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

2. 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;” ,

3. 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.”

4. Five Key Performance Arears

5. 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.

6. 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.

7. 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

8. 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”

9. 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
R ,00
R ,00
R ,00

10. EXAMPLE OF SYSTEM TOOL

11. 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

12. MBRR and segments Linking

13. 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

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

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

16. Example

17. 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

18. 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

19. 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

20. Project Chart
QUESTIONS?

21. Function Chart
QUESTIONS?

22. Region Chart
QUESTIONS?

23. 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 - B 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
R ,00
R ,00
R ,00
QUESTIONS?

24. 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.

25. Chart Extract
QUESTIONS?

26. Answer
QUESTIONS?

27. QUESTIONS?