Unit Standard 116358: Contribute to the strategic
planning and planning process in a SA municipality
-Dr Len Mortimer
Group 1: Strategic Management, budgeting
Implementation and Performance management
Module 3: Strategic planning and multi year Income and
expenditure management
The full programme
Group
Modules
1. Strategic Management;
Budgeting Implementation
& Performance
Management
2. Municipal Accounting & Risk
Management
3. Strategic Planning & Multi Year Income & Expenditure
Management
6. Budgeting Principles & Cycles
7. Financial Reports & Performance Management
3.
Governance & Legislation
4. & 5. Costing & Capital
8. Cash, Investment, Asset, Liability Management
4. Risk Management; Internal Control Framework Design
and Audit Planning and Implementation
1. Stakeholder Consultation & Ethics in Municipal Finance
2. Intergovernmental Fiscal Relations, Legislation & Policies
affecting Municipal Financial Management
9. Capital Planning & Financing & Costing Principles
Planning; Municipal IT
5. Managing Information Technology Resources in
Support & Project
Municipal Finance
Management
6. Supply Chain Management & 10. Municipal Supply Chain Management
11. Public Private Partnerships
Public Private Partnerships
1
26 US ID’s:
116339
116340
116341
116342
116343
116344
116345
116346
116347
116348
116351
116353
116357
116358
116360
116361
116362
116363
116364
119331
119334
119341
119343
119348
119350
119352
The content
NQF Le 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5
Credits
10 11 12 15 10 10 15 10 15 8 12 12 8 15 8
CMFM
48965
C C E C F C C C C F E C E C E E C C C
Key
Certificate SAQA ID - 48965 - 166 credits; F = Fundamental; C = Core; E = Elective (1)
8 11 12 8 12 12 15 15 12 15 12
Not applicable for
CMFM
Acc Off X
X X X
X
X
X
X
X X X X X X X
CFO
X
X X X
X
X X X
X
X X X X X X X X X X X
Snr M
X
X
X
X X
X
X
MidFin X
X
X
X
SCMH
X
X X X
X
SCMM
X
X
X
X X
X
X X X
X X X X X X X X
X X X X X X X X X
X
X X
X
X X X X X
X X
X X X X X
X
Unit standard details
Structure: 15 credits on NQF level 6
Outcomes:
On completion of this unit standard, you should be able to:
1. Formulate vision and mission statements in a South African
municipality as required by the local government legislative
framework
2. Conduct a stakeholder analysis and develop a framework for a
community participation process.
3. Identify key performance areas applicable to institutional
strategies as required by the local government legislative
framework
4. Formulate institutional strategies.
5. Demonstrate knowledge of the legislative framework for
integrated development planning and apply requirements of
legislation.
6. Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes.
2013/01/19
7
4
2
Specific US 116358 outcomes
• UNIT 1: Formulate vision and mission statements in a South
African municipality as required by the local government
legislative framework
• UNIT 2: Conduct a stakeholder analysis and develop a
framework for a community participation process
• UNIT 3: Identify key performance areas applicable to
institutional strategies as required by the local government
legislative framework
• UNIT 4: Formulate institutional strategies
• UNIT 5: Demonstrate knowledge of the legislative framework
for integrated development planning and apply requirements
of legislation
• UNIT 6: Formulate programs and develop methods for
monitoring the implementation of a strategic plan and related
programmes
Assessment plan
No
Type
Weight
Start date
1
Formative
0%
First day
2
Individual
assessment
50%
Last day
Submission
date & time
Nature, content & conditions
Group activities as per the
Learner Guide and analysing the
National Development Plan 2030
Last day
Individual assignment:
City of Harare
“Forward with services to the people”
The Harare City Council aims to provide and maintain sound infrastructure and efficient
services. The Harare City Council is dedicated to provide an enabling environment which
offers first class municipal services and goods ......”.
3
Individual
work-based
assignment
50%
Last day
One calendar Critically analyse the IDP
month later
document (50 marks) and the
organisation performance
evaluation (50 marks) in your
municipality
3
US 116358 Unit standard assessment plan
1
Individual
assessment
Open book
controlled class
test
Last day of
contact
session
08.30
Last day of
contact
session
10.30
Class test to cover
following:
Case study
Open book test 50
marks
2 hours
In preparation
Read case study
2013/01/19
2
Individual
work-based
narrative
assignment
7
Last day of
contact
session
08:00
One
calendar
month
after last
day of
contact
session at
23:59
Instructions follow
below assessment
plan. Under heading
summative
assessment.
4
Notional hours: 15 credits, 150 hours:
Class contact including class assessment: 20 hours.
Take home preparation of individual and small group
exercises and class assessment Learning Tasks of Learner
Guide: 6 hours.
Preparation of take-home assignment: 124 hours.
The assignment should be at least 10 pages excluding cover pages and annexures.
Critically analyse the IDP document and organisation performance evaluation in a
municipality and:
1) List the legislation that an IDP should comply with.
2) List the legislation, policy and regulations that have been excluded in the IDP
under review. Provide reasons for your statement.
3) Do a SWOT, PESTLE, STEEP or another analysis of the IDP under review.
4) Comment if the link between the IDP and SDBIP under review is adequate, with
reference to the KPAs and KPIs.
5) Discuss the KPAs, KPIs and targets in terms of its suitability to the IDP under
review?
6) Has the annual performance report been drafted with a clear link to the IDP
under review?
5
Assessment Policy
Assessment conditions summary (see full policy)
• Each Unit Standard will have at least two individual assessments for determining competence (or not yet
competent). One assessment will be scheduled to take place during the contact session and the other to
be submitted one calendar month after the last day of the contact session
• The facilitator/assessor of the particular Unit Standard must prepare an assessment plan and explain it
at the beginning of a Unit Standard contact session
•
It is possible for a participant to only complete the Unit Standard registration form and do the
assessments as scheduled, while not attending the rest of the contact time
BUT
• A participant found not yet competent from the first assessments will only be given a second
opportunity for assessment if he/she has attended at least eighty per cent of the contact time
• A participant that has – for proven work-related / serious health reason – not been present at the
contact session assessment(s), will only be given one other opportunity with participants referred to
above if he/she has attended at least fifty per cent of the contact time
• The concession assessment opportunity referred to in the previous two paragraphs will be scheduled as
a consultative process between facilitators and SDF’s involved
• A participant that has completed the contact time assessment, but has for a proven work-related or
serious health reason been prevented from submitting the take-home assessments by the due date, will
be granted a maximum of two weeks extension of time to submit, where after no further extension will
be given
• The second assessment opportunity for resubmission of the take-home assignment must be
resubmitted within one calendar month of the release of results to the SDFs
• All communication with participants involved will be done through the municipal SDF
ASSESSMENT CRITERIA
• In assessing submitted work, the following will carry
more weight:
• Originality, knowledge, insight, application, analysis
ability, comprehension and acknowledgement of
your sources
• Credibility of /and sufficiency of evidence
• Length of assignments and time spent-Assessor and
SETA
• Save work on website with US nr and Surname and
Initials
• For example Assignment US 116358 Mortimer NL
6
• Discuss principles of assessment
• How to approach assignment and class assessment
POE
• Portfolio of evidence
• All group work and individual work handed in with
Name and surname-to be marked submit or hand in
• ID no
• Date
• Municipality
• Unit Standard number
7
GROUP 1
Strategic Management; Budgeting Implementation &
Performance Management
Module 6
Strategic Planning & Multi Year Income & Expenditure
Management
Unit standard
SAQA 116358
Contribute to the strategic planning process in a
South African municipality
15
Time management
Day one:
08h30 – 16h00
Units: 1 & 2, 3
Group Activities
Day two:
08h30 – 16h00
Units: 4 & 5, 6
Group Activities
Day three
08h30 – 10h30
Assessment
8
Contribute to the
Strategic Planning Process in a
South African Municipality
Vision & Mission Statements
in a South African Municipality &
the Local Government Legislative Framework
12
Learning Outcomes
• Identify various Role-players
• Design a Formulating Process
• Evaluate different Municipal Mission
Statements
• Formulate Programmes to carry out Service
Delivery Activities required to support an
already formulated mission statement
12
9
Key Concepts
•
•
•
•
•
•
•
Vision
Mission
Strategy formulation
Stakeholders
Role players
Negotiation
Planning Process
12
Introduction/Overview
•
•
•
•
Various pieces of Legislation
Roles, Responsibilities & Processes
Participatory Democracy
Strategic Planning & Implementation
12
10
Unit 1: Purpose of Strategic Planning
• Solomon 3000 years ago: Where there is no vision, the people
perish.
• To plan ahead;
• Define objectives;
• Assess internal & external situation;
• To formulate strategy;
• Evaluate progress; and
• Make judgements as necessary to stay on track.
GENERALLY DEALS WITH
• What do we do?
• For whom do we do it?
• How do we excel?
Strategic Planning Process
•
•
•
•
•
Vision, Mission & Objectives
Environmental Scanning
Strategy Formulation
Strategy Implementation
Evaluation & Control
13
11
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
4. Strategic planning process
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Vision, mission, value & objectives
Vision
• The statement of the ideal situation the municipality
would like to achieve in the long term;
• It outlines what the organisation wants to be; and
• It is a long-term view and concentrates on the future.
Examples:
• A world without Poverty;
• An administration that functions optimally;
• The leading municipality that offers basic services to all
our residents;
• School of First Choice.
14
12
Unit 1: Vision & mission statements in a South African municipality
& local government legislative framework
Mission
• Describes the organisation’s basic function in society;
• Why does the organisation exist?
• What does it do to achieve its vision?
• Describes the organisation’s business vision, including the unchanging
values and purpose of the institution and forward-looking visionary goals
that guide the pursuit for future opportunities;
Examples:
• Providing jobs for the homeless and unemployed;
• To strive for an united administration that is equipped with capacitated
staff, compliant with statues, outcomes based and future orientated;
• To provide basic services in a sustainable manner to residents in the
municipal area and be accountable to the public at large;
• To provide quality education to all learners and to ensure sustainability by
collecting all due fees.
14
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Mission Statement vs Vision Statement
• Mission describes organisation now;
• Vision describes what the organisation wants to be in future.
Mission Statement
Vision Statement
About:
How you want to get where you
want to be
Where you want to be
Answer:
What do we do?
Why are we here?
Time:
Present leading to the future
Talks about your future
Function:
Lists the broad goals for which
the organisation is formed
Lists where you see
yourself some years from
now
Change:
May change, but should still tie
back to core values and vision
Should remain intact
because it speaks to what
you represent, not just
what you do
14
13
Unit 1: Vision & mission statements in a South African municipality
& local government legislative framework
Values
• Basic beliefs of the people who work in the organisation;
• It drives an organisations’ culture and provide a framework in which
decisions are made;
• Includes business principles and commitment by staff;
Examples:
• Integrity
• Transparency
• Dedication
• Loyalty
• Excellence
• Innovation
• Accountability
• Responsiveness
• Honesty
• Inclusiveness
14
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Objectives
• The clear statements of what the municipality would like to
achieve in the medium term to deal with the challenges
identified;
• Provide guidance in the organisation;
• Set at all levels in the organisation;
• Everybody knows what is expected individually, functional
unit & entire organisation.
Examples:
• To provide clean water to all residents;
• To build 1000 RDP standard houses;
• To submit AFS to AG by 30 August;
• To chance all credit electricity meters to pre-paid meters.
14
14
Unit 1: Vision & mission statements in a South African
Environmental scan
municipality & local government legislative framework
Environmental Analysis: Internal & external
SWOT
• S – Strengths
• W – Weaknesses
• O – Opportunities
• T – Threats
Pest
• P – Political
• E – Economic
• S – Social
• T – Technological
STEER
• S- Social/Cultural
• T-Technological
• E-Economic
• E-Ecological
• R-Regulatory
EPISTEL
• E-Environmental
• P-Political
• I-Informatic
• S-Social
• T-Technological
• E-Economic
• L-Legal
15
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
SWOT Analysis
Positive factors
Negative factors
Internal factors
Strengths
Weaknesses
External factors
Opportunities
Threats
S+W = internal and relate to the present situation
O+T = external and relates to changes in the environment which will impact
the organisation
Match
Convert
Strengths
Weaknesses
With
Into
Opportunities
Strengths
e.g.: Skills gap - Invest in training
15
15
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Examples of Potential Organisational Strengths (Internal):
Things the organisation is good at;
Serve as cornerstone of strategy;
Should be protected and build upon.
Achieving economies of scale
Technological leadership
High quality services
Good reputation
Leadership & management skills
Distribution network
Financial resources
Employee skills
Development capabilities
High productivity
15
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Examples of Potential Organisational Weaknesses (Internal):
Source of competitive disadvantage;
Things the organisation lacks or does poorly;
Issues that may constrain the organisation in achieving its objective;
Should be seen as areas for improvement;
Seek ways to reduce or eliminate.
Inefficient plant
Cash flow problems
Outdated technology
Low productivity
Poor quality services
Inadequate distribution
Lack of innovation
Skills shortage
Weak reputation
De-motivated staff
High costs
15
16
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Examples of Potential Organisational Opportunities (External):
Creates positive potential for the organisation to achieve its objectives.
Technological innovation
Higher economic growth
New demand
EU/AU/SADC enlargement
Market growth
Diversification opportunities
Demographic change
Deregulation of the market
Social or lifestyle change
Government spending
programmes
Weather conditions
Topography(Coast, mountains)
15
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Examples of Potential Organisational Threats (External):
External development that may prevent the organisation from
achieving its objectives.
Change in customer needs
and priorities
Economic downturn
Demographic change
Higher input costs
New regulations/ legislation
Political instability
15
17
Types of analysis
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Political
Economic
Social
Technological
Environmental
regulation
Economic growth
Income distribution
Government spending
on research
Taxation
Monetary policy
Demographics
Government focus on
technological effort
Consumer protection
Government spending
Labour mobility
New discoveries
Labour law
Minimum wage/grants Lifestyle changes
Rate of technological
obsolescence
Government attitude
Tax impact
Education
Energy use and costs
Exchange rates
Fashions
Impact of changes in
IT
Inflation
Health& welfare
Changes in material
sciences
Living conditions
Internet
15
18
STRATEGY FORMULATION
• Given the information from the environmental
scan, the organisation should match its strengths
to the opportunities that it has identified, while
addressing its weaknesses and external threats.
• Once the municipality has worked out where it
wants to go and what it needs to do to get there,
it needs to work out how to get there. A
development strategy is about finding the best
way for the municipality to meet a development
objective.
15
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Strategy
• Strategy formulation
Match strengths to opportunities and address weaknesses
and external threats;
How are things done/ objectives reached?
Examples
• To collect more revenue
• To ensure financial sustainability
• To maintain infrastructure
• To train and capacitate staff
15
19
STRATEGY IMPLEMENTATION
• The selected strategy is implemented by
means of programmes, budgets and
procedures. Implementation involves
organisation’s resources and motivation of the
staff to achieve objectives. The way in which a
strategy is implemented can have a significant
impact on whether it will be successful. In a
large organisation, those who implement
strategy will likely be different from the
people who formulated it.
16
Strategic Objectives
Then set strategic objectives
• Strategic objectives begin with such words as:
–
–
–
–
To have
To be
To became
To achieve
• and end with a month, year.
40
16
20
• For this reason care must be taken to
communicate the strategy and the reasoning
behind it. Otherwise the implementation
might not succeed if the strategy is
misunderstood or if lower managers resist its
implementation because they do not
understand why the particular strategy was
selected.
16
• From the Municipality’s point of view this is
synonymous to ensuring that the correct
people are delegated for particular duties by
the Municipal manager and the CFO.
16
21
Strategic Objectives (Cont)
• A strategic objective must be:
–
–
–
–
–
–
Measurable or verifiable
Achievable or feasible
Flexible or adaptable
Consistent with the rest of your strategic plan
Does it stretch your staff without breaking them
Is it clear, easy to understand, and inviting to achieve
43
16
Strategic Objectives: examples
• To build and enhance the governance system in order to
enable sustainable development and service delivery.
• To oversee the implementation of the intergovernmental
programme of support to the Institution of Traditional
Leadership to perform their constitutional mandate.
• To build and strengthen the capability and the accountability
of Provinces and Municipalities to implement their
constitutional mandate.
• To monitor, evaluate and communicate the impact of
government programmes in municipal areas in order to
enhance performance, accountability and public confidence.
• To strengthen the dplg's organisational capability and
performance to deliver on its mandate.
44
16
22
Strategic Objectives: examples (Cont)
Growth
• Achieve R1 billion in annual revenues with R60 million in profits.
• Maintain a net profit rate equal to or better than the best world class
companies in our industry.
• Have investment policies and fiscal procedures to foster aggressive growth
and profitability.
• Have a comprehensive business development plan.
• Have 6 projects in 3 countries.
Management
• Have a management team capable of meeting our strategic objectives.
• Have a complete management team.
Safety
• Have an injury free workforce.
45
16
Strategic Objectives: examples (Cont)
Administrative
• Have standardized cost management and financial systems.
• Have standard operating procedures.
Employees
• Have a comprehensive career development program.
• Achieve an employee turnover rate less than 5%.
• Define and communicate organizational roles, responsibilities, and expectations
for all employees.
Natural resources
• Produce coal on our lands.
Physical plant
• Have all digital equipment.
• Have a replacement equipment financing plan.
• Have a technology development and implementation plan.
Quality
• Complete the ISO 9000 certification of all projects.
• Achieve zero errors and omissions claims.
• Achieve compliance with federal, state and local environmental mandates.
46
16
23
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
Strategy (Cont.)
• Strategy implementation
Implemented by means of programmes, budgets and
procedures and involves resources of the organisation and
motivation of the staff to achieve objectives
• Evaluation and control
The steps – define parameters, define clear targets,
measure, compare to pre-determined standard, make
changes
16
EVALUATION AND CONTROL
• The implementation of the strategy must be
monitored and adjustments made as needed.
Evaluation and control consists of the following
steps:
• define parameters to be measured;
• define target values for those parameters;
• perform measurement;
• compare measured results to the pre-defined
standard;
• make the necessary changes.
16
24
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
5. Role-players needed for the formulation of
municipal “vision” and “mission” statements
Politicians: set policy direction
Officials: implement policy
Create Representative Forum to:
• Encourage participation
• Opportunity to present interests of stakeholders
• Structure for discussion
• Ensure proper communication
• Monitor planning & implementation process
17
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
5. Role-players needed for the formulation of
municipal “vision” and “mission” statements
Forum may include:
•
•
•
•
•
•
•
•
•
•
Mayor
Members of the executive committee of the council
Councillors including district councillors
Municipal employees
Traditional leaders
Ward committee representative
Heads of departments
Representatives from organised stakeholder groups
People who fight for the rights of unorganised groups
Resource people or advisors
• Community representatives
17
25
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
6. Process for formulating “vision” and “mission”
statements
• The success is in the consultative process, the
mission as high level policy directive requires
council ratification
• In wording mission statement, consider products,
services, markets, values and concern for public
image – mission should guide prioritisation of
products and services
• In refinement, try to add or delete words from
statement to assess scope change and measure
how concise it is
18
• The MFMA outlines that the Mayor holds the ultimate
responsibility for the IDP process and public
participation of the financial resources of a
municipality.
• According to s53(1)(a)(b) of the MFMA the mayor must
provide a general political guidance over the budget
process and the priorities that must guide the
preparation of the IDP and budget; coordinate the
annual revision of the integrated development plan in
terms of section 34 of the MSA and determine how the
integrated development plan is to be taken into
account or revised for the purposes of the budget.
18
26
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
7. Evaluate different statements in the context of the
actual service delivery programmes and evolving
macro environment
• Mission evaluation can be done in context of service delivery
programmes – mission maps path to where municipality
hopes to achieve medium or long term goals
• Evaluation involves all role players – get widespread
consensus
• SDBIP used to evaluate level of service delivery – path set by
vision and mission allows for evaluation
• Macro environment the broad external environment –
assessment of social, economic, political (also physical, legal,
cultural, technological) forces and impact on vision, mission,
objectives, strategies essential for appropriateness
19
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
ACTIVITY/CLASS
DISCUSSION
p20
27
Unit 1: Vision & mission statements in a South African
municipality & local government legislative framework
• How would you identify a mission and a
vision in your municipality?
• Describe a process you would follow when
formulating a strategy in your municipality
• Identify the role players in your municipality
and describe their roles and responsibilities
20
US 116358
Unit 2: Conduct a stakeholder analysis
and develop a framework for a
community participation process
28
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
1. You should be able to identify various stakeholders
that should be consulted in a municipal strategic
planning process;
apply current stakeholder
participation analysis and participation practices in
a municipal strategic planning process; identify
principles from legislation on community
participation as part of IDP
2. Key concepts: Negotiations, strategic planning,
communication, objectives
21
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
3. Introduction
This unit about the involvement of people within
strategic planning:
WHY?
TO CREATE AWARENESS + ACCOUNTABILITY
TO INVOLVE COMMUNITIES IN THE AFFAIRS OF
GOVERNMENT
TO DETERMINE COMMUNITY NEEDS
21
29
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
Stakeholder
A person or organisation with an interest in a service,
programme or project, how it is delivered and the outputs and
outcomes achieved.
Stakeholder Engagement
The process of engaging stakeholders in specific aspects of
municipal affairs including consultation, negotiation and
communication.
22
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic
planning process
• Municipality: adopt process plan
• Communities: communicate basic needs
• National & Provincial Government:
various programmes, IGR & support
22
30
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
The Constitution, 1996
•
Sec 152(1)(e): to encourage the involvement of communities and
community organisations in the matters of local government;
•
Sec 153(a): give priority to the basic needs of the community; and
•
Sec 195(e): people’s needs must be responded to, and the public
must be encouraged to participate in policy making;
22
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
The White Paper on Local
Government
Section B: Developmental Local Government
Developmental local government is local government committed to working
with citizens and groups within the community
Batho Pele
1.
CONSULTATION: You should be consulted about the level and quality of the services
you receive, and whenever possible you should be given a choice about the services
that are offered.
2.
3.
4.
SERVICE STANDARDS
ACCESS
COURTESY
5. Information
6. Openness and Transparency
7. Redress
8. Value for money
22
31
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Structures Act
Act 117 of 1998
Sec 8: Types of category A municipalities
• (c): a municipality with a collective executive system combined
with a ward participatory system
• (d): a municipality with a collective executive system combined
with both a subcouncil and a ward participatory system
• (g): a municipality with a mayoral executive system combined with
a ward participatory system
• (h): a municipality with a collective executive system combined
with both a subcouncil and a ward participatory system
22
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Structures Act
Act 117 of 1998
Sec 9: Types of category B municipalities
• (b): a municipality with a collective executive system combined
with a ward participatory system
•
(d): a municipality with a mayoral executive system combined with
a ward participatory system
•
(f): a municipality with a plenary executive system combined with
a ward participatory system
22
32
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Structures Act
Act 117 of 1998
Sec 19: Municipal objectives
• (2): A municipal council must annually review– (c): its processes for involving the community
•
(3): A municipal council must develop mechanisms to consult the
community and community organisations in performing its
functions and exercising its powers.
22
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Systems Act
Act 32 of 2000
Chapter 4: Community Participation; Sections 16 - 22
• (16)(1)(a): encourage and create conditions for participation
•
(b)(i): building capacity of community to participate
•
(c): annually allocate funds for above
• (17)(1)(a): participation through political structures
Chapter 5: IDP; Sections 23 – 37
• (24): Co-operative government = consult other spheres and munics
• (28): Process plan ito cptr 4
• (29): IDP process ito cptr 4;
22
33
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Planning and
Performance Management Regulations
GNR 796 dd 24 August 2001
Reg 9(2)(a): In setting KPI’s, a municipality must ensure that
communities are involved
22
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Finance
Management Act
Act 56 of 2003
Sec 21: Budget preparation process
• (1): The mayor of a municipality must•
(b): at least 10 months before start of budget year, table a time
schedule
•
(iv): any consultative process re preparation, tabling, etc of
budget & review of IDP and policies
• (2)(d): consult DM, LM’s, PT, NT, organs of state
Sec 23: Consultations on tabled budgets
22
34
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
4. Stakeholders in a municipal strategic process
LG: Municipal Property Rates
Act
Act 6 of 2004
•
Sec 4: Community participation; before adopting Rates Policy ito
Chptr 4 of MSA
•
Sec 5: Annual review of rates policy; through budget process ito
sections 22 & 23 of MFMA
22
COMMUNITIES
• The municipal strategy is based on community needs and
priorities.
• Communities have the chance to participate in identifying
their most important needs.
• The MSA, s16(b)(i), further stipulates that if need be the
community needs to be empowered in this regard to
enable it to participate in the affairs of the municipality.
These provisions does not imply that the community has to
interfere in the administrative duties of the municipality.
• The IDP process encourages all stakeholders who reside
and conduct business within a municipal area to participate
in the preparation and implementation of the development
plan.
23
35
NATIONAL AND PROVINCIAL
GOVERNMENT
• Many government services are delivered by
provincial and national government departments
at local level, for example: police stations, clinics
and schools.
• Municipalities must take into account the
programmes and policies of these departments.
The departments should participate in the
strategic planning process so that they can be
guided how to use their resources to address
local needs.
23
The roles and responsibilities of national
government with respect to local government
include:
• A strategic role
• Providing a legislative framework for local
government
• Providing a framework for municipal capacity
building and supporting municipalities
• Support for key institutions
• Local government finances
• Monitoring and oversight:
• Intervention: (in terms of Section 139 of the
Constitution)
23
36
Provincial government’s roles include:
•
•
•
•
A development role
An intergovernmental role
Regulatory role, section 155(7) of the Constitution
An institutional development and capacity-building
role: section 155(6) of the Constitution
• A fiscal role
• A monitoring role, section 152 of the Constitution.
• An intervention role, section 139 of the Constitution,
24
CURRENT PRACTICES WITH RESPECT TO STAKEHOLDER
ANALYSIS AND PARTICIPATION IN A
MUNICIPAL STRATEGIC PLANNING PROCESS.
• Current practices with respect to stakeholder
participation and analysis in a municipal
strategic planning process is provided for by
the legislative framework on the MSA. The Act
provides for the mechanisms, procedures and
processes for community participation in such
instances.
24
37
• Stakeholder analysis is best explained through
the Municipal Structures Act. Sect 19 and
whole of Chapter 4. There is a formal
participatory structure to be followed as per
the Municipal Structures Act, of 2000.
25
• The MSA Section 17 outlines that participation
by the local community in the affairs of the
municipality must take place through political
structures, the mechanisms, processes and
procedures for participation in municipal
governance established in terms of the MSA,
councillors and other appropriate
mechanisms, processes and procedures
established by the municipality.
25
38
Section 17 of MSA
• 17 Mechanisms, processes and procedures for community
participation
• (1) Participation by the local community in the affairs of the
municipality must take place through• (a) political structures for participation in terms of the Municipal
Structures Act;
• (b) the mechanisms, processes and procedures for participation in
municipal governance established in terms of this Act;
• (c) other appropriate mechanisms, processes and procedures
established by the municipality;
• (d) councillors; and
• (e) generally applying the provisions for participation as provided
for in this Act.
• (2) A municipality must establish appropriate mechanisms,
processes and procedures to enable the local community to
participate in the affairs of the municipality, and must for this
purpose provide for• (a) the receipt, processing and consideration of petitions and
complaints lodged by members of the local community;
• (b) notification and public comment procedures, when appropriate;
• (c) public meetings and hearings by the municipal council and other
political structures and political office bearers of the municipality,
when appropriate;
• (d) consultative sessions with locally recognised community
organisations and, where appropriate, traditional authorities; and
• (e) report-back to the local community.
39
• (3) When establishing mechanisms, processes and
procedures in terms of subsection (2) the municipality must
take into account the special needs of• (a) people who cannot read or write;
• (b) people with disabilities;
• (c) women; and
• (d) other disadvantaged groups.
• (4) A municipal council may establish one or more advisory
committees consisting of persons who are not councillors
to advise the council on any matter within the council's
competence. When appointing the members of such a
committee, gender representivity must be taken into
account.
• The Act further outlines that a municipality
must establish appropriate mechanisms,
procedures and processes to enable the local
community to participate in the affairs of the
municipality. Special provision needs to be
taken into cognisance if there are people who
have special needs like people who cannot
read, disabled, and other disadvantaged
people
25
40
6. PRINCIPLES FROM LEGISLATION PERTAINING TO
COMMUNITY PARTICIPATION AS PART OF INTEGRATED
DEVELOPMENT PLANNING
• The pieces of legislation making provision for
this are in the MSA, the MFMA and the
Constitution. The MSA dictates that municipal
planning needs to be developmentally
oriented. This according to the Act, this will
ensure that it strives to achieve the objectives
of local government as set out in section 152
of the Constitution; and gives effect to its
developmental duties as required by s153 of
the Constitution.
25
• Legislation requires that municipal planning must
be done in cooperative government. Section
24(1) states that planning undertaken by the
municipality must be aligned with, and
complement the development plans and
strategies of other affected municipalities and
other organs of state so as to give effect to the
principles of cooperative government contained
in s41 of the Constitution which makes provision
for xyz.
25
41
Key deadlines-process plan MFMA
•
•
•
•
Budget preparation process
21. (1) The mayor of a municipality must—
(a) co-ordinate the processes for preparing the annual budget and for
reviewing
the municipality’s integrated development plan and budget-related
policies to
ensure that the tabled budget and any revisions of the integrated
development
plan and budget-related policies are mutually consistent and credible;
(b) at least 10 months before the start of the budget year, table in the
municipal
council a time schedule outlining key deadlines for—
•
Therefore before end of August
•
•
•
•
Unit 2: Conduct a stakeholder analysis & develop a framework for a
community participation process
Possible methods
• Invite to register & keep data base
• Ward committees
• Village committees
• Street committees
• Community based planning
• IDP representative forum
• Community Development Workers & Ward clerks
• Annual Report
• Surveys
• Newsletters, posters, adverts, banners
25
42
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
ACTIVITY/CLASS
DISCUSSION
p26
Unit 2: Conduct a stakeholder analysis & develop a
framework for a community participation process
• Describe your municipality’s participatory
framework in the strategic planning process
• Is it in line with the requirements of the
Municipal Systems Act, 2000?
• What are its shortcomings?
43
Session 08.15 to 10.00
Slides 87- 129
US 116358
Unit 3: Identify key performance areas
applicable to institutional strategies as
required by the local government
legislative framework
44
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
1. You should be able to identify key
performance areas applicable to institutional
strategies as required by the local
government legislative framework;
2. Align them with vision and mission;
3. Evaluate them
arrangements
in
terms
of
institutional
27
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
2. Introduction:
• The purpose of IDP: to ensure that the resources
available to the Municipality are directed at the
delivery of projects and programmes that meet
agreed development priorities
• It is important to check that:
–
–
–
–
The delivery is happening in the planned manner
The municipality is using its resources most efficiently
It is producing the envisaged quality
The delivery is having the planned effect on the lives of the
people in the municipality
• Plan, monitor, evaluate, measure and review
performance against targets set
27
45
SFA
Strategic Focus Area
DO
1.1
1.2
1
AN OPPORTUNITY CITY
1.3
Ensure mobility through the implementation of an effective public transport system
1.4
Leveraging the city’s assets to drive economic growth and sustainable development
1.5
2.1
2
A SAFE CITY
Resourcing of Departments in Pursuit of Optimum Operational Functionality
2.3
Improved efficiency through information and technology driven policing
4
AN INCLUSIVE CITY
5
A WELL-RUN CITY
Improve efficiency of policing and emergency staff through effective training
3.1
Improve safety and security through partnerships
Providing access to social services to those that need them
3.2
Promote a sustainable environment through the efficient utilisation of resources
3.3
Providing services to all the citizens of the city
3.4
Ensure innovative human settlements for increased access to those that need them
2.5
A CARING CITY
Maximise the use of available funding and programmes for training and skills
development
Expanding staff and capital resources in the policing departments and emergency
services in order to provide improved services to all, especially the most vulnerable
communities
2.2
2.4
3
Diretorate Objective
Create an enabling environment to attract investment to generate economic growth
and job creation
Provision and maintenance of economic and social infrastructure to ensure growthled infrastructure development
3.7
Assess the possible sale/transfer/transaction of rental stock to clearly identified
beneficiaries within established criteria.
Provide for the needs through improved services in informal settlements and
backyard residences
Provision of effective Environmental Health services
3.8
Provision of effective Air Quality Mngt & Pollution (incl noise) Control Programmes
3.9
Provision of effective Primary Health Care services
3.10
Provision of Substance Abuse Outpatient Treatment and Rehabilitation services
3.5
3.6
5.1
Ensure responsiveness by creating an environment where citizens can be
communicated with and be responded to
Provide facilities where citizens can feel at home with
Ensure a transparent and corruption-free government
5.2
Establish an efficient and productive administration that prioritizes delivery
5.3
Ensure financial prudence with clean audits by the Auditor General
4.1
4.2
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
Key performance areas
Area in which the munic plays a role towards
delivering services;
Development priorities and objectives clustered in
respect of the following key performance areas:
• Municipal Transformation and Organisational
Development
• Infrastructure Development and Basic Service
Delivery
• Local Economic Development
• Municipal Financial Viability and Management
• Good Governance and Public Participation
28
46
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
Key performance indicators
Municipal Systems Act, 2000:
• measurable, relevant, objective and precise
• and communities must be involved in their formulation
28
• Key performance indicators relating to inputs,
outputs and outcomes must be set for each of
the development priorities, clustered under the
above five key performance areas (Municipal
Systems Act No. 32, 2000, Section 41(1) (a)). The
formulation of these key performance indicators
takes place as part of a municipality’s integrated
development planning process (Municipal
Systems Act No. 32, 2000, Section 26(i)). The key
performance indicators must be measurable,
relevant, objective and precise; and communities
must be involved in their formulation (Municipal
Systems Act No. 32, 2000, Section 42).
28
47
• The municipality must ensure that it has key
performance indicators for all its administrative
units and employees and for every municipal
entity and service provider with whom the
municipality has entered into a service delivery
agreement. If the municipality amends its
integrated development plan, the key
performance indicators must be reviewed within
a month of the adoption of the amendment.
28
• According to section 44 (2) of the Local
Government: Municipal Systems Act, 2000
(Act 32 of 2000), the executives of a
municipality are required to:
2.7.1. identify the needs of the community;
2.7.2. review and evaluate those needs in order
of priority.
29
48
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
3. Translation of community needs into key
performance areas (1)
Community needs can be identified through:
• Direct input from the community through area
forums, ward committees or mayor’s listening
campaigns
• Input from special interest groups through
summits and conferences
• Indirect input through quality-of-life surveys and
opinion polls
• As identified during Unit 2
29
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
3. Translation of community needs into key
performance areas (2)
Section 73 of the Municipal Systems Act, 2000
requires that municipalities give effect to the
provisions of the Constitution and:
• give priority to the basic needs of the local
community
• promote the development of the local
community
• ensure that all members of the local community
have access to at least the minimum level of
basic municipal services
29
49
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
3. Translation of community needs into key
performance areas (3)
Municipal services must:
• be equitable and accessible
• economic, efficient and effective use of available
resources
• the improvement of standards of quality over time
• be financially sustainable
• be environmentally sustainable
• be regularly reviewed with a view to upgrading,
extension and improvement
30
• The DPLG framework for municipal indigent
policy draft 2 (and amended); of 24 October 2004
provides the following from the Constitution as
basic necessities, which forms the basis of service
delivery in municipalities. They are:
• sufficient water;
• basic sanitation;
• refuse removal in denser settlements;
• environmental health;
• basic energy;
• health care;
• housing; and
• food and clothing
30
50
• The Local Government: Municipal Systems Act,
2000 (Act 32 of 2000) (‘the Act') requires the
adoption of a 'process set out in writing' by each
municipality (LGL Bulletin 2001(1) p. 6). This
written document is referred to as the process
plan. It must include a programme with periods
for the different planning phases.
• It should also provide appropriate mechanisms,
processes and procedures for consultation with
and participation of local communities, organs of
state, traditional authorities, and other
stakeholders in the formulation of municipal
strategies. Finally, the process plan must identify
all plans and planning requirements binding on
the municipality in terms of provincial and
national legislation.
31
KEY PERFORMANCE AREAS WITHIN A
MUNICIPALITY’S
VISION AND MISSION STATEMENTS
• The IDP delivers products such as a set of
delivery priorities and objectives, a set of
internal transformation strategies, priorities
and objectives, identified projects that
contribute to the achievement of the above
objectives and a financial plan. All
components of the IDP need to be translated
into a set of clear and tangible objectives. The
statement of objectives requires a tangible,
measurable and unambiguous commitment
31
51
KEY PERFORMANCE AREAS WITHIN A
MUNICIPALITY’S
VISION AND MISSION STATEMENTS
• These priorities and objectives may be clustered
into key performance areas (KPA’s), which
represent the broad developmental mandate of
local government. Conversely, the KPA’s are
further translated into Key Performance
Indicators (KPI’s), which are measurements that
indicate whether progress is being made in
achieving the goals. It is recommended that the
setting of municipal KPA’s and KPI’s be based on
the following SMART criteria:
31
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
4. Key performance areas
All IDP components translated into clear and
tangible objectives
Financial Manager
Example
National Key Performance Area
Municipal Financial Viability & Management
Strategic Objectives
To ensure ABC Municipality remains
financially viable
Municipal (Local) Key Performance Areas
Financial Viability
Departmental Objectives
Ensure general financial viability
Projects/Programmes
Debt collection
Key Performance Indicators
Debt coverage=(B-C)/D
B=total operating revenue received
C=operating grants
D=debt service payments
Target
5
Risk
Insufficient cash
31
52
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
Financial Manager
Example
National Key Performance Area
Municipal Financial Viability & Management
Strategic Objectives
To ensure ABC Municipality remains
financially viable
Municipal (Local) Key Performance Areas
Financial Viability
Departmental Objectives
Ensure general financial viability
Projects/Programmes
Debt collection
Key Performance Indicators
% of arrear/outstanding debt recovered
Target
25%/ R 20 m
Risk
Insufficient cash, cash flow problems
31
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
Director: Technical Services
Example
National Key Performance Area
Infrastructure Development & Basic Service
Delivery
Strategic Objectives
Infrastructure Development
Municipal (Local) Key Performance Areas
Water Provision
Departmental Objectives
To obtain Blue Drop Status
Projects/Programmes
Water Purification
Key Performance Indicators
DWA Assessment Result
Target
95%
Risk
Unsafe drinkable water
31
53
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
Activity
Example
National Key Performance Area
Good Governance & Public Participation
Strategic Objectives
Ensure Public Participation ito legislation
Municipal (Local) Key Performance Areas
Democracy & Governance
Departmental Objectives
To conduct IDP Road Shows in all 52 wards to
ensure all needs of the community are
prioritised and attended to
Projects/Programmes
Programme Management
Key Performance Indicators
No of IDP Roads Shows
Targets
52
Risk
Non-compliance
31
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
4. Key performance areas
Key performance areas
Key performance indicators
•
•
•
•
•
Specific
Measurable
Achievable
Realistic
Time-framed
32
54
EVALUATION OF KEY PERFORMANCE
AREAS IN TERMS
OF INSTITUTIONAL ARRANGEMENTS
• The measurement of performance against the
key performance indicators and targets must
be done at least once a year (Municipal
Systems Act No. 32, 2000, Section 41(1)(c)(ii)).
The mechanism to monitor and measure
performance must be devised by the
municipality, after consultation with the
community. The mechanism must measure
quantity (numbers, quotas) as well as quality
(standard, level, consumer satisfaction).
32
• It must compare the effectiveness and cost of the
input that was required to get to the output, and
assess the impact of that output. This section will
present discussion on the framework for
identifying key performance areas, consultative
processes with community stakeholders for
prioritising key performance areas, processes for
engaging other spheres of government and
translation of key performance areas into
appropriate municipal strategies.
32
55
FRAMEWORK FOR IDENTIFYING KEY
PERFORMANCE AREAS
• Municipalities should develop a framework for
identifying key performance areas by defining
individual key performance areas and key performance
indicators that includes criteria to review performance.
• A performance management system provides a
framework for regularly monitoring and evaluating the
municipality’s performance in relation to the objectives
of and indicators in the IDP. The municipalities need to
prepare key performance indicators, which can be used
to check that the IDP is being implemented as planned,
that, resources are being used efficiently, and that
deviations are corrected.
32
• The following Key Performance Areas (KPAs) are
outlined in the Local Government: Municipal Planning
and Performance Management Regulations (2001)
inform the strategic objectives listed in below:
• Municipal Transformation and Organisational
Development.
• Infrastructure Development and Basic Service Delivery.
• Local Economic Development (LED).
• Municipal Financial Viability and Management.
• Good Governance and Public Participation.
33
56
CONSULTATIVE PROCESSES WITH COMMUNITY
STAKEHOLDERS FOR
PRIORITISING KEY PERFORMANCE AREAS
• Municipalities should work with community
stakeholders to provide appropriate levels of
information about the municipal project
including technology, environmental,
performance, potential benefits and
opportunities associated with the project.
Throughout this on-going consultation
program, municipality’s focus should be to
identify and resolve concerns and issues with
the community stakeholders.
33
ENGAGING OTHER SPHERES OF
GOVERNMENT
• There are different ways to engage other
spheres of government in the evaluation of
key performance areas.
• Legislation or government planning processes
often include clear opportunities to solicit
support of their IDP and performance
management process from the provincial
government, National Treasury or the Auditor
General.
33
57
• The extent of engaging other spheres of
government on municipal KPA’s are defined
within the Constitution of 1996, the
intergovernmental fiscal relations Act and other
legislation as follows:
• Sections 156(1), 155(7) and 125(3) of the
Constitution require the national sphere to
support, assist, enable or otherwise develop the
capacity of provinces and local government in
order to attain self-sufficiency, yet interrelated
governance.
34
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
5 Evaluation of key performance areas i.t.o.
institutional arrangements
• Framework for identifying KPA’s
5 National KPA’s
–
–
–
–
Organisation
Department
Section
Individual
• Consultative processes
• Engaging other spheres of government
32
58
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
ACTIVITY/CLASS
DISCUSSION
p34
Unit 3: Identify KPAs applicable to institutional strategies as
required by the local government legislative framework
• Identify KPAs in your municipality
• Describe how the KPAs are aligned with your
institutional strategies as required by legislative
framework
• Describe how these KPAs are aligned with vision
and mission statements
• Outline process to evaluate KPAs in terms of
institutional arrangements
• Assess the performance indicators
34
59
US 116358
Unit 4: Formulation of Institutional
Strategies
Unit 4: Formulation of institutional strategies
1. You should be able to apply participatory processes to
inform institutional strategy; evaluate the economic,
social and environmental context of a municipality
when weighing alternative strategies; identify
institutional strategies in alignment with national and
provincial plans and programmes; develop
programmes to align service delivery activities to
institutional strategies
2. Legislation informs relevance of stakeholder
consultation in municipal strategy
36
60
Unit 4: Formulation of institutional strategies
3. Mechanisms for the involvement of key municipal
partners and stakeholders in the formulation of
strategies
• Generic arrangements:
– Institutionalise public participation
– Structured participation to specify who, on behalf of
whom, which issues, through which organisational
mechanisms, to what effect
• Participation not equally relevant in each stage
of planning, not all procedures equally suitable
• Elected Council ultimate decision-making forum
on IDPs – participation to inform, negotiate,
comment on planning decisions
37
Unit 4: Formulation of institutional strategies
3. Mechanisms for the involvement of key municipal
partners and stakeholders in the formulation of
strategies
• Participatory democracy – the stakeholders
–
–
–
–
–
IDP representative forum
Municipal manager or IDP manager
IDP Steering Committee
Project, programme & sectoral task teams
EXCO/Executive Mayor/committee manage drafting of IDP,
assign responsibilities to the municipal manager, submit plan
for adoption
37
61
Unit 4: Formulation of institutional strategies
3. Mechanisms for the involvement of key municipal
partners and stakeholders in the formulation of
strategies
• Participatory democracy – the stakeholders continued
– Municipality to prepare, decide on, adopt process plan, do
overall management of planning process, ensure inclusion of
stakeholders
– Municipality to ensure formulation is relevant for key
development priorities, national and provincial sector planning
requirements met.
– Municipality through council, adopt and approve IDP and
amend, ensure budget and annual operational plans are linked
to IDP
37
• The EXCO/executive mayor/committee of appointed councillors
must manage the drafting of the IDP, assign responsibilities to the
municipal manager and submit the plan to the municipality for
adoption.
• The municipality must prepare, decide on, adopt a process plan,
and undertake the overall management and co-ordination of the
planning process which includes ensuring that all stakeholders are
involved, appropriate mechanisms for public participation are
applied and periods are adhered to.
• It must ensure that the formulation process is related to the key
development priorities in the municipality and that national and
provincial sector planning requirements are satisfied. The
municipality through council, must adopt and approve the IDP and
also must amend the IDP in accordance with the requirements of
the MEC (see LGL Bulletin 2001 (1) p. 7) and ensure that the budget
and annual operational business plans are linked to and based on
the IDP.
38
62
Unit 4: Formulation of institutional strategies
4. Identifying municipal strategies
Factors determining municipal strategies:
• Priority issues or challenges of the local
community
• Developmental objectives of the municipality
• Developmental opportunities and strengths
• Developmental weaknesses and threats
• Available and accessible resources
• Municipal vision and mission statements
• National and provincial development plans
38
Unit 4: Formulation of institutional strategies
4. Identifying municipal strategies
• Strategies to be appropriate for addressing challenges
of community
• Strategies to be goal oriented to advance development
objectives to achieve vision progressively
• Strategies determined similar to KPAs, only shift in
focus:
– KPAs issues that municipality must direct its resources
towards
– Strategies are means through which resources are deployed
– Strategic objectives the outcome or impact on society
38
63
Unit 4: Formulation of institutional strategies
5. Develop programmes that align to municipal
strategies
• Work out clear details of the programmes:
–
–
–
–
–
Who is going to benefit it?
How much is it going to cost?
How is it going to be funded?
How long would it take to complete?
Who is going to manage the programmes?
• Set clear targets and work out indicators for measuring
performance and impact of individual projects
• Once all programmes have been identified, check for
alignment again with strategic objectives
• All aligned with, contributing to IDP
39
Unit 4: Formulation of institutional strategies
ACTIVITY/CLASS
DISCUSSION
p40
64
Unit 4: Formulation of institutional strategies
• Outline institutional strategies in your municipality
• Formulate participatory structures and roles per
structure in these institutional strategies
• Describe how these institutional strategies are
aligned to legislative framework
• Describe how these institutional strategies are
aligned with vision and mission statements
40
• Session 10.30 – 13.00
• Slides 131-218
65
US 116358
Unit 5: Legislative framework for
integrated development planning and
apply requirements of legislation
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
1. You should be able to demonstrate knowledge of
legislative framework for IDP and apply legislative
requirements, interpret legislative prerequisites for
adoption of IDP; identify core components of an IDP
42
66
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
2. Introduction
• 1992 Earth Summit in Rio, agreement
on global sustainable development
Agenda 21, all countries adopted it
• Roots of all the problems in local
activities – only truly addressed by
local participation
• Local Agenda 21 for improved,
innovative use of resources. Local
Agenda 21 must suit local context
• IDP one approach to Local Agenda 21
42
Introduction
(continued)
• Subsequently, all 180 nations adopted Local Agenda 21,
which translates the Agenda 21 action plan for sustainable
development into a participatory, multisectoral process to
achieve the goals of Agenda 21 through a programme of
actions at a local level.
• Many of the challenges and solutions that Agenda 21
attempts to address have their roots in local activities. Local
Agenda 21 is based on the assumption that development
issues can only be truly addressed by the participation and
cooperation of local role players through local participatory
planning and development processes.
43
67
• Although each local community determines the priorities,
policies and actions of their respective development
agendas, the over-arching goals of the Local Agenda 21
process should underpin local planning and development
processes.
• Local Agenda 21 is a process aimed at the improved and
innovative utilisation of resources (natural, physical,
financial), which will ensure enhanced social benefits while
reducing negative impacts (environmentally and otherwise)
and should be integrated with local development planning
processes. Because of the location nature of the Local
Agenda 21 process, it needs to be adapted to suit local
needs and circumstances within the context of the
following criteria:
43
• It must:
• address economic, social, and ecological needs in an
integrated way;
• include a shared vision for a long term sustainable
future;
• include participatory process with all local role-players
including communities,
• interest groups, and the private and public sectors;
• establish stakeholder groups, forum or equivalent
multi-sectoral community
• groups to oversee the process;
• prepare an action plan with concrete targets;
• establish a monitoring and reporting framework; and
• establish indicators to monitor progress.
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68
• Integrated Development Planning is one of the many
varied approaches to Local Agenda 21 across the
world.
• This study unit endeavours to describe the South
African response to the internationally acclaimed
programme. It does so by;
• discussing the policy and legislative framework of
South Africa to the challenges
• of sustainable development;
• discussing core components of an Integrated
Development Plan;
• describing the process to complete an Integrated
Development Plan;
• describing the process for reviewing Integrated
Development Plans.
44
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
3. Legislative and policy framework for IDP
• Important theme in most major SA policies and
legislation since 1994, also in Constitution is
sustainable development, development that is
people-centred, environmentally sound and
participatory in nature
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
4. Policy framework
•
•
•
•
White Paper on Local Government, 1998
Urban Development Strategy, 1995
National Environment Management Act, 1998
White Paper on Spatial Planning and Land Use
Management, 2001
45
Policy Framework
•
•
•
•
•
•
RDP
GEAR
White Paper on Local Government
Urban Development Strategy (1995)
NEMA Act 107 of 1998
White Paper on Spatial Planning & Land Use
Management (2001)
• ASGISA (2006)
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
5. Legislative framework for Integrated
Development Planning
•
•
•
•
Constitution
Municipal Systems Act, 2000 Chapter 5
Development Facilitation Act, 1995
National Environment Management Act, 1998
48
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
Batho Pele
AND
National Development Plan 2030
71
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
The National Development Plan is a plan for the
country to eliminate poverty and reduce
inequality by 2030 through uniting South
Africans, unleashing the energies of its citizens,
growing an inclusive economy, building
capabilities, enhancing the capability of the
state and leaders working together to solve
complex problems
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
High-level objectives to be achieved by 2030
• Reduce the number of people who live in
households with a monthly income below
R419 per person (in 2009 prices) from 39 % to
zero
• Reduce inequality, as measured by the Gini
coefficient, from 0.69 to 0.60
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
Enabling milestones (1)
•
•
•
•
•
•
Increase employment from 13 million in 2010 to 24 million in 2030.
Raise per capita income from R50 000 in 2010 to R120 000 by 2030.
Increase the share of national income of the bottom 40% from 6% to 10%.
Establish a competitive base of infrastructure, human resources and
regulatory frameworks.
Ensure that skilled, technical, professional and managerial posts better
reflect the country's racial, gender and disability makeup.
Broaden ownership of assets to historically disadvantaged groups.
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
Enabling milestones (2)
•
•
•
•
•
•
Increase the quality of education so that all children have at least two
years of preschool education and all children in grade 3 can read and
write.
Provide affordable access to quality health care while promoting health
and wellbeing.
Establish effective, safe and affordable public transport.
Produce sufficient energy to support industry at competitive prices,
ensuring access for poor households, while reducing carbon emissions per
unit of power by about one-third.
Ensure that all South Africans have access to clean running water in their
homes.
Make high-speed broadband internet universally available at competitive
prices.
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
Enabling milestones (3)
•
•
•
•
•
•
•
Realise a food trade surplus, with one-third produced by small-scale farmers or
households.
Ensure household food and nutrition security.
Entrench a social security system covering all working people, with social
protection for the poor and other groups in need, such as children and people
with disabilities.
Realise a developmental, capable and ethical state that treats citizens with dignity.
Ensure that all people live safely, with an independent and fair criminal justice
system.
Broaden social cohesion and unity while redressing the inequities of the past.
Play a leading role in continental development, economic integration and human
rights.
Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
Critical actions (1)
1.
2.
3.
4.
5.
A social compact to reduce poverty and inequality, and raise employment
and investment.
A strategy to address poverty and its impacts by broadening access to
employment, strengthening the social wage, improving public transport
and raising rural incomes.
Steps by the state to professionalise the public service, strengthen
accountability, improve coordination and prosecute corruption.
Boost private investment in labour-intensive areas, competitiveness and
exports, with adjustments to lower the risk of hiring younger workers.
An education accountability chain, with lines of responsibility from state
to classroom.
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
National Development Plan 2030
Critical actions (2)
6.
Phase in national health insurance, with a focus on upgrading public
health facilities, producing more health professionals and reducing the
relative cost of private health care.
7. Public infrastructure investment at 10 percent of gross domestic product
(GDP), financed through tariffs, public-private partnerships, taxes and
loans and focused on transport, energy and water.
8. Interventions to ensure environmental sustainability and resilience to
future shocks.
9. New spatial norms and standards – densifying cities, improving transport,
locating jobs where people live, upgrading informal settlements and
fixing housing market gaps.
10. Reduce crime by strengthening criminal justice and improving community
environments.
The Process for IDP Adoption
• The Systems Act determines specific procedures
regarding the framework for integrated development
planning, for adoption and review procedures of IDPs
and the role players involved during the various
processes. In order to establish a framework for
integrated development planning, each district
municipality must adopt a framework for integrated
development planning in its area as a whole.
• The adoption of this framework is to be effected within a
prescribed period after the start of the elected term of
the council and after a consultative process with the
other local municipalities in the area which has been
followed.
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75
• The adoption of the IDP framework binds both the district
municipalities and the local municipalities in the relevant area of
jurisdiction of the particular district.
• At the very least, the framework must:
• identify the plans and planning requirements binding in terms of
national and provincial legislation on the district municipality , the
local municipalities or even any specific municipality on its own
within the area;
• identify the matters to be included in the IDP of the district and
local municipalities that require alignment;
• specify the principles to be applied and coordinate the approach to
be adopted in respect of the alignment of IDP matters;
• determine procedures for consultation between the district and
local municipalities during the process of drafting their respective
IDPs and also the procedures to be implemented in order to effect
essential amendments to the framework.
51
• Municipal councils are required to approve a document that sets
out a process for drafting, adopting and reviewing the IDP (Process
plan). Consultation with local communities regarding the IDP
process is required before and after adoption of the process plan.
The programme and schedule for drafting the IDP must be predetermined. Provision must also be made for other organs of state
to be consulted. The process should identify all plans and planning
requirements that are binding on the municipality.
• IDPs for local municipalities should be aligned with the district
municipalities IDP framework. Furthermore, a mechanism must be
established for the local community to be consulted on their
development needs and priorities.
• Communities excluded from service delivery must be involved in
the participatory process. Council should facilitate a process for
community participation in every stage of the IDP process, from
identifying, assessing and prioritising needs to devising strategy,
objectives and goals.
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• The council must use its existing community
participation mechanism to:
• communicate regularly with stakeholders and
communities regarding the evolving IDP;
• receive comments and input from stakeholders
and communities; and
• use community input in the drafting process.
• The keys steps to be followed in the process of
adopting a municipality’s Integrated
Development Plan (IDP) are as follows:
52
• Initiate a sustainable development awarenessraising process, targeting councillors, officials,
community members, and stakeholder
groupings, prior to the development of the
IDP.
• Adopt an issue driven approach and engage
communities on the level of living conditions
as opposed to engaging them on desired
projects.
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• In areas outside metropolitan areas, all district municipalities must
plan integrated development for the area as a whole but in close
consultation with the local municipalities and must draft its IDP
after having taken into account the IDP processes and proposals
submitted to it by the local municipalities in its area.
• Simultaneously, all local municipalities must align their IDPs with
the framework adopted by the district municipality and must draft
their IDPs, after taking into account the IDP process and proposals
from the district municipality.
• The management of the IDP processes falls under the responsibility
of the executive committee or executive mayor of the municipality
or under a committee of councillors appointed by the municipal
council if it is a municipality without an executive committee or
mayor. The responsible committee or person must manage the
drafting of the IDP, must assign responsibilities to the municipal
manager in the IDP process and must submit the draft plan to the
municipal council for adoption by council.
53
• Further monitoring and support to the process of
integrated planning is provided for in that the MEC for
local government in the province may:
• monitor the process followed by a municipality;
• assist a municipality with the planning, drafting,
adoption and review of its IDP;
• facilitate co-ordination and alignment of the IDPs of
different municipalities and the strategies and
programmes of national and provincial organs of state.
• The municipality may take any appropriate steps to
resolve disputes or differences in connection with the
IDP processes between a municipality and its local
community or between municipalities.
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• After an IDP has been adopted or amended, the municipal
manager of a municipality must submit a copy of the IDP to
the MEC for local government in the province within 10
days after such adoption or amendment. The copy of the
IDP must further be accompanied by a summary of the preadoption process, a statement that the process has been
complied with, together with explanations where
necessary, and finally in the case of a district and local
municipality, a copy of the framework adopted for the IDP
between municipalities. The MEC may within 30 days of
receiving a copy of the IDP or amendment thereto , or
within such reasonable longer period as may be approved
by the minister of local government, request the relevant
municipal council to adjust the plan and amendment, in
accordance with the MEC’s proposals. If the
plan/amendment does not comply with a requirement of
the Municipal Systems Act or is in conflict or not aligned
with the IDPs of other affected municipalities.
54
• The MEC may then request a municipal council to comply
with the provisions of the Municipal Systems Act. A
municipal council must consider the MEC’s proposals and,
within 30 days of receipt of such proposals, adjust its IDP
accordingly if it agrees with the proposals. If a municipality
disagrees wit the proposals, it must object thereto and
must furnish the MEC with written reasons for disagreeing.
On receipt of such objection, the MEC may refer the
objection to an ad-hoc committee for a decision. If the MEC
decides to refer the objection, it must be referred within 21
days of receipt of the objection. The mentioned ad-hoc
committee must be appointed by the MEC, whenever
necessary.
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IDP CORE COMPONENTS
• The Municipal Systems Act lists the core components of the IDP,
without which the plan cannot be legally adopted. These
components are:
• The vision for the long term development of the municipality, with
special emphasis on the municipality’s most critical development
and internal transformation needs;
• An assessment of the existing level of development in the
municipality, which must include an identification of communities
which does not have access to basic municipal services;
• The council’s development priorities and objectives for its elected
term, including its local economic development aims and its
internal transformation needs;
• The council’s development strategies which must be aligned with
any national or provincial sectoral plans and planning requirements
binding on the municipality in terms of legislation;
54
• A spatial development framework which must
include the provision of basic guidelines for a
land use management system for the
municipality;
• The council’s operational strategies;
• Applicable disaster management plans;
• A financial plan, which must include a budget
projection for at least the next three years; and
• A set of key performance indicators and
performance targets.
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
7. The IDP review process
• Definition of review in Systems Act means process to assess,
evaluate IDP in terms of municipality’s performance and
changing circumstances
• IDP thus not cast in stone
• Review required by Section 34 of Systems Act – assess
performance against objectives, and implementation and in
consideration of new information, changed circumstances
–
–
–
–
Review annually with assessment of performance (Section 41)
To extend that changing circumstances so demand
May amend IDP in accordance with prescribed process
Necessitates contingency planning, continuous review to ensure
flexibility without losing sight of vision, long term development
objectives
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
7. The IDP review process
The purpose:
• ensures that the resources available at the municipality
are directed at the delivery of projects and programmes
that meet agreed developmental priorities, and to
ensure that:
–
–
–
–
the delivery is implemented in the planned manner
the municipality is utilising its resources most efficiently
the delivery standards meet the desired quality
the delivery impacts positively on the lives of the people
in the municipality
– to inform budgeting
– to analyse shortcomings in the original document and
incorporate improvements in the review
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81
• To achieve this it is necessary to monitor, evaluate,
measure and review the performance of the municipality
against indicators and targets set in the IDP. The
Performance Management results will assist the
municipality to:
• make immediate and appropriate changes in delivery and
management of resources;
• identify and address major and systematic blockages; and
• guide future planning on developmental objectives and
resource use.
• Achieving this requires pro-active oversight and
management through the performance management
system and undertaking annual reviews of the IDP.
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
ACTIVITY/CLASS
DISCUSSION
p58
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Unit 5: Legislative framework for integrated development
planning and application of requirements of legislation
Critically analyse IDP document with reference to:
• Legislation, highlighting any exclusions
• Key performance areas and key performance indicators
• IDP core components
58
US 116358
Unit 6: Formulate programs and develop
methods
for
monitoring
the
implementation of a strategic plan and
related programmes
83
Introduction
• Reviewing of IDP’s annually in accordance
with an Assessment of Performance
Measurements and changing Circumstances
• Sect 41 of Systems Act
59
The Establishment and Development of
Performance Management Systems
(MSA Requirement)
• Establish a Performance Management System
that is commensurate with Resources, best
suited to Circumstances & in line with
Priorities, Objectives & Targets in the IDP
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84
• Specific responsibility has been placed on the executive
committee or executive mayor, whichever is applicable
to:
• manage the development of a municipality’s
performance management system;
• assign certain responsibilities of the system to the
municipal manager;
• submit the proposed system to the municipal council
for adoption.
• All municipalities must further establish mechanisms to
monitor and review their performance management
system.
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The Core Components and Community
Involvement in Municipal Performance
• Every performance management system is required to
include various core components. Accordingly, in terms of
its performance management system and any other
regulations and guidelines that may be prescribed, every
municipality must incorporate and provide the following:
• setting appropriate key performance indicators (KPIs) as a
yardstick for measuring municipal performance, including
outcomes and impact, with regard to the municipality’s
developmental priorities and objectives set out in its IDP;
• setting measurable performance targets for each of the
development priorities and objectives;
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85
• monitoring performance and measuring and
reviewing performance at least once a year
against the development priorities and KPIs;
• taking steps to improve performance where
targets have not been met;
• establishing a process of regular reporting to
the council, political structures, office bearers,
staff, the public and appropriate organs of
state.
60
• It is further also obligatory for a municipality
to involve the local community to participate
in the development, implementation and
review of the municipality’s PMS and also to
allow the community to participate in setting
of appropriate key performance indicators and
performance targets.
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The Setting of Key Performance
Indicators & the Audit of Performance
Measurements
• Minister for Local Government – by regulation,
may prescribe general Key Indicators that can be
applied to Local Government
• Minister may review and adjust KPI’s
• Municipalities must inform public
• Results must be audited
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Requirements regarding Reports
on the PMS and the making of Regulations
& Guidelines
• Apart from PMS muni. must prepare Annual Report consisting of
inter alia a Performance Report;
• Performance of muni and ext service providers
• Comparison to targets and previous years
• Measures to improve performance
• Annual Performance Report to form part of Municipality’s Annual
Report-Chapter 12 of MFMA
• Consolidated Report by MEC in Province, on Performance of
Municipalities in Province
• Report be published in Prov Gazette
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Creating and Maintaining an Effective
System of Municipal Performance
Management
• Identify & Prioritise Areas where Performance
Improvement is most required-ext development
priorities and internal transformation needs
• National Gov to assist with common performance
areas and Performance Assessment-result in PEM
economy, efficiency and effectiveness
• Six Core Elements
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Creating and maintaining an effective system of
municipal performance management
Six core elements:
• Performance measurement
• Performance monitoring and evaluation
• Performance reporting
• Capacity building
• Intervention
• Performance incentives
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Implementing performance management (1)
Phase One - Starting the PMS Process
Step 1: Delegation of responsibilities
Step 2: Setting up internal responsibilities
Step 3: Managing the change process
Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Implementing performance management (2)
Phase Two - Developing a PMS
Step 1: Current reality
Step 2: Identification of stakeholders
Step 3: Structures for stakeholder participation
Step 4: Develop the system (model & framework)
Step 5: Publication of the system
Step 6: Adoption of the system
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Implementing performance management (3)
Phase Three – Implementing the PMS
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Planning (IDP)
Priority setting (IDP)
Setting objectives
Setting key performance indicators (KPI)
Developing a monitoring framework (Intervals)
Step 6: Designing a performance measurement framework (Targets/dates)
Step 7: Conducting performance reviews (Quarterly)
Step 8: Improving performance (Continuously)
Step 9: Reporting on performance (Quarterly)
Step 10: Using performance audit mechanisms (PA Committee)
Step 11: Organisational performance (Model linking all indicators)
Unit 6: Formulate programs and develop methods for monitoring
the implementation of a strategic plan and related programmes
The PMS indicators (the original)
1.
2.
3.
4.
5.
6.
7.
The % of households - access to basic services
The % of households (R1100) - access to free basic
services
The % of a municipality’s capital budget spent on
capital projects i.t.o. IDP
The number of jobs created - LED
Employment equity - three highest levels of
management in municipality
The % of budget actually spent on workplace skills
plan
Financial viability
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The framework and the model
Indicators
X
Setting targets
X
Monitoring
X
X
X
X
Auditing
X
X
X
X
Reporting
X
Review
X
Cycle of
processes
Performance
Dimensions
Framework
System
The Balanced Scorecard – the basic
91
The Balanced Scorecard – another
PERFORMANCE MEASUREMENT:
• Performance measurement requires a relatively
objective framework for assessing performance.
Measurement is achieved by setting performance
indicators and linking them to performance targets.
Performance indicators indicate how performance will
be measured; that is, the number of households to
receive water connections. Performance targets refer
to the result to be achieved within a given timeframe
(e.g. 5000 connections by year end 2009). Performance
indicators can be determined only once a municipality
has identified the key objectives for development in its
area and with the municipality’s overall developmental
goals and priorities in mind.
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• Many municipalities have set various performance
indicators through their development-planning processes.
A distinction should be made between general
performance indicators and local performance indicators.
General performance indicators refer to indicators that are
applicable to all municipalities, while local indicators reflect
particular local developmental priorities and objectives.
Any KPI should ensure that the right area of performance is
measured and that the quality of the performance is also
assessed. Part of any process of performance measurement
involves the establishment of targets for each performance
indicator. Performance is then measured within a given
time frame, according to whether targets for each indicator
have been achieved.
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PERFORMANCE, MONITORING AND
EVALUATION
• The monitoring and assessment of the performance of
municipalities is a crucial aspect of any successful PMS.
Monitoring and evaluation are processes aimed at
assessing the performance of municipalities and the people
that work for them. It is important to note that the
assessment of people refers not only to municipal staff
members but also to external contractors that do work or
provide services on behalf of the municipality. Generally
speaking, performance monitoring is an on-going process
to determine whether targets are being met and whether
development objectives are being achieved. Performance
management must be conducted very carefully, and
information should not be manipulated to produce results
that appear better than they really are.
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93
• Uncompromising integrity of performance management is
therefore essential. Contrary to the performance
monitoring process, performance evaluation is a deeper
and more detailed process of performance analysis. Such
an evaluation process looks not only at whether a
municipality is performing adequately but also at the areas
of underperformance. All municipalities should make
special arrangements to evaluate performance regularly. A
further key element of the monitoring and evaluation
process is so-called “performance auditing”. This process
involves verifying that the measurement mechanisms and
results are accurate and that proper procedures have been
followed to evaluate and improve performance.
64
PERFORMANCE REPORTING
• Under the new legislative framework, all
municipalities are obliged to submit annual
performance reports to the public and higher
spheres of government. It is accepted that the
reporting requirement should significantly
enhance public participation and municipal
accountability and should therefore be strictly
enforced.
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94
CAPACITY BUILDING
• Without the necessary capacity, municipalities
will not be able to perform and fulfil their
duties and responsibilities. Municipal capacity
building must therefore be a core element of a
broader performance management strategy.
Capacity building is a process of developing
the ability for improved performance within
municipalities.
64
INTERVENTION
• The Constitution allows and demands
intervention into the affairs of local
government when necessary. In particular, the
provinces are tasked with oversight and
intervention powers into the affairs of
municipalities when cases of nonperformance are reported. Such interventions
should be based on accurate diagnostic
results, however, and should be undertaken
on an objective basis.
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95
PERFORMANCE INCENTIVES
• Ultimately the performance of any particular
municipality and its staff depends on certain
incentives within the PMS. Good performance
should be rewarded whilst poor performance
should be penalized.
65
Implementing
Performance Management
• The implementation of the Integrated Development Plan is
the essence of performance in the municipality. This plan is
implemented by using performance management systems.
All spheres of government are constitutionally obliged to
fulfil their duties and responsibilities according to the
constitutional prescriptions and to ensure a general system
of democratic government that is accountable, responsive
and open. Local governments are further tasked with
specified municipal objectives. In order to determine
whether such objectives are being met, a proper system of
accountability and performance management is necessary.
Under the provisions of the Municipal Systems Act, a new
legal framework for national performance management has
been enacted. In essence, the new system functions as
follows:
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96
• (Step 1) All municipalities must identify the areas that require
performance measuring and improvement. This will form an
integral part of the IDP process and the setting of development
objectives.
• (Step 2) Once the areas have been identified, a municipality will
monitor and measure its performance by developing indicators and
targets for each of the development priorities.
• (Step 3) A municipality will then have to evaluate its performance
and take steps to improve performance when targets are not being
met.
• (Step 4) In addition to those areas identified by a municipality,
some areas fundamental to the overall reconstruction and
development of South Africa will be identified by national
government, through consultation with key stakeholders such as
SALGA and provincial governments.
• (Step 5) Each municipality will be expected to report on these areas
through the prescribed national indicators and targets.
• (Step 6) A municipality will be able to exceed the targets set by
national government, but it will not be able to perform below those
targets.
65
Practical example of a municipality where 50% of the
residents do not have
access to clean drinking water.
• The particular municipality will identify water
provision as an area that requires performance
measuring and improvement.
• Water provision to all residents will be set as a
priority with a correlating objective of giving all
residents access to at least a certain number of
litres of drinkable water per day.
• The objective will then translate into
developmental strategies which could include
major investment programmes in water schemes.
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97
• A second step, once the area of performance
have been identified, then a municipality will
have to monitor and measure its
performance.
• This is achieved through the development of
KPIs and targets for each of the identified
priorities.
• The following KPIs and targets could be
relevant to the example above.
66
KPIs:
• The percentage of households that do not
have access to water (measure growth)
• The bacterial count in water (measure quality
of water);
• Average time spent by community members
(measure impact of scheme on community to
bring water to their houses)
• Percentage of households paying for services
(measure sustainability and financial impact).
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98
TARGETS:
• To reduce households without water from
50%-30% in two years
• To ensure that quality of water is up to
standard
• To reduce travel time for community to fetch
water
• To ensure measures are taken to service
payment collections better
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Under the third step, the municipality evaluate
performance and take steps to improve performance
when targets are not met.
Measurement mechanism can include:
• Keeping data of households with water;
• Testing water quality regularly;
• Surveying residents’ activities and the
implementation of a proper billing and credit
control system.
• Finally, the municipality must report on its
performance management in each area as is
required by law.
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Unit 6: Formulate programs and develop methods for monitoring
the implementation of a strategic plan and related programmes
Service Delivery Budget Implementation Plan
The purpose:
• provide a management implementation and
monitoring tool that will assist the Mayor,
Councillors, Municipal Manager, other Senior
Managers and the community in monitoring
service delivery
The essential components:
– Monthly Projections of Revenue to be collected for
each source
– Monthly Projections of Expenditure (Operating and
Capital) and revenue for each vote
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Service Delivery Budget Implementation Plan ...
the monitoring
•
•
•
•
The execution of the budget
The performance of managers
The performance of individual departments
The performance of the municipality as a whole
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100
SDBIP
•
•
•
•
•
•
To be reviewed MFMA
NT key components
Monthly projections per source
Quarterly projections of targets and KPI’s
Ward info
Capital works plan detail
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Service Delivery Budget Implementation Plan ...
the components
• Annual projections of revenue to be collected
for each source
• Annual projection of expenditure (operating
and capital) and revenue
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Service Delivery Budget Implementation Plan ...
the roles and responsibilities
• The Mayor
• The Accounting Officer
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PURPOSE
• The purpose of this plan is to provide a
management implementation and monitoring
tool that will assist the Mayor, Councillors,
Municipal Manager, other Senior Managers and
the community in monitoring service delivery. It
should help to ensure that appropriate
information is available to monitor.
• The execution of the budget;
• The performance of managers;
• The performance of individual departments; and
• The performance of the municipality as a whole.
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LEGISLATIVE INTERPRETATION
• The Municipal Finance Management Act No.
56 of 2003 prescribes that municipalities
should formulate an annual Service Delivery
and Budget Implementation Plan. There are
three key parts to the SDBIP namely: financial,
service delivery and performance. It is
envisaged that the SDBIP, as an
implementation tool for municipalities, will
strengthen local accountability and
governance for improved service delivery.
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Budget and SDBIP
• In terms of Section 15 of the MFMA, a municipality may except
where otherwise provided in this Act, incur expenditure only in
terms of approved budget and within the limits of the amounts
appropriated for the different votes in an approved budget.
Immediately in Section 16, the MFMA prescribes that the Council of
a municipality must for each financial year approve an annual
budget for the municipality before the start of that financial year.
An annual budget must be a schedule setting out realistically
anticipated revenue for the budget year from each revenue source;
appropriating expenditure for the budget year under the different
votes of the municipality. The budget must also set out the
estimated revenue and expenditure by vote for the current year, as
well as actual revenue and expenditure by vote for the financial
year preceding the current year. Lastly, the budget should provide a
statement containing any other information required by Section
215 (3) of the Constitution or as may be prescribed. According to
Section 24(1) the budget of a municipality must be
approved(considered?) by Council at least 30 days before the start
of the budget year.
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Strategic
Development Programmes
•
•
•
•
•
Social & Economic Development
Institutional Development
Democracy & Governance
Infrastructure Development
Financial Management
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Components of SDBIP
• Annual Projections of Revenue to be collected
for each source
• Annual Projection of Expenditure (Operating &
Capital) & Revenue
• LED & IDP Projects
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Quarterly Projections of Service Delivery
Targets & Performance Indicators
• Detailed Capital Works Plan broken down by
Wards
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Roles & Responsibilities
in Context of SDBIP
• Role of the Mayor
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• The Mayor bears ultimate responsibility for budget
allocations, political leadership and service delivery in the
municipality. This section highlights key roles of the Mayor
with regards to the SDBIP as indicated in the MFMA Section
53:
• Provide general political guidance over the budget process
and the priorities that guide the budget process (Section
53(1));
• Ensure Council approves the annual budget before the start
of the financial year;
• Oversee Accounting Officer and CFO;
• Ensure adherence to the time schedule for budget;
• Ensure that the SDBIP is approved (by the Mayor) within 28
days after the approval of the budget;
• Ensures that annual performance agreements are linked
with measurable performance objectives in the IDP and the
SDBIP; and make the SDBIP public no later than 14 days
after approval.
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Role of the Accounting Officer
in respect of SDBIP
• In terms of Sections 68 & 69 of the MFMA, the
responsibilities of the Accounting Officer
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• Assist the Mayor to perform budgetary functions and
provide the Mayor with administration support,
information and resources;
• Implement the budget;
• Spending in accordance with budget and ensure that it is
reduced as necessary when revenue is anticipated to be
less than projected in the budget or in the SDBIP;
• Ensure that revenue and expenditure is properly
monitored;
• Prepare adjustments budget when necessary; and
• Submit draft SDBIP and drafts annual performance
agreements for the municipal manager and all senior
managers.
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
ACTIVITY/CLASS
DISCUSSION
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Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
Group 1
Group 2
Group 3
Group 4
Summarise chapters
1,2,3 & 4 of the
National
Development
Plan
and indicate which
strategies
your
municipality should
include in its IDP to
ensure
that
the
objectives of the NDP
are achieved in not
more than ten slides
Summarise chapters
5, 6, 7 & 8 of the
National
Development
Plan
and indicate which
strategies
your
municipality should
include in its IDP to
ensure
that
the
objectives of the NDP
are achieved in not
more than ten slides
Summarise chapters
9, 10 & 11 of the
National
Development
Plan
and indicate which
strategies
your
municipality should
include in its IDP to
ensure
that
the
objectives of the NDP
are achieved in not
more than ten slides
Summarise chapters
12, 13, 14 & 15 of the
National
Development
Plan
and indicate which
strategies
your
municipality should
include in its IDP to
ensure
that
the
objectives of the NDP
are achieved in not
more than ten slides
Unit 6: Formulate programs and develop methods for monitoring the
implementation of a strategic plan and related programmes
• What is your role and responsibility with regards
to the SDBIP?
• And your Department? Division? Unit?
• Describe key areas in creating and maintaining
an effective system of municipal performance
management
• Identify a strategy, its KPIs and targets in your
municipality
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•
•
•
•
Len Mortimer 082 4188 909
Melissa Snyders 021 918 4033
Melissa.Snyders@spl.sun.ac.za
www.splshortcourses.co.za
Thank you ……
Len Mortimer
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