SENIOR MANAGEMENT CONFENRENCE FREE STATE Presenter: Kadimo Masekoane

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SENIOR MANAGEMENT CONFENRENCEFREE
STATEPresenter Kadimo Masekoane
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Presentation Overview

• Introduction and background
• Progress to date
• Overall challenges
• Current initiatives to address the challenges
• Addressing the challenges 2008-2011
• Conclusion

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1. Introduction and background

• Chapter 6 of the Municipal Systems Act , 32 of
  2000 and the LG Municipal Planning and
  Performance Management System entails the
  development of the Performance Management System
  stipulates that amongst others a municipality
  must
• Establish PMS that is in line with the
  priorities, objectives, indicators and targets
  contained in the IDP. Promote a culture of PMS
  among political structures
• PMS must be adopted by the municipal council
• Establish mechanisms to monitor and review its
  PMS
• Establish a process of regular reporting to the
  council, other political structures, public and
  other organs of state. Preferable quarterly
  reviews should be held to track progress in the
  implementation of the SDBIP
• Audit performance measurements through the
  Internal Auditor (some municipalities do not even
  have the Internal Audit Unit) and the AG will
  that annually
• Prepare, within three months of the end of the
  financial year an annual performance report that
  satisfies both the MSA (Sec 46) and the MFMA Sec.
  This report must be adopted by Council. Council
  must compile an oversight report on the
  performance of the municipality
• Submit both the annual and the oversight report
  to the MEC for Local Government

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1. Introduction and background

• Section 46 (1), states that, a municipality must
  prepare for each financial year a performance
  report, reflecting the performance of the
  municipality and of each external stakeholder
  during that financial year, compare with targets
  and indicate measures to improve performance
• Similarly, Section 47 states that, the MEC for
  Local Government must annually compile and submit
  to the provincial legislatures and the Minister a
  consolidated report on the performance of
  municipalities in the province, reflect
  underperforming municipalities and propose
  remedial actions to be taken and
• This report is presented in terms of Section 48
  of the Municipal Systems Act, no 32 of 200 which
  requires that, the Minister to compile and submit
  a consolidated report to Parliament and to MECs
  of Local Government on municipal performance
  according to the general key performance
  indicators and the report must be published on
  the government gazette. These indicators are
  prescribed in the Municipal Planning and
  Performance Regulations (2001)

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2. Progress
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2. What has been achieved - Nationally

• Generally implementation of Organisational PMS is
  poorly implemented in all the provinces
• The dplg conducted an audit of PMS implementation
  in 2006 and the results showed that only 27 of
  municipalities are implementing PMS in terms of
  the MSA
• The current reports from provinces show slight
  improvement with more that 50 of municipalities
  implementing PMS
• There is some indication of the oversight role
  played by the municipal councils in some
  provinces

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2. Adoption of Performance Management Systems
Framework
Analysis Implementation of Performance
Management System shows Improvement with rating
between 11 in Eastern Cape and 87 in Limpopo.
With FS showing only 29
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2. Compliance with sec 46

• Analysis 62 of municipalities submitted their
  sec 46 reports. Only Western Cape and Mpumalanga
  municipalities had 100 sec 46 of the MSA. FS had
  only 60 of their municipalities submitting their
  sec 46 reports

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PMS Implementation in Free State Province 2008
Analysis Although 3 of the components are over
80, most municipalities do not comply with
important sections of the Act e.g. Audit
Committees and submission Of the annual reports.
This corresponds with the reports from the AG
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3. Overall challenges

• 3.1 Lack of capacity and expertise at
  municipal level to plan, implement, monitor,
  report and evaluate municipal performance. The
  position of the PMS champion is currently at a
  level below Section 57 Managers leading to
  accountability and compliance challenges.
• 3.2 Municipal councils and provincial
  legislatures play a limited oversight role in
  ensuring compliance to Sec 46 and Section 47,
  respectively.
• 3.3 Absence of prescribed format and
  guidelines for the MSA municipal performance
  reporting has led to difficulty in analysing and
  interpreting the data received from provinces.
• 3.4 Lack of a systematic approach to the
  monitoring, reporting and evaluation of local
  government by the dplg and other stakeholders
  results in duplication of efforts. There is a
  need to streamline reporting and timeframes.
• 3.5 Poor linkage of the organisational
  Performance Management Systems (PMS)
  implementation to the Integrated Development
  Planning process and Service Deliver Budget
  Implementation Plan.

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Overall challenges cont.

• Implementation of Performance Management System
  started in 2001 and all municipalities were
  required to fully implement by 2006. An audit of
  Organisational PMS which was conducted in 2006
  revealed that only 27 municipalities were
  implementing PMS.
• Amongst others the following major challenges
  were identified
• PMS is an add-on function to other existing
  functions
• Lack of knowledge and expertise to develop
  organisational PMS
• Lack of oversight role played by legislature,
  municipal councils and communities

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5. Way forward and future outlookOUTLOOK
2008-2011(Addressing the overall challenges)
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Addressing challenges

• Improving the implementation of PMS in the
  municipalities
• Development and implementation of a National PMS
  Implementation Strategy
• Profiling of municipalities performing below
  selected PMS development and implementation
  standards to ensure targeted strategic
  interventions
• The dplg in partnership with the Provincial
  Departments of Local Government are currently
  providing technical hands-on support to
  identified municipalitiies in 5 provinces and
  Thabo Mofutsanyana is one of the five.
• A draft PMS Good Practice Model and Toolkit has
  been developed and will be replicated to identify
  municipalities lagging behind with the PMS
  implementation.
• Review of dplgs Performance Management
  Guidelines for municipalities (2001) to ensure
  synergy with the MFMA. 6.9 Harmonization,
  alignment and integration of MSA and MFMA
  reporting requirement and timeframes. To
  implement PMS

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Addressing challenges cont..

• Capacity Building
• 5.7 SALGA capacity building interventions will be
  strengthened to support municipal councils in
  providing their oversight role in the
  implementation of Performance Management Systems
  to ensure compliance with Sec 46.
• 5.10. In particular, focus will shift towards
  capacity building to carry out mandated
  service-delivery responsibilities for the entire
  municipal area.
• 5.11. Implementation of the 5-Year Local
  Government Strategic Agenda will focus on the
  mobilisation of national and provincial
  departments, SALGA and other relevant strategic
  partners to build capacity in municipalities
• Monitoring and Reporting
• 5.8. Standardization of reporting formats for Sec
  46, Sec 47 Sec 48 in line with the 5-Year Local
  Strategic Agenda.
• 5.9. The dplg, together with the provincial
  departments of local government will develop a
  systematic approach to the monitoring, reporting
  and evaluation of local government

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6. Process towards the drafting of the next
reports

• A national template has been developed to guide
  provinces to compile their section 47 reports,
  and the process for 2006/07 has already started.
• Hands-on support will be provided to provinces to
  finalise their section 47 reports.
• Discussions are underway with National Treasury
  and the Office of the Auditor General to
  streamline, standardise and confirm timeframes
  for reporting by municipalities.

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7. Conclusion

• The first Section 48 report on municipal
  performance that was presented to Parliament in
  June 2008 since the adoption of PMS in 2001 has
  revealed the extent to which further investment
  is needed to assist municipalities to effectively
  implement both organisational and individual PMS
• Thank you