www.salga.org.za 1 app 2015/16 presentation to the portfolio committee on cogta 10 march 2015

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APP 2015/16

Presentation to the Portfolio Committee on COGTA

10 March 2015

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BACKGROUND TO SALGA’S BACKGROUND TO SALGA’S 2015/16 APP2015/16 APP

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Employer Body

Act as an employer body representing all

municipal members and, by agreement,

associate members.

The Voice of Local GovernmentThe Voice of Local Government

Support and advise our

members on a range of issues to

assist effective execution of

their mandate.

Build the capacity of the

municipality as an institution as well as leadership and technical capacity

of both Councillors and

Officials.

Lobby, advocate,

protect and represent the

interest of local government at

relevant structures and

platforms.

Transform local

government to enable it to

fulfil its developmental mandate.

SALGA Mandate

Lobby, Advocate & Represent

Support &Advice

Capacity Building

Build the profile and image of

local government within South

Africa as well as outside the

country.

StrategicProfiling

Serve as the main hub of local

government knowledge and intelligence and to facilitate peer learning within

the sector

Knowledge & Information Sharing

The Voice of Local GovernmentThe Voice of Local Government

SALGA MANDATESALGA MANDATE

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Challenges requiring urgent redress

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Challenges that continue to bedevil LG progress

5 Source: CoGTA

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SALGA APP SALGA APP (2015/16)(2015/16)

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SALGA National

SALGA Provinces

7 STRATEGIC GOALS

1)Accessible, equitable, sustainable services

2)Safe and healthy environment and communities

3)Coherent local planning & economic development

4)Effective, responsive and accountable local governance for communities

5)Human capital development in LG

6)Financially and organizationally capacitated municipalities

7)Effective and efficient SALGA administration.

4 APEX PRIORITIES:

1.Review of legislative & policy framework impacting negatively on LG.2.Review of LG fiscal & financial management framework.3.Improved municipal capacity.4.Reposition SALGA as a centre for LG excellence, knowledge & intelligence

Differentiated Approach to Managing / Supporting Local Government

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SALGA MANDATES1.Representation 2.Employer Body3.Capacity Building4.Support and Advisory Role 5.Profiling Role 6.LG Knowledge Hub


SALGA 5 YEAR STRATEGIC PLAN

2012-2017


2012-2017

INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. B2B Approach5. Electoral Mandate (2011)

INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. B2B Approach5. Electoral Mandate (2011)

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2015/162015/16

SALGA STRATEGIC PLAN 2012-2017

Year 12012/13

Year 22013/14

Year 32014/15

Year 42015/16

Year 52016/17

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ANNUAL PERFORMANCE

PLAN2015/16

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The SALGA APP (2015/16) seeks to bring greater focus to SALGA’s programme of action, by having fewer and more impactful and outcomes based indicators, as well as institutionalising the multi-disciplinary planning and delivery approach within SALGA and its partners

Introduction and Background to APP 2015/16approach

5 KPIs

PER GOAL

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SALGA PERFORMANCE PLANNING AND REPORTING FRAMEWORK

• The SALGA APP 2015/16 which represents year four (4) of the SALGA Strategic Plan: 2012-17 now consists of:– 4 Apex Priorities

– 7 Strategic Goals,

– 36 Targets/Deliverables

• Organisational performance reporting shall be based on the 36 targets and similarly for auditing by AG

• There is a direct correlation between the SALGA APP and the Back to Basic Approach

• Current planning up to 2017/18 financial year although new strategy will be developed in 2016/17 post LG elections

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Continuous efforts to streamline the plan towards greater performance and

reporting efficiencies

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SALGA’S APEX PRIORITIES SALGA’S APEX PRIORITIES FOR FOR

2015/16 2015/16

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APEX 1: REVIEW OF THE LEGISLATIVE AND POLICY FRAMEWORK IMPACTING

NEGATIVELY ON LG

As highlighted in the Back to Basics Approach, the creation of an enabling environment for local government is a critical factor if we are to realise improved service delivery. It speaks to issues of good

and transparent governance, spatial transformation, decentralisation with coordinated and coherent support from all stakeholders.

Overview of Challenges

•The legislative environment remains highly problematic. It is often characterised by over-regulation, under-regulation or policies and legislation that are misguided. It is particularly problematic where it relates to powers and functions, reporting, finance and fiscal management.

Overview of Interventions

•To decisively address the declining confidence in Local Government. The outcome here is to stabilise the sector & achieve institutional consolidation reflected in a strong anti-corruption, accountability and consequence management regime in the sector

•SALGA’s influence in legislative and policy review processes is a key priority. The outcome is to reduce over-regulation, inappropriate regulation, unblock bottlenecks in the current legislative dispensation

•The policy and legislative regime must consolidate decentralisation, strengthen LG and place it at the forefront of leading spatial transformation and economic development at a macro and local level in South Africa

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Expected Outcome By end 2015/16:

•Policy and Legislation that was targeted, reviewed and influenced by SALGA was supported by all stakeholders and passed by Cabinet and Parliament respectively

Expected Impact By end of 2015/16

•The functioning of municipalities was improved by revised or new policy and legislative frameworks that were influenced by SALGA and has resulted in spatial transformation, improved and sustained service delivery and accountability by municipalities and key role players in the municipal space

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APEX 1: REVIEW OF THE LEGISLATIVE AND POLICY FRAMEWORK IMPACTING

NEGATIVELY ON LG

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Apex 2 resonates with the underlying ethos of the Back to Basics approach – ensuring that the internal and external financial environment/fiscal frameworks are promoting sustainable and informed service

delivery processes. Effective growth and development should be enabled in both rural and urban settings.


•The fiscal regime compromises most municipalities to deliver on their mandates. Challenges here include municipalities that have limited economic bases and by extension limited rates bases. This is exacerbated in most rural municipalities and declining urban economies having huge indigence’s and by extension huge populations that must receive basic services from municipalities while not being able to pay for them. Big urban economies are often recipients of large scale migration (urbanisation) which puts pressure on their ability to deliver on everyone’s expectations. Fiscal and budget planning processes are currently unable to address these challenges. This is made worse in some municipalities that do not have the necessary capacity and systems to administer even the finance that they are currently able to solicit.

•Fragmented infrastructure grant system (plethora of sector grants)


•Strengthen relations with national & provincial spheres of government in building an enabling fiscal framework for developmental LG and ensure sound financial management within the sector, improve inter-governmental fiscal integration, equity and achieve financial sustainability of LG

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APEX 2: SOUND FINANCIAL MANAGEMENT AND

FISCAL FRAMEWORK FOR LG

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Expected Outcome By end 2015/16:

•Through SALGA’s influence, municipal boundary redetermination, municipal funding, unfunded mandates, cost of compliance with new regulations (SCOA, SPLUMA) and the need for regulatory impact assessment framework was recognised by CoGTA and NT, accepted by Cabinet and corresponding equitable budgets appropriated by Parliament

•No municipality remains in the red zone regarding audit outcomes

Expected Impact By end of 2015/16

•There was equitable allocation to LG in the national division of revenue which empowered municipalities to fulfil their constitutional mandates resulting in improved delivery of municipal services in the country

•Accountability and public confidence in municipalities use of public resources is restored through better audit outcomes 15

APEX 2: SOUND FINANCIAL MANAGEMENT AND

FISCAL FRAMEWORK FOR LG

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Apex 3 is the driving force behind the Back to Basics approach, as it is apparent that the sector can only flourish when both the management and institutional practices are of sufficient standards to

deliver much needed services in a sustainable and transparent manner. There is movement towards the provision of long term capacity building processes with active and ongoing support to ensure

transfer of learning into the institutional system as a whole.


•Capacity in municipalities has remained a stubborn challenge despite huge efforts and funds that have been dedicated to it. On the one hand municipalities are poorly structured and supported while on the other hand the human resources are often ill-equipped to lead or to implement policies. Skills development programmes have been unable to build the critical mass of skilled councillors or Local Government professionals. The high turnover of staff has also made a difficult situation even worse. Rural municipalities find themselves in the most vulnerable positions as they struggle to attract even the limited pool of skilled human resources.


•Build strategic capability of municipalities to fulfil their mandates in delivering basic services, facilitating inclusive growing local economies that create vibrant livelihoods for residents to live, work and play governed by sustainable, transparent and accountable municipal authorities

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APEX 3: IMPROVE MUNICIPAL CAPACITY

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Expected Outcome By the end of 2015/16:

•The capacity of municipalities to effectively and efficiently lead, plan, manage themselves and their resources and account to their residents was significantly enhanced compared to 2014/15 baseline and confirmed by good audit outcomes and service delivery.

Expected Impact By the end of 2015/16

•Local communities enjoyed visibly improved delivery of basic services, qualitative growth of local economies and employment was recorded and improvements in the quality of life of local residents was confirmed through objective evaluations.

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APEX 3: IMPROVE MUNICIPAL CAPACITY

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Underlying the Back to Basics Approach is the need to tackle problem areas before they have escalated to the point that communities take action into their own hands and resort to protest and violence. Information and knowledge are fundamental ingredients in proactive

redress of challenges. Accurate and accessible data management is key to informed planning processes, and enables prioritisation of processes and concomitant financial

outlays.


•A centralised and integrated Local Government Knowledge and Intelligence Resource remains a challenge and therefore makes it difficult for Local Government authorities to access information in a timely manner in order to make informed and reliable decisions.

Overview

•Reposition SALGA as a centre of excellence, knowledge, intelligence and innovation to heighten its influence in the IGR space, improved support and advice to municipalities by building high performance strategic capability, brand identity for SALGA and the sector, improved thought leadership to drive the BIG IDEAS agenda in the sector and internal change management to facilitate a shift towards outcome and impact orientation.

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APEX 4: REPOSITION SALGA AS A CENTRE FOR LG

EXCELLENCE, KNOWLEDGE AND INTELLIGENCE

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Expected Outcome By the end of 2015/16:

•SALGA had repositioned itself as a high performing organisation that drove thought leadership, provided a platform for sector specific governance and leadership discourse and established functional knowledge and business intelligence systems and sharing of best practice that improved its mandate as an effective Voice of Local Government.

Expected Impact By the end of 2015/16

•SALGA had become a reliable, self-sufficient and effective centre of excellence and source of sector intelligence, governance and leadership that improved the ability of local government to fulfil its mandate.

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APEX 4: REPOSITION SALGA AS A CENTRE FOR LG

EXCELLENCE, KNOWLEDGE AND INTELLIGENCE

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DELIVERABLES PER DELIVERABLES PER STRATEGIC GOAL STRATEGIC GOAL

2015/16 2015/16

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GOAL 1:LOCAL GOVERNMENT DELIVERING EQUITABLE AND SUSTAINABLE SERVICES

Nr Link to B2B Outcomes 2015-16

1 Delivering Basic Services

Electricity reticulation is in accordance with the Constitutional and LG legislative framework


Service authorities fulfilling their authority functions for selected municipal services


Improved access to Infrastructure funding


Improved co-ordination and access to service delivery support for municipalities


The provision of municipal services becomes more sustainable and resilient

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GOAL 2:SAFE AND HEALTHY ENVIRONMENT AND COMMUNITIES

Nr Link to B2B Outcomes 2015-16


Municipal environment becomes safer, cleaner and more sustainable: Climate change mainstreamed


Municipal environment becomes safer, cleaner and more sustainable: SALGA support strategy on environment implemented


The role of women in LG is enhanced and gender issues are mainstreamed in the sector

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GOAL 3:PLANNING AND SOCIO-ECONOMIC DEVELOPMENT AT LOCAL GOVERNMENT LEVEL

Nr Link to B2B Outcome 2015-169 Delivering Basic

ServicesImproved ability of municipalities to shape and manage integrated development in their spaces: implementation of SPLUMA


Improved ability of municipalities to shape and manage integrated development in their spaces: LG roles in Sport and Recreation, Libraries and Disaster Management


Improved ability of municipalities to shape and manage integrated development in their spaces: All development planning legislation to be consistent with SPLUMA


Improved ability of municipalities to shape and manage integrated development in their spaces: Development of a devolution strategy for LG


Small towns are revitalised to effect greater socio economic development

14 Building Capabilities

The capabilities of municipalities and their development agencies to facilitate economic development is improved: capacity boiling for LED and planning practitioners to be agents for change


The capabilities of municipalities and their development agencies to facilitate economic development is improved: municipalities supported to integrate climate change, vulnerable groups and poverty eradication in their programmes

www.salga.org.zaGOAL 4:

EFFECTIVE, RESPONSIVE AND ACCOUNTABLE LOCAL GOVERNANCE TO COMMUNITIESNr Link to B2B Outcome 2015-1616 Putting people first and

engaging with communities

Good governance

Policy and regulatory framework for local government is developmentally orientated and less onerous: Structured engagement with National and Provincial Legislatures and Executive

17 Putting people first and engaging with communities

Good governance

Policy and regulatory framework for local government is developmentally orientated and less onerous: Regulatory impact assessment tool developed and lobbied for implementation


Good governance

A decent, fair and equitable councillor and senior management remuneration and support framework


Good governance

Strengthen Public Participation approaches and processes in municipalities


Good governance

Oversight and Accountability in LG is enhanced through effective policies, systems, structures and implementation (including anti-corruption measures)

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GOAL 5:HUMAN CAPITAL DEVELOPMENT IN LOCAL GOVERNMENT

Nr Link to B2B Outcome 2015-16


A multi gains approach to collective bargaining enhanced resulting in improved Labour Relations: Lobby and represent the interest of the employer


A multi gains approach to collective bargaining enhanced resulting in improved Labour Relations: facilitate, advocate and advice municipalities on labour relations


Professional human resources management & development in LG


Leadership and technical capacity of municipalities is enhanced to lead and manage resilient and stable municipal institutions: Phase 2of the SALGA Centre for Leadership and Governance implemented


Leadership and technical capacity of municipalities is enhanced to lead and manage resilient and stable municipal institutions Facilitate the implementation of training and leadership development programmes for councillors and officials ( portfolio based)

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GOAL 6:FINANCIALLY AND ORGANISATIONALLY CAPACITATED MUNICIPALITIES

Nr Link to B2B Outcome 2015-16

26 Sound Financial Management

Local government fiscal framework is more equitable: equitable fiscal dispensation for LG


Local government fiscal framework is more equitable: effective and sufficiently funded LG w.r.t. Sport and Recreation, Libraries and Disaster Management


Financial and fiscal reform: Support municipalities in the implementation


Fiscal instruments adequately reflect life cycle cost of infrastructure services


Municipalities improve revenue management, credit control and outstanding debt


Municipalities with adverse and disclaimed audit opinions is eradicated

www.salga.org.zaGOAL 7:

EFFECTIVE AND EFFICIENT ADMINISTRATION

Nr Outcome 2015-16

32 SALGA is the hub of local government data, knowledge and intelligence to improve local government functioning

33 Long term sustainability and relevance of SALGA is assured

34 The image and credibility of local government is strengthened

35 SALGA is an efficient, effective and sustainable organisation

36 SALGA is globally acknowledged as a leading local government association

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SALGA FLAGSHIP SALGA FLAGSHIP PROJECTS FOR 2015/16PROJECTS FOR 2015/16

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2015/16 FLAGSHIP PROJECTS

1. Development of the model for decentralisation for LG

2. Research into the state of by-laws in municipalities in order to determine how it facilitate developmental LG or not

3. Implementation of the Municipal Audit Support Programme

4. Cost of Free Basic Services Study

5. Service Authority Role for Infrastructure Services

6. Response Referral Results

7. Implementation of the SALGA Centre for Leadership Academy

8. Implementation of the Small Town Regeneration

9. Municipal Barometer Rollout29

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SALGA INTERVENTIONS IN SALGA INTERVENTIONS IN SUPPORT OF SUPPORT OF

““BACK-TO-BASICS”BACK-TO-BASICS”

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SALGA National

SALGA Provinces

7 SALGA GOALS1)Accessible, equitable, sustainable services

2)Safe and healthy environment and communities

3)Coherent local planning & economic development

4)Effective, responsive and accountable local governance for communities

5)Human capital development in LG

6)Financially and organizationally capacitated municipalities

7)Effective and efficient SALGA administration.

MINISTRY FOCUS:Back to Basics:

Taking LG Forward

1.Putting people first and engaging with communities

2.Delivering basic services

3.Good governance

4.Sound financial management

5.Building capabilities

APEX PRIORITIES1.Review of the legislative and policy framework2.Sound financial management and fiscal framework for LG3.Improve municipal capacity.4.Reposition SALGA as a centre for LG excellence, knowledge & intelligence

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2012-2017


2012-2017

INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. LGTAS5. Electoral Mandate (2011)

INTER / NATIONAL CONTEXT1. MDGs & Global Commitments2. National Dev Plan & other national plans/policies 3. MTSF4. LGTAS5. Electoral Mandate (2011)

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SALGA’s support and advice to municipalities for the next 5years i.t.o. Back to Basics Approach

Basic services: creating decent living conditions

•Will develop and establish baselines for municipalities to ensure that they fulfil their role as service authorities w.r.t water, sanitation, electricity and then supported to fulfil the functions

•Develop and implement a strategy for service delivery support to municipalities

•Facilitate knowledge sharing on alternative energy, energy efficiency and greener service delivery mechanisms

•Assist municipalities to implement the SALGA DEA strategy on environment and support them to integrate issues of climate change and vulnerable groups

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Good governance and public participation•Develop a regulatory impact assessment tool to determine the impact of policy and legislative amendments on municipalities•Promote good practices and knowledge sharing among municipalities on innovative public participations approaches, through partnerships, such as with civil society•Municipalities to be assisted with improving oversight and accountability, in particular strengthening MPACs in their functionality•Municipalities to be assisted to monitor the implementation of anti-corruption measures•Facilitating ethics training in municipalities•On-going governance hands-on support and legal advice

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Institutional capacity

•Implement capacity development programme for LED and Planning Practitioners

•Advise municipalities on labour relations processes and policies, including dispute management, conciliation , arbitration and litigation

•Prioritised areas of the Professionalization framework implemented in selected municipalities

•Leadership development and minoring through the SALGA Centre for Leadership and Governance

•Portfolio based training and leadership development for councillors and officials

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SALGA’s support and advice to municipalities for the next 5years

i.t.o. Back to Basics Approach

Financial Management

•Support municipalities to implement financial reforms such as SCOA

•Assist municipalities to define the costs for water, electricity, waste management and transport services

•Develop a model on billing and alternative revenue sources for municipalities and assist them to implement it

•Further implementation of the Municipal Audit Support Programme

•Finding a resolution to the issue of unfunded and underfunded mandates

•Costing of re-demarcations and the securing of transitional funding support for the affected municipalities

•Inputs into the Budget Forum on the consolidation of the infrastructure grants and the review of the equitable share formula35

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BUDGET BUDGET 2015/162015/16

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BackgroundBackground

Legislative BackgroundLegislative Background

SALGA as a schedule 3A public entity in terms of the Public Finance Management Act (PFMA) is required to prepare its “Annual Budget” and “Corporate Plan”. The Annual Budget which is an annexure to the organizational Corporate Plan shall include a projection of revenue, expenditure and borrowings for that financial year in the prescribed format (section 52(a) of the PFMA).

The Annual Plan shall constitute a basis for the evaluation of the organizational financial

performance as envisaged by the PFMA Treasury Regulation no. 29.3. The financial Key Performance Indicators (KPI’s) derived from the annual budget shall facilitate an effective performance monitoring, evaluation and corrective action.

The PFMA Treasury Regulation 29.1.1(g) stipulates that an annual budget must include: projections of revenue, expenditure and borrowings;

asset and liability management; cash flow projections; capital expenditure programmes; and dividend policies (if applicable).

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Methodology to develop the Organisational Methodology to develop the Organisational BudgetBudget

1st draft Budget for 2015/16 MTEF28 July 2014

2nd draft Budget for 2015/16 MTEF3 October 2014

EMT Lekgotla14-15 August 2014

Budget Panel12 November 2014

NEC meetingNovember 2014 - January 2015

Consultation with PEC’sOctober 2014 to January 2015

Prepare and submit Estimates of National Expenditure (November

2014 to January 2015)

Receive allocation letter from Executive Authority

(October 2014)

Submit indicative Budget to Executive Authority (At least six months before start of financial year)

Provincial Members AssemblySeptember - October 2015

The Budget Process

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Budgeting ParametersBudgeting Parameters

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R thousand Medium-term estimate

Budget Parameters 2015/16 2016/17 2017/18 Administrative Costs Growth Rate – Projected Consumer Price Index (CPI) 5.6% 5.5% 5% Employee Costs Growth Rate - Consumer Price Index (CPI plus 100 basis points) 6.6% 6.5% 6%

Operating Expenditure R463 544 R481 630 R508 872

Gross Membership Levies R438 878 R466 921 R494 584

Early Settlement Discount (R14 483) (R15 408) (R16 321)

Net Membership Levies R424 395 R451 513 R478 263

Government Grant – Executive Authority R 9 255 R Nil R Nil

Membership Levy Formula (proposed) Metropolitan Municipalities Flat rate plus CPI

and 1 percentage point

Flat rate plus CPI and 1 percentage

point – Using 2015/16 as Base

Year

Flat rate plus CPI and 1 percentage

point – Using 2016/17 as Base

Year

Local and District Municipalities 1% of annual salary budget with

a minimum of R500 000

NB: National Treasury (NT) has reduced the Grant for 2015/16 and completely taken away the allocation for 2016/17. It must be noted that we have

budgeted without the grant allocation from the budget for 2017/18 although still part of NT allocation.

Discounts for the MTEF to be taken up by members are projected as follows:1)5% for April - 30% of members;

2)3.5% for May - 30% of members;

3)2.5% for June - 30% of members;

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Budgeting ParametersBudgeting Parameters

Growth rate

• The projected CPI for 2015/16 is estimated at 5.6%; for employee related costs the escalation is CPI + 1 percentage point i.e. 6.6%.

• CPI for the 2016/17 and 2017/18 periods is estimated at 5.5% and 5% respectively. The principle of CPI + 1 percentage point has been applied for employee related costs.

Membership levies (assumptions at 90% collections)

The membership levies are derived from the following formula:

Metros

• A flat rate of R 11 000 000 (being R 11 000 000 X 6.6% and rounded downwards) for the 2014/15 financial year; as it is subject to an annual inflationary increase (CPI).

Districts & Locals (New Rate)

• 1% of the annual salary budget, with a minimum of R500 000.

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Proposed new formula from 2016/17Districts and Local Municipality membership levy increases will be calculated

CPI+1 percentage point using 2015/16 as the base year.

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REVENUE MIX FOR 2015/16REVENUE MIX FOR 2015/16

Membership levies93%

Government grants

2%

Other grants0%

Capacity building income

2%

Sponsorships & Donations

1% Recoveries2%

Other income0%

Other gains / losses

0%

Donor income received

0%

REVENUE MIX FOR 2015/16

Membership levies Government grants Other grantsCapacity building income Sponsorships & Donations RecoveriesOther income Other gains / losses Donor income received

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EXPENDITURE DISTRIBUTION EXPENDITURE DISTRIBUTION FOR 2015/16FOR 2015/16

Administration costs20%

Depreciation & amortisation

1%

Professional and advisory services

1%

Contracted services

1%

Employee related costs22%

Programme costs55%

OPERATING EXPENDITURE DISTRIBUTION FOR 2015/16

Administration costs Depreciation & amortisationProfessional and advisory services Contracted servicesEmployee related costs Programme costs

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DRAFT REVENUE PROJECTIONSDRAFT REVENUE PROJECTIONS

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Category

GLAccount #

Account name

Budget - 2015/2016

Financial YearPROPOSED

Budget - 2016/2017


Budget - 2017/2018


Turnover410100 Membership levies 424 395 067 451 512 719 478 263 098 420100 Government grants 9 255 000 - - 430100 Other grants 30 000 - - 440100 Capacity building income 8 744 500 7 515 000 6 550 000 450100 Sponsorships & Donations 4 700 000 6 033 400 6 172 936 460100 Recoveries 8 700 000 8 550 000 8 250 000 470100 Other income 480 000 474 523 474 523 480100 Other gains / losses - - - 490100 Donor income received 380 000 400 000 400 000

Total Income 456 684 567 474 485 642 500 110 557

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DRAFT 2015/16 to 2017/18 MTREFDRAFT 2015/16 to 2017/18 MTREFStatement of Financial PerformanceStatement of Financial Performance

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SALGA BUDGET - 2015/16 to 2017/18 MTREFSTATEMENT OF FINANCIAL PERFORMANCE

Category

GLAccount #

Account name

Budget - 2015/2016


Budget - 2016/2017


Budget - 2017/2018


Turnover410100 Membership levies 424 395 067 451 512 719 478 263 098 420100 Government grants 9 255 000 - - 430100 Other grants 30 000 - - 440100 Capacity building income 8 744 500 7 515 000 6 550 000 450100 Sponsorships & Donations 4 700 000 6 033 400 6 172 936 460100 Recoveries 8 700 000 8 550 000 8 250 000 470100 Other income 480 000 474 523 474 523 480100 Other gains / losses - - - 490100 Donor income received 380 000 400 000 400 000

Total Income 456 684 567 474 485 642 500 110 557 Operating costs

610100 Accounting fees and other charges -89 760 -94 697 -99 432 610200 Administration costs -7 811 174 -8 240 789 -8 652 828 610400 Corporate Governance costs -4 910 126 -3 404 308 -3 574 523 610500 Audit Fees -3 273 600 -3 453 648 -3 626 330 610600 Communication costs -3 886 927 -4 100 708 -4 305 743 610700 Repairs and maintenance -422 400 -445 632 -467 914 610800 Motor Vehicle Expenses -200 746 -211 787 -222 376 610900 IT Costs -11 154 528 -11 768 027 -12 356 428 611000 Marketing & Advertising -8 150 736 -8 599 026 -9 028 978 611100 Training Costs -3 358 080 -3 542 774 -3 719 913 611200 Recruitments Costs -3 606 240 -3 804 583 -3 994 812 611300 Office Accommodation Costs -45 216 636 -47 703 551 -50 088 728 620100 Depreciation & amortisation -5 842 209 -5 923 827 -6 220 019 630100 Professional & Advisory Services -4 192 800 -4 423 404 -4 644 574 640100 Contracted services -3 439 120 -3 628 272 -3 809 685 650100 Employee Related Costs -104 742 388 -112 467 671 -123 089 883 651100 Re-imbursed Costs to Councillors -5 422 791 -5 721 044 -6 007 097 660100 Programme costs -247 823 628 -254 096 104 -264 962 360

Total Operating costs -463 543 889 -481 629 852 -508 871 624 Non-operating income and (expenditure) -8 036 039 -8 461 949 -8 910 432

Total Expenditure -455 507 850 -473 167 902 -499 961 192 Surplus or Deficit for the Year 1 176 717 1 317 739 149 365

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DRAFT 2015/16 BUDGETDRAFT 2015/16 BUDGETProgramme CostProgramme Cost

(Excl. related salary costs)(Excl. related salary costs)

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Consolidated summary per OBJECTIVE

Account Name ADMINGoal 7

CODGoal 2

EDPGoal 3

IGRGoal 4

MFNGoal 6

MIDGoal 5

MISGoal 1

TOTAL

660110 - Professional & Advisory Services - external 10 466 151 2 122 394 3 059 947 4 456 391 2 446 795 3 858 391 3 167 593 29 577 664 650160 - Subsistence & travel - Employees 747 442 350 335 375 280 535 495 407 752 557 975 427 263 3 401 543 651110 - Subsistence & travel - Councillors 1 003 304 565 081 318 401 1 823 242 332 561 794 282 585 921 5 422 791 661120 - Car hire 416 835 212 141 172 618 325 832 145 594 288 450 259 403 1 820 872 661130 - Shuttle service 252 336 146 738 93 115 244 315 61 303 178 295 96 049 1 072 152 661140 - Flight costs - local 1 757 089 890 524 783 770 3 860 126 1 224 633 982 410 968 902 10 467 454 661150 - Flight costs - international 1 070 054 27 684 23 070 39 219 20 763 39 219 29 991 1 250 000 661160 - Travel costs - other 67 120 12 700 20 583 68 991 44 075 68 991 43 758 326 217 661170 - Venue hire 1 407 958 785 992 874 993 1 255 838 729 494 1 038 488 685 491 6 778 253 661180 - Accommodation 1 907 159 1 017 148 776 790 1 722 358 1 081 941 1 265 543 842 827 8 613 765 661190 - Catering costs 796 791 488 017 315 014 627 079 294 154 525 524 429 518 3 476 096 661200 - Training costs 771 981 306 843 230 703 982 449 1 687 632 577 194 234 913 4 791 716 661210 - Equipment Hire 149 256 106 819 47 349 200 494 92 614 156 494 61 554 814 582

20 813 476 7 032 416 7 091 632 16 141 829 8 569 312 10 331 256 7 833 184 77 813 105

www.salga.org.za

DRAFT 2015/16 CAPEX BUDGETDRAFT 2015/16 CAPEX BUDGET

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APPENDIX D - CAPITAL EXPENDITURE SUMMARYAccount Name

2015/2016Financial Year

2016/2017 Financial Year

2017/2018 Financial Year

Capital Acquisitions per category110440 - Furniture & Fittings @ Cost 1 357 591 350 000.00 250 000.00 110460 - IT Equipment @ Cost 1 714 494 1 500 000.00 500 000.00 110480 - Office Equipment @ Cost 235 022 200 000.00 300 000.00 110500 - Motor Vehicles @ Cost 1 110 000 - - 120110 - Intangible Assetss @ Cost 4 063 085 2 500 000.00 2 500 000.00 120210 - Leasehold improvements @ Cost 940 000 1 000 000.00 1 000 000.00 120220 - Leased assets @ Cost - 250 000.00 250 000.00

7 420 191 5 800 000.00 4 800 000.00

www.salga.org.za

SALGA IS MATURINGSALGA IS MATURING

”Day by day nothing changes … but one day when you look back everything is different”

• Strong winds set deep roots … We have taken our time to establish our roots in order to anchor a mighty

tree

• Collective effort towards Building SALGA as a centre of Corporate Excellence are beginning to yield the necessary fruits.

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www.salga.org.za

Maturing Phase

2009/10 Unqualified

Audit Opinion

Sustainability Phase

2010/11 Unqualified

Audit Opinion

2011/12 Unqualified

Audit Opinion

2012/13 Unqualified Audit

Opinion with no findings

(Clean)

2013/14 Unqualified Audit

Opinion with no findings

(Clean)

www.salga.org.za

Thank you

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www.salga.org.za 1 app 2015/16 presentation to the portfolio committee on cogta 10 march 2015

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