Coordinated service delivery hearings 03 February 2010 P Presented by: Suhail Mohamed

1. Coordinated service delivery hearings 03 February 2010 P Presented by: Suhail Mohamed Paul Berkowitz

2. Research on local government • Municipal ranking on service delivery achievements • Thorough analysis of service delivery backlogs as at 2007 • Service backlog eradication over the period 2001 -2007 • Analysis of population and household migration rends • Identification of geographic areas which share common service delivery difficulties • Identification of star performers as potential models of backlog eradication • Tariff & policy audit • Desktop analysis of all municipalities’ websites and available documents, with recommendations for communication and disclosure • Review of indigent & tariff policy for all municipalities • Analysis of residential water and electricity tariffs • Compilation of a list of best practices in tariff and policy design

3. Research on local government • Municipal governance and financial reporting • Review of the 2006/07 & 2007/08 Auditor-General’s reports on municipal financial reporting • Analysis of budget documents (IDP, SDBIP, annual reports) • Analysis of the new reporting requirements for the MFMA with relevance to current compliance • Educational tool for basic service delivery • Creation of a tool for municipalities and civil society to measure and improve basic service delivery for poor households • The tool focuses on the themes of tariff analysis, basic financial accounting, equitable share and MIG spending, and asset management

4. Local government The state of local government • There are many problems and challenges currently facing local government: • Municipalities face an increasing number of obligations (e.g. asset management, financial reporting, service delivery backlogs) • There is a severe shortage of resources, in the form of human skills, infrastructure and finances, to tackle these challenges • Many municipalities are struggling to fulfill the requirements of literally dozens of different pieces of legislation, departmental guidelines and best practice. • The root of these problems lies in • - a lack of institutional capacity • - poor governance structures • -challenges to communication between spheres of government

5. Local government Examples of problems • Municipal officials do not always comply with both the spirit and the letter of municipal legislation. For example: • Indigent policy often penalises poor households • Tariffs are not designed to maximise revenue collection • There is a lack of communication with constituents • Budget targets and KPIs are not measurable or enforceable • Municipal officials do not always understand the links between their actions (including crucial policy design and implementation) and the measurableoutcomes that are expected of them (e.g. basic service backlog eradication, transparent and accountable local government)

6. Turnkey solution Empowerdex has developed a turnkey solution for municipalities that are battling to fulfill their service delivery mandate and the broader statutory requirements of municipal governance. What does the turnkey solution consist of? - Best-practice manual - Training - Service delivery evaluation and planning - Ongoing support services - Accounting software

7. Software features • CRM • Municipal Billing • Business Intelligence Centre • General Ledger • Supply Chain:

8. Our solution Empowerdex, in collaboration with its partners, has designed a solution that will meet the challenges facing local government. Through a combination of research, training, consulting and proprietary software, the solution will - assist municipal management to draft policies - create a system of excellence for municipalities - provide budgeting solutions that meet service delivery needs - assist municipalities in eradicating service delivery backlogs - provide a training system that continues to evolve

9. THANK YOU Q&A Contact Details: Tel: 011 783 0177 Email: suhailm@empowerdex.com paulb@empowerdex.com