Performance information
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SALGA lobbied SARS to provide
municipalities with access to non-
financial information to meet the
data
verification
working
group
recommendation.
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SALGA formed part of the steering committee
on intergovernmental debt and facilitated
the payment of outstanding state debts to
municipalities.
Alternative infrastructure financing options
papers were crafted to further contribute to the
municipal borrowing policy framework. The four
papers included:
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Paper on property value capture (property
rates and TIF) was made ready for
printing;
Paper on municipal bonds was finalised;
Revised paper on municipal pooled
financing; and
Drafted paper on pay for success social
Public-Private Partnership.
A research linking economic growth and
local government was done and provided
recommendations for municipalities to consider
private sector as source of infrastructure
financing. Another desktop analysis of the
Eskom debt provided insight into the internal
and external factors affecting municipalities.
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municipalities which was developed
and used to support the affected
municipalities;
Training workshops were convened in
all provinces to strengthen collaboration
provincially between SALGA, provincial
treasuries and provincial CoGTAs; and
The initiative of rolling out workshops on
introducing local government to trainees
of the Auditor-General South Africa
(AGSA) throughout the country was
continued successfully for the third year.
MASP follows a multidisciplinary approach
that is based on four pillars.
All four pillars in a municipality needs to be
strong and functioning effectively, in order
for a municipality to obtain and sustain
unqualified audits and good service delivery.
SALGA is confident that the MASP covers the
risk areas and root causes identified by the
AGSA, as well as the three aspects audited.
Institutional capacity Financial management
Leadership Governance
Municipal audit support programme
The municipal audit support programme
(MASP) was launched in July 2014 with the
objective of supporting selected municipalities
to progressively improve their audit outcomes.
The selection is based primarily on the audit
outcomes and the focus is on adverse and
disclaimed municipalities. MASP focusses on
four pillars: leadership, institutional capacity,
financial management and governance.
In 2016/17, 31 municipalities received support
on all the pillars of MASP. Some of the support
provided is outlined below:
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Research was conducted to evaluate the
effectiveness and efficiency of MASP. The
research highlighted areas where MASP
is performing effectively and areas where
improvement is required. Coupled with
this was a guide for newly amalgamated
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The “red zone”, which comprises adverse
and disclaimer outcomes as well as audits
not finalised at legislated date, has decreased
slightly when compared to 14/15 red zone
municipalities ie 35 municipalities. Although 13
municipalities have progressed out of the red
zone there was an initial significant increase of
audits not finalised by legislated date as well as
regressions. Of the 13 municipalities that have
progressed, two have progressed to unqualified
and 11 to qualified audit opinions. SALGA
provided various forms of support to five of the
13 progressed municipalities, namely Ephraim
Mogale, Westonaria, Randfontein, Emakhazeni
and Oudtshoorn.