A Service Delivery and Budget Implementation Plan

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A Service Delivery and Budget Implementation Plan
Local Government Capacity Building Summer School
2004 1 November 2004 Xavier Mac Master City of
Tshwane
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What presentation will cover

• MFMA provisions
• Underlying principles of the Act
• Why a SDBIP?
• Tshwane approach
• In conclusion

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MFMA Provisions
Section 69(3)(a)

• The AO must no later than 14 days after the
  approval of the annual budget submit to the mayor
  a draft SDBIP for the budget year
• The mayor must take all reasonable steps to
  ensure that the municipalitys SDBIP is approved
  within 28 days after the approval of the budget

Section 53(1)(c)(ii)
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Underlying principles
Promote sound financial governance
Modernisation of financial management
Role clarification (political administrative)
MFMA
Strategic approach to budgeting
Promoting co-operative and consultative governance
Improved accountability and service delivery
outcomes
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Elements of Accountability
Governance
Measurement
Reporting
Accountability
Management
systems
COUNTING WHAT COUNTS Marc Epstein Bill Birchard
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Definition of SDBIP

• service delivery and budget implementation plan
• means a detailed plan approved by the mayor of a
• municipality in terms of section 53(1)(c)(ii) for
  implementing
• the municipalitys delivery of municipal services
  and its
• annual budget, and which must include
• projections for each month of-
• Revenue to be collected by source and
• Operational and capital expenditure by vote
• Service delivery targets and performance
  indicators for each quarter and
• Any other matters that may be prescribed
• and includes any revisions of such plan by the
  mayor in tersm of
• section 54(1)(c)

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Why a SDBIP?
Increased focus in government on
Quality of spending
Increased accountability
Improved service delivery outcomes
Accurate timely reporting
Measurable Performance objectives
Financial non-financial indicators
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SDBIP in context
Approved Budget
SDBIP and Performance Agreements
Monthly Budget Statements
Quarterly Performance Reports
Mid-year Budget and Performance assessment
Annual Report
Section 24(1) The budget and revised IDP must be
approved by Council at least 30 days before the
start of the year
SDBIP must be submitted to Mayor within 14 days
and approved within 28 days Include service
delivery targets and performance indicators PAs
must be ito MSA and linked to measurable
objectives and SDBIP
Section 71(g)(ii) Not later than 10 working days
after the end of each month An
explanation of any material variances from the
SDBIP
Section 52 (d) The mayor must within 30 days
after the end of each quarter submit a report to
council on the implementation of the budget in
accordance with SDBIP
Section 72 AO by 25 Jan each year assess both
financial and service delivery performance,
issues from Annual Report performance of each
municipal entity and submit a report on such
assessment. Adjustments Budget? S54(1)(c)
Section 121(3) A municipalitys annual report
must include an annual performance assessment and
an assessment by the AO of performance against
measurable objectives
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Tshwane approach

• Review of past performance (impediments)
• Organisational and departmental strategic and
  business plans (3-5 years)
• City and departmental scorecards (1yr)
• Capital budget plan
• Projected cash flow
• Milestones
• Non-financial targets e.g. job creation

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Strategic plan template
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Reporting template
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Scorecard template
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NT guidelines

• Projections of monthly revenue by source
• Projections of monthly operating and capital
  expenditure by vote
• Quarterly projections of service delivery targets
  and performance indicators
• Service delivery projections for capital projects
• Timing and methodology for preparation of SDBIP

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NT formats
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NT formats
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Lessons learnt

• Paradigm shift to outcomes driven approach away
  from focussing on inputs
• Must get terminology right from the start
• Responsibility for different aspects of SDBIP
  located in various functional areas (Planning,
  PMS, Budgeting, etc.) may create some
  co-ordination challenges

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Thank you!