BUDGET REVIEW 2005 – 06 FINANCIAL YEAR

BUDGET REVIEW2005 – 06 FINANCIAL YEAR PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT

AGENDA • Introduction • Highlight Successes • Highlight Challenges • Performance against pre-determined objectives • Finances • Revenue • Summary: Income against Budget • Summary: Expenditure against Budget • Conclusion

INTRODUCTION SALGA’s Mandate • SALGA’s mandate derives from S169 of the Constitution of the Republic of South Africa, Act 108 0f 1996 as amended; S2(1) (A) of the Organised Local Government Act, Act 52 of 1997 as amended; the White Paper on Local Government of 1998; Municipal Systems Act, Act 32 of 2000; and SALGA’s Constitution of September 2004 as amended. • These mandates generally define SALGA as a representative body and resource of local government at national, regional and international forum • SALGA Is entrusted with promoting and protecting the interest of local government institution • The mandate of SALGA as defined in its principal sources, comprise the following: • Representative role – an Inter-governmental Relations function • Support & Advise role – define needs of members; lobby for/ leverage/ demand/ provide support & advise i.t.o needs

INTRODUCTION SALGA’s Mandate (Cont…) • Act as an employer body • Act as a resource (knowledge & info centre) to municipalities • Help develop capacity in municipalities • Unite local government given that developmental obligations • Custodian of sharing experiences within local government • Partner government in driving transformation programme

INTRODUCTION Vision; Mission & Values • Vision An association of municipalities that is at the cutting edge of quality and sustainable services • Mission To be consultative, informed, mandated, credible & accountable to our membership, and provide value for money • Values Responsive Innovative Dynamic Excellence

INTRODUCTION Strategic Objectives • Increase SALGA’s effectiveness and efficiency to enhance sustainability of organised local government and quality of service to its members; • To foster policy, strategy and operational integration of SALGA; • To foster planning, reporting and budgetary context for the organisation as a whole; • To facilitate the strengthening of the system of communication in local government; • To ensure that SALGA enhances and maintains a high profile position locally, regionally and internationally; • To facilitate and support the capacity of member municipality locally and through continental and international exchanges and peer learning in key areas; • To mainstream issues of gender, youth, people with disabilities and HIV/Aids as central cross-cutting issues in the local government developmental agenda;

INTRODUCTION Strategic Objectives • Promote a lawful governance system which will enable service delivery in a developmental state; • Promote the credibility and relevance of the local government agenda in national policy and programmes; • Promote the enhancement and mobilisation of existing capacity within the local government sphere to share responsibility for its own development; • To facilitate the implementation of a labour and human resources dispensation in municipalities that enhances service delivery; • To advocate labour peace in the sector; • To ensure municipal compliance to workplace legislation;

INTRODUCTION

HIGHLIGHT SUCCESSES • Improved membership levies collections from only about 40% for 2004/05 financial year to more than 95% by March 2006 • Improved staff turnover from 47% in years 2003-04 to 13.8% by the end of the last quarter • More visibility of SALGA in IGR structures and much improved relations with stakeholders • Comprehensive involvement with Cross Boundary Municipalities Bill and Constitutional 12th Amendment Bill • SALGA won some gains on behalf of municipalities for the replacement of RSC levies • Ruling on dispute with unions with regard to Micro Lending deductions from payroll and Accrued Leave were in favour of SALGA • Performance Management System toolkit was launched and workshops held in seven provinces • Guidelines on HIV and AIDS in the workplace have been completed and signed by the CEO, the launch is expected after LG elections • SALGA the twinning arrangements and exchanging of best practices (eg. Johannesburg twinning with three rural municipalities)

HIGHLIGHT SUCCESSES • SALGA adopted a new strategy and new systems • SALGA’s financial statements were consolidated with all its provincial structures for the first time in 2004/05 financial statements • The fully independent Audit Committee is fully functional • Macro and Micro risk assessment was completed • Internal Auditors developed their audit plans informed by risk assessment • The CEO and her Executive Management Team visited all provinces meeting the MMs and CFOs of municipalities to assess, amongst others: • The state of affairs in municipalities • SALGA’s provincial capacity to meet municipal needs • Areas of immediate intervention by the CEO • Cooperation with sector departments provincially and nationally • SALGA signed MOU its sister organisation in Mali • Reversed all risky contracts • SALGA has made some strides in finalising a single Pension Fund in Local Government • SALGA was hailed for sensitising the public about the importance of Local Government institution through radio and TV adverts in a process leading to Local Government elections

HIGHLIGHT CHALLENGES • Lack of International Relations Strategy • Listing of SALGA as schedule 3A public entity, as it limits alternative revenue generation for long term sustainability of the organisation • Lack of integrated systems between SALGA national and provincial offices • Poor response from donor community • Disclaimer of audit opinion for 2004/05 financial year

STRATEGIC OBJECTIVE: INCREASE SALGA’S EFFECTIVENESS AND EFFICIENCY TO ENHANCE SUSTAINABILITY OF OLG AND QUALITY OF SERVICE TO ITS MEMBERS PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STARTEGIC OBJECTIVE: TO FOSTER POLICY, STRATEGY AND OPERATIONAL INTEGRATION OF SALGA

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: TO FACILITATE THE IMPLEMENTATION OF A LABOUR AND HUMAN RESOURCES DISPENSATION IN MUNICIPALITIES THAT ENHANCES SERVICE DELIVERY.

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: PROMOTE THE CREDIBILITY AND RELEVANCE OF THE LOCAL GOVERNMENT AGENDA IN NATIONAL POLICY AND PROGRAMMES

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: PROMOTE THE ENHANCEMENT AND MOBILISATION OF EXISTING CAPACITY WITHIN THE LOCAL GOVERNMENT SPHERE TO SHARE RESPONSIBILITY FOR ITS OWN DEVELOPMENT

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: TO MAINSTREAM ISSUES OF GENDER, YOUTH, PEOPLE AND HIV/AIDS AS CENTRAL CROSS-CUTTING ISSUES IN LOCAL GOVERNMENT DEVELOPMENTAL AGENDA

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: TO FACILITATE AND SUPPORT THE CAPACITY OF MEMBER MUNICIPALITIES LOCALLY AND THROUGHOUT THE CONTINENTAL AND INTERNATIONAL EXCHANGES AND PEER LEARNING IN KEY AREAS

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: TO FACILITATE AND SUPPORT THE CAPACITY BUILDING OF MEMBER MUNICIPALITIES LOCALLY AND THROUGH CONTINENTAL AND INTERNATIONAL EXCHANGES AND PEER LEARNING IN KEY AREAS AND QUALITY OF SERVICES TO ITS MEMBERS

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: TO ENSURE THAT SALGA ENHANCES AND MAINTAINS A HIGH PROFILE POSITION LOCALLY, REGIONALLY AND INTERNATIONALLY

PERFORMANCE AGAINSTPRE-DETERMINED OBJECTIVES STRATEGIC OBJECTIVE: PROMOTE A LAWFUL GOVERNANCE SYSTEM WHICH WILL ENABLE SERVICE DELIVERY IN A DEVELOPMENTAL STATE

FINANCIAL REVIEW REVENUE • SALGA’s budget for 2005/06 financial year totals to R161 934 000 • SALGA derives its revenue mainly from membership levies paid by municipalities • Percentage distribution of budgeted income • Membership levies 49% • Donor Funding 33% • Grants from DPLG 11% • Sponsorship 0.4% • Other (interest, etc) 0.6%

BUDGET REVIEW 2005 – 06 FINANCIAL YEAR