A Service Delivery and Budget Implementation Plan

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

2. What presentation will cover… • MFMA provisions • Underlying principles of the Act • Why a SDBIP? • Tshwane approach • In conclusion

3. 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 municipality’s SDBIP is approved within 28 days after the approval of the budget Section 53(1)(c)(ii)

4. Underlying principles Promote sound financial governance Modernisation of financial management Role clarification (political & administrative) MFMA Promoting co-operative and consultative governance Strategic approach to budgeting Improved accountability and service delivery outcomes

5. Elements of Accountability Governance Measurement Reporting Accountability Management systems COUNTING WHAT COUNTS: Marc Epstein & Bill Birchard

6. 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 municipality’s 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)

7. 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

8. 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 PA’s 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 municipality’s annual report must include an annual performance assessment and an assessment by the AO of performance against measurable objectives

9. 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

10. Strategic plan template

11. Reporting template

12. Scorecard template

15. 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

16. NT formats

17. NT formats

18. 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

19. Thank you!