Transcript MDB - IMFO
STATE OF MUNICIPAL CAPACITY 2011 Presentation of National Findings on Municipal Capacity Assessment in the 2011/12 Financial Year IMFO CONFERENCE: 08 October 2012 Chairperson: Mr Landiwe Mahlangu Municipal Demarcation Board E-mail: [email protected] 2 Outline of the Report • Introduction and purpose • History of Municipal capacity assessments • The revised model and outputs • The General Findings • General Staffing • Management Experience and Qualifications • Management Vacancies • Technical and Specialist Skills • Two-tier system • Determinants of performance • Implication for MEC Adjustment • Implication for Boundary Reviews • Recommendations 3 Introduction • The MDB has a legal mandate to assess municipal capacity: • When determining and re-determining municipal boundaries • To Advise Provincial MEC’s on the capacity of district and local government capacities • 12 years into our new system of local government, the relationship between capacity and performance of municipalities requires attention • National Planning Commission Vision 2030 • Stabilise the political-administrative interface • Focus on skills and professionalism will be ineffective if the roles of political principal and administrative head are not clearly separated. • Make the public service and local government careers of choice so that they are able to attract, retain and build the best staff at all levels. • Develop technical and specialist professional skills. • Particularly for local government, this means actively producing the technical and specialist skills for its core functions e.g. engineers, planners, environmental health officers. 4 Municipal capacity assessments • MDB capacity assessments taken place since 2001/2 • Strategic resource for local government sector • MCA were the most widely cited document • The only authoritative source on staff capacity • Review of the model took place in 2010 • Methodology improved in 2011 • Targeted at all municipalities in the country (including metros) • Collation of existing data sources • Covered a wide range of functional areas • Online data collection tool • Data collected relevant to the 2010/11 Municipal Financial Year • Useful Feedback to municipalities (Report cards) • Web-based database for warehousing and analysing data 5 Process & Outputs Collate Data from National Sources Collect Data from Municipalities Conduct Qualitative Assessment in 9 Districts National Report Webbased Database Municipal Comparative Reportcards District Level Reportcards 9 Qualitative District Reports 6 NATIONAL REPORT 7 The National Report • To draw an analysis of trends in municipal capacity across different categories of municipalities and municipalities in different provinces • It is intended to present the set of capacity challenges and successes, so that relevant stakeholders are equipped to develop a response to these. 8 Source of Data Type of Information Source Year Custodian Coverage Context Index Mainly Census 2001 2001 (Calculated in 2012) DCOG All Municiipalities Financial Information Local Government Budget and Expenditure Database (preaudit) 2010/11 National Treasury All Municipalities Water Services Performance Blue Drop and Green Reports for Water Services Authorities 2010/11 Department of Water Affairs All WSAs & others Audit Information Municipal audit findings 2010/11 OAG All Municipalities Staffing Completed MDB Municipal Capacity Assessment Questionnaires 2010/11 MDB All but 7 municipalities participated Demographic Information Community Survey 2007 Statistics South Africa All Municipalities 9 GENERAL STAFFING 10 Unfilled posts are significant 11 Municipal structures may be overdesigned and not fully affordable 12 Rural municipalities struggle to fill posts they have resources for 13 This is the case in Limpopo, KZN and EC 14 Overall municipal attrition is not high 15 Key findings on general staffing 72% • Posts Filled 32% • Funded posts vacant, mainly in rural municipalities 7% • Staff Attrition 16 MANAGEMENT EXPERIENCE AND QUALIFICATIONS 17 Divergence in MM experience between provinces 18 Free State, Gauteng and North West have many recently appointed MMs 19 CFOs in WC have 20 years experience compared with 4.1 in Free State 20 Limpopo & Free State have recently appointed CFOs 21 Similar divergent experience for technical services managers 22 Corporate services managers are most experienced in Gauteng 23 Improvement in senior managers’ qualifications over time % Percentage managers with more than bachelors degree as highest qualifica on 70% 60% 50% 40% 30% 20% 10% 0% Municipal Manager Chief Financial Officer Technical services manager 2008 35% 16% 11% 2011 63% 37% 34% 24 MMs are most qualified and Technical Services managers are the least qualified of key managers 25 Key findings on management qualifications & experience 3.3 years • Number of years MMs have been in their positions 46% • MMs have a post-graduate degree • 1 in 3 have a Masters or Doctorate 48% • Technical Services Managers have less than a Bachelors Degree 26 MANAGEMENT VACANCIES 27 3 out of 4 Section 57 Posts were filled 28 B1s and B3s had long vacancies for S57 29 One in Four S57 posts was vacant for more than 3 months: NC highest 30 Almost 1 in 6 S57 managers exited in FY, higher in FS, MP, LP & KZN 31 High attribution of exits to resignations 32 Key findings on vacancies 75% • S57 Posts Filled 25% • S57 Posts vacant for more than 3 months 15% • S57 left during year • 64% of these resigned 33 TECHNICAL & SPECIALIST SKILLS 34 Spread of Engineers is very uneven 35 Chronic Shortage of Engineering Professionals in B4 and C2 Municipalities. Most Engineers in Metros 36 49% of all municipalities and 44% of C2s do not have a registered engineer Number of Engineers 100% 90% Percentage of Municipalities 80% 100+ 70% 10+ 60% 5+ 50% 4 3 40% 2 30% 1 0 20% 10% 0% A B1 B2 B3 B4 C1 C2 All 37 Lack of engineers in C2 districts, given their infrastructure assets, is a cause for concern 38 Planners are also mostly in Metros. Number of planners per municipality is concerning, especially C1s. 39 41% of all municipalities and 44% of C1s do not have a registered planner Number of Planners 100% 90% Percentage of Municipalities 80% 100+ 70% 10+ 60% 5+ 50% 4 3 40% 2 1 30% 0 20% 10% 0% A B1 B2 B3 B4 C1 C2 All 40 Key findings on scarce skills 49% • Municipalities without a registered engineer 41% • Municipalities without a registered planner 44% • C2s have no engineers • C1s have no planners 41 TWO TIER SYSTEM 42 Governance and Administration dominates staffing in B4s and C1s 43 Governance and Administration Expenditure for B4s, C1s and C2s is large • B4s spend about 70% on Governance & Administration • This is also very high (41%) in their C2 partners • C1s spend more than 50% on GAPD 44 This is consistent with reviews undertaken of two-tier local government • The role of district municipalities in many parts of the country is dominated by governance and administration rather than municipal service delivery • Where districts have significant service delivery responsibilities, better role clarification and efficiently designed governance and financing arrangements are needed • Most Districts have Yet to fulfil role as redistributors of capacity, as they have not been able to attract scarce technical skills such as engineers and planners to rural spaces 45 DETERMINANTS OF PERFORMANCE 46 What can we attribute performance to? • Staffing? • Budgets? • Experience of Managers? • Qualifications? • In doing this analysis, we utilised information made available by regulatory • We therefore relied mostly on Water services, while some performance information was collected for Roads, Fires Services and Solid Waste and other services 47 We did not find an obvious correlation between performance and capacity in water sector 48 There is a relationship between context and performance, but many exceptions 49 The untold story on audit opinions 2011 39 audits were worse 175 Remained the same 13% Qualified 60 were better Source: PDG, 2012 30% Disclaimer or Adverse 55% Unqualified 50 No direct relationship between MM & CFO Experience & Qualifications with Audit Outcome 51 The Missing Link in Performance • While the following ingredients are all necessary • Staffing • Financial Resources • Experienced & Qualified Managers • Leadership and Management Behaviors have a powerful impact on performance • It is a pity that leadership is so difficult to measure and account for Relationship between performance and capacity is mediated by leadership • Institutional Capacity is heavily influenced by Context (sociogeographic) • Together Context and Institutional Capacity affect performance Performance • However Leadership (behaviours overcoming constraints) plays a powerful role in determining performance Leadership • It mediates the relationship between capacity & performance Institutional & Individual Capacities Source: PDG, 2012 Context (Environmental Capacity) 53 IMPLICATIONS AND RECOMMENDATIONS 54 Implications for MEC Adjustments • While this data will certainly be useful to any process considering adjustment of functions, • Capacity is one of many criteria that need to be considered in identifying the ideal location of functions • A Quantitative View of Capacity is Insufficient • A qualitative and in-depth engagement to understand local perspectives, conditions, arrangements and dynamics is essential to coming to a view of capacity that complements the quantitative view. • A pilot process of conducting an in-depth qualitative assessment has been undertaken in 9 selected district families, covering 20% of the country’s districts. • This has created a useful analysis of arrangements and capacity application for delivering certain functions. 55 Implications for Boundary Adjustments • In considering an adjustment, a range of spatial and socio-economic criteria should inform the adjustment of boundaries. • The capacity of current institutions is arguably a factor for consideration, but alone is insufficient for boundary adjustment. • The data obtained through this exercise and complemented with other data sources is an important resource and input into the process of boundary adjustments. 56 Recommendations Further stakeholder discussions • Focused discussions with key stakeholders will enrich this research and analysis. Develop the National Capacity-Building Strategy • Findings to feed into a process of designing an appropriate response, that is strategic and widely supported across stakeholders • Framework and strategy development to be lead by DCOG with support of other stakeholders • An integrated approach recommended, also looking at provinces National summit on municipal capacity • To ensure consensus-building and a coherent and co-ordinated intergovernmental approach to addressing capacity issues in local government. 57 CONCLUDING THOUGHTS “When all is said and done, more is said than done”