Annual Report-s121:
Performance report (MSA S46) against MPO
S71 and 72
Service Delivery Targets, Revenue, Expenditure
SDBIP PMS (s53)
IDP Priorities and Strategies
Budget-MPO
Institutional capacity
Dr Kenneth Kaunda DM | 2007-12 IDP Review: 2009/10 Page 174 of 311 Debt analysis
The PT analysed the debts owed by sector departments to municipalities and realised the following:
a) Dr. Keneth Kaunda districts isR19, 678,088.27 b) Ngaka Modiri Molema district is R67, 111,339.05 c) Bojanala district is R61, 725,695.10
d) Dr. Ruth Mompati district is R9 840, 764.42
The total debt owed by sector departments to municipalities in the Province amounts toR 158, 355,886.84.
The PT, DDLG & H has initiated forum that deals with municipal debts owed by sector departments to municipalities. There is a need to have a list (database) of contact persons in the sector departments for regular engagements experienced with municipal accounts. The Sector Departments need to send proof of payments (with breakdown of which accounts are paid) to municipalities when payments are made or make arrangements to use a specific reference.
DR KENNETH KAUNDA DISTRICT MUNICIPALITIES
Department City of
Tlokwe
Ventersdorp City of Matlosana
Maquassi Hills
Merafong City
Total Public Works 22,232.29 339,116.40 2,724,695.90 1,246,148.72 1,401,394.95 5,733,588.26 Education: 1,720,819.84 264,452.73 2,123,545.44 115,287.63 1,633,134.92 5,857,240.56
Health 185,274.36 37,412.28 3,429,358.22 12,880.97 0 3,664,925.83
Roads & Transport 27,331.38 0 7,430.43 16,773.35 0 51,535.16
Agriculture 99.27 0 0 2,374.90 0 2,474.17
Home affairs 14.95 0 0 0 0 14.95
Justice 1,237.57 18,673.90 0 0 0 19,911.47
Defence 4,631.54 0 0 0 0 4,631.54
DWAF 19,266.50 0 0 0 0 19,266.50
SAPS 320.81 31,402.08 0 0 0 31,722.89
DOW 25,947.63 0 0 0 0 25,947.63
Labour 47.50 0 0 0 0 47.50
Community Dev Board 701,380.98 0 0 0 0 701,380.98
TPA 0 9,308.82 0 0 0 9,308.82
Social dev 0 2,703.13 18,939.08 0 0 21,642.21
Dr KK DM (envrn health) 0 0 3,534,449.80 0 0 3,534,449.80
TOTAL 2,708,604.62 703,069.34 11,838,418.87 1,393,465.57 3,034,529.87 19,678,088.27
Status on IYM reporting
` Tabled the report to legislature for 25 municipalities for the 1st, 2nd , 3rd and 4th Quarter for 2007/08
` Appendix B returns: OSA, CFA, CAA, AC & AD.
` Improved the format slightly to illustrate the spending per quarter and year to date
` 2008/09 1st quarter consolidated report to be tabled before legislature and publicised.
` Focus on the quality of the information and the reports must be signed off by the CFO and endorsed by the MM.
Dr Kenneth Kaunda DM | 2007-12 IDP Review: 2009/10 Page 175 of 311 Mid-year Budget and Performance Assessment Visits 2008/09
Overview 2008/09
` To interact with the full management team on the performance of the muncipality before consideration could be given to an Adjustment Budget
` Stuctured engagement with a fixed agenda:
The 2007/08 annual report outcome and key achievements during the period
Review of the 2008/09 mid-year results against targets set in the Service Delivery and Budget Implementation Plan (SDBIP)
Ń The review focuses on municipal-wide, departmental and line management targets and the alignment of the SDBIP with senior management performance agreements
Ń The review should also be against the background of the 2nd quarterly financial results that should be available by the time of the visits
Ń Infrastructure delivery achievements against the Infrastructure Plan of the municipality Ń Spending on all the conditional grants and progress to achieving the conditions
The preparation of adjustment budgets and inputs thereto; and
The 2009/10 budget schedule and progress in achieving the milestones and timelines specified in the schedule
` Collective PT & DDLG&H participation plus other units in NT
Municipal Budget – App/Funding 2008/09
MUNICIPALITY Appropriations Funding
Capital Operating Total Own source External Total
R' 000 R' 000 R' 000 R' 000 R' 000 R' 000
Dr Kenneth Kaunda DM 59,960 98,535 158,495 31,753 126,180 157,933
City of Tlokwe LM 132,495 434,809 567,304 390,376 44,442 434,818
City of Matlosana 167,150 1,096,338 1,263,488 920,772 342,722 1,263,494
Merafong City LM 341,032 537,681 878,713 ? ? ??
Maquassi Hills LM 113,747 112,648 226,395 92,856 133,539 226,395
Ventersdorp LM 17,938 73,665 91,603 48,408 43,472 91,880
Overview 2009/10
` Alignment between the IDP and the budget;
` Extent to which municipal budget gives effect to national/provincial priorities;
` Municipal budget affordability, credibility and sustainability;
` Genuine and effective community consultation;
` Growth rates over the MTREF compared to the estimated outcome for the previous financial year excluding one-off expenditure items;
` Dependence on grant funding;
` Configuration of the budget between operating and capital expenditure; and
` Quality of the budget documents and compliance with reforms.
Dr Kenneth Kaunda DM | 2007-12 IDP Review: 2009/10 Page 176 of 311 Budget Formats, Contents and Regulations
New Budget Formats 2009/10 Specific aims of the budget formats
` To strengthen the links between transparency, understandability and accountability.
` Promote ‘good practice’ in municipal financial reporting.
` Ensure information is available to –
determine the financial status of municipalities;
assess if municipal budgets are funded in accordance with sections 18 and 19 of the MFMA;
assess indigent policies and pro-poor equity issues; and
facilitate performance comparisons and evaluations.
` Facilitate community and councilor understanding by aligning municipal financial management principles with good practice commercial financial management principles.
` Promote transparent reporting of tariff information
` Ensure compliance with DORA reporting requirements without duplicating reporting regimes-
the capital budget provides an analysis of all spheres’ allocations that fund capital (national, provincial, municipal – to entities, and districts), for the budget, receipts, expenditure and amounts unspent;
the operating budget provides an analysis of all spheres’ allocations to operating funding (national, provincial, municipal – to entities, and district), of both the budget, receipts, expenditure and amounts unspent; and
there is a table that requires a reconciliation of available cash and investments of funds to which obligations are attached. This will ensure better compliance.
` Meet the challenge of future accounting reforms.
Challenges
Reporting (Compliance with section 71); submission of returns with incomplete/ inaccurate information; Poor Budget management, (e.g. overstating revenue budget, which leads to over expenditure); Poor Audit Outcomes
Type of audit opinion 2006-07 2005-06
No. % No. %
Adverse 2 10% 4 19%
Disclaimer 14 67% 12 57%
Qualified 1 5% 1 5%
Financially unqualified (with other matters) 4 19% 3 14%
Financially unqualified (with no other matters) 0 0% 1 5%
TOTAL ANALYSED 21 100% 21 100%
2007/08 AFS Status
Summary of the Status of Submission to A.G as at 31 August 2008
Submitted Not Submitted Total
Number Of Municipalities 14 11 25
Dr Kenneth Kaunda DM | 2007-12 IDP Review: 2009/10 Page 177 of 311 Assistance
Capacitating Municipalities
` Poor Audit Outcomes
` Training/Workshops/Support
` Budget compilation process
` Treasury finance reforms – MFMA
` MFMA implementation & returns analysis
` Compilation of monthly returns (Section 71 Reports);
` Supply Chain Management
Conclusion
Budget is a complex process that involves various dimensions: planning, financial and politics. Each of these dimensions must be managed during the budgeting process in order to ensure that a credible and sustainable budget is produced.
E.2.10 Department of Land Affairs LAND REFORM PROGRAMMES
i. RESTITUTION
` Addresses plight on those dispossessed due to racially discriminative past laws.
` It is the competency of the Regional Land Claim Commission (RLCC) ii. REDISTRIBUTION: Act 126 of 1993
` Land Redistribution for Agricultural Development (LRAD). For emerging black farmers
` COMMONAGE: assist Municipalities to address Agricultural needs of residents
` LAND FOR SETTLEMENT: Human settlements
` EQUITY SCHEMES: Shared wisdom iii. TENURE REFORM
` ESTA: Evictions v/s Dev.plans of Loc.Gov.(Pressured demand put on limited resources)
` CLARA: Intended to formalise land ownership on communal land. Enacted but not yet implemented (pending Regulations and the court case)
` IPILRA: Governs Development on communal land. Need for DLA to be engaged at conceptualization stage of development.
CHALLENGES
` Land Price– When land is made available by the white farm owners, the price for Land Reform purposes are always escalated and this distorts the land market.
Dr Kenneth Kaunda DM | 2007-12 IDP Review: 2009/10 Page 178 of 311 Large groups due to high land prices!!
` Integrated Development Planning still poses a challenge. Housing developments and other developments such as mining and prospecting continue to take place on communal and state land without due regard to IPILRA provisions.
` Some evictions of farm workers/dwellers are still prevailing in the District & Province. The Courts effect eviction order without ensuring that alternative accommodation has been obtained and that confirmation of the order has been granted by the land claims court. There is also lack of coordination with municipalities regarding the settlement of evictees after eviction orders have been granted.
` Some land reform beneficiaries do not take full ownership of their projects and this poses a challenge to the sustainability thereof. (Lack of capacity)
` The implementation of LRAD has seen an increase in experienced farmers volunteering as mentors and equity partners to uplift the land reform beneficiaries, this poses a challenge as there is no common understanding of mentorship.
` Land Reform projects still require thesupport and commitment of all stakeholders
` Availability of productive land is still a matter of great concern to the success land reform.
Fertile land is not easily accessible for land reform purposes and therefore a strategy to penetrate this market is needed.
` The National target ofredistribution of 30% of white owned agricultural land by the year 2014 poses a great challenge to the Province. Calculations to establish the implications suggest the following:
TARGET CALCULATIONS
` 30% of Agricultural farm land to be delivered by 2014: = 2 035 680 ha
` Land transferred by PLRO & RLCC since the inception of land reform in the province up to March 2006 =236613.8153
` 2 035 680 ha – 236 613,8153 ha = 1 799 066.1847 ha
` Agricultural land still to be delivered by 2014: = 1 799 066.1847 ha
PERFORMANCE TO DATE
PRODUCT HECTARS TRANSFERRED CHALLENGES
LRAD 5530.9277 Sustainability. Need for incorporation on local & Provincial Dev Plans
COMMONAGE 3002.9584 Proper management
SETTLEMENT 6909.0991 Communication
ESTA 655.8368 Communication
PLAS 6922.1510 No proper Area Based Plan
TOTAL 23020.973
FUTURE PLANS
` Need for all to indicate commitment towards attainment of the 30%
Dr Kenneth Kaunda DM | 2007-12 IDP Review: 2009/10 Page 179 of 311 Private Sector /
Business Water rights, water
availability, quality, catchment/ wetland management issues, forestry and fire management issues
Enables integration into IDP & development frameworks
To embrace the new entrants in business DLA + DACE +
Local & District MUNICIPALITIES DWAF
Dept Economic Dev.
& Tourism