SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION
(SALGA) BUDGET - 2008
The South African Local Government
Association (SALGA) has a profound role of promoting and protecting organised
local government interests. This mandate is re-invigorated by the resolutions
their 2007 National Conference, which adopted critical resolutions to
effectively put local government at the core of service delivery processes in
an efficient and effective local government system. The Conference resolutions
evolved, through a series of phases, into a 5-year strategic agenda, which is
based on four critical pillars including;
·
Strategic profiling – refers to its
role in building the profile and image of local government within
·
Support and advice – refers to
several functions i.e policy analysis research and monitoring; knowledge
sharing and municipal support.
·
Representation – refers to
stakeholder engagement (developing relationships with stakeholders); lobbying
and advocacy (representing the interests of members in broader debates and
programmes) and being an effective employer representative for members[1].
The
strategic objectives above are underpinned by internal programmes aimed at
strengthening SALGA’s corporate governance and programmes in order to deliver
on the three functions listed above[2]. The strategic plan defines the contribution
of SALGA in the challenging terrain of constructing a truly developmental local
government.
In addition
to the 5-year strategic plan, there are numerous problems besetting the
institution in relation to financial management and accountability, emanating
from the 2006/7 Auditor Generals report. In an attempt to establish solid
financial controls SALGA adopted Operation Clean Audit Report (OPCAR) that
involves building of internal capacity in terms of legal and compliance
functions; performance management function; and organisational strategy and
business planning[3].
In accordance with the Estimates of National
Expenditure (ENE) 2008, which does not take into account all sources of revenue
generation, provides SALGA with a total revenue of R140 million for the 2008/9
financial year. Revenue for the period between 2007/08 and 2010/11 is set to
grow by an average annual of 7.8 per cent, with an increase in transfers for
the department of 6.7 per cent over the same period. Regarding projected
expenditure between 2007/08 is set to grow by 8.7 per cent. According to the
ENE (2008), these increases were necessitated by the 2007 conference
resolutions which mandated SALGA to strengthen policy analysis, research and
monitoring capacity; strengthen the knowledge sharing programme; develop
guidelines in response to issues raised by members; establish structured
relationships with stakeholders; and strengthen SALGA’s lobbying and advocacy
role[4].
SALGA’s
budget breakdown however shows figures with a marked increase as it provides an
all-encompassing account of all sources of revenue including levies and bad
debt recovery, interest accrued as well as goods and services. SALGA expects a
total of R171 million, part of which comes from the membership levies, while
R19 million is anticipated to be bad debts recovered and R22 million transfer from
the department[5].
In line with
5 year Local Government Strategic Agenda (LGSA), SALGA is charged with the
responsibility support capacity building mechanisms and ensuring
efficaciousness of ward committees. This responsibility in addition to SALGA’s
own strategic objectives requires stronger organisation capacity and more
resources for adequate hands-on support. Strengthening organisational capacity
is necessary to be able to discharge this responsibility effectively.
Notwithstanding these important tasks, the provincial budgets and allocations
for critical components such as municipal labour and human resources, and
governance and intergovernmental relations seem inadequate. Capacity building
and functionality of ward committees are critical tasks that require strong
institutional systems as well as sufficient allocations however, 5% and 4%
budget allocations for municipal labour and human resources and governance and
intergovernmental relations seem insufficient.
The 2006/7 Auditor
General’s (AG) report raised critical issues about the state of financial
management in SALGA. The AG expressed concern about lack of a budget policy
which would ensure alignment between the budget and programmes and systems to
monitor the actual performance. This is a critical issue in terms of the Public
Finance Management Act (PFMA) which requires alignment of both budget and
strategic plans with measurable indicators to ensure maximum performance. The
AG also indicated that were institutional weaknesses relating to inadequate
internal control systems to ensure prudent financial management and
accountability. This resulted in non-compliance with Treasury Regulations as
well as relevant legislation. Due to these weaknesses SALGA received a disclaimer
for the AG. It crucial therefore to examine progress regarding instituting
proper institutional controls to address issues raised by the AG and
recommendations from the Standing Committee on Public Accounts (SCOPA).
Issues such
as risk management, good governance and the internal audit capacity are
critically important to be addressed for restoring sound financial management.
SALGA has additional responsibilities emanating from the 5 year LGSA as well as
resolutions of its 2007 conference. It therefore follows that the institutional
capacity and ability to progressively realise these objectives must be
revamped. Clarity of purpose and planning are critical in order to achieve the
pre-determined strategic objectives. However, it is not immediately clear how
SALGA intends to provide hands-on support to member municipalities and
performance indicators with specific timeframes is not provided in the
strategic plan.