Republic of South Africa

1. Republic of South Africa Annual Report 2003 / 2004

2. dplg 2 Slide No.: Contents • Vote 5 - Programmes 3 • Financial Highlights 4 • Legislation 8 • Provincial Support 9 • Local Government Support 10 • Conditional Grant Transfers 11 • Public Participation and Community Empowerment 13 • Municipal Performance Excellence (Vuna) Awards 14 • Snapshot of the 2003/04 Financial Year 15 • Future 16

3. dplg 3 Vote 5 - Programmes • Programme 1: Administration • Programme 2: Governance and Development • Programme 3: Institutional Reform and Support • Programme 4: Auxiliary and Associated Services

4. dplg 4 • Departmental budget under review: R9.4b. • Increase of 44% from R6.5 billion allocated in previous financial year. Financial Highlights

5. dplg 5 Budget against expenditure R’000 9 466 231 9 441 274 6 860 172 6 849 332 2 495 422 2 483 381 46 967 61 375 658 311 46 958 2 295 2 292 A/R Pg 53

6. dplg 6 Other details of financial results (A/R Page) • Management Report 60 • Report of the Auditor-General 64 • Statement of Accounting policies and related matters 68 • Financial Results 72

7. dplg 7 Report of Audit Committee (A/R Pg 58) • The Effectiveness of Internal Control • Internal Audit Function • Quality of Management and monthly / quarterly reports submitted in terms of the PFMA and the Division of Revenue Act (DoRA) • Evaluation of Financial Statements

8. dplg 8 Legislation • Major achievements: • Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003) • Municipal Property Rates Act, 2004 (Act No. 6 of 2004) • Inauguration of the Commission on the Promotion and Protection of the Rights and Cultural and Linguistic Communities (in terms of Section 185 of the Constitution)

9. dplg 9 • Working with all nine provinces – focus on development of Provincial Growth and Development Strategies (PGDS) • Alignment with IDP’s and NSDP. • Culminating in two national working sessions: • 10 August 2003 in Mpumalanga • 30 March 2004 in North West. Provincial Support

10. dplg 10 Local Government Support • R6.3b spent on basic service delivery (water, electricity, refuse removal and sanitation). • Focused on accelerating the delivery of free basic services.

11. dplg 11 Statement of Conditional Grant Transfers to Municipalities (A/R Page) • CMIP, per province & municipality 106 • LED and Social Plan Grant, per province 116 • MIG, per province 128 • Municipal Systems Improvement Programme, per province 130

12. dplg 12 Conditional Grant Transfers to Municipalities … (A/R Page) • CMIP, per province 142 • Local Government Capacity Building 142 • Disaster Management 144 • Public Entities 150 • Equitable Share (unconditional), per province & municipality 154

13. dplg 13 Public Participation and Community Empowerment • Good progress in developing practical mechanisms for public participation – National Guidelines • National Conference on Ward Committees – June 2003: • Active participation of Members of Parliament, MECs, Members of Provincial Legislatures, Mayors, Speakers, Councillors, Ward Committee members, non- governmental organisations and officials from all three spheres of government.

14. dplg 14 Municipal Performance Excellence (Vuna) Awards • Recognise performance of municipalities. • June 2003: launch of first Vuna Awards • Partnership agreement between dplg, SALGA, DBSA and NPI. • National awards held in December 2003.

15. (A/R Pg 14) Snapshot of the 2003/04 Financial Year Funding Injection of R9,4 billion for provincial and local government co-ordination Focus on Gender National Workshop for women councilors and officials approved National Action Plan Legislation Promulgation of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003) Disaster Management Continued implementation of the Disaster Management Act 2002, (Act No. 57 of 2002) and drought relief funds of R250 million approved by Cabinet January August October April March 2004 July 2003 October 2003 January 2003 FOURTH QUARTER April 2003 FIRST QUARTER SECOND QUARTER THIRD QUARTER July June February December Recognizing Excellence First National Municipal Performance Excellence Awards (VUNA). Improving the culture of performance for the benefit of the people Legislation Improving the viability of municipalities – Municipal Property Rates Bill approved by the National Assembly and the National Council of Provinces Public Participation and Empowerment National Conference on Ward Committees and distribution of National Guidelines Co-ordination of Free Basic Services Initial rollout of Free Basic Electricity in municipalities

16. dplg 16 Future • Strategic Objectives: • Ensure stability, predictability and efficiency of the GOVERNANCE system. • Strengthen PROVINCIAL governance and accountability. • Ensure effective functioning and stability of LOCAL GOVERNMENT. • MONITOR performance and EVALUATE service delivery. • Strengthen the dplg CORPORATE CAPABILITY.

17. dplg 17 Project Consolidate Elements: 1. LG Policy Framework and Institutional Framework 2. Public Participation, Ward Committees and CDWs 3. Human Relations Posture and Electoral Administration 4. Indigent Policy, Free Basic Services, Billing System and Municipal Debt 5. EPWP, MIG and LED 6. Anti-corruption 7. Special Interventions and focus on Development Nodes 8. Performance Management Framework, Indices and Communication Future

18. dplg 18 Thank you! General Enquiries: Ms Jeanny Morulane, Senior Manager: Communication Department of Provincial and Local Government, Private Bag X804, Pretoria, 0001, South Africa Tel: (012) 334-0631 / Fax: (012) 334-0852 Email: jeannym@dplg.gov.za / Web: http://www.dplg.gov.za