Strategic Financial Management Model

1
Strategic Financial Management Model

• Supported by
• Australian South Africa Local Government Program
• Presented by Joy Ndwandwe

2
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

3
Outcome based approach

• Efficiency
• Inputs People, Money, Property
• Effectiveness
• Output Goods and Services

• Outcomes
• Impact of outputs on society

4
Strategic Planning Framework

• Vision
• IDP Priorities
• Strategic Objectives
• Programs
• Annual IDP Implementation Plan
• Budget
• Service Delivery Plan

5
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

6
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.

7
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

8
Methodology

• Discussions with Stakeholders
• ASALGP
• Intermap
• City Officials
• National Treasury
• DBSA- DIMS team

9
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

10
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

11
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

12
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

13
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

14
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

15
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

16
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

17
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

18
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

19
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

20
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

21
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

22
Functions Vs. IDP Priorities

• City Treasury
• Financial Planning
• Budgeting
• Liabilities
• Income Management
• Credit Management
• Financial Reporting

• Institutional Development
• Enhancement of Financial Management

23
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

24
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.

25
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

26
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..

27
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

28
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..

29
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

30
Strategic Financial Management Framework

• Poverty Alleviation and Gender Equity
• Social Development
• Public Transport
• HIV/Aids
• Improved Access to Services
• Maintaining Assets and Services

31
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

32
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

33
Strategic Financial Management Framework

• Institutional Development
• Financial Management
• Improve Access to Services
• Performance Management
• Communication Networks
• Maintaining Assets and Services
• Environmental Mangement

34
Thank you

• Question Time????