Revised Strategic Plan 2020-25: Cooperative Governance & Traditional Affairs
The revised strategic plan for the Select Committee on Cooperative Governance and Traditional Affairs. It includes the annual performance plan for 2023/24 and the MTEF budget allocation.
- Cooperative Governance
- Traditional Affairs
- Strategic Plan
- Annual Performance Plan
- MTEF Budget Allocation
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SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS & REVISED STRATEGIC PLAN 2020-25 Director-General: 2 May 2023
PRESENTATION OUTLINE Introduction Part 1 Revised Strategic Plan 2020-2025 Part 2- Annual Performance Plan 2023/24; and Part 3 DCoG MTEF Budget Allocation. Recommendations
PURPOSE To Present to the Select Committee on Cooperative Governance and Traditional Affairs the DCOG Revised Strategic Plan 2020/25, Annual Performance Plan 2023/24 and MTEF Budget Allocation
REVISED PRIORITIES, FOCUS AREAS AND OUTCOME Vision / Impact: Efficient & effective cooperative governance system that enables resilient, safe, sustainable, prosperous, cohesive, connected and climate smart communities implementation across all spheres of government Basic services delivered to all citizens in an effective and efficient manner Functional inter- governmental governance systems Citizens engaged and participating in Government System in support of integrated planning and Financially viable municipalities Mission: Lead the Cooperative Governance Outcomes Sustained Good Municipal Governance Support/ Intervene Direct Cooperate Enable Coordinate Institutional capacity, governance and accountability Cooperative and Participatory government Integrated planning and implementation Integrated knowledge management Focus Legislation and Policy Policy Review Policy Compliance Policy triggers IGR horizontal + vertical integration Social Compacts Citizen participation District profiles District One-Plans All plans, budgets aligned to One-Plans Governance Financial viability Capacity Support / Intervention Integrated Knowledge Integrated Monitoring Priorities The revised SP prioritizes the right policy universe that enables IGR to jointly plan, monitor, support, and intervene. The achievement of the intended Outcomes is an enabler to realise our Impact = resilient, safe, sustainable, prosperous, cohesive, connected and climate smart communities
DEPARTMENTAL PRIORITIES SIX DCoG Strategic Outcomes Government Priorities
SUMMARY NUMBER OF PROJECT PER PROGRAM The DCOG APP 2023/24 consists of the following number of outputs and output indicators: The total number of Key Performance Indicators is 34
PROGRAMME 1: ADMINISTRATION Outputs Corporate Services Improvement Plan (CSIP) implemented Financial Services Improvement Plan (FMIP) implemented Procurement spend on entities owned by women, youth and persons with disabilities Output Indicators 1.1 Percentage implementation of approved CSIP 1.2 Percentage implementation of approved FMIP 1.3a Percentage procurement spend on entities owned by women 1.3b Percentage procurement spend on entities owned by youth 1.3c Percentage procurement spend on entities owned by persons with disabilities Annual Targets 2023/24 90% implementation of approved CSIP by 31 March 2024 90% implementation of approved FMIP by 31 March 2024 40% procurement spend on entities owned by women by 31 March 2024 30% procurement spend on entities owned by youth by 31 March 2024 7% procurement spend on entities owned by persons with disabilities by 31 March 2024
PROGRAMME 2: LOCAL GOVERNMENT OPERATIONS AND SUPPORT Outputs DDM Institutionalised across all spheres of government Output Indicators Annual Targets 2023/24 Regulations in terms of the Intergovernmental Relations Framework Act (IGRFA) gazetted by 30 September 2023 IGRFA amendment bill submitted to Parliament by 31 March 2024 One catalytic project implemented in 15 Districts/metros by 31 March 2024 2.1 Regulations in terms of the Intergovernmental Relations Framework Act (IGRFA) gazetted 2.2 IGRFA amendment bill submitted to Parliament 2.3 Number of districts/metros that implemented at least one DDM catalytic project Long standing disputes on water and electricity resolved 2.4 Number of dysfunctional municipalities in which long-standing disputes on water and electricity are resolved through DDM 2.5 Number of dysfunctional municipalities with MSIPs developed and implemented. Long-standing disputes on water and electricity resolved in 22 dysfunctional municipalities by 31 March 2024 Implemented Municipal Support and Intervention Plans (MSIPs) 22 dysfunctional municipalities with MSIPs developed and implemented by 31 March 2024
PROGRAMME 2: LOCAL GOVERNMENT OPERATIONS AND SUPPORT, cont. Outputs Functional municipalities Output Indicators Annual Targets 2023/24 60% of Municipalities are dysfunctional or at High Risk by 31 March 2024 2.6 Percentage of Municipalities that are dysfunctional or at High Risk Functional ward committees 2.7 Percentage of dysfunctional ward committees for which intervention plans are implemented 2.8 Percentage of MIG receiving municipalities spending at least 85% of MIG allocations by the end of the municipal financial year 2.9 Number of MIG receiving dysfunctional municipalities spending at least 10% of MIG allocations on infrastructure repairs and refurbishment by the end of the municipal financial year Intervention plans implemented for 50% of dysfunctional ward committees by 31 March 2024 50% of MIG receiving municipalities spending at least 85% of 2022/23 MIG allocations by 30 June 2023 Municipal Infrastructure 5 MIG receiving dysfunctional municipalities spending at least 10% of 2022/23 MIG allocations on infrastructure repairs and refurbishment by 30 June 2023
PROGRAMME 3: POLICY, GOVERNANCE AND ADMINISTRATION Outputs Local Government Legislative Review report and Local Government General Laws Amendment Bill Output Indicators Annual Targets 2023/24 Draft Local Government: General Laws Amendment Bill submitted to Cabinet by 31 March 2024 3.1 Local Government General Laws Amendment Bill submitted to Cabinet and Parliament Improved Revenue management in dysfunctional municipalities 3.2 Number of dysfunctional municipalities with increased revenue 3.3 Percentage decrease in debt owed to dysfunctional municipalities 22 dysfunctional municipalities with increased revenue by 31 March 2024 10% decrease in debt owed to dysfunctional municipalities by 31 March 2024 Competent senior managers appointed in municipalities 3.4 Number of municipalities where all senior managers meet the prescribed competency requirements 66 municipalities where all senior managers meet the prescribed competency requirements by 31 March 2024 50% of reported cases of allegations of financial misconduct, fraud and corruption by municipal staff members where disciplinary proceedings were concluded by 31 March 2024 Concluded disciplinary cases 3.5 Percentage of reported cases of allegations of financial misconduct, fraud and corruption by municipal staff members where disciplinary proceedings were concluded
PROGRAMME 3: POLICY, GOVERNANCE AND ADMINISTRATION cont. Outputs Output Indicators Consequences for breach of codes of conduct code of conduct for councillors where appropriate sanctions were applied Annual Targets 2023/24 Appropriate sanctions applied in 50% of cases of breach of the code of conduct for councillors by 31 March 2024 3.6 Percentage of cases of breach of the 3.7 Percentage of cases of breach of the code of conduct for senior management where appropriate sanctions were applied Appropriate sanctions applied in 50% of cases of breach of the code of conduct for senior management by 31 March 2024 Improved citizen satisfaction in service delivery 3.8 Percentage of municipalities with improved citizen satisfaction with service delivery 10% of municipalities with improved citizen satisfaction with service delivery by 31 March 2024 30 municipalities with SPLUMA compliant SDFs by 31 March 2024. 5 intermediate city municipalities with capital expenditure frameworks aligned to the Integrated Urban Development Framework by 31 March 2024. Spatially just and transformed national space economy 3.9 Number of municipalities with SPLUMA compliant SDFs 3.10 Number of intermediate city municipalities with capital expenditure frameworks aligned to the Integrated Urban Development Framework
PROGRAMME 4: NATIONAL DISASTER MANAGEMENT CENTRE Outputs National Disaster Management Framework 4.1 Number of sector departments Output Indicators Annual Targets 2023/24 4 sector departments implementing disaster funding arrangements in terms of the Disaster Management Act by 31 March 2024. implementing disaster funding arrangements in terms of the Disaster Management Act 4.2 Number of municipalities in priority disaster areas implementing a disaster management strategy to prevent, prepare for and mitigate disaster risks in terms of the Disaster Management Act 14 municipalities in priority disaster areas implementing a disaster management strategy to prevent, prepare for and mitigate disaster risks in terms of the Disaster Management Act by 31 March 2024. 10 municipalities implementing the National Fire Safety and Prevention Strategy by 31 March 2024. Improved functionality of Municipalities through implementation of the National Fire Safety and Prevention Strategy. 4.3 Number of municipalities implementing the National Fire Safety and Prevention Strategy
PROGRAMME 5: COMMUNITY WORK PROGRAMME Outputs CWP participants enrolled in programme Output Indicators 5.1 Number of people participating in the CWP sustained income model Annual Targets 2023/24 230 000 people participating in the CWP sustained income model by 31 March 2024 5.2 Number of people participating in the new CWP sustainable exit strategies model 20 000 people participating in the new CWP sustainable exit strategies model by 31 March 2024 5.3 Percentage of women, youth and persons with disabilities participating in the Programme 5.4a Percentage procurement spend on entities owned by women 55% Women, 30% Youth and 2% persons with disabilities participating in the programme by 31 March 2024 40% procurement spend on entities owned by women by 31 March 2024 Procurement spend on entities owned by women, youth and persons with disabilities 5.4b Percentage procurement spend on entities owned by youth 5.4c Percentage procurement spend on entities owned by persons with disabilities 30% procurement spend on entities owned by youth by 31 March 2024 7% procurement spend on entities owned by persons with disabilities by 31 March 2024
PROGRAMME 5: COMMUNITY WORK PROGRAMME cont. Outputs Unqualified audit outcome Output Indicators 5.5 Percentage of material irregularities and qualification paragraphs from previous financial years resolved Annual Targets 2023/24 100% of material irregularities and qualification paragraphs from previous financial years resolved by 31 March 2024
18 DISTRICT DEVELOPMENT MODEL
2023 MTEF KEY VALUE DRIVERS 2023 MTEF KEY VALUE DRIVERS Programme 3: Intergovernmental Policy and Governance Programme 4: National Disaster Management Centre Programme 1: Administration Programme 2: Intergovernmental Support Programme:5 Community Work Programme R351.3 million R932.2 million R9.2 billion R96.9 billion R4.3 billion 2023/24 BUDGET ALLOCATION R 121 698 251.00 Capital R23.4 million Transfers and Subsidies R116.6 billion Goods and services R4.7 billion Compensation of employees R346.7 million 19 DISTRICT DEVELOPMENT MODEL
2023 ESTIMATE OF NATIONAL EXPENDITURE (ENE) ALLOCATION PROGRAMME 2023/24 R'000 121,698,251 2024/25 R'000 129,717,885 2025/26 R'000 136,475,900 Compensation of employees 346,684 32.4% 361,869 32.4% 377,695 32.3% % % % 333,618 96.2% 348,233 96.2% 363,459 96.2% 2023 ENE Allocation 100.0% 100.0% 100.0% Department 95,136,041 146,516 1,122,764 17,594,733 372,732 1,731,132 145,843 351,454 36,408 73,104 3,901,562 120,628,828 78.2% 0.1% 0.9% 14.5% 0.3% 1.4% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 3.2% 99.1% 102,361,818 153,096 1,173,187 18,384,903 389,471 1,410,217 152,393 367,238 38,043 76,387 4,075,537 128,599,572 78.9% 0.1% 0.9% 14.2% 0.3% 1.1% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 3.1% 99.1% 109,368,064 159,955 1,225,746 19,208,547 406,919 159,220 383,690 39,747 79,809 4,255,600 135,305,354 80.1% 0.1% 0.9% 14.1% 0.3% 0.0% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 3.1% 99.1% Local Government Equitable Share Municipal Systems Improvement Grant Integrated Urban Development Grant Municipal Infrastructure Grant Municipal Disaster response grant Municipal Disaster Recovery Grant Provincial Disaster response grant Provincial Disaster Recovery Grant Municipal Infrastructure Support Agent South African Local Government Association South African Cities Network Municipal Demarcation Board United Cities and Local Government Africa Community Work Programme TOTAL Operational Budget 13,066 3.8% 13,636 3.8% 14,236 3.8% Community Work Programme Goods and services 697,295 65.2% 739,095 66.1% 777,375 66.4% 302,293 43.4% 313,087 42.4% 311,494 40.1% Department - 30,000 4.3% 33,000 4.5% 37,000 4.8% National Disaster Management Center (Earmarked) - - - 365,002 52.3% 393,008 53.2% 428,881 55.2% Community Work Programme Payments for capital assets 23,444 2.2% 15,349 1.4% 13,476 1.2% 8,538 8,921 9,321 17,924 76.5% 15,149 98.7% 13,276 98.5% Department 8,001 8,361 8,736 5,520 23.5% 200 1.3% 200 1.5% Community Work Programme Transfers & Subsidies 2,000 0.2% 2,000 0.2% 2,000 0.2% 1,069,423 0.9% 1,118,313 0.9% 1,170,546 0.9% The total expenditure of the Department is expected to increase at an average annual rate of 5.9 per cent, from R121.7 billion in 2023/24 to R136.5 billion in 2025/26. Transfersto provinces and municipalities account for an estimated 95.4 per cent (R371.8 billion) of the department s total budget over the MTEF period, of which the Local Government Equitable Share and the Municipal Infrastructure Grant accounts for 92.6%. Expenditure on compensation of employees is expected to increase at an average annual rate of 4.4 per cent, from R346.7 million in 2023/24 to R377.7 million in 2025/26. This low increase reflects the anticipated decrease in the number of personnel from 585 in 2022/23 to 511 in 2025/26 due to mandatory reductions. Goods & services will grow by 5.6%, but this growth is only on CWP and NDMC earmarked funding while the departmental operational budget will only grow by 1.5 per cent. Payments for Capital assets is expected to decrease by 23.4 per cent. 20
GOODS AND SERVICES COMPENSATION OF EMPLOYEES Goods and services 697,295 65.2% 739,095 66.1% 777,375 66.4% 2023/24 Costs 297,427,785 5,193,694 59,938,922 362,560,401 346,684,000 2024/25 Costs 301,889,202 5,271,599 60,838,006 367,998,807 361,869,000 2026/27 Costs 306,417,540 5,350,673 61,750,576 373,518,789 377,695,000 302,293 43.4% 313,087 42.4% 311,494 40.1% Department SUMMARY Number 30,000 4.3% 33,000 4.5% 37,000 4.8% National Disaster Management Center (Earmarked) Permanent Filled Ministry (Additional Officials) Critical Posts still to be filled (vacant) Total Posts Budget Allocation Baseline % Growh Surplurs/Deficit (Mandatory cuts by NT) 420 4 90 514 365,002 52.3% 393,008 53.2% 428,881 55.2% Community Work Programme 2023/24: The Department goods and services allocation is encompassing indirect grant (MSIG), earmarked funds (CWP & NDMC assessment) and operational. -5.3% 4.4% 4.4% (15,876,401) 7.5% 27,192,030 (43,068,431) (6,129,807) 4.5% 16,375,947 (22,505,754) 4,176,211 4.5% 16,733,642 (12,557,431) The MSIG support various projects that most must be implemented within the local sphere which are: 2023/24 wage settlement (7.5%) Surplurs/Deficit 7.5% 514 i. The District Development Model (DDM). ii. Roll-out of the Prototype Staff Establishment, Staffing Regulations and Competency Framework Projects. iii. Cost of Supply Study on Water. iv. Improvement of Records and Data Management Projects. 2023/24: The Department may experience overspending due to previous mandatory reductions and anticipated wage settlement for salary increase at an average of 7.5 per cent in the 2023/24 FY, which may lead to unauthorized expenditure, as COE is classified as specifically and exclusively appropriated. As proposed by NT, the Department is expected to be reprioritize funding as follows: 1. Programme 2: LGOS reprioritize R4 million under Travel and Subsistence, due to its recurring underspending as a results of meeting that are held virtually. Programme 3: PGA reprioritize R3 million under Travel and Subsistence, due to its recurring underspending as a results of meeting that are held virtually. Programme 4: NDMC reprioritize R5 million under Consultants and Travel and Subsistence, due to its recurring underspending as a results of cost containment measures and meeting that are held virtually. Programme 5: CWP reprioritizes R31 million of Programme Management under Catering, Consultants and Travel and Subsistence due to support that Programme 1 and core function is giving to the programme and recurring underspending. NDMC Assessment is earmarked to evaluate and assess damages to infrastructure that would relate to disaster as a result of floods, fire, drought, etc. 2. 3. CWP allocation is to support government employment initiatives by creating income security in areas of unemployment. 4. Operational allocation is to support all administrative and operational activities to ensure that the Department achieve its strategic goals as set out in our mandate. 21 DISTRICT DEVELOPMENT MODEL
PAYMENTS FOR CAPITAL ASSETS PROGRAMME 2023/24 R'000 1 069 423 2024/25 R'000 1 118 313 2025/26 R'000 1 170 546 % % % Operational Budget 0,9% 0,9% 0,9% Payments for capital assets Department Community Work Programme Transfers & Subsidies (NDMC Bursary) 23 444 17 924 5 520 2 000 2,2% 76,5% 23,5% 0,2% 15 349 15 149 200 2 000 1,4% 98,7% 1,3% 0,2% 13 476 13 276 200 2 000 1,2% 98,5% 1,5% 0,2% Payments for Capital assets: It is anticipated that the payments designated for capital assets will experience a reduction of 23.4% during the 2023/24 fiscal period. These funds are intended to facilitate the acquisition of various machinery and equipment that will serve as essential instruments for the departmental officials, including office furniture, computer software, licenses, as well as other intangible assets such as vehicles, cellular phones, signal coverage devices, bags, containers, and domestic equipment. A significant portion of these funds is expected to be allocated towards the development of infrastructure within the new office building. 22
2023 LG ALLOCATIONS AS PER DORA BILL CHANGES TO LOCAL GOVERNMENT ALLOCATIONS Additions to the local government equitable share R8,3 billion is added to the LGES to increase coverage of the provision of free basic services R2.5 billion in 2023/24, R2.3 billion in 2024/25 and R3.3 billion in 2025/26 to fully fund the provision of free basic services Allocated through a formula to ensure fairness for all 257 municipalities. Formula has updated data for: - Household growth: 2,7% growth in Stats SA s 2021 GHS - Bulk water: 8.9% average water board bulk price increases -Bulk electricity: 20.7% based on previously approved Multi-Year Price Determination (MYPD) -Projected CPI for other costs The formula is fully funded to account for House Hold growth and cost increases over the MTEF
MTEF ALLOCATIONS PER PROVINCE (LGES) BUDGET ALLOCATION 2023/24 12,544,801,000 5,576,371,000 19,497,785,000 18,587,693,000 12,800,618,000 8,141,511,000 2,458,646,000 8,237,443,000 7,343,873,000 1,357,517,000 96,546,258,000 BUDGET ALLOCATION 2024/25 13,358,282,000 6,003,852,000 21,582,738,000 20,045,910,000 13,773,722,000 8,823,737,000 2,637,090,000 8,928,461,000 8,034,242,000 584,001,000 103,772,035,000 BUDGET ALLOCATION 2025/26 13,660,460,000 6,311,233,000 23,998,628,000 20,959,437,000 14,158,645,000 9,314,333,000 2,741,694,000 9,420,025,000 8,803,609,000 EASTERN CAPE FREE STATE GAUTENG KWAZULU-NATAL LIMPOPO MPUMALANGA NORTHERN CAPE NORTH WEST WESTERN CAPE UNALLOCATED TOTAL LGES 109,368,064,000
MTEF ALLOCATIONS PER PROVINCE (MIG) BUDGET ALLOCATION 2023/24 3,649,469,000 857,868,000 459,753,000 3,890,956,000 3,519,856,000 2,097,302,000 501,370,000 2,109,366,000 459,109,000 BUDGET ALLOCATION 2024/25 3,775,247,000 895,105,000 480,835,000 3,955,086,000 3,658,791,000 2,186,738,000 478,732,000 2,186,881,000 460,697,000 252,858,000 18,330,970,000 BUDGET ALLOCATION 2025/26 3,948,568,000 933,918,000 502,810,000 4,133,457,000 3,829,153,000 2,288,302,000 495,784,000 2,287,487,000 477,846,000 252,858,000 19,150,183,000 EASTERN CAPE FREE STATE GAUTENG KWAZULU-NATAL LIMPOPO MPUMALANGA NORTHERN CAPE NORTH WEST WESTERN CAPE UNALLOCATED TOTAL MIG 17,545,049,000
RECOMMENDATIONS It is recommended that the Select Committee note the Annual Performance Plan and allocated budget FY 2023/24 27 DISTRICT DEVELOPMENT MODEL
