us 116358 learner guide 1 - spl short courses

Learner Guide Municipal strategic planning and implementation

Unit Standard Title Contribute to the strategic planning process in a South African

municipality

Unit Standard ID 116358

Learner Guide: Contribute to the strategic planning process in a South African municipality. LP 1,


Copyright © National Treasury 2008

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Notice This material has been developed by National Treasury as part of a broader skills development initiative to support the implementation of the Municipal Minimum Competency Regulations, Gazette 29967, June 2007. The material should be used as part of the broader context of curricular content and was designed to achieve the recognised municipal financial management qualifications Only those service providers that appear on the National Treasury website list of “Service Providers and Modules” are authorised to use this product, which must be used for the express purpose of providing approved learning programme(s) towards municipal competency regulations. Service providers will appear on this list only after formal accreditation in full or in part have been reviewed and approved in respect of related training by the National Treasury. Service Providers wishing to confirm if they have been listed as preferred service providers for use by municipalities should visit the National Treasury website at www.treasury.gov.za/legislation/mfma under “Training and Validation” – which will be updated from time to time. Service Providers are not permitted to substantially amend or change this material without the express authorisation in writing of the National Treasury MFMA Implementation Unit. Any requests to amend or alter this publication must be submitted to [email protected], prior to the commencement of any training or activity that the material may relate to. Notwithstanding the above limitations, National Treasury encourages those Authorised Service Providers using this product to further develop the material with the inclusion of case studies and practical examples where appropriate, to enhance practical relevance for learners where possible. We remind you that this material has been provided as a resource to assist practitioners in local government to become qualified municipal finance management professionals, it is not intended to provide legal or other advice on which a municipality should rely on in fulfilling their statutory or social responsibilities. Other parties not referred to above, may use this material for training purposes only, provided that such purposes will be not for profit only, and prior approval is granted by National Treasury. MFMA Implementation Unit 3rd Floor, 40 Church Square, Pretoria September 2008




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Table of Contents

General Comments .................................................................................................. 6 1. The following are the Unit Standards in the sequence set out in the SAQA

standard 116358: ............................................................................................... 6 1. MODULE TITLE: MUNICIPAL STRATEGIC PLANNING AND

IMPLEMENTATION ........................................................................................... 7 2. UNIT STANDARD TITLE .................................................................................... 7 3. MODULE STRUCTURE ..................................................................................... 7 4. UNIT STANDARD OUTCOMES ......................................................................... 7 5. UNIT STANDARD PURPOSE ............................................................................ 8 6. LEARNING ASSUMED TO BE IN PLACE. ........................................................ 9 7. UNIT STANDARD CONTENT ............................................................................ 9 8. UNIT STANDARD ASSESSMENT ................................................................... 10 9. MODERATION ................................................................................................. 11 10. REFERENCES ................................................................................................. 11 11. LEARNING ASSUMED TO BE IN PLACE ....................................................... 11

Learning Unit 1....................................................................................................... 12 1. LEARNING OUTCOMES ................................................................................. 12 2. KEY CONCEPTS ............................................................................................. 12 3. INTRODUCTION/OVERVIEW .......................................................................... 12 4. THE STRATEGIC PLANNING PROCESS ....................................................... 13 5. ROLE-PLAYERS NEEDED FOR THE FORMULATION OF MUNICIPAL

`VISION` AND `MISSION` STATEMENTS ...................................................... 17 6. PROCESS FOR FORMULATING `VISION` AND `MISSION` STATEMENT ... 18 7. EVALUATE DIFFERENT MUNICIPAL MISSION STATEMENTS IN THE

CONTEXT OF THE ACTUAL SERVICE DELIVERY PROGRAMMES AND EVOLVING MACRO ENVIRONMENT. ............................................................ 19

8. SOURCES / REFERENCES ............................................................................ 19 9. LEARNING TASKS/ACTIVITIES ...................................................................... 20 10. ASSESSMENT ................................................................................................. 20

Learning Unit Two .................................................................................................. 21 1. LEARNING OUTCOMES ................................................................................. 21 2. KEY CONCEPTS ............................................................................................. 21 3. INTRODUCTION/OVERVIEW .......................................................................... 21 4. STAKEHOLDERS IN A MUNICIPAL STRATEGIC PROCESS ........................ 22




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5. CURRENT PRACTICES WITH RESPECT TO STAKEHOLDER ANALYSIS AND PARTICIPATION IN A MUNICIPAL STRATEGIC PLANNING PROCESS. ......................................................................................................................... 24

6. PRINCIPLES FROM LEGISLATION PERTAINING TO COMMUNITY PARTICIPATION AS PART OF INTEGRATED DEVELOPMENT PLANNING 25

7. SOURCES ........................................................................................................ 26 8. LEARNING TASK ............................................................................................. 26 9. ASSESSMENT ................................................................................................. 26

Learning Unit Three ............................................................................................... 27 1. LEARNING OUTCOMES ................................................................................. 27 2. INTRODUCTION .............................................................................................. 27 3. TRANSLATION OF COMMUNITY NEEDS INTO KEY PERFORMANCE

AREAS ............................................................................................................. 29 4. KEY PERFORMANCE AREAS WITHIN A MUNICIPALITY’S VISION AND

MISSION STATEMENTS ................................................................................. 31 5. EVALUATION OF KEY PERFORMANCE AREAS IN TERMS OF

INSTITUTIONAL ARRANGEMENTS ............................................................... 32 6. SOURCES ........................................................................................................ 34 7. LEARNING TASKS .......................................................................................... 34 8. ASSESSMENT ................................................................................................. 35

Learning Unit Four ................................................................................................. 36 1. LEARNING OUTCOMES ................................................................................. 36 2. INTRODUCTION .............................................................................................. 36 3. MECHANISMS FOR THE INVOLVEMENT OF KEY MUNICIPAL PARTNERS

AND STAKEHOLDER IN THE FORMULATION OF STRATEGIES ................ 37 4. INDENTIFYING MUNICIPAL STRATEGIES .................................................... 38 5. DEVELOP PROGRAMMES THAT ALIGN TO MUNICIPAL STRATEGIES .... 39 6. SOURCES ........................................................................................................ 40 7. LEARNING TASKS .......................................................................................... 40 8. ASSESSMENT ................................................................................................. 41

Learning Unit Five .................................................................................................. 42 1. LEARNING OUTCOMES ................................................................................. 42 2. INTRODUCTION .............................................................................................. 42 3. THE LEGISLATIVE AND POLICY FRAMEWORK FOR INTEGRATED

DEVELOPMENT PLANNING .......................................................................... 44 4. POLICY FRAMEWORK .................................................................................... 45 5. THE LEGISLATIVE FRAMEWORK FOR INTERGRATED DEVELOPMENT

PLANNING. ...................................................................................................... 48 6. THE PROCESS FOR IDP ADOPTION ............................................................ 51 7. THE IDP REVIEW PROCESS .......................................................................... 55




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8. SOURCES ........................................................................................................ 57 9. LEARNING TASKS .......................................................................................... 58 10. 5.9 ASSESSMENT .......................................................................................... 58

Learning Unit 6................................................................................................ 59 1. LEARNING OUTCOMES ................................................................................. 59 2. INTRODUCTION .............................................................................................. 59 3. THE ESTABLISHMENT AND DEVELOPMENT OF PERFORMANCE

MANAGEMENT SYSTEMS (MSA REQUIREMENT ) ..................................... 59 4. THE CORE COMPONENTS AND COMMUNITY INVOLVEMENT IN

MUNICIPAL PERFORMANCE ........................................................................ 60 5. THE SETTING OF KEY PERFORMANCE INDICATORS AND THE AUDIT OF

PERFORMANCE MEASUREMENTS .............................................................. 61 6. REQUIREMENTS REGARDING REPORTS ON THE PMS AND THE MAKING

OF REGULATIONS AND GUIDELINES .......................................................... 61 7. CREATING AND MAINTAINING AN EFFECTIVE SYSTEM OF MUNICIPAL

PERFORMANCE MANAGEMENT .................................................................. 62 8. IMPLEMENTING PERFORMANCE MANAGEMENT ...................................... 65 9. SERVICE DELIVERY BUDGET IMPLEMENTATION ...................................... 67 10. STRATEGIC DEVELOPMENT PROGRAMMES ............................................. 70 11. COMPONENTS OF THE SDBIP ...................................................................... 73 12. QUATERLY PROJECTIONS OF SERVICE DELIVERY TARGETS AND

PERFORMANCE INDICATORS. ..................................................................... 75 13. ROLES AND RESPONSIBILITIES IN CONTEXT OF SDBIP .......................... 75 14. ROLE OF THE ACCOUNTING OFFICER IN RESPECT OF SDBIP ............... 76 15. SOURCES ........................................................................................................ 76 16. LEARNING TASKS .......................................................................................... 77 17. ASSESSMENT ................................................................................................. 77

Annexure A : Example of an IDP document .......................................................... 78 Annexure B : Key areas in the Unit Standard ....................................................... 78




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General Comments

1. The following are the Unit Standards in the sequence set out in the SAQA standard 116358:

1.1. UNIT 1

1.1.1. Formulate vision and mission statements in a South African municipality as

required by the local government legislative framework.

1.2. UNIT 2

1.1.2. Conduct a stakeholder analysis and develop a framework for a community

participation process.

1.3. UNIT3

1.1.3. Identify key performance areas applicable to institutional strategies as required

by the local government legislative framework

1.4. UNIT 4

1.1.4. Formulate institutional strategies.

1.5. UNIT 5

1.1.5. Demonstrate knowledge of the legislative framework for integrated development

planning and apply requirements of legislation.

1.6. UNIT 6

1.1.6. Formulate programs and develop methods for monitoring the implementation of

a strategic plan and related programmes.




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1. MODULE TITLE: MUNICIPAL STRATEGIC PLANNING AND IMPLEMENTATION

1.1. Two unit standards form part of this module as registered under the qualification

ID 48965, are 116358 and 116342.

2. UNIT STANDARD TITLE

2.1. Contribute to the strategic planning process in a South African Municipality, Unit

Standard 116358

3. MODULE STRUCTURE

3.1. Qualification Certificate in Municipal Finance Management: Core

National Diploma: Public Finance Management and

administration: Elective

3.2. Credits: 12

3.3. NQF level: 6

3.4. Type: Core/ elective

3.5. Duration: 120 Notional hours

4. UNIT STANDARD OUTCOMES

4.1. ON COMPLETION OF THIS UNIT STANDARD, YOU SHOULD BE ABLE TO:






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by the local government legislative framework






5. UNIT STANDARD PURPOSE

5.1. This Unit Standard is intended for political executives, municipal managers and

strategic executive managers, and is aimed to assist strategic executive

managers in South African local government to develop own abilities in strategic

management.

5.2. This Unit Standard contributes to the development of strategic thinking amongst

political executives, strategic executive managers and other role-players

contributing to decision-making.

5.3. This Unit Standard deals with the strategic planning process, which is specific for

municipal government, but includes competencies applicable to a range of

organisations, including private sector organisation.

5.4. Qualifying learners are able to:

5.4.1. Participate effectively in the strategic planning process within their municipality,

irrespective of their position in the organisational structure.




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6. LEARNING ASSUMED TO BE IN PLACE.

6.1. IT IS ASSUMED THAT THE LEARNERS ARE COMPETENT IN:

6.1.1. Communication at Level 4.

6.1.2. Mathematical Literacy at Level 4.

6.1.3. Economics at Level 4.

7. UNIT STANDARD CONTENT

7.1. UNIT 1



7.2. UNIT 2



7.3. UNIT3


by the local government legislative framework.

7.4. UNIT 4





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7.5. UNIT 5



7.6. UNIT 6



8. UNIT STANDARD ASSESSMENT

8.1. THE STRUCTURE OF THE ASSESSMENT IS AS FOLLOWS:

8.1.1. two written assignments

8.1.2. one group assignment

8.1.3. workplace project

8.2. ASSESSMENT CRITERIA

8.2.1. In assessing submitted work, the following will carry more weight:

8.2.1.1. Originality; knowledge; insight; application; analysis; ability; comprehension and

acknowledgement of sources.

8.3. ASSESSMENT METHODS/STRATEGIES

8.3.1. Assessment for this module will be formative and summative. The summative

assessment at the end of this module is going to test whether learners can meet

the set standards. What does this standard mean?




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8.3.2. Firstly, the questions will be based on the module. This means that the questions

will represent the whole module and that learners must have sufficient

knowledge of everything that appears in it.

8.3.3. Secondly, the questions will be based on the learning outcomes set in every

study unit.

8.3.4. Thirdly, learners’ general knowledge regarding the module will be tested. This

will be made possible by case studies approach.

9. MODERATION

9.1. Two examiners will be appointed for this module by the service provider. One

examiner will assess the assignment, the other one will undertake a similar

exercise to finalise the results.

10. REFERENCES

10.1. National treasury website, www.treasury.gov.za/mfma Click on the MFMA portal

then click on circulars also Click on legislation, regulations and gazettes.

11. LEARNING ASSUMED TO BE IN PLACE

11.1. IT IS ASSUMED THAT THE LEARNERS ARE COMPETENT IN:

11.1.1. Communication at Level 4.

11.1.2. Mathematical Literacy at Level 4.

11.1.3. Economics at Level 4.




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Learning Unit 1

Vision and mission statements in a South African municipality and the local government legislative framework.

1. LEARNING OUTCOMES

1.1. ON COMPLETION OF THIS STUDY UNIT, YOU SHOULD BE ABLE TO

1.1.1. Identify various role-players needed for the formulation of municipal vision and

mission statements;

1.1.2. Design a process for formulating vision and mission statements;

1.1.3. Evaluate different municipal mission statements in the context of the actual

service delivery programmes and evolving macro environment;

1.1.4. Formulate programmes to carry out service delivery activities required to support

an already formulated mission statement.

2. KEY CONCEPTS

2.1. Vision and mission; strategy formulation; stakeholders; role players; negotiation;

and planning process.

3. INTRODUCTION/OVERVIEW

3.1. Local government in South Africa is governed extensively by various pieces of

legislation. The MFMA, as one of the pieces of legislation seeks to modernise

budget and financial management practices in municipalities in order to

maximise the capacity of municipalities to deliver service to all their residents,

customers and users. It also aims to put in place a sound financial governance




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framework, by clarifying roles and responsibilities of the executive mayor or

committee, non executive councillors and officials. The most significant reform

being the new budget process and its strategic link to the Integrated

Development Plan (IDP).

3.2. The key aspect in ensuring sustainable financial management by municipalities

is the fact that roles, responsibilities and processes municipalities are required to

follow are clearly defined in the legislations. There are a number of legislations in

place which supports the MFM, these are the Municipal Systems Act, (Act 32 of

2000), Municipal Structures Act, (Act 117 of 1998), and the Constitution of the

Republic of South Africa (Act 108 of 1996).

3.3. The introduction of participatory democracy in South Africa has created new

forms of governance and introduced new approaches to development planning.

Since 1994, the functions of local government have expanded to include social

and economic developmnent communities, sustainable service delivery and the

promotion of sound, safe and healthy environment.

3.4. Strategic planning and implementation by and large explains the processes,

identifies role players in the process and complements other municipal

processes like Integrated Development Planning(IDP) and budgeting and

reporting frameworks as provided for by the legislation. A municipality’s strategic

planning tool is commonly referred to as the Integrated Development Plan. The

next sub-topics will highlight the importance of a mission and vision in planning

process of any organisation or institution, this will be adapted to a municipal

context including the role players required for the formulation of such and the

legislative provisions for the IDP.

4. THE STRATEGIC PLANNING PROCESS

4.1. In todays highly competitive business and organisational environment, budget

oriented planning or forecast planning methods are insufficient for a large firm or

organisation to prosper. There is need to engage in strategic planning that

clearly defines objectives and assesses both the internal and external situation




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to formulate strategy, evaluate progress, and make judgements as necessary to

stay on track.

4.2. A simplified view of the strategic planning process:

The Strategic Planning Process

4.3. VISION, MISSION AND OBJECTIVES

4.3.1. The vision is a statement of the ideal situation the municipality would like to

achieve in the long term.

4.3.2. The mission statement describes the organisations business vision, including

the unchanging values and purpose of the institution and forward-looking

visionary goals that guide the pursuit for future opportunities.

4.3.3. An organisations mission is its reason for being. The mission often is expressed

in the form of a mission statement, which conveys a sense of purpose to

employees and projects an organisation image to stakeholders and role players.




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4.3.4. Development objectives are clear statements of what the municipality would like

to achieve in the medium term to deal with the challenges identified.

4.3.5. For example: Provide access to clean water for all residents living in the informal

settlement

4.3.6. Guided by the organisation’s vision, the organisation’s leaders can define

measurable financial and strategic objectives.

4.4. ENVIRONMENTAL SCAN

4.4.1. The environmental scan includes the following components:

4.4.1.1. internal analysis of the organisation;

4.4.1.2. analysis of the organisations purpose (task environment);

4.4.1.3. external environment.

4.4.2. The internal analysis can identify the organisations strengths and weaknesses

and the external analysis reveals opportunities and threats. A profile of the

strengths, weaknessess, opportunities, and threats is generated by means of a

SWOT analysis.

4.5. STRATEGY FORMULATION

4.5.1. Given the infromation from the environmental scan, the organisation should

match its strengths to the opportunities that it has identified, while addressing its

weaknesses and external threats.

4.5.2. Once the municipality has worked out where it wants to go and what it needs to

do to get there, it needs to work out how to get there. A development strategy is

about finding the best way for the municipality to meet a development objective.




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4.6. STRATEGY IMPLEMENTATION

4.6.1. The selected strategy is implemented by means of programmes, budgets and

procedures. Implementation involves organisation’s resources and motivation of

the staff to achieve objectives. The way in which a strategy is implemented can

have a significant impact on whether it will be successful. In a large organisation,

those who implement strategy will likely be different from the people who

formulated it. For this reason care must be taken to communicate the strategy

and the reasoning behind it. Otherwise the implementation might not succeed if

the strategy is misunderstood or if lower managers resist its implementation

because they do not understand why the particular strategy was selected.

4.6.2. From the Municipality’s point of view this is sinonymous to ensuring that the

correct people are delegated for particular duties by the Municipal manager and

the CFO.

4.7. EVALUATION AND CONTROL

4.7.1. The implementation of the strategy must be monitored and adjustments made as

needed. Evaluation and control consists of the following steps:

4.7.1.1. define parameters to be measured;

4.7.1.2. define target values for those parameters;

4.7.1.3. perform measurement;

4.7.1.4. compare measured results to the pre-defined standard;

4.7.1.5. make the necessary changes.




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5. ROLE-PLAYERS NEEDED FOR THE FORMULATION OF MUNICIPAL `VISION` AND `MISSION` STATEMENTS

5.1. In a muncipal environment, role players refer to political office bearers, officials,

council and the community. There is a need to clarify at an ealier stage as to

who are the required participants in this regard.

5.2. MFMA outlines clearly the roles and responsiblitiies of politicians and officials.

Politicians are in charge of setting policy direction which should be determined

by the needs of the community whereas officials are in charge of the

implementation of the set policies and resulting managerial decisions.

5.3. The Department of Provincial and Local Government DPLG proposes that an

Representative Forum be established to encourage the participation of

communities and other stakeholders.

5.4. The forum may include.

5.4.1. Mayor

5.4.2. Members of the executive committee of the council

5.4.3. Councillors including district councillors

5.4.4. Municipal employees

5.4.5. Traditional leaders

5.4.6. Ward committee representative

5.4.7. Heads of departments and senior officials from municipal and government

department




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5.4.8. Representatives from organised stakeholder groups

5.4.9. People who fight for the rights of unorganised groups – e.g. A gender activist

5.4.10. Resource people or advisors

5.4.11. Community representatives (e.g. RDP Forum)

5.5. The MFMA outlines that the Mayor holds the ultimate responsibility for the IDP

process and public participation of the financial resources of a municipality.

According to s53(1)(a)(b) of the MFMA the mayor must provide a general

political guidance over the budget process and the priorities that must guide the

preparaion of the IDP and budget; coordinate the annual revision of the

integrated development plan in terms of section 34 of the MSA and determine

how the integrated development plan is to be taken into account or revised for

the purposes of the budget.

5.6. The municipal manager as the head of the administration is in charge of

ensuring that the planned vision and mision translate into deliverables and he or

she is fully accountable to the Mayor in his duties.

6. PROCESS FOR FORMULATING `VISION` AND `MISSION` STATEMENT

6.1. Vision and mission formulation entail consultative processes. Since a mission is

a high level policy direction for the municipality, council would necessarily be

involved in the ratification of such.

6.2. When wording the mision statement, consider the organisations products,

services, markets, values, and concern for public image. There is need to ensure

that wording of the mission is to the extent that management and employees can

infer some order of priorities on how products and services are delivered.




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6.3. When refining the mission statement, a useful exercise is to add or delete a word

from a mission to realise the change in scope of the mission statement and

assess how concise is its wording.

7. EVALUATE DIFFERENT MUNICIPAL MISSION STATEMENTS IN THE CONTEXT OF THE ACTUAL SERVICE DELIVERY PROGRAMMES AND EVOLVING MACRO ENVIRONMENT.

7.1. Mission evaluation can be done in the context of service delivery programmes. A

municipality’s mission maps the path to where the municipality hopes to achieve

its medium or long term goals.

7.2. The evaluation of the Mission and Vision involves all the role players. This

include the Mayor, counsellors, officials and the community. The draft should be

continously revised and / or send to different role players until everyone has

agreed to a mission.

7.3. Service Delivery and Budget Implementation Plans, (SDBIP), are a

mechanism used to evaluate the level of service delivery from a perspective of a

municipality. The path set by the municipality’s mission and vision allows for the

evaluation as missions are linked to strategic planning or IDP and the budgeting

process.

7.4. The macro environment refers to the broader external environment within

which a municipality functions. This environmnent is made up of social,

economic and political forces. The implication of this is that if the mission and

vision are drawn within the broader national and provincial missions, the better

the coordination in achieving them for the realistion of similar goals.

8. SOURCES / REFERENCES


then click on circulars also Click on legislation, regulations and gazettes




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8.2. www.etu.org.za . Overview on Integrated Development Planning

8.3. Municipal Systems Act 32 of 2000

8.4. Constitution of South Africa

9. LEARNING TASKS/ACTIVITIES

9.1. How would you identify a mission and a vision in your municipality?

9.2. Describe a process you would follow when formulating a Strategy in your

municipality

9.3. Identify the role players in your municipality and describe their roles and

responsibilities

10. ASSESSMENT


10.1.1. The various role-players for consultation typically required in the formulation of

municipal ‘vision` and `mission` statements are identified for consultation.

10.1.2. A process is designed for formulating `vision` and `mission` statements including

all role-players and in accordance with relevant legislation.

10.1.3. Different municipal mission statements are evaluated in the context of the actual

service delivery programmes and evolving macro environment.




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Learning Unit Two

Conduct a stakeholder analysis and develop a framework for a community participation process


1.1. ON COMPLETION OF THIS STUDY UNIT, LEARNERS SHOULD BE ABLE TO

1.1.1. Identify various stakeholders that should be consulted in a municipal strategic

planning process;

1.1.2. Apply current practices with respect to stakeholder analysis and participation in a

municipal strategic planning process;

1.1.3. Identify principles from legislation pertaining to community participation as part of

integrated development planning;

2. KEY CONCEPTS

2.1. Negotiations, strategic planning, communication, and objectives.

3. INTRODUCTION/OVERVIEW

3.1. The importance of the municipal mission and vision has been outlined in the

previous learning unit. What this learning unit seeks to achieve is solely the

stakeholder analysis and development of a framework for community





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4. STAKEHOLDERS IN A MUNICIPAL STRATEGIC PROCESS

4.1. The Municipal Systems Act, Act 32 of 2000 already puts in place the framework

for participation in a municipal strategic planning. The community as the ultimate

beneficiaries of the municipal services are the stakeholders in this instance.

Section 16 of the MSA outlines that a municipality must develop a culture of

municipal governance that complements formal representative government with

a system of participatory governance.

4.2. Participatory governance implies that the municipality has to encourage, and

create conditions for the local community to participate in the affairs of the

municipality, including in the preparation, implementation and review of its

integrated development plan in terms of Chapter 5 and the strategic decisions

relating to the provision of municipal services in terms of Chapter 8 among

others.

4.3. MUNICIPALITY

4.3.1. The municipality must prepare, decide on, adopt a process plan, and undertake

the overall management and co-ordination of the planning process which

includes ensuring that all stakeholders are involved, appropriate mechanisms for

public participation are applied and periods are adhered to.

4.3.2. It must ensure that the formulation process is related to the key development

priorities in the municipality and that national and provincial sector planning

requirements are satisfied. The municipality through council, must adopt and

approve the Strategic Plan.

4.3.3. The Mayor bears ultimate responsibility for budget allocations, political

leadership and service delivery in the municipality. The Municipal manager

assist the Mayor to perform budgetary functions, provide the Mayor with strategic

and administration support, and assist in Municipal Strategy Implementations.

Councillors are also included so that they can give input that is relevant to their

constituencies.




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4.4. COMMUNITIES

4.4.1. The municipal strategy is based on community needs and priorities.

Communities have the chance to participate in identifying their most important

needs.

4.4.2. The MSA, s16(b)(i), further stipulates that if need be the community needs to be

empowered in this regard to enable it to participate in the affairs of the

municipality. These provisions does not imply that the community has to interfere

in the administrative duties of the municipality.

4.4.3. The IDP process encourages all stakeholders who reside and conduct business

within a municipal area to participate in the preparation and implementation of

the development plan.

4.5. NATIONAL AND PROVINCIAL GOVERNMENT

4.5.1. Many government services are delivered by provincial and national government

departments at local level, for example: police stations, clinics and schools.

Municipalities must take into account the programmes and policies of these

departments. The departments should participate in the strategic planning

process so that they can be guided how to use their resources to address local

needs.

4.5.2. The roles and responsibilities of national government with respect to local government include:

4.5.2.1. A strategic role

4.5.2.2. Providing a legislative framework for local government

4.5.2.3. Providing a framework for municipal capacity building and supporting

municipalities




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4.5.2.4. Support for key institutions

4.5.2.5. Local government finances

4.5.2.6. Monitoring and oversight:

4.5.2.7. Intervention: (in terms of Section 139 of the Constitution)

4.5.3. Provincial government’s roles include:

4.5.3.1. A development role

4.5.3.2. An intergovernmental role

4.5.3.3. Regulatory role, section 155(7) of the Constitution

4.5.3.4. An institutional development and capacity-building role: section 155(6) of the

Constitution

4.5.3.5. A fiscal role

4.5.3.6. A monitoring role, section 152 of the Constitution.

4.5.3.7. An intervention role, section 139 of the Constitution,

5. CURRENT PRACTICES WITH RESPECT TO STAKEHOLDER ANALYSIS AND PARTICIPATION IN A MUNICIPAL STRATEGIC PLANNING PROCESS.

5.1. Current practices with respect to stakeholder participation and analysis in a

municipal strategic planning process is provided for by the legislative framework

on the MSA. The Act provides for the mechanisms, procedures and processes

for community participation in such instances.




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5.2. Stakeholder analysis is best explained through the Municipal Structures Act.

There is a formal participatory structure to be followed as per the Municipal

Structures Act, of 2000. The MSA s17 outlines that participation by the local

community in the affairs of the municipality must take place through political

structures, the mechanisms, processes and procedures for participation in

municipal governance established in terms of the MSA, councillors and other

appropriate mechanisms, processes and procedures established by the

municipality.

5.3. The Act further outlines that a municipality must establish appropriate

mechanisms, procedures and processes to enable the local community to

participate in the affairs of the municipality. Special provision needs to be taken

into cognisanse if there are people who have special needs like people who

cannot read, disabled, and other disdvantaged people.

6. PRINCIPLES FROM LEGISLATION PERTAINING TO COMMUNITY PARTICIPATION AS PART OF INTEGRATED DEVELOPMENT PLANNING

6.1. The pieces of legislation making provision for this are in the MSA, the MFMA and

the Constitution. The MSA dictates that municipal planning needs to be

developmentally oriented. This according to the Act, this will ensure that it strives

to achieve the objectives of local government as set out in section 152 of the

Constitution; and gives effect to its developmental duties as required by s153 of

the Constitution.

6.2. Legislation requires that municipal planning must be done in coorperative

government. Section 24(1) states that planning undertaken by the municipality

must be aligned with, and complement the development plans and strategies of

other affected municipalities and other organs of state so as to give effect to the

principles of cooperative government contained in s41 of the Constitution which

makes provision for xyz.




26

7. SOURCES

7.1. Municipal Structures Act of 2000

7.2. Municipal Sytems Act of 2000

7.3. Constitution of RSA, 1996

7.4. MFMA, Act 83 of 2003

8. LEARNING TASK

8.1. Describe your municipality’s participatory framework in stategic planning

process;

8.2. Is it in line with the requirements of the MSA?

8.3. What are its shortcomings?

NB: If there is no participatory frame work formulate one for your municipality that is in accordance to the MSA

9. ASSESSMENT


9.1.1. This learning unit entailed identification of stakeholders in a strategic planning

process. The assessment will be based on the understanding of the roles of

those stakeholders in the strategic planning. Furthermore the assesment will

also be based on the understanding and provisions participatory legislative

requirements.




27

Learning Unit Three

Identify key performance areas applicable to institutional strategies as required by the local government legislative framework.


1.1. ON COMPLETION OF THIS STUDY UNIT, LEARNERS SHOULD BE ABLE TO:


by the local government legislative framework;

1.1.2. Align Key Perfromance Areas with vision and mission statements;

1.1.3. Evaluate Key Performance Areas in terms of institutional arrangements.

2. INTRODUCTION

2.1. The purpose of the IDP is to ensure that the resources available to the

Municipality are directed at the delivery of projects and programmes that meet

agreed development priorities. Once a municipality starts to implement the IDP,

it is important to check that:

2.1.1. The delivery is happening in the planned manner;

2.1.2. The municipality is using its resources most efficiently;

2.1.3. It is producing the quality envisage; and




28

2.1.4. The delivery is having the planned effect on the lives of the people in the

municipality.

2.2. To achieve this, it is necessary to plan, monitor, evaluate, measure and review

performance of municipalities against indicators and targets set in their IDPs.

2.3. Key performance areas: This is the area in which the municipality plays a role

towards delivering of services. The development priorities and objectives

formulated by the municipality in its integrated development planning process

must be clustered in respect of the following key performance areas:

2.3.1. Infrastructure and services;

2.3.2. Social and economic development;

2.3.3. Institutional transformation;

2.3.4. Democracy and governance; and

2.3.5. Financial management.

2.4. Key performance indicators relating to inputs, outputs and outcomes must be set

for each of the development priorities, clustered under the above five key

performance areas (Municipal Systems Act No. 32, 2000, Section 41(1) (a)). The

formulation of these key performance indicators takes place as part of a

municipality’s integrated development planning process (Municipal Systems Act

No. 32, 2000, Section 26(i)). The key performance indicators must be

measurable, relevant, objective and precise; and communities must be involved

in their formulation (Municipal Systems Act No. 32, 2000, Section 42).

2.5. The municipality must ensure that it has key performance indicators for all its

administrative units and employees and for every municipal entity and service

provider with whom the municipality has entered into a service delivery

agreement. If the municipality amends its integrated development plan, the key




29

performance indicators must be reviewed within a month of the adoption of the

amendment.

2.6. This chapter deals with the key performances areas as required by legislation in

the context of a municipality, alignment of key performance areas with municipal

vision and mission statements. The chapter also addresses key performance

areas in terms of municipal agreements, interprets situational analyses reports,

and assesses the feasibility of municipal strategies.

2.7. According to section 44 (2) of the Local Government: Municipal Systems Act,

2000 (Act 32 of 2000), the executives of a municipality are required to:

2.7.1. identify the needs of the community;

2.7.2. review and evaluate those needs in order of priority.

3. TRANSLATION OF COMMUNITY NEEDS INTO KEY PERFORMANCE AREAS

3.1. Key performance areas of a municipality are meant to address community needs

and challenges. Community needs can be identified through various means,

including:

3.1.1. Direct input from the community through area forums, ward committees or

mayor’s listening campaigns.

3.1.2. Input from special interest groups through summits and conferences.

3.1.3. Indirect input through quality of life surveys and opinion polls.

3.2. Section 73 of the Local Government: Municipal Systems Act, 2000 (Act 32 of

2000) requires that municipalities give effect to the provision of the Constitution

and-

3.2.1. give priority to the basic needs of the local community;




30

3.2.2. promote the development of the local community; and

3.2.3. ensure that all members of the local community have access to at least minimum

level of basic municipal services.

3.3. Minimum services must-

3.3.1. be equitable and accessible;

3.3.2. be provided in a manner that is conducive to-

3.3.2.1. the prudent, economic, efficient and effective use of available resources; and

3.3.2.2. the improvement of standards of quality over time;

3.3.3. be financially sustainable;

3.3.4. be environmentally sustainable; and

3.3.5. be regularly reviewed with a view to upgrading, extension and improvement.

3.4. The DPLG framework for municipal indigent policy draft 2; of 24 October 2004

provides the following from the Constitution as basic necessities, which forms

the basis of service delivery in municipalities. They are:

3.4.1. sufficient water;

3.4.2. basic sanitation;

3.4.3. refuse removal in denser settlements;

3.4.4. environmental health;

3.4.5. basic energy;




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3.4.6. health care;

3.4.7. housing; and

3.4.8. food and clothing

3.5. The Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) (‘the Act') requires the adoption of a 'process set out in writing' by each municipality

(LGL Bulletin 2001(1) p. 6). This written document is referred to as the process

plan. It must include a programme with periods for the different planning phases.

It should also provide appropriate mechanisms, processes and procedures for

consultation with and participation of local communities, organs of state,

traditional authorities, and other stakeholders in the formulation of municipal

strategies. Finally, the process plan must identify all plans and planning

requirements binding on the municipality in terms of provincial and national

legislation.

4. KEY PERFORMANCE AREAS WITHIN A MUNICIPALITY’S VISION AND MISSION STATEMENTS

4.1. The IDP delivers products such as a set of delivery priorities and objectives, a

set of internal transformation strategies, priorities and objectives, identified

projects that contribute to the achievement of the above objectives and a

financial plan. All components of the IDP need to be translated into a set of clear

and tangible objectives. The statement of objectives requires a tangible,

measurable and unambiguous commitment. These priorities and objectives may

be clustered into key performance areas (KPA’s), which represent the broad

developmental mandate of local government. Conversely, the KPA’s are further

translated into Key Performance Indicators (KPI’s), which are measurements

that indicate whether progress is being made in achieving the goals. It is

recommended that the setting of municipal KPA’s and KPI’s be based on the

following SMART criteria:




32

S Specific

M Measurable

A Achievable

R Realistic

T Time-framed

5. EVALUATION OF KEY PERFORMANCE AREAS IN TERMS OF INSTITUTIONAL ARRANGEMENTS

5.1. The measurement of performance against the key performance indicators and

targets must be done at least once a year (Municipal Systems Act No. 32, 2000,

Section 41(1)(c)(ii)). The mechanism to monitor and measure performance must

be devised by the municipality, after consultation with the community. The

mechanism must measure quantity (numbers, quotas) as well as quality

(standard, level, consumer satisfaction). It must compare the effectiveness and

cost of the input that was required to get to the output, and assess the impact of

that output. This section will present discussion on the framework for identifying

key performance areas, consultative processes with community stakeholders for

prioritising key performance areas, processes for engaging other spheres of

government and translation of key performance areas into appropriate municipal

strategies.

5.2. FRAMEWORK FOR IDENTIFYING KEY PERFORMANCE AREAS

5.2.1. Municipalities should develop a framework for identifying key performance areas

by defining individual key performance areas and key performance indicators

that includes criteria to review performance.

5.2.2. A performance management system provides a framework for regularly

monitoring and evaluating the municipality’s performance in relation to the

objectives of and indicators in the IDP. The municipalities need to prepare key

performance indicators, which can be used to check that the IDP is being

implemented as planned, that, resources are being used efficiently, and that

deviations are corrected.




33

5.2.3. The following Key Performance Areas (KPAs) are outlined in the Local

Government: Municipal Planning and Performance Management Regulations

(2001) inform the strategic objectives listed in below:

5.2.3.1. Municipal Transformation and Organisational Development.

5.2.3.2. Infrastructure Development and Basic Service Delivery.

5.2.3.3. Local Economic Development (LED).

5.2.3.4. Municipal Financial Viability and Management.

5.2.3.5. Good Governance and Public Participation.

5.3. CONSULTATIVE PROCESSES WITH COMMUNITY STAKEHOLDERS FOR PRIORITISING KEY PERFORMANCE AREAS

5.3.1. Municipalities should work with community stakeholders to provide appropriate

levels of information about the municipal project including technology,

environmental, performance, potential benefits and opportunities associated with

the project. Throughout this ongoing consultation program, municipality’s focus

should be to identify and resolve concerns and issues with the community

stakeholders.

5.4. ENGAGING OTHER SPHERES OF GOVERNMENT

5.4.1. There are different ways to engage other spheres of government in the

evaluation of key performance areas.

5.4.2. Legislation or government planning processes often include clear opportunities

to solicit support of their IDP and performance management process from the

provincial government, National Treasury or the Auditor General.




34

5.4.3. The extent of engaging other spheres of government on municipal KPA’s are

defined within the Constitution of 1996, the intergovernmental fiscal relations Act

and other legislation as follows:

5.4.4. Sections 156(1), 155(7) and 125(3) of the Constitution require the national

sphere to support, assist, enable or otherwise develop the capacity of provinces

and local government in order to attain self-sufficiency, yet interrelated

governance.

6. SOURCES




6.4. MFMA, Act 83 of 2003

7. LEARNING TASKS

7.1. Identify key performance areas in your municipality

7.2. Describe how these KPA’s are aligned to your institutional strategies as required

by the local government legislative framework;

7.3. Describe how these Key Perfromance Areas are aligned with vision and mission

statements;

7.4. Outilne the process you would follow in evaluating Key Performance Areas in

terms of institutional arrangements.




35

8. ASSESSMENT


8.1.1. Diferentiation between a strategy and a Key performance area

8.1.2. Knowledge of the Legislative framework that forms basis for identifyiing Key

Performmance Areas

8.1.3. Alignment of Key Performance areas to Instutional strategies

8.1.4. Alignment of Key Performance areas to Vision and Mission




36

Learning Unit Four

Formulation of Institutional Strategies


1.1. ON COMPLETION OF THIS STUDY UNIT, YOU SHOULD BE ABLE TO:

1.1.1. Apply participatory processes to inform institutional strategies;

1.1.2. Evaluate the economic, social and environmental context of a municipality when

weighing alternative strategies;

1.1.3. Identify institutional strategies in alignment with national and provincial plans and

programmes; and

1.1.4. Develop programmes to align service delivery activities to the institutional

strategies.

2. INTRODUCTION

2.1. A number of legislations inform the importance of stakeholder consultation in

municipal strategy, for example:

2.1.1. The Constitution of the Republic of South Africa (1996)

2.1.2. Local Government: Municipal Structures Act (Act No 117 of 1998), as amended

2.1.3. The Batho Pele White Paper (1998)

2.1.4. Promotion of Access to Information Act (Act No.2 of 2000).

2.1.5. Local Government: Municipal Systems Act, (Act No 32 of 2000)




37

2.1.6. Local Government: Municipal Finance Management Act (Act 56 of 2003)

3. MECHANISMS FOR THE INVOLVEMENT OF KEY MUNICIPAL PARTNERS AND STAKEHOLDER IN THE FORMULATION OF STRATEGIES

3.1. The structures, composition and positions may vary between different categories

and types of municipalities but some generic arrangements are recommended

as a minimum requirement. First, public participation has to be institutionalised to

ensure that all residents have an equal right to participate. Second, structured

participation must specify who is to participate, on behalf of whom, on which

issues, through which organisational mechanisms, and to what effect.

3.2. Public participation is not equally relevant and appropriate in each stage of

planning, and not all participation procedures are equally suitable for each

planning step.

3.3. The elected council is the ultimate decision-making forum on IDPs. The role of

participatory democracy is to enable stakeholders to inform, negotiate and

comment on decisions in the course of the planning process. To ensure

participatory democracy in the formulation of strategic process, the following

stakeholders should be involved:

3.3.1. IDP representative forum;

3.3.2. Municipal manager or IDP manager;

3.3.3. IDP steering committee; and

3.3.4. Project, programme and sectoral task teams.

3.4. The municipal manager, IDP steering committee and IDP representative forum

are positions and structures that will be required throughout the IDP process.




38

The project, programme and sectoral task teams will be small operational teams

composed of a number of relevant municipal sector departments and technical

officials involved in the management of the implementation process. Where

appropriate, community stakeholders directly affected by the implementation

process, will participate in the appropriate task teams.

3.5. The EXCO/executive mayor/committee of appointed councillors must manage

the drafting of the IDP, assign responsibilities to the municipal manager and

submit the plan to the munipality for adoption.

3.6. The municipality must prepare, decide on, adopt a process plan, and undertake

the overall management and co-ordination of the planning process which

includes ensuring that all stakeholders are involved, appropriate mechanisms for

public participation are applied and periods are adhered to.

3.7. It must ensure that the formulation process is related to the key development

priorities in the municipality and that national and provincial sector planning

requirements are satisfied. The municipality through council, must adopt and

approve the IDP and also must amend the IDP in accordance with the

requirements of the MEC (see LGL Bulletin 2001 (1) p. 7) and ensure that the

budget and annual operational business plans are linked to and based on the

IDP.

4. INDENTIFYING MUNICIPAL STRATEGIES

4.1. FACTORS DETERMINING MUNICIPAL STRATEGIES:

4.1.1. Priority issues or challenges of the local community

4.1.2. Developmental objectives of the municipality

4.1.3. Developmental opportunities and strengths

4.1.4. Developmental Weaknesses and Threads




39

4.1.5. Available and accessible resources

4.1.6. Municipal vision and mission statements

4.1.7. National and provincial development plans

4.2. Municipalities must decide on appropriate strategies that address the challenges

facing the community. Goal orientated strategies must advance the

municipality’s development objectives and progressively work towards achieving

its vision.

4.3. These strategies must be determined by the same factor as key performance

areas. The difference between the two is the change in focus. The key

performance areas are issues that the municipality must direct its resources

towards. Strategies are the means through which municipal resources are

deployed. Strategic objectives represent the outcome or the impact on society

that is intended through municipal programmes and projects.

5. DEVELOP PROGRAMMES THAT ALIGN TO MUNICIPAL STRATEGIES

5.1. Once the municipality has identified the best methods to achieving its

development objectives / strategies, it leads to the identification of specific

projects. The the design and content of various programmes identified.

5.2. Clear details for each programme has to be worked out in terms of:

5.2.1. Who is going to benefit it?

5.2.2. How much is it going to cost?

5.2.3. How is it going to be funded?

5.2.4. How long would it take to complete?




40

5.2.5. Who is going to manage the programmes?

5.3. Clear targets must be set and indicators worked out to measure performance as

well as the impact of individual projects.

5.4. Once all programmes have been identified, the municipality has to check again

that they contribute to meeting the strategic objectives. These programmes will

provide an overall picture of the development plans.

5.5. All the development plans must be integrated and also in line with strategies that

contribute to the overall IDP.

6. SOURCES






6.5. MFMA, Act 83 of 2003

7. LEARNING TASKS

7.1. Outline Institutional Strategies in your municipality

7.2. Formulate Participatory Structures and roles per structure in these Institutional

strategies

7.3. Describe how these institutional strategies are aligned to the local government

legislative framework;




41

7.4. Describe how these Institutional Strategies are aligned with vision and mission

statements;

8. ASSESSMENT


8.1.1. Knowledge of the Legislative framework that forms basis for formulating

Institutional Strategies

8.1.2. Knowledge of a participatory process in formulating Institutional Strategies

8.1.3. Alignment of Institutional Strategies to Vision and Mission

8.1.4. Differentation between an Institutional Strategy and Programme

8.1.5. Factors to be included in the programmes




42

Learning Unit Five

Legislative framework for integrated development planning and apply requirements of legislation.




planning and apply legislative requirements;

1.1.2. Interpret legislative pre-requisite with regard to the adoption of an integrated

development plan;

1.1.3. Identify core components of an integrated development plan; and

1.1.4. Complete an intergrated development in terms of legislative prescripts.

2. INTRODUCTION

2.1. In June 1992, the earth Summit (United Nations Conference on Environment and

Development, held in Rio de Janeiro) brought together the representatives of

180 countries, represented by in excess of 50 000 people. One hundred and

eight heads of state came together to discuss the many developmental

challenges facing humanity.

2.2. At this Summit the international community agreed on a framework for global

sustainable development which comprised of an agreement called Agenda 21,

which formed the international guidelines and action plan for sustainable

development.




43

2.3. Subsequently, all 180 nations adopted Local Agenda 21, which translates the

Agenda 21 action plan for sustainable development into a participatory, multi-

sectoral process to achieve the goals of Agenda 21 through a programme of

actions at a local level.

2.4. Many of the challenges and solutions that Agenda 21 attempts to address have

their roots in local activities. Local Agenda 21 is based on the assumption that

development issues can only be truly addressed by the participation and co-

operation of local role players through local participatory planning and

development processes.

2.5. Although each local community determines the priorities, policies and actions of

their repective development agendas, the over-arching goals of the Local

Agenda 21 process should underpin local planning and development processes.

Local Agenda 21 is a process aimed at the improved and innovative utilisation of

resources (natural, physical, financial), which will ensure enhanced social

benefits while reducing negative impacts (environmentally and otherwise) and

should be integrated with local development planning processes. Because of the

location nature of the Local Agenda 21 process, it needs to be adapted to suit

local needs and circumstances within the context of the following criteria:

2.5.1. It must:

2.5.1.1. address economic, social, and ecological needs in an integrated way;

2.5.1.2. include a shared vision for a long term sustainable future;

2.5.1.3. include participatory process with all local role-players including communities,

2.5.1.4. interest groups, and the private and public sectors;

2.5.1.5. establish stakeholder groups, forum or equivalent multi-sectoral community

2.5.1.6. groups to oversee the process;




44

2.5.1.7. prepare an action plan with concrete targets;

2.5.1.8. establish a monitoring and reporting framework; and

2.5.1.9. establish indicators to monitor progress.

2.6. Integrated Development Planning is one of the many varied approaches to Local

Agenda 21 across the world.

2.7. This study unit endeavors to describe the South African response to the

internationally acclaimed programme. It does so by;

2.7.1. discussing the policy and legislative framework of South Africa to the challenges

2.7.2. of sustainable development;

2.7.3. discussing core components of an Integrated Development Plan;

2.7.4. describing the process to complete an Integrated Development Plan;

2.7.5. describing the process for reviewing Integrated Development Plans.

3. THE LEGISLATIVE AND POLICY FRAMEWORK FOR INTEGRATED DEVELOPMENT PLANNING

3.1. The transition to democracy has seen the unfolding of a new legislative and

policy framework, aimed at redressing the imbalances of the past. This new

dispensation ushers in an era of principle-led planning and development. The

concept of sustainable development is contained in the South African

Constitution and is an important theme in most of the major policies and

legislation that have been promulgated since 1994. This policy direction places

special emphasis on development that is people-centred, environmentally sound

and participatory in nature.




45

4. POLICY FRAMEWORK

4.1. THE RECONSTRUCTION AND DEVELOPMENT PROGRAMME (RDP)

4.1.1. The Reconstruction and Development Programme (RDP) is the main socio-

economic framework for South Afica. It seeks to build a democratic, non-racial

and non-sexist future. The main principles driving the RDP are:

4.1.1.1. Integration and sustainability;

4.1.1.2. People-driven development;

4.1.1.3. Meeting basic needs and building the infrastructure;

4.1.1.4. Democratisation;

4.1.1.5. Assessment and accountability.

4.2. THE GROWTH, EMPLOYMENT AND REDISTRIBUTION (GEAR)

4.2.1. The Growth, Employment and Redistribution (GEAR), a Macro-economic

Strategy (1996) is the country’s main macro-econimic policy designed to

facilitate overall economic recovery. It places emphasis on an export-orientated

economy, but also encourages initiatives to enhance private sector involvement

in development through, inter alia, the stimulation of local economic

development. It aims to confront the related challenges of meeting basic needs,

developing human resources, increasing participation in the democratic

institutions of civil society and implementing the RDP in all its facets.

4.3. THE WHITE PAPER ON LOCAL GOVERNMENT

4.3.1. Integrated development features prominently in the approach to service delivery

outlined in the White Paper on Local Government (WPLG 1998). The paper

proposes an integrated approach to service delivery that take into account




46

economic and social impact of service provision. Both financial viability and

community participation are important consideration in the sustainability of

service delivery. The paper highlights the need to make the best possible use of

public resources to ensure universal access to affordable and sustainable

service and to provide value for money.

4.3.2. According to the WPLG “apartheid has fundamentally damaged the spatial,

economic and social environments in which people live, work, raise families and

seek to fulfill their aspirations”. The previous local government system left in trail

of uneven distribution of resources resulting in distorted fragmented and

unsustainable patterns of development. The eradication of these distorted

development patterns and replacing them with equitable and sustainable growth

and development is one of the greatest challenges facing local government.

4.3.3. The WPLG contextualised integrated development planning as a tool for

developmental local government with the intention of enabling municipalities to:

4.3.3.1. help to align scarce resources behind agreed policy objectives and programmes;

4.3.3.2. make sure that actions are prioritised around urgent needs;

4.3.3.3. ensure the necessary integration with other spheres of government, serving as a

tool for communication and interaction with them; and

4.3.3.4. serve as a basis for engagement between local government and communities.

4.4. THE URBAN DEVELOPMENT STRATEGY (1995)

4.4.1. The urban development strategy aims for the development of envronmentally

sustainanble cities/towns by 2020. It highlights the need for the promotion of

open space and efficient land use planning for the sake of the environment. It

also recognise the need for the control of pollution and effective waste

management if sustainable town and cities are to be achieved.




47

4.5. THE NATIONAL ENVIRONMENT MANAGEMENT ACT (NEMA ACT 107 OF 1998)

4.5.1. The White Paper on Envronmental Management provides the foundation for

environmental policy of the country. Some of the important principles contained

in the paper are:

4.5.1.1. Development must be sustainable so that the needs of the present generation

are met without the compromising the ability of future generations to meet their

own needs.

4.5.1.2. Environmental justice shall be pursued so that diverse environmental impacts

are not distribute in a manner that which unfairly discriminates against any

person;

4.5.1.3. Equitable access to environmental resources, benefits and services to meet

basic human needs and ensure human well being must be pursued.

4.5.1.4. Responsibility for the environmental health and safety consequences of a policy,

programme, project, product, process, service or activity, exists throughout its

lifecycle.

4.5.1.5. Decisions must take into account needs and values of all interested parties.

4.5.1.6. The full social and environmental impacts of activities, including disadvantages

and benefits must be considered, assessed and evaluated in making decisions.

4.6. THE WHITE PAPER ON SPATIAL PLANNING AND LAND USE MANAGEMENT (2001)

4.6.1. The White Paper on Spatial Planning and Land Use Management, published by

the Department of Land Affairs provides policy directives on land use planning.

The white paper states that each municipality must compile a spatial

development framework, and that one of the component of this framework must

be a “strategic environmental assessment”. The Municipal Planing and




48

Performamce Management Regulations, promulgated in 2001 in terms of the

Municipal Systems Act (MSA 2000), state that the spatial development

framework reflected in the municipality’s IDP must “contain a strategic

assessment of the environmental impact of the spatial development framework.

4.6.2. The principles of intergrated development are thus contained in many national

policies.

4.7. ACCELERATED AND SHARED GROWTH INITIATIVE FOR SOUTH AFRICA (ASGISA)

4.7.1. The objective is to eradicate poverty and increase employment. The

implementation of ASGISA which must still be adjusted and fine tuned in the

context of ongoing consultations has already begun. Government will regularly

review progress in the implementation of ASGSA, and will draw its social

partners into such evaluations from time to time.

5. THE LEGISLATIVE FRAMEWORK FOR INTERGRATED DEVELOPMENT PLANNING.

5.1. The legislative framework for integrated development planning was put into

place during the period 1996 to 2004.

5.2. THE CONSTITUTION

5.2.1. To ensure development that is relevant to the different provinces, cities and

towns with their different economic, social and environmental conditions, the

Constitution has charged local government with the planning development of the

municipal areas in order to attain the objectives of local government:

5.2.1.1. to ensure sustainable provision of services;

5.2.1.2. to promote social and economic development;

5.2.1.3. to promote a safe and healthy environment;




49

5.2.1.4. to give priority to the basic needs of communities; and

5.2.1.5. to encourage involvement of communities.

5.3. THE MUNICIPAL SYSTEMS ACT 2002 AND AMENDMENTS

5.3.1. The Municipal Systems Act requires all municipalities (metroplitan councils,

district municipalities and local municipalities) to adopt a single, inclusive plan for

the development of the municipality which:

5.3.1.1. links, integrates and coordinates plans and takes into account proposals for the

development of the municipality;

5.3.1.2. aligns the resources and capacity of the municipality with the implementation of

the plan;

5.3.1.3. forms the policy framework and general basis on which annual budgets must be

based; and is compatible with national and provincial development plans and

planning requirements that are on the municipality in terms of legislation.

5.3.2. The notion of developmental government dictates that municipalities should not

try to address local challenges single-handedly. They should rather try to be

developmental, by co-operating and establishing partnerships with all role-

players that may contribute of an area.

5.4. THE DEVELOPMENT FACILITATION ACT (DFA, ACT 67 OF 1995)

5.4.1. The Development Facilitation Act sets out principles that will guide all decisions

relating to the development of land. These principles, constituting a nationally

binding set of norms, will be the reference point in considering any future land

development.They include the principle that efficient and integrated land

development should be promoted by encouraging environmentally sustainable

land development practices and processes. The DFA principles highlight the

need to promote sustainable development that:




50

5.4.1.1. is within the fiscal, institutional and administrative means of the country;

5.4.1.2. establishes viable communities;

5.4.1.3. meets the basic needs of all citizens in an affordable way;

5.4.1.4. protects the environment; and

5.4.1.5. ensures the safe use of land.

5.4.2. In terms of the Local Government Transitional Act (LGTA 1993) as amended,

these principles should form the basis for integrate development planning. In

embarking on their integrated development planning process each local

governemnt body is expected to bear these principles, as well as other

development principles contained in other pieces of legislation and policy.

5.4.3. The principles can constantly be used as yardsticks to measure the rightness of

local government visions, goals, strategies and development decisions.

5.5. THE NATIONAL ENVIRONMENT MANAGEMENT ACT (NEMA ACT 107 OF 1998)

5.5.1. The National Environemnt Management Act (NEMA) is one of the first legislation

to flow from the White Paper on Environmental Management (1997). NEMA is a

piece of legislation, which includes principles for decision making on matters

affecting the environment, and procedures for coordinating the functions related

to the environment of various organs of state. The principles of NEMA state that

environmental management must place people and their needs at the forefront

of its concern, and serve their physical, psychological, developmental, cultural

and social interests equitably.

5.5.2. NEMA requires of every national department exercising functions, which may

affect the environment, and every province, to prepare an environmental plan




51

every four years. According to NEMA, each provincial government must ensure

that:

5.5.2.1. the relevant provincialenvironmental plan is complied with by each

5.5.2.2. municipality within its province; and

5.5.2.3. municipalities adhere to the relevant environmental implemantation and

5.5.2.4. management plans, and the principles contained in section 2 (of NEMA).

6. THE PROCESS FOR IDP ADOPTION

6.1. The Systems Act determines specific procedures regarding the framework for

integrated development planning, for adoption and review procedures of IDPs

and the role players involved during the various processes. In order to establish

a framework for integrated development planning, each district municipality must

adopt a framework for integrated development planning in its area as a whole.

The adoption of this framework is to be effected within a prescribed period after

the start of the elected term of the council and after a consultative process with

the other local municipalities in the area which has been followed.

6.2. The adoption the IDP framework binds both the district municipalities and the

local municipalities in the relevant area of jurisdiction of the particular district.

6.3. At the very least, the framework must:

6.3.1. identify the plans and planning requirements binding in terms of national and

provincial legislation on the district municipality , the local municipalities or even

any specific municipality on its own within the area;

6.3.2. identify the matters to be included in the IDP of the district and local

municipalities that require alignment;




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6.3.3. specify the principles to be applied and coordinate the approach to be adopted in

respect of the alignment of IDP matters;

6.3.4. determine procedures for consultation between the district and local

municipalities during the process of drafting their respective IDPs and also the

procedures to be implemented in order to effect essential amendments to the

framework.

6.4. Municipal councils are required to approve a document that sets out a process

for drafting,adopting and reviewing the IDP (Process plan). Consultation with

local communities regarding the IDP process is required before and after

adoption of the process plan. The programme and schedule for drafting the IDP

must be pre-determined. Provision must also be made for other organs of state

to be consulted. The process should identify all plans and planning requirements

that are binding on the municiplaity.

6.5. IDPs for local municipalities should be aligned with the district municipalities IDP

framework. Furthermore, a mechanism must be established for the local

community to be consulted on their development needs and priorities.

Communities excluded from service delivery must be involved in the participatory

process. Council should facilitate a process for community participation in every

stage of the IDP process, from identifying, assessing and prioritising needs to

devising strategy, objectives and goals.

6.6. The council must use its existing community participation mechanism to:

6.6.1. communicate regularly with stakeholders and communities regarding the

evolving IDP;

6.6.2. receive comments and input from stakeholders and communities; and

6.6.3. use community input in the drafting process.

6.7. The keys steps to be followed in the process of adopting a municipality’s

Integrated Development Plan (IDP) are as follows:




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6.7.1. Initiate a sustainable development awareness-raising process, targeting

councillors, officials, community members, and stakeholder groupings, prior to

the development of the IDP.

6.7.2. Adopt an issue driven approach and engage communities on the level of living

conditions as opposed to engaging them on desired projects.

6.8. In areas outside metropolitan areas, all district municipalities must plan

integrated development for the area as a whole but in close consultation with the

local municipalities and must draft its IDP after having taken into account the IDP

processes and proposals submitted to it by the local municipalities in its area.

Simultaneously, all local municipalities must align their IDPs with the framework

adopted by the district municipality and must draft their IDPs, after taking into

account the IDP process and proposals from the district municipality.

6.9. The management of the IDP processes falls under the responsibility of the

executive committee or executive mayor of the municipality or under a

committee of councillors appointed by the municipal council if it is a municipality

without an executive committee or mayor. The responsible committee or person

must manage the draftinng of the IDP, must assign responsibilities to the

municipal manager in the IDP process and must submit the draft paln to the

municipal council for adoption by council.

6.10. Further monitoring and support to the process of integrated planning is provided

for in that the MEC for local government in the province may:

6.10.1. monitor the process followed by a municipality;

6.10.2. assist a municipality with the planning, drafting, adoption and review of its IDP;

6.10.3. facilitate co-ordination and alignment of the IDPs of different municiplaities and

the strategies and programmes of national and provincial organs of state.




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6.11. The municipality may take any appropriate steps to resolve disputes or

differences in connection with the IDP processes between a municipality and its

local community or between municipalities.

6.12. After an IDP has been adopted or amended, the muncipal manager of a

municipality must submit a copy of the IDP to the MEC for local government in

the province within 10 days after such adoption or amendment. The copy of the

IDP must further be accompanied by a summary of the pre-adoption process, a

statement that the process has been complied with, together with explanations

where necessary, and finally in the case of a district and local municipality, a

copy of the framework adopted for the IDP between municipalities. The MEC

may within 30 days of receiving a copy of the IDP or amendment thereto , or

within such reasonable longer period as may be approved by the minister of

local government, request the relevant municipal council to adjust the plan and

amendment, in accordance with the MEC’s proposals. If the plan/amendemnt

does not comply with a requirement of the Municipal Systems Act or is in conflict

or not aligned with the IDPs of other affected municipalities.

6.13. The MEC may then request a municipal council to comply with the provisions of

the Municipal Systems Act. A municipal council must consider the MEC’s

proposals and, within 30 days of receipt of such proposals, adjust its IDP

accordingly if it agrees with the proposals. If a municipality disagrees wit the

proposals, it must object thereto and must furnish the MEC with written reasons

for disagreeing. On receipt of such objection, the MEC may refer the objection to

an ad-hoc committee for a decision. If the MEC decides to refer the objection, it

must be referred within 21 days of receipt of the objection. The mentioned ad-

hoc committee must be appointed by the MEC, whenever necessary.

6.14. IDP CORE COMPONENTS

6.14.1. The Municipal Systems Act lists the core components of the IDP, without which

the plan cannot be legally adopted. These components are:




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6.14.1.1. The vision for the long term development of the municipality, with special

emphasis on the municipality’s most critical development and internal

transformation needs;

6.14.1.2. An assessment of the existing level of development in the municipality,

which must include an identification of communities which does not have access

to basic municipal services;

6.14.1.3. The council’s development priorities and objectives for its elected term,

including its local economic development aims and its internal transformation

needs;

6.14.1.4. The council’s development strategies which must be aligned with any national

or provincial sectoral plans and planning requirements binding on the

municipality in terms of legislation;

6.14.1.5. A spatial development framework which must include the provision of basic

guidelines for a land use management system for the municipality;

6.14.1.6. The council’s operational strategies;

6.14.1.7. Applicable disaster management plans;

6.14.1.8. A financial plan, which must include a budget projection for at least the next

three years; and

6.14.1.9. A set of key performance indicators and performance targets.

7. THE IDP REVIEW PROCESS

7.1. The definition of “Review” in terms of the Municipal Systems Act, means a

process whereby the IDP is assessed, evaluated in terms of the municipality’s

performance as well as changed circumstances. The IDP is reviewed in the light

of changing internal and external circumstances that impact on the priority

issues, objectives, strategies, projects and programmes of IDP.




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7.2. Therefore, it is important to note that the IDP is not casting stone. It is developed

from a continuous process which must take into account the changing

circumstances of communities, the changes in municipal responsibilities in terms

of the division of functions within the local sphere, processes of decentralization

of delivery functions from other spheres, and unpacking and giving reality to the

philosophy of developmental local government.

7.3. The IDP review process is specifically required by section 34 of the Municipal

Systems Act, and relates to assessing the municipality’s performance against

objectives as well as implementation and also taking cognizance of new

information and changed circumstances. Specifically section 34 of the Municipal

Systems Act provides that:

7.3.1. a municipal council must review its integrated plan annually in accordance with

an assessment of its performance in terms of section 41;

7.3.2. to the extent that changing circumstances so demand; and

7.3.3. may amend its integrated development plan in accordance with prescribed

process.

7.4. This dynamic process necessitates contingency planning and continuous review

of the IDP to ensure its flexibility and responsive to the changes, without losing

sight of the vision and long term developmental objectives of the municipality.

The ongoing review culminates annually in a formal review, and the approval of

the IDP, budget and performance targets.

7.5. PURPOSE OF THE REVIEW PROCESS

7.5.1. The review process ensures that the resources available at the municipality are

directed at the delivery of projects and programmes that meet agreed

developmental priorities, and to ensure that:

7.5.1.1. the delivery is implemented in the planned manner;




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7.5.1.2. municipality is utilising its resources most efficiently;

7.5.1.3. the delivery standards meet the desired quality;

7.5.1.4. the delivery impacts positively on the lives of the people in the municipality;

7.5.1.5. to inform budgeting ;and

7.5.1.6. to analyse shortcomings in the original document and incorporate improvements

in the review.

7.5.2. To achieve this it is necessary to monitor, evaluate, measure and review the

performance of the municipality against indicators and targets set in the IDP. The

Performance Management results will assist the municipality to:

7.5.2.1. make immediate and appropriate changes in delivery and management of

resources;

7.5.2.2. identify and address major and systematic blockages; and

7.5.2.3. guide future planning on developmental objectives and resource use.

7.5.3. Achieving this requires pro-active oversight and management through the

performance management system and undertaking annual reviews of the IDP.

8. SOURCES

8.1. The White Paper on Local Government (1998)

8.2. The White Paper on Spatial Planning and Land Use Management (2001)

8.3. The Development Facilitation Act (DFA, Act 67 of 1995)

8.4. The National Environment Management Act (NEMA Act 107 of 1998)




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8.5. The Urban Development Strategy (1995)




8.9. MFMA, Act 83 of 2003

9. LEARNING TASKS

9.1. CRITICALLY ANALYSE IDP DOCUMENT IN YOUR MUNICIPALITY WITH REFERENCE TO :

9.1.1. Legislative Act, highlight the act the have been excluded

9.1.2. Key Peformace Areas and Key Performance Indicators

9.1.3. IDP core components

10. 5.9 ASSESSMENT


10.1.1. This learning unit entailed Act that serve as Legislative framework for integrated

development planning. Therefore your understanding and provisions of these

Acts will be tested in line with the requirements of participatory legislative

requirement

10.1.2. This unit standard also focussed on IDP core components. Thus the the

understanding of these components is also a requirements.




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Learning Unit 6

Formulate programs and develop methods for monitoring the implementation of a strategic plan and related programmes.




a strategic plan and related programmes;

1.1.2. Develop methods which allow the implementation of the plan; and

1.1.3. Indicators are developed to be used in the measurement of the delivery of all

elements of a plan

2. INTRODUCTION

2.1. All municipalities are obliged to review their IDPs annually in accordance with an

assessment of their performance measurements under section 41 of the

Systems Act and also to the extent that changing circumstances so demand.

The new legal requirements relevant to municipal performance management are

briefly as discussed below.

3. THE ESTABLISHMENT AND DEVELOPMENT OF PERFORMANCE MANAGEMENT SYSTEMS (MSA REQUIREMENT )

3.1. Each municipality must establish a performance management system that is

commensurate with its resources, that is best suited to its circumstances and is

in line with the priorities, objectives, and targets contained in its Integrated




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Development Plan. Specific responsibility has been placed on the executive

committee or executive mayor, whichever is applicable to:

3.1.1. manage the development of a municipality’s performance management system;

3.1.2. assign certain responsibilities of the system to the municipal manager;

3.1.3. submit the proposed system to the municipal council for adoption.

3.2. All municipalities must further establish mechanisms to monitor and review their

performance management system.

4. THE CORE COMPONENTS AND COMMUNITY INVOLVEMENT IN MUNICIPAL PERFORMANCE

4.1. Every performance management system is required to include various core

components. Accordingly, in terms of its performance management system and

any other regulations and guidelines that may be prescribed, every municipality

must incorporate and provide the following:

4.1.1. setting appropriate key performance indicators (KPIs) as a yardstick for

measuring municipal performance, including outcomes and impact, with regard

to the municipality’s developmental priorities and objectives set out in its IDP;

4.1.2. setting measurable performance targets for each of the development priorities

and objectives;

4.1.3. monitoring performance and measuring and reviewing performance at least once

a year against the development priorities and KPIs;

4.1.4. taking steps to improve performance where targets have not been met;

4.1.5. establishing a process of regular reporting to the council, political structures,

office bearers, staff, the public and appropriate organs of state.




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4.2. It is further also obligatory for a municipality to involve the local community to

participate in the development, implementation and review of the municipality’s

PMS and also to allow the community to participate in setting of appropriate key

performance indicators and performance targets.

5. THE SETTING OF KEY PERFORMANCE INDICATORS AND THE AUDIT OF PERFORMANCE MEASUREMENTS

5.1. Under the new legal framework for local government, after consultation with the

MEC for local government and organized local government, the minister for local

government may be prescribe by regulation general key indicators that are can

be applied to local government generally. The minister may also review and

adjust those KPI’s. All municipalities are further required, in a manner

determined by council to make known to the public, both internally and

externally, which KPI and performance targets are set by the municipality for

purpose of its PMS. The results of such a PMS and performance measurements

must be audited as part of the municipality’s internal auditing processes and also

annually by the auditor-general.

6. REQUIREMENTS REGARDING REPORTS ON THE PMS AND THE MAKING OF REGULATIONS AND GUIDELINES

6.1. Apart from the establishment of a municipal performance management system,

each municipality must prepare for each financial year an annual report

consisting of inter alia a performance report. Such a performance report should

reflect:

6.1.1. the performance of the municipality and each external service provider during

that financial year;

6.1.2. a comparison of the performances with the targets set for them and also the

performances in the previous year; and

6.1.3. measures taken to improve performance.




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6.2. It is important to note that this annual performance report must form part of

amunicipality’s annual report as is determined in chapter 12 of the Municipal

Finance Management Act.

6.3. Apart from the reporting responsibility on the municipal manager, the new legal

framework requires a similar responsibility on the MEC for local government. In

this regard, the MEC in a province is obliged to annually to compile and submit

to the provincial legislature and the national minister responsible for local

government a consolidated report on the performance of municipalities in that

province. The consolidated report must identify all municipalities that have

underperformed during the year, as well as the proposed remedial action to be

taken. The report must then be published in the Provincial Gazette.

7. CREATING AND MAINTAINING AN EFFECTIVE SYSTEM OF MUNICIPAL PERFORMANCE MANAGEMENT

7.1. With reference to the above-mentioned legislative requirements in relation to

municipal performance management, two key elements are significant. Firstly,

each municipality will have to identify and prioritise those areas where

performance improvement is most required. Such areas will include both

external developmental priorities and internal transformation necessities.

7.2. National government should assist municipalities by identifying common

performance areas that are applicable to all municipalities, such as access to

basic services such as water, sanitation, and electricity and housing. Through

national minimum standards, municipalities will be guided when defining their

own goals within their unique circumstances and will consolidate existing

fragmented approaches to services. The second key element is performance

assessment. An objective performance assessment is crucial for the creation

and maintenance of an economic, effective and efficient local government

performance management system.

7.3. Apart from the two key elements of an effective and efficient PMS, all

performance management systems should contain six core elements:




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7.4. PERFORMANCE MEASUREMENT:

7.4.1. Performance measurement requires a relatively objective framework for

assessing performance. Measurement is achieved by setting performance

indicators and linking them to performance targets. Performance indicators

indicate how performance will be measured; that is, the number of households to

receive water connections. Performance targets refer to the result to be achieved

within a given timeframe (e.g. 5000 connections by year end 2009). Performance

indicators can be determined only once a municipality has identified the key

objectives for development in its area and with the municipality’s overall

developmental goals and priorities in mind. Many municipalities have set various

performance indicators through their development-planning processes. A

distinction should be made between general performance indicators and local

performance indicators. General performance indicators refer to indicators that

are applicable to all municipalities, while local indicators reflect particular local

developmental priorities and objectives. Any KPI should ensure that the right

area of performance is measured and that the quality of the performance is also

assessed. Part of any process of performance measurement involves the

establishment of targets for each performance indicator. Performance is then

measured within a given time frame, according to whether targets for each

indicator have been achieved.

7.5. PERFORMANCE, MONITORING AND EVALUATION

7.5.1. The monitoring and assessment of the performance of municipalities is a crucial

aspect of any successful PMS. Monitoring and evaluation are processes aimed

at assessing the performance of municipalities and the people that work for

them. It is important to note that the assessment of people refers not only to

municipal staff members but also to external contractors that do work or provide

services on behalf of the municipality. Generally speaking, performance

monitoring is an ongoing process to determine whether targets are being met

and whether development objectives are being achieved. Performance

management must be conducted very carefully, and information should not be

manipulated to produce results that appear better than they really are.




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Uncompromising integrity of performance management is therefore essential.

Contrary to the performance monitoring process, performance evaluation is a

deeper and more detailed process of performance analysis. Such an evaluation

process looks not only at whether a municipality is performing adequately but

also at the areas of underperformance. All municipalities should make special

arrangements to evaluate performance regularly. A further key element of the

monitoring and evaluation process is so-called “performance auditing”. This

process involves verifying that the measurement mechanisms and results are

accurate and that proper procedures have been followed to evaluate and

improve performance.

7.6. PERFORMANCE REPORTING

7.6.1. Under the new legislative framework, all municipalities are obliged to submit

annual performance reports to the public and higher spheres of government. It is

accepted that the reporting requirement should significantly enhance public

participation and municipal accountability and should therefore be strictly

enforced.

7.7. CAPACITY BUILDING

7.7.1. Without the necessary capacity, municipalities will not be able to perform and

fulfill their duties and responsibilities. Municipal capacity building must therefore

be a core element of a broader performance management strategy. Capacity

building is a process of developing the ability for improved performance within

municipalities.

7.8. INTERVENTION

7.8.1. The Constitution allows and demands intervention into the affairs of local

government when necessary. In particular, the provinces are tasked with

oversight and intervention powers into the affairs of municipalities when cases of

non-performance are reported. Such interventions should be based on accurate

diagnostic results, however, and should be undertaken on an objective basis.




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7.9. PERFORMANCE INCENTIVES

7.9.1. Ultimately the performance of any particular municipality and its staff depends on

certain incentives within the PMS. Good performance should be rewarded whilst

poor performance should be penalized.

8. IMPLEMENTING PERFORMANCE MANAGEMENT

8.1. The implementation of the Integrated Development Plan is the essence of

performance in the municipality. This plan is implemented by using performance

management systems. All spheres of government are constitutionally obliged to

fulfill their duties and responsibilities according to the constitutional prescriptions

and to ensure a general system of democratic government that is accountable,

responsive and open. Local governments are further tasked with specified

municipal objectives. In order to determine whether such objectives are being

met, a proper system of accountability and performance management is

necessary. Under the provisions of the Municipal Systems Act, a new legal

framework for national performance management has been enacted. In essence,

the new system functions as follows:

8.1.1. (Step 1) All municipalities must identify the areas that require performance

measuring and improvement. This will form an integral part of the IDP process

and the setting of development objectives.

8.1.2. (Step 2) Once the areas have been identified, a municipality will monitor and

measure its performance by developing indicators and targets for each of the

development priorities.

8.1.3. (Step 3) A municipality will then have to evaluate its performance and take steps

to improve performance when targets are not being met.

8.1.4. (Step 4) In addition to those areas identified by a municipality, some areas

fundamental to the overall reconstruction and development of South Africa will

be identified by national government, through consultation with key stakeholders

such as SALGA and provincial governments.

8.1.5. (Step 5) Each municipality will be expected to report on these areas through the

prescribed national indicators and targets.




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8.1.6. (Step 6) A municipality will be able to exceed the targets set by national

government, but it will not be able to perform below those targets.

8.2. Practical example of a municipality where 50% of the residents do not have

access to clean drinking water. Water is arguably the single most essential

municipal service, as it is needed for drinking, cooking, washing and cleaning. As

a first step, the particular municipality will identify water provision as an area that

requires performance measuring and improvement. Water provision to all

residents will be set as a priority with a correlating objective of giving all

residents access to at least a certain number of litres of drinkable water per day.

The objective will then translate into developmental strategies which could

include major investment programmes in water schemes.

8.3. A second step, once the area of performance have been identified, then a

municipality will have to monitor and measure its performance. This is achieved

through the development of KPIs and targets for each of the identified priorities.

The following KPIs and targets could be relevant to the example above.

8.4. KPIs:

8.4.1. The percentage of households that do not have access to water (measure

growth)

8.4.2. The bacterial count in water (measure quality of water);

8.4.3. Average time spent by community members (measure impact of scheme on

8.4.4. community to bring water to their houses)

8.4.5. Percentage of households paying for services (measure sustainability and

financial impact).

8.5. TARGETS:

8.5.1. To reduce households without water from 50%-30% in two years




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8.5.2. To ensure that quality of water is up to standard

8.5.3. To reduce travel time for community to fetch water

8.5.4. To ensure measures are taken to service payment collections better

8.6. Under the third step, the municipality will have to evaluate its performance and

will have to take steps to improve performance when targets are not met.

Measurement mechanism can include:

8.6.1. Keeping data of household with water;

8.6.2. Testing water quality regularly;

8.6.3. Surveying residents’ activities and the implementation of a proper billing and

credit control system.

8.7. Finally, the municipality must report on its performance management in each

area as is required by law.

9. SERVICE DELIVERY BUDGET IMPLEMENTATION

9.1. Under the MFMA, councils are required to develop a Service Delivery Budget

Implementation Plan (SDBIP) to serve as a "contract" between the delivery of

goals and action plans as set out in the Integrated Development Plan (IDP) and

the Budget. The document is intended to be utilized as an implementation tool to

measure performance of senior managers against the targets (and time limits) as

contained in the IDP - by way of monthly and quarterly assessment. [The SDBIP

actually serves several purposes. That is one of them]

9.2. The essential components of the SDBIP consist of the following:-

9.2.1. Monthly Projections of Revenue to be collected for each source;




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9.2.2. Monthly Projections of Expenditure (Operating & Capital) and revenue for each

vote

9.3. The Service Delivery and Budget Implementation Plan is to be reviewed and

prepared every year as required by the Municipal Finance Management Act

(MFMA). This plan should be prepared as the key components from the National

Treasury as follows:

9.3.1. Monthly projections of revenue to be collected for each source.

9.3.2. Monthly projections of expenditure (Operating and Capital) and revenue for each

vote.

9.3.3. Quarterly projections of service delivery targets and performance indicators for

each vote.

9.3.4. Ward information for expenditure and service delivery.

9.3.5. Detailed capital works plan broken down by ward over three years.

9.4. PURPOSE

9.4.1. The purpose of this plan is to provide a management implementation and

monitoring tool that will assist the Mayor, Councilors, Municipal Manager, other

Senior Managers and the community in monitoring service delivery. It should

help to ensure that appropriate information is available to monitor.

9.4.1.1. The execution of the budget;

9.4.1.2. The performance of managers;

9.4.1.3. The performance of individual departments; and

9.4.1.4. The performance of the municipality as a whole.




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9.5. LEGISLATIVE INTERPRETATION

9.5.1. The Municipal Finance Management Act No. 56 of 2003 prescribes that

municipalities should formulate an annual Service Delivery and Budget

Implementation Plan. There are three key parts to the SDBIP namely: financial,

service delivery and performance. It is envisaged that the SDBIP, as an

implementation tool for municipalities, will strengthen local accountability and

governance for improved service delivery.

9.5.2. Budget and SDBIP

9.5.2.1. In terms of Section 15 of the MFMA, a municipality may except where otherwise

provided in this Act, incur expenditure only in terms of approved budget and

within the limits of the amounts appropriated for the different votes in an

approved budget. Immediately in Section 16, the MFMA prescribes that the

Council of a municipality must for each financial year approve an annual budget

for the municipality before the start of that financial year. An annual budget must

be a schedule setting out realistically anticipated revenue for the budget year

from each revenue source; appropriating expenditure for the budget year under

the different votes of the municipality. The budget must also set out the

estimated revenue and expenditure by vote for the current year, as well as actual

revenue and expenditure by vote for the financial year preceding the current

year. Lastly, the budget should provide a statement containing any other

information required by Section 215 (3) of the Constitution or as may be

prescribed. According to Section 24(1) the budget of a municipality must be

approved by Council at least 30 days before the start of the budget year.

Learner Guide: Contribute to the strategic planning process in a South African municipality



70

10. STRATEGIC DEVELOPMENT PROGRAMMES

STRATEGY OBJECTIVE OUTPUT/INDICATORS

1. Social &

Economic

Development

To facilitate economic growth and development in all

sectors with focus on agricultural development, tourism,

SMME with an aim of contributing towards poverty

alleviation in the municipal area. The municipality will

aim at the control and management of both formal and

informal businesses thus encouraging economic growth

and employment generation.

The long term objective is to reduce poverty levels and

maximize employment generating capacity in the

council’s development programmes.

1.1. HIV and AIDS To identify and implement interventions to address

HIV/AIDS and other related diseases.

The long term objective is to educate and co-ordinate

seminars, campaigns making the community aware of

the prevention measures to be taken and to give

support to the patients, orphans and affected families.

To inform communities to take advantage of Amangwe

Village , the local Care Centre.

1.2. Social

Infrastructure

To identify areas where these services are lacking and

establish models where it would be most accessible to

The long term objective is to provide at least one multi-

purpose hall, clinic and sports field in all identified




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all communities. nodes that will be convenient and minimize travelling for

communities within the municipal wards.

To provide community facilities such as fire fighting

services, education, disaster management services

aimed at up lifting the standard of living and sensitizing

communities in matters relating to gender, safety and

security to ensure participatory and inclusive

communities.

The long term objective is to improve the quality of life

of Mbonambi residents through the delivery of services

and improved satisfaction levels of the communities

with delivery of basic services.

1.3. Primary Health

Care

To identify areas and development nodes where

additional health facilities are required to improve health

services of the residents of Mbonambi Municipality.

The long term objective is to ensure clinics are

established at areas most accessible to residents of the

municipality.

2. Institutional

Development

To contribute towards achievement of the municipal

objectives by reviewing IDP annually to ensure it adds

value to the organization and its stakeholders.

The long term objective is to ensure that all municipal

processes and programmes are aligned and also that

all identified projects in the IDP are funded and

implemented to improve delivery of services in an

efficient and effective manner.




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3. Democracy &

Governance

To maximize community consultation and participation

in all affairs of the municipality and to adhere to Batho

Pele principles of service.

The long term objective is to conduct IDP Road Shows

in each municipal ward within a financial year to ensure

all the needs of the communities are prioritized and

attended to.

4. Infrastructure

Development

To improve and maintain existing infrastructure and

possibly provide new infrastructure to ensure that there

is spatial integration of the municipality and its

transportation system to improve the delivery of

services and improved quality of life for the residents.

The long term objective is to have met minimum service

requirements delivery by 2014.The priority is to provide

at least 90% of the population with 5l/capita/day within

1km walking distance and 35% with 25l/capita/day

within 200m walking distance. Sanitation is to be

provided at basic health and hygiene standards at least

90% of the population and to 25% of the population with

VIP lactrine services in terms of the District standards

as the provider in terms of powers and functions.

5. Financial

Management

To ensure effective Financial Management of all

resources in order to meet objectives and

developmental needs of the municipality.

To manage and control all Finances of a Municipality to

comply with all relevant Legislations, MFMA, SCM etc.

The long term objective is to have a developed effective

and efficient financial management system that will co-

ordinate activities of all departments to ensure effective

service delivery and improved levels of payment to

expand municipal income.




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11. COMPONENTS OF THE SDBIP

11.1. ANNUAL PROJECTIONS OF REVENUE TO BE BE COLLECTED FOR EACH SOURCE (APPENDIX 1)

11.1.1. Revenue

11.1.1.1. Grants & Subsidy

11.1.1.2. Operational Income

11.1.1.3. Interest

11.1.1.4. Rates & Services

11.1.1.5. Trading Services

11.2. ANNUAL PROJECTION OF EXPENDITURE (OPERATING AND CAPITAL) AND REVENUE: (APPENDIX 2)

11.2.1. Expenditure Vote

11.2.2. Salaries, Wages & Allowances

11.2.3. Council Remuneration

11.2.4. General Expenses

11.2.5. Repairs and Maintenance

11.2.6. Contributions

11.2.7. Contributions to Capital Outlay




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11.3. LED & IDP PROJECTS

11.3.1. Mayoral Projects

11.3.1.1. MIG Projects

11.3.1.2. MSIG

11.3.2. MAP Grant

11.3.3. Project Development Fund

11.3.4. Municipal Development Information Systen Support

11.3.5. PMS Grant

11.3.6. Municipal Development Planning Capacity

11.3.7. IDP Support Grant

11.3.8. Spatial Planning Grant

11.3.9. Dev. Admin. Capacity Building

11.3.10. Property Rates & Valuation Roll

11.3.11. MFMA

11.3.12. Indirect Grant Electrification




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12. QUATERLY PROJECTIONS OF SERVICE DELIVERY TARGETS AND PERFORMANCE INDICATORS.

12.1. DETAILED CAPITAL WORKS PLAN BROKEN DOWN BY WARDS

12.1.1. The detailed programme provides information on individual schemes, by ward

where possible, thus enabling close monitoring.

13. ROLES AND RESPONSIBILITIES IN CONTEXT OF SDBIP

13.1. ROLE OF THE MAYOR IN CONTEXT OF SDBIP

13.1.1. The Mayor bears ultimate responsibility for budget allocations, political

leadership and service delivery in the municipality. This section highlights key

roles of the Mayor with regards to the SDBIP as indicated in the MFMA Section

53:

13.1.1.1. Provide general political guidance over the budget process and the priorities that

guide the budget process (Section 53(1));

13.1.1.2. Ensure Council approves the annual budget before the start of the financial year;

13.1.1.3. Oversee Accounting Officer and CFO;

13.1.1.4. Ensure adherence to the time schedule for budget;

13.1.1.5. Ensure that the SDBIP is approved (by the Mayor) within 28 days after the

approval of the budget;

13.1.1.6. Ensures that annual performance agreements are linked with measurable

performance objectives in the IDP and the SDBIP; and make the SDBIP public

no later than 14 days after approval.




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14. ROLE OF THE ACCOUNTING OFFICER IN RESPECT OF SDBIP

14.1. IN TERMS OF SECTIONS 68 AND 69 OF THE MFMA, THE ACCOUNTING OFFICER BEARS THE RESPONSIBILITIES:

14.1.1. Assist the Mayor to perform budgetary functions and provide the Mayor with

administration support, information and resources;

14.1.2. Implement the budget;

14.1.3. Spending in accordance with budget and ensure that it is reduced as necessary

when revenue is anticipated to be less than projected in the budget or in the

SDBIP;

14.1.4. Ensure that revenue and expenditure is properly monitored;

14.1.5. Prepare adjustments budget when necessary; and

14.1.6. Submit draft SDBIP and drafts annual performance agreements for the municipal

manager and all senior managers.

15. SOURCES




15.3. MFMA, Act 83 of 2003




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16. LEARNING TASKS

16.1. Describe key areas in creating and maintaining an effective system of municipal

performance management

16.2. Identify a strategy, its Key performance Indicators and its targets in your

municipality

17. ASSESSMENT


17.2. Understanding of a Performanace Management System

17.3. Understanding and development of the Service Delivery and Bduget

Implementation Plan (SDBIP)




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Annexure A : Example of an IDP document

Link: http://www.mogalecity.gov.za/municipality/idp.stm

Annexure B : Key areas in the Unit Standard

• Key Concepts in this Unit Standard • Strategic Planning Process

• Acts and Legislative framework that assist in strategic planning

• Framework for involving different stakeholders in strategic planning

• Transforming needs into KPA and further to programmes

• Developing Performance Management System

• Strategy Implementation (Including

monitoring and Evaluation )

us 116358 learner guide 1 - spl short courses

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