PORTFOLIO COMMITTEE ON HUMAN SETTLEMENT UPDATE ON ACCREDITATION MAY 2011

RATIONAL FOR ACCREDITATION 1. Coordinated development - Horizontal Integration Municipalities a logical site for the effective alignment of inter-departmental and inter-governmental funding streams. Increased opportunities for the application of innovative planning principles 2. Accelerated delivery - Vertical Integration The efficiencies associated with devolving delivery authority to the local level should improve the rate of delivery Logical application of roles and functions Authority, accountability and responsibility Accreditation follows capacity Consistency, certainty Efficiency and effectiveness Cooperative Governance

FOCUS ON INTERGOVERNMENTAL RELATIONS IGR in action Partnership Purpose-driven Delivery focus Social Contract Integration NSDP, BNG, Housing Atlas Human Settlements Priorities Municipality: IDP; Human Settlements Plans Province: PGDS, Housing Plan

MANDATE & ACCREDITATION DEVELOPMENTS Constitution S156 & Housing Act Section 10 2005 MinMec adopted Accreditation Framework Jan 2009 Joint DeCog and Human Settlements resolution to accelerate Metropolitan Councils to L2 Jan 2010 Cabinet Lekgotla Outcome 8 - Accreditation of 6 Metros & 21 Municipalities included 2010 Delivery Agreements – Municipal Accreditation is a sub-output Governments POA – Published Accreditation Priorities

IMPLEMENTATION PROGRESS TO DATE MARCH 2011 - ACCREDITATION CERTIFICATION ACCREDITED MUNICIPALITIES AND PROVINCES ARE IN THE PROCESS OF: 1. Strengthening IGR - meticulous process to manage the transitional process of delegating functions to municipalities 2. Develop transitional plans and Memorandum of Understanding on the delegated functions - alignment of capacity, transfer of staff, assets and contracts work out the operational funding; Gazette allocations to accredited municipalities and enter into payment schedule municipality must prepare an Annual Housing Budget Allocation Plan Annual Housing Implementation Management Plan 3. National and Province continue to provide: ongoing accreditation support oversight and M&E role

IGR PROTOCOL FOR ACCREDITED MUNICIPALITIES - Funding flow and institutional arrangements determines Intergovernmental protocol. - Funding arrangements relate to the allocation of human settlements subsidy funds and to the administrative and operational costs. - To maintain the accreditation principle of funding follows functions and to ensure funding certainty. Two type of funding dedicated to accredited municipalities - Human Settlements Development Grant - USDG

HUMAN SETTLEMENT DEVELOPMENT GRANT Funding to accredited municipalities in the form of subsidies and operational costs Equitable subsidy allocation from the national housing subsidy budget Formula based allocations to provinces and accredited municipalities within the MTEF period For Level 1 & 2 Province will hold allocated dedicated funds and disburse against performance Where an accredited municipality will not be able to utilise its subsidy budget in a particular year, the projected unutilised portion of funds shall be reallocated to other programmes and/or municipality.

HUMAN SETTLEMENT DEVELOPMENT GRANT OPERATIONAL COSTS Recognised that in accepting the wider responsibilities delegated upon accreditation, municipalities will be incurring higher operational costs Accreditation of municipalities is a national programme for which operational funding will be provided through the operational capital expenditure (OPSCAP) The accreditation fee is for the accreditation-linked (delegated) functions only and not for the other functions which will form part of the municipality’s normal responsibilities

URBAN SETTLEMENTS DEVELOPMENT GRANT The Grant compels greater and improved coordination of planning, funding and implementation of human settlements at the provincial and local spheres of government. The Metro Councils have developed draft Built Environment Performance Plans which are currently being evaluated by a panel of experts from national sector departments, provincial departments and specialists This process will be completed at the end of June after which the final plans will be submitted for approval The department will monitor and review municipal financial and non-financial performance and develop control systems related to the USDG and the HSDG through the province

STRENGTHENING INTERGOVERNMENTAL RELATIONS The provinces and municipalities with the support of the Department are expected to improve and enhance Intergovernmental planning and relations by undertaking the ffg: - provincial planning, monitoring and evaluation frameworks for the USDG and HSDG - Reporting frameworks - Municipal Delivery agreements on outcome 8 achievement - Create improved intergovernmental working relationships with national sectoral departments, provinces and towns and cities which receive the USDG and HSDG

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