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SALGA South African Local Government Association 2009/2010 Annual Report Contents CHAPTER 1: INTRODUCTION 1.1 Glossary of Terms 4 1.2 Foreword by SALGA Chairperson 8 1.3 Overview by the Chief Executive Offi cer 9 1.4 Financial results at a glance 12 1.5 SALGA Mandate 13 1.6 SALGA Revised Five-Year Strategy 2007 – 2012 14 1.7 Snapshot of the Year 17 1.8 Organisational Structure 19 1.9 SALGA Leadership 20 1.10 Acknowledgements 26 CHAPTER 2: ORGANISATIONAL PERFORMANCE 2.1 Introduction 28 2.2 Overview 29 2.3 Highlights of achievements and challenges during 2009/10 32 2.4 Performance Information Programme-Based 38 Programme 1 Municipal Infrastructure Services 38 Programme 2 Municipal Institutional Development 44 Programme 3 Governance, IGR and International Relations 52 Programme 4 Community Development 58 Programme 5 Economic Development and Development Planning 64 Programme 6 Strategy, Policy and Research 71 Programme 7 Offi ce of the CEO 75 Programme 8 Finance and Corporate Services 78 2.5 Provincial Offi ces 83 SALGA Eastern Cape 83 SALGA Free State 85 SALGA Gauteng 86 SALGA Limpopo 88 SALGA Mpumalanga 92 SALGA Northern Cape 95 SALGA North West 97 SALGA Western Cape 100 PAGE 1 CHAPTER 3:FINANCIAL OVERVIEW AND ANNUAL FINANCIAL STATEMENTS 3.1 Report of the Chief Financial Offi cer 104 3.2 Report of the Audit Committee 112 Report of the Auditor-General to Parliament on the Financial Statements and 3.3 114 Performance Information of the South African Local Government Association 3.4 Report of the Accounting Authority 117 3.5 Financial Statements 167 3.6 Annexure A – Related Party Transactions and Balances 215 3.7 Statements of Gifts, Donations or Sponsorships 223 CHAPTER 4: CORPORATE GOVERNANCE AND HUMAN RESOURCE OVERSIGHT REPORT 4.1 Introduction 230 4.2 Business Planning and Performance Information 230 4.2.1 Business Planning 230 4.2.2 Performance Information 231 4.3 SALGA Legislative 232 4.4 Budgeting Process 233 4.5 Audit Committee 235 4.6 Internal Audit 235 4.7 Risk Management 235 4.8 Individual Performance Management 236 4.9 SALGA Governance Structures / Mandating Framework 239 4.9.1 National Executive Committee 239 4.9.2 Provincial Executive Committee 241 4.9.3 Working Groups 241 4.9.4 Members Assembly/s 4.10 HR Oversight Report 245 CHAPTER 5: SALGA OFFICES AND LIST OF SALGA MEMBER MUNICIPALITIES Contact details of SALGA Offi ces 266 Contact details of Municipalities 267 2 PAGE SALGA South African Local Government Association Chapter 1: Introduction PAGE 3 1.1 GLOSSARY OF TERMS ASGISA - Accelerated and Shared Growth Initiative for South Africa ATR - Annual Training Report BEE - Black Economic Empowerment CCMA - Council for Conciliation, Mediation and Arbitration CDWs - Community Development Workers CDM - Clean Development Mechanism CIP - Comprehensive Infrastructure Plan CLGF - Commonwealth Local Goverment Forum CMRA - Centre for Municipal Research and Advice CoGTA - Department of Co-operative Governance and Traditional Affairs Daffs - District Area Financial Forum DANIDA - Danish International Development Agency DBSA - Development Bank of Southern Africa DEAT - Department of Environmental Affairs and Tourism DIRCO - Department of International Relations and Cooperation DM - District Municipality DMA - Disaster Management Act DME - Department of Minerals and Energy DPLG - Department of Provincial and Local Government DPSA - Department of Public Services and Administration DPW - Department of Public Works DORA - Division of Revenue Act DSAC - Department of Sports, Arts and Culture DSD - Department of Social Development DWA - Department of Water Affairs ECAC - Eastern Cape Aids Council ECYDA - Eastern Cape Youth Development Agency EDI - Electricity Distribution Industry EDIR - Electricity Distribution Industry Restructuring EE - Economic Empowerment ELMDP - Executive Leadership Management Development Programme EMT - Executive Management Team EPWP - Expanded Public Works Programme ERP - Enterprise Resource Planning ERPS - Enterprise Resource Planning System ESETA - Electricity Sector Education and Training Authority 4 PAGE 1.1 GLOSSARY OF TERMS Eskom - Electricity Supply Commission ETU - Education and Training Unit EXCO - Executive Committee FFC - Financial and Fiscal Commission FIFA - Fédération Internationale de Football Association GAAP - Generally Accepted Accounting Practice GAMAP - Generally Accepted Municipal Accounting Practice GDS - Growth and Development Summit GEMLOG - Gender Mainstreaming for Local Government GRAP - Generally Recognised Accounting Practice GTZ - Gesellschaft für Technische Zusammenarbeit GWME - Government Wide Monitoring and Evaluation HALOGEN - HIV/Aids and Local Government Learning Network HDIs - Historically Disadvantaged Individuals HIL - Higher Institute of Learning HRMWG - Human Resources Management Working Group IBSA - India Brazil South Africa ICLEI - International Council for Local Environment Initiatives ICT - Information and Communication Technologies IDP - Integrated Development Planning IMATU - Independent Municipal and Allied Trade Union IMFO - Institute of Municipal Finance Offi cers IGR - Intergovernmental Relations INCA - Infrastructure Finance Corporation Limited IR - International Relations ISAD - Information Society and Development (Cluster) IWRM - Integrated Water-Resources Management JE - Job Evaluation JIPSA - Joint-Initiative on Priority Skills Acquisition KPA - Key Performance Area KPI - Key Performance Indicator LED - Local Economic Development LGES - Local Government Equitable Share LGNET - Local Government Network LGTAS - Local Government Turn Around Strategy LGSETA - Local Government Sector Education and Training Authority PAGE 5 1.1 GLOSSARY OF TERMS LLFs - Local Labour Forums LODLOG - Local Democracy and Local Government (Training Programme) LR - Labour Relations MCPF - Municipal Councillors Pension Fund MDGs - Millennium Development Goals METF - Medium-Term Expenditure Framework MFMA - Municipal Finance Management Act MIIF - Municipal Infrastructure Investment Framework MIG - Municipal Infrastructure Grant MoU - Memorandum of Understanding MPRA - Municipal Property Rates Act MTAS - Municipal Turn Around Strategy MTSF - Mid Term Strategy Framework NA - National Assembly NATMAP - National Transport Master Plan NCOP - National Council of Provinces NDOH - National Department of Health NDOT - National Department of Transport NEC - National Executive Committee NEPAD - New Partnership for Africa’s Development NERSA - National Energy Regulator of South Africa NGOs - Non-Governmental Organisations NMA - National Members Assembly NQFL - National Qualifi cations Framework Level NSDP - National Spatial Development Perspective NYDA - National Youth Development Agency OCEO - Offi ce of the Chief Executive Offi cer OHASA - Occupational Health and Safety Act OLG - Organised Local Government PAF - Provincial Advisory Forum PAFTECH - Provincial Advisory Forum for Municipal Managers PALAMA - Public Administration Leadership and Management Academy PCF - Provincial Consultative Forum PEC - Provincial Executive Committee PEO - Provincial Executive Offi cer PEPFAR - The US President’s Emergency Plan for Aids Relief 6 PAGE 1.1 GLOSSARY OF TERMS PFMA - Public Finance Management Act PGDS - Provincial Growth and Development Strategy PMS - Performance Management System PPHC - Provincialisation of Primary Healthcare PROWAF - Eastern Cape Water Sector Intergovernmental Forum PSP - Professional Service Provider RSC - Regional Services Council Reds - Regional Electricity Distributors RDP - Reconstruction and Development Programme RTLRS - Regional Transitional Labour Relations Structures SACN - South African Cities Network SADC - Southern African Development Community SALGBC - South African Local Government Bargaining Council SAMWU - South African Municipal Workers’ Union SAPO - South African Post Offi ce SAYM - Southern African Youth Movement SCM - Supply-Chain Management SCOPA - Standing Committee of Public Accounts SDBIP - Service Delivery Budget Implementation Plan SIDA - Swedish International Development Cooperation Agency SLA - Service Level Agreement Soes - State-Owned Enterprises SPS - Single Public Service SPU - Strategic Projects Unit UCLGA - United Cities and Local Governments of Africa UNCCF - United Nations Climate Change Framework WC - Water Conservation WDM - Water-Demand Management Wits - University of the Witwatersrand WILGS - Women in Local Government Summit WRC - Water Research Council WSA - Water Service Authority WSCBP - Water Services Consolidated Business Plan WSDP - Water Services Development Plan WSP - Workplace Skills Plan 5YLGSA - Five-Year Local Government Strategic Agenda PAGE 7 1.2 FOREWORD BY SALGA CHAIRPERSON SALGA’s role is to represent, support, advise and profi le local government. As the voice of local government, SALGA has played a decisive and infl uential role during the 2009/10 fi nancial year, which proved to be the most challenging year for local government since its establishment in its current form in 2000. The year under review has been both the most fruitful and the most challenging since the establishment of organised local government in the democratic era. The 2009/10 year commenced with local government increasingly coming under the spotlight due to service delivery protests sweeping the country, the completion of the “State of Local Government” report by COGTA and the concomitant Local Government Turnaround Strategy approved by Cabinet in December 2009. While these events were unfolding, the political leadership of SALGA sought to infl uence the national discourse
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