Communal Property Institution Capacity Assessment Tool

Transcription

1 Cmmunal Prperty Institutin Capacity Assessment Tl

2 Intrductin t cmmunal prperty institutins Cmmunal prperty institutins (CPIs) Participants in the land refrm prgramme can hld prperty thrugh different frms f cmmunal prperty institutin (CPI). These include cmmunal prperty assciatins (CPAs), trusts, nn-prfit cmpanies, clse crpratins and cperatives. Fr land refrm prjects cmmunal prperty assciatins and trusts are the mst cmmn frm f entities that hld land. A cmmunal prperty assciatin is a specific legal entity fr hlding restred land and is established by Sectin 8 f the Cmmunal Prperty Assciatins Act N. 28 f Trusts are gverned by the Trust Prperty Cntrl Act N. 57 f In 2013 it was estimated that sme cmmunal prperty assciatins and a similar number f land-hlding trusts had been registered since Ptential The land refrm prgramme transfers assets t the pr. This ught t prvide a pathway ut f pverty fr the cmmunities invlved. But fr this t happen, the land transferred must retain r enhance its prductivity and the institutins that administer the assets must d s effectively and in the interests f their members. Cmmunity private partnerships (CPPs) 2 ffer an pprtunity fr cmmunities t prvide land and find investrs t bring capital and skills t the develpment f the land. This is dne thrugh prperly structured agreements that prvide ne avenue thrugh which land wned by cmmunities can be put t prductive use. Challenges Like mst cmmn prperty institutins, cmmunal prperty institutins must incentivise individuals t wrk in the cmmn interest. T d s they create sufficient authrity t hld the grup tgether and t prtect the grup s rights. Typically they face three challenges: They have limited resurces; there are n incentives t cmply with administrative requirements; and there are n sanctins fr thse wh d nt cmply. Three recurring issues characterise many f these institutins: Financial and ther benefits may fail t emerge quickly enugh fr the cmmunal prperty institutin and its members, whether in the frm f dividends, rental incme, the realisatin f capital gains, r the creatin f scial assets. This results in a mismatch between the cmmunity s expectatins and what is cmmercially feasible, which in turn means that partners perceptins 1 The Department f Rural Develpment and Land Refrm s reprt t a Vumelana Wrkshp n Cmmunal Prperty Institutins, March Cmmunity private partnerships are cmmercial partnerships established between cmmunities and private investrs. Cmmunities retain land wnership and lease their prperties t investrs wh pay rent, make capital investments and manage peratins. These partnerships create prductive enterprises n restred land, emply members frm lcal cmmunities and impart skills. They are lease-based cntractual arrangements that allcate risks and respnsibilities t parties that can reasnably assume them. Typically, equity share ptins can be exercised by cmmunities in the perating cmpany when the risk prfile f the enterprise lks attractive t the cmmunity. (Business Trust (2010) Cmmercial Partnerships fr the Develpment f Restred and Cmmunal Land. Jhannesburg: Business Trust) Page 1 Tlkit 4: CPI Capacity Assessment Tl

3 may nt align with reality. Cmmunal and individual benefits are ften nt well defined which, can lead t free-rider prblems and related cnflicts. A breakdwn in gvernance arrangements, transparency and accuntability can lead t cnflict and institutinal cllapse. A systematic assessment f the CPI s capacity and needs can help t identify strengths and weaknesses and shw where capacity building is needed. The Capacity Assessment Tl CPI capacity develpment needs Capacity develpment needs are likely t differ frm ne rganisatin t anther. If the CPI is t be effective, there are a number f brad areas in which it must functin: Basic gvernance arrangements must be in place such as an up-t-date cnstitutin and prperly elected gverning bdies and cmmittees. Relatinships with members must be systematically managed by having an upt-date member register as well as plicies fr entry and exit, benefit distributin and dispute reslutin. Day t day administratin must be managed by establishing perating plicies and acquiring the skills and ther resurces needed. Finances must be accunted fr and independently audited. Clear reprts must be made t members thrugh annual general meetings and ther means. The prperty belnging t the cmmunity must be registered and managed in accrdance with plicies agreed t by members. The capacity assessment tl Capacity assessment grid The CPI Capacity Assessment Tl is designed in Excel and prvides the apprach fr practitiners t assess an rganisatin s capacity and needs. It can als serve as a prject mnitring, evaluatin and reprting framewrk, and helps track prgress as supprt is prvided t the institutin. The tl is designed t be used by develpment practitiners in prjects that are supprted by Vumelana. It is hped that it will als be useful fr ther practitiners and the gverning bdies f cmmunal prperty institutins. The tl cnsists f a capacity assessment grid that prduces a capacity develpment prfile. The capacity assessment grid cvers five assessment cmpnents namely gvernance, member management, administratin management, financial management and prperty management. Each assessment cmpnent cmprises a number f fcus areas with a brief descriptr f each ne. Fr example, the gvernance cmpnent assesses the rganisatin in terms f its cnstitutin and gverning cmmittee structure, as well as the AGM and accunts. Page 2 Tlkit 4: CPI Capacity Assessment Tl

4 The assessr cmpleting the tl is required t select a Yes/N answer fr each f the questins and can prvide mre detail in a cmment. The last clumn in the tl prvides sme guidance in terms f what actin is required if the answer t any f the key questins is N. An extract frm the gvernance area is shwn belw: FOCUS AREA QUESTION MEANS OF VERIFICATION Yes / N (please select frm drpdwn ACTION REQUIRED IF THE ANSWER IS NO Cnstitutin Valid registered cnstitutin that underpins the gvernance and peratin f the CPI. Gverning cmmittee structure The gverning cmmittee members have the apprpriate skills and capacity. Des the CPI have an apprved cnstitutin? Cnstitutin Draft a cnstitutin and get it apprved Des the cnstitutin meet the requirements f the relevant legislatin? Check list Revise the cnstitutin and get it apprved Has the cnstitutin been registered with the DRDLR? Registratin certificate Register cnstitutin with DRDLR Have the CPI gverning cmmittee and sub-cmmittees been duly elected? Recrd f electins Cnduct electins D cmmittee members have adequate skills? Skills review Develp training prgramme Have the cmmittee Terms f Reference been agreed? Cmmittee TOR Prepare TOR and get them apprved Has a cde f cnduct been agreed t by the cmmittees? Signed Cdes Draft cmmittee cde Prject prfiles The utcme f the capacity assessment is a prfile f the cmmunal prperty institutin shwing where the strengths and weaknesses lie and prviding a list f actins required t imprve its gvernance and administratin. Prfiles f fur different cmmunal prperty institutins are illustrated belw. Page 3 Tlkit 4: CPI Capacity Assessment Tl

5 Using the tl When t use the tl In additin t nging mnitring, which will be cnducted by the CPI administratr, the tl is used by Vumelana at three key pints in the prject: Initial assessment f assistance required by the institutin: On the signing f a cmmunity private partnership agreement, the capacity assessment tl is used t prduce a baseline f the CPI s capacity t gvern and administer the prject and cntrl its finances. This will guide the type f assistance required and help t structure the CPI supprt prgramme. Prgress assessment: Interim assessments are cnducted peridically during the life f the prject. This is dne by the relevant CPI administratr r an external evaluatr with the assistance f the CPI administratr. Final assessment: On cmpletin f all Vumelana supprt t the CPI, the CPI capacity assessment tl is cmpleted nce mre using the mst current infrmatin. This assesses the prgress and impact Vumelana supprt, relative t the baseline data. Hw t use the tl Click here t dwnlad the assessment tl. Gather as much infrmatin as pssible frm the prject recrds t d a desktp review f the prject, including: applicatin dcuments submitted review panel dcumentatin, etc. In preparatin fr engagement with the CPI, cmplete the CPI capacity assessment tl using the desktp infrmatin reviewed. This prduces an upfrnt understanding f the prject and assists in fcusing the engagement n the key issues t be clarified in mre detail. Meet the CPI t verify the infrmatin. As far as pssible, the tl shuld be cmpleted in cllabratin with the party wh will be respnsible fr its nging updating and mnitring, t ensure understanding and buy-in. This is usually the CPI administratr r relevant CPI cmmittee member. Page 4 Tlkit 4: CPI Capacity Assessment Tl