1.   Department Of Cooperative Governance (DCoG) Annual Performance Plan For The Financial Year 2018/19
Presentation to the Select Committee on Cooperative Governance and Traditional Affairs
22 May 2018

2. Presentation Outline Purpose Part A: DCOG Strategic Overview
Part B: DCOG 2018/19 Annual Performance Plan
Part C: DCOG 2018 MTEF Budget Allocation
Recommendations

3. Purpose
To present to the Select Committee on Cooperative Governance and Traditional Affairs, the 2018/19 Annual Performance Plan of the Department of Cooperative Governance and 2018 MTEF Budget allocations. Note: A word document on the issues raised by the Committee members in our previous engagement on the DCoG 2016/17 Annual Performance Plan is attached.

4. Part A: DCOG Strategic Overview

5. DCOG Vision and Mission
A functional and developmental local government system that delivers on its constitutional and legislative mandates within a system of cooperative governance.
Mission Statement
Our mission is to ensure that all municipalities perform their basic responsibilities and functions without compromise by:
Putting people and their concerns first;
Supporting the delivery of municipal services to the right quality and standard;
Promoting good governance, transparency and accountability;
Ensuring sound financial management and accounting; and
Building institutional resilience and administrative capability.

6. Guided by the spirit of Batho Pele, our values are:
DCOG Values
Guided by the spirit of Batho Pele, our values are:
Commitment to public service;
Integrity and dedication to fighting corruption;
A hands-on approach to dealing with local challenges;
Public participation and people centred approach;
Professionalism and goal orientation;
Passion to serve; and
Excellence and accountability.

7. Alignment of APP to the 2014-2019 MTSF
MTSF Outcome 9:
Sub-outcomes
Related Strategic Outcome-Oriented Goal (s)
Related Strategic Objective (s)
Sub-outcome 1: Members of society have sustainable and reliable access to basic services
Strategic Goal 7 Ensure significant improvements in service delivery through sound infrastructure management (SG 7)
Strategic Objective 7.1 Coordinate and facilitate sector collaboration for infrastructure development at municipal level to extend services to unserved communities by March 2020
Sub-outcome 2: Strengthened Intergovernmental arrangements for a functional system of cooperative governance for local government
Strategic Goal 3 Foster the creation of a functional local government system through enhanced accountability and transparency
Strategic Objective 3.1 Deepen the relationship between citizens and local government through improved citizen engagement mechanisms by March 2020
Strategic Objective 3.2 Improve accountability in the local government system by coordinating reporting on municipal performance by March 2020.
Sub-outcome 3: Democratic, well-governed and effective municipal institutions capable of carrying out their developmental mandate according to the Constitution
Strategic Goal 4 Build institutional resilience and initiate the next phase of institution building
Strategic Objective 4.1 Strengthen the functionality of municipalities through the implementation of administrative and institutional systems by March 2020

8. Alignment of APP to the 2014-2019 MTSF (2)
MTSF Outcome 9:
Sub-outcomes
Related Strategic Outcome-Orientated Goal (s)
Related Strategic Objective (s)
Sub-outcome 4: Sound financial management
Strategic Goal 4- Build institutional resilience and initiate the next phase of institution building
Strategic Objective 4.2 Implement initiatives to improve financial sustainability and revenue management in local government by March 2020.
Sub-outcome 5: Local public employment programmes expanded through the Community Work Programme.
Strategic Goal 8- Local public employment programmes expanded through the Community Work Programme
Strategic Objective 8.1 Provide one million work opportunities through effective and efficient Programme management and strategic partnerships by March 2020.

9. Alignment to other Outcomes
DCoG contribution to other Government Outcomes as shown below:
Other MTSF Outcomes
DCoG Contribution
Related Strategic Objective (s)
Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security
for all. Sub-outcome 1: Improved land administration and spatial planning for integrated development in rural areas.
Through the roll-out of the Integrated Urban Development Framework (IUDF) Implementation Plan
Strategic Objective 2.1: Facilitate the restructuring of municipal space economy through integrated development planning and spatial targeting by March 2020
Outcome 7: Sub-outcome 3: Improved food security
Outcome 14: Sub-Outcome 3: Greening of public spaces and Cleaning of Cities
Through the provision of work opportunities to the poor using food garden cooperatives
Through the Community Work Programme partnerships, some projects focus on the greening of public spaces and cleaning of cities.
Strategic Objective 8.1 Provide one million work opportunities through effective and efficient Programme management and strategic partnerships by March 2020.
Outcome 14: Nation building and social cohesion.
All municipalities have recorded processes that demonstrate inclusion of the poor in budgeting processes.
The Ward Committee System enables Ward Councillors and Ward Committees to report at ward meetings about broad budget plans and consult residents about programmes and projects that will affect them.
Through the implementation of the Indigent Policy, we ensure that municipal plans focus on poor and vulnerable groups
Strategic Objective: 3.2 Deepen the relationship between citizens and local government through improved citizen engagement mechanisms by March 2020
Strategic Objective 5.2: Coordinate collaboration for infrastructure development at municipal level to extend services to unserved communities by March 2020

10. Part B: PROGRAMME PERFORMANCE PLANS

11. Programme 1- Administration
Strategic Objective 1.1
Performance Indicator
MTEF targets
2018/19
Purpose
Improve DCoG governance processes and systems by March 2020
Improvement in Departmental MPAT average score
Final average MPAT score improved to 3 in 2019
The MPAT performance indicator seeks to improve the following areas of management performance:
Strategic Management
Financial Management
Governance and
Human Resource Management with the aim of improving compliance to key legislation which will in turn enable the Department to deliver on its mandate.

12. Programme 2– Regional and Urban Development and Legislative Support
Strategic Objective
Performance Indicator
2018/19
MTEF targets
Purpose
2.1: Facilitate the restructuring of municipal space economy through integrated development planning and spatial targeting by March 2020
Support programmes implemented in selected intermediate cities
Support programme implemented in 4 identified intermediate cities by 31 March 2019
To ensure that cities and towns are more inclusive, resource-efficient and good places to live, shop, work and play in, as envisioned in the NDP
2.2: Support the creation of an enabling environment for municipalities to achieve inclusive economic development through the implementation of initiatives of the National Framework for LED by March 2020
Framework on regional economic development adopted by the Minister
Framework on regional economic development planning approved by the Minister by 31 March 2019
To facilitate the improvement of the financial health of municipalities through the development and roll-out of a common framework on Local Economic Development

13. Programme 3- Institutional Development
Strategic Objective
Performance Indicator
Targets 2018/19
Purpose
3.1: Implement initiatives to improve financial sustainability, revenue and debt management in local government by March 2020
A municipal-specific revenue plan implemented in selected municipalities
A municipal-specific revenue plan implemented in 35 municipalities by 31 March 2019
To facilitate improvements in revenue management and accurate billing of property by municipalities
Number of municipalities assessed in terms of compliance with the rating aspects of the MPRA
110 municipalities assessed in terms of compliance with the rating aspects of the MPRA and findings and recommendations communicated to non-compliant municipalities on corrective measures for the 2019/20 FY by 31 March 2019
3.2 Deepen the relationship between citizens and local government through improved citizen engagement mechanisms by March 2020
Number of municipalities with functional ward committees
100 municipalities supported to have functional ward committees by 31 March 2019
To respond to challenges pertaining to functionality and effectiveness of ward committees as a key mechanism for deepening democracy at local level
Number of municipalities supported to institutionalise community complaints management processes
80 municipalities supported to institutionalise community complaints management processes by 31 March 2019
To ensure that municipalities are empowered with the fundamental institutional and management accountability processes and practices to deliver quality services responsive to the needs of communities.

14. Programme 3- Institutional Development Continued
Strategic Objective
Performance Indicator
MTEF targets
2018/19
Purpose
4.1: Promote good governance through strengthening anti- corruption measures in local government by March 2020
Number of District Municipalities / Metros where training on local government anti-corruption strategy is rolled out
Training on anti- corruption strategy rolled-out in 13 district municipalities / Metros by March 2019
To facilitate significant reduction in corrupt practices at local government level through good governance practices and strong accountability processes
5.1: Strengthen the functionality of municipalities through the implementation of administrative and institutional systems by March 2020
Number of reports on the appointment of senior managers concluded in- line with the MSA regulations
4 reports on appointment of senior managers concluded in line with the MSA regulations by March 2019
To monitor compliance with legislative requirements on the appointment of Senior Management in line with the Municipal Systems Act and facilitate corrective action by MEC through the Minister.
Number of reports on corrective action taken to enforce compliance by municipalities with the prescribed competency requirements
4 reports on corrective action taken against municipalities that contravened the requirements of MSA regulations by March 2019

15. Programme 4- National Disaster Management Centre
Strategic Objective
Performance Indicator
MTEF targets
2018/19
Purpose
7.1: Improve the system of disaster management and fire services across government by March 2020
Number of municipalities assessed on the capacity to implement the National Fire Safety and Prevention Strategy
12 municipalities assessed on the capacity to implement the National Fire Safety and Prevention Strategy 31 March 2019
To facilitate improvement in the capacity of municipalities to implement National Fire Safety Prevention Strategy
The International Day for Disaster Reduction commemorated
International Day for Disaster Reduction commemorated by 31 March 2019
To share best practice in effective disaster management system and coordination with special emphasis on prevention and mitigation
Number of disaster management priority guidelines approved by Head of NDMC
Two Disaster Management priority guidelines approved by Head of NDMC by 31 March 2019
The guidelines supports the implementation of disaster management legislation

16. Programme 5- Local Government Support and Interventions Management
Strategic Objective
Performance Indicator
2018/19 Targets
Purpose
3.4 Improve accountability in the local government system by coordinating reporting on municipal performance by March 2020
Annual report on municipal performance progress based on the monthly B2B questionnaire developed
Annual report on municipal performance progress based on the monthly B2B questionnaire by 31 March 2019
To ensure continuous monitoring of municipal performance trends against the 5 Back to Basics Pillars
Putting people and their concerns first;
Supporting the delivery of municipal services to the right quality and standard;
Promoting good governance, transparency and accountability;
Ensuring sound financial management and accounting; and
Building institutional resilience and administrative capability.
7.2: Coordinate collaboration for infrastructure development at municipal level to extend services to unserved communities by March 2020
Number of targeted MIG receiving municipalities monitored for compliance with DoRA
183 targeted municipalities monitored for compliance with DoRA by 31 March 2019
To monitor improvements in outcomes from the spending of existing grants and exercise stronger oversight from national department. To ensure that Municipal infrastructure is of high quality and enables smooth delivery of services to communities.

17. Programme 6- Community Work Programme
Strategic Objective
Performance Indicator
MTEF targets
Purpose
8.1: Provide one million work opportunities through effective and efficient programme management and strategic partnerships by March 2020.
Number of work opportunities provided by target date
work opportunities provided by 31 March 2019
To contribute to reducing high levels of poverty, unemployment and
inequality by providing work opportunities across all municipalities through partnerships to enhance the quality of work outputs
and sustain projects initiatives.
Number of CWP participants trained by target date
CWP participants trained by 31 March 2019
Number of partnerships established by target date
6 partnerships established by 31 March 2019

18. Part C: 2018 MTEF BUDGET ALLOCATIONS

19. 2018 MTEF ALLOCATIONS PER PROGRAMME
2017/18
2018/19
2019/20
2020/21
Average growth rate %
Programmes
Revised Estimate
Baseline
R’000
Allocations
Administration
6.4%
Regional and Urban Development and Legislative Support
-22.4%
Institutional Development
11.0%
National Disaster Management Centre
20.1%
Local Government Support and Intervention Management
1.3%
Community Work Programme
10.6%
Total Voted amounts
9.0%
The average increase in budget allocations of the Department over the 2018 MTEF period will be 9%.
The decrease of -22% in the budget allocation for Programme 2: Regional and Urban Development and Legislative Support is due to the phasing-out of the Demarcation Transitional Grant from the 2018/19 financial year.

20. 2018 ALLOCATIONS PER ECONOMIC CLASSIFICATION
Departmental Economic Classification
2017/2018
2018/19
2019/20
2020/21
Average growth rate
R'000 %
Compensation of employees
8.5%
Goods & Services
3,967,932
3,192,878
3,224,035
3,269,249
-2.4%
Department of Cooperative Governance
222,189
210,516
220,951
232,646
Community Works Programme
3,602,594
2,824,752
2,836,266
2,860,158
National Disaster Management Centre
39,900
42,494
45,256
48,197
Municipal Systems Improvement Grant
103,249
115,116
121,562
128,248
Transfers & Subsidies
9.5%
Municipal Infrastructure Support Agent
Department of Traditional Affairs
Payment for Capital Assets
7 502
7 757
8 177
8 627
4.8%
Payment for Financial Assets
100 -
Grand Total
9.0%

21. 2018 MTEF ALLOCATIONS: DIVISION OF FUNDS
Division of funds between transfers, earmarked, special allocations and operational funds
2018/19
2019/20
2020/21
R’000
2018 MTEF Allocations
Transfers, earmarked and special allocations
Municipal Infrastructure Grant
Municipal Systems Improvement Grant (Indirect)
Municipal Disaster Relief Grant
Provincial Disaster Relief Grant
Municipal Disaster Recovery Grant
21 317 - 
Local Government Equitable Share
Community Work Programme (Transfers)
Community Work Programme (Goods and Services)
NDMC (Disaster evaluations)
42 334
44 705
47 208
Municipal Infrastructure Support Agency
South African Local Government Association
33 100
34 954
36 877
Municipal Demarcation Board
53 568
56 568
59 679
South African Cities Network
7 353
7 765
8 192
United Cities and Local Government of Africa
6 782
7 162
7 556
Department of Traditional Affairs
Total
Operational Budget
Administration
Regional and Urban Development and Legislative Support
42 554
45 371
48 388
Institutional Development
71 387
75 908
80 919
National Disaster Management Centre
55 723
59 181
62 990
Local Government Support and Intervention Management
86 032
91 724
98 065
Community Work Programme
44 352
47 853
51 442

22. 2018/19 ALLOCATION: DIVISION OF FUNDS
Transfer & Subsidies = 94.0% DCoG = 0.7% DTA = 0,2% MSIG = 0.1% MISA = 0.4% CWP = 4.6%
Compensation = 53.6% Compensation = 1.1%
Goods &Services = 45.5% Goods & Services = 73.0%
Transfer & Subsidies = 1.4% Transfer & Subsidy = 25.9%
Capital Assets = 0.1%

23. Recommendations
It is recommended that the Honourable Members of the Select Committee on Cooperative Governance and Traditional Affairs note the contents of the Annual Performance Plan for DCoG as tabled in Parliament on the 12th March 2018 and provide comments.

24. LIST OF ACCRONYMS APP Annual Performance Plan B2B Back to Basics CWP
Community Work Programme
DCoG
Department of Cooperative Governance
DoRA
Divisions of Revenue Act
IUDF
Integrated Urban Development Framework
KPI
Key Performance Indicator
LED
Local Economic Development
MPAT
Management Performance Assessment Tool
MSA
Municipal Systems Act
MTEF
Medium-Term Expenditure Framework
MTSF
Medium-Term Strategic Framework
NDMC
National Disaster Management Centre
NDP
National Development Plan