Strategic Financial Management Model

Strategic Financial Management Model Supported by Australian South Africa Local Government Program Presented by Joy Ndwandwe Introduction • Strategic Financial Budget Model – Allocating resource to IDP priorities – Identifying long term effects on revenue – Identifying long term effects on expenditure – Improving service delivery – Ensuring resource allocated have outcomes – Outcomes impact on citizens Outcome based approach – Efficiency • Inputs: People, Money, Property • Outcomes – Impact of outputs on society – Effectiveness • Output: Goods and Services Strategic Planning Framework • Vision – IDP Priorities – Strategic Objectives – Programs – Annual IDP Implementation Plan – Budget – Service Delivery Plan Aim Model • • • • • • How are current votes related to IDP Linking current votes to Strategic Object. Linking current votes to Programs The Model as a Planning Tool The Model as a Monitoring Tool The Model as a Reporting Tool Aim of Model • Municipal Financial Management Act – – – – – – – – – Budget Implementation Plan Service Delivery Plan Monitor and Evaluate Resource Monthly Budget Reporting Material Variance Reporting Mid year budget and performance assess.. Annual Report National Treasury Reporting Website Information base. Methodology • Literature Review – ASALGP SFBM Activity 4.4 and 4.5 – Project Charter FBM Pilot – City of UMhlathuze Budget 2004/5 – Uthungulu District Municipality Budget 2004/5 – Municipal Financial Management Act Methodology • Discussions with Stakeholders – ASALGP – Intermap – City Officials – National Treasury – DBSA- DIMS team City of UMhlatuze • Past Performance Review: Budget 2003/4 – – – – – – – – – 96% Decrease in Housing Capital Expend.. 54% Decrease in Sports and Recreation 50% Decrease in Electricity Department 45% Decrease Health 39% Decrease Finance 33% Decrease Community and Social Service 21% Decrease Planning and Development 18% Decrease Waste Management 19% Increase in Water Sector Past Performance Review • 96% Decrease in Housing Impacts • Director of Community Facilitation, Marketing and Housing • IDP Priorities and Strategic Objective: – Spatial Development • Housing Development Strategy Past Performance Review • 54% Decrease on Sports and Recreation • Office of Director Parks, Sports and Recreation • IDP Priority and Strategic Objective – Spatial Development • Management of Cemeteries • Maintaining Existing Assets for Service Delivery Past Performance Review • 50% Decrease on Electricity Services • Office of City Electricity Services • IDP Priority and Strategic Objective – Spatial Development • Basic Infrastructure Provision • Maintaining Existing Assets for Service Delivery Past Performance Review • 45% Decrease on Health • Office of the Director Community Services and Health • IDP Priority and Strategic Objective – Poverty Alleviation and Gender Equity • Social Development Initiative • HIV/Aids Past Performance Review • 33% Decrease on Community Social Services • Office of the Director Community Services and Health • IDP Priority and Strategic Objective – Poverty Alleviation and Gender Equity • Social Development Initiative • HIV/Aids Past Performance Review • 18% Decrease on Waste Management • Office of the Director Community Services and Health • IDP Priority and Strategic Objective – Environmental Development • Solid Waste Management • Maintaining Existing Assets for Service Delivery Past Performance Review • 39% Decrease City Treasury • Office of the City Treasury • IDP Priority and Strategic Objective – Institutional Development • Financial Management Costs • Improve access of services to community Past Performance Review • 21% Integrated Development Planning • Director Development Planning • IDP Priority and Strategic Objective – Spatial Development • • • • • Promoting sub-regional and district nodes Formalize emerging urban settlements Land Use Management Land accessibility and secure land tenure Improve access of services to community Past Performance Review • 21% Integrated Development Planning • Director Development Planning • IDP Priority and Strategic Objective – Environmental Development • Extending MOSS • Environmental Management • Improve accessibility of services to communities Past Performance Review • 19% Increase on Water Sector • Office of City Engineering Services • IDP Priority and Strategic Objective – Spatial Development • • • • Basic Infrastructure Provision Industrial Development Maintaining Existing Assets Improve accessibility of services to communities Past Performance Review • 19% Increase on Water Sector • Office of City Engineering Services • IDP Priority and Strategic Objective – Environmental Development • Solid Waste Management • Maintaining Existing Assets • Improve accessibility of services to communities Functions Vs. IDP Priorities • City Administration – – – – – – Secretarial Services Legal Support Administration Libraries Community Halls Trading Licensing • Institutional Development – Communication Networks – Improve accessibility of service to communities Functions Vs. IDP Priorities • City Treasury – – – – – – Financial Planning Budgeting Liabilities Income Management Credit Management Financial Reporting • Institutional Development – Enhancement of Financial Management Functions Vs. IDP Priorities • City Electricity Services – – – – – – – – – Customer Service Marketing Trading Support Services Operations Maintenance Distribution Public Lighting Planning and Dev. • Institutional & Spatial Development – Improved accessibility of services to Comm. – Maintaining Existing Assets for S.D. – Basic Infrastructure Provision Functions Vs. IDP Priorities • City Engineering Services – – – – – – – Support Service Operations Maintenance Building Structure Water Networks Waste Networks • Institutional, Spatial, Economic & Environ. Development – Improved accessibility of services to Comm. – Maintaining Existing Assets for S.D. – Basic Infrastructure Provision – Industrial Dev. – Solid Waste Mgt. Functions Vs. IDP Priorities • Integrated Development Planning – Development Planning – Land Use Mgt. – Environmental Planning – Support Services • Spatial, Environ. & Institutional Development – Formalize emerging Urban Settlement – Land Use Mgt – Extending MOSS – Improve access of services to comm.. – City Environ. Mgt Functions Vs. IDP Priorities • Community, Marketing & Housing – Low Cost Housing – Marketing Services – Public Relations & Tourism – Community Facilitation – Support Service • Spatial, Economic Development – Housing strategy – Marketing to Promote Investment – Enhance Tourism Potential – Informal Traders – Improve access of services to comm.. Functions Vs. IDP Priorities • Management Services – IT – Customer Satisfaction – Personnel Administration – Industrial Relations – Training and Development – Safety, Health & Risk – Support Service • Institutional Development – Improve access of services to comm.. – Implement Performance Management – Cit Environmental Mgt Functions Vs. IDP Priorities • Parks, Sports & Recreation – – – – Horticulture Cemetery Services Sports Services Recreational Services • Spatial Development – Management of Cemeteries and Parks – Maintaining Existing Assets – Improve access to services for comm.. Strategic Financial Management Framework • Spatial Development – – – – – – – – – Regional and District Nodes Emerging Urban Settlements Basic Infrastructure Land Use Management Land Accessibility and Security Housing Development Strategy Cemeteries Management Improved Access to Services Maintaining Assets and Services Strategic Financial Management Framework • Poverty Alleviation and Gender Equity – Social Development – Public Transport – HIV/Aids – Improved Access to Services – Maintaining Assets and Services Strategic Financial Management Framework • Economic Development – Tourism – Local Economic Development – Industrial Development – Informal Traders – Safety, Security and Health – Marketing City – Improve Access to Services – Maintaining Assets and Services Strategic Financial Management Framework • Environmental Development – MOSS – Coastal Management – Solid Waste Management – Air Quality – Freshwater Program – Biodiversity – Improve Access to Services – Maintaining Assets and Services Strategic Financial Management Framework • Institutional Development – Financial Management – Improve Access to Services – Performance Management – Communication Networks – Maintaining Assets and Services – Environmental Mangement Thank you Question Time????