national mig management unit programme …. mig operational framework... · national mig management...

NATIONAL MIG MANAGEMENT UNIT PROGRAMMEMANAGEMENT PROCESSES AND PROCEDURES

Note: The Management Processes and Procedures document is aworking document to be revised as and when required.

2

NATIONAL MIG MANAGEMENT UNIT PROGRAMME MANAGEMENT PROCESSES AND PROCEDURES

CONTENTS

1. INTRODUCTION 5

2. PRINCIPLES AND OBJECTIVES OF THE MUNICIPALINFRASTRUCTURE GRANT 52.1 KEY PRINCIPLES 52.2 MIG PROGRAMME OBJECTIVES 6

3. INSTITUTIONAL ARRANGEMENTS 73.1 AT MUNICIPAL SPHERE – THE DEVOLUTION OF RESPONSIBILITY TO THE LOWEST LEVEL 73.2 AT PROVINCIAL SPHERE 73.3 RESPONSIBILITY MATRIX 7

4. CONDITIONS APPLIED TO THE MIG 174.1 PRINCIPLES RELATING TO THE SETTING OF CONDITIONS 17

4.1.1 Division of Revenue Act 174.1.2 Cross-cutting conditions 174.1.3 Sector specific conditions 18

5. COMMUNICATION FLOW AND INTERACTION PROCEDURES 205.1 INTERACTION 20

5.1.1 Interaction between the National MIG Unit, ProvincialMIG Management Unit, PMUs and Municipalities 20

5.1.2 Interaction between PMU, Municipality and project consultant/s 215.2 MEETINGS 21

5.2.1 Provincial Progress Meetings 215.2.2 National quarterly workshops 225.2.3 Ad-hoc Meetings 22

6. MIG PROJECT LIFE CYCLE6.1 PRELIMINARY PHASE6.2 PRE-IMPLEMENTATION PHASE6.3 IMPLEMENTATION PHASE6.4 OPPERATION AND MAINTENANCE

7. GENERIC REPORTING MECHANISMS, FORMATS AND PROCEDURES 267.1 DIVISION OF REVENUE ACT – MONTHLY REPORTING 26

7.1.1 Recipient Municipalities 267.1.2 PMUs 26

3


7.1.3 Provincial Programme Management Unit 277.1.4 National MIG Unit 277.1.5 dplg – Chief Financial Officer 27

7.2 MONTHLY PROGRESS REPORT 287.2.1 Recipient Municipalities 287.2.2 PMU 287.2.3 Provincial Programme Management Unit 297.2.4 National MIG Unit 29

7.3 QUARTERLY KPI REPORT 397.4 ANNUAL REPORT 30

8. MIG NATIONAL FUND ADMINISTRATION SYSTEM 318.1 MUNICIPAL INFRASTRUCTURE GRANT (MIG) 31

8.1.1 Recipient Municipalities 328.1.2 PMUs 328.1.3 Provincial MIG Management Unit 338.1.4 National MIG Unit 338.1.5 Under spending at municipal level 338.1.6 Control measures for expenditures/transfers 348.1.7 Assist municipalities 348.1.8 Delaying of payments 358.1.9 Withholding of payments 358.1.10 Non-compliance 35

8.2 RE-ALLOCATION OF MIG FUNDS 35

9. MIG MANAGEMENT INFORMATION SYSTEM (MIS) 369.1 PRELIMINARY PHASE 36

9.1.1 Project Registration Form 369.2 PRE-IMPLEMENTATION PHASE (DESIGN & TENDER) 38

9.2.1 Register consultant 389.2.2 Request for payment from municipality (Design phase) 38

9.3 IMPLEMENTATION PHASE (CONSTRUCTION) 389.3.1 Register contractor 389.3.2 Request for Payment (Construction phase) 389.3.3 Physical Completion Report 389.3.4 Request for Payment (Retention) 38

10. GENERAL FILING AND BACKUP PROCEDURES 3910.1 BACKUPS 3910.2 PROJECT FILES 3910.3 MINUTES 3910.4 REPORTS 3910.5 FINANCIAL ADMINISTRATION SYSTEM 40

10.5.1 Submission of draw downs 4010.5.2 Proof of Expenditure (1084’s) 40

10.6 SERVICE LEVEL AGREEMENTS 40

CONTENTS

4


ABBREVIATIONS

The following abbreviations are used throughout this document.

BAS Basic Accounting System

CETA Construction for Education Authority

DME Department of Minerals and Energy

DoH Department of Housing

DORA Division of Revenue Act

DoT Department of Transport

DPLG Department of Provincial and Local Government

DPW Department of Public Works

DWAF Department of Water Affairs and Forestry

EMM Executive Manager MIG

EPWP Expanded Public Works Programme

GIS Geographical Information System

IDP Integrated Development Plan

IIF Infrastructure Investment Framework

IT Information Technology

KPIs Key Performance Indicators

LGCB Local Government Capacity Building Grant

LIC Labour Intensive Construction

MIIF Municipal Infrastructure Investment Framework

MIS Management Information System

MITT Municipal Infrastructure Task Team

NQF National Qualification Framework (SETA – Sector for Education Training Authority)

O&M Operation and Maintenance

PMITT Provincial Municipal Infrastructure Task Team

PMM Provincial MIG Manager

PPMU Provincial Programme Management Unit

PMU Project Management Unit

SMF Senior Manager Finance

SMIF Special Municipal Infrastructure Fund

SMM Senior Manager MIG

SMME Small, Medium and Micro Enterprises

5


1. Introduction

The purpose of this guideline document is to create conformity and to regulate the MunicipalInfrastructure Grant (MIG) programme management processes and procedures.

The National MIG Unit’s main responsibility is the administration of MIG funds and therefore theimplementation of the following management processes and procedures across all spheres ofgovernment:

• Communication, documentation and information flows generic to all sectors and departmentalpolicies

• Generic reporting mechanisms, formats and procedures• MIG national fund administration system• MIG Management Information System (MIS).

The planning process of the Municipal Infrastructure Investment Fund (MIIF) is not covered in thisdocument.

This document is a work in progress and will be updated as and when the environment or conditionschange.

2. Principles and objectives of theMunicipal Infrastructure Grant

2.1 Key principles

The Municipal Infrastructure Grant complements the equitable share grant to local government,however it is not provided unconditionally to municipalities. The key principles underpinning thedesign of the MIG are outlined below:

a) Focus on infrastructure required for a basic level of service: The MIG programme is aimedat providing only basic infrastructure.

b) Targeting the poor: The programme is aimed at providing services to the poor and funds willtherefore be targeted to reach them.

c) Maximising economic benefits: The programme will be managed to ensure that the localeconomic spin-offs through providing infrastructure are maximised. This includes employmentcreation and the development of enterprises.

d) Equity in the allocation and use of funds: The mechanism for distributing funds must providefor equitable access to such funds by the poor in order to make uniform progress in closing theinfrastructure gap.

6


e) Decentralisation of spending authority within national standards: Decisions relating tothe prioritisation of municipal infrastructure spending, such as the identification, selection andapproval of projects, are best undertaken at municipal level, with the following provisions:

• The operating finance and management arrangements must be in place.• A degree of national and provincial influence over capital spending, expressed through clear

norms, standards and spending conditions must be retained.• Unintended consequences should be limited: the grant must promote sound management

practices, not the reverse.

f) Efficient use of funds: Funding must be used to provide the greatest possible improvementin access to basic services at the lowest possible cost. This implies the following:

• There should be an appropriate selection of service levels.• Incentives and conditions must ensure that other funds are mixed with grant funds to minimise

leakage to non-eligible households and service levels.• The mechanism to disburse funds should be simple and easy to monitor, and the outcomes

of municipal spending should be easy to evaluate.

g) Reinforcing local, provincial and national development objectives: This implies the following:• The funding mechanism must be consistent with the planning processes of local, provincial

and national government.• Nodal municipalities associated with the Urban Renewal Strategy and the Integrated Sustainable

Rural Development Programme must receive proportionally greater allocations of funding.• Spatial integration must be promoted.• The emphasis must be placed on the selection of appropriate service levels.• The fund allocation formula should promote appropriate municipal performance relative to

policy objectives.

h) Predictability and transparency: Funds should be provided to individual municipalities on athree-year basis, consistent with medium term budgeting practice, with minimal in-year changesand with year to year changes based only on clearly defined conditions. It is also essential formunicipalities and other stakeholders to easily understand how the funds are distributed.

2.2 MIG programme objectives

National government provides infrastructure subsidies to ensure that all households have access toa basic level of infrastructure services. The benefits of this intervention are well known, particularlyin relation to the public good characteristics of many municipal services.

In the context of the principles outlined above, the key objectives of the Municipal Infrastructure Grantare to:

a) fully subsidise the capital costs of providing basic services to poor households: this implies thatpriority must be given to meeting the basic infrastructure needs of poor households, through theprovision of appropriate bulk, connector and internal infrastructure in key services;

b) distribute funding for municipal infrastructure in an equitable, transparent and efficient manner,which supports a co-ordinated approach to local development and maximises developmentaloutcomes;

c) assist in enhancing the developmental capacity of municipalities, through supporting multi-yearplanning and budgeting systems; and

d) provide a mechanism for the co-ordinated pursuit of national policy priorities with regard to basicmunicipal infrastructure programmes, while avoiding the duplication and inefficiency associatedwith sectorally fragmented grants.

7


3. Institutional arrangements3.1 At municipal sphere – the devolution of responsibility to the

lowest level

The MIG is a conditional grant to municipalities, and thus the management of the grant at municipallevel must occur within the planning, budgeting, financial management and operational arrangementsin this sphere. Effective management and utilisation of capital funding, falls within the responsibilityof the Municipal Manager.

Government, through the MIG programme, will therefore assist municipalities in the developmentof appropriate capital programme management capacity, typically achieved through the establishmentof Project Management Units (PMUs) within municipalities. PMUs will be accountable to the counciland management structure of the municipality in which they are established. However, they will besupported and monitored by the national MIG unit and by the Provincial Programme ManagementUnits.

Effective area-based, service sector and project planning is central to the success of a municipality’sinfrastructure investment programme. The MIG programme promotes the creation of an enablingenvironment through the devolution of responsibility to the lowest possible level and has twodimensions:

• Devolution of the project management function, which implies the establishment of a PMU withina municipality to ensure that there is ‘sufficient capacity’ to undertake the function.

• Devolution of responsibility for control of the funds, with associated accounting responsibility andthe requirement to contract with consultants and contractors, with the associated legal implications.

3.2 At provincial sphere

All national departments and their provincial counterparts retain their policy-making and regulatoryfunctions which cover the full range of municipal activity: governance, administration, planning,projects and operations. Furthermore, the departments and provinces retain their constitutional rightto intervene directly in the affairs of municipalities. (Reference: Constitution of RSA Act 108 of 1996)

Within the context of the MIG strategies, the provincial departments, through the Provincial ProgrammeManagement Units (PPMUs), will continue to hold responsibility for supporting and developingappropriate municipal planning capabilities. The MIG programme will integrate with these sectoralplanning initiatives through ensuring that:

• The MIG programme is properly integrated with municipal IDPs.• Planning for regional scale infrastructure is guided by provincial government, working in conjunction

with the municipalities and their PMUs.• The municipal PMUs are supported in their function of overseeing project feasibility studies within

the municipalities they serve, as part of the municipal planning process.

The following matrix details the specific roles, functions and responsibilities of each sphere ofgovernment.

3.3 Responsibility matrix

The role and responsibilities of the various roleplayers are as follows:

8


• M

inut

es o

f m

eetin

gs•

Site

vis

it re

port

s•

Labo

ur In

tens

ive

repo

rts

• C

ash

flow

rep

orts

MU

NIC

IPA

L SP

HER

E –

Incl

ud

ing

Pro

ject

Man

agem

ent

Un

its

(PM

Us)

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Fina

ncia

l Man

agem

ent

• Th

e PM

U i

s re

spo

nsi

ble

fo

r th

e ad

min

istr

atio

n a

nd

fin

anci

al m

anag

emen

t o

f M

IGfu

nds,

wit

hin

the

mun

icip

al a

nd n

atio

nal

acco

unti

ng s

yste

ms

for

infr

astr

uctu

re p

roje

cts

of

the

mu

nic

ipal

ity

and

an

y o

ther

mu

nic

ipal

itie

s w

her

e th

e PM

U h

as b

een

del

egat

edth

is a

utho

rity.

• Th

e PM

U i

s re

spo

nsi

ble

fo

r th

e co

mp

lian

ce o

f al

l co

nd

itio

ns

con

tain

ed i

n t

he

Div

isio

nof

Rev

enue

Act

(DO

RA) f

ram

ewor

k re

latin

g to

all

fund

ing

mec

hani

sms.

• Th

e PM

U is

dire

ctly

resp

onsi

ble

for t

he re

conc

iliat

ion

and

timel

y su

bmis

sion

of a

ll D

ORA

repo

rtin

gan

d ad

hoc

repo

rtin

g as

and

whe

n re

quire

d.•

Fina

l com

pila

tion

of m

onth

ly, q

uart

erly,

bi-a

nnua

l and

ann

ual r

epor

ts t

o th

e M

IG M

anag

er•

Mon

itor

the

cons

olid

ated

cas

h flo

w p

erfo

rman

ce r

epor

ts o

n ea

ch p

roje

cts

and

on t

he r

egio

nal

prog

ram

me

colle

ctiv

ely

• Ve

rify

and

reco

ncile

qua

rter

ly t

rans

fers

fro

m N

atio

nal t

o th

e m

unic

ipal

ities

• A

udit

and

adm

inis

ter

the

mon

thly

cla

ims

and

expe

nditu

re

• D

ORA

rep

orts

• M

unic

ipal

fin

anci

al r

epor

ts

Proj

ect

Iden

tific

atio

nan

d Pr

iorit

isat

ion

•Th

e co

-ord

inat

ion

of t

he p

roje

ct i

dent

ific

atio

n an

d pr

iori

tisa

tion

pro

cess

for

mun

icip

alit

ies

serv

ed b

y th

e PM

U,

wh

ilst

ensu

rin

g p

rop

er i

nte

gra

tio

n o

f th

e re

spec

tive

IIF

’s a

nd

ID

P’s

wit

h th

e ap

prop

riat

e in

put

from

the

var

ious

oth

er g

over

nmen

t lin

e fu

ncti

on d

epar

tmen

tsto

ens

ure

sync

hron

ised

ser

vice

del

iver

y.•

Ensu

re t

hat

mun

icip

aliti

es h

ave

the

reso

urce

s to

ope

rate

and

mai

ntai

n th

e pr

ojec

t th

roug

hout

the

proj

ect

lifec

ycle

.•

Ensu

re t

hat

mun

icip

aliti

es b

udge

t fo

r th

e ca

pita

l rep

lace

men

t or

reh

abili

tatio

n co

sts

ther

eaft

er.

• Th

e fe

asib

ility

pro

cess

nec

essi

tate

s th

at d

ue c

onsi

dera

tion

be g

iven

to

the

feas

ibili

ty

of t

he p

roje

ct in

ter

ms

of:

º Pr

ovin

cial

and

reg

iona

l gro

wth

str

ateg

ies

º In

tegr

ated

reg

iona

l-lev

el in

fras

truc

ture

pla

nnin

g an

d te

chni

cal f

easi

bilit

y of

the

pro

ject

s.º

Infr

astr

uctu

re b

ackl

og s

tudi

es.

º La

bour

Inte

nsiv

e Pr

ojec

ts (E

PWP

Gui

delin

es f

or la

bour

inte

nsiv

e co

nstr

uctio

n).

• ID

P•

Sect

or P

lans

• Pr

ovin

cial

/ Re

gion

al In

fras

truc

ture

inve

stm

ent

plan

s•

Back

log

stud

ies

• C

ontr

ibut

ion

to L

abou

r In

tens

ive

Proj

ects

(EPW

P)

Spec

ial M

unic

ipal

Infr

astr

uctu

reFu

nd•

The

co-o

rdin

atio

n of

SM

IF p

roje

ct a

pplic

atio

ns; i

n su

ppor

t of

inno

vatio

n in

the

pro

visi

on

of in

fras

truc

ture

• A

lso

in t

erm

s of

cos

t ef

fect

ive

regi

onal

-leve

l inf

rast

ruct

ure

solu

tions

invo

lvin

g a

num

ber

of m

unic

ipal

ities

.

• SM

IF B

usin

ess

Plan

s•

Regi

onal

Infr

astr

uctu

reIn

vest

men

t pl

an•

Tech

nica

l stu

dies

sup

port

ing

inno

vatio

n

Prog

ram

me

/ Pro

ject

Man

agem

ent

The

PMU

will

be

resp

onsi

ble

for

the

man

agem

ent

of t

he lo

cal i

nfra

stru

ctur

e pr

ogra

mm

e (m

unic

ipal

scal

e) a

s w

ell a

s ph

ysic

al p

roje

ct im

plem

enta

tion

activ

ities

whi

le e

nsur

ing

that

:•

All

proj

ects

mee

t ove

rall

plan

ning

obj

ectiv

es a

nd s

peci

fic k

ey p

erfo

rman

ce in

dica

tors

as

dete

rmin

edby

the

MIG

Pol

icy

Fram

ewor

k.•

The

co-o

rdin

atio

n of

reg

ular

pro

gres

s m

eetin

gs a

t lo

cal l

evel

and

rep

rese

ntat

ion

at t

he n

atio

nal

prog

ress

mee

tings

.•

Tthe

ass

ocia

ted

proj

ect m

anag

emen

t adm

inis

trat

ive

func

tions

from

pro

ject

regi

stra

tion,

eva

luat

ion

thro

ugh

to f

inal

pro

ject

com

plet

ion

repo

rts.

• Pr

ojec

t m

anag

e th

e la

bour

-inte

nsiv

e pr

ojec

ts in

line

with

in t

he E

PWP

fram

ewor

k an

d th

e re

late

dre

port

ing

requ

irem

ents

• C

ondu

ct s

ite-v

isits

/ m

eetin

gs t

o en

sure

com

plia

nce

to t

he P

roje

ct R

egis

trat

ion

form

and

the

Lett

er o

f A

ccep

tanc

e.•

Man

age

cash

flo

ws

and

com

mitt

ed p

roje

ct e

xpen

ditu

re

9


• M

inut

es o

f m

eetin

gs•

Site

vis

it re

port

s•

Labo

ur In

tens

ive

repo

rts

• C

ash

flow

rep

orts

MU

NIC

IPA

L SP

HER

E –

Incl

ud

ing

Pro

ject

Man

agem

ent

Un

its

(PM

Us)

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Mon

itorin

g D

atab

ase

• Th

e PM

U w

ill b

e re

spon

sibl

e fo

r th

e IT

man

agem

ent

of t

he m

onit

orin

g da

taba

se a

nd t

hepr

epar

atio

n of

all

nece

ssar

y re

port

s to

mun

icip

al a

nd t

he r

elev

ant

prov

inci

al a

nd n

atio

nal

depa

rtm

ents

.•

Gen

erat

ion

of R

egis

trat

ion

form

s / B

usin

ess

plan

s / F

easi

bilit

y st

udie

s•

Dat

a ca

ptur

e, u

pdat

ing

and

repl

icat

ion

of a

ll da

ta a

nd K

PIs

• N

atio

nal M

IG In

form

atio

nSy

stem

(MIS

)

Adm

inis

trat

ion

/ Con

trac

tA

dmin

istr

atio

n•

The

co-o

rdin

atio

n of

SM

IF p

roje

ct a

pplic

atio

ns;

in s

uppo

rt o

f in

nova

tion

in t

he p

rovi

sion

of

infr

astr

uctu

re•

Als

o in

ter

ms

of c

ost

effe

ctiv

e re

gion

al-le

vel i

nfra

stru

ctur

e so

lutio

ns in

volv

ing

a nu

mbe

r of

mun

icip

aliti

es.

• A

udit

com

plia

nce

of l

egal

con

diti

ons,

req

uire

d fr

om t

he d

iffer

ent

sphe

res

and

sect

ors

ofG

over

nmen

t•

Mai

nten

ance

of

site

vis

it re

port

s, O

H&

S re

gist

er

• C

ontr

act D

ocum

enta

tion

for c

onsu

lting

engi

neer

s an

d co

ntra

ctor

s•

MO

As

etc

Ther

e m

ay b

e a

loca

l mot

ivat

ion

to e

stab

lish

prog

ram

me

scal

e in

itiat

ives

, whi

ch c

ould

incl

ude

dist

rict

scal

e la

bour

-ba

sed

cons

truc

tion

prog

ram

mes

, par

ticul

arly

for

roa

ds.

Such

initi

ativ

es t

ypic

ally

hav

e a

stro

ng c

apac

ity b

uild

ing

elem

ent.

• C

omm

unity

aw

aren

ess

cam

paig

ns.

• SM

ME

Lear

ners

hips

• W

orke

r tr

aini

ng d

urin

g em

ploy

men

t

•Em

ploy

men

t ex

ist

stra

tegi

es

• Tr

aini

ng P

rogr

amm

es

• M

unic

ipal

Par

tner

ship

s (S

MM

E)

• C

omm

unity

Bas

ed P

artn

ersh

ips

• C

omm

unity

Bas

ed P

artn

ersh

ips

Oth

er C

apita

l Wor

ks F

undi

ng•

Cap

ital w

orks

fun

ded

from

oth

er s

ourc

es w

ill b

e in

clud

ed w

ithin

the

com

pete

nce

of t

he P

MU

.•

Labo

ur In

tens

ive

Proj

ects

(EPW

P) –

Enc

oura

ge t

he u

se o

f th

e EP

WP

Gui

delin

es f

or la

bour

inte

nsiv

e co

nstr

uctio

n.

Proj

ect–

base

d C

apac

ity B

uild

ing

• Th

e PM

U w

ill b

e re

spon

sibl

e fo

r th

e br

oad

co-o

rdin

atio

n of

pro

ject

-bas

ed c

apac

ity b

uild

ing

and

deve

lopm

enta

l ini

tiativ

es.

• Th

is c

apac

ity b

uild

ing

com

pone

nt o

f M

IG is

onl

y co

ncer

ned

with

pro

ject

s an

d th

e ar

rang

emen

tsre

latin

g to

the

eff

ectiv

e de

liver

y of

mun

icip

al in

fras

truc

ture

and

will

be

targ

eted

in t

he f

ollo

win

gm

anne

r:

• C

apac

ity B

uild

ing

Plan

s

Proj

ect

Leve

lPr

ojec

tIm

plem

enta

tion

Cap

acity

bui

ldin

g is

ass

ocia

ted

with

impr

ovin

g th

e ab

ility

of c

omm

uniti

es t

o be

com

e in

volv

ed w

ith t

he p

roje

ctpl

anni

ng a

nd c

onst

ruct

ion

of p

roje

cts.

With

reg

ard

toth

e la

tter

the

foc

us is

on

labo

ur-b

ased

con

stru

ctio

n an

dsm

all c

ontr

acto

r de

velo

pmen

t

Ope

ratio

nal

Und

er t

his

cate

gory

the

pro

ject

incl

udes

an

unde

rtak

ing

to tr

ain

the

futu

re s

ervi

ces

prov

ider

(or o

pera

tor)

to o

pera

teth

e in

fras

truc

ture

. Typ

ical

ly th

is w

ould

invo

lve

com

mun

ity-

base

d or

gani

satio

ns b

ut it

may

also

be

aim

ed a

t mun

icip

alst

aff.

In s

ome

case

s th

e ob

ligat

ion

to s

uppo

rt s

ervi

ces

prov

ider

s m

ay e

xten

d fo

r up

to

thre

e ye

ars.

Suc

h co

sts

may

be

incl

uded

und

er p

roje

ct c

osts

.

Prog

ram

me

leve

l

Mun

icip

al S

cale

Prog

ram

me

Man

agem

ent

The

focu

s of

the

nat

iona

l eff

ort

unde

r th

e na

tiona

l MIG

offic

e w

ill b

e on

bui

ldin

g th

e ca

paci

ty o

f pr

ojec

tm

anag

emen

t un

its (P

MU

s) t

o en

sure

tha

t th

ey c

an f

ulfil

thei

r fu

nctio

ns.

Proj

ect

Impl

emen

tatio

n

Scal

e o

f In

itia

tive

Typ

e o

f A

ctiv

ity

Key

Fea

ture

s

10


MU

NIC

IPA

L SP

HER

E –

Incl

ud

ing

Pro

ject

Man

agem

ent

Un

its

(PM

Us)

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Ope

ratio

n an

d Pl

anne

dM

aint

enan

ce•

Mun

icip

al In

fras

truc

ture

Inve

stm

ent

Plan

ning

tog

ethe

r w

ith In

tegr

ated

Dev

elop

men

t Pl

anni

ngis

nec

essa

ry f

or lo

ng-t

erm

fin

anci

al s

usta

inab

ility

of

mun

icip

al a

sset

s. In

sup

port

of

this

, it

iscr

itica

l tha

t m

unic

ipal

ities

hav

e pl

anne

d m

aint

enan

ce p

rogr

amm

es f

or t

heir

asse

ts o

n on

e ha

ndan

d th

e re

sour

ces

and

capa

city

on

the

othe

r.

• It

is t

he r

espo

nsib

ility

of

the

PMU

to

ensu

re t

hat

the

mun

icip

ality

has

the

res

ourc

es t

o fu

lfil t

heop

erat

ions

and

mai

nten

ance

obl

igat

ions

for

all

capi

tal p

roje

cts.

The

PM

U w

ill a

ssis

t w

here

ver

poss

ible

with

reg

ard

to t

he p

lann

ing

and

impl

emen

tatio

n of

the

O&

M p

rogr

amm

es,

dire

ctly

or in

dire

ctly.

• O

pera

tion

and

Plan

ned

Mai

nten

ance

Prog

ram

me

• U

pdat

ed a

sset

reg

iste

rs (

GIS

bas

ed)

GIS

• Th

e G

IS f

unct

ions

wou

ld b

e ba

sed

at t

he p

rovi

ncia

l off

ices

. Th

e G

IS f

unct

ion

can

be a

lso

beba

sed

at t

he P

MU

's

and

whe

re t

he G

IS is

bas

ed a

t Pr

ovin

ce,

mun

icip

aliti

es c

an m

ake

use

ofth

ose

prov

inci

al f

acili

ties.

• G

IS d

atab

ase

• A

sset

reg

iste

rs

Proj

ect

Mon

itorin

g an

d Ev

alua

tion

• So

cio-

econ

omic

impa

ct a

sses

smen

ts d

etai

ling

how

the

MIG

pro

gram

me

has

impa

cted

on

the

com

mun

itie

s an

d m

unic

ipal

itie

s in

ter

ms

of;

skill

s de

velo

pmen

t, c

omm

unit

y in

volv

emen

t,em

ploy

men

t cr

eatio

n, t

rain

ing,

mun

icip

al p

artn

ersh

ips,

loca

l eco

nom

ic d

evel

opm

ent

and

how

the

lives

of

the

com

mun

ities

hav

e im

prov

ed.

• Fa

cilit

atio

n of

bac

klog

stu

dies

and

env

ironm

enta

l im

pact

ass

essm

ents

of p

roje

cts

whe

n ne

cess

ary.

• Im

pact

Ass

essm

ent

Repo

rts

• Ba

cklo

g st

udie

s•

Mon

thly

Rep

orts

Com

mun

ity L

iais

on /

Dev

elop

men

t /

com

mun

icat

ions

• It

is c

ritic

al t

o th

e su

cces

s of

the

pro

gram

me

that

the

re is

the

app

ropr

iate

com

mun

icat

ion

and

liais

on w

ith t

he c

omm

unity

in r

espe

ct o

f pr

ojec

t pl

anni

ng a

nd im

plem

enta

tion

to e

nsur

e bu

y-in

and

long

ter

m s

usta

inab

ility

of

the

proj

ects

in t

erm

s of

the

com

mun

ity u

nder

stan

ding

the

nee

dto

pay

for

ser

vice

s as

wel

l as

the

deve

lopm

ent

of c

omm

unity

-bas

ed p

artn

ersh

ips

for

the

purp

oses

of O

&M

as

disc

usse

d ab

ove

unde

r th

e po

int

proj

ect-

base

d ca

paci

ty b

uild

ing.

• Fa

cilit

ate

com

mun

ity li

aiso

n lin

kage

s to

ens

ure

full

com

mun

ity p

artic

ipat

ion

at a

ll st

ages

of

apr

ojec

t’s li

fe c

ycle

.•

Dev

elop

and

impl

emen

t a

com

mun

icat

ion

stra

tegy

in li

ne w

ith p

rovi

ncia

l and

nat

iona

l obj

ectiv

es•

Pres

s re

leas

es•

Co-

ordi

nate

ope

ning

and

han

d ov

er c

erem

onie

s•

MIG

orie

ntat

ion

wor

ksho

ps e

tc•

Prep

are

and

deve

lop

MIG

cap

acity

bui

ldin

g bu

sine

ss p

lan

in a

lignm

ent

with

the

mun

icip

al L

ocal

Gov

ernm

ent

Cap

acity

Bui

ldin

g Pr

ogra

mm

e (L

GC

BG).

• C

o-or

dina

te t

he p

roje

ct-b

ased

cap

acity

bui

ldin

g in

ter

ms

of:

• Jo

b cr

eatio

n, w

ith t

he f

ocus

on

intr

oduc

ing

labo

ur-b

ased

con

stru

ctio

n m

etho

dolo

gy a

nd t

hede

velo

pmen

t of

SM

MEs

whe

re t

echn

ical

ly f

easi

ble.

• Th

e de

velo

pmen

t co

mm

unity

-bas

ed p

artn

ersh

ips

for

the

oper

atio

n an

d m

aint

enan

ce o

f th

ein

fras

truc

ture

.•

Mon

itor

and

repo

rt o

n im

plem

ente

d ca

paci

ty b

uild

ing

initi

ativ

es.

• C

omm

unity

liai

son

chec

klis

ts•

Trai

ning

sch

edul

es

11


MU

NIC

IPA

L SP

HER

E –

Incl

ud

ing

Pro

ject

Man

agem

ent

Un

its

(PM

Us)

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Plan

ning

/ D

evel

opm

enta

l Ini

tiativ

esEs

tab

lish

men

t o

f M

IG s

tru

ctu

res:

•Se

tup

/ est

ablis

h Pr

ovin

cial

MIG

Man

agem

ent

unit

•Su

ppor

t an

d fa

cilit

ate

the

esta

blis

hmen

t of

the

mun

icip

al P

roje

ct M

anag

emen

t U

nits

(PM

U)

Infr

astr

uct

ure

Inve

stm

ent

Plan

nin

g:

•En

sure

that

mun

icip

al ID

Ps c

ombi

ne to

form

a v

iabl

e de

velo

pmen

t fra

mew

ork

acro

ss th

e pr

ovin

ce,

an

d ar

e ve

rtic

ally

inte

grat

ed w

ith t

he P

rovi

ncia

l Gro

wth

and

Dev

elop

men

t St

rate

gy•

Supp

ort

the

dete

rmin

atio

n of

mun

icip

al b

ackl

ogs

and

the

prov

isio

n G

IS s

yste

ms

to s

uppo

rt t

hepl

anni

ng p

roce

ss•

Ensu

re t

hat

IDPs

giv

e pr

iorit

y to

the

bas

ic n

eeds

of

com

mun

ities

and

pro

mot

e th

e so

cial

and

ec

onom

ic d

evel

opm

ent

of c

omm

uniti

es•

Ensu

re t

hrou

gh t

he I

DP

proc

ess

- t

he p

rior

itiz

atio

n of

res

iden

tial

inf

rast

ruct

ure

for

wat

er,

sani

tatio

n, e

lect

ricity

, ref

use

rem

oval

, str

eets

, hou

sing

conn

ecto

r, an

d ot

her m

unic

ipal

infr

astr

uctu

relik

e ro

ads,

in li

ne w

ith a

ny M

IG o

r se

ctor

pol

icie

s es

tabl

ishe

d be

fore

the

sta

rt o

f th

e m

unic

ipal

finan

cial

yea

r•

Supp

ort

and

mon

itor

mun

icip

aliti

es t

o pr

epar

e an

d im

plem

ent

Wat

er S

ervi

ces

Dev

elop

men

tPl

ans

(WSD

P’s)

– in

coo

pera

tion

with

DW

AF

•En

sure

pro

per

co-o

rdin

atio

n be

twee

n al

l m

unic

ipal

inf

rast

ruct

ure

prog

ram

mes

wit

hin

the

resp

ectiv

e pr

ovin

ce•

Build

cap

acity

of

mun

icip

aliti

es t

o en

sure

the

dev

elop

men

t of

a t

hree

-yea

r ca

pita

l pla

n lin

ked

to it

s ID

P an

d bu

dget

- a

ppro

val b

y th

e m

unic

ipal

cou

ncil

requ

ired

no la

ter

than

30

June

200

4.

Ass

et M

anag

emen

t:•

Build

cap

acity

of

mun

icip

aliti

es t

o en

sure

the

dev

elop

men

t of

a s

usta

inab

le o

pera

tiona

l and

mai

nten

ance

pro

gram

me

for

the

thre

e ye

ars

and

beyo

nd –

the

cos

t of

whi

ch is

refle

cted

with

inth

e ap

prov

ed t

hree

-yea

r ca

pita

l pla

n bu

dget

.•

Build

cap

acity

of

mun

icip

aliti

es t

o en

sure

the

dev

elop

men

t of

a s

usta

inab

le o

pera

tiona

l and

mai

nten

ance

pro

gram

me

of e

xist

ing

infr

astr

uctu

re f

or w

ater

, sa

nita

tion,

ele

ctric

ity a

nd o

ther

infr

astr

uctu

re –

and

ass

ocia

ted

budg

et.

•G

IS s

yste

ms

supp

ort

for

the

deve

lopm

ent

of a

n ef

ficie

nt a

nd s

usta

inab

le a

sset

man

agem

ent

prog

ram

me.

Lo

cal E

con

om

ic D

evel

op

men

t /

Cap

acit

y B

uild

ing

:•

Supp

ort

the

esta

blis

hmen

t of

mun

icip

al s

ervi

ce p

artn

ersh

ips

thro

ugh

the

MIG

pro

gram

me

•Fa

cilit

ate

the

impl

emen

tatio

n of

labo

ur-in

tens

ive

met

hods

in a

ccor

danc

e w

ith th

e EP

WP

Gui

delin

esfo

r la

bour

inte

nsiv

e co

nstr

uctio

n an

d th

e SE

TA L

earn

ersh

ip P

rogr

amm

e.•

App

rova

l of

mun

icip

al c

apac

ity b

uild

ing

busi

ness

pla

ns, w

hich

mus

t in

clud

e co

mm

unity

bas

edpa

rtne

rshi

ps e

tc.

•M

inut

es o

f m

eetin

gs•

Eval

uatio

n re

port

s of

IDPs

•Th

ree

year

cap

ital p

lan

(Mun

icip

al)

•Pr

ovin

cial

Gro

wth

and

Dev

elop

men

tSt

rate

gy•

Part

ners

hip

agre

emen

ts

Faci

litat

ion

wit

h o

ther

Pro

vin

cial

Sect

or D

epar

tmen

ts.

Liai

son

with

Nat

iona

l Dep

artm

ents

:

•Es

tabl

ishm

ent

of P

rovi

ncia

l Mun

icip

al In

fras

truc

ture

Tas

k Te

am (P

MIT

T)•

All

sect

or d

epar

tmen

ts p

artic

ipat

e w

ithin

sco

pe o

f th

e Pr

ovin

cial

Mun

icip

al In

fras

truc

ture

Tas

kTe

am (P

MIT

T)•

Coo

rdin

atio

n be

twee

n al

l sec

tor

depa

rtm

ents

•Sc

hedu

led

Mee

tings

ºRe

gula

r pr

ogre

ss m

eetin

gs w

ith P

MU

s (c

haire

d by

PM

U m

anag

er)

ºRe

port

bac

k m

onth

ly m

eetin

gs w

ith t

he re

pres

enta

tive

of t

he N

atio

nal M

IG U

nit,

Pro

vinc

ial

Prog

ram

me

Man

agem

ent

Uni

t (P

PMU

), th

e PM

U m

anag

ers

and

Sect

or d

epar

tmen

ts•

Qua

rter

ly w

orks

hops

with

the

rep

rese

ntat

ive

of t

he N

atio

nal M

IG U

nit.

•M

inut

es o

f m

eetin

gs

1 2

12


MU

NIC

IPA

L SP

HER

E –

Incl

ud

ing

Pro

ject

Man

agem

ent

Un

its

(PM

Us)

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Mon

itorin

g an

d Ev

alua

tion

Cen

tral

to

the

role

of

prov

ince

s is

the

bui

ldin

g of

inst

itutio

nal c

apac

ity o

f th

e m

unic

ipal

ities

to

ensu

reth

e ef

fect

ive

deliv

ery

of m

unic

ipal

infr

astr

uctu

re.

Fin

anci

al m

anag

emen

t:•

Prov

inci

al t

reas

urie

s m

ust

mon

itor

mun

icip

al c

apita

l bud

gets

, and

the

repo

rtin

g on

exp

endi

ture

,w

hile

eac

h pr

ovin

cial

sec

tor

depa

rtm

ent

will

be

expe

cted

to

fulfi

ll se

ctor

al m

onito

ring

role

.•

Mon

itorin

g th

e fin

anci

al s

tatu

s of

mun

icip

aliti

es t

hrou

gh P

roje

ct V

iabi

lity

•M

onito

r co

mpl

ianc

e w

ith D

ORA

fra

mew

ork

Perf

orm

ance

:•

Proj

ects

reg

iste

red

only

whe

n in

com

plia

nce

with

MIG

crit

eria

.•

Prog

ress

mee

tings

with

PM

Us

in t

erm

s of

cas

h flo

ws,

KPI

s, e

tc•

Mon

itor

prog

ram

me

perf

orm

ance

rep

orts

(DO

RA r

epor

ts, M

IG m

onth

ly r

epor

ts, M

IG q

uart

erly

repo

rts,

labo

ur in

tens

ive

repo

rts,

O&

M r

epor

ts)

whi

ch w

ould

incl

ude

som

e of

the

fol

low

ing

indi

cato

rs:

ºM

onth

ly c

ashf

low

per

form

ance

man

agem

ent

ºA

chie

vem

ent

of M

IG K

PIs.

ºA

chie

vem

ent

of L

IC K

PIs.

ºBi

-ann

ual r

epor

tsº

O&

M b

udge

tary

con

stra

ints

•M

onit

or p

erfo

rman

ce o

f m

unic

ipal

itie

s in

ter

ms

of;

expe

ndit

ure,

the

DO

RA c

ross

-cut

ting

cond

ition

s•

Prog

ress

on

rem

oval

of

back

logs

Ad

min

istr

atio

n /

Leg

al C

om

plia

nce

:•

Lega

l agr

eem

ent

com

plia

nce

by im

plem

entin

g co

ntro

l mec

hani

sms

and

guid

elin

esº

Proc

urem

ent

proc

edur

esº

MO

A c

ondi

tions

in a

lignm

ent

with

gra

nt c

ondi

tions

•U

pdat

e an

d m

aint

ain

nati

onal

dat

a in

form

atio

n sy

stem

at

prov

inci

al a

nd m

unic

ipal

lev

el.

Exte

nd

ed f

un

ctio

ns:

•En

sure

adh

eren

ce t

o th

e la

bour

-inte

nsiv

e co

nstr

uctio

n m

etho

ds in

ter

ms

of t

he E

xpan

ded

Publ

icW

orks

Pro

gram

me

(EPW

P) g

uide

lines

agr

eed

betw

een

Dep

artm

ent

of P

ublic

Wor

ks, N

atio

nal

Trea

sury

and

SA

LGA

, for

at

leas

t lo

w-v

olum

e ro

ads,

sid

ewal

ks, s

torm

-wat

er d

rain

age,

tre

nchi

nget

c.•

Ensu

re t

hat

Labo

ur In

tens

ive

Proj

ects

(EPW

P) c

an b

e di

stin

guis

hed

from

non

- La

bour

Inte

nsiv

ePr

ojec

ts (E

PWP)

.•

Mon

itor

capa

city

con

stra

ints

/ ga

ps•

Mo

nit

or

the

ou

tpu

ts o

f th

e m

un

icip

al o

per

atio

n a

nd

mai

nte

nan

ce p

rog

ram

mes

•M

onito

r th

e ad

here

nce

of O

ccup

atio

nal H

ealth

and

Saf

ety

plan

s•

Proj

ect

impl

emen

tatio

n pr

ogre

ss m

onito

ring

with

site

mee

tings

•Re

gist

er o

f si

te v

isit

repo

rts

•Pr

ojec

t vi

abili

ty a

udit

repo

rts

•M

inut

es o

f mee

tings

, Pro

gres

s re

port

s•

Perf

orm

ance

mon

thly

rep

orts

•Si

te v

isit

repo

rts

•EP

WP

repo

rt•

O&

M r

epor

ts•

OH

&S

plan

s / a

udits

•Si

te v

isit

repo

rts

3

13


MU

NIC

IPA

L SP

HER

E –

Incl

ud

ing

Pro

ject

Man

agem

ent

Un

its

(PM

Us)

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Com

mun

icat

ion

•M

IG a

war

enes

s ca

mpa

igns

at

mun

icip

al le

vel,

orie

ntat

ion

wor

ksho

ps, t

echn

ical

wor

ksho

ps e

tc•

MIG

bro

chur

es, h

ando

uts

new

slet

ters

etc

•M

edia

Impl

emen

tatio

n aw

aren

ess

artic

les,

pre

ss r

elea

ses

etc

•M

aint

ain

a ph

otog

raph

ic d

ata

base

of

proj

ects

and

eve

nts

•In

put

for

MIG

web

site

•M

edia

mat

eria

l•

Web

site

4

Cap

acity

Bui

ldin

g / t

echn

ical

sup

port

•Pr

omot

ing

the

deve

lopm

ent

of lo

cal g

over

nmen

t ca

paci

ty t

o en

able

mun

icip

aliti

es t

o pe

rfor

mth

eir

MIG

fun

ctio

n.•

Faci

litat

e th

e bu

ildin

g of

inst

itutio

nal c

apac

ity in

ter

ms

of:

ºPr

ojec

t m

anag

emen

tº

Infr

astr

uctu

re in

vest

men

t pl

anni

ngº

Fina

ncia

l man

agem

ent

of c

apita

l bud

gets

ºPr

ocur

emen

t pr

oced

ures

(Com

plia

nce

with

CID

B re

gist

ratio

n co

nditi

ons)

ºLe

gal /

con

trac

tual

ºO

H&

S re

quire

men

tsº

Labo

ur-In

tens

ive

desi

gn a

nd m

etho

dolo

gyº

Ass

et M

anag

emen

tº

MIS

dat

a ba

se -

ope

ratio

n an

d m

aint

enan

ceº

MIG

adm

inis

trat

ion

and

repo

rtin

g sy

stem

sº

mpa

ct a

sses

smen

ts•

Prov

ide

GIS

sys

tem

s su

ppor

t to

the

pla

nnin

g pr

oces

s as

wel

l as

the

in t

he d

evel

opm

ent

of a

nef

ficie

nt a

nd s

usta

inab

le a

sset

man

agem

ent

prog

ram

me.

•Fa

cilit

ate

the

deve

lopm

ent

of m

unic

ipal

Occ

upat

iona

l Hea

lth a

nd S

afet

y pl

ans

not

only

in t

erm

sof

pro

ject

impl

emen

tatio

n bu

t al

so w

ith r

espe

ct t

o op

erat

ion

and

mai

nten

ance

pro

cedu

res.

•Tr

aini

ng s

ched

ules

•G

IS d

atab

ase

•O

H&

S re

port

s

5

Inte

rven

tion

All

natio

nal d

epar

tmen

ts a

nd t

heir

prov

inci

al c

ount

erpa

rts

reta

in t

heir

polic

y m

akin

g an

d re

gula

tory

func

tions

whi

ch c

over

the

ful

l ran

ge o

f m

unic

ipal

act

ivity

: go

vern

ance

, ad

min

istr

atio

n, p

lann

ing,

proj

ects

and

ope

ratio

ns.

Furt

herm

ore,

the

dep

artm

ents

and

pro

vinc

es r

etai

n th

eir

cons

titut

iona

lrig

hts

to in

terv

ene

dire

ctly

in t

he a

ffai

rs o

f m

unic

ipal

ities

.

The

Mun

icip

al S

yste

ms

Act

als

o st

ates

the

fol

low

ing:

The

MEC

for

loca

l gov

ernm

ent

in a

pro

vinc

em

ust

esta

blis

h m

echa

nism

s, p

roce

sses

and

pro

cedu

res

in t

erm

s of

s 1

55 (6

) of

the

Con

stitu

tion

to:

•M

onito

r m

unic

ipal

ities

in t

he p

rovi

nce

in m

anag

ing

thei

r ow

n af

fairs

, exe

rcis

ing

thei

r po

wer

san

d pe

rfor

min

g th

eir

func

tions

•M

onito

r th

e de

velo

pmen

t of

loca

l gov

ernm

ent

capa

city

in t

he p

rovi

nce.

•A

sses

s th

e su

ppor

t ne

eded

by

mun

icip

aliti

es t

o st

reng

then

the

ir ca

paci

ty t

o m

anag

e th

eir

own

affa

irs, e

xerc

ise

thei

r po

wer

s an

d pe

rfor

m t

heir

func

tions

.

With

the

abo

ve in

min

d, in

terv

entio

n w

ould

be

requ

ired

in t

he f

ollo

win

g ci

rcum

stan

ces:

•N

on p

erfo

rman

ce o

f m

unic

ipal

ities

•N

on-c

ompl

ianc

e w

ith M

IG c

ondi

tions

and

cro

sscu

ttin

g co

nditi

ons

as d

etai

led

in s

ectio

n 8

ofM

IG p

olic

y fr

amew

ork

•N

on-c

ompl

ianc

e: p

roje

ct s

cope

, mism

anag

emen

t, m

isapp

ropr

iatio

n of

fund

s, im

prop

er p

rocu

rem

ent

proc

edur

es, w

ith r

epor

ting

requ

irem

ents

etc

Ref

eren

ce:

The

Con

stitu

tion

of t

he R

epub

lic o

f So

uth

Afr

ica.

Sec

tion

139,

sec

tion

154

(1),

sect

ion

155

(6) a

nd s

ectio

n 15

5 (7

).

Refe

renc

e w

as a

lso

mad

e to

the

Mun

icip

alSy

stem

s A

ct -

sect

ion

105

(1)(a

) and

sec

tion

105

(1) (

b)&

(c)

6

14


NA

TIO

NA

L SP

HER

E

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Ove

rarc

hing

dp

lg o

utpu

ts•

Exer

cise

s fin

anci

al a

ccou

ntab

ility

for

the

MIG

pro

gram

me.

•A

dmin

istr

atio

n of

gra

nt t

rans

fers

.•

Sett

ing

up o

f th

e re

stru

ctur

ed M

ITT,

cha

iring

the

MIT

T an

d its

tec

hnic

al c

omm

ittee

(MIT

3) a

ndpr

ovid

ing

them

with

the

sec

reta

riat

func

tion.

•Se

ttin

g up

the

MIG

Uni

t•

Com

pile

an

annu

al r

epor

t to

par

liam

ent

on t

he M

IG p

rogr

amm

e.•

Mon

itor

perf

orm

ance

in r

espe

ct o

f ge

neric

con

ditio

ns.

•Re

spon

sibl

e fo

r m

onito

ring

the

cros

s-cu

ttin

g co

nditi

ons

DEP

AR

TMEN

T O

F PR

OV

INC

IAL

AN

D L

OC

AL

GO

VER

NM

ENT

Prim

ary

func

tions

Adm

inis

terin

g th

e us

e of

MIG

fun

ds (

ensu

ring

that

the

fun

ds a

re p

rope

rly a

lloca

ted

and

spen

t on

appr

opria

te p

roje

cts)

. Thi

s ac

tivity

rel

ates

onl

y to

the

way

pro

ject

s ar

e im

plem

ente

d an

d im

plie

s th

atna

tion

al a

nd p

rovi

ncia

l go

vern

men

t de

part

men

ts r

etai

n th

eir

norm

al r

espo

nsib

iliti

es f

or p

olic

y,re

gula

tion

and

capa

city

bui

ldin

g re

latin

g to

mun

icip

al g

over

nanc

e, a

dmin

istr

atio

n, p

lann

ing

and

oper

atio

ns a

ctiv

ities

. Fun

ctio

ns in

clud

e th

e fo

llow

ing:

•Im

plem

entin

g po

licy

rela

ting

to in

fras

truc

ture

del

iver

y;•

Sett

ing

up a

the

MIG

nat

iona

l fun

d ad

min

istr

atio

n sy

stem

, inc

ludi

ng m

onito

ring

arra

ngem

ents

;•

Ensu

ring

the

esta

blis

hmen

t of

pro

ject

man

agem

ent

units

in s

elec

ted

mun

icip

aliti

es•

Ope

ratin

g th

e na

tiona

l MIG

info

rmat

ion

syst

em;

•M

onito

ring

the

use

of M

IG f

unds

;•

Aud

iting

the

loca

l pro

gram

mes

to

ensu

re c

ompl

ianc

e;•

Ensu

ring

that

eva

luat

ion

of lo

cal p

rogr

amm

es t

akes

pla

ce; a

nd•

Prep

arin

g re

port

s to

MIT

T an

d to

pro

vinc

ial a

nd n

atio

nal g

over

nmen

t de

part

men

ts.

NA

TIO

NA

L M

IG U

NIT

Ove

rall

func

tions

All

natio

nal d

epar

tmen

ts a

nd t

heir

prov

inci

al c

ount

erpa

rts

reta

in t

heir

polic

y m

akin

g an

d re

gula

tory

func

tions

whi

ch c

over

the

ful

l ran

ge o

f m

unic

ipal

act

ivity

: go

vern

ance

, ad

min

istr

atio

n, p

lann

ing,

proj

ects

and

ope

ratio

ns.

Furt

herm

ore,

the

dep

artm

ents

and

pro

vinc

es r

etai

n th

eir

cons

titut

iona

lrig

hts

to in

terv

ene

dire

ctly

in t

he a

ffai

rs o

f m

unic

ipal

ities

. How

ever

, the

impo

rtan

ce o

f co

-ord

inat

ing

such

act

ivity

, with

the

obj

ectiv

e of

cre

atin

g a

com

mon

app

roac

h to

loca

l gov

ernm

ent,

is r

ecog

nise

d.Th

e M

unic

ipal

Infr

astr

uctu

re T

ask

Team

(M

ITT)

has

the

refo

re b

een

esta

blis

hed

and

assi

gned

the

seco

-ord

inat

ing

func

tions

.

The

MIT

T w

ill h

ave

the

follo

win

g ov

eral

l fun

ctio

ns:

•To

rev

iew

mun

icip

al in

fras

truc

ture

pol

icy

to e

nsur

e ef

ficie

ncy,

eff

ectiv

enes

s an

d co

nsis

tenc

y in

th

e de

liver

y of

infr

astr

uctu

re b

y m

unic

ipal

ities

;•

To m

onito

r pr

ogre

ss a

nd u

nblo

ck a

ny c

halle

nges

tha

t m

ay e

mer

ge in

the

del

iver

y of

ser

vice

s;

and

•To

mak

e de

cisi

ons

on t

he a

bove

.

MU

NIC

IPA

L IN

FRA

STR

UC

TUR

E TA

SK T

EAM

(M

ITT)

15


NA

TIO

NA

L SP

HER

E

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Ove

rall

func

tions

The

MIT

T w

ill b

e su

ppor

ted

by t

he t

echn

ical

MIT

T, w

hich

is r

efer

red

to a

s M

IT3.

Thi

s w

ill b

e fo

rmed

from

the

sam

e de

part

men

ts a

s th

e M

ITT,

with

repr

esen

tativ

es a

t Chi

ef D

irect

or le

vel o

r the

ir m

anda

ted

alte

rnat

es. S

ALG

A a

nd t

he n

atio

nal M

IG p

rogr

amm

e m

anag

er w

ill a

lso

serv

e on

the

tea

m.

The

MIT

3 w

ill r

epor

t di

rect

ly t

o th

e M

ITT

and

will

hav

e th

e fo

llow

ing

resp

onsi

bilit

ies:

•En

sure

tha

t th

e M

ITT

agen

da f

ocus

es o

n th

e se

ctor

al p

riorit

ies;

•D

eter

min

e se

ctor

al p

riorit

ies,

whi

ch a

re li

nked

, to

Dep

artm

enta

l obj

ectiv

es;

•Fa

cilit

ate

impl

emen

tatio

n of

the

Mun

icip

al In

fras

truc

ture

Gra

nt (M

IG) p

olic

y;•

Prom

ote

finan

cial

, tec

hnic

al, s

ocia

l and

env

ironm

enta

l sus

tain

abili

ty o

f mun

icip

al s

ervi

ces

thro

ugh

infr

astr

uctu

re p

rogr

amm

es.

•M

onito

r an

d en

sure

impl

emen

tatio

n of

MIG

;•

Ass

ess

and

mon

itor

the

prog

ress

mad

e by

Dep

artm

ents

in im

plem

entin

g th

e de

cisi

ons

take

nat

the

MIT

T m

eetin

gs;

•En

sure

tha

t su

ffic

ient

info

rmat

ion

need

ed f

or a

dec

isio

n is

col

lect

ed;

•O

vers

ee t

he im

plem

enta

tion

of t

he p

ilot

proj

ects

;•

Faci

litat

e th

e es

tabl

ishm

ent

of t

he M

IG u

nit;

•C

oord

inat

e th

e im

plem

enta

tion

of t

he M

IG;

•D

raft

pol

icy

amen

dmen

ts a

nd o

ther

exp

ert

advi

se t

o th

e M

ITT;

•C

oord

inat

e th

e re

view

s of

the

MIIF

doc

umen

t;•

Ove

rsee

the

wor

k of

Wor

king

Com

mitt

ees

•C

omm

issi

on s

tudi

es o

n in

fras

truc

ture

.•

Coo

rdin

ate

impa

ct s

tudi

es o

n th

e M

IG.

•Re

view

and

cor

rect

blo

ckag

es in

pro

cess

.•

Ensu

re p

rope

r co

-ord

inat

ion

betw

een

sect

or d

epar

tmen

ts.

•Re

view

reg

ular

rep

orts

fro

m m

unic

ipal

ities

and

PM

U’s.

•Re

com

men

d po

licy

chan

ges

to t

he D

G/h

ighe

r co

mm

ittee

.•

Revi

ew S

ecto

r re

port

s.

TEC

HN

ICA

L M

ITT

(MIT

3)

Polic

y re

view

s•

Refle

ct a

nd r

evie

w m

unic

ipal

infr

astr

uctu

re p

olic

y as

and

whe

n re

quire

d;•

Revi

ew e

mer

ging

dev

elop

men

ts e

man

atin

g fr

om o

ther

pro

gram

mes

and

pro

cess

whi

ch h

ave

dire

ct b

earin

g on

mun

icip

al in

fras

truc

ture

del

iver

y e.

g. t

he re

stru

ctur

ing

of e

lect

ricity

dis

trib

utio

nin

dust

ry;

•Re

view

sec

tor

serv

ice

deliv

ery

targ

ets;

•Pr

omot

e fin

anci

al, t

echn

ical

, soc

ial a

nd e

nviro

nmen

tal s

usta

inab

ility

;•

Mak

e po

licy

prop

osal

s to

Cab

inet

;•

Mon

itor

sect

or s

ervi

ce d

eliv

ery

impa

ct;

•A

gree

on

regu

latio

ns, w

here

req

uire

d;•

Prop

ose

scal

ing

dow

n or

bro

aden

ing

the

scop

e of

ser

vice

del

iver

y le

vels

, whe

re r

equi

red;

and

•En

sure

the

ful

film

ent

of c

omm

itmen

ts e

man

atin

g fr

om t

he d

ecis

ions

of

the

Cab

inet

Mak

gotla

,C

lust

ers

and

Loca

l Gov

ernm

ent

Min

Mec

.

16


NA

TIO

NA

L SP

HER

E

Act

ivit

ies

Ou

tpu

tsIn

dic

ato

rs

Nat

iona

l Tre

asur

y (N

T)•

Adm

inis

ters

legi

slat

ion

that

has

impl

icat

ions

for

the

MIG

pro

gram

me,

not

ably

DO

RA.

•In

corp

orat

ion

of M

IG c

ondi

tions

and

tra

nsfe

rs in

to D

ORA

.•

Ensu

re t

hat

mun

icip

aliti

es o

bser

ve a

nd o

pera

te w

ithin

the

mac

roec

onom

ic f

ram

ewor

k dr

iven

by n

atio

nal

•go

vern

men

t.

Dep

artm

ent

of W

ater

Aff

airs

and

Fore

stry

(DW

AF)

•Po

licym

akin

g, in

clud

ing

the

sett

ing

of n

orm

s an

d st

anda

rds

for

wat

er s

ervi

ces

infr

astr

uctu

re.

•Pl

anni

ng o

vers

ight

(reg

iona

l and

wat

er s

ervi

ce d

evel

opm

ent

plan

s).

•M

onito

ring

of w

ater

sec

tor

rela

ted

cond

ition

s an

d pr

ogre

ss in

mee

ting

targ

ets.

•In

itiat

ing

inte

rven

tion

rela

ted

to w

ater

ser

vice

s ac

tiviti

es.

Dep

artm

ent o

f Pub

lic W

orks

(DPW

)•

Coo

rdin

ate

the

Expa

nded

Pub

lic W

orks

Pro

gram

me

•Se

t cr

iteria

rel

ated

to

pove

rty

alle

viat

ion

and

empl

oym

ent

gene

ratio

n.•

Adv

ise

mun

icip

aliti

es o

n in

tens

ive

labo

ur-b

ased

pro

cess

es, s

yste

ms,

tec

hniq

ues

and

appr

oach

es.

•Li

aise

with

mun

icip

aliti

es o

n pr

ocur

emen

t re

form

s.•

Mon

itor

perf

orm

ance

in r

elat

ion

to e

mpl

oym

ent

gene

ratio

n, la

bour

bas

ed t

echn

olog

y an

dSM

ME

invo

lvem

ent.

Dep

artm

ent o

f Min

eral

s an

d En

ergy

(DM

E)•

DM

E's

resp

onsi

bilit

ies

will

rel

ate

initi

ally

to

polic

y de

velo

pmen

t. O

nce

the

Inte

grat

ed N

atio

nal

Elec

trifi

catio

n Pr

ogra

mm

e (IN

EP),

has

been

inco

rpor

ated

into

the

MIG

pro

gram

me

it w

ill u

nder

take

sim

ilar

resp

onsi

bilit

ies

to t

hose

iden

tifie

d fo

r D

WA

F.

Dep

artm

ent

of T

rans

port

(DoT

)•

Polic

y re

latin

g to

mun

icip

al r

oads

and

mun

icip

al t

rans

port

.•

Mon

itorin

g of

the

per

form

ance

of

mun

icip

aliti

es in

the

pro

visi

on o

f ro

ads

and

com

plia

nce

with

cond

ition

s ap

plic

able

to

this

sec

tor.

•En

surin

g th

at f

unds

allo

cate

d to

tra

nspo

rt in

fras

truc

ture

are

pro

perly

spe

nt.

Dep

artm

ent

of H

ousi

ng (D

oH)

•C

oord

inat

ion

of p

olic

y an

d pl

anni

ng o

f ho

usin

g de

velo

pmen

t an

d th

e pr

ovis

ion

of in

fras

truc

ture

thro

ugh

the

MIG

pro

gram

me.

•Sy

nchr

onis

atio

n be

twee

n th

e M

IG p

rogr

amm

e an

d th

e H

ousi

ng F

und.

Dep

artm

ent

of L

abou

r (D

oL)

Trai

ning

of

wor

kers

on

Labo

ur In

tens

ive

Proj

ects

(EPW

P).

Dep

artm

ent o

f Spo

rt a

nd R

ecre

atio

nSo

uth

Afr

ica

(DSR

SA)

•Po

licy

rela

ting

to s

port

s an

d re

crea

tion.

•En

surin

g th

at M

IG f

unds

are

pro

perly

app

lied

to b

uild

ing

asso

ciat

ed in

fras

truc

ture

.•

Mon

itor

cond

ition

s ap

plic

able

to

this

sec

tor.

17


4.Conditions applied to the MIG

The MIG is a conditional grant. The formula is intended to allocate funding in accordance withgovernment’s policy priorities. The utilisation of this funding in accordance with these policy prioritiesand objectives is a function of the conditions imposed on its use by beneficiary municipalities.

4.1 Principles relating to the setting of conditions

Conditions will be applied to ensure that municipalities appropriately address the objectives andparameters of this policy statement. The conditions seek to avoid placing an undue burden ofcompliance on municipalities. Therefore, the number of conditions must not be excessive and it mustbe possible to easily measure performance in relation to the conditions.

The following conditions will be applicable to the MIG Programme:• Division of Revenue Act• Cross-cutting conditions• Sector specific conditions

4.1.1 Division of Revenue Act (DORA)

Refer to the Division of Revenue Act for the current financial.

Refer to the relevant Conditional Grant Frameworks in the DORA:• Municipal Infrastructure Grant (MIG).

4.1.2 Cross-cutting conditions

The following conditions (Section 8.2 of the MIG policy framework document, Concise version – finaldated 5 February 2004) are set as the founding conditions for the MIG programme, which may bevaried from time to time by the Municipal Infrastructure Task Team (MITT). The PMU must ensurecompliance with these conditions:

a) Conformity with IDPs: No MIG funds may be spent outside the framework of a municipality’spre-existing IDP and its approved budget. The IDPs should be based on the provision ofa basic package of services to the poor, appropriate services levels, financial sustainabilityand the existence of adequate organisational capacity.

b) Limitation on operational spending: The MIG grant can only be used for capital investmentand cannot be used to finance operating expenditure other than the prescribed percentagepermitted for the operation of a PMU in applicable municipalities.

c) Restrictions on eligibility: Spending of MIG funds is restricted to those categories ofinfrastructure, beneficiaries and levels of service identified in Section 5 of the MIG Policy.To ensure that eligibility requirements are met a cap on capital spending per householdwill be set and specific requirements may be set for the amount of spending on particulartypes of infrastructure.

18


d) Adequate attention to rehabilitation: The municipality must invest an appropriate

proportion of the funds on rehabilitating existing infrastructure.

e) Pledging of funds to secure loan finance: No ‘pledging’ (the assigning of capital grant

funds to be used to pay off a loan to a particular lending organisation) may be undertaken

with MIG funds.

f) Achievement of specified basic service coverage targets: the attainment of pre-agreed

basic service coverage targets in specific sectors (water and sanitation, for example) to be

achieved by a particular municipality over a three-year period, based on their current

position.

g) Poverty alleviation: It is important for the economic spin-offs of infrastructure delivery to

be maximised. This relates primarily to temporary and permanent job creation arising for

municipal infrastructure investments. This condition will be associated with national

government’s 'Expanded Public Works Programme' (EPWP). The gender provisions of this

programme must be adhered to.

h) Reporting: The recipient municipality has prepared and submitted all monthly reports on

grant utilisation in a prescribed format by a specified time.

i) MIG funds to be allocated in municipal budget: All MIG funds to be spent in any year must

be allocated to specific projects, which must be identified in municipal budgets.

j) Registration of MIG projects (otherwise referred to as project feasibility study): All projects

to be funded with MIG funds, wholly or partially, must have a project registration form

which conforms with requirements of the MIG programme and whichmust be registered

on the national MIG database before the award of contracts for construction commences.

4.1.3 Sector specific conditions

Each sector department (DWAF, DME, DoT and DSRSA) may establish further conditions specific to

their sectors. Such conditions will be included at the discretion of the MITT.

4.1.3(a) Department of Public Works

To adhere to the labour-intensive construction methods in terms of the Expanded Public Works

Programme (EPWP) guidelines agreed between Department of Public Works, National Treasury and

SALGA, for at least low-volume roads, sidewalks, storm-water drainage, trenching etc.

4.1.3(b) Department of Water Affairs and Forestry

(a) The funding is only to be used for the Basic Water Services component of the projects.

Basic water services in this case means basic water supply facilities and/or basic

sanitation facilities as defined in the Strategic Framework for Water Services, approved

by Cabinet September 2003.

19


(b) Projects to be funded must be within the Water Services Development Plan (WSDP) as theSector Component of the IDP.

(c) Projects to be funded must be proven to be viable, feasible, acceptable and sustainablebased on a proper feasibility study.

(d) To ensure sustainable operation and maintenance of the proposed infrastructure theoperating, finance and management arrangements must be in place and committed. (Ifacceptable to the other sectors, this could be a crosscutting condition).

(e) Projects must be implemented in line with the policies as set by the Strategic Frameworkfor Water Services and the legal requirements of the Water Services Act (Act 108 of 1997)as well as the National Water Act (Act 36 of 1998).

4.1.3(c) Department of Transport

The development of road infrastructure to poor households that would create access to trade, localeconomic development and essential services and to promote road safety.

20


5.Communication flow andinteraction procedures

Overall control of the MIG programme can only be exercised effectively if processes and proceduresand proper lines of communication are followed. Essentially, the MIG programme is implemented inthe framework of public service delivery to communities, especially to those who do not have accessto basic services. The White Paper of Transformed Public Services 1997 – or the White Paper of BathoPele seeks an approach which puts pressure on systems, procedures, attitudes and behaviour withinthe Public Service and reorients them in the customer’s favour, an approach which puts the peoplefirst. Communication is a strategic element of service delivery.

5.1 Interaction

5.1.1 Interaction between the National MIG Unit, Provincial ProjectManagement Unit, PMUs and municipalities

• All communication from the National MIG Unit will be via the Provincial Project ManagementUnits as indicated on the institutional management flowchart.

CABINET

MITT Representative Sector Departments

DPLG DWAF DPW DSRSA DoT DoH DNT LG Elec. ESKOM

MIT3 National MIG UnitNational MIG Unit

reporting to Directors within CD

Sector Conditions

Policy and Regulations

PMITT

Regional and ProvincialGrowth Strategies

Eastern Cape

Gauteng

KwaZulu-Natal

Northern Cape

Limpopo

Western Cape

Free State

North West

Mpumalanga

Provincial ProjectManagement Unit

MIG Policy & GuidelinesRegional Growth Strategies

MIG Guidelines & Policy

Local Government

LM

PMU

PMU established atLM with appropriate

capacity

DM LM LM LM

PMU

21


• The National MIG Unit can only communicate directly with the municipalities on financial matters(disbursement of funds, etc), with a copy of the summary of the discussion submitted to theProvincial Programme Management Unit.

5.1.2 Interaction between PMU, municipality and project consultant/s

The PMU and project consultant/s will communicate to each other via the municipality where a PMUis not located within a municipality.

5.2 Meetings

In order for the National MIG Unit to conduct its primary and overall functions (refer to Item 4.3 –responsibilities matrix) and to monitor the compliance of crosscutting and sector specific conditionsas well as progress, the following meetings are envisaged:

5.2.1 Provincial progress meetings

This meeting will be between the National MIG and Provincial Programme Management Unit as wellas the PMUs.

Chairperson : To alternate between the four Senior Managers (dplg)Co-ordinator : dplg delegated officialIntervals : MonthlyDates : Meeting schedule to be provided by National MIG UnitVenue : Provincial Programme Management Unit’s officesAttendance : National MIG Unit, Provincial Programme

Management Units and relevant PMUs.Purpose : To monitor:

• overall progress (financial, project implementation)• compliance of MIG conditions• achievement of specified KPIs• the establishment of PMUs• Labour intensive projects• Nodal municipalities• Special Municipal Infrastructure Fund (SMIF)• Infrastructure categories and funding elements• Three-year development plans (submission & compliance)To discuss:• project registrations, MIS and IT related matters• administrative matters• auditing requirements• policy issues• financial matters• communication• reporting formats / requirements• problems experienced and possible solutions / suggestions

Agenda : To be compiled and distributed before the meeting

22


The National MIG Unit will be responsible to compile, finalise and distribute the minutes of the monthlymeetings within 7 working days after the date of the meeting to all relevant parties. The progressmeeting’s agenda must be distributed to all the relevant parties at least 7 working days before themeeting.

The National MIG Unit will be responsible to compile, finalise and distribute the minutes of the quarterlyworkshop within 22 working days after the date of the workshop to all relevant parties. The quarterlyworkshop’s agenda must be distributed to all relevant parties at least 14 working days before theworkshop.

5.2.3 Ad-hoc meetings

Ad-hoc meetings will be conducted by the National MIG Unit, in conjunction with the ProvincialProgramme Management Unit members, to obtain grass-root level information on specific projectsand / or to intervene / resolve problem areas at Provinces, Municipalities and/or projects.

Chairperson : dplg delegateCo-ordinator : dplg delegateIntervals : QuarterlyDates : Meeting schedule to be provided by National MIG UnitVenue : To be determined (alternating between nine provinces)Attendance : National MIG Unit (Senior Managers) and the nine (9) Provincial

Programme Management Units. Representatives of SectorDepartments could be invited.

Purpose : • Report on progress during previous 3 months• Report on “best practices” / labour intensive projects• Strategic planning between all roleplayers• Provincial feedback on issues / matters that could hamper the

implementation of the programme• Discuss new innovation projects• Information, transformation and way forward• Presentations by private / public sector specialist on key issues• Team building exercise

Agenda : To be compiled and distributed before the meeting by ????

5.2.2 National quarterly workshops

Considerations in arranging meetings:

• Identify the stakeholders that should attend the meetings and send them personalised invitationsto the meetings. Invitations should detail the purpose of the meeting and state a reply date to ensure thatthe organisers of the meeting know the availability of the invited persons.

• Meeting agendas or programmes should be distributed well in advance of the meeting, requesting inputsand comments.

• Presentations should be well prepared.• Indicate a willingness to cooperate with each other at meetings.• Do not openly disagree with team members. Rather acknowledge the contribution, explain the current

situation, view or difficulties, and elevate the discussion to a higher, collaborative, problem-solving discussion.• Meetings are more readily able to achieve their objectives when all attendees receive short, to-the-point

written information for discussion about a week in advance of the meeting.

23


MIG Project Life Cycle

MUNICIPAL INFRASTRUCTURE GRANT (MIG) LIFE CYCLE

MIG projects follow a similar project life cycle with the same requirements during the different stages.Each step is graphically depicted in the project cycle on page??? and described below:

1. PRELIMINARY PHASE

1.1 Project identification

The basis for taking any decisions on infrastructure provision should stem form the IntegratedDevelopment Plans (IDP’s) compiled by municipalities. The IDP should also incorporate a propercommunity participation process and thereby ensure that the true needs of the communitiesare being addressed by the identified projects. The community identifies the need for a serviceand the ward committee reports that to the municipality. The IDP will also form the basis ofalignment between the MIG Programme and other Sector Departments programmes. Themunicipalities must also compile a three-year capital plan (based on the format provided by theDepartment of Treasury), which must be linked to the IDP and municipal budget (operationaland maintenance costs must be included in the budget).

The municipality’s three-year capital plan should include project lists detailing the relative priorityof the different projects as well as the planned implementation periods, details of the level ofservices that will be provided and estimates of the operating expenditure and revenue of allinfrastructure.

The three-year capital plan must be submitted to National Treasury and dplg and must bereviewed on an annual basis by National Government. The Division of Revenue Act requiresthat a municipal Council must approve “a three-year capital plan linked to its IDP and budgetno later than 30 June of each year”.

It is important that municipalities constantly monitor the progress of the implementation oftheir projects, as well as timeously identify and plan for the projects that must be implementedduring the next financial year.

PRELIMINARY PHASE

Project identification (30 days)

Project prioritisation and selection (90 days)

Obtain Council resolution (90 days)

Project registration (at dplg) (30 days)

PRE-IMPLEMENTATION PHASE

Design (60 days)

Tender document and procurement (60 days)

IMPLEMENTATION PHASE

Appoint successful Contractor (Milestone)

MONTHS

1 2 3 4 5 6 7 8 9 10 11 12

24


The average duration for the completion of the preliminary and pre-implementation phases,as indicated in the schedule below, is approximately 12 months. (It could take much longerdepending on the frequencies of Council meetings)

Municipalities must also adhere to the labour intensive construction methods in terms of theEPWP guidelines agreed between the Department of Public Works, National Treasury and SALGA.Municipalities should also support / promote the establishment of Municipal Service Partnershipsthrough the MIG programme.

The three-year capital plans must be submitted to the municipality / District Municipality’sInfrastructure Planning Forum for the prioritisation and selection process.

1.2 Project prioritisation and selection

In terms of the Division of Revenue Act (DORA) [Act 5 of 2004], in certain cases funds areallocated per District Municipal Area and the projects identified in the three year capital plans(IDP’s) of the different Local Municipalities (LM) within the boundaries of a District Municipality(DM) will be the projects to be prioritised. Although there are no prescriptions for the methodin which this should take place, it is recommended that the prioritisation be done at anInfrastructure Planning Forum.

All municipalities in the District Municipal area must be represented on this forum along withrepresentatives from the District Municipality and the Provincial MIG Management Unit (PMMU).

The representatives on the forum must have the delegated authority to take decisions on behalfof the municipality that they represent. This will result in proper streamlining of the projectprioritisation process.

The Infrastructure Planning Forum will have the task of prioritising the proposed projects receivedfrom the different municipalities. The following conditions and criteria must be taken intoaccount in the prioritisation process:

• Approved three year capital plans• Division of Revenue Act (DORA)• MIG cross-cutting conditions• MIG Sector specific conditions• MIG funding windows / criteria• Cost effective regional level infrastructure solutions involving a number of municipalities.

The result of the deliberations of the Infrastructure Planning Forum should be a prioritised listof projects that comply with all the criteria and conditions as mentioned above.

As soon as the prioritised list of projects has been forwarded to the relevant municipalities,resources must be allocated to:• Conduct feasibility studies to determine the sustainability of the proposed projects• Compile the Technical Reports (Water and Sanitation projects only)• Complete the Project Registration Forms on the Management Information System (MIS).Consultants could be appointed on the project by using a roster system.

Once the municipality has captured the Project Registration Form on the MIS, a hard copy ofthe Project Registration Form as well as the necessary Technical Report must be submitted tothe Municipal Project Management Unit (PMU). The PMU will evaluate the Project RegistrationForm and Technical Reports. The PMU will sign off the Project Registration Form on the MIS.A hard copy of the Project Registration Form must be printed and filed. The PMU must immediatelysubmit the Technical Report to DWAF for their evaluation and approval.

25


1.3 Project registration

The Provincial MIG Management Unit (PMMU) will extract the Project Registration Form fromthe MIS, evaluate and verify for compliance with the MIG conditions, three-year capital planas well as targets set for key performance indicators (KPIs). If the information on the ProjectRegistration Form in compliance with the MIG criteria, the PMMU will sign off the form on theMIS.

The National MIG Management Unit (NMMU) will extract the Project Registration Form fromthe MIS and evaluate the project. Any discrepancies, errors and/or queries must immediatelybe forwarded to the PMUs for rectification / clarification. As soon as the Technical Report hasbeen approved by DWAF and submitted to the NMMU the project file with all the relevantinformation and evaluation sheet will be submitted to the Senior Manager MIG (SMM) andSenior Manager Finance (SMF).

The SMM and SMF will evaluate the information and if in compliance with the MIG fundingcriteria, they will sign the Project Registration Form off on the MIS. The NMMU will then forwarda signed Project Registration Letter to the Municipality (PMU).

The Project Registration Form will form the baseline against which the implementation of theproject will be measured / monitored (e.g. financial matters, KPI achievements and scope ofwork).

2. PRE-IMPLEMENTATION PHASE

2.1 Design

In most instances, a Municipality will not have the capacity to undertake the detailed designfor a project.

It is therefore advisable that a consulting engineer be appointed to perform this task.

A municipality should consider the following when appointing a consulting engineer / consultingengineering company:

• It is preferable that only individuals / companies that are registered with SAACE or SABTACObe considered. Members of these organisations are bound by a certain code of conduct,which will provide some assurance of quality / professionalism to the municipality.

• The appointment should be in terms of the standard contracts, which can be obtained,from the Department of Public Works or SAACE.

The Municipality must appoint a consulting engineer from their roster system to ensure thatan equitable spread of work is achieved between the different companies. The consultingengineer’s information must be captured on the MIS (Register Consultant Form).

The consulting engineer must identify different design alternatives that can be used for theproject and will advise the municipality on labour-based processes, systems, techniques andapproaches after consultation with all the relevant Sector Departments. The municipality mustendorse the design alternative selected as the operation and maintenance costs have to becarried by the municipality for the duration of the project’s lifetime.

After the municipality has evaluated the design alternative selected, it will be endorsed if itcomplies with the MIG criteria. The consulting engineer will thereafter proceed to complete allthe necessary surveys as well as the preliminary design report. The municipality will evaluateand verify the preliminary design report and should any amendments be required, the municipalitywill refer the design report back to the consulting engineer. Once the municipality is satisfiedwith the preliminary design report, it must be endorsed as approved.

26


The consulting engineer may now proceed to complete the detail design for the project basedupon the approved preliminary design report.

2.2 Tender document and procurement

The schedule of quantities and tender document is based upon the final design for the project.The consulting engineer must ensure that the prescribed preferential procurement proceduresthat will be used for the evaluation of tenders be clearly stipulated in the tender document.

The tender may now be advertised in regional newspapers. The normal tender period isapproximately one (1) month and a site inspection will normally be held so that prospectivecontractors can familiarise themselves with the site and project conditions / requirements. Afterthe closing of tenders the consulting engineer will evaluate the tenders received and compilea tender report with their recommendations. The tender report will be submitted to themunicipality for their evaluation and endorsement.

3. IMPLEMENTATION PHASE

3.1 Construction

After the tender report has been approved, the municipality can appoint the successful bidder.This contractor’s information must be captured on the MIS (Registered Contractor Form). Thecontractor can then commence with construction of the project in terms of the contractdocument and construction drawings issued. The consulting engineer will represent themunicipality during this period and supervise the work carried out by the contractor. However,the contractor will be responsible for the quality and correctness of the work preformed in allcases.

During the construction period of a project, it is important that key performance indicatorsincluded in the Project Registration Form are carefully monitored.

For this purpose, it is important that the following MIS forms be completed / updated by theconsulting engineer on a monthly basis:

• Request for payment (design and construction phases)• Physical completion report

These MIS forms must be submitted to the PMU for reporting purposes.

Once the contractor has successfully completed the contract according to the prescribed contractconditions, technical specifications and standards the consulting engineer will issue a physicalcompletion certificate. This information must be captured on the MIS (physical completion reportform).

4. Operation and maintenance

During the Defects Liability period (approximately 12 months after the completion of the contract)the contractor will be responsible to rectify / repair / reconstruct any defects that may occur on thecontract. At the end of the Defects Liability period, the consulting engineer will release all the balanceof the contractor’s retention money. This information must be captured on the MIS (request forpayment (retention)).

The last stage of the MIG project life cycle, the operation and maintenance of the infrastructureconstructed is also the most costly one. Municipalities must carefully consider these costs and ensurethat adequate funds are budgeted for personnel, materials and equipment in order to operate andmaintain the infrastructure created and to provide a sustainable service.

27


Preliminary project phase

Municipal Infrastructure Grant (MIG) Project Life Cycle

Project Identification

ProjectPrioritisationand Selection

Inputs andassistance by

Sector Departments

Project List Generated

Project lists submittedto Municipality

(Infrastructure PlanningForum)

Project evaluated againstavailable funds, MIG conditionsand Three-year capital plans

by Municipal Council

Final list of projects compiledand Consulting Engineers

allocated by Municipality usingroster system

Municipality (PMU)activates Project

Registration on website

ProjectRegistration

Form

Notes

Policy-making, including

the setting of norms and

standards for basic service

infrastructure.

Ensuring that IDP give

priority to basic needs in

communities and promote

the social and economic

development of

communities.

Planning oversight

(regional and service

development plans)

and service delivery

targets.

Identify needsthrough community

participation

Explore alternativefunding options

Municipalitycompiles Three-year

capital plan

Municipal IntegrateDevelopment Plan

Municipality (PMU) evaluatesProject Registration Form and

Technical Report

Changes requested Changes requested

Project Registration Formcompleted on line and a hard copysubmitted to Municipality (PMU)

Technical report completedand hard copy submitted to

Municipality (PMU)

Project registration

28


Preliminary project phase


Notes

Municipality (PMU) signsProject RegistrationForm off on MIS and

submit Technical Reportto DWAF

Technical Report for “Wet”projects submitted toDWAF for approval

Senior Manager MIG (SMM)and Senior Manager Finance

(SMF) sign the ProjectRegistration Form off on MISand signed registration lettersend to Municipality (PMU)

Technical Reportreferred back to

Municipality(PMU)

DWAF evalutestechnical reports

PMMU evaluatesproject

PMMU evaluatesproject


Technical Report

Cha

nges

req

uest

ed

on previous page


Technical Report

on previous page

• KPI / DORA reporting begins• Access to MIG funds through fund administration system

Set criteria related to

proverty aleviation and

employment.

Ensure that Municipalities

operate within the macro

economic framework

driven by National

Government.

Coordinate and

synchronise interactions

between MIG Programme

and other programmes (i.e.

Housing Fund).

Pre-Implementation

• Monthly reporting begins

Project registered

29


Pre-Implementation


Notes

Project Consultantappointed

by Municipality

Advise Municipalities

on intensive labour

based processes,

systems, techniques

and approaches.

Liaise with Municipalities

on procurement reforms.

Provide assistance

and advice with

regard to technical

matters and designs /

methods in order to

provide sustainable

infrastructure / services.

Design

Design alternativesidentifies

(Labour intensiveconstruction)

Design alternativesevaluated

and endorsed byMunicipality

Preliminary designcompleted and

submitted toMunicipality for

evaluation

Municipalityevaluates design

report

Municipalitycomplies with

MIG project conditions

Preliminary design reportreferred back to consultant

and emendedDesign report

endorsedby Municipality

Design Reportapproved byMunicipality

Detailed DesignCompleted

Schedule of quantitiesand tender document

compiled

Tender advertisement, siteinspection, evaluation of

tenders, tender report

• Register Consultant Form• Request for Payment (Design Phase) Form

30


Pre-Implementation


Notes

Tender report endorsedby Municipality

Tender Report submittedto Municipality for

evaluation

Tender reportapproved byMunicipality

Implementation

Contractor appointed byMunicipality, construction

drawings issued by Engineer

Project Constructed

Project Completed

Implementation

Defects liability period

Physical Completioncertificate issued

Ongoing operation andmaintenance by Municipality

Operation and maintenance

Construction

• Register Contractor Form• Request for payment (Construction Phase) Form• Physical Completion Report Form• Request for Payment (Retention) Form

• Site visit• Ending of MIG funding

Monitoring progress to meet sectordepartments targets.

Initiate interventions related toservice provision activities.

Monitor employment generation,labour based technology and SMMEinvolvement.

Monitor compliance of sector specificconditions.

Ensure that MIG funds are properlyapplied.

Assist with the capacity building ofthe PMUs.

Monitor operations and maintenaceactivities conducted by theMunicipality.

Initiate interventions related tooperations and maintenanceactivities.

Tender report referred back

Tender report referredback to consultant and

amended Municipalityevaluates tender

report

31


6. Generic reporting mechanisms,formats and procedures

Municipalities are required to report monthly on progress, draw downs and DORA as well as quarterlyon their key performance indicators. Reports must be submitted as listed in the table below in orderto achieve the required milestone dates.

Municipalitiesto PMU

PMU to PMMUPMMU toNMMU

NMMU to EMMEMM to

dplg: CFO /Financial Dept.

dplg: CFO toTreasury

dplg to SectorDepartments

Monthly progress report 3rd 6th 10th 20th

KPI report 3rd 6th 10th 20th 25th

DORA 3rd 6th 10th 16th 18th 20th

Draw downs 3rd 6th 10th 12th 15th

Milestone dates per month

Note: The KPI Report must be submitted on a quarterly basis therefore the dates above is relevantto the month in which the report is due.

6.1 Division of Revenue Act (DORA) – monthly reporting

The duties of the transferring national officer and receiving officers (Municipal Managers of recipientmunicipalities) are clearly stipulated in the yearly DORA.

The monthly DORA report would reflect on the following items:

• Amount of funds transferred / received by a municipality.• Amount of funds delayed or withheld from any municipality and the reasons for such a delay

or withholding.• Actual expenditure incurred by the municipality in respect of its allocation.• Extent of compliance by a municipality with the conditions of an allocation and the Division of

Revenue Act.• Explanation for any material (supplier) problems experienced or variations effected by a

municipality and a summary of the steps taken to deal with such problems or the effect of suchvariations.

• Other issues as the National Treasury may determine.

The procedures and timeframes for the submission of the monthly DORA reports for the variousspheres of government are as follows:

6.1.1 Recipient municipalities

The PMU of the recipient municipality shall develop, verify, reconcile, check and submit the hard copyof the monthly DORA report and the updated electronic format (Excel spreadsheet) and a signed hardcopy of the DORA report to the relevant Municipal Manager no later than the 3rd of each month.

6.1.2 PMUs

The PMU will verify and reconcile the monthly DORA reports received from the Municipal Managers.Any discrepancies, errors and/or queries must immediately be forwarded to the Municipal Manager/sfor rectification/clarification. A consolidated municipal DORA report will be compiled by the PMU andsubmitted to the PMU manager for approval.

32


Any discrepancies, errors and/or queries must immediately be forwarded to the Municipal Managersfor rectification/clarification.

The PMU manager shall submit the updated electronic format (Excel spreadsheet) and a signed hardcopy of the DORA report to the PPMU no later than the 6th of each month.

6.1.3 Provincial Programme Management Unit (PPMU)

PPMU will verify and reconcile the monthly DORA reports received from the various municipalities inthe province. Any discrepancies, errors and/or queries must immediately be forwarded to the PMUmanager/s for rectification/clarification.

A consolidated provincial DORA report will be compiled by the PPMU and submitted to the ProvincialProgramme Management Unit and submitted to the PPM for approval.

The PPMU shall submit the updated electronic format (Excel spreadsheet) and a signed hard copy ofthe DORA report to the National MIG Unit no later than the 10th of each month.

The PPMU must also ensure that an updated electronic format (Excel spreadsheet) and a signed hardcopy of the DORA report for the provincial project management capacity for MIG be submitted tothe National MIG Unit no later than the 10th of each month.

Note: The Provincial Programme Managers should process reports from the municipalities as andwhen they are received.

6.1.4 National MIG Unit

The National MIG Unit will verify and reconcile the monthly DORA reports received from the nine (9)PPMUs. The monthly DORA reports would be evaluated and verified utilising the following documentation/ information:

• Provincial DORA and monthly progress reports (current and previous month).• dplg’s BAS system report.

- Any discrepancies, errors and/or queries must immediately be forwarded to the Provincial MIGManagers for rectification/clarification.

- A consolidated national DORA report will be compiled by the National MIG Unit and submittedto the Senior Manager Finance (SMF) for approval.

- The SMF shall submit an updated electronic format (Excel spreadsheet) and a signed hard copyof the following DORA reports to the Executive Manager MIG (EMM) no later than the 17th ofeach month:

• Municipal Infrastructure Grant (MIG)

The EMM shall submit the electronic format (Excel spreadsheet) and a signed copy of the consolidatednational DORA reports to the dplg – Chief Financial Officer no later than the 18th of each month.

6.1.5 dplg – Chief Financial Officer

The dplg – Chief Financial Officer shall submit the updated electronic format (Excel spreadsheet) anda signed hard copy of the following DORA reports to National Treasury no later than the 20th of eachmonth:• Municipal Infrastructure Grant (MIG)

33


6.2 Monthly Progress Report

The National MIG Unit must compile and submit a comprehensive Monthly Progress Report to theExecutive Manager MIG (EMM) no later than the 20th of each month.

The Monthly Progress Report will reflect on the following issues:

Section 1 : Executive Summary • Introduction• Financial status• Project implementation status• Programme evaluation- Nodal Municipalities- Labour intensive projects- Special Municipal Infrastructure Fund (SMIF)• Problem areas and remedial action plans by the National and

Provincial MIG Management Units.

Section 2 : Detailed reports • Schedule of work• Status of Programme (National perspective)- Project status- Financial status• National cashflow• Provincial cashflows

Section 3 : Site visit reports

Section 4 : Contact details

The procedures and timeframes for the submission of the Monthly Progress Report for the variousspheres of government are as follows:


The Municipal Manager must obtain the completed relevant MIS project forms from the projectconsultants and submit a signed hard copy of the documentation to the PMU no later than the 3rd

of each month.

6.2.2 PPMUs

The PMU must obtain all the updated MIS project forms from the municipalities and capture theinformation on the MIS.

The PMU manager must evaluate and verify the completeness/correctness of data / information(financial and KPIs) captured on the MIS. Any discrepancies, errors and / or queries must immediatelybe forwarded to the Municipal Manager for rectification / clarification.

A consolidated PMU monthly report must be printed from the MIS and a copy, signed by the relevantMunicipal Manager / authority, will be submitted to the PPMU no later than the 6th of each month.

34


6.2.3 Provincial Programme Management Unit (PPMU)

The PPMU will generate a consolidated provincial monthly report from the MIS. The PPMU mustevaluate and verify this report with the following:

• Monthly report received from the PMUs.• Previous consolidated provincial monthly report.• Previous DORA report received from the PMUs.• Previous consolidated DORA report.

Any discrepancies, errors and / or queries must immediately be forwarded to the PPMU’s for rectification/ clarification.

Once the Provincial MIG Manager has consolidated the provincial monthly report, the National MIGUnit must be notified by no later than the 10th of each month.


The National MIG Unit must generate the consolidated national monthly report from the MIS oncethe Provincial MIG Manager has submitted the consolidated provincial monthly report.

The National MIG Unit must evaluate and verify this report with the following:

• Previous consolidated national monthly report.• Previous consolidated national DORA report.• The departmental BAS system.

Any discrepancies, errors and / or queries must immediately be forwarded to the Provincial MIG Unitfor rectification / clarification.

The National MIG Unit must finalise and submit the report to the EMM for processing no later thanthe 20th of each month. Once the report has been signed by the EMM the departmental website willbe updated with the relevant report.

6.3 Quarterly KPI Report

The National MIG Unit must compile and submit a KPI report to the EMM on a quarterly basis. Thisreport will be a consolidated report of the previous quarters' monthly financial Progress Reports andKPI Report.

The EMM will submit the Quarterly KPI Report to the MITT. Once the MITT has approved the report,copies will be produced for distribution to the various PMITTs and relevant sector departments androleplayers.

35


The Quarterly KPI Report will reflect on the following:

Section 1 : Assessment of MIG KPIs • Summary• Funds allocated to infrastructure categories and funding

elements• Implementation in nodal areas• Total financial contributions• Employment opportunities- Women- Youth- Disabled• Number of persons employed• Person days of employment• Training provided per module of training• SMME involvement• Labour intensive projects (EPWP).

Section 2 : Detailed reports • National Report• Provincial Report (nine)

Section 3 : Contact details • Format and contents still to be finalised.

The procedures and timeframes for the submission of the Quarterly KPI Report will be exactly as forthe monthly progress report except for the fact that it will be compiled on a quarterly basis.

6.4 Annual Report

The National MIG Unit will compile, on an annual basis, a report on the achievements of the programmein general over the past financial year. This report will be a consolidated report of:

• The Monthly progress reports.• The Quarterly KPI reports.• The two social and economic impact reports.

36


7. MIG national fundadministration system

The funds for MIG will be appropriated to dplg’s budget and the department remains overall responsiblefor the disbursement of funds to provinces and municipalities.

The multi-year formula based allocation will be calculated to provide funds to all municipalities.

The allocation, which each municipality will receive, is based on the following parameters:• Backlogs in specific services.• Poverty.• Identification of a node.

Once the allocations had been gazetted, the EMM will forward a “Letter of Allocation” to the nineprovinces and recipient municipalities.

The letters of allocation should at least include information on the following:• Overview of the MIG programme.• MIG allocation to municipalities.• Requirements of PMUs business plan.• Special Municipal Infrastructure Fund (SMIF).• Indicative allocations for the remainder of the MTEF period.• Conditions.

The dplg would only transfer funds once the recipient municipality has submitted its signed “Certificateof Acceptance and Compliance” in respect of the MIG.

The recipient municipalities must comply with the following conditions stipulated in the DORAframework:• Prioritise residential infrastructure projects in line with any MIG or sector department’s policies

before the start of the municipal financial year.• The Municipal Council must approve their three-year capital plan linked to its IDP and budget no

later than 30 June 2004. The budget must reflect the operation and maintenance costs forthe three years and beyond.

• District Municipalities must provide detail information by 30 June 2004 on expected transfers tothe local municipalities, as well as any information on projects undertaken directly by the DistrictMunicipalities.

• All committed projects must be prioritised.• Adhere to the labour-intensive construction methods in terms of the Expanded Public Works

Programme (EPWP) guidelines agreed between the Department of Public Works, National Treasuryand SALGA, for at least low-volume roads, sidewalks, stormwater drainage, trenching etc.

• Provide quarterly reports on budget and project implementation.

The funds of the MIG conditional grant would be disbursed as follows:

7.1 Municipal Infrastructure Grant (MIG)

Funds would be disbursed by dplg to recipient municipalities according to a payment schedule. MIGfunds could only be utilised on projects once the projects are registered and signed-off on the MISby a senior MIG manager in conjunction with the SMF.

37



The recipient municipalities must compile and submit the following to the PPMU:

• Cover letter from Municipal Manager.• Certificate of expenditure and revenue signed by the Municipal Manager.• Copies of the proof of payments (1084’s).• Copies of progress payment certificates of contractors.• Copies of professional fee claims of consultants.

These documents must be submitted to the PMU no later than the 3rd of the month.

It is important to note that the request for draw down of funds would occur as per the schedule andactual expenditure and proof of payment (1084’s) must be reported on a monthly basis.

7.1.2 PMUs

The PPMU will receive and verify the information signed by the Municipal Managers. Any discrepancies,errors and/or queries must immediately be forwarded to the Municipal Manager forrectification/clarification. The information must reach the PPMU not later than the 5th of each month.

The PMU manager will receive and verify the information and submit the consolidated draw down,signed by the Municipal Manager, with supporting documentation and submit to the PPMU no laterthan the 6th of each month. The PMU manager must also sign the certificates of expenditure andincome.

Note: If the municipality does not have a PMU, the municipality itself should perform the functionsof a PMU, verify and submit all documentation directly to the PPMU.

38


7.1.3 Provincial MIG Management Unit (PPMU)

The PPMU will verify and reconcile the draw downs received from the various recipient PMUs in theprovince. Any discrepancies, errors and/or queries must immediately be forwarded to the PMU projectmanager/s for rectification/clarification.

A consolidated draw down will be compiled by the PPMU Unit and submitted to the PMM forprocessing. The following documents will be submitted to the National MIG Unit not later than the10th of the month:

• A cover letter from the PPMU with a summary of draw downs received from municipalities.• Certificates of expenditure and revenue must also be signed by the PMM.• Copies of proof of payments (1084’s).• An updated proof of payment control sheet.


The National MIG Unit will receive the consolidated draw down with supporting documentation fromthe PPMU not later than the 10th of the month.The National MIG Unit will then verify and reconcile the information against:• National monthly progress report.• National monthly DORA report.• dplg’s BAS system.• Updated draw down control sheet on MIS.

The National MIG Unit will capture the new information on the MIS hereafter they will compile thefollowing documents for each draw down received and submit it to the SMF, before the 12th of themonth, for approval:

• Transfer payment for MIG memorandum.• Sundry payment advice.• The certificate of expenditure and revenue, as compiled and signed by the municipal manager,

will be attached.

The National MIG Unit will update their proof of payment control sheet and file the copies of theproof of payments received.

The SMF must submit the draw downs to the EMM for approval. After approval these documentationmust be submitted, no later than the 15th of the month, to the dplg - Financial AdministrationDepartment for payment/transfer of funds.

On receipt of proof of transfer of funds from the dplg - Financial Administration Department, theNational MIG Unit will fax the proof of transfer/s to the PPMU as well as recipient municipalities. Thedraw down control sheet on the MIS will also immediately be updated with latest proof of transfersreceived.

7.1.5 Under-spending at municipal level

The National MIG Unit will identify, on an ongoing basis, based on monthly reports, anyvariances/regular/drastic under-expenditure. The following actions will be taken:

• Confirm the variances with the PPMU.• Write to the municipality within 8 working days after the 10th of the month about the variances

explaining the implications thereof and the problems experienced with under-expenditure.• Copy the letter to the PPMU.

39


• Reflect the variances in the monthly Division of Revenue Report.• Write a letter to National Treasury regarding the variances, by the 20th of the month, reflecting

the actions taken (such as delaying or withholding of transfers) to address the under-expenditure.

7.1.6 Control measures for expenditures/transfers

The PPMU transfers funds to municipalities on a monthly drawd own basis.

The Provincial MIG Manager will submit requests for draw downs to the National MIG Unit on the10th of the month where after the National MIG Unit will:

• Assess the expenditure of the municipalities against the transfers.• Inform the municipalities within 8 working days after the 10th of the month about the variances,

explaining the implications thereof and problems experienced with under expenditure.• If a municipality did not spend 50% of the amount previously transferred the amount still available

on their books will be subtracted from their request for draw down.• Should a municipality consistently not spend its funds and this situation persists, transfer/payment

will be withheld until proof of expenditure and an amended payment schedule are received.

7.1.7 Assist municipalities

The National MIG Management Unit will identify municipalities with challenges / problem areas.Meetings will be arranged with all parties / stakeholders involved (PPMU, municipality, consultant,contractor), to discuss action plans in order to resolve problem areas. Feedback / follow-up will be necessary to determine if issues have been addressed successfully.

40


7.1.8 Delaying of payments

The National MIG Unit will recommend delaying of payments to the National Treasury shouldprovinces/municipalities not comply with the Division of Revenue Act.

7.1.9 Withholding of payments

The National Treasury will withhold transfers if the National MIG Unit could provide proof of non-compliance with the Division of Revenue Act.

7.1.10 Non-compliance

Any serious or persistent non-compliance with the Division of Revenue Act constitutes financialmisconduct and dplg would therefore seek national intervention to attend to these incidents. Thisincludes under-expenditure and non-compliances such as late or no submission of reports or information.(Also refer to the Local Government: Municipal Finance Management Act and sections 38, 39, 40and 86 (1) of the Public Finance Management Act).

7.2 Re-allocation of MIG funds

Refer to the relevant Division of Revenue Act.

41


8. MIG Management InformationSystem (MIS)

The MIG Management Information system (MIS) is a comprehensive management tool that providesintegrated management reports on aspects such as progress and exceptions, actual outputs againsttargeted output, finances and cash flow. The system enables the users the management of manydifferent business processes in a consolidated way. The number of different information/data capturingforms on the MIS follows the logical progression of MIG projects through its life cycle.

MIS interfaces directly with the day-to-day operational aspects of each process. It maintains a cohesivedatabase, integrating information from all the business processes required for comprehensiveorganisation management.

MIS provides municipalities with a tool for controlling their own programmes while at the same timeproviding consolidated reporting of financial, progress and performance indicators on a provincialand national scale.

The important benefit with this approach is that only information relevant to the specific phase willbe recorded. Static information from one reporting period to another will also be pre-printed on theforms and the unnecessary capturing of known information will be prevented in this way.

The proposed MIS forms, to be completed by the PMUs/municipalities at certain stages of the projectlife cycle, will be used throughout the project life cycle, are as follows:

8.1 Preliminary phase

The relevant forms are specified in the sections below.

8.1.1 Project Registration Form

The sector departments must participate in the IDP process. The project registration form must becompleted once the municipality and PMU have prioritised the projects to be implemented.This form will be submitted to the National MIG Unit for registration of the project.

The costs involved with the completion of the project registration form, conducting of feasibilitystudies, value engineering and compilation of technical reports, will be for the account of the recipientmunicipalities.

Once the project registration form has been signed-off on the MIS system by the SMM and SMF therecipient municipality will be reimbursed for these costs incurred on projects as well as the projectcost.

The table below details the method to be followed to ensure the proper evaluation, control and filingof a Project Registration form.

42


Evaluation of a project registration form

1. Print replication log from MIS on a daily basis in order to see whether there is any

new project registration forms, additional funding requests or changes.

2. Contact PMU requesting whether project registration form must be evaluated or not.

Await confirmation from PMU before proceeding with evaluation.

3. Print out project registration form from MIS.

4. Create project file.

5. Check status of project on MIS

Check if project is signed-off and authorised at PMU level on MIS

Check if project name and number on file correlate with information on MIS

Check if all necessary fields on project registration form is completed

Check if project description and motivation correlate and if project qualifies for

funding in terms of MIG requirements

Check following fields in particular:

• Breakdown of funds

• Labour Intensive project (EPWP) Yes / No

• Average project wage rate

• Beneficiaries

• Funding (MIG, public and/or private sector)

• Employment generation

o Women

o Youth

o Disabled

• Number of persons employed

• Person days of employment generation

• Planned training activities per module of training

• Operation and maintenance budget

• Outputs and other targets

• Budget control

• Declaration on standard conditions

6. See if the following documentation has been provided by the PMU:

• Council Resolution

• DWAF Technical Report (only for Water, Sanitation and Waste Disposal

projects).

7. If above has not been provided, contact PMU requesting this information. Proceed

with project registration once all of the documentation has been provided.

8. Place project registration form in project file.

9. Submit project file to Secretary for information control and tracking.

10. Secretary submits files to SMM for sign-off purposes on MIS.

43


During evaluation, if found that there is non-compliance to MIG criteria or outstanding information,a letter will be written to the PMU explaining the situation.

This form will be the baseline against which the implementation of the project will be measured (e.g.financial matters, achievement of KPIs and scope of work).

8.2 Pre-implementation phase (design and tender)

8.2.1 Register consultant

This form is to be completed once the municipality has appointed project consultants.

Note: Consultants appointed on Labour Intensive Projects (EPWP) must take note of the specificrequirements according to the SETA NQF qualifications framework for labour-intensive construction,learning guides, learning programmes and assessment instruments.

8.2.2 Request for payment from municipality (design phase)

This form is to be completed at the end of every month during which the project is being designed.

8.3 Implementation phase (construction)

8.3.1 Register contractor

This form is to be completed once the municipality has appointed the successful tenderer, based onthe consultant’s tender evaluation and recommendation.

Note: Contractors appointed on Labour Intensive Projects (EPWP) must take note of the specificrequirements according to the CETA NQF qualifications framework for labour-intensive construction,learning guides, learning programmes and assessment instruments.

8.3.2 Request for payment (construction phase)

This form is to be completed at the end of every month during which the project is under construction(contractor’s progress certificates and/or consultant professional fee claims).

8.3.3 Physical completion report

This form is to be completed after the physical completion certificate has been issued (site handover).

8.3.4 Request for payment (retention)

This form is to be completed when the retention funds of the project become due (expiring of thedefect liability period).

The successful implementation of system depends on quality informationand ownership of the system by its users.

44


9. General filing and backupprocedures

9.1 Backups

This paragraph covers the method to be followed to store backups of computer information.a) A backup shall be made at least once every month of all computers in the office and those in the

personal possession of each staff member, which contain MIG related information.b) Backups shall also be made to the network drive of the dplg at:

Users on 'Pta\Users' (H:)/MIG/Consultants.

9.2 Project Files

The National MIG Unit must ensure that all documentation relevant to the MIG programme be filedin such a manner so as to enable any member of the Unit, to quickly and accurately access any requireddocumentation at any time.

The National MIG Unit must keep record of all the projects registered on the MIS and signed-off bythe SMM in conjunction with the SMF.

For each project a file must be opened on which the following documentation must be filed andupdated on a regular basis:• Project registration form together with supporting documentation.• Correspondence from sector departments such as DWAF, DPW, DME, DoT, DoH, DSRSA etc.• DWAF’s response with the regard to the Technical Report submitted.• Certificate of Compliance (DORA).• General correspondence between the relevant roleplayers.• Operation and maintenance plan furnished by the municipality.• A copy of the signed (by the Municipal Manager) certificate of fulfilment of conditions together

with all relevant / supporting documentation (e.g. Council resolution, agreement betweencommunity and municipality on the service package and payment for services, etc).

• Employment records.• Training records.

9.3 Minutes

The following documentation must be filed per province:• Signed copy of the minutes.• Agenda.• Attendance register.• All relevant documentation received at the meeting.

9.4 Reports

The following reports must be filed:• Monthly progress.• Quarterly KPI.• ISRDP & URP.• Monthly DORA.• Ad-hoc reports.

45


9.5 Financial Administration System

9.5.1 Submission of draw downs

The following documentation must be filed in the Provincial Financial file per month:• Transfer of payment MIG Memorandum.• Sundry payment advice.• Certificate of Expenditure and Revenue (received from PMU).• Proof of transfer of funds.• Draw downs control sheet on the MIS.

9.5.2 Proof of Expenditure (1084’s)

The following documentation must be filed in the provincial 1084’s file per month:• Proof of payment control sheet (received from PMU).• Proof of expenditure.

9.6 Service Level Agreements

The Service Level Agreements between the District Municipalities and Local Municipalities must befiled per province in the Service Level Agreements file.

Municipalities should send letters of acceptance of the MIG conditions on receiving MIG funds.

CONTACT DETAILS: PROVINCIAL DEPARTMENTS

National Department of Provincial Tel: (012) 334 4942

and Local Government Fax: (012) 334 4872

Eastern Cape Department of Housing Tel: (040) 609 5565

and Local Government Fax: (040) 636 4285

Free State Department of Local Tel: (051) 405 5717

Government and Housing Fax: (051) 405 5008

Gauteng Department of Development Tel: (011) 355 5412

Planning and Local Government Fax: (011) 355 5403

KwaZulu-Natal Department of Traditional and Tel: (033) 355 6172

Local Goverment Fax: (033) 355 6547

Limpopo Department of Local Goverment Tel: (015) 295 6851

and Housing Fax: (015) 295 4700

Mpumalanga Deparment of Local Government Tel: (013) 766 6605

Fax: (013) 766 8449

Nothern Cape Department of Housing and Tel: (053) 830 9462

Local Government Fax: (053) 830 9562

North West Depatment of Developmental Tel: (018) 387 3747

Local Goverment and Housing Fax: (018) 387 3745

Western Cape Department of Local Goverment Tel: (021) 483 4191

Fax: (021) 483 3244

national mig management unit programme …. mig operational framework... · national mig management...

Documents