Ring Fencing Toolkit

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Ring FencingToolkit

• Stewart Gibson
• Stewart Gibson Associates (Pty) Ltd

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Ring Fencing

• What is ring fencing?
• Financial ring fencing
• Operational ring fencing
• Personnel ring fencing
• Support services ring fencing
• What role does it play?
• Why do we do it?

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Application of Ring Fencing

• A, B and C Municipalities
• Allocated Powers Functions
• Analysis of Powers Functions

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Uses of Ring Fencing

• Understanding the real business
• Identifying the real cost
• Identifying staff resources required
• Identifying outsourcing opportunities

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Ring Fencing - Financial

• Identify all allocated costs and recharges
• Identify any unallocated costs
• Are any services being provided at no cost?
• What are the overheads to be covered?
• Controlling organisation and personnel
• Staff mark-ups / cost of benefits
• Offices, office equipment, consumables, etc
• Restate all costs and income on a cash basis

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Ring Fencing - Operational

• Identify core and non-core activities
• Are non-core activities still to be provided
• Can you cost each of the activities
• Can you measure each of the activities

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Ring Fencing - Personnel

• List of personnel directly employed
• of time used of other personnel
• Other services required
• Can they be sourced on a contract basis
• Overstaffed / Understaffed ?

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Ring Fencing Services

• What support services are used
• Should they be in-house or contracted
• Other services which could be outsourced