Annual Performance Plan FY 2016/17 Presentation to the Portfolio Committee on Cooperative Governance and Traditional Affairs 01 March 2015

Purpose To present to the Portfolio Committee, the Final Annual Performance Plan Financial year 2016/17 for the Department of Cooperative Governance (DCoG) Background Section 5.2.1 and 5.2.2 of the National Treasury Regulations as amended stipulate that In order to facilitate the annual discussion of individual votes, accounting officers must provide Parliament with their respective institution’s medium-term strategic plan, and annual performance plan at least 10 days prior to the discussion of the department’s budget vote. This final Draft APP was developed by the DCoG SMS at the departmental Strategic Planning Lekgotla held on the 18th of February 2016. 2

Purpose Part A: DCoG Annual Performance Plan 2016/17 Part B: State of Expenditure as at 31 January 2016 3

Vision   A functional and developmental local government system that delivers on its Constitutional and legislative mandates within a system of cooperative governance This Vision is in line with the objectives of Chapter 13 of the National Development Plan : ‘Building a capable and developmental State’ 4

Mission Statement Putting people and their concerns first;  Our mission is to ensure that all municipalities perform their basic responsibilities and functions without compromise by: Putting people and their concerns first; Supporting the delivery of municipal services to the right quality and standard; Promoting good governance, transparency and accountability; Ensuring sound financial management and accounting; and Building institutional resilience and administrative capability. This mission is predicated on the 5 Pillars of the Back to Basics Campaign 5

Alignment of the Cooperative Governance Values   Guided by the spirit of Batho Pele, our values are: Commitment to public service; Integrity and dedication to fighting corruption; A hands-on approach to dealing with local challenges; Public participation and people centered approach; Professionalism and goal orientation; Passion to serve; and Excellence and accountability. Adherence to these values will contribute towards the required state of Local Government 6

CoGTA Constitutional Mandate CoGTA’s mandate is primarily derived from Chapters 3, 5, 6, 7, and 9 of the Constitution of the Republic of South Africa, 1996, hereafter referred to as the Constitution.   Chapter 3 - This chapter deals with cooperative government and intergovernmental relations. The Department will have to ensure that we observe and adhere to the principles in this chapter, and that we conduct our activities within the parameters of this chapter. Chapter 5 - This chapter deals with national intervention in provincial administration when a province cannot or does not fulfil an executive obligation in terms of the Constitution or legislation. 7

CoGTA Constitutional Mandate Continued   Chapter 6 - This chapter deals with provincial intervention in local government, in particular when municipalities are unable to fulfil their executive obligation. Chapter 6 is also relevant when a municipality, as a result of financial crisis, breaches its obligations to provide basic services in order to meet its financial obligations. Chapter 7- The chapter deals inter alia with municipalities in cooperative governance. The Department, by legislation, must support and strengthen the capacity of municipalities to manage their own affairs, exercise their powers and perform their functions. Chapter 9 - This chapter deals with those institutions whose role requires strengthening the constitutional democracy of the country. The DCoG has to comply with all legislative frameworks in this chapter in order to meet legislative frameworks under the auspices of institutions such as the Auditor-General and Public Protector.   8

CoGTA Legislative Mandate    Municipal Property Rates Act, 2004 (Act No.6 of 2004)  To regulate the power of a municipality to impose rates on property; to make provision for municipalities to implement a transparent and fair system of exemptions, and for fair and equitable valuation methods of properties; and to make provision for an objections and appeals process therewith.  Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003)  To secure sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government;  Disaster Management Act, 2002 (Act No. 57 of 2002)  To provide for an integrated and coordinated disaster management policy, which focuses on preventing or reducing the risk of disasters, mitigating the severity of disasters, emergency preparedness, rapid and effective response to disasters and post-disaster recovery.  Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) To provide for the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities; to ensure universal access to essential services that are affordable to all; to provide for the manner in which municipal powers and functions are exercised and performed; to provide for community participation 9

CoGTA Legislative Mandate    Local Government: Municipal Structures Act,1998 (Act No. 117 of1998)  To provide for the establishment of municipalities, in accordance with the requirements relating to categories and types of municipality; to define the types of municipality that may be established within each category; to provide for an appropriate decision of powers and functions between categories of municipality; to regulate the internal systems, structures and office-bearers of municipalities; to provide for appropriate electoral systems; and to provide for matters in connection therewith  The Intergovernmental Relations Framework Act(Act No. 13, of 2005)  To facilitate coordination by the three spheres of government in the implementation of policy and legislation. It also provides for the basic architecture of intergovernmental structures and for processes to guide the settlement of intergovernmental disputes. Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998) To provide for criteria and procedures for the determination of municipal boundaries by an independent authority; and to provide for matters connected thereto. 10

CoGTA Legislative Mandate Continued Organised Local Government Act, 52 of 1997 To provide for the recognition of national and provincial organisations representing the different categories of municipalities; to determine procedures by which: Local government may designate representatives to participate in the National Council of Provinces; Local government may consult with national and provincial government; Local government may nominate persons to the Financial and Fiscal Commission; and to provide for matters connected therewith. Fire Brigade Services Act, 99 of 1987 To provide for the establishment, maintenance, employment, coordination and standardisation of Fire Brigade Services; and for matters connected therewith. Remuneration of Public Bearers Act, 20 of 1998 To provide for a framework determining the salaries and allowances of the President, members of the National Assembly, permanent delegates to the National Council of Provinces, Deputy President, ministers, deputy ministers, traditional leaders, members of provincial Houses of Traditional Leaders and members of the Council of Traditional Leaders Local Government: Cross-Boundary Municipal Act, 29 of 2000 To give effect to section 155(6A) of the Constitution by authorising the provincial executives affected to establish cross-boundary municipalities; to provide for the re- determination of the boundaries of such municipalities under certain circumstances; and to provide for matters connected therewith.     11

Budget Programme Structure for DCoG   PROGRAMME 1: ADMINISTRATION  Purpose: To provide strategic leadership, management and support services to the Department. The programme includes the Office of the Director-General (DG), Financial and Corporate Management Services. . PROGRAMME 2: REGIONAL AND URBAN DEVELOPMENT AND LEGISLATIVE SUPPORT Purpose: To conduct policy analysis and development in order to transform local government and improve corporative governance. PROGRAMME 3: INSTITUTIONAL DEVELOPMENT  Purpose: To build institutional resilience in the local government system through system development, governance, capacity building and revenue management. PROGRAMME 4: NATIONAL DISASTER MANAGEMENT CENTRE  Purpose: To promote an integrated and coordinated system of disaster prevention, mitigation and risk management. PROGRAMME 5: LOCAL GOVERNMENT SUPPORT AND INTERVENTIONS MANAGEMENT  Purpose: To coordinate and drive back to basics activities across department and government as a whole in order to create change on the ground. PROGRAMME 6: COMMUNITY WORK PROGRAMME  Purpose: To create income security and work experience for participants, targeting areas of high unemployment that will promote social and economic inclusion. 12

Revisions to the DCoG Strategic Plan 2015-2019     The Department Strategic Plan 2015-2019 Strategic Plan which was tabled in March 2015 has been revised to consider the following: Realignment to the budget programme structure which will come into effect from 01 April 2016; Institutionalisation of the Back to Basics Programme; and The revised Strategic Objective to respond to the budget structural changes. The revisions to the Strategic Plan are annexed in this APP as Annexure A 13

B2B 10 Point Plan 14 Positive community experiences;     Positive community experiences; Prioritise municipalities receiving disclaimers over 5 years; Support revenue enhancement programmes; Appointment of senior managers with appropriate and requisite skills in municipalities; Quality service and maintenance of infrastructure; Implementation of forensic reports; Metropolitan B2B programme; Strengthening roles of district municipalities; Spatial regional integration zones/spatial contracts; and Strengthen capacity and role of provincial COGTA departments. 14

Alignment of Goals, Objectives, Outcome 9 and B2B Strategic objective MTSF 2014/19 B2B Pillars Create a functional local government system based on accountability for performance Build accountability for performance in the local government system through setting and enforcing clear performance standards by March 2019 Sub-Outcome 3: Sound financial and administrative management Pillar 5: Building Capabilities Deepening the relationship between citizens and local government through improved citizen engagement mechanisms by March 2019 Sub-outcome 3: Well governed and effective municipal institutions capable of carrying out their developmental mandate as per the Constitution Pillar 1: Putting People First Support and strengthen the capacity of municipalities to deliver sustainable free basic services to indigent household by March 2019 Sub-outcome 1: Members of society have sustainable and reliable access to basic services Pillar 2: Delivering basic services Ensure significant improvements in service delivery through sound infrastructure management Implement initiatives to improve financial sustainability, revenue management and audit outcomes in Local Government by March 2019 Sub-Outcome 4: Sound Financial Management Pillar 4: Sound Financial Management Build institutional resilience and initiate the next phase of institution building Strengthen the functionality of municipalities through the development and implementation of administrative and institutional systems in order to build a capable state by March 2019. Sub-outcome 3: Well governed and effective municipal institutions capable of carrying out their developmental mandate as per the Constitution   15

Alignment of Goals, Objectives, Outcome 9 and B2B Strategic objective MTSF 2014/19 B2B Pillars Entrench a culture of good governance and instil a new morality of service and integrity in local government Promote good governance through strengthening of anti- corruption measures by March 2019 Sub-outcome 3: Well governed and effective municipal institutions capable of carrying out their developmental mandate as per the Constitution Pillar 3: Good Governance Build efficiency in the local government system through a robust legislative and regulatory framework by March 2019 Local public employment programmes expanded through the Community Work Programme Provide and maintain 1 million work opportunities through building capacity of participants and establishing strategic partnerships by March 2019 Sub-Outcome 5: Local public employment programmes expanded through the Community Work Programme.  Pillar 1: Putting People First Strengthen, coordinate and support effective integrated disaster management and fire services Improve the system of disaster management and fire services across government by March 2019 Not applicable Pillar 2: Delivering basic services Lead and support the creation of prosperous cities and towns by restructuring the space economy Facilitate the restructuring of municipal space economy through integrated development planning and spatial targeting Sub-Outcome 4: Promotion of social and economic development. Cross cutting: Supports B2B implementation Create a conducive environment for business to thrive and stimulate local economies by March 2019   16

Linked to point 7,8 and 9 of 10 point plan, ENE indicator Regional and Urban Development and Legislative Support- Indicators per Strategic Objective SO7: Create a conducive environment for business to thrive and stimulate local economies by March 2019 SO6: Facilitate the restructuring of municipal space economy through integrated development planning and spatial targeting Number of municipalities supported to develop and implement economic development programmes focussing on economic planning, red tape reduction initiatives and partnerships Number of spatial contracts facilitated for key restructuring zones in Districts and Metros Linked to point 9 of 10 point plan, ENE indicator and MTSF sub-outcome 4 Aimed at reducing the turnaround time of doing business and encourage growth points within municipalities Linked to point 7,8 and 9 of 10 point plan, ENE indicator Focusing on Improving alignment & integration of spatial plans to attain spatial transformation, equity and justice 17

Linked to point 6 of 10 point plan PROGRAMME 3: INSTITUTIONAL DEVELOPMENT - Indicators per Strategic Objective SO2: Deepening the relationship between citizens and local government through improved citizen engagement mechanisms by March 2019 SO8: Promote good governance through strengthening of anti-corruption measures SO5: Strengthen the functionality of municipalities through the development and implementation of administrative institutional systems Number of dysfunctional municipalities with effective public participation platforms Improve human resource management in municipalities by development and implementation of regulations setting minimum competency Anti-corruption measures implemented in identified municipalities as per forensic reports recommendation Number of dysfunctional municipalities supported to institutionalise community complaints management processes Monitor appointments of senior managers and take corrective actions to enforce compliance with minimum competency requirements Linked to point 1 of 10 point plan. To ensure constant engagement with communities on local government matters Linked to point 4 of 10 point plan and MTSF sub-outcome 3 Ensure that municipalities have the requisite skills for improved delivery ENE indicator To strengthen LG responsiveness to Citizen concerns Linked to point 4 of 10 point plan and MTSF sub-outcome 3 Focus is on uniform standards for lower level staff Linked to point 6 of 10 point plan To promote responsiveness to recommendations on forensic investigation 18

Links to MTSF sub-outcome 1 PROGRAMME 3: INSTITUTIONAL DEVELOPMENT - Indicators per Strategic Objective SO4: Implement initiatives to improve financial sustainability and revenue management in Local Government by March 2019 SO3: Support and strengthen the capacity of municipalities to deliver sustainable free basic services to indigent household by March 2019 Number of municipalities assessed and guided to comply with rating aspects of the MPRA A revenue plan developed and implemented in selected municipalities Number of municipalities supported to update their indigent registers ENE indicator To improve compliance by municipalities with critical rating aspects of the Act Linked to point 3 of 10 point Plan. To enhance municipal revenue collection Links to MTSF sub-outcome 1 To ensure that municipalities provide FBS only to indigent households 19

To monitor the implementation of DM and Fire Services campaigns PROGRAMME 4: NATIONAL DISASTER MANAGEMENT CENTRE Indicators per Strategic Objective SO11: Improve the system of disaster management and fire services across government by March 2019 Support the implementation of the National Fire Safety and Prevention Strategy in Municipalities in line with B2B Number of provinces with Disaster Management and fire services advocacy and public awareness campaigns monitored by target date. To monitor the implementation of DM and Fire Services campaigns To track implementation of the strategy and attend to gaps through intervention measures 20

Programme 5: Local Government Support and Interventions Management - Indicators per Strategic Objective ENE indicator Covering all 5 B2B pillars, focus is on concrete interventions to be undertaken by municipalities to get the basics right. The analysis of monthly municipal reports and a report on State of LG. SO9: Build accountability for performance in the local government system through setting and enforcing clear performance standards by March 2019 SO5 Coordinate and implement sustainable infrastructure development and maintenance initiatives in order to improve the quality of services and extend infrastructure to un-served communities by March 2019 Coordinate implementation of Back to Basics support initiatives in selected municipalities Monitor  implementation of the Back to Basics priorities by reporting municipalities Covers 139 interventions, section 154 support packages and the various support initiatives of Provincial B2B Teams, MISA and the MIG Unit, including the 10 point projects implemented in selected municipalities. 21

PROGRAMME 6: Community Work Programme - Indicators per Strategic Objective SO10 : Provide and maintain 1 million work opportunities through building capacity of participants and establishing strategic partnerships by March 2019 Number of municipalities with CWP sites by target date(s). Number of work opportunities maintained by target date(s) Number of participants trained by target date(s) Number of partnerships established by target date(s) ENE indicator, MTSF To augment initiative towards 1 million work opportunities To ensure formal and informal partnerships that are geared to effective useful work 22

Indicators cosigned to Operational Plan   Municipal Demarcation Amendment Bill, Municipal Structures Amendment Act , and IMSI Bill promulgated Number of municipalities affected by municipal redeterminations supported to develop Integrated Development Plans Number of regions supported to establish partnerships and implement catalytic business ventures through business development forums Number of agreements signed between municipalities and the private sector through the Business Adopt A Municipality programme Assessment Report produced in support of a Revised District Model. Guidelines on roles and responsibilities of office bearers and delegation framework Development of a regional development model Number of cities and towns with long term development plans Number of districts supported to build GIS capabilities Improvement of audit outcomes within municipalities Report on functional Municipal Public Accounts Committees (MPAC’s) Updated catalogue of sources with municipal information Number of LRCs in new CWP sites trained Develop capacity building strategies and interventions plans. Implementation of Batho Pele Standards Framework for Local Government facilitated to instil a service culture. Functionality of Council Committees monitored in identified municipalities. Number of dysfunctional municipalities with effective public participation platforms   Indicators reprioritiesed 24 October was engagement on BRRR 23

Response to Recommendations raised by the Portfolio Committee   The Budgetary Review and Recommendations Report (BRRR) of the Committee for the 2013/14 and 2014/15 financial years highlighted key recommendations related to performance information of the Department of Cooperative Governance (DCoG). More effort should be put on ensuring that the performance indicators implemented by the Department and its entities are Specific, Measurable, Achievable, Reliable and Time-bound; and The Department should meet with Auditor-General to ensure that they share the same understanding with respect to the expected standards of compliance with reporting requirements. Subsequent to the engagement with the Committee held on 14 October 2015 A team comprising of planning, monitoring and evaluation technical expects from across CoGTA (Department of Cooperative Governance, Department of Traditional Affairs and the Municipal Infrastructure Support Agent) was established to attend to all performance information related matters. The forum held Three working session between October and December 2015 to subject all Draft APP FY 2016/17 targets to the SMART criteria (Specific, Measurable, Attainable, Realistic and Time Bound) Engagements were held with the Office of the AG with the recent one having taken place on 11th of February 2016.The forum will continuously do the work up until there are noticeable improvement on the management of performance information.   24 October was engagement on BRRR 24

Part B: Budget and Programme Structure Changes and Allocation Trends 25

BUDGET AND PROGRAMME STRUCTURE CHANGES EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme. 1: Administration Purpose: Provide strategic leadership, management and support services to the department Purpose: Provide strategic leadership, management and support services to the department. Sub-programmes Ministry Management Chief Operating Officer Corporate Services Financial Service Internal Audit and Risk Management Communication and Liaison Office Accommodation Legislation Review and Drafting 26

BUDGET AND PROGRAMME STRUCTURE CHANGES (Cont.) EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme 2: Policy, Research and Knowledge Management Programme 2: Regional and Urban Development and Legislative Support Purpose: Provide specialised support services to the department in the areas of research and knowledge management, policy formulation, monitoring and evaluation, information, communication and business technologies Purpose: Provide policy analysis and development in order to transform local government and improve corporative governance Sub-programmes Management: Research and Policy Management: Regional and Urban Development and Legislative Support Policy and Research Methods Local Government Legislative Support and Institutional Establishment Knowledge and Information Management Urban Development Planning Spatial Planning: Districts and Regions Intergovernmental Policy and Practice Transfers: Municipal Demarcation Transition Grant 27

BUDGET AND PROGRAMME STRUCTURE CHANGES (Cont.) EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme 3:Governance and Intergovernmental Relations Programme 3: Institutional Development Purpose: Improve vertical and horizontal coordination and alignment between the three spheres of government. Promote public participation in governance through regulatory mechanisms. Provide oversight, intervention and support programme to provinces, municipalities and associated institutions. Purpose: Build institutional resilience in the local government system, by supporting system development, governance, capacity building and revenue management and provide for functions of the Department of Traditional Affairs. Sub-programmes Management: Governance and Intergovernmental Relations Management: Institutional Development Intergovernmental Relations Coordination Human Resource Management systems Intergovernmental Fiscal Relation Municipal Finance Governance and Public Participation Citizen Engagement Transfers: Anti-Corruption and Good Governance South African Local Government Association Municipal Property Rates Municipal Demarcation Board South African Cities Network Local Government Equitable Share United Cities and Local Government of Africa Municipal Infrastructure Grant Municipal Systems Improvement Grant Department of Traditional Affairs Municipal Infrastructure Support Agency 28

BUDGET AND PROGRAMME STRUCTURE CHANGES (Cont.) EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme 4: National Disaster Management Centre. Purpose: Promote an integrated and coordinated system of disaster risk management that places special emphasis on prevention, mitigation and preparedness on the part of national, provincial and municipal organs of state, statutory functionaries, communities and other role players involved in disaster risk management. Purpose: Promote an integrated and coordinated system of disaster prevention, mitigation and risk management. Sub-programmes Management: Head of Disaster Management: National Disaster Management Centre Legislation, Policy and Compliance Management Disaster Risk Reduction, Capacity Building and Intervention Planning Coordination and Support Legislation and Policy Management Intelligence and Information Systems Management Integrated Provincial Disaster Management Support, Monitoring & Evaluation Systems Integrated Disaster Management Monitoring and Evaluation System Fire Services Transfers: Information Technology, Intelligence and Information Management Systems Disaster Relief Municipal Disaster Relief Recovery Grant Disaster Relief Grant Disaster Relief Recovery Grant 29

BUDGET AND PROGRAMME STRUCTURE CHANGES (Cont.) EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme 5: Provincial and Municipal Government Systems Programme 5: Local Government Support and Interventions Management Purpose: Provide oversight, support programmes and evidence based regulatory mechanisms for provincial and municipal government and associated institutions and facilitate effective development and service delivery. Purpose: Conduct hands-on performance monitoring, support and interventions in municipalities and provincial Departments of Cooperative Governance that will drive back to basic activities in order to create change on the ground. Sub-programmes Management: Provincial and Local Government Support Management: Local Government Support and Intervention Management Provincial Government Support and Intervention Municipal Performance Monitoring Local Government Support and Intervention Local Government Improvement Programme Development Planning Litigations and interventions Transfers: Municipal Infrastructure Grant Management Municipal Systems Improvement Grant Municipal Demarcation Transition Grant Municipal Demarcation Board South African Cities Network South African Local Government Association United Cities and Local Government of Africa Transfer (History) 30

BUDGET AND PROGRAMME STRUCTURE CHANGES (Cont.) EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme 6 : Infrastructure and Economic Development Programme: Programme 6: Community Works Programme Purpose: Support provincial and local government programme and systems that promote economic and infrastructure development. Purpose: Create income security and work experience for participants and promote social and economic inclusion by targeting areas of high unemployment. Sub-programmes Management Infrastructure Management: Community Work Programme Local Economic Development Planning Programme Coordination Infrastructure Development Partnerships, Norms, Standards and Innovation Community Work Programme Transfers: Municipal Infrastructure Grant Municipal Infrastructure Support Agency 31

BUDGET AND PROGRAMME STRUCTURE CHANGES (Cont.) EXISTING BUDGET AND PROGRAMME STRUCTURE AMENDED BUDGET AND PROGRAMME STRUCTURE Programme 7: Traditional Affairs Purpose: Transfer funds to the Department of Traditional Affairs, which : promotes and coordinates research and information management and the development of policies and legislation on traditional affairs; and coordinates institutional development capacity building programmes to enhance efficiency and effectiveness within the institutions of traditional affairs. Sub-programmes Department of Traditional Affairs 32

2016 MTEF: BASELINE CHANGES The 2016 ENE include amounts deducted from and added to the CoGTA budget Vote. The net change to the baseline amounts are: a decrease of R466,6 million in 2016/17 and increases of R798,5 million in 2017/18 and R1,989 billion in 2018/19. The baseline allocations for compensation of employees and goods and services of the Department were substantially decreased over the 2016 MTEF period. There will be a ceiling on compensation of employees expenditure over the medium term. Compensation of employee funds will be identified as specifically and exclusively appropriated.

Department of Cooperative Governance and Traditional Affairs ALLOCATION TRENDS Department of Cooperative Governance and Traditional Affairs R’000 34

2016 MTEF: BASELINE ALLOCATIONS PER PROGRAMME

2016 MTEF: BASELINE ALLOCATIONS PER ECONOMIC CLASSIFICATION Departmental Economic Classification 2015/16 2016/17 2017/18 2018/19 Average growth rate   R'000 Compensation of employees 271 777 320 521 342 691 343 322 4% Department of Cooperative Governance 235 038 257 038 272 697 271 180 3% Community Works Program 36 739 63 483 69 994 72 142 7% Goods & Services 2 539 693 3 481 155 4 051 966 4 180 953 10% 200 493 333 453 328 527 343 849 2% 2 339 200 3 127 702 3 683 439 3 793 104 National Disaster Management Centre - 20 000 40 000 44 000 55% Transfers & Subsidies 67 997 486 69 185 025 74 154 991 79 726 363 67 567 545 68 705 338 73 627 946 79 220 845 Municipal Infrastructure Support Agent 304 013 349 889 385 336 354 785 1% Department of Traditional Affairs 125 928 129 798 141 709 150 733 8% Payment for Capital Assets 6 521 7 347 7 562 7 824 Grand Total 70 815 477 72 994 048 78 557 210 84 258 462

2016 MTEF: BASELINE ALLOCATIONS Division of funds between earmarked funds, special allocations and operational funds

DIVISION OF 2016/17 ALLOCATION Transfer & Subsidies * = 94.27% DCoG = 0.70% CWP = 4,37% MISA =0,48% DTA = 0,18% Compensation = 55.3% Compensation = 2.0% Goods &Services = 43.3% Goods & Services = 98.0% Capital Assets = 1.4%

2016 MTEF: BASELINE CHANGES (Cont.) Cooperative Governance: Reduction by Economic Classification   Economic Classification R'000 2016/17 Reductions 2017/18 Reductions 2018/19 Reductions TOTAL Reductions Compensation of employees (30 000) (30 987) (50 119) (111 106) Cooperative Governance Goods and services (92 259) (323 097) (447 411) (862 767) (5 922) (6 282) (8 247) (20 451) Community Work Programme (86 337) (316 815) (439 164) (842 316) Transfers and subsudies (1 198 466) (1 229 485) (1 796 855) (4 224 806) United Cities and Local Government of Africa (6 099) (6 404) (6 775) (19 278) Municipal Systems Improvement Grant (258 540) (278 957) (295 137) (832 634) Municipal Infrastructure Grant (633 827) (444 124) (494 943) (1 572 894) Local Government Equitable Share (300 000) (500 000) (1 000 000) (1 800 000) Machinery and equipment - Grand Total (1 320 725) (1 583 569) (2 294 385) (5 198 679)

2016 MTEF: BASELINE CHANGES (Cont.) Cooperative Governance: Additions by Economic Classification   Economic Classification R'000 2016/17 Increases 2017/18 Increases 2018/19 Increases TOTAL Increases Compensation of employees 68 073 72 911 72 907 213 891 Cooperative Governance 46 099 46 404 46 775 139 278 Community Work Programme 21 974 26 507 26 132 74 613 Goods and services 70 000 55 000 54 000 179 000 30 000 MSIG (Municipal Finance projects) 20 000 15 000 10 000 45 000 - National Disaster Management Centre 40 000 44 000 104 000 Transfers and subsidies 716 033 2 254 197 4 157 265 7 127 495 Traditional Affairs 4 965 7 792 9 049 21 806 Local Government Equitable Share 2 000 000 4 000 000 6 000 000 Municipal Infrastructure Support Agent 30 521 50 000 80 521 Once-off gratuity (Non-returning councillors) 309 276 South African Local Government Association 29 500 31 300 33 100 93 900 Municipal Demarcation Board Municipal Systems Improvement Grant (indirect grant) 84 349 103 249 115 116 302 714 Municipal Demarcation Transition Grant 247 422 61 856 309 278 Machinery and equipment Grand Total 854 106 2 382 108 4 284 172 7 520 386

2016 MTEF: BASELINE CHANGES (Cont.) Economic Classification 2016/17 2017/18 2018/19 TOTAL R’000 Compensation of Employees 38 073 41 924 22 788 102 785 -       DCoG 16 099 15 417 (3 344) 28 172 -       CWP 21 974 26 507 26 132 74 613 Goods and Services (22 259) (268 097) (393 411) (683 767) 24 078 (6 282) (8 247) 9 549 -       MSIG 20 000 15 000 10 000 45 000 -       NDMC 40 000 44 000 104 000 (86 337) (316 815) (439 164) (842 316) Transfers and subsidies (482 433) 1 024 712 2 360 410 2 902 689 Payment of Capital Assets - (466 619) 798 539 1 989 787 2 321 708

THANK YOU! 42