Www.salga.org.za 1 APP 2015/16 Presentation to the Portfolio Committee on COGTA 10 March 2015.
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Transcript of Www.salga.org.za 1 APP 2015/16 Presentation to the Portfolio Committee on COGTA 10 March 2015.
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APP 2015/16
Presentation to the Portfolio Committee on COGTA
10 March 2015
www.salga.org.za
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BACKGROUND TO SALGA’S BACKGROUND TO SALGA’S 2015/16 APP2015/16 APP
www.salga.org.za
Employer Body
Act as an employer body representing all
municipal members and, by agreement,
associate members.
The Voice of Local GovernmentThe Voice of Local Government
Support and advise our
members on a range of issues to
assist effective execution of
their mandate.
Build the capacity of the
municipality as an institution as well as leadership and technical capacity
of both Councillors and
Officials.
Lobby, advocate,
protect and represent the
interest of local government at
relevant structures and
platforms.
Transform local
government to enable it to
fulfil its developmental mandate.
SALGA Mandate
Lobby, Advocate & Represent
Support &Advice
Capacity Building
Build the profile and image of
local government within South
Africa as well as outside the
country.
StrategicProfiling
Serve as the main hub of local
government knowledge and intelligence and to facilitate peer learning within
the sector
Knowledge & Information Sharing
The Voice of Local GovernmentThe Voice of Local Government
SALGA MANDATESALGA MANDATE
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Challenges requiring urgent redress
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Challenges that continue to bedevil LG progress
5 Source: CoGTA
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SALGA APP SALGA APP (2015/16)(2015/16)
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SALGA National
SALGA Provinces
7 STRATEGIC GOALS
1)Accessible, equitable, sustainable services
2)Safe and healthy environment and communities
3)Coherent local planning & economic development
4)Effective, responsive and accountable local governance for communities
5)Human capital development in LG
6)Financially and organizationally capacitated municipalities
7)Effective and efficient SALGA administration.
4 APEX PRIORITIES:
1.Review of legislative & policy framework impacting negatively on LG.2.Review of LG fiscal & financial management framework.3.Improved municipal capacity.4.Reposition SALGA as a centre for LG excellence, knowledge & intelligence
Differentiated Approach to Managing / Supporting Local Government
…
…
…
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SALGA MANDATES1.Representation 2.Employer Body3.Capacity Building4.Support and Advisory Role 5.Profiling Role 6.LG Knowledge Hub
SALGA MANDATES1.Representation 2.Employer Body3.Capacity Building4.Support and Advisory Role 5.Profiling Role 6.LG Knowledge Hub
SALGA 5 YEAR STRATEGIC PLAN
2012-2017
SALGA 5 YEAR STRATEGIC PLAN
2012-2017
INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. B2B Approach5. Electoral Mandate (2011)
INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. B2B Approach5. Electoral Mandate (2011)
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2015/162015/16
SALGA STRATEGIC PLAN 2012-2017
Year 12012/13
Year 22013/14
Year 32014/15
Year 42015/16
Year 52016/17
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ANNUAL PERFORMANCE
PLAN2015/16
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The SALGA APP (2015/16) seeks to bring greater focus to SALGA’s programme of action, by having fewer and more impactful and outcomes based indicators, as well as institutionalising the multi-disciplinary planning and delivery approach within SALGA and its partners
Introduction and Background to APP 2015/16approach
5 KPIs
PER GOAL
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SALGA PERFORMANCE PLANNING AND REPORTING FRAMEWORK
• The SALGA APP 2015/16 which represents year four (4) of the SALGA Strategic Plan: 2012-17 now consists of:– 4 Apex Priorities
– 7 Strategic Goals,
– 36 Targets/Deliverables
• Organisational performance reporting shall be based on the 36 targets and similarly for auditing by AG
• There is a direct correlation between the SALGA APP and the Back to Basic Approach
• Current planning up to 2017/18 financial year although new strategy will be developed in 2016/17 post LG elections
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Continuous efforts to streamline the plan towards greater performance and
reporting efficiencies
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SALGA’S APEX PRIORITIES SALGA’S APEX PRIORITIES FOR FOR
2015/16 2015/16
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APEX 1: REVIEW OF THE LEGISLATIVE AND POLICY FRAMEWORK IMPACTING
NEGATIVELY ON LG
As highlighted in the Back to Basics Approach, the creation of an enabling environment for local government is a critical factor if we are to realise improved service delivery. It speaks to issues of good
and transparent governance, spatial transformation, decentralisation with coordinated and coherent support from all stakeholders.
Overview of Challenges
•The legislative environment remains highly problematic. It is often characterised by over-regulation, under-regulation or policies and legislation that are misguided. It is particularly problematic where it relates to powers and functions, reporting, finance and fiscal management.
Overview of Interventions
•To decisively address the declining confidence in Local Government. The outcome here is to stabilise the sector & achieve institutional consolidation reflected in a strong anti-corruption, accountability and consequence management regime in the sector
•SALGA’s influence in legislative and policy review processes is a key priority. The outcome is to reduce over-regulation, inappropriate regulation, unblock bottlenecks in the current legislative dispensation
•The policy and legislative regime must consolidate decentralisation, strengthen LG and place it at the forefront of leading spatial transformation and economic development at a macro and local level in South Africa
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Expected Outcome By end 2015/16:
•Policy and Legislation that was targeted, reviewed and influenced by SALGA was supported by all stakeholders and passed by Cabinet and Parliament respectively
Expected Impact By end of 2015/16
•The functioning of municipalities was improved by revised or new policy and legislative frameworks that were influenced by SALGA and has resulted in spatial transformation, improved and sustained service delivery and accountability by municipalities and key role players in the municipal space
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APEX 1: REVIEW OF THE LEGISLATIVE AND POLICY FRAMEWORK IMPACTING
NEGATIVELY ON LG
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Apex 2 resonates with the underlying ethos of the Back to Basics approach – ensuring that the internal and external financial environment/fiscal frameworks are promoting sustainable and informed service
delivery processes. Effective growth and development should be enabled in both rural and urban settings.
Overview of Challenges
•The fiscal regime compromises most municipalities to deliver on their mandates. Challenges here include municipalities that have limited economic bases and by extension limited rates bases. This is exacerbated in most rural municipalities and declining urban economies having huge indigence’s and by extension huge populations that must receive basic services from municipalities while not being able to pay for them. Big urban economies are often recipients of large scale migration (urbanisation) which puts pressure on their ability to deliver on everyone’s expectations. Fiscal and budget planning processes are currently unable to address these challenges. This is made worse in some municipalities that do not have the necessary capacity and systems to administer even the finance that they are currently able to solicit.
•Fragmented infrastructure grant system (plethora of sector grants)
Overview of Interventions
•Strengthen relations with national & provincial spheres of government in building an enabling fiscal framework for developmental LG and ensure sound financial management within the sector, improve inter-governmental fiscal integration, equity and achieve financial sustainability of LG
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APEX 2: SOUND FINANCIAL MANAGEMENT AND
FISCAL FRAMEWORK FOR LG
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Expected Outcome By end 2015/16:
•Through SALGA’s influence, municipal boundary redetermination, municipal funding, unfunded mandates, cost of compliance with new regulations (SCOA, SPLUMA) and the need for regulatory impact assessment framework was recognised by CoGTA and NT, accepted by Cabinet and corresponding equitable budgets appropriated by Parliament
•No municipality remains in the red zone regarding audit outcomes
Expected Impact By end of 2015/16
•There was equitable allocation to LG in the national division of revenue which empowered municipalities to fulfil their constitutional mandates resulting in improved delivery of municipal services in the country
•Accountability and public confidence in municipalities use of public resources is restored through better audit outcomes 15
APEX 2: SOUND FINANCIAL MANAGEMENT AND
FISCAL FRAMEWORK FOR LG
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Apex 3 is the driving force behind the Back to Basics approach, as it is apparent that the sector can only flourish when both the management and institutional practices are of sufficient standards to
deliver much needed services in a sustainable and transparent manner. There is movement towards the provision of long term capacity building processes with active and ongoing support to ensure
transfer of learning into the institutional system as a whole.
Overview of Challenges
•Capacity in municipalities has remained a stubborn challenge despite huge efforts and funds that have been dedicated to it. On the one hand municipalities are poorly structured and supported while on the other hand the human resources are often ill-equipped to lead or to implement policies. Skills development programmes have been unable to build the critical mass of skilled councillors or Local Government professionals. The high turnover of staff has also made a difficult situation even worse. Rural municipalities find themselves in the most vulnerable positions as they struggle to attract even the limited pool of skilled human resources.
Overview of Interventions
•Build strategic capability of municipalities to fulfil their mandates in delivering basic services, facilitating inclusive growing local economies that create vibrant livelihoods for residents to live, work and play governed by sustainable, transparent and accountable municipal authorities
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APEX 3: IMPROVE MUNICIPAL CAPACITY
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Expected Outcome By the end of 2015/16:
•The capacity of municipalities to effectively and efficiently lead, plan, manage themselves and their resources and account to their residents was significantly enhanced compared to 2014/15 baseline and confirmed by good audit outcomes and service delivery.
Expected Impact By the end of 2015/16
•Local communities enjoyed visibly improved delivery of basic services, qualitative growth of local economies and employment was recorded and improvements in the quality of life of local residents was confirmed through objective evaluations.
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APEX 3: IMPROVE MUNICIPAL CAPACITY
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Underlying the Back to Basics Approach is the need to tackle problem areas before they have escalated to the point that communities take action into their own hands and resort to protest and violence. Information and knowledge are fundamental ingredients in proactive
redress of challenges. Accurate and accessible data management is key to informed planning processes, and enables prioritisation of processes and concomitant financial
outlays.
Overview of Challenges
•A centralised and integrated Local Government Knowledge and Intelligence Resource remains a challenge and therefore makes it difficult for Local Government authorities to access information in a timely manner in order to make informed and reliable decisions.
Overview
•Reposition SALGA as a centre of excellence, knowledge, intelligence and innovation to heighten its influence in the IGR space, improved support and advice to municipalities by building high performance strategic capability, brand identity for SALGA and the sector, improved thought leadership to drive the BIG IDEAS agenda in the sector and internal change management to facilitate a shift towards outcome and impact orientation.
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APEX 4: REPOSITION SALGA AS A CENTRE FOR LG
EXCELLENCE, KNOWLEDGE AND INTELLIGENCE
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Expected Outcome By the end of 2015/16:
•SALGA had repositioned itself as a high performing organisation that drove thought leadership, provided a platform for sector specific governance and leadership discourse and established functional knowledge and business intelligence systems and sharing of best practice that improved its mandate as an effective Voice of Local Government.
Expected Impact By the end of 2015/16
•SALGA had become a reliable, self-sufficient and effective centre of excellence and source of sector intelligence, governance and leadership that improved the ability of local government to fulfil its mandate.
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APEX 4: REPOSITION SALGA AS A CENTRE FOR LG
EXCELLENCE, KNOWLEDGE AND INTELLIGENCE
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DELIVERABLES PER DELIVERABLES PER STRATEGIC GOAL STRATEGIC GOAL
2015/16 2015/16
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GOAL 1:LOCAL GOVERNMENT DELIVERING EQUITABLE AND SUSTAINABLE SERVICES
Nr Link to B2B Outcomes 2015-16
1 Delivering Basic Services
Electricity reticulation is in accordance with the Constitutional and LG legislative framework
2 Delivering Basic Services
Service authorities fulfilling their authority functions for selected municipal services
3 Delivering Basic Services
Improved access to Infrastructure funding
4 Delivering Basic Services
Improved co-ordination and access to service delivery support for municipalities
5 Delivering Basic Services
The provision of municipal services becomes more sustainable and resilient
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GOAL 2:SAFE AND HEALTHY ENVIRONMENT AND COMMUNITIES
Nr Link to B2B Outcomes 2015-16
6 Delivering Basic Services
Municipal environment becomes safer, cleaner and more sustainable: Climate change mainstreamed
7 Delivering Basic Services
Municipal environment becomes safer, cleaner and more sustainable: SALGA support strategy on environment implemented
8 Delivering Basic Services
The role of women in LG is enhanced and gender issues are mainstreamed in the sector
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GOAL 3:PLANNING AND SOCIO-ECONOMIC DEVELOPMENT AT LOCAL GOVERNMENT LEVEL
Nr Link to B2B Outcome 2015-169 Delivering Basic
ServicesImproved ability of municipalities to shape and manage integrated development in their spaces: implementation of SPLUMA
10 Delivering Basic Services
Improved ability of municipalities to shape and manage integrated development in their spaces: LG roles in Sport and Recreation, Libraries and Disaster Management
11 Delivering Basic Services
Improved ability of municipalities to shape and manage integrated development in their spaces: All development planning legislation to be consistent with SPLUMA
12 Delivering Basic Services
Improved ability of municipalities to shape and manage integrated development in their spaces: Development of a devolution strategy for LG
13 Delivering Basic Services
Small towns are revitalised to effect greater socio economic development
14 Building Capabilities
The capabilities of municipalities and their development agencies to facilitate economic development is improved: capacity boiling for LED and planning practitioners to be agents for change
15 Building Capabilities
The capabilities of municipalities and their development agencies to facilitate economic development is improved: municipalities supported to integrate climate change, vulnerable groups and poverty eradication in their programmes
www.salga.org.zaGOAL 4:
EFFECTIVE, RESPONSIVE AND ACCOUNTABLE LOCAL GOVERNANCE TO COMMUNITIESNr Link to B2B Outcome 2015-1616 Putting people first and
engaging with communities
Good governance
Policy and regulatory framework for local government is developmentally orientated and less onerous: Structured engagement with National and Provincial Legislatures and Executive
17 Putting people first and engaging with communities
Good governance
Policy and regulatory framework for local government is developmentally orientated and less onerous: Regulatory impact assessment tool developed and lobbied for implementation
18 Putting people first and engaging with communities
Good governance
A decent, fair and equitable councillor and senior management remuneration and support framework
19 Putting people first and engaging with communities
Good governance
Strengthen Public Participation approaches and processes in municipalities
20 Putting people first and engaging with communities
Good governance
Oversight and Accountability in LG is enhanced through effective policies, systems, structures and implementation (including anti-corruption measures)
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GOAL 5:HUMAN CAPITAL DEVELOPMENT IN LOCAL GOVERNMENT
Nr Link to B2B Outcome 2015-16
21 Building Capabilities
A multi gains approach to collective bargaining enhanced resulting in improved Labour Relations: Lobby and represent the interest of the employer
22 Building Capabilities
A multi gains approach to collective bargaining enhanced resulting in improved Labour Relations: facilitate, advocate and advice municipalities on labour relations
23 Building Capabilities
Professional human resources management & development in LG
24 Building Capabilities
Leadership and technical capacity of municipalities is enhanced to lead and manage resilient and stable municipal institutions: Phase 2of the SALGA Centre for Leadership and Governance implemented
25 Building Capabilities
Leadership and technical capacity of municipalities is enhanced to lead and manage resilient and stable municipal institutions Facilitate the implementation of training and leadership development programmes for councillors and officials ( portfolio based)
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GOAL 6:FINANCIALLY AND ORGANISATIONALLY CAPACITATED MUNICIPALITIES
Nr Link to B2B Outcome 2015-16
26 Sound Financial Management
Local government fiscal framework is more equitable: equitable fiscal dispensation for LG
27 Sound Financial Management
Local government fiscal framework is more equitable: effective and sufficiently funded LG w.r.t. Sport and Recreation, Libraries and Disaster Management
28 Sound Financial Management
Financial and fiscal reform: Support municipalities in the implementation
29 Sound Financial Management
Fiscal instruments adequately reflect life cycle cost of infrastructure services
30 Sound Financial Management
Municipalities improve revenue management, credit control and outstanding debt
31 Sound Financial Management
Municipalities with adverse and disclaimed audit opinions is eradicated
www.salga.org.zaGOAL 7:
EFFECTIVE AND EFFICIENT ADMINISTRATION
Nr Outcome 2015-16
32 SALGA is the hub of local government data, knowledge and intelligence to improve local government functioning
33 Long term sustainability and relevance of SALGA is assured
34 The image and credibility of local government is strengthened
35 SALGA is an efficient, effective and sustainable organisation
36 SALGA is globally acknowledged as a leading local government association
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SALGA FLAGSHIP SALGA FLAGSHIP PROJECTS FOR 2015/16PROJECTS FOR 2015/16
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2015/16 FLAGSHIP PROJECTS
1. Development of the model for decentralisation for LG
2. Research into the state of by-laws in municipalities in order to determine how it facilitate developmental LG or not
3. Implementation of the Municipal Audit Support Programme
4. Cost of Free Basic Services Study
5. Service Authority Role for Infrastructure Services
6. Response Referral Results
7. Implementation of the SALGA Centre for Leadership Academy
8. Implementation of the Small Town Regeneration
9. Municipal Barometer Rollout29
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SALGA INTERVENTIONS IN SALGA INTERVENTIONS IN SUPPORT OF SUPPORT OF
““BACK-TO-BASICS”BACK-TO-BASICS”
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SALGA National
SALGA Provinces
7 SALGA GOALS1)Accessible, equitable, sustainable services
2)Safe and healthy environment and communities
3)Coherent local planning & economic development
4)Effective, responsive and accountable local governance for communities
5)Human capital development in LG
6)Financially and organizationally capacitated municipalities
7)Effective and efficient SALGA administration.
MINISTRY FOCUS:Back to Basics:
Taking LG Forward
1.Putting people first and engaging with communities
2.Delivering basic services
3.Good governance
4.Sound financial management
5.Building capabilities
APEX PRIORITIES1.Review of the legislative and policy framework2.Sound financial management and fiscal framework for LG3.Improve municipal capacity.4.Reposition SALGA as a centre for LG excellence, knowledge & intelligence
.
…
…
…
…
SALGA MANDATES1.Representation 2.Employer Body3.Capacity Building4.Support and Advisory Role 5.Profiling Role 6.LG Knowledge Hub
SALGA MANDATES1.Representation 2.Employer Body3.Capacity Building4.Support and Advisory Role 5.Profiling Role 6.LG Knowledge Hub
SALGA 5 YEAR STRATEGIC PLAN
2012-2017
SALGA 5 YEAR STRATEGIC PLAN
2012-2017
INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. LGTAS5. Electoral Mandate (2011)
INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. LGTAS5. Electoral Mandate (2011)
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SALGA’s support and advice to municipalities for the next 5years i.t.o. Back to Basics Approach
Basic services: creating decent living conditions
•Will develop and establish baselines for municipalities to ensure that they fulfil their role as service authorities w.r.t water, sanitation, electricity and then supported to fulfil the functions
•Develop and implement a strategy for service delivery support to municipalities
•Facilitate knowledge sharing on alternative energy, energy efficiency and greener service delivery mechanisms
•Assist municipalities to implement the SALGA DEA strategy on environment and support them to integrate issues of climate change and vulnerable groups
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SALGA’s support and advice to municipalities for the next 5years i.t.o. Back to Basics Approach
Good governance and public participation•Develop a regulatory impact assessment tool to determine the impact of policy and legislative amendments on municipalities•Promote good practices and knowledge sharing among municipalities on innovative public participations approaches, through partnerships, such as with civil society•Municipalities to be assisted with improving oversight and accountability, in particular strengthening MPACs in their functionality•Municipalities to be assisted to monitor the implementation of anti-corruption measures•Facilitating ethics training in municipalities•On-going governance hands-on support and legal advice
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SALGA’s support and advice to municipalities for the next 5years i.t.o. Back to Basics Approach
Institutional capacity
•Implement capacity development programme for LED and Planning Practitioners
•Advise municipalities on labour relations processes and policies, including dispute management, conciliation , arbitration and litigation
•Prioritised areas of the Professionalization framework implemented in selected municipalities
•Leadership development and minoring through the SALGA Centre for Leadership and Governance
•Portfolio based training and leadership development for councillors and officials
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SALGA’s support and advice to municipalities for the next 5years
i.t.o. Back to Basics Approach
Financial Management
•Support municipalities to implement financial reforms such as SCOA
•Assist municipalities to define the costs for water, electricity, waste management and transport services
•Develop a model on billing and alternative revenue sources for municipalities and assist them to implement it
•Further implementation of the Municipal Audit Support Programme
•Finding a resolution to the issue of unfunded and underfunded mandates
•Costing of re-demarcations and the securing of transitional funding support for the affected municipalities
•Inputs into the Budget Forum on the consolidation of the infrastructure grants and the review of the equitable share formula35
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BUDGET BUDGET 2015/162015/16
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BackgroundBackground
Legislative BackgroundLegislative Background
SALGA as a schedule 3A public entity in terms of the Public Finance Management Act (PFMA) is required to prepare its “Annual Budget” and “Corporate Plan”. The Annual Budget which is an annexure to the organizational Corporate Plan shall include a projection of revenue, expenditure and borrowings for that financial year in the prescribed format (section 52(a) of the PFMA).
The Annual Plan shall constitute a basis for the evaluation of the organizational financial
performance as envisaged by the PFMA Treasury Regulation no. 29.3. The financial Key Performance Indicators (KPI’s) derived from the annual budget shall facilitate an effective performance monitoring, evaluation and corrective action.
The PFMA Treasury Regulation 29.1.1(g) stipulates that an annual budget must include: projections of revenue, expenditure and borrowings;
asset and liability management; cash flow projections; capital expenditure programmes; and dividend policies (if applicable).
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Methodology to develop the Organisational Methodology to develop the Organisational BudgetBudget
1st draft Budget for 2015/16 MTEF28 July 2014
2nd draft Budget for 2015/16 MTEF3 October 2014
EMT Lekgotla14-15 August 2014
Budget Panel12 November 2014
NEC meetingNovember 2014 - January 2015
Consultation with PEC’sOctober 2014 to January 2015
Prepare and submit Estimates of National Expenditure (November
2014 to January 2015)
Receive allocation letter from Executive Authority
(October 2014)
Submit indicative Budget to Executive Authority (At least six months before start of financial year)
Provincial Members AssemblySeptember - October 2015
The Budget Process
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Budgeting ParametersBudgeting Parameters
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R thousand Medium-term estimate
Budget Parameters 2015/16 2016/17 2017/18 Administrative Costs Growth Rate – Projected Consumer Price Index (CPI) 5.6% 5.5% 5% Employee Costs Growth Rate - Consumer Price Index (CPI plus 100 basis points) 6.6% 6.5% 6%
Operating Expenditure R463 544 R481 630 R508 872
Gross Membership Levies R438 878 R466 921 R494 584
Early Settlement Discount (R14 483) (R15 408) (R16 321)
Net Membership Levies R424 395 R451 513 R478 263
Government Grant – Executive Authority R 9 255 R Nil R Nil
Membership Levy Formula (proposed) Metropolitan Municipalities Flat rate plus CPI
and 1 percentage point
Flat rate plus CPI and 1 percentage
point – Using 2015/16 as Base
Year
Flat rate plus CPI and 1 percentage
point – Using 2016/17 as Base
Year
Local and District Municipalities 1% of annual salary budget with
a minimum of R500 000
NB: National Treasury (NT) has reduced the Grant for 2015/16 and completely taken away the allocation for 2016/17. It must be noted that we have
budgeted without the grant allocation from the budget for 2017/18 although still part of NT allocation.
Discounts for the MTEF to be taken up by members are projected as follows:1)5% for April - 30% of members;
2)3.5% for May - 30% of members;
3)2.5% for June - 30% of members;
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Budgeting ParametersBudgeting Parameters
Growth rate
• The projected CPI for 2015/16 is estimated at 5.6%; for employee related costs the escalation is CPI + 1 percentage point i.e. 6.6%.
• CPI for the 2016/17 and 2017/18 periods is estimated at 5.5% and 5% respectively. The principle of CPI + 1 percentage point has been applied for employee related costs.
Membership levies (assumptions at 90% collections)
The membership levies are derived from the following formula:
Metros
• A flat rate of R 11 000 000 (being R 11 000 000 X 6.6% and rounded downwards) for the 2014/15 financial year; as it is subject to an annual inflationary increase (CPI).
Districts & Locals (New Rate)
• 1% of the annual salary budget, with a minimum of R500 000.
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Proposed new formula from 2016/17Districts and Local Municipality membership levy increases will be calculated
CPI+1 percentage point using 2015/16 as the base year.
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REVENUE MIX FOR 2015/16REVENUE MIX FOR 2015/16
Membership levies93%
Government grants
2%
Other grants0%
Capacity building income
2%
Sponsorships & Donations
1% Recoveries2%
Other income0%
Other gains / losses
0%
Donor income received
0%
REVENUE MIX FOR 2015/16
Membership levies Government grants Other grantsCapacity building income Sponsorships & Donations RecoveriesOther income Other gains / losses Donor income received
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EXPENDITURE DISTRIBUTION EXPENDITURE DISTRIBUTION FOR 2015/16FOR 2015/16
Administration costs20%
Depreciation & amortisation
1%
Professional and advisory services
1%
Contracted services
1%
Employee related costs22%
Programme costs55%
OPERATING EXPENDITURE DISTRIBUTION FOR 2015/16
Administration costs Depreciation & amortisationProfessional and advisory services Contracted servicesEmployee related costs Programme costs
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DRAFT REVENUE PROJECTIONSDRAFT REVENUE PROJECTIONS
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Category
GLAccount #
Account name
Budget - 2015/2016
Financial YearPROPOSED
Budget - 2016/2017
Financial YearPROPOSED
Budget - 2017/2018
Financial YearPROPOSED
Turnover410100 Membership levies 424 395 067 451 512 719 478 263 098 420100 Government grants 9 255 000 - - 430100 Other grants 30 000 - - 440100 Capacity building income 8 744 500 7 515 000 6 550 000 450100 Sponsorships & Donations 4 700 000 6 033 400 6 172 936 460100 Recoveries 8 700 000 8 550 000 8 250 000 470100 Other income 480 000 474 523 474 523 480100 Other gains / losses - - - 490100 Donor income received 380 000 400 000 400 000
Total Income 456 684 567 474 485 642 500 110 557
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DRAFT 2015/16 to 2017/18 MTREFDRAFT 2015/16 to 2017/18 MTREFStatement of Financial PerformanceStatement of Financial Performance
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SALGA BUDGET - 2015/16 to 2017/18 MTREFSTATEMENT OF FINANCIAL PERFORMANCE
Category
GLAccount #
Account name
Budget - 2015/2016
Financial YearPROPOSED
Budget - 2016/2017
Financial YearPROPOSED
Budget - 2017/2018
Financial YearPROPOSED
Turnover410100 Membership levies 424 395 067 451 512 719 478 263 098 420100 Government grants 9 255 000 - - 430100 Other grants 30 000 - - 440100 Capacity building income 8 744 500 7 515 000 6 550 000 450100 Sponsorships & Donations 4 700 000 6 033 400 6 172 936 460100 Recoveries 8 700 000 8 550 000 8 250 000 470100 Other income 480 000 474 523 474 523 480100 Other gains / losses - - - 490100 Donor income received 380 000 400 000 400 000
Total Income 456 684 567 474 485 642 500 110 557 Operating costs
610100 Accounting fees and other charges -89 760 -94 697 -99 432 610200 Administration costs -7 811 174 -8 240 789 -8 652 828 610400 Corporate Governance costs -4 910 126 -3 404 308 -3 574 523 610500 Audit Fees -3 273 600 -3 453 648 -3 626 330 610600 Communication costs -3 886 927 -4 100 708 -4 305 743 610700 Repairs and maintenance -422 400 -445 632 -467 914 610800 Motor Vehicle Expenses -200 746 -211 787 -222 376 610900 IT Costs -11 154 528 -11 768 027 -12 356 428 611000 Marketing & Advertising -8 150 736 -8 599 026 -9 028 978 611100 Training Costs -3 358 080 -3 542 774 -3 719 913 611200 Recruitments Costs -3 606 240 -3 804 583 -3 994 812 611300 Office Accommodation Costs -45 216 636 -47 703 551 -50 088 728 620100 Depreciation & amortisation -5 842 209 -5 923 827 -6 220 019 630100 Professional & Advisory Services -4 192 800 -4 423 404 -4 644 574 640100 Contracted services -3 439 120 -3 628 272 -3 809 685 650100 Employee Related Costs -104 742 388 -112 467 671 -123 089 883 651100 Re-imbursed Costs to Councillors -5 422 791 -5 721 044 -6 007 097 660100 Programme costs -247 823 628 -254 096 104 -264 962 360
Total Operating costs -463 543 889 -481 629 852 -508 871 624 Non-operating income and (expenditure) -8 036 039 -8 461 949 -8 910 432
Total Expenditure -455 507 850 -473 167 902 -499 961 192 Surplus or Deficit for the Year 1 176 717 1 317 739 149 365
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DRAFT 2015/16 BUDGETDRAFT 2015/16 BUDGETProgramme CostProgramme Cost
(Excl. related salary costs)(Excl. related salary costs)
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Consolidated summary per OBJECTIVE
Account Name ADMINGoal 7
CODGoal 2
EDPGoal 3
IGRGoal 4
MFNGoal 6
MIDGoal 5
MISGoal 1
TOTAL
660110 - Professional & Advisory Services - external 10 466 151 2 122 394 3 059 947 4 456 391 2 446 795 3 858 391 3 167 593 29 577 664 650160 - Subsistence & travel - Employees 747 442 350 335 375 280 535 495 407 752 557 975 427 263 3 401 543 651110 - Subsistence & travel - Councillors 1 003 304 565 081 318 401 1 823 242 332 561 794 282 585 921 5 422 791 661120 - Car hire 416 835 212 141 172 618 325 832 145 594 288 450 259 403 1 820 872 661130 - Shuttle service 252 336 146 738 93 115 244 315 61 303 178 295 96 049 1 072 152 661140 - Flight costs - local 1 757 089 890 524 783 770 3 860 126 1 224 633 982 410 968 902 10 467 454 661150 - Flight costs - international 1 070 054 27 684 23 070 39 219 20 763 39 219 29 991 1 250 000 661160 - Travel costs - other 67 120 12 700 20 583 68 991 44 075 68 991 43 758 326 217 661170 - Venue hire 1 407 958 785 992 874 993 1 255 838 729 494 1 038 488 685 491 6 778 253 661180 - Accommodation 1 907 159 1 017 148 776 790 1 722 358 1 081 941 1 265 543 842 827 8 613 765 661190 - Catering costs 796 791 488 017 315 014 627 079 294 154 525 524 429 518 3 476 096 661200 - Training costs 771 981 306 843 230 703 982 449 1 687 632 577 194 234 913 4 791 716 661210 - Equipment Hire 149 256 106 819 47 349 200 494 92 614 156 494 61 554 814 582
20 813 476 7 032 416 7 091 632 16 141 829 8 569 312 10 331 256 7 833 184 77 813 105
www.salga.org.za
DRAFT 2015/16 CAPEX BUDGETDRAFT 2015/16 CAPEX BUDGET
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APPENDIX D - CAPITAL EXPENDITURE SUMMARYAccount Name
2015/2016Financial Year
2016/2017 Financial Year
2017/2018 Financial Year
Capital Acquisitions per category110440 - Furniture & Fittings @ Cost 1 357 591 350 000.00 250 000.00 110460 - IT Equipment @ Cost 1 714 494 1 500 000.00 500 000.00 110480 - Office Equipment @ Cost 235 022 200 000.00 300 000.00 110500 - Motor Vehicles @ Cost 1 110 000 - - 120110 - Intangible Assetss @ Cost 4 063 085 2 500 000.00 2 500 000.00 120210 - Leasehold improvements @ Cost 940 000 1 000 000.00 1 000 000.00 120220 - Leased assets @ Cost - 250 000.00 250 000.00
7 420 191 5 800 000.00 4 800 000.00
www.salga.org.za
SALGA IS MATURINGSALGA IS MATURING
”Day by day nothing changes … but one day when you look back everything is different”
• Strong winds set deep roots … We have taken our time to establish our roots in order to anchor a mighty
tree
• Collective effort towards Building SALGA as a centre of Corporate Excellence are beginning to yield the necessary fruits.
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www.salga.org.za
Maturing Phase
2009/10 Unqualified
Audit Opinion
Sustainability Phase
2010/11 Unqualified
Audit Opinion
2011/12 Unqualified
Audit Opinion
2012/13 Unqualified Audit
Opinion with no findings
(Clean)
2013/14 Unqualified Audit
Opinion with no findings
(Clean)
www.salga.org.za
Thank you
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