Transcript Document

ABC of Clean Administration Back to basics
through Performance Management service
IMFO Audit & Risk Indaba 2015
Performance
Management System
in action to address
the Public Demands
Fienie van Rensburg: Institute for
Performance Management
Institute of Municipal Finance Officers & Related Professions
Back to Basics through
Performance Management Service
PM Multi- disciplinary Field
All disciplines need to ensure
that public monies are used
responsibly and effectively to
build a better life for all!
This
requires
a
multidisciplinary and integrated
approach!
Institute of Municipal Finance Officers & Related Professions
Back to Basics through
Performance Management Service
Clean Audit the Solution?
A clean audit not necessarily
addresses the public demand!
Almost two thirds of people
currently do not receive basic
humanitarian rights and demands
- It is now time for PM Auditing to move to
the next level of implementation
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Back to Basics in action to address the public demands
 Municipalities are no stranger to the challenges of limited financial
resources and a shortage of skilled administrators
 The Mail and Guardian 13 March 2015 reports:
 “The state of performance of municipalities is of concern,”
 ... many municipalities were in intensive care, as reported by the
auditor-general
 A solution, or not?
 Some Back to Basics awards encourages a clean administration
 The awards recognises, financial management, basic service
delivery, governance, LED and public participation
 Is this enough?
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service:
Performance Management System in action to
address the public demands
One very important truth needs to be be
addressed
Integration
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unprecedented Ward-based Planning Model
Integrated with the Integrated Development Plan
Integrated with the SDBIP
Integrated with measurement (service standards),
costing
 Aligned to the Provincial Annual Performance Plans
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management the driver to address public
demand
 There is only one approach by which these plans can be
developed to meet public demand!
? Multi-disciplinary
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Planning
Monitoring
Reporting
Evaluation
 Through effective Measurement
 Performance Management
 Strategic Offices should focus at least 80% of their time
on integrated performance management for better service
delivery to address public demand
•
Strategic Offices must have the powers to plan, monitor, report and evaluate multidisciplinary how public demand is met
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Measurement a requirement to
address the public demands
 Public demand can only be achieved through
 Equity
 Effectivity
 Efficiency
 Economy
 .... But most importantly through a prioritisation model
 Performance management as regulated:
 Holds the tool to address public demand
 How ???
 One plans through the public
 One reports back to the public
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 It is of no interest to the public to know the machinery how services are
implemented
 They want to see planning per ward ito
 What, when and by which standards
 Equity. Effectivity, Efficiency and Economy is the system behind the
scenes to drive it
 The questions we need to answer:
 Do we go back to audit the unit cost in the budget against the cost in real term?
 Do we go back and report on the scheduled time frames completed?
 Do we go back and report holistically as per the Measurement Model how the
APP’s interrelates with the IDP’s and how it interrelates with the Wards?
 Do we go back and report on the standards delivered against the time frames?
 Why not?
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 An integrated multi-disciplinary approach is needed internally to
manage, to monitor, to report and to evaluate of which the
components are:
 An integrated ICT platform at least between municipalities and
provinces
 An integrated ICT platform at least between municipalities and
wards / Councillors
 An integrated ICT platform between different systems within the
organ of state
 An all inclusive PM methodology:
• An integrated model between PM decision-making, PM financial unit
cost, PM auditing, PM human capital and PM process management
must be promoted
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 We need to maximise fiscal capacity
 Focus on inadequacies and challenges
 Systems
 Processes
 People
 Unit Cost = service standards and time frames
 Aligned to ward based planning and delivery:
• Ward Based Planning
• Performance Based Budgeting
• Strategic planning
• SDBIP
• Business Unit / Operational Alignment
 Operational Unit Cost
 Project management Cost
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
Indeed a clean audit not
necessarily achieves a good
performance
if
multidisciplinary
process
integration and Unit cost have
not been achieved!
Is it time to shift now to PBB?
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 Audits
 Must start to include a multi-disciplinary approach to
ensure
 Service Delivery
 Financial Health
 Good governance
 Is adequately measured, integrated and
costed
 Why after years does this not happen?
• New approach is maybe required
• The fundamental approach on PM auditing needs to
shift to include operational delivery
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 Need to return to service standards to address the public
demand
 On the Core Services
 Clean drinking water, sanitation, electricity,
housing, waste removal and roads
 We need to start to develop the how?
 Service standards
 Effective measurement against the service
standards
 Cost the processes that support the service
standards
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 Need to return to the basics also in PM
 How are we going to put our people first?
 How are we going to get dysfunctional
municipalities out of their state?
 Rekindle the spirit of effective service delivery:
 Plan, Monitor, Report and Evaluate on specifics
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•
•
•
Time line
Level of quality
Cost against Unit
100% Expenditure
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 To do this we need to:
 Develop service standards
 Build processes with output measures
 Pull it up into the costing per measure
 Pull output measure into outcome and impact measures ito
the public demand
 Adjust strategy
 Review IDP, ward based plans and other frameworks
 Align APP’s with service delivery areas
 Integrate across spheres of government
 Ensure multi-disciplinary approach and re-structuring of
governance arrangements
 Monitor through appropriate ICT systems
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
 Thus
 Align service delivery and service standards with
performance management
 Align performance management with performance
based costing and budgeting
 Develop the ICT platform
 Monitor and Report adequately ito service delivery cost
time lines against public demand
 Create public demand responsiveness platform
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
Measurement
Financial
Alignment
Planning
Defining
Performance
Management
Institute of Municipal Finance Officers & Related Professions
Systems
Alignment
Back to basics through
Performance Management service
Processes hold the Key
• Process can be classified as those routine procedures that are
part of the department’s day to day operations.
• It can also be classified as those initiatives that are performed
annually within the department and consists of
– Input (resources)
– The process will consist out of a number of activities / steps /
procedures
– Complying to a set of standards
– Measurable outputs
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Management System in action to
address the public demands
We need to
get the basics
right!
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
The Measurement Challenge
 Managing-for-results focuses on maximising benefits
and minimising negative consequences
 Effective and efficient performance measurement is
regular measurement of the
 results (outcomes and outputs)
 efficiency of programmes/project processes
(inputs, outputs)
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
The Measurement Solution
Inputs
(Finance)
Measurement
Cost
effectiveness
Outputs /
outcomes
Budget
alignment
Institute of Municipal Finance Officers & Related Professions
(Service
Delivery)
Back to basics through
Performance Management service
Importance of Financial Planning
Alignment between the budget and the
various plans compiled during the planning
phase is imperative to ensure that sufficient
financial resources are available to achieve
the outcomes, outputs, activities and inputs
relevant to objectives.
Well-structured
Plans
Sufficient funds based
on effective financial
planning
Institute of Municipal Finance Officers & Related Professions
Success!
Back to basics through
Performance Management service
Clarify PBB cont…
Consists of three elements:
1. The result or final outcome
2. The strategy or how to achieve the final
outcome
3. The activity or what is to be done to achieve
the final outcome
4. The report back to the Public
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Performance Measurement and Based Budgeting
 It is the practice of developing budgets based on
the relationship between programme funding levels
and expected results from that programme
 PBB is a tool that management can use to manage
more cost-effective and efficient budget outlays
 PBB requires linking indicators to resources to
ensure that strategy and planning meet execution
and measurement
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Ensuring Alignment Between Budgets and Plans
Need to ask the following questions to ensure
alignment between budgets and plans:
•
•
What kind and how many services / products can
be produced with available funds?
Are services / products of good value and are they
making a difference in the lives of citizens / clients /
customers?
Can only answer
Institute of Municipal Finance Officers & Related Professions
these by
implementing
performancebased budgeting
Back to basics through
Performance Management service
Link between Financial Planning and Costing Systems
Related to financial planning Performance –
based Budgeting (PBB) and Activity-based
Costing (ABC) can be used to link finances
with strategies to achieve institutional goals
Institute of Municipal Finance Officers & Related Professions
Back to basics through
Performance Management service
Conclusion
It is not that a Clean Audit is not important - it
is that auditing should start to go beyond the
existing PM auditing parameters and to start
to focus on Unit cost for services to be
delivered against service standards - then
shall we startInstitute
to meet
the Public Demand
of Municipal Finance Officers & Related Professions
Thank You!
Institute of Municipal Finance Officers & Related Professions