1. SCOF 9 June 2006 TV Pillay National Treasury

2. Focus on budget content, formats, reporting and accounting reforms
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
M F M A

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/ /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
M F M A

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, CFO’s six months before municipal elections, process calendar on mfma website)
M F M A

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
M F M A

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
M F M A

7. Implementation support
Workshops countrywide (MFMA, SCM)
Implementation guideline and manuals
Pocket version of MFMA
Technical circulars, s, 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, prov’s, Salga)
Website and MFMA help-line established
Municipal and PT roving technical advisors appointed
M F M A

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
M F M A

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
M F M A

10. M F M A

11. M F M A

12. TABLING OF MUNICIPAL BUDGETS
PROVINCE
2005/2006
2006/2007
TOTAL
YES % NO
Eastern Cape 45 21 47 24 53 38 84 7 16
Free State 25 4 64 9 36
Gauteng 15 11 73 27 14 79 3
Kwazulu-Natal 61 41 49 50 82 18
Limpopo 32 56 44 30 28 93 2
Mpumalanga 20 12 60 8 40 19 90 10
North west 5 80 22 88
Northern Cape 31 17 55
62.5
37.5
Western Cape 70 83
284
131 46
153 54
283
229 81
M F M A

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
M F M A

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
M F M A