Urban Government Administration and Budget Review Process Insights

LAMAS WORKSHOP ULG S BUDGET REVIEW PROCESS - APRIL 2017 THE MINISTRY S PERSPECTIVE 1

ASSIGNMENT OF RESPONSIBILITIES TO MINISTRIES - LEGAL NOTICE 25 OF 2009 URBAN GOVERNMENT ADMINISTRATION URBAN DEVELOPMENT HOUSING & HUMAN SETTLEMENTS NATIONAL FIRE & EMERGENCY SERVICES SWAZILAND NATIONAL HOUSING BOARD CITY COUNCILS, TOWN COUNCILS & TOWN BOARDS

THE DEPARTMENT OF URBAN GOVTS OVERALL OBJECTIVES PROVIDES CAPACITY TO ULGS PROVIDES DIRECTION TO LOCAL GOVT DEVELOPMENT DEVELOPS LEGISLATION FOR THE DEVELOPMENT, MANAGEMENT, FINANCING & MANAGEMENT OF RESOURCES FOR LOCAL GOVTS ENSURES ENFORCEMENT OF THE BUILDINGS, ENVIRONMENT & PUBLIC HEALTH SAFETY LEGISLATION AND MANAGEMENT THEREOF ENSURES OF THE DEVELOPMENT OF PLANS FOR THE MANAGEMENT OF LOCAL GOVERNMENT RESPONDS TO EMERGING BEST PRACTICES & CIRCULATE THEM TO LOCAL GOVERNMENT ADVISE MINISTER OF MATTERS RELATED TO LOCAL GOVERNMENT ADMINISTRATION & MANAGEMENT

OVERVIEW OF BUDGET OBSERVATIONS THE OVERALL BUDGET PRESENTATION HAS IMPROVED THE BUDGET ACCURACY HAS ALSO IMPROVED DEPARTMENTAL BUDGETTING COMMENDED AND HOPE THE IMPLEMENTATION OF SUCH GOES WELL TOO SOME ULGS SUBMITTED THEIR BUDGETS USING MTEF FORMAT WHICH IS COMMENDED AS GOVERNMENT IS MOVING TOWARDS THAT DIRECTION EVENTUALLY THANK YOU TO SLGP CAPACITY BUILDING INITIATIVES PLEASE KEEP UP THE GOOD WORK

BUDGET PRESENTATION FORMAT IN LINE WITH FINANCIAL REGULATIONS READ TOGETHER WITH THE URBAN GOVT. ACT AND VARIOUS MINISTERIAL CIRCULARS & PFMA 2011 KEY SUPPORTING DOCUMENTS INCLUDE: EXECUTIVE SUMMARY & BUDGET NOTES INCOME & EXPENDITURE SUMMARY/STATEMENT OF COMPREHENSIVE DEPARTMENTAL BUDGET ESTIMATES CAPITAL INVESTMENT PLAN LOAN SCHEDULE STAFF ESTABLISHMENT RATES SCHEDULE DETAILED BUDGET ITSELF

BUDGET CIRCULARS OF 2007 & 2011 INTRODUCTION OF 5 YR IDPS WHICH HAVE THE FOLLOWING COMPONENTS: LOCAL PHYSICAL PLANNING SCEME INFRASTRUCTURE DEVELOPMENT PROGRAM LOCAL ECONOMIC DEVELOPMENT STRATEGINSTITUTIONAL CAPACITY BUILDING STRATEGY FINANCIAL VIABILITY STRATEGY DISASTER & ENVIRONMENTAL MANAGEMENT

BUDGET ESTIMATES ARE SUBMITED IN LINE WITH SECTION 91 OF THE URBAN GOVT ACT NO 8 OF 1969 THE HON MINISTER MAY, AFTER REVIEWING THE BUDGET ESTIMATES: APPROVE THEM WITHOUT AMENDMENTS APPROVE THEM WITH AMENDMENTS DISALLOWAW OR DISAPPROVE THE ESTIMATES AFTER HAVING GIVEN THE COUNCIL AN OPPORTUNITY OF MAKING REPRESENTATION ON ANY DISALLOWANCE. THE REASONS FOR DISALLOWANCE MAY VARY BUT ARE NOT VERY COMMON. THE HON MINISTER S ROLE IS TO PROTECT THE RATEPAYERS AS WELL AS SUPPORT GROWTH WITHIN THE MUNICIPALITIES.

COMMON BUDGET SUBMISSION ERRORS THE EXECUTIVE SUMMARY MAY SOMETIMES CONFLICT WITH ACTUAL ESTIMATES (Due to various factors including continuous amendments to the draft budget cuts by Treasury dept) LACK OF APPROPRIATE GRAND SUMMARY / COMPREHENSIVE INC & EXP LACK OF LOAN SCHEDULE ( sometimes this is proposed in notes, briefly) LACK OF RATES ASSESSMENT SCHEDULE (Confirming the rates budgeted for) INCONSISTENCY NOTED IN COMPREHENSIVE BUDGET SUMMARY PRESENTED EITHER BY DEPARTMENTS OR BY THE WAY WE SUBMIT QUARTERLY REPORTS TO PARLIAMENT

OTHER ERRORS NOTED BUDGETS REFLECT A HIDDEN DEFICIT YET PRESENTED AS A SURPLUS (Due to zero based budgeting and also full budget of rates billed visavi actuals received or projected income from rates expected) In such instances, budgets should reflect a healthy surplus in case of non collection of projected rates to balance off the deficit BUDGETS WHEN ANALYZED AGAINST THE CASHFLOW STATEMENTS SUBMITTED REFLECT A DEFICIT BUDGET EVEN WHEN SUBMITTED AS A SURPLUS BUDGET ATEMPTS TO LINK BUDGET TO STRATEGY IS APPRECIATED BUT THE MINISTRY FEELS THERE IS A LOT MORE THAT CAN BE DONE

CONTINUED. PROJECTED SALARY INCREMENTS ARE NOTED IN BUDGETS BUT ARE SELDOM CONFIRMED WITH THE MINISTRY BEFORE IMPLEMENTATION ON THE ASSUMED BASIS OF APPROVAL WITHOUT AMENDMENTS RECEIVED YET LOANS ARE NOT UNDERTAKEN WTHOUT THE MINISTER S CONSENT EVEN WHEN BUDGET IS APPROVED WITHOUT AMENDMENTS Need for consistency A NEED TO IMPROVE CASHFLOW MANAGEMENT AS MOST CASHFLOW BUDGETS SHOW A DEFICIT WITHIN THE 2ND QUARTER NOTED AN INCREASE IN BUDGETS FOR HOSPITALITY FOR COUNCIL MEETINGS A POLICY SHOULD BE IN PLACE TO GUIDE WHEN COUNCILS CAN ENJOY LUNCHES BEFORE/DURING/OR AFTER COUNCIL MEETINGS LISTING SPECIAL CAPITAL BUDGET ITEMS UNDER THE ACTUAL CAPITAL BUDGET

CONTINUED. LACK OF CIP BUDGET B/F TO BALANCE OVER BUDGETTED FOR CAPITAL ESTIMATES OR LACK OF NOTES SUPPORTING THE OVER BUDGET BY OWN SOURCE Etc LACK OF SUBMISSION OF BUDGET ADVERTISEMENTS IN PRINT MEDIA AS EVIDENCE THAT BUDGET WAS ADVERTISED AS PER STIPULATED DAYS BEFORE SUBMISSION TO THE MINISTRY. LACK OF ALIGNMENT OF RESIDENTS INPUT TO BUDGET LACK OF SUBMISSION OF REQUIRED COPIES OF THE BUDGET TO MINISTRY AFTER THE BUDGET HAS BEEN APPROVED, LACK OF RATES BILLING SUBMISSIONS ON TIME ( Within the first 2 months of the new financial year, to enable the Ministry to forward such bills to the relevant Ministry on time)

THANK YOU. COMMENTS & QUESTIONS & SUGGESTIONS WILL BE HIGHLY APPRECIATED TO ASSIST THE MINISTRY RAISE THE BAR