South African Local Government Association
Schedule 3A public entity i. t. o. the Public Finance Management Act, 1999 and recognised i. t. o. the Organised Local Government Act, 1997
Annual Financial Statements for the year ended 31 March 2017
Notes to the Annual Financial Statements
Figures in Rand 33. Key management personnel( continued)
* Other allowances comprise travel allowance; cell phone allowance and acting allowance( where applicable). International per diem is paid to employees who undertake SALGA’ s mandate of strategic profiling. SALGA’ s chairperson partakes in governance structures of internal bodies such as the local government Pan-African body, United Cities and Local Governments of Africa( UCLGA) as Vice President; he is also President of the UCLGA Southern Africa Regional Office( UCLGA-SARO); SALGA also participates in other world-wide bodies such as United Cities and Local Government( UCLG); Commonwealth Local Government Forum( CLGF) and Metropolis. In pursuit of SALGA’ s mandate in these bodies the Chairperson is supported by the Chief Executive of the organisation.
** Performance related bonuses are per the SALGA performance management policy that is implemented with an oversight role of the Performance Management and Remuneration Committee comprised of independent non-executive members. The applicable performance rewards are based on merit and the applicable reward rates matrix range from 9 %( minimum) to 20 %( maximum).
SALGA’ s Performance Management and Remuneration Committee is charged with normalising of SALGA’ s remuneration framework, particularly in instances where salary bands of some executives are on a“ personal to holder basis” till the expiry of the contract or through natural attrition or earlier. The Chief executive officer’ s current remuneration has been identified to be one of these category of employees. Notwithstanding, the efforts to manage the escalation of remuneration at SALGA, particularly those of executives, it is important to note that SALGA had to review its remuneration policies as it pertains to its executives and benchmark these with municipalities particularly metros since metropolitan municipalities pose the greatest direct remuneration competitor to SALGA( also see report of the chairperson of SALGA’ s Performance Management and Remuneration Committee in the annual report).
235 SALGA ANNUAL REPORT 2016 / 17