The transparent, innovative and developmental municipality
that improves the quality of life of its people
PERFORMANCE REPORT
THIRD(3) QUARTER
2014/15
TABLE OF CONTENTS
1. PURPOSE OF THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN (SDBIP)
2.Background
Institutional Framework
3.Monitoring and Evaluation
4.Strategic Focus of Local Government
5. Financial Plan
SERVICE DELIVERY TARGETS AND PERFORMANCE INDICATORS
KPA :1.1. MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
1.2 Analysis for Early Warning for Municipal Transformation and Institutional Development
KPA. 2.1. BASIC SERVICE DELIVERY
2.2Analysis for Early Warning for Basic Service Delivery
KPA 3.1. LOCAL ECONOMIC DEVELOPMENT
3.2Analysis for Early Warning for Local Economic Development
KPA 4.1. GOOD GOVERNANCE AND PUBLIC PARTICIPATION
4.2Analysis for Early Warning for Good Governance and Public Participation
KPA 5.1. MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT
5.2Analysis for Early Warning for Municipal Financial Viability and Management
1. PURPOSE OF THE SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN (SDBIP)
The Service Delivery and Budget Implementation Plan (SDBIP) 2014/15 is a detailed plan for implementing the delivery of services and the budget for the 2014/15 financial year according to the Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003). It is based on the Council approved revised IDP and MTREF. The SDBIP therefore serves as a contract between the administration, Council and the community expressing the goals and objectives set by the Council as quantifiable outcomes that can be implemented by the administration over the next twelve months. The SDBIP facilitates the process of holding management accountable for their performance. It provides the basis for measuring performance in the delivery of services. The said Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003) requires the following to be included in the SDBIP of a municipality:
a) Monthly projections of revenue to be collected for each source
b) Monthly projections of expenditure (operating and capital) and revenue for each vote
c) Quarterly projections of service delivery targets and performance for each vote
d) Ward information for expenditure and service delivery
e) Detailed capital works plan allocated by ward over three years.
2.Background
The said Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003) prescribes that each municipality must compile a SDBIP. The mayor of the municipality is required to approve the SDBIP within 28 days after the approval of the budget and table the same at a municipal Council meeting, and make the document public no later than 14 days after approval of the information.
The National Treasury MFMA Circular No 13 further states that the SDBIP is a layered plan - once the top layer targets have been set as in this document, the various departments of the municipality develop the next lower level.
The organisation of the SDBIP is in terms of the prescribed Key Performance Areas:
- Basic Service Delivery
- Municipal Institutional Development and Transformation
- Local Economic Development (LED)
- Municipal Financial Viability and Management
- Good Governance and Public Participation.
The Context of the SDBIP
Municipal strategic planning forms an integral part of the municipality’s annual IDP review and alignment and budget preparation processes. In turn these processes, in essence, are part of the broader system of performance management within the municipality.
The following figure illustrates the link between and the sequence from the IDP, strategic planning, budget, SDBIP, PMS up to the annual report.
Performance Management System
Chief Albert Luthuli Local Municipal Council has approved a Performance Management Framework System (PMSF) during the 2014/2015 financial year. The PerformanceManagement System provides for quarterly and mid-year performance reporting and reviews on the implementation of the SDBIP.
Performance Management System is a systematic approach that aligns performance at all levels of an organisation to achieve strategic objectives. It uses measurements to understand, predict, and improve organisational performance. The three major components in a typical performance Management System are an integrated set of key performance indicators (KPIs) linked to the strategic objectives of the organization.
Targets are set for each KPA. Informed by Key Performance Indicators (KPI) which are meant to quantify objectives to make them measurable, which is an easy way to navigate service delivery and to determine if Strategic Objectives were realised or achieved .
Reasons for implementing the PMS include the following:
- What gets measured gets done
- People will do what they are measured and rewarded to
Institutional Framework
Performance Management follows a process with the following activities:
(1)Planning
Planning entails the process of balanced scorecard design and target setting [Service Delivery and Budget Implementation Plans (SDBIP)]. The planning process is informed by the IDP. The performance plan should be finalised at the latest by the 30th of June so that when the new financial year starts, the performance plan can then be implemented.
Measuring
Performance measurement refers to the use of performance indicators to assess and present the performance level of the municipality. Measurement will entail the following
- Collection of actual performance data
- Verification of the accuracy of the data
- Validation of the data with supervisor
- Entering the data in the balanced scorecard reporting table
(2)Review
Identify strengths, weaknesses, opportunities, and threats
- Review the Key Performance Indicators
- Allow community participation
As part of the review process, the scorecard (SDBIP) should be audited by the Performance Audit Committee.
The audit must include assessments of the functionality of the municipality’s performance Management System, whether the performance Management System complies with the Act, the extent to which the municipality’s performance measurements are reliable in measuring performance of the municipality’s indicators
Monitoring, Reporting and Review
Monitoring entails a continuous assessment of how the municipality is performing against the set targets. Monitoring will enable the municipality to know in advance whether the targets will be achieved or not, and as a result, put in place corrective measures (if applicable) to ensure that the targets are met.
On the other hand, reporting refers to the process of communicating how well the municipality has performed. To this end, performance reports are prepared, submitted to the relevant structure or body and a discussion is held.
The balanced scorecard (SDBIP) will be reviewed once a quarter. Four performance reports should be produced in a year, one every quarter.
The Performance Audit Committee will review the performance reports at least twice a year. At the end of the financial year, an annual performance review will be undertaken to review performance over the entire year. The results of this review will form part of the Annual Report as well as serve as the basis for determining the amount of bonus to be paid (where applicable).
3.Monitoring and Evaluation
Chief Albert Luthuli Local Municipal Council has approved a Performance Management Framework System (PMSF), which provides for System during the 2014/2015 financial year. The Performance Management System provides for quarterly and mid-year performance reporting and reviews on the implementation of the SDBIP.
4.Strategic Focus of Local Government
In January 2010, Cabinet adopted twelve outcomes within which to frame service delivery priorities and targets as per National Treasury MFMA Circulars No 54 and 55.
The key focus areas and service delivery targets for the year 2014/2015 are outlined in the following sections of this plan.
(1)Improve the quality of basic education
Participating in needs assessments
Identifying appropriate land
Facilitating zoning and planning processes
Facilitate the eradication of municipal service backlogs in schools by extending appropriate bulk infrastructure and installing connections
Facilitate the eradication of municipal service backlogs in schools by extending appropriate bulk infrastructure and installing connections.
(2)Improve health and life expectancy
This function was transferred to province, the municipality only deals with awareness
Strengthen effectiveness of health services by specifically enhancing TB treatments and expanding HIV and AIDS prevention and treatments
Municipalities must continue to improve community health
Serve infrastructure by providing clean water, sanitation, and waste removal services.
(3)All People in South Africa protected and feel safe
Facilitate the development of safer communities through better planning and enforcement of municipal by-laws
Direct traffic control function towards policing high risk violations rather than revenue collection
Metro / municipal police services should contribute by:
-Increasing police personnel;
-Improving collaboration with SAPS;
-Ensuring rapid response reported crimes.
(4)Decent employment through inclusive economic growth
Create an enabling environment for investment by streamlining planning application processes
Ensure proper maintenance and rehabilitation of essential services infrastructure
Design service delivery processes to be labour intensive
Improve procurement systems to eliminate corruption and ensure value for money
Utilize community structures to provide services.
(5)A skilled and capable workforce to support inclusive growth
Develop and extend intern and work experience programs in Municipalities
Link municipal procurement to skills development initiatives.
(6)An efficient, competitive, and responsive economic infrastructure network
Ring-fence water, electricity and sanitation functions so as to facilitate cost reflecting pricing of these services
Ensure urban spatial plans provide for communal rail corridors, as well as other modes of public transport
Maintain and expand water purification works and wastewater treatment works in line with growing demand.
(7)Vibrant, equitable, and sustainable rural communities and food security
Facilitate the development of local markets for agricultural produce
Improve transport links with urban centres so as to ensure better economic integration
Promote home production to enhance food security
Ensure effective spending of grants for funding extension of access to basic services.
(8)Sustainable human settlements and improved quality of household life
Develop spatial plans to ensure new housing developments are in line with national policy on integrated human settlements
Participate in the identification of suitable land for social housing
Ensure capital budgets are appropriately prioritized to maintain existing services and extend services.
(9)A responsive and accountable, effective and efficient local government system
Adopt IDP Planning processes appropriate to the capacity and sophistication of the Municipality
Implement the community work program
Ensure Ward Committees are representative and fully involved in community consultation processes around the IDP, budget and other strategic service delivery issues
Improve Municipal financial and administrative capacity by implementing competency norms and standards and acting against incompetence and corruption.
(10)Protection and enhancement of environmental assets and natural resources
Develop and implement water management plans to reduce water losses
Ensure effectiveness, maintenance and rehabilitation of infrastructure
Ensure proper management of municipal commonage and urban open spaces
Ensure development does not take place on wetlands.
(11)A better South Africa, a better and safer Africa and world – better Local Municipality
Role of local government is fairly limited in this area Thus we concentrate on:
-Ensuring basic infrastructure is in place and properly maintained
-Creating an enabling environment for investment.
(12)A development orientated public service and inclusive citizenship
Continue to develop performance monitoring and Management Systems
Comply with legal financial reporting requirements
Review municipal expenditures to eliminate wastage
Ensure Council behave in ways to restore community trust in local government.
5.Financial Plan
Introduction
The financial plan of Chief Albert Luthuli Local Municipality is presented in the SDBIP and comprises:
(a) Financial projections for each month of revenue to be collected by source; and Operational and capital expenditure, by vote;
(b) Service delivery targets and performance indicators for each quarter.
1
SERVICE DELIVERY TARGETS AND PERFORMANCE INDICATORS
2014/15 PERFORMANCE REPORT - QUARTER 3
KPA :1.1. MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT
Goal : To ensure municipal transformation and organisational development in line with the MSA (2000) and Performance Regulations, and MFMA (2003); and to provide strategic leadership and direction
PriorityArea / Strategic
Objective / Key Performance Indicators
(KPI) / 2014/15
Budget
Vote No / 2014/15
Baseline / 2014/15
Annual
Target / Frequency / Quarter 3
2014/15 / Reasons For Deviations / Steps Taken To Improve / Evidence
Performance Indicator / Outcome / Impact / Output
Measure / Performance Target / Actual
Performance
1.1 / OFFICE OF THE MUNICIPAL MANAGER : PERFORMANCE MANAGEMENT SYSTEM
PMS POLICY FRAMEWORK / To improve institutional performance, compliance and reporting / Reviewed PMS Policy Framework of the Municipality approved / Outcome 9: Responsive, accountable, effective and efficient Local Government System / 100% compliance with Chapter 6 of the MSA / Number of performance assessments conducted
Compliance to section 38-41 of the MSA and Chapter 12 of the MFMA Performance Regulations 2001, 2006 (as amended) / None / Last review of PMS Policy Framework in 2013/14 / Reviewed PMS Policy Framework for 2014/15 / Quarterly / Implement PMS Policy Framework / The Framework was submitted to Council in Quarter 1 / None / Not applicable / Report approved and council resolution on the reviewed PMS Policy Framework
PERFORMANCE AGREEMENTS / Number of performance agreements of section 57/54 mangers signed / 100% compliance with Chapter 6 of the MSA
Performance agreements for Newly appointees signed within 60 days / Adherence to the Performance Regulations 2006 (as amended)
MSA / Number and date of performance agreements
Performance agreements for all existing S54A and S56 managers signed within 30 days in terms of section 57 of the MSA within the prescribed timeframe / None / 7 signed performance agreements annually / 7 signed performance agreements by 1 July / Quarterly / Implement PMS Policy Framework / Completed in Q1 all 7 senior managenet signed / None / Not applicable / Hard copies of 7 signed performance agreements
1.2 / DEPARTMENT CORPORATE SERVICES
Labour Relations / To maintain labour and employee relations / Number of labour related functions rendered / Outcome 12:
An efficient, effective and development oriented public service / Sound labour relations
at the workplace / Labour Relations Act
Organisational Rights Agreement (SALGBC)
Collective Agreements (SALGBC) / None / Approved Organogram
Approved HR policies
Low vacancy rate across / Quarterly / Vacancies filled within 3 months
LLF / 3 Local Labour forum meetings sat during this quarter under review. Held a Staff Indaba on the 17th of March 2015. / None / n/a / Hard copies of minutes,
adverts, offer letters, appointment letters
Skills Development / To spend a% of the municipal budget on training of skills / % of municipality’s budget actually spent on implementing its Workplace Skills Plan / Outcome 5:
Skilled, capable workforce with minimum competency requirements
(S54A and S56 managers) / Number of officials and councillors capacitated in terms of the Workplace Skills Plan, and with improved service delivery / Number trained
Skills Development Act; (Skills Development Levies and SAQA Acts / Regulations / Strategies) / None / 1% of 2013/14 total budget / 1% of 2014/15 total budget / Quarterly / Implementing / Training in progress of the 25 Water and Waste Water Process Controllers at NQF Level 3. Process payment for a Tuition fee for four bursary beneficiaries. Enrolled 11 officials at Kgolo Institute for MFMP. Applied for discretionary grant at LGSETA for five bursaries (employed personnel). Enrolled eight officials and twenty two ward committees on ABET Training level 1 – 4. Our municipality was shortlisted for Due Diligent work by LGSETA to verify the original documents used to apply for discretionary grant. / None / Dpt needs to talk about the % of budget spent on training of the indicated persons / Hard copies of lists of beneficiaries to WSP
LGSETA Report
To report on the Workplace Skills Plan (WSP) submitted to LGSETA annually before June / WSP submitted to LGSETA by 30 June annually
Appointment of a Skills Development Facilitator / Outcome 5:
Skilled and capable workforce
Outcome 12:
An efficient, effective and development oriented public service / Skills Development Act (Skills Development Levies and SAQA Acts / Regulations / Strategies)
Municipal Finance Management Act
Labour Relations Act
Organisational Rights Agreement (SALGBC) Collective Agreements (SALGBC) / Report submitted on time
WSP submitted to LGSETA by 30 June annually
Skills Development Facilitator appointed / None / 30 Jun 2014 / WSP submitted to LGSETA by 30 Jun 2015 / Quarterly / Per need / Training in progress of the 25 Water and Waste Water Process Controllers at NQF Level 3. Process payment for a Tuition fee for four bursary beneficiaries. Enrolled 11 officials at Kgolo Institute for MFMP. Applied for discretionary grant at LGSETA for five bursaries (employed personnel). Enrolled eight officials and twenty two ward committees on ABET Training level 1 – 4. Our municipality was shortlisted for Due Diligent work by LGSETA to verify the original documents used to apply for discretionary grant. / None / Dpt needed to indicate about the submission of the WSP/the Skill facilitator / Hard copies of WSP
Employment Equity / To meet the equity target as prescribed / Number of people from employment equity target groups employed in the three highest levels of management / Outcome 4:
Decent employment through inclusive economic growth
Uninterrupted service delivery / MSA S54A, S56, S55 / Compliance with the municipality’s approved Employment Equity Plan / maintained equity targets / None / Number / Number targeted in 2014/15 / Quarterly / Fill critical posts / The directorate has submitted the EEA 2 report to the department of Labour. / Dpt needs to report on equity targets
If met / Organogram
Recruitment / To fill all critical, and prioritised posts within 3 months as required / Number of critical posts filled / MSA S54A, S56, S55 / Outcome 5:
Skilled and capable workforce
Outcome 12:
An efficient, effective and development oriented public service / Posts filled in terms of the regulated MFMA and MSA Minimum Competency Requirements / None / Municipal Manager,
Chief Financial Officer,
Technical Manager,
S56 managers (Finance, Technical) / Quarterly / Fill posts / per need / The HR Section facilitated the shortlisting and interview of the casual Meter Reader. The unit dealt with the post upgrade of seven employees. Provided secretariat services during the shortlisting and interviews for Cashier and E – Natis Officer. / None / n/a / Hard copies of council resolutions