unit standard 116358: contribute to the strategic planning

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Unit Standard 116358: Contribute to the strategic planning and planning process in a SA municipality -Dr Len Mortimer

Group 1: Strategic Management, budgeting

Implementation and Performance management

Module 3: Strategic planning and multi year Income and expenditure management

The full programme Group Modules

1. Strategic Management; Budgeting Implementation & Performance Management

3. Strategic Planning & Multi Year Income & Expenditure

Management

6. Budgeting Principles & Cycles

7. Financial Reports & Performance Management

2. Municipal Accounting & Risk

Management

8. Cash, Investment, Asset, Liability Management

4. Risk Management; Internal Control Framework Design

and Audit Planning and Implementation

3. Governance & Legislation 1. Stakeholder Consultation & Ethics in Municipal Finance

2. Intergovernmental Fiscal Relations, Legislation & Policies

affecting Municipal Financial Management

4. & 5. Costing & Capital

Planning; Municipal IT

Support & Project

Management

9. Capital Planning & Financing & Costing Principles

5. Managing Information Technology Resources in

Municipal Finance

6. Supply Chain Management &

Public Private Partnerships

10. Municipal Supply Chain Management

11. Public Private Partnerships

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The content 26 US -

ID’s: 1

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NQF Le 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5

Credits 10 11 12 15 10 10 15 10 15 8 12 12 8 15 8 8 11 12 8 12 12 15 15 12 15 12

CMFM 48965

C C E C F C C C C F E C E C E E C C C Not applicable for

CMFM

Key Certificate SAQA ID - 48965 - 166 credits; F = Fundamental; C = Core; E = Elective (1)

Acc Off X X X X X X X X X X X X X X X X X X

CFO X X X X X X X X X X X X X X X X X X X X

Snr M X X X X X X X X X X X X X X X

MidFin X X X X X X X X X X X X X X X

SCMH X X X X X X X X X X X X X X X X

SCMM X X X X X X X X X X

Unit standard details

2013/01/19 4

Structure: 15 credits on NQF level 6 Outcomes: On completion of this unit standard, you should be able to: 1. Formulate vision and mission statements in a South African

municipality as required by the local government legislative framework

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

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

4. Formulate institutional strategies. 5. Demonstrate knowledge of the legislative framework for

integrated development planning and apply requirements of legislation.

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

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Specific US 116358 outcomes

• UNIT 1: Formulate vision and mission statements in a South African municipality as required by the local government legislative framework

• UNIT 2: Conduct a stakeholder analysis and develop a framework for a community participation process

• UNIT 3: Identify key performance areas applicable to institutional strategies as required by the local government legislative framework

• UNIT 4: Formulate institutional strategies • UNIT 5: Demonstrate knowledge of the legislative framework

for integrated development planning and apply requirements of legislation

• UNIT 6: Formulate programs and develop methods for monitoring the implementation of a strategic plan and related programmes

Assessment plan No Type Weight Start date Submission

date & time

Nature, content & conditions

1 Formative 0% First day Group activities as per the

Learner Guide and analysing the

National Development Plan 2030

2 Individual

assessment

50% Last day Last day Individual assignment:

City of Harare “Forward with services to the people” The Harare City Council aims to provide and maintain sound infrastructure and efficient services. The Harare City Council is dedicated to provide an enabling environment which offers first class municipal services and goods ......”.

3 Individual

work-based

assignment

50% Last day One calendar

month later

Critically analyse the IDP

document (50 marks) and the

organisation performance

evaluation (50 marks) in your

municipality

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US 116358 Unit standard assessment plan

2013/01/19 7

1 Individual

assessment

Open book

controlled class

test

Last day of

contact

session

08.30

Last day of

contact

session

10.30

Class test to cover

following:

Case study

Open book test 50

marks

2 hours

In preparation

Read case study

2 Individual

work-based

narrative

assignment

Last day of

contact

session

08:00

One

calendar

month

after last

day of

contact

session at

23:59

Instructions follow

below assessment

plan. Under heading

summative

assessment.

5

Notional hours: 15 credits, 150 hours:

Class contact including class assessment: 20 hours.

Take home preparation of individual and small group

exercises and class assessment Learning Tasks of Learner

Guide: 6 hours.

Preparation of take-home assignment: 124 hours.

The assignment should be at least 10 pages excluding cover pages and annexures. Critically analyse the IDP document and organisation performance evaluation in a municipality and:

1) List the legislation that an IDP should comply with.

2) List the legislation, policy and regulations that have been excluded in the IDP

under review. Provide reasons for your statement.

3) Do a SWOT, PESTLE, STEEP or another analysis of the IDP under review.

4) Comment if the link between the IDP and SDBIP under review is adequate, with

reference to the KPAs and KPIs.

5) Discuss the KPAs, KPIs and targets in terms of its suitability to the IDP under

review?

6) Has the annual performance report been drafted with a clear link to the IDP

under review?

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Assessment Policy Assessment conditions summary (see full policy)

• Each Unit Standard will have at least two individual assessments for determining competence (or not yet competent). One assessment will be scheduled to take place during the contact session and the other to be submitted one calendar month after the last day of the contact session

• The facilitator/assessor of the particular Unit Standard must prepare an assessment plan and explain it at the beginning of a Unit Standard contact session

• It is possible for a participant to only complete the Unit Standard registration form and do the assessments as scheduled, while not attending the rest of the contact time

BUT

• A participant found not yet competent from the first assessments will only be given a second opportunity for assessment if he/she has attended at least eighty per cent of the contact time

• A participant that has – for proven work-related / serious health reason – not been present at the contact session assessment(s), will only be given one other opportunity with participants referred to above if he/she has attended at least fifty per cent of the contact time

• The concession assessment opportunity referred to in the previous two paragraphs will be scheduled as a consultative process between facilitators and SDF’s involved

• A participant that has completed the contact time assessment, but has for a proven work-related or serious health reason been prevented from submitting the take-home assessments by the due date, will be granted a maximum of two weeks extension of time to submit, where after no further extension will be given

• The second assessment opportunity for resubmission of the take-home assignment must be resubmitted within one calendar month of the release of results to the SDFs

• All communication with participants involved will be done through the municipal SDF

ASSESSMENT CRITERIA

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

• Originality, knowledge, insight, application, analysis ability, comprehension and acknowledgement of your sources

• Credibility of /and sufficiency of evidence

• Length of assignments and time spent-Assessor and SETA

• Save work on website with US nr and Surname and Initials

• For example Assignment US 116358 Mortimer NL

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• Discuss principles of assessment

• How to approach assignment and class assessment

POE

• Portfolio of evidence

• All group work and individual work handed in with Name and surname-to be marked submit or hand in

• ID no

• Date

• Municipality

• Unit Standard number

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GROUP 1 Strategic Management; Budgeting Implementation &

Performance Management

Module 6

Strategic Planning & Multi Year Income & Expenditure

Management

Unit standard

SAQA 116358

Contribute to the strategic planning process in a

South African municipality

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Time management

Day one: 08h30 – 16h00

Units: 1 & 2, 3

Group Activities

Day two: 08h30 – 16h00

Units: 4 & 5, 6

Group Activities

Day three 08h30 – 10h30

Assessment

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Contribute to the Strategic Planning Process in a

South African Municipality

Vision & Mission Statements

in a South African Municipality &

the Local Government Legislative Framework

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Learning Outcomes

• Identify various Role-players

• Design a Formulating Process

• Evaluate different Municipal Mission Statements

• Formulate Programmes to carry out Service Delivery Activities required to support an already formulated mission statement

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Key Concepts

• Vision

• Mission

• Strategy formulation

• Stakeholders

• Role players

• Negotiation

• Planning Process

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Introduction/Overview

• Various pieces of Legislation

• Roles, Responsibilities & Processes

• Participatory Democracy

• Strategic Planning & Implementation

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Unit 1: Purpose of Strategic Planning

• Solomon 3000 years ago: Where there is no vision, the people perish.

• To plan ahead;

• Define objectives;

• Assess internal & external situation;

• To formulate strategy;

• Evaluate progress; and

• Make judgements as necessary to stay on track.

GENERALLY DEALS WITH

• What do we do?

• For whom do we do it?

• How do we excel?

Strategic Planning Process

• Vision, Mission & Objectives

• Environmental Scanning

• Strategy Formulation

• Strategy Implementation

• Evaluation & Control

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4. Strategic planning process

Unit 1: Vision & mission statements in a South African municipality & local government legislative framework

Vision, mission, value & objectives

Vision

• The statement of the ideal situation the municipality would like to achieve in the long term;

• It outlines what the organisation wants to be; and

• It is a long-term view and concentrates on the future.

Examples:

• A world without Poverty;

• An administration that functions optimally;

• The leading municipality that offers basic services to all our residents;

• School of First Choice.


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Mission

• Describes the organisation’s basic function in society;

• Why does the organisation exist?

• What does it do to achieve its vision?

• Describes the organisation’s business vision, including the unchanging values and purpose of the institution and forward-looking visionary goals that guide the pursuit for future opportunities;

Examples:

• Providing jobs for the homeless and unemployed;

• To strive for an united administration that is equipped with capacitated staff, compliant with statues, outcomes based and future orientated;

• To provide basic services in a sustainable manner to residents in the municipal area and be accountable to the public at large;

• To provide quality education to all learners and to ensure sustainability by collecting all due fees.

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Mission Statement vs Vision Statement

• Mission describes organisation now;

• Vision describes what the organisation wants to be in future.

Mission Statement Vision Statement

About: How you want to get where you want to be

Where you want to be

Answer: What do we do? Why are we here?

Time: Present leading to the future Talks about your future

Function: Lists the broad goals for which the organisation is formed

Lists where you see yourself some years from now

Change: May change, but should still tie back to core values and vision

Should remain intact because it speaks to what you represent, not just what you do

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Values

• Basic beliefs of the people who work in the organisation;

• It drives an organisations’ culture and provide a framework in which decisions are made;

• Includes business principles and commitment by staff;

Examples:

• Integrity

• Transparency

• Dedication

• Loyalty

• Excellence

• Innovation

• Accountability

• Responsiveness

• Honesty

• Inclusiveness

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Objectives

• The clear statements of what the municipality would like to achieve in the medium term to deal with the challenges identified;

• Provide guidance in the organisation;

• Set at all levels in the organisation;

• Everybody knows what is expected individually, functional unit & entire organisation.

Examples:

• To provide clean water to all residents;

• To build 1000 RDP standard houses;

• To submit AFS to AG by 30 August;

• To chance all credit electricity meters to pre-paid meters.

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Environmental scan Environmental Analysis: Internal & external

SWOT

• S – Strengths

• W – Weaknesses

• O – Opportunities

• T – Threats

STEER

• S- Social/Cultural

• T-Technological

• E-Economic

• E-Ecological

• R-Regulatory

Pest

• P – Political

• E – Economic

• S – Social

• T – Technological

EPISTEL

• E-Environmental

• P-Political

• I-Informatic

• S-Social

• T-Technological

• E-Economic

• L-Legal


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SWOT Analysis

S+W = internal and relate to the present situation

O+T = external and relates to changes in the environment which will impact the organisation

e.g.: Skills gap - Invest in training

Positive factors Negative factors

Internal factors Strengths Weaknesses

External factors Opportunities Threats

Match Convert

Strengths Weaknesses

With Into

Opportunities Strengths

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Examples of Potential Organisational Strengths (Internal):

Things the organisation is good at;

Serve as cornerstone of strategy;

Should be protected and build upon.

Achieving economies of scale Technological leadership

High quality services Good reputation

Leadership & management skills Distribution network

Financial resources Employee skills

Development capabilities High productivity

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Examples of Potential Organisational Weaknesses (Internal):

Source of competitive disadvantage;

Things the organisation lacks or does poorly;

Issues that may constrain the organisation in achieving its objective;

Should be seen as areas for improvement;

Seek ways to reduce or eliminate.

Inefficient plant Cash flow problems

Outdated technology Low productivity

Poor quality services Inadequate distribution

Lack of innovation Skills shortage

Weak reputation De-motivated staff

High costs

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Examples of Potential Organisational Opportunities (External):

Creates positive potential for the organisation to achieve its objectives.

Technological innovation Higher economic growth

New demand EU/AU/SADC enlargement

Market growth Diversification opportunities

Demographic change Deregulation of the market

Social or lifestyle change Government spending programmes

Weather conditions Topography(Coast, mountains)

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Examples of Potential Organisational Threats (External):

External development that may prevent the organisation from achieving its objectives.

Change in customer needs and priorities

Economic downturn

Demographic change Higher input costs

New regulations/ legislation Political instability

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Types of analysis


Political Economic Social Technological

Environmental regulation

Economic growth Income distribution Government spending on research

Taxation Monetary policy Demographics Government focus on technological effort

Consumer protection Government spending Labour mobility New discoveries

Labour law Minimum wage/grants Lifestyle changes Rate of technological obsolescence

Government attitude Tax impact Education Energy use and costs

Exchange rates Fashions Impact of changes in IT

Inflation Health& welfare Changes in material sciences

Living conditions Internet

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STRATEGY FORMULATION

• Given the information from the environmental scan, the organisation should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats.

• 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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Strategy

• Strategy formulation

Match strengths to opportunities and address weaknesses and external threats;

How are things done/ objectives reached?

Examples

• To collect more revenue

• To ensure financial sustainability

• To maintain infrastructure

• To train and capacitate staff


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STRATEGY IMPLEMENTATION

• 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.

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Strategic Objectives

Then set strategic objectives

• Strategic objectives begin with such words as:

– To have

– To be

– To became

– To achieve

• and end with a month, year.

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• 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.

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• From the Municipality’s point of view this is synonymous to ensuring that the correct people are delegated for particular duties by the Municipal manager and the CFO.

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Strategic Objectives (Cont)

• A strategic objective must be:

– Measurable or verifiable

– Achievable or feasible

– Flexible or adaptable

– Consistent with the rest of your strategic plan

– Does it stretch your staff without breaking them

– Is it clear, easy to understand, and inviting to achieve

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Strategic Objectives: examples • To build and enhance the governance system in order to

enable sustainable development and service delivery.

• To oversee the implementation of the intergovernmental programme of support to the Institution of Traditional Leadership to perform their constitutional mandate.

• To build and strengthen the capability and the accountability of Provinces and Municipalities to implement their constitutional mandate.

• To monitor, evaluate and communicate the impact of government programmes in municipal areas in order to enhance performance, accountability and public confidence.

• To strengthen the dplg's organisational capability and performance to deliver on its mandate.

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Strategic Objectives: examples (Cont) Growth

• Achieve R1 billion in annual revenues with R60 million in profits.

• Maintain a net profit rate equal to or better than the best world class companies in our industry.

• Have investment policies and fiscal procedures to foster aggressive growth and profitability.

• Have a comprehensive business development plan.

• Have 6 projects in 3 countries.

Management

• Have a management team capable of meeting our strategic objectives.

• Have a complete management team.

Safety

• Have an injury free workforce.

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Strategic Objectives: examples (Cont) Administrative

• Have standardized cost management and financial systems.

• Have standard operating procedures.

Employees

• Have a comprehensive career development program.

• Achieve an employee turnover rate less than 5%.

• Define and communicate organizational roles, responsibilities, and expectations for all employees.

Natural resources

• Produce coal on our lands.

Physical plant

• Have all digital equipment.

• Have a replacement equipment financing plan.

• Have a technology development and implementation plan.

Quality

• Complete the ISO 9000 certification of all projects.

• Achieve zero errors and omissions claims.

• Achieve compliance with federal, state and local environmental mandates.

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Strategy (Cont.)

• Strategy implementation

Implemented by means of programmes, budgets and procedures and involves resources of the organisation and motivation of the staff to achieve objectives

• Evaluation and control

The steps – define parameters, define clear targets, measure, compare to pre-determined standard, make changes


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EVALUATION AND CONTROL

• The implementation of the strategy must be monitored and adjustments made as needed. Evaluation and control consists of the following steps:

• define parameters to be measured; • define target values for those parameters; • perform measurement; • compare measured results to the pre-defined

standard; • make the necessary changes.

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5. Role-players needed for the formulation of municipal “vision” and “mission” statements

Politicians: set policy direction

Officials: implement policy

Create Representative Forum to:

• Encourage participation

• Opportunity to present interests of stakeholders

• Structure for discussion

• Ensure proper communication

• Monitor planning & implementation process


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5. Role-players needed for the formulation of municipal “vision” and “mission” statements

Forum may include: • Mayor

• Members of the executive committee of the council

• Councillors including district councillors

• Municipal employees

• Traditional leaders

• Ward committee representative

• Heads of departments

• Representatives from organised stakeholder groups

• People who fight for the rights of unorganised groups

• Resource people or advisors

• Community representatives


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6. Process for formulating “vision” and “mission” statements

• The success is in the consultative process, the mission as high level policy directive requires council ratification

• In wording mission statement, consider products, services, markets, values and concern for public image – mission should guide prioritisation of products and services

• In refinement, try to add or delete words from statement to assess scope change and measure how concise it is


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• 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 preparation 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.

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7. Evaluate different statements in the context of the actual service delivery programmes and evolving macro environment • Mission evaluation can be done in context of service delivery

programmes – mission maps path to where municipality hopes to achieve medium or long term goals

• Evaluation involves all role players – get widespread consensus

• SDBIP used to evaluate level of service delivery – path set by vision and mission allows for evaluation

• Macro environment the broad external environment – assessment of social, economic, political (also physical, legal, cultural, technological) forces and impact on vision, mission, objectives, strategies essential for appropriateness


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ACTIVITY/CLASS DISCUSSION

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• How would you identify a mission and a

vision in your municipality?

• Describe a process you would follow when

formulating a strategy in your municipality

• Identify the role players in your municipality

and describe their roles and responsibilities


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US 116358 Unit 2: Conduct a stakeholder analysis and develop a framework for a community participation process

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Unit 2: Conduct a stakeholder analysis & develop a framework for a community participation process

1. You should be able to identify various stakeholders that should be consulted in a municipal strategic planning process; apply current stakeholder participation analysis and participation practices in a municipal strategic planning process; identify principles from legislation on community participation as part of IDP

2. Key concepts: Negotiations, strategic planning, communication, objectives

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3. Introduction

This unit about the involvement of people within strategic planning:

WHY?

TO CREATE AWARENESS + ACCOUNTABILITY

TO INVOLVE COMMUNITIES IN THE AFFAIRS OF GOVERNMENT

TO DETERMINE COMMUNITY NEEDS

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A person or organisation with an interest in a service, programme or project, how it is delivered and the outputs and outcomes achieved.

Stakeholder

Stakeholder Engagement

The process of engaging stakeholders in specific aspects of municipal affairs including consultation, negotiation and communication.


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4. Stakeholders in a municipal strategic planning process

• Municipality: adopt process plan

• Communities: communicate basic needs

• National & Provincial Government: various programmes, IGR & support


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4. Stakeholders in a municipal strategic process

• Sec 152(1)(e): to encourage the involvement of communities and community organisations in the matters of local government;

• Sec 153(a): give priority to the basic needs of the community; and

• Sec 195(e): people’s needs must be responded to, and the public must be encouraged to participate in policy making;

The Constitution, 1996


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Section B: Developmental Local Government

Developmental local government is local government committed to working with citizens and groups within the community

Batho Pele 1. CONSULTATION: You should be consulted about the level and quality of the services

you receive, and whenever possible you should be given a choice about the services that are offered.

2. SERVICE STANDARDS 5. Information

3. ACCESS 6. Openness and Transparency

4. COURTESY 7. Redress

8. Value for money

The White Paper on Local Government


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Sec 8: Types of category A municipalities

• (c): a municipality with a collective executive system combined with a ward participatory system

• (d): a municipality with a collective executive system combined with both a subcouncil and a ward participatory system

• (g): a municipality with a mayoral executive system combined with a ward participatory system

• (h): a municipality with a collective executive system combined with both a subcouncil and a ward participatory system

LG: Municipal Structures Act

Act 117 of 1998


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Sec 9: Types of category B municipalities

• (b): a municipality with a collective executive system combined with a ward participatory system

• (d): a municipality with a mayoral executive system combined with a ward participatory system

• (f): a municipality with a plenary executive system combined with a ward participatory system


Act 117 of 1998


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Sec 19: Municipal objectives

• (2): A municipal council must annually review- – (c): its processes for involving the community

• (3): A municipal council must develop mechanisms to consult the community and community organisations in performing its functions and exercising its powers.


Act 117 of 1998


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Chapter 4: Community Participation; Sections 16 - 22

• (16)(1)(a): encourage and create conditions for participation

• (b)(i): building capacity of community to participate

• (c): annually allocate funds for above

• (17)(1)(a): participation through political structures

Chapter 5: IDP; Sections 23 – 37

• (24): Co-operative government = consult other spheres and munics

• (28): Process plan ito cptr 4

• (29): IDP process ito cptr 4;

LG: Municipal Systems Act

Act 32 of 2000


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Reg 9(2)(a): In setting KPI’s, a municipality must ensure that communities are involved

LG: Municipal Planning and

Performance Management Regulations GNR 796 dd 24 August 2001


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Sec 21: Budget preparation process

• (1): The mayor of a municipality must-

• (b): at least 10 months before start of budget year, table a time schedule

• (iv): any consultative process re preparation, tabling, etc of budget & review of IDP and policies

• (2)(d): consult DM, LM’s, PT, NT, organs of state

Sec 23: Consultations on tabled budgets

LG: Municipal Finance Management Act

Act 56 of 2003


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• Sec 4: Community participation; before adopting Rates Policy ito Chptr 4 of MSA

• Sec 5: Annual review of rates policy; through budget process ito sections 22 & 23 of MFMA

LG: Municipal Property Rates Act

Act 6 of 2004


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COMMUNITIES

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

• Communities have the chance to participate in identifying their most important needs.

• 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.

• 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.

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NATIONAL AND PROVINCIAL GOVERNMENT

• 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.

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The roles and responsibilities of national government with respect to local government

include: • A strategic role

• Providing a legislative framework for local government

• Providing a framework for municipal capacity building and supporting municipalities

• Support for key institutions • Local government finances • Monitoring and oversight: • Intervention: (in terms of Section 139 of the

Constitution)

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Provincial government’s roles include:

• A development role

• An intergovernmental role

• Regulatory role, section 155(7) of the Constitution

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

• A fiscal role

• A monitoring role, section 152 of the Constitution.

• An intervention role, section 139 of the Constitution,

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CURRENT PRACTICES WITH RESPECT TO STAKEHOLDER ANALYSIS AND PARTICIPATION IN A

MUNICIPAL STRATEGIC PLANNING PROCESS.

• 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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• Stakeholder analysis is best explained through the Municipal Structures Act. Sect 19 and whole of Chapter 4. There is a formal participatory structure to be followed as per the Municipal Structures Act, of 2000.

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• The MSA Section 17 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.

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Section 17 of MSA

• 17 Mechanisms, processes and procedures for community participation

• (1) Participation by the local community in the affairs of the municipality must take place through-

• (a) political structures for participation in terms of the Municipal Structures Act;

• (b) the mechanisms, processes and procedures for participation in municipal governance established in terms of this Act;

• (c) other appropriate mechanisms, processes and procedures established by the municipality;

• (d) councillors; and • (e) generally applying the provisions for participation as provided

for in this Act.

• (2) A municipality must establish appropriate mechanisms, processes and procedures to enable the local community to participate in the affairs of the municipality, and must for this purpose provide for-

• (a) the receipt, processing and consideration of petitions and complaints lodged by members of the local community;

• (b) notification and public comment procedures, when appropriate; • (c) public meetings and hearings by the municipal council and other

political structures and political office bearers of the municipality, when appropriate;

• (d) consultative sessions with locally recognised community organisations and, where appropriate, traditional authorities; and

• (e) report-back to the local community.

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• (3) When establishing mechanisms, processes and procedures in terms of subsection (2) the municipality must take into account the special needs of-

• (a) people who cannot read or write; • (b) people with disabilities; • (c) women; and • (d) other disadvantaged groups. • (4) A municipal council may establish one or more advisory

committees consisting of persons who are not councillors to advise the council on any matter within the council's competence. When appointing the members of such a committee, gender representivity must be taken into account.

• 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 cognisance if there are people who have special needs like people who cannot read, disabled, and other disadvantaged people

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

DEVELOPMENT PLANNING

• 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.

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• Legislation requires that municipal planning must be done in cooperative 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.

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Key deadlines-process plan MFMA

• Budget preparation process • 21. (1) The mayor of a municipality must— • (a) co-ordinate the processes for preparing the annual budget and for

reviewing • the municipality’s integrated development plan and budget-related

policies to • ensure that the tabled budget and any revisions of the integrated

development • plan and budget-related policies are mutually consistent and credible; • (b) at least 10 months before the start of the budget year, table in the

municipal • council a time schedule outlining key deadlines for—

• Therefore before end of August


Possible methods

• Invite to register & keep data base

• Ward committees

• Village committees

• Street committees

• Community based planning

• IDP representative forum

• Community Development Workers & Ward clerks

• Annual Report

• Surveys

• Newsletters, posters, adverts, banners 25

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• Describe your municipality’s participatory

framework in the strategic planning process

• Is it in line with the requirements of the

Municipal Systems Act, 2000?

• What are its shortcomings?


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Session 08.15 to 10.00 Slides 87- 129

US 116358 Unit 3: Identify key performance areas applicable to institutional strategies as required by the local government legislative framework

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1. You should be able to identify key

performance areas applicable to institutional

strategies as required by the local

government legislative framework;

2. Align them with vision and mission;

3. Evaluate them in terms of institutional

arrangements

Unit 3: Identify KPAs applicable to institutional strategies as required by the local government legislative framework

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2. Introduction:

• The purpose of IDP: to ensure that the resources available to the Municipality are directed at the delivery of projects and programmes that meet agreed development priorities

• It is important to check that:

– The delivery is happening in the planned manner

– The municipality is using its resources most efficiently

– It is producing the envisaged quality

– The delivery is having the planned effect on the lives of the people in the municipality

• Plan, monitor, evaluate, measure and review performance against targets set


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SFA Strategic Focus Area DO Diretorate Objective

1 AN OPPORTUNITY CITY

1.1 Create an enabling environment to attract investment to generate economic growth and job creation

1.2 Provision and maintenance of economic and social infrastructure to ensure growth-led infrastructure development

1.3 Ensure mobility through the implementation of an effective public transport system

1.4 Leveraging the city’s assets to drive economic growth and sustainable development

1.5 Maximise the use of available funding and programmes for training and skills development

2 A SAFE CITY

2.1

Expanding staff and capital resources in the policing departments and emergency services in order to provide improved services to all, especially the most vulnerable communities

2.2 Resourcing of Departments in Pursuit of Optimum Operational Functionality

2.3 Improved efficiency through information and technology driven policing

2.4 Improve efficiency of policing and emergency staff through effective training

2.5 Improve safety and security through partnerships

3 A CARING CITY

3.1 Providing access to social services to those that need them

3.2 Promote a sustainable environment through the efficient utilisation of resources

3.3 Providing services to all the citizens of the city

3.4 Ensure innovative human settlements for increased access to those that need them

3.5 Assess the possible sale/transfer/transaction of rental stock to clearly identified beneficiaries within established criteria.

3.6 Provide for the needs through improved services in informal settlements and backyard residences

3.7 Provision of effective Environmental Health services

3.8 Provision of effective Air Quality Mngt & Pollution (incl noise) Control Programmes

3.9 Provision of effective Primary Health Care services

3.10 Provision of Substance Abuse Outpatient Treatment and Rehabilitation services

4 AN INCLUSIVE CITY 4.1

Ensure responsiveness by creating an environment where citizens can be communicated with and be responded to

4.2 Provide facilities where citizens can feel at home with

5 A WELL-RUN CITY 5.1 Ensure a transparent and corruption-free government

5.2 Establish an efficient and productive administration that prioritizes delivery

5.3 Ensure financial prudence with clean audits by the Auditor General

Key performance areas

Area in which the munic plays a role towards delivering services;

Development priorities and objectives clustered in respect of the following key performance areas:

• Municipal Transformation and Organisational Development

• Infrastructure Development and Basic Service Delivery

• Local Economic Development

• Municipal Financial Viability and Management

• Good Governance and Public Participation


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Key performance indicators

Municipal Systems Act, 2000:

• measurable, relevant, objective and precise

• and communities must be involved in their formulation


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• 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).

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• 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 performance indicators must be reviewed within a month of the adoption of the amendment.

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• 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.

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3. Translation of community needs into key performance areas (1)

Community needs can be identified through:

• Direct input from the community through area forums, ward committees or mayor’s listening campaigns

• Input from special interest groups through summits and conferences

• Indirect input through quality-of-life surveys and opinion polls

• As identified during Unit 2


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Section 73 of the Municipal Systems Act, 2000 requires that municipalities give effect to the provisions of the Constitution and:

• give priority to the basic needs of the local community

• promote the development of the local community

• ensure that all members of the local community have access to at least the minimum level of basic municipal services


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Municipal services must:

• be equitable and accessible

• economic, efficient and effective use of available resources

• the improvement of standards of quality over time

• be financially sustainable

• be environmentally sustainable

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


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• The DPLG framework for municipal indigent policy draft 2 (and amended); of 24 October 2004 provides the following from the Constitution as basic necessities, which forms the basis of service delivery in municipalities. They are:

• sufficient water; • basic sanitation; • refuse removal in denser settlements; • environmental health; • basic energy; • health care; • housing; and • food and clothing

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• 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.

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KEY PERFORMANCE AREAS WITHIN A MUNICIPALITY’S

VISION AND MISSION STATEMENTS • 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

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KEY PERFORMANCE AREAS WITHIN A MUNICIPALITY’S

VISION AND MISSION STATEMENTS • 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:

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4. Key performance areas All IDP components translated into clear and tangible objectives

Financial Manager Example

National Key Performance Area Municipal Financial Viability & Management

Strategic Objectives To ensure ABC Municipality remains financially viable

Municipal (Local) Key Performance Areas Financial Viability

Departmental Objectives Ensure general financial viability

Projects/Programmes Debt collection

Key Performance Indicators Debt coverage=(B-C)/D B=total operating revenue received C=operating grants D=debt service payments

Target 5

Risk Insufficient cash


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Financial Manager Example

National Key Performance Area Municipal Financial Viability & Management

Strategic Objectives To ensure ABC Municipality remains financially viable

Municipal (Local) Key Performance Areas Financial Viability

Departmental Objectives Ensure general financial viability

Projects/Programmes Debt collection

Key Performance Indicators % of arrear/outstanding debt recovered

Target 25%/ R 20 m

Risk Insufficient cash, cash flow problems


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Director: Technical Services Example

National Key Performance Area Infrastructure Development & Basic Service Delivery

Strategic Objectives Infrastructure Development

Municipal (Local) Key Performance Areas Water Provision

Departmental Objectives To obtain Blue Drop Status

Projects/Programmes Water Purification

Key Performance Indicators DWA Assessment Result

Target 95%

Risk Unsafe drinkable water


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Activity Example

National Key Performance Area Good Governance & Public Participation

Strategic Objectives Ensure Public Participation ito legislation

Municipal (Local) Key Performance Areas Democracy & Governance

Departmental Objectives To conduct IDP Road Shows in all 52 wards to ensure all needs of the community are prioritised and attended to

Projects/Programmes Programme Management

Key Performance Indicators No of IDP Roads Shows

Targets 52

Risk Non-compliance


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4. Key performance areas

Key performance areas

Key performance indicators

• Specific

• Measurable

• Achievable

• Realistic

• Time-framed


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EVALUATION OF KEY PERFORMANCE AREAS IN TERMS

OF INSTITUTIONAL ARRANGEMENTS • 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).

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• 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.

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FRAMEWORK FOR IDENTIFYING KEY PERFORMANCE AREAS

• 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.

• 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.

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• 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:

• Municipal Transformation and Organisational Development.

• Infrastructure Development and Basic Service Delivery.

• Local Economic Development (LED).

• Municipal Financial Viability and Management.

• Good Governance and Public Participation.

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CONSULTATIVE PROCESSES WITH COMMUNITY STAKEHOLDERS FOR

PRIORITISING KEY PERFORMANCE AREAS

• 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 on-going consultation program, municipality’s focus should be to identify and resolve concerns and issues with the community stakeholders.

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ENGAGING OTHER SPHERES OF GOVERNMENT

• There are different ways to engage other spheres of government in the evaluation of key performance areas.

• 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.

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• 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:

• 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.

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5 Evaluation of key performance areas i.t.o. institutional arrangements

• Framework for identifying KPA’s

5 National KPA’s

– Organisation

– Department

– Section

– Individual

• Consultative processes

• Engaging other spheres of government


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p34


• Identify KPAs in your municipality

• Describe how the KPAs are aligned with your institutional strategies as required by legislative framework

• Describe how these KPAs are aligned with vision and mission statements

• Outline process to evaluate KPAs in terms of institutional arrangements

• Assess the performance indicators


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US 116358 Unit 4: Formulation of Institutional Strategies

1. You should be able to apply participatory processes to inform institutional strategy; evaluate the economic, social and environmental context of a municipality when weighing alternative strategies; identify institutional strategies in alignment with national and provincial plans and programmes; develop programmes to align service delivery activities to institutional strategies

2. Legislation informs relevance of stakeholder consultation in municipal strategy

Unit 4: Formulation of institutional strategies

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3. Mechanisms for the involvement of key municipal partners and stakeholders in the formulation of strategies • Generic arrangements:

– Institutionalise public participation

– Structured participation to specify who, on behalf of whom, which issues, through which organisational mechanisms, to what effect

• Participation not equally relevant in each stage of planning, not all procedures equally suitable

• Elected Council ultimate decision-making forum on IDPs – participation to inform, negotiate, comment on planning decisions


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3. Mechanisms for the involvement of key municipal partners and stakeholders in the formulation of strategies • Participatory democracy – the stakeholders

– IDP representative forum

– Municipal manager or IDP manager

– IDP Steering Committee

– Project, programme & sectoral task teams

– EXCO/Executive Mayor/committee manage drafting of IDP, assign responsibilities to the municipal manager, submit plan for adoption


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3. Mechanisms for the involvement of key municipal partners and stakeholders in the formulation of strategies • Participatory democracy – the stakeholders continued

– Municipality to prepare, decide on, adopt process plan, do overall management of planning process, ensure inclusion of stakeholders

– Municipality to ensure formulation is relevant for key development priorities, national and provincial sector planning requirements met.

– Municipality through council, adopt and approve IDP and amend, ensure budget and annual operational plans are linked to IDP


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• 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 municipality for adoption.

• 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.

• 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.

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4. Identifying municipal strategies

Factors determining municipal strategies:

• Priority issues or challenges of the local community

• Developmental objectives of the municipality

• Developmental opportunities and strengths

• Developmental weaknesses and threats

• Available and accessible resources

• Municipal vision and mission statements

• National and provincial development plans


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4. Identifying municipal strategies

• Strategies to be appropriate for addressing challenges of community

• Strategies to be goal oriented to advance development objectives to achieve vision progressively

• Strategies determined similar to KPAs, only shift in focus:

– KPAs issues that municipality must direct its resources towards

– Strategies are means through which resources are deployed

– Strategic objectives the outcome or impact on society


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5. Develop programmes that align to municipal strategies • Work out clear details of the programmes:

– Who is going to benefit it?

– How much is it going to cost?

– How is it going to be funded?

– How long would it take to complete?

– Who is going to manage the programmes?

• Set clear targets and work out indicators for measuring performance and impact of individual projects

• Once all programmes have been identified, check for alignment again with strategic objectives

• All aligned with, contributing to IDP


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p40


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• Outline institutional strategies in your municipality

• Formulate participatory structures and roles per structure in these institutional strategies

• Describe how these institutional strategies are aligned to legislative framework

• Describe how these institutional strategies are aligned with vision and mission statements


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• Session 10.30 – 13.00

• Slides 131-218

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US 116358 Unit 5: Legislative framework for integrated development planning and apply requirements of legislation

1. You should be able to demonstrate knowledge of legislative framework for IDP and apply legislative requirements, interpret legislative prerequisites for adoption of IDP; identify core components of an IDP

Unit 5: Legislative framework for integrated development planning and application of requirements of legislation

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2. Introduction

• 1992 Earth Summit in Rio, agreement on global sustainable development Agenda 21, all countries adopted it

• Roots of all the problems in local activities – only truly addressed by local participation

• Local Agenda 21 for improved, innovative use of resources. Local Agenda 21 must suit local context

• IDP one approach to Local Agenda 21


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Introduction (continued)

• Subsequently, all 180 nations adopted Local Agenda 21, which translates the Agenda 21 action plan for sustainable development into a participatory, multisectoral process to achieve the goals of Agenda 21 through a programme of actions at a local level.

• 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 cooperation of local role players through local participatory planning and development processes.

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• Although each local community determines the priorities, policies and actions of their respective 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:

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• It must: • address economic, social, and ecological needs in an

integrated way; • include a shared vision for a long term sustainable

future; • include participatory process with all local role-players

including communities, • interest groups, and the private and public sectors; • establish stakeholder groups, forum or equivalent

multi-sectoral community • groups to oversee the process; • prepare an action plan with concrete targets; • establish a monitoring and reporting framework; and • establish indicators to monitor progress.

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• Integrated Development Planning is one of the many varied approaches to Local Agenda 21 across the world.

• This study unit endeavours to describe the South African response to the internationally acclaimed programme. It does so by;

• discussing the policy and legislative framework of South Africa to the challenges

• of sustainable development; • discussing core components of an Integrated

Development Plan; • describing the process to complete an Integrated

Development Plan; • describing the process for reviewing Integrated

Development Plans.

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3. Legislative and policy framework for IDP

• Important theme in most major SA policies and legislation since 1994, also in Constitution is sustainable development, development that is people-centred, environmentally sound and participatory in nature


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4. Policy framework

• White Paper on Local Government, 1998

• Urban Development Strategy, 1995

• National Environment Management Act, 1998

• White Paper on Spatial Planning and Land Use Management, 2001


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Policy Framework

• RDP

• GEAR

• White Paper on Local Government

• Urban Development Strategy (1995)

• NEMA Act 107 of 1998

• White Paper on Spatial Planning & Land Use Management (2001)

• ASGISA (2006)

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5. Legislative framework for Integrated Development Planning

• Constitution

• Municipal Systems Act, 2000 Chapter 5

• Development Facilitation Act, 1995

• National Environment Management Act, 1998


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Batho Pele


AND


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The National Development Plan is a plan for the country to eliminate poverty and reduce inequality by 2030 through uniting South Africans, unleashing the energies of its citizens, growing an inclusive economy, building capabilities, enhancing the capability of the state and leaders working together to solve complex problems



High-level objectives to be achieved by 2030

• Reduce the number of people who live in households with a monthly income below R419 per person (in 2009 prices) from 39 % to zero

• Reduce inequality, as measured by the Gini coefficient, from 0.69 to 0.60


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Enabling milestones (1) • Increase employment from 13 million in 2010 to 24 million in 2030.

• Raise per capita income from R50 000 in 2010 to R120 000 by 2030.

• Increase the share of national income of the bottom 40% from 6% to 10%.

• Establish a competitive base of infrastructure, human resources and regulatory frameworks.

• Ensure that skilled, technical, professional and managerial posts better reflect the country's racial, gender and disability makeup.

• Broaden ownership of assets to historically disadvantaged groups.



Enabling milestones (2) • Increase the quality of education so that all children have at least two

years of preschool education and all children in grade 3 can read and write.

• Provide affordable access to quality health care while promoting health and wellbeing.

• Establish effective, safe and affordable public transport.

• Produce sufficient energy to support industry at competitive prices, ensuring access for poor households, while reducing carbon emissions per unit of power by about one-third.

• Ensure that all South Africans have access to clean running water in their homes.

• Make high-speed broadband internet universally available at competitive prices.


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Enabling milestones (3) • Realise a food trade surplus, with one-third produced by small-scale farmers or

households.

• Ensure household food and nutrition security.

• Entrench a social security system covering all working people, with social protection for the poor and other groups in need, such as children and people with disabilities.

• Realise a developmental, capable and ethical state that treats citizens with dignity.

• Ensure that all people live safely, with an independent and fair criminal justice system.

• Broaden social cohesion and unity while redressing the inequities of the past.

• Play a leading role in continental development, economic integration and human rights.



Critical actions (1) 1. A social compact to reduce poverty and inequality, and raise employment

and investment.

2. A strategy to address poverty and its impacts by broadening access to employment, strengthening the social wage, improving public transport and raising rural incomes.

3. Steps by the state to professionalise the public service, strengthen accountability, improve coordination and prosecute corruption.

4. Boost private investment in labour-intensive areas, competitiveness and exports, with adjustments to lower the risk of hiring younger workers.

5. An education accountability chain, with lines of responsibility from state to classroom.


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Critical actions (2) 6. Phase in national health insurance, with a focus on upgrading public health facilities, producing more health professionals and reducing the relative cost of private health care.

7. Public infrastructure investment at 10 percent of gross domestic product (GDP), financed through tariffs, public-private partnerships, taxes and loans and focused on transport, energy and water.

8. Interventions to ensure environmental sustainability and resilience to future shocks.

9. New spatial norms and standards – densifying cities, improving transport, locating jobs where people live, upgrading informal settlements and fixing housing market gaps.

10. Reduce crime by strengthening criminal justice and improving community environments.


The Process for IDP Adoption

• 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.

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• The adoption of the IDP framework binds both the district municipalities and the local municipalities in the relevant area of jurisdiction of the particular district.

• At the very least, the framework must: • 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;

• identify the matters to be included in the IDP of the district and local municipalities that require alignment;

• specify the principles to be applied and coordinate the approach to be adopted in respect of the alignment of IDP matters;

• 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.

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• 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 municipality.

• 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.

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• The council must use its existing community participation mechanism to:

• communicate regularly with stakeholders and communities regarding the evolving IDP;

• receive comments and input from stakeholders and communities; and

• use community input in the drafting process. • 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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• Initiate a sustainable development awareness-raising process, targeting councillors, officials, community members, and stakeholder groupings, prior to the development of the IDP.

• Adopt an issue driven approach and engage communities on the level of living conditions as opposed to engaging them on desired projects.

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• 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.

• 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 drafting of the IDP, must assign responsibilities to the municipal manager in the IDP process and must submit the draft plan to the municipal council for adoption by council.

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• Further monitoring and support to the process of integrated planning is provided for in that the MEC for local government in the province may:

• monitor the process followed by a municipality;

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

• facilitate co-ordination and alignment of the IDPs of different municipalities and the strategies and programmes of national and provincial organs of state.

• 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.

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• After an IDP has been adopted or amended, the municipal 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/amendment 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.

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• 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.

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IDP CORE COMPONENTS

• The Municipal Systems Act lists the core components of the IDP, without which the plan cannot be legally adopted. These components are:

• The vision for the long term development of the municipality, with special emphasis on the municipality’s most critical development and internal transformation needs;

• 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;

• The council’s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs;

• 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;

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• A spatial development framework which must include the provision of basic guidelines for a land use management system for the municipality;

• The council’s operational strategies; • Applicable disaster management plans; • A financial plan, which must include a budget

projection for at least the next three years; and • A set of key performance indicators and

performance targets.

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7. The IDP review process

• Definition of review in Systems Act means process to assess, evaluate IDP in terms of municipality’s performance and changing circumstances

• IDP thus not cast in stone

• Review required by Section 34 of Systems Act – assess performance against objectives, and implementation and in consideration of new information, changed circumstances

– Review annually with assessment of performance (Section 41)

– To extend that changing circumstances so demand

– May amend IDP in accordance with prescribed process

– Necessitates contingency planning, continuous review to ensure flexibility without losing sight of vision, long term development objectives


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7. The IDP review process

The purpose:

• 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:

– the delivery is implemented in the planned manner

– the municipality is utilising its resources most efficiently

– the delivery standards meet the desired quality

– the delivery impacts positively on the lives of the people in the municipality

– to inform budgeting

– to analyse shortcomings in the original document and incorporate improvements in the review


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• 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:

• make immediate and appropriate changes in delivery and management of resources;

• identify and address major and systematic blockages; and • guide future planning on developmental objectives and

resource use. • Achieving this requires pro-active oversight and

management through the performance management system and undertaking annual reviews of the IDP.

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Critically analyse IDP document with reference to: • Legislation, highlighting any exclusions

• Key performance areas and key performance indicators

• IDP core components


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US 116358 Unit 6: Formulate programs and develop methods for monitoring the implementation of a strategic plan and related programmes

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Introduction

• Reviewing of IDP’s annually in accordance with an Assessment of Performance Measurements and changing Circumstances

• Sect 41 of Systems Act

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The Establishment and Development of Performance Management Systems

(MSA Requirement)

• Establish a Performance Management System that is commensurate with Resources, best suited to Circumstances & in line with Priorities, Objectives & Targets in the IDP

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• Specific responsibility has been placed on the executive committee or executive mayor, whichever is applicable to:

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

• assign certain responsibilities of the system to the municipal manager;

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

• All municipalities must further establish mechanisms to monitor and review their performance management system.

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The Core Components and Community Involvement in Municipal Performance • 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:

• 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;

• setting measurable performance targets for each of the development priorities and objectives;

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• monitoring performance and measuring and reviewing performance at least once a year against the development priorities and KPIs;

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

• 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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• 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.

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The Setting of Key Performance Indicators & the Audit of Performance

Measurements

• Minister for Local Government – by regulation, may prescribe general Key Indicators that can be applied to Local Government

• Minister may review and adjust KPI’s

• Municipalities must inform public

• Results must be audited

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Requirements regarding Reports on the PMS and the making of Regulations

& Guidelines

• Apart from PMS muni. must prepare Annual Report consisting of inter alia a Performance Report;

• Performance of muni and ext service providers • Comparison to targets and previous years • Measures to improve performance • Annual Performance Report to form part of Municipality’s Annual

Report-Chapter 12 of MFMA • Consolidated Report by MEC in Province, on Performance of

Municipalities in Province • Report be published in Prov Gazette

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Creating and Maintaining an Effective System of Municipal Performance

Management

• Identify & Prioritise Areas where Performance Improvement is most required-ext development priorities and internal transformation needs

• National Gov to assist with common performance areas and Performance Assessment-result in PEM economy, efficiency and effectiveness

• Six Core Elements

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Unit 6: Formulate programs and develop methods for monitoring the implementation of a strategic plan and related programmes

Creating and maintaining an effective system of municipal performance management

Six core elements:

• Performance measurement

• Performance monitoring and evaluation

• Performance reporting

• Capacity building

• Intervention

• Performance incentives

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Implementing performance management (1)

Phase One - Starting the PMS Process

Step 1: Delegation of responsibilities

Step 2: Setting up internal responsibilities

Step 3: Managing the change process


Implementing performance management (2)

Phase Two - Developing a PMS Step 1: Current reality Step 2: Identification of stakeholders Step 3: Structures for stakeholder participation Step 4: Develop the system (model & framework) Step 5: Publication of the system Step 6: Adoption of the system


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Implementing performance management (3) Phase Three – Implementing the PMS Step 1: Planning (IDP) Step 2: Priority setting (IDP) Step 3: Setting objectives Step 4: Setting key performance indicators (KPI) Step 5: Developing a monitoring framework (Intervals) Step 6: Designing a performance measurement framework (Targets/dates) Step 7: Conducting performance reviews (Quarterly) Step 8: Improving performance (Continuously) Step 9: Reporting on performance (Quarterly) Step 10: Using performance audit mechanisms (PA Committee) Step 11: Organisational performance (Model linking all indicators)


The PMS indicators (the original)

1. The % of households - access to basic services

2. The % of households (R1100) - access to free basic services

3. The % of a municipality’s capital budget spent on capital projects i.t.o. IDP

4. The number of jobs created - LED

5. Employment equity - three highest levels of management in municipality

6. The % of budget actually spent on workplace skills plan

7. Financial viability

Unit 6: Formulate programs and develop methods for monitoring

the implementation of a strategic plan and related programmes

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X

X

X

X

X

X

X Review

X Reporting

X Auditing

X Monitoring

X Setting targets

X Indicators

Framework

System

Pe

rfo

rma

nce

D

ime

nsio

ns

Cycle of processes

The framework and the model

The Balanced Scorecard – the basic

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The Balanced Scorecard – another

PERFORMANCE MEASUREMENT:

• 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.

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• 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.

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PERFORMANCE, MONITORING AND EVALUATION

• 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 on-going 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.

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PERFORMANCE REPORTING

• 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.

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CAPACITY BUILDING

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

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INTERVENTION

• 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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PERFORMANCE INCENTIVES

• 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.

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Implementing Performance Management

• 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 fulfil 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:

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• (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.

• (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.

• (Step 3) A municipality will then have to evaluate its performance and take steps to improve performance when targets are not being met.

• (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.

• (Step 5) Each municipality will be expected to report on these areas through the prescribed national indicators and targets.

• (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.

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

access to clean drinking water.

• 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.

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• 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.

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KPIs:

• The percentage of households that do not have access to water (measure growth)

• The bacterial count in water (measure quality of water);

• Average time spent by community members (measure impact of scheme on community to bring water to their houses)

• Percentage of households paying for services (measure sustainability and financial impact).

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TARGETS:

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

• To ensure that quality of water is up to standard

• To reduce travel time for community to fetch water

• To ensure measures are taken to service payment collections better

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Under the third step, the municipality evaluate performance and take steps to improve performance

when targets are not met. Measurement mechanism can include:

• Keeping data of households with water;

• Testing water quality regularly;

• Surveying residents’ activities and the implementation of a proper billing and credit control system.

• Finally, the municipality must report on its performance management in each area as is required by law.

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Service Delivery Budget Implementation Plan

The purpose:

• provide a management implementation and monitoring tool that will assist the Mayor, Councillors, Municipal Manager, other Senior Managers and the community in monitoring service delivery

The essential components:

– Monthly Projections of Revenue to be collected for each source

– Monthly Projections of Expenditure (Operating and Capital) and revenue for each vote

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Service Delivery Budget Implementation Plan ... the monitoring

• The execution of the budget

• The performance of managers

• The performance of individual departments

• The performance of the municipality as a whole

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SDBIP

• To be reviewed MFMA

• NT key components

• Monthly projections per source

• Quarterly projections of targets and KPI’s

• Ward info

• Capital works plan detail

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Service Delivery Budget Implementation Plan ... the components

• Annual projections of revenue to be collected for each source

• Annual projection of expenditure (operating and capital) and revenue

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Service Delivery Budget Implementation Plan ... the roles and responsibilities

• The Mayor

• The Accounting Officer

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PURPOSE

• The purpose of this plan is to provide a management implementation and monitoring tool that will assist the Mayor, Councillors, Municipal Manager, other Senior Managers and the community in monitoring service delivery. It should help to ensure that appropriate information is available to monitor.

• The execution of the budget; • The performance of managers; • The performance of individual departments; and • The performance of the municipality as a whole.

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LEGISLATIVE INTERPRETATION

• 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.

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Budget and SDBIP • 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(considered?) by Council at least 30 days before the start of the budget year.

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Strategic Development Programmes

• Social & Economic Development

• Institutional Development

• Democracy & Governance

• Infrastructure Development

• Financial Management

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Components of SDBIP

• Annual Projections of Revenue to be collected for each source

• Annual Projection of Expenditure (Operating & Capital) & Revenue

• LED & IDP Projects

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Quarterly Projections of Service Delivery Targets & Performance Indicators

• Detailed Capital Works Plan broken down by Wards

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Roles & Responsibilities in Context of SDBIP

• Role of the Mayor

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• 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:

• Provide general political guidance over the budget process and the priorities that guide the budget process (Section 53(1));

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

• Oversee Accounting Officer and CFO; • Ensure adherence to the time schedule for budget; • Ensure that the SDBIP is approved (by the Mayor) within 28

days after the approval of the budget; • 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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Role of the Accounting Officer in respect of SDBIP

• In terms of Sections 68 & 69 of the MFMA, the responsibilities of the Accounting Officer

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• Assist the Mayor to perform budgetary functions and provide the Mayor with administration support, information and resources;

• Implement the budget; • 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;

• Ensure that revenue and expenditure is properly monitored;

• Prepare adjustments budget when necessary; and • Submit draft SDBIP and drafts annual performance

agreements for the municipal manager and all senior managers.

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Group 1 Group 2 Group 3 Group 4

Summarise chapters 1,2,3 & 4 of the National Development Plan and indicate which strategies your municipality should include in its IDP to ensure that the objectives of the NDP are achieved in not more than ten slides

Summarise chapters 5, 6, 7 & 8 of the National Development Plan and indicate which strategies your municipality should include in its IDP to ensure that the objectives of the NDP are achieved in not more than ten slides

Summarise chapters 9, 10 & 11 of the National Development Plan and indicate which strategies your municipality should include in its IDP to ensure that the objectives of the NDP are achieved in not more than ten slides

Summarise chapters 12, 13, 14 & 15 of the National Development Plan and indicate which strategies your municipality should include in its IDP to ensure that the objectives of the NDP are achieved in not more than ten slides

• What is your role and responsibility with regards

to the SDBIP?

• And your Department? Division? Unit?

• Describe key areas in creating and maintaining

an effective system of municipal performance

management

• Identify a strategy, its KPIs and targets in your

municipality


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• Len Mortimer 082 4188 909

• Melissa Snyders 021 918 4033

• [email protected]

• www.splshortcourses.co.za

Thank you ……

Len Mortimer

mailto:[email protected]

http://www.splshortcourses.co.za/

unit standard 116358: contribute to the strategic planning

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