Transcript Strategic Financial Management Model

Strategic Financial
Management Model
Supported by
Australian South Africa Local Government
Program
Presented by Joy Ndwandwe
Introduction
• Strategic Financial Budget Model
– Allocating resource to IDP priorities
– Identifying long term effects on revenue
– Identifying long term effects on expenditure
– Improving service delivery
– Ensuring resource allocated have outcomes
– Outcomes impact on citizens
Outcome based approach
– Efficiency
• Inputs: People, Money,
Property
– Effectiveness
• Output: Goods and
Services
• Outcomes
– Impact of outputs on
society
Strategic Planning Framework
• Vision
– IDP Priorities
– Strategic Objectives
– Programs
– Annual IDP Implementation Plan
– Budget
– Service Delivery Plan
Aim Model
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How are current votes related to IDP
Linking current votes to Strategic Object.
Linking current votes to Programs
The Model as a Planning Tool
The Model as a Monitoring Tool
The Model as a Reporting Tool
Aim of Model
• Municipal Financial Management Act
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Budget Implementation Plan
Service Delivery Plan
Monitor and Evaluate Resource
Monthly Budget Reporting
Material Variance Reporting
Mid year budget and performance assess..
Annual Report
National Treasury Reporting
Website Information base.
Methodology
• Literature Review
– ASALGP SFBM Activity 4.4 and 4.5
– Project Charter FBM Pilot
– City of UMhlathuze Budget 2004/5
– Uthungulu District Municipality Budget 2004/5
– Municipal Financial Management Act
Methodology
• Discussions with Stakeholders
– ASALGP
– Intermap
– City Officials
– National Treasury
– DBSA- DIMS team
City of UMhlatuze
• Past Performance Review: Budget 2003/4
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96% Decrease in Housing Capital Expend..
54% Decrease in Sports and Recreation
50% Decrease in Electricity Department
45% Decrease Health
39% Decrease Finance
33% Decrease Community and Social Service
21% Decrease Planning and Development
18% Decrease Waste Management
19% Increase in Water Sector
Past Performance Review
• 96% Decrease in Housing Impacts
• Director of Community Facilitation,
Marketing and Housing
• IDP Priorities and Strategic Objective:
– Spatial Development
• Housing Development Strategy
Past Performance Review
• 54% Decrease on Sports and Recreation
• Office of Director Parks, Sports and
Recreation
• IDP Priority and Strategic Objective
– Spatial Development
• Management of Cemeteries
• Maintaining Existing Assets for Service Delivery
Past Performance Review
• 50% Decrease on Electricity Services
• Office of City Electricity Services
• IDP Priority and Strategic Objective
– Spatial Development
• Basic Infrastructure Provision
• Maintaining Existing Assets for Service Delivery
Past Performance Review
• 45% Decrease on Health
• Office of the Director Community Services
and Health
• IDP Priority and Strategic Objective
– Poverty Alleviation and Gender Equity
• Social Development Initiative
• HIV/Aids
Past Performance Review
• 33% Decrease on Community Social
Services
• Office of the Director Community Services
and Health
• IDP Priority and Strategic Objective
– Poverty Alleviation and Gender Equity
• Social Development Initiative
• HIV/Aids
Past Performance Review
• 18% Decrease on Waste Management
• Office of the Director Community Services
and Health
• IDP Priority and Strategic Objective
– Environmental Development
• Solid Waste Management
• Maintaining Existing Assets for Service Delivery
Past Performance Review
• 39% Decrease City Treasury
• Office of the City Treasury
• IDP Priority and Strategic Objective
– Institutional Development
• Financial Management Costs
• Improve access of services to community
Past Performance Review
• 21% Integrated Development Planning
• Director Development Planning
• IDP Priority and Strategic Objective
– Spatial Development
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Promoting sub-regional and district nodes
Formalize emerging urban settlements
Land Use Management
Land accessibility and secure land tenure
Improve access of services to community
Past Performance Review
• 21% Integrated Development Planning
• Director Development Planning
• IDP Priority and Strategic Objective
– Environmental Development
• Extending MOSS
• Environmental Management
• Improve accessibility of services to communities
Past Performance Review
• 19% Increase on Water Sector
• Office of City Engineering Services
• IDP Priority and Strategic Objective
– Spatial Development
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Basic Infrastructure Provision
Industrial Development
Maintaining Existing Assets
Improve accessibility of services to communities
Past Performance Review
• 19% Increase on Water Sector
• Office of City Engineering Services
• IDP Priority and Strategic Objective
– Environmental Development
• Solid Waste Management
• Maintaining Existing Assets
• Improve accessibility of services to communities
Functions Vs. IDP Priorities
• City Administration
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Secretarial Services
Legal Support
Administration
Libraries
Community Halls
Trading Licensing
• Institutional
Development
– Communication
Networks
– Improve accessibility
of service to
communities
Functions Vs. IDP Priorities
• City Treasury
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Financial Planning
Budgeting
Liabilities
Income Management
Credit Management
Financial Reporting
• Institutional
Development
– Enhancement of
Financial Management
Functions Vs. IDP Priorities
• City Electricity
Services
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Customer Service
Marketing
Trading
Support Services
Operations
Maintenance
Distribution
Public Lighting
Planning and Dev.
• Institutional & Spatial
Development
– Improved accessibility
of services to Comm.
– Maintaining Existing
Assets for S.D.
– Basic Infrastructure
Provision
Functions Vs. IDP Priorities
• City Engineering
Services
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Support Service
Operations
Maintenance
Building
Structure
Water Networks
Waste Networks
• Institutional, Spatial,
Economic & Environ.
Development
– Improved accessibility
of services to Comm.
– Maintaining Existing
Assets for S.D.
– Basic Infrastructure
Provision
– Industrial Dev.
– Solid Waste Mgt.
Functions Vs. IDP Priorities
• Integrated
Development
Planning
– Development Planning
– Land Use Mgt.
– Environmental
Planning
– Support Services
• Spatial, Environ. &
Institutional
Development
– Formalize emerging
Urban Settlement
– Land Use Mgt
– Extending MOSS
– Improve access of
services to comm..
– City Environ. Mgt
Functions Vs. IDP Priorities
• Community,
Marketing & Housing
– Low Cost Housing
– Marketing Services
– Public Relations &
Tourism
– Community Facilitation
– Support Service
• Spatial, Economic
Development
– Housing strategy
– Marketing to Promote
Investment
– Enhance Tourism
Potential
– Informal Traders
– Improve access of
services to comm..
Functions Vs. IDP Priorities
• Management
Services
– IT
– Customer Satisfaction
– Personnel
Administration
– Industrial Relations
– Training and
Development
– Safety, Health & Risk
– Support Service
• Institutional
Development
– Improve access of
services to comm..
– Implement
Performance
Management
– Cit Environmental Mgt
Functions Vs. IDP Priorities
• Parks, Sports &
Recreation
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Horticulture
Cemetery Services
Sports Services
Recreational Services
• Spatial Development
– Management of
Cemeteries and Parks
– Maintaining Existing
Assets
– Improve access to
services for comm..
Strategic Financial Management
Framework
• Spatial Development
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Regional and District Nodes
Emerging Urban Settlements
Basic Infrastructure
Land Use Management
Land Accessibility and Security
Housing Development Strategy
Cemeteries Management
Improved Access to Services
Maintaining Assets and Services
Strategic Financial Management
Framework
• Poverty Alleviation and Gender Equity
– Social Development
– Public Transport
– HIV/Aids
– Improved Access to Services
– Maintaining Assets and Services
Strategic Financial Management
Framework
• Economic Development
– Tourism
– Local Economic Development
– Industrial Development
– Informal Traders
– Safety, Security and Health
– Marketing City
– Improve Access to Services
– Maintaining Assets and Services
Strategic Financial Management
Framework
• Environmental Development
– MOSS
– Coastal Management
– Solid Waste Management
– Air Quality
– Freshwater Program
– Biodiversity
– Improve Access to Services
– Maintaining Assets and Services
Strategic Financial Management
Framework
• Institutional Development
– Financial Management
– Improve Access to Services
– Performance Management
– Communication Networks
– Maintaining Assets and Services
– Environmental Mangement
Thank you
Question Time????