Role of a CFO by 7PN3I86

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									       Role of a CFO

Presentation to IMFO Western Cape
       Conference, Goudini
           4 June 2012
    Johann Mettler, IC member

           Drakenstein Municipality   1
                     Contents
•   Background
•   Formal role
•   Strategic role
•   Conclusion




                     Drakenstein Municipality   2
                      Background
• Legislative environment
   – Highly regulated
   – Continuously developing/changing
   – Personal liability
• Municipal environment
   – Community expectations and perceptions
      • Extension of services
      • Fraud and corruption
   – HR and technical capacity constraints
   – Conflicting demands
      • Rigours of SCM
      • Demand for LED


                            Drakenstein Municipality   3
                 Formal role
• MFMA, regulations
  – Asset and liability management
  – Revenue management
  – Expenditure management
  – S81 MFMA




                    Drakenstein Municipality   4
                Strategic role
• Advising on
  – Revenue enhancement (linkages between assets and
    income)
  – Value for money (closing the gap between amount
    paid and value of service)
  – Advising on measurable strategic/key indicators (not
    merely amount spent)
  – Advising on IT systems that provide key INFORMATION
  – Advise on key INTEGRATED financial systems,
    processes
                     Drakenstein Municipality          5
                  Conclusion
• Fulfilment of formal role important
• Equally, if not more important to devise
  financial management system to;
  – Ensure non-financial targets reached
  – Ensure value for money
  – Ensure integration of key information across
    municipality



                     Drakenstein Municipality      6

								
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