Effective Performance Management Systems for Municipalities

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 2 2

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. 3 3

THE IMPORTANCE OF MEASURING PERFORMANCE ! EFFECTIVE: Planning & Budgeting Implementation Monitoring & Reporting Accountability Tracking of Progress Monitor Service Delivery WHAT GETS MEASURED GETS DONE 4 4

mSCOA PLATFORM mSCOA Reporting Objectives Strategic inputs Muni Objective Non Financial Financial Input Region Align Fiscal Outcomes Sustainability Project Activity Function Output IDP SDBIP Outcome Project Management Requirements 5 5

ACCOUNTING CYCLE PMS 6 6

mSCOA & PERFORMANCE MANAGEMENT SYSTEMS Non- Financial Phase Integrated Solution Project Dependant Accurate and Reliable Reporting Inclusive of financial aspects SDBIP IDP PROJECT SEGMENT 7 7

mSCOA : EXPANSION OF PROJECT SEGMENT PROJECT SEGMENT FUNCTION FUND ITEM REGIONAL COSTING MSC THE PROJECT SEGMENT TO INCLUDE NON FINANCIAL ATTRIBUTES OF RELEVANT PROJECTS 8 8

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 9 9

PERFORMANCE MANAGEMENT SYSTEM Development and Review of the IDP Develop and Implement the PMS Framework Revision of Objectives and Strategies Performance measurement and reporting Develop KPA s and KPI s Set targets and measurables for KPI s Internal Control Service Delivery Process Internal Monitoring 10 10

PERFORMANCE MANAGEMENT SYSTEM The IDP framework is first captured National KPAs, Strategic Objectives PROJECT SEGMENT IDP Projects KPI s and Tasks 11 11

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. 12 12

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 13 13

REPORTING MID YEAR AND ANNUAL PMS REPORTING MUNICIPAL MANAGER S PMS COMPLIANCE REPORTING ORGANISATONAL SCORECARD INDIVIDUAL SECTION 57/56 PERFORMANCE REPORT Focus Area Key Objective Objective To create awareness of hazards and disasters To implement identified activities in airport implementation plan as aligned to budget KPI Description Actual Progress Score Agree Evidence Comments To deal with Disasters efficiently & effectively in the district Number of planned awareness campaigns held Disaster Management School Stamped Confirmations 57 Campaigns 5 Target exceeded To viably establish, operate and maintain a Regional Airport that contributes to the growth and development of the district Percentage progress of airport implementation plan Project Plan submitted to MM Muncipal Airport 100% 3 Target met 14 14

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. 15 15

DASHBOARDS Municipal dashboards are real time and mSCOA will contribute to alerts in terms of budgets and values. 16 16

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 the collection of the data is cost-effective Collection COMPARRISSON NON-FINANCIAL ASPECTS OF A PROJECT IS WITH FINANCIAL EASILY COMPARRED TO THE FINANCIAL ASPECT ASPECTS 17 17

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 18 18

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