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

2. 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 and 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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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, (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

10. CoGTA Legislative Mandate
 Local Government:
Municipal Structures Act,1998 (Act No 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

11. 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

12. 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

13. Revisions to the DCoG Strategic Plan 2015-2019
The Department Strategic Plan 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. Part B: Budget and Programme Structure Changes and Allocation Trends25

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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.

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

35. 2016 MTEF: BASELINE ALLOCATIONS PER PROGRAMME

36. 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 4%
Department of Cooperative Governance 3%
Community Works Program
36 739
63 483
69 994
72 142 7%
Goods & Services
10% 2%
National Disaster Management Centre -
20 000
40 000
44 000
55%
Transfers & Subsidies
Municipal Infrastructure Support Agent 1%
Department of Traditional Affairs 8%
Payment for Capital Assets
6 521
7 347
7 562
7 824
Grand Total

37. 2016 MTEF: BASELINE ALLOCATIONS
Division of funds between earmarked funds, special allocations and operational funds

38. 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%

39. 2016 MTEF: BASELINE CHANGES (Cont.)
Cooperative Governance: Reduction by Economic Classification
Economic Classification R'000
2016/ Reductions
2017/ Reductions
2018/ Reductions
TOTAL Reductions
Compensation of employees
(30 000)
(30 987)
(50 119)
( )
Cooperative Governance
Goods and services
(92 259)
( )
( )
( )
(5 922)
(6 282)
(8 247)
(20 451)
Community Work Programme
(86 337)
( )
( )
( )
Transfers and subsudies
( )
( )
( )
( )
United Cities and Local Government of Africa
(6 099)
(6 404)
(6 775)
(19 278)
Municipal Systems Improvement Grant
( )
( )
( )
( )
Municipal Infrastructure Grant
( )
( )
( )
( )
Local Government Equitable Share
( )
( )
( )
( )
Machinery and equipment -
Grand Total
( )
( )
( )
( )

40. 2016 MTEF: BASELINE CHANGES (Cont.)
Cooperative Governance: Additions by Economic Classification
Economic Classification R'000
2016/ Increases
2017/ Increases
2018/ Increases
TOTAL Increases
Compensation of employees
68 073
72 911
72 907
Cooperative Governance
46 099
46 404
46 775
Community Work Programme
21 974
26 507
26 132
74 613
Goods and services
70 000
55 000
54 000
30 000
MSIG (Municipal Finance projects)
20 000
15 000
10 000
45 000 -
National Disaster Management Centre
40 000
44 000
Transfers and subsidies
Traditional Affairs
4 965
7 792
9 049
21 806
Local Government Equitable Share
Municipal Infrastructure Support Agent
30 521
50 000
80 521
Once-off gratuity (Non-returning councillors)
South African Local Government Association
29 500
31 300
33 100
93 900
Municipal Demarcation Board
Municipal Systems Improvement Grant (indirect grant)
84 349
Municipal Demarcation Transition Grant
61 856
Machinery and equipment
Grand Total

41. 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
-       DCoG
16 099
15 417
(3 344)
28 172
-       CWP
21 974
26 507
26 132
74 613
Goods and Services
(22 259)
( )
( )
( )
24 078
(6 282)
(8 247)
9 549
-       MSIG
20 000
15 000
10 000
45 000
-       NDMC
40 000
44 000
(86 337)
( )
( )
( )
Transfers and subsidies
( )
Payment of Capital Assets -
( )

42. THANK YOU! 42