workshop 5 strategic financial management model j ndwandwe
TRANSCRIPT
8/3/2019 Workshop 5 Strategic Financial Management Model J Ndwandwe
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Strategic FinancialStrategic Financial
Management ModelManagement ModelSupported bySupported by
Australian South Africa Local Government Australian South Africa Local GovernmentProgramProgram
Presented by Joy NdwandwePresented by Joy Ndwandwe
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IntroductionIntroduction
• 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
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Outcome based approachOutcome based approach
– Efficiency
• Inputs: People, Money,
Property
– Effectiveness
• Output: Goods and
Services
• Outcomes
– Impact of outputs on
society
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Strategic Planning FrameworkStrategic Planning Framework
• Vision
– IDP Priorities
– Strategic Objectives
– Programs
– Annual IDP Implementation Plan
– Budget
– Service Delivery Plan
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Aim Model 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
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Aim of Model 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.
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MethodologyMethodology
• 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
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MethodologyMethodology
• Discussions with Stakeholders
– ASALGP
– Intermap
– City Officials
– National Treasury
– DBSA- DIMS team
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City of UMhlatuzeCity 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
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Past Performance ReviewPast Performance Review
• 96% Decrease in Housing Impacts
• Director of Community Facilitation,
Marketing and Housing
• IDP Priorities and Strategic Objective:
– Spatial Development
• Housing Development Strategy
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Past Performance ReviewPast 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
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Functions Vs. IDP PrioritiesFunctions 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
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Functions Vs. IDP PrioritiesFunctions Vs. IDP Priorities
• City Treasury
– Financial Planning
– Budgeting
– Liabilities – Income Management
– Credit Management
– Financial Reporting
• Institutional
Development
– Enhancement of
Financial Management
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Functions Vs. IDP PrioritiesFunctions Vs. IDP Priorities
• City ElectricityServices – Customer Service
– Marketing
– Trading
– Support Services
– Operations
– Maintenance
– Distribution
– Public Lighting
– Planning and Dev.
• Institutional & SpatialDevelopment – Improved accessibility
of services to Comm.
– Maintaining Existing Assets for S.D.
– Basic InfrastructureProvision
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Functions Vs. IDP PrioritiesFunctions Vs. IDP Priorities
• City EngineeringServices – 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.
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Functions Vs. IDP PrioritiesFunctions Vs. IDP Priorities
• Integrated
Development
Planning
– Development Planning – Land Use Mgt.
– Environmental
Planning
– Support Services
• Spatial, Environ. &
Institutional
Development
– Formalize emergingUrban Settlement
– Land Use Mgt
– Extending MOSS
– Improve access of services to comm..
– City Environ. Mgt
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Functions Vs. IDP PrioritiesFunctions 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 PromoteInvestment
– Enhance Tourism
Potential
– Informal Traders – Improve access of
services to comm..
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Functions Vs. IDP PrioritiesFunctions Vs. IDP Priorities
• ManagementServices – IT
– Customer Satisfaction
– Personnel Administration
– Industrial Relations
– Training and
Development – Safety, Health & Risk
– Support Service
• InstitutionalDevelopment – Improve access of
services to comm..
– ImplementPerformanceManagement
– Cit Environmental Mgt
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Functions Vs. IDP PrioritiesFunctions 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..
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Strategic Financial ManagementStrategic Financial Management
FrameworkFramework
• 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
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Strategic Financial ManagementStrategic Financial Management
FrameworkFramework
• Poverty Alleviation and Gender Equity
– Social Development
– Public Transport
– HIV/Aids
– Improved Access to Services
– Maintaining Assets and Services
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Strategic Financial ManagementStrategic Financial Management
FrameworkFramework
• Economic Development – Tourism
– Local Economic Development
– Industrial Development – Informal Traders
– Safety, Security and Health
– Marketing City – Improve Access to Services
– Maintaining Assets and Services
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Strategic Financial ManagementStrategic Financial Management
FrameworkFramework
• Environmental Development – MOSS
– Coastal Management
– Solid Waste Management – Air Quality
– Freshwater Program
– Biodiversity – Improve Access to Services
– Maintaining Assets and Services
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Strategic Financial ManagementStrategic Financial Management
FrameworkFramework
• Institutional Development
– Financial Management
– Improve Access to Services
– Performance Management
– Communication Networks
– Maintaining Assets and Services
– Environmental Mangement