MOSSEL BAY MUNICIPALITY
PMS BEST PRACTICE
If its not
documented
its not done
PRESENTER:
MR E W JANTJIES
DIRECTOR CORPORATE SERVICES
GEOGRAPHICAL OVERVIEW OF MOSSEL BAY
Mossel Bay Municipality is situated within the Eden Municipal
District which also includes the Local Municipalities of Bitou
(Plettenberg Bay), George, Hessequa (Riversdale), Kannaland
(Ladismith) and Oudtshoorn. It is situates on the N2
approximately halfway between the coastal cities of Cape Town
and Port Elizabeth
The Municipal Area cover 2007 square km
MAIN ECONOMIC ACTIVITIES IN MOSSEL BAY
o Tourism
o Agriculture (Aloes, Cattle, Citrus, Dairy, Ostriches,
Sheep, Timber, Vegetables and Wine)
o Fishing
o Light Industry
o Petrochemicals
MUNICIPAL SUCCESSES
LED
MATURITY
THIRD IN
WESTERN
CAPE
BEST
PRACTICES:
HIV/ AIDS,
GENDER,
DISABILITY
BLUE FLAG
STATUS
3 BEACHES
MOSSEL BAY
NR1
TOWN FOR
BUSINESS
BLUE DROP &
GREEN DROP
STATUS
BIGGEST
DESALINATION
PLANT
CLEANEST
TOWN
&
TOWN OF THE
YEAR
UNQUALIFIED
AUDITS FOR THE
PAST FOUR
YEARS IN A ROW
CLEAN
AUDIT
2011/2012
PMS IMPLEMENTATION IN MOSSEL BAY MUNICIPALITY
Adoption of
Performance
Management
Framework by
Council- 06
July 2009
Workshop with
Stakeholders:
Trade Unions,
Ward
Committees
and Audit
Committees
Workshop with
Lower level
staff
Workshop with
Head of
Departments
Workshop with
Mayco &
Executive
Management
Workshops
with EXCO
Draft
Performance
Management
Framework
Appointment of
External
Service
Provider
Provincial
Government’s
Capacity
Building
Programmes
ORGANIGRAM: LOCATION OF FUNCTION
Director :
Corporate
Services
Sub Directorate Head:
Change Management and
Policy Development
Admin
Officer: PMS
Clerk
Internal
Auditors
Municipal
Manager
MAYCO
Director:
Technical
Services
Director:
Development
and Planning
Director:
Community
Services
IDP
PMS
EMPLOYMENT EQUITY
Director:
Financial
Services
Budget
Office
SDBIP
Officer
Assistant
Accountant
LEGISLATIVE OVERVIEW
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SA legislative and regularity framework to define PMS
Constitution of the RSA, 1996 – Section 155
White paper on Local Government (1998)
Municipal Systems Act, 2000 – Chapter 6 (Sec 38 -46)
Performance managements system to be implemented by
each municipality
Culture of performance within municipality
Efficiency, economically, effectively and accountability
Regular monitoring and evaluation
Addresses the key components of the PMS
Municipal Finance Management Act 2003
LEGISLATIVE OVERVIEW
o Municipal Planning and Performance Management
regulations (796, Aug 2001)
o Performance Management Regulations for MM’s &
s57 Appointees (R805, Aug 2006)
o Framework for managing programme performance
information (2007)
o White paper on transforming Public service delivery
(Batho Pele)
o National and Provincial Regulations and MFMA
Circulars
o Annual report guideline, SDBIP and Oversight report
Notice 464: Directive: Performance information
public audit act (2007)
Auditor-General to audit PMS
GOVERNANCE AND AUDITING
Policy Framework
 Framework for managing performance processes
 Systems to measure performance
 Reporting structure and delegations
Record-keeping
 Changes to PDO’s / KPI’s
 Supporting documentation
GOVERNANCE AND AUDITING
Performance Calendar
 Performance calendar to explain when what will need to be
done
 Reporting on specific day of month
 Reviews by Council and management
 Municipal website
Performance Reporting
 Risks related to objectives prioritised and mitigated
 Monitor
 Evaluate
 Review
 Corrective actions
GOVERNANCE AND AUDITING
 Internal Audit
 Audit plan to include the quarterly audits of
performance management.
 Re-evaluate the SDBIP

Pre- Audit done
 Assist in improving external audit outcome
Combined Assurance Approach:
- minimise duplication of audit efforts
GOVERNANCE AND AUDITING
 Should assess:
 Risks and control measures regarding
performance information
 Risks informing audit plans
 Legal compliance
GOVERNANCE AND AUDITING

Should assess:
 Structure and delegations
 Alignment – are we achieving our objectives
 Controls to document evidence and compile
performance reports
 Functionality of the performance
management system
 Accuracy, completeness and validity of
performance information
 Performance evidence
GOVERNANCE AND AUDITING
Performance Audit Committee
According to the regulations, the performance
audit committee must:
 review the quarterly reports submitted to it by
the internal audit unit
 review the municipality's performance
management system and make
recommendations in this regard to the council
of that municipality
 assess whether the performance indicators
are sufficient
GOVERNANCE AND AUDITING
Performance Audit Committee
According to the regulations, the performance
audit committee must:
 at least twice during a financial year submit
an report to the municipal council
 Observer during evaluations of s57 –
appointees
 It is further proposed that the audit
committee be tasked with assessing the
reliability of information reported.
PERFORMANCE MANAGEMENT DEFINED
“ Performance Management is about creating
relationships and ensuring effective communication
between the employer and the employee.”
“ Performance
Management is
about effective
utilisation of
available
resources for
maximum
impact on
service
delivery”
CHANGE
PROCESS & SYSTEM
IMPROVEMENT
TEAMWORK
OBJECTIVE
“ Performance
Management is an
ongoing process
throughout the year.
It’s not just about
performance
appraisal. In fact,
performance appraisal
is only a small part of
it. Performance
management is about
preventing, detecting
and solving underperformance
problems”
BASIC REQUIREMENTS - PMS FRAMEWORK
 Must be applicable to all levels in the municipality
 Corporate performance indicators aligned with IDP and budget
and SDBIP
 Performance Contracts, evaluation and measurement for s57
appointments and other managers
 Performance management and evaluation at lower level
 Create a culture of performance within the municipality
 Including incentives
performance
to
assist
in
 Measures to address weak performance
creating
a
culture
of
TRANSFORMING PMS IN MUNICIPALITIES
PMS NO’S X
PMS YES’s 
Stay old school
Just skip it
Appraise
Performance
Tell Employees
Modernise your thinking
Identify the benefits
Manage Performance
Don’t bother with
goals
Rely on memories
Ignore motivation
Plan precisely with clear goals
Stay aloof
Be approachable all year
Work with employees and treat
all equally
Document Performance
Set performance incentives
TRANSFORMING PMS IN MUNICIPALITIES
PMS NO’S
X
PMS YES’s
Focus on the forms
Focus on communication
Rely on technology
Make it face to face
Wing the appraisal
Prepare the appraisal
Ignore the Why’s
Identify causes and develop
employees
Praise grudgingly
Recognise success
Evaluate attitude
Focus on behaviour and results
Discipline without
warning
Use progressive discipline
MBM - PMS FRAMEWORK
The performance policy framework (ADOPTED by MBM
Council in 2009) provides guidance in terms of the
municipality’s cycle and processes of performance planning,
monitoring, measuring, reviewing, reporting, auditing and
quality control.
PMS GOLDEN THREAD OF ACCOUNTABILITY
PMS OBJECTIVES
 Facilitates strategy (IDP) deployment throughout the
municipality and align the
organization in executing its
strategic objectives - Vision, mission and IDP into clear
measurable outcomes
 Tool for assessing, managing, and improving the overall health
and success of business processes and systems.
 Create an organisational performance culture (culture of best
practices);
 Provide early warning signals;
 Promote accountability.
 Develop open and constructive relationship
customers, leadership and employees;
between
PMS OBJECTIVES
 Encourage reward for good performance;
 Manage and improve poor performance;
 Link performance to skills development and career
planning, therefore encourage learning and growth; and
 Replace existing assessment models with a consistent
approach
to
performance
measurement
and
management.
 Sustainable improvements in Service Delivery
 Comply with legislative framework
PMS PRINCIPLES
 Simplicity
 We develop our community by developing our staff
 Align with municipal strategy and promote good
performance
 We appoint good people and therefore expect good
performance
 Each staff member takes ownership of own career
PMS PRINCIPLES
 Implementable
 Transparency and accountable
 Effective and Efficient
 Public participation
 Integration with municipal processes
 Objectivity
 Reliability
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
 Inconsistency between Integrated Development Plan,
Service Delivery and Budget Implementation Plan and
Annual Performance Report
 Pre- determined objectives and indicators were not
measurable
 No processes and systems were in place to monitor
the achievement of goals and targets.
 No corrective actions and measure were provided In
the cases where indicators were deleted, the reason
for such amendments was the mere fact that the
indicators were not measurable and there was no
measuring tool or instrument to determine the results
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
 KPI’s are were not relevant and measurable
 Indicators/measures not verifiable (not possible to validate the
process and system that produce the indicator)
 KPI’s reported on in all PM reports were not the same
 Lack of monitoring and review of the recording of actual
achievements by senior management
 Lack of standard operating procedures of the recording of actual
achievement
 Insufficient POE kept
 No quarterly reporting to council on Top Layer SDBIP
 No monthly reporting to Portfolio Committees on Departmental
SDBIP
 Audits of actual performance not taking place, especially Top Layer
 Performance audit committees not established and meeting to
analyse performance reports and audits of performance by internal
audit
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
 Indicators and targets were not suitably developed
during the strategic planning process
 IDP objectives not achievable, cannot be aligned
with budgets and SDBIP (iMAP)
 KPI’s on SDBIP that were not budgeted for
 SDBIP (KPI’s and targets) were not adjusted when
budgets were adjusted
 Planned development priorities/objectives were
changed but not approved and/or adequately
explained in the annual performance report
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
 Sufficient reasons for non-performance and
corrective measures were not indicated on the
system and in PR’s and annual reports
 Measures taken to improve performance not
supported by adequate and reliable corroborating
evidence
 The annual performance report was not on time for
audit purposes
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
 Sufficient appropriate audit evidence/relevant
source documentation could not be provided to
measure the validity and accuracy of KPIs
 Actual results reported in the annual
performance report per KPI are inaccurate
PERFORMANCE MODULE LINKAGES
Organisational
Performance
KPI’s linked to budget
KPI’s linked to Nat KPA’s
KPI’s linked to mun KPI’s
KPI’s per department
Baseline per KPI
Targets per quarter / month
Types of indicators
Responsibility
Measurement criteria
Reviews and reporting
Annual Report
Performance improvement
SDBIP & PERFORMANCE DEVELOPMET
PM Policy (Framework)
IDP / MY-Mun SC
Top Level SDBIP
Monitoring / evaluation
Municipal Scorecard
LGTAS
BUDGET
Departmental SDBIP
Dept ‘s
Activities
Implement of top level &
detail performance of
dept’s
Council
Dept A
Top Level SDBIP Quarterly
Reports
Work Place Skills
Plan
Exco
Mgmnt
SDBIP Monthly Reports
Portfolio
Committee
Dept B
Serv.
Skills Development
Council
S57 Performance Contracts
R805
Staff Performance
Provider s
SCM
SP Perf. Quarterly Reports
Mgmnt
Council
S57 Performance Reviews
Evaluation
Committee
Staff Performance Reviews
Managemen
t Team
Ownership: Municipal Manager / Performance Manager / Executive Mayor
INTEGRATING FINANCIAL AND NON- FINANCIAL
information
IDP
BUDGET
SDBIP
Nat Outcomes
Vision
Prov. Strat.
Nat KPA’s
Goals / objectives
Strategies / programmes / projects
Implementation and monitoring instruments
OPERATIONAL
BUDGET
Strategic Objectives
Revenue
National Requirements
Top Layer SDBIP
&
IDP Strategic Objectives
Strategic objectives are long-term, continuous strategic
areas that help you connect the municipal mission to
its vision. Strategic objectives encompass four areas:
financial, customer, operational, and people.
What are the key activities that you need to perform in
order to achieve your vision / Mun KPA’s?
Operational
Expenditure
Financial SDBIP
For 2010 /11
Revenue
BUDGET Alignment
Capex
Opex
Budget should visibly address
strategic objectives.
Budget should address
prioritised projects.
Departmental SDBIP
KPI’s to implement Top Layer
SDBIP
Departmental Activities
IDP
CAPITAL BUDGET
Prioritised Capital Projects
Capital Projects Progress
Prioritised Capital Projects
For 2010 /11
INTEGRATING FINANCIAL AND NON- FINANCIAL INFORMATION
iMAP
Reporting on:
• Financial Information
• Non-financial information
• Alignment of IDP with budget
and budget with SDBIP
• Alignment with provincial and
national strategic interventions
TOP LAYER SDBIP
OWNERSHIP
INPUT
IDP SC
Budget
MTAS
Nat.
Outcomes
Risk
Register
Top Layer
SDBIP
Municipal
Manager
Performance
indicators
Directors
Capital
Expenditure
Strategic
Manager
Directors
Submitted to
Council to Review
Year-end Review
Directors
Monthly
Cashflow
Directors
Expenditure per
Ward
Directors
Quarter 3 Review
CFO
Municipal Manager
Dir’s / SDBIP Officer
CFO
CFO
Municipal Manager
Dir’s / SDBIP Officer
CFO
Revenue by
source
OWNERSHIP
Mid-year Review
(Include s72 report)
Dir’s / SDBIP Officer
Quarter 1 Review
Municipal Manager
Municipal Manager
Dir’s / SDBIP Officer
Director
s
CFO
Actual Performance
Financial
Performance
Multi-Year Municipal Scorecard
Submit to Mayor (14 days after budget
approval
Mayor review and approve (28 days
after budget approval
Municipal Website
Revenue by
source
Risk
Register
Expenditure per
Ward
Monthly Report to Portfolio Committee
Actions to address areas where performance are less than required standard
SDBIP Officer
Management
Annual Report Input
Management Team Monthly Review
Municipal Systems
Management
Reporting Requirements
Actual Performance to be updated monthly
Departmental Activities
All KPI Owners
Capital
Mayor review and approve (28 days after budget approval)
Performance
indicators
Municipal Manager
Departmental Scorecards
Council Scorecard
Departmental SDBIP
Monthly
Cashflow
Directors
Nat.
Outcomes
Projects
Municipal Manager
MTAS
INPUT
Budget
INPUT
IDP
OWNERSHIP
DEPARTMENTAL SDBIP
Update TL SDBIP with actual results of Dept SDBIP
Top Layer SDBIP
CONCLUSION
It is important to note that a PMS is dynamic
and will change and develop over time to
reflect the unique features of the municipality.
Performance management provides the
mechanism to measure whether targets to
meet its strategic goals set by the organisation
and its employees are met.
Explore
Endless
Horizons
THANK YOU/ DANKIE
YOURS IN SERVICE DELIVERY….