Download S23 - David Mogofe

FROM IDP to mSCOA BUDGET
IMFO Conference
Durban ICC
Presented by Mothiba David Mogofe on 4 October 2016
Contents
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Legislative framework that enable financial management
Five Key Strategic Objectives
Key Performance Arears
Separation of Powers … roles and responsibilities
mSCOA Aligned to MFMA Calendar: The journey to
success…
Financial Reforms - Municipal Accountability Cycle
IDP aligned to project
Budget By Project and function
IDP to Budget ( Example)
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Legislative framework that enable financial management
Municipal Systems Act, 2000
“Adoption of integrated development plans
25. (1) Each municipal council must, within a prescribed period after the start of its
elected term, adopt a single, inclusive and strategic plan for the development of the
municipality which:
(a) links, integrates and co-ordinates plans and takes into account proposals for the
development of the municipality;
(b) aligns the resources and capacity of the municipality with the implementation
of the plan;
(c) forms the policy framework and general basis on which annual budgets must be
based;”
MFMA, 2003
“Budget preparation process
21. (1) The mayor of a municipality must – (a) co-ordinate the processes for preparing
the annual budget and for reviewing the municipality’s integrated development plan and
budget-related policies to ensure that the tabled budget and any revisions of the
integrated development plan and budget-related policies are mutually consistent
and credible;”
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Legislative framework that enable financial management
(Own bolding for emphasis only)
Municipal Regulations on a Standard Chart of Accounts, 2014
“Object of these Regulations
2. The object of these Regulations is to provide for a national standard
for the uniform recording and classification of municipal budget
and financial information at a transaction level by prescribing a
standard chart of accounts for municipalities and municipal entities
which(a) are aligned to the budget formats and accounting standards
prescribed for municipalities and municipal entities and with the
standard charts of accounts for national and provincial government;
and
(b) enable uniform information sets recorded in terms of national norms
and standards across the whole of government for the purposes of
national policy coordination and reporting, benchmarking and
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performance measurement in the local government sphere.”
Five Key Performance Arears
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Separation of Powers … roles and
responsibilities
Council
Policy Direction and Oversight
Independent,
objective information
Transparency
Auditor-General
Internal
Audit
Committee
Executive
Audit
Political
Operational
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mSCOA Aligned to MFMA Calendar: The journey to
success…
IDP process:
Needs to begins with in the prescribed
period from 3 August 2016.
Budget process:
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Community Participation:
• Identify Projects (Capital and typical
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work streams);
Identify Regions of these projects; and
Identify the Function that need to
deliver the projects.
Populate the Municipal running cost and
Maintenance & repair Projects;
Functions will need to link the required Items to
deliver the Projects;
Align the IDP with available resources (Funding &
Revenue Items ); and
Determine the Costing module and finalize tariffs.
Finalization of the chart
• Budget Approval process
• Create SDBIP based on
Budget.
Implementing the new chart of
accounts and carry over of the
legacy items opening balances.
Note restatements for 2018/19
year.
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Financial Reforms - Municipal
Accountability Cycle
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IDP aligned to project
Capital
Projects
Identify the Type
Definition:
Infrastructure
or
Non-Infrastructure
Infrastructure projects
New ,existing or
Renewal
Water treatment works
Reticulation
Waste drop-of points
Testing stations
Etc….
Operational
Project
Identify the type
• Maintenance
• Municipal
Running Cost
• Typical Work
streams
Infrastructure or non -infrastructure
Community participation
Capacity Building
Note : Maintenance have preventative or
corrective maintenance.
Either : planned, condition base or interval
base
Water treatment works as per version 6
Treatment - terminology changed to align
to CIDMS
Solid Waste infrastructure :addition from
CIDMS in Version 5.5 for creating
municipal specific projects.
Internal Sanitation Reticulation changed
to Reticulation in Version 5.5 to align to
the CIDMS and Internal Reticulation
included.
Projects relating to the renewal of existing
coastal infrastructure assets.
Community assets added on version 6
As per version 6 additional projects
performed by district municipalities on
behalf of locals, project has been added.
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Default
Not Applicable
Default projects are only used for liabilities,
current assets, Revenue and gains and
losses.
IDP and budget alignment
“how far are we”
Budget By Project and
function
Capital
IDP projects
.Infrastructure
Non-infrastructure
Infrastructure
projects (DM)
Functions:
Water
Waste water infrastructure
Waste Management
other
Function
Operational
Opex Projects
Region
Reginal Identify:
Whole of district
Administrative and head office ( including satellite)
Wards
• Maintenance
• Municipal
Running Cost
• Typical Work
streams
Water
Waste management
Executive and council
Finance and administration
“mSCOA project, Function and Region
alignment process
Sub-function : Core or non
core
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Water treatment
Waste water treatment
Solid waste disposal
Licensing and regulation
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Opex: Core or Non –Core
Water distribution
Solid waste removal
Mayor and council
Administrative and corporate support
“how far are we”
IDP to Budget ( Example)
Good Governance and Public
Participation
Project description:
• Municipality planning to have community
participation programme on quarterly basis
and the office of the mayor will champion the
process and the programme is budgeted
R500 000
IDP to Budget
IDP
Good Governance and Public Participation
Operational: typical work stream: Communication and Public participation: Mayor/
Executive Mayors campaign
Function Executive and Council: Core Function:Mayor and Council
Finance and Administration: Core Function: Fleet Management
Public Safety: Core Function: Police Forces, Traffic and Street Parking Control
Marketing, Customer Relations, Publicity and Media Co-ordination: Core function
Fund
Revenue: non exchange: property rates: levies
Project
Item
Contracted Services : Contractors: Catering Services
Contracted Services : Contractors : Stage and Sound Crew
Contracted Services : Contractors : Artists and Performers
Contracted Services: Contractors: Audio-visual Services
Advertisement
Newspaper
Graphic designer
Region
Regional identify: local government by province: district : local municipality: whole of
municipality
Default transaction
Costing
QUESTIONS?