25 February 2016

1. FREE STATE PROVINCIAL REPORT ON THE SUBMISSION OF SECTION 47 REPORT 2013/2014 cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE 25 February 2016

2. PRESENTATION OUTLINE cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Legislative Requirements • Section 46 Reports Submission • Section 129 Reports • Section 47 Report: Progress • Support provided to municipalities • Challenges • Analysis per Output

3. LEGISLATIVE REQUIREMENTS cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • According to Section 46(2) of the Municipal Systems Act 32 of 2000,an annual performance report must form part of the municipality’s annual report in terms of Chapter 12 of the MFMA 56 of 2003. • Section 127(2) of the MFMA states that the mayor of a municipality must, within seven months after the end of a financial year, table in the municipal council the annual report of the municipality and of any municipal entity under the municipality’s sole or shared control.

4. LEGISLATIVE REQUIREMENTS cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Section 127(5) of the MFMA states that immediately after an annual report is tabled in the council in terms of subsection (2), the accounting officer of the municipality must- • in accordance with section 21A of the Municipal Systems Act- • make public the annual report; and • invite the local community to submit representations in connection with the annual report; and • submit the annual report to the Auditor-General, the relevant provincial treasury and the provincial department responsible for local government in the province.

5. SECTION 46 TABLING & SUBMISSION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

6. SECTION 46 TABLING & SUBMISSION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

7. SECTION 46 TABLING & SUBMISSION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

8. SECTION 46 TABLING & SUBMISSION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

9. SECTION 46 TABLING & SUBMISSION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

10. ANALYSIS OF TABLING AND SUBMISSION OF SEC 46 cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • According to information above, 24 municipalities tabled their annual performance reports for the financial year 2013/14 as per Section 46 of the MSA, within the legislated period; • 15 municipalities submitted their annual reports after the date of tabling, rendering their submissions non-compliant; • A total of 23 municipalities publicised their annual reports as required by law with the exception of Nala LM.

11. ANALYSIS OF TABLING AND SUBMISSION OF SEC 46 cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Of all 24 municipalities, only 09 municipalities placed their 2013/14 annual reports on their municipal websites as required by section 21A & 21B of the MSA;

12. SECTION 129 (OVERSIGHT) REPORTS cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • According to Section 129(1) of the Municipal Finance Management Act (MFMA) 56 of 2003,the council of a municipality must adopt an oversight report containing the council’s comments on the annual report not later than two months from the date on which the annual report was tabled in council in terms of section 127. • Furthermore, subsection 3 states that: • The accounting officer must in accordance with section 21A of the MSA make public an oversight report referred to in subsection (1) within seven days of its adoption.

13. SECTION 129 TABLING, SUBMISSION & PUBLICATION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

14. SECTION 129 TABLING, SUBMISSION & PUBLICATION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

15. SECTION 129 TABLING, SUBMISSION & PUBLICATION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

16. SECTION 129 TABLING, SUBMISSION & PUBLICATION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

17. SECTION 46 TABLING & SUBMISSION cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

18. SUBMISSION TO THE LEGISLATURE • According to Sec 132 of the MFMA, the final annual report with the Oversight report must be submitted to the Legislature and the MEC must monitor compliance. • Out of 24 municipalities, only Letsemeng and Naledi Local municipalities submitted their reports to the Legislature.

19. SUPPORT PROVIDED TO MUNICIPALITIES cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Reminders sent to municipalities • PMS Assessment workshops held with municipalities from July 2013 – August 2013 to ensure alignment with the National Key Performance Indicators • The Department launched a Provincial PMS Forum in June 2015 aimed at addressing some of the challenges that municipalities are facing and will continue to work with relevant stakeholders to achieve a hundred percent compliance.

20. CHALLENGES cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Non-compliance with legislated dates for submission • The conclusion that can be drawn from the above is that although the figure of tabling the reports is high, municipalities do not give the same regard to submitting and publicizing their reports.

21. Analysis per Output • COGTA has undertaken to monitor and evaluate cooperation amongst government stakeholders to achieve improved service delivery. • COGTA’s approach is aligned to the principles of the Presidency’s document on Improving Government Performance which is to: • Strengthen our ability to cooperate across the three spheres of government and work as a single delivery machine. • Build a partnership between government and civil society so that we can work together to achieve our goal of a better life. • According to the Presidency, the outcome performance system is not limited to measuring outcomes and outputs, it is meant to serve as a mechanism to guide the direction of policy implementation; and ensure that we are doing what matters the most. cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

22. Analysis per Output • It was therefore important that government identify priorities which will bring the vision and reality closer together, hence the identification of twelve outcomes, which inform the MTSF. • COGTA is therefore responsible for Outcome 9, thereby ensuring that the Local Government system is responsive, accountable, effective and efficient. • All 24 municipalities have tabled and submitted their annual performance reports for the fiscal year which includes the performance of municipalities as per the Outcome 9 and other legislative prescripts as contained in the Local Government: Municipal Systems Act 32 of 2000 (MSA). cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

23. Output 1: A Differentiated Approach to Municipal Financing, Planning and Support . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • All municipalities submitted their IDPs to the MEC • IDP Assessments were conducted to assess: • the credibility of the IDP compilation; • identifying gaps and provide assistance needed by the municipalities as indicated; • the synchrony between respective municipality’s integrated development plans and other planning tools such as the municipal budget, Provincial planning instruments; and • analysis of the final adoption and submission dates of IDPs 2013/2014 financial years

24. Output 2: Improved Access to Basic Services • The allocated Municipal Infrastructure Grant budget for the 2013/2014 financial year was R968, 682,000.00 and R960, 060,430.67 was spent by the end of June 2014 which is 99% spending of the budget. • The total 2012/2013 MIG roll-over of R51, 912,164.66 was also spent by the end of May 2014. The total amount of R1,011,972,595.33 was therefore spent on the following project categories from the above expenditure including the roll over: • 12% (R124m) was spent on water; • 33%(R330m) on sanitation • 24%(R245m) on roads and storm water; • 15% (R150m) on sport and recreation and multipurpose centers; • 4% (R40m) on Project Management Units • 3% (R29m) on fencing; • 2%(R26m) on high mast lights; • 2% (R24m) on solid waste disposal; • 2% (R21m) on taxi ranks; • 3% (R23m) on cemeteries, community halls, firefighting and street trading, respectively. . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

25. Output 3: The Community Work Programme Implemented • CWP in Free State has 13 sites, all of which are currently operational. • The programme benefits 13 municipalities, 163 wards, and at least 29 towns and localities. • At the request of FS COGTA, Edenville and Koppies were combined and reported as Ngwathe from the 1st April 2013. • The province has 1 provincial and 3 local implementing agents. • Seritimanages 6 sites; Mercy Life manages 3 sites, Tholwana E Molemo 1 site and Mngcunube 3 sites.   . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

26. Output 4: Initiatives Supportive of the Human Settlements Outcome • Land Use Applications • A total of 348 land use applications were received for the financial year 2013/2014 and 21 Townships Board meetings were held. • Only 4 objections to proposed developments were received. • Township Establishment • The department recommended the following township establishments for approval to the MEC whereby 3490 new Erven were created. • A total number of 6 applications were received for township establishments from 3 municipalities, whereby 4 were for private land development and 2 for informal land development. • A total number 3490 new erven were established, 3317 were informal and 173 private. . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

27. Output 5: Deepen Democracy through a Refined Ward Committee System • The department was only able to assist with the roll out to the following 4 municipalities in the 2013/2014 financial year: • Mafube Local Municipality 27 January - 02 February 2014 • Dihlabeng Local Municipality 14-17 April 2014 • Setsoto Local Municipality 12 -15 May 2014 • Tokologo Local Municipality 17 – 20 June 2014 • Izimbizo • Various programs of public participations took place in the province. • The department convenes some and supported other provincial and national department activities. • Key amongst those activities were Operation Hlasela, Heritage Day celebration and municipal community outreach programs. . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

28. Output 6: Improved Municipal Financial and Administrative Capabilities . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

29. FREE STATE 2014/15 MUNICIPAL AUDIT OUTCOMES

30. CONT

32. Output 6: Improved Municipal Financial and Administrative Capabilities . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Table above reflects an improvement of three district municipalities and three local municipalities managing to sustain an Unqualified Audit outcome with matters of emphasis. • Financial management within municipalities has, although not yet at the desired level, improved over the recent years to a situation where, the following 6 municipalities received unqualified audits during the 2013/2014 financial year: • FezileDabi DM • Lejweleputswa DM • Thabo Mofutsanyana DM • Dihlabeng LM • Nketoana LM • Tswelopele LM

33. Output 6: Improved Municipal Financial and Administrative Capabilities . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE • Section 57 of the Municipal Systems Act 32 of 2000 reads- (1) A person to be appointed as the municipal manager of a municipality, and a person to be appointed as a manager directly accountable to the municipal manager, may be appointed to that position only- (a) in terms of a written employment contract with the municipality complying with the provisions of this section; and (b) subject to a separate performance agreement concluded annually as provided for in subsection (2). • Section 53 of the MFMA, outlines the linkage between the budget, SDBIP and performance agreements. • As per legislation, the municipalities are expected to submit performance agreements (PA) and employment contracts (EC) to the MEC of Local Government. • During the 2013/2014 financial year, the following municipalities submitted performance agreements of Senior Managers that include key LGTAS performance indicators as per legislative prescripts

34. Output 6: Improved Municipal Financial and Administrative Capabilities . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

35. Output 6: Improved Municipal Financial and Administrative Capabilities • A follow-up workshop on IDP/SDBIP/PMS alignment workshop was held on the 11th-12th September 2013, during which all municipalities attended. • A workshop on Recruitment & Retention (R&R) was conducted on the 23rdMay 2014 with municipalities as an initiative from DCOG, with the intention to assist them to review their R&R Strategies. • District based workshops were conducted for municipalities on the newly gazetted Regulations on the appointment of senior managers and employment conditions were held from 19th-25thMarch 2014 for municipalities. • A PMS Summit was held on the 04th-05th June 2014 whereby both Political and Administrative offices from the 24 municipalities were invited to attend. • The purpose of the workshop was to support municipalities on compliance issues and how to link IDP, SDBIP, and PMS. • A total of 22 municipalities attended the workshop with the exception of the following 2 local municipalities; Matjhabeng and Masilonyana. . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

36. Output 7: A Single Window of Coordination • Municipalities had been in undated with reporting requirements for various stakeholders to a point where service delivery was affected negatively. • Output 7 seeks to ensure that in Local Government sphere, a Single window of Coordination is developed and operational • The problem of coordination and alignment of interventions of departments and agencies impacting on local government remains a massive challenge that requires creative and radical solutions. • A need has been identified to ensure that targeted policies and legislation are reviewed and that the various support, monitoring and other interventions by national and provincial departments, State Owned Enterprises and various other stakeholders are better coordinated. . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

37. Output 7: A Single Window of Coordination • The tasks of tackling the varied problems facing municipalities are cross-cutting and complex. • The concept of a single window of coordination is thus a new organizational ethos intended to bring key departments together to facilitate cross departmental collaborative partnerships to impact more decisively and positively on municipal performance. • It will also provide for a more focused oversight and support role to municipalities and a greater knowledge bank on municipal environments. . cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

38. Output 7: A Single Window of Coordination • The MEC for Cooperative Governance and Traditional Affairs promulgated a set of 43 standard by-laws in 2011 to assist municipalities with promulgation of by-laws as outlined in Section 12, 13 and 14 of the Municipal Systems Act, (Act No 32 of 2000 as amended) • Municipalities were advised to identify top 5 critical by-laws for promulgation process to make public participation manageable. • After identification and final promulgation of their first top five (Phase One) critical by-laws in the Provincial Gazette, municipalities can then identify their other critical by-laws for their Second Phase of promulgation. cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE

39. cooperative governance and traditional affairs Department of Cooperative Governance and Traditional Affairs FREE STATE PROVINCE Thank you