Annual Report: Vote 5 2004/ 2005
description
Transcript of Annual Report: Vote 5 2004/ 2005
Annual Report: Vote 5
2004/ 2005
Presentation to the Portfolio Committee on Provincial & Local Governmentby Ms Lindiwe Msengana-Ndlela
Director-General: dplgTuesday, 13 September 2005
ContentsA. Overview
•Financial Performance and Highlights
•Programme Performance
•Outlook
•Project Consolidate
B. Structure of the Annual Report
•Programmes
C. Conclusion and Way Forward
•Our commitment to Parliament for 2004/05
•Key Performance Areas for Local Government
•Collective Action
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A. Overview
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Financial Performance
61 375
2 495 422
6 860 172
46 967658 311
2 483 381
6 849 332
3,755 4,737 26%
6,580 39%
9,466 44%
13,137 39%
2,000
4,000
6,000
8,000
10,000
12,000
14,000
(R'b
illio
n)
2000/01 2001/02 2002/03 2003/04 2004/05
dplg - Allocation Trends
Budget % year on year increase
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Financial Performance and Highlights
• Departmental budget under review: R13.1b.
• Increase of 38,8% from R9.4 billion allocated in previous financial year.
• Unqualified Audit opinion from the Auditor-General.
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Financial Performance and Highlights …
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• R7,7 billion transferred directly to municipalities for basic services;
• R4,5 billion for municipal infrastructure and job creation;
• R130 million for drought relief in South Africa and R20 million for financial needs related to the East Asian (Tsunami) Disaster;
Financial Performance and Highlights …
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• A total of R17,3 million to the South African Local Government Association, and R22,5 million to the Municipal Demarcation Board to prepare for the next Local Government Elections;
• A total of R8,6 million to the National House of Traditional Leaders, R4 million to the Commission on Traditional Leadership Disputes and Claims and R9,7 million to the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; and
• R224 million for the dplg operational budget.
FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER
April, 2004 March, 2005
Ap
ril
Au
gu
st
No
vem
ber
Jan
uar
y
Funding
Injection of R12.8b (plus R0.29b in October 2004) for basic service delivery development and co-ordination directed towards Provincial Municipalities
Focus on Gender
2nd Women in Local Government Conference
IGR and Traditional Leadership
• Intergovernmental Relations Framework Bill by Cabinet and introduction to Parliament
• Establishment of the Commission on Traditional Leadership Disputes and Claims
Disaster Management
• Domestic: Cabinet’s approval of R20m for financial needs related to the East Asian Tsunami and R130m for drought relief in South Africa
• International: Government’s support programme together with other stakeholder to assist (financially and in-kind) in the aftermath of the Tsunami Disaster in South East Asia as well as in affected African countries
Jun
e
July
Dec
emb
er
Mar
ch
Public Participation and Empowerment
National Conference on Community Participation and sharing of best practice
Free Basic Services
Completed the development of Monitoring System and a Portal to support municipalities in implementing the FBS Policy
Recognizing Excellence
Second National Municipal Performance Excellence (VUNA) Awards held successfully
Launch of PROJECT
CONSOLIDATE
A Hands-on Local Government Support and Engagement Programme
Oct
ob
er
Sep
tem
ber
Local Government
Elections
Preparatory Conference
Snapshot of the 2004/05 Financial Year
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Outlook
• Key milestones from recent past
• The year 2004 in South Africa
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Project Consolidate
1.1 Since April 2005:
a) Service Delivery Facilitators (SDFs) have been mobilised and deployed to municipalities.
b) Through the Presidential and Ministerial Municipal Izimbizo Programme, we have directly engaged with more than 40 municipalities.
c) We are Monitoring and Evaluating progress through a systematic framework of Performance Areas and Indicators.
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KPA 1: Service Delivery and Infrastructure• Water services• Electricity• Solid waste management• Environmental management• Roads• Housing (metros only)• Urban efficiency and Spatial planning
(metros only)• Community facilities
KPA 2: Local Economic Development• Economic growth• Poverty alleviation• Job creation
KPA 3: Municipal Financial Viability• Financial viability• Grant expenditure and management
KPA 4: Municipal Transformation and Institutional Development
• Organizational design• Employment equity• Skills development• Integrated development planning• Performance management system
KPA 5: Good Governance• Public participation, accountability and
transparency• District governance (For district only)• Ward system• Corporate governance
Project Consolidate: Measure of Success at Municipal Level
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Project Consolidate …
1.2 Expected Outcomes:
a) Improved capacity of provinces and municipalities to deliver on their mandate;
b) Accelerated delivery of quality services to communities;
c) Empowered participating communities in the governance structures and processes; and
d) 136 municipalities will emerge out of Project Consolidate and graduate through to the sustainability phase in terms of Local Government Transformation process.
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B. Structure of Annual Report
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Vote 5 - Programmes• Programme 1: Administration p17~23
- Human Resource Management and Development (Increase from 264 to 342 staff members - 78, representing a 30%
increase)
- Internal Audit and Risk Management
- Compliance and Legal Services
- Corporate Planning and Project Management
- Communications
- Information Technology and Management
- Corporate Secretariat
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• Prog 2: Governance, Policy & Research p 24~28
- Intergovernmental Relations Framework Bill, now an Act
- Commission on Traditional Leadership Disputes and Claims
- Draft Policy on Municipal International Relations
- LED Strategy and implementation framework
Provincial Support
• Harmonisation of IDPs, PGDSs and NSDP
• Provincial Bills on national framework legislation on the institution of traditional leadership.
• Draft legislation on Provincial and Municipal International Relations.
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• Prog 3: Urban and Rural Development
p 29~35
- ISRDP/URP Financing Protocol
- Cluster interventions in Nodes
- Monitoring and Evaluation
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• Prog 4: Systems and Capacity Building
p 36~41
- Implementation of the Disaster Management Framework
- Guidelines and framework for implementation of Property Rates Act
- Performance Management
- Preparations for Local Government Elections
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• Prog 5: Free Basic Services & Infrastructure p 42~45
- Roll-out of Free Basic Services
- Municipal Services Partnerships guidelines
- Public Participation and Empowerment
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• Prog 6: Provincial and Local Government Transfers p 46~47
Provincial Transfers
- Local Government Capacity Building
- Municipal Infrastructure Grant
Local Government Transfers
- Equitable Share
- Municipal Systems Improvement Programme
- Municipal Infrastructure Grant
- Disaster Relief
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• Prog 7: Fiscal Transfers p 48~52
Funds made available to public authorities and other institutions in terms of the agreements between government and the
individual authority or institution.
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Report of Audit Committee (p 55)
• The Effectiveness of Internal Controls 56
• Internal Audit Function 56
• Quality of Management and monthly / quarterly reports submitted in terms of the PFMA and the Division of Revenue Act (DoRA) 57
• Evaluation of Financial Statements 57
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(A/R Page)
Other details of financial results
• Report of the Accounting Officer 59
• Statement of Accounting policies and related matters65
• Report of the Auditor-General74
• Annual Financial Statements78
(A/R Page)
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Annexures (p 106 ~ 190)
For example:
• Grants paid to Provinces & Municipalities
• Transfers to Departmental Agencies and Accounts
• Explanatory Notes in respect of Conditional Grants in terms of Section 18(1) of the Division of Revenue Act, 2004 (Act No. 5 of 2004)
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Annexures (p 191 ~ 215)
• Human Resources Oversite Report
• Legislation administered by the dplg
• List of departmental publications
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C. Way Forward
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Conclusion and Way ForwardOur commitments to Parliament for 2004/5:
We said that we will pay priority attention to:
Leading and facilitating policy coherence on matters of provincial and local government
Intergovernmental Relations Bill passed
Alignment of NSDP, PGDG’s and IDP’s
Big ideas emanating from the IDP Hearings
Shared Sustainable Development Paradigm
Government’s Connectivity with Communities
Impact of Intergovernmental Investment in Localities
Provincial Development and Strategic Role
Improving the Credibility of IDPs
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Conclusion and Way Forward…
Raising awareness and recognition of the depth of capacity challenges
Launch of Project Consolidate in October 2004
Follow a systematic approach to addressing critical capacity challenges arising from decades of neglect, poverty and
underdevelopment in poor and rural municipalities
Note our approach in addressing the 5 Key Performance Areas (KPA’s) for Municipalities
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KPA 1: Municipal Transformation and Institutional Development
i. Stabilize administrative and political components within municipalities
ii. Implement a systematic programme of capacity building Municipal managers
Senior Managers (Section 57 of the Systems Act)
Professionals• Chief Finance Officers
• Engineers, IT Specialists, Legal expertise
Artisans
All other staff levels• Front desk, Back Office – Systems and ‘Back to Basics” (Batho Pele)
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KPA 1: Municipal Transformation and Institutional Development …
iii. Strengthen the Performance Management System
Implementation of organisation-wide performance management systems in the municipalities
Individuals and the whole Municipal Institution
Particular focus on PA’s of Municipal Managers
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KPA 1: Municipal Transformation and Institutional Development …
iv. Intensify hands-on support, short-to-medium term
Apply (immediately) the hands-on model of Project Consolidate that includes SDFs, Professionals, National and Provincial Government, Private Sector, SOEs.
Senior Managers in National and Provincial Departments to spend at least 5 days at the coalface during a performance cycle under Project Consolidate. National and Provincial Departments must re-orientate staff and where appropriate, restructure to provide support at local level whilst maintaining their policy development and M&E mandate.
Complete a Service Delivery Agency model that strengthens the role of the District Municipality working together with better resourced municipalities to support smaller municipalities.
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KPA 1: Municipal Transformation and Institutional
Development … Implement staff recruitment and retention programme for local
Government.
Focus on the Leadership development of new Councillors and Municipal Managers.
Apply Intergovernmental Relations Act and report on its impact to Parliament.
v. Long-term sustainability
Integrating the ideal of the developmental state, developmental local government and participatory democracy within the governance system as a whole.
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KPA2:Municipal Financial Viability and Management
Improve municipal capacity in the following areas:
i. Long range Financial Planning and Budgeting
Cost and Management Accounting
Investment in social and economic infrastructure
Balanced rational and proportional spending on Capital Expenditure vs Operational Expenditure vs Salaries.
ii. Revenue and Debt Management
Targeted support to municipal treasury departments.
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KPA2:Municipal Financial Viability and Management …
iii. Financial controls, implementation of MFMA and Regulations
Improve capacity as indicated in KPA 1 recommendations
Accelerate anti-corruption programme.
iv. Financial Reporting
Note importance of this component with regard to quality decision-making processes.
Auditing
• Internal: improve capacity and proactive action prior financial year end
• External: Follow up on matters raised by the Auditor-General.
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KPA3:Basic Service Delivery and Infrastructure
i. Visible and demonstratable roll-out of basic services: Instill an organisational-wide sense of urgency whilst focusing on systematic and sustainable improvement of capacity over the long-term.
ii. Monitor implementation, particularly in areas highlighted in the IDP Hearing Report [particularly:
• sanitation, water, housing (including the deeds),
• electricity,
• waste management; and
• environmental impact management, land and agriculture, roads and public works.
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KPA 4: Local Economic Development
• Note outcomes of IDP Hearings and ISRDP/URP audit, with regard to
Local Economic Development
• Mandate the Economic and Employment Clusters, both at National and Provincial levels to accelerate the implementation of Local Economic Development strategies.
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KPA 5: Good Governance
i. Deepen community participation and empowerment.
ii. Improve the functionality of Ward Committees and roll-out of the Community Development Workers Programme in this context
iii. All three spheres to provide the necessary support to ensure effectiveness of Ward Committees and Good Governance
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Collective Action
Invaluable contribution and dedication towards the dplg in achieving its strategic objectives during the
2004/05 financial year.
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Thank you!
General Enquiries: Ms Jeanny Morulane,Senior Manager: Communication
Department of Provincial and Local Government,Private Bag X804, Pretoria, 0001,
South Africa
Tel: (012) 334-0631 / Fax: (012) 334-0852
Email: [email protected] / Web: http://www.dplg.gov.za
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