Description2009/10Current Year 2010/112011/12 Medium Term Revenue & Expenditure Framework R thousandsAudited OutcomeOriginal BudgetAdjusted BudgetFull Year ForecastBudget Year 2011/12Budget Year +1,2012/13Budget Year +2,2013/14 RECEIPTS: Operating Transfers and Grants National Government: 198,379.00 295,452.00 295,667.00 295,667.00 354,860.00 375,442.00 395,759.00 Equitable share195,764.00 281,530.00 281,530.00 281,530.00 325,908.00 360,052.00 384,758.00 Finance Management1,611.00 1,250.00 1,250.00 1,250.00 1,250.00 1,500.00 1,500.00 Municipal Systems Improvement1,005.00 790 .00 1,000.00 850.00 Department of Water Affairs9,815.00 10,030.00 10,030.00 7,512.00 9,242.00 5,000 Municipal Infrastructure Grant/ EPWP2,857.00 2,857.00 2,857.00 19,400.00 3,648.00 3,651.00 Provincial Government:35,964.00 22,525.00 28,191.00 28,191.00 15,831.00 1,315.00 1,388.00 Health subsidy13,996.00 10,207.00 19,296.00 19,296.00 Housing 1,426.00 1,426.00 1,241.00 1,315.00 1,388.00 Roads and Public Works21,968.00 12,318.00 7,469.00 7,469.00 14,590.00 District Municipality: – – – – – – – [insert description] Other grant providers:22,453.00 – – – – – – Other subsidies21,977.00 Agriculture476.00 Total Operating Transfers and Grants256,796.00 317,977.00 323,858.00 323,858.00 370,691.00 376,757.00 397,147.00
Description2009/10Current Year 2010/112011/12 Medium Term Revenue & Expenditure Framework R thousandsAudited OutcomeOriginal BudgetAdjusted BudgetFull Year ForecastBudget Year 2011/12Budget Year +1,2012/13Budget Year +2,2013/14 Capital Transfers and Grants National Government: 204,717.00 297,700.00320,446.00320,446.00401,279.00531,791.00582,014 .00 Municipal Infrastructure (MIG)137,881.00233,779.00233,779.00233,779.00281,604.00342,403.00361,433.00 Public Transport 5,078 .001,100.001,100.001,100.001,688.001,780.001,869.00 Water Affairs61,316.0042,250.0045,250.0045,250.00112,000.00179,350.00210,000.00 Sport and Recreation406.005,530.005,5305,987.008,258.008,712.00 Water Affairs14,216.0014,216.00 EPWP37.0020,571.0020,571.0020,571 Provincial Government: – 12,531.0012,531.0012,531.007,910.00 – – Roads and Public Works12,531.0012,531.0012,531.007,910.00 District Municipality:50,832.00 – – – – – – Equitable share45,069.00 Treasury Grant5,763.00 Other grant providers:1,435.0012,401.006,871.006,871.00 – – – Economic Development1,435.0011,651.006,121.006,121.00 MSIG750.00750.00750.00 Total Capital Transfers and Grants256,983.00322,632.00339,848 .00339,848.00409,189.00531,791.00582,014.00 TOTAL RECEIPTS OF TRANSFERS & GRANTS513,779.00640,609.00663,706.00663,706.00779,880.00908,548.00979,161.00
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Chapter 6: Financial Plan
Performance Management System Chapter 7
Photo: Limpho Hani, wife of Chris Hani, was the guest speaker at the Adoption of the IDP Review at Qamata.
Performance Management System
The CHDM Council makes use of the Municipal Scorecard Model as its model for performance management.
Policy and Legislative Context
The Chris Hani District Municipality Performance Management Policy Framework is centrally informed by legislation, policy and regulations relevant to performance management in local government. It is designed to comply with all the requirements specified therein, as well as to reflect the vision of developmental local government centred on improving the quality of the lives of local communities.
1. The White Paper on Local Government, 1998
The White Paper on Local Government of 1998 puts forward performance management as one of the tools and approaches that assist municipalities to realise their developmental outcomes.
2. The Municipal Systems Act, 2000
Chapter 6 of the Municipal Systems Act of 2000 sets out requirements in terms of the establishment, development, monitoring and review of performance management systems for municipalities. The Act specifies the core components of the system, as well as requirements for community involvement.
It further requires the setting of appropriate key performance indicators and targets, performance measurement audits and performance reporting. The Chris Hani District Municipality Performance Management Policy Framework is designed to meet these requirements.
3. Municipal Planning and Performance Management Regulations, 2001
The Municipal Performance Management Regulations of 2001 describe the nature of performance management systems required in municipalities as follows:
In developing its performance management system, a municipality must ensure that the system:
Complies with all the requirements set out in the Act;
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Demonstrates how it is to operate and be managed, from the planning stage up to the stages of
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performance review and reporting;
Defines the roles and responsibilities of each roleplayer, including the local community, in the
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functioning of the system;
Clarifies the processes of implementing the system within the framework of the integrated
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development planning process;
Determines the frequency of reporting and the lines of accountability for performance;
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Links organisational performance to employee performance;
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Provides for the procedure by which the system is linked with the municipality’s integrated
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development planning processes; and
Shows how any general key performance indicators envisaged in Section 43 of the Act will be
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incorporated into the municipality’s planning and monitoring processes.
4. Municipal Finance Management Act, 2003
The purpose of the Act is to secure sound and sustainable financial management of municipalities and other institutions in terms of local norms and standards. The Municipal Finance Management Act stipulates requirements for reporting and setting targets and Key Performance Indicators (KPAs). The Act also proposes that the performance agreements of the municipal manager, senior managers and any other categories of officials as may be prescribed, are made public no later than 14 days after the approval of the municipality’s Service Delivery and Budget Implementation Plans.
Copies of these performance agreements must be submitted to the Council and the MEC for Local Government in the province.
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Chapter 7: Performance Management System
The Municipal Finance Management Act requires a municipality to include its annual municipal performance report with its financial statements and other requirements in constituting its annual report. This must be dealt with by the municipal council within nine months of the end of the municipal financial year.
5. Municipal Performance Regulations for Municipal Managers and Managers Directly Accountable to Municipal Managers, 2006
This regulation sets out how the performance of municipal managers will be uniformly directed, monitored and improved. The regulations address the employment contract of a municipal manager and managers directly accountable to municipal managers. They also address the performance agreement that is entered into between respective municipalities, municipal managers and managers directly accountable to municipal managers. These instruments will, in combination, ensure a basis for performance and continuous improvement in local government.
Initialising The PMS
In initiating the process it is crucial that the roles of various stakeholders are well defined and the institutional arrangements are set. It is also important to have a rigorous change management process to ensure that the principles governing the system are adhered to.
1. Delegation of Responsibilities
In terms of the MSA, the executive mayor of Chris Hani District Municipality is responsible for the development and management of the PMS and it is the responsibility of Council to approve and adopt the system. The executive mayor then assigns the responsibility for the management and development of PMS to the municipal manager. However, the executive mayor remains accountable for the PMS.
The directors (Section 57 appointees) are responsible for implementing PMS in their respective departments, according to the approved framework.
2. PMS Infrastructure in the district
A project team led by the municipal manager is responsible for organisational performance management. The project team consists of the Director, IPED, IDP/PMS Manager and Internal Auditor(s). The PM team is responsible for the following core activities:
Development and implementation of the organisational PMS;
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Ensuring CHDM’s implementation and compliance of all legal aspects in respect of the PMS policy;
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Facilitating further development and refinement of the PMS;
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Continuously supporting CHDM through the implementation, assessment, review and monitoring
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of the process.
Responsible for compiling the annual status report to the Council.
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Development Of The PMS
1. The Revised Municipal Scorecard Model
The Chris Hani Municipal Council will make use of the Municipal Scorecard Model as its model for performance management. This model is useful as it is:
Tightly aligned to the strategic planning and IDP processes of the municipality;
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Directly relevant to the notion of developmental local government;
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A balanced view of performance based on municipal inputs, outputs, outcomes and process;
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A simple portrayal of municipal performance, where inter-relationships can be mapped
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(municipality wide, at sectoral/departmental and unit/programme levels);
Compliant with the requirements of the Municipal Systems Act of 2002 and its subsequent
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regulations of 2001; and
CHRIS HANI DISTRICT MUNICIPALITY IDP REVIEW 2011-2012
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It aligns to 5 Key Performance Areas for Local Government used in the
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o Regulations
o Five Year Local Government Strategic Agenda o Vuna Awards for Performance Excellence.
The 5 Key Performance Areas from the Five Year Local Government Strategic Agenda are:
o Municipal Transformation and Organisational Development o Infrastructure Development and Service Delivery
o Local Economic Development
o Municipal Financial Viability and Management o Good Governance and Public Participation
The Municipal Scorecard Model is based on five key perspectives outlined in the following figure:
Figure 1: Structure of the Municipal Scorecard
Organisational Scorecards At Different Levels
The municipality uses two levels of scorecards for Chris Hani District Municipality, as depicted in Figure 2.
Figure 2: Two Levels of Scorecards
The Municipal/Strategic Scorecard
The municipal/strategic scorecard provides an overall picture of performance for the municipality as a whole, reflecting performance on the strategic priorities set out in the IDP.
Financial Management Perspective
Institutional Development Perspective
Service Delivery Perspective
Costs Inputs Outputs Outcomes