· SALGA Financial Statements 2003/2004

· Questions and Discussion

To ensure a developmental and co-operative local government system in South Africa that is democratic and provides a better life for all; and

To ensure that municipalities are well capacitated, sustainable and deliver high quality services in an equitable, affordable and accessible manner

To build an integrated and sustainable local government association that:

1) Acts as the voice of local government in provincial, national, regional and international fora

2) Supports and strengthens the capacity of municipalities; and

3) Serves as a centre for knowledge and information management through dedicated political leadership and the provision of professional, value adding products and services

SALGA’s mandate derives from the South African constitution, the Organised Local Government Act and the white paper on local government and can be summarised as follows:

1) To develop the capacity of local government

2) To act as a resource for local government:

3) To act as an employer organisation for local government

4) To represent and pro-actively further the interests of local government in national policy formulation as well as legislative and executive processes: and

5) To represent South African local government at regional and international level

Driven by the aspirations of our people, we will respect and uphold the Constitution of the Republic of South Africa.

We commit ourselves to the Code of Conduct for Councillors and Officials in the Municipal Systems Act.

We fully subscribe to the principles of co-operative governance. As a partner in governance we will promote and constructively participate in regional, provincial, national and international programmes

· National Conference

• National General Council

· National Executive Committee

· National Management Committee

· Working Groups (Governance and International Relations Municipal service, Social & Economic Development; Municipal Finance: HR Development and Special Projects)

· Audit Committee

· Procurement Committee

· Remuneration Committee

· Mandating and feedback

· Portfolio system

· Inter Governmental Relations

· SALGA has a sense of the local the government landscape

[PMG note: diagram not included]

[PMG note: diagram not included]

· Consultative Assembly

· National Municipal Managers Forum

SALGA’s Administrative Structure
[PMG note: diagram not included]

SALGA’s Strategic Objectives
· Improve SALGA's ability to deliver high quality services

· Increase the impact and influence of organized local government

· Increase the skills base

· Increase knowledge sharing

· Leverage the collective buying power

· Play a role at regional and international levels

· Poverty

· Unemployment

· urbanisation

· Service Delivery (Water, sanitation, housing, electricity, health provision, infrastructure etc)

· Globalisation

· Information Technology

The SALGA business plan

· Key Challenges in 2003/2004

• Achievements

• Priorities for 2004/2005

• Partnerships

(See pages 19 to 49 in Annual Report 2003/4)

· Department of Provincial and Local Government

· Department of Water Affairs and Forestry

· Department of Minerals and Energy

· National Treasury

· Department of Health

· Education and Training Unit

· Provincial Departments of Local Government

· Development Bank of Southern Africa

· NER

· Donor Agencies

· Private Sector

Governance and International Relations

· constitutional matters

· Local Government legislation

· Powers and Functions of Municipalities

· Councillor Remuneration

· Traditional Leaders

· intergovernmental Relations Policy

· Demarcation

· Elections

· Municipal By-Laws

· Municipal international relations

· Public Participation

· Roles of Elected Municipal Representatives

Human Resources Development

· Labour Relations

· Skills Development

· LGWSETA

· Organizational Development

· Restructuring of Municipalities

· Institutional issues relating to Municipal Service Partnerships

Municipal Support and Interventions

· Municipal Governance

· Municipal Financial Management

· Municipal Administration

· Municipal Human Resource Administration

Municipal Services

· Poverty Alleviation

· Social and Economic Development

· Urban Renewal and Rural Development

· Local Agenda 2l

· Integrated Development Planning

· Town Planning and Land Use Management

· Tourism

· Environmental Health Municipal Finances

Municipal Services – Special Projects

· Gender

· HIV and Aids

· Disability

· Youth Development

Corporate Services

· lCT Strategy for Local Government

· Municipal communications

· Media Relations

· Public Relations

· Publications

· Marketing

· Committee Services

· Revenue Collection

· Human Resources

· Finance and Administration,

AUDIT OPINION

Financial Management

For the year under review there were certain instances of non-compliance with the PFMA and Treasury Regulations in the following areas:

· Risk assessment not conducted as required by Treasury Regulation 27.2.1

• No materiality framework developed as required by Treasury Regulation 28.1.5

· Financial year end not I-n line with Treasury Regulation 28.1.3

Audit Opinion

• No quarterly reporting to the Minister of Provincial and Local Government as required by Treasury Regulation 26.1.2

• No register of declaration of interest by members is kept as required by section 50(3) of the PFMA

• Non tabling of the 2002103 annual report in Parliament as required by section 55(3) of the PFMA

Audit Opinion

• Internal Audit Function

The internal audit function has not compiled a three-year strategic plan and an annual plan for its first year of operation as a result of the risk assessments not being carried out.

• Going Concern

As reflected in the income statement the deficit for the year amounts to R 2,549,043. The ability to meet future commitments will depend on the ability to obtain adequate funding.

REVENUE

SALGA received the following income:

• 28% of the total income from equitable share.

• 19% the total income was derived from donor funded projects.

• 51% of the total income received was from Municipal Levies

[PMG note: diagram not included]

• Salaries due to the nature of its products and services SALGA is dependent on human intellectual capacity

• Provincial Costs: Included in the provincial costs are salaries, travel costs, transfers to provincial offices Expenditure on key Priorities (See next slide on key priorities)

• Other operating expenses: include inter alia travelling of SALGA Councillor's and staff, telephone printing and stationery and conference expenses

· The establishment of CCRA

· Restructuring of the Pension Fund

· A tax consultancy service for Councillors

· The establishment of a budget Office and convening Budget week meetings in all Provinces

• The employment of consultants to undertake due diligence audits at the Provincial Offices

· The engagement of consultants to devise a business plan for the Municipal Services interventions unit

· The launch of KSP, District Learning Networks and Peer Reviews

· The development of an Occupational Health and Safety Policy

· The finalisation Of the Property Rates Bill and the Municipal Finance Management Act

[PMG note: diagram not included]

• SALGA maintains a system of internal control designed to provide reasonable assurance that transactions are properly authorised and assets are adequately safeguarded.

• The Office of the Auditor General reports findings and recommendations to management of SALGA.

• Corrective actions are taken to address control and deficiencies and improve the systems as identified.

• The Audit Committee provides oversight to the financial reporting process and Internal controls.

Since June 2004

· National Conference

· New Executive Committee

· Constitution

· Single unified organisation for organised local government

• Staffing

• Finances

Thank You!