Transcript Welcome to IMFO

Indaba 2014- East London
ICC
Sidwell Mofokeng
Vice President
Institute of Municipal Finance
Officers
CONSEQUENCS OF POOR
PERFORMANCE
• Results of non-service delivery can have a
detrimental effects…...wmv
Outline
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Where are we at as Mayors in exersing effective role?
Legislative Environment
Govt Planning & Performance Systems
Performance Management System Cycle
Monitoring Model
Reviewing
Auditing
Proposed Approach to Monitoring & Evaluation
Challenges
What needs to be done
Institute of Municipal Finance
Officers
DELEGATION SYSTEM
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Community
Council
EXCO/Mayco
Council Committees – Section 79( including
MPAC and 80
• Audit Committee/ Performance Audit
Committee
• Senior Management
• Sub-delegation
Institute of Municipal Finance
Officers
WHERE DOES THE OVERSIGHT ROLE STARTS
1.Integrated Development Plan (IDP)
Process Plan
Five Phases (Analysis, Strategies, Projects, Integration &
Approval.
2.Annual Budget
3. Service Delivery Budget & Implementation Plan
Corporate Objectives, Baseline, Indicators
(Input/Output/Outcome), Targets
4.Performance Agreements
Performance Plans/Performance Scorecards
5.Performance Evaluations
6.In-year Reports and All Reports
Quarterly Reports (MFMA Reg 2009) – Quality Certificate
Midyear Reports (MFMA Sec 72) – Quality Certificate
Annual Performance Reports (Structures Act) –AuditorGeneral Report/Opinion
Annual Reports (Section 121) – AG
Report/Opinion/Oversight
Report3.
Institute of Municipal
Finance
Officers
Planning
• Involves the development of an organizational strategic plan
and the cascading of this plan to all structural levels within the
organization. ( Mayor/ Executive Mayor) Set the tone on Top
• Includes the development of individual performance plans
(key performance areas).The planning process also involves
the setting of measurement frameworks (performance
indicators and targets).
• Performance Planning ensures that the strategic direction of
the Municipality more explicitly informs and aligns the IDP
with all planning activities and resource decisions. This is the
stage where Key Performance Area’s and Key Performance
Indicators are aligned to the IDP and national requirements,
and targets are set.
• IDP and the Draft budget
Monitoring
• Involves the development of mechanisms and
systems to monitor the implementation of
plans.
• Includes elements such as reporting
frameworks, tracking systems (e.g. logging of
customer complaints) and feedback
mechanisms (customer surveys).
Measuring
• Involves measurement against targets that have been set(
Predetermined objectives) Measurement also includes
mechanisms such as benchmarking (measuring against
sector/industry standards)
• It is an on-going process to determine whether performance
targets have been met, exceeded or not met. Projections can
also be made during the year as to whether the final target
and future targets will be met. It occurs during key points in a
process – for example, on a quarterly and annual basis.
Evaluation
• Analyses why there is under-performance or what the factors
were, that allowed good performance in a particular area.
Where targets have not been met, the reasons for this must
be examined and corrective action recommended.
• Evidence to support the status is also reviewed at this stage.
An additional component is the review of the indicators to
determine if they are feasible and are measuring the key
areas appropriately.
• A corporate analysis of performance will be undertaken by the
Performance Management Unit, to examine performance
across the municipality in terms of all its priorities.
Reporting
• Entails reporting twice a year to management,
the performance audit committee, council and
the public.
• In addition, a quarterly report is also prepared
and sent to Internal Audit to be audited, prior
it being sent to council and the performance
audit committee.
Review Performance Management Process
General KPI’s
Set KPI’s
Set Measurable
Targets
Improve
Performance
Monitor
Performance
Review and Measure
Performance
Provincial
Intervention
when
necessary
Community Participation
Community Participation
Community Participation
Report
Planning process –
(IDP) that includes
Development
Priorities and
objectives
Presentation Outline1
WHERE DOES THE MAYOR START 2
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IDP CYCLE
IDP Steering Comm ( Management PMT)
Stakeholder Performance AC & AC
Process Plan outline responsibilities of all Stakeholders
5. IDP will follow process – Public partcicpation
6. Draft budget
7. After Council approval of the IDP the may or must of SDBIP with a
contract with Council
8. Mayor must ensure that performace contracrt are signed
9. Performance Agreement informed by Framework and Policy and
the ACT
10.SBDIP must be presented to the public however this would have
been
11.SDBIP is an agreement of Mayor and council
Institute of Municipal Finance
Officers
WHERE DOES THE MAYOR START 4
Supporting structures to the Executive Mayor are supporting
-Management – implements and accounts
-PaC/AC advice, review and give assurance (through
internal audit process
-MMCs and section 80 -Monitor and Evaluate per
department
-Mayco/ Exco oversight
-Council Approve
-MPAC – interrogate as per council mandate
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Institute of Municipal Finance
Officers
WHERE DOES THE MAYOR START 5.
PERFORMANCE Management Staff Regulations
- Performance is driven by section 56 employees the role
of the mayor
- Constituting the panels
- MM conduct Informal assessments quartely as per act
and regulations 805
- Formal assessments twice a year
- SBDIP BUDGET adjustments
- Adjust the organisational performance
- Adjust Predetermined objectives
- Panels and the PaC/AC
Institute of Municipal Finance
Officers
WHAT NEED TO BE DONE 1.
Remedial Action Plan for Predetermined Objectives
• Review and revise performance targets and projections
in Organisational SDBIP
• Review performance management process
• Review performance measuring instrument
• Review and revise performance management policy
• Develop performance management framework
• Develop user guidelines for performance measuring
instrument
• Develop framework for credible performance evidence.
WHAT NEED TO BE DONE 2.
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Expedite the current review of the M&E System to ensure that it generates reliable
and timely information for decision making, in order to improve government’s
delivery machinery, improves policies and accountability
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Strengthen the capacity of the Delegation Systems at local government
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PMS/Internal Audit must work together to support processes
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Strengthen support of the internal/external audit processes
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Support internal/external committees (Oversight/Audit Committee to do their work
diligently
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Strengthen Council Oversight Role
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Capacity building of the MPAC to execute its mandate
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Council being decisive in acting of MPAC recommendations
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Continuous training and development VERY essential – PMS evolving all the time
WHAT NEED TO BE DONE 3.
• Develop a framework of how to address the identified gaps and
challenges;
– Stick to the planning ethos (i.e. IDP Guide Packs!)
• Review of Institutional Arrangements (that can work best for us (not to
loose focus!)
• Align the planning instruments at municipal level:
– IDP , SDBIP, LGTAs, Outcome Based Approach, NDP
(Develop aligned SDBIP scorecards for implementation with clear KPIs
and targets)
• Resuscitate and sustain planning tools (don’t steer away from what you
know best, what works best and how to do it better!):
– Develop:
• Clear and concise planning frameworks
• Timelines
• Responsibilities
– Strengthen local structures
• District-wide IDP Steering Committee
WHAT NEED TO BE DONE 4.
• Redefine the assignment responsibilities to Council, Mayor,
Officials and Municipal Managers and Section 57:
– For better preparation and readiness
– For improved implementation
• Sustain the performance monitoring and evaluation system
– Form should follow function
• Hence clarity on function crucial
• First function and buy-in, then the rest
Institute of Municipal Finance
Officers
ReviewCurrent State of Performance Information
Integrated
Development
Plan
Annual Budget
•5 year planning horizon •1 year resource plan
•Development
•Revenue and
objectives and
expenditure
strategies (impact)
•Capital and
•Strategic KPIs and
operational
targets
•Financial Plan
Service Delivery
and Budget
Implementation
Plan
Performance
Agreements
Annual Report
•Tactical KPIs and
•Tactical and
•Tactical and
targets
operational KPIs and
operational KPIs and
targets
targets
•Service delivery and
financial
•Service delivery
•Service delivery and
financial
•Quarterly projections
•Quarterly projections
•Monitoring, evaluation, •Monitoring, evaluation,
and reporting
and reporting
Risk Management
Internal and External Auditing
Review Performance Management Process
General KPI’s
Set KPI’s
Set Measurable
Targets
Improve
Performance
Monitor
Performance
Review and Measure
Performance
Provincial
Intervention
when
necessary
Community Participation
Community Participation
Community Participation
Report
Planning process –
(IDP) that includes
Development
Priorities and
objectives
ROLE OF ADMINISTRATION AND POLITICAL LEADERSHIP IN
PERFORMANCE MANAGEMENT PROCESS
ACCOUNTING OFFICER
AND SENIOR
MANAGEMENT
INTERNAL AUDIT
ICT
STEERING
COMMITTEE
RISK
MANAGEMENT
AND ANTICORRUPTION
AUDIT COMMITTEE
PERFORMANCE
AUDIT
COMMITTEE
EXECUTIVE
MAYOR AND
MAYCO
COUNCIL
MPAC
TECHNICAL STEERING
COMMITTEE
SECTION 80
COMMITTEES
Evaluation of the Speaker, Executive Mayor and Senior Management on the
Functionality of Performance Audit Committee and Audit Committee:
• Both committees’ work was of high quality and their output is
commendable. A huge amount of audit documentation has
been dealt with and they fulfilled their mandates.
• The overall performance of the Audit and Performance Audit
Committees were better than expected and they have
received the full support of management.
• It is worth highlighting that the current Audit and
Performance Audit Committees have added value to the
Municipality as already, we have observed noticeable changes
including attitudes of staff and management regarding the
Internal Audit matters. Management has noted that there was
a positive contribution to the Financial and Risk Management
matters.
Evaluation of the Speaker, Executive Mayor and Senior Management on the
Functionality of Performance Audit Committee and Audit Committee:
CRITERIA
SCORE
Composition and Quality
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Understanding Business and Risks
Oversight of Internal and External auditors
Process and Procedure
Communication
Oversight of Internal Controls, Risk Management, Governance, and Financial
Reporting
SYMBOL
Leadership of the Chairperson
Overall Performance
 CONCLUSION
 Audit Steering Committee meetings convened on weekly basischaired by MM
 Standing items-OPCA action plans
 Obligatory attendance-Senior Management Team
 Progress report presented to PaC/AC, MayCo & Council and
MPAC.
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The Institute
• A professional body in local government finance
that was established in 1929
• A Section 21 company, registered as an
Association Not for Gain
• A SAQA Accredited Professional Body
• A constructive role player in policy formulation
processes in local government finance and related
professions
Institute of Municipal Finance Officers
IMFO
THANK YOU
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Institute of Municipal Finance
Officers