Accreditation of Municipalities

1

• Accreditation of Municipalities
• to administer national and provincial Housing
  programmes
• 02 DECEMBER 2009

2
OUTLINE

• DEFINITIONS
• RATIONALE
• APPROACH
• INSTITUTIONAL AND FUNDING ARRANGEMENTS
• IMPLEMENTATION PROGRESS
• CONCLUSION

3
KEY DEFINITIONS

• Accreditation the recognition by an authority of
  the fact that an entity has met certain criteria
  and standards for purposes of fulfilling a
  particular function.
• Delegation is not a permanent transfer of
  functions. It does not include the transfer of
  the authority role, nor does it entitle the
  entity to which a function has been delegated to
  legislate on the matter or to direct funding from
  the fiscus.
• Delegation entails the exercise of a function on
  behalf of the delegating authority (as an
  agent). The ultimate authority still vest in
  the authority that delegates (who can revoke the
  delegation)
• Assignment is a transfer of a function, which
  includes the transfer of the authority role and
  this includes the right to receive directly the
  funds and the assets necessary to perform the
  function.

4
Rationale
5

• The national government and provincial
  governments must assign to a municipality, by
  agreement and subject to any conditions, the
  administration of a matter listed in Part A of
  Schedule 4 or Part A of Schedule 5 which
  necessarily relates to local government, if (a)
  that matter would most effectively be
  administered locally and (b) the municipality
  has the capacity to administer it.
• (The Constitution of the RSA, 1996 Section
  156(4).

6

• The Comprehensive plan envisages the
  accreditation of municipalities
• A framework is to be established to address
  various policy, constitutional and legislative
  aspects in order to enable municipalities to
  manage the full range of housing instruments
  within their areas of jurisdiction.
• (Breaking New Ground, Part B, Section 5.2
  Expanding the role of local government)

7
Framework For The Accreditation Of
Municipalities(approved March 2006)

• Rationale for accreditation
• Overall approach
• Institutional arrangements
• Funding arrangements
• Systems and capacity arrangements
• Ongoing reporting and monitoring requirements,
  and
• Implementation arrangements

8
Summary of rationale

• Coordinated development (horizontal integration)
• Municipalities a logical site for the effective
  alignment of inter-departmental and
  inter-governmental funding streams.
• Increased opportunities for the application of
  innovative planning principles
• Accelerated delivery (vertical integration)
• The efficiencies associated with devolving
  delivery authority to the local level should
  improve the rate of delivery

• Constitution
• s99 assignment from national government
• s126 assignment from provincial government
• s238 delegation
• s156(4) the obligation to assign certain
  functions (including housing) to municipal level
• Housing Act, 1997, section 10
• Provisions relating to the ongoing accountability
  of the provincial accounting officer are
  problematic
• Guidelines relating to assignment and delegation
  under the Municipal Systems Act

9
PRINCIPLES OF ACCREDITATION

• Logical application of roles and functional
  assignments (local alignment integration)
• Authority and accountability must accompany
  responsibility
• Accreditation follows capacity
• Funding arrangements must be consistent, certain
  and beyond interrogation
• Funding follows function
• Efficiency (enhanced govt. delivery capabilities)
• Co-operative governance

10
Overall Accreditation Approach
11
Three levels of Accreditation
Level Functions to be delegated following accreditation
Level 1 Delegation Subsidy budget planning and allocation and priority programme management and administration Includes housing subsidy budgetary planning across programmes and projects planning of subsidy/fund allocations, and project identification. Also includes programme management and administration functions for specific, prioritised programme(s) identified co-operatively in consultation with the PHD. Current municipal responsibilities (beneficiary management, local housing priorities and the management of public stock) remain unaffected Excludes individual and relocation subsidy
Level 2 Delegation Programme management and administration Includes project evaluation and approval, contract administration, subsidy registration, programme management including cash flow projection and management and technical (construction) quality assurance. Excludes. individual and relocation subsidy

12
Three levels of Accreditation
Level Functions to be delegated following accreditation
Level 1 Delegation
Level 2 Delegation
Level 3 Assignment (Assignment) Financial administration This includes subsidy payment disbursements, and financial reporting and reconciliation, as well as the assignment of all Level One and Level Two functions. Applicable to all national and provincial housing programmes, with the exception of excluded programmes (i.e. individual and relocation subsidy)
13

• Note Accreditation excludes functions that
  municipalities must perform statutorily
• Housing Act,
• Mun. Systems and
• Mun. Structure

14
PART 4 of the Housing Act (ss 9-10B) LOCAL
GOVERNMENT 9 Functions of municipalities

• (1) Every municipality must, as part of the
  municipality's process of integrated development
  planning, take all reasonable and necessary steps
  within the framework of national and provincial
  housing legislation and policy to-
• (a) ensure that-
• (i) the inhabitants of its area of jurisdiction
  have access to adequate housing on a
• progressive basis
• (ii) conditions not conducive to the health and
  safety of the inhabitants of its area of
• jurisdiction are prevented or removed
• (iii) services in respect of water, sanitation,
  electricity, roads, stormwater drainage
• and transport are provided in a
  manner which is economically efficient
• (b) set housing delivery goals in respect of its
  area of jurisdiction
• (c) identify and designate land for housing
  development
• (d) create and maintain a public environment
  conducive to housing development which is
  financially and socially viable
• (e) promote the resolution of conflicts arising
  in the housing development process
• (f) initiate plan, co-ordinate, facilitate,
  promote and enable appropriate housing
  development in its area of jurisdiction
• (g) provide bulk engineering services, and
  revenue generating services in so far as such
  services are not provided by specialist utility
  suppliers and

15
PRIORITISED MUNICIPALITIES

• Metropolitan Munics
• Cape Town
• Ekurhuleni
• EThekwini
• Joburg
• Nelson Mandela
• Tshwane

• Local Municipalities
• Buffalo City
• Emalahleni (Witbank)
• Rustenburg
• Mangaung
• Polokwane
• Sol Plaatjie
• !Khara Hais (Upington)

District Municipalities Piloting in Northern Cape
16
Accessing Municipal Accreditation
Implementation performance
Municipality Applies for Accreditation (by
invitation/ Targeted/ Other)
MoU
Initiation and Implementation (commitment)
support
Pre Accreditation Capacitation
Negotiated Munic Plan
Level 1 Accreditation Delegation
Compliance Certificate
Compliance Certificate
Level (2 or 3) Accreditation delegation
Assignment of Housing Function to Municipality
17
FUNDING
18
Institutional Funding Flow Arrangements
Reporting
Reporting
National Department of Housing
Oversight
MTEF municipal funding allocation direct from
national budget
Funding direct from national budget
MTEF municipal funding allocation via Province
Provincial Department of Housing
Subsidy database
Ongoing, regular reporting
Oversight, project approval funding admin
Oversight funding admin
Oversight
Oversight
Funding
Computerised subsidy applications submitted to
the provincial department for registration and
approval
Application for approval
Level Two Accredited Municipality
Non-accredited Municipality (status quo)
Level One Accredited Municipality
Level Three Accredited Municipality
Programmes projects identified, approved, and
funded directly by municipality
Programmes projects identified, prioritised
approved by municipality
Programmes and projects identified and
prioritised by municipality
Projects identified by municipality and submitted
to Province for approval, and funding
19
NATIONAL MUNICIPAL ACCREDITATION SUPPORT
PROGRAMME (FUNDING)

• Administered Nationally
• Provided capacity support to priority
  municipalities Provinces
• Funded over MTEF 2005/06 2008/09 (R195m)
• Installation and connection of the HSS
  infrastructure
• Technical support HR, systems and equipment
  acquisition
• Training and development of housing staff
• Support on housing planning, implementation
  through the development of the housing chapter of
  the IDPs
• Surveys and research

20
Implementation Progress
21
IMPLEMENTATION PROGRESS TO DATE

• All priority municipalities have council
  resolution in place to pursue municipal
  accreditation
• MoUs concluded between PHDs Munics
• Due diligence processes adhered to
• Understanding risks
• Outlining capacity requirements
• Budget planning and delivery planning
• Accreditation Business plans approved and costed
• NMBM, BCM, EThekwini, Emalahleni and Polokwane
  granted level one accreditation

22
CAPACITY AND COMPLIANCE ASSESSMENTS

• June 2009 - Established the Capacity and
  Compliance Assessment Panel
• Maintain standard methodology of assessment
• Serve and accessible to all provinces
• Reporting and accountability streamlined
• Assessment Panel consist of multi disciplinary
  practitioners plus Auditor (to reconcile audit
  credibility)

23
ASSESSMENTS PROGRESS

• Northern Cape
• Sol Plaatje
• Frances Baard
• Pixley ka Seme
• Western Cape
• City of Cape Town
• Eastern Cape
• Nelson Mandela
• Buffalo City
• KZN
• Ethekwini (Pending)

24

• Assessment panel in accordance with accreditation
  framework
• Is there a municipal-wide human settlements
  strategy/ plan?
• Is there capacity (optimally assembled)?
• What gaps are there?
• Sustainability (consistent/ robust/ credible)
• Systems
• Procedures
• Policies (consistent with National Policy)
• Funding assembly - including own contribution

25
IMPLEMENTATION CHALLENGES

• Provincial position on the implementation of
  accreditation ambivalent slow or non
  implementation
• Sustainability of capacity invested
• Ambivalence of Provinces - created uncertainty in
  municipalities
• Need clear position/commitment of Provinces for
  the programme to success
• NB only MEC can approve accreditation according
  to the Housing Act)

26
CONCLUSION
27
CURRENT OUTLOOK

• Sustain the Capacity Enhancement and Support
  Funding beyond 2008/2009? To support/Fund Level
  Two BP
• Responding to Growing demand for Accreditation
• PHDs readiness to process Accreditation
• Extending Accreditation to more municipalities?
• Performance of Municipalities(Current state of
  LG)
• Non Accreditation/Assignment leading to IGR
  Dispute (Constitution and Housing Act) e.g WC vs
  City of Cape Town
• Assertion for Accreditation/Assignment to LG e.g
  Treasury

28
CONCLUSION

• Continue Capacity enhancement support funding
• Resolution of joint LG and Housing MINMECJAN
  2009
• Metropolitan municipalities must be prioritized
  for level one and two accreditation Finalization
  of level one accreditation
• Encourage the use of the Implementation Protocol
  to fast track housing delivery and human
  settlements development
• THANK YOU