workshop 5 strategic financial management model j ndwandwe

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



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



Outcome based approachOutcome based approach

– Efficiency

• Inputs: People, Money,

Property

– Effectiveness

• Output: Goods and

Services

• Outcomes

– Impact of outputs on

society



Strategic Planning FrameworkStrategic Planning Framework

• Vision

– IDP Priorities

– Strategic Objectives

– Programs

– Annual IDP Implementation Plan

– Budget

– Service Delivery Plan



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



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.



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



MethodologyMethodology

• Discussions with Stakeholders

– ASALGP

– Intermap

– City Officials

– National Treasury

– DBSA- DIMS team



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



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




• 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




• 50% Decrease on Electricity Services

• Office of City Electricity Services

• IDP Priority and Strategic Objective – Spatial Development

• Basic Infrastructure Provision





• 45% Decrease on Health

• Office of the Director Community Services

and Health


– Poverty Alleviation and Gender Equity

• Social Development Initiative

• HIV/Aids




• 33% Decrease on Community Social

Services


and Health


– Poverty Alleviation and Gender Equity

• Social Development Initiative

• HIV/Aids




• 18% Decrease on Waste Management


and Health


– Environmental Development

• Solid Waste Management





• 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




• 21% Integrated Development Planning

• Director Development Planning


• 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




• 21% Integrated Development Planning

• Director Development Planning

• IDP Priority and Strategic Objective – Environmental Development

• Extending MOSS

• Environmental Management

• Improve accessibility of services to communities




• 19% Increase on Water Sector

• Office of City Engineering Services


• Basic Infrastructure Provision

• Industrial Development

• Maintaining Existing Assets





• 19% Increase on Water Sector

• Office of City Engineering Services

• IDP Priority and Strategic Objective – Environmental Development

• Solid Waste Management

• Maintaining Existing Assets




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




• City Treasury

– Financial Planning

– Budgeting

– Liabilities – Income Management

– Credit Management

– Financial Reporting

• Institutional

Development

– Enhancement of

Financial Management




• 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




• 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.




• 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




• 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..




• 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




• 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 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




FrameworkFramework

• Poverty Alleviation and Gender Equity

– Social Development

– Public Transport

– HIV/Aids

– Improved Access to Services





FrameworkFramework

• Economic Development – Tourism

– Local Economic Development

– Industrial Development – Informal Traders

– Safety, Security and Health

– Marketing City – Improve Access to Services





FrameworkFramework

• Environmental Development – MOSS

– Coastal Management

– Solid Waste Management – Air Quality

– Freshwater Program

– Biodiversity – Improve Access to Services





FrameworkFramework

• Institutional Development

– Financial Management

– Improve Access to Services

– Performance Management

– Communication Networks


– Environmental Mangement



Thank youThank you

Question Time????Question Time????

workshop 5 strategic financial management model j ndwandwe

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