1. PORTFOLIO COMMITTEE ON HUMAN SETTLEMENT UPDATE ON ACCREDITATION
MAY 2011

2. 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

3. 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

4. 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

5. IMPLEMENTATION PROGRESS TO DATE
MARCH 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

6. 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

7. 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.

8. 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

9. 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

10. 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

11. THANK YOU