PART ONE-Strategic Overview and progress reporting Purpose and Background;

PART ONE-Strategic Overview and progress reporting1.Purpose and Background;2.Mandate, Vision, Mission, Values, Strategic Goals 3.Strategic Objectives and related projects FY 2013/14 4.Performance Progress Report for the period 01 April 2012 to date; and5.Programme specific Priorities for the FY 2013-2014

PART TWO-Budget Overview 1.Overall 2013/14 MTEF Allocations

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PURPOSE and BACKGROUND

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1. To present to the Select Committee (PC) on Cooperative Governance

and Traditional Affairs, the Department’s overview that encompasses

the Mandate, Vision, Mission, Values, Strategic Goals and Strategic

Objectives;

2. To present progress made against targets set in the 2012/13 Annual

Performance Plan; and

3. To present MTEF allocation that support implementation for the period 2013/14 to 2015/16.

Mandate

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The Departmental mandate is derived from chapters 3,5, 6,7,9 and13 of the Constitution.Our primary mandate is to:1. Develop and monitor the implementation of national policy and

legislation seeking to transform and strengthen key institutions and mechanisms of governance to fulfill their developmental role;

2. Develop, promote and monitor mechanisms, systems and structures to enable integrated service delivery and implementation within government; and

3. Promote sustainable development by providing support to and exercising oversight over provincial and local government.

VISION

As DCoG, we strive to build an effective, efficient, responsive and

developmental local government that will be the foundation for

improved and accelerated delivery of service to the communities.

Our Vision is: A Responsive, Accountable, Effective and Efficient System of Cooperative Governance

This vision is aligned to the aim of the delivery agreement on

outcome 9

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Mission statement

Our mission is to facilitate cooperative governance throughout all spheres of government in order to build a capable state that fulfils its developmental role through the following:

1. Development of appropriate policies, integrated programmes and regulatory mechanisms;

2. Promotion of service delivery support through enabling mechanisms and intergovernmental relations;

3. Achievement of social cohesion through the creation of enabling mechanisms for communities to participate in governance; and

4. Monitoring and evaluating the implementation of cooperative governance policies and programmes.

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VALUES

Guided by the Principles of Batho Pele, our values are:1.Professionalism and integrity; 2.Goal orientation; 3.Participation and Collectivism; and4.Innovation and Service Excellence.

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Strategic Goals and linkages to other plans

Strategic Goals Linkages to other plans/strategiesGoal 1: Facilitate the implementation of a policy framework that provides for a differentiated approach to municipal financing, planning and support

Aligned to output 1 of Outcome 9- A policy Framework that provides for a differentiated approach to municipal financing, planning and support is implemented

Goal 2: Facilitate improved access to basic services and sustainable infrastructure Development

Aligned to LGTAS priority Four and Five – Accelerating service delivery , and Facilitate sustainable infrastructure developmentAlso aligned to output 2 of outcome 9-Improved Access to Basic Services

Goal 3: Facilitate implementation of the community work programme and sustainable economic development at a local level

Aligned to output 3 of outcome 9- Implementation of the Community Work Program

Goal 4: Strengthening the effectiveness of cooperative governance through the development and roll-out of policies and legislation

Goal 5: Strengthen measures to fight corruption and unethical conduct

Aligned to LGTAS priority 3- Fighting Corruption

Goal 6: Strengthen, coordinate and support effective integrated disaster management and fire services

Goal 7: Deepen participatory democracy through a refined ward committee model

Aligned to output 5 of outcome 9- Local democracy through a refined Ward Committee model is deepened

Goal 8: Administrative and financial capabilities of municipalities are enhanced

Aligned to LGTAS Priority 1 and 2 Promoting sound financial management and Enhancing Good Governance, also aligned to output 6 of outcome 9Administrative and financial capabilities of municipalities are enhanced

The department has adopted the following 8 strategic goals to direct implementation over the MTEF period (2013/14 to 2015/16):

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Performance Progress Report for the period 01 April 2012 to 31 December 2012 and

Programme specific Priorities for the FY 2013-2014

The Slides that follow, outlines an overall summary performance for DCoG, followed by programme specific analysis of projects that are likely to be achieved and those that are likely not to be achieved by the end of the Financial year 2012/13.Programme specific priorities for the 2013/14 financial year are also outlined to show continuity in implementation over the MTEF period.

Summary of performance

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Out of the 71 targets set for the 2012/13 period, 53 were achieved, 14 partially achieved and 4 not achieved

(70%)

(7%)

23%

Programme specific summary performance

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The table above shows a breakdown of the achievement status per programme for the period under review. To date 75% of the planned targets have been achieved. This means that 25% of planned projects (14 partially achieved plus 4 not achieved) will be carried over to the next financial year.

Programme Achieved Partially Achieved Not AchievedTotal Number

of targets

Administration 14 (66%) 5 (23%) 2 (10%) 21

Policy, Research and Knowledge Management 2 (50%) 2 (50) - 4

Governance and Intergovernmental Relations 13 (81%) 2 (13%) 1 (6%) 16

National Disaster Management Centre 5 (100%) - - 5

Infrastructure and Economic Development 7 (64%) 3 (27%) 1 (9%) 11

Provincial and Municipal Government Support 12 (86%) 2 (14%) - 14

Total 53 (75%) 14 (20%) 4(5%) 71

Programme 1: Administration

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1. All the Governance structures have been established and are functional, these include the budget committee, the internal audit steering committee, the external audit committee and the supply chain management Committees;

2. The 2011/12 Annual Report and the 2012/13 Annual Performance Plan were submitted to Parliament on time. The Human Resources Plan was also submitted to DPSA as required;

3. It is likely that the majority of the administration targets in the APP 2012/13 will be achieved by the end of the financial year;

4. One main conclusion that can be drawn from this analysis is that efforts of improving the internal governance processes and systems will contribute vastly towards the achievement of an unqualified audit mainly because of our commitment to implement ,follow-through and report on progress against the Post Audit Action Plan for 2012/13

Although there is some progress with regard to the finalisation of the organisational structure we were not able to meet our target as planned, there are on-going processes to ensure placement of all SMS members on the approved organisational structure.

Administration 2012/13 performance progress:

Administration: Strategic Objectives

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1. Provide effective internal financial management to CoGTA by maintaining sound internal controls and implementing the annual post audit action plan (PAAP) by 31 March 2014;

2. Provide human resource services that respond to the needs of the department by implementing the annual Human Resource Plan by 31 March 2014

3. Strengthen ICT and Knowledge Management capacity to support the key objectives of the department by 31 March 2014

4. Conduct research to inform policies aimed at strengthening the system of Provincial and Local Government by 31 March 2014

5. Strengthen Monitoring and evaluation across the three spheres by the end of 2013/14

6. Improve the strategic management and governance processes through the implementation of the annual audit plan, the annual risk management plan and the annual fraud prevention plan by end of 2013/14

In order to achieve the strategic objectives identified above, the Department will implement the following projects:

Administration: Priorities for 2013/141. DCoG will develop the Post Audit Action Plan (PAAP) 2013/14 by the end of September 2013 and

implement for purposes of improving audit outcome;2. The Department will make all transfer payments for the period 2013/14 as per the payment schedule

and ensure that all deadlines are met for purposes of fast-tracking implementation at a local level;3. As part of initiatives to improve internal capacity and capability within the department, we planning

to review, and submit a report on the Human Resources Plan to the Department of Public Service and Administration (DPSA) as regulated. The approved plan will be immediately rolled out within the department;

4. Support will be provided to Municipalities and Provinces to develop section 46 and 47 reports. These reports will be used to develop the 2011/12 Section 48 report on performance of local government as required in the Municipal Systems Act;

5. DCoG will support four identified provinces to develop and implement Performance Management System (PMS) and ensure that core set of local performance indicators are revised for approval;

6. Struggling municipalities will be supported with communication tools by rollout the Communication Strategy. This will support the initiative of promoting and communicating government programmes to communities. The departmental programmes will also be promoted through media engagements;

7. The Department will develop a Donor Coordination Strategy and establish new international partnerships for purposes of improving Regional and international relations; and

8. The Annual Fraud Plan and Annual Risk Management Plan will be revised and implemented in an effort to improve the departmental governance.

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Programme 2: Policy Research and Knowledge Management

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The programme is likely to achieve all four planned targets, these are:

• The implementation of the knowledge management initiatives • Policy research commissioned by other programmes in areas of Municipal Financial

Management and Audit outcomes of municipalities. • Research reports on service delivery protests are also been produced on a monthly

basis;• The project on the development of robust and reliable ICT infrastructure at local

government level will be achieved by the end of the financial year despite the project Manager only being appointed during the middle of the 2nd quarter (October 2012), consultations were held with the National Treasury, Auditor-General, SALGA, Western Cape, Eastern Cape and Mpumalanga provinces for purposes of developing a concept document on the CoGTA ICT role in municipalities and the concept document will be completed by the end of the 2012/2013 financial year.

Policy Research and Knowledge Management 2012/13 performance progress

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Policy, Research and Knowledge Management: Strategic Objectives

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1. Conduct research to inform policies aimed at strengthening the system of Provincial and Local Government by 31 March 2014

2. Facilitate the implementation of policy and legislation to strengthen cooperative governance across the three spheres by end 2013/1

In order to achieve the strategic objectives identified above the department will implement the following projects:

Policy, Research and Knowledge Management: Priorities for 2013/14

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1. To improve work turn-around time, DCoG planned to ensure 95% availability of key systems like Bas, Persal, Logis, internet, email;

2. We will also implement two identified Knowledge Management Strategy (KMS) intervention focusing on business process automation, this will ensure introduction of proper processes and systems that support implementation of projects;

3. Develop 4 research papers covering governance, service delivery and financial management by 31 March 2014, the papers will form the basis for future policy initiatives that are aimed at improving these identified focus areas; and

4. As a national policy development department, we have established the DCoG Policy Forum which is aimed at discussing new policy matters, government-wide initiatives, directives as well as priorities in order to position the department to act and respond accordingly to these initiatives.

Programme 3: Governance and Intergovernmental Relations

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1. The draft framework for the assignment of powers and functions across government was revised. This project will be achieved by the end of the financial year;

2. Through initiatives aimed at improving the functionality of district IGR structures DCoG managed to revise the assessment report on the functionality of district IGR structures, implementation will commence in the next financial year;

3. The Monitoring, Support, and Interventions (MSI) Bill was revised with the aim of contributing towards strengthening oversight roles and the management of interventions between the three spheres; and

4. Out of six targeted provinces, five provinces (Western Cape, Eastern Cape, Mpumalanga, Free State and Kwazulu-Natal) were supported to develop provincial frameworks on out of pocket expenses for ward committees. 32 municipalities in Mpumalanga and Kwazulu-Natal provinces are currently implementing based on the framework. The remaining 1 province will be supported in the next financial year although the project is not included in the 3013/14 APP.

Governance and Intergovernmental Relations 2012/13 performance progress:

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• To ensure that ward committee members are capacitated ,we rolled out the LGSETA accredited training in all the four targeted provinces;

• The priority project on facilitating the development of ward level operational plans will be finalised by the end of the financial year since we managed to support the development of 460 of the targeted 500 ward operational plans which are currently being implemented;

• Hundred and eighteen municipalities in 7 provinces were supported to implement credit control and debt collection policy guidelines ( Eastern Cape: 17) Free State: 6) KwaZulu Natal: 39) (Limpopo:8) (Mpumalanga:19 ) (Northern Cape:17) (Western Cape:12);

• A draft report on the assessment of municipal rating policies and compliance with regulations on ratios of the 24 municipalities is developed;

• The draft Municipal Property Rates Amendment Bill finalized and submitted to the Office of the Chief State Law Advisor;

• Ninety two municipalities across all provinces were supported to better manage spending on MIG;

• We facilitated the establishment of 250 of the 278 Municipal Public Accounts Committees and officials at these municipalities were trained on the functionality of the MPACs; and

• Partnerships were established with the Free State Provincial department , the Hawks and Special Investigating Unit for purposes of accelerating the fight against corruption.

Governance and Intergovernmental Relations 2012/13 performance progress cont..

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1. We only managed to conduct an evaluation in two of the three targeted provinces Eastern Cape and Western Cape on the functional ethics committees. The objective is to reduce incidence of corruption in municipalities, this project will continue in the next financial year;

2. An assessment report on corruption trends analysis and impact of interventions by DCoG will not be final by the end of the financial year due to limited capacity to implement the project

Governance and Intergovernmental Relations 2012/13 performance progress cont..

Governance and Intergovernmental Relations Strategic Objectives

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1. Strengthen the functionality of ward committees and enhance community participation;

2. Improve the audit outcomes of municipalities;3. Implement initiatives to improve financial management,

expenditure and revenue enhancement;4. Facilitate the implementation of policy and legislation to

strengthen cooperative governance across the three spheres by end 2013/14; and

5. Strengthen anti-corruption mechanisms

Governance and Intergovernmental Relations Priorities for 2013/14

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1. DCoG will conduct an assessment of Provincial IGR structures in order to devise appropriate interventions to improve functionality;

2. The proposed Intergovernmental, Monitoring, Support and Interventions (IMSI) Bill submitted to Parliament by March 2014;

3. Increase the development and implementation of ward level operational plans from 500 to 2000 wards by 31 March 2014;

4. Provide advice and support to 120 municipalities by way of workshops, training, project appraisals to improve on MIG expenditure by 31 March 2014;

5. Monitor , assess and report on implementation of credit control and debt collection policy and payment of government debt in 30 identified municipalities;

6. Monitor and assess compliance by 30 municipalities with the MPRA and provide guidance to non-complying municipalities by 31 March 2014;

7. 40 Ethics Committees will be established and officials trained in municipalities across identified provinces; and

8. In order to pin down on corruption a comprehensive reports on allegations of corruption investigated, will be developed to give insight in terms of the intervention that is needed.

Programme 4: National Disaster Management Centre

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1. In terms of strengthening accountability and reporting on disaster management across the spheres and sectors of government, we managed to develop a Draft Disaster Management Amendment Bill by end of the financial year;

2. The NDMC developed a National Disaster Management Education and Training Framework aimed at improving the system of Disaster Management through education and training;

3. NDMC finalised the discussion Paper on Fire Services and was published for public comments on 18 March 2013;

4. Draft Regulations on Disaster Response, Declaration and Classification were finalised and are being prepared for public comments; and

5. Flood risk and vulnerability profile was finalised. Flood risk was thereafter calculated on a national scale. A reprioritisation was completed in the last quarter due to resource, data and stakeholder engagement constraints.

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National Disaster Management Centre 2012/13 performance progress

National Disaster Management Centre Priorities for 2013/14

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1. The NDMC plans to develop and review the following legislation:– Draft White Paper on Fire Brigade Services Legislation submitted to the

Minister by 31 March 2014; and

– Disaster Management Amendment Bill submitted to the Cabinet for processing 31 March 2014.

2.Indicative risk and vulnerability profile for drought to be developed by 31 March 2014.

3.The Disaster Management M&E Framework will also be developed by 31 March 2014.

4.The Centre will also develop and implement a National DM public awareness annual plan aimed at building capacity in communities and other stakeholders.

Strategic Objective: Strengthen, coordinate and support effective integrated disaster management and fire services by the end of the MTEF period

Programme 5: Provincial and Municipal Government Support

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1. The performance of DCoG public entities which are South African Local Government Association (SALGA), South African Cities Network (SACN) and Municipal Demarcation Board (MDB) is being monitored, quarterly reports were produced in this regard. Draft Annual performance report of SALGA and MDB developed. Although GTZ withdrew funding much work has been done. Therefore there is a likelihood that the project will be achieved by the end of the financial year;

2. The department finalised an assessment report on the impact of fixed term contracts of municipal managers on municipal councils aimed at determining the impact of the five-year fixed term contract of municipal managers ;

3. The Recruitment and Retention Strategy Tools have been developed as planned; and

4. The target of supporting 70 municipalities to develop technical skills was achieved. MISA is dealing with technical skills while DCoG is focussing on scarce and critical skills.

Provincial and Municipal Government Support 2012/13 performance progress

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1. National Professionalization Framework aimed at professionalizing the local government sector has been developed and consultation was done with relevant stakeholders;

2. In our endeavour to improve development planning capacity of municipalities, we were able to facilitate provincial workshops in Western Cape, Northern Cape, North West and Free State;

3. 9 provincial IDP assessments were conducted and the Draft National IDP assessment report developed;

4. Intergovernmental Planning Frameworks and Provincial Planning guidelines developed,

5. Our efforts to improve spatial planning capability are on track. Geographic Information System training was conducted in district and local municipalities.

6. Regulations setting uniform norms and standard for senior managers have been developed and are out for public comment.

Provincial and Municipal Government Support2012/13 performance progress continued

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1. The Branch was unable to roll-out the 27 training programmes for councillor development as planned, because the service provider that was appointed to undertake this work for the Branch withdrew their services. However, building on the work of the erstwhile Municipal Leadership Development Programme (MLDP), and the 2011 councillor induction programme, the Branch has managed to extend some training and development programmes to councillors. This training and development programmes have also been complemented by exposing councillors to the capacitating interventions that are coordinated by the Branch, most notably the workshops that were held in all provinces on the amendments made to the Municipal Systems Act; and

2. The Rolling out of Section 105 and 106 of the Municipal Systems Act is 80% complete , due to delays in the appointment of the service provider. The draft report will be signed off by Senior Management in April and the final report presented to MINMEC in May of 2013.

Provincial and Municipal Government Support 2012/13 performance progress

Provincial and Municipal Government Support Strategic Objectives

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1. Differentiated approach to municipal planning;

2. Legislation on governance of DCoG entities reviewed;

3. Strengthen legislative frameworks to improve institutional and administrative capacity of municipalities and promote corporate governance for associated institutions;

4. To improve performance and professionalism of municipalities and enhance national and provincial oversight on implementation of local government legislations; and

5. Build effective, responsive and accountable local government

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1. Nine provinces monitored to support municipalities with filling of vacancies in terms of the Municipal Systems Act by 31 March 2014;

2. All identified municipalities will be supported to implement remedial action emanating from the Monitoring the MSA through the roll-out of guidelines;

3. Municipal Demarcation Amendment draft bill developed;

4. Discussion document on Organised Local Government will be developed;

5. Provincial Workshops will be facilitated in nine provinces and 23 districts to improve development planning capacity in municipalities outside metros and secondary by 31 March2014 on intergovernmental; The department has revived the initiative to support urban development programme, in this regard the Draft Integrated Urban Development Framework (IUDF) will be developed;

6. Provincial policy oversight Section 105 and 106 guidelines developed and for approval by MINMEC

Provincial and Municipal Government SupportPriorities for 2013/14

Provincial and Municipal Government SupportPriorities for 2013/14 continued

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7. Seventy municipalities will be supported with tools to develop and implement recruitment and retention strategies;

8. Develop and implement a strategy to promote local government as career of choice; and

9. Competence Assessment Model for senior managers will be developed together with a database of staff members dismissed for misconduct developed by 31 March 2014.

Programme 6: Infrastructure and Economic Development

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1. The Community work Programme (CWP) is well on track. DCoG managed to support 140 identified municipalities to implement CWP in at least 2 wards;

2. To date 139 778 of the planned 171 500 work opportunities have been created. We will provide the necessary support to ensure that the remaining 31 722 work opportunities are created by the end of the financial year;

3. Through initiative to promote economic development we were able to support the development of the Nkangala Business Development Forum, West Coast District Development Forums and the Sedibeng United Business Forum;

4. We were able to facilitate the signing of MoUs on business adopt a municipality . To date four MOUs have been signed between identified municipalities and SANTAM, ESKOM, Rand Water Foundation; and Mercedes Benz;

5. We also signed MoU with the Department of Trade and Industry (DTI) to support the development of cooperatives;

Infrastructure and Economic Development 2012/13 performance progress continued

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7. Number of district rural municipalities supported to improve on MIG non-financial performance monitoring and reporting;

8. The clean cities and towns program is well on track. Clean-up campaign and job creation was done in sites located in Mafikeng Local Municipality, Aganang Local municipality, Mbashe Local Municipality (Elliotdale and Willowvale towns),Nelson Mandela Metro, Greater Giyane Local Municipality ; Creation of park in Tokologo Local Municipality , Setsoto Local Municipality ,Nkonkobe Local Municipality and a greening project in Alice (Eastern Cape); and

8. Out of the target of 10 we managed to support 14 Districts (Xhariep, Lejweleputswa, Thabo Mofutsanyana, Fezile Dabi, Sedibeng, West Rand, Nkangala, Bojanala, Dr Kenneth Kaunda, West Coast, Cape Winelands, Overberg, Eden, Central Karoodistrict rural municipalities to improve on MIG non-financial performance monitoring and reporting. This project has therefore already been achieved by quarter 3

9. Out of the 10 districts to be supported for free basic services policies updating, six were already supported by quarter 3, and the target of 10 will be achieved.

10. The Department was able to support 10 identified district and local municipalities to implement the comprehensive infrastructure plans through MISA

Infrastructure and Economic Development 2012/13 performance progress continued cont…

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1. The initiative to improve reporting of basic services through the coordination of sectors and stakeholders is likely not to be achieved because of challenges with regard to data accuracy. engagements are continuing with STATSA, Department of Water Affairs, Department of Energy, Department of Human Settlement, Department Environmental Affairs through stakeholder working groups and forums for purposes of sorting out data challenges;

2. Only 86 of the 108 prioritized municipalities were supported to develop Integrated support plans (ISPs) in delivery and management of basic infrastructure because we assessed the remaining 22 municipalities later than planned. The project will be finalised in the next financial year.

Infrastructure and Economic Development 2012/13 performance progress continued

Infrastructure and Economic DevelopmentStrategic Objectives

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1. To ensure the provision and maintenance of 332 500 work opportunities by end FY 2015/16;

2. To increase access to basic services 3. To improve the delivery of free basic services to households by

supporting 50 municipalities in the roll-out of the national indigent policy for free basic services by March 2014;

4. To promote greater ownership of environmental health outcomes within municipalities by coordinating the rollout of clean communities programme in 8 sites annually by end FY 2015/16; and

5. Promote economic development within local government by supporting 25 municipalities to implement economic development programmes over the MTEF.

Infrastructure and Economic DevelopmentPriorities for 2013/14

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1. 171 500 of work opportunities provided;2. 48 municipalities implementing CWP in at least two wards ;3. 18 municipalities where Clean Communities Programme (CCP) is coordinated and

supported ;4. 4 private sector collaborative partnerships established and support plans

developed and implemented to promote economic development by 31 March 2014

5. National Framework for LED reviewed by March 2014 (base document for a new LED Strategy);

6. 50 Municipalities supported to improve on access to free basic services through indigent policies and credible indigent registers by 31 March 2014; and

7. New MIG policy developed to facilitate the improvement in delivery of basic service

In order to achieve the strategic objectives identified above the Department will implement the following priority projects:

Carry through projects 2012/13

Projects Reasons for removing project

Two critical Master System Plan interventions implemented Removed due to lack of capacity to focus on this area

Number of M&E Structures at provinces resuscitated andcapacitated

Preparatory work to create capacity to enable the interface through engagements with the NT, DPSA and Provincial departments of Local Government

Concept document on the ICT for municipalities Project restructured in 2013/14 APP and still continuing at project plan level

White Paper on Cooperative Governance processed through Executive structures

Refocused to be addressed through the amendment of the IGR framework Act

A legislative framework for ward committees and Community Participation

The review of the legislative framework for ward committees and community participation will form part of the broader Municipal Systems Act amendment process. The branch will contribute inputs to inform the broader review of the Municipal Systems Act

Percentage of municipalities with established and functional MPAC’s

MPACs are established and functionality thereof will be in the branch operational plan. No HR capacity to implement project and coordinate issues relating to clean audit.

Regulations developed in terms of the Disaster Management Act, 2002 (Act 57 of 2002)

The development and maintenance of the DM Regulations is an ongoing process that is dictated by the needs and requirements. The initial legs are also produced based on the new Amendment Bill that is to be tabled in Parliament in the current legislative programme.

Integrated National Disaster Risk Management Education and Training framework (NDRMET) developed and Implemented

The development and implementation of the NDRMET is an ongoing process that is dictated by needs and requirements. It is still included as part of the branch operational plan.

Number of municipalities supported to pilot the revised IDP framework

Relegated to Branch Level Project Plan. Annual operational project

Below are projects that are removed from the APP 2013/14 with reasons for removing them

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Projects Reasons for removing project

Number of provinces supported with IDP assessments

Relegated to Branch Level Project Plan. Annual operational project

National Intergovernmental Planning framework to improve sector participation in the IDP process

Project expanded to review policy and legislation on intergovernmental planning

Number of Business Development Forums supported in district municipalities

Replaced with private sector collaborative partnerships established and facilitated to roll-out support plans on economic development in district municipalities by 31 March 2014

Number of municipalities which have signed MoUs of business adopt a municipality

Re-assigned to MISA in order to profile it appropriately as an LGTAS municipal support initiative by the private sector. To date all support has been infrastructure related, not just LED related.

Number of strategic partnerships formed to support the development of cooperatives

Relegated to Branch Level Project Plan.

Reporting of basic services through the Coordination of sectors and stakeholders

Project will still be undertaken in the Chief Directorate as an annual publication

Number of district rural municipalities (including local municipalities) supported to improve on MIG non-financial performance monitoring and reporting

Project will still be undertaken in the Chief Directorate as an annual publication

Number of district and local municipalities supported in the implementationof comprehensive infrastructure plans

Project is being implemented through MISA

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Carry through projects 2012/13 continued

PART TWO-Budget Overview

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Overall 2013/14 MTEF ALLOCATION• 1st Stage: Allocation Letter (28 Nov 2012)Received Additional Funding : R5,627,258,000Mandatory Savings surrendered to NT: R3,521,876

• Conditions that the department should comply with:

Condition1: Monthly expenditure report and Quarterly Non-financial performance report on CWPCondition 2: submit a strategy demonstrating a reduction of 1 per cent on personnel per year and on a quarterly basis.Condition 3: Performance of operation clean auditCondition 4: Consolidation of provincial support function across the departmentCondition 5: Performance information and management of the CWP

• 2nd Stage: Submission of the 1st Draft (7 Dec 2012) The departments were able to submit their 1st draft on the due date. National Treasury responded on the 14th of December 2012.

• 3rd Stage: Submission of the 2nd Draft (9 Jan 2013) All comments raised were responded to and incorporated in the 2nd draft. The departments were able to submit their 2nd draft on the due date.

• 4rd Stage: Sign-off on the 2013 ENE submission (11 Feb 2013) The Final 2013 ENE Chapter Documents signed off

We received R2.1 billion additional over the

MTEFConditions

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Overall 2013/14 MTEF ALLOCATIONADDITIONAL FUNDS ALLOCATED TO BASELINE 2013/14 2014/15 2015/16

Improvement in conditions of service: Department of Cooperative Governance and Traditional Affairs 4 854 6 193 10 568

Infrastructure support: Municipal Infrastructure Support Agency 60 000 60 000 60 000

Department of Traditional Affairs: Good and services: Reprioritisation to Programme 7 3 000 2 000 2 000

Department of Traditional Affairs: Compensation of employees: Reprioritisation to Programme 7 2 000 2 000 2 000

Local Equitable share - 651 240 4 561 403

TOTAL 69 854 721 433 4 635 971ADJUSTMENTS TO BASELINE (SAVINGS) (321 990 ) (358 940 ) (377 436 )

•Department of Cooperative Governance: Goods and services: Reprioritisation (5 000 ) (4 000 ) (4 000 )

• Department of Cooperative Governance: Goods and services: Savings (5 462 ) (11 704 ) (18 356 )• Department of Traditional Affairs: Goods and services: Savings (727 ) (1 546 ) (2 430 )• Municipal Demarcation Board: Savings (426 ) (903 ) (1 416 )• South African Cities Network: Savings (58 ) (124 ) (194 )• South African Local Government Association: Savings (263 ) (549 ) (861 )• United Cities and Local Governments of Africa: Savings (54 ) (114 ) (179 )• Community Work Programme: Savings (310 000 ) (340 000 ) (350 000 )

ADJUSTMENTS TO CONDITIONAL GRANTS (SAVINGS) (299 232 ) (1 096 959 ) (1 067 319 )• Conditional Grants to Local Government (297 332 ) (1 092 931 ) (1 060 999 ) Municipal Disaster Grant: Savings (3 500 ) (7 420 ) (11 642 ) Municipal Systems Improvement Grant: Savings (2 427 ) (5 146 ) (8 074 ) Municipal Infrastructure Grant: Reprioritisation (291 405 ) (1 258 976 ) (1 272 583 ) Municipal Infrastructure Grant: Additional allocation - 178 611 231 300

• Conditional Grants to Provincial Government (1 900 ) (4 028 ) (6 320 ) Provincial Disaster Grant (1 900 ) (4 028 ) (6 320 )

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ALLOCATION PER PROGRAMME

Audited Outcome

09/10Audited Outcome

10/11Audited Outcome

12/12Adjusted Appropriation

12/13Revised Allocation



15/16

Rand thousand Rand thousand Rand thousand Rand thousand Rand thousand Rand thousand Rand thousandProgrammes

Administration 179 330 169 532 206 081 197 505 218 975 227 128 233 485

Policy, Research and Knowledge Management 44 949 35 433 37 935 49 293 49 492 52 331 56 806

Governance and Intergovernmental Relations 23 936 814 30 663 678 33 270 754 38 111 889 40 706 726 44 620 802 50 343 264

Disaster Response Management 122 981 283 092 80 658 555 392 585 056 613 506 635 308

Provincial and Municipal Government Systems 209 569 244 499 252 411 285 178 272 067 286 208 296 757

Infrastructure and Economic Development 9 111 748 10 363 377 12 285 148 15 553 429 16 315 219 17 375 579 18 266 434Traditional Affairs 56 243 61 817 88 577 102 492 105 156 111 864 116 852Total for Programmes 33 661 634 41 821 428 46 221 564 54 855 178 58 252 691 63 287 418 69 948 906Direct charge against the National Revenue Fund - - - - - - -

Total 33 661 634 41 821 428 46 221 564 54 855 178 58 252 691 63 287 418 69 948 906

Change to 2012 Budget Estimate (139 588) (551 368 ) (534 466 ) 3 191 216

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ALLOCATION PER ECONOMIC CLASSIFICATION

Economic classification

Audited Outcome 09/10



Adjusted Appropriation 12/13

Revised Allocation 13/14



Current payments 443 329 588 473 661 061 2 104 432 2 419 871 3 169 060 3 314 887

Compensation of employees 165 709 174 301 234 987 290 396 298 786 316 320 338 305

Salaries and wages 154 259 157 282 212 003 255 178 267 780 284 390 304 356

Social contributions 11 450 17 019 22 984 35 218 31 006 31 930 33 949

Goods and services 277 620 414 172 426 074 1 814 036 2 121 085 2 852 740 2 976 582

Transfers and subsidies 33 209 970 41 215 091 45 551 033 52 737 347 55 820 625 60 104 956 66 620 004

Payments for capital assets 8 070 17 592 8 277 13 311 12 195 13 402 14 015

Payments for financial assets 265 272 1 193 88 - - -

Total economic classification 33 661 634 41 821 428 46 221 564 54 855 178 58 252 691 63 287 418 69 948 906

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TRANSFERS AND SUBSIDIES IN THE NEW BASELINE

2013/14 2014/15 2015/162013 MTEF Allocation 58 252 691 63 287 418 69 948 906 MIG 14 352 060 14 683 835 15 448 070 MSIG 240 307 252 152 261 060 Municipal Disaster Grant 534 600 560 952 580 768 Equitable Share 40 581 787 44 490 145 50 207 698 CWP 1 675 040 2 389 840 2 505 412 MISA 262 040 274 162 284 013 SALGA 25 999 26 904 27 855 MDB 42 152 44 230 45 793 CRL Commission 32 503 34 973 36 582 SACN 5 786 6 071 6 286 UCLGA 5 331 5 594 5 792 Commission for Disputes and Claims 12 003 12 723 13 308 NHTL 16 650 18 627 19 668 Traditional Affairs 44 000 45 541 47 294Total 57 800 258 62 875 749 69 489 600Operational Budget 452 433 411 669 459 306

Thank you!

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