Transcript Slide 1
MOSSEL BAY MUNICIPALITY
PMS BEST PRACTICE
If its not documented its not done
PRESENTER: MR E W JANTJIES DIRECTOR CORPORATE SERVICES
GEOGRAPHICAL OVERVIEW OF MOSSEL BAY
Mossel Bay Municipality is situated within the Eden Municipal District which also includes the Local Municipalities of Bitou (Plettenberg Bay), George, Hessequa (Riversdale), Kannaland (Ladismith) and Oudtshoorn. It is situates on the N2 approximately halfway between the coastal cities of Cape Town and Port Elizabeth The Municipal Area cover 2007 square km
MAIN ECONOMIC ACTIVITIES IN MOSSEL BAY
o o o o o
Tourism Agriculture (Aloes, Cattle, Citrus, Dairy, Ostriches, Sheep, Timber, Vegetables and Wine) Fishing Light Industry Petrochemicals
MUNICIPAL SUCCESSES
BEST PRACTICES: HIV/ AIDS, GENDER, DISABILITY LED MATURITY THIRD IN WESTERN CAPE CLEANEST TOWN & TOWN OF THE YEAR BLUE FLAG STATUS 3 BEACHES MOSSEL BAY NR1 TOWN FOR BUSINESS BLUE DROP & GREEN DROP STATUS BIGGEST DESALINATION PLANT UNQUALIFIED AUDITS FOR THE PAST FOUR YEARS IN A ROW CLEAN AUDIT 2011/2012
PMS IMPLEMENTATION IN MOSSEL BAY MUNICIPALITY Adoption of Performance Management Framework by Council- 06 July 2009
Workshop with Stakeholders: Trade Unions, Ward Committees and Audit Committees Workshop with Lower level staff Workshop with Head of Departments Workshop with Mayco & Executive Management Workshops with EXCO Draft Performance Management Framework Appointment of External Service Provider Provincial Government’s Capacity Building Programmes
ORGANIGRAM: LOCATION OF FUNCTION
MAYCO
Municipal Manager
Internal Auditors
Director : Corporate Services Sub Directorate Head: Change Management and Policy Development Director: Technical Services Director: Development and Planning Director: Community Services IDP PMS EMPLOYMENT EQUITY Admin Officer: PMS Clerk Director: Financial Services
Budget Office SDBIP Officer Assistant Accountant
LEGISLATIVE OVERVIEW
o o o o o o o o o o SA legislative and regularity framework to define PMS Constitution of the RSA, 1996 – Section 155 White paper on Local Government (1998) Municipal Systems Act, 2000 – Chapter 6 (Sec 38 -46) Performance managements system to be implemented by each municipality Culture of performance within municipality Efficiency, economically, effectively and accountability Regular monitoring and evaluation Addresses the key components of the PMS Municipal Finance Management Act 2003
LEGISLATIVE OVERVIEW
o o o o o o Municipal Planning and Performance Management regulations (796, Aug 2001) Performance Management Regulations for MM’s & s57 Appointees (R805, Aug 2006) Framework for managing programme performance information (2007) White paper on transforming Public service delivery (Batho Pele) National and Provincial Regulations and MFMA Circulars Annual report guideline, SDBIP and Oversight report Notice 464: Directive: Performance information public audit act (2007) Auditor-General to audit PMS
GOVERNANCE AND AUDITING
Policy Framework
Framework for managing performance processes Systems to measure performance Reporting structure and delegations
Record-keeping
Changes to PDO’s / KPI’s Supporting documentation
GOVERNANCE AND AUDITING
Performance Calendar
Performance calendar to explain when what will need to be done Reporting on specific day of month Reviews by Council and management Municipal website
Performance Reporting
Risks related to objectives prioritised and mitigated Monitor Evaluate Review Corrective actions
GOVERNANCE AND AUDITING
Internal Audit
Audit plan to include the quarterly audits of performance management.
Re-evaluate the SDBIP Pre- Audit done Assist in improving external audit outcome Combined Assurance Approach: - minimise duplication of audit efforts
GOVERNANCE AND AUDITING
Should assess
:
Risks and control measures regarding performance information
Risks informing audit plans
Legal compliance
GOVERNANCE AND AUDITING
Should assess: Structure and delegations Alignment – are we achieving our objectives Controls to document evidence and compile performance reports Functionality of the performance management system Accuracy, completeness and validity of performance information Performance evidence
GOVERNANCE AND AUDITING
Performance Audit Committee According to the regulations, the performance audit committee must:
review the quarterly reports submitted to it by the internal audit unit
review the municipality's performance management system and make recommendations in this regard to the council of that municipality
assess whether the performance indicators are sufficient
GOVERNANCE AND AUDITING
Performance Audit Committee According to the regulations, the performance audit committee must:
at least twice during a financial year submit an report to the municipal council
Observer during evaluations of s57 – appointees
It is further proposed that the audit committee be tasked with assessing the reliability of information reported.
PERFORMANCE MANAGEMENT DEFINED “ Performance Management is about creating relationships and ensuring effective communication between the employer and the employee.” “ Performance Management is about effective utilisation of available resources for maximum impact on service delivery” CHANGE PROCESS & SYSTEM IMPROVEMENT TEAMWORK OBJECTIVE
“ Performance Management is an ongoing process throughout the year. It’s not just about performance appraisal. In fact, performance appraisal is only a small part of it. Performance management is about preventing, detecting and solving under performance problems
”
BASIC REQUIREMENTS - PMS FRAMEWORK
Must be applicable to all levels in the municipality
Corporate performance indicators aligned with IDP and budget and SDBIP
Performance Contracts, evaluation and measurement for s57 appointments and other managers
Performance management and evaluation at lower level
Create a culture of performance within the municipality
Including incentives performance to assist in creating a culture of
Measures to address weak performance
TRANSFORMING PMS IN MUNICIPALITIES
PMS NO’S X
Stay old school Just skip it Appraise Performance Tell Employees
PMS YES’s
Modernise your thinking Identify the benefits Manage Performance Work with employees and treat all equally Plan precisely with clear goals Don’t bother with goals Rely on memories Ignore motivation Stay aloof Document Performance Set performance incentives Be approachable all year
TRANSFORMING PMS IN MUNICIPALITIES
PMS NO’S X
Focus on the forms Rely on technology Wing the appraisal Ignore the Why’s Praise grudgingly Evaluate attitude Discipline without warning
PMS YES’s
Focus on communication Make it face to face Prepare the appraisal Identify causes and develop employees Recognise success Focus on behaviour and results Use progressive discipline
MBM - PMS FRAMEWORK
The performance policy framework (ADOPTED by MBM Council in 2009) provides guidance in terms of the municipality’s cycle and processes of performance planning, monitoring, measuring, reviewing, reporting, auditing and quality control.
PMS GOLDEN THREAD OF ACCOUNTABILITY
PMS OBJECTIVES
Facilitates strategy (IDP) municipality and align the deployment throughout the organization in executing its strategic objectives - Vision, mission and IDP into clear measurable outcomes
Tool for assessing, managing, and improving the overall health and success of business processes and systems.
Create an organisational performance culture (culture of best practices);
Provide early warning signals;
Promote accountability.
Develop open and constructive customers, leadership and employees; relationship between
PMS OBJECTIVES
Encourage reward for good performance;
Manage and improve poor performance;
Link performance to skills development and career planning, therefore encourage learning and growth; and
Replace existing assessment models with a consistent approach to performance measurement and management.
Sustainable improvements in Service Delivery
Comply with legislative framework
PMS PRINCIPLES
Simplicity We develop our community by developing our staff Align with municipal strategy and promote good performance We appoint good people and therefore expect good performance Each staff member takes ownership of own career
PMS PRINCIPLES
Implementable Transparency and accountable Effective and Efficient Public participation Integration with municipal processes Objectivity Reliability
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Inconsistency between Integrated Development Plan, Service Delivery and Budget Implementation Plan and Annual Performance Report
Pre- determined objectives and indicators were not measurable No processes and systems were in place to monitor the achievement of goals and targets.
No corrective actions and measure were provided In the cases where indicators were deleted, the reason for such amendments was the mere fact that the indicators were not measurable and there was no measuring tool or instrument to determine the results
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
KPI’s are were not relevant and measurable Indicators/measures not verifiable (not possible to validate the process and system that produce the indicator) KPI’s reported on in all PM reports were not the same Lack of monitoring and review of the recording of actual achievements by senior management Lack of standard operating procedures of the recording of actual achievement Insufficient POE kept No quarterly reporting to council on Top Layer SDBIP No monthly reporting to Portfolio Committees on Departmental SDBIP Audits of actual performance not taking place, especially Top Layer Performance audit committees not established and meeting to analyse performance reports and audits of performance by internal audit
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Indicators and targets were not suitably developed during the strategic planning process IDP objectives not achievable, cannot be aligned with budgets and SDBIP (iMAP) KPI’s on SDBIP that were not budgeted for SDBIP (KPI’s and targets) were not adjusted when budgets were adjusted Planned development priorities/objectives were changed but not approved and/or adequately explained in the annual performance report
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Sufficient reasons for non-performance and corrective measures were not indicated on the system and in PR’s and annual reports Measures taken to improve performance not supported by adequate and reliable corroborating evidence The annual performance report was not on time for audit purposes
LOOKING BACK AT PREVIOUS AUDIT OUTCOMES
Previous audit outcomes reveal that:
Sufficient appropriate audit evidence/relevant source documentation could not be provided to measure the validity and accuracy of KPIs Actual results reported in the annual performance report per KPI are inaccurate
PERFORMANCE MODULE LINKAGES
Organisational Performance
KPI’s linked to budget KPI’s linked to Nat KPA’s KPI’s linked to mun KPI’s KPI’s per department Baseline per KPI Targets per quarter / month Types of indicators Responsibility Measurement criteria Reviews and reporting Annual Report Performance improvement
SDBIP & PERFORMANCE DEVELOPMET
PM Policy (Framework) IDP / MY-Mun SC LGTAS BUDGET Dept ‘s Activities Top Level SDBIP
Municipal Scorecard
Departmental SDBIP
Implement of top level & detail performance of dept’s
Council Dept A Dept B Monitoring / evaluation Top Level SDBIP Quarterly Reports SDBIP Monthly Reports S57 Performance Contracts R805 Serv. Provider s SP Perf. Quarterly Reports Council Exco Mgmnt Portfolio Committee SCM Mgmnt Council Staff Performance S57 Performance Reviews Staff Performance Reviews Evaluation Committee Managemen t Team Ownership: Municipal Manager / Performance Manager / Executive Mayor
INTEGRATING FINANCIAL AND NON- FINANCIAL
IDP BUDGET information Nat Outcomes Prov. Strat.
Nat KPA’s Vision Goals / objectives Strategies / programmes / projects Implementation and monitoring instruments IDP Strategic Objectives Strategic objectives are long-term, continuous strategic areas that help you connect the municipal mission to its vision. Strategic objectives encompass four areas: financial, customer, operational, and people. What are the key activities that you need to perform in order to achieve your vision / Mun KPA’s?
IDP
Prioritised Capital Projects
OPERATIONAL BUDGET Revenue & Operational Expenditure For 2010 /11 BUDGET Alignment Budget should visibly address strategic objectives.
Budget should address prioritised projects.
CAPITAL BUDGET Prioritised Capital Projects For 2010 /11 Top Layer SDBIP Strategic Objectives National Requirements Financial SDBIP Revenue Capex Opex Departmental SDBIP KPI’s to implement Top Layer SDBIP Departmental Activities Capital Projects Progress
INTEGRATING FINANCIAL AND NON- FINANCIAL INFORMATION
i
MAP • • •
Reporting on:
Financial Information Non-financial information Alignment of IDP with budget and budget with SDBIP • Alignment with provincial and national strategic interventions
Director s CFO
TOP LAYER SDBIP
INPUT IDP SC Budget MTAS Nat. Outcomes Risk Register
Top Layer SDBIP
Performance indicators Capital Expenditure Revenue by source Monthly Cashflow Expenditure per Ward Actual Performance Financial Performance OWNERSHIP Municipal Manager Directors Strategic Manager Directors CFO Directors CFO Directors CFO Directors CFO Multi-Year Municipal Scorecard Submit to Mayor (14 days after budget approval Mayor review and approve (28 days after budget approval Municipal Website Submitted to Council to Review Year-end Review OWNERSHIP Municipal Manager Dir’s / SDBIP Officer Quarter 3 Review Mid-year Review (Include s72 report) Municipal Manager Dir’s / SDBIP Officer Municipal Manager Dir’s / SDBIP Officer Quarter 1 Review Municipal Manager Dir’s / SDBIP Officer
DEPARTMENTAL SDBIP
IDP Budget MTAS Nat. Outcomes Risk Register Update TL SDBIP with actual results of Dept SDBIP
Top Layer SDBIP
Performance indicators Capital Projects Revenue by source Monthly Cashflow Expenditure per Ward Departmental Activities Reporting Requirements Municipal Systems
CONCLUSION
It is important to note that a PMS is dynamic and will change and develop over time to reflect the unique features of the municipality.
Performance management provides the mechanism to measure whether targets to meet its strategic goals set by the organisation and its employees are met
. Explore Endless Horizons