Total MIG Funded R16 467 574 The total capital budget amounts to R28 209 666.00. and storm water constitutes 66% of the total capital budget whereas the remaining portion is constituted by 16% community halls,8% land and buildings (administration),6% parks and cemeteries,3% office furniture and the lowest being 2% for machinery and equipment. ANNUAL BUDGET TABLES (ATTACHED) The following pages present the ten main budget tables as required in terms of section 8 of the Municipal Budget and Reporting Regulations. These tables set out the municipality’s 2011/12 budget and MTREF as approved by the Council. Part 2 – SUPPORTING DOCUMENTATION OVERVIEW OF THE BUDGET PROCESS Phases Activity Outputs Role Players Time Frame Management Meeting Discuss IDP Review and Budget Process IDP Review and Budget Process Plan IDP Manager Municipal Manager Departmental Heads Meeting 22 Aug 10 Analysis *Status Quo report *Identification of opportunities and constraints *Strategy Development *Implementation plan Visit to 14 wards IDP Manager Unit Managers PRO Ward Committees Interviews Meetings Desktop 1 Aug – 31 Aug 2010 1st IDP Representative forum Presentation of analysis phase All Stakeholders Meeting 30 November 2010 Strategies Performance and IDP Status Quo Report Assessment of organizational Achievements, problems opportunities and constraints. Consolidation of information Municipal Manager IDP Manager Interview Desktop 30 Nov 2010
from Ward Development plans Recommendations on future plans Strategic Planning Session Institutional challenges and SWOT analysis Municipal Manager IDP Manager Departmental Heads Working session 8-9 February 2011 Strategic Planning Session Priority issues & development of KPA’s & KPI’s Municipal Manager IDP Manager Departmental Heads Councillors Working session 8-9 February 2011 Section 53 of the MFMA requires the Mayor of the municipality to provide general political guidance in the budget process and the setting of priorities that must guide the preparation of the budget. In addition Chapter 2 of the Municipal Budget and Reporting Regulations states that the Mayor of the municipality must establish a Budget Steering Committee to provide technical assistance to the Mayor in discharging the responsibilities set out in section 53 of the Act. Budget Process Overview In terms of section 21 of the MFMA the Mayor is required to table in Council ten months before the start of the new financial year (i.e. in August 2010) a time schedule that sets out the process to revise the IDP and prepare the budget. The tabled in Council the required the IDP and budget time schedule on 25 August 2010. Key dates applicable to the process were: Phases Activity Outputs Role Players Time Frame 1st Draft IDP and draft Budget to Executive Committee Political Assessment and recommendations of draft IDP and Budget Mayor Executive Committee Management Meeting 25 February 2011 The table below indicates the process that will be followed to compile the Budget and IDP: Phases Activity Outputs Role Players Time Frame Projects Strategic Planning Session Projects have funding & wish list which have no funding Municipal Manager IDP Manager Departmental Heads Working session 8-9 February 2011 Drafting of Annual Plans and Departmental budgets Programmes reflective of :- -Projects/programmes -Objectives -KPI’s and Targets Departmental Heads Relevant organs of state -Planning sessions with staff -Planning sessions 8-9 Feb 2011
-Cost Estimates -Implementation plan with officials from various organs of state -Desktop Annual Municipal Business plan (consolidation of Departmental plans) Consolidated Draft IDP and Budget IDP Manager Chief Financial Officer Desktop 8-9 February 2011 Strategic Planning Session Discuss IDP which include annual business/operational plans Departmental Heads Divisional Managers Meeting 8-9 February 2011 1st Draft IDP and draft Budget to IDP/Budget Steering and Portfolio Committees Political Assessment and recommendations of draft IDP and draft Budget Departmental IDP/Budget Steering and Portfolio committees members Meeting 23 February 2011 2nd IDP Representative forum Tabling of the 1st draft IDP to stakeholders . Stakeholders comments/inputs Stakeholders Meeting 24 February 2011 1st Draft IDP and draft Budget to Council . Political assessment and approval of draft Budget and IDP All Councillors Management Meeting 28 February 2011 Invitation for public comments on the Budget an IDP . Stakeholders comments -All residents -District Municipality -Stakeholders Written/oral Public hearings/ 1 March- 28 March 2011 submission
Development of service delivery and Budget implementation plan Service delivery and Budget implementation plan Municipal Manager IDP Manager Heads of departments Submit final plans to MM/IDPM 4 April 2011 Approval draft to the IDP/Budget Steering and Portfolio committees Political inputs and recommendations on draft of the IDP and Budget IDP/Budget Steering and Portfolio Committees Meeting 13 April 2011 draft to the Executive committee Political inputs and recommendations on final draft of the IDP and Budget Executive Committee Meeting 18 April 2011 draft to the Council for approval Council approval of Budget and IDP All Councillors Management Members of the public Meeting 20 April 2011 Development of performance plans and performance agreements Performance plans and performance agreements Mayor Municipal Manager Planning session 3-7 June 2011 Phases Activity Outputs Role Players Time Implementation of IDP, Budget and PMS Implementation All staff members Work 1 Jul Jun 2012 1st Quaterly Review 2nd Quaterly Review 3rd Quaterly Review 4th Quaterly Review Review Progress against: Meeting of objectives Time frames Expenditure patterns Development impact Mayor Municipal Manager Departmental Heads Mid Oct 2010 Mid Jan 2011 Mid Apr 2011 Mid July 2011 Annual report Compile annual report Municipal Manager Departmental Heads Mid July 2011 OVERVIEW OF ALIGNMENT OF ANNUAL BUDGET WITH IDP The Constitution mandates local government with the responsibility to exercise local developmental and cooperative governance. The eradication of imbalances in South African society can only be realized through a credible integrated developmental planning process. Municipalities in South Africa need to utilise integrated development planning as a method to plan future development in their areas and so find the best solutions to achieve sound long-term development goals. A municipal IDP provides a five year strategic programme of action aimed at setting short, medium and long term strategic and budget priorities to create a development platform, which correlates with the term of office of the political incumbents. The plan aligns the
Ephraim Mogale Municipality has reviewed the following Budget Related policies for the financial year 2011/2012 whereas all policies remained unchanged: 1.8.1. SUBSISTENCE AND TRAVEL POLICY This policy was reviewed as follows; The rand per kilometer claimed by employees who do not receive any fixed travel allowance was changed in order to comply with SARS rates from the previously used AA rates which are meant for private companies Sec. 3.1.1.3. Officials who are not receiving a fixed monthly allowance Applicable SARS rate as approved by the minister of finance.(R3.05) A new section has been included in order to regulate the provision of a fixed travel allowances Sec. 3.1.4. Fixed Travel Allowance: 3.1.4.1. An application for a fixed travel allowance will be approved by the Municipal Manager from a unit manager given the nature of the duties for the applicant or a special project that requires temporary travel allowance if it constitutes sound financial management. 3.1.4.2. All travel allowances approved as per clause 3.1.4.1. will be calculated at a maximum of per month. All other rates have been changed in order to comply with the current rates from SARS Daily allowance- R88 Overnight allowance- R110 Overnight with no accommodation arrangement- R286 1.8.2. CELLPHONE ALLOWANCE POLICY The policy has been reviewed to for an increase based on the inflation rate of 6% as per circular 54. Sec. 4.4.2. Capping All-inclusive Amount (in Rand) Municipal Manager R 1 452.00 Unit Managers R 1 111.00 PRO R 825.00 Divisional Managers R 770.00 Supervisors R 605.00 Drivers R165.00 airtime voucher per month