SCOF

1

• SCOF
• 9 June 2006
• TV Pillay
• National Treasury

2

• General support and guidance, including municipal
  and provincial workshops
• Focus on budget content, formats, reporting and
  accounting reforms
• Implementation of PT delegations
• Broad principles
• Improve and modernising communication and
  consultation
• clarifying roles and responsibilities of
  politicians and officials
• Share better information on finances and service
  delivery

3

• Audited Financial Statements
• Publish 2003/04 and 2004/05 audit outcomes for
  all municipalities and status of any outstanding
  AFS and audits
• Publish list of municipalities not compliant with
  timelines for 2005/06 submissions
• Encourage proactive support for improvements
• NW example
• 2004/05 - 20/24 municipalities submitted AFS
  on 31 August05, 2 submit 30 Sept 05, 2 outs to
  submit June 06
• 2005/06 pre-planning with AG/PT/LG in May
  rollout plan, clear and concise comm of
  requirements, criteria and standards to muni
  next week, expected outcome all AFS on time

4

• Budget Process (Circular 10 8 Oct 2004 15
  August 2005)
• Planning
• Coordination, review of past budget, evaluate and
  correct weaknesses
• Strategising
• Review IDP and budget policies, internal and
  external consultation
• Preparing
• Prioritising, tariffs, resources, estimates of
  revenue and expenditure, securing funding, assess
  prior year performance
• Tabling
• Formalise processes of consultation, council,
  public, two to three months window period for
  consult, revising and finalising IDP, tariffs,
  SDBIP
• Approving
• Culmination of public process, adopting budget
  and policies
• Finalising
• Finalise for implementation, supply chain,
  execution processes, delegations, performance
  contracts
• (Communicated to all Mayors, MM, CFOs six months
  before municipal elections, process calendar on
  mfma website)

5

• Budget Tabling and Adoption
• - Circular 31 issued on 10 March 06
• Third correspondence raising awareness and
  cautioning of exemptions
• Reminder of processes, timelines, requirements
• Tabling dates
• Adoption dates
• Communication of criteria, wrt credibility,
  funding, linking plans and budgets

6

• Provincial Treasuries (240 delegated munic)
• National workshops with provinces and selected
  municipalities held in 2005 and 2006
• Visits to municipalities
• Support for the budget preparation processes
• Review challenges, backlogs, etc
• Review and evaluation of budget documents,
  content and quality checks
• Examine linkages with provincial and municipal
  plans
• Review IDPs and budgets
• Review resource allocations, tariffs and
  commitments
• Spending outcomes and capacity to deliver
• Ascertain other support needs

7

• Implementation support
• Workshops countrywide (MFMA, SCM)
• Implementation guideline and manuals
• Pocket version of MFMA
• Technical circulars, emails, F A Q
• Training seminars and workshops (budgets,
  internal audit, mentors, Grap, DVD set)
• Financial Management Qualification Approved
• Validation Board and PPP desk established
• Monthly and Quarterly meetings (dplg, provs,
  Salga)
• Website and MFMA help-line established
• Municipal and PT roving technical advisors
  appointed

8

• NT implementation priorities
• Budget, process linking to IDP
• Improvement in SDBIP
• Improve in-year reporting and publishing out
  turns
• Capital, Operating, Debtors, Creditors, Cash
  flows
• Phased implementation of GRAP standards
• Piloting and implementing SCM
• Finalise supporting regulations and guides
• Validation of training material
• Establish MFRS
• Issue guides on entities
• Building capacity

9
Municipal budget process
Mayor announce consult/budget process
Approve final IDP, Budget SDBIP
July
Review past performance
Finalise budget feedback
Commence review of IDPs consult
Submit drafts to council NT/PT
Community Council involved
Mar
Oct
Municipal internal dept submissions
Prepare draft budget
Officials/CouncillorsBudget review priorities
Dec
Review tariffs
Internal detail budget inputs/prep
10
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11
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12
TABLING OF MUNICIPAL BUDGETS
PROVINCE 2005/2006 2005/2006 2005/2006 2005/2006 2005/2006 2006/2007 2006/2007 2006/2007 2006/2007 2006/2007
PROVINCE TOTAL YES NO TOTAL YES NO
Eastern Cape 45 21 47 24 53 45 38 84 7 16
Free State 25 4 16 21 84 25 16 64 9 36
Gauteng 15 11 73 4 27 14 11 79 3 21
Kwazulu-Natal 61 25 41 36 49 61 50 82 11 18
Limpopo 32 18 56 14 44 30 28 93 2 7
Mpumalanga 20 12 60 8 40 21 19 90 2 10
North west 25 5 20 20 80 25 22 88 3 12
Northern Cape 31 14 45 17 55 32 20 62.5 12 37.5
Western Cape 30 21 70 9 30 30 25 83 5 17
TOTAL 284 131 46 153 54 283 229 81 54 19
13
Municipal Finance Management Act

• Municipal Entities
• Total 77 municipal entities reported to NT
• 27 economic development and planning
• 9 infrastructure and facility management
• 9 housing and health
• 8 arts, culture, conference facilities
• 5 electricity and lighting
• 5 waste management and sewerage
• 5 administration, finance management other
• 4 water services
• 3 crime prevention and safety
• 2 public transport

14

• Phase-in implementation approach
• Multi-year budgets / quality plans /
  implementation
• Monitor in-year spending and revenue collection
• Possible pre-selected areas for audits focus
  during 2006
• Delegations, in-year reports, publication on
  municipal websites, SDBIP implementation, SCM
  implementation, Governance oversight, entities
• Timely submission of AFS and AR
• Monitor audit outcomes