1. STRATEGIC PLAN AND BUDGET 2014 TO 2019 MUNICIPAL DEMARCATION BOARD BRIEFING TO THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
DELEGATION
Ms MJJ Thupana
Chairperson: Municipal Demarcation Board
Mr AM Adam
Deputy Chairperson: Municipal Demarcation Board
Mr DKN Ligege
Acting Chief Executive Officer
Mr A Ramagadza
Executive Manager: Operations and Research
Ms ML Ratya
Acting Chief Financial Officer

2. OUTLINE OF PRESENTATION
MEMBERS OF THE BOARD
INSTITUTIONAL ARRANGEMENTS
LEGISLATIVE MANDATE OF THE BOARD
VISION AND MISSION
PERFORMANCE OUTCOMES OF 2013/14 FINANCIAL YEAR
2013 – 2018 STRATEGIC PLAN
2014 STRATEGIC PRIORITIES
2014 ANNUAL PERFORMANCE TARGETS
MEDIUM TERM EXPENDITURE FRAMEWORK
CHALLENGES
CONCLUDING REMARKS

3. PURPOSE OF THE PRESENTATION
To enable the Portfolio Committee to discharge is mandate of oversight on Budget Vote 3, specifically on the Municipal Demarcation Board;
To present to the Portfolio Committee:
Progress with implementation of the MDB Strategic Plan;
Performance outcomes on predetermined objectives for the 2013/4 financial year;
The Annual Performance Plan for the 2014/15 financial year;
The budget allocation of the institution.

4. MEMBERS OF THE BOARD
The President of the Republic of SA appointed the new Board with effect from 20 February 2014.
Members of the Board are as follows:
Ms Jane Thupana - Chairperson
Mr Ashraf Adam - Deputy Chairperson
Mr LD Tsotetsi
Prof Isobel Konyn
Ms Nompumelelo Mpofu
Mr Simphiwe Dzengwa
Ms Shivon Wiggins
Mr Maruping Wildebees
Ms Mmatsie Mooki
Board members serve for a term of five years.
The Chairperson is the only full time member.

5. INTRODUCING THE CURRENT MDB
Ms Mmatsie Mooki
Ms Shivon Wiggins
Ms Jane Thupana Chairperson
Mr Ashraf Adam
Deputy Chairperson
Mr LD Tsotetsi
Mr Maruping Wildebees
Mr Simphiwe Dzengwa
Prof Isobel Konyn
Ms Nompumelelo Mpofu

6. INSTITUTIONAL ARRANGEMENTS
THE BOARD
The Board is led by an Executive Chairperson, and discharges its duties through subcommittees of the Board which are:
Executive Committee
Policy and Research Committee
Boundaries, Powers and Functions Committee
Remuneration and Human Capital Committee
Audit and Risk Committee
ADMINISTRATION
The administration support the Board and is led by a Chief Executive Officer and Accounting Officer. The institution has three Divisions which are:
Operations and Research Division
Finance Division
Corporate Services Division

7. LEGISLATIVE MANDATE Section 155(3)(b) of the Constitution
Section 4(a) of the Municipal Demarcation Act 27 of 1998 (“MDA”)
Section 4 of the Municipal Structures Act 117 of 1998 (“MSA”) provides for categorisation of municipalities
Determination of municipal outer-boundaries
Schedule 1 to the MSA – MDB, after consultation with the Electoral Commission must delimit wards for purposes of local elections
Delimitation of municipal ward boundaries
Section 85 of MSA provides for the MDB to assess municipal capacity when determining boundaries
Impact analysis and Evaluation: Opportunity to evaluate impact of Board decisions
Assessment of municipal capacity
Section 4(b) of the MDA
Opportunity to follow through on implementation of municipal boundary redeterminations
Rendering of advisory services to stakeholders

8. STRATEGIC CONTEXT
The overlapping mandate dictates that MDB’s sustainability is intrinsically intertwined with that of other players in the Local Government sector e.g. Independent Electoral Commission (IEC), Financial and Fiscal Commission (FFC) and Department of Cooperative Governance and Traditional Affairs (DCOGTA). MDB will focus on creating collaborations and partnerships without compromising its independence.
An investment in stakeholder consultation and public participation will deepen our democracy and enrich MDB’s decisions.
Sustainability of the local government sector depend among others on a solid spatial planning framework which is possible if spatial configuration of municipal boundaries can stabilise.
Build the research and knowledge management capacity for the MDB to be once more a repository of knowledge for municipalities and the public.

9. VISION AND MISSION VISION MISSION Beyond boundaries
The Board’s vision is the full realisation of Constitutional and local democracy in South Africa characterized by functional and viable municipalities, spatially configured so that its boundaries and wards covers the whole territory of the Republic, including productive and inclusive metropolitan municipalities, sufficiently and optimally capacitated district and local municipalities which are supported by sound local government system.
MISSION
To perform its functions and to exercise its powers in such a manner as to empower municipalities to fulfil their constitutional obligations, primarily the provision of democratic and accountable local government, and effective, efficient and sustainable service delivery within sound boundaries.
Beyond boundaries

11. PERFORMANCE OUTCOMES FOR 2013/14
The Board tabled the 2013/14 Annual Performance Plan to the Portfolio Committee on 19 March 2013
83% of the targets on the Annual Performance Plan were achieved
The 2013/14 financial year was the last phase of finalising re-determinations of municipal outer boundaries.
The Board completed the outer municipal boundary redeterminations during October 2013
The MDB developed a classification system which differentiated between the different types of redetermination requests received. These included proposals for the redetermination of metropolitan municipal boundaries, the disestablishment and/or amalgamation of municipalities, the re-categorization of municipalities, and technical or minor changes to municipal boundaries
The classification of re-determinations is presented next:

12. PERFORMANCE OUTCOMES FOR 2013/14
Type A – Technical and minor re-determinations
This redetermination entails a small-scale boundary adjustment and/or alignment which will have:
a minor impact on the geographic area,
a negligible or no impact on the number of voters, and
no impact on the capacity of the affected municipalities;
Type B – Consolidations and Annexations
This is a medium-scale boundary redetermination that may impact on a sizeable geographic area and on the number of voters in one or all the municipalities affected. This type of determination may impact on ward arrangements but will not materially impact on the capacities of the affected municipalities to deliver services.

13. PERFORMANCE OUTCOMES FOR 2013/14
Type C – Amalgamation and Re-categorisations
This type of re-determination entails a major and large-scale municipal boundary redetermination, which will have a significant impact on the geographic area, the number of voters and the capacity of the affected municipalities.
The redetermination may include the merging of adjacent municipalities or the splitting of municipal areas to create new municipal areas.
It requires the MEC responsible for local government to disestablish an existing municipality or municipalities, and establish a new municipality or municipalities.
This type also includes the declaration of new metropolitan municipalities with or without boundary changes. Such a re-categorisation as a metropolitan municipality must satisfy Section 2 of the Municipal Structures Act and Sections 24 and 25 of the Municipal Demarcation Act.

14. PERFORMANCE OUTCOMES FOR 2013/14
Total number of requests considered by the Board
Province
Total Number of requests
TYPE A
TYPE B
TYPE C
Eastern Cape
225
135 83 7
Free State 86 54 26 6
Gauteng 85 61 9 15
KwaZulu-Natal
276
150 91 35
Limpopo 99 47 49 3
Mpumalanga 74 55 4
North West 63 2
Northern Cape 39 1
Western Cape 81 78
Total
1 028
669
285

15. PERFORMANCE OUTCOMES FOR 2013/14
Of boundary re-determinations, 204 were published in terms of section 26 of the MDA, indicating the Board’s intention to consider the requests.
Formal investigations and public meetings were held pertaining to the above requests.
Public meetings were viewed by the Board as an essential and valuable opportunity to advance the democratic principles of transparency and openness in the process of boundary demarcation.
These meetings gave communities the opportunity to make their views known to Board on proposals that affected them and their environment, and further enabled the Board to provide additional clarity and information where required and to correct misperceptions about the demarcation process.
22 public meetings and 90 formal investigations were conducted.
Out of 204 cases published in terms of section 26, the Board re-determined 157 cases.
Of which 10 were major redeterminations (Type C) which materially affect voter representation.

16. PERFORMANCE OUTCOMES FOR 2013/14
The Board re-determined municipal boundaries for a total number of 157 proposals. The resulting Section 21 notices were published in the relevant provincial gazettes and a 39-day period was given for the lodging of objections.
PROVINCE
NO. OF CASES
NO. OF OBJECTIONS
EASTERN CAPE 26 16
FREE STATE 6
GAUTENG 3
9 792
MPUMALANGA 2 4
KWAZULU-NATAL 37 17
LIMPOPO 7 1
NORTH WEST 20
NORTHERN CAPE 21
WESTERN CAPE 35
Total
157
9 835

17. PERFORMANCE OUTCOMES FOR 2013/14
Number of cases, confirmed, varied or withdrawn
PROVINCE
CASED CONFIRMED
CASES WITHDRAWN
CASES VARIED
EASTERN CAPE 23 3
FREE STATE 6
GAUTENG
MPUMALANGA 2
KWAZULU-NATAL 30 5
LIMPOPO 7
NORTH WEST 20
NORTHERN CAPE 21
WESTERN CAPE 35
Total
147

18. PERFORMANCE OUTCOMES FOR 2013/14
The municipal boundary redeterminations have led to a change in the number of municipalities in KwaZulu-Natal and Gauteng.
The number of district municipalities has reduced by one in Gauteng.
The number of metropolitan municipalities (category A) will increase to nine, with a new Category A municipality established in Gauteng.
The number of local (category B) municipalities has, however, been reduced from 226 to 215.
The greatest number of boundary changes occurs in KwaZulu-Natal, where the total number of local municipalities has been decreased by seven as a result of amalgamations.
These boundary redeterminations will take effect on the date of the next Local elections i.e
ELECTION PERIOD
CATEGORY A (METROPOLITAN)
CATEGORY B (LOCAL)
CATEGORY C (DISTRICT)
TOTAL
TOTAL 2011 8
226 44
278
TOTAL 2016 9
215 43
267

19. 2013-2018 STRATEGIC PLAN Strategic Objective
To determine and re-determine boundaries of local, district and metropolitan municipalities
Objective statement
Plan and implement a process to finalise 100% of requests received, or initiated, in terms of Section 22 of the Demarcation Act, 1998, by 2013.
The process will comprise of different phases including planning, consultation, compliance to legal provisions, and the finalisation of all changes to municipal boundaries during 2013.
Action 100% of process to ensure that municipalities qualifying for metro status indeed become metros on the date on the next local government elections.
Advise service delivery departments of changes to municipal boundaries
Declaration and withdrawal of district management areas
Delimitation of wards for all local and metropolitan municipalities for the 2016 local elections.
Plan and implement a process to delimit ward in 100% of local and metropolitan municipalities by mid 2015 in terms of Schedule 1 to the Local Government: Municipal Structures Act, 1998.
The process will comprise of different phases including planning, consultation, compliance to legal provisions, and the finalisation of all ward for the 2015 local elections.

20. 2013-2018 STRATEGIC PLAN Strategic Objective
Assessment of the capacity of metropolitan, district and local municipalities
Objective statement
Ensures that consultants appointed by the Board delivers 100% of the outcomes specified in their contracts with the Board. Provide quality municipal capacity assessment reports and recommendations to MECs for local government regarding adjustments of powers and functions in compliance with Section 85 of the Local Government: Municipal Structures Act, 1998
Ensuring Good Governance and sound financial management
Manage resources to accomplish strategic goals, effective financial planning, ensure adherence to laws, regulations and contractual obligations, ensure effective efficient use of resources
Compliance with legal frameworks.
Improve efficiency and effectiveness of administrative processes and systems.

21. 2013-2018 STRATEGIC PLAN Strategic Objective
Board supported by effective and efficient organisation, organisational processes, systems and practices
Objective statement
Implement the outcomes of the Organisational Development Initiative (OD)
Monitor individual performance contracts that supports strategic objectives
Maintain an internship programme to mitigate risks associated with staff turnover
Maintain acceptable employee satisfaction levels
Develop and nurture capability at all levels within the Board
Compliance with employment equity legislation
Stakeholder Relations
Stakeholder Management function to drive strategies and implement plans
Participation in joint structures and Initiatives

22. 2014 STRATEGIC PRIORITIES
The primary area of performance for the period 2014/15 will be:
Delimitation of wards for the 2016 Local Government Elections;
Bi-annual Assessment of Municipal Capacity;
Render advisory service in respect of Demarcation matters;
Undertaking Research into Local government;
An efficient and effective organisation;
Ensure good Corporate Governance.

23. PROGRAMMES SUPPORTING IMPLEMENTATION OF STRATEGY
The implementation of the strategy is supported by three programmes as follows:
Programme 1: Operations and Research
This programme provides specialist support services to the Board in the areas of Delimitation of municipal wards, Categorisation of municipalities and Research.
The programme gives effect to the institution’s legislative mandate of determining and re-determining municipal boundaries, categorisation of municipalities, delimitation of municipal wards, assessment of municipal capacity and rendering advisory services to matters pertaining to demarcation.
The programme consists of three sub-programmes which are:
Sub-programme 1.1: Delimitation and Determinations
Sub-programme 1.2: Research
Sub-programme 1.3: Geographic Information Systems (GIS) and Database Management

24. PROGRAMMES SUPPORTING IMPLEMENTATION OF STRATEGY
Programme 2: Financial Management
This programme provides financial management services to the institution. It gives effect to the MDB’s strategic goal of an effective and efficient organisation. The programme consists of one sub-programme which is:
Sub-programme 2.1: Financial management
Programme 3: Corporate Services
This programme provides administrative and corporate services to the institution. The programme gives effect to the institution’s strategic objectives, i.e.
Optimal performance and service focused culture;
Enhancement of stakeholder relations and communication;
Ensuring good governance
It consists of three sub-programmes, which are
Sub-programme 3.1: Administration and Human Resources,
Sub-programme 3.2: Legal and Secretariat and
Sub-programme 3.3: Stakeholder management and Communication.

25. OPERATIONS AND RESEARCH
PROGRAMME 1
OPERATIONS AND RESEARCH

26. 2014 ANNUAL PERFORMANCE TARGETS Programme 1
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
Delimitation of municipal ward boundaries for Local Elections
1.1.1
Preparation of 1st draft mapping for municipalities qualifying to have wards
Percentage of municipalities for which first draft mapping has been completed
Quarterly
1st draft mapping completed for qualifying municipalities were completed in the first quarter of 2009/10
100% of 1st draft mapping completed by second quarter
70% - 1st draft mapping completed for qualifying municipalities
30% - 1st draft mapping completed for qualifying municipalities
N/A
1.1.2
Preparation of 2nd draft mapping for municipalities qualifying to have wards
Percentage of municipalities for which second draft mapping has been completed
2nd draft mapping completed for qualifying municipalities were completed during the first quarter of 2010/11
100% of 2nd draft mapping completed by second quarter
30% - 2nd draft mapping completed for qualifying municipalities
70% - 2nd draft mapping completed for qualifying municipalities
1.1.3
Conduct consultations sessions on 1st draft ward boundaries
Percentage of municipalities qualifying to have wards where consultation meeting are conducted
88 Municipalities requested meeting via MDB3 forms where consensus could not be reached
50% of municipalities qualifying to have wards consulted.
{118 municipalities (235 * ½)}
35% of municipalities qualifying to have wards consulted
15% of municipalities qualifying to have wards consulted

27. 2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 1
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
Assessment of the capacity of metropolitan, district and local municipalities
1.2.1
Effectively manage the capacity assessment project
Number of project management reports issued per quarter in line with project charter
Monthly
13 project monitoring reports issued
3 monthly project monitoring reports issued
3 monthly project monitoring reports and 1 closeout report issued
1.2.2
Compile capacity assessment reports
Number of district, local and metropolitan reports produced
Quarterly
Reports compiled were as follows: 226 Local Municipality reports, 8 Metropolitan Municipality reports, 9 qualitative District Municipal reports (1 per province) and a National Report.
278 municipal capacity assessment reports
N/A
113 Local municipal reports
113 Local municipal reports and 8 Metropolitan reports
44 qualitative District reports and 1 National report

28. 2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 1
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
Render advisory services in respect of Demarcation matters
1.3.1
Participate in and render advice to transformation structures in respect of major re-determinations and re-categorisation.
Implementation of framework for planning and Transformation for identified major re-determination cases
Quarterly
Draft Framework for Planning and transformation post Demarcation in place
Render advice to established planning and transformation structures for identified major cases
Provide advisory services to national structures with respect to implemen-tation of major redetermina-tions (Gauteng and KwaZulu- Natal)
Framework for Planning and Implemen-tation of amalgama-tions and re-categorisation of municipalities in place

29. A GLANCE AT WARD DELIMITATION
2013
Complete re-determinations process, Handover to the IEC
2014
IEC certify voters roll,
Minister determines and publish formulae for number of councillors,
and MECs determine and publish number of councillors
2016
Local government Elections
2015
Complete Delimitation of wards
Ward delimitation process
IEC Process
Draft wards and Public participation
Prepare for local elections
IEC Process
Legal and Consultation process

30. WARD DELIMITATION PROCESS
Municipal wards are reviewed every five (5) years in all municipal areas both metropolitan and local municipalities.
A ward is delimited or configured for purposes of facilitating local elections thereby deepening democracy at a local level.
For each municipal ward, a ward councillor is elected.
The Municipal Demarcation Board has a responsibility to delimit wards to empower the electorate to elect councillors and parties of their choice in the municipal area within which the elected councillors and the municipal administration must provide services.

31. KEY LEGAL REQUIREMENTS PER MUNICIPAL STRUCTURES ACT, 1998
The ward delimitation criteria are different from the general criteria guiding decisions on outer boundaries. This is because the demarcation criteria are largely about ensuring viable, effective and sustainable municipalities, whereas the ward criteria are almost exclusively about ensuring the conditions for local democracy and representation of voters on the municipal council.
When delimiting municipal wards the Board is legally obliged to adhere to certain legislation. The main piece of legislation to which we work is Schedule 1 to the Municipal Structures Act No 117 of 1998 sets out criteria to which the Board required to have regard in conducting ward delimitations. In broad terms, they are:
The number of registered voters in each ward may not vary by more than fifteen per cent from the norm, where the norm is determined by dividing the total number of registered voters on the municipality's segment of the national common voters roll by the number of wards in the municipality.

32. KEY LEGAL REQUIREMENTS IN MUNICIPAL STRUCTURES ACT, 1998
The need to avoid as far as possible the fragmentation of communities.
The object of a ward committee as set out in section 72(3) which is to enhance participatory democracy in local government.
The availability and location of a suitable place or places for voting and counting if appropriate, taking into consideration-
(i) communication and accessibility;
(ii) density of population;
(iii) topography and physical characteristics; and
(iv) the number of voters that are entitled to vote within the required
time-frame.
(e) the safety and security of voters and election material.
(f) identifiable ward boundaries.

33. KEY LEGAL REQUIREMENTS IN MUNICIPAL STRUCTURES ACT, 1998
The above criteria seeks to:
ensure less disruption to the voting process.
ensure that all voters in a ward are able to reach a voting stations easily.
ensure the safety and security of voters.
ensure that residents who think of themselves as a community are able to vote together and are able to participate in the process together.
ensure that communities are kept together in the same ward (though this is not always possible, especially with regard to traditional author areas).

34. 2014-2015 WARD DELIMITATION PLAN
TIMEFRAMES
ACTIVITY
STATUS
March 2014
IEC certify the voters’ roll in municipal segments
Completed
April 2014
Provincial information sessions
Awaiting Date
Minister publish formula for determining the number of councillors
Awaiting publication
MECs publish number of councillors
August-September 2014
Draft first set of ward boundaries, and other documents to assist public to participate. Prepare to launch the consultative process
September 2014
Launch the consultation process and make information available to municipalities.

35. 2014-2015 WARD DELIMITATION PLAN
TIMEFRAMES
ACTIVITY
September January 2015
Municipal consultation meetings with stakeholders and communities and submission of final proposals
January - March 2015
Consider all submissions received from municipalities and the public;
Map all proposals in preparation of publication.
April 2015
Publish ward boundaries in provincial gazettes for objections.
April – May 2015
Process objections and convene meetings of ward delimitation committees to consider objections.
June 2015
Gazette final confirmed and varied ward boundaries
Handover to the IEC

36. PROGRAMME 2
FINANCIAL MANAGEMENT

37. 2014 ANNUAL PERFORMANCE TARGETS Programme 2
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
An efficient and effective Organisation
2.1.1
Implement effective financial management controls
Opinion of the Auditor General on Annual Financial Statements
Annually
Unqualified audit opinion with emphasis of matter
Clean audit (Unqualified audit without emphasis of matter)
N/A
2.1.2
Develop, implement and maintain compliance and quality assurance systems for operations
Internal audit rating
Quarterly
Internal audit rating 2 (audit objectives met with housekeeping matters)
2.1.3
Effectively monitor, report and evaluate organisational and financial performance against the strategic objectives
Frequency of Organisational and Financial Performance Monitoring Reporting
Four (4) Quarterly Organisational and Financial Performance Monitoring Reports issued
One (1) Organisational and Financial Performance Monitoring Report issued

38. 2014 ANNUAL PERFORMANCE TARGETS Programme 2
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
An efficient and effective Organisation
2.1.4
Procure goods and services in compliance with applicable legislation
Value of irregular expenditure incurred
Quarterly
Incurred irregular expenditure amounting to R1.8 million (2012/13)
Zero irregular expenditure
2.1.5
Re-engineer and/or automate identified business processes
Number of identified business processes to be engineered
One (1) business process automated, i.e. Risk management and reporting
Three (3) business processes to be automated by end of year.
Review, redesign and automate Recruitment Processes (Web portal for recruitment and selection)
Review, redesign and automate Ward delimitation process
Review, redesign and automate Combined assurance and compliance processes
Review, redesign and automate Employee Performance Management System

39. PROGRAMME 3
CORPORATE SERVICES

40. 2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 3
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
Optimal Performance and Service Focused Culture
3.1.1
Review and Align the Human Resources Plan with the Organisation strategy
Integrated Human Resources Plan in place
Quarterly
New indicator
Review and implement Integrated Human Resource Plan by 30 June 2014
Integrated Human Resources Plan approved by Board
Implement Integrated Human Resources Plan
3.1.2
Implement an Employee Wellness Programme
Number of Wellness interventions conducted
Four (4) employee wellness interventions conducted
Four (4) Wellness interventions conducted
One (1) employee wellness intervention conducted
3.1.3
Improve organisational leadership and team cohesion
Number of team-building, leadership, change management and people management interventions
One (1) leadership and team cohesion interventions held
Three (3) leadership and team cohesion intervention held
N/A

41. 2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 3
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
 Optimal Performance and Service Focused Culture
3.1.4
Develop and nurture employee skills and competencies
Implementation of the Workplace Skills Plan
Quarterly
Workplace Skills Plan (WSP) in place
Develop and implement 100% of WSP
Develop and approve the WSP
Implement WSP
3.1.5
Effectively manage individual performance
Percentage of employees on establishment with performance contracts in place
100%
100% of employees on establishment with performance contracts in place
3.1.6
Conduct employee behaviour and satisfaction surveys
Number of surveys conducted per annum
One (1) survey conducted
Two (2) surveys conducted
N/A

42. 2014 ANNUAL PERFORMANCE TARGETS Programme 3
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
Ensuring Good Corporate Governance
3.2.1
Capacitate the Legal and Secretariat sub-programme
Vacancy rate of the sub-programme
Quarterly
Head of business unit appoint
Zero vacancy rate within the unit. (Fill all vacancies within the business unit)
Appoint Assistant Board Secretary and Paralegal Intern
N/A
3.2.2
Implement the combined assurance model
Report on evaluation of compliance with applicable legislation
Combined assurance model approved by the Board
Compile and report on evaluation of compliance with applicable legislation
Quarterly report on the evaluation of compliance with applicable legislation
Enhancement of stakeholder relations and communication
3.3.1
Implement an integrated stakeholder management plan
Number of engagements/ collaborations with stakeholders
Extended Boundaries, Powers and Functions Committee in place and meets on at least quarterly basis
Hold four (4) Stakeholder engagements/ collaborations with established national stakeholder forum
One (1) Stakeholder engagement/ collaboration with established national stakeholder forum

43. 2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 3
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
Enhancement of stakeholder relations and communication
3.3.2
Number of Outreach, communication and educational activities
Quarterly
New indicator
Launch and conduct the “Know where you belong” Campaign in nine (9) Provinces
Conduct the “Know where you belong” Campaign in three (3) Provinces
N/A
3.3.3
Commission nine (9) provincial Radio slots per annum
Commission three (3) provincial radio slots
3.3.4
Host nine (9) Provincial or regional information sessions per annum
Host three (3) Provincial or regional Information Sessions
3.3.5
Publish four (4) National/ regional advertorials issued per annum
Publish one (1) National/ Regional advertorial

44. 2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 3
Strategic objective
Strategies/ Activities
Performance indicator
Reporting period
Baseline
Annual Target 2014
Quarterly targets
1st
2nd
3rd
4th
 Enhancement of stakeholder relations and communication
3.3.6
Number of surveys conducted on trust and confidence conducted per annum
Quarterly
New indicator
Conduct one (1) survey per annum
N/A
Conduct one (1) survey
3.3.7
Disseminate information to stakeholders
Number of circulars issued per annum
Issue and disseminate five (5) circulars and or educational items
Issue and disseminate one (1) circular and develop a multimedia guide to ward delimitation
Issue and disseminate one (1) circular

45. MEDIUM TERM EXPENDITURE FRAMEWORK Historic performance
2010/11
2011/12
2012/13
2013/14
Grants received
37 187
38 482
40 397
42 182
Other income
692
641
926
948
Employee cost
11 322
12 061
13 084
17 991
Goods and services
22 344
21 447
18 956
24 410
Lease payments
2 311
Total
35 977
35 819
34 351
44 712
Surplus /(Deficit)for the year
1 902
3 304
6 972
-1 582

46. MEDIUM TERM EXPENDITURE FRAMEWORK Budget allocation from Vote 3
2013/14
2014/15
2015/16
2016/17
Grants received
42 152
44 230
45 793
48 220
Budget allocation increased from R42.1m in 2013/14 to R44.2m
Representing a nominal increase of 4.9%
Budget shortfall will be funded by accumulated surpluses over the medium term
Accumulated surpluses as at 31 March 2014 amount to R25.6m

47. MTEF expenditure by economic classification R’000
MEDIUM TERM EXPENDITURE FRAMEWORK Budgeted Expenditure by Economic classification
MTEF expenditure by economic classification R’000
2014/15
2015/16
2016/17
Compensation to employees
23 668
24 756
26 649
Lease payments
3 010
Goods and services
23 263
23 523
23 945
Total operating expenditure
48 965
51 079
53 604
Capital expenditure
976
210
250
Gross expenditure
49 941
51 289
53 854

48. MEDIUM TERM EXPENDITURE FRAMEWORK Budgeted Expenditure by Programme
Programme R’000
2013/14
2014/15
2015/16
2016/17
% share (budget year)
P1 : Operations and Research
17 577
18 477
19 328
20 294
37%
P2 : Finance
6 346
6 647
6 953
7 297
13%
P3 : Corporate Services
23 211
23 841
24 799
26 013
48%
Total operating expenditure
47 134
48 965
51 080
53 604
98%
Capital expenditure
503
976
210
250 2%
Gross expenditure
47 637
49 941
51 290
53 854
100%

49. MEDIUM TERM EXPENDITURE FRAMEWORK Utilisation of accumulated funds
Surplus funds at 31 March 2014
25 643
2014/15 - funding of deficit
-5 683
Projected Funds at 31 March 2015 
19 960
2015/16 - funding of deficit
-5 325
Projected Funds at 31 March 2016 
14 653 -
2016/17 funding of deficit
-5 597
Projected Funds at 31 March 2017
9 038

50. CHALLENGES Challenges with respect to the functions of the Board:
Litigations in respect of decisions taken by the Board which may affected other processes of the Board such as preparations for 2016 local elections
Proposals of Boundary redeterminations outside of the mandate of the Board, specifically provincial boundaries
Lack of institutional capacity within the core functions. This gap will be closed during the current financial year by filling vacancies of critical positions such as Head of Research, research specialists and Head of Stakeholder management and Communication

51. CONCLUDING REMARKS
Delimitation of municipal ward in preparation for local elections is a priority during 2014/15 and 2015/16 financial years
This process is key towards contributing to deepening of local democracy
The Board will continue to improve public participation so as to ensure that communities affected are involved in delimitation of wards
The success of this process within the local government system depends on support and participation of key stakeholders;
The Municipal Demarcation Board is committed to the realisation of our vision of a Sustainable Local Government System

52. Thank you!