1. CONSOLIDATED REPORT ON MUNICIPAL PERFORMANCE 2007 /2008 FINANCIAL YEAR
Presentation to the NCOP
20th April 2010

2. CONTENTS OF THE PRESENTATION
PURPOSE OF THE PRESENTATION
LEGISLATIVE MANDATE
STATUS OF THE REPORT
PERFORMANCE ASSESSMENT METHODOLOGY
HIGHLIGHTS OF MUNICIPAL PERFORMANCE IN 2007/08 F/Y
CHALLENGES RELATING TO MUNICIPAL PERFORMANCE ASSESSMENT AND
RECOMMENDATIONS BY TECHNICAL MUNIMEC
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3. 1. PURPOSE OF THE PRESENTATION
Present to the members of the NCOP the performance of Eastern Cape municipalities as reflected in the s.47 Report for 2007–08 by the MEC
Give an outline on recommendations made by the Technical MUNIMEC and adopted by the MUNIMMEC on ways to improve Municipal performance reporting
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4. 2. LEGISLATIVE MANDATE
This Report is compiled in terms of s.47 of the Local
Government: Municipal Systems Act No. 32 of 2000
To a large extent it is based on Annual Performance
reports of individual municipalities as required by s.46
supra
National Treasury Circular No. 11 of 2003
s.43 read with s.105 of the Municipal Systems Act
s. 41(1)(h) of the Constitution of the Republic of SA
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5. 3. STATUS OF THE S. 47 REPORT
44 Reports submitted for 2007/8 as against 40 in 2006/7 – 09% improvement
Authenticity of the Reports
30 were signed by both the Mayor and the MM
05 by the Mayor only
04 by the MM only and
05 unsigned
s.47 Report was published in the Provincial Gazette as is required in terms of s.47(2)(c) of the Municipal Systems Act
Report submitted to the Provincial Legislature, NCOP & the Minister for COGTA to enable the compilation of s.48 Report for submission to Parliament
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6. 3. STATUS OF S. 47 REPORT – CONT.
All municipalities were provided with 2 copies – for the Mayor and the MM for their information and attention
The report reflected on weaknesses and strengths and proposed remedial actions to be taken by the MEC
Detailed information per each municipality, per KPI, per Quality Standard is available and was made available during feedback visits or on request
The reporting Format was work-shopped to all municipalities to strictly adhere to for the 2008/9 F/Y
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7. 4. Performance Assessment Methodology
All municipalities submit s.46 Performance Assessment Reports – Dates of receipt of which are recorded
The assessment of s.46 reports goes through three (3) phases:
The preliminary assessment – sometimes leads to returning the report to the municipality with comments
The Technical Assessment by teams with technical expertise from within the department
Final assessment – producing a consolidated provincial performance of local government
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8. 4. PERFORMANCE HIGHLIGHTS- INSTITUTIONAL TRANSFORMATION AND ORGANIZATIONAL DEVELOPMENT
KEY PERFORMANCE INDICATORS FOR MEC S.47
EXPECTED STANDARD OF PERFORMANCE
AVERAGE PERFORMANCE IN 2007/08
1. Vacancy rate for all approved posts;
85% and more of approved and funded posts are filled
Only 36% of municipalities meet the expected standard;
2. Filling of Section 57 positions
100% appointment of MM and Sec 57 managers
64% of municipalities meet the expected standard;
3. Performance Management Systems
A Performance Management System is developed, adopted by council and fully implemented (institutional and individual PMS)
Only 11% of municipalities meet the expected standard;
4. Percentage of staff with disability
At least 2% disabled staff members against the total number of staff complement
Only 2% of municipalities meet the expected standard
5. Percentage of female staff
At least 50% female employees;
Only 7% of municipalities meet the expected standard
6. Percentage of staff aged 35 or younger
At least 20% of employee are aged 35 or younger
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9. Cacadu District Area from 38% in 2006/07 to 42% in 2007/08
4. PERFORMANCE HIGHLIGHTS- INSTITUTIONAL TRANSFORMATION AND ORGANIZATIONAL DEVELOPMENT
The performance of municipalities across all the Indicators (13) revealed the following situation:
A drop in performance in most DM areas including NMBMM compared to 2006/07.
Cacadu and OR Tambo were the only district municipal areas that showed a slight improvement in performance when compared with the previous year.
Cacadu District Area from 38% in 2006/07 to 42% in 2007/08
OR Tambo District from 16% in 2006/7 to 32% in 2007/8;
The progress observed in OR Tambo DM area was due to the fact that most municipalities in this district did not submit their reports in 2006/7 Financial Year.
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10. 4. PERFORMANCE HIGHLIGHTS- INSTITUTIONAL TRANSFORMATION AND ORGANIZATIONAL DEVELOPMENT
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11. 4.2 PERFORMANCE HIGHLIGHTS-BASIC SERVICE DELIVERY
KEY PERFORMANCE INDICATORS
EXPECTED STANDARD OF PERFORMANCE
AVERAGE PERFORMANCE IN 2007/08
1. Access to free basic water
Achieve at least 90% of the yearly target
Only 26% of municipalities meet the expected standard
2. Access to free basic sanitation services
Only 20% of municipalities meet the expected standard
3. Access to free basic electricity
Only 21% of municipalities meet the expected standard
4. Bucket System Eradication
5. Indigent Policy Implementation
The policy is developed; adopted by council; promulgated and fully implemented with an update indigent register
No municipality meet the expected;
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12. 4.2 PERFORMANCE HIGHLIGHTS-BASIC SERVICE DELIVERY
The performance of municipalities across all the Indicators (23) revealed the following situation:
Most municipalities made progress with regard to basic service delivery in 2007/08;
The performance was still by no means satisfactory as evidenced by the fact that not a single district area managed to achieve an average of 50% performance rate.
Nelson Mandela Bay Metropolitan Municipality had the highest average score of 70% followed by Chris Hani DM area with an average score of 44%.
Alfred Nzo and OR Tambo DM areas were the worst performing districts at 35% and 32% respectively.
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13. 4.2 PERFORMANCE HIGHLIGHTS-BASIC SERVICE DELIVERY
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14. 4.3 PERFORMANCE HIGHLIGHTS- LOCAL ECONOMIC DEVELOPMENT
KEY PERFORMANCE INDICATORS FOR MEC S.47
EXPECTED STANDARD OF PERFORMANCE
AVERAGE PERFORMANCE IN 2007/08
1. Number of jobs created through EPWP /PPP
The number of jobs created through EPWP and PPP during the year under review is clearly indicated and the types of EPWP/PPP project is also indicated.
Only 39% of municipalities (17) meet the expected standard
2. Percentage of municipalities with effective LED Units
A dedicated LED Unit is in place with at least two (2) LED professionals appointed
Only 43% of municipalities (19) meet the expected standard
3. Percentage of municipalities with LED strategies
LED strategy has been developed and adopted by the council including evidence of implementing some LED activities;
Only 16% of municipalities (7) meet the expected standard
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15. 4.3 PERFORMANCE HIGHLIGHTS- LOCAL ECONOMIC DEVELOPMENT
The performance of municipalities across all the Indicators revealed the following situation
Despite the progress observed, the average performance across all districts was still below 50%.
Nelson Mandela Bay Municipality, Amathole and Alfred Nzo DMs were the best performing municipalities overall, yet they only scored between 40-45%.
Location also appeared to play a role in performance as the best performing municipalities were all in the urban areas.
Support provided to municipalities in respect of LED had therefore to focus on the rural municipalities.
Municipalities were persuaded to strive to mainstream LED in all their infrastructure development projects.
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16. 4.3 PERFORMANCE HIGHLIGHTS- LOCAL ECONOMIC DEVELOPMENT
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17. 4.4 PERFORMANCE HIGHLIGHTS- FINANCIAL MANAGEMENT AND VIABILITY
KEY PERFORMANCE INDICATORS FOR MEC S.47
EXPECTED STANDARD OF PERFORMANCE
AVERAGE PERFORMANCE IN 2007/08
1. Total amount of actual trade creditors as a percentage of total actual revenue
The total actual amount of trade creditors represents less than 20% of the total municipal own revenue at the end of the financial year.
48% of municipalities (21) meet the expected standard;
2. The rate of municipal consumer debt reduction
The municipality reports 50% or more of the total municipal debt reduced by the end of the financial year
Only 7% of municipalities (3) meet the expected standard
3. Total municipal own revenue as a percentage of the total budget
The municipality own revenue pays for 80% or more of the total municipal actual budget figure
Only 2% of municipalities (1) meet the expected standard
4. Percentage of capital expenditure
The municipality reports 90 to100% of capital budget utilised;
34% of municipalities (14) meet the expected standard
5. Quality of AG reports
Unqualified audit report without any matter of emphasis;
No municipality meet the expected stand; however 9% of municipalities (4) got unqualified AG report in 2007/08.
6. Percentage of municipalities with effective Internal Audit Committees
The municipality reports the existence of an Internal Audit Committee and includes a report from the Audit Committee in the Annual Report;
Only 36% of municipalities (16) meet the expected standard
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18. 4.4 PERFORMANCE HIGHLIGHTS- FINANCIAL MANAGEMENT AND VIABILITY
The performance assessment of municipalities across all the Indicators (10) revealed the following situation:
Though not yet satisfactory, the overall performance of municipalities improved in all DM areas as well as in Nelson Mandela Bay.;
NMBMM’s overall achievement rate was 80% which was “exceptional” with an unqualified AG report;
The next best was the Ukhahlamba DM area with an overall achievement of 62%;
Chris-Hani and OR Tambo district areas performed the worst at 44% and 28% respectively.
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19. 4.4 PERFORMANCE HIGHLIGHTS- FINANCIAL MANAGEMENT AND VIABILITY
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20. 4.5 PERFORMANCE HIGHLIGHTS- GOOD GOVERNANCE AND PUBLIC PARTICIPATION
KEY PERFORMANCE INDICATORS FOR MEC S.47
EXPECTED STANDARD OF PERFORMANCE
AVERAGE PERFORMANCE IN 2007/08
1. Functionality of Ward Committees
All ward committees are established and fully functional
Only 26% of municipalities (12) meet the expected standards
2. Effective monitoring system of Community Development Workers (CDWs)
The municipality provides information on the number of deployed CDWs, indicates that reports are received and that they have appointed officials to attend to public participation matters;
Only 13% of municipalities (6) meet the expected standard
4. Implementation of Intergovernmental Relations Policy
IGR strategy is developed, adopted by council and IGR unit is in place with adequate human and financial resources
No municipality meet the expected standard
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21. 4.5 PERFORMANCE HIGHLIGHTS- GOOD GOVERNANCE AND PUBLIC PARTICIPATION
The performance assessment of municipalities across all the Indicators (08) revealed the following situation:
Despite the progress observed during 2007/08, the overall performance in the District Municipalities areas was still bellow 50%;
Amathole, Cacadu, OR Tambo, Ukhahlamba and Alfred Nzo Districts reported progress in their performance compared to 2006/07.
Chris Hani District and Nelson Mandela Bay Metropolitan Municipality performance regressed compared to 2006/07 Financial Years.
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22. 4.5 PERFORMANCE HIGHLIGHTS- GOOD GOVERNANCE AND PUBLIC PARTICIPATION
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23. 4.6 PERFORMANCE HIGHLIGHTS- CROSS CUTTING ISSUES
KEY PERFORMANCE INDICATORS FOR MEC S.47
EXPECTED STANDARD OF PERFORMANCE
AVERAGE PERFORMANCE IN 2007/08
1. Timely submission of the Annual Report (Section 46)
If the annual report was tabled to council by January 31st; if draft copies were sent to the Department for comments by 28th February; if the report was adopted by Council by no later than 31st March and if final copies were sent to the department by April 30th at the latest;
Only 13% of municipalities (6) meet the expected standard;
2. Effective IDP and SDBIP processes
The revised IDP and the SDBIP were adopted before 31 July
84% of municipalities (37) meet the expected standard
3. Implementation of a Disaster Management policy for Metro and DM
A DMPF has been developed; that it has been adopted by Council and that consultative workshops have been conducted in all the local municipalities
Nelson Mandela Bay Metro is the only municipality that meet the expected standard
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24. 4.6 PERFORMANCE HIGHLIGHTS- CROSS CUTTING ISSUES
The performance assessment of municipalities across all the Indicators (04) revealed the following situation:
There had been progress across all district municipalities including the Nelson Mandela Bay Metropolitan Municipality.
The worst performing Districts were: OR Tambo (53%) and Ukhahlamba (54%);
Nelson Mandela Bay Metro was the best performing municipality with an “exceptional” achievement rate of (85%).
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25. 4.6 PERFORMANCE HIGHLIGHTS- CROSS CUTTING ISSUES
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26. 5. CHALLENGES IN MUNICIPAL PERFORMANCE ASSESSMENT PROCESS;
Late submission of reports by municipalities to the department;
Non cooperation of some municipalities regarding preliminary assessment feedback – non submission of vital information
Lack of uniformity in the reporting format – non-adherence to the format;
Some reports were not signed by either the Mayor and/MM
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27. 6. RECOMMENDATIONS BY T.MUNIMEC THAT WERE ADOPTED BY MUNIMEC
The new reporting format for Section 46 report developed by the Department should be used by ALL municipalities as from 2008/09 Financial Year;
Municipalities should fully cooperate with the Department and support the preliminary and final performance assessment processes set as follows:
Draft reports sent to the Department by latest February end;
Final reports (adopted by council) sent to the Department for final performance assessment by latest May end;
Municipalities should avail themselves for a detailed feedback by Department officials on the 2007/08 performance assessment
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28. THANK YOU