NORTH WEST PROVINCIAL LEGISLATURE
Dr James Moroka Drive
Private Bag X20I8
PORTFOLIO COMMITTEE O N FINANCE
REPORT ON PRESENTATION BY DEPARTMENT
OF FINANCE O N THEIR STRATEGIC PLAN -
1. On the 2 6 t h June 2 0 0 9 , the provincial Department on Finance
presented to the Portfolio Committee on Finance their Strategic
Plan for 2009/10.
The Department of Finance has been allocated R 335 966, OOO for
the current financial year 2009/10.
The objective of the meeting was for the Committee to receive a
presentation from the Department of Finance on their 2009/10
Strategic Plan. This had to be done in order for the Committee to be
informed, as part of processing the budget for the department to be
passed in the Provincial Legislature.
The department highlighted their;
• Strategic overview.
• External & internal focus.
• Overall budget per programme.
• Key deliverables per programme.
This encompasses the main aim of the department being to act as a
custodian of public resources. The department provides provincial
transversal strategic services through internal audit, information
technology, provincial supply chain management, provincial
accounting, financial capacity and centralized creditor payments.
The department also provides financial management support to public
entities and municipalities.
External & Internal Focus
The department ensures that there is efficient allocation of resources
in accordance with national and provincial priorities. The department
also implements and monitors the impact of supply chain reforms in
the province. In conjunction with departments and institutions of state
they strengthen financial management support to departments
through norms, standards and training as well as improving external
communication with stakeholders.
The department offers transversal internal audit services to all
departments. The department is in the process of developing a
revenue enhancement strategy and coordinates the process of asset
and risk management in the province. The department has also
managed to reduce the number of qualified audit opinions in provincial
departments and municipalities.
With regards to the internal focus the aim of the department is to;
• Provide human resource services.
• Implement training and transformation initiatives.
• Implement the new employee wellness framework and
Occupational Health & Safety interventions.
• Implement Minimum Information Security Standards (MISS).
• Implement a Special Programmes directives.
• Improve internal communication.
• Implement sound financial management inclusive of risk
management within the department.
1. Administration R61,808
2. Sustainable resource R65,249
3. Asset & liability mgt R16,138
4. Financial governance R94,605
5. Municipal finance R17,912
6. Information Technology R80,254
TOTAL BUDGET R335,966
Key Deliverables per Programme
Administration will focus on;
• Reviewing departmental strategic plan and organizational
structure to align with the requirements of National Treasury and
the Department of Public Service & Administration.
• Enhancing capacity in critical areas in the department.
• Implementing MISS operational programmes.
• Develop/amend and monitor human resource policies in line with
• Monitor staff performance in line with Performance.
• Implement leamerships and internships in 2009/10.
• Hold departmental communication events.
• Strive to obtain unqualified audit opinion.
• Improve on asset management
• Implement risk management in the department.
Sustainable Resource will focus on;
• Build capacity and appoint personnel in key areas that support
• Continue with performance budgeting techniques.
• Rolling out Standard Chartered of Accounts (SCOA) toning.
• Implement infrastructure capacity building efforts through the
Infrastructure Development Improvement Programme (IDIP)
• Addressing the social cluster financial challenges in particular
Department of Health & Social Development.
• Develop and implement revenue enhancement strategy this in
light of increasing the revenue base.
• Monitor departmental spending through monthly and quarterly
• Monitor compliance on budgeting and expenditure management
in public entities.
• Establishment of Public Private Partnership (PPP) unit in
• Monitor planning and implementation of infrastructure projects
and conditional grants.
Asset & liability management will focus on;
• Repeal the North West Tender Board Act of 2008.
• Provide training, support and policy guidance on supply chain
• Monitor compliance oversight with regards to Supply Chain
Management policy and legislation.
• Empowerment of suppliers by conducting outreach workshops on
accessing government services.
• Coordination and management of provincial and national
• Monitoring and evaluating the impact of Supply Chain in the
province in terms of job creation and poverty alleviation.
Financial Governance will focus on;
• Providing quality accounting services to all departments.
• Assisting departments with developing plans that address audit
outcomes the aim being to eliminate repetitive audit queries.
• Preparation of monthly management accounts of tribal and trust
accounts, invest accounts and distribute interest monthly.
• Consolidate provincial revenue fund, annual financial statements
of departments and public entities.
• Providing training and workshops to provide technical financial
capacity in departments.
• Introducing a liability management system in five pilot
• Providing financial technical training to public entities and
• Speed up supplier payment turnaround time through Electronic
Funds Transfer (EFT)
• Project manage the Walker system to BAS migration.
• Conduct follow up audits on Auditor General's findings and the
Provincial Public Accounts Committee's (PPAC) resolutions.
• Provide support to the Provincial Audit Committee.
Municipal Finance will focus on;
• Assessment of the implementation of new budgeting standards
and reporting formats.
• Assess financial management capacity and performance levels of
• Support municipalities to comply with GAMAP/GRAP.
• Develop plans to address the audit outcomes to reduce the
number of qualified opinions.
• Provide support to implement supply chain management policies
• Assist municipalities to develop financial policies.
• Monitor overall implementation of the Municipal Finance
Management Act No.56 of 2003.
Information Technology will focus on;
• Establishing an Information/Resource Center to assist
users with websites, e-mails and customer support.
• Establish platform for Walker to BAS implementation.
• Local Area networks for departments are upgraded.
• Wide Area Network upgrade in line with national priorities.
• Roll out Voice Over Internet Protocol (VoIP)
• Architecture integration to be established for e-
• Departments being assisted with web page development
CHALLENGES OF THE DEPARTMENT
• Training officials to ensure smooth implementation of the Public
Finance Management Act of 1999 (PFMA) and the Municipal
Finance Management Act of 2003 (MFMA).
• Securing full co-operation of accounting officers in budgeting and
effective budgetary controls.
• Instituting effective and meaningful monitoring of in-year
reporting by departments in accordance with the PFMA and
• Providing capacity building for the roll out of the MFMA.
• Preparing consolidated annual financial statements for all public
entities, trading entities and all thirteen departments in
preparation of financial statements.
• Curbing the irregularities in supply chain management by
balancing procurement controls and just in time quality service
• Providing a transversal information technology service to support
reporting and other information technology needs.
• Providing capacity building and skills development which
enhances the provinces'job creation and economic development.
• Has the department devised a comprehensive plan for the
current economic meltdown?
• What is the Growth Domestic Product (GDP) per capita of
• What are the audit outcomes of North West municipalities?
• What is the role of the Provincial Treasury with regards to
• What is happening to the public entity namely North West
• What is national and provincial government doing with
regards to the fluctuation of food prices?
• How do municipalities manage to exceed their budgets and
what measures are in place to curb their overspending?
• What is the source of revenue in the province?
• There is alleged corruption in the procurement process at
the department is this the case?
• With regards to Programme 5 is it sufficient to aid
municipalities as they are falling apart, especially with
regards to assisting municipalities to develop financial
policies, this comes across that municipalities have not
been having financial policies to guide them?
• Is there a special fund at Treasury or Local Government to
assist municipalities with their core functions?
• Has it been the stance that there has been preferential
procurement processes for particular individuals or
• Who do the departments have long term contracts with?
• Why is it that the E-Government system cannot be
• With the outcome of the Auditor General's reports, how
effectively are the findings and regulations used?
• Is the Provincial Audit Committee functional?
• Is there a tool used to audit how conditional grants are
• Senior Managers in departments influence Bidding
Committees, what measures are in place to curb this?
• With regards to the FFC formula, allocation by National
Treasury to Provincial Treasury, can funds allocated be
diverted elsewhere by Provincial Treasury where they may
deem more necessary?
• With the migration of GAMAP/GRAP have municipalities
• In the municipalities are there any that have functional
internal audit units, and if not what measures are in place
to establish them.
• Those who are on the provincial database as service
providers, do they benefit from supply chain management
in the province?
• A municipal expenditure and budget report is required by
• How does department plan to approach assisting
municipalities with support?
• Has the department assisted those municipalities in the
province that receive an Auditor General's Report on a
• Should the budget of the province not be prioritised to
critical areas in the province such as rural development?
• With regards to Information Technology does new
equipment need to be bought every year?
• What intervention is there with regards to technical
• With the formation of the Forensic Unit in the department,
all pending cases of corruption should be re-visited and
• The department should provide full quarterly reports to the
House and then they be made available in libraries for the
• In most departments there are few people hired
specialising in supply chain management. Administrative
Clerks are usually asked to take on the task of working in
the supply chain management section, this is
• Officials in the municipalities have not signed performance
agreements making regulating performance output non
• The Department of Finance needs to oversee the
departments on their Auditor General reports, there are
too many roll-overs.
• Internal Audit units of departments be functional and they
should produce quarterly reports to the Committee.
• The department with their own budget revise to
accommodate the under resourced IT sector of which all
departments rely on the Department of Finance for. The IT
network should be expanded to public entities and
libraries. Possibly the Department of Finance could take
over all IT systems of the departments.
• The Committee would like the following reports in thirty
> Growth of the budget in the province from 1999 -
2004 & 2004 - 2009.
> A comprehensive report on all long-term contracts in
all the departments from 1999 - 2004 & 2004 -
> Forensic outcomes of; North West Housing
Corporation and DED
> An analysis report on the provincial business
community, outlining those who are not residents in
> Reports on forensic investigations on the
departments of; Agriculture, Social Development and
> With regards t o the ailing systems in municipalities
how will the department assist with GAMAP/GRAB.
The department should engage with other departments on
the Financial & Fiscal (FFC) submissions and maybe there
is a need for a multiparty stakeholder to look into the
revision of the FFC revision for the North West province.
There needs to be an audit evaluation on the Bidding
Committees in all the departments.
A retention policy needs to be developed by the
department and the broader financial section for retention
of the workforce in the province.
The Committee recommends that the Provincial Legislature adopt the
budget for the Department of Finance of R 3 3 5 , 9 6 6 OOO for the
financial year 2009/10.
HON T MODISE
CHAIRPERSON: FINANCE, ECONOMIC DEVELOPMENT &