SCOA for Municipalities: PERFORMANCE MANAGEMENT & REPORTING mSCOA

PERFORMANCE MANAGEMENT SYSTEMS BACKGROUND: The Municipal Systems Act requires municipalities to develop a performance management system that is suitable for their own circumstances. The performance management system or framework must describe how the municipality’s cycle and processes of performance planning, monitoring, measurement, review and reporting will happen and be organised and managed, while determining the roles of different role-players. IMPROVE AND PROMOTE EFFECTIVENESS

MUNICIPAL REGULATIONS ON STANDARD CHART OF ACCOUNTS Objectives: (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 performance measurement in the local government sphere.

THE IMPORTANCE OF MEASURING PERFORMANCE ! EFFECTIVE: Planning & Budgeting Implementation Monitoring & Reporting Accountability Tracking of Progress Monitor Service Delivery WHAT GETS MEASURED GETS DONE

Project Management Requirements mSCOA PLATFORM Strategic inputs mSCOA Reporting Objectives Muni Objective Financial Region Project Function Non Financial Input Activity Output Outcome Project Management Requirements Align Fiscal Outcomes Sustainability IDP SDBIP

ACCOUNTING CYCLE PMS

mSCOA & PERFORMANCE MANAGEMENT SYSTEMS SEGMENT PROJECT IDP SDBIP Non- Financial Phase Integrated Solution Project Dependant Accurate and Reliable Reporting Inclusive of financial aspects

mSCOA : EXPANSION OF PROJECT SEGMENT FUNCTION FUND ITEM REGIONAL COSTING MSC THE PROJECT SEGMENT TO INCLUDE NON FINANCIAL ATTRIBUTES OF RELEVANT PROJECTS

NON-FINANCIAL ATTRIBUTES PROJECT SEGMENT EXPANSION: BASELINE- initial level of performance KPI- indicator linked to strategic objectives IMPACT INDICATOR - results of achieving specific outcomes START/END DATE ROLE PLAYERS AND RESPONSIBILITIES RISK REGISTER LINK REGIONAL INDICATOR FUNCTION INDICATOR

PERFORMANCE MANAGEMENT SYSTEM Development and Review of the IDP Develop and Implement the PMS Framework Develop KPA’s and KPI’s Set targets and measurables for KPI’s Service Delivery Process Internal Monitoring Internal Control Performance measurement and reporting Revision of Objectives and Strategies

PERFORMANCE MANAGEMENT SYSTEM The IDP framework is first captured – National KPAs, Strategic Objectives PROJECT SEGMENT IDP Projects KPI’s and Tasks

DELIVERABLES Performance Management System is used to determine the municipal performance status in terms of service delivery to the community and whether the performance of the municipality have increased / decreased over a particular period of time. In the process of measuring the municipal performance, individual performance becomes available that in turn assist to determine possible capacity building, skills development and/or training needs of individuals.

FUNCTIONALITY SDBIPs – Capture and Report on Service Delivery and Budget Implementation Plans. Alignment of SDBIP to IDP Cascading of Performance to lower levels of Management Capture and Report on Organisational Performance Management Individual Performance Management Reporting on various different scorecards including Action Plans

REPORTING MID YEAR AND ANNUAL PMS REPORTING MUNICIPAL MANAGER’S PMS COMPLIANCE REPORTING ORGANISATONAL SCORECARD INDIVIDUAL SECTION 57/56 PERFORMANCE REPORT

DASHBOARDS Municipal dashboards provide many benefits, including a central place for all your data, visibility into the operations of each department and an early warning system that alerts you when changes might need to be made.

DASHBOARDS Municipal dashboards are real time and mSCOA will contribute to alerts in terms of budgets and values.

mSCOA PLATFORM BENEFITS Availability data is part of integrated system Accuracy data is sufficiently reliable Timeliness data is readily available for evaluating program performance Cost of Data Collection the collection of the data is cost-effective   COMPARRISSON WITH FINANCIAL ASPECT NON-FINANCIAL ASPECTS OF A PROJECT IS EASILY COMPARRED TO THE FINANCIAL ASPECTS

THE WAY FORWARD IMPLEMENTATION OF MSCOA FINANCIAL PHASE ACHIEVE COMPLIANCE – 1 JULY 2017 FOCUS ON mSCOA NON- FINANCIAL PHASE PERFORMANCE MANAGEMENT SYSTEM SOME VENDORS HAVE ALREADY STARTED THE DEVELOPMENT OF THE NON FINANCIAL PHASE

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Presented by: Thirvan Trevor Chetty 078 784 3979 trevor@tevtal.co.za THANK YOU Presented by: Thirvan Trevor Chetty 078 784 3979 trevor@tevtal.co.za