial Conference registration 35 043 887 729 - - N/A N/A N/A N/A N/A N/A N/A N/A National ConferenceRecord Management Conference 28 000 Opening BalanceM/levy & Conference National ConferenceProvincial Conference -7 634 521 227 registration - 24 500 Opening Balance N/A M/levy & Conference -7 624 N/A National Conference NO - Provincial Conference 84 878 N/A 305 936 N/Aregistration - 1 929 NO 10 500 Record Management N/A N/A N/AConference NO - 86 807 N/A N/A N/A NO NO N/A N/A N/A - NO N/A N/A N/A NO N/A N/A NO N/A N/A Nature of Relationship NEC Member NEC Member Chairperson: SALGA Northern Cape Name & Position Cllr. Joshua Matlou Cllr. Executive Mayor: Mopani District Municipality Cllr Boitumelo Pinkie Moloi Executive Mayor:Dr Kenneth Kaunda District Municipality Johnson W. Cllr. Chief Whip: Francis Baard Municipality Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 191 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

ANNEXURES

to Bad Debts Bad to

Expense Relating Relating Expense

Provision Raised Provision

Guarantees

Secured

Amount Amount

Outstanding Outstanding

Adjustments Adjustments Amount Amount

7 000 6 000 - N/A - N/A N/A 6 000 N/A N/A N/A N/A N/A - N/A N/A N/A N/A Transaction Transaction 15 000 42 000 - N/A N/A N/A N/A N/A N/A N/A N/A 31 500 - N/A N/A N/A N/A 28 000 - N/A N/A N/A N/A 272 393 29 204 - N/A N/A N/A N/A 380 137 38 715 - N/A N/A N/A N/A 9 500 000 - N/A N/A N/A N/A 9 500 000 - N/A N/A N/A N/A Opening BalanceM/levy & Conference Provincial 89 541 Conference registration National Conference 89 541 Rates & Taxes NO NO -328 432 NO NO -22 929 N/A N/A N/A N/A Opening BalanceM/levy & Conference National 2 289 Conference Opening Balance M/levy & Conference 7 178 395 -3 800 National NOConference Provincial Conference NO 8 800 registration NO NO NO NO National Conference NOProvincial Conference NO registration Opening BalanceM/levy & Conference 6 848 - N/A N/A N/A N/A Chairperson: SALGA Gauteng Chairperson: SALGA Free State Chairperson: SALGA Cape Western Chairperson: SALGA North West Name & Position Nature of Relationship Type Transaction Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand Cllr. Parks Tau Cllr. Executive Mayor: City of Johannesburg Cllr. Balekile Edward Cllr. Mzangwa Executive Mayor: Thabo Mofutsanyane District Municipality Cllr. Demetri Qually Cllr. Alderman: City of Cape Town Cllr. Gavin Kaone Lobelo Cllr. Mayor:Greater Taung District Municipality.

192 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Secured

Amount Amount

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Adjustments Adjustments Amount Amount NO500 NO 500 NO NO

9 000 - N/A N/A N/A 1 500 N/A 9 000 1 500 NO NO - NO N/A NO N/A N/A N/A Transaction Transaction Transaction Type Transaction Opening BalanceM/levy & ConferenceProvincial Conference registration 1 440 412 378 558 Opening Balance - - National Conference N/A N/AOpening Balance N/A N/A 1 500 M/levy & Conference 28 000 N/ARecord Management N/AConference 1 754 145 -70 496 N/A N/A 1 500 NO - N/A NO - - N/A N/A N/A NO N/A N/A N/A NO N/A N/A N/A N/A N/A National ConferenceRecord Management Conference 24 500 - N/ANational Conference N/AProvincial Conference N/Aregistration 28 000 N/A - N/A N/A N/A N/A Nature of Relationship Chairperson: SALGA Limpopo Chairperson: SALGA KZN Chairperson: SALGA Eastern Cape Name & Position Cllr. David Magabe Cllr. Executive Mayor: Sekhukhune District Municipality Cllr Sibusiso W Mdabe Mayor: Ilembe District Municipality Cllr Nomakhosazana Meth Speaker: OR Tambo District Municipality Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 193 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Amount Amount

Outstanding Outstanding Adjustments Adjustments

N/A N/A N/A N/A

Amount Amount Transaction Transaction 6 800 1 500 - N/A N/A - N/A N/A N/A N/A N/A N/A -1 008 - N/A N/A N/A N/A 1 000 1 000 N/A N/A N/A N/A Transaction Type Transaction Car Licence & Registration Record Management Conference Opening BalanceGovernment grantExhibition 25 486 000 Opening BalanceSponsorship & - Donations Opening Balance 20 000 - - 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 Opening BalanceM/levy & ConferenceNational Conference 9 500 000 15 000 Provincial Conference registration 35 000 12 100 - NO N/A NO - N/A N/A NO N/A N/A NO N/A N/A N/A Nature of Relationship Executive Authority to SALGA – under common government control SALGA CEO - Holds a Directorship position SALGA CEO - Holds a Directorship position Co -Opted NEC Member Name & Position Department of Co- operative Governance Affairs and Traditional (CoGTA) Passenger Rail Agency of South Africa (PRASA) South African Cities Network Cllr Subesh Pillay MMC Economic Development & Planning : Municipality Tshwane City of Tshwane Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

194 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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N/A N/A N/A N/A Amount Amount

185

Outstanding Outstanding -7 852

Adjustments Adjustments

Amount Amount N/A- N/A500 N/A N/A Transaction Transaction -4 608 270 - N/A N/A N/A N/A -8 264 382 Project (revenue recognition) ExhibitionOpening balanceExhibitionOpening balance 130 000 35 000 ExhibitionRegistration fees - Records Management Conference 35 000 35 000 65 000 - N/A 35 000 N/A 130 000 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 Transaction Type Transaction Opening BalanceOpening BalanceExhibitionRecords Management - Opening balanceOpening Balance (Conditional Grant) - 500 35 000 68 000 - 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 National Dept - Under common Government control National Dept - Under common Government control Nature of Relationship SALGA CEO and COO - Holds a Directorship position Public Entity - Under common Government control National Dept - Under common Government control Department of Public Works Department of Rural Development and Land Reform Name & Position EDI Holdings Auditor General of SA (AGSA) Department of Water affairs (Masibambane project) Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 195 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Amount Amount Transaction Transaction 48 446 - N/A N/A N/A N/A Transaction Type Transaction Opening balanceSponsorshipOpening balanceSponsorship - 110 980 Opening balance Sponsorship - 1 500 000 Opening balance 300 000 - Exhibition - N/A 6 800 000 N/A Opening balance N/A - N/A - Secondment - N/A N/A - Employee N/A N/A 300 000 - -159 426 N/A N/A N/AOpening balance N/A 35 000 N/A N/A N/A N/A N/A N/ASponsorship N/A N/A N/A N/A - 40 000 - N/A N/A N/A - N/A N/A N/A 500 000 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 Nature of Relationship National Dept - Under common Government control Provincial Government -Under common Government control Under common Government control National Dept - Under common Government control Provincial Government - Under common Government control Provincial Government - Under common Government control Name & Position Department of National Treasury Cape Dept of Western Local Government & Housing Eastern Cape Dept. of Local Government & Affairs Traditional Department of Arts & Culture KwaZulu-Natal Dept. of Local Government & Affairs Traditional Northern Cape Department of Co- operative Governance, Human Settlements & Affairs Traditional Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

196 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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- N/A N/A YES YES

Amount Amount

Outstanding Outstanding

Adjustments Adjustments 35 000

Amount Amount Transaction Transaction Transaction Type Transaction Opening balance Opening balanceProvincial Conference - Opening balance Exhibition 4 000 500 000 Impairment - 800 050 - 35 000 - N/A - 35 000 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 AdvertisingOpening balanceExhibitionOpening balance -333 250 Records Management - 35 000 500 - - 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 Nature of Relationship Provincial Government - Under common Government control Public Entity (Schedule 2 of PFMA) National Dept - Under common Government control National Dept - Under common Government control Under common Government control Name & Position Mpumalanga Department of Co-operative Governance and Affairs Traditional Cape Department Western of Provincial Treasury Department of Government Communications, Information Systems (GCIS) Department of Social Development Department of Rural Development and Land Reform Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 197 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Adjustments Adjustments

Amount Amount Transaction Transaction 333 - N/A N/A N/A N/A 175 000 175 000 - N/A N/A - N/A N/A N/A N/A N/A N/A -388 889 -55 556 N/A N/A N/A N/A Transaction Type Transaction Opening Balance (Conditional Grant) N/AN/A N/AN/AN/A N/A N/A N/AN/A N/A N/A N/A Project (revenue recognition) Records ManagementOpening balance Records Management 4 500 Opening balance 1 000 Exhibition - 3 000 Sponsorship/Donation N/A 933 596 Opening Balance 250 000 N/A - Sponsorship N/A 35 000 N/A - N/A N/AOpening Balance N/A - 184 Sponsorship & N/A N/A 4 000 N/ADonation - N/ANational Conference N/A N/A N/A N/A - Sponsorship & N/A N/A N/ADonation N/A - 30 000 Records Management N/A N/A N/A - - N/A N/A N/A N/A 500 N/A N/A - N/A - N/A N/A N/A N/A N/A N/A N/A 500 N/A N/A N/A N/A N/A N/A N/A N/A Nature of Relationship Under common Government control National Dept - Under common Government control Major Public Entity - Under common Government control - Under common Government control Major Public Entity - Under common Government control Name & Position Gauteng Department of Local Government & Housing Department of Sports & Recreation Development Bank of Southern Africa (DBSA) ESKOMIndustrial Development Corporation (IDC) Major Public Entity Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

198 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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N/A N/A N/A N/A Amount Amount

840

Outstanding Outstanding -3 925

Adjustments Adjustments Amount Amount

2 000 16 500 N/A N/A N/A N/A Transaction Transaction 36 000 15 000 -21 600 N/A 35 000 N/A N/A 35 000 - N/A N/A - N/A N/A 35 000 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 15 000 - N/A N/A N/A N/A 10 074 160 Transaction Type Transaction Conditional Grant: Learnership Sponsor Levy Training LGSETA Provincial Conference Exhibition 540 034 National Conference Exhibition Opening balanceNational Conference Exhibition - Opening balance N/ANational Conference N/AExhibition - N/A N/A - - N/A N/A - N/A N/A N/A N/A N/A N/A Opening BalanceProvincial Conference exhibition Provincial Conference Registration - - N/A N/A N/A N/A N/AN/A N/A N/A Opening balanceSponsorship & Donation 35 097 35 097 N/A N/A N/A N/A Nature of Relationship Public Entity - Under common Government control Public Entity - Under common Government control Major Public Entity - Under common Government control Local Gov - Under common Government control Name & Position National Credit Regulator (NCR) National Energy Regulator of South Africa (NERSA) Independent Development Trust Local Government Sector Education and Training Authority (SETA) Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 199 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Amount Amount Transaction Transaction 80 000 35 000 - N/A - N/A N/A N/A N/A N/A N/A N/A 35 000 35 000 - N/A N/A N/A - N/A 15 000 N/A N/A N/A N/A N/A N/A N/A N/A 1 500 000 1 515 000 N/A N/A N/A N/A Transaction Type Transaction Opening balanceSponsorship & Donation National Conference Exhibition - - N/A N/A N/A N/A Opening balanceNational Conference Exhibition Postal servicesOpening balance - National Conference Exhibition -1 304 Opening balance - - Opening balance N/AProvincial Conference - exhibition N/A N/ASponsorship & - Donation 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 Nature of Relationship Major Public Entity - Under common Government control - Under common Government control Public Entity - Under common Government control Local Gov - Under common Government control National Dept - Under common Government control Name & Position State Information Agency (SITA) Technology South African Post Ofﬁ ce South African Post Ofﬁ Major Public Entity South African Bureau of Standards (SABS) South African Local Government Bargaining Council (SALGBC) Statistics South Africa (Stats SA) Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

200 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Amount Amount

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Adjustments Adjustments Amount Amount

5 000 - N/A N/A N/A N/A Transaction Transaction -86 447 - N/A N/A N/A N/A -1 882 513 -254 428 N/A N/A N/A N/A Transaction Type Transaction Opening balanceProvincial Conference exhibition - - N/A N/A N/A N/A Research Television Advertisements and Licence -2 311 839 Printing Works Courier services -64 671 - Usage of telephone N/Alines N/A -9 204 -24 948 Catering N/A N/A N/A N/A -921 N/A N/A N/A -19 500 N/A N/A N/A - N/A N/A N/A N/A Nature of Relationship Major Public Entity - Under common Government control Major Public Entity - Under common Government control Public Entity- Under common Government control Body Part of SA ce Post Ofﬁ - under common control Is a municipal entity of eThekwini metropolitan municipality Name & Position Water Research Water Commission (WRC) South African Broadcasting Corporation (SABC) Government Printing Works Speed Courier Services Same Controlling SA LimitedTelkom The Municipal Institute of Major Public Entity Learning Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 201 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Expense Relating Relating Expense

Provision Raised Provision

Guarantees Secured

N/A N/A N/A N/A Amount Amount

323

Outstanding Outstanding -1 120 Adjustments Adjustments

- - N/A- N/A- N/A N/A

Amount Amount Transaction Transaction -4 500 - N/A N/A N/A N/A 50 000 - N/A N/A N/A N/A 214 086 - - 086 214 -14 500 - N/A N/A N/A N/A -1 334 409 Transaction Type Transaction Opening BalanceSponsorship & Donation NC - - N/A N/A N/A N/A Project (revenue recognition) Opening BalanceProject (revenue recognition)Opening Balance -200 000 -160 000 40 000 N/A N/A N/A - N/A N/A N/A N/A N/A Catering Rates Opening Balance (Conditional Grant) Nature of Relationship Public Entity - Under common Government control Funder Conditional Grant: Grant: Public Entity - Under common Government control Part of City Johannesburg Under common Government control Name & Position Small Enterprise Development Agency (SEDA) Conditional grant 216 000 - N/A N/A N/A N/A LA- Health LED Network Funder Conditional Human Science Research Council Braamfontein Improvement District Free State Department of Cooperative Governance & Affairs Traditional Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

202 SALGA Annual Report | 2011/12 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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Provision Raised Provision

Guarantees

Secured Amount Amount

185 N/A N/A N/A N/A

Outstanding Outstanding -7 852

Adjustments Adjustments

Amount Amount Transaction Transaction 35 000 35 000 - N/A N/A - N/A N/A N/A N/A N/A N/A 400 000 - N/A N/A N/A N/A -8 264 382 Transaction Type Transaction Project expenseOpening BalanceProject expenses -4 608 270 Grant closing balance 165 016 -2 789 587 - - N/A - - N/A 1 189 249 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 Opening BalanceNational Conference Exhibition Opening BalanceNational Conference Exhibition - Opening Balance Sponsorship & Donation - Opening Balance - Sponsorship & Donation N/A Recognition of Revenue N/A -1 220 - Opening Balance N/A N/A 1 220 N/A N/A 20 000 - 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 Nature of Relationship Funder Conditional Grant: Public Entity - Under common Government control Public Entity - Under common Government control Public Entity - Under common Government control Public Entity - Under common Government control Funder Conditional Grant: Name & Position Swedish Association of Local Authorities (P3) Housing Development Agency Rural Housing Loan Fund SASRIA Sedibeng Water Department of Water Affairs Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

SALGA Annual Report | 2011/12 203 3.5 Financial statements SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012

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to Bad Debts Bad to

Expense Relating Relating Expense

Provision Raised Provision

Guarantees

Secured Amount Amount

893 N/A N/A N/A N/A

Outstanding Outstanding -2 590

Adjustments Adjustments Amount Amount

3 000 1 000 N/A N/A N/A N/A Transaction Transaction 20 000 - N/A N/A N/A N/A -90 362 - N/A N/A N/A N/A -37 416 251 Transaction Type Transaction Membership fees Opening Balance Sponsorship Opening BalanceProject expensesGrant closing balance -2 185 846 Opening Balance -3 730 899 Project expenses National Conference - -300 000 Grant closing balance -300 000 - UIF; Employees Tax; 10 500 and SDL N/A - 1 538 901 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 Nature of Relationship Salga is a member Public Entity - Under common Government control Government Business Enterprise Funder Conditional Grant: Funder Conditional Grant: Public Entity - Under common Government control Name & Position Commonwealth Local Government Forum (CLGF) Public Administration Leadership and Management Academy (PALAMA) Umgeni Water National Swedish Development Cooperation Agency Department of Environmental Affairs South African Revenue Services (SARS) Annexure A - Related Party Transaction and Balances Annexure A - Related Party Transaction Figures in Rand

204 SALGA Annual Report | 2011/12 3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED

Name of donor Nature of gift, donation or sponsorship Actual Wesbank Gauteng Budget Week 15 000 The Industrial Development Corporation LED Network 175 000 First National Bank Councillor Induction Programme (NC) 20 000 Trade and Investment Limpopo Limpopo Provincial Conference 50 000 Limpopo Business Support Agency Limpopo Provincial Conference 20 000 PriceWaterhouseCoopers King III Workshop 30 000 First National Bank EC Provincial Conference 50 000 Eden District Municipality WC Provincial Conference 50 000 CoGTA (NC) CIP / NC Provincial Conference 500 000 Dept of Local Govt and Housing ELDP for Councillors (WC) 1 000 000 Alexander Forbes NW Provincial Conference 5 000 Economic Development Enterprise Limpopo Provincial Conference 60 000 SupplyFIN (Pty) Ltd Limpopo Provincial Conference 30 000 Standard Bank WC Provincial Conference 100 000 Polokwane Local Municipality LP Provincial Conference 50 000 SITA NC Provincial Conference 80 000 Standard Bank NC Provincial Conference 150 000 SEDA NC Provincial Conference 50 000 Internet Solutions National Conference 300 000 Lateral Unison Insurance Brokers EC Provincial Conference 50 000 Steve Tshwete Municipality MP Provincial Conference 98 600 Vhembe District Municipality LP Provincial Conference 52 000 Standard Bank (NW) NW Provincial Conference 100 000 Department of Local Govt and Housing WC Provincial Conference 50 000 Anglo Platinum Limited Local Government Capacity Building 500 000 Lemphane Fleet Solution FS Provincial Conference 3 000 StatsSA National Conference 1 500 000 SASRIA National Conference 250 000 UMGENI Water National Conference 20 000 Bonitas Marketing EC Provincial Conference 10 000

The supplementary information presented does not form part of the ﬁ nancial statements and is unaudited

SALGA Annual Report | 2011/12 205 3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED (CONTINUED)

Name of donor Nature of gift, donation or sponsorship Actual Standard Bank National Conference 200 000 Anglo Platinum Limited NW Provincial Conference 20 000 Egis Software South Africa Records Management Conference 5 000 Development Bank of SA (DBSA) National Conference 250 000 Old Mutual - IBSA dialogue IBSA local government dialogue 109 400 National Treasury ODAP - IDC 110 980 Sedibeng Water NC PEC Lekgotla 20 000 Passenger Rail SA National Conference 1 000 000 GIZ Salary: LED Coordinator 72 000 ESKOM National Conference 4 000 000 Softline Pastel NC Budget Week 25 000 IMQS Software NC Finance Forums 2 500 Ducharme Consulting NC Finance Forums 5 000 Konica Minolta FS Budget week 50 000 GIZ Salary: LED Coordinator: Economic Dev 18 000 SASRIA EMT Lekgotla 150 000 GIZ Salary: LED Coordinator - Economic Dev 18 000 CoGTA (MP) CIP Mpumalanga 800 050 SKL International GEMLOG 46 228 SKL International LODLOG/GEMLOG Steercom Meeting 44 558 GIZ LED Newsletter Special Edition 20 000 First National Bank FS Provincial Conference 40 000 Ramabulana Management Service NC Provincial Conference 10 000 Mubesko Africa NC Provincial Conference 5 000 Industrial Development Corporation LED Network 175 000 GIZ Salary: LED Coordinator - Economic Dev 18 000 GIZ Salary: LED Coordinator - Economic Dev 18 000 Standard Bank (LIM) Provincial Budget Week (Limpopo) 50 000 LGSETA Contribution to Internship - IGR 7 200 African Centre for Local Govt Improvement Contribution to Travel costs 51 812

The supplementary information presented does not form part of the ﬁ nancial statements and is unaudited

206 SALGA Annual Report | 2011/12 3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION RECEIVED (CONTINUED)

Name of donor Nature of gift, donation or sponsorship 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 Salary: LED Coordinator - Economic Dev 18 000

LGSETA Contribution to Internship - IGR 7 200

Total 12 786 123

The supplementary information presented does not form part of the ﬁ nancial statements and is unaudited

SALGA Annual Report | 2011/12 207 3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND

Donor Reason for Sponsorship Type of Sponsorship Amount SANLAM Provincial Conference (Western 180 Note Pads & Pens 1 800 Cape) SANLAM Provincial Conference (Western 180 Conference Bags 11 700 Cape) DBSA Training (Western Cape) Consultant appointed for Telematics 50 000 Training - Consultant paid directly by DBSA Gender Links Workshop Facilitation (Western 24-26 August 2011 Gender Links 5 000 Cape) facilitated a Gender mainstreaming workshop to Councillors and ofﬁ cials. The R5 000 relates to Accommodation and Travel costs IDC Mossel Bay & George (Western Assisted municipalities with 400 000 Cape) 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) Department of Water Affairs Training (Western Cape) Consultant was paid directly 250 000 National Council for Persons with Capacity Building Workshop A Capacity Building Workshop 17 630 Physical Disabilities (Western Cape) was facilitated by The National Council for Persons with Physical Disabilities to Councillors, ofﬁ cials and Community based structures on 15 August 2011 (Includes S & T and accommodation costs) Member municipalities Councillor training and service Venue Hire 65 200 improvement (Western Cape) USAID - North-West University Disaster Management Capacity Disaster Risk Reduction Short 219 000 Building Programme (Northern Courses Cape) National Treasury Training for MMC’s and Mayors Venue, Catering, Training Materials 38 920 (Northern Cape) and Facilitation Audit Network Firm Provincial Conference (Northern Consulting Services 48 300 Cape) Sol Plaatjie Municipality Provincial Conference (Northern Jimmy Summers & West End Club 5 000 Cape) Sol Plaatjie Municipality Provincial Conference (Northern Gala Dinner 37 375 Cape)

The supplementary information presented does not form part of the ﬁ nancial statements and is unaudited

208 SALGA Annual Report | 2011/12 3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND (CONTINUED)

Donor Reason for Sponsorship Type of Sponsorship Amount

SEDA Provincial Conference (Northern Promotional Materials - 200 15 000 Cape) Branded Paper Bags, Folders, Pens & Note Pads Department of Environmental Affairs Landfi ll Site Operators and Training Costs 328 000 Managers Training (Northern Cape) Development Bank of Southern LED Learnership for NQF Level 4 Learnerships for NQF Level 4 & 5 1 200 000 Africa & 5 NC Municipalities (Northern for N/Cape Municipalities Cape) Dept: Rural Development Spatial Planning Seminar (Northern Payment towards the Conference 14 580 Cape) Venue First National Bank PEC Lekgotla (Northern Cape) FNB Branded Pens and Note Pads 998 Siyanda District Municipality PEC Lekgotla (Northern Cape) Dinner for Staff and PEC Members Kai Garib Local Municipality PEC Lekgotla (Northern Cape) Dinner for PEC Lekgotla Delegates, 38 380 SALGA Staff and PEC Joe Morolong Local Municipality WIPLG Summit (Northern Cape) Live Band, Hall and Catering for the 48 000 WIPLG Summit Department of Water Affairs Councillor Development Programme Training Costs - S & T and 53 584 (Northern Cape) Accommodation Small Enterprise Development Adra New Year Diaries (Northern Cape) 36 Diaries A4 SEDA Branded 5 960 Diaries and 17 Desk Pads Aurecon Councillor Induction Programme 950 Conference Bags 34 180 (North West) Department of Local Government Councillor Induction Programme Catering at 4 Districts for CIP : 495 918 (North West) lunches Rustenburg Local Municipality Councillor Induction Programme Utilization of venue 50 100 (North West) Naledi Local Municipality Councillor Induction Programme Utilization of venue 8 468 (North West) Mafi keng Local Municipality Councillor Induction Programme Utilization of venue 37 531 (North West) Tlokwe City Council Councillor Induction Programme Mayoral Dinner i.r.o. Cllr Induction 17 000 (North West) Sedibeng Water Provincial Conference (North West) 200 Long Sleeve Golf shirts 36 197 Offi ce World Provincial Conference (North West) 200 PVC Envelopes, 200 Writing 2 770 pads, 200 pens Tshikovha Enviro Provincial Conference (North West) Corporate gifts 5 659

The supplementary information presented does not form part of the ﬁ nancial statements and is unaudited

SALGA Annual Report | 2011/12 209 3.6 STATEMENTS OF GIFTS, DONATION AND SPONSORSHIP

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION Annual Financial Statements for the 12 months ended March 31, 2012 SUPPLEMANTARY INFORMATION

Figures in Rand

STATEMENT OF GIFTS, SPONSORSHIP, AND DONATION IN KIND (CONTINUED)

Donor Reason for Sponsorship Type of Sponsorship Amount

Bojanala Platinum DM Provincial Conference (North West) Gala Dinner 100 000

Rand Water Provincial Conference (North West) Conference Bags 10 000

Dr Ruth Mompati DM PEC Lekgotla (North West) Dinner 24 800

Barefoot Media Town Planning Summit (North Conference Bags 2 556 West)

NDMC & USAID Disaster Management CB Training costs 150 000 Programme (North West)

Rural Maintenance CIP (Gauteng) Glossy brochures 4 908

Rural Maintenance Provincial Conference (Gauteng) Tshwane Bus Services 1 742

Rural Maintenance Provincial Conference (Gauteng) Cultural Dance Group 3 000

Rural Maintenance Provincial Conference (Gauteng) Entertainment (Ringo) 30 000

Rural Maintenance Provincial Conference (Gauteng) 3 in 1 Wind Breakers 26 732

Rural Maintenance Provincial Conference (Gauteng) Branded 2G USB 16 459

Rural Maintenance Provincial Conference (Gauteng) Wooden mouse and mouse pads 25 057

East Rand Water Company (ERWAT) Provincial Conference (Gauteng) 350 Branded Conference bags

City of Tshwane Provincial Conference (Gauteng) Gala Dinner Venue 85 000

SAMWUMED OR Tambo Games (Gauteng) 5000 Water Bottles 58 140

COMMED Medical Aid OR Tambo Games (Gauteng) Flyman Jackets, shoulder bags, 66 281 ladies golf shirts, gents golf shirts, half-moon caps

Amatole Water Board Provincial Conference 2011 Bottled Water / note pads/pens 800 (Eastern Cape)

Cacadu DM Provincial Conference 2011 Cocktail Function 120 000 (Eastern Cape)

Nelson Mandela Metro Provincial Conference 2011 Gala Dinner 100 000 (Eastern Cape)

Business Link SALGA Games (Eastern Cape) Trophy / Shield 400

Dept of Loc Govt SALGA Games (Eastern Cape) Medals 500

The supplementary information presented does not form part of the ﬁ nancial statements and is unaudited

210 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Institutionalised and All national functional Enquiry System piloted in the directorates to be OCEO Management OCEO including SPR 1 ACHIEVED N/A included on EMS by System (EMS) in all and MIS/MID March 2012 directorates

Approved Develop stakeholder stakeholder SPR Draft Policy 2 ACHIEVED N/A management policy management policy by March 2012

06 structured Facilitate structured engagements with engagements with SPR New Indicator donors, private sector 3 ACHIEVED N/A donors, private sector and civil society by and civil society March 2012

Finalisation of Draft strategy Hands-on Support IGR Hands-on Support approved on 25 Strategy approved by 4 ACHIEVED N/A Strategy March 2011 31 March 2012

Hands on support Hands -on support Provide direct provided to provided to at least IGR hands-on support to more than 25 25 municipalities 5 ACHIEVED N/A municipalities municipalities in in 2011-12 by 31 2010-11 March 2012

Draft and submit substantial policy COGTA TAS and Draft submissions IGR documents on Delivery Agreement to DCOG by 15 July 6 ACHIEVED N/A LG policy review for Outcome 9 2011. process.

Draft and submit Participate in the substantial policy COGTA TAS and DCOG seminars on IGR documents on Delivery Agreement the policy review 7 ACHIEVED N/A LG policy review for Outcome 10 process by March process. 2012.

Draft and submit Submissions to substantial policy COGTA TAS and parliament for IGR documents on Delivery Agreement 8 ACHIEVED N/A purpose of lobbying LG policy review for Outcome 11 by 31 March 2012. process.

Sharing research Migration Study study (Migration) SALGA WC disseminated to New Indicator with two districts 9 ACHIEVED N/A municipalities municipalities by September 2011

SALGA Annual Report | 2011/12 211 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Facilitate a 1 Learning Event on learning event SALGA WC New Indicator MDGs conducted by 10 ACHIEVED N/A around community October 2011 development issues

Development of a Participation in Blueprint approved Blueprint for guiding IGR Tshwane-Metsweding by NEC by 31 11 ACHIEVED N/A future restructuring merger December 2011 in LG

Submission of Development of a Participation in Blueprint to LG Blueprint for guiding IGR Tshwane-Metsweding Minmecs by March 12 ACHIEVED N/A future restructuring merger 2012 for purpose of in LG lobbying

Development of a Submission to Participation in Blueprint for guiding provincial PCFs by IGR Tshwane-Metsweding 13 ACHIEVED N/A future restructuring Feb/March 2012 for merger in LG purpose of lobbying

212 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (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 KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

06 Policy briefs Policy briefs packaged and disseminated to disseminated to SPR New Indicator 14 ACHIEVED N/A Local Government Local Government Stakeholders stakeholders by March 2012.

Delegation by NEC Representation of representatives of SALGA in IGR for participation structures with clear in parliament and SALGA parliamentary IGR mandated positions provincial legislatures 15 ACHIEVED N/A programme 2010-11 developed and cllr in line with the representation in parliamentary place. programme 2011-12 by March 2012.

Development of a Capacity Building Approved SALGA programme/tool for SALGA parliamentary Advocacy and IGR 16 ACHIEVED N/A NEC/PEC members programme 2010-12 Lobbying programme on Advocacy and by December 2011. Lobbying.

Development of a 50 members of Capacity Building NEC/PECs trained programme/tool for SALGA parliamentary IGR in lobbying and 17 ACHIEVED N/A NEC/PEC members programme 2010-13 advocacy strategies on Advocacy and by December 2011. Lobbying.

Optimising OLG Draft strategy Final IGR Strategy participation in the IGR approved by NEC on approved by NEC by 18 ACHIEVED N/A IGR system by March 25 March 2011 31 March 2012 2012

Engage municipalities to Inputs on various As per 2010/2011 gather inputs on SALGA WC relevant Legislation to 19 ACHIEVED N/A ﬁ nal performance various relevant provincial legislature legislature by March 2012.

Report on Report on As per the engagements with engagements with SALGA WC 2010/2011 ﬁ nal intergovernmental 20 ACHIEVED N/A intergovernmental performance forums e.g. MINMAY forums by end March 2012

SALGA Annual Report | 2011/12 213 3.7 PERFORMANCE INFORMATION (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 KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Engagement of Engagement of three Stakeholders three Stakeholders on the collaboration SALGA WC on the collaboration New Indicator 21 ACHIEVED N/A Partnerships with Partnerships with SALGA by March SALGA 2012

214 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Structured SALGA Assessment of Provide support to participation in key SALGA Participation OLG in the region structures regionally, in regional, as per the MOUs continentally and continental and that are in place by OCEO internationally international March 2012 22 ACHIEVED N/A (UCLGA; UCLG, structures CLGF, etc) and support provided to OLG in the Region

Coordinated 2010/11 Upper Conduct study on the organisational input Limits Notice; Pension Fund and into all matters SALGA Position on Medical Aid regime OCEO pertaining to Councillor Support; for councillors by 23 ACHIEVED N/A Councillor Support SALGA Position and March 2012 Work done on MCPF related issues

Approved timely Submission to DWA Approved submission submissions on bulk and Parliament on bulk water pricing MIS 24 ACHIEVED N/A water pricing as per made to regulators section 42 of MFMA by January 2012

Ensure effective Active participation Draft ﬁ ve speeches representation in conference and and 10 presentations of SALGA at IGR workshops in 2010- (IGR structures) IGR Conferences, 11 or such additional 25 ACHIEVED N/A workshops and inputs as may be seminars. required by 31 March 2012.

SALGA participating Established linked SALGA participate in all relevant IR with international and play a IGR structures nationally, stakeholders meaningful role in all 26 ACHIEVED N/A continentally and relevant IR Structures internationally by March 2012

SALGA EC As per SALGA participate participating in 10/11Business Plan and play a all IGR and IR meaningful role in SALGA EC Structures within the all Munimecs and 27 ACHIEVED N/A province, national IGR District forum and international structures by March 2012

SALGA Annual Report | 2011/12 215 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Municipalities As per 2010/11 Coordinate and advised towards business plan Support Partnership aligning and between Korean strengthening Institute for SALGA NW 28 ACHIEVED N/A of international Development and partnerships and Moretele Local implementation of Municipality by twinning agreements. March 2012

Assessment on New Indicator Conduct an International assessment on SALGA WC Partnerships International 29 ACHIEVED N/A Partnership by December 2011

Marketing and New Indicator Proﬁ ling of the Branding of SALGA SALGA WC projects/ programmes by SALGA WC means of newsletters 30 ACHIEVED N/A and annual publication by March 2012.

Timely dissemination New indicator Four Internal/external of accurate newsletter developed SALGA FS 31 ACHIEVED N/A information internally by March 2012 and externally

Coordinated 2010/11 Upper Input into the organisational input Limits Notice; ﬁ nalisation of Tools of into all matters SALGA Position on Trade by March 2012 OCEO pertaining to Councillor Support; 32 ACHIEVED N/A Councillor Support SALGA Position and Work done on MCPF- related issues

Coordinated 2010/11 Upper Input into the Review organisational input Limits Notice; of the System of into all matters SALGA Position on Remuneration for OCEO pertaining to Councillor Support; Councillors by March 33 ACHIEVED N/A Councillor Support SALGA Position, and 2102 Work done on MCPF- related issues

2010/11 Upper Conduct provincial Coordinated Limits Notice; workshops on overall organisational input SALGA Position on Councillor Support OCEO into all matters Councillor Support; for new and returning 34 ACHIEVED N/A pertaining to SALGA Position and Councillors post the Councillor Support Work done on MCPF- Elections by March related issues 2012

216 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

2010/11 Upper Coordinated Limits Notice; Participate in the organisational input SALGA Position on Upper Limits process OCEO into all matters Councillor Support; for the 2011/12 35 ACHIEVED N/A pertaining to SALGA Position and ﬁ nancial year by Councillor Support Work done on MCPF- March 2012 related issues

2010/11 Upper Co-ordinate and Coordinated Limits Notice; facilitate participation organisational input SALGA Position on on MCPF issues as OCEO into all matters Councillor Support; 36 ACHIEVED N/A and when required or pertaining to SALGA Position and requested by March Councillor Support Work done on MCPF- 2012 related issues

SALGA Annual Report | 2011/12 217 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Coordinate support and preparation for all SALGA Coordinated Governance and Structured structures and events OCEO Governance New Indicator 37 ACHIEVED N/A , including NOB, Structures and NEC, NC, NWGs events of SALGA as per the SALGA schedule of meetings by March 2012

2011/12 Annual Audit Coverage plan developed and Implemented Annual Audit Coverage Plan implemented as Lack of capacity OCEO Audit Coverage Plan 38 NOT ACHIEVED 2011/12 per the deadlines, for 2011/12. including 13 internal audits by March 2012

2012/13 Audit Plan Developed 2012/13 developed and OCEO 2010/11 Audit Plan 39 ACHIEVED N/A Audit Plan approved by March 2012

No capacity, as the departure of the director of legal and Developed and Internal audit Develop contract compliance implemented assessment on management strategy and the failure OCEO contract the contract and ﬂ ow chart based 40 NOT ACHIEVED to appoint management management status for National ofﬁ ce by a contract strategy. of SALGA March 2012 management specialist has hampered the implementation of this KPI

Quarterly reports on implementation of the compliance Implementation framework developed of the compliance Compliance OCEO for submission to 41 ACHIEVED N/A framework for framework Audit Committee and SALGA. SALGA governance structures by March 2012.

218 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

All matters attended to as required and Provision of ongoing OCEO Legal Register captured in the legal 42 ACHIEVED N/A legal services register by March 2012.

Conduct Risk Assessments of Approved Developed directorates and Target was only SALGA 2011/12 OCEO Organisational Risk provinces for 43 ACHIEVED met by February organisational Risk Register for 2012/13 2012/13 to develop 2012 Register. the risk register by January 2012

Performance Performance An institutionalised Management Management System Performance System cascaded to OCEO rolled-out up to 44 NOT ACHIEVED Lack of capacity Management System employees across all employees on staff throughout SALGA staff levels by March level 4 2012

Developed and Developed and implemented OCEO Implemented New Indicator Behaviors Charter to 45 NOT ACHIEVED Lack of capacity Behaviors Charter Employee level 1 - 3 by March 2012

Establish SALGA Established SALGA Approved Fraud OCEO Hotline by March 46 ACHIEVED N/A Fraud Hotline Prevention Plan 2012

Implemented Marketing and Approved Marketing Marketing and Communications OCEO and Communication 47 NOT ACHIEVED Lack of Capacity Communication Plans implemented Strategy and Plan Plan/s by March 2012

HR Report submitted to the CEO quarterly and Municipal Management and Finance and monitoring of staff F & CS Existing staff capacity Corporate Services 48 ACHIEVED N/A movements within Working Group SALGA. meetings during the ﬁ nancial year by March 2012

SALGA Annual Report | 2011/12 219 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Roll-out of Electronic Fully implemented Document and Electronic Record Management National offi ce and Document Records System (EDRMS) F & CS six Provincial offi ces 49 ACHIEVED N/A Management for Eastern Cape implemented Systems (EDRMS) to and Northern Cape all offi ces Provincial offi ces by March 2012.

Ensure that the ICT functions at Maintaining the both National and F & CS New Indicator network stability at 50 ACHIEVED N/A Provincial Ofﬁ ces 95% by March 2012 are maintained at an operational level

95% collection of Municipalities Improve the liquidity membership levies F & CS 90% collection levels 51 NOT ACHIEVED unable to pay of SALGA by year end (March levies 2012)

Ensure ofﬁ ce 25% of SALGA accommodation ofﬁ ces compliant with F & CS New Indicator 52 ACHIEVED N/A that is compliant to applicable legislation applicable legislation by March 2012

Revised membership levy formula for Review of the 2011/12 year F & CS Membership levy Revised levy formula approved by NEC 53 ACHIEVED N/A formula and adopted by National Conference by September 2011

Implementation of Implementation Treasury Guidelines F & CS of the approved New Indicator 54 ACHIEVED N/A on Supply Chain by purchasing method March 2012

Four Quarterly SALGA in- Performance Reports year Quarterly Quarterly Reports on implementation SPR Performance Reports submitted to 55 ACHIEVED N/A of SALGA Annual (O-PMS) submitted Minister: DCoG Performance Plan by to the Minister: DCoG 31 March 2012

Submission of the Revised Performance Mid-Term Review of Plan 2011/12 Mid-Term Review SPR the SALGA Business submitted to 56 ACHIEVED N/A APP 2011/12 Plan 2011/12 to Minister: DCoG by Minister: DCoG December 2011

220 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Approved SALGA Annual Performance Approved SALGA Plan 2012/13 Performance Plan Annual Performance SPR submitted to COGTA 57 ACHIEVED N/A 2012/13 submitted Plan 2011/12 and National to the Minister: DCoG Treasury by 31 January 2012

SALGA Annual Submission of the Report 2010/11 SALGA Annual Annual Report submitted to SPR Report 2010/11 58 ACHIEVED N/A 2010/11 Minister: COGTA to Minister: DCoG (Parliament) by 31 (Parliament) August 2011

SALGA 5-Year SALGA 5-Year Strategic Plan 2012- Strategic Plan 2012- Strategic Plan 2017 submitted to SPR 2017 submitted to 59 ACHIEVED N/A 2007-2012 COGTA and National Minister: CoGTA and Treasury by 31 National Treasury January 2012

Mainstreaming Quarterly Managers: Strategic and the Strategic and Strategic Support SPR Business Planning 60 ACHIEVED N/A Business Planning forum meetings by Policy Policy March 2012

Develop Annual EC Annual Align strategic goals Performance plan SALGA EC Performance Plan 61 ACHIEVED N/A to the resources 2012/13 for SALGA- 2011/12 EC by March 2012

The Second Coordinate the provincial hosting and Two PC, four PEC conference functionality of meetings, three could not be As per SALGA EC all Governance meetings per working 62 NOT ACHIEVED held since 10/11Business Plan Structures in line group coordinated by the Special with the constitution March 2012 Conference of SALGA (National) did not take place

Four quarterly Units complying with reports on the prescribed business 2010/11 Free State implementation SALGA FS planning processes 63 ACHIEVED N/A Performance Plan of the 2011/12 (implementation of Performance Plan by KPI, reporting) March 2012

SALGA Annual Report | 2011/12 221 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Convene all 11 SALGA Provincial SALGA Governance Governance SALGA FS 64 ACHIEVED N/A Governance Framework Structures convened Structures by March 2012

Provincial Conference, PEC Coordination PMA and PEC Lekgotla, 12 working of governance Lekgotla, Strategic groups, four PEC SALGA LP 65 ACHIEVED N/A structures and Planning Session, Meetings, and Hosting conferences Municipal Awards two Ofﬁ ce Bearer meeting by March 2012

Develop two Develop provincial Provincial Newsletter newsletter and 2010/11 approved and 12 media SALGA LP 66 ACHIEVED N/A publications of Business Plan. publications/ SALGA’s events coverage by March 2012

SALGA proﬁ led through electronic SALGA MP-branded media, print media, and marketed locally, SALGA MP New indicator two stakeholder 67 ACHIEVED N/A district and provincial engagements, and level one media breakfasts by March 2012

Municipalities One Municipal rewarded As per 10/11 SALGA MP Excellence Awards 68 ACHIEVED N/A for excellent Business Plan hosted by Sept 2011 performance

2011/2012 Annual Performance Plan As per 2011/2012 One quarterly review implemented Annual Performance session of 2011 / SALGA MP 69 ACHIEVED N/A and 2012/2013 Plan and 2010/2011 2012 APP by March Performance Plan ﬁ nal performance 2012 developed

Submission of 100% collection of Municipalities SALGA NC monthly progress 2009/10 collection membership levies 70 NOT ACHIEVED unable to pay reports on levies by March 2012 levies

222 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Coordinate provincial governance structures as per Coordinate the SALGA calendar by hosting and March 2012 functionality of As per Two Working Group SALGA NC all Governance 71 ACHIEVED N/A 10/11Business Plan Meetings Structures in line One Provincial with the constitution Conference of SALGA Four PEC Meetings Two Strategic Planning Session

Engage identiﬁ ed One stakeholder stakeholders towards engagement meeting SALGA NC New indicator 72 ACHIEVED N/A supporting SALGA to leverage resources programmes by March 2012

Conduct one Provincial Conference, six Implementation of PEC Meetings, 2 x SALGA Governance Baseline as per year SALGA NW 6 Working Group 73 ACHIEVED N/A Framework and Ad ending 2010/11 Meetings hoc priorities (two per Working Group) by March 2012

Convene the following SALGA Governance Convene SALGA Structures as per the provincial As per the SALGA year calendar SALGA WC governance 2010/2011 ﬁ nal by March 2012 74 ACHIEVED N/A structures as per performance Six PEC Meetings SALGA Year Planner 2x6 Working Group Meetings One Provincial Conference

As per 2011/2012 Business Plan and Development of the Development of the Performance Provincial Annual SALGA WC the Provincial 75 ACHIEVED N/A Scorecards in terms Performance Plan by Performance Plan of the New Reviewed January 2012. Performance Policy

One Teambuilding Coordinate the Session conducted SALGA WC provincial team New Indicator 76 ACHIEVED N/A by March 2012 for all building staff members

SALGA Annual Report | 2011/12 223 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Report on the Development and proposed salary submission of increases submitted Proposals regarding F & CS 2010/ 11 Report. to the Remuneration 77 ACHIEVED N/A the cost of living Panel and approved adjustment for by the NEC by SALGA employees. September 2011.

Report with Development and implementation submission of plan on introduction Proposals regarding of employment the introduction of N/A F & CS New Indicator conditions (service 78 ACHIEVED new employment beneﬁ ts) submitted conditions (service and approved by the beneﬁ ts) within Remuneration Panel SALGA. by December 2011.

To enhance HR Workplace Skills Plan compliance to for SALGA compiled 2010/ 11 Training F & CS relevant legislations, and submitted to the 79 ACHIEVED N/A Report. regulations and LG-Seta as required internal HR policies. by March 2012

SALGA Employment To enhance HR Equity Plan compliance to Approved EE Plan for implemented and F & CS relevant legislations, 80 ACHIEVED N/A SALGA. Reports submitted regulations and per EE Act by March internal HR policies. 2012

Occupational Health and Safety Health and Safety Committee meetings Committee fully coordinated and F & CS New Indicator 81 ACHIEVED N/A functional within compliance report SALGA by March developed by March 2012 2012

To enhance HR Implementation compliance to and monitoring of Approved 2011 HR F & CS relevant legislations, adherence to SALGA 82 ACHIEVED N/A Policies regulations and HR Policies by internal HR policies. March 2012

Development and Implementation Employee Awards of Employee F & CS New Indicator implemented by 83 ACHIEVED N/A Recognition December 2011 Programme within SALGA.

224 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Structured Wellness Wellness Calendar Programme developed and F & CS Approved Policy. 84 ACHIEVED N/A developed and submitted to CEO by implemented. September 2011.

Implementation pending due to postponement of national Revise and consultation implement a process. To Electronic Document Monitoring and ensure cost and Record F & CS maintenance of the New Indicator 85 NOT ACHIEVED effectives Management System EDRMS National (EDRMS) (Archive) consultation for policy by March this and other 2012 policies will be scheduled for the 2012/13 ﬁ nancial year.

To maintain a Ensure efﬁ cient ICT desktop support F & CS solutions for SALGA New Indicator response turn-around 86 ACHIEVED N/A end users time of two hours by March 2012

SALGA Annual Report | 2011/12 225 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Proposals on the funding model Implementation of presented to F & CS the SALGA funding Revised levy formula 87 ACHIEVED N/A Executive Authority model (CoGTA) by September 2011

Implementation Effective of phase 2 of the implementation of Enterprise Resource F & CS New Indicator 88 ACHIEVED N/A phase 2 of ERP Planning (ERP) system system by March 2012

Develop and Develop and implement year implement year planner for Supply F & CS SCM Policy 89 ACHIEVED N/A planner for SCM Chain Management committees (SCM) committees by 31 October 2011

Time constraints - implementation of SAP Procurement module took Implementation of Implementation of longer than F & CS New Indicator VIP / ESS system by 90 NOT ACHIEVED VIP/ESS anticipated March 2012 thereby leaving insufﬁ cient time to implement the VIP/ESS project although already developed.

Disposal of Northern Properties could Disposal of Cape and Gauteng not be disposed F & CS Investment New Indicator 91 NOT ACHIEVED properties by March during the year Properties 2012 under review.

Improve budget control to achieve R5-million surplus at F & CS New Indicator 92 ACHIEVED N/A a surplus of at least 31 March 2012 R5-million

The Due Integrated KZN ofﬁ ce Diligence was F & CS Integrated KZN ofﬁ ce New Indicator by the 30 November 93 NOT ACHIEVED concluded 2011 during May 2012.

226 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

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

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Development Compliance with the 2010/11 Free State of 2012/13 SALGA FS Business planning 94 ACHIEVED N/A Performance Plan Performance Plan by and policy December 2011

2011/2012 Annual Performance Plan As per 2011/2012 Annual Performance implemented Annual Performance Plan for 2012/2013 SALGA MP 95 ACHIEVED N/A and 2012/2013 Plan and 2010/2011 approved by March Performance Plan ﬁ nal performance 2012 developed

90% Collection of all Collection of Baseline as per year SALGA NW Membership Levies 96 ACHIEVED N/A Membership Levies ending 2010/12 by March 2012

Roll out of the Established SALGA Approved Fraud Fraud Prevention OCEO 97 ACHIEVED N/A Fraud Hotline Prevention Plan Awareness campaign by March 2012

Coordinate two employee wellness Facilitation of three SALGA NC New Indicator programmes and 98 ACHIEVED N/A wellness programmes one team building by March 2012

The MIS working group (SALGA MP) was scheduled for One PC, two Ordinary Functional Four PEC Meetings, March 2012. PEC meetings, two Governance four meetings per Unfortunately, SALGA MP meetings per working 99 NOT ACHIEVED structures in line with working group, one the Programme group coordinated by SALGA’s Constitution PEC Lekgotla Manager March 2012 resigned during February 2012, leaving the unit with no capacity

SALGA Annual Report | 2011/12 227 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O1: COUNCILLOR SUPPORT - HIGH CALIBER, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Supporting MID, Conduct induction in partnership sessions in all with sector provinces for MMCs departments, in responsible for water, MIS New Indicator 100 ACHIEVED N/A the implementation waste management, of the sector based and human Cllr induction settlement by March programmes 2012

Co-ordinate the Newly elected 2007 Councillor induction of 8000 councillors inducted MID Induction councillors in all 101 ACHIEVED N/A after the 2011 Local Programme/manual provinces by 31 Government elections August 2011.

Develop and maintain database and communicate Updated data attainment base and results Inadequate SALGA EC Employment Equity New Indicator communicated to 102 NOT ACHIEVED response from targets in senior EC Municipalities by municipalities management of March 2012 Eastern Cape Municipalities.

228 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O1: COUNCILLOR SUPPORT - HIGH CALIBER, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Provide support to municipal Provide PMS training offi cials towards to offi cials in fi ve SALGA EC ensuring qualitative New Indicator municipalities on the 103 ACHIEVED N/A compliance with implementation of Performance PMS by March 2012 Management System.

Ten consultative Coordinate forums convened consultative forums As per 2010/11 with ward SALGA GP 104 ACHIEVED N/A for ward committees status report committees and and municipalities municipalities by March 2012

Conduct fi ve Councillors well district municipal informed about engagements their councillor and aftercare on remuneration, As per 2010/11 compliance with SALGA LP 105 NOT ACHIEVED Lack of capacity benefi ts attached to business plan Offi ce Bearers offi ce bearers and Handbook and councillor tax support councillor welfare matters. matters by February 2012

New councillors in the Province Capacitate 200 engaged on councillors on SALGA LP clariﬁ cation of roles New Indicator the roles and 106 ACHIEVED and responsibilities responsibilities by and the political and October 2011. admin interface

Request was Capacitate sent to all Enrol 200 municipal municipal offi cials municipalities Skills Audit Report/ councillors and and Councillors by but only 160 SALGA LP Competency offi cials on ELMDP 107 NOT ACHIEVED strengthening their councillors Dictionary and MFMP by March skills and human and offi cials 2012 resources base. registered for the programmes

Four Municipalities Municipalities Three Municipalities supported in with established assisted in establishing and and functional SALGA MP having functional in the functionality 108 ACHIEVED N/A committees of committees of of committees of council and ward council council by March Committees. 2012.

SALGA Annual Report | 2011/12 229 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O1: COUNCILLOR SUPPORT - HIGH CALIBER, PROFESSIONAL, AND EFFECTIVE LOCAL GOVERNMENT POLITICAL LEADERSHIP

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Municipalities 21 Municipalities advised on effective advised on good SALGA MP Political oversight New Indicator 109 ACHIEVED N/A corporate governance on Good Corporate by March 2012 Governance

Municipalities One Provincial capacitated on Workshop conducted understanding on Powers and SALGA NW New Indicator 110 ACHIEVED N/A their legislative and Functions of TROIKA regulatory powers + 1 by December and functions 2011

Conduct Provincial Advice provided to workshop on municipalities on As per 2010/11 councillor support SALGA NW 111 ACHIVED N/A councillor support business plan. programme for all programmes Municipalities by December 2011

Induction workshop Induction of new PEC held with new PEC SALGA WC New Indicator 112 ACHIEVED N/A members members by March 2012

Municipalities Four Municipalities with established Six Municipalities supported in and functional supported in having establishing and SALGA MP 113 ACHIEVED N/A committees of functional ward functionality of council and ward committees. ward committees by Committees. March 2012.

Political Ofﬁ ce Bearers and Administrative 21 Municipalities Municipalities leadership in 21 supported in understanding their Municipalities SALGA MP understanding 114 ACHIVED N/A legislated roles and supported in their roles and responsibilities understanding responsibilities their roles and responsibilities by March 2012.

Councillors Five municipalities capacitated on assisted in Lack of capacity SALGA NC the understanding New Indicator establishment of 115 NOT ACHIEVED of their roles and Ward Committees by responsibilities. March 2012

230 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Develop a position Approved position paper advocating paper advocating for the revision of MIS for the revision of New Indicator 116 ACHIEVED N/A Emergency Housing Emergency Housing Policy by March Policy 2012

Facilitate accreditation of 12 Approved Complete priority municipalities assessment report assessment of MIS through participation for all the 12 priority 117 ACHIEVED N/A all metropolitan in the capacity municipalities by municipalities and compliance March 2012 assessment panel.

Assessment of the Report outlining implementation of the service delivery appropriate long term institutional MIS institutional delivery New Indicator arrangements 118 ACHIEVED N/A mechanisms for in Water Service sustainable service Authorities by March delivery 2012

Support and assistance to any of Implement VROM MIS the 13 Restructuring Deliverables achieved programme by 119 ACHIEVED N/A Zones (RZ) March 2012 municipalities

Exchange and dissemination of Implementation of information and the approved Logo MIS AS per 2010/11 APP 120 ACHIEVED N/A good practices to the South programme by participating Logo March 2012 South municipalities

Assessment of local government Assessment organisational report outlining capacity and the municipalities’ MIS extent to which the New Indicator capacity on 121 ACHIEVED N/A ﬁ scal framework environmental focus makes provision for areas by January the environmental 2012 function

SALGA Annual Report | 2011/12 231 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Support Clean and Green Programme Submit a motivation municipalities to Indalo Yethu and to review their DEA to support the institutional 10 municipalities to MIS New Indicator 122 NOT ACHIEVED Lack of capacity arrangements for undertake section waste management 78 reviews for waste services and share management by lessons with other December 2011 municipalities

Partner with DEA in developing a Concept and plan for concept and plan for a national awareness MIS New Indicator a national awareness 123 ACHIEVED N/A campaign on waste campaign on waste management management by March 2012

Revised guideline for Revised guideline for the appointment of the appointment of Waste Management MIS New Indicator 124 ACHIEVED N/A Waste Management Ofﬁ cers (WMO) Ofﬁ cers (WMOs) approved by March 2012.

Assessment of Initiate the implementation assessment of of waste buyback implementation of MIS centers and transfer New indicator 125 ACHIEVED N/A waste buy back stations and centres by March development of a 2012 best practice guide

Assist municipalities Advice to Report on number to apply for municipalities on of municipalities regularisation of MIS 126 ACHIEVED N/A regularisation of applied for landﬁ ll 25 irregular waste waste disposal sites permitting disposal sites by March 2012

Develop a National water services 25 Water Service benchmarking Authorities report on the basis Benchmarking participate in terms MIS 127 ACHIEVED N/A of performance indicators of the benchmarking improvement/ indicators by March modular and tier 2012. approach

232 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Facilitate support and advice through Train Water Services participation of Managers in the municipalities in the 25 WSAs towards Blue and green drop MIS SALGA concluded achieving the blue 128 ACHIEVED N/A reports from DWA partnerships towards and green drop achieving the blue certiﬁ cation by and green drop March 2012. certiﬁ cation.

Support two Water Support and advise Service Authorities to Delays were on the development develop and approve experienced in MIS of appropriate Tariff guideline water services 129 NOT ACHIEVED the appointment tariff determination pricing policy and of the service methodologies procedures by March provider 2012.

Develop discussion document on bulk Deﬁ ne appropriate potable water and institutional sanitation gaps MIS arrangements for New indicator 130 ACHIEVED N/A and roles and bulk water and responsibilities to sanitation delivery accelerate service delivery March 2012

To facilitate sharing of Document and share knowledge in respect two best practices on Documented good MIS of good practices the delivery of water 131 ACHIEVED N/A practices on water services and sanitation by management March 2012.

National Local SALGA Concept Government Facilitate Paper on the comments in the MIS consolidated development of 132 ACHIEVED N/A development of the municipal comments a national policy Sanitation Policy by framework March 2012.

MoU for Development of Draft State of Energy implementation Energy Baselines Reports for two pilot MIS of programme 133 NOT ACHIEVED Lack of capacity for two targeted municipalities by signed with KSD municipalities March 2012 municipality

SALGA Annual Report | 2011/12 233 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Participate in the National Planning Metropolitan Steering Committee municipalities to support eight assisted in metropolitan MIS planning and New Indicator municipalities 134 ACHIEVED N/A implementation of in planning and the urban settlement implementation of development grant the urban settlement development grant by March 2012.

Produced a report Provide advise to on the status of Municipalities on service delivery SALGA EC New Indicator 135 ACHIEVED N/A infrastructure and arrangements in EC service delivery municipalities by March 2012

Two (2) reports Support on Municipal municipalities with 2010/11 Infrastructure SALGA FS the implementation 136 ACHIEVED N/A Business Plan Policies developed of the Free Basic and submitted by Services Policy March 2012

Facilitate knowledge One workshop As per 2010/11 SALGA GP sharing platform on convened on MDGs 137 ACHIEVED N/A report attainment of MDGs by March 2012

Facilitate municipal One session on bulk comments and municipal services As per 2010/11 SALGA GP produce timely conducted with 138 ACHIEVED N/A report reports on bulk municipalities by Municipal services. March 2012

Monitor and promote Analysis on the the implementation implementation As per 2010/11 SALGA GP of Free Basic of FBS of two 139 ACHIEVED N/A report Services in the municipalities by 31 province. March 2012.

Facilitate the roll out of the Water Conduct a provincial for Growth and Water for Growth workshop on water SALGA LP Development and Development for growth and 140 ACHIEVED N/A Framework on LG Framework development by issues after Cabinet February 2012 approval

234 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Develop a proposal Facilitate consultation Proposal document on Municipal Trafﬁ c SALGA LP through SALGA on Municipal Trafﬁ c Revenue Collection 141 ACHIEVED N/A structures Revenue Collection in Limpopo Province by December 2011

Municipalities One municipality assisted towards developed Water One Municipality SALGA MP the development of Conservation 142 ACHIEVED N/A assisted in 2010/11 Water Conservation Strategies by March Strategies 2012

Although SALGA MP assisted 3 Three municipalities municipalities with council to apply for Municipalities resolution on the electricity distributing electricity application for the SALGA MP New Indicator 143 NOT ACHIEVED distribution in their municipal granting of electricity liscences, the area distribution licenses Councils have in their jurisdiction by not passed March 2012 resolutions by 31 March 2012

Support Operations Municipalities in Management and the delivery of basic As per 2010/11 Service Maintenance SALGA MP 144 NOT ACHIEVED Lack of capacity services (water and Baseline strategies / plans sanitation, electricity, framework developed waste management) by March 2012

Coordinate and Support facilitate ﬁ ve District Municipalities in workshops on basic the delivery of basic As per 2010/11 SALGA NC services (water and 145 ACHIEVED N/A services (water and Baseline sanitation, waste sanitation, waste management) by management) March 2012

Municipalities Conduct Blue assisted towards and Green drop the development of compliance One Municipality SALGA NW Water Conservation monitoring, 146 ACHIEVED N/A assisted in 2010/11 and Demand evaluation and Management interventions by Strategies March 2012

SALGA Annual Report | 2011/12 235 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

All North West municipalities signed accession Conduct Energy 23 municipalities agreements and effi ciency and supported towards workshopped on renewable energy SALGA NW energy effi ciency and 147 ACHIEVED N/A the deal issues. sources provincial renewable energy Energy effi ciency and workshop by March sources. renewable energy 2012. sources Capacitation conducted

Provide support Twenty four Municipalities to all four district municipalities supported on road municipalities supported on SALGA NW classiﬁ cation and in the rollout of 148 NOT ACHIEVED Lack of capacity road classiﬁ cation operation and integrated transport and operation and maintenance management plans maintenance by November 2011

Conduct a provincial Twenty four Municipalities workshop on Roads municipalities supported on road Maintenance for supported on SALGA NW classifi cation, Councillors and 149 ACHIEVED N/A road classifi cation operation and Offi cials responsible and operation and maintenance for Roads by March maintenance 2012

Accreditation Support the process for the three Three identifi ed three identifi ed initially identifi ed municipalities municipalities to municipalities in SALGA NW supported in the comply with the 150 ACHIEVED N/A progress and the housing accreditation housing accreditation rollout of rental process process by March housing stock in 2012 progress

All municipalities All municipalities Conduct one supported and supported and provincial workshop capacitated on capacitated on on Free Basic Free Basic Refuse Free Basic Refuse Refuse removal SALGA NW 151 ACHIEVED N/A removal, integrated removal, integrated and integrated waste management waste management waste management plans and NEMA plans and NEMA planning by March regulation regulation 2012

236 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Project Management Facilitate project support provided to management support facilitate ﬁ nalization on the Integrated of the Integrated Water Resources Water Resources Management SALGA WC New indicator Management 152 ACHIEVED N/A Project in the Project in the Breede Overberg Breede Overberg Management Management Catchment area by Catchment area by March 2012 March 2012.

Conduct two climate Awareness created change adaptation SALGA NC New Indicator 153 ACHIEVED N/A on Climate change awareness/workshop by March 2012

Municipalities that Support Clean and are participants Green Programme of the Indalo municipalities Yethu Clean and to review their Green programme SALGA EC New Indicator 154 NOT ACHIEVED Lack of capacity institutional supported to initiate arrangements for reviews of service waste management delivery institutional services arrangements by March 2012

Report on the Report on status of implementation of level 2 accreditation the accreditation SALGA EC 2010/11 APP 155 ACHIEVED N/A for metropolitan decision in the municipalities Metros by March 2012

Facilitated participation of municipalities in 50% of municipalities assessment of in the province organisational participated in the SALGA EC capacity and New Indicator assessment and 156 NOT ACHIEVED Lack of capacity required technical report reviewed and skills in respect presented at WG by of performance March 2012 on environmental functions

Provincial Transport ITP workshop SALGA EC planning workshops New Indicator conducted by March 157 ACHIEVED N/A for ofﬁ cials 2012

SALGA Annual Report | 2011/12 237 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Updated report of municipalities which have not Advice to applied for the municipalities on SALGA EC New Indicator regularisation of their 158 ACHIEVED N/A regularisation of wasteﬁ ll sites sent to wasteﬁ ll sites mayors of affected municipalities by March 2012

Supported KSD Draft State of energy municipality to SALGA EC New Indicator reports for KSD by 159 NOT ACHIEVED Lack of capacity develop an energy March 2012 use baseline report

All municipalities Held a workshop of understanding the MMC on the qualities SALGA EC New Indicator 160 ACHIEVED N/A role and selection and role of WMO by criteria of a WMO March 2012

Develop Municipality climate change supported to develop SALGA NC New Indicator response plan for 161 ACHIEVED N/A climate change municipalities by response. March 2012

Municipalities assisted towards the development of Provincial roll out on One Municipality SALGA NW Water Conservation Sanitation Strategy by 162 ACHIEVED N/A assisted in 2010/11 and Demand June 2011 Management Strategies

One subsector (water services) induction Capacity building/ workshop convened SALGA WC New Indicator 163 ACHIEVED N/A networking events and conducted for councillors by March 2012

One provincial workshop conducted Capacity building/ for Municipalities SALGA WC New Indicator 164 ACHIEVED N/A networking events on National Land Transport Act by March 2012

238 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O2: SERVICE DELIVERY - IMPROVED ACCESS TO MUNICIPAL SERVICES, AND ENHANCED PROVISION OF FREE BASIC SERVICES, THROUGH EFFECTIVE OPERATIONS MANAGEMENT, AND SERVICE MAINTENANCE.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

One provincial workshop conducted Capacity building/ SALGA WC New Indicator for Municipalities on 165 ACHIEVED N/A networking events Waste Management by March 2012

Workshop hosted for Capacity building/ Municipalities on the SALGA WC New Indicator 166 ACHIEVED N/A networking events accreditation process by March 2012

One Municipality supported on Capacity building/ SALGA WC New Indicator developing a water 167 ACHIEVED N/A networking events safety plan by March 2012

Two Municipalities supported towards Capacity building/ SALGA WC New Indicator the development of 168 ACHIEVED N/A networking events Energy Efﬁ ciency Plans by March 2012

In collaboration with stakeholders Capacity building/ convene ﬁ ve District SALGA WC New Indicator 169 ACHIEVED N/A networking events level mini-summits on Climate Change by December 2011

SALGA Annual Report | 2011/12 239 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Local government Improved capacity Funding Model for of municipalities National Reference sport and recreation CD to maintain sport Group established in 170 ACHIEVED N/A infrastructure review and recreation November 2010 processes facilitated infrastructure by March 2012

Arts, Culture, Improved capacity Local government Heritage and of municipalities role in library services Libraries for Local to develop and reviewed and funding CD Government 171 ACHIEVED N/A implement model processes Reference Group social cohesion facilitated by March established in programmes 2012 November 2010

Arts, Culture, One (1) learning Improved capacity Heritage and event on municipal of municipalities Libraries for Local best practices in to develop and CD Government mainstreaming arts, 172 ACHIEVED N/A implement Reference Group culture and library social cohesion established in services held by programmes November 2010 March 2012

Arts, Culture, Improved capacity Heritage and of municipalities One (1) seminar Libraries for Local to develop and on cemeteries and CD Government 173 ACHIEVED N/A implement culture held by Reference Group social cohesion March 2012 established in programmes November 2010

Assessment of the Disaster risk Improved capacity status of disaster management training of municipalities to CD risk management for 100 councillors/ 174 ACHIEVED N/A reduce and respond in local government ofﬁ cials facilitated by to disasters conducted in 2010 March 2012

Local Government Improved capacity Assessment of the Guidelines on the of municipalities status of disaster Establishment of CD to develop and risk management 175 ACHIEVED N/A Community Safety implement public in local government Forums developed by safety programmes conducted in 2011 March 2012

One (1) Learning Human Development Municipalities event on best Framework capacitated practices in human developed; to implement development CD Guidelines for 176 ACHIEVED N/A and monitor conducted for the Devolution of the Millennium metropolitan Environmental Health Development Goals municipalities by Services developed October 2011

240 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Human Development Municipalities Framework Nine (9) Provincial capacitated developed; Workshops on the to implement Lack of capacity CD Guidelines for Human Development 177 NOT ACHIEVED and monitor the Devolution of Framework held by the Millennium Environmental Health March 2012 Development Goals Services developed

Three (3) Roundtable discussions with civil Human Development Municipalities society and relevant Framework capacitated academic institutions developed; to implement on learning and best CD Guidelines for 178 ACHIEVED N/A and monitor practice sharing the Devolution of the Millennium on topical human Environmental Health Development Goals and community Services developed development issues held by March 2012

SALGA Women’s Commission The implementation launched in Resuscitation of the of the SALGA Gender November 2010; SALGA Women’s CD 179 ACHIEVED N/A Mainstreaming Gender Links Commission by Programme and GEMLOG December 2011 Programmes facilitated

SALGA Women’s Commission Workplan to guide The implementation launched in the functioning of of the SALGA Gender November 2010; the SALGA Women’s CD 180 ACHIEVED N/A Mainstreaming Gender Links Commission Programme and GEMLOG developed by Programmes January 2012 facilitated

SALGA Women’s Commission One (1) induction The implementation launched in and capacity of the SALGA Gender November 2010; CD building programme 181 ACHIEVED N/A Mainstreaming Gender Links coordinated for the Programme and GEMLOG NWG by March 2012 Programmes facilitated

SALGA Annual Report | 2011/12 241 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

SALGA Women’s Commission Post-election The implementation launched in audit on gender of the SALGA Gender November 2010; CD representation 182 ACHIEVED N/A Mainstreaming Gender Links conducted by Programme and GEMLOG February 2012 Programmes facilitated

7.1. Capacity Improved local Guideline for the building training government access establishment on HIV & AIDS to information a CD and functioning conducted in 183 ACHIEVED N/A and knowledge of municipal AIDS municipalities in two on HIV and AIDS Councils provinces by March Mainstreaming 2012

Improved local Framework for Guideline for the government access the compilation establishment to information a of Municipal HIV CD and functioning 184 ACHIEVED N/A and knowledge and AIDS Service of municipal AIDS on HIV and AIDS Directory developed Councils Mainstreaming by March 2012

Implementation Post-election of the Disability M and E Plan for audit of disability Framework for CD Disability developed representation 185 ACHIEVED N/A Local Government and implemented conducted by March facilitated and 2012 monitored

District Aids Councils established in two Establish District Districts in the SALGA EC Aids Councils in two New Indicator current ﬁ nancial year 186 ACHIEVED N/A Districts in conjunction with other stakeholders by March 2012

Assessment Conduct a status quo report on disaster analysis of disaster management in six SALGA EC New indicator 187 ACHIEVED N/A management in the districts and the province Metro by March 2012

242 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Conduct mainstreaming Support Gender workshops for municipalities in mainstreaming SALGA EC gender, PwD and 188 ACHIEVED N/A mainstreaming workshop in BCM in youth in three gender, PwD, youth 2010/11 districts by March 2012.

Conduct localising Conduct localising of of MDGs workshops MDGs workshops in Held one workshop SALGA EC in ﬁ ve districts and 189 ACHIEVED N/A ﬁ ve districts and one in BCM in 2010/11 one metro by March metro 2012

Facilitate a provincial Facilitate provincial reference group for reference group SALGA EC New indicator 190 ACHIEVED N/A arts, culture and meetings by March heritage 2012

Hold Provincial Provincial SALGA Held Provincial SALGA Municipal games for all SALGA EC SALGA games in 191 ACHIEVED N/A games by September municipalities by 2010/11 2011 March 2012

Had one provincial SALGA EC Women’s SALGA EC Women’s SALGA EC summit in August summit in March 192 ACHIEVED N/A summit will be held 2010/11 2012

Two (2) provincial Support and assist workshops on municipalities to human development SALGA FS New indicator 193 ACHIEVED N/A comply with human coordinated and development issues. convened by March 2012.

Two (2) provincial Support and assist workshops on municipalities to Four provincial transversal issues SALGA FS 194 ACHIEVED N/A comply with social workshops coordinated and development issues convened by March 2012.

Lobby support and Conduct two advice municipalities As per 2010/11 workshops on Social SALGA GP 195 ACHIEVED N/A on identiﬁ ed Social report Cohesion by March cohesion issues 2012.

SALGA Annual Report | 2011/12 243 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Coordinate two Coordination of As per 2010/11 women’s commission SALGA GP provincial women’s 196 ACHIEVED N/A report sessions by March commissions 2012.

Advice given to Conduct one municipalities on workshop on HIV/ SALGA GP New indicator 197 ACHIEVED N/A mainstreaming cross- Aids handbook by cutting issues March 2012.

One workshop Advice given to As per 2010/11 coordinated on SALGA GP municipalities on 198 ACHIEVED N/A report disability initiatives by disability initiatives March 2012.

Coordination of 2010 Inter-municipal Inter-municipal SALGA GP OR Tambo Inter- games held in West games held by 199 ACHIEVED N/A municipal games rand District March 2012

Coordination of Men’s indaba held in Men’s Indaba held by SALGA GP provincial Men’s 200 ACHIEVED N/A November 2010 March 2012. indaba

Support municipalities on HIV and Aids One learning event Roll out on HIV and mainstreaming and on HIV and AIDS SALGA LP Aids Book workshop 201 ACHIEVED N/A Improving knowledge convened by 15 Dec held management through 2011 the hosting of 1 HIV/ AIDS learning event,

Support municipalities on HIV and Aids Support three mainstreaming and Roll out on HIV and municipalities to SALGA LP Improving knowledge Aids Book workshop 202 ACHIEVED N/A revive AIDS/ council management through held by March 2012. the hosting of one HIV/AIDS learning event

Host one Provincial WiLGS to be Women’s Months SALGA LP convened in the 2010 WiLGs Report 203 ACHIEVED N/A Celebrations by province September 2011

Sharing/learning One event for youth Youth elections event on youth rights and one for children SALGA LP report, 2010 204 ACHIEVED N/A per province by convened by March Children’s camp October 2011 2012

244 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

1x Guidelines on Municipalities Mainstreaming of coordinating and Gender Policy Transversal issues SALGA MP mainstreaming Framework, Disability developed and 205 ACHIEVED N/A community Framework, distributed to all 21 development issues Municipalities by March 2012.

Municipalities with a structured Database of all and coordinated NGOs dealing relationship with all with Community SALGA MP New Indicator 206 ACHIEVED N/A Non- Governmental Development issues Organisations dealing developed by with Community September 2011 Development issues.

One district and three local municipalities Municipalities with assisted on the As per the 2010/11 SALGA MP policies on youth, development of 207 ACHIEVED N/A ﬁ nal performance gender and disability. Policies for the youth, gender, and disability by March 2012.

One workshop for newly elected Capacitated newly community elected community SALGA NC New Target development working 208 ACHIEVED N/A development working group members group members convened by December 2011.

Convene the Women in Local Government Report on the 2010 Convene the WILGS SALGA NC 209 ACHIEVED N/A Summit (WILGS) WIPLGS by December 2011 2011

One provincial Convene a workshop workshop held on on the developed SALGA NC New Target the SALGA youth 210 ACHIEVED N/A Youth Development development strategy Strategy by December 2011

One workshop Roll out the Local Audit Report on held to capacitate SALGA NC Government disability status quo municipalities on 211 ACHIEVED N/A Disability Framework in municipalities Disability Framework by February 2012

SALGA Annual Report | 2011/12 245 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

One municipal sports To promote social Annual Local event targeting ﬁ ve SALGA NC cohesion between 212 ACHIEVED N/A Government Games district municipalities districts by December 2011

SALGA Human Development Strategy Guide municipalities disseminated to SALGA NW in addressing Human New Indicator 213 ACHIEVED N/A all municipalities Development issues for inputs and consolidated by March 2012

Convene one provincial meeting Municipalities between District guided on issues of Initial assessment on Municipalities and SALGA NW provincialisation of PHC conducted in 214 ACHIEVED N/A Dept. of Health to Primary Health Care 2009 facilitate the signing Services of the SLA by January 2012)

Conduct Assessment of provision of Fire Municipalities guided and Emergency SALGA NW to improve delivering New Indicator 215 ACHIEVED N/A Services in 12 on Fire Services. Municipalities by September 2011

Conduct two Provincial workshops on transversal Capacitate 11 municipalities issues to capacitate municipalities on SALGA NW with adopted Gender Councillors and 216 ACHIEVED N/A mainstreaming of Policy Framework Municipal Ofﬁ cials transversal issues responsible for transversal issues by December 2011

Platform created for women in Local Government to Host one Provincial share experience, Provincial Women in Women In Local SALGA NW challenges, Local Government Government Summit 217 ACHIEVED N/A good practice Summit held in 2010 by September / and encourage October 2011. establishment of women structures

246 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Convene one consultative Mayors capacitated workshop to guide SALGA NW to take a lead on HIV New Indicator and support mayors 218 ACHIEVED N/A and AIDS issues. to participate in HIV & AIDS issues by December 2011

Municipalities assessed on Implementation Conduct Assessment compliance with Guideline for of disability access in SALGA NW regard to user- Disability Framework 219 ACHIEVED N/A 23 Municipal Ofﬁ ces friendly municipal for Local Government by December 2011. ofﬁ ce buildings for 2009-2014 people with disability.

Conduct an audit in Equity for people with all Municipalities on disabilities receiving representation of SALGA NW New Indicator 220 ACHIEVED N/A priority at municipal women and people level. with disabilities by December 2011

Conduct a workshop Support on integrated As per the for one municipality SALGA WC approach on gender 2010/2011 ﬁ nal 221 ACHIEVED N/A on Gender awareness awareness. performance by December 2011.

Conduct a Support on integrated As per the workshop for one SALGA WC approach on youth 2010/2011 ﬁ nal municipality on youth 222 ACHIEVED N/A development performance development by February 2012.

Conduct a workshop Support on integrated As per the for one municipality SALGA WC approach on HIV/ 2010/2011 ﬁ nal 223 ACHIEVED N/A on HIV/AIDS by AIDS performance September 2011

Conduct a workshop Support on integrated As per the for one municipality SALGA WC approach on disaster 2010/2011 ﬁ nal on disaster 224 ACHIEVED N/A management performance management by November 2011

SALGA Annual Report | 2011/12 247 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O3: SOCIAL COHESION - TRANSVERSAL (GENDER, YOUTH, CHILDREN, HIV/AIDS) SOCIAL-ECONOMIC ISSUES MAINSTREAMED.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

One Municipal Consultative Improved local workshop on government access SALGA Youth youth Economic CD to information and Development 225 ACHIEVED N/A Development and knowledge on Youth Strategy developed Entrepreneurship Development held by December 2011

One Roundtable SALGA Approach Consultative meeting to Children’s issues on Municipal and Early Childhood responses to CD New Indicator 226 ACHIEVED N/A Development (ECD) mainstreaming in Local Government children issues developed coordinated by March 2012

Establish Disability Establish Disability Reference Group for Reference Group for SALGA EC New Indicator 227 ACHIEVED N/A Province by March Province by March 2012 2012

Five (5) provincial/ Support and district workshops assistance provided on Millennium to municipalities in Two provincial SALGA FS Development Goals 228 ACHIEVED N/A the implementation workshops (MDGs) coordinated of MDGs within the and convened by province March 2012.

Municipalities Provincial coordinating and Gender Policy Coordinating Forum SALGA MP mainstreaming Framework, Disability 229 ACHIEVED N/A established by March community Framework, 2012 development issues

248 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Promote and improve the effectiveness Position paper of planning and Report on the on role of local implementation ﬁ ndings of the Rapid government in rural ED&P 230 ACHIEVED N/A of Comprehensive survey on CRDP pilot development and Rural Development projects agricultural support Programme (CRDP) by March 2012. projects

The SALGA Inputs provided on comments on LUMS the development Bill developed ED&P of Land Use New Indicator and submitted to 231 ACHIEVED N/A Management (LUMS) DRD&LR as per the Bill. Gazette Notice by March 2012.

Promote and Facilitate support for improve effective Draft guidelines on 16 Municipalities on ED&P 232 ACHIEVED N/A SDF formulation and SDF formulation the development of implementation SDFs by March 2012

Support Municipalities Assess the alignment in aligning IDPs SALGA’s position of IDPs in six ED&P with:- Budget, other paper on the IDP 233 ACHIEVED N/A Municipalities by internal municipal process March 2012 departments and sector departments

The SALGA input into Input on the National the National Planning Development Commission’s ED&P New indicator 234 ACHIEVED N/A Planning Initiatives Initiatives on Local on Local Government Government by March 2012

National policy guidelines and Aligned Generic related by-laws on Policy, Model By- informal trading SALGA national laws and supporting management ED&P informal trading 235 ACHIEVED N/A implementation with supporting summit guidelines on implementation Informal Trading. guidelines disseminated by end of March 2012.

SALGA Annual Report | 2011/12 249 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Support the networking of Increase of 10% municipal LED in SA LED Network practitioners, membership and facilitate the sharing hosting of networking ED&P good LED practice, LED Network portal and information 236 ACHIEVED N/A and identify and sharing initiatives document successful (annual roundtables, LED programmes two newsletters) by implemented in March 2012 Municipalities.

Support the networking of municipal LED practitioners, Showcasing all best facilitate the sharing practices through six ED&P good LED practice, LED Network portal LED case studies, 237 ACHIEVED N/A and identify and documented by end document successful of March 2012. LED programmes implemented in Municipalities.

Host GPS Implement Dissemination Commonwealth Local Five (5) LED workshop with ED&P Government Forum 238 ACHIEVED N/A Partnerships LED and project (CLGF) partnership stakeholders by programme March 2012

Implement Produce close-out Commonwealth Local report (including four Five (5) LED ED&P Government Forum project Good Practice 239 ACHIEVED N/A Partnerships (CLGF) partnership Project Case Studies) programme by March 2012.

Implement Phase 2 of the LED Maturity Assessment Training Provide support and including SALGA guidance to improve ED&P LEDA Guidelines assessments of two 240 ACHIEVED N/A municipal LED Municipalities in Practice. participating SALGA provinces by March 2012.

250 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Policy developed for municipalities to align SCM Strategies Provide support and with the SMME guidance to improve ED&P LED Assessment tool LED Strategies 241 ACHIEVED N/A municipal LED through strategic Practice. procurement approaches by March 2012

Host at least two Municipalities LED Roundtables supported to drive with an intention economic growth of coordinating SALGA EC through programmes 2010/11 baseline 242 ACHIEVED N/A LED initiatives and that will create information sharing employment within the Province opportunities. by March 2012

Support seven municipalities Municipalities in aligning their supported to drive LED strategies economic growth with key strategic SALGA EC through programmes 2010/11 baseline plans ( Industrial 243 ACHIEVED N/A that will create Development employment Strategy, PGDP, opportunities. Rural Development Strategy) by March 2012

Municipalities Facilitate the supported to drive development of economic growth SDF’s aligned to the SALGA EC through programmes 2010/11 baseline 244 ACHIEVED N/A Provincial SDF in that will create ﬁ ve Municipalities by employment March 2012 opportunities.

Support Workshop on ICT for Municipalities in SALGA EC 2010/11 baseline Municipalities by 245 ACHIEVED N/A implementation of March 2012 ICT

Municipalities Seminar for supported to drive municipalities economic growth on Land Use SALGA EC through programmes New Indicator 246 ACHIEVED N/A Management and that will create Spatial Planning by employment March 2012 opportunities.

SALGA Annual Report | 2011/12 251 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Municipalities supported to drive Host an informal economic growth trade sector SALGA EC through programmes New Indicator workshop for 247 ACHIEVED N/A that will create municipalities by employment March 2012 opportunities.

Four quarterly reports Advise municipalities on participation of to participate and 2010/11 Business SALGA FS municipalities on 248 ACHIEVED N/A report on EPWP Plan the EPWP by March projects 2012

Encourage Municipalities municipalities to advised to identify SALGA FS enhance tourism New Indicator and market their 249 ACHIEVED N/A marketing in their tourist attractions by localities March 2012

Monitor and promote Improved As per 2010/11 the functionality of SALGA GP functionality of LED 250 ACHIEVED N/A report two LED forums by forums. March 2012.

Two Municipalities Assessment of IDP SALGA GP New Indicator IDPs assessed by 251 ACHIEVED N/A review process March 2012

Establishment of Spatial Planning SALGA GP Spatial Planning New Indicator forum established by 252 ACHIEVED N/A forum March 2012

To document Develop a minimum outputs and activities Vhembe and Mopani of three case studies including current Participating in Good of municipal good SALGA LP 253 ACHIEVED N/A Donor activities in the Practice Scheme LED practice to be Province, e.g. CLGF Project shared provincially and Best Practice by December 2011

Facilitate ICT engagements with Promote usage of ﬁ ve municipalities. ICT in municipalities Provincial Workshop Blouberg, Tubatse, SALGA LP through hosting 254 ACHIEVED N/A convened Mogalakwena, District awareness Tzaneen, and programmes Makhado by March 2012

252 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

One municipality supported in reviewing Municipalities LED strategies SALGA MP driving growth and New Indicator 255 ACHIEVED N/A reﬂ ective of Sector employment. implementation and M&E Plans by March 2012.

Three municipalities supported in developing Municipalities LED strategies SALGA MP driving growth and New Indicator 256 ACHIEVED N/A reﬂ ective of Sector employment. implementation and M&E Plans by March 2012.

21 municipalities Municipalities with supported to develop SALGA MP 2010/11 Baseline 257 ACHIEVED N/A ICT Strategies. ICT policy by March 2012.

Municipalities Seven identiﬁ ed playing their role municipalities in implementing supported in SALGA MP New Indicator 258 ACHIEVED N/A the Comprehensive implementation of Rural Development the CRDP by March Programme 2012

One provincial Develop provincial IDP process plan IDP process plan Provincial IDP development to assist SALGA NC to monitor the Analysis and 259 ACHIEVED N/A the monitoring and implementation of engagement implementation of the IDPs IDP by March 2012

Land Use Management and Support Town Planning municipalities Needs Analysis intervention SALGA NC with land-use 260 ACHIEVED N/A Report implemented management and to support town planning municipalities by March 2012

Municipal Conduct EPWP compliance and SALGA NW New Indicator working session by 261 ACHIEVED N/A adherence with March 2012 EPWP reporting

SALGA Annual Report | 2011/12 253 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Functional municipal Rolling-out phase LED units with the II of LED Maturity SALGA NW New Indicator 262 ACHIEVED N/A potential to grow Assessment Tool by local economies March 2012

Municipalities supported towards Conduct a provincial 2010/11 SDF/LUS the development Spatial Planning SALGA NW desktop assessment 263 ACHIEVED N/A of proper land summit by March study use management 2012 strategies

Municipalities supported towards Capacity building for 2010/11 SDF/LUS the development councillors on Spatial SALGA NW desktop assessment 264 ACHIEVED N/A of proper land Planning by March study use management 2012 strategies

Municipalities Workshop assisted in the municipalities on the SALGA NW development of New Indicator broad band policy on 265 ACHIEVED N/A broad band policy on communication by communication March 2012.

Municipalities Lobby the supported in their department of rural role towards the development to roll- SALGA NW implementation of New Indicator 266 ACHIEVED N/A out the programme the Comprehensive (CRDP) by March Rural Development 2012 Programme (CRDP)

Coordinate three learning events on LED, Planning, and SALGA WC New Indicator 267 ACHIEVED N/A LED and Planning related events by March 2012.

Currently Represent SALGA on representing the IGR Forum speciﬁ c Representing SALGA interests of WC to LED and Economic on IGR Forum municipalities in Planning issues and SALGA WC Technical Task Team three provincial 268 ACHIEVED N/A develop position on LED Planning policy processes - all papers where related issues these processes will necessary by March continue into the 2012. next ﬁ nancial year

254 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O4: ECONOMIC ISSUES - MUNICIPALITIES DRIVE GROWTH AND EMPLOYMENT CREATION, BOTH IN URBAN AND RURAL AREAS

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Develop provincial Enhanced ability of inputs into the WC municipalities national position SALGA WC New Indicator 269 ACHIEVED N/A to engage with rural paper on rural development issues development by March 2012

P3, LED and MF Four municipalities Workshop with tools institutionalised currently municipalities on SALGA WC 270 ACHIEVED N/A in SALGA WC implementing P3 promoting P3 LED programme activities tools tools by March 2012.

Raised awareness Outcome report on amongst three case studies SALGA WC New indicator 271 ACHIEVED N/A municipalities of LED written up by March best practice 2012.

Facilitate the Support development of Municipalities in SALGA EC 2010/11 baseline website for four 272 ACHIEVED N/A implementation of municipalities by ICT March 2012

Implementation of Report on 10 support projects to Municipalities municipalities on 10 municipalities in ED&P supported across 273 ACHIEVED N/A various approaches three provinces three provinces by to LED in P3 31 March 2012 partnership

Encourage A provincial tourism Poor municipal municipalities to database developed response to SALGA FS enhance tourism New Indicator and circulated to 274 NOT ACHIEVED popoulate marketing in their municipalities by tourism localities March 2012 database.

Assist municipalities One (1) provincial to have increased Generic Policy Informal Trade SALGA FS awareness around Document on 275 ACHIEVED N/A Summit hosted by informal trading Informal trade March 2012 practices

SALGA Annual Report | 2011/12 255 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O5: LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Approved HR conference resolutions Report on the current state of LG HR practices Develop and and impact it has Developed HRM MID disseminate a LG on developmental strategy by March 276 NOT ACHIEVED Lack of capacity HRM Strategy LG system; PSC 2012 assessment of the state of HRM in the Public Service; The report on the Skill Audit.

Approved HR conference resolutions. Report on the current state of LG HR practices HRM Strategy Develop and and impact it has disseminated to all MID disseminate a LG on developmental SALGA Provincial 277 NOT ACHIEVED Lack of capacity HRM Strategy LG system; PSC Ofﬁ ces by March assessment of the 2012 state of HRM in the Public Service; The report on the Skill Audit.

Develop and Developed Employee HIV and Aids MID disseminate a Wellness Framework 278 ACHIEVED N/A handbook. Wellness Framework by 30 June 2011

Employee Wellness Framework Develop and HIV and Aids disseminated to all MID disseminate a 279 ACHIEVED N/A handbook. SALGA Provincial Wellness Framework Ofﬁ ces by 28 February 2012

Developed policies on retention, Develop prioritised coaching and policies and monitor Handbook and a mentoring, human MID 280 NOT ACHIEVED Lack of capacity the implementation circular. capital management of existing policies. and performance management by July 2011

256 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O5: LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Report on the Develop prioritised implementation policies and monitor Handbook and a of the 18 policies MID 281 NOT ACHIEVED Lack of capacity the implementation circular. contained in the of existing policies. HRM Handbook by March 2012

Developed a Develop a monitoring monitoring and MID and evaluation New Indicator evaluation system 282 ACHIEVED N/A system framework by 31 March 2012

Report/s the Represent representation municipalities of SALGA to in conciliations, municipalities arbitrations and MID New Indicator on conciliations, 283 ACHIEVED N/A litigation matters on arbitrations and matters of national litigation matters interest (needs submitted to the NEC driven). by 31 March 2012

Co-ordinate the Roll-out a Mutual Dispute Resolution training of all MID Gains Collective 284 ACHIEVED N/A Forum members of the LLF Bargaining approach by March 2012

Developed a Research proposal SALGA Proposal MID on restructuring of New Indicators on restructuring 285 ACHIEVED N/A the SALGBC the SALGBC by 01 December 2011

Developed SALGA SALGA position/ position/comments comments on the Draft report of Norms on the proposed proposed HR Norms and Standards; HR Norms and and standards; current legislation standards; proposed MID proposed systems; 286 NOT ACHIEVED Lack of capacity and the SALGA systems; legislation; legislation; and HR Conference and policies for policies for LG Resolutions LG Administration Administration Integration by 30 Integration November 2011

SALGA Annual Report | 2011/12 257 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O5: LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

SALGA position/ comments on the Draft report of Norms proposed HR Norms and Standards; SALGA position and and standards; current legislation comments submitted MID proposed systems; 287 NOT ACHIEVED Lack of capacity and the SALGA to all relevant bodies legislation; and HR Conference by 31 March 2012 policies for LG Resolutions Administration Integration

Sustain good working Conclude relationship with agreements with organized labour unions on Transfer SALGA EC thus enhancing New Baseline of Primary Health , 288 ACHIEVED N/A opportunities Environmental Health for mutual-gains Staff and HIV/AIDS approach. by March 2012

Compliance and Annual report on implementation compliance and SALGA FS of Collective New Indicator implementation of 289 ACHIEVED N/A Agreements and collective agreements legislation. by March 2012

Advice given to All municipalities municipalities on As per 2010/11 Lack of capacity SALGA GP monitored by March 290 NOT ACHIEVED labour-related report 2012 matters

Represent Represent municipalities municipalities in the in conciliations, dispute resolution Dispute Resolution SALGA LP arbitrations and 291 ACHIEVED N/A forums of the Forum disciplinary cases as SALGBC and other and when requested SALGBC structures. by March 2012.

Implement the Strike Management Strike Management revised Strike SALGA LP Plan implemented 292 ACHIEVED N/A Plan Management Plan by and monitored February 2012

21 municipalities Municipalities supported in the implementing the implementation One workshop SALGA MP collective agreement of the collective 293 ACHIEVED N/A conducted on the disciplinary agreement on the code disciplinary code by March 2012

258 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O5: LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

All 21 municipalities Strengthened As per the represented in SALGA MP Employer employee 2010/2011 ﬁ nal 294 ACHIEVED N/A SALGBC negotiations relations performance by March 2012

Training held Presiding Ofﬁ cers to capacitate and Prosecutors Presiding Ofﬁ cers SALGA NC capacitated on New Indicator and Prosecutors 295 ACHIEVED N/A Labour Related on Labour Related issues issues by March 2012

Strengthened 25 municipalities Employer employee with fully functional SALGA NC Local Labour Forums 296 ACHIEVED N/A relations through Local Labour Forum Local Labour Forum by March 2012

Municipalities Municipalities represented in represented in As per the conciliations, SALGA NC dispute resolution 2010/2011 ﬁ nal arbitrations and 297 ACHIEVED N/A and discipline performance disciplinary hearing management on request by March 2012.

Strengthen Employer 10 municipalities employee relations monitored on the 2010/11 LLF training SALGA NW by monitoring the functionality of Local 298 ACHIEVED N/A outcomes functionality of Local Labour Forums by Labour Forum. March 2012

Municipalities represented on Represent & advise As per 2010/11 HR & LR issues as SALGA NW municipalities on HR 299 ACHIEVED N/A Business plan per request on an & LR issues. ongoing basis by March 2012.

Represent Municipalities at Report quarterly labour related As per the on municipalities forums, i.e. SALGBC, SALGA WC 2010/2011 ﬁ nal represented on 300 ACHIEVED N/A LGSETA and other performance labour related forums relevant HR, IR and by March 2012. Capacity Building Structures.

SALGA Annual Report | 2011/12 259 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O5: LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Quarterly Impact Report on Represent and Municipalities assist Municipalities represented and in SALGBC As per the assisted in SALGBC dispute resolution SALGA WC 2010/2011 ﬁ nal dispute resolution 301 ACHIEVED N/A processes and performance processes and internal municipal internal municipal disciplinary and disciplinary and capacity processes. capacity processes by March 2012.

Provide hands on support to municipalities on HR, Reports on support LR and Collective provided to Bargaining Issues, municipalities on SALGA WC i.e. Local Labour New Indicator HR, LR, dispute 302 ACHIEVED N/A Forums, Essential cases and Collective Services Agreements, Bargaining Issues by Collective March 2012. Agreements and any other related matters.

Convene four Convene the As per the Human Resources SALGA WC Human Resources 2010/2011 ﬁ nal Practitioners Forum 303 ACHIEVED N/A Practitioners Forum performance Meetings by March 2012.

Advice given to All municipalities municipalities on As per 2010/11 advice given where SALGA GP 304 ACHIEVED N/A labour-related report required by March matters 2012

Six municipalities Strengthened As per the supported to have SALGA MP Employer employee 2010/2011 ﬁ nal fully-functional Local 305 ACHIEVED N/A relations performance Labour Forum by March 2012

All 21 municipalities supported in Strengthened As per the engaging in Labour SALGA MP Employer employee 2010/2011 ﬁ nal on Minimum 306 ACHIEVED N/A relations performance Essential Services level Agreement by March 2012

260 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O5: LABOUR RELATIONS - A PRODUCTIVE, STABLE LABOUR ENVIRONMENT, SUPPORTED BY A ‘MUTUAL GAINS APPROACH.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Six municipalities Strengthened As per the supported in labour SALGA MP Employer employee 2010/2011 ﬁ nal 307 ACHIEVED N/A dispute matters by relations performance March 2012

Municipalities 12 capacitated with skilled and Presiding Ofﬁ cers, SALGA MP New Indicator 430 ACHIEVED N/A capacitated Presiding four per District by Ofﬁ cers July 2011

SALGA Annual Report | 2011/12 261 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O6: SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM – IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Develop two (2) Preparing a research position papers on report on the over- MSA addressed speciﬁ c aspects IGR 308 ACHIEVED N/A and under regulation issues raised at NMA of over and under of local government. regulation by 31 March 2012

Analysis of the Analysis of State of local National Treasury Municipal Financial government ﬁ nance Review of LG Budget ED&P 309 ACHIEVED N/A Statements (database report for 2009/10 and Expenditure for - sample) ﬁ nancial year 2006/07-2012/13 by March 2012

Councillors Training Conduct training on Municipal to newly elected Finances and Councillors ED&P New indicator 310 ACHIEVED N/A LED after Local responsible for Government Municipal Finance by Elections March 2012.

Councillors Training Oversee LED on Municipal Training module for Finances and LED training manual SALGA National and ED&P 311 ACHIEVED N/A LED after Local developed Provincial Working Government Group Chairs on LED Elections by March 2012

Coordination of the Coordination of the 2011/12 Budget 2011/12 Budget 2010/11 Week and a ED&P Week and a Consolidated Budget 312 ACHIEVED N/A consolidated report consolidated report Week Report of budget week by of budget March 2012

Analysis of a sample Assessment report Indigent policy of six indigent ED&P on municipal indigent 313 ACHIEVED N/A analysis policies by March policies 2012

Reports, position papers and The SALGA presentations 2010 SALGA Budget submission to the ED&P to the Budget 314 ACHIEVED N/A Forum Submission 2011 Budget Forum Forum (including by October 2011 participation in the NCOP)

262 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O6: SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM – IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Facilitate the Scoping report on Local Business Tax application process Local Business Tax application submitted ED&P on Local Business tabled to Budget 315 NOT ACHIEVED Lack of capacity to National Treasury Tax for submission to Forum in October by March 2012 National Treasury 2010.

SALGA comments on the Municipal Property Rates Participation in the SALGA position Amendment Bill Municipal Property paper and by March 2012. ED&P 316 ACHIEVED N/A Rates Act (MPRA) comments on MPRA (Gazette No. 34357 Amendment process Amendments developed and submitted to COGTA as per the Gazette Notice No. 34357.

Support six Municipalities municipalities in the supported towards development and the development and implementation of SALGA EC implementation of 2010/11 baseline 317 NOT ACHIEVED Lack of capacity improved Revenue improved Revenue Enhancement Enhancement Strategies by March Strategies 2012

Finalise the Revenue Revenue Enhancement SALGA FS Enhancement New indicator 318 NOT ACHIEVED Strategy by March Strategy developed 2012

Support rendered to municipalities 2010 Budget week Budget week held by SALGA GP in strengthening 319 ACHIEVED N/A outcomes March 2012. sound ﬁ nancial management

Monitor and assess implementation Four municipalities of revenue As per 2010/11 monitored and SALGA GP 320 ACHIEVED N/A enhancement status report assessed by March strategies in 2012. municipalities.

One symposium Advice provided convened on The symposium to municipalities borrowings for all was postponed SALGA GP New Indicator 321 NOT ACHIEVED on ﬁ nancing municipalities in the until further alternatives. province by March notice 2012.

SALGA Annual Report | 2011/12 263 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O6: SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM – IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Develop a Provincial paper on attainment of 2014 clean audit and present Assessment to PEC Lekgotla, SALGA LP 2014 clean audit for 2010/2011 322 NOT ACHIEVED Municipal Managers conducted. Forum and Premier Intergovernmental Forum by March 2012

Coordination of the Coordination of the Budget week to Budget Week 2011/12 budget SALGA LP 323 ACHIEVED N/A improve Municipal 2010/11 week by February Finance 2012

Four municipalities with disclaimer 2009/2010 audit Improved audit outcomes supported SALGA MP outcomes for 2010/11 Baseline 324 ACHIEVED N/A to address issues municipalities. raised in their Management letters by March 2012

Municipalities with Seven ﬁ nancial improved ﬁ nancial management SALGA MP management 2010/11 Baseline 325 NOT ACHIEVED Lack of capacity Systems analysed by systems and March 2012 processes

21 municipalities Municipalities supported in the developing and development implementing SALGA MP 2010/11 Baseline of revenue 326 ACHIEVED N/A Revenue enhancement Enhancement strategies by March Strategies 2012

One municipality Municipalities supported in the developed and development of implementing an effective Risk SALGA MP an effective Risk New Indicator 327 ACHIEVED N/A Management System Management and and Internal Audit Internal Audit system by March System. 2012.

264 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O6: SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM – IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Three municipalities Support 18 Municipalities supported to register municipalities in the SALGA NC registered and and report on EPWP 328 ACHIEVED N/A implementation of reporting projects by March phase 2 EPWP 2012

Interventions implemented to Provincial workshop improve Political Workshop held in on political oversight SALGA NC 329 ACHIEVED N/A Oversight on 2010/11 convened by municipal ﬁ nance December 2011 reports.

Ensure functionality Two DAFF Meetings Four Forums in 5 SALGA NC of (5) District Area convened by March 330 ACHIEVED N/A Districts Finance Forums 2012

Local Government Coordination of 2010/11 Budget Budget Week SALGA NC Budget Week 331 ACHIEVED N/A Week Report Workshop conducted programmes by December 2011

Municipalities Convene a working advised on the 16 municipalities session on GRAP SALGA NW improved revenue complied with GRAP 332 ACHIEVED N/A conversion by March enhancement conversion 2012 strategy

Advise 23 Municipalities Municipalities on advised on the the effective debt SALGA NW improved revenue New Indicator collection strategies 333 ACHIEVED N/A enhancement through working strategy session(s) by March 2012

Support the eight Municipalities priority municipalities supported on the SALGA NW 2010 Audit outcomes towards Clean Audit 334 ACHIEVED N/A improvement of Audit 2014 by March outcomes. 2012.

Municipalities supported towards the development and Coordinate provincial 2010 Budget week SALGA NW implementation of Budget Week by 335 ACHIEVED N/A report Improved Revenue March 2012 Enhancement strategies.

SALGA Annual Report | 2011/12 265 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O6: SOUND FINANCIAL MANAGEMENT AND GOVERNANCE SYSTEM – IMPROVED FINANCIAL MANAGEMENT AND FINANCIAL VIABILITY OF MUNICIPALITIES

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Support to Convene a workshop municipalities with SALGA WC New Indicator on MPACs by March 336 ACHIEVED N/A regard to Operation 2012 Clean Audit

Raise awareness of Attend quarterly Four CFO Forums Municipal Finance SALGA WC meetings of CFO attended by March 337 ACHIEVED N/A issues at provincial Forum 2012. government

Support rendered to municipalities Support given to 2011 Budget week SALGA GP in strengthening municipalities by 338 ACHIEVED N/A outcomes sound ﬁ nancial March 2012. management

21 Municipalities Municipalities with supported in the improved ﬁ nancial implementation SALGA MP management 2010/11 Baseline of the 2010/2011 339 NOT ACHIEVED Lack of capacity systems and Budget week processes resolutions by March 2012

Municipalities with One 2011/2012 improved ﬁ nancial budget week SALGA MP management 2010/11 Baseline 340 ACHIEVED N/A coordinated by systems and March 2012 processes

Provincial seminar on Land Use Convene one Management, provincial seminar Spatial Development on Land Use SALGA NC Framework New Indicator Management, SDF 341 ACHIEVED N/A guidelines and guidelines and Comprehensive IDP and CRDP by Rural Development December 2011 programme held

Adopt three Support and municipalities by assistance provided March 2012 to SALGA NC to municipalities New Indicator 342 ACHIEVED N/A provide hands on towards clean audit support towards 2014 achieving clean audit

266 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O7: STABLE MUNICIPAL GOVERNANCE - STABLE MUNICIPAL GOVERNANCE

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Facilitate Implementation Final guidelines Final document through guidelines, on the roles and IGR approved by NEC in one circular to all 343 ACHIEVED N/A responsibilities March 2011 municipalities, two approved by the NEC provincial workshops by 31 March 2012

Research Paper Two (2) best on best practices practices proposals regarding ToRs developed in on effective IGR 344 ACHIEVED N/A accountability 2010-11 accountability and oversight in oversight by 31 municipalities. March 2012

Four (4) district workshops on roles Support and advise Approved guidelines and responsibilities SALGA FS municipalities on the on Roles and for Mayors, Speakers, 345 ACHIEVED N/A role clariﬁ cation Responsibilities Councillors and Municipal ofﬁ cials by March 2012.

Participation of SALGA participated SALGA FS SALGA in provincial As per 2010/11 APP in 12 IGR structures 346 ACHIEVED N/A IGR structures by March 2012

Assist municipalities Three (3) outstanding with the SALGA FS New Indicator municipalities visited 347 ACHIEVED N/A establishment of by January 2012. Ward Committees

Six municipalities Municipalities supported on the with structured One District implementation SALGA MP and coordinated Workshopped on 348 ACHIEVED N/A of SALGA/DIRCO international MIR Guidelines guidelines on MIR by relations. March 2012.

Conduct two workshops for four Municipalities districts on Good advised on effective Good Governance Governance and SALGA NW Political oversight on and Ethics: King III 349 ACHIEVED N/A Ethics as well as Good Governance Manual guidelines on MPAC and Ethics Establishment by October 2011

SALGA Annual Report | 2011/12 267 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O7: STABLE MUNICIPAL GOVERNANCE - STABLE MUNICIPAL GOVERNANCE

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Participation of Participation and SALGA in key IGR representation by SALGA Governance Structures by March SALGA NW 350 ACHIEVED N/A SALGA in key IGR Framework 2012 (e.g. NCOP, Structures NWPCC, MuniMec, Select Committees)

Report on the Support to support provided Municipalities to municipalities SALGA WC New Indicator 351 ACHIEVED N/A on Governance on governance Challenges challenges by March 2012

Two MoUs with Lobby the legislative two spheres of and executive arms government on SALGA FS of government for New indicator the participation of 352 NOT ACHIEVED Lack of capacity the participation of SALGA developed SALGA and signed by March 2012

10 municipalities Training conducted SALGA FS New Indicator trained by March 353 NOT ACHIEVED Lack of capacity for Ward Committees 2012.

Development of Revised Governance a blueprint for an model for ward IGR New indicator 354 ACHIEVED N/A effective Ward committees by Governance System March 2012

Development of a Governance model governance model approved by NEC by IGR for the separation New indicator 355 ACHIEVED N/A 31 March 2012 of powers in municipalities

Development of a Advisory workshops governance model in three provinces on IGR for the separation New indicator the development of 356 ACHIEVED N/A of powers in MPACs by 31 March municipalities 2012

268 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Build awareness and Municipal level data SPR use of knowledge New Indicator framework developed 357 ACHIEVED N/A hub by December 2011

Local level data is Build awareness and made accessible SPR use of knowledge New Indicator through SALGA’s 358 ACHIEVED N/A hub website quarterly by March 2012

Initiate and coordinate the roll out of additional Initiate and benchmarking coordinate municipal SPR New Indicator programmes on 359 ACHIEVED N/A benchmarking HIV/Aids, public programmes participation, LED, and water by March 2012

Quarterly update Knowledge and Build awareness and Information database SPR use of knowledge New Indicator 360 ACHIEVED N/A and load onto SALGA hub Web site by March 2012

Two districts meetings held Two districts to capacitate capacitated with SALGA NC New Indicator municipalities 361 NOT ACHIEVED Lack of capacity regard to Disaster on Disaster Management Management by March 2012

Five municipalities Advisory Internal in ﬁ ve provinces Audit support A consolidated report (one per province) OCEO provided to on the municipalities (EC, FS, NC, MP, 362 NOT ACHIEVED Lack of capacity municipalities with audit outcomes. LP) identiﬁ ed and poor audit outcome. assisted by March 2012

Five (5) Supporting municipalities As per ﬁ ve and assisting supported and municipalities municipalities in assisted with the OCEO assisted and 363 ACHIEVED N/A the implementation implementation supported in of Performance of Performance 2010/11. Management System. Management System by March 2012

SALGA Annual Report | 2011/12 269 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Terms of Reference on learning networks developed and approved by Facilitate theme December 2011 N/A SPR based learning Learning Events for District Learning 364 ACHIEVED networks and events Network, Migration, Municipal Manager’s Forum and Mining and Local Government

Facilitate theme Four learning events SPR based learning Learning Events concluded by March 365 ACHIEVED N/A networks and events 2012

Develop a draft guide Development of on climate change MIS the climate change New Indicator 366 ACHIEVED N/A planning by March planning guide 2012

Create awareness Make presentation in on the importance Regulatory frame all nine water sector MIS of local regulation work and municipal 367 NOT ACHIEVED Lack of capacity forums by March to relevant water case studies 2012 structures

SALGA SALGA recommendations recommendations on revised capacity MID on Councillor Skills New Indicator building strategy 368 NOT ACHIEVED Lack of capacity Assessment report distributed to communicated provincial ofﬁ ces by 31 January 2012

SALGA Facilitate portfolio- recommendations based training in MID on Councillor Skills New Indicator 369 NOT ACHIEVED Lack of capacity ﬁ ve provinces by 31 Assessment report March 2012 communicated

The establishment Established effective and strengthening MoU signed with relations with of partnerships relevant institutions professional bodies MID with government 370 ACHIEVED N/A and list of key and evaluated their departments, niche stakeholders admission criteria by institutions and March 2012 business.

270 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

The establishment and strengthening MoU signed with of partnerships Signed agreements relevant institutions MID with government with niche institutions 371 ACHIEVED N/A and list of key departments, niche by March 2012 stakeholders institutions and business.

Developed a Framework on framework for the SALGA municipal establishment and database of available International functionality of MID 372 NOT ACHIEVED Lack of capacity personnel in the Programmes SALGA municipal scarce and critical scarce and critical skills skills database by 31 March 2012

Framework for Framework for the SALGA Sector development of Mentorship MID a SALGA sector New Indicator 373 NOT ACHIEVED Lack of capacity Programme mentorship developed by 31 programme. March 2012.

One knowledge Initiate knowledge sharing event on sharing programme Micro projects MID Human Capital 374 ACHIEVED N/A on Human Capital completed Development by 31 Development March 2012

SALGA impact SALGA impact assessment report on International assessment report on MID 375 NOT ACHIEVED Lack of capacity all SALGA (National) Programmes all Capacity Building Capacity Building by 31 March 2012

Submitted SALGA Lobby and advocate Performance comments on PMS MID for improved PMS in management toolkit. 376 ACHIEVED N/A Guidelines from the sector Workshop report. CoGTA by June 2011

SALGA PMS Lobby and advocate Performance cascading framework MID for improved PMS in management toolkit. 377 ACHIEVED N/A developed by 30 the sector Workshop report. October 2011

Developed PMS Lobby and advocate Performance capacity building MID for improved PMS in management toolkit. 378 ACHIEVED N/A plan for the sector by the sector Workshop report. 31 March 2012

SALGA Annual Report | 2011/12 271 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Lobby and advocate SALGA report on MID for LG Web-based New Indicator Municipal HRMIS by 379 NOT ACHIEVED Lack of capacity HRMIS 30 November 2011

SALGA funding Lobby and advocate proposal submitted MID for LG Web-based New Indicator 380 NOT ACHIEVED Lack of capacity to CoGTA by 31 HRMIS October 2011

Support and advice provided to Quarterly Labour Support provided to MID municipalities on bulletins by March 381 ACHIEVED N/A Municipalities Labour Relations 2012 matters

Continuous liaison with DIRCO/ CFIR to learn and update IR policies and guidelines and Draft IR Strategy Finalise IR strategy populate such to IGR approved by NEC on approved by NEC by 382 NOT ACHIEVED Lack of capacity SALGA Directorates/ 25 March 2011. 31 March 2012. Provinces/ Municipalities Implementation of SALGA International Relations Strategy

Continuous liaison with DIRCO/ CFIR Guidelines to learn and update for twinning IR policies and municipalities guidelines and Draft IR Strategy approved by NEC populate such to IGR approved by NEC on and workshopped to 383 NOT ACHIEVED Lack of capacity SALGA Directorates/ 25 March 2011. at least 4 provinces Provinces/ and distributed to all Municipalities 278 municipalities by Implementation of 31 March 2012. SALGA International Relations Strategy

272 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Continuous liaison with DIRCO/ CFIR Project to promote to learn and update the conclusion of IR policies and inter-municipal guidelines and partnerships or Draft IR Strategy populate such to international city- IGR approved by NEC on 384 ACHIEVED N/A SALGA Directorates/ to-city cooperation 25 March 2011. Provinces/ of at least two Municipalities domestic cities to two Implementation of international cities by SALGA International March 2012. Relations Strategy

Continuous liaison with DIRCO/ CFIR to learn and update IR policies and At least 1 (one) guidelines and Draft IR Strategy above international populate such to IGR approved by NEC on project per twinning 385 NOT ACHIEVED Lack of capacity SALGA Directorates/ 25 March 2011. implemented by 31 Provinces/ March 2012. Municipalities Implementation of SALGA International Relations Strategy

Develop an introductory brochure to planning for use Facilitate the by both planning capacity building practitioners and of Councillors councillors involved and Planning with planning and ED&P New indicator 386 ACHIEVED N/A Practitioners upload it on the on planning SALGA website and related matters in also disseminate municipalities it to Provinces for distribution to municipalities by March 2012

SALGA Annual Report | 2011/12 273 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Provide support and guidance to ensure that ICTs are better Implement aspects leveraged to effective of eSkills programme As per 2010/11 ED&P administration, from DoC MOU on 387 NOT ACHIEVED Lack of capacity Business Plan service delivery and eSkills by March socio-economic 2012 development within Municipalities.

Provide support and guidance to ensure that ICT’s are better Launch Municipal leveraged to effective As per 2010/11 ICT Practitioners ED&P administration, 388 ACHIEVED N/A Business Plan Network by March service delivery, 2012 and socio-economic development within Municipalities.

Provide support and guidance to ensure that ICTs are better Host a SALGA leveraged to effective As per 2010/11 National ICT Local ED&P administration, 389 ACHIEVED N/A Business Plan Government Event by service delivery and March 2012 socio-economic development within Municipalities.

Provide support and guidance to ensure that ICT’s are better Prepare feasibility leveraged to effective study on SALGA As per 2010/11 ED&P administration, Forming an ICT 390 ACHIEVED N/A Business Plan service delivery and Accreditation Service socio-economic by March 2012 development within Municipalities.

Conduct Generic Induction and Portfolio Based Councillors and Induction on Water ofﬁ cials capacitated Services, Human SALGA EC 2010-11 Baseline 391 ACHIEVED N/A on issues of local Settlements , Waste government Management and environment and Municipal Finance by March 2012

274 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

One provincial HIV/ HIV/ AIDS AIDS learning event SALGA EC learning events for New indicator 392 ACHIEVED N/A for municipalities by municipalities March 2012

Host one learning Municipalities event for knowledge advised on management and SALGA EC knowledge New Indicator sharing as per 393 ACHIEVED N/A management and National SALGA sharing calendar by March 2012

Co-ordinate capacity building programmes for municipal ofﬁ cials 15 capacity building and councillors As per 2010-11 programmes SALGA FS 394 ACHIEVED N/A (workshops, Business plan implemented by accredited training, March 2012 capacity building programmes etc)

1000 councillors and Facilitate targeted ofﬁ cials capacitated SALGA GP training to improve New Indicator on targeted 395 ACHIEVED N/A service delivery programmes by March 2012.

Engage stakeholders Stakeholder on knowledge engagement Focus for ﬁ rst management and on Knowledge three quarters SALGA LP New Indicator 396 NOT ACHIEVED Innovation and Management and was on CIP coordinate Municipal Innovation by training Managers Forum November 2011

Six municipalities supported in the Integrated development of Development Plans sector plans in SALGA MP New Indicator 397 ACHIEVED N/A reﬂ ective of sector preparation of plans 2012/2013 IDP annual review by March 2012

SALGA Annual Report | 2011/12 275 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Three municipalities Municipalities supported in the developing and As per the development and SALGA MP implementing 2010/2011 ﬁ nal implementation 398 ACHIEVED N/A the Performance performance of PMS for Senior Management System Management by March 2012

Councillors, Ofﬁ cials, PEC, and 973 councillors WG members and As per the inducted and SALGA MP Traditional leaders 2010/2011 ﬁ nal 399 ACHIEVED N/A orientated on LG orientated and performance issues by July 2011. capacitated on issues of local government

21 Municipalities Capacitated supported on municipalities on SALGA MP New indicator communication 400 ACHIEVED N/A communication issues through the issues DCFs by March 2012

10 workshops on Main Collective Implement capacity Agreement/HR building intervention Policies/Disciplinary SALGA NC 10 Workshops 401 ACHIEVED N/A beneﬁ ting councillors Procedure/LLF/ and ofﬁ cials Divisional COS/Strike Management by March 2012

Councillor Induction program coordinated Councillors orientated to orientate SALGA NC on local government New Indicator councillors after the 402 ACHIEVED N/A issues local government elections by September 2011

Municipalities supported towards Provincial IDP 2010 IDP the Alignment of working session on SALGA NW assessment out 403 ACHIEVED N/A the Integrated 3rd-generation IDPs comes Development Plans by March 2012. and Sector plans

276 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Conduct induction Newly elected programme for newly Councillors inducted SALGA NW elected councillors New Indicator on roles and 404 ACHIEVED N/A on the roles and responsibilities by responsibilities. March 2012

300 Councillors/ Conduct Skills Ofﬁ cials Trained on Development 2010/11 training PMS; HIV/AIDS; SALGA NW 405 ACHIEVED N/A and Training for outcomes LLF; OHS; LRPF municipalities and HRPF by March 2012

Ten (10) Support municipalities municipalities in within the province the implementation supported of the Performance 2010/11 training and guided to SALGA NW 406 ACHIEVED N/A Management System outcomes implement PMS by monitoring the and monitored on implementation the implementation thereof. thereof by March 2012.

Facilitate general training, capacity building and knowledge sharing Conduct fi ve training for Councillors and interventions for Offi cials. (Councillor Three capacity- councillors and SALGA WC 407 ACHIEVED N/A Induction, ELDP, building interventions offi cials on local Confl ict Resolution, government by Disciplinary Hearing March 2012. Chairpersons and Initiators, Workshops.)

Councillors, Ofﬁ cials, PEC, 13 PEC members and WG members and 36 working Transition As per the and Traditional group members in SALGA SALGA MP 2010/2011 ﬁ nal 408 NOT ACHIEVED leaders orientated inducted on the Governance performance and capacitated mandate of SALGA Structures on issues of local by December 2011. government

SALGA Annual Report | 2011/12 277 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O8: CAPACITY BUILDING AND INSTITUTIONAL DEVELOPMENT - ENHANCED SKILLS AND ORGANISATIONAL SYSTEMS AND STRUCTURES OF MUNICIPALITIES TOWARDS IMPROVED SERVICE DELIVERY.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Councillors, 500 Councillors, Offi cials, PEC and Traditional Leaders WG members and As per the and Offi cials Traditional leaders SALGA MP 2010/2011 fi nal trained in nine 409 ACHIEVED N/A orientated and performance local government capacitated on programmes by issues of local March 2012. government

Convene one national Build awareness and and four provincial SPR use of knowledge New Indicator workshops on 410 ACHIEVED N/A hub municipal barometer by March 2012

Quarterly outcome Facilitate theme Reports on District Local Learning SPR based learning Learning Networks 411 NOT ACHIEVED Lack of capacity Network networks and events developed by March 2012

SADC regional Conduct a needs Lack of capacity MID collaboration strategy New Indicator assessment of the 429 NOT ACHIEVED developed. strategy

278 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O9: REFORM ORGANISED LOCAL GOVERNMENT – A MORE EFFECTIVE, RESPONSIVE, AND FINANCIAL VIABLE SALGA

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Partnerships wo partnerships with with relevant relevant institutions institutions of of higher learning SALGA FS Higher Learning and New indicator 412 NOT ACHIEVED Lack of capacity and professional Professional bodies bodies concluded by or Associations March 2012. concluded.

Special Conference Revised constitution was not held by presented at the Development of a February 2012 Special National position paper on the Papers submitted to due to lack IGR Conference on 413 NOT ACHIEVED review of Organised NMA in May 2010 of consensus Constitutional Local Government regarding Amendments by 28 the date of February 2012. the special Conference.

Proposed Development of a amendments to position paper on the Papers submitted to IGR OLG Act and other 414 ACHIEVED N/A review of Organised NMA in May 2011 legislation by 31 Local Government March 2012.

Lobby national and provincial Development of a IGR structures position paper on the Papers submitted to IGR and Parliament to 415 ACHIEVED N/A review of Organised NMA in May 2012 effect proposed Local Government amendments by 31 March 2012.

100% Collection of Municipalities Improvement in the 85% Collection of SALGA FS municipal levies by 416 NOT ACHIEVED cashﬂ ow collection of levies municipal levies. March 2012 challenges

Coordination of Effective coordination and participation of and participation As per 2010/11 in governance SALGA GP 417 ACHIEVED N/A in all governance status report structures as per structures calendar of events by 31 March 2012

Conduct three Informed proposals workshops to solicit on SALGA SALGA LP OLGA inputs from member 418 NOT ACHIEVED Lack of capacity Constitutional Review municipalities by and OLG Review January 2012

SALGA Annual Report | 2011/12 279 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE O9: REFORM ORGANISED LOCAL GOVERNMENT – A MORE EFFECTIVE, RESPONSIVE, AND FINANCIAL VIABLE SALGA

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Municipalities 21 Municipalities consulted on consulted on the SALGA MP the proposed New Indicator review of the SALGA 419 ACHIEVED N/A amendments to the constitution by SALGA constitution March 2012

Establishment of SALGA Provincial Municipalities Working Groups by consulted towards SALGA Governance PEC in consultation SALGA NW the Restructuring 420 ACHIEVED N/A Framework with Municipalities of Governance after Provincial Structures of SALGA Conference by December 2011

Provide Capacity Building for newly Conduct induction elected PEC and workshop for new Working Group PEC and Working Members for the SALGA NW New Indicator Group members on 421 ACHIEVED N/A execution of the SALGA Governance mandate of SALGA Framework by in line with the January 2012 SALGA Governance Framework

21 Municipalities Municipalities supported in the SALGA MP implementing the New Indicator implementation of 422 ACHIEVED N/A IGR Framework Act the IGR Framework Act by March 2012

280 SALGA Annual Report | 2011/12 3.7 PERFORMANCE INFORMATION (TABLES)

PRIORITY OBJECTIVE 10: CLIMATE CHANGE RESPONSE MEASURES AT MUNICIPAL LEVEL – INTEGRATION OF CLIMATE CHANGE RESPONSES IN DEVELOPMENT PLANNING AND MANAGEMENT.

BUSINESS KPI PERFORMANCE REASON FOR KPI/OUTPUT BASELINE TARGET UNIT NR STATUS VARIANCE

Partner with eThekwini Facilitate Municipality, implementation DEA, and SACN MIS New indicator 423 ACHIEVED N/A of LGP4COP in implementing Programme LGP4COP Programme by December 2011.

Final report on Assessment of MoU for policy implications policy implications implementation of implementation MIS of implementation of of programme 424 ACHIEVED N/A of energy efﬁ ciency energy efﬁ ciency in signed with KSD in municipalities by municipalities municipality March 2012.

One report on Climate change municipal climate awareness campaign change awareness SALGA FS New indicator 425 NOT ACHIEVED Lack of capacity facilitated for campaign municipalities consolidated by March 2012.

Analyse integration Two municipalities of climate change climate change SALGA GP New indicator 426 ACHIEVED N/A response into responses analysed municipal planning by March 2012

All municipalities All municipalities supported and supported and Conduct a capacitated on capacitated on provincial workshop climate change climate change on mitigation, SALGA NW policies with policies with 427 ACHIEVED N/A adaptation, carbon emphasis on emphasis on footprint and trading adaptation , adaptation , by March 2012 mitigation and mitigation and carbon footprint carbon footprint

A draft report on the Institutional capacity Institutional capacity assessments for MoU for assessments for pilot municipalities implementation pilot municipalities MIS in relation to the role of programme in relation to the role 428 NOT ACHIEVED Lack of Capacity and mandate to be signed with KSD and mandate to be fulfi lled in respect of municipality fulfi lled in respect of energy effi ciency energy effi ciency by March 2012.

SALGA Annual Report | 2011/12 281

282 SALGA Annual Report | 2011/12 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

SALGA Annual Report | 2011/12 283 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 SALGA Annual Report | 2011/12 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 fi nancial year. Consultative Meetings were held in the development of this Policy. The Policy was subsequently approved by NEC on 10 to 11 December 2009. The fi rst revision of the Policy took place during the 2010/11 fi nancial year to make the necessary improvements towards process optimilisation. The fi rst revision of the Strategic and Annual Performance Planning Policy was approved by the NEC during March 2011 for implimentation with effect from 1 April 2011.

The second revision of the Strategic and Annual Performance Planning Policy commenced during October 2011. One of the primary objectives of this review was to incorporate areas of improvement highlighted by the Management Report of the Auditor General of August 2011 and to incorporate the requirements of the National Treasury Framework for Strategic and Annual Performance Planning (August 2010 – but applicable as from the 2011/12 ﬁ nancial year). The SALGA Strategic and Annual Performance Planning Policy consist of two distinct parts: (a) the policy which is reﬂ ective of the applicable legislation guiding governance in Public Entities and (b) the procedure that guides organisational implementation.

The SALGA Executive Management Team has been engaged for inputs on 24 October 2011. The consultation process concluded with a meeting of the Managers: Strategic Support on 2 December 2011 where all inputs made by Provinces and Directorates where tabled and discussed in order to inform and conclude the second revision of the Policy.

For the purpose of this report the following changes to the Policy are highlighted:

• Strategic Planning:

- The process to inform the Strategic Plan of SALGA has to be guided by the timeframes laid down by National Treasury:

Step 1: Provincial mandating process has to inform the ﬁ rst draft Strategic Plan to be submitted to the Minister: CoGTA by 31 August of a particular planning cycle.

Step 2: The second draft Strategic Plan has to be sophisticated with the consolidation of provincial inputs into a holistic national mandate to be submitted to the Minister: CoGTA by 30 November of a planning cycle.

Step 3: The ﬁ nal Strategic Plan has to be reﬁ ned and endorsed by the PECs and recommended for approval by the NEC prior to submission to the Minister: CoGTA by 31 January of a particular planning cycle.

• Annual Performance Planning

- The process to develop the Annual Performance Plan of SALGA (guided by the SALGA ﬁ ve-year Strategic Plan) has to be guided by the timeframes laid down by National Treasury:

Step 1: Provincial mandating process has to inform the ﬁ rst draft Annual Performance Plan to be submitted to the Minister: CoGTA by 31 August of a particular planning cycle.

SALGA Annual Report | 2011/12 285 4.2 BUSINESS PLANNING AND PERFORMANCE INFORMATION

Step 2: The second draft Annual Performance Plan has to be sophisticated with the consolidation of provincial inputs into a holistic national mandate to be submitted to the Minister: CoGTA by 30 November of a planning cycle.

Step 3: The ﬁ nal Annual Performance Plan has to be reﬁ ned and endorsed by PEC’s and recommended for approval by the NEC prior to submission to the Minister: CoGTA by 31 January of a particular planning cycle.

- The National Treasury Framework for Strategic and Annual Performance Planning does not allow for the revision of the Annual Performance plan during the mid-year. This practice had to be removed from the Policy in order to comply.

- Operational Planning as from the 2012/13 will be compulsory.

• In-Year Reporting:

- Within 30-days after the end of a quarter, SALGA has to submit a comprehensive report to the Minister: CoGTA on the organisational performance against the approved Annual Performance Plan. As per the commitment of SALGA to the Auditor-General, the Strategic and Business Planning Unit will conduct a detailed quality assurance on performance claims made against every target on a quarterly basis. Detailed feedback will be provided to line management to ensure the integrity of the information presented to the Accounting Authory.

The second revised policy was approved by the NEC during March 2012 for implementation with effect from 1 April 2012. 4.2.2 PERFORMANCE INFORMATION:

Performance information is under the administration of the Strategy, Policy and Research (SPR) directorate. SALGA has started to implement a more systematic and integrated approach to business planning, one that is institutionally aligned in all of its high- level business units. The business plan is used as a systematic framework to provide strategic clarity, direction and purposeful execution of the mandate of SALGA.

The SALGA Annual Performance Plan 2011/2012, as approved by the National Executive Committee in March 2011, was based on the revised SALGA Five-Year Strategic Plan (2007-2012). This was amended to cater for the shift in focus from objectives to outcomes and the replacement of the ﬁ ve objectives geared towards the Five-Year Local Government Strategic Agenda (5-YLGSA) with the SALGA 10-Point Priority Outcomes. This is aligned with the Local Government Turn Around Strategy (LGTAS).

As per the Public Finance Management Act (PFMA) requirements, directorates/provinces submit quarterly progress reports to the SPR directorate. During the second quarter, the Internal Audit Unit completed its audit review of mid-term performance information. The scope of work covered the veriﬁ cation of the existence of evidence supporting the business plan performance information reported in the mid-term ending September 2011. The scope of the audit did not duplicate the review conducted by the mid-term performance information review panel. The following directorates/provinces formed part of the audit sample:

• SALGA Eastern Cape

• SALGA Free State

286 SALGA Annual Report | 2011/12 4.2 BUSINESS PLANNING AND PERFORMANCE INFORMATION

• SALGA Gauteng

• SALGA Mpumalanga

• SALGA Northern Cape

• SALGA Western Cape

• Directorate: Strategy, Policy and Research

• Directorate: Municipal Infrastructure Services

• Directorate: Economic Development and Development Planning

• Directorate: Governance, IGR and International Relations

• Directorate: Community Development

• Directorate: Finance and Corporate Services

• Ofﬁ ce of the CEO

SALGA Annual Report | 2011/12 287 4.3 THE SALGA LEGISLATIVE COMPLIANCE FRAMEWORK

4.3.1 INTRODUCTION

SALGA has taken proactive steps to ensure that appropriate and sufﬁ cient compliance principles are implemented. The compliance unit is responsible for ensuring that SALGA acts in accordance with good corporate governance principles and that it complies with all applicable laws, regulations, policies, and procedures. It is therefore crucial to have proper compliance implementation and monitoring procedures in place.

SALGA is obliged to comply with numerous legislation, regulations and policies and its regulatory compliance duties are divided into three categories:

• Compliance in terms of statutory requirements.

• Compliance in terms of the SALGA constitution.

• Compliance in terms of the SALGA policies and procedures.

SALGA is therefore obliged to comply with the sources arising from the three categories. Failure to do so could lead to serious reputational and ﬁ nancial risk. The improvement of compliance activities by reducing opportunities for non-compliance is vital to the optimal operation of SALGA.

The goal of the compliance unit is to capitalise on the compliance levels of individual units and ensure that every manager and employee fully meets their ofﬁ cial obligations. The compliance unit in the ofﬁ ce of the CEO has continued to roll out and develop the SALGA compliance framework. This ongoing endeavour has substantially deepened the ability of SALGA to implement and monitor compliance throughout the organisation. 4.3.2 ACTIVITIES FOR THE YEAR UNDER REVIEW TO ENSURE COMPLIANCE

Major strides were made in the implementation of the SALGA compliance framework during 2011/2012. The key achievements in relation to the compliance framework are summarised below:

• Continued to provide training to compliance ofﬁ cers on fundamental principles of compliance.

• A quarterly compliance training newsletter was developed and distributed to all compliance ofﬁ cers, thus ensuring ongoing, on-the job compliance training and awareness.

• Continuous assistance to all compliance ofﬁ cers and interested parties on compliance, translating to an ‘open-door policy’.

• Produced a preliminary compliance scorecard quantifying compliance levels at individual segment levels.

• Attempting to create a fearless environment as regards compliance.

• Status reports can be drawn from the compliance software programme for each internally-focused business unit, province, and for SALGA overall.

• More business units and provinces have started to recognise the vital role of compliance within the organisation.

288 SALGA Annual Report | 2011/12 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

SALGA Annual Report | 2011/12 289 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, efﬁ cient and transparent systems of ﬁ nancial and risk management.

In ensuring a transparent system for resource allocation, SALGA’s budgeting process includes “Budget Panel Hearings”.

The organisation’s budget is informed primarily by the organisational Business Plan 2011/12 together with the Budget Management policy and the MTEF guidelines.

The basis of the organisational business plan 2011/12 is, inter alia, informed by:

• The local government environment;

• National and global issues and trends and their implications for local governance;

• 5YLGSA subsequently superseded by the Local Government Turnaround Strategy;

• The MTSF;

• The MGDs;

• The COGTA Ten Point Plan; and

• SALGA’s revised 5 Year Strategic Plan 2007 – 2012.

Budget parameters are set based on available resources and circulated to all business units i.e. provinces and directorates. These budget parameters are designed to ensure that the organisational budget is affordable; sustainable; realistic; and credible. SALGA is not immune to budgetary constraints that dictate the priority areas for a speciﬁ c planning year. In order to deal equitably with competing demands from various business units for resources, the organisations budget policy established a “Budget Panel” a governance structure where the various competing needs are weighed against resources; and organisational priorities as informed by the business plan 2011/12.

The purpose of the budget panel hearings’ is to establish a formal forum where all business units are granted an equal opportunity to present their costed programme of action for the planning ﬁ nancial year and beyond to support the budget being requested. The programme of action must focus on the planning ﬁ nancial year (business plan) and be linked to SALGA’s strategic objectives and be linked to a clear and measurable Key Performance Indicator (KPI).

SALGA’s budgeting basis is a hybrid of incremental budgeting as well as zero base budgeting.

290 SALGA Annual Report | 2011/12 4.4 BUDGETING POLICY

It is SALGA’s policy to adopt a Zero Base Budgeting (ZBB) for all programme costs and capital spending. The incremental cost approach is used when budgeting for “administrative expenses” such as rental costs for rental premises used for ofﬁ ce accommodation. Employee related costs are also budgeted based on an incremental basis, except for additional increases in the base cost as a result of head count increases, which adopt the zero base budgeting approach.

Departing from the incremental cost approach for administrative expenses, is allowable, where a policy, or agreement exists that uses a pre-determined multiplier for costing purposes such policy shall formulate the basis for budgeting for such administrative expenses.

The process to develop the budget is protracted and robust, which is best described diagrammatically below (highlighting the critical governance and administrative structures).

Operational and ﬁ nancial Sustainability

The timing of payment for membership levies from members often impacts negatively on the organisations operations and thereby its ability to service its membership better. The majority of payments for membership levies does not occur by the due date (i.e. 1 July per the SALGA Constitution). This state of affairs often impacts the organisations cash ﬂ ows resulting in the curtailment of programme roll-out. In order to address this risk factor, the organisation has developed a funding model that has been presented to the Executive Authority (CoGTA) and National Treasury, after it was adopted by members in the National Members Assembly held on 10-11 May 2010 in Kimberley.

The purpose of developing the Funding model was to analyse the various activities currently performed by SALGA with speciﬁ c reference to the relevant legislation and to determine a funding model that will enhance revenue thereby ensuring the sustainability of SALGA in future years. In analysing the activities undertaken by SALGA, cost drivers were identiﬁ ed and these are also commented on in this report. Whilst cost control was not an objective of the assignment, there are recommendations that identify possible cost control opportunities.

The funding model; has determined scientiﬁ cally the following cost components that must be funded from the national ﬁ scals; these are (i) mandatory governance costs; (ii) legislated inter-governmental relations participation; and (iii) restructuring and transformation of local government sector.

Cost Component 2011/12 2012/13 2013/14

Mandatory Governance costs R 6,072,000 R 6,442,000 R 6,796,000

Legislated IGR participation R 76,823,000 R 81,509,000 R 85,992,000

Transformation /Restructuring R 18,480,000 0 0

TOTAL R 101,375,000 R 87,951,000 R 92,788,000

Less: Current government grant in ﬁ nancial model (R 24,000,000) (R 26,000,000) (R 27,000,000)

TOTAL INCREASE REQUIRED R 77,375,000 R 61,951,000 R 65,788,000

The rational for each of the components is summarised below:

SALGA Annual Report | 2011/12 291 4.4 BUDGETING POLICY

(i) Mandatory Governance Costs

One of the main reasons for requesting a government grant to ﬁ nance the cost of governance is that national legislation, in the form of the Public Finance Management Act, requires SALGA as well as other public sector organisations to be audited externally, establish and implement an internal audit function and establish an audit committee (i.e. implement good governance practices).

It should be noted that similar requirements apply not only to the public sector but also to the private sector. These requirements are not considered to beneﬁ t government per se but rather are intended to safeguard the interests of and promote accountability to stakeholders. Good governance reﬂ ects the value system of society at a point in time, and good governance structures and mechanisms are deemed acceptable to enable the governing body and the administration to demonstrate that they have acted in the best interests of stakeholders.

It is our considered submission hat the national ﬁ scas should fund this cost of governance as it is compliance related.

(ii) Legislated Inter-Governmental Relations Participation

The main reason for requesting government grant ﬁ nancing is that SALGA is undertaking legislated functions regarding its mandatory participation in the various IGR structures. The extent and form of such participation, and whether representation is at a national or provincial level, is effectively required in terms of legislation. There is no opportunity for SALGA to vary its representation unless there is a change to legislation. SALGA’s participation is therefore compulsory, as per the legislative prescripts.

(iii) Restructuring and Transformation of Local Government Sector

SALGA has an objective to support the transformation of local government. This objective is to identify key transformation issues facing local government and to undertake research and advocacy work around such support. SALGA also sees itself as participating in transformation initiatives that are initiated by national government and other related parties, such as the introduction of REDS. SALGA sees its role as supportive to transformation objectives in the best interest of the Local Government sphere.

The major transformation initiatives that are occurring at present relate to electricity restructuring, introduction of a single public service and the replacement of RSC levies with a local business tax. There are also transformation issues that are driven by national departments and the participation of SALGA in national department led initiatives, whether technical, planning, governance, environmental or ﬁ nancial management related, is often required.

There are also initiatives that SALGA itself initiates based on feedback from its members and based on challenges facing the sector. In these instances, SALGA develops a position paper and then engages with the national government sector department concerned. This entails research and consultation with members that feeds back into departmental initiatives. All these undertakings require the development of well-informed policy positions; and adequate funding is often required to realise these.

The organisation has submitted the outcome of its revenue enhancement model (Funding model) to the Executive Authority (Department of Co-operative Governance and Traditional Affairs) as part of the MTEF submission for the 2011/12 to 2013/14 planning cycle, and made necessary representations relating to the adequacy of the SALGA funding from the national ﬁ scas. The submission was followed by a formal engagement between the SALGA Chairperson and the Minister of Finance on 30 September 2010; and a further engagement between the CEO of SALGA and the Deputy Minister of Finance on 25 January

292 SALGA Annual Report | 2011/12 4.4 BUDGETING POLICY

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.

SALGA Annual Report | 2011/12 293 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 ﬁ nancial and legal literacy and the independence of the committee.

The audit committee of SALGA was established in terms of the PFMA and the Treasury Regulations. Its responsibilities have been determined by the National Executive Committee and its modus operandi is outlined in the Audit Committee Charter that is reviewed annually to ensure its relevance.

In accordance with the Treasury Regulations 27.1.3 and 27.1.4, the Audit Committee has been constituted to ensure its independence, with all members and the chairperson outside the public services. The composition of the Audit Committee members is such that all Treasury Regulations and Audit Committee Charter requirements are met in terms of the ﬁ nancial and legal literacy.

Four meetings were held during the 2011/12 ﬁ nancial year as per the following dates:

• 21 May 2011.

• 29 July 2011.

• 25 November 2011.

• 22 March 2012.

Audit Committee meetings were attended by external auditors, the Chief Executive Offi cer, the Chief Financial Offi cer, The Head of Internal Audit, and relevant corporate offi cials. The Chairperson of the Audit Committee reports on the activities of the committee to the National Executive Committee on a regular basis. All members give a declaration at each Audit Committee meeting of any personal or fi nancial interests that may confl ict with their duties in this regard.

For the period under review, the audit committee has fulﬁ lled all the requirements in terms of its responsibilities and functions as per the Audit Committee Charter, PFMA and Treasury Regulations.

294 SALGA Annual Report | 2011/12 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 Ofﬁ cer and functionally to the Audit Committee to ensure its independence. The purpose, authority, and responsibilities of Internal Audit function are formally deﬁ ned in the Internal Audit Charter which is adopted by the Audit Committee and the National Executive Committee.

The Charter grants the Internal Audit Function access to the records, personnel and physical properties relevant to the operations of the organisation, as appropriate and as required. In terms of the Charter, Internal Audit is responsible for developing and executing the internal audit plans in order to provide assurance to management and the Audit Committee on the system of internal control, risk management and governance.

The purpose is to assist management to identify weaknesses in the aforementioned systems within SALGA. It is also to provide recommendations on how to deal with these weaknesses. This is done primarily by auditing systems and processes, as per the internal audit plan, issuing reports detailing the results of the audits to management and the Audit Committee. The approach and the methodology are based on the International Standards of the Professional Practice of Internal Auditing (ISPPIA) and are in accordance with the Treasury Regulation 27.2.6.

The annual internal audit plan for the period 2011/12 was reviewed and approved by the Audit Committee during March 2011. Input from management and the Auditor-General were considered during the compilation of the audit plan to ensure buy-in from management and to facilitate the co-ordination of audit work. The Annual Audit Plan for the period ending 31 March 2012 was fully executed except for audits that could not be performed due to expected changes to the SALGA constitution, etc. Such audits were closed in consultation with the Audit Committee.

SALGA Annual Report | 2011/12 295 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 fulﬁ l the requirements of the Public Finance Management Act (PFMA). Risk Management is not only seen as a compliance issue but a business imperative.

The National Executive Committee (NEC), through the Audit and Risk Management Committee, is ultimately responsible for the total risk management process as well as internal controls within the organisation. The Audit and Risk Management Committees assists the NEC in fulﬁ lling its oversight role. The NEC approves the Risk Management strategies and policies.

Annual risk assessments are conducted to both fulﬁ l and, insofar as possible, exceed the requirements of the PFMA. Mitigating action plans are consistently being monitored and adapted. Periodic feedback and reports are provided by management to the Audit and Risk Management Committee on risk management processes as well as new risk exposures. 4.7.2 ENTERPRISE-WIDE RISK MANAGEMENT (ERM) FRAMEWORK

An Enterprise Wide Risk Management (ERM) framework that is aimed at effectively identifying, evaluating, and managing risk exposures within acceptable or prudent levels has been adopted. The SALGA risk management framework has been aligned to the PFMA, King III, Committee of Sponsoring Organisations of the Treadway Commission (COSO), and other international codes of best practice.

Furthermore, various supporting risk management governance structures are in place, such as the National Executive Committee (NEC), Audit Committee, and the Risk Management Committee to further strengthen the ERM process. Our focus this year included the following:

• Strengthening the risk maturity within the organisation by harnessing our risk management culture,

• Adoption of the risk management policies and strategies;

• Rigorous monitoring of action plans to mitigate identiﬁ ed organisational risks. This process is also incorporated and managed through the performance management process. 4.7.3 MAJOR RISKS

For the period under review, the organisation was faced with the risk of Human Capital. Inadequate human capital poses a threat to the operations and performance of SALGA if this risk is not carefully managed.

This risk is related to the measurement of gap between the goals of the organisation and the skills of the workforce as well as the ability to attract and retain relevant skills.

296 SALGA Annual Report | 2011/12 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 Ofﬁ ce Bearers and Executive Committees on all matters relating to their work.

4.8.2 COMPOSITION OF THE PANEL AND REPRESENTATION OF THE NEC ON THE PANEL

The Panel is comprised of 10 members, including four NEC members elected by the National Executive Committee and six independent members from the private sector and the Chief Executive Ofﬁ cer of SALGA. There is a balanced representation on the Panel to ensure that:

• A quorum can be achieved at Panel meetings, and

• The substantial work can be done by the Panel and be completed successfully.

SALGA Annual Report | 2011/12 297 4.8 INDIVIDUAL PERFORMANCE MANAGEMENT

The table below lists the Panel members for the period under review (2011 - 2012):

NO. NAMES OF PANEL MEMBERS BACKGROUND

1 Cllr T. Manyoni SALGA National Chairperson

2 Cllr N. Hermans SALGA Deputy Chairperson – National Ofﬁ ce Bearer

3 Cllr N. Meth SALGA Eastern Cape Provincial Chairperson

4 Cllr S. Mashilo Chairperson of the HR Development and Collective Bargaining Working Group

• 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). 5 Mr Michael Olivier • 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). 6 Mr Zwelibanzi Mntambo • 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.

• External Panel Member. • Expert in HR; Governance; Remuneration and Performance Management 7 Ms Elizabeth Dhlamini-Khumalo • HR Director: Sandvik AB - Southern African Companies & Vice President - Region Africa. • Previously HR Director for Afrox, Woolworths, SA National Parks Board.

• External Panel Member. • Chief Executive Ofﬁ cer of SITA. 8 Mr Blake Mosley-Lefatola • Municipal Practitioner and Expert in Performance Management and Remuneration • Former Chief Executive Ofﬁ cer – Gauteng Economic Development Agency (GEDA). • Previous experience as City Manager, newly appointed DG of DPSA

298 SALGA Annual Report | 2011/12 4.8 INDIVIDUAL PERFORMANCE MANAGEMENT

NO. NAMES OF PANEL MEMBERS BACKGROUND

• Medical Doctor by Profession: • Member South African National AIDS Council: Presidency • Deputy Chair – Resource Mobilisation Committee: Presidency • Board and Council Member: World Medical Association 9 Dr Fazel Randera • 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.

• External Panel Member. • Group CHRO and Strategic Advisor: Alexandra Forbes • Member of the Remuneration and Human Resource Committee : South African Revenue Service (SARS). 10 Ms Laura Machaba-Abiodun • Former Council Member of Institute of Directors of Southern African and Certiﬁ ed Director • An international business woman who held various senior and executive positions over two decades in large corporations in the USA and South Africa.

11 Mr Xolile George Chief Executive Ofﬁ cer of SALGA a. Representation of the NEC on the Panel

NEC Members on the Panel hold the responsibility to provide a balanced perspective against the performance of Chief Executive Ofﬁ cer of SALGA and the organisation at large. They also provide support and guidance on the understanding of the organisation to external members serving on the Panel to ensure effective and efﬁ cient functioning of the Panel.

The following rationale was used in the determination of representation of the NEC Members on the Panel:

• The National Chairperson of SALGA;

• Representation of the National Ofﬁ ce Bearers Committee;

• Representation of Provincial Chairpersons; and

• Representation of Working Groups.

Adequate representation of the NEC on the Panel assists and supports the Panel with the following:

• Maintain the integrity of the performance management system;

• Enhance the functioning of the Panel;

• Ensure that its work can be completed successfully; and

SALGA Annual Report | 2011/12 299 4.8 INDIVIDUAL PERFORMANCE 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 Offi cer of SALGA, Chief of Operations, and the Chief Financial Offi cer attend Panel meetings in an ex-offi cio capacity and are responsible for presenting recommendations to the Panel. The Panel functions independently of the management structures within SALGA and endeavours to remain and preserve its objectivity at all times.

The Panel is afforded secretariat services by the Ofﬁ ce of the CEO.

c. Term of ofﬁ ce of the Panel

Constitution and term of offi ce for members of the Panel is for a period of three years, subject to annual review at the end of each fi nancial year. The term of offi ce of the current committee ended in April 2011. However, this overlapped due to the transition as a result of the 2011 Local Government Elections. SALGA had to prepare for municipal elections and thereafter for the SALGA Provincial and National Conferences to elect the new SALGA leadership.

By agreement of the NEC, the term of ofﬁ ce of the external members of the Panel was extended until September 2012 to ensure continuity of the process of improving performance management application and to provide input to the newly elected NEC on the cascading of performance management scorecards within SALGA to reﬂ ect the new strategies and plans approved by the NEC. 4.8.3 EVOLVING PROCESS AND ROLE OF THE PANEL

Since the inception of the Panel and the major Panel Induction Workshop held in April 2008, the Panel has addressed the following priorities towards assisting SALGA in improving Corporate Governance and Internal Functioning.

a. Overall Reviews:

The Panel conducted the following:

1) Regular reviews of the Performance Management Policy, Procedure, and application framework at SALGA – revisited as necessary to test relevance and to enquire how it is being applied.

300 SALGA Annual Report | 2011/12 4.8 INDIVIDUAL PERFORMANCE 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 ﬁ nancial year.

In all of the above, the Panel provided considerable input and coaching of the CEO and the executive team to ensure that the approach of SALGA and the execution of Performance Management reﬂ ects:

• Strategic rigour in line with best practice in both the public and private sector

• Clear alignment of key performance areas and performance indicators from the strategy through to the individual performance scorecards of the CEO and all of his direct reports.

• The focus has been to ensure that the evolving strategy and the resultant organisational and individual scorecards contain KPAs and performance indicators that are measurable and that relate to the real impact of the efforts of SALGA at local and national government levels. b. Performance

In the context of the above, the Panel has reviewed (and frequently suggested improvements) to the performance scorecards at the Corporate, CEO, and Senior Executive levels. The Panel has then signed off on these for submission to the CEO and the NEC respectively.

The Panel oversees the Performance Assessment process for all direct reports to the CEO and monitors this: (a) as input to annual reward decisions and (b) as learning and coaching for the individuals concerned in aligning performance with strategy.

The Panel directs the Performance Assessment of the CEO by reviewing evidence and submissions relating to all of the Key Performance Areas of the EO and related KPIs and by interviewing and coaching the CEO in intensive sessions. These reviews are done mid-term and at year-end. In all cases, the Panel assesses any requests for deviation and makes its recommendations regarding these to the NEC through the Chairperson of SALGA. c. Remuneration

The Panel conducts an annual review of all salary adjustments and the overall increase budget and makes recommendations to the CEO regarding the ﬁ nal outcome thereof. In doing so, the Panel reviewed the integrity of the Remuneration Policy and framework, and has monitored the application thereof.

The Panel reviews all annual performance bonus recommendations and calculations, as well as salary levels for all roles and submits its ﬁ nal recommendations to the CEO for lower levels and to the NEC via the Chairperson of SALGA for the CEO himself and his direct reports. In all cases, the Panel assesses these in the light of:

SALGA Annual Report | 2011/12 301 4.8 INDIVIDUAL PERFORMANCE 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:

• Approval of performance agreements and scorecards of the CEO and Senior Executives for the ﬁ nancial year.

302 SALGA Annual Report | 2011/12 4.8 INDIVIDUAL PERFORMANCE MANAGEMENT

• Current review of performance scorecards for the ﬁ nancial years as part of the process to ensure alignment with the new SALGA strategies and plans’

• Correction of salary anomalies of SALGA employees and alignment in terms of the current approved salary framework at each annual review of remuneration practice.

• Job grading and alignment of salaries of SALGA employees in terms of the proposed salary framework – monitoring consistent application. 4.8.5 SPECIFIC CHALLENGES

The key challenges facing SALGA, and as a consequence also facing the Panel in its exercising oversight of Performance Management and Remuneration, included:

1. Managing the evolution and constant improvement in the management of performance:

a. The Performance Management policy and framework was launched essentially at the time the Panel commenced its term of ofﬁ ce.

b. Recognising that Performance Management is always a “work in progress” and will improve yearly if the process is diligently applied, oversight is applied and if the CEO and his direct reports are regularly coached and supported in improving each of the following aspects of Performance Management:

i. Building logical scorecards from the strategy each year and ensuring that these can be cascaded.

ii. Ensuring that Key Performance Indicators and Targets are set that can be measured, assessed and cascaded.

iii. Ensuring that coaching occurs at regular intervals so as to monitor real performance during each year.

c. Ensuring that the ﬁ nal performance scores for each of the direct reports of the CEOs were consistent with actual performance.

d. Conducting rigorous performance assessment and coaching sessions with the CEO to cover his performance as well as that of SALGA.

2. Recognising the transition from 2008 to 2011 whereby SALGA has moved from “getting its house in order” and instituting internal structures and governance to focusing on how it achieves and then measures its own real impact at municipal and national level. These measures represent clear indicators of development and policy impact in terms of the SALGA mandate and strategy. Thus the evolving focus of performance management must be on the effectiveness of SALGA as an organisation.

3. Remaining cognisant of the constraints that the current funding model and approaches imposes on its ability to build and maintain its own capacity and then to deliver capacity effectively at the local government level.

4. Providing input to the newly-elected NEC on performance and remuneration issues within SALGA.

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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.

304 SALGA Annual Report | 2011/12 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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4.9.1.1 SALGA National Conference

SALGA NATIONAL CONFERENCE

Date of Conference 29 SEPTEMBER TO 1 AUGUST 2011

Venue DURBAN INTERNATIONAL CONFERENCE CENTRE

The SALGA national conference is the highest decision-making body of the organisation and is held every ﬁ ve years following the local government election. Chief among the powers vested in the national conference are to elect ofﬁ ce bearers; endorse the appointment of provincial nominees to the National Executive Committee (NEC); and approve the strategic programme and business plan of SALGA for the period up to the next conference.

The national conference is also empowered to consider the audited ﬁ nancial statements of the previous year, approve the organisation’s budget, and review the ﬁ nancial performance of SALGA. The national conference further presents an opportunity for local government leaders to debate issues, review and adopt strategies and plans and to seek better methodologies to optimise municipal service delivery.

SALGA held its National Conference under the theme:

“Building Municipal and Social Cohesion for quality and sustainable services: 2011 and beyond”

All 278 South African municipalities convened at the Durban International Convention Centre from 29 August to 01 September 2011. The objectives of the conference were to:

1. Reﬂ ect on the progress made and challenges faced by the sector during the last term;

2. Critically examine current challenges facing the sector and recommend appropriate mechanisms to address the same Adopt Audited ﬁ nancial statements in respect of the 2009/10 and 2010/11 ﬁ nancial years;

3. Approve the programme of action, business plan/budget of SALGA as approved by the NEC for the 2011/12 ﬁ nancial year;

4. Review the organisational ﬁ nancial performance of SALGA;

5. Elect members of the National Executive Committee; and

6. Establish/review the oversight bodies of SALGA as may be required by law.

The National Conference was attended by approximately 2 000 delegates including the Minister for Planning, Honourable Trevor Manuel representing the Presidency; the acting Minister for Cooperative Governance and Traditional Affairs, Honourable Nathi Mthethwa, and the Premier of Kwazulu-Natal, Dr Zweli Mkhize, Deputy Minister Yunus Carrim, Deputy Speaker of parliament, Honourable Nomaindia Mfeketho, Chairperson of the Portfolio Committee on CoGTA, Mr Letchesa Letsoli, the Chairperson of the Independent Electoral Commission, Dr Brigalia Bam and members of the Kwazulu-Natal Provincial Cabinet, provincial government, key government agencies as well as representatives of the private sector, traditional leaders and other organs of civil society.

The programme of the Conference included a Round Table Public Debate, Seven Commissions focussing on the Stable Municipal Governance, Councillor Support, Municipal Service provision, Climate Change, Community Development, LED and Planning, Municipal Finance, and Labour and Capacity building and addressing issues of corruption in the public sector.

The Conference also included exhibitions, excursions and site visits and a parallel side event focussing on Climate Change and COP17. The outcomes of the conference, in addition to a newly elected leadership, is a set of resolutions that will guide the programmes and functioning of the organisation for the next ﬁ ve years

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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, conﬂ icts or gaps in current or new policies, strategies and implementation programmes affecting the sector and contribute to ﬁ nding an appropriate solution.

• To make policy recommendations to the NEC or the PEC (as applicable) and submit regular reports on progress on programme implementation.

• To ensure that working group members participate effectively in political forums and intergovernmental structures.

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The NEC determines the number of working groups based on, inter alia, the key functional areas of local government. Accordingly, the NEC then clusters the functions of the working groups at national and provincial level to facilitate strategic alignment.

Prior to the SALGA National Conference and NEC LEgptla held in August and November 2011, SALGA had established six national working groups, which were chaired by an elected NEC member as follows:

• Economic Development, Planning and Environment - Cllr B Mahlangu

• Municipal Finance and Corporate Administration -Cllr S Molokoane- Machika

• Social Development, Health and Safety - Cllr F Maboa- Boltman

• Municipal Services and Infrastructure - Cllr W Johnson

• Human Resource Development - Cllr S Mashilo

• Governance, Intergovernmental Relations and International Relations - Cllr J Matlou

The national working groups are mirrored at the provincial level to ensure synergy and coordination of the issues. The consolidation of the perspectives of the provincial working groups by the national working groups, underpins the process of arriving at a mandated position for SALGA to articulateWorking groups were reconstituted after the National Conference at the NEC Lekgotla held in November 2011.

Nine working groups were established at a national level and eight at a provincial level. The following working groups have now been established and replicated at a provincial level, apart from the one dealing with issues of councillor support and welfare.

1. Economic Development and Planning

2. Climate Change, Environmental affairs and Sustainability

3. Municipal Finance

4. Community Development

5. Municipal Trading Services

6. Municipal Infrastructure Planning

7. Human Resources Development and Collective Bargaining

8. Governance and Intergovernmental Relations

9. Councillor Welfare and Support and International Relations

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The chairperson of the national working groups have been appointed as follows:

• Cllr D Mazibuko: Economic Development and Planning Working Group

• Cllr F Maboa-Boltman: Community Development Working Group

• Cllr C Neethling: Municipal Trading Services Working Group

• Cllr BE Moloi: Municipal Infrastructure Planning Working Group

• Cllr S Mashilo: Human Resources Development and Collective Bargaining Working Group.

• Cllr J Matlou: Governance and Intergovernmental Relations Working Group.

• Councillor Welfare and Support and International Relations Working Group (from the W Cape, pending the outcome of the co-option process).

• Climate Change, Environmental affairs and Sustainability Working Group (from E Cape pending the outcome of the co- option process).

• Municipal Finance Working Group (Cllr S Pillay who has been, subsequently, co-opted onto the NEC).

During the reporting period, the national working group meetings took place as follows:

DATE WORKING GROUP

20 February 2012 Human Resource Development and Collective Bargaining

Municipal Infrastructure and Services

22 February 2012 Community Development

Municipal Finance and Corporate Administration

Municipal Infrastructure and Services

23 February 2012 Governance, Intergovernmental Relations and International Relations/TASK TEAM

Community Development

Municipal Infrastructure and Services

24 February 2012 Governance, Intergovernmental Relations and International Relations

Economic Development and Planning

20 March 2012 Municipal Institutional Development

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It should be noted that during the period under review:

Working group meetings were not convened as per the SALGA constitution, due to the municipal elections held in May 2011, and subsequent reconstitution of the SALGA governance structures.

1. The 2011 Local Government Elections had the following impact on the convening of meetings;

1.1 During the period, from the announcement of the election date and the actual elections, i.e. February to May 2011, the local government sector including councillors and municipalities were primarily and almost only focused on preparations and campaigning for the said elections and it was therefore not possibly to convene meetings or achieve a quorum when meetings were convened during this period.

1.2 From the election date (25 May 2011) to the point of convening SALGA provincial and national conferences (July to September), SALGA was in a leadership transition as result of non-returning councillors. The SALGA Constitution makes provision for the convening of provincial conferences (within 60 days of elections) and National Conference within 90 days of elections, to re-constitute the governance structures (PEC and NEC) of the organisation.

1.3 With regard to working groups and working group chairpersons; it is only after the convening of Provincial Conferences and National Conference that Working Group Chairpersons are appointed and Working Groups are re-constituted.

1.4 The appointment of Working Group Chairpersons was only effected at the respective Provincial Makgotla, which were held in October and November 2011

2. In addition to above the NEC Lekgotla, convened from the 16 to18 November 2011, resolved to change the number of working groups from six to eight at a provincial level and nine at a national level, with simultaneous changes to the functional areas of the new working groups.

3. The above circumstances has resulted in meetings of governance structures not being convened as per the SALGA Year- planner, speciﬁ cally as it relates to the convening of working group meetings at a national and provincial level.

4. It should be noted that one of the objectives of the SALGA Governance Framework and the scheduling of meetings is to ensure that the organisation, consults its membership as widely as possible in the development and implementation of policies and programmes.

This objective was achieved during the 2011-12 ﬁ nancial year through the provincial and national conferences, as the highest decision making bodies of the organisation. The conference and lekgotla processes in 2011 has resulted in a new strategic plan for SALGA as well a new working group conﬁ gurations at a national and provincial level, that has started guiding the convening and functioning of meetings in 2012.

4.9.2.2 PROVINCIAL GOVERNANCE MEETINGS FOR 2011/2012 FINANCIAL YEAR

Each SALGA Provincial Ofﬁ ce had a Provincial Members Assembly during the year under review as per the SALGA Constitution where the provinvial leadership (PEC) was elected:

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SALGA EASTERN CAPE

SALGA EASTERN CAPE PROVINCIAL CONFERENCE

DATE OF CONFERENCE 20 to 22 JULY 2011

VENUE NELSON MANDELA METRO

The conference was attended by 42 municipalities with 208 delegates from the municipalities and 32 stakeholders. The conference was addressed by the MEC of the Local Government and Traditional Affairs, Honourable Qoboshiyane, where he emphatically highlighted that the mandate of councillors and ofﬁ cials is to deliver services in a manner that encourages developmental government responding to the needs of the people, a local government that allows people to participate in full council meetings, ward committee meetings as well as IDP Processes.

The MEC also urged the conference to be a platform to discuss how best the Eastern Cape municipalities can manage their fi nances in a way to ensure potent fi nancial integrity in municipalities, to ensure proper expenditure, and ensure effective fi nancial controls and systems in all Eastern Cape municipalities. The Secretary of the ruling party, Mr Oscar Mabuyane, also addressed the conference highlighting priorities of the ruling party. These are building of local economies to create more employment and sustainable livelihoods. He urged the conference to emerge with a very clear programme for job creation at a local level, guided by the New Growth Path.

The LED should focus more on unlocking development potential through systematically building productive capability in sectors where there is a competitive advantage. Focus should be on leveraging signiﬁ cant public (including SoEs and DFIs) and private sector resources to the underdeveloped parts of the province. He also emphasised that a stable local government is a pre-requisite for building viable municipal economies and sustainable communities.

The SALGA Eastern Cape Chairperson also gave a political overview of the association highlighting the diminished powers of PEC in matters like staff appointments, remuneration, access to ﬁ nances, and other related staff career-incidents due incorrect implementation of centralisation. The current arrangement of centralisation is structured in the manner that the PEC cannot recommend nor prompt a review of remuneration levels of staff.

He also alluded the municipalities in their support with regard to SALGA programmes. The Chairperson also applauded the good working relations between SALGA and the MEC for DGLTA. The Provincial Executive Ofﬁ cer gave some highlights on the organisational performance, development of partnerships with different organisations, participation on IGR structures, and the progress report of SALGA Eastern Cape Directorates. The conference resolved on a number of issues which will assist local government to serve the community by delivering services to all the Eastern Cape Communities.

PEC MEETINGS IGR WORKING GROUP MIS WORKING GROUP

Dates Dates Dates

15 July 2011 23 August 2011 16 September 2011

2 August 2011 1 February 2012 14 February 2012

27 September 2011 30 March 2012

6 November 2011

12 January 2012

8 February 2012

15 March 2012

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COMMUNITY DEVELOPMENT MID WORKING GROUP LED WORKING GROUP 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

DATE OF CONFERENCE 15 to 16 AUGUST 2011

VENUE BLACK MOUNTAIN HOTEL, THABA NCHU MANGAUNG METRO MUNICIPALITY The 5th Provincial Conference of SALGA Free State held from 14 to 16 August 2011 at Black Mountain Hotel, Thaba Nchu in Mangaung Metropolitan Municipality proceeded over two days and was attended by more than 136 delegates from 24 member municipalities.

The conference had various presentations made by guests, SALGA Free State, and SALGA National which covered:

• 2011 Statistics South Africa Population Census

• SALGA Free State Organisational Report

• Proposed SALGA National Constitutional Amendments

• Proposed SALGA Free State Constitutional Amendments

• 2011/12 Business Plan and Budget and Audited Financial Statement 2010/11 by SALGA National

The provincial conference was attended by delegates from 24 member municipalities in the province, government representatives, political organisations, and formations including other civil society structures, representatives from both National SALGA, and other provincial ofﬁ ces.

The main speakers at the conference comprised of the Free State Premier, MEC Cooperative Governance, Traditional Affairs and Human Settlements, SALGA NEC representative, SALGA CEO, and Executive Mayor of the hosting Municipality. Municipalities used the Provincial Conference to review their goals and reﬂ ect on their achievements.

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The Department of Health presided over the candle-lighting ceremony and indicated that the ceremony is primarily linked to the HIV/AIDS pandemic. For the purpose of the ceremony, he requested three guests to assist him in lighting the three candles (white, red, and yellow). The hosting Mayor, the Executive Mayor of Mangaung Metropolitan Municipality welcomed all delegates and guests to the Conference.

He stated that Thaba-Nchu is a place of birth of well-known icons such as Dr. Khuzwayo and Father Clairehood. SALGA Free State received the message of support from Cllr. B Mahlangu who was representing SALGA NEC. In her opening remarks Cllr. Mahlangu provided a brief background of the word democracy. She stated that on 18 May 2011, people went out in numbers to express their democratic will and the results are indicative of overwhelming support for the principle of democracy.

The MEC of Co-operative Governance, Traditional Affairs and Human Settlements mentioned that her Department assesses and checks itself on a constant basis in terms of the work it is supposed to discharge in municipalities. She was conﬁ dent that the Department has assisted a lot of municipalities that needed support. The keynote address was delivered by the Premier of the Free State. In his opening remarks, the Premier seized the space to welcome delegates, guests, media, and sponsors to the conference. He stated that recently the provincial leadership visited Free State Bursary holders in KwaZulu-Natal, Western Cape, and Gauteng.

There was a presentation on the CENSUS 2011 that Statistics South planned to undertake in the province in October 2011. The presenter indicated that the population census consists of collecting, compiling, evaluating, and publishing demographic information collected from the households. The Deputy Chairperson of SALGA Free State PEC, Cllr. Dr. Mzwangwa presented the organisational report of the Provincial Executive Committee to Conference.

Cllr. Dr Mzwangwa commenced by highlighting that the report is presented at a time when SALGA has just moved into the third term of its developmental local government after successful local government elections held on 18 May 2011. He stated that the report is presented at a historic moment when women’s month was celebrated in the country.

He indicated that the conference was supposed to have been held within sixty days after the local government elections. However, owing to the visit of the NCOP to the province the date was changed. The presentation on the proposal SALGA constitutional amendment included the following areas:

• Deﬁ nitions – Working Groups

• Role and Mandate of SALGA (new article), members’ compact (new article), code of conduct (new article)

• Membership fees and levies, Participation and voting (new article)

• National Members Assembly

• National Executive Committee

• Working Groups (new article)

• The administration (new article)

• Provincial Executive Members

• Constitutional Amendments

• Rules of Procedure (new article)

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After presentations, the conference broke into six commissions to discuss the following programmatic areas:

• Commission 1: Governance and intergovernmental relations

• Commission 2: Municipal infrastructure services

• Commission 3: Municipal ﬁ nance and internal administration

• Commission 4: Municipal institutional development

• Commission 5: Community development

• Commission 6: Economic development and planning

PEC MEETINGS Municipal Infrastructure Services Community Development WORKING GROUP WORKING GROUP

Dates Dates Dates

30 September 2011 02 March 2012 09 December 2011

11 November 2011 09 February 2012

24 January 2012

08 March 2012

Governance and IGR Municipal Institutional Development Municipal Finance WORKING GROUP WORKING GROUP WORKING GROUP

Dates Dates Dates

21 February 2012 29 November 2011 06 December 2011

03 February 2012 08 February 2012

02 March 2012 Technical

Economic Development and Planning WORKING GROUP

Dates

13 October 2011

10 February 2012

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SALGA GAUTENG

SALGA GAUTENG PROVINCIAL CONFERENCE

DATE OF CONFERENCE 28 to 29 JULY 2011

VENUE VELMORE HOTEL

Following the general local government elections which were held on 18 May 2011, the National Executive Committee resolved that National Conference to be held on 29 August to 02 September 2011 in KwaZulu Natal province. Furthermore, the NEC resolved that provincial conferences should be convened between July and August 2011. In light of the above SALGA Constitutional prescripts, the Provincial Executive Committee resolved that the provincial conference be convened on 28 and 29 July 2011 at Velmore Hotel- Erasmia in the City of Tshwane. The objectives of the provincial conference were to:

• Elect the members of the Provincial Executive Committee for the new term of ofﬁ ce

• Establish and review the SALGA oversight bodies as may be required by law

• Consider audited ﬁ nancial statements in respect of the 2009/10 ﬁ nancial period

• Approve the business plan and the budget of SALGA Gauteng for 2011/12 ﬁ nancial year, and

• Review the ﬁ nancial performance of SALGA.

Over and above the set objectives, the conference also considered other pertinent key challenges and policy development relevant to the developmental local government. Furthermore, different stakeholders presented messages of support to SALGA and provided guidance on how SALGA could perform better in improving the lives of its communities.

VELMORE DECLARATION (29 JULY 2011)

We, the members of SALGA-Gauteng, gathered here on 29 July 2011, on the occasion of the 3rd SALGA-Gauteng Provincial Conference, guided by our mission to be at the cutting edge of service delivery and further guided by the theme ‘’ Reigning the Quest for Municipal and Social Cohesion towards a better standards of living.’’ Notwithstanding the challenges faced by member municipalities within the sector, and acknowledging the recent local government election which has ushered new leadership, hereby declare to note the following key resolutions:

• That SALGA shall engage sector departments on the development of a structured planning approach.

• That SALGA shall partner with the provincial government to form a Gauteng City Region Council.

• That SALGA-Gauteng should take the proposed constitutional amendments to the National Conference as adopted by the Provincial Conference

• That SALGA-Gauteng shall lobby government to review the vertical division of revenue.

• That SALGA shall lobby for the introduction of legislation on business tax at local level.

• That SALGA shall lobby for a resolution of challenges on councillors’ remuneration to be compatible with that of the national and provincial ofﬁ ce bearers.

• That SALGA-Gauteng should collect all membership levies and allocate 50 percent to national ofﬁ ce, the remainder which shall be used for programme implementation.

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• That SALGA shall engage national ministers and MECs on Section 79 committee (including MPACs) chairpersons’ remuneration and recognition.

• That SALGA shall lobby for a review of the role of district municipalities and possibly re-look at the possibility of a single tier system of local government in Gauteng.

• SALGA shall lobby for a single election system at local level.

• SALGA shall lobby for the ability of councillors’ to exercise choice in joining various pension funds.

• That SALGA shall lobby for a fund for the refurbishment of ageing infrastructure.

• Ensure more focus on energy efﬁ ciency and renewable energy in municipalities.

• SALGA should develop a Human Resource Policy Framework to establish norms and standards.

• That the Employee Wellness programme should be extended to ensure a comprehensive programme of EAP.

• Those SALGA co-ordinates with the Department of Public Services and Administration with the view to develop a comprehensive Anti-Corruption Strategy and Peer Review mechanism for local government.

• That SALGA reafﬁ rms the scares and critical skills strategy done in partnership with Department of Local Government and Housing (DLG and H).

• That SALGA shall partner with a reputable body with a view to professionalise Human Resources in local government.

• That SALGA shall review the current system of appointment of arbitrators and use CCMA arbitrators.

• SALGA shall review the Collective Bargaining Strategy to ensure that the matters pertaining to the bargaining arrangements of Municipal Owned Entities are addressed.

• SALGA should enhance the role of the LLFs and ensure a mutual gains approach in all bargaining processes.

• SALGA shall convene a special workshop in the current ﬁ nancial year to deal with all outstanding collective bargaining matters.

• SALGA should pursue the possibility of establishing an Accreditation model to be managed by an independent body for the determination of Institutional Capacity of municipalities to determine the viability of municipalities.

• SALGA should draft policies to facilitate the implementation of the Municipal Systems Amendment Act.

• SALGA should increase capacity to ensure education for both men and woman on gender mainstreaming.

• SALGA should advocate for municipalities to be funded to deal with effects of immigration.

• SALGA should encourage mayors to play an active role in AIDS Councils.

• SALGA should encourage municipalities to implement national imperatives relating to youth development.

• SALGA to advocate for funding for local municipalities planning and responses to disasters and climate change.

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• SALGA to advocate for arts, culture, heritage, sports, and recreation programmes that are run through municipalities

• Review of the decision to provincialise primary health care, the province should capacitate municipalities to take their responsibilities of PHC and allocate sufﬁ cient funding for payment of salaries.

• SALGA to assist municipalities to develop local strategies to monitor the implementation of Millennium Development Goals (MDGs).

• SALGA to assist municipalities in the formation of street committees and Community Policing Forums (CPFs).

PEC MEETINGS WORKING GROUP: 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: WORKING GROUP: WORKING GROUP: Municipal Finance MIS 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: WORKING GROUP: WORKING GROUP Councillor Support and Welfare MTS 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

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SALGA LIMPOPO

SALGA LIMPOPO PROVINCIAL CONFERENCE

DATE OF CONFERENCE 27 to 29 JULY 2011

VENUE BOLIVIA LODGE

The conference started with round table discussions on the following topics:

• Municipal audit report

• Municipal debts

• Service delivery challenges

Panel members were:

• CEO of SALGA on teleconference,

• Mr S Nkahle Acting ED

• Prof lJ Tefo, HSRC

• Mr E Muhammed, AG

• Mr J Liebbrandt, PWC

• Mr D Ngobeni, Provincial Legislature

The second day started with a prayer and candle lighting for people living with HIV and AIDS. A leadership talk was done by Dr. Tibane and presentations by the Municipal Demarcation Board, National Planning Commission, following by SALGA reports and commissions. The event was graced by four MECs, executive mayors and mayors, speakers, chief whips, councillors, traditional leaders, and private companies.

The gala dinner was held the same evening as when municipal awards were held. The provincial house addressed delegates, councellors and ofﬁ cials won prizes through different sponsorships.

The last day was a report back form commissions and elections for new Provincial Executive Committee members and presentation of the declaration.

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PEC MEETINGS WORKING GROUP: WORKING GROUP: MUNICIPAL COMMUNITY DEVELOPMENT 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 WORKING GROUP: WORKING GROUP: INSTITUTIONAL DEVELOPMENT LOCAL ECONOMIC DEVELOPMENT 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

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SALGA MPUMALANGA

SALGA MPUMALANGA PROVINCIAL CONFERENCE DATE OF CONFERENCE 02 to 03 August 2011

VENUE LOSKOP DAM, AVENTURA RESORT

The Provincial Conference was held from 02 to 03 August 2011at Aventura Resort Loskopdam, in the Steve Tshwete Municipality. The theme of the provincial conference was as follows:

“Building Municipal and Social Cohesion for quality and sustainable services: 2011 and beyond”.

The converfence was attended by 20 member municipalities who were in good standing in terms of the constitution. As provided in the constitution, all 20 members indicated which of the four delegates in attendance had the voting right. Pixley Ka Isaka Seme local municipality did not attend the conference.

The ﬁ rst day was dedicated to speeches where the keynote address was to be delivered by the Honourable Premier of the Province. However, in his absence, this was done by the Member of the Executive Council for Cooperative Governance and Traditional Affairs, Mr. Madala Masuku. The open session saw a number of presentations being done from StatsSA, SASRIA, Municipal Councillors’ Pension Fund, and the Auditor General.

Following the completion of these presentations, the internal reports conference went into commissions until an hour before the Municipal Excellence Awards. Instead of the normal election process, the conference opted for the submission of a list of thirteen (13) candidates, including the members they are co-opting. Delegates mutually agreed to the list presented.

Municipal Infrastructure and Services PEC Meetings Community Development Working Group Working Group

Dates Dates Dates

20 July 2011 (S) 17 November 2011 17 November 2011

01 August 2011 (S) 06 March 2012

18 August 2011 (S)

26 September 2011 (S)

13 December 2011 (O)

Human Resources Development Working Governance and Intergovernmental Municipal Finance Working Group Group Relations Working Group

Dates Dates Dates

16 November 2011 18 November 2011 29 November 2011

02 March 2012 09 March 2012 08 March 2012

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Economic Development Planning Working Group Dates 29 November 2012 (Teleconference) 06 March 2012

SALGA NORTHERN CAPE

PEC MEETINGS Community Development Municipal Infrastructure and Services

Dates Dates Dates

23 September 2011

01 November 2011 15 February 2012 16 February 2012

19 January 2012

29 February 2012

ED and P G, IGR and IR MUNICIPAL FINANCE Dates Dates Dates 13 February 2012 13 February 2012 13 February 2012

MID

Dates

27 October 2012

16 February 2012

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SALGA NORTH WEST

SALGA NORTH WEST PROVINCIAL CONFERENCE

Date of Conference 3-4 August 2011

Venue Rustenburg Orion Safari Lodge

Narrative

Economic Development and Planning 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

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SALGA WESTERN CAPE

PEC MEETINGS WORKING GROUP WORKING GROUP

Dates Dates Dates

Municipal Infrastructure services 18 Economic Development 13 April 2012 October 2012 20 October 2012

Municipal Infrastructure services 01 Economic Development 08 July 2011 February 2012 10 February 2012

02 August 2012

Human Resources Management 20 Community Development 18 August 2011 October 2012 19 October 2012

Human Resources Management 15 Community Development 22 September 2011 (Lekgothla) February 2012 1 February 2012

23 September 2011

Governance and Intergovernmental Municipal Finance 4 November 2011 Relations 18 October 2011 19 October 2012

Governance and Intergovernmental Municipal Finance 31 Jan 2012 Relations 08 February 2012 20 February 2012

30 March 2012

SALGA Annual Report | 2011/12 323 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 ﬁ nancial year to 34 percent in the 2011/2012 ﬁ nancial year. The table below summarises posts on the approved staff establishment of SALGA:

324 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 34% Sub -Total -Total Males Foreign Nationals Males Sub -Total -Total Females Foreign Nationals Females 4 1 0 5 8 0 0 0 8 13 3 01 0 4 3220 0 7 11 ACIW ACIW 61 3 1 10 0 75 8 1 0 0 0 9 84 51 3 1 4 0 59 35 4 0 2 0 41 100 02 130123 0 3733324 4279 SALGA Advisors, Executive and PEOs Specialists Categories Programme Consultants, Practitioners, and Cleaners Coordinators, Occupational and Specialists Secretaries, and CEO, COO, CFO, Admin Assistants PAs, Ofﬁ cers, and Ofﬁ PAs, Executive Directors, Manager, Managers, Manager, Messengers, Drivers, Grand Total 154 9 5 19 1 188 97 13 4 8 0 122 310 Temporary Employees Temporary 1 1 1 1 2

Making Management Vacancy Rate Vacancy Decision-Making Skilled Technical Skilled Technical Semi-Skilled and and Experienced Top Management Top and Academically Qualifi ed Workers, Qualifi Approved PositionsApproved 470 Senior Management Directors, Specialists 4 1 2 0 7 9 3 2 0 14 21 Specialists and Mid- Junior Management, Occupational Levels and Superintendents As at 31 March 2012March 31 at As Number of Vacanciesof Number 160 Unskilled and Defi ned Unskilled and Defi Supervisors, Foremen, Discretionary Decision- Professionally Qualifi ed Professionally Qualifi Table 1 Table

SALGA Annual Report | 2011/12 325 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 37% Foreign Nationals ng KwaZulu-Natal) as ed during the reporting Males Foreign Nationals Females 1000 04102 2210 0 0 9302 6 0 21 3000 0 5000 0 8 1001 0 3 5 AC IW AC IW 21 112110 9121 0 28 026104 4000 0 35 71 017011 9101 0 30 Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Executive Secretaries, Admin Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Messengers, Drivers, and Cleaners Advisors, Consultants, Practitioners, Grand Total 64 3 2 8 1 41 7 3 4 0 133 Temporary Employees Temporary

Vacancy Rate Vacancy Decision-Making Decision-Making Top Management Top Mid-Management Approved PositionsApproved 212 Senior Management Directors, Specialists Occupational Levels SALGA Occupational Categories Skilled Technical and Skilled Technical As at 31 March 2012March 31 at As Number of Vacanciesof Number 79 Unskilled and Defi ned Unskilled and Defi Professionally Qualifi ed and Professionally Qualifi Experienced Specialists and Semi-Skilled and Discretionary Foremen, and Superintendents Academically Qualifi ed Workers, ed Workers, Academically Qualifi Junior Management, Supervisors, STAFF COMPLEMENT CATEGORISED STAFF ces had to be capacitat ces in all provinces. These offi ce in Pretoria with additional offi SALGA operates from the national offi period. The tables below summarise the breakdown of fi lled positions per offi ce (national offi ce and eight provinces, excludi ce (national offi lled positions per offi period. The tables below summarise the breakdown of fi at 31 March 2012: 2 Table OFFICE SALGA NATIONAL

326 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 31% Foreign Nationals Males 0000 0 0 0000 0 0 Foreign Nationals Females 0000 0 0000 0 0 3001 0 2000 0 6 8000 0 2000 0 10 4100 0 0000 0 5 AC IW AC IW Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Executive Secretaries, and Admin Messengers, Drivers, and Cleaners 0 0 0 0 0 Advisors, Consultants, Practitioners, Grand Total 16 1 0 1 0 4 0 0 0 0 22 Temporary Employees Temporary 1 0 1

Vacancy Rate Vacancy Decision-Making Decision-Making Top Management Top Mid-Management Approved PositionsApproved 32 Senior Management Directors, Specialists 0 0 0 0 Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 10 Unskilled and Defi ned Unskilled and Defi Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Experienced Specialists and Semi-Skilled and Discretionary Foremen, and Superintendents Skilled Technical and Academically Skilled Technical Table 3 Table SALGA EASTERN CAPE

SALGA Annual Report | 2011/12 327 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 18% Foreign Nationals Males Foreign Nationals Females 0000 0 0000 0 0 6000 0 6000 05000 0 12 1000 0 6 3000 0 5000 0 8 1000 0 00000000 0 0 1 0000 0 0 AC IW AC IW Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Executive Secretaries, and Admin Messengers, Drivers, and Cleaners Advisors, Consultants, Practitioners, Grand Total 15 0 0 0 0 12 0 0 0 0 27 Temporary Employees Temporary 0 0 0

Management Vacancy Rate Vacancy Decision-Making Decision-Making Top Management Top Approved PositionsApproved 33 Senior Management Directors, Specialists Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 6 Unskilled and Defi ned Unskilled and Defi Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Semi-Skilled and Discretionary Foremen, and Superintendents Experienced Specialists and Mid- Skilled Technical and Academically Skilled Technical Table 4 Table SALGA FREE STATE

328 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 26% Foreign Nationals Males 9000 0 25 Foreign Nationals Females 0000 0 00000000 0 0 0 0000 0 0 3000 0 4000 0 7 5001 0 3000 0 9 6000 0 1000 0 7 1000 0 1000 0 2 AC IW AC IW Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Executive Secretaries, and Admin Messengers, Drivers, and Cleaners Advisors, Consultants, Practitioners, Grand Total 15 0 0 1 0 Temporary Employees Temporary 0 0 0

Making Management Vacancy Rate Vacancy Decision-Making Top Management Top Approved PositionsApproved 34 Senior Management Directors, Specialists Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 9 Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Semi-Skilled and Discretionary Foremen, and Superintendents Unskilled and Defi ned Decision- Unskilled and Defi Experienced Specialists and Mid- Skilled Technical and Academically Skilled Technical Table 5 Table SALGA GAUTENG

SALGA Annual Report | 2011/12 329 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 41% Foreign Nationals Males 0000 0 0 0000 0 0 Foreign Nationals Females 0000 0 1000 03000 1 0 4000 0 7 4000 0 3000 0 7 4000 0 0000 0 4 AC IW AC IW Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Executive Secretaries, Admin Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Messengers, Drivers, and Cleaners 0 0 0 0 0 Advisors, Consultants, Practitioners, Grand Total 11 0 0 0 0 8 0 0 0 0 19 Temporary Employees Temporary 0 0 0

Making Management Vacancy Rate Vacancy Decision-Making Top Management Top Approved PositionsApproved 32 Senior Management Directors, Specialists 0 0 0 0 0 Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 13 Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Semi-Skilled and Discretionary Foremen, and Superintendents Unskilled and Defi ned Decision- Unskilled and Defi Experienced Specialists and Mid- Skilled Technical and Academically Skilled Technical Table 6 Table SALGA LIMPOPO

330 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 35% Foreign Nationals Males 0000 0 0 0000 0 0 Foreign Nationals Females 1000 0 0000 0 1 2000 0 2001 0 5 3001 0 4000 0 8 5001 0 0000 0 6 AC IW AC IW Assistants Specialists Specialists Directors, and PEOs CEO, COO, CFO, Executive Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Executive Secretaries, and Admin Messengers, Drivers, and Cleaners 0 0 0 0 0 Advisors, Consultants, Practitioners, Grand Total 11 0 0 2 0 6 0 0 1 0 20 Temporary Employees Temporary 0 0 0

Making Management Vacancy Rate Vacancy Decision-Making Top Management Top Approved PositionsApproved 31 Senior Management Directors, Specialists 0 0 0 0 0 Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 11 Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Semi-Skilled and Discretionary Foremen, and Superintendents Unskilled and Defi ned Decision- Unskilled and Defi Experienced Specialists and Mid- Skilled Technical and Academically Skilled Technical Table 7 Table SALGA MPUMALANGA

SALGA Annual Report | 2011/12 331 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 39% Foreign Nationals Males Foreign Nationals Females 2 0 0 3 1 0 0 6 4 1 0 0 2 0 0 7 3 0 0 3 0 0 6 AC IW AC IW 9100 0 8100 0 19 0 0 0 0 0 0 Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Executive Secretaries, and Admin Messengers, Drivers, and Cleaners 0 0 0 0 0 0 0 0 0 0 0 Advisors, Consultants, Practitioners, Grand Total Temporary Employees Temporary 0 0 0

Vacancy Rate Vacancy Decision-Making Decision-Making Top Management Top Mid-Management Approved PositionsApproved 31 Senior Management Directors, Specialists 0 0 0 0 0 0 0 0 0 0 0 Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 12 Unskilled and Defi ned Unskilled and Defi Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Experienced Specialists and Semi-Skilled and Discretionary Foremen, and Superintendents Skilled Technical and Academically Skilled Technical Table 8 Table CAPE SALGA NORTHERN

332 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 29% Foreign Nationals Males 0000 0 0 0000 0 0 Foreign Nationals Females 1000 0 0000 0 1 2001 0 4000 04000 0 7 5000 0 9 4001 0 0000 5 AC IW AC IW Assistants Specialists and Specialists Directors, and PEOs CEO, COO, CFO, Executive Coordinators, PA’s, Ofﬁ cers, and Ofﬁ Coordinators, PA’s, Programme Manager, Managers, Programme Manager, Executive Secretaries, and Admin Messengers, Drivers, and Cleaners 0 0 0 0 0 Advisors, Consultants, Practitioners, Grand Total 11 0 0 2 0 9 0 0 0 0 22 Temporary Employees Temporary 0 0 0

Vacancy Rate Vacancy Decision-Making Decision-Making Top Management Top Mid-Management Approved PositionsApproved 31 Senior Management Directors, Specialists 0 0 0 0 0 Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 9 Unskilled and Defi ned Unskilled and Defi Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Experienced Specialists and Semi-Skilled and Discretionary Foremen, and Superintendents Skilled Technical and Academically Skilled Technical Table 9 Table WEST SALGA NORTH

SALGA Annual Report | 2011/12 333 4.10 HUMAN RESOURCES OVERSIGHT REPORT

Total 32% Foreign Nationals Males 0000 0 0 0000 0 1 Foreign Nationals Females 0000 0 0010 0 1 0011 0 2102 0 7 0201 0 0300 0 6 2103 0 0100 0 7 AC IW AC IW 2415 0 3512 0 23 Assistants Specialists Specialists Directors, and PEOs CEO, COO, CFO, Executive Executive Secretaries, Admin Coordinators, PAs, Ofﬁ cers, and Ofﬁ Coordinators, PAs, Programme Manager, Managers, Programme Manager, Messengers, Drivers, and Cleaners 0 1 0 0 0 Advisors, Consultants, Practitioners, Grand Total Temporary Employees Temporary 0 1 1

Making Management Vacancy Rate Vacancy Decision-Making Top Management Top Approved PositionsApproved 34 Senior Management Directors, Specialists 0 0 0 0 0 Occupational Levels SALGA Occupational Categories As at 31 March 2012March 31 at As Number of Vacanciesof Number 11 Qualifi ed Workers, Junior ed Workers, Qualifi Management, Supervisors, Professionally Qualifi ed and Professionally Qualifi Semi-Skilled and Discretionary Foremen, and Superintendents Unskilled and Defi ned Decision- Unskilled and Defi Experienced Specialists and Mid- Skilled Technical and Academically Skilled Technical Table 10 Table SALGA WESTERN CAPE

334 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

NEW APPOINTMENTS

A total of 75 positions were advertised both internally and externally. Different sources were used to identify suitably qualiﬁ ed candidates. Those sources were:

• Newspaper adverts

• Recruitment agencies

• Existing pool of applicants for similar positions.

In an effort to cut on recruitment costs, the HR Unit, in collaboration with the Marketing Unit within SALGA, made use of the SALGA Web site as a point of reference for all positions that have been advertised. What appeared in the print media was only the position titles with potential candidates being referred to the SALGA Web site. The positive returns on the new approach had been savings in the region of approximately 81 percent on recruitment costs.

Where SALGA could have paid approximately R35 000 for the advertisement of each position given that about 75 positions were advertised during the reporting period, SALGA saved approximately R2.1-million from the R2.6-million it could have spent on advertisements alone. This excluded the “placement” costs that would have been claimed by the recruitment agency as the HR Unit also handled the majority of the responses.

During the period under review, approximately thirty four (32) new employees joined SALGA. Five (5) SALGA employees were promoted to the various positions that were advertised. This is in line with the management decision to recognise the internal talent within SALGA. Due to requests received regarding transfers, two (2) employees were transferred to various ofﬁ ces. Two (2) employees with scarce and critical skills were retained into the system. The tables below show how SALGA in the ﬁ nancial year 2011/2012 progressed in capacitating line functions:

Table 11

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Active Employees 316 307 305 310

New Employees* 1 4 6 21 32

Terminations 6 13 6 13 38

Vacancies 163 172 165 160

Approved Structure 479 479 470 470

Vacancy Rate 34% 36% 35% 34%

* Includes promotions

SALGA Annual Report | 2011/12 335 4.10 HUMAN RESOURCES OVERSIGHT REPORT

TOTAL MALES SUB TOTAL SUB TOTAL FOREIGN NATIONALS MALES SUB TOTAL TOTAL FEMALES FOREIGN NATIONALS FEMALES 0000 01000 0 0 10005000 0 1 0 0000 1 0 5 1 20005000 0 0 0 1 2 56101 2400 7 0 00000 8 0 6 2000 11 0 0 2000 2 0 10 2 2 70 017101 199400 0 13 32 ACI W ACI W SALGA CATEGORIES OCCUPATIONAL OCCUPATIONAL CEO, COO, CFO, Executive Directors, and PEOs Directors, Specialists Programme Manager, Managers, and Specialists Advisors, Consultants, Practitioners, Coordinators, cers, and Offi PAs, Specialists Executive Secretaries, and Admin Assistants Messengers, Drivers, and Cleaners GRAND TOTAL LEVELS OCCUPATIONAL OCCUPATIONAL Top Management Top Senior Management Professionally ed and qualifi experienced specialists, and mid-management Skilled technical and academically ed qualifi workers, junior management, supervisors, foremen, and superintendents Semi-skilled and discretionary decision-making Unskilled and ned decision- defi making As at 31 March 2012 Table 12 Table NEW APPOINTMENTS

336 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

TERMINATIONS

During the 2011/12 ﬁ nancial year, the services of a total of thirty-eight (38) employees were “terminated” for a number of reasons. Approximately 79 percent of the total terminations pertained to “resignations”, voluntary exit interviews were conducted. Below is a table showing the reasons for terminations:

Table 13

Type of Termination Number of Employees Percentage Against Staff Establishment

Contract Expiry 7 2%

Resignation 30 10%

Ill Health 0 0%

Dismissal 1 0%

Total 38 12%

The most common reason has been resignations with employees opting to leave for better benefi ts. In some instances, exit interviews were conducted with employees leaving the employ of SALGA but this was dependent on the willingness of the employees concerned as their termination reasons varied. There were employees that showed no interest in completing the exit questionnaire that would inform SALGA of any areas of improvement. Where questionnaires were completed, those were utilised to inform the HR strategy going forward. SALGA employs its employees on a fi ve year fi xed-term contract. The renewal of the employment contract is solely at the discretion of SALGA and this is informed by the value-add of the employee concerned. SALGA had to release approximately 2 percent of its employees through non-renewal of their employment contracts while one (1) employee was terminated through the disciplinary process following an act of misconduct. The other employees constituting 10 percent resigned from SALGA. During the reporting period, SALGA renewed 37 contracts of employment. A CEO memo on managing renewal and non-renewal of contracts of employment was developed and circulated to all employees. This was accompanied by the template to renew contracts of employment.The table below summarises contracts of employment renewals for the reporting period:

Table 14

PERIOD NUMBER OF RENEWALS

Quarter 1 15

Quarter 2 9

Quarter 3 12

Quarter 4 1

TOTAL 37

SALGA Annual Report | 2011/12 337 4.10 HUMAN RESOURCES OVERSIGHT 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 ﬁ nancial year 2011/2012. Some employees attended more than one training, resulting in a total of 374. Three (3) employees were successfully registered with Professional Bodies.A total of 17 employees were awarded an education assistance. It is SALGA policy to deduct equal repayments from employees concerned. From the total number of initiatives stipulated on the Workplace Skills Plan, a total of 25 training initiatives were implemented.

The table below summarises how SALGA has developed its employees:

338 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT 239 Total the reporting period Male Female Foreign Nationals 0010 1 000 0 0 2 0071 0700047115 0 61 3000 2 100 0 0 6 A C I W A C I W Male Female 30 1 0 2 60 5 2 5 0 0 105 Cleaners Categories Admin Assistants Directors, and PEOs SALGA Occupational Programme Manager, Programme Manager, Managers, Specialists 25 2 2 4 21 0 1 3 0 0 58 Advisors, Consultants, Executive Secretaries, and Practitioners, Coordinators, PA’s, Offi cers, and Specialists Offi PA’s, making management GRAND TOTAL 66 4 3 7 134 7 4 14 0 0 superintendents Top managementTop CEO, COO, CFO, Executive Senior management Directors, Specialists 1 1 0 1 3 0 0 1 0 0 7 Occupational Levels TOTAL PERMANENTTOTAL 66 4 3 7 134 7 4 14 0 0 239 Temporary employees Temporary supervisors, foremen, and Professionally qualifi ed and Professionally qualifi experienced specialists and mid- Skilled technical and academically qualifi ed workers, junior management, qualifi Unskilled and defi ned decision-making Unskilled and defi Messengers, Drivers, and Semi-skilled and discretionary decision- Table 15 Table ACCREDITED TRAINING From the table above, it can be deduced that training was offered equitably across all levels at SALGA. Much effort put in to ensure that employees are skilled and developed.

SALGA Annual Report | 2011/12 339 4.10 HUMAN RESOURCES OVERSIGHT REPORT

The table below summarises the processes undertaken in training:

Table 16

The chart below summarises training implemented. The ﬁ gures include duplicate values, i.e. employees attending more than one training intervention. The services of accredited training providers were used. These were sources from SALGA database:

340 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT Table 17 Table

SALGA Annual Report | 2011/12 341 4.10 HUMAN RESOURCES OVERSIGHT 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 signiﬁ cant role in ensuring fairness in employment practices.

The SALGA EECF has four working groups which report on the following matters:

• Training and performance

• Employee wellness and disability

• Recruitment, selection, and disciplinary practices

• Communication and procurement group

The EECF held its quarterly meetings as required by the Act. SALGA is expected to submit the Employment Equity report to the EE Registrar at the Department of Labour. The SALGA EE report was submitted to the Department of Labour during the reporting period as required and conﬁ rmation of receipt and acknowledgement of compliance was received.

All EE-related documents were circulated to SALGA staff in line with the provisions of Section 25 of the EE Act. SALGA has a target of 335 ﬁ lled positions over a period of three years. The table below is a plan summarising its numerical targets:

342 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT Table 18 Table

SALGA Annual Report | 2011/12 343 4.10 HUMAN RESOURCES OVERSIGHT 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 ofﬁ ce.

LABOUR RELATIONS WITHIN SALGA

Like any living organisation, SALGA acknowledges that there may be areas of dissatisfaction on the part of employees. Such dissatisfaction is managed through the SALGA grievance procedure. SALGA instills discipline through its disciplinary code, in line with the Labour Relations Act. During the reporting period, SALGA handled the following cases as shown in the table below:

Table 19

Labour Relations Cases

CATEGORY NUMBER OF CASES

Grievances 2

Misconducts 15

Appeals 1

Disputes 3

JOB EVALUATION AND ORGANISATIONAL DEVELOPMENT

SALGA handled cases of employees whose salaries fell outside the approved salary framework. CEO approval was obtained and relevant salaries were corrected accordingly. A remuneration panel report on the cost of living increases for 2011 was developed and submitted to the CEO, All employee salaries were adjusted accordingly. Organograms for certain directorates and provincial ofﬁ ces were reviewed and CEO approval on the same was obtained.

EMPLOYEE WELLNESS

The HR Unit facilitated the dissemination of information relating to health awareness to employees at both head offi ce and provincial offi ces through e-mail news bulletins. A memo on International Day against Drug and Illicit Traffi cking was circulated to all staff. This was to create awareness during the SANCA Drug Awareness Week (20 to 26 June 2011). SALGA Western Cape, in the same week, held an information session on signs and effects of substance abuse. About nineteen (19) employees attended the session. Additionally, the HR Unit facilitated presentations on fi nancial management to assist employees in basic fi nancial planning and budgeting. These were attended by twenty (20) employees across SALGA National.

HR Unit facilitated the dissemination of information relating to health awareness to employees at both head ofﬁ ce and provincial ofﬁ ces through email news bulletins. The focus was on respiratory infections as part of the SALGA awareness programme. A back awareness session was facilitated at both the SALGA Northern Cape and SALGA National. A total of forty one (41) employees attended.

344 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT 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 ﬁ tness session.

In relation to ﬁ nancial wellness, the unit coordinated a presentation on tax implications at SALGA North West. A total of nine (9) employees attended.

During the third quarter, a memo on 16 Days of Activism against Abuse of Women and Children was circulated to all staff as well as a CEO message on World Aids Day. The HR Unit facilitated the Employee Wellness Day on 24 November 2011. This was attended by 97 employees. Various health and wellness organisation were invited to share information with employees. These included Sanlam, National Credit Regulator, Men’s Clinic, Lancet Laboratories, and South African Blood Donation Services. Health screens were conducted.

In honour of dedication and hard work, SALGA introduced its Employee Recognition Awards. At its meeting held on 09 March 2011, the Evaluation Committee inter alia resolved that a “representative” panel should be elected to look at all nominations and emerge with the “Best SALGA Employee”.

Terms of Reference for the panel were developed and guidance was provided for them to objectively arrive at a fair conclusion. The awards, themed “Recognising Excellence in SALGA”, were held on 1 December 2011 at SAX Arena in Centurion. All provincial ofﬁ ces were represented by at least ﬁ ve employees. Winners of the different categories (CEO Special Award, Best SALGA Employee, and Best Provincial / Directorate Employee) received prizes in the form of sponsored vouchers.

Pursuant to the resolution by the Employee Recognition Evaluation Committee to review the Awards framework, the Employee Recognition Awards Framework was revisited and communicated to all SALGA employees for their inputs and comments.

The SALGA Career Day / Take a Child to work campaign was organised on 23 March 2012 under the theme “Building Future Generations”. This campaign was aimed at exposing girl/boy children to local government with particular reference to the SALGA environment. This would allow them to make informed career decisions that will inspire them to pursue their goals and ambitions. Approximately 20 Grade 11 Learners from The Glen High School visited the SALGA National ofﬁ ce. The learners were exposed to a number of directorates to showcase opportunities that the local government sector has for them.

SALGA Annual Report | 2011/12 345 4.10 HUMAN RESOURCES OVERSIGHT REPORT

The Human Resources Unit handled the following wellness cases:

Table 21

NO OF CASES REFERRED NATURE OF PROBLEMS NO OF CASES HANDLED SOURCES OF REFERRAL TO OUTSIDE SERVICE PRESENTED PROVIDERS

2 Substance/ Alcohol Abuse Supervisor referral 1

3 Bereavement and grief Self-referral and supervisor 1 referral

1 Post-traumatic depression Self-referral 1

1 Employee’s child behavioral Employee referral 1 problem

4 Marital/Family-related Self-referral and Supervisor 1 referral

1 Family/Personal stress-related Supervisor referral 1 problems

1 Disability Self-referral 0

1 Work stress-related suspension Supervisor referral 1

1 Ill health Self-referral 0

LEAVE MANAGEMENT FOR SALGA EMPLOYEES

Leave forms were continuously received from ﬁ nance and admin managers in the provinces as well as executive secretaries from SALGA National. Provisions of the new policy were implemented. In accordance with the Basic Conditions of Employment Act as well as the SALGA Policy on Conditions of Employment, all leave records were adjusted.

The table below summarises leave taken during the period under review:

Table 22

ANNUAL LEAVE

PERIOD DAYS TAKEN NUMBER OF EMPLOYEES ESTIMATED COST 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 SALGA Annual Report | 2011/12 4.10 HUMAN RESOURCES OVERSIGHT REPORT

SICK LEAVE

PERIOD DAYS TAKEN NUMBER OF EMPLOYEES ESTIMATED COST

Quarter 1 197 62 R 234,654.12

Quarter 2 209 74 R 297,292.70

Quarter 3 213 71 R 297,895.24

Quarter 4 293.5 75 R 347,498.97

SALGA Annual Report | 2011/12 347 4.11 STAKEHOLDER RELATIONS

4.11 STAKEHOLDER RELATIONS

The National Executive Committee of SALGA approved the Stakeholder Management Policy in March 2012. The policy will entrust strategic direction and process towards the effective management of stakeholders and the cooperation thereof. It will build towards the capacity of the sector to deliver on its mandate.

SALGA works with many stakeholders towards advancing the interest of Local Government, harnessing collective resources towards enhancing the LG Agenda nationally and internationally.

The policy focuses mainly on the partner category as outlined above. However, it is important to note that other categories are managed more effectively through different processes driven by different directorates within SALGA.

Government, particularly from a legislative and regulatory perspective, is managed through the SALGA IGR Strategy. International Municipal Associations and other international partners are dealt with through the International Relations Strategy, both of which are driven by the Governance, International, and Inter-Governmental Relations Directorate.

SALGA fosters sustainable relationships that are mutually beneﬁ cial to all parties concerned. It therefore structures the beneﬁ ts and associated activities in a manner that stakeholders derive value from the partnership.

Frequent interaction and networking with selected stakeholders is essential to maintain proactive relationships while also managing expectations. A variety of mechanisms such as news briefs and roundtable discussions with key stakeholders have proven to be effective.

348 SALGA Annual Report | 2011/12 4.11 STAKEHOLDER RELATIONS

In the year under review, highlights include the following:

• SALGA stakeholders played a critical role in providing support for programmes that followed the ushering of the new leadership post the Local Government Elections in 2011. The development of the Councilor Induction Programme and the actual training of the new Local Government Leadership.

• The SALGA National Conference in 2011 and all provincial conferences reliant on the support from the list of stakeholders below who gave support either ﬁ nancially or in kind.

• The multi-stakeholder co-operation for the LG Climate Change Programme contributed to the successful showcasing of Local Government Programmes for Climate Change. It also contributed to the hosting of the Local Government Convention in Durban where the Global Leadership of Local Government gathered and agreed on the Local Government Adaptation Charter.

SALGA Annual Report | 2011/12 349

We hereby acknowledge the valuable support and contributions received from the organisations and businesses listed below:

Alexander Forbes Anglo Platinum Limited Bonitas Centre for Conﬂ ict Resolution Der Deutsche Städtetag (German DST Association of Cities) Department of Cooperative Governance Department of Environmental Development Bank of Affairs South Africa Duchame Consulting Economic Development Eden District Municipality Enterprises 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 Trade and Investment Limpopo Authorities Umgeni Water University of Witwatersrand National League of Cities University of South Africa War on Poverty Stats SA

350 SALGA Annual Report | 2011/12 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 ofﬁ ces countrywide that aim to beneﬁ t not only the organisation and its workforce but the broader communities in which SALGA operates as well as the environment as a whole.

SALGA Annual Report | 2011/12 351 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 proﬁ t.

The ﬁ rst King Report on Corporate Governance (King I) was published in 1994 and was aimed at promoting the highest standards of corporate governance in South Africa. The second King Report on Corporate Governance (King II) acknowledged the shift in emphasis from a mainly ﬁ nancial focus in the past to a wider and more inclusive approach to public accountability in the future.

With the publication of the third King Report (King III), this requirement was taken even further in that the report stated that strategy, risk, performance, and sustainability have become inseparable and have resulted in the need for integrated reporting which deals with economic, environmental, social and governance issues.

The trend towards greater transparency and accountability in public reporting is reﬂ ected in a progression towards more comprehensive disclosure of organisational performance to include the environmental, social, and economic dimensions of the entity’s activities. This would be as either a separate report or as a dedicated section in the annual report. Accordingly, SALGA is for the ﬁ rst time including information regarding its sustainability and corporate citizenry efforts undertaken in the period under review.

352 SALGA Annual Report | 2011/12 5.2 SALGA NATIONAL

In alignment with the commitment of SALGA to mitigate the impact of climate change, its new national ofﬁ ce in Garsfontein Avenue, Pretoria (occupied on 1 November 2010) was designed and constructed in accordance with ‘green building’ principles.

A report from the developer indicates that the following elements were incorporated in designing and building the premises:

• The engagement of a Green Star Professional from the Council for Scientiﬁ c and Industrial Research (CSIR) who assisted the project team with integration of the Green Star SA objectives.

• Commissioning initiatives ensuring optimum comfort and energy-efﬁ cient services for occupants of the building.

• Ample amounts of outside air in order to counteract the build-up of indoor pollutants.

• The effective delivery of optimal quality air to all occupied areas of the building.

• Response monitoring of carbon dioxide levels to ensure delivery of optimal quantities of outside air.

• The avoidance of ‘low-frequency ﬂ icker’ that may be associated with ﬂ uorescent lighting.

• Ofﬁ ce lighting that is practical and efﬁ cient yet not overly designed.

• The provision to occupants of a visual connection to the external environment.

• The achievement of a high level of thermal comfort.

• The facilitation of individual controls for thermal comfort.

• Interior ﬁ nishes that minimise levels of volatile organic compounds in the building.

• The use of products with low formaldehyde emission levels.

• The minimisation of the greenhouse gas emissions associated with operational energy consumption and the maximisation of potential operational energy-efﬁ ciency.

• Energy sub-metering to facilitate the ongoing management of energy consumption.

• The provision of artiﬁ cial lighting with minimal energy consumption.

• Greater ﬂ exibility for light switching to easily light occupied areas only.

• The reduction of peak demand on the energy-supply infrastructure.

• Construction adjacent to community amenities in order to reduce the overall number of automobile trips.

• The reduction and monitoring of potable water consumption, as well as the monitoring of the use of same for landscape irrigation.

• The reduction of potable water consumption from heat rejection systems.

SALGA Annual Report | 2011/12 353 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 certiﬁ ed in terms of environmentally responsible forest management practices.

• The use of approved refrigerants, insolvents, and other gases that do not contribute to the long-term damage of the earth’s stratospheric ozone layer.

• The minimising of discharge to the municipal sewerage system.

• The minimising of light pollution into the night sky.

• The elimination of the risk of Legionnaires’ Disease.

• The use of generators that minimise harmful emissions.

354 SALGA Annual Report | 2011/12 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 efﬁ ciency: By ensuring that the ofﬁ ce lights are switched off when no one is in.

SALGA Annual Report | 2011/12 355 5.4 MANDELA DAY 2011

Mandela Day is about creating a global movement for good. It recognises that positive change begins with small, selﬂ ess, and individual actions. Mandela Day serves as a catalyst for people around the world to realise that each of us has the ability to change the world through small actions.

Mr Mandela has requested that each year his birthday present 18 July be people donate at least 67 minutes of their time in service to their communities. The ‘67’ is a symbolic number that represents the number of years Mr Mandela was actively involved in social activism in South Africa.

The SALGA National Members Assembly (NMA), held in Kimberley in May 2010, resolved that local government, through SALGA, would actively support Nelson Mandela Day. The activities for 2010/2011 were appropriately themed `Make Every Day a Mandela Day’.

In implementing these resolutions SALGA, in partnership with the Nelson Mandela Foundation and the 46664 organisation, compiled guidelines for local government participation in Nelson Mandela Day. These guidelines incorporated the theme for the day into the speciﬁ c focus of Local Government of ‘Towards safe community recreational areas’.

356 SALGA Annual Report | 2011/12 5.4 MANDELA DAY 2011

SALGA NATIONAL

NELSON MANDELA DAY

Community Targeted Under the theme: Take action, inspire change, make every day a Mandela Day!’, SALGA National and Provincial ofﬁ ces targeted the most vulnerable members of society – the children and the elderly in poor communities. Children and the elderly were provided for in their immediate and basic needs.

Reason for choosing that In 2010, a resolution was made at NMA towards entrenching Mandela Day as a feature of local government. particular community to In 2011, SALGA acted on this resolution by calling on municipalities and local government stakeholders to beneﬁ t celebrate this event through implementing community work projects that target children and elderly in poor communities.

How did the community At the Tender loving Care (TLC) home for the aged in Steve Bikoville, this project included the sourcing and beneﬁ t? provision of groceries, blankets, wheelchairs, accommodation quarters, massage therapy, recycling bins, and trees for the old-age home. There were generous contributions from Isiphethu Wellness, Kwalata, ACSA, City of Tshwane, and the National Dept of Environment.

In Philena Primary School (Olivenhotbosch) the aim was to (1) celebrate the values embodied in the iconic fi gure of Dr Nelson Mandela, (2) emphasise the need for physical activity, clean and safe recreational areas, (3) address the shortage of books and reading materials, (4) highlight the importance of reading and literacy among children and the youth. To this end: • a soccer tournament was held and medals and trophies were awarded by Tshwane speaker Councillor Mosupya, • a literacy campaign was held and book prizes and book donations were awarded by former SALGA chairperson Mr Amos Masondo • HIV and AIDS training was facilitated by LoveLife and certifi cates were awarded by the CEO of SALGA, Mr Xolile George • • SALGA provincial offi ces also took part: • SALGA - Eastern Cape: Donated books to the children’s home. • SALGA - Gauteng: Visited an orphanage and cleaned the orphanage, cooked for the children, and donated groceries. • SALGA - Limpopo: Provided groceries to needy families, greening of the environment, and establishing a food garden at the community centre. • SALGA - Mpumalanga: Children’s homes in Daantjieand painted the buildings, completed repairs, and donated groceries. • SALGA - North West: Visited an old age home with Fire Emergency services to assist with checking the safety standards and conditions of the old age homes. Books and magazines were donated. • SALGA - Western Cape: Visited Ons Plek shelter for Girls and provided them with toiletries and stationery.

SALGA Annual Report | 2011/12 357 5.4 MANDELA DAY 2011

Any ongoing involvement As an ongoing initiative, this project aims to ensure that at the Tender Loving Care (TLC) home for the aged beyond the speciﬁ c in Steve Bikoville: event? • the seasonal need for blankets is addressed • regular health checks are done • the building of suitable shelter is completed • the newly-built centre is used as a base for elderly care in the community In Philena primary School: • As a result or the intervention, the City of Tshwane has committed to ensure that the school and library are further resourced with books, • Lovelife ground breakers have made links with the learners and the school to aid in the ﬁ ght against crime, HIV and AIDS, and drug abuse. 150 learners in the school have gone through the Lovelife modules • A soccer team has been started in the school and soccer balls were donated. The National Dept of Environment has committed to further greening the school grounds and the old-age home after providing trees and recycle bins.

In partnership with City of Tshwane and its staff members, SALGA and its staff members, LoveLife, Isiphethu Wellness, Kwalata, ACSA, and the National Dept of Environment

358 SALGA Annual Report | 2011/12 5.4 MANDELA DAY 2011

SALGA EASTERN CAPE NELSON MANDELA DAY Community Targeted ILITHA OLD AGE HOME - Close to 100 elderly Reason for choosing SALGA EC identifi ed the Old Age Home as its offi ce was drawn to it through clips that were advertised that particular on E-TV about the work Ms. Mercy Madikane was doing with children, the youth, women, persons community to benefi t with disabilities (PwDs), and the elderly. Her work includes her indefatigable efforts at turning xenophobic attitudes into positive self-help activities of the locals in the Zwelitsha District. She impressed on SALGA the importance of the Nelson Mandela International Day activities such as the following:

a) Getting food parcels and ‘old’ clothes to the elderly;

b) Motivational talk to young women or the girl child and boys/young men in conﬂ ict with the law on a variety of value and moral-based topics such as HIV & AIDS, rape, housebreaking, GBV, and so on;

c) Organising wheelchairs and other items for PwDs and vulnerable groups;

d) Buying or offering ‘old’ blankets to vulnerable groups during the winter season and for years to come;

e) Getting transport for senior citizens who will have to be collected from far away to come to the central venue on the day of the activities; and

f) Any other contribution that good samaritans and philanthropists may think of.

The above-mentioned activities were informed by the following Older Persons Rights and Responsibilities: • Knowing their rights and accepting their responsibilities; • Not be discriminated against because of their age; • Have appropriate educational and training programmes; • Have a right to belong and to form organisations of their choice; • Must beneﬁ t from family and community care and • Must be treated with respect and dignity.

SALGA Annual Report | 2011/12 359 5.4 MANDELA DAY 2011

SALGA EASTERN CAPE NELSON MANDELA DAY How did the SALGA EC CONTRIBUTION/DONATION: community beneﬁ t? • 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.

360 SALGA Annual Report | 2011/12 5.4 MANDELA DAY 2011

SALGA FREE STATE

NELSON MANDELA DAY

Community Targeted Bolokanang Home Based Care centre

Reason for choosing that particular community to beneﬁ t This centre is in situated at Phase 3, which is one of the most remote and impoverished areas of Mangaung.

How did the community beneﬁ t? Educational toys were distributed to enhance learning

Any ongoing involvement beyond Visit by the Community Development Unit the speciﬁ c event?

SALGA Annual Report | 2011/12 361 5.4 MANDELA DAY 2011

SALGA GAUTENG NELSON MANDELA DAY Community Targeted Alexandra Township Community

Reason for choosing that The community has a centre that caters for small children and elderly. SALGA Gauteng has particular community to had a strong relationship with the centre since it touches the lives of many people. beneﬁ t

How did the community The Gauteng ofﬁ ce visited the centre to clean and cook for lunch. It also left all the cleaning beneﬁ t? material used for the centre.

362 SALGA Annual Report | 2011/12 5.4 MANDELA DAY 2011

SALGA LIMPOPO NELSON MANDELA DAY Community Targeted Germark Village, Blouberg Municipality in Capricorn

Reason for choosing that The Drop-in centre has not received funding to run its activities and yet it accommodates particular community to approximately 121 children per day. These children come the centre for services that include beneﬁ t food, spiritual healing, and assistance with homework, laundry services, counselling remedial, and crèche.

How did the community • SALGA has greened and developed a food garden for the Drop-in Centre for food security purposes beneﬁ t? that will be sustain the project and be able to feed the children for much longer periods. • 15 trees, seeds, and garden tools were distributed. • Books and stationary were distributed to children to create awareness through educational programmes. • SALGA prepared lunch for the OVCs and was served by staff members Any ongoing involvement beyond the speciﬁ c event? No for this particular municipality

In partnership with NEDBANK OTHER INITIATIVES Community Targeted Giyani Municipality In partnership with SALGA was a part of the preparatory/working team and was tasked with the responsibility of coordinating bus routes from district municipalities in conjunction with the Department of Transport: • SALGA managed to gather and collect all bus routes which were outstanding and its contribution was acknowledged.

SALGA Annual Report | 2011/12 363 5.4 MANDELA DAY 2011

364 SALGA Annual Report | 2011/12 5.4 MANDELA DAY 2011

SALGA MPUMALANGA NELSON MANDELA DAY Community Targeted Daantjie Community in Ward 29 of Mbombela Local Municipality

Reason for choosing that This is an area which has a high teenage pregnancy rate and poverty levels. The targeted pre- particular community to school is running a programme for teenage mothers that allow young girls to go back to school beneﬁ t 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.

How did the community Two pre-schools were visited and assisted with cleaning, minor renovations, and food. beneﬁ t?

In partnership with IEC, Riverside Mall

Other detail Materials sponsored by Cashbuild. Food donated by staff members and the Riverside Mall.

SALGA Annual Report | 2011/12 365 5.4 MANDELA DAY 2011

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

Reason for choosing that SALGA North West had made a scan of the past involvement and resolved that the 2011 focus will be particular community to on drawing attention to the living conditions of the elderly and disabled. The past events of the Old Age benefi t Home being gutted by fi re and elderly losing their lives in the process, beared testimony to the need to give attention to the sector. The Emmanuel Disabled and Old Age Centre in Jouberton Ward 9, within the City of Matlosana area of jurisdiction, was identifi ed by the community (as the centre which needed more attention and assistance) after SALGA North West had made some research on all Old Age and Disabled Centres.

How did the community Different departments made demonstrations awareness and donations: benefi t? a) How to extinguish a fi re b) How to apply and receive Birth Certifi cates and/or Identity Documents c) How to apply and receive Social Grants d) How to check for blood pressure, diabetic, cholesterol, etc. and where to seek assistance e) Donation of blankets and clothes to the centre f) Donation of fruits and vegetables g) Donation of big pots and big electric earn h) Cleaning of the premises by Department of Correctional Services i) Donation of catering for the day j) Donation of toiletries and medication

Any ongoing involvement • City of Matlosana – Fire and Rescue Services beyond the specifi c event? - Capacity is done on a quarterly basis on how to use the fi re extinguishers - Awareness is done on a quarterly basis on the dangers of paraffi n and its safety • Department of Home Affairs - Assistance is offered on a continuous basis to check application and issuing of Identity Documents and Birth Certifi cates • South African Social Security Agency (SASSA) - Assistance is offered on a continuous basis to check applications and issuing of Social Grants to people who deserve them • Dr. Kenneth Kaunda District Health Department - Screening of disabled and aged on different illnesses on quarterly basis • Department of Correctional Services - Cleaning of the premises on weekly basis

366 SALGA Annual Report | 2011/12 5.4 MANDELA DAY 2011

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

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SALGA WESTERN CAPE NELSON MANDELA DAY Community Targeted Ons Plek (Delivering a service in the Cape Town business district and surrounds) Reason for choosing that particular community to Staff members agreed that the focus should be on needy children and Ons Plek is a shelter beneﬁ t for girl street children.

How did the community beneﬁ t? Staff donated much needed toiletries and stationary.

Any ongoing involvement SALGAplanned an event for the girls in November. Throughout the year, SALGA donated beyond the speciﬁ c event? clothes, non-perishable foods, and toiletries to the shelter.

In partnership with Donations were all made by staff members.

368 SALGA Annual Report | 2011/12