Unpacking the IDP into projects, function and region Presented by Nomandla Jikwana on 9 November 2016

Legislative framework that enable financial management (Own bolding for emphasis only) Municipal Systems Act, 2000 “Adoption of integrated development plans 25. (1) Each municipal council must, within a prescribed period after the start of its elected term, adopt a single, inclusive and strategic plan for the development of the municipality which: links, integrates and co-ordinates plans and takes into account proposals for the development of the municipality; aligns the resources and capacity of the municipality with the implementation of the plan; forms the policy framework and general basis on which annual budgets must be based;” MFMA, 2003 “Budget preparation process 21. (1) The mayor of a municipality must – (a) co-ordinate the processes for preparing the annual budget and for reviewing the municipality’s integrated development plan and budget-related policies to ensure that the tabled budget and any revisions of the integrated development plan and budget-related policies are mutually consistent and credible;” ,

Legislative framework that enable financial management (Own bolding for emphasis only) Municipal Regulations on a Standard Chart of Accounts, 2014 “Object of these Regulations 2. The object of these Regulations is to provide for a national standard for the uniform recording and classification of municipal budget and financial information at a transaction level by prescribing a standard chart of accounts for municipalities and municipal entities which- 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.”

Five Key Performance Arears

UNPACKING THE IDP One of the approaches entails utilizing the following source documents to identify projects: IDP – Already lists Capital and some operational projects TB – Historically some items on the TB were projects not items Budget – Will give an indication of any additional projects not included in the projects list. SA 36 will list the projects planned for that yr and following 2 yrs.

What Segments are Required and where do they come from Municipal Standard Classification: MSC is a non regulated segment and will probably still represent the MFMA vote. Project: This segment is to ensure that all projects in the IDP is aligned to budgets. Function: Here we align with the IMF, GFS, Constitution and Municipal Structures act to “Departments and Votes” Costing: The costing segment will grow as maturity levels grow initially a allocation of cost from Administrative functions to Commercial services will suffice. Item: This is the Accountants segment and is informed by GRAP, IFRS and accounting standards. All financial reporting and reconciliations happen in this segment. Region: Communities need to feel and see delivery, Only through planning and physical delivery can this be communicated effectively. Fund: National and Provincial Government are on Modified cash and Local government “Item are on Accrual” Here we align to Payments and receipts and in essence achieve cash flow here.

IDP and budget alignment IDP aligned to project Capital Projects Infrastructure or Non-Infrastructure New ,existing or Renewal Identify the Type Water treatment works Reticulation Waste drop-of points Testing stations Etc…. IDP link Key performance area Strategic Objective Key performance indicator Project description GUID identifying mSCOA project Municipal Demarcation Code Report type Specific project required must be at the lowest level possible Verification on A1,A6,A9,SA3 and SA 15 Operational Unpack municipal running cost Unbundled maintenance using asset management plan A Operational . Project Maintenance Municipal Running Cost Typical Work streams Identify the type Infrastructure or non -infrastructure Community participation Capacity Building Note : Maintenance have preventative or corrective maintenance. Either : planned, condition base or interval base Default Not Applicable Default projects are only used for liabilities, current assets, Revenue and gains and losses. IDP and budget alignment

Budget By Project and function Capital IDP projects .Infrastructure Non-infrastructure Infrastructure projects (DM) Functions: Water Waste water infrastructure Waste Management other Sub-function : Core or non core Water treatment Waste water treatment Solid waste disposal Licensing and regulation Operational Opex Projects Maintenance Municipal Running Cost Typical Work streams Function Water Waste management Executive and council Finance and administration Opex: Core or Non –Core Water distribution Solid waste removal Mayor and council Administrative and corporate support Region Reginal Identify: Whole of district Administrative and head office ( including satellite) Wards “mSCOA Project, Function and Region alignment process “how far are we”

EXAMPLE OF AN IDP LINKED PROJECT PROJECT SEGMENT REGIONAL SEGMENT FUNCTION SEGMENT BUDGET Project No Dm Code Period Type National KPA Service Delivery Objective IDP Strategic Objective IDP Project Description mSCOA PROJECT DESCRIPTION mSCOA REGION DESCRIPTION mSCOA FUNCTION DESCRIIPTION Total Project cost 2016/2017 2017/2018 2018/2019 B2.4 GT400 2016/17 TABB Basic Service Delivery Our Communities from low to high quality of life To ensure that services are progressively expanded and maintained in all communities through proper planning. Obed Nkosi electrification Capital:Infrastructure:Existing:Upgrading:Electrical Infrastructure:MV Networks:GT400-B2.4:Obed Nkosi Electrification Regional:Regional Identifier:Local Government by Province:Gauteng:District Municipalities:DC42 Sedibeng:Municipalities:GT400 Vaal:Ward 2 Function:Energy Sources:Core Function:Electricity R66 000 000,00 R2 675 000,00 R31 662 500,00

EXAMPLE OF SYSTEM TOOL

MBRR and segments Linking Project segment linked to A1, A5, A9, SA 34b, SA 36, SA 37 and CAA Function SA36 Fund to A1 Region SA36 Costing not applicable Item to all schedules from A1 to 10 and SA1 to SA 37 inclusive of all IYR

MBRR and segments Linking

IDP Link to Budget:Aspects to Consider during the review 1. Is the budget linked to IDP 1.1 Capital Expenditure A1 Extract SA 36 Extract

IDP Link to Budget: Aspects to Consider during the review SA 36 Extract

IDP Link to Budget:Aspects to Consider during the review 1. Is the budget linked to IDP - Operational Expenditure A1 Extract IDP Operational Projects

Example

Good Governance and Public Participation Project description: Municipality planning to have a community participation programme on a quarterly basis and the office of the mayor will champion the process and the programme budget is R500 000

IDP to Budget ( Example) Good Governance and Public Participation Project Operational: typical work stream: Communication and Public participation: Mayor/ Executive Mayors campaign Function Executive and Council: Core Function:Mayor and Council Finance and Administration: Core Function: Fleet Management Public Safety: Core Function: Police Forces, Traffic and Street Parking Control Marketing, Customer Relations, Publicity and Media Co-ordination: Core function Fund Revenue: non exchange: property rates: levies Item Contracted Services : Contractors: Catering Services Contracted Services : Contractors : Stage and Sound Crew Contracted Services : Contractors : Artists and Performers Contracted Services: Contractors: Audio-visual Services Advertisement Newspaper Graphic designer   Region Regional identify: local government by province: district : local municipality: whole of municipality Costing Default transaction

Select a project from these projects & unpack into Project, Function & Region UESTIONS? Additional Information Region benefiting from these projects is Ward 5 NKPA: Infrastructure and Basic Service Delivery SO: Our Communities from low to high quality of life ISO: To improve access to sustainable basic services

Project Chart QUESTIONS?

Function Chart QUESTIONS?

Region Chart QUESTIONS?

Answer QUESTIONS? Project No Dm Code Period Type National KPA Service Delivery Objective IDP Strategic Objective IDP Project Description PROJECT MSCOA CLASSIFICATION REGION MSCOA CLASSIFICATION FUNCTION MSCOA CLASSIFICATION Total Project cost 2016/2017 2017/2018 2018/2019 B2.18 GT423 2016/17 TABB Basic Service Delivery Our Communities from low to high quality of life To ensure that services are progressively expanded and maintained in all communities through proper planning. Constructuion of new Lesedi road Capital:Infrastructure:New:Roads Infrastructure:Roads: Infrastructure and basic service delivery: Our Communities from low to high quality of life:To ensure that services are progressively expanded and maintained in all communities through proper planning:bGT423 - B2.18 - Construction of new Lesedi road Regional:Regional Identifier:Local Government by Province:Gauteng:District Municipalities:DC42 Sedibeng:Municipalities:GT423 Lesedi:Ward5 Function:Road Transport:Core Function:Roads R10 600 000,00 R4 000 000,00 R3 300 000,00 QUESTIONS?

Maintenance of Vehicles Project description: 3 Vehicles will reach their service interval in the next 3 months, the cost for the service is estimated at R18000.

Chart Extract QUESTIONS?

Answer QUESTIONS?

QUESTIONS?