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OUTLINE OF PRESENTATION. Purpose of Presentation Departmental Audit Outcomes Overview of Municipalities Status of Municipalities as per Portfolio Committee’s Focus Areas Challenges Conclusion. 1. PURPOSE OF PRESENTATION.
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OUTLINE OF PRESENTATION • Purpose of Presentation • Departmental Audit Outcomes • Overview of Municipalities • Status of Municipalities as per Portfolio Committee’s Focus Areas • Challenges • Conclusion
1. PURPOSE OF PRESENTATION • To share information on the state of governance in the 32 municipalities of the Northern Cape, with a special focus on the challenges and interventions towards achieving Clean Audits by 2014. • As requested by the Portfolio Committee, the presentation will cover the following focus areas:- Governance, Financial Management, Service Delivery, Bulk Infrastructure, and Corruption.
2. DEPARTMENTAL AUDIT OUTCOMES Over the last 3 years, Department of Cooperative Governance, Human Settlements and Traditional Affairs (COGHSTA) achieved the following audit outcomes: 2011/12 - Unqualified 2010/11 - Qualified • Coghsta was qualified on Assets and Housing Grant due to Municipalities not following Supply Chain Management Processes 2009/10 - Unqualified
2. DEPARTMENTAL AUDIT OUTCOMES COGHSTA’s interventions to facilitate a clean audit within the department for 2012/13 and going forward towards 2014, involves the following: • Implementing an Audit Improvement Plan • Jointly with AG, monitor the implementation of Coghsta’sAudit Improvement Plan • Implementing a Risk Management Plan • Jointly with AG, monitoring the effective implementation of COGHSTA’s Internal Controls • Full cooperation with the Auditor-General during the audit process
3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows:
3. OVERVIEW OF NORTHERN CAPE MUNICIPALITIES Northern Cape has 5 District Municipalities and 27 Local Municipalities categorised as follows:
4. MUNICIPALITIES IDENTIFIED FOR TARGETED SUPPORT 13 Local Municipalities are receiving targeted support from Northern Cape COGHSTA and National DCOG with Local Government Turn-Around Strategy (LGTAS),and 7 of these same municipalities are also receiving support from the Municipal Infrastructure Support Agency (MISA): John Taolo Gaetsewe District Municipality identified by National Cabinet as one of the 23 Rural Districts requiring support
5. STATUS OF MUNICIPALITIES AS PER PORTFOLIO COMMITTEE’S FOCUS AREAS 5.1 ENHANCING GOOD GOVERNANCE IGR STRUCTURES IN THE PROVINCE: • District IGR Forums: Chaired by Executive Mayors of District Municipalities; Mayors of Local Municipalities part of the District IGR; SALGA Northern Cape, All Regional Directors of Provincial Sector Departments part of District IGRs (Quarterly Meeting): ALL 5 DISTRICTS HAVE FULLY FUNCTIONAL IGRs • MUN-MEC: Chaired by MEC for Local Government; all Executive Mayors and Mayors and Chairperson of SALGA Northern Cape part of MUN-MEC; Mayors attend with Municipal Managers and CFOs; All provincial sector departments invited to MUN-MEC meetings (Quarterly Meeting)
Premier’s Inter-Governmental Forum: Chaired by Premier and MEC for Local Government as alternate Chair; All MECs, Chaiperson of SALGA in the Province, Executive Mayors and Mayors, Director General, Provincial HoDs, CEO of SALGA in the Province, Municipal Managers and All National Sector Departments in the Province attend (Quarterly meeting)
Public Participation: • COMMUNITY DEVELOPMENT WORKERS:
Challenges with CDWs • Tension between CDWs and elected Ward Councillors as well as Ward Committees due to the fact that ‘some’ CDWs behave as if they are elected public representative, hence they compete with elected Councillors • Department is in the process of finalising appointment of CDW supervisors per municipalities • CDW Supervisors to be assisted by Municipal CDW Mentors
STATE OF WARD COMMITTEES • A total number of 5 Ward Committees have not been established in the following municipalities: - Thembelihe Local Municipality : 2 wards - Karoo Hoogland Local Municipality : 2 wards - Kgatelopele Local Municipality : 1 ward • Accredited training targeting 870 Ward Committee members was conducted in 12 municipalities funded by the European Union • Training to other municipalities will follow soon • Ward Committee members are being paid R1 000 p/m out of pocket expense
Implementation of Municipal Turn Around Strategies • All Northern Cape Municipalities have developed individual MTAS • Municipal IDPs, Budgets and SDBIPs were integrated and adopted by all 32 municipalities • Implementation of the IDP went hand-in-hand with ‘hands on support and Rapid Response’ support processes and leveraging of stakeholder support and reporting and monitoring; • Municipalities report to District IGRs and MUN-MECs on the progress made regarding implementation of MTAS.
Section 139 Interventions: • Since 1999 the Northern Cape Provincial Executive Council never invoked section 139 • The approach adopted by the Provincial Government is to provide support to the municipalities in their respective challenges they are encountering
5.2 FINANCIAL MANAGEMENT Municipal Public Accounts Committees [MPACs] • 31 of the 32 municipalities in the province have established MPACs: Khai-Ma LM has not yet established MPAC as it consists of 7 Councillors, 4 of these Councillors serve as Chairpersons in other committees excluding the Mayor. MEC has advised the Municipality to discuss the possible shared MPAC with Namakwa District Municipality • Although Karoo Hoogland LM has MPAC, it has not yet submitted Council Resolution to MEC • The Association of Public Accounts Committees (APAC), together with its strategic partners: Auditor General South Africa (AGSA), National Treasury (NT), Department of Cooperative Governance (DCoG) and SALGA with the Provincial Legislature, conducted training for all MPAC members on 16 – 18 April 2012 and 24 - 26 April 2012 respectively
FUNCTIONALITY OF INTERNAL STRUCTURES • Internal Audit • 27 of the 32 municipalities have internal audit function in place; • 25 audit reports were verified to assess the effectiveness of internal audits and it was noted that 14 internal audit did not comply to section 165 of MFMA while 11 complied; • 7 audit reports of the following municipalities were not verified as they were not available at the time of completion of this report (Renosterberg, Siyancuma, Siyathemba, Kai !Garib, Kgatelopele, Mier, and Tsantsabane)
AUDIT COMMITTEES • 27 of the 32 municipalities have audit committees in place • 25 audit reports were verified to assess the effectiveness of audit committees and it was noted that 22 audit committees were not effective during 2010/11 financial year while only 3 were evaluated to be effective by Auditor General. • 7 audit reports were not verified as they were not available at the time of completion of this report.
AMOUNT OF DEBT OWED TO MUNICIPALITIES BY GOVERNMENT DEPARTMENTS • The information as at end of June 2012 as published on National Treasury website; • Government departments owed municipalities in the Northern Cape R151 767 911
Interventions: Steps Taken to collect Monies: • The Executive Council has instructed all Provincial Departments to pay municipalities outstanding monies owed to Municipalities. Municipal Managers and Provincial Heads of Departments are busy verifying amounts; • Debt Collection Committee comprising of CoGHSTA and Provincial Treasury established to deal closely with municipalities to assist and support them to collect money which is due to them; • Some municipalities are failing to implement their Credit Control and Debt Collection Policies despite being encouraged by the Department to do that; • Credit control and debt collection Policies of municipalities are being monitored by the Department to ensure adequate implementation;
Compliance with Supply Chain Management Processes • Most municipalities were qualified on non-compliance with Supply Chain Management processes; • During the monitoring of Audit Action Plans, municipalities were advised on how to deal with SCM transactions to avoid irregular and unauthorised expenditures. • Furthermore, Provincial Treasury: Supply Chain Management is providing hands on support to municipalities
5.3 ACCELERATING SERVICE DELIVERY Status and Pace of Service Delivery in the Northern Cape • 93,6% , which is 177,482 households have access basic level of water i.e. potable water. Access to Free Basic Water is 51 551 Households. All schools and clinics have access to water.; • 79.9% which is 160 000 households have access to basic level of sanitation. Access to Free Basic Sanitation is 51,551 Households. All sanitation backlogs at schools and clinics have been eradicated. • 77.6% , which is 91 232 households have access to basic level of refuse removal. • 82,1%, which is 141 488 Households have access to electricity - of which 48 408 households receive Free Basic Electricity.
IDP Analysis Session • The Northern Cape IDP Analysis took place on the 28 - 30 May 2012 and was meant to arrive at decisions on issues such as municipal budgets and institutional transformation in a consultative, systematic and strategic manner; • 31 Municipalities submitted their draft IDPs, with the exception of Kamiesberg which did not submit as their draft IDP was not yet approved by council but attended and presented at the engagement/analysis session; • A pre-analysis was conducted by the Provincial IDP Task Team members to give feedback to the municipalities on their draft IDPs. Municipalities were requested to complete the IDP template and prepare presentations on the 6 KPA’s highlighting their achievements, challenges, interventions and AG’s audit outcomes. • Municipalities submitted their final adopted IDPs to the MEC on 30 June 2012
Some of the more common issues identified by local municipalities were: • Support/attendance by provincial and national sector departments to the IDP Representative Forums and District IGR still a challenge; • Most municipalities do not have the capacity – human and/or capital – to implement their IDPs; • District municipalities (shared services) support to local municipalities is not effective; • Districts and local Municipalities that will ensure that districts plans are aligned with local Municipal IDP’s to address services delivery challenges. Local municipalities will require more funding as most of the DMA areas fall under their jurisdiction.
IDPs • 23 out of the 32 municipalities adopted their final IDPs by the end of May 2012 • Of the 9 that did not approve before end of May 2012, 5 adopted theirs before end of June 2012 (end of the financial year), whilst 3 adopted theirs in the first month (July) of the new financial year and it is only Karoo Hooglandthat did not adopt their IDP
MONITORING OF IDPS • The Department coordinates the Provincial IDP Task Team which comprises of all Provincial and National Sector Departments and all important role-players • Within the Departments itself, the Directorate of Planning and Development monitors implementation of IDPs: 5 Assistant Directors each allocated a District to monitor and report on monthly basis
5.4 FACILITATING SUSTAINABLE INFRASTRUCTURE Availability and Functionality: • Availability of funding for bulk services still remains a major challenge for the Municipalities in the Northern Cape due to them not generating enough funds to rehabilitate, upgrade renew or extend their existing water and waste water treatment plants and bulk water pipelines which at present are operating beyond their maximum capacity due to expansion of the towns • Municipalities only apply for funding at National CoGTA through Municipal Infrastructure Grant programme (MIG) and Department of Water Affairs with the Regional Bulk Infrastructure Grant (RBIG) and the Accelerated Community Infrastructure Program (ACIP)
FACILITATING SUSTAINABLE INFRASTRUCTURE • With regard to MIG, the annual allocations that they receive prove to insufficient as they are too small to fund the bulk services that are very expensive and in cases the Municipalities would have to commit their entire MTEF allocations over a number of years to be able to fund those projects 100%. The only other alternative is to apply to DWA for assistance through the RBIG and ACIP • DWA has budgeted R30,5 million for ACIP projects in the 2011/2012 financial year and projects include 2 water and 3 waste water projects • 33 projects have been prioritised for the RBIG programme with 11 capital and 10 planning projects being budgeted for the 2012/2013 financial year to the amount of R218,7 m.
FACILITATING SUSTAINABLE INFRASTRUCTUREMIG Funding • Amount allocated to Northern Cape municipalities during 2009/10 = R335m • Amount allocated to Northern Cape Municipalities during 2010/11 = R425m
5.5 FIGHTING CORRUPTION • There has been no proclamations instituted by the Provincial Government; • Department has assisted all Municipalities in developing Fraud Prevention Policies and is also monitoring implementation thereof; • The following slides give details of cases of corruption and fraud which were reported to the Department
