Transcript Slide 1

A Service Delivery and
Budget Implementation Plan
Local Government Capacity Building Summer School 2004
1 November 2004
Xavier Mac Master
City of Tshwane
What presentation will cover…
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MFMA provisions
Underlying principles of the Act
Why a SDBIP?
Tshwane approach
In conclusion
MFMA Provisions
Section 69(3)(a)
– The AO must no later than 14 days after the
approval of the annual budget submit to the
mayor a draft SDBIP for the budget year
Section 53(1)(c)(ii)
– The mayor must take all reasonable steps to
ensure that the municipality’s SDBIP is
approved within 28 days after the approval of
the budget
Underlying principles
Promote sound
financial governance
Modernisation of
Role clarification
(political & administrative)
financial management
MFMA
Promoting co-operative
and consultative
governance
Strategic approach
to budgeting
Improved accountability
and service delivery
outcomes
Elements of Accountability
Governance
Reporting
Accountability
Measurement
Management
systems
COUNTING WHAT COUNTS: Marc Epstein & Bill Birchard
Definition of SDBIP
“service delivery and budget implementation plan”
means a detailed plan approved by the mayor of a
municipality in terms of section 53(1)(c)(ii) for implementing
the municipality’s delivery of municipal services and its
annual budget, and which must include –
(a)
projections for each month ofi.
ii.
(b)
Revenue to be collected by source; and
Operational and capital expenditure by vote;
Service delivery targets and performance indicators for each
quarter; and
(c) Any other matters that may be prescribed
and includes any revisions of such plan by the mayor in tersm of
section 54(1)(c)
Why a SDBIP?
Increased focus in government on:
Quality
of
spending
Increased
accountability
Improved
service
delivery
outcomes
Accurate &
timely
reporting
Measurable
Performance
objectives
Financial &
non-financial
indicators
SDBIP in context
Approved
Budget
Section 24(1)
The budget
and revised
IDP must be
approved by
Council at
least 30 days
before the
start of the
year
SDBIP and
Performance
Agreements
Monthly
Budget
Statements
Quarterly
Performance
Reports
Mid-year
Budget and
Performance
assessment
Annual
Report
SDBIP must be
submitted to
Mayor within 14
days and
approved within 28
days
Section 71(g)(ii)
Section 52 (d)
Section 72
Section 121(3)
Not later than
10 working
days after the
end of each
month
Include service
delivery targets
and performance
indicators
…………………
The mayor
must within 30
days after the
end of each
quarter submit
a report to
council on the
implementation
of the budget in
accordance
with SDBIP
AO by 25 Jan
each year assess
both financial and
service delivery
performance,
issues from
Annual Report &
performance of
each municipal
entity and submit a
report on such
assessment.
A municipality’s
annual report
must include an
annual
performance
assessment and
an assessment
by the AO of
performance
against
measurable
objectives
PA’s must be ito
MSA and linked to
measurable
objectives and
SDBIP
An explanation
of any material
variances from
the SDBIP
Adjustments
Budget? S54(1)(c)
Tshwane approach
• Review of past performance (impediments)
• Organisational and departmental strategic
and business plans (3-5 years)
• City and departmental scorecards (1yr)
• Capital budget plan
– Projected cash flow
– Milestones
– Non-financial targets e.g. job creation
Strategic plan template
Strategic Objective 1
Example:
To facilitate the functioning of safe and secure communities
Strategic Intent
To effectively facilitate the delivery of a broad portfolio of development programmes in such a manner that it has a
measurable impact on the safety profile of communities
Contribution to the national and provincial development agenda of safe and secure communities
CTMM STRATEGIC TARGETS
Overall target for the 5 years
Key result area
Year 1 (2005/6)
10%
An 80% reduction in predictable safety and security threats in identified high risk areas of Tshwane
Year 2 (2006/7)
Year 3 (2007/8)
Year 4 (2008/9)
Year 5 (2009/10)
25%
45 %
65%
80 %
Performance Indicator
(Measurement Unit)
Current year Baseline
0%
STRATEGIES
1Establishment of functioning
community safety programmes
in affected communities
2 Implement a city design that
is based on `design for safety’
principles
3
4
5 etc
COMPLETION
.
DATE
% reduction in safety and security
threats identified and listed.
PERSON RESPONSIBLE
June 06
Head Metropolitan Police
June 06
Head City planning, housing
and environmental
management
MEANS OF VERIFICATION
(qualitative and quantitative)
Minutes of meetings with communities
Written reports from communities
Total budgets
Good Practice /
Benchmark
No benchmark available
BUDGETS (R)
Capital
Operational
Reporting template
Name of programme
Problem statement
Strategic purpose of programme/project
Departental objective that it addresses
Departmental strategy is addresses
Programme targets
Client
Year 1
Year 2
Year 3
Year 4
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Demographic targets
Geographic targets
Other
Programme Year 1 Targets
Demographic targets
Geographic targets
Other
Year 5
Scorecard template
Perspective
Customer
Internal
Processes
Financial
City Priority
Key Performance Area
Building our institution and
governing well
Enhancing our image
Developing and enhancing
our natural resources
Live Batho Pele
Sustainable utilization and development
of resources
Building our institution and
governing well
Effective processing of applications on
alienation of land
Building our institution and
governing well
Financial viability
Contribution to economic
development
Sound Financial Management
Learning &
Growth
Building our institution and
governing well
Optimal human resource management
To effectively address the challenge of
HIV/AIDS in the workplace
Ensure Performance Management &
Reporting
Key Performance Indicator
Baseline
Target
No plan
30 Sept 04
% implementation of Batho Pele action plan
% monitoring of the implementation of risk management
action plans as per timeframes agreed in corporate risk
register
Submission of comments on applications
0%
70%
50%
80%
n/a
2 weeks
Develop an integrated financial strategy/policy in line
with National KPI’s on financial viability and NT fiscal
review process (REDS, RSC levy, Tariff policy, property
rates etc)
% of comments completed within 3 working days
% fund transfers per month completed within 3 working
days according to MFMA
% of reports submitted as required by DORA
% of approved service delivery and budget
implementation plan completed by agreed target dates
% of completed operating & capital budget compliancy
with MFMA and GRAP / GAMAP requirements
% of monthly financial statements submitted within 10
working days after month end
Un-qualified Audit report - % of Auditor General formal
queries respond to within 10 working days
% of operating budget spent to achieve set objectives
% compliance with the MFMA and applicable legislation,
policies and procedures
% compliance to targets se in approved City and
Departmental EE plan
% compliance to targets se in approved City and
Departmental Skills development plan
% Managers trained through the Leadership
Development Programme
Number of peer educators trained
No strategy/
policy
Strategy/Policy to
be developed by
November 2004
90%
85%
95%
90%
85%
90%
90%
95%
80%
90%
60%
65%
80%
90%
90%
80%
95%
90%
60%
70%
70%
90%
Finalisation of Batho Pele action plan
0
20%
n/a
% of employees voluntary counseled
n/a
1 for every 50 -100
staff members
20%
Percentage implementation of PMS Plan by 2005:
Managers/Deputy managers/Chief accountants
0%
90%
Cross-departmental
dependencies
Departments responsible for
implementation of risk action plans.
Inter departmental team to be coordinated by CFO
Quality and timely responses from
divisions/sections
Awareness training
Finalisation of corporate plan and
targets
Finalisation of corporate plan and
targets
Dependent on allocation from
Human Resource Development
Timely finalization of guidelines from
Human Resources Division
C apital Project Monitoring
Reporting period
Strategic Unit
Division
01-Jul-03
30-Jun-04
All
All
Capital project expenditure status report
300,000,000
Original budget
Retimed budget
Actual Expenditure
250,000,000
200,000,000
R 150,000,000
100,000,000
50,000,000
July
Month
July
August
September
October
November
December
January
February
March
April
May
June
UnAlloc
Total:
August
September
October
November
December
January
EXPENDITURE - Budget proposal
Original
Retimed
Actual
Deviation
budget
budget
FAV(UNFAV)
42,616,104
21,620,978
3,138,463
18,482,515
50,826,218
32,338,965
16,541,140
15,797,825
90,429,160
40,997,743
31,064,669
9,933,074
62,672,955
47,819,475
35,572,969
12,246,506
72,335,573
57,482,638
45,349,776
12,132,863
61,993,096
64,770,089
53,637,803
11,132,286
75,304,733
45,479,833
23,272,984
22,206,849
105,998,537
97,613,670
60,366,496
37,247,174
115,130,449
99,269,389
39,156,420
60,112,969
94,231,640
126,421,988
48,049,919
78,372,069
99,168,634
139,042,968
75,413,478
63,629,490
134,761,068
216,909,725
291,217,518
(74,307,793)
19,875,762
1,005,468,167
1,009,643,223
722,781,634
Key milestones of the project
Project scope approved (including feasibility analysis)
Project consultation requirements finalised
Project design approved
Land procurement (if required) finalised
Tender start (advertised or invitation)
Tender approved (Council date if Council approval required)
Works commenced
Works finalised
February
Original
budget
37,976,399
12,092,680
17,712,870
34,298,370
22,296,060
12,838,230
25,705,530
22,546,060
24,149,573
25,463,385
18,401,035
31,709,779
285,189,971
March
April
May
INCOME - Budget proposal
Retimed
Actual
budget
23,999,083
11,485,369
12,185,369
13,225,489
9,988,869
35,654,011
11,102,761
14,322,654
24,506,582
23,744,759
26,618,992
40,241,089
247,075,027
June
Deviation
FAV(UNFAV)
23,999,083
11,485,369
12,185,369
13,225,489
9,988,869
35,654,011
11,102,761
14,322,654
24,506,582
23,744,759
26,618,992
40,241,089
-
Planned to complete
Actual Completion
Deviation
166
39
-127
117
20
-97
184
66
-118
24
8
-16
193
18
-175
186
12
-174
208
66
-142
31
8
-23
C apital Project Monitoring
Reporting period
Project Number
Project Name
Strategic Unit
Division
Project Manager
00-Jan-00
30-Jun-04
710034
REPLACEMENT OF WATER
SERVICE DELIVERY
Water & Sanitation
L Lotter/E Pesch/A Cronje
Capital project expenditure status report
900,000
Original budget
Retimed budget
Actual Expenditure
800,000
700,000
600,000
500,000
R
400,000
300,000
200,000
100,000
July
Month
July
August
September
October
November
December
January
February
March
April
May
June
UnAlloc
Total:
August
September
October
November
December
January
EXPENDITURE - Budget proposal
Original
Retimed
Actual
Deviation
budget
budget
FAV(UNFAV)
300,000
16,058
16,058
0
400,000
64,835
64,835
0
450,000
483,604
483,604
0
664,795
664,795
0
900,000
694,914
694,914
0
650,000
72,214
72,214
0
300,000
3,580
3,580
0
3,000,000
2,000,000
2,000,001
Key milestones of the project
Project Scope (including feasibility)
Community Consultation
Project Design
Land Procurement
Tender Process
Tender Approved
Physical Works
Project Promotion
Non Financial Targets
Project completed ahead schedule and at a reduced budget
February
Original
budget
-
March
April
May
INCOME - Budget proposal
Retimed
Actual
budget
-
June
Deviation
FAV(UNFAV)
-
Target Completion date
Actual Completion date
Deviation
no date
no date
0
no date
no date
0
no date
no date
0
no date
no date
0
no date
no date
0
no date
no date
0
31-October-2003
31-October-2003
no date
no date
0
0
0
0
NT guidelines
• Projections of monthly revenue by source
• Projections of monthly operating and capital
expenditure by vote
• Quarterly projections of service delivery targets
and performance indicators
• Service delivery projections for capital projects
• Timing and methodology for preparation of
SDBIP
NT formats
NT formats
Lessons learnt
• Paradigm shift to outcomes driven
approach away from focussing on inputs
• Must get terminology right from the start
• Responsibility for different aspects of
SDBIP located in various functional areas
(Planning, PMS, Budgeting, etc.) may
create some co-ordination challenges
Thank you!