NATIONAL DIPLOMA: PUBLIC FINANCE MANAGEMENT AND ADMINISTRATION Summative Assessment: ACTIVITY 1: UNIT 1: Task Explain what is meant by Mission: Mission: What is meant by mission in a municipal context relates to a definition of the municipal core functions, who it serves, what it does, its objectives, and its approach reaching those objectives. Mission Statement uPhongolo Local Municipality To develop our Municipal institution and facilitate its transformation. To provide infrastructure and other services to all, with emphasis on rural communities, in a sustainable manner. To provide a healthy and safe environment that is conducive for investment. To develop and support social and economic development initiatives, particularly those focused on the youth and the vulnerable. To ensure good governance through leadership excellence and community participation To ensure continued sound financial management. To ensure effective and efficient Land Use Management, taking cognizance of sound environmental practices. To elevate tourism and agriculture as the leading GDP contributors to our economy. Vision: A vision statement represents the municipal council ambitions for future planned development. “uPhongolo Municipality will ensure an inclusive socio-economy by providing quality services that yield a better life for all by 2035”. As indicated above, the vision and mission indicates the goals that the municipality is driving towards and the force behind that, through actions. Page 2 of 23 Role Players needed for formulating Vision and Mission Statements: Mayor Members of the executive committee of the council Councillors including district councillors Municipal employees Traditional leaders Ward committee representative Heads of departments and senior officials from municipal and government department Representatives from organised stakeholder groups People who fight for the rights of unorganised groups – e.g. A gender activist – Resource people or advisors Community representatives (e.g. RDP Forum) Strategic Objectives: Municipal Strategic objectives indicates measurable goals outlining what the municipality wants to achieve with clearly defined deadlines. Its purpose is to help create an overall goals setting and measurable steps for a municipality to help achieve the desired outcomes, by improving community livelihoods. To start with, the Integrated Development Plan has about 6 Key Performance Areas namely: Municipal Transformation and Institutional Development; Basic Service Delivery and Institutional Development; Municipal Financial Viability and Management; Social and Economic Development; Good Governance and Public Participation; and Cross Cutting Interventions Page 3 of 23 The aforementioned KPAs have goals, strategic objectives and are in line with the programmes and projects which we have the intention to implement over the next years in our endeavour to address the three main challenges which are: poverty alleviation, unemployment and inequality. Horizontal alignment is pursued through Inter-governmental planning and consultation, coordination and ensured through aligning the respective vision, mission and strategic objectives of the respective municipalities in the region. Each strategic objective has a goal it wants to achieve, below an example is indicated on the Local Economic Development strategic objective to fight unemployment, hunger and poverty. Strategic Objective: Job Creation, deals directly with local economic development, and is of particular importance to the purposes of the current analysis. The key strategic objectives within this goal are: Unleashing the agricultural sector; Enhancing sectoral development through trade and investment; Improvising the efficiency of government-led job creation programmes; Promoting SMME and entrepreneurial development; and Developing the knowledge base to enhance the knowledge economy. Integrated Development Plan: Integrated Development Planning process is a process that is undertaken to produce IDP, which is a developmental plan for a municipal area containing short, medium and long-term objectives and strategies. The IDP serves as a principal strategic management instrument for municipalities. It is legislated by the Municipal Systems Act 2000 (Act 32 of 2000). The IDP has to be prepared in such a way that it must run with the term of office of a particular council. It is incumbent upon the new council to either adopt the IDP of the previous council, or to develop a new one, in order to achieve its own policy objectives. Each Municipal Council continuously look at the performance highlights of the previous and current year (implementation of the approved IDP), its challenges and intervention areas, internal and external environmental analysis, confirmation and review of the vision, mission, core values, goals and strategic objectives in an Page 4 of 23 endeavour to achieve alignment and compliance with the relevant government policies and priorities. Role Players: The Municipal Systems Act, 2000 (Act 32 of 2000) lays down some processes of integrated development planning, which comprise phases that the municipality undertakes, in order to formulate integrated development plans, formulation of municipal vision and mission. These phases are discussed below. The Municipal Systems Act, 2000 (Act 32 of 2000) section (29) compels municipal councils to identify and consult organs of State, including traditional authorities, on the drafting of the integrated development planning. These phases are areas where they should participate in IDP planning. Councillors, Traditional Leaders, Neighbouring Municipalities, District Municipality, Sector Departments and other stakeholders. STRATEGY PLANNING PROCESS: Environmental scanning, strategy formulation and strategy implementation are an important component of strategic planning as it provides information on factors that will affect the organization in the future. The information gathered will allow leadership to proactively respond to external impacts. Environmental scan- Through the Provincial Spatial Economic Development Strategy (PSEDS), the Provincial Government hopes to strike a sound balance between progressive community growth and the environmental preservation of the communities. The uPhongolo Spatial Development Framework (SDF) which is an overarching document in the municipal IDP must be a mirrored expression of the development intentions of the municipality as expressed in the IDP. The SDF must be aligned with the PSEDS. The Provincial Spatial & Economic Development Strategy aims to: Provide spatial context to the PGDS; Address spatial imbalances, curb urban sprawl and ensure sustainable interventions; Page 5 of 23 Identify priority areas and types of development; Align to municipal spatial development frameworks; Guide budgeting processes of the province and municipalities; and Influence investment decisions of the private sector. Strategy formulation- Municipal strategic formulation plans allow you and your team to set and work toward a series of goals and initiatives to make changes and improvements throughout the municipality and community. Strategic planning formulation process requires significant time and effort to see real benefits in your community. Strategy implementation- Determine your strategic position, Prioritize your objectives, Develop a strategic plan, Execute and manage your plan, Review and revise the plan. Local government not only has to develop and implement local policies and strategies, but is also obliged to implement the policies adopted by other spheres of government. Evaluating mission statement in the context of actual service delivery and evolving macro environment. It has been mentioned that local government administrations have been undergoing radical changes under the new constitutional dispensation of South Africa. Unfortunately, many of such changes have not been driven by clear and precise mission of the role and responsibilities that all municipalities should play. In order to maintain a high level of services being provided, the municipality must adopt a mission that set values to guide the behaviour of all people towards achieving the mission of the municipality. The values towards seeking to develop a culture that informs both the administrative as well as the political components, to achieve the municipal mission in an evolving manner. Transparency, Honesty, Excellence to Communities, Passion, Efficiency, Accountability, Commitment, Empathy, Sustainability and Selflessness. Programmes to carry out service delivery activities. Page 6 of 23 Local government [municipality] is the sphere of government closest to the people, they are elected by citizens to represent them and are responsible to ensure that services are delivered to the community. One way in which municipalities can do this is to provide the service themselves through the use of their own resources finance, equipment and employees. A municipality may also outsource the provision of a service. In other words, it may choose to hire someone else to deliver the service but it remains the responsibility of the municipality to choose the service provider and to make sure that they deliver the service properly. Many municipalities, however, are unable to deliver services to residents. This might be because of lack of finances or lack of capacity to provide a good service at an affordable price. Such municipalities should find other ways to ensure that the services are improved and reach the people most in need of them. The planning, implementation and maintenance of basic infrastructure is critical for sustaining basic standards of living and economic activity in our towns and cities. All municipalities must develop service standards for each service, and will establish systems for monitoring adherence to these standards. Municipalities are required to report on ward-level service delivery plans. We expect municipalities to perform the following basic activities, and the performance indicators will measure the ability of our municipalities to do so: Develop fundable consolidated infrastructure plans. Ensure Infrastructure development maintenance and reduce losses with respect to water and sanitation. Human Settlements. Electricity. Waste Management. Roads. Public Transportation. Ensure the provision of free basic services. Page 7 of 23 ACTIVITY 2: (A) STAKEHOLDER ANALYSIS AND COMMUNITY PARTICIPATION PROCESS: CURRENT PRACTICES WITH RESPECT TO STAKEHOLDER ANALYSIS AND PARTICIPATION IN A MUNICIPAL STRATEGIC PLANNING PROCESS. Legislative Guidelines Municipal Structures Act, of 2000 Section Municipal Finance Management Act Section 152 & 153 Constitution Section 41 NB: The input from community is imperative for Stakeholder Analysis Local government in South Africa has gone through the transitional phase to become developmental with a number of challenges, one of the most prominent of which has been the lack of adequate financial resources to carry out various service delivery obligations. Public Participation, entails to putting people first. Implement community engagement plans targeting hotspots and potential hotspots areas. Municipalities to implement responsive and accountable processes to communities. Ward committees must be functional and Councillors must meet and report back to their constituencies quarterly. Utilise the Community Development Workers, Ward Committees and Ward Councillors to communicate projects earmarked for implementation. Municipalities must communicate their plans to deal with backlogs. Municipalities to monitor and act on complaints, petitions and other feedback. Stakeholders in a Municipal Strategic Process Page 8 of 23 Municipality Community Provincial Government National Government Step 1: The first step is to brainstorm who your stakeholders are- As part of this, think of all the people who are affected by your work, who have influence or power over it, or have an interest in its successful or unsuccessful conclusion. i.e. engagement with Community groups, business associations and Local Councils. Step 2: Prioritise your stakeholders- You may now have a long list of people and organisations that are affected by your programme. Some of these may have power either to block or advance. Like engaging the community first before finalising your IDP. Step 3: Understand your key stakeholder and role-players- You mow need to know more about key stakeholders and role-players. You need to know how they are likely to feel and react to your programme. This means you need to know the information they want from you, what motivates them most and their current opinion of your work. PRINCIPLES FROM LEGISLATION: In terms section 16 (1) of Municipal Systems Act no 32 of 2000 a municipality must develop a culture of municipal governance that complements formal representative government with a system of participatory governance, and must for this purpose(a) encourage, and create conditions for, the local community to participate in the affairs of the municipality, including in— (i) the preparation, implementation and review of its integrated development plan in terms of Chapter 5 of the Municipal Systems Act (ii) the establishment, implementation and review of its performance management system in terms of Chapter 6 of the Municipal Systems Act (iii) the monitoring and review of its performance, including the outcomes and impact of such performance (iv) the preparation of its budget; and strategic decisions relating to the provision of municipal services. INTEGRATED DEVELOPMENT PLAN REPRESENTATIVE FORUM (IDP REP) Page 9 of 23 The IDP Representative Forum is the structure which institutionalises and guarantees representative participation in the IDP Process. The selection of members to the IDP Representative Forum needs to be based on criteria which ensure geographical and social representation. Proposed Terms Reference the of for the IDP process Provide an organisational mechanism for discussion, negotiation and decision making between the stakeholders IDP Representative Represent the interest of the municipality’s constituency in inclusive of municipal government Forum Ensure communication between all the stakeholder representatives inclusive of municipal government Monitor the performance of the planning and implementation process Proposed Chaired by: Composition of The Honourable Mayor, or member of the Executive the Committee or a member of the Committee of Appointed Councillors (such as the Portfolio Committee) IDP Representative Forum Secretariat: IDP Steering Committee and or designated official. Composition: Members of the Executive Committee Councillors (including Councillors who are members of the District Council and relevant portfolio Councillors) Traditional Council’s Representatives Ward Committee Representatives (One person per ward) Private Sector Heads of Departments / Senior officials Government Departments Page 10 of 23 Stakeholder representatives of organized groups (NGOs, CBOs, FBOs etc.) Community Development Workers Advocates for unorganized groups Community Representatives (B) MUNICIPAL PARTICIPATORY FRAMEWORK: It appears in Chapter 4 of the Municipal Systems Act, Act 32 of 2000 that a Municipality must encourage and create conditions for the local community to participate in the affairs of the municipality, including the preparation, implementation and review of its Integrated Development Plan and municipal budget. In this context, the municipality is committed to a participatory process of IDP and budget review whereby the community will play a meaningful role. There are four major functions that can be aligned with the public participation process namely: - Needs identification; - Identification of appropriateness of proposed solutions; Page 11 of 23 - Community ownership and buy-in; and - Community empowerment Due to the negative impact on public participation processes which are caused by condition of roads and the non-electrification in the area the following participation mechanism can be implement to ensure that the community and all other stakeholders are involved in the municipal processes: 1.1. Strengthen functioning of ward committees As formal structures established in terms of the Municipal Structures Act, the Ward Committees and Ward Councillors will be used as a link between the Municipality and Communities, to obtain information and any other information with regards to the municipal progresses. Because the area does not have electricity power the municipality must ensure that all ward committees are elected and the functionality of ward committees are closely monitored to ensure that at least the interest of the community are presented 1.2. Introduction of loud healing The loud healing in all wards will be used by the municipality to make public announcements and to invite the community to meetings where necessary. 1.3. Community Road Shows The uPhongolo Municipality will be hosting its community road shows to publicize the draft IDP and Budget after approval in March and June. The venues for these meetings will be publicized at the Integrated Development Plan Representative Forum as well as through the media and loud healing. 1.4. Newspaper Local newspapers (Pongola News) will be used to inform the local community of the progress of the IDP. 1.5. Radio Slots The National Radio Station will be utilised to make public announcements where necessary. Page 12 of 23 Other Communication mechanisms - Communicate Municipal Integrated Development Plan and Annual Budget via community radio, printing of summarised documents, community print media, izimbizos, internal staff newsletter, meetings, website, etc, - Communication and promoting of Rural Summit - Campaigns and outreach programmes with internal staff and communities via newsletters, radio, newspaper By implementation of the public participation plan the municipality will ensure that the community and all other stakeholders are involved in the running of the municipality including the community which is staying in rural areas where it is difficult to reach. (a) Local Council, Youth groups, SALGA, Community safety, Labour unions, Residents, Politicians, Disabled, Other municipalities (National, Provincials and International), Non-governmental organisations, (ii)Community groups, Local councils, Government departments, Industrial or business association, Residents and Concern groups. (b) Community groups- They serve as a navigator for service delivery in terms of what need to be done and put pressure on political representatives. Local Councils- They serve as mediators between the community and the municipality, they are also public representatives. Government departments- They assist with different services as per the Constitute. Industrial or business association- They serve as a supporting structure in terms of revenue compliance as per the Municipal Property Rates Act. Residents- Are part of the stakeholder and custodian of the municipality and they are entitled to basic service as per our Constitution. (c) Then now you need to know more about your key role-players. You need to know how they are likely to feel about and react to your programme, - You also need to know how best to engage them in your programme and how best to communicate with them. Page 13 of 23 - You can summarise the understanding you have gained on the stakeholder/role-player map, so that you can easily see which key role-players are expected to be blockers or critics, -Also which key role-players are likely to be advocates or supporters of your programme. (d) The relationship between stakeholders and role-players to guide the planning process: - Identify: when identifying the stakeholders and key role-players have identified, the next part of the process is to assess each stakeholder’ and key role-player’s level of support and commitment, and some cases their resistance to the municipality’s specific policies and plans. - Plan communications and negotiations: the principle is that all stakeholders and role-players should be widely consulted on policies and plans affecting them, One way of analysing stakeholders and role-players and starting to plan an appropriate communications and negotiations strategy is through a simple matrix where a stakeholder/role-player database is “plotted” according to their interest and influence on the municipality programmes, plans and policies. Once stakeholders and key role-players have been identified, their interests and level of support analysed and an approach adopted, this forms the basis of a communication and negotiation plan. Review: stakeholders and role-players should be reviewed regularly. *It is always possible that a stakeholder who was initially placed on a low category becomes a key strategic stakeholder. *Making sure that stakeholders and role-players are engaged in the way will be if reviews and analysis are conducted regularly. Page 14 of 23 ACTIVITY 3: KEY PERFOMANCE AREAS (KPAs) Key Performance Areas contained in the municipal strategiesTo start with, the municipal Integrated Development Plan has about 6 Key Performance Areas (KPAs) namely: Municipal Transformation and Institutional Development; Basic Service Delivery and Institutional Development; Page 15 of 23 Municipal Financial Viability and Management; Social and Economic Development; Good Governance and Public Participation; and Cross Cutting Interventions (Provincial KPA). The aforementioned KPAs have goals, strategic objectives and are in line with the programmes and projects which we have the intention to implement over the next years in the municipal endeavour to address the three main challenges which are: poverty alleviation, unemployment and inequality. They comply with local government legislative framework. Key Performance Areas aligned with the vision and mission statementsThe below two KPAs are aligned to the municipal vision and mission statements to ensure proper development in the municipality. Basic Service Delivery and Infrastructure Development: Basic Service Delivery and Infrastructure Development has been highly dependent on grant funding for the past few years at uPhongolo Local Municipality. The municipality has been working closely with all relevant stakeholders to ensure that projects are implemented and service delivery is fast tracked. During this period, the implementation of Municipal Infrastructure Grants effectively for the betterment of communities has been done rapidly. In doing so special focus has been made to ensure that programmes aimed at the emancipation of young people are given maximum attention, through youth developmental programs. To ensure provision of efficient infrastructure (Roads and storm-water) and energy supply that will contribute to the improvement of quality of life for all residents of uPhongolo. To contribute to the safety of communities through the proactive identification, prevention, mitigation, and management of environment, fire and disaster risks. Municipal Financial Viability and Management: Financial sustainability is highly dependent on collection of rates and service charges. Financial sustainability has improved drastically and, thus, the municipality has been able to fast-track service delivery. Page 16 of 23 The collection of rates has improved and is expected to further improve in the next financial years. The cash flow status of the municipality is positive. Areas of improvement are listed below: The need for the development and implementation of policies pertaining to the Economic Transformation; Improvement of Debt Collection Strategy Review and implementation of uPhongolo Municipality Revenue Enhancement Strategy Development of Departmental Procurement Plans Key Performance Areas in terms of institutional arrangements: Municipal Transformation and Institutional Development at uPhongolo Local Municipality in order to ensure that capacity is built in the municipality and ensure sustainability and institutional arrangements being done accordingly. One critical aspect with regard to the Municipal Transformation and Institutional Development has been a need to fill critical positions within the Municipality, especially on Section 56 Managers and the municipality has been able to do that. The following strategies have been developed and reported on progress in terms of implementation: Review of the Municipal Organogram that would respond to the needs of the municipal functionality and effectiveness; Critical labour structures within the municipality have been established and are operational (LLF, Training Committees); Review of uPhongolo Municipality Human Resource Management, Strategy and 5-year Implementation Plan. The purpose of this HRM & HRD Strategy and Implementation Plan is to outline key interventions that are to be undertaken by the municipality in ensuring that it has the right number of people, with the right composition and with the right competencies, in the right places to enable it to deliver on the mandates and achieve its strategic goals and objectives; Review of Employment Equity Policy and Plan. The purpose of this policy is to continuously create an environment that permits equal opportunity for advancement, in order to redress the past imbalances and to ameliorate the Page 17 of 23 conditions of individuals and groups who have been previously disadvantaged on the grounds of race, gender and disability; Review of Human Resources Policies; Review of Organisational PMS Policy Framework; Employee and Councillor Training as per the Council approved Workplace Skills Plan; and Implementation of the Batho Pele Policy and Implementation of Fleet Management Policy. ACTIVITY 4: Institutional StrategiesYou 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. Legislation: Municipal Systems Act, 2000 Page 18 of 23 Key performance indicators relating to inputs, outputs and outcomes must be set for each of the development priorities, clustered under 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). Mechanisms for the involvement of key municipal partners and stakeholders in the formulation of strategies: Generic arrangements- Institutionalise public participation and Structured participation to specify who, on behalf of whom, which issues, through which organisational mechanisms. Elected Council ultimate decision making forum on IDPs participation to inform, negotiate, comment on planning decisions. Participation not equally relevant in each stage of planning, not all procedures equally suitable. Participatory democracy –the stakeholders: IDP representative forum Municipal manager or IDP manager IDP Steering Committee Project, programme and sectoral task teams EXCO/Executive Mayor/committee manage drafting of IDP, assign responsibilities to the municipal manager, submit plan for adoption 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. Page 19 of 23 Municipality through council, adopt and approve IDP and amend, ensure budget and annual operational plans are linked to IDP Identify 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 plan Strategies to be appropriate for addressing challenges of community Strategies to be goal oriented to advance development objectives to achieve vision progressive. 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 ACTIVITY 5: LEGISLATIVE FRAMEWORK: Review the legislative framework for IDP: In terms of the Constitution of the Republic of South Africa the Local Government Structures Act, 1998 (Act 117 of 1998), including the Municipal Structures Amendment Act, B51-2000, the Local Government Systems Act, 2000 (Act 32 of 2000) and the White Paper on Local Government, 1998 the most important objectives of the Framework are: To serve as guiding model for sustainable integrated development planning throughout the municipality; Page 20 of 23 To ensure that all role players are involved in the integrated planning processes of district municipality and local municipalities To ensure that all the local municipalities be guided by legislation in executing our role and responsibilities to the best of our knowledge; To strengthen intergovernmental relations and to align and successfully coordinate Integrated Development Planning throughout; To educate and guide other role players throughout in relation to the business unusual’ operation of local government, in particular with regard to aspects of integrated development planning; To ensure that vigorous analysis of the needs being identified through public participation process in our communities on district and local municipalities level be identified and addressed in the integrated Development Processes To ensure and co-ordinate the effective use of resources; To ensure that the district and local municipalities are kept abreast with national, provincial legislation, policy and strategies which directly influences our processes through the integrated Development Planning; To ensure the district and local municipalities to utilize the above-mentioned legislation, policy and strategy in development planning across departments and for future reasoning throughout. According to section 35 of Municipal Systems Act, 2000 (Act 32 of 2000) the following milestones with regards to alignment must be attained: 1. Budgeting process of the municipality should align with IDP process in the way that allocations would be informed by the priorities and objectives emanating from the IDP. It is imperative to note and ensure that all projects in the IDP should be linked with the budget. Where there is no budget allocated such project should be escalated to the Joint Planning Initiative (JPI) process. 2. National and Provincial Departments’ programmes/projects at municipal levels should align with the municipal development priorities and objectives 3. Local government programmes at the District level should align with programmes at the local municipalities Page 21 of 23 4. All development initiatives (government, private sector international agencies) should only be approved on the basis that they have expression in the priorities and objectives. Clear Analysis Of Municipal • Socio-economic analysis of municipal Reality And Clear Development area: Ward-based profiling within the Strategy municipal area • Clear long term development vision (JPI and SDF) • Clear economic development strategy (to broaden economic participation through skills development and higher investment rate) • Clear strategy for people development (skills / health / education) • Clear actions for development of natural resource base • Action for integrated human settlement (spatial planning logic) • Sectoral plans in support (water, transport, energy, land reform) Targeted Basic Services Infrastructure Investment and • Basic service provision that address national targets for basic service provision (water, sanitation, electricity, waste removal. • Comprehensive Bulk Infrastructure Planning • Clear medium to long term infrastructure provision strategy: Targeting of services and infrastructure to specific areas Page 22 of 23 • Maintenance of infrastructure is addressed • MIG and other infrastructure grants are optimally utilised Community Involvement Planning And Delivery In • Ward Committees meetings • Comprehensive Bulk Infrastructure Planning • Clear medium infrastructure to provision long term strategy: Targeting of services and infrastructure to specific areas • Maintenance of infrastructure is addressed • MIG and other infrastructure grants are optimally utilised Page 23 of 23