Strategic Financial Management Model

Strategic Financial Management ModelSupported by Australian South Africa Local Government ProgramPresented by Joy NdwandweIntroduction•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 citizensOutcome based approach–Efficiency•Inputs: People, Money, Property–Effectiveness•Output: Goods and Services•Outcomes–Impact of outputs on societyStrategic Planning Framework•Vision–IDP Priorities–Strategic Objectives–Programs–Annual IDP Implementation Plan–Budget–Service Delivery PlanAim 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 ToolAim 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 ActMethodology•Discussions with Stakeholders–ASALGP–Intermap–City Officials–National Treasury–DBSA-DIMS teamCity 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 StrategyPast 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 DeliveryPast 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 DeliveryPast 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/AidsPast 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/AidsPast 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 DeliveryPast 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 communityPast 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 communityPast 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 communitiesPast 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 communitiesPast 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 communitiesFunctions Vs. IDP Priorities•City Administration–Secretarial Services–Legal Support–Administration–Libraries–Community Halls–Trading Licensing•Institutional Development–Communication Networks–Improve accessibility of service to communitiesFunctions Vs. IDP Priorities•City Treasury–Financial Planning–Budgeting–Liabilities–Income Management–Credit Management–Financial Reporting•Institutional Development–Enhancement of Financial ManagementFunctions 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 ProvisionFunctions 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. MgtFunctions 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 MgtFunctions 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 ServicesStrategic Financial Management Framework•Poverty Alleviation and Gender Equity–Social Development–Public Transport–HIV/Aids–Improved Access to Services–Maintaining Assets and ServicesStrategic 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 ServicesStrategic Financial Management Framework•Environmental Development–MOSS–Coastal Management–Solid Waste Management –Air Quality–Freshwater Program–Biodiversity–Improve Access to Services–Maintaining Assets and ServicesStrategic Financial Management Framework•Institutional Development–Financial Management–Improve Access to Services–Performance Management–Communication Networks –Maintaining Assets and Services–Environmental MangementThank you Question Time????