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STATE OF MUNICIPAL CAPACITY 2011

STATE OF MUNICIPAL CAPACITY 2011 Presentation of National Findings on Municipal Capacity Assessment in the 2011/12 Financial Year IMFO CONFERENCE: 08 October 2012 Chairperson: Mr Landiwe Mahlangu Municipal Demarcation Board E-mail: landiwe@demarcation.org.za. Outline of the Report.

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STATE OF MUNICIPAL CAPACITY 2011

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  1. STATE OF MUNICIPAL CAPACITY 2011 Presentation of National Findings on Municipal Capacity Assessment in the 2011/12 Financial Year IMFO CONFERENCE: 08 October 2012 Chairperson: Mr Landiwe Mahlangu Municipal Demarcation Board E-mail: landiwe@demarcation.org.za

  2. Outline of the Report • Introduction and purpose • History of Municipal capacity assessments • The revised model and outputs • The General Findings • General Staffing • Management Experience and Qualifications • Management Vacancies • Technical and Specialist Skills • Two-tier system • Determinants of performance • Implication for MEC Adjustment • Implication for Boundary Reviews • Recommendations

  3. Introduction • The MDB has a legal mandate to assess municipal capacity: • When determining and re-determining municipal boundaries • To Advise Provincial MEC’s on the capacity of district and local government capacities • 12 years into our new system of local government, the relationship between capacity and performance of municipalities requires attention • National Planning Commission Vision 2030 • Stabilise the political-administrative interface • Focus on skills and professionalism will be ineffective if the roles of political principal and administrative head are not clearly separated. • Make the public service and local government careers of choice so that they are able to attract, retain and build the best staff at all levels. • Develop technical and specialist professional skills. • Particularly for local government, this means actively producing the technical and specialist skills for its core functions e.g. engineers, planners, environmental health officers.

  4. Municipal capacity assessments • MDB capacity assessments taken place since 2001/2 • Strategic resource for local government sector • MCA were the most widely cited document • The only authoritative source on staff capacity • Review of the model took place in 2010 • Methodology improved in 2011 • Targeted at all municipalities in the country (including metros) • Collation of existing data sources • Covered a wide range of functional areas • Online data collection tool • Data collected relevant to the 2010/11 Municipal Financial Year • Useful Feedback to municipalities (Report cards) • Web-based database for warehousing and analysing data

  5. Process & Outputs

  6. National report

  7. The National Report • To draw an analysis of trends in municipal capacity across different categories of municipalities and municipalities in different provinces • It is intended to present the set of capacity challenges and successes, so that relevant stakeholders are equipped to develop a response to these.

  8. Source of Data

  9. General Staffing

  10. Unfilled posts are significant

  11. Municipal structures may be overdesigned and not fully affordable

  12. Rural municipalities struggle to fill posts they have resources for

  13. This is the case in Limpopo, KZN and EC

  14. Overall municipal attrition is not high

  15. Key findings on general staffing

  16. Management Experience and qualifications

  17. Divergence in MM experience between provinces

  18. Free State, Gauteng and North West have many recently appointed MMs

  19. CFOs in WC have 20 years experience compared with 4.1 in Free State

  20. Limpopo & Free State have recently appointed CFOs

  21. Similar divergent experience for technical services managers

  22. Corporate services managers are most experienced in Gauteng

  23. Improvement in senior managers’ qualifications over time

  24. MMs are most qualified and Technical Services managers are the least qualified of key managers

  25. Key findings on management qualifications & experience

  26. Management vacancies

  27. 3 out of 4 Section 57 Posts were filled

  28. B1s and B3s had long vacancies for S57

  29. One in Four S57 posts was vacant for more than 3 months: NC highest

  30. Almost 1 in 6 S57 managers exited in FY, higher in FS, MP, LP & KZN

  31. High attribution of exits to resignations

  32. Key findings on vacancies

  33. Technical & specialist skills

  34. Spread of Engineers is very uneven

  35. Chronic Shortage of Engineering Professionals in B4 and C2 Municipalities. Most Engineers in Metros

  36. 49% of all municipalities and 44% of C2s do not have a registered engineer

  37. Lack of engineers in C2 districts, given their infrastructure assets, is a cause for concern

  38. Planners are also mostly in Metros. Number of planners per municipality is concerning, especially C1s.

  39. 41% of all municipalities and 44% of C1s do not have a registered planner

  40. Key findings on scarce skills

  41. Two Tier System

  42. Governance and Administration dominates staffing in B4s and C1s

  43. Governance and Administration Expenditure for B4s, C1s and C2s is large • B4s spend about 70% on Governance & Administration • This is also very high (41%) in their C2 partners • C1s spend more than 50% on GAPD

  44. This is consistent with reviews undertaken of two-tier local government • The role of district municipalities in many parts of the country is dominated by governance and administration rather than municipal service delivery • Where districts have significant service delivery responsibilities, better role clarification and efficiently designed governance and financing arrangements are needed • Most Districts have Yet to fulfil role as redistributors of capacity, as they have not been able to attract scarce technical skills such as engineers and planners to rural spaces

  45. Determinants of Performance

  46. What can we attribute performance to? • Staffing? • Budgets? • Experience of Managers? • Qualifications? • In doing this analysis, we utilised information made available by regulatory • We therefore relied mostly on Water services, while some performance information was collected for Roads, Fires Services and Solid Waste and other services

  47. We did not find an obvious correlation between performance and capacity in water sector

  48. There is a relationship between context and performance, but many exceptions

  49. The untold story on audit opinions 2011 Source: PDG, 2012

  50. No direct relationship between MM & CFO Experience & Qualifications with Audit Outcome

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