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Section 47 Report 2007/08. Content of S47-Report. Section 47 process Research methodology and structure of the report Challenges Executive summary/ general trends Chapter 1: Geographic, Demographic, and Socio Economic Profiles Chapter 2: Municipal Integrated Development Planning - PowerPoint PPT Presentation
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Section 47 Report
2007/08
Section 47 process
Research methodology and structure of the report
Challenges
Executive summary/ general trends
Chapter 1: Geographic, Demographic, and Socio Economic Profiles
Chapter 2: Municipal Integrated Development Planning
Chapter 3: Municipal Transformation Institutional Development
Chapter 4: Basic Service Delivery
Chapter 5: Financial Viability and Management
Chapter 6: Good Governance and Public Participation
Chapter 7: LED
Chapter 8: Cross cutting matters
Chapter 9: Municipal Challenges and Achievements
Chapter 10: Provincial Support and Capacity Building Initiatives
Content of S47-Report
Section 47 Process(See Legislative overview in report for more detail)
Submission of financial statements by
municipalities
31st August
Completion of Audit process by 30 November
Completion of draft municipal annual report by
31st December
Tabling to Council by
31st January
(Make public after tabling for comments)
b
Finalise Annual report after taking into
account public comments and Council
adoption of oversight report by
31st March
(submit copy to AG,PT,MEC and provincial
legislature)
Compilation of Section 47 report
Third report of this nature
Completed after intense data collection from municipalities , provincial
departments and the Provincial Treasury
Information was categorised and analysed in accordance with the 5 National
KPA’s
Each KPA in separate chapter
A concise questionnaire was distributed to municipalities to collect additional
information not covered in annual reports
Other information utilised amongst others:
Municipal annual reports
Financial Statements
AG reports
IDP’s and assessments
In certain instances, the information reflects the current status (is indicated as
such)
Summary evaluation grid at the end of each chapter
Research methodology and structure of the report
Some information was received very late, some still outstanding to date
Incomplete questionnaires
Questionnaire still outstanding (Breede Valley)
Quality of data received still remains problematic, especially with regard to service
delivery
Some assessments hampered due to incomplete and quality of information
received, i.e. filled and vacant posts – dept. deleted question from questionnaire,
therefore no information in most cases
Provincial support chapter problematic
No data was received on provincial support from PT or any other provincial
department
Information for department itself not sufficient
Despite challenges, improvement in reporting format
Challenges
Period marked with slight improvement in service delivery initiatives and huge
improvement in audit outcomes
Witnessed changes in council leadership at 60% of the municipalities and changes
in administrative municipal management and leadership at 27% of the
municipalities
The lack of financial resources and the shortage of skills at municipal level
remains a challenge
Although there is a high level of technical and administrative compliance with
regards to integrated development planning, there are clear areas for
improvement.
Almost all municipalities indicated that a lack of funding for bulk services is
hampering their delivery in respect of basic services, especially with regard to the
provision of housing
Executive summary/ general trends
Almost all municipalities indicated that a lack of funding for bulk services is
hampering their delivery in respect of basic services, especially with regard to the
provision of housing
An analysis of municipal financial statements indicates that municipalities are very
reliant on capital grants to fund their capital expenditure. This gives an indication
that the revenue base of municipalities is insufficient to generate enough funding
for provision and maintenance of basic infrastructure
The average % of capital budget spent for the Province has improved to 76.24% in
2007/8, but the average % spent on the MIG grant have declined from almost
100% in the 2005/06 financial year to 84% in the 2007/08 financial year
The main reason cited by municipalities for under spending their capital budgets
and MIG is the lack of capacity/technical skills in their Engineering/Technical
Departments.
Most municipalities submitted their financial statements on time and there has
been a huge improvement in the audit outcomes for the 2007/08 municipal
financial year with three disclaimers.
Executive summary/ general trends cont.
General information chapter
Include
Geographic information per municipality & Demographic information per
municipality as per Gaffney’s 2007/08
Socio- economic information per municipality – PT 2007, same as last year
Political composition of municipalities – as at 11 December 2008
Treasury capacity classification
Chapter 1: Geographic, Demographic, and Socio Economic Profiles
Include
Vision and missions per municipality
General compliance for IDP processes – general questions in questionnaire
Whole chapter was reviewed by the IDP section
Analysis:
only 3 of the 30 municipalities were deemed to have not fully achieved credible IDPs
High level of technical and administrative compliance with regards to IDP, Lack of internal municipal ownership of the IDP across the administration and leadership, the tightening of the IDP-budget link, improving the ward-based deliverables
Thirteen municipalities indicated that the LGMTEC engagements did not positively contribute to their IDPs
Closer scrutiny of the 8 municipalities that have received IDP support during 2007/8, indicates implementation and operational constraints which points to internal staff capacity and how the IDP is managed within the municipality
Chapter 2: Municipal Integrated Development Planning
Analysis graph:
(Utilised IDP section analysis of IDP’s
Chapter 2: Municipal Integrated Development Planning
Include
Filled and vacant posts per municipality
Transformation statistics per municipality
Status with MM positions
Compliance with HR systems and policies, skills development, implementation of PMS and AG reports on performance
Analysis:
Vacancy rates in financial and technical posts are high and municipalities are experiencing huge challenges in the filling of these posts on all levels
The employment of female employees in Section 57 management positions remains a challenge in all the municipalities
Although all submitted skills development plans, barely 1% of budgets in most are expended to actually develop the skills of their employees. The success of the implementation of these plans is hampered by budgetary constraints and capacity.
Auditor–General reports (2007/08) and information submitted indicated that most municipalities have implemented or are in the process of implementing PMS
Chapter 3: Institutional Development and Transformation
Overall analysis graph:
HR Management
Chapter 3: Institutional Development and Transformation
Overall analysis graph:
PMS
Chapter 3: Institutional Development and Transformation
Overall analysis graph:
Chapter 3: Institutional Development and Transformation
Include
Level of services
Completion of sectoral plans
% capital budget spent
Free basic service, MIG, Housing
Analysis:
Hampered by lack of credible and insufficient information submitted
Lack of info of situation in rural areas
Main challenges with the delivery of services is the escalating costs of service provision and infrastructure development and maintenance, as well as the costs of backlog eradication
Most municipalities are reliant to a great extent on capital grants from other spheres of government to fund their capital expenditure
There is a considerable shortage of funds for maintenance, mainly for roads, storm water drainage and sewerage
Capital Spending improved from 66.67% in 2005/06 to 76.24% in 2007/08
Main reason cited for not spending capital budget is the lack of capacity and technical skills in its Engineering/Technical Departments.
MIG spending declined for 100% to 84%
Chapter 4: Basic Service Delivery
Overall analysis graph:
Chapter 4: Basic Service Delivery
Include
Performance against budgets , grants
Findings in AG Reports
Debt Management
Reliance on grants
Liquidity ratio’s
Analysis:
Average performance for the past three financial years against revenue and expenditure operational budgets are 99,3% and 96,6% respectively, of which salary bills formed the majority of around 30%.
Overall performance against conditional grants received decreased from 73% in 2006/07 to 66 % in 2007/08
Rely heavily on conditional grants such as MIG
Huge improvement from 11 to 23 from the 2006/07 to the 2007/08 financial year in the number of reports that are unqualified
The key findings that was indicated the most by the Auditor General were “Non- compliance with laws and regulations” and “Internal control/ internal audit weaknesses
73,5 % is for debt older than 90 days
Chapter 5: Financial Viability and Management
Overall analysis graph:
Chapter 5: Financial Viability and Management
Include
Good Governance Indicators
Ward Committees, Anti-corruption
AG Findings on governance
Analysis:
98% of Municipal Council and Executive/Mayoral Committees achieved the requisite quorums for meetings
Most municipalities adopted codes of conduct for Council and staff
Eleven municipalities reported Councillor and staff arrears and that mechanisms are being put in place to resolve arrears
Considerable progress has been achieved in establishing Ward Committees despite numerous challenges confronting municipalities and ward committees
There has been a general improvement (97%) in the development of Anti- Corruption Strategies and Plans across municipalities in the province
High level of non-compliance in matters of governance according to AG reports – 31% non-compliance with regards to operation of audit committees, 45% non-compliance with regards to fulfilling audit committee responsibilities, 69% non- compliance with regards to fulfilling internal audit responsibilities, 47% non-compliance with regards to implementation of previous external audit recommendations etc
Chapter 6: Good Governance and Public Participation
Overall analysis graph:
Chapter 6: Good Governance and Public Participation
Include
Development of strategies and implementation
URP and ISRDP
Analysis:
Analysis hampered by the unavailability of the majority of LED plans
All municipalities have an approved Local Economic Development Plan to inform the 07/08 Integrated Development Plan and without exception these plans were deemed to be the result of a transparent formulation process.
Implementation and subsequent are limited due to a shortfall in available funds, co-operation between stakeholders; low economic development potential and capacity
Although most of the strategies still focus on short term job creation and projects (total of 80 822 jobs created during EPWP programmes), a bigger emphasis is placed on facilitating economic development by assigning the responsibility to specific individuals at 87% of the municipalities
Chapter 7: LED
Chapter 8: Cross Cutting Matters
Include
Disaster management
IGR
Vuna
Chapter 9: Municipal Challenges and Achievements
Include
Summarised in tables
As identified by municipalities
As identified during Sec 47 process
Chapter 10: Provincial support
Provincial Treasury
Department Economic Development and Tourism
MIG and Housing
Chapters 8, 9 &10
Thank you
Questions
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